REPORT ON SUMMER INTERNSHIP PROJECT

“Development of DeBongo brand”

Done at

VEEKESY INDUSTRIES PVT LTD

Submitted in partial fulfillment of the requirements for awarding

Degree in

Master’s Programme in Business Administration (MBA),

By
HASNA C K
(Reg. No.: 37118049)

Under the guidance of

Prof (Dr.) JAGATHY RAJ V.P.

Professor

SCHOOL OF MANAGEMENT STUDIES

COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY
KOCHI - 682022
JUNE 2019

1
 CONTENTS

CHAPTER TABLE OF CONTENTS PAGE

- DECLARATION 3

- ACKNOWLEDGEMENT 4

- EXECUTIVE SUMMARY 5

1 INDUSTRY PROFILE 6

2 COMPANY PROFILE 9

3 ORGANIZATIONAL STUDY 11

4 ORGANIZATIONAL STRUCTURE 20

5 FUNCTIONAL AREAS 22

6 SWOT ANALYSIS 41

7 INTRODUCTION TO PROJECT 44

8 RESEARCH METHODOLOGY 48

9 DATA ANALYSIS AND INTERPRETATION 52

10 FINDINGS, SUGGESTIONS AND CONCLUSIONS 69

- BIBLIOGRAPHY 73

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 DECLARATION

I do hereby declare that this report is a bona fide record of the organization study done by me
under the supervision of Prof Dr. JAGATHY RAJ, Professor, School of Management Studies
and SHAMIM S.N, SALES CLUSTER HEAD, VEEKESY INDUSTRIES PVT LTD during
the academic year 2018-2020, in partial fulfillment of the requirements for the award of the
Degree of Master of Business Administration (Full Time) of School of Management Studies,
Cochin University of Science and Technology, Kochi.

This work has not been under taken or submitted elsewhere in connection with any other
academic course.

Place: Calicut HASNA C K

Date: 10/06/2019

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 ACKNOWLEDGEMENT

I wish to take this opportunity to express my sincere expression of gratitude to each and every
one who helped me in the completion of this work.

I express my gratitude to Prof Dr. JAGATHY RAJ., Professor, School of Management Studies,
CUSAT for his prompt help all through my study and for his valuable suggestions, advice and
encouragement throughout the course of this work.

I owe my gratitude to SHAMIM S.N, Project guide and Sales Cluster Head, VEEKESY
INDUSTRIES PVT LTD for his constant encouragement during the course of my study.

I express my deep gratitude to my dear friends for their co-operation and helping hands, who
were always friends in need.

HASNA C K

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 EXECUTIVE SUMMARY

The objective of the organization study is to benefit both, the students working as interns
as well as the company for which the students are working. The students get to learn the basics
of their education and them turning into realities, whereas the companies could add value to their
services through the creativity and the innovative skills possessed by the new generation. The
internship period, also helps the students to judge themselves, whether, they would be able to
adjust in the corporate environment or not.

The Organization study at VEEKESY INDUSTRIES PVT LTD., Calicut has given me the
opportunity to gain precious industry related experience that would allow me to develop my
career options. The skills and knowledge I gained at SMS was quite an approach at VEEKESY
INDUSTRIES PVT LTD. This mini project experience has helped me to realize my strengths
from the experience I gained at VEEKESY INDUSTRIES PVT LTD. I was able to exploit and
absorb the knowledge and skills gained at SMS in a more practical way and identify the
weaknesses and the areas I need to work on to achieve my career goals. The guidance, support,
feedback and useful suggestions provided by my Project Guide helped me to successfully
complete this Organization Study. I also learnt how to work in a large team to achieve a common
goal. It was a pleasure to work with such a committed, collaborative, coordinative, innovative
and dynamic team. Working with this team helped me to improve my innovative and
coordinative skills within a team to meet a common goal.

The organization study definitely broadened my mind. What stood out during the Organization
study at VEEKESY INDUSTRIES PVT LTD was the excellent team spirit, a very flexible work
and personal schedule and a great working environment.

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 CHAPTER 1
INTRODUCTION

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Footwear is estimated to have started its long history of human use during the ice age some 5
million years ago. Unkind weather conditions are said to have created the necessity of footwear.
Other evidences show that footwear came to use at end of the paleolithic period, at about the
same time the early humans learned the art of leather training. Early pieces of footwear were
made of wrappings, usually made of leather or dried grasses later on pieces were developed for
an oval piece of leather which is bound by a piece of strong leather throngs. Sandals which are
first crafted footwear are the successors to these wrappings. In Egyptian funeral chambers,
paintings show the different stages in the preparation of leather and footwear. The images also
show that in Egypt, footwear depicted power and class.

The pharaoh’s sandals were distinguished by the turn up toes, a characteristic which is missing in
the commoners’ footwear. The images also show that in Egypt footwear depicted power and
class. The Egyptian sandals were crafted using straw, papyrus or palm fiber. Later on, Egyptian
women adorned their footwear with precious stones and jewels. Footwear is demanded by all
income group people. Middle and lower income group prefer low cost, durable, wear and tear
resistant footwear that can be used in all type of domestic condition where as high income group
prefer fashion oriented footwear.

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HISTORY OF FOOTWEAR INDUSTRY
Spanish cave drawings from more than 15000 years ago show humans with
animal skins or furs wrapped around their feet. The body of a well preserved “ice man” nearly
5000 years old wears leather foot stuffed with straw. Shoes, in some form or another, have been
around for a very long time. The evolution of foot coverings, from the sandal to present day
athletic shoes that are marvels of engineering, continues even today as we find new materials
with which to cover our feet.

We are in fact still wearing sandals- the oldest crafted foot covering
known to us. Moccasins are still readily available in the form of the loafer. In fact, many of the
shoes we wear today can be traced back to another era. The Cuban heel may have been named
for the dance craze of the 1920s, but the shape can be seen long before that time. Soles, which
are one of the most recognizable features of footwear in the 1970s and 1990s, were handed down
to us from 16th century choppiness. Then, high soles were a necessity to keep the feet off the
dirty streets. Today they are worn strictly for fashion’s sake.

If one can deduce that basic shoe shapes have evolved only so much, it is
necessary to discover why this has happened. It is surely not due to a lack of imagination- the
colors and materials of shoes today demonstrate that. Looking at shoes from different parts of
world, one can see undeniable similarities. While the venetians had no contacts with the Japanese
balanced on high-soled wooden shoes called get. Though the shape is slightly different, the idea
remains the same. The venetians had no contacts with the Japanese, so it is not a case of
imitation. Even the mystical Chinese practice of foot binding has been copied in our culture.
Some European women and men of the past bound their feet with tape and squashed them into
too-tight shoes. In fact, a survey from the early 1990s reported that 88% of American wear that
are too small.

As one examines footwear history, both in the west and in other parts of the
world, the similarities are apparent. Though the shoemakers of the past never would have
thought to pair a sandal with a platform sole, our shoe fashions of today are, for the most part,
modernized adaptations of past styles.

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INDIAN FOOTWEAR COMPONENTS INDUSTRY

The foot wear industry is a significant segment of the leather industry in India.
The footwear components which are exported from India are leather shoe upper and leather unit
soles. The estimated annual production capacity of leather shoe upper’s is 112 million pairs. The
major production centers are Chennai, Ranipet, Agra, Tamil Nadu, etc.

The component industry has enormous opportunities for growth to cater to

increasing production of footwear of various types, both for export and domestic market.

Nearly 75% of total export of footwear component is from the southern region
followed by northern region with a share of 13%.

Nearly 83% of the India’s export of footwear components is from the UK,
Germany, Italy, USA, France and Portugal.

PERFORMANCE OF INDIAN FOOTWEAR INDUSTRY

The foot wear industry is a significant segment of the leather industry in India. India ranks
second among the foot wear producing countries next to the China.

In 1999, the global import of footwear in terms of value was around US$43278 million
accounting a share of 63.42% in the total global import of leather and leather products out of this
import of leather footwear alone accounted for US$26379 million and non-leather footwear
US$16899million.

India’s exports of leather footwear touched US$331million in 1999-2000,recording

an increase of 3.29%over the preceding year. India thus holds a share of 1.25% in the global
import of leather footwear.The major markets were the UK, USA, France, Italy, Russia, etc.

In 1999-2000, export of leather footwear from India contributes 21% share of its
total export of leather and its products. Nearly 33 million pairs of various type of leather
footwear were exported during the year. It includes dress, shoes, casuals, sport shoes, etc.

9
 CHAPTER 2
COMPANY PROFILE

10
VKC GROUP OF COMPANIES:

VKC was founded in 1984 by visionary Shri. VKC MammedKoya for manufacturing and
marketing Hawai slippers. The unit, which commenced its operations with just 20 employees and
a modest product portfolio of one item, today, has made a mark not just in the Indian Footwear
Industry but in the world arena as well.
With a daily production of around 0.4 million pairs, VKC is not only the Number-1 PU footwear
manufacturer in India but also one among the top in the world. VKC products reach its end
customers pan-India through a well-established network comprising of over 330 dealers and a
lakh of retailers, majority of who have been holding long-standing relationship. VKC also
exports its products to GCC countries, Singapore, Malaysia etc.
Current brand portfolio promoted by the Group comprises of the major brand VKC Pride
followed by VKC Lite, VKC Trendz, VKC Junior, Walkaroo, Skalino, and Vestire. VKC has
more than 400 designs for Gents, Ladies and Kids across Sandals, Floaters, Shoes Flip-flops and
Hawai.

Nature of business

The business carried by VKC is production of footwear. VKC mainly manufacturing high quality
footwear’s as per the requirement of customer. The company faces many competitors for the
kind of manufacturing. “Consistent quality at affordable price” made the VKC group products
popular in the market day by day. The success in Kerala market gave morale boost to the group
to market their product in the other southern states.

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 CHAPTER 3
ORGANIZATION STUDY

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Vision & Mission

Vision

“We will be the most preferred brand by continually enhancing customer experience. We will
build an Institution which empowered the best people do collaborate in an environmentally and
socially responsible manner.”

Mission
● We will make great products accessible at competitive prices to our customers through
innovation in material, technology, processes, how we source and how we sell.
● We will deliver sustainable shareholder value
● We will adhere to the highest conduct in all our business dealings
● We will treat all our employees with fairness and dignity and will provide them
opportunities to fulfill their potential
● We will contribute to nation building by developing entrepreneurs and intrapreneurs.
● We will adopt environment friendly technologies and processes
● We will ensure our dealers/ channel partners expectations are met in full and all the time.

Quality policy

In order to satisfy customer needs first the company is providing footwear which offers better
style, comfort, elegance, finish, colors and durability. Quality performance demonstrated is the
result of optimization of design, effective process control in manufacturing together with testing
and approval process in the environment of Quality management system.
Product profile:

The VKC Rubber industry Pvt ltd producing high quality plastic footwear’s from 100% virgin
rubbers. The company’s VKC Rubber industry pvt.ltd is producing high quality plastic footwear
from quality plastic footwear from 100% virgin micro cellular rubbers. The company’s

13
manufacturing facilities includes modern equipment and machineries imported from Taiwan first
of its kind in south including rotary injection modeling machines for improved product quality.
The company has to face stiff competition as there is lots of plastic footwear manufacturing in
Kerala.

About VKC:
No. 1 PU footwear manufacturer in India.
● 25 manufacturing units across 6 states with 10.7 million pairs/month
● 25 sales depots across 18 locations
● Turnover of RS. 2200 cr. In 2018-19
● Turnover of RS. 2000 cr. In 2017-18
● Turnover of RS. 1695 cr. In 2016-17
● Turnover of RS. 1525 cr. In 2015-16
● Turnover of RS. 1361cr. In 2014-15.
● Annual growth of over 10% despite tough economic condition such as
Demonetization and all.

Product portfolio

● More than 600 designs in market across

● 9 categories
● Introduce new product portfolios in formal shoes and bags

Market Expansion
● Expansion of business across 2 new states.
● International Expansion of Business across 2 new Nations
Exporting products to 12 countries.

14
 VKC GROUP OF COMPANIES

VKC Group

Division-1 Division-2

Veekesy Veekesy Fortune Veekesy

Elastomers Pvt. Footcare(India)P Elastomers Pvt. Polymers Pvt.
Ltd. vt . Ltd. Ltd. Ltd.

VKC Footwear Veekesy Caltech

Slipons India
International Sandals(India)Pv Polymers Pvt.
Pvt. Ltd.
Pvt. Ltd. t . Ltd. Ltd.

VKC Smartak
VKC Footprints Diadora Shoes
Footsteps(India) Footcare Pvt.
Global Pvt. Ltd. Pvt. Ltd.
Pvt . Ltd. Ltd.

Ferrero Vinyl WalkaroO Bags Dimesco

Morbido Vinyl
Technologies and Accessories Footcare India
Pvt .Ltd.
Pvt. Ltd. LLP Pvt. Ltd.

VKC Shoes and

VKC Slippers
allied Products
India Pvt. Ltd.
Pvt. Ltd.

15
The quality of the VKC products is unrivalled in the market. The Footwear’s introduced by the
company has been growing and evolving with the changing trends over the year. The company
first manufactured “Senor Cinderella” brand footwear having PVC sole with leather and
synthetic leather upper. Now the company is manufacturing VKC Pride and VKC Lite. VKC
Pride is sold in Kerala, Tamil Nadu, Andhra Pradesh, Maharashtra, Chhattisgarh, Orissa, Gujarat
and VKC Lite in Kerala and Tamil Nadu alone. In the recent years the customers prefer the
injected EVA Footwear’s rather than any other Footwear. We also export our products to
Kuwait, Oman and Jeddah’s we are manufacturers of footwear, we focus mainly on production
process of the organization.

The function of the production department is to produce our products on time, to the required
quality levels, at the defined product cost. The advantage of the company is the implementation
of Italian technology used for the injection molding process. This will help the company to
assure high quality with accurate size andgood finish to the product.

Of major concern to the production manager is monthly output. Productionmanagershave

monthly targets which they are expected to strive to meet or exceed. Production department also
aims at maintaining the quality of products been produced. Every employee expected to take
responsibility for managing quality issues in order to make sure that wastes minimized, and
quality maximized. Quality checking and assurance is carried out every day on a number of
occasions to ensure that the production process is working efficiently and effectively. We use
different machines to produce footwear’s. The company purchases footwear molds from Taiwan,
China, and Italy. This will help the company to assure high quality finished product.

VKC group of companies are the leading footwear manufacture especially in southern region of
India. The group established on (August17) 1984 with a nominal capital and few employees. In
1984 the founder of the group Mr. V.K.C. MammedKoya started a Hawaii Sheet manufacturing
unit with his two brothers. Later on, Hawaii straps were also inducted to the production line and
in 1986 VKC group launched the first product with its own brand name in the market viz. VKC
Hawaii with an initial production of 600 pairs per day. By 1989 the production increased to 5000
pairs a day and by 1996 it jumped to 17000 pairs. In between the founder initiated the floating of
the first RPVC footwear manufacturing unit in the Malabar Area of Kerala state with few of his

16
friends. This product also got very good acceptance in the market. The success of the first unit
and the RPVC unit gave a signal to the business community and the vast potential was seen by
the various industrialists. This resulted in a rapid change in the footwear industry itself. In 1994
the group ventured the first unit in Kerala to manufacture footwear from virgin PVC. This
resulted in a big change and the multinational brands felt competitions from the local brands. In
1998 the group started the first Micro Cellular PVC footwear in Kerala with imported plant and
machinery.

“Quality at low price” made the VKC groups products popular in the market day by day. It also
expanded its market to other southern states. In 2001 the group started the first Air Injected PVC
DIP footwear manufacturing unit in the South India. In 2003 the group ventured the first Injected
EVA manufacturing unit in South Central India. In 2006 the group started backward integration
to produce EVA compound for Injection and started the first EVA compounding plant in the
South-Central India. The unit went in 2007 the group started manufacturing of PU DIP footwear.
During these period new bloods with technical, commercial and practical knowledge were
inducted and now the group consists of 20 working Directors and 60 share holders spread over
19 various units. And have annual group turnover of Rs.700 million. More than 1000employees
are working in this units.The company had achieved a prominent position in the footwear market
of India. The main markets, which are concentrated by the company, are Kerala, Tamil Nadu and
Karnataka. The good quality and variety in models of VKC products help the companies to face
market competition. The company has been able to maintain the quality of the products by
adopting foreign technologies. The group is now looking for further avenues in the field
of footwear to stretch their hands. The Head Quarter of VKC group is in Calicut. And the main
plants of VKC group of companies are situated in Kerala and Tamil Nadu. The following are the
associate companies of VKC group.

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M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD.

M/s. VEEKESY ELASTOMERS PVT.LTD.

M/s. VEEKESY POLYMERS PVT.LTD.

M/s. SANDLON TECHNOLOGIES PVT.LTD.

M/s. FORTUNE ELASTOMERS PVT.LTD.

M/s. CALTECH POLYMERS PVT.LTD.

M/s. EMERALD PLASTOMERS PVT.LTD

M/s. SLIPONS INDIA PVT.LTD

M/s. DIADORA SHOES PVTLTD.

M/s. DIMESCO FOOTCARE INDIA PVT LTD.

M/s. VEEKESY PLASTOMERS (INDIA) PVT.LTD.

M/s. KOVAI FOOTWEARS PVT.LTD.

M/s. FERRARI SHOES (INDIA) PVT.LTD.

M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD.

M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD.

M/s. MORBIDO VINYL PVT.LTD.

M/s. SMARTAK FOOTCARE PVT. LTD.

M/s. VEEKESY SANDALS (INDIA) PVT. LTD.

VEEKESY RUBBER INDUSTRY PVT.LTD

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BRANDS FROM VKC

● VKC Pride
● VKC Trenz
● VKC Stile
● VKC Lite
● VKC Hawai
● VKC Junior
● VKC Slipons
● VKC Smartak
● Walkaroo
● Skalino
● Vestire
● Kapers
● DeBongo

Veekesy Rubber Industry Pvt. Ltd is the registered private limited company situated at Kolathara
in Kozhikode district. The objective of the company is to manufacture the high-quality footwear.
It got its certificate of registration on1-1-.1984 the installed production capacity at the initial
period is 21, 60, 000 pairs. All affairs and day-to-day business administration of the firm is
installed production capacity at the initial period is 21, 60, 000 pairs. All affairs and day-to-day
business administration of the firm is vested in the hands of Boards of Director. They are in
charge of various activities like Production, Finance & Marketing. The board is assisted by
qualified administrative staffs. Veekesy rubber industry private limited is a leading rubber
manufacturer in south India. The company’s mission is to maintain and achieve customer
satisfaction through providing quality products at reasonable price order to satisfy customer
needs first the company is providing footwear which offers better style, comfort, elegance,
finish, colors and durability.

The product “VKC” has a high brand value in the minds of the peoples of Kerala because of the
quality and the affordable price of the product. The management gives high priority to the quality

19
of the product. The company assures the quality of the product through the continuous quality
checking in each and every stage of the production process. Veekesy rubber industry private
limited synonymous with quality footwear is today busy stepping from a splendid present into a
glorious future, it is energetically in the move to scale never heights in footwear designing and
manufacturing.

Main Competitors
 Bata
 Relaxo
 Mirza
 Liberty

Infrastructural facilities
● Security checks: Any material official/otherwise that is being brought in taken must
have appropriate documentation. Regular security checks are conducted to prevent
unauthorized material leaving entering the organization. Employees required to leave
the factory on official/personal work during working hours are to be submit an
authorized gate pass to the securities.
● Medical facilities: The medical Centre is staffed by a resident Doctor and trained
attendants and supported by efficient Ambulance Service Canteen Facilities has got a
good canteen facility for the employees at the project area also.

FUTURE GROWTH AND PROSPECTS

● To attain market leadership.

● Introduction of new trade schemes to increase sales.
● Aggressive advertisement and publicity as part of sales promotion.
● Reduction in distribution expenses Cost-reduction in all areas.
● Instant decision making in certain procurement activities.
● Timely introduction and implementation of market driven decisions.
● Ensuring effective internal control

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 CHAPTER 4
ORGANIZATIONAL STRUCTURE

21
22
 CHAPTER 5
FUNCTIONAL AREAS

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BUSINESS LEVEL FUNCTIONS

For the effective and efficient functioning of the company, the entire activities of the VKC group
are facilitated through various departments. This type functioning helps to reduce the
complexities and perform various business functions systematically. There are mainly 5
distinguished departments in VKC are,
 Human Resource Department
 Finance Department
 Production Department
 Sales and Marketing Department
 Material management Department.

 HUMAN RESOURCE MANAGEMENT

Human Resource Management is primarily concerned with the management of personnel at work
and their interpersonal relations. It is the integral part of management, concerned with people at
work and their relationship within the enterprise, seeking to bring together into effective
organization.
The Department is controlled by the General Manager who is reporting to the
Division Chairman of the company. The department is very careful in maintaining good
relationship with employees and they are very conscious to provide better facilities to them. As a
result, there is no labor turnover, labor absenteeism. The company provides excellent training
programs for the employees to improve the skills and productivity in a lesser time. The
employees are getting the statutory benefits like Bonus, ESI scheme, Employee provident,
Festival holiday Allowances from the company. They are often given awareness class related to
cleanliness health and safety.
Functions
 Talent Acquisition

 Employee Engagement

 Organizational Development

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  Training and Development

 Human Resource Management System - ZETA

 Payroll Management

 Welfare Management

TALENT ACQUISITION PROCESS

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EMPLOYEE ENGAGEMENT
Traditional personnel management views employee as a tool. On the other hand, human resource
management has a wider scope and considers employees as the asset to the organization. It
promotes mutuality in terms of goals, responsibility, reward etc. that will help in enhancing the
performance and productivity of employee and also the organization.

When employees are engaged at work, they feel a connection with the company. They
believe that the work they’re doing is important and therefore work harder.

 Events and Celebrations

 Employee Engagement Calendar
 CSR/PR Calendar
 VKC HR Connect
 Implementation of health and wellness program
 Encourage learning
 Communicating the Mission, Vision with the employees
 Communicating JD with employees
 Let them create their own on boarding experience
 Build relationships at work

ORGANIZATIONAL DEVELOPMENT

Organizational Development (OD) is a field of research, theory, and practice dedicated to

expanding the knowledge and effectiveness of people to accomplish more successful
organizational change and performance.

 Setting Job Description

Employee Job Descriptions are written statements that describe the duties, responsibilities,
required qualifications and reporting relationships of a particular job.

 Drive Organization Structure

26
 Organizational structure is a system used to define a hierarchy within an organization. It
identifies each job, its function and where it reports to within the organization

 Drive HR Policies

HR policy provides generalized guidance on the approach adopted by the organization, and
therefore its employees, concerning various aspects of employment.

Current policies in VKC Group, Division II are as follows;

 Confirmation policy

 Grade change policy

 Attendance and Leave Policy

 Relocation & Leave Policy for Expatriate Employees

 Guidelines for Learning & Development in VKC

 SEPARATION & No Due Certificate(NDC) POLICY – DIVISION II

 Events and Celebrations – Policy Guideline

 Domestic Travel Policy

 Hiring Related Policy

 VKC Wings – Rewards & Recognition

 Worker of the month

 VKC employee welfare policy.

LEARNING AND DEVELOPMENT

Training and Development department is in the initial stage.
 Training Needs Analysis
TNA is conducted to assess the organizations training needs.
 Training Calendar

27
A Training Annual calendar is prepared for up skilling the current employees which includes,
both Process and Behavioral training which helps to create the culture of personal development
and learning.
Training calendar will be finalized by the L&D team through concurrence from respective
functional heads.
 Training planner

A training planner is a detailed document that guides the planning and implementation of
training.
 Skill Summary
Skill summary prepared after the successful implementation of planned training. It include
details about programme, No. of participants, audience, duration in hours, faculty, organizer,
Quality of Training and Man days of training
 Training Effectiveness Monitor Form
Consistent and continual training evaluation feedback form is used to effectively determine the
value of specific training tools, programs, activities, and events.
 Quality of Training
The impact of training is identified through evaluating the quality of training.

 INDUCTION TRAINING

Training provided to new employees for an introduction to their new job and to help them
become familiar with their new work environment in VKC Group. The training will also outline
the basic overview of the business, vision and mission as well as the new employee's role.

28
HUMAN RESOURCE MANAGEMENT SYSTEM -ZETA

PAYROLL MANAGEMENT

ATTENDANCE MANAGEMENT
The attendance is one of the most important record of employees for maintain different
attendance system is used. Biometric punching system method is used by VKC attendance.
PAY STRUCTURE
One of the important functions of personnel department is payment to employees.
 Basic payment salary
 House rent allowance
 TA
 CCA
 Education
 Books

29
STATUTORY BENEFITS:
ESIC
For all employees earning ₹21,000 or less per month as wages, the employer contributes 4.75
percent and employee contributes 1.75 percent, total share 6.5 percent. This fund is managed by
the ESI Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act
1948, which oversees the provision of medical and cash benefits to the employees and their
family. ESI scheme is a type of social security scheme for employees.
EMPLOYEES PROVIDENT FUND
As required by the provisions of the Provident Fund Act employer and employees’ contribution
is fully credited to the provident fund the company deducts the amount of provident from each
employee’s salary and remits the same to the provident fund account of the respective
employees. According to the Provident Fund Act 1952, every institution must compulsorily
provide provident fund for the employees working in factories and other establishments.
BONUS
As per bonus Act, employees drawing salary up to 20% month paid annually with bonus.
Employees those who are not eligible for bonus, are paid festival allowance as directed by
company. The decision related to the bonus is taken at the director board meeting. Bonus is an
amount which represents an extra income to workers.
PENSION
All the workers are eligible for pension after completing their service, minimum period of
service required for the pension is 10 years and the age of the retirement is 58 years. The
employees are not required to contribute under the employee’s pension scheme 1995.

STATUTORY RECORDS
All types of statutory records are maintained in the company and the factory inspector verifies
these. The main statutory records are;
 Accident register
 Attendance register
 Statutory books under ESI and PF schedule
 Leave register

30
WELFARE MANAGEMENT
The employees of VKC Group covered under Kerala labor welfare fund. There are many welfare
measures for workers in VKC Group;
 Welfare Calendar
 Induction to new joinee workers
 Accommodation for migrated workers
 Training programmes for workers
 Safety standards criteria for factory unit
 Housekeeping & hygiene standards for Quarters
 Monthly Inspection and Amenities check list for Quarters
 Recreation club
 Locker facility
 A tie up agreement with a nearby hospital.
 Company provides restroom, drinking water facility bathroom etc. required under
company’s act.

 FINANCE DEPARTMENT

The efficiency Finance is the lifeblood of the financial department directly affects the rise and
fall in a business. It is possible to survive for a while at least without an effective marketing plan,
poor human resource management and indeed a poorly designed business strategy. But in the
case of Finance, no finance, no Business, whether big, medium or small cannot be started
without an adequate amount of Finance.
The gradual increase in the annual turnover of VKC over the previous year’s itself
marks the efficiency of the Financial department. It has to perform a wide of activities and
control the entire financial matters of the concern. All those activities performed efficiently by
the financial department under the leadership of the Finance manager.
The Company is financially stable and not having any term loans. The annual turnover of the
company for the financial year 2016-2017 is 1560 cores. All the financial transactions of the
company are handled through computerized system. The dealings are handled by tally along with

31
latest accounting packages. VKC is having a very good financial position because of their well-
equipped finance and administrative departments.
Finance management is the process of planning, organizing, directing and controlling the
finance activities. The two function of finance department are finance and accounting.
Accounting is an art of recording, classifying and summarizing in a significant manner and in
terms of money transaction and event which are of financial character and interpreting the result
there of. Through accounting information, they can prepare the financial statement of the
company periodically to know the financial position of the firm. Finance plays a key role in all
activities of the business.

FUNCTIONS OF FINANCE DEPARTMENT

 Preparation and maintenance of accounts, documents and records

 Recording of bank transactions like cash withdrawals, maintain detail of check payments
etc.
 Maintenance of commercial accounts, income tax etc.
 Payment of company bills like telephone, electricity and monthly returns of tax, GST
 Preparation of budget
 Fixed assets registration maintenance
 Salary preparation
 Allocation of bonus, PF etc.

KEY FINANCIAL ACTIVITIES

 Financial Assessing the Performance and condition of the firm

 Forecasting and planning the financial structure

 Management of firm’s asset structure

 Managing the liquid resources

 Debt and dividend policy

32
  Determine the capital budget

 The role of finance manager is not confined to the management and making accounts, but
it also plays major role in dividend decision, capital budgeting decision, capital structure
outlay of the firm, decision related to the merger and acquisition, and all the investment
decisions of the firm. Thus, the finance manager plays an important role in any business
enterprise

 Reviewing and interpreting accounting and financial management policy, procedures, sta
ndards to ensure compliance; monitoring and examining accounts; specific accounts,
specific appropriations or financial records for account status and
reporting requirements; and verifying accounts documentation.

 Findings that identify cost saving through improved operations and following Planning
and conducting financial reviews of major programs and entities to evaluate the
reliability, effectiveness, and efficiency of the organization; making recommendations
based op on recommendations to ensure implementation.

RECORDS MAINTAINED
 Cash book

 Bank book

 Journal

 General ledger

 Asset ledger

OBJECTIVES OF FINANCE DEPARTMENT

33
Purchase journal, Sales pay book, Creditors ledger

Sales register

Subsidiary register like TA advance, Salary advance

For every business finance is considered as back born of its functioning. The success of concern
is measured in terms of financial position. Finance is one of the basic foundations of all
economic activities concern with the acquisition and the utilization of capital funds, assets and
over all objectives of business concerned. This is concerned with the proper utilization of
the financial resource of the company.
The financial controller with the proper utilization of the financial resource of the company. The
financial controller is the head of the department and two financial managers. The decision and
policies taken by the council will be passed by the financial controller through the finance
manager through the manager of each section. Finance department is concerned with
the planning and controlling of firm’s financial resource.

 MARKETING DEPARTMENT

The American marketing association (AMA) defines marketing as “the performance of the
business activity which directs the flow of goods and services from the producer to the consumer
to user.
After production the product are being sold in the market according the
ordertaken by the marketing department. The marketing department studies the marketand the tar
get consumer and decides the best way to reach their customers, and works with the rest of the
company to help determine the new product needs of the market. The company does continue
market research which helps them in planning and executing the new marketing strategies for the
future course of action also helps the company to analyze the buyer habits, popularity of product
and effectiveness of the advertisement media. It also helps in collecting information regarding
marketing problems and opportunities.

34
MAIN FUNCTIONS OF MARKETING MANAGER

 Sales operation

 Inventory management

 Production forecasts

 Control of sales

 Evaluating the marketing pulse

 Tailoring promotion plans and activities

 Monitoring delivery performance of distributors

THE MARKETING TECHNIQUES USED ARE

 Market research

CHANNEL OF DISTRIBUTION
Channel of distribution is the set of marketing intermediaries through which the goods flow from
the producer to consumer. The company had provided the door delivery system to
the wholesalers for the distribution of the products through their own vehicles and through the
different transporters. The company adopts a two-level distribution system consisting of
wholesale dealers and retail dealers. The company is satisfied with the existing arrangement.

SALES PROMOTION
Sales promotion plays an important role for the VKC foot wear products sales promotion
influences the customers for buying the product and also helps to reduce competition,
it popularizes the product so as to stimulate demand.

SALES PROMOTION TOOLS USED ARE:

 CONSUMER PROMOTION

 COUPONS

35
 DEMONSTRATION

 CONTEST

 PRICE OFFER

 DEALERS PROMOTION

 SALES CONTEST

 DEALERS GIFT

 PRODUCTION DEPARTMENT

Since VKC is a footwear manufacturing company the prime importance is to production process.
Company uses Italian technology for the injection molding process.
Moulding process is the main process of manufacturing. This process helps the company deliver
high-quality footwear with accurate size and good finish. There is a monthly target for
the production manager which they strive to achieve. Every employee is expected to take
responsibility for managing quality issues in order to minimize waste and maximize the quality.

FUNCTIONS OF PRODUCTION DEPARTMENT

 Purchase of raw material

The duty of the purchasing part of production department is to buy right quality raw material at
economical price and distribute it to various department as and when required.

 Estimating the budget

The top-level management decides the quality and type of materials bought and they prepare a
budget. In accordance with this the purchase department buy raw material.

 Receiving purchase requisition

36
A purchase requisition is given by the supervisor to reload stock time.

 Estimating the quantity to be brought

The quantity is determined by the stock availability in the factors.

 Selecting supplier
Company has a long list of suppliers out of which the management selects the best suppliers who
will give the right quality goods.

 Placing orders
After the supplier is selected company order for the material. The order should contain all
relevant details. Including,
Order number
Date
Supplier’s name
Quantity required
Price
Item ordered
Following up
After placing order purchase should get the conformation letter from supplier and also
department should have sent reminders about the delivery to suppliers.
Receiving and inspection of materialafter receiving the material it’s the duty the supervisor to
check the quality and quantity of the material before sending it to the store.

 Storage of raw material

The main function of stores department is as follows,
 Receive the incoming raw material and packing material

 To store material in convenient place

 Issue of material

 Tell authorities if there is out of stock condition

 Inventory management

37
  Stock taking

 Rejected material management

 Sales shipping details

 Maintenance of account

 Producing finished goods

The machine used by the company is imported from abroad. Footwear molds are brought from
Taiwan and china. The different machine used is
 EVA injection molding machine
 Blender machine
 PVC mixer
 Cooling unit
 Compressor
 P V C injection molding
Machine
 Generator
 Clicker
Stitching machine Quality achieving is done once in a while to ensure that production process
inefficient or not.

 Packing finished goods

The last function of the production department is packing the finished products into cartons
according to its name. Then all the cartons are sent to stockroom so that it can be send to
dealers according to the order placed.

After production these products are being sold in the market according to the orders taken by
marketing department. The marketing department studies the market and the target customers,
decides the best way to reach these customers, and works with the rest of the company to help
determine the new product needs of the market. We do continuous market research, which helps
us in planning and executing marketing strategies for the future course of action. It also helps us

38
in analyzing the buyer habits, popularity of product, and effectiveness of advertising media. It
also helps to collect information about marketing problems and opportunities. The company
executives are directly taking the orders from the wholesalers. The Company has very good
system for the supply of the products to the wholesalers.

Our product reaches the handoff customers through retailers, who get it from wholesalers. We
manufacture products based on demographic segmentation. As a result, we produce products
aiming kids, youngsters, gents and ladies at affordable price with high-quality. We produce
footwear under the name VKC Lite and VKC Pride.

VKC Pride is used for exporting to foreign countries. Slogan for VKC Pride is “Step into
the World of Proud’ and for VKC Lite “Step into the World of Ecstasy. The Company treats
advertising as the main mode of marketing to improve sales of our products.

Marketing and sales goes hand in hand. Sales promotion plays a major role for the success of the
VKC products.Salespromotion influences the customers for
buyingthe products and also helps to meet competition and helps in stimulating demands. Sales
Promotion is carried out in two ways.

Company provides an opportunity to the wholesalers to interact with the company and between
the dealers. This helps to find problems, sort out differences, and to formulate plans for future
improvement in the market. The adequate production, supply, good quality, affordable price of
the product, and the various marketing techniques used by the company helps products to be a
superior one in the market that satisfies the customer. Human resource department of the
organization caters to the need of both employees and workers of the organization, resulting in a
good relation between employers and workers. They are well satisfied with the attitude of the
management towards them and in the facilities provided to them. So, there are no labor strikes,
absenteeism and attrition.
The company provides excellent training programs for the employees to improve
skilland productivity with in a lesser time. The employees are getting the statutory benefits likeB
onus, ESI scheme, Employees Provident Fund, Festival Holiday Allowances from the company.
They are often given awareness class related to cleanliness, health and safety. Department heads
also make visits to quarters were workers are staying in order to ensure cleanliness in their

39
surroundings. HR department maintain a help desk in order to redress grievance of the workers
and answer to their queries. There are total of 214 workers in the organization.
Finance is life blood of every organization. It deals with procurement of funds and their effective
utilization in the business. Department has one department head, one senior executive and four
junior executives. Their functions mainly include checking daily cash accounts, MIS preparation,
bank reconciliation, central excise and export related works, finalization of account statement
etc. Materials department of the organization place order according to need of materialthat’s used
for production. Company follows EOQ system. Whenever they find that it has reached reorder
level or safety stock, order is placed.

 MATERIAL MANAGEMENT DEPARTMENT

A production unit to a normal means conversion of raw material to finished goods.

This sentence clearly says the importance of raw material in a production unit. In short, it is said
raw material is the base at a production unit. So much effectiveness has also to be takes at
handling raw material from the time of its purchase till it is issued to production. VKC group has
been provided with a separate department called Material management department for ensuring
the objective of effective purchase.

Purchase involves determination of requirements, finding the source of supply, placing the orders
and receiving goods. The total amount of goods produced by a business concern both of cash and
credit and is meant for sale is termed as purchase.

The function performed by this department includes;

 Preparation of Quotation
 Comparison of vendors
 Finally selecting of right vendors
 Receipt of materials

40
  Accept or Reject
 Send the material to store if accepted.
 Ending the bill to finance department for paying

OBJECTIVES
The fundamental objective of material management activities can be;
 Material selection
 Low operative cost
 Receiving and controlling material safety and in good condition.
 Issue material upon receipt of appropriate authority
 Identification of surplus stocks and taking appropriate measure to produce it

Company follows EQQ system. Whenever they find that it has reached recorder level or safety
stock, order is placed.

FUNCTIONS OF MATERIAL MANAGEMENT

a) Material Acquisition
Acquisition means procuring materials that are considered necessary for the production
and non-production activities with the organization. It is favorable when the company
purchases goods that meet the company requirements of quality, quantity, time and
location.
b) Material movement
It is a very important process in the manufacturing section as it helps in the
manufacturing of the product. Material manager keeps trade of the materials available on
the field while the process is going on.
c) Material storage
The purchase materials when found to be as per the requirements and when the purchase
materials are found accepted in quality and finally sent to the stock department for proper
storage. The store’s manager gives a list of duties done by the stores department; Receipt
of material, proper storage and Issue.

41
 CHAPTER 6
SWOT ANALYSIS

42
Strength
● High quality of product
● Strong brand image
● All type of footwear is reaching to the customers.
● The company maintains good employee-employer relations
● The company using quality raw materials for production.
● The company using modern technologies for production.
● Customer satisfaction.
● Competitive advantage in cost of production
● Management is very stable that forms strong foundation of the company
● Designing manpower development & Marketing

Weakness
● More emphasize on quality rather than design.
● High Import duties.
● The problem arising with maintenance.
● Lack of skilled human resource
● Less export
● Lack of proper utilization of R&D

Opportunities
● Company can retain all type of footwear.
● Company can provide the quality and variety products to customers.
● Better customer service
● Strong retail store network.
● The company have wild scope of geographical expansion
● Company as better tool for planning and decision making

Threats
● Changing the fashion trend
● Faces the competition from other products like Bata, Odyssia, Paragon, Mark.

43
● The conflicts arising from agent and middle man
● Government interference
● Technology advancement at faster rate

44
 CHAPTER 7
INTRODUCTION TO THE PROJECT

45
LITERATURE REVIEW
Miranda (2009) explores the rise of Bata as a major player in the footwear sector. Post World
War I, the international trade in footwear took a different turn. The large footwear exporting
countries like United States and UK gradually became world’s leading importers. In 1923, Bata
had 1800 workers with the daily production of 8000 pairs. In the next eight years the work force
was almost 20,000 and the production capacity exceeded 1, 30,000 pairs per day. Bata was a
family-run company located in Zlin of Czechoslovakia and it is the one and only firm with an
extraordinary size. The success of Bata can be attributed to producing footwear at very low costs
directed at the low purchasing power market segment. By 1931, Bata was exporting more than 2
million pairs of Blake Women’s shoes to the United States with a price as much as 60% less than
the similar footwear made in America.

Laurent et al (2010) older consumers generally buy older brands and the younger consumers
prefer innovative products. The data was from the French perfume market. The study reveals that
older consumers offer a unique opportunity to the manufacturers as they are likely to develop
long term attachment to a product or brand. The reasons identified for the attachment could be
nostalgia developed during the formative years. Therefore any move to either delete established
brands or introduce new brands or modify the contents of the existing brands should be
considered with great care. Also young consumers though preferred to try new brands still they
tend to adopt brands or products that are atleast more than three years old. The study gives a
valid input on how establishment of brand image becomes vital for the manufacturers.

Sirchuk Jennifer (2012) carried out a research project titled “Building Brand Loyalty through
Youth Consumers and the use of Grass Roots Consumer marketing”. The purpose of the research
project was to identify the different methods or ways in which an organization can enhance its
brand loyalty. The findings of the study revealed that branding can be used by the companies to
enhance brand loyalty among the consumers. Different methods for branding such as visual
consistency, quality performance and developing long term healthy relationships can be used to
enhance loyalty.

46
TITLE OF THE STUDY

A study on ‘Development of DeBongo brand to cater to the organized retail segment’.

PURPOSE OF THE STUDY

The major purpose of the study is to know the retailer’s and consumer’s response towards the
new brand of VKC named as DeBongo and to understand what can be done to develop and
promote the brand so that it can be catered to meet the needs of organized retail segment.
DeBongo brand of VKC has been introduced in the market about 7 months ago and it is the
newest, youngest and trendiest member of the VKC family. The company is under constant
search and finding the methods by which it can be made to cater the needs of an organized retail
segment.

OBJECTIVE OF THE STUDY

It is necessary to specify the objectives of the study. This is because specification of objectives
will enable us to study various areas and aspects with clarity. The following are the main
objectives of the study;

 To know retailer’s opinion about DeBongo brand of VKC

 To know the sales performance of DeBongo product
 To identify retailer’s perception about competito’rs products.
 To know existing promotional strategy for DeBongo brand
 To understand the prospective of DeBongo in organized retail segment.

SCOPE OF THE STUDY

 The study is aimed at understanding and analyzing the retaile’rs perception towards
DeBongo brand of VKC.
 The research was conducted in the geographical area of Calicut district.

47
LIMITATIONS

While conducting a Marketing Research, the researcher faces with a lot of limitations. The
present study is not an exception. A few errors have been expected despite of best efforts to
avoid them but this is expected that still the study is much relevant, in spite of the following;

 As the study is based mainly on primary data, the possibilities of personal bias can’t be
ruled out.
 The intention to reach to a large sample size could not be accomplished due to minimum
time constraint.
 Some respondents were reluctant to reveal the information on the pretext that they didn’t
have sufficient time.

Despite all of the limitations, efforts are being made to overcome the errors in the survey.

48
 CHAPTER 8
RESEARCH METHODOLOGY

49
RESEARCH METHODOLOGY

Research is a careful investigation or inquiry especially through search for new facts in branch of
knowledge. Market research specifies the information required to address these issues, designs
the method for collecting information, manage and implements the data collection process
analyses the results and communicates the findings and their implications.

Research problem is the one which requires a researcher to find out the best solution for the
given problem that is to find out the course of action, the action with which the objectives can be
obtained optimally in the context of a given environment.

RESEARCH DESIGN

A framework or blueprint for conducting the research project. Research design is needed because
it facilitates the smooth sailing of all or various research operations, thereby making research
process as efficient as possible, yielding maximal information with minimum expenditure of
effort, time and money. It specifies the details of the procedures necessary for obtaining the
information needed to structure and/or solve research problems. A good research design lays the
foundation for conducting the project. A good research design will ensure that the research
project is conducted effectively and efficiently. Typically, a research design involves the
following components or tasks:

 Design the information needed.

 Design the research.
 Specify the measurements and scaling procedures.
 Construct and present a questionnaire or an appropriate form for data collection.
 Specify the sampling unit and sampling size
 Develop a plan for data analysis.

DATA COLLECTION

50
Primary data was only method used for the study. The mode of collecting primary data is
questionnaire method. The questionnaire was filled by customers by offline method. Offline
method involved visiting 50 retailers of DeBongo products and asking them questions personally
and noting the answers for the same.

SAMPLE DESIGN

Sample Unit: Retailers of DeBongo products.

Sample Size: 50 retailers covering parts of Calicut district.

RATIONALE OF THE QUESTIONNAIRE

A questionnaire should fulfill all the requirements as discussed earlier, like it should be short,
precise, unbiased etc. however, if the questionnaire is not properly constructed, it will fail to
fulfill the objectives of the survey. In my research, I have set up 16 questions required to collect
the data which is necessary to complete my research work. Most of the questions asked are
closed response and multiple choice based questions. The importance of each question is thus
described below:

1. The first question resembles customer response. This is to know how well it has satisfied
the customers in terms of its quality, durability, style and all the other important features.
2. The second question is to check awareness of the brand, to see if everyone know the
product or are customers coming to stores asking this particular brand.
3. Respondent’s age is the third question to know which age group is influenced to buy
more of the company’s product.
4. The fourth question is to know the average sales of the product in a month to know the
attrition rate of the product selling.
5. Features or attributes of DeBongo product becomes the next question which are
important to know because presence of attributes make the product a special one and lets
customer to choose the product on behalf of these attributes.

51
6. The sixth question is to know whether the customers are willing to pay for superior
quality and to know their perceptions.
7. Seventh question becomes an important one for the development of the brand. This is to
know the comfortable price range of the customers.
8. Discounts are a part of sales promotion. Hence the schemes designed by the company in
appropriate schedules is very important because customer purchase the product more
when there is discount scheme available and retailers also sell the product more in
number with available discount schemes.
9. The next question is to know about the sales promotion schemes provided by the
company. Sales promotion are to stimulate the customer interest in products hence is a
crucial part of my research topic.
10. Creation of superior customer value and delivering high levels of customer satisfaction
are the core areas in marketing. The tenth question thus highlights to know the
performance of marketing efforts adopted by the company to increase the sales figure.
11. The eleventh question is to know whether the brand DeBongo of VKC is known in the
market compared to other major players in the market.
12. It is very crucial to make the comparison of DeBongo related to its competitor because
the results are essential ad any discrepancies will take the product to further development.
So the twelfth question is based upon this.
13. The next question is related to make comparison on price of the product with its
competitors. Pricing is essential for both the retailers and customers.
14. Relevance of the fourteenth question is to judge the overall opinion of the product
assumed by the retailers.
15. The fifteenth question asks about any element that is missed in the product. It is because
market is dynamic and hence to do the business, the product must correlate with the
market change.
16. Since the retailers are associated with the selling of products to the end users, they can
only depict the future of DeBongo products.

52
 CHAPTER 9
DATA ANALYSIS

53
Q1.Consumer’s response towards DeBongo brand of VKC?

RESULTS

CONSUMER RESPONSE NUMBER OF PERCENTAGE RATINGS

RESPONDENTS
EXCELLENT 3 6
GOOD 38 76
AVERAGE 8 16
BELOW AVERAGE 1 2
TOTAL 50 100

CONSUMER RESPONSE
2% 6%
16%

EXCELLENT
GOOD
AVERAGE
BELOW AVERAGE

76%

ANALYSIS AND INTERPRETATION

From the data collected above, majority of the retailer’s response was good for the DeBongo
brand of VKC which is of (74%).

54
Q2. Are the consumer’s aware of DeBongo brand of VKC?

RESULTS

AWARENESS NUMBER OF PERCENTAGE

RESONDENTS
YES 9 18
NO 41 82
TOTAL 50 100

AWARENESS

18%

YES
NO

82%

ANALYSIS AND INTERPRETATION

From the data collected above, the majority of the consumers are not aware of the new brand
DeBongo of VKC that is (82%).

55
Q3. What age of people purchase DeBongo?

RESULTS

AGE NUMBER OF PERCENTAGE

RESPONDENTS
LESS THAN 20 5 10
21-30 27 54
31-40 10 20
41 AND ABOVE 8 16
TOTAL 50 100

AGE
60

50 54

40
LESS THAN 20

30 21-30
31-40
20 41 AND ABOVE
20
16
10
10

0
LESS THAN 20 21-30 31-40 41 AND ABOVE

ANALYSIS AND INTERPRETATION

From the data collected it was found out that the majority of the respondents were from the age
category of 21-30 that is (54%) followed by the age category of 31-40 which is of (20%).

56
Q4. How many DeBongo items do you sell in a month on an average?

RESULTS

MONTHLY SALES NUMBER OF PERCENTAGE

RESPONDENTS
0-10 2 4
11-20 19 38
21-30 29 58
31 AND ABOVE 0 0
TOTAL 50 100

MONTHLY SALES
0%4%

0-10
38%
II-20

58% 21-30
31 AND ABOVE

ANALYSIS AND INTERPRETATION

From the data collected above it is seen than the average sales of DeBongo per month is 21-30
pairs which is of (58%).

57
Q5. Features that customer look for when purchasing a product from this segment?

RESULTS

FEATURES NUMBER OF PERCENTAGE

RESPONDENTS
PRICE 14 28
QUALITY 19 38
DURABILITY 8 16
BRAND IMAGE 9 18
TOTAL 50 100

FEATURES
40

35 38

30

25 28
PRICE

20 QUALITY

18 DURABILITY
15
16 BRAND IMAGE
10

0
PRICE QUALITY DURABILITY BRAND IMAGE

ANALYSIS AND INTERPRETATION

From the above collected data most of the respondents is of opinion that the feature the customer
consider the most important is quality which is (38%) followed by price which is (28%).

58
Q6. Are the customer’s willing to pay for superior quality?

RESULTS

WILLINGNESS TO PAY NUMBER OF PERCENTAGE

RESPONDENTS
YES 46 92
NO 4 8
TOTAL 50 100

WILLINGNESS TO PAY
8%

YES
NO

92%

ANALYSIS AND INTERPRETATION

From the above data collected, most of the respondents are of the opinion that customers are
willing to pay more for superior quality which is of (92%).

59
Q7.Accoring to you, what is the comfortable price range for the customer?

RESULTS

PRICE RANGE NUMBER OF PERCENTAGE

RESPONDENTS
LESS THAN 500 9 18
500-1000 22 44
1000-1500 16 32
1500 AND ABOVE 3 6
TOTAL 50 100

PRICE RANGE
50
45
44
40
35
30 32 LESS THAN 500

25 500-1000

20 1000-1500

18 1500 AND ABOVE

15
10
5
6
0
LESS THAN 500 500-1000 1000-1500 1500 AND ABOVE

ANALYSIS AND INTERPRETATION

From the data collected above the most comfortable price range of the customer is between 500-
1000 which is of (44%).

60
Q8. Opinion about discount offer by DeBongo brand ?

RESULTS

DISCOUNT OFFER NUMBER OF PERCENTAGE

RESPONDENTS
EXCELLENT 0 0
GOOD 12 24
AVERAGE 20 40
BELOW AVERAGE 18 36
TOTAL 50 100

DISCOUNT OFFER
0%

24%

36%
EXCELLENT
GOOD
AVERAGE
BELOW AVERAGE

40%

ANALYSIS AND INTERPRETATION

From the data collected above, majority of the respondents are of the opinion that the discount
offer by DeBongo product is average which is(40%).

61
Q9. Are you satisfied with the promotional support provided by the company?

RESULTS

PROMOTIONAL SUPPORT NUMBER OF PERCENTAGE

RESPONDENTS
YES 6 12
NO 44 88
TOTAL 50 100

PROMOTIONAL SUPPORT

12%

YES
NO

88%

ANALYSIS AND INTERPRETATION

From the data collected above, majority of the respondents are not at all satisfied with the
promotional support that is provided by the company which is of (88%).

62
Q10. Marketing effort of DeBongo compared to its competitors?

RESULTS

MARKETING EFFORT NUMBER OF PERCENTAGE

RESPONDENTS
EXCELLENT 4 8
GOOD 13 26
AVERAGE 30 60
BELOW AVERAGE 3 6
TOTAL 50 100

MARKETING EFFORT
70

60
60
50

EXCELLENT
40
GOOD
30 AVERAGE

26 BELOW AVERAGE
20

10
8 6
0
EXCELLENT GOOD AVERAGE BELOW AVERAGE

ANALYSIS AND INTERPRETATION

From the data collected above it is concluded that 60% of the respondents are of the opinion that
the marketing efforts by the company compared to its competitors is only average.

63
Q11. Do the customer’s know DeBongo brand as good as they know other competitor’s in the
market?

RESULTS

BRAND POPULARITY NUMBER OF PERCENTAGE

COMPARED TO RESPONDENTS
COMPETITORS
YES 10 20
NO 40 80
TOTAL 50 100

BRAND POPULARITY COMPARED TO

COMPETITORS

20%

YES
NO

80%

ANALYSIS AND INTERPRETATIONS

From the data collected above, it is clear that DeBongo brand have not become known(80%) by
most of the customers compared to other major players in the market.

64
Q12. Comparing to other company products, you rank DeBongo as?

RESULTS

PARAMETERS NUMBER OF PERCENTAGE

RESPONDENTS
EXCELLENT 10 20
GOOD 28 56
AVERAGE 12 24
BELOW AVERAGE 0 0
TOTAL 50 100

RANKING DEBONGO COMPARED TO

COMPETITORS
0
20
24

EXCELLENT
GOOD
AVERAGE
BELOW AVERAGE

56

ANALYSIS AND INTERPRETATION

From the data collected above, it can be seen that majority of the respondents rank DeBongo as
good which is of (56%).

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Q13. Comparing to other company products, the price range of DeBongo is?

RESULTS

PARAMETERS NUMBER OF PERCENTAGE

RESONDENTS
VERY HIGH 0 0
HIGH 0 0
REASONABLE 40 80
LOW 10 20
TOTAL 50 100

PRICE RANGE
0%

20%

VERY HIGH
HIGH
REASONABLE
LOW

80%

ANALYSIS AND INTERPRETATION

From the data collected above, it is seen that most of the respondents are of the opinion that the
price range of DeBongo is reasonable which is of(72%).

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Q14. Overall opinion about the DeBongo products by the retailers?

RESULTS

OVERALL OPINION NUMBER OF PERCENTAGE

RESPONDENTS
EXCELLENT 4 8
GOOD 29 58
AVERAGE 14 28
BELOW AVERAGE 3 6
TOTAL 50 100

OVERALL OPINION
70

60
58
50

EXCELLENT
40
GOOD
30 AVERAGE
28 BELOW AVERAGE
20

10
8 6
0
EXCELLENT GOOD AVERAGE BELOW AVERAGE

ANALYSIS AND INTERPRETATION

From the data collected above, it is seen than majority of the respondents are of the opinion that
DeBongo brand is good which is of (58%).

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Q15. What are the elements you miss in a DeBongo product?

RESULTS

PARAMETERS NUMBER OF PERCENTAGE

RESPONDENTS
FINISH 21 42
MODELS 18 36
DURABILITY 5 10
ANY OTHER 6 12
TOTAL 50 100

MISSING ELEMENTS
45

40 42

35
36
30
FINISH
25
MODELS
20 DURABILITY
15 ANY OTHER

10 12
10
5

0
FINISH MODELS DURABILITY ANY OTHER

ANALYSIS AND INTERPRETATION

From the data collected above it is seen that majority of the respondents are of the opinion that
the major missing element in a DeBongo product is the finish of it which is of (42%).

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Q16. In your opinion, what is the future of DeBongo brand of VKC?

RESULTS

PARAMETERS NUMBER OF PERCENTAGE

RESPONDENTS
EXCELLENT 31 62
GOOD 10 20
AVERAGE 9 18
BELOW AVERAGE 0 0
TOTAL 50 100

FUTURE
0%
18%

EXCELLENT
GOOD
20% AVERAGE
62% BELOW AVERAGE

ANALYSIS AND INTERPRETATION

From the data collected above majority of the respondents are of the opinion that the future of
DeBongo is excellent which is of (62%).

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 CHAPTER 10
FINDINGS, SUGGESTIONS AND
CONCLUSION

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FINDINGS
 Consumer’s opinion is taken into account while figuring out the sales performance. In
their opinion they rated DeBongo products as good one because they think that this is a
product in the market with good quality and affordable price. They also replied that it has
considerable quality which makes it a product for middle class and to some extend to
higher middle class.
 Since the brand has only been introduced in the market 7 months ago, the consumers lack
awareness of the product which should necessarily be taken care of. The retailers also
added that whenever a customer asks for a footwear in VKC brand, they introduce
DeBongo to that particular customer.
 The highest number of purchase is made by the age group 21-30 which is 27 out of 50.
The reason of more purchase made by this age group is due to likeness in design and also
pricing. Since the brand mainly focuses on the young generation, this targeting has
worked out pretty much as seen from the results.
 While conducting my survey in parts of Calicut district, I found out that there is very
good progress in selling of DeBongo products. 21-30 pairs recorded highest selling in one
month on an average in those shops which are primarily located in the city area. So
location and price are the two crucial factors which made to sell the product more in
number.
 The retailer consider quality and price as the most important attributes which got the
highest score. They added that most of the customers are more likely to be ready to spend
on quality assured products. They also replied that price is the second important factor,
when customers come for purchase, they look to the price tag and make selection.
 Majority of the customers in today’s world are ready to spend on items that are worthy
for the price that they pay. Thus, if one product gives them high quality, they will be
ready to spend their money on it.
 The comfortable price range of the customers was found to be between 500-1000 rupees
followed by 1000-1500 rupees in city areas where as in outskirts people are not ready to
spend this much amount making their comfortable price range to be below 500 rupees.
 Majority of the retailers voted that the discount offer of the product is not attractive.

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 Retailers said that promotional efforts of the product through internet, radio, contest,
sponsorships are not being done by the company to promote the product, which is
hampering growth in that area. Attractive sales promotion schemes can pull more
customers to purchase company products.
 Marketing efforts are not properly planned which results in rating average. Adoption of
new methods of marketing is less seen in Calicut areas, which eventually will affect the
sales. Marketing increases awareness among the customers and priority should be given
to these matters. Advertising, sales promotion, publicity, sales force should be upgraded
with time.
 Brand popularity of DeBongo compared to its competitors is really less and this should
be properly taken care of.
 Remarkably a huge percentage of retailers have marked DeBongo product as good due to
the product’s pricing and the quality that it offers. One more thing that they added is that
the product is largely accepted by the middle class consumers which are high in number
in the market and these customers look for items which is value for money. They said
only when offer comes with the product they will be able to do excellent business.
 DeBongo products have been launched in the market with an intention to target the young
generation in the country by offering good quality footwear at reasonable price. Thus, the
choice of option was a bit easy for the retailers to say that the price of the product is quite
reasonable.
 Most of the retailers are in the opinion to rate the products as good. The reason to mark
good is mainly due to a portfolio that has been created by introducing reasonably priced
items mainly targeting the young, vibrant and fashionable generation. So both the central
parts and the outskirts are of the same view point that the product is good.
 The retailers responded that finish is the one major thing that is a problem maker. They
also added that few customers returned back with the product complaining that the sole
has detached from the body and other few complaints related to the finish of the product.
 Retailers are in a view that DeBongohas an excellent future in footwear market, mainly
because of its value for money promise to the customers The key driver for the success is
the fact that unlike all other brands of VKC, DeBongo has wide variety of options to
choose from with amazing quality and also carries reasonable price.

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SUGGESTIONS

 The company should reduce the Rexene waste by efficient design of footwear
 Company should focus more on building a strong brand image through active
advertisement and should focus more on sales promotion techniques.
 Innovative advertisement are needed to compete in the market and thus the
company should focus more on humourous or emotional appeals in advertisement
since sentiments play a very important role in the Indian market culture and draws
more attention.
 Company should also provide attractive racks to draw the attention of customers.
 Company now producing limited number of design, so it is required to come up
with more innovative design to attract more customers to survive in the competition
 DeBongo is not the market leader thus company should follow new marketing
strategy.
 Company should provide attractive sign/boards to retailers for advertising the new
launch of models.
 The company should adapt to direct market and E-Business, so it will help to make
more profit.
 Inorder to increase the sales, provide more offers and discounts.

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CONCLUSION

The objective of the organization study is to benefit both the students working as interns as well
as the company for which the students are working. The students get to learn the basics of their
education and them turning into realities, whereas the companies could add value to their
services through the creativity and the innovative skills possessed by the new generation. The
internship periods, also helps a student to judge himself, whether, he would be able to adjust in
the corporate environment or not.

Quality products, economical price, attractive price etc.. of VKC FOOTWEARS provides better
market position of this company. The experience of more than 30 years lead the company to be
the market leader in all its markets. The brand name VKC Footwear is more and more acceptable
in the mind of people in all levels of the society

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75
BIBLIOGRAPHY

 www.vkcgroup.com
 www.google.com
 www.wikipedia.com

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