Business Environment

BUSINESS ENVIORNMENT
SEMESTER II

“TO ANALYSE THE ASPECTS INVOLVED IN COTTON

EMPORIUM'S DIGITAL MARKETING COMMUNICATION AND
CUSTOMER LOYALTY”

SUBMITTED TO:
Prof. Bikash Banerjee
Kirit P. Mehta School of Law

SUBMITTED BY:
Vaibhav Osatval
Roll no – E046

SAP ID- 81022019271

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TABLE OF CONTENTS
ABSTRACT............................................................................................................................... 3

INTRODUCTION ..................................................................................................................... 3

AIM ............................................................................................................................................ 4

RESEARCH QUESTIONS ....................................................................................................... 4

LITERATURE REVIEW .......................................................................................................... 5

RESEARCH METHODOLOGY .............................................................................................. 7

DATA ANALYSIS AND INTERPRETATION ....................................................................... 7

FINDING ................................................................................................................................. 10

LIMITATION .......................................................................................................................... 11

FUTURE SCOPE AND IMPLICATIONS .............................................................................. 11

CONCLUSION ........................................................................................................................ 12

REFERENCES ........................................................................................................................ 13

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ABSTRACT
While both words existed in the digital marketing world previously, the gap between these
two concepts was narrowed by the advent of online purchasing and technical advancements.
The purpose of this study is to focus on Cotton Emporium, an all-female ethnic clothing
company located in India, as well as worldwide. Striking a balance between physical and
online firms is critical to today's competitiveness, as it may be done through creating client
loyalty through digitization. The study's findings give vital insights on the future of the firm
as well as possible research subjects for further development. Using the questionnaire data
from Google Forms, the study gathered the primary results from a group of 100 participants.
As part of their investigation, the research team discovered five distinct components,
including: the new product line that is built around utilising social media for user experience.
Attractiveness increases as quality and price go up, and when there are more discounts and
off-line stores, and off-line event patterns. Due to these reasons, the decision to purchase
items from Cotton Emporium would be a better informed one.

INTRODUCTION
Many techniques are available to reach the clients that need to be served in the shop or outlet
that meets their demands. Nonetheless, the core driver for their purchase is the digital
marketing channel and the extent to which their customers are emotionally connected to the
business. The company has been successful in expanding into new product categories such as
furniture, clothes, textiles, and ethnic products made by artisans across rural India.

Even different businesses have distinct beginnings from which they get the idea of marketing
their products or services. Similarly, John Bissel founded a garment manufacturing company
that included diverse craftspeople from throughout the globe in ethnic apparel. East/West
cooperation in Indian handloom textiles was especially important to Bissell, who was eager to
demonstrate the finest elements of such cooperation. New Delhi built Cotton Emporium, a
retail store for textiles, toilets, and linens, some years after moving to Kailash. After a
thorough research, the focus of Cotton Emporium has shifted to selling cotton to the Indian
retail sector. In the beginning, they began with an export business, and over time, they
branched out into the manufacturing of furniture, home accessories, lighting, cabinets, and
cutlery. The team has further developed their corporate ties and now includes local farmers
and has started selling organic food and body care goods. Not only were they interested in the

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aspects of ethnic dress worn in cities, but they also wanted to help rural populations maintain
their previous-way of life.

We have artisans in India's main cities, as well as global locations in: Italy, Rome, and Dubai,
China. We have an urgent need to come up with fresh approaches. In order to better
comprehend the value-added assistance that might lead to a better client experience, Cotton
Emporium has to have a thorough understanding of the company's environment, customer
service, and quality.

To be competitive in the apparel distribution industry, existing retailers must comprehend

changes in customer behaviour in terms of rising demand, which impacts their service and
digital marketing purchasing decisions (Khan, 2017). The department store's in-store
atmosphere is critical to the overall operation. For sure, rural clothing businesses will also
have new chances with new sites. Examination of the many factors that influence consumer
behaviour, with particular regard to Indian views and preferences, is necessary.

AIM
To investigate the elements that contribute to the company's digital marketing communication
and customer loyalty – Cottom Emporium

RESEARCH QUESTIONS
1. What elements contribute to Cotton Emporium's digital marketing communication?
2. What elements contribute to the development of customer loyalty at Cotton
Emporium?

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LITERATURE REVIEW
Diversification has led to success in several industries for India, which is among the fastest-
developing countries. The fashion industry is in the early stages of developing in the digital
world. While working with clothes firms, it has introduced businesses to new partners and
also helped clothing companies do their jobs better. online buying is supported by numerous
services, making it more easier for customers to obtain high-quality online shopping
experiences.

Since the era of e-commerce has arrived, customers want their orders to be delivered in
digital form. Other purchases linked to delivery time might also be affected by gender
inequalities. It appears that males have a greater concern about delivery time when compared
to women, which may influence their online shopping behaviour. The study also found that
employees who are recommended by colleagues had a reduced chance of developing gender
disparities in online buying (Shukla, 2016). To verify that online shopping service quality,
dependability, simplicity of use, and access have an impact on customer perception, Lim
Ying San (2015) studied the various facets of customer perception and discovered that online
shopping service quality, dependability, simplicity of use, and access have an influence on
customer perception. Khalil (2014) looked at internet purchasing and found that it is great for
young people, those with disabilities, those who are pressed for time, and those who don't
have the energy or want to travel to a mall. According to the results of the research conducted
by Kuppuraj (2014), online shopping has been an essential part of our daily routine, and as a
result, shopping for online items is faster, safer, and easier with cheaper costs, allowing the
user to save time. In the instance of customer loyalty, digital marketing and customer loyalty
demonstrate how a particular company's various strategies maintain specific customers. when
making frequent repeat purchases of items or services It is crucial to maintain your customers
who have already proven their loyalty. Demographic sales in particular came from Chennai's
apparel and jewellery stores, with buyers in Bangalore coming in a distant second (Tiwari D.
, 2014). As the usage of the internet for online shopping continues to grow in India, more
people opt to buy things online rather than going to a physical store. It is clear now.
According to an analysis, Indian retail marketing by 2023 is projected to amount to around 56
billion dollars, with apparel, train tickets, and electronic gadgets being the majority of online
purchases. The e-commerce market, on the other hand, experienced a significant increase,

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growing by 88% from 2012 to 2016. According to ASSOCHAM (2013), A study by Arpita
Khare (2011) indicates the relevance of bargains and preferences, variables like layout,
homepage, displays, items, and payment mechanisms, including education and income,
which may be understood by knowing the difference between price and value. The internet is
a source of awareness for individuals, and it provides them with the amenities of
omnipresence (available 24/7 and round-the-clock) and time savings. The customer must be
served first. The aim of this study was to explore the reasons behind an investigation on the
importance of quality in the sector that deals with customers' demands. Hierarchical customer
demands for retail businesses are comprised of two layers. In the first level, we covered
fashion, design, variety, service, performance, and durability, with pricing and flexibility
placed on the second level. In a study conducted by Nielsen (2010), one-third of internet
consumers throughout the world preferred to purchase items and services online, and for
many, it was their first choice. New research conducted by Wen Gong (2012) found that
today's online customers are increasingly global, cross-cultural, and multicultural, and this
might be linked to improved consumer comprehension and online shopping behaviour.
Shopping online preferences, such as age, gender, attitudes, and other variables impacting
people's buying behaviours, have all been investigated by K.C. Mittal (2011). The results
showed increased disposable income, growing saturation of media education, and a move
towards higher levels of health. It has been proven by Alam (2008) that online customers'
trust, confidence, and overall perceived customer service are connected to their likelihood of
purchasing online. Marketers must understand that the online environment influences
consumers' perspectives, so that they give customers an additional value experience that
reflects trust. Ghaffari (2011) investigated this and determined that only the visual consumer
had knowledge, and this led to a boost in online shopping on the internet. It was also
anticipated that average-weighted women in digital wardrobe visualisation may potentially
harm online shopping. Delafrooz (2010) found that price, variety, and convenience were the
three primary variables that affected the attitudes of buyers while making online purchases.
While it is true that the apparel sector has been impacted by e-commerce, e-commerce has
had a greater overall impact on the general population. About half of internet users surveyed
said that they prefer to purchase products online, since they have faith in the e-commerce
environment and because they had previously purchased things such as books, music, toys,
and clothes (Horrigan, 2008). Great service has always been built on one central principle:
providing a quality shopping experience, regardless of how customers perceive that quality.
Marketers must understand this concept, since it is important for them to remain consistent
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with their level of service (Bitner, 2000). In order to consistently provide high-quality
service, everything relies on the degree of customer happiness. Satisfaction is a complete
impression from the consumer's standpoint. Customers' sense of value, quality, and
expectations are three of the key antecedents for customer pleasure, according to Fornell
(1996). Additionally, there was a positive correlation between customer satisfaction and
service quality (Cronin, 1992).

RESEARCH METHODOLOGY
This study will concentrate on how the combined effects of digital marketing and customer
loyalty influence Cotton Emporium, and hence, it is necessary to solicit information from
consumers outside of the brand. The major research conducted for this study was
interviewing consumers to better understand their perspectives on the shop in question.

The data were gathered from 100 Indian respondents using a Google Form survey, and used
to inform a report. General facts on Coton Emporium's digital marketing communications and
customer loyalty and customer preference while making a purchase are included in these
questions.

DATA ANALYSIS AND INTERPRETATION

Few tables and a graph have been chosen to describe the data. Understanding age, gender,
and source of information of Cotton Emporium are equally important factors in determining
the effect of the factor analysis.

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Figure 1: Pie Graph on Respondents Gende

In particular, it indicates who (gender) answered the questionnaire and which age group they
belonged to. As can be seen, most answers are from women aged between 16-25 and 26-35

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Figure 2: Bar Graph on Age of Respondents

Figure 3: Bar chart on how they came to know about Cotton Emporium

It can be seen from this survey that the vast majority of respondents discovered about
FabIndia through word of mouth, next through print advertisements, and finally online.
Through this example, you have a clear understanding of how word of mouth travels quickly
among those who have first-hand experience in offline/online stores.

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FINDINGS
Once data has been analysed by employing the analysis of the aforementioned component,
the research may now summarise numerous aspects that have a significant impact on digital
marketing and consumer loyalty at Cotton Emporium. They may draw on this knowledge and
put it to use in their physical and online channels (or change them).

1: A new product line: social media, as it increases the convenience of shopping online while
at the same time enhancing user experience. We will not know the full range of things we can
create in this product line unless we try out various new things and connect with our clientele
who would be interested in those kinds of things.

2: An atmosphere is created and customers are attracted via internal and external sources.
According to the questions that were asked and the interviewees who were surveyed, changes
in the products and how they are presented in the store encourage frequent visits by
consumers.

3: Consumers nowadays are always on the lookout for value-for-money. Whether it is in

quality, service, or online information about the product, they are searching for it. A price
increase, even if it's nominal, will not influence the decision of the client to purchase the
merchandise. Customers would still buy the products, even if the price went higher, provided
the quality of the information was equal between online-offline businesses.

4: Both offers and brick-and-mortar stores need on attraction in order to achieve success.
Price is something that has an influence on consumers' purchase decisions, and it is especially
crucial to keep people loyal in stores by always offering great deals. Discounts, special deals,
and gift vouchers increase the overall cost of a transaction. They compare goods not simply
to see if they can get a better bargain, but to get the best overall value. People are more likely
to stay on your website or in your business if you present them with more compelling offers.

5: Trends at offline festivals focus on more culturally relevant ideas. In India, festive themes
are essential to their culture. The results indicated that seasonal patterns and changes were
more prominent in their brick-and-mortar stores. This also involves varying offers, since
buyers are inclined to buy clothing in line with the seasonal trends since the culture
encompasses Since starting their business, Cotton Emporium has learned about both local and
global approaches. With change always comes the need for the firm to keep learning.
Consumers' tastes vary over time, making it challenging to decipher how to connect with

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them through various mediums. Digital marketing communication is updated every year and
necessitates businesses to stay current to be competitive, because ongoing brand purchases
are important. By serving customers a diverse array of goods, you may gain information
about your best clients. Your perception of a product's purchase is influenced by several
factors, such as prices, quality, and service, and thus devoted customers will support your
business since we're now conducting most of our business online. The Cotton Emporium has
succeeded in competing with firms that offer the same products, but at the same price. In this
situation, it is critical to be adaptive and dynamic, which will enable the company to reach
customers, especially with a change in methodology.

LIMITATIONS
Researchers' differing disciplines and backgrounds each impose their own restrictions on
their study. This study has certain weaknesses that may be addressed. Academic goals must
be limited by the research's time limitations. Research has been done in Bhopal, India,
limiting the size of the sample, which restricts the findings. Concrete sampling; by
completing a questionnaire in Bhopal, India, just Bhopal's population was included in the
research. A simple error may arise if two or more factors work independently and generate
unfathomable statistical connections that would discredit the findings. Some responders may
have just filled out the questionnaire using a casual manner. Because of the constrained study
design, the correctness of the findings depends solely on the answers to the questionnaires.

FUTURE SCOPE AND IMPLICATIONS

Cotton Emporium, as one of the major brands of ethnic and other product categories, should
be dedicated to e-commerce in the future. More than 300 million people are on the internet
today, with India behind China and the United States third in the world in terms of internet
population. This wide platform is extremely fast at connecting individuals around the globe,
and this eventually leads to the creation of networks. With the time saved owing to the rapid
log-in and purchase method, today's shoppers would most likely shop for their daily needs
through social networking sites. Keeping one's smartphone up-to-date improves the internet
market since customers are then more likely to go to the app system, which makes it easier to
choose an application. Regardless of where or when, one of the most crucial components for
product sales on the internet is control and flexibility. The digitalization avalanche has
dramatically changed our lifestyle with globalisation and many technological developments

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taking place on a regular basis. To survive in today's competitive landscape, a company must
actively engage consumers.

Retail weather is volatile, but there is still plenty of information and analysis available, which
may help influence customer preferences and affect their decision of whether to have a brick-
and-mortar shop or a virtual one. Because of this, analysing consumers to understand their
influence on various retail characteristics is a great use of time.

CONCLUSION
These factors have all been analysed and useful insights have been provided that may be
further investigated in different geographical locations (global). This result can also fluctuate
with the tastes and spending patterns of customers. Changes are unavoidable, but clothes
merchants may constantly try to adjust their thoughts to the consumer's perspective. The
study's learning result was based on the kind of primary research obtained from persons of
different age groups regarding its particular characteristics. This enabled buyers to monitor
Cotton Emporium and its offline/online shops in several ways. Not only were nice responses,
but also replies that were not accurate; this is true because human nature allows different
perceived notions about digital marketing communication and customer loyalty.

The main outcome of the research was to identify the connection between digital marketing
communication of Cotton Emporium and customer loyalty, which the data reveals clearly.
The main aim of this research was to give significant information so that the brand would in
the short term have a continuous stream of ideas and innovation in their goods and services.
This has attracted substantial attention in the purchasing behaviour of customers and their
customer loyalty. The design and effect of various marketing strategies is a key component of
the whole storey.

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