CHAPTER 2

LITERATURE REVIEW

Renuka Moorthy T.R and Devaraju (2010), in their article ` Customer Satisfaction; A comparative
Study in Retail Marketing’, measured the current level of customer satisfaction with the existing
provisions of services provided by various retail outlets in Mysore city. To analyze customer satisfaction,
they have evaluated variables such as the quality of products supplied, service and information provided,
customer support facilities, after sales services, discount, and customer delight. According to the analysis
Retailer `MORE’s customers are more satisfied than those of retailers such as` Spencer’s and` Loyal
World.’ They suggested that the retail outlet can specialize in certain varieties of products rather than
carrying a broad array of merchandise category. They recommended that customers would be satisfied if
the price matches the quality of the products and they would continue to purchase.

Frank. Q .Fu, Keith A. Richard, Douglas E. Hughes &Eli Jones (2010) stated in their research the
relative influence of sales personnel’s attitudes towards selling a new product, perceptions of subjective
norms, and efficacy on the development of selling intentions and ultimately, the success of a new product
launch. By examining sales person-level variance on a new product performance, the authors suggest that
managers should focus on increasing sales person’s self-efficacy and positive attitudes towards selling the
products to build selling intentions and quickly grow new product performance. They also suggest that
sales managers should resist the temptation to relay on normative pressure during new product
introduction.

Glenn. B.Voss, Andrea Godfrey &Kathleen Seiders (2010) have described that customer satisfaction
has no effect under certain circumstances. In their study the authors developed a framework for
understanding the complex relationships among satisfaction, moderating variables, and repurchases. They
propose that the satisfaction-repurchase link is subject to complementary and substitute effect and present
satiation and inertia as key theoretical mechanisms that explain and predict those effects. Telyhe findings
offer new theoretical insights and substantive guidance for managers to effectively allocate resources to
initiatives that complement or substitute for customer satisfaction.

Andez George (2010) revealed that studying consumer behavior enables marketing firms and
manufacturing firms to realize more about the consumer decision making process and helps to design
marketing strategies and promotional messages that will influence consumers effectively.
Dr.Shekhar and Shantanu (2011) evaluated products, price, store location, promotion, quality of staff,
process and environment to understand the retail strategy implemented by an apparel chain store at
Bangalore. They concluded that humorous commercials help customers remember a product. However,
no evidence has been found that humorous advertisements necessarily lead to the purchase of a product.

Md.Sanuwar Rashid (2011) in his article ‘the Structured frame of Category Management for
Optimisation of Retail Business’, stated that technological improvement and the frequently changing
fashion trends reduce the product life cycle. In this new environment ,a regular basis of supply of
products in the market is mandatory to retain sales opportunities at all times .Category Management
opens the door of opportunity for retailers to link up to suppliers to improve their service level. From the
customers’ point of view, at retailing shops having category management, a customer can easily compare
the prices of different brands of the same category. It encourages customers to buy their required product
as they are confident about the price and quality of the same product of another brand.

Sumedhu Kalia & Rishi Kalia (2011) in ‘Subhiksha; A Battle for Survival’ found that Subikshas being
small in size though in prime localities in a city with no air conditioning and fancy shelves and designer
things went against them. Customers could not get all brands they wanted making choice very limited.
Low assortment was another reason for the failure of Subhiksha. Another major problem they faced was
expansion without sufficient funds in hand. They concluded that for the success of chain stores, the retail
stores would have to identify with different life styles.

Nilesh Neelmani (2011) has studied consumer attitude towards FMCGs and compared private labels with
National brands. He found that consumers still believe that national brands have better quality compared
to private labels. At the same time consumers tend to believe that private labels have higher value for
money compared to national brands. It is also believed that national brands are less risky to buy compared
to private labels .The comparison means value indicates that the National Brands hold higher prestige
compared to Private Labels as far as consumers’ attitude is concerned.

Pratibha Goyal and Adithya Sharma (2011) described that the trend of retailing has changed from
kirana stores/grocers/provision stores to attractive air-conditioned retail outlets. The present day Indian
consumer seeks more values in terms of improved availability and quality of goods and a pleasant
shopping environment.

Ramanathan and Hari (2011) have studied retail variables distinguishing the selection of organized and
unorganized retail formats by the customers. They found that customer income is the basic variable that
determines selection where the low income group selects unorganized retailers while the high income
group selects organized retailers. They reported that there was no association between the respondent’s
age and the shopping experience at organized and unorganized retail formats. It was also found that
buyers perceived a difference among services offered by organized and unorganized retailers.

Manju Malik (2012) conducted a study on customer satisfaction towards the service quality of organized
retails stores in Hariyana and found that the majority of people visiting the organized retail outlets were
male and most of them belonged to the younger age group as well as to the middle income group. She
further found that dimensions of service quality were positively related to customer satisfaction. Product
quality, physical aspects and promotional schemes were the most important variables that determined
customer satisfaction. No gender bias was found in the case of variables mentioned above for choosing
products.

Praveenkumar and Asha (2012), stated in their article ‘Effectiveness of FMCG distribution with respect
to satisfaction of consumers in rural markets’ that at least one product should be made available under all
categories by the retailer, which will solve the purpose without brand and sometimes customers were least
bothered about good or bad. Many of the customers have their own methods to identify products, rural
customers, especially people who have an agrarian back ground do not buy branded products. They found
that customer dissatisfaction would be the result if the product length was too short in retail stores.

Singh Amarjit& Gupta Vinod (2012) Explored an overview of automobile industry. Indian automobile
industry itself as a manufacturing hub and many joint ventures have been setup in India with foreign
collaboration. SWOT analysis done there are some challenges by the virtue of witch automobile industry
faces lot of problems and some innovative key features are keyless entry, electrically controlled
mechanisms enhanced driving control, soft feel interiors and also need to focus in future on like fuel
efficiency, emission reduction safety and durability.

Daniel A. Moses Joshunar (2013) The study has been conducted to identify the financial strength and
weakness of the Tata motors Ltd. using past 5 year financial statements. Trend analysis & ratio analysis
used to comment of financial status of company. Financial performance of company is satisfactory and
also suggested to increase the loan levels of company for the better performance.

Dharmaraj and Kathirvel (2013), the Indian Automobile Industry marked a new journey in the 1991 with
the financial revolutionary New Industrial Policy Act 1991, opening automatic route which allowed the
100 per cent Foreign Direct Investment(FDI). Here, an attempt is made to find out the effect of FDI on
the financial performance of Indian Automobile Industry. For this purpose, sixteen companies were
selected and analysed through various financial ratios. Descriptive statistical tools like Mean, Standard
Deviation and Student‘s paired ‗t‘ Test were used to test the hypothesis. The liquidity analysis showed
little changes and profitability analyses showed an increasing trend during post FDI when compared to
pre FDI. The efficiency analysis showed that the companies are efficiently utilizing the available
resources during post FDI as compared to pre FDI. It is concluded that foreign direct investment in India
makes positive impact on the financial variables of the Automobile Companies.

The case study made by Madhuri Saripalle (2013) finds that speed of knowledge assimilation is more
important in the liberalized policy regime vis-à-vis protection when knowledge assimilation per se was a
more important economic goal with respect to the Indian automotive industry

Akamatsuet. al. (2013) made the study on the history of automotive technology development and
human factors research since the starting of the said industry. With 180 references the foundation of
automotive human factors has been analyzed with a number of strategies formulated for future growth
and development of this sector

R. Sankaran P. (2014) ―Financial Performance of Automobile Industry in India‖, analyzed that the
automobile industry has grown a reasonable capture in four wheeler companies in India. It plays a vital
role in the economic segments in both passenger cars and commercial vehicles in rural and urban areas.

Kumar's study in 2014, the relationship between leverage and profitability of Bata India Limited was
examined. The analysis was based on seven years of data from 2006 to 2013. It was suggested that Bata
India Limited should revise its capital structure to achieve an optimal blend of equity and borrowed
funds, which would have a positive impact on Return on 38 Investment (ROI). The degree of combined
leverage was found to be positively correlated with ROI, indicating that higher financial leverage can
help maximize shareholders' wealth. Despite the satisfactory financial performance of Bata India, it was
noted that the company was employing less debt funds, which prevented it from availing the benefits of
financial leverage. Hence, revising the capital structure would allow Bata India to utilize financial
leverage effectively to maximize shareholders' wealth.

Khedkar's paper in 2015, the relationship between financial leverage and return on investment,
operating leverage and return on investment, and combined leverage and return on investment for Dr.
Reddy's Laboratories was discussed. The analysis was based on data from the financial year 2013-14.
The degree of operating leverage was found to be significantly and negatively correlated with return on
investments, indicating that higher operating leverage could have a negative impact on ROI. The degree
of financial leverage and combined leverage showed a positive, but not significant, association with
return on investments. It was suggested that Dr. Reddy's Laboratories should revise its capital structure
to achieve an optimal blend of equity and borrowed funds, which would have a positive impact on
Return on Investment.

Zainudin's(2016) study on liquidity-profitability trade-off in small and medium-sized enterprises (SMEs)

in the Malaysian manufacturing sector (2006), a moderate positive association between liquidity levels
was found using nonparametric Spearman rank correlation coefficient analysis. The Kruskal-Wallis test
statistic was also employed to investigate whether different industry sectors had varying levels of
liquidity, confirming that indeed, different industry sectors exhibited different levels of liquidity. affected
by liquidity ratio, return on equity was not affected by current ratio, quick ratio, and liquid ratio,
whereas return on investment was significantly affected by all three ratios.

Abhilasha N. & Kumara N V Dr. M. (2017) A study was undertaken on financial evaluation of Indian
automobile company.They covered five years from the year 2012 to 2016.They have selected nine
samples for their study. The goal of their study is to examine financial position of selected companies.In
their study, every selected company shown different ratios because their policies work.It develops the
viable stock administration also; transformation period prompts higher the liquidity capacity to the firm.
In this manner, the examination demonstrates that there is a huge change in the mean estimation of
budgetary proportions.

Naziret. al. (2019) studied the latest global automotive industry‘s competitive strategies that made the
industry as one of the most competitive one. With 54 most relevant articles and data from 2017 and
2018 total 133 competitive strategies has been identified and analysed. The main objective of the study
is to make the automotive industry of the developing countries to improve the strategies suitable for the
current business trends.

Soumya, P., Deepthi, L. N., (2019) told that financial analysis is a method of reviewing and
analyzing a company’s accounting reports (financial statements) so as to urge a far better
understanding of its past, present, and future performance. the method of reviewing financial
statements helps to form better economic decisions. Around the world, it is legal for publicly
traded companies to submit their financial statements to the appropriate authorities. Some
companies within the United States must file reports with the Securities and Exchange
Commission (SEC). Firms are obligated to produce their financial statements within the annual
report they share with their stakeholders.

PARMAR, S. S. (2017) researched that the entire F.M.C.G. Market is above Rs. 85,000. The
company is growing rapidly and is expected to maintain this growth trajectory. The fast-moving
consumer goods (FMCG) industry is projected to be worth Rs 4 trillion by 2020. The process of
measuring a firm's financial performance in monetary terms is used to understand how well the
company is doing overall, and can also be used to compare similar companies or sectors. In this
study, ratio analysis is used to evaluate the overall financial efficiency of seven chosen FMCG
companies in India. The study was conducted to suggest ways to improve the financial efficiency
of the units selected for improvement.

Abbasi, Habiba. (2017) researched that by 2020, the Indian FMCG market is expected to more
than double to $104 billion from its current level of $49 billion. Ratio analysis, which plays a
very important role and is an integral part of the financial statements of any company, was used
to evaluate various aspects of FMCG's operating and financial activities, such as its efficiency,
liquidity, profitability. The present study focuses on examining how HUL and ITC compare on
various factors. HUL has over 16,000 employees and had an annual turnover of around
Rs.19,400 in 2010-2011. ITC has a market capitalization of over $40 billion and annual turnover
of $8 billion. The ITC group's contribution to foreign income during the last ten years amounted
to almost US$ 6.6billion, of which agriculture exports constituted 57%.

Patel, Harish., Patel, Dr. V. B. (2018) aimed to analyze fundamental position of major listed
FMCG companies using ratios. The aim of study is P&G, NESTLE, ITC, DABUR, and HUL.
Analysis was done using past three-year computed date of income Margin Ratio, profits margin,
Price to Earnings, Debt to equity ratio, Dividend payout ratio, Earnings per share starting April
2016 to March 2018.This study provides a specific presentation of data and guidelines which can
help a fresh investor likewise as a venture investor to understand vital aspects of investing. This
study helps to the investors to make a decision on a secure investment and to identify the
expansion opportunities within the long run.
Yasodha, Dr. M.; R, Aishvarrya; G, Anuraghavi; R, Krithika (2021) studied that the
Fastmoving consumer goods industry is projected to grow at CAGR of 27.9 to reach US $103.7
billion by 2020 and US $220 billion by 2025. This study provides a comparative analysis of
Britannia Industries and Marico Limited by evaluating and analyzing the company’s financial
statements, strengths and weaknesses to form proper economic decisions for this and future. The
analysis is finished with the assistance of assorted accounting tools - comparative record, swot
analysis and ratio analysis. The findings of the study show the liquidity position of the businesses
and therefore the article studies the financial position of both the businesses.