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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

CHAPTER 1
INTRODUCTION

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INTRODUCTION
Marketing is the human activity directed for satisfying needs and wants through an
exchange process while marketing management is the analysis, planning,
implementation and control of programs designed to create, build and maintain
beneficial exchange with target buyers of the purpose of achieving organizational
objectives.
There are two activities which are most significant in marketing: i.e. marketing the
product with demand that is customers needs and desires the transfer of ownership
in position at every stage in a flow of goods from the primary product to the
ultimate consumer.
Marketing comprises all actives including determination and satisfaction of
customers need at a profit.
The following report has been made based on the study. The study was conducted
in RUBCO SALES Company limited, Kannur. Marketing is the human activity
directed of satisfying the needs and wants trough an exchange process. In RUBCO
the entire range of product is marketed by RUBCO sales international limited. The
RSIL formulate market strategies for both domestic and international market.
The study was conducted to identify the marketing strategies of RUBCO Footwear
Company, Kannur. This study included the analysis and interpretation of the data
collected through the primary and secondary source. The study was significant in a
way that in the identification of the needs and wants of customers and to give the

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suggestions so that RUBCO Footwear(chappals) can improve their services and


become the better market leader in the sales.

RESEARCH DESIGN
In this project, the study aims at marketing strategies of RUBCO footwear industry.
Title of the study
The study of titled marketing strategies of RUBCO footwear is carried out in
RUBCO SALES INTERNATIONAL, KANNUR, KERALA.

OBJECTIVES OF THE STUDY


Primary objective
To study the various marketing strategies of RUBCO footwear
To know the effectiveness of marketing strategies of RUBCO footwear

Secondary objectives
To provide suggestion to improve the marketing strategies of RUBCO
footwear
To study and analyses the overall marketing strategy process of the
company.
Suggest the suitable measures to improve the sales and increase the
customer satisfaction

SCOPE OF THE STUDY


The present study is conducted to analyze the marketing stratergy of the footwears
in the organization. The scope of the study is restricted toKannur so the study is
conducted among the customers in Kannur area. This study is helpful to the
organization for conducting further research and also it helps to creates managerial
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decision about the marketing technique. Kerala State Rubber Co-operative is a


developing organization.

The research study helps to identify the marketing

strategy of the footwears in the organization. It is considered to be the corner


stone of marketing. Today such studies are very important for any organization
with the overall objective of improving quality & productivity. This project report
is useful to the management of the company to know the importance of marketing
technique.
The study was significant in a way that it helped in the identification of the
strategies, needs and wants of the customers

and to give suggestion so that

RUBCO Footwears can improve their marketing as well as sales of RUBCO


Footwear.

RESEARCH METHODOLOGY

RESEARCH
According to Clifford Woody, Research comprises defining and redefining
problems, formulate hypothesis or suggested solutions; collecting, organizing and
evaluating data; making deductions and reading conclusions and at last carefully
testing the conclusions to determine whether they fit the formulating hypothesis.
Methodology is the systematic procedure involved in conducting a research process.
It gives an idea about various steps adopted by the researcher in a systematic manner
with an objective to determine various manners. It deals with research design, sample
design, data collection methods and statistical tools used for analyzing the collected
data.

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RESEARCH DESIGN
According to KIRLINGER, Research design is the plan, structure and strategy of
investigation conceived so as to obtain answer to research questions and control
variance. This definition consists of three important term plan, strategy and structure.
The plan is an outline of the research scheme on which research is to work. The
structure of the research is more specific outline or the scheme and the strategy shows
how the research will be carried out, specifying the methods to be used in the
collection and analysis of data.
The 3 basic types of research design are
1. Exploratory Research Design
2. Descriptive Research Design
3. Experimental Research Design
The research design used for this study is of the descriptive type. Descriptive research
studies are those studies which are concerned with describing the characteristics of a
particular individual or group. The main feature of this method is that the researcher
has no control over the variables; he can only report what was happening.
Sample Size: In this study the sample size of 50 customers is taken.
PERIOD OF STUDY
The study was conducted for the period of 45 days from 15 th April 2016 to 31st
may 2016.

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SAMPLING
Sampling Unit
Single most unit of the population, it may be single person or group of persons, from
whom questionnaire will be filled till target is fulfilled. The sample unit in this report
is the employees of RUBCO FOOTWEAR KANNUR.
Sample Design
Sample Design refers to the technique of the procedure that the researcher would
adopt in selecting items for the sample.
Sampling Technique
Sampling is the process of obtaining information about an entire population by
examining only a part of it. Sample remains the only way when population contains
infinitely many members. The research was made by the survey in accordance to the
convenience of the employees. So the sample type is convenience sampling.
Convenience Sampling
A convenience sampling is a sample that comprises subjects who are simply available
in a convenient way to the researcher. There is no randomness and the likelihood of
bias is high.
Research Instruments
Structured open ended, closed ended also multiple choice questions.
Method: Respondents were contacted personally and interviewed.

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DATA COLLECTION METHODS


Data can be collected in a variety of ways in different setting and from different
sources. Data for this study are collected mainly in two sources they are as follows.

1. Primary Data
The source from which the data is collected for this study is mainly primary
information gathered through systematic questionnaire. Data was collected
through face to face interactions with the respondents.
COLLECTION OF DATA THROUGH QUESTIONNAIRE
Structured surveys/ interviews employ the use of a questionnaire.
A questionnaire consists of a set of questions presented to a respondent for answers.
The respondents read the questions, interpret what is expected and then write down
the answers themselves.
This method of data collection is quite popular, particularly in case of big enquires. It
is being adopted by private individuals, research workers, private and public
organizations and even by governments. In the methods a questionnaire is sent
(usually by post) to the persons concerned with a request to the questions and return
the questionnaire. A questionnaire consists of a number of questions printed or typed
in a definite order on a form or set of forms. The questionnaire is mailed to
respondents who are expected to read understand the questions and write down the
replay in the space meant for the purpose in the questionnaire itself. The respondents
have to answer the questionnaires to respondents is most extensively employed in
various economic and business surveys. The merits claimed on behalf of this method
are as follows:

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2. Secondary Data
Secondary data are existing information that may be useful for the purpose of
specific survey. Some data was available from the company profiles, product
manuals, company profiles, website of the company etc. External data was
also helpful in knowing the statistics.

LIMITATION OF THE STUDY

The study is limited only to the users of RUBCO products


Time at disposal of research was limited
The sample size cannot be considered as a true representation because the
study was based on the response of only 50 respondent

CHAPTER SCHEME
This project report is divided into five chapters consist of;
The first chapter is the introduction and design of the study, which consists of
introduction, objectives of the study, scope of the study, and significance of the study,
methodology, limitations of the study, and tools of analysis and chapter schemes.
The second chapter consists of review of literature and theoretical frame work of the
study.
The third chapter includes the profile of the study area which includes industry
profile and company profile.
The fourth chapter includes analysis and interpretation of the study.
The last chapter consists of findings, conclusions and suggestions based on the study.

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CHAPTER-2
REVIEW OF LITERATURE

REVIEW OF LITERATURE
Definition
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An organizations strategy that combines all of its marketing goals into one
comprehensive plan. A good marketing strategy should be drawn from marketing
research and focus on the right product mix in order to achieve the maximum profit
potential and sustain the business. The marketing strategy is the foundation of a
marketing plan.
Marketing strategy has its roots in the basic concepts of marketing and strategy.
Marketing strategy was probably used the first time that two humans engaged in
trade, i.e., an arms length transaction. Certainly, early civilizations, such as the
Babylonians, the Chinese, the Egyptians, the Greeks, the Romans, and the
Venetians, had developed marketing strategies for their trading activities. They
probably discussed appropriate strategies for given situations and even taught
these strategies to friends, family members, and subordinates. The actual function
of marketing, i.e., the distribution function was performed whenever exchange
occurred
Marketing strategy is the basic approach the business unit will use to advise it
objective and it consist of brand decision on target market, marketing positioning,
marketing mix and marketing expenditure level. Marketing strategy cannot be a
broad set of determination that would direct the entire marketing planning process.
Strategic marketing has shares faces i.e. customers wants of selected market
segments to achieve its objectives, it lags down strategies in four areas, product,
prices, promotion and places.
It is a decision making process thats involves the analysis of internal capabilities
and external environment of a firm in order to efficiently and effectively uses
marketing resources to achieve organizational objectives.

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Strategies at different stages in the product life cycle


Knowledge about various stages in the product life cycle enables marketer to
formulate better marketing strategies.
A. Introductory stage
The first stage, the introductory stage commence when a new product in market for
first time.
A firm can follow any one of the following strategies
1) Rapid skimming strategy
The features of this strategy are high price for the product and heavy promotion
expenses.
2) Slow skimming strategy
This is applied when;

The size of the market is small.


When the consumers are aware of the product.
When the non-availability of substitutes.

3) Rapid penetration strategy.


The features of this strategy are low price for the product and heavy promotional
expenses.
4) Slow penetration strategy
The peculiarities of this strategy are low price and very little promotional expenses.
B) Growth stage strategy
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After certain number of years the sale increases rapidly. It indicates the growth
stage. During this period, profit will increase due to the fail in the cost of
production and promotional expenses.
C) Maturity stage strategy
It difficult to increase sales which is always increasing. After sometime the rate of
growth will slow down. This is the stage of maturity
D) Declining stage strategy
At some point of time everyone has to face problem of reduce sales. This indicates
the commencement of dealing stage.
E) Abandon stage
Product of declining stage will not be able to exist in the market for a long time.
Strategies based on the share of firm in the target market;
Firms maybe classified on the basis of share of market they enjoy. It classified into
four:
1. Leader
2. Challenger
3. Follower
4. Nicher
MARKETING MIX

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Marketing mix is an important tool issued by marketing managers to design the


process of marketing in an organization. It is the policy adopted by the marketing
to achieve success in marketing.
The marketing process is very complex one, that includes the internal forces like
product, price, place, promotion are controllably by the firm, but the coeternal
forces like competition, technology, consumer behavior etc.are not within the holds
of the business firm. So the firms are adjusting their internal forces to meet with
external forces. The right decision about product, prices,place and promotion get
mix that best meets the needs of the customers can termed as marketing mix
From this definition, it is clear that marketing mix means the mixing, blending or
combining of the four controllable forces of elements of marketing, viz., the
product, the price, promotion and place or distribution into a marketing or program
by a business firm uses to produce the response it wants in the target market at a
particular time. In short, it is the optimum combination of the four marketing
elements or ingredients in the light of the current marketing environment.
1. PRODUCT MIX STRATEGY
A firm cannot depend on just one or two products. It has to deal in a number of
products. Product is the key element of marketing. It is the medium through which
the firm attains the twin objectives of consumer satisfaction and profit
maximization. In the words of William J.Stanton, "The product mix is the full list
of all products offered for sale by a company

Factors determining the product mix:


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It is difficult to determine the exact number of products items or lines in which a


firm should deal. The marketer should consider a number of factors, and then,
arrive at a fair conclusion. The following factors, usually, influence the product
mix decision of a firm:
1. Change in market demand:
Change in market demand are one of the factors influencing there is a change in the
market demand for a product, there will be change in the product mix. If the
demand for any new product has been constantly increasing, and if the firm is
capable and competing with its rivals, then it can include the new product M its
product mix.
2. Cost consideration(i.e. Cost of production):
The cost consideration, i.e., the cost of production, is one of the factors influencing
the product mix. If a firm is able to produce a new product A lower cost with its
available machine, Labour etc, it can produce the new product and expand its
production and expand its product mix.
3. Advertising and Distribution Factors:
Advertising and distribution factors influence the product mix. A firm using a wide
net-work of advertising and distribution channels can think of adding new products
to its product lin.

4. Image of the Producer:


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Sometimes product mix of an enterprise is changed to improve the image of the


producer, For instance, a decision may be taken to produce product of only high
quality just improve-the image producer.
5. Objective of maximization, of profits:
The objective of maximization, of profits influence the product mix .The product
mix is required to be changed so as A earn maximum profits. The production a less
profitable product in, be stopped and the production of more profitable product
may be increased to maximize profits.
6. Competitors action reaction:
Competitions action and reaction is one of the factors affecting the product mix. A
firm may have to change its product mix due to competitors action and reaction.
7. Financial resources of the firm:
Financial resources of the firm also decide its product mix. A firm an add new
product lines according A its financial capacity during the period of prosperity as
increase its profitable sales volume or drop out some existing items during the
period of depression.
8.

Production influences:
Production capacity firm may change its product mix. A firm may change its

product mix

with a view to use its production capacity more effectively and

efficiently, and thereby, reduce its overall net production cost.

9. Marketing efforts:
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Sometimes, the change in the product mix of an enterprise may be necessary A get
the maximum results a marketing efforts of the enterprise. For example, if a
product is not getting the desired response from the market, decisions may be taken
to stop the production of such a product and the resources of the enterprises may be
diverted to produce a new product.
10. Demand factor:
A firm can add to its product line a product which has a derived demand or
complementary demand for its product.
11. Objectives of the firm:
The objectives of a firm, say A stabilize or to increase the profits, to maximize or to
enter into new markets any motivate the firm to add new product to its product list.
Thus, the objectives of the firm also decide its product mix.
Elements of product mix
There are certain elements of product mix. The important Elements of product are:
2. Branding
3. Packaging
4. Labeling
5. After Sales Service

Meaning of Branding:
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Branding is the process of identifying the name of producer with his product by
affixing to the product or its container the trade name or brand represented by
words or designs in other words, it is the process of giving a trade name or brand,
such as Khatan voiles, pilot pen,pilotpen,stagebrand umbrella,501 bar soap,
etc. to a product to distinguish it from other similar products manufactured rival
produces. In short, it is the process by which a product is branded.
Meaning of Packaging:
Packaging is the general group of activities in product planning which involve
designing and producing the container or wrapper for a product.
Meaning of Labeling
Labeling is the art or acts a attaching or tangling the labels to the product for giving
information about the graders, uses and other valuable information about the
products.
Meaning of after sale services:
After Sale services refer to various services rented by a business firm to its
customer after the sales of goods are affected.
Expansion of product mix:
Expansion a product mix may be increasing the number a product it or the depth
within a line. A firm go for expansion only if it as sufficient finance, time & equi
pment.
Contraction of product mix:

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In certain circumstances, the management has to

drop the production of

unprofitable products. The objective of this is at eliminate low profit products and
to get more profit from fewer products.
Alteration of Existing product:
Alteration may be made either in designs, size, colour, or in the use of raw
materials or a quality may be changed.
Product positioning:
This method emphasizes the features of the product that will prove attractive to
consumers.
Trading up and trading down:
Trading up means adding high priced and prestigious products to the existing low
priced products with a view to increasing the sales of the existing low priced
products.
Trading down is just opposite to trading up. Trading down means adding low
priced product to exiting high priced prestigious products with the hope that people
who cloud not buy high priced old products can now go in for the low priced new
products.
Product Differentiation:
Product differentiation is a technique employed by a firm makes its product or
brand appear different from the competing products or brands.
Market Segmentation:

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The total market divided into a number of small homogeneous specific segments
which have wants and needs

2. PRICING MIX STRATEGY


A firm tries to achieve its long term pricing objectives through price policies and
strategies. The management of enterprises utilize price policies to guide itself in
making price decision over long periods.
Pricing polices provide the frame work and guide lines needed by a firm to make
reasonable, practical and effective pricing decision. A price polity is the standing
answer to recurring problems off pricing.
In the words of Cundiff and Still, price policies provide the guide lines within
which pricing strategy is formulated and implemented.
Price represents the value at good or service for both seller and the buyer.
Factors influencing pricing policies:
The various factors that influence the pricing decisions and pricing policies of a
firm are:
1. Business objectives:
There are a number of business objectives they are:
1.
2.
3.
4.
5.
6.
7.

Profit maximization in short period.


Profit maximization in long period.
Minimum return on investment.
Skimming the market.
Stabilizing brand loyalty.
Avoiding government interference.
Capturing target market share.

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2. Cost of the product:


Cost of the product is one of the most deciding factors. Generally, the price of a
product will not be less than its cost of manufacture.
3. Elasticity of demand:
The elasticity of demand of the product is one of the important factors influencing
pricing policy. For instance, if the demand for a product is inelastic or less elastic,
higher price may be fixed for that product.
4. Consumer satisfaction:
In modern marketing, which is consumer-oriented, the consumer influences the
price of a product. If the consumer feels that the value of the product to him is
worth the price, he will buy the product. Otherwise, he will refuse to buy.
5. Buyer psychology and behavior:
The pricing decision and policy of a firm is also influenced by buyer psychology
and behavior.
6. Characteristics of the product:
The characteristics of the product also determine the pricing policy of a firm. Some
of the important characteristics of the product which affect pricing policy of a firm
are nature of the product, stage of the product in its life cycle, Availability of
substitutes for the product, possibility of the postponement of the demand of the
product, product diversification.

3. DISTRIBUTION (PLACE) STRATEGY

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Distribution (place) strategy is our four elements of marketing mix, viz.,


product, price, promotion and distribution .Distribution is the most important
element. The success or failure of a firm depends largely upon the efficiency or
inefficiency of distribution.
Distribution of distribution system:
Distribution or distribution system has two, sub-divisions, they are:

Channels of distribution.
Physical distribution.

Channels of distribution
It refers to the pathway, path or rout taken by goods as they flow or move from the
point of production to the point of consumption
In the words of Prop.W. Stanton, channel of distribution is the route taken by the
title to the goods as they move from the producer to the ultimate consumer or
industrial user.
Physical distribution:
Physical distribution is an important element in the distribution strategy. It is
necessary to ensure that the goods produced by a firm are made available to the
customers when and where they want. It involves the actual movement of goods
from the producers, after their production and before their consumption, to the
consumers.

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In the words of William J. Stanton, physical distribution involves the management


of the physical flow of products and the establishment and operation of flow
system.
According to Cundiff and still, physical distribution involves the actual movement
and storage of goods after they are produced and before they are consumed.

4. PROMOTION MIX.
Promotion is one of four major variable of marketing mix, the other three
variables being product, pricing and place.
In the words of Philip Kotler, promotion compasses all the tools in the marketing
mix whose major role is persuasive communication.
According to William j.Stanton, promotion includes advertising, personal selling,
sales promotion and other selling tools. When a company develops a new product,
changes an old one or wants to increase sale of an existing product or service, it
must transmit its selling messages to potential customers. Promotion is the fourth
major components of companys total marketing mix.
Company orientations towards the Marketplace
There is certain philosophy which guides a companys to marketing efforts:
The Production Concept
The production concept is one of the oldest concepts in business. It holds that
consumers will prefer products that are widely available and inexpensive.
Managers of production oriented business concentrate on achieving high
production efficiency, low costs, and mass distribution. It is used when a company
wants to expand the market
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The Product Concept

The production concept holds that consumers will prefer that products that offers
the most quality, performance, innovative features.
Manager in these organizations focus on making superior product and improving
theme. A new product will not necessarily be successful unless the product is
priced, distributed, advertised, and sold properly.

The Selling Concept

In this concept people will not buy ordinarily. Therefore, undertake an aggressive
selling and promotion efforts. The purpose of marketing is to sell more stuff to
more people more often for more money in order to make more profit.

The Marketing concept

It is new trend, where instead of product cantered make and /sell philosophy
business shifted to it consumer cantered sense and respond philosophy. It holds that
the key to achieving organizational goals consists of the company being more
effective than competitors in creating, delivering, and communicating superior
customer value to its chosen target markets.

MARKETING SYSTEM
MEDIA STRATEGY:
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The underlying basis for effective media strategies is the fact that exposure process
is selective rather than random. Hence, the determination of the media to which the
consumer in the target market are exposed to, is crucial. The potential target
markets as defined by age, ethnic group, social class, or the stage in the family life
cycle have differing media preference.
ADVERTISEMENTS AND PACKAGE DESIGN
Advertisement and packages must perform two critical tasks-capture attention and
convey meaning. The target market, the product and the situation determine the
amount of attention a consumer can pay to a package or advertisement. If the target
market is interested in the product category, or in the firm or brand attention does
not constitute much of a problem; but interest in a product category is aroused
only when a need for it arises. Utilizing stimulus characteristics such as full page
ads, bright colors, animated cartoons, etc. an d typing the message to a topic in
which the target market is interested, will serve.
SOCIAL STRATEGY:
A principle that holds that a company should make marketing decision by
considering consumers wants.
PERSON STRATEGY:
Person marketing consist of activities undertaken to create, maintain or change
attitude or behavior toward particular people.
COMPETITIORS STRATEGY:

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Marketing strategy of the competitors also affects the selection of marketing


strategy. If the competitors have selected differentiated marketing strategy, the
enterprise also should the same type or marketing strategy. Otherwise it cannot be
successful.
POSITION STRATEGY:
The position of a product in the life cycle also influences the selection of marketing
strategy.

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CHAPTER-3
INDUSTRY PROFILE AND COMPANY
PROFILE

INDUSTRY PROFILE
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There are evidences which show that the history of the shoe starts in 10,000BC,
that is, at the end of the Paleolithic period (paintings of this time in caves in Spain
and in the south of France make reference to the footwear).Among the utensils of
rock of the men of the caverns there are several that were used to scrape the skins,
which indicate that the art of tanning is very old. In the Egyptian
hypogeum(underground chambers used to multiple funerals),whose age is between
6 and 7 thousand years, paintings were discovered representing the various stages
of the preparation of the feet and in hotter countries the sandal is still the most
used. The Egyptians sandals were made of straw, papyrus or palm fiber
Spanish cave drawings from more than 15,000 years ago show humans with animal
skins or furs wrapped around their feet. The body of a well-preserved ice man
nearly 5,000 years old wears leather foot coverings 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 as we find new material with which to
cover our feet.
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 area The Cuban heel may have been named for the dance craze of
the 1920s, but the shape can be seen long before that time. Platform soles, which
are one of the most recognizable features of footwear in the 1970s and 1990s, were
handed down to us from 16th century chopines. Then, high soles were a necessity to
keep the feet off of the dirty streets. Today, they are worn strictly for fashions sake.
The poultice, with its ridiculously long toes is not that different from the winkle
pickers worn in the 1960s.

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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 the world, one can see undeniable similarities. While the
Venetians were wearing the chorines, the Japanese balanced on high-soled wooden
shoes called get a. Through the shape is slightly different, the idea remains the
same. The Venetians had no contact with the Japanese, so it is not a case of
limitation. Even the mystical Chinese practice of foot binding has been
copied(though to a lesser extent)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 percent of American women wear
shoes 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.
The standardization of the numeration is of English origin. The king Edward
(1272-1307) was the first to uniform the measures. The first reference known of the
manufacture of footwear in England is of 1642 when Thomas Pendleton provides
4,000 pairs of shoes and 600 pairs of boots and shoes. In the middle of the 19 th
century the machines that helped in the confection of the footwear began to appear,
but only with the sewing machine the shoe started to be more accessible. From the
fourth decade of the 20th century on, big changes in the footwear industries began
to happen as the change of the leather by the rubber and synthetic materials mainly
in the female and infantile footwear. Probably the Pendletons employees made the
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shoes from the beginning to the end, but in the modern industry the process is
divided into many and distinct stages as:

Modeling: creation, elaboration and accompaniment of the models in the

manufacture process ;
Warehouse: act of receiving, storage, classification and control of the

leather and other materials;


Cut: operation of cut of the different parts that compose the cabedal(upper
part of the footwear).In the cut special blades and/or knives are used to

pressure the metallic molds in the leather surface and/or other materials;
Chamfer: leather preparation to receive the sewing;
Sewing: junction of the parts that compose the cabedal(upper part of the
footwear).In many companies this sector is subdivided in to preparation,

chamfer and sewing;


Pre-manufactured: manufacture of soles, shoe and slippers. Many
companies dont have this sector because there are specialized factories

that produce these materials;


Distribution :it controls the volume of production, revises the quality of the
materials and distributes them to the sections of assembling and final touch

(finishing);
Assembling :set of operations that join the upper part of the footwear with

the sole;
Finishing: final operations linked to the presentation of the footwear as

brushing, painting and cleaning;


Assembling and finishing : in many companies these two sectors are
organized in assembling line, that is work rates replaced in line and the
elaborating product incorporates the partial operations of each worker until

the end of the line, where the product results finished;


Expedition: packing, boxing and sending to the destination market.

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The Brazilian footwear history will include a description about the use of
footwear in Rio de Janeiro in 1816 and a description of a footwear factory and a
tannery in 1918.
INDIAN FOOTWEAR INDUSTRY AN OVERVIEW
Indian leather industry is the core strength of the Indian footwear industry. It is the
engine of growth for the entire Indian leather industry and India is the second
largest global producer of footwear after China.
Reputed global brands like Florsheim, Nunn Bush, St Michaels, Hasley,
Salamander and Colehann are manufactured under license in India. Besides many
global retail chains seeking quality products at competitive prices are actively
sourcing footwear from India
While leather shoes and uppers are produced in medium to large scale units, the
sandals and chappals are produced in the household and cottage sector. The
industry is poised for adopting the modern and state of the art technology to suit
the exacting international requirements and standard. India produces more of gents
footwear while the worlds major production is in ladies footwear. In the case of
chapels and sandals, use of leather material is prevalent in the domestic market.
Leather footwear exported from India are dress shoes, casuals, moccasins, sport
shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from
India is Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other
materials.
With changing lifestyles and increasing affluence, domestic demand for footwear
is projected to grow at a faster rate than has been seen. There are already many
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new domestic brands of footwear and many foreign brands such as Nike, Adidas,
Puma, Reebook, Florsheim, Rockport,etc. have also been able to enter the market.
The footwear sector has matured from the level of manual footwear manufacturing
methods to automated footwear manufacturing systems. Many units are equipped
with In-house Design Studios incorporating state of the art CAD systems having
3D Shoe Design packages that are intuitive and easy to use. Many Indian footwear
factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000
certifications. Excellent facilities for Physical and Chemical testing exist with the
laboratories having tie-ups with leading international agencies like SATRA, UK
and PFI, Germany.
One of the major factors for success in niche international fashion markets is the
ability to cater them with the latest designs, and in accordance with the latest
trends. India, has gained international prominence in the area of colours & Leather
Texture forecasting through its outstanding success in MODEUROP. Design and
Retail information is regularly made available to footwear manufactures to help
them suitably address the seasons requirement
The Indian Footwear Industry is gearing up to leverage its strengths towards
maximizing benefits. Strength of India in the footwear sector originates from its
command on reliable supply of resources in the form of raw hides and skins,
quality finished leather large installed capacities for production of finished leather
& footwear, large human capital with expertise and technology base, skilled
manpower and relatively low cost labor, proven strength to produce footwear for
global brand leaders and acquired technology competence, particularly for mid and

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high priced footwear segments. Resource strength of India in the form of materials
and skilled manpower is a comparative advantage for the country.
The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that
footwear sector is the most significant segment of the Leather Industry in India.
Table 3.1
The export targets from 2007-08 to 2010-12
(In Million US)
Product

2006-07

2007-08

2008-09

2009-10

2010-11

Actual Export
Leather

688.05

726.85

Footwear

1212.25

1967.88

Garments

308.98

358.53

Leather Goods

690.66

Saddlery & Harness 81.55


Total

2981.79

785.00

847.80

915.63

3428.83

4526.05

372.87

387.78

403.30

733.34

798.69

870.06

948.04

105.66

127.85

154.70

187.19

3892.26 4682.01

2597.60

5689.17

6980.21

India has emerged in recent years as a relatively sophisticated low to medium cost
supplier to world markets The leather industry in India has been targeted by the
Central Government has prodded and legislated a reluctant industry to modernize.
India was noted as a supplier of rawhides and skins semi processed leather and
some shoes.

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In the 1970s,the Government initially banned the export of raw hides and skin,
followed this by limiting, then stopping the export of semi processed leather and
encouraging local tanneries to manufacture finished leather themselves. Despite
protestations from the industrialists, this has resulted in a marked improvement in
the manufacturing industry. India is now a major
Supplier of leather footwear to world markets and has the potential to rival China
in the future (60% of Chinese exports are synthetic shoes)
India is often referred to as the sleeping giant in footwear terms. It has an installed
capacity of 1,800 million pairs, second only to China. The bulk of production is in
mens leather shoes and leather uppers for both men and ladies. It has over 100
fully mechanized, modern shoe making plants, as good as anywhere in the world
(including Europe).It makes for some up marks and Spencer (UK)
India has mixed fortunes in its recent export performance. In 2000 exports of shoes
were USS 651 million; in 2001 these increased to 663 million but declined in 2002
to 623 million dollars (See Statistics).
The main markets for Indian leather shoes are UK and USA, which between them
take about 55% of total exports.
India has not yet reached its full potential in terms of a world supplier. This is due
mainly to local cow leather that although plentiful, has a maximum thickness of 1.4
1.6mm, and the socio/political/infrastructure of the country. However, India is an
excellent supplier of leather uppers. Importation of uppers from India is an
excellent FTA with Europe or the USA.

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The potential is set to change albeit slowly, but with a population rivaling China
for size, there is no doubt the tussle for world domination in footwear supply is
between these two countries.
Few Interesting Facts:
The Indian footwear retail market is expected to grow at a CAGR of over 20% for
the period spanning from 2008-2011
Footwear is expected to comprise about 60% of the total leather exports by 2011
from over 38% in 2006-07.
Presently, the Indian footwear market is dominated by Mens footwear market that
accounts for nearly 58% of the total Indian footwear retail market. By products, the
Indian footwear market is dominated by casual footwear market that makes up for
nearly two-third of the total footwear retail market.
As footwear retailing in India remain focused on mens shoes, there exists a
plethora of opportunities in the exclusive ladies and kids footwear segment with
no organized retailing chain having a national presence in either of these categories
The Indian footwear market scores over other footwear markets as it gives benefits
like low cost of production of footwear of various types, both for export and
domestic market.

In a Nutshell:
There are nearly 4000 units engaged in manufacturing footwear in India. The
industry is dominated by small scale units with the total production of 55%.

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Indias share in global leather footwear imports is around 1.4% Major Competitor
in the export market for leather footwear are China(14%), Spain(6%) and
Italy(21%)
The footwear industry exist both in the traditional and modern sector. While the
traditional sector is spread throughout the country with pockets of concentration
catering largely to the domestic market, the modern sector is largely confined to
select centers like Chennai, Ambur, Ranipet, Agra, Kanpur and Delhi with most of
their production for export.
Assembly line production is organized, and about 90% of the workforce in the
mechanized sector in south India consists of women. In fact, this sector has opened
up plenty of employment opportunities for women who have no previous
experience. They are trained to perform a particular function in the factory itself.

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SWOT ANALYSIS OF INDIAN FOOTWEAR INDUSTRY


STRENGTHS:

Existence of more than sufficient productive capacity in tanning.


Easy availability of low cost of labour.
Exposure to export markets.
Managements with business background become quality and environment

conscious.
Presence of qualified leather technologists in the field.
Comfortable availability of raw materials and other inputs.
Massive institutional support for technical services,

manpower development and marketing.


Exporter-friendly government policies.
Tax incentives on machinery by Government.
Well-established linkages with buyers in EU and USA.

designing,

WEAKNESSES:

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Low level of modernization and up gradation of technology and the integration

of developed technology is very slow.


Low level of labour productivity due to inadequate formal training / unskilled

labour.
Horizontal growth of tanneries.
Less number of organized product manufacturers.
Lack of modern finishing facilities for leather.
Highly unhygienic environment.
Unawareness of international standards by many players as maximum number

of leather industries are SMEs.


Difficulties in accessing to testing, designing and technical services.
Environmental problems.
Non availability of quality footwear components
Lack of fresh investment in the sector.
Uneconomical size of manufacturing units.
Competition among units vying for export orders leading to undercutting.
Little brand image.
Poor labour productivity. Lack of awareness about consistent in plant training

and retraining- Inconsistent quality high rejection rate


Low machine and material productivity. Lack of quality job work units
Delayed deliveries
Weak support infra- structure for exports

OPPORTUNITIES:

Abundant scope to supply finished leather to multinationals setting up shop in

India.
Growing fashion consciousness globally.
Use of information technology and decision support software to help eliminate

the length of the production cycle for different products


Product diversification - There is lot of scope for diversification into other

products, namely, leather garments, goods etc.


Growing international and domestic markets.
Exposure to newer markets through Fairs/ BSMs
Retain customers through quality supplies and timely deliveries
Aim to present the customer with new designs, infrastructure, and country &
company profiles.

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Use of modern technology


Exhibit strengths in manufacturing, for example, strengths in classic shoe

manufacturing, hand crafting etc.


De-reservation of the footwear sector.

THREATS:

Entry of multinationals in domestic market.


Stiff competition from other countries.(The performance of global competitors
in leather and leather products indicates that there are at least 5 countries viz ,
China, Indonesia, Thailand, Vietnam and Brazil, which are more competitive

than India.)
Non- tariff barriers - Developing countries are resorting to more and more non

tariff barriers indirectly.


Improving quality to adapt the stricter international standards.
Fast changing fashion trends are difficult to adapt for the Indian leather

industries.
Limited scope for mobilizing funds through private placements and public
issues, as many businesses are family-owned.

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COMPANY PROFILE
RUBCO SALES INTERNATIONAL PRIVATE LIMITED. Is a company
formed and promoted by Kerala state rubber co-operative society. Since Rubco
registered as the co-operative society to market and improve business as well as
international trade. This was the reason behind the formation of private company
and this company fully owned by the Rubco.
Rubco sales international private ltd. is the sales and marketing outfit of entire
range of products and a variety of product line of Rubco group of companies. The
company is run by eminent professionals with the active support from the
management. The company could establish a good distributer- dealer network and
it is expanding its horizon throughout the world. Apart from the domestic sales the
company is exporting the range of products various continents. With the short span
of inception Rubco sales international ltd. could effectively develop a competent
network in global market.

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Apart from sales and marketing Rubco sales international private ltd. is responsible
for the excellent customer relations, gathering market information and monitoring
supply chain. The company is committed to provide enhanced satisfaction for both
dealers and consumers and improve their performance in all spheres of its
activities.
Today India enjoys 4th position in the production of natural Rubber (NR) in the
world. Among the total production, small state of Kerala contributes 92%. So
rubber has become the backbone of our economy. Due to the bad impact of
globalization the overall market of rubber fell down Kerala, that time instability in
price of rubber was one of the major problem that farmers facing in the market.
The farmers were no getting fair price for their effort. But this problem has come to
an end since 1997, because The Kerala State Rubber Co-operative Ltd. (RUBCO)
came into existence in this year on the purpose of exploring the infinite
possibilities of rubber. Since its inception in 1997, RUBCO has traveled long. It
has entered into various Rubber and Rubber wood based industries like Hawai
Chappel with reputed Malaysian Technology, Cycle Tyres and Tubes, Rubberized
Coir Mattress, conventional and procured tread rubber, block Rubber (SMR), Pale
Latex Crepe (PLC), casual shoes etc.
R

Reliable

Unique

Beautiful

Convenient

Original

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VISION AND MISSION


For last half decade with a vision to become a global leader in the production of
natural rubber products and innovative product development, RUBCO adopts the best
and latest process in the production.

RUBCO means Rubber and Rubber means RUBCO


Today, from a single unit company, RUBCO has grown into a Rs. 280 crore
conglomerate with well diversified operations. Divisions operating under Rubco group
are involved in a wide range of business such as Footwear, Furniture, Cycle Tyre and
Tube, Rubberized Coir Mattresses and Natural Rubber. Rubco is the largest Exporter
of Natural Rubber to all leading Rubber based companies in India. Rubco is led by a
professional management team and supported by a committed workforce. Rubco is
now poised to enter a high growth phase with several initiatives that will take the
Group on path Expansion and Diversification.
OBJECTIVE SOCIAL
To ensure a steady market with remunerative price to rubber growers for their
natural rubber
Welfare of rubber grower particularly of small and marginal segment
OBJECTIVE COMMERCIAL
To Promote, establish, maintain and manage the business related to
manufacture and sale of tyres, both radial and bias for Heavy Vehicles, LCV,
Passenger Cars and other four wheelers.
Tyres for three wheelers and two wheelers
Purchase and sale of rubber in any form such as Latex, Sheets, Crumbs and
Laces
Manufacturing of Rubber Wood based on products

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GROWTH AND DEVELOPMENT OF ORGANIZATION


Kerala State Rubber Co-operative Ltd (RUBCO) has in a short span, redefined the
way the cooperative sector functions and set the pace for the co-operative Movement
in Kerala today. Rubco was set up in the year 1997 with the objective of effectively
utilizing the abundantly available rubber resources of Kerala. Today, from a single
unit company, Rubco has grown in top an Rs.280 crore conglomerate with well
diversified operations and market presence extending beyond the boundaries of
Kerala. Rubco manufactures and markets variety of products from footwear to
furniture, from Cycle tyre tube and tyres to mattress.
Rubco has also entered into technological alliances with world leader in the respective
field sourcing from them state - of - art technology. Substantial investments in modern
manufacturing facilities, coupled with well organized marketing activities, have seen
Rubcos products earn a reputation for quality and significant market shares.
Rubco is largest exporter of natural rubber in the country today. Even in the domestic
market, Rubco is a major supplier of natural rubber to all leading Tyre combines in
India. Rubco is also a Government intervention agency towards market stabilization
and has been serving the farming community directly and indirectly to get reasonable
price, arresting drastic fall in price during peak production periods; natural rubber
trading has being a blend of social obligation and commercial practicability led by a
professional management team and ably supported by a committed workforce, Rubco
is now poised to enter a high growth phase, with several new initiatives that will take
the group on a path of expansion and diversification rubber holds immense potential,
Rubco hopes to create opportunities and bring Industrial progress to a land that
accounts for 92% of the countrys natural rubber production.
PROMOTERS

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Government of Kerala along with Indian Rubber Board and some district and primary
Cooperative Banks in Kerala are the promoters of RUBCO. Government of Kerala
holds the majority of the shares. The top share holder are Government of Kerala,
Rubber Board, Kottayam District Cooperative Bank,Ernakulam District Cooperative
Bank, Palakkad District Cooperative Bank, Kannur District Cooperative Bank,
Thrissur District Cooperative Bank, Trivandrum District Cooperative Bank and
Kollam District Cooperative Bank.
MILTESTIONS OF RUBCO

9th June 1997

Registered RUBCO, Commenced operations


in October in the year same year

15th October 1997

Commenced procurement of rubber

17th February 1998

Commenced procurement of rubber from


farmers through depots

28th May 1998

Foundation

stone

laid

for

foot

wear

manufacturing factory and thread rubber


manufacturing

unit

at

Koothparambu,

Vaiuavelicham Industrial Centre.


June 1998

Exported rubber to Singapore & Nepal

July 1998

RUBCo

takes

over

the

reins

Sreekandapuram Latex (Pvt). Ltd

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11th February 1999

Entred in to an important agreement on


technological collaboration for manufactures
of ultra light weight footwear with H-tech
sectors

2nd March 1999

Foundation stone laid for P.L.C. factory in


Sreekandapuram

23rd June 1999

Signed significant technical collaboration


agreement with long Huat Berhad of
Malaysia for the processing of wood and

13 August 1999

furniture that
Rubco Footwear hit the market

19th October 1999

Foundation Stone laid for the rubber wood

th

processing and furnituring unit


30th October 1999

Foundation stone laid for Rubberized coir


foam Factory at Pampady , Kottayam

9th December 1999

Entered into an agreement with M/s Tog Teik


(Pvt) Ltd of Singapore to Export 15000
Metric tons of rubber first time from India.

8th March 2000

Entered in to a technical collaboration with


Pancarwarna management and Consulting
service. Malaysia for Manufacture of casual
of shoes.

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6th May 2000

Foundation stone laid for casual shoe project

1st January 2001

Rubco

huat

wood

furniture

factory

commenced commercial production


16th June 2001
20th April 2002

Incorporation of RUBCO tire India Pvt. Ltd


Started activities of coconut complex for the
production of virgin coconut oil and ancillary
products

6th December 2002

Started RUBCO RUFAS Scheme (collection


of natural rubber latex from farmers)

20th December 2002

Expression of interest submitted to the


government of Kerala for setting unit for the
production

of

rubber

components

for

automobiles and with a capital. Outlay of 20


million USD
23rd January 2003

Signed MOU with Coconut Pacific Pvt. Ltd


of Australia for the production of Coconut
Virgin oil

PRESENT STATUS OF THE ORGANIZATION


Rubco is a well diversified industrial conglomerate with a strong presence in the
rubber based industrial segment. Rubco was formed with the prime objective of
utilizing abundantly available rubber resources of Kerala. In a short span of time

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Rubco has successfully introduced a wide range of fast moving rubber based products.
Today Rubco group of companies has established new factories of Rubber Footwear,
Cycle Tyres & Tubes, Rubberized coir mattress, processed rubber and rubber molded
coir mats.

RUBCO FOOTWEAR DIVISION-Making Impressive Strided


Rubcos footwear division manufactures a range of quality casual rubber Footwear.
The plant employs sophisticated machinery and has production capacity of 3.6 million
pairs annum. The product range includes sturdy regular and comfy ultra-light
(manufactured under the renewed Malaysian technology), perfect blend, quality raw
material and superior manufacturing methods make the Rubco range second to none.
In the short span, Rubco has made its presence felt in fiercely competitive markets on
account of the excellent quality of its products. This division also manufactures honey
comb rubber mats in fascinating colors.
Rubcos footwear range presently comprises of three leading brands Rubco Hawaii,
Rubco Rainbow and Rubco Classic, Rubco Hawaii has durable flexi strap, soft insoles
and power grip technology, offering true value for money, Rubco Rainbow is a
colorful range of ultra light casual footwear with cushioned insoles and extra soft
straps. Rubco classic is a top quality Hawaii that provides excellent wearing comfort
and durability.

RUBCO CYCLE TYPES& TUBE DIVISION- On the Fast Track


Rubco Cycle Types & Tube division has already gone on stream manufacturing a
range of sturdy, technologically superior cycle tyres and tubes suitable for rough
terrains and track. The production facility spread over 25000 sq.ft. Is equipped with
modern imported machinery including Taiwan made CNC mould which imparts better
finish to the tyre. The plant has an annual installed capacity of 3 million tyre and tube.
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Rubcos range of cycle tyres and tubes has advanced features such as high non-skid
depth improved wet-skid resistance. High tensile copper coated steel bead wires add
durability and rim holding capacity. The entire range of cycle tyres is being exported
to the U.K.

RUBCO HUAT WOODS PVT.LTD - Design on the Future.


A joint venture with Long Huat Group Berhard of Malaysia, a world leader in rubber
wood furniture, this division manufactures a range of elegant furniture and quality
edge-geld panels using the eco-friendly rubber wood. Rubber wood properly treated
and processed, is emerging as the deal substitute to rain forest wood, as it offers the
same strength, durability and finish as the latter, and also helps preserve the
environment. The furniture manufacturing plant has a processing capacity of 40.000
metric tons per year. The products are being exported to UK, USA, Japan and many
other countries across the globe.
Rub wood, the furniture range, comprise of dining tables and chairs, designer
wardrobes, futons kitchen cabinets and computer and office furniture and is available
in the choice of designs and finish. The edge-geld panels manufactured using
sophisticated finger jointing technology, are easy to saw, drill, bore on stain and have
excellent nail- holding capacity.

RUBCO SREEKANDAPURAM LATEX PVT. LTD- Tapping new


opportunities.
Rubco Sreekandapuram Latex Pvt. Ltd became a part of the Rubco group when a lossmaking unit was taken over by Rubco by acquiring 65% of its shares. In a short span
of time, by sound backroom operations unit was turned around and is today posting
profits. The company manufactures Block Rubber ( ISNR) and pale Latex
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Crepe( PLC).Rubco is in the process of expanding the scope of operations of this unit
in line with market trends .

RUBCO SALES INTERNATIONAL LTD- Crafting Winning


strategies
Rubco Sales International (RSIL) is a public Ltd. Company promoted by Rubco to
spearhead the sales and the marketing activities for Rubcos entire range of product in
the domestic and international markets. Within a short span of its inception, RSIL
could effectively develop a deft, competent network domestically as well as globally
and undertaken the successful launch of Rubcos product. Apart from gathering
market information and monitoring the supply chain system, this division is also
responsible for nurturing and sustaining excellent customer relations.

VIRGIN COCONUT OIL


The project envisages establishment of 100 co- operative coconuts processing
units in kerala. To start with, this will be increased to 200 units subsequently for the
production of coconut oil directly from green coconut nuts without going through
conventional copra or milk route. The process methodology is commonly known as
Direct Micro Expelling (DME) Technology. The centralized packing unit is at
Thalassery in Kannur District. The place is accessible by road and rail from all other
parts of the country. The place is blessed with all infrastructure facilities for setting of
such a project.
Coconut oil extracted from fresh coconut kernel by Direct Micro Expelling
Technology is of very high quality and commands a premium price because of its use
as a health product. This is a highly sought after item as a health product and is used
as massage oil and also as baby oil for massaging small kids. Coconut oil is a much
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sought after product for edible use in the households and non-edible use as hair oil
and as cosmetic and industrial oil.
The project also proposed to set up a centralized packing cum marketing unit for
Virgin coconut oil manufacturing the cooperative processing units.

FUTURE OF THE ORGANIZATION:


The main future plans and the progressing proposals of Rubco group are:

RUBCO TYRES INDIA (PVT) LIMITED


Rubco is in the process of setting up a project for the manufacture of tyres and tubes
for two and three wheelers, passenger cars, heavy duty trucks and light commercial
vehicles. The ground work is underway and the division will be launched in the near
future. It will have a production capacity of 6 million tyres and tubes annually.
Location:
The project will be located in the proposed industrial growth centre being developed
at Valiyavelicham, about 35 Kms from Kannur city.

Capacity and Product Mix:


The plant will have a 2.33 million numbers of radial and bias tyres per annum which
75 million would be utilized for the truck drivers, 1.5 million for light type
passengers tyre and balance would be for two or three wheelers.

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ORGANIZATION STRUCTURE

MANAGING DIRECTOR

G.M(FINANCE)

INTERNAL
AUDITOR

SENIOR
ACCOUNTANT

ACCOUNTANT

CLERK

G.M(TRADING)

COMMERCIAL
MANAGER

COMMERCIAL
OFFICER

COMMERCIAL
ASSISTANT

GRADER

ASSISTANT
GRADER

G.M(PROJECT)
)

G.M (HR)

APO

EXIM DEPT GM(MARKET)

EXIM
OFFICER

PA/PS

PROJECT
ASSISTANT

SENIOR
CLERK

RECEPTIONIST

CLERK

JUNIOR
CLERK

JUNIOR
EXIM
OFFICER

MARKETING
MANAGER

SALES
MANAGER

ASST.EXIM
OFFICER

ASST.SALES
MANAGER

CLERK

SALES
EXECUTIVE

ELECTRICTIAN

CLERK

DRIVER

ATTENDER

SWEEPER

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SECURITY

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BOARD OF DIRECTORS
Administration and management comprises of a board of directions with 15
members as follows

9 directors elected by A class share holders from among themselves.


2 directors elected by B class share holders from among themselves.
4 ex-official directors namely
1. Registrar of co operative society Kerala
2. Chairman of the Indian Rubber Board
3. President, Kerala State Rubber Co-operative Ltd
4. Managing Director of Rubco

The team of office directors shall be five years from the date of assumption of the
office. The co-operative cannot receipt deposit or loan in excess of 50 times the paid
up share plus reserve fund of co-operative societies. This limit is not applicable to
funds received from the central and state Govt. or other agencies like NCDC, rubber
board etc.
Rubco has a chairman, a president and MD, all elected from among the board of
member.

PRODUCTION DEPARTMENT
Production function is that part of an organization, which is considered with the
transformation of a range of inputs into the required outputs (products) having the
requisite quality level.

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RUBCO

RUBCO HAWAI CHAPPAL


LATEX
DIVISION
RUBCOUNIT
HUATWOOD
RUBCO
UNIT
MATTRESS
DIVISION
RUBCO
TYRES AND RUBCO
TUBES UNIT
RUBCO
NATURAL RUBBER TR

1. Rubco Hawai Chappal unit


Rubco Hawai Chappal unit manufactures a range of quality casual rubber foot
wear. Once at a time Rubco was the market leader, but they could not adopt the
new trends. With the innovation PUC material all other major companies where
followed the new style except Rubco. Now Rubco rank third place in the footwear
market.
The plant built in Malaysian technology with collaboration of M.S Hitesh Setter,
SDN and SHD. This unit produces both conventional and ultra light weight model.

2. Rubco Huat Wood Division


Rubco Huat Wood Division manufactures the range of elegant furniture and quality
edge wood panels by using eco friendly Rubber Wood. Rubco has the monopoly in
the rubber wood furniture market. As per the status a rubber tree can cut after 25
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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

years old. But increasing price of the rubber creates scarcity of the wood for the
industry.
The plan has the processing capacity 40000 metric tons per year. The plant built
with aid of Huat group, Malaysia the world leader in rubber wood furniture and
this division is working as joint venture with Huat Group.
3. Rubco Tyres and Tubes Unit
This plant has been set up to manufacture tyre and tubes for bicycle, two wheelers,
cars and trucks. The bicycle tyre and tube plant is equipped with imported
machinery from UK and Taiwan, and has an annual capacity of 3 million tyres and
tubes. Rubcos range of tyre and tube has advanced futures such as high non-skid
depth, improved wet skid resistance and traction property and high tensile copper
steel bed wire as well as durability and ring holding capacity.
4. Rubco Mattress Division
Rubberized coir mattress is an ambitious project of Rubco, which realized with the
assist of DOA Austria, leader in the rubberized matters with an investment of 2.6
million. The technology and the machineries imported from Austria . And the plant
is vary few even in the country the plant has an annual installed capacity of 4.8
million units and 1500 units per day consisting of mattress and other rubberized
coir products .
Rubco mattresses has a wide range of product line consisting different categories
such as
1. Rubco latex division

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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

2. Natural rubber trading division

PRODUCT PROFILE
1. Rubco chappals
a) Rubco Rainbow
b) Rubco Hawai
c) Rubco plus
d) Rubco Super
Class wear
a) Sara
b) Alisa
c) Miranda
2. Rubco Huat Furniture
a)
b)
c)
d)
e)
f)
g)

Dining With Chairs


T.V.stand, Computer Stand
Timber Panel
Door and Window Frames
Office Furniture
Kitchen Cabinet
Home Series

Executive Home Series (5items)


Honey Come (3 Items) Kitchen Cabinet Viceroy-(23 items) Deluxe full Home
Series
3. Rubco Mattresses
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1. Premium
a) Renova
b) Hi-Tech pillow top
c) Heaven Plus
II.Standard
a) Heaven
b) Safal
III.Economy
a)
b)
c)
d)

Dreams
9.30 PM
Dosth
Traveler

IV.Exclusive
a) Relief Ortho
b) Yathri- Hotens
AIM
Satisfy the customers
Maximum productivity
Minimize cost
Maximum utilization and Maximum sales.

FINANCE DEPARTEMENT

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Finance department deals with the Budgeting and review of the financial status of
the Rubco. The Eminent Professionals deal the day to day affair of the business the
financial is also responsible for the co-ordination of the production and marketing
department. Rubco has different production unit so the financial department should
aware of the each transaction made by each department. Financial department is
also responsible for the record of all transaction and book keeping. In Rubco There
is clerk to record Transactions, Accountant to prepare Appropriate ledger senior
accountant to prepare annual report and an auditor to audit the report the
department maintains good division work also.

HUMAN RESOURCE DEPARTMENT


As we know any other organization Rubco also having a valuable human asset,
Rubcos Human resource consists of 2200 Skilled and un skilled labors and 300
office staffs include Managers, Clerk and Supervisors. The department recruiting
job seekers in two ways are, from internal source like promotion and transfer the
external recruitment long processors, the people who all are passed in the exam
conducted by the institute co-operative Management, are allowed in group
discussion and personal interview

MARKETING DEPARTMENT
Marketing is the crucial problem of any business Rubco has a good network of
executives collect market information, takes appropriate on time and convince the
distributers. The marketing department is responsible for sale and sale after service
of the variety of products and product line. And the department also committed to
promote their products through varies tools

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The marketing department of Rubco could segment there market and create good
brand loyalty. Rubco has already built their image through the quality product and
the good sales promotions. And the department has also use the co branding to
build good will
Rubcos marketing department using two type of promotion activities are consumer
oriented sales promotion such as discount, gifts, free good etc. and deals oriented
sales promotion. In which dealer are motivated with free discount, bonus, gifts,
turnover gifts etc
Rubco marketing network or supply chain is two types. For marketing mattress and
Chappal they used to,
Distributor

Dealer

consumer

And for other products Rubco transacts directly to the dealer


Dealer

Consumer

PROJECT DEPARTMENT
This department deals with the planning and implementation of new projects. This
department helps Rubco to diversify their products and introduce new products and
new markets.
This department has a good system of market information and forecasting the
upcoming project of Rubco is,
1. Rubber compound mixing plant
2. Trade rubber unit
3. Sports shoe
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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

4. Co-operative go down complex


EXIM DEPARTMENT
Exim department is responsible for the export Import transactions of
products, machinery and technology. The department could create a good network
in both European and Asian countries. The vision of Rubco is to become leader in
the rubber based industries.

LEGAL DEPARTMENT
The manager of this department is legally qualified person. This department
is responsible for organizational rules and regulations and solving the disputes
between employees and managers. And department can recommended solutions
when problem arising between Rubco and Distributors or any other external party.

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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION


Table no.4.1
Age group of the respondent
Age
Below 20
20-35
Above 35
Total
Source: Field Survey

Respondent
13
25
12
50

Percentage
26
50
24
100

Chart no.4.1
Age group of the respondent

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80
70

70
60
50
40

35

30

30

24

20

15

12

10
0
Male

Female

Above 35

From the above table its clear that most of the respondent 25% is between
20-35 years 13% below 20years and 12% above 35 years.

Table no.4.2
Gender of the respondent
Gender

Respondent

Percentage

Male

35

70

Female

15

30

Total

50

100

Source: Field Survey


Chart no 4.2
Gender of the respondent

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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

160
140
120
100

100
Percentage

80
70

Respondent

60
40
30
20

50

35
15

0
Male

Female

Total

From the above table and chart shows that respondents consisting 70% are
male and remaining 30% are female constitutes out of this sample.

Table no.4.3
Income group of the respondent
Income(monthly)

Respondent

Percentage

No income

14

28

5000-10000

12

10000-15000

20

40

15000 &above

10

20

Total

50

100

Source: Field Survey


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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

Chart no.4.3
Income group of the respondent
45

40

40
35
28

30
25

20

20
15

14

10

12

20

10

5
0
No income

5000-10000

10000-15000

15000 &above

From the above table and chart, it is clear that all the respondents, except
28% those whose income is nil and others are above 5000.

Table no 4.4
How the respondent came to know about Rubco products
Particular

Respondent

Percentage

Advertisement

36

72

Salesman

10

20

Relatives

Total

50

100

Source: Field Survey


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Chart no 4.4
How the respondent came to know about Rubco products
80
72
70
60
50
40

36

30
20

20
10

10

0
Advertisement

Salesman

Relatives

From the above table and chart shows that 72% of respondents are came to
know about the Rubco products through advertisement,20% from salesman, and
8% from relatives.

Table no.4.5
How the respondent influenced by the advertisement of Rubco footwear
Particulars

Respondent

Percentage

Yes

30

60

No

20

40

total

50

100

Source: Field Survey


Chart no.4.5
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How the respondent influenced by the advertisement of Rubco footwear


90
80
70
60
52

50

Percentage

40

Respondent

30

30

20
26

10

10

15

0
Rubco furnitures

Rubco mattress Rubco ayurveda oil

From the above table and chart shows that 60% of the respondents are
influenced by the advertisement of Rubco footwear and rest not influenced by
advertisement.

Table no.4.6
The factors influenced the respondent to purchase Rubco footwear
Particulars

Respondent

Percentage

Price

12

24

Quality

27

54

Availability

10

20

Advertisement

Total

50

100

Source: Field Survey


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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

Chart no.4.6
The factors influenced the respondent to purchase Rubco footwear

60

54

50
40
30

24

27
20

20

12

10

10

0
Price

Quality

Availability

Advertisement

From the above table and chart shows that 24% of respondents prefer price,
54% looks for quality, 20% analyses about the availability and rest 2% respondents
are influenced by advertisement.

Table no.4.7
Why the respondent choose Rubco footwear than other branded product
Particulars

Respondent

Percentage

Due to quality

24

48

Low price

23

46

Offers

Total

50

100

Source: Field Survey


Chart no.4.7
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Why the respondent choose Rubco footwear than other branded product
48

50

46

45
40
35
30

24

23

25
20
15

10

5
0
Due to quality

Low price

Offers

From the above table and chart shows that 48% of respondents prefer due to
quality, 46% are influenced by low price, 6% analyses about the offers.

Table no.4.8
The opinion about the price of the product
Particulars

Respondent

Percentage

Reasonable

36

72

High

10

Low

18

Total

50

100

Source: Field Survey


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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

Chart no.4.8
The opinion about the price of the product
80

72

70
60
50
40

36

30
18

20
10

10

0
Reasonable

High

Low

From the above analysis it is clearly known that 10% of the respondents rated
as High price of the products 18% mentioned low priced, 72% are rated as
reasonable price.

Table no.4.9
The opinion about the advertisement
Particulars

Respondent

Percentage

Excellent

Good

32

64

Not enough

15

30

Total

50

100

Source: Field Survey

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Chart no.4.9
The opinion about the advertisement

64

70
60
50
40

32

30

30
15

20
10

0
Excellent

Good

Not enough

From the above table and chart shows that 64% of the respondents are rated
as good, 30% are given not enough, and 6%are given excellent.

Table no 4.10
Main feature that the respondent like in Rubco
Particulars

Respondent

Percentage

Quality

10

20

Comfort

35

70

Price

10

Total

50

100

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Source: Field Survey


Chart no.4.10
Main feature that the respondent like in Rubco footwear
80
70

70
60
50
40

Series 1

35

Column1

30
20

20
10

10

10
5

0
Quality

Comfort

Price

From the above chart it shows that 20% of the respondents are attracted by
the quality and 70% considers comfort as an important factor,10% considers price
as main feature liked in Rubco footwear.

Table no.4.11
How Rubco footwear differ from other footwear
Particulars

Respondent

Percentage

Quality of the product

24

48

Cost of Production

12

Others

20

40

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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

Total

50

100

Source: Field Survey


Chart no.4.11
How Rubco footwear differ from other footwear
60

48

50

40

40

30
24
20

20
12
10

0
Quality of the product

Cost of Production

Others

From the above table and chart shows that 48% of the respondents says that
its differ by quality of the product,12% are given cost of production, and 40% says
they are different other factors.
Table no.4.12
The quality of the product
Particulars

Respondent

Percentage

Very good

10

Good

33

66

Average

12

24

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Below average

Total

50

100

Source: Field Survey


Chart no.4.12
The quality of the product
66

70
60
50
40

33
24

30
20
10

12

10
5

0
Very good

Good

Average

0
Below0average

From the above table and chart shows that 10% of the respondent are rated as
very good quality of the product,66% are given good rating, and 24% are given
average and none of the respondent rated as below average .

Table no.4.13
The respondent satisfied with the discount that is offered by Rubco footwear
Particulars

Respondent

Percentage

Highly satisfied

10

Satisfied

31

62

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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

Dissatisfied

13

26

Highly dissatisfied

Total

50

Source: Field Survey


Chart no 4.13
The respondent satisfied with the discount that is offered by Rubco footwear
70
62

60
50
40
31

30

26

20
10

10

13

0
Highly satisfied

1
Satisfied

Dissatisfied

Highly dissatisfied

From the above table and chart shows that 10% of the respondent are highly
satisfied with the discount that offered Where 22% of the respondents are
dissatisfied and rest highly dissatisfied.

Table no.4.14
The satisfaction with the brand of Rubco
Particulars

Respondent

Percentage

Highly satisfied

10

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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

Satisfied

42

84

Dissatisfied

Highly dissatisfied

Total

50

100

Source: Field Survey


Chart no 4.14
The satisfaction with the brand of Rubco

90
80
70
60
50
40

Series 1

30

Column1

20
10
Column1
at
is
fie
d

Series 1

D
is
s

H
ig
hl
y

sa
tis
fie
d

From the above table and chart shows that 10% of the respondent are Highly
satisfied with the brand of Rubco, Where 84% of the respondents are satisfied and
6% of respondents are dissatisfied and one with highly dissatisfied .
Table no.4.15
Expectation for more offers and discounts
Particulars

Respondent

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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

Yes

46

92

No

Total

50

100

Source: Field Survey


Chart no.4.15
Expectation for more offers and discounts

Yes
No
46

From the above table and chart shows that 92% of the respondents are expecting
offers and discounts. Rests are not expecting.

Table no.4.16
The satisfaction towards service provided by Rubco footwear
Particulars

Respondent

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Percentage
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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

Highly satisfied

10

Satisfied

36

72

Dissatisfied

18

Highly dissatisfied

Total

50

100

Source: Field Survey


Chart no.4.16
The satisfaction towards service provided by Rubco footwear

80

72

70
60
50
36

40
30

18
20
10

10

0
Highly satisfied

Satisfied

Dissatisfied

0
0
Highly dissatisfied

From the above chart it shows that 72% of the respondents are satisfied with
the service provides and 10% highly satisfied the service provided, 18% of the
respondents are not satisfied.

Table no.4.17
The rating of promotional technique adopted by rubco foot wear

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Particulars

Respondent

Percentage

Very good

12

Good

19

38

Average

24

48

Below average

Total

50

100

Source: Field Survey


Chart no.4.17
The rating of promotional technique adopted by Rubco footwear

100%

38

48

90%
80%
70%
60%

12

5
Series 3

50%

Series 2

40%

Series 1

30%
20%

2
6

19

24
1

10%
0%
Very good

Good

Average

Below average

From the above chart it show that 38% of the respondent are rating good with
the promotional technique and 48 % rating average, 12% of the respondents are
rating very good and rest with below average.

Table no. 4.18


The satisfication with the availability
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Particulars
Highly satisfied
Satisfied
Dissatisfied
Highly dis satisfied
Total
Source: Field Survey

Respondent
6
32
12
0
50

Percentage
12
64
24
0
100

Chart no. 4.18


The satisfication with the availability

160
140
120
100
52

80

26
60
40
20
0
Rubco mattress Rubco ayurveda oil

Rubco latex

Total

From the above table and chart shows that 12% of the respondents are Highly
satisfied with the availability, whereas 64% of the respondents are satisfied and
24% of respondents are dissatisfied and no one with highly dissatisfied.

Table no. 4.19


Whether the price of the product is an important factor that influence
purchasing decision

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Particulars

Respondent

Percentage

Yes

25

50

No

16

Sometime

17

34

Total

50

100

Source: Field Survey


Chart no.4.19
Whether the price of the product is an important factor that influence
purchasing decision
160
140
120
100

100

80
60

52
30

50
10
5

la
te
x

ay
ur
ve
da

8
4

Ru
bc
o

Ru
bc
o

at
tre
s

oi
l

15

26

Ru
bc
o

20

To
ta
l

40

From the above table and chart shows that 50% of the respondent with yes ,
where 34% of the respondent are with some time and rest of respondents are with
price is not an important factor that influence purchasing decision.

Table no. 4.20


Promotional strategy which increased Rubcos sales

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Particulars

Respondent

Percentage

More advertisement

17

34

Price reduction

21

42

More offers

12

24

Total

50

100

Source: Field Survey


Chart no. 4.20
Promotional strategy which increased Rubcos sales
160
140
120
100

100
52

80

26
60
40
30

50

20
0

15

10
5

8
4

Rubco mattress Rubco ayurveda oil

Rubco latex

Total

From the above table and chart shows that 34% of the respondents are with
more advertisement, where 42% of the respondents are with price reduction and
24% of respondent are more offers.

Table no.4.21
The competitor of Rubco footwear
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Particulars

Respondent

Percentage

Bata

10

20

Lunar

12

VKC

30

60

Paragon

Total

50

100

Source: Field Survey


Chart no.4.21
The competitor of Rubco footwear
160
140
120
100

100
30

80

15
60
40
50

20
10
5

8
4

Rubco ayurveda oil

Rubco latex

Total

From the above analysis it is clear, VKC is the main competitor of Rubco
footwear.

Table no. 4.22

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Whether the respondent has used RUBCO groups other products at least
once
Particulars

Respondent

Percentage

Yes

40

80

no

10

20

Total

50

100

Source: Field Survey


Chart no. 4.22
Whether the respondent has used RUBCO groups other products at least
once
160
140
120
100

100
30

80

15
60
40
50

20
0

10
5

8
4

Rubco ayurveda oil

Rubco latex

Total

From the above table and chart shows that 80 % of the respondents used
RUBCO groups other product rest 20% of the respondents are not using it.

Table no.4.23
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The respondents interest towards other Rubco products


Particulars

Respondent

Percentage

Rubco furniture

26

52

Rubco mattress

15

30

Rubco ayurveda oil

10

Rubco latex

Total

50

100

Source: Field Survey


Table no.4.23
The respondents interest towards other Rubco products
160
140
120
100

100

80
52

Percentage
30
8
4
la
te
x

oi
l

s
at
tre
s
m

Ru
bc
o

fu
rn
itu
re
s
Ru
bc
o

10
5

15

Respondent

Ru
bc
o

26

50

ay
ur
ve
da

20

To
ta
l

40

Ru
bc
o

60

From the above table and chart shows that 52% of the respondents are
interested towards Rubco furniture and 30% with Rubco mattress, whereas 10% of
the respondents with Rubco ayurvedic oil and 8% of respondents are interested
towards Rubco latex.

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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

CHAPTER 5
FINDINGS, RECOMMENDATIONS AND
CONCLUSION

FINDINGS
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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

The study reveals that 72% of the respondents came to know about Rubco

products though advertisement


Factor that influenced the customers to purchase Rubco Products is their

Quality
Majority of the customers rated the price of the products is Reasonable
The main feature that the respondent like in Rubco footwear is its Comfort
Majority of the customers responded that the quality of the product is Good
It was found that majority of the customers are expecting offers and

discounts
It was found that majority of the customers are expecting offers and

discounts
It was observed that 72% of the respondents are satisfied with the service

provided by Rubco
Majority of the customers responded that the promotional technique used

by Rubco is average
It is found that, VKC is the main competitor of Rubco footwear.

Study reveals that majority of the customers are interested in Rubco


Furniture

RECOMMENDATIONS

Adequate promotional measures should be put in places to increase the

brand awareness of Rubco footwear among the customers


Rubco should try to improve the level of advertisement
Rubco should provide some attractive offers discounts to the customer
Rubco should try to increase the availability of the product to the market
Rubco Footwear should not concentrate on chappals. They should also try
to introduce new varieties of products like shoes, sandals, etc

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CONCLUSION
The particular survey is for finding out the marketing strategies of RUBCO
Footwear (chapels) Pvt. Ltd, Kannur. Marketing strategy is an important factor for
the sales of an organization. It include different techniques such as advertising,
sales promotion, target marketing, product positioning, brand positioning are used
attract the customers in the competitive market.
By analyzing the result of the survey we have reached to the conclusion that the
majority of the customers knows about RUBCO Footwear.
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Even though the company is having a good image in the minds of consumers, they
should try to increase the sales by giving more advertisement and to provide other
promotional activity.
In this survey I conclude that from the project after seeing the response it is very
clear that marketing strategies are very much important to complete and improve
the sales of the company.

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BIBLIOGRAPHY

BIBLIOGRAPHY

By Kotler, Philip, Marketing Management,13th edition.


Ramaswamy. V.S. and Namakumari.S, Marketing

Macmillan India LTD 2006 revised, 3rd edition edition.


Sherleker S.A.Marketing management Himalaya publishing house, 2006,

management,

13th edition

Websites:

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http://www.rubcogroup.com

http://www.wikipedia.org

http://www.businessdictionary.com

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ANNEXURE

ANNEXURE
A STUDY ON MARKETING STRATEGIES OF RUBCO FOOTWEAR
(CHAPPALS) PVT LTD
The information provided will be used only for academic purpose. I kindly request
you to spare a few minutes of your valuable time in filling this questionnaire.
Name:
Age:
Gender:

Male

Female

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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

Place:
Occupation:
Income (monthly): 5000-10000

10000-15000

15000&above

1) How did you come to know about Rubco Products?


a) Advertisement
b) Salesman
c) Relatives
2)Are you influenced you to purchase Rubco footwear?
a) Yes

b) No

3) What factor influenced to purchase Rubco footwear?


a)Price

b) Quality

c)Availability

d) Advertisement

4) Why do you choose the Rubco footwear than other branded product?
a) Due to quality

b) Low price

c) Offers

5) What is the opinion about the price of product?


a) Reasonable

b) High

c) Low

6) What is the opinion about the advertisement?


a) Excellent

b) Good

c) Not enough

7) What is the main feature that you like in Rubco footwear?


a) Quality

b) Comfort

c) Price

8) How Rubco footwear is different from other footwear?

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a) Quality of the product

b) Cost of production

c) other

9) What is your opinion about the quality of the product?


a) Very good

b) Good

c) Average

d) Below average
10) Are you satisfied with the discount that is offered by Rubco footwear?
a) Highly satisfied

b) Satisfied

c) Dissatisfied

d) Highly dissatisfied
11) Are you satisfied with brand of Rubco?
a) Highly satisfied

b) Satisfied

c) Dissatisfied

d) Highly dissatisfied
12) Are you expecting more discounts and offers from Rubco?
a) Yes

b) No

13) Are you satisfied with the services that are provided by Rubco footwear?
a) Highly satisfied

b) satisfied

c) Dissatisfied

d) Highly dissatisfied
14) How would you rate the promotional technique adopted by Rubco footwear
a) Very good

b) Good

c) Average

d) below Average

15) Are you satisfied with the availability of Rubco footwear?


a) Highly satisfied

b) Satisfied

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c) Dissatisfied
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A STUDY ON MARKETING STRATERGY OF RUBCO FOOTWEAR, KANNUR

d) Highly dissatisfied
16) Is the price of the product is an important factor that influences your
purchasing decision?
a) Yes

b) No

c) sometimes

17) In your opinion what promotional strategy Rubco must implement to increase
the sales?
a) More advertisement

b) Price reduction

c) offers

18) In your opinion who is the main competitor of rubco in rural market?
a) Bata

b) Lunar

c) VKC

d) Paragon

19) Have you used Rubco groups other products at least once?
a) Yes

b)

No

20) Will you be interested in other Rubco Products?


a) Rubco Furniture

b) Rubco mattress

c) Rubco ayurveda oil

d)Rubco latex

21) Suggestion if any

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Thank you

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