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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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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.
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
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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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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.
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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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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Production influences:
Production capacity firm may change its product mix. A firm may change its
product mix
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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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
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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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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 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.
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.
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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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:
manufacture process ;
Warehouse: act of receiving, storage, classification and control of the
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,
(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
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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
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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conscious.
Presence of qualified leather technologists in the field.
Comfortable availability of raw materials and other inputs.
Massive institutional support for technical services,
designing,
WEAKNESSES:
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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
OPPORTUNITIES:
India.
Growing fashion consciousness globally.
Use of information technology and decision support software to help eliminate
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THREATS:
than India.)
Non- tariff barriers - Developing countries are resorting to more and more non
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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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
Foundation
stone
laid
for
foot
wear
unit
at
Koothparambu,
July 1998
RUBCo
takes
over
the
reins
Page
of
13 August 1999
furniture that
Rubco Footwear hit the market
th
Page
Rubco
huat
wood
furniture
factory
of
rubber
components
for
Page
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.
Page
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.
Page
Crepe( PLC).Rubco is in the process of expanding the scope of operations of this unit
in line with market trends .
Page
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.
Page
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
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
SECURITY
Page
BOARD OF DIRECTORS
Administration and management comprises of a board of directions with 15
members as follows
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.
Page
Page
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
Page
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)
Page
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
Page
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.
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
Page
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
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
Institute of Technology, Mayyil, MBA 2014-2016
Page
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.
Page
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Respondent
13
25
12
50
Percentage
26
50
24
100
Chart no.4.1
Age group of the respondent
Page
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
Page
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
Page
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
Page
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
Page
50
Percentage
40
Respondent
30
30
20
26
10
10
15
0
Rubco furnitures
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
Page
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
Page
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
Page
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
Page
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
Page
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
24
48
Cost of Production
12
Others
20
40
Page
Total
50
100
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
Page
Below average
Total
50
100
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
Page
Dissatisfied
13
26
Highly dissatisfied
Total
50
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
Page
Satisfied
42
84
Dissatisfied
Highly dissatisfied
Total
50
100
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
Percentage
Page
Yes
46
92
No
Total
50
100
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
Percentage
Page
Highly satisfied
10
Satisfied
36
72
Dissatisfied
18
Highly dissatisfied
Total
50
100
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
Page
Particulars
Respondent
Percentage
Very good
12
Good
19
38
Average
24
48
Below average
Total
50
100
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.
Page
Particulars
Highly satisfied
Satisfied
Dissatisfied
Highly dis satisfied
Total
Source: Field Survey
Respondent
6
32
12
0
50
Percentage
12
64
24
0
100
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.
Page
Particulars
Respondent
Percentage
Yes
25
50
No
16
Sometime
17
34
Total
50
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.
Page
Particulars
Respondent
Percentage
More advertisement
17
34
Price reduction
21
42
More offers
12
24
Total
50
100
100
52
80
26
60
40
30
50
20
0
15
10
5
8
4
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
Institute of Technology, Mayyil, MBA 2014-2016
Page
Particulars
Respondent
Percentage
Bata
10
20
Lunar
12
VKC
30
60
Paragon
Total
50
100
100
30
80
15
60
40
50
20
10
5
8
4
Rubco latex
Total
From the above analysis it is clear, VKC is the main competitor of Rubco
footwear.
Page
Whether the respondent has used RUBCO groups other products at least
once
Particulars
Respondent
Percentage
Yes
40
80
no
10
20
Total
50
100
100
30
80
15
60
40
50
20
0
10
5
8
4
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
Institute of Technology, Mayyil, MBA 2014-2016
Page
Respondent
Percentage
Rubco furniture
26
52
Rubco mattress
15
30
10
Rubco latex
Total
50
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.
Page
CHAPTER 5
FINDINGS, RECOMMENDATIONS AND
CONCLUSION
FINDINGS
Institute of Technology, Mayyil, MBA 2014-2016
Page
The study reveals that 72% of the respondents came to know about Rubco
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.
RECOMMENDATIONS
Page
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.
Institute of Technology, Mayyil, MBA 2014-2016
Page
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.
Page
BIBLIOGRAPHY
BIBLIOGRAPHY
management,
13th edition
Websites:
Page
http://www.rubcogroup.com
http://www.wikipedia.org
http://www.businessdictionary.com
Page
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
Page
Place:
Occupation:
Income (monthly): 5000-10000
10000-15000
15000&above
b) No
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
b) High
c) Low
b) Good
c) Not enough
b) Comfort
c) Price
Page
b) Cost of production
c) other
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
b) Satisfied
c) Dissatisfied
Page
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
b) Rubco mattress
d)Rubco latex
Page
Thank you
Page