1 A RESEARCH REPORT ON “CUSTOMER SATISFACTION TOWARDS BRANDED SHOW INDUSTRY WITH SPECIAL REFRENCE TO (adidas, puma, Nike and liberty)” IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA).KURUKSHETRA UNIVERSITY, KURUKSHETRA Paper Code: CP-402 Project Supervisor: - Submitted By:- Miss Pallavi dua Name- Zubin Sehgal (Asst. prof.) Class Roll No - 1641 AIMT University Roll No - Session- 2011-2013 Department Of Management
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1
A RESEARCH REPORT
ON
“CUSTOMER SATISFACTION TOWARDS BRANDED SHOW INDUSTRY WITH
SPECIAL REFRENCE TO (adidas, puma, Nike and liberty)”
IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE
OF MASTER OF BUSINESS ADMINISTRATION (MBA).KURUKSHETRA UNIVERSITY,
KURUKSHETRA
Paper Code: CP-402
Project Supervisor: - Submitted By:-
Miss Pallavi dua Name- Zubin Sehgal
(Asst. prof.) Class Roll No - 1641
AIMT University Roll No -
Session- 2011-2013
Department Of Management
SHRI ATMANAND JAIN INSTITUTE OF MANAGEMENT AND TECHNOLOGY
(AMBALA CITY)
2
PREFACE
Research project is the bridge for the student that takes him from his theoretical knowledge
world to practical industrial world. The advantage of this sort of integration (research program
me), which promotes guided to corporate culture, functional, social and norms along with formal
teaching are numerous. The main aim is:
To bridge the gap between theory and practical
To help the students to develop the better understandings of concepts and question
already raised or to be raised subsequently during their research period.
The present research report gives a detailed view of CUSTOMER SATISFACTION
REGARDING HIGH END BRANDED SHOE INDUSTRY WITH SPECIAL REFRENCE TO
(ADIDAS, PUMA, NIKE AND LIBERTY)
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ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in the success of any
venture. In the present world of cut throat competition project is likely a bridge between
theoretical and practical working, willingly I have prepared this particular project.
Firstly, I would like to extend my sincere thanks to Miss Pallavi dua (Asst. prof.) and Prof.
(Dr.) S C Aggarwal (director) for his able guidance, regular counseling, keen interest and
constant encouragement, without this support the project would not have a successful end. I am
highly thankful to her for his helpful attitude, regular coaching and inspiration.
I sincerely thank to all faculty members and the staff associated for their support given to me
time to time. Also, I would like to thank to all my friends and family members for their support
given to me time to time. I don’t have words to express my thanks, but still my heart is full of
gratitude for the favors received by me from every person.
(Zubin Sehgal)
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DECLARATION
I, Zubin sehgal the undersigned, hereby declare that this report entitled” is a genuine and
bonafied work prepared by me under the guidance of Miss Pallavi dua (Asst. Prof.), and is my
original work. The matter in this report is not copied from any source.
This work is humbly submitted to AIMT for the award of degree of Master of Business
Administration.
Place:
Date: (Zubin sehgal)
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TABLE OF CONTENTS
Topic Page No
Chapter No – 1
INTRODUCTION 6-30
Footwear Industry
ChapterNo - 2
RESEARCH METHODOLOGY 31
Objective of the Study 32
Types of study 33
Limitation of the Study 34
Chapter No - 3
DATA ANALYSIS AND INTERPRETATION 35-54
Chapter No - 4
FINDINGS, CONCLUSION & SUGGESION 55-57
Findings 55
Suggestion 56
Conclusion 57
BIBLIOGRAPHY 58-59
APPENDIX 60-65
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Indian Shoe Market
The Indian footwear market is estimated to be worth USD 3.94 billion and is growing at a
compounded annual rate of 15% to be worth USD 6.89 billion by 2015.
The global footwear market size is estimated to be USD 181.9 billion growing at a CAGR of
nearly 5%.India is the world’s second largest footwear producing country, second to China and
the third largest market.
Even though the per capita shoe consumption in India has gone up from 1.4 shoes a year in 2004
to 2.5shoes per year in 2012, it is still much below the average per capita income shoe
consumption of five, in developed countries
India is a major supplier of medium- and low priced
Footwear.
Several footwear majors source parts of their production and purchase from India. Further,
reputed global brands such as Florsheim, Nunn Bush, Stacy Adams, Gabor,
PUMA is a German-based shoe company that produces sportswear and specializes in making
athletic shoes. It employs nearly 8,000 people and its products reach as many as 80 countries
around the world. PUMA sponsors many individual athletes, such as Olympic champion Usain
Bolt of Jamaica and also sponsors a large number of national and club teams in sports ranging
from soccer to cricket.
Puma, also known as Puma Aktiengesellscaft Rudolf Dassler Sport, is a German footwear,
apparel, and accessories manufacturer. Puma has retailers, department stores, and boutiques in
over 80 countries and has opened several Concept stores in metropolitan cities. The roots of
Puma brand stretch back to the mid 1920's when Adi and Rudolph registered their family shoe
enterprise in Herzogenaurach, Germany, but after World War II, during which Rudi Dassler had
spent time in a POW camp, the Dassler brothers began a legendary feud, causing Rudolph to
leave the company and found a rival company across town. Rudi Dassler named his company
Puma Aktiengesellscaft Rudolf Sport (Puma) while brother Adi incorporated as Adidas.
In 1948, Puma released their first shoe, the PUMA Atom to the market and to the West German
football team. By 1950 Puma had established export ties to the United States, and in 1958
PUMA's signature formstripe was introduced. This would begin the intense battle between Puma
and Adidas to get their shoes onto the feet of world-class athletes that would span the next
several decades. More
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1969
Joe Namath, quarterback for the New York Jets, goes to Super Bowl III wearing Puma shoes.
1970
Pele wins a third World Cup title, wearing the Puma King.
1976
Puma introduces its S.P.A. technology.
1981
Marcus Allen of the Oakland Raiders is one of many NFL stars to play in Puma shoes.
1982
Armin A. Dassler invents the Puma Duoflex sole.
1986
Puma goes public and company stock is offered on the Munich and Frankfurt stock exchanges.
1989
Rudi Dassler's sons sold Puma to the Cosa Lievermann Group who in turn sell the majority stake
to the Aritmos Group of Sweden.
1989
Puma launches the "Trinomic" sport shoe system.
1990
Puma introduces a system for children's shoes with a midsole window which allows growth to be
monitored.
In 1993 Jochen Zeitz was appointed as CEO & Chairman of the Board and the German factories
were closed. Over the next few years, Zeitz redefined Puma's focus on regaining control of
various markets. A high-power management team was recruited and a three year business plan
was introduced. In Phase I and II, a solid financial foundation was established. After Phase I and
II were completed, Puma had 1 billion Euros in sales and moved into Phase III ahead of
schedule. Phase III's goal was to explore the potential of Puma brand and generate profitable
growth of the company.. A substantial amount of their profits is invested in relationships and
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surroundings. Puma's major technological innovation came in 1996 in the formed of Puma Cell,
a structural arrangement of hexagonal cells like a honeycomb in a beehive. Track champion Lyn
ford Christie (Britain) was the first sponsored athlete to put the Puma Cell to the test during
training.
Brand Strategy
"To be the brand that mixes the influences of sports, lifestyle, and fashion."
Brand Mission
"To become the most desirable Sport lifestyle brand by fusing the creative influences from the
world of sport, lifestyle and fashion."
Famous Puma Products
Puma Roma, Puma Suede, Puma Sky II, Puma Basket, Puma Clyde, Puma Speed Cat, and Puma
Easy Rider.
Customer Satisfaction
“Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a
product’s perceived performance in relation to his or her expectation “
As the definition makes it clear, satisfaction is a function of perceived performance and
expectations. If the performance falls short of the expectations of the customer, the customer is
dissatisfied.
If the performance exceeds the expectations, the customer is highly satisfied or delighted.
Many companies are aiming for high satisfaction because customers who are just satisfied still
find it easy to switch, when a better offer comes along. Those who are highly satisfied are much
less ready to switch. High satisfaction or delight creates an emotional affinity with the brain, not
just a rational preference. The result is high customer loyalty.
In this highly competitive world customers plays a very important role. Thus, if a company
wants to survive then it should look forward to the determinants of customer satisfaction.
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Though it is a very subjective issue that differs from individual to individual yet, identifying
some basic parameters of customer satisfaction is important.
Satisfaction is a person’s feeling of pleasure and disappointment resulting from comparing a
product’s perceived performance in relation to his or her expectations. It is only the customer
delight that marketer aims for.
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Liberty Shoes Limited (LSL) is an Indian shoe company, based in mathura, Uttar
Pradesh.Established in 1954, today the company through its six manufacturing units collectively
produces, 50,000 pairs of footwear a day, sold through 6,000 multi-brand outlets and 350
exclusive showrooms, and has a presence in 25 countries, with 50 showrooms outside
India.Tejpal Singh became the CEO of LSL in 2012, the year when the company celebrated its
golden jubilee, the company had two Executive Directors, Tejpa sigh and Bhavana Sharma .
History
Liberty Shoes Ltd. was established on the 25th of December, 1954 in Mathura, Uttar Pradesh
(India) .
It was predominantly focused in the export of shoe uppers till the early '80s, when the Indian
domestic market started to show promise, that is when in 1982, the company set up a unit to
exclusively manufacture footwear for the domestic market, at an investment of Rs 3 crores. Its
sport shoes range manufactured using polyurethane technology, though eventually set a
precedent for the domestic market was initially considered a risky proposition as it was priced at
Rs 300 a pair, compared with conventional canvas shoes selling at Rs 50. However, by 2010
Liberty had become a Rs 35-crore company.
'Force 10', Liberty's first sub-brand, was launched in August 1990, a time when a casual footwear
wave sweeping the Indian market. By 1994-95, Force 10 became Liberty's flagship brand in
value, notching up sales of Rs 32 crore, it the coming years, it not only help the company
establish its name the domestic footwear market, but also paved the way for nine other sub-
brands and a firm foothold the mass family footwear segment, till now led by Bata, now Liberty
was the country's second largest footwear company after it.
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The company saw major expansion in the 2000s, both in retail and manufacturing bases, leading
to a sharp growth, in the year 2002-03, the company posted a retail turnover of Rs 400 crore.
Also in April 2003, the Liberty Group underwent an important restructuring and its product
portfolio was also revamped. As a part of the restructuring process, the company split its
manufacturing and retail business in January 2004, with Liberty Shoes as the holding company
for its shoe business and a subsidiary Liberty Retail Revolution Ltd for its retail business, which
established a new retail channel through "Revolutions Stores", which were set up at in Mumbai,
Kolkata, Hyderabad and Chennai. At the same time it ventured into high fashion, by tying up
with fashion designers including Rohit Bal, Rajesh Pratap Singh, Rina Dhaka, Rohit Gandhi,
Ashish Soni and Suneet Verma to develop footwear to match their clothing lines
LSL produces more than 50,000 pairs of footwear a day covering virtually every age group and
income category. Products are marketed across the globe through 150 distributors, 350 exclusive
showrooms and over 6000 multi-brand outlets, and sold in thousands every day in more than 25
countries. After 50 years of its existence, today Liberty produces footwear for the all age groups.
Currently, LSL is headed by Mr. Adesh Gupta as its CEO. It is a part of the 'Liberty Group'
which includes other associate companies - Liberty Retail Revolutions Limited and Liberty
Whiteware.
Manufacturing
Liberty's manufacturing base includes six facilities spread across the numerous states, two in
mathura (Uttar pradesh) where its primary and the largest manufacturing units are situated,
Paonta Sahib, (Himachal Pradesh) with two units and Roorkee (Uttarakhand). The company has
avoided locations in the conventional Indian shoe manufacturing locations such as Agra, Kanpur,
Noida, Chennai etc.
Brands
FOR MEN: Coolers, Fortune, Force 10, Gliders and Windsor
FOR WOMEN: Force 10, Gliders, Senorita and Tiptopp
FOR KIDS: Footfun, Force 10, Gliders, Prefect
SAFETY SHOES: Freedom, Warrior and Workman
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NIKE VS ADIDAS VS PUMA
The shoe and athletic apparel market is dominated by three major companies. Nike, Puma and Adidas feature premium athletic apparel designed to enhance the performance of athletes in all the major sports. The companies battle each year for consumers and market share, as well as spend millions in research and development to better their products.
Pro Level
Nike, Puma and Adidas offer athletic apparel to professional athletics. All three companies are involved in shoe wars for the services of professional basketball players, which provide marketability and exposure to massive audiences. Basketball shoes comprise a significant percentage of market share, and these companies will spare no expense to sign the latest and greatest basketball star. The companies also supply pro football and baseball players with gear, along with a burgeoning golf division for Nike and Adidas.
Nike
Nike is recognized internationally as a leading manufacturer of innovative footwear and performance enhancing apparel. Phil Knight, Nike's founder and CEO, has been especially supportive of his alma mater, the University of Oregon. The Knights and Nike have initiated several philanthropic initiatives to enhance the services, equipment and apparel provided to Oregon student-athletes. This, in turn, has given Nike even greater visibility and exposure among high level athletes. Oregon's equipment is cutting edge, and its athletic teams constantly employ trend-setting designs and features.
Adidas
Adidas has long been considered an international brand but has made significant strides in the U.S. Their golf apparel division has enhanced its offerings, and now produces clothing, shoes and accessories for many touring professionals. This has seen a great trickle-down effect into the amateur game. Adidas has also signed major endorsement contracts with many U.S. colleges, including the University of Michigan and the University of Notre Dame, to play and promote the company's apparel.
Puma
Puma has struggled at different times with Nike and Adidas beginning to differentiate themselves, but the company has made a push by focusing on its professional basketball, football and hockey equipment. Puma hockey has several innovations that bolster its usage rate in the National Hockey League and minor pro leagues, while Puma football is on a similar upswing. The NBA appeals to most sneaker consumers, and Puma has made a push in this area as well, with several shoes endorsed by the top level players.
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Definition of Customer
There are two distinct types of customers as the point of view of an organisation.i.e
. External and internal.
Internal customers are within the company-the colleagues working together for delivering a service or product
for the external customer.
An external customer may be an individual or an enterprise that hires or purchases the product(s) or service(s)
from another person or business in exchange of money. To capture customers, a business must try to find out
what people want, how much and how often they will buy and how their post-purchase satisfaction will be
ensured. In this highly competitive world customers plays a very important role.
Customer Reinforcement
Reinforcement is a term in behavior analysis for the process of increasing the rate or probability
of a behavior (e.g. pulling a lever more frequently) by the delivery or emergence of
a stimulus (e.g. a candy) immediately or shortly after the response. Reinforcement increases the
likelihood of behavior such as a purchase being repeated.
Customer satisfaction is at the heart of the selling process. One estimate is that it costs five times
as much to attract new customers as it does to keep an existing one. The relationship between the
customer and the organization is, therefore, an important one.
Building customer relationships can be seen as moving up a ladder. At the top rung of the ladder