Description
Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity." In a survey of nearly 200 senior marketing managers, 67 percent responded that they found the "dollar market share" metric very useful, while 61% found "unit market share" very usful.
INTRODUCTION
This study is aimed to know the market share of Kitex lungies and dhotis and to form marketing strategies to improve its market share.
Company sales do not reveal how well the company is performing relative to competitors. Suppose a company’s sale increase could be due to improved economic conditions benefiting all companies or it could be due to improved company performance relative to competitors. Management needs to track its market share. If the company’s market share goes up the company is gaining on competitors, if it goes down, the company is losing relative to competitors.
Managers must carefully interpret market share movements of product line, customer types region, and other breakdowns. The market share decline was due mainly to a loss of some customers who normally made larger than average purchases. The managers must investigate why these customers were lost.
The marketer’s should know the market share by various methods for business and should anticipate future demand. Thus quantitative measurements are essential for analyzing marketing opportunity, planning marketing programme and find controlling marketing control.
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Executive Summary
The Kitex Ltd, situated at Kizhakambalam in Ernakulam district is one of the flourishing textile companies, which comes under the prestigious Anna Group. Kitex lungies, dhotis and bed linen are the hallmark of the success of Kitex Ltd.
This study was conducted for assessing the market share of Kitex brands and to sort out the ways and means for improving the existing environment. The researcher also aimed at bringing our dealer’s opinion regarding the reason for stocking the brand, distribution, quality, price and selection of Kitex lungies and dhotis.
It was found that Kitex products had good brand image and quality. The market share of Kitex lungies and dhotis were found to 19.47% and 11.5% respectively. The unbranded low priced items captured the major portion of the market share. The company had a good distribution network. It was noted that the company should give more incentives to the dealers to boost up the sales. Schemes and incentives offered by the other brands were more attractive than Kitex.
Kitex lungies had good enquiry from the customer but Kitex dhotis had comparatively less enquiries. So the Kitex dhotis need more sales promoting activities. Even though the Kitex dealers thrived in quality, the major portion of the market was conquered by the low priced unbranded lungies and dhotis. So Kitex can increase its sales by trying low priced items.
It was found that the company required building up of more confidence among dealers through promotional activities.
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OBJECTIVES OF THE STUDY
Main Objective
To assess the dealers perception on market share of Kitex lungies and dhotis and to find out the ways and means to improve its market share.
Specific Objectives
1) 2) 3) 4) 5) 6)
To study the preferences of dealers to stock Kitex textiles To study the dealers satisfaction about the price. To study weather the dealers are satisfied with the quality of Kitex textiles. To study about the dealer’s satisfaction with the distribution of Kitex To know dealers attitude to push Kitex textiles. To give suggestions to Kitex for increase the sales of Kitex lungies and Dhotis
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RESEARCH METHODOLOGY
Research refers to a search of knowledge. Marketing research is defined as the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services.
Nature and Sources of data
Primary data collected for the study and questionnaire were used for this purpose. Apart from the secondary data collected from reports and manuals of Kitex Ltd. Discussions with the marketing manager and staff members also helped to a great extend in getting valuable information, questionnaire construction in order to make questionnaire attractive. A set of 16 questions were given to dealers for dhotis and lungies.
Sampling design
Convenience sampling was adopted for the study. In this method the sample units are close primarily on the basis of convenience to the investigator. This method was turned be most suitable for the study.
Sample size
Actual sample collected for the book is 112 and due to errors committed by the respondents in filling up their questionnaire, 14 samples were removed. The effective sample size considered for the analysis is 98.
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Universe
All Kitex dealers in Kerala.
Scope of Study
Dealer survey was conducted at Ernakulam and Trissur markets only.
Two
questionnaires were prepared to collect the data about lungies and dhotis. Only Kitex dealers were selected from the market. The scope of the study is limited to the products of Kitex Ltd., Kizhakambalam.
Period of study
The study covered a period of one month from 19th may 2008 to 18th June 2008.
Tools for analysis
The collected data was used for analysis. The data has been so arranged to apply simple statistical tools as bar diagrams charts, tables etc.
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Limitations of study
1) 2) 3) 4)
The scope of the study was limited to Kitex lungies and dhotis The respondents were having business throughout the day. This might have caused distraction while answering the questionnaire. The study was fully based on the dealer’s assumptions. The real consumers of lungies and dhotis were not interviewed because of the time element and wideness in the subject.
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INDUSTRY PROFILE
Textile Industry in India The Indian textile sector has its roots going back several thousand years. After the industrial revolution in Europe, this sector in India also saw growth of an industrial complex. However, over the least 50 years the textile industry in India has shown a chequered performance.
Today the industry contributes around 14% to industrial production in the country, is estimated to directly employ approximately 35 million people apart from the indirect employment in allied sectors, accounts for a about 27% to the country’s exports, and is, in sum, an important economic engine for the nation.
In part, the very diversity scale and spread of the industry which has been its strength, has also been its weakness. Like the “six blind men exploring the elephant” most people’s experiences and actions have included only part of the industry, rather than its completeness. Thus, even government regulations and financial policies have never been able to adequately fulfill the widely varied needs of the different segments of the industry.
However, during the last 10 years, the industry’s actions, government policies as well as market events have begun to coverage, providing several growth opportunities of the sector domestically as well as in the global market. As the MFA quota-regime draws to a close, India presents many opportunities for buyers, suppliers and investors to partner with its textile industry, and to profit from the partnership.
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Cotton textiles in India are a well-established manufacturing industry and employ more workers than any other sector. Production in FY 1992 was 19 billion square meters of cloth. In Indian textile mills, yarn is spun, woven into fabrics, and processed under one roof. Production as a share of the manufacturing industry fell from 79 percent in 1951 to under 30 percent in the early 1990s as a result of curbs on capacity expansion and new equipment and differential excise duties. The main export market is Russia and other former Soviet republics. The power-loom fabric dominates India’s garment export industry. There is also a substantial handloom sector, which provides employment in rural areas.
The Indian textile industry, which has created a global market for itself with its competitive price and versatility, is now repositioning. Itself as a source of apparel design, textiles and manufacture to target the international client and increase exports manifold.
“India is exporting around $13 billion of textiles presently but to improve our share, India has to innovate our items for the global market. International brands have to be convinced that they can source all their product requirements from cutting to designing to India.
The textile industry holds a predominant position in the Indian economy, which is manifested in its significant contribution to industrial production, employment generation and foreign exchange earnings.
The Indian apparel industry had so far enjoyed the privileges of assured demand and some protection under the quota system. As stipulated in agreements signed at WTO, the textiles market will open up fully by 2005. The phasing out of quantitative restrictions post 2004 is expected to create and additional market of $50 billion for the developing countries. This would pose new challenges and opportunities since the Indian textile
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products will have to compete in quality and cost, with products from other countries like China, Bangladesh, Indonesia, Pakistan, and Sri Lanka.
All sectors of the textile industry seem to be undertaking massive programmes of modernization to ensure productivity, improve quality along with adoption of innovative marketing strategy and introduction of support system for commercial intelligence, designs, fashion inputs and promotion of brand equity, along with application of IT as integral part of production process to reinvigorate the textile sector and to make it a leading exports industry.
Strengthening and enhancing the technological capability of the domestic textile machinery industry is vital for placing the Indian textile industry on the trajectory of accelerated growth.
Textile Industry in Kerala
The first cotton textiles mills were established in 1883 in Kallai near Kozhikkode by P.S Santhappa Chettiyar and M. Guptan Namboothiripad, known as Malabar Spinning and Weaving Mill. The commercial production was started in 1887. Later in 1976 the mill was taken over by Government of Kerala and handled over to Kerala state textiles corporation. The second mill presently called Parvathi Mills Ltd.was started in 1884 by James Darragan, an English man using 19 acres of land donated by the Maharaja of Travancore. In 1888, the mill was sold to another British industrialist named AT Vin. In 1932 the management was taken over by Kerala textiles corporation. In April 1974, the mill was nationalized under sick textiles undertaking (nationalization) Act and was made a unit of National Textiles Corporation (NTC) Limited. Bangalore, which is a subsidiary of NTC Delhi. Sitaram Textiles Ltd., another oldest mill was established in 1903 as a
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Private Limited Company. Balarama Iyyer started it. Later due to mismanagement and labour trouble, company was liquidated in 1954.
The factory was gutted down due to fire in 1959 and spinning production was completely stopped. The Government of Kerala purchased this unit as a result of liquidation and public auction in 1972, with the modest start of these mills, the number of cotton textile mill rose to 31. The government of Kerala has announced in state assembly on March 29, 1994, its Willingness to start 5 more spinning mills, one each of Kazargod, Kozhikkode, Thrissur, Kottayam and Malapuram along with the commissioning of corporative spinning mill at Kareela Kulangara at Allepey with a spindle capacity of 6000 spindles.
The cotton textiles industries are concentrated in district of Thrissur and Palakad followed by Ernakulam and Kannur. These 4 district taken together accounts for nearly 3/4th of the mills in Kerala. The numbers of existing composite mills are quite low i.e., only four in number, Its growth during the last 10 years is nil. Due to the unprofitable nature of composite mill, Malabar spinning and weaving mill discontinued its weaving operation and concentrated on spinning only. Calicut modern spinning mill once turned sick is now taken over by a financially sound third party and found earnings before the last, decade. There are 7 cotton textile mills in Trissur including one composite mill. Kottayam stands last in the list with only one state owned mill.
There are 16 private mill in Kerala of which 14 are spinning mills and the rest 2 are composite mills. The national textile corporation has got under it, 4 spinning mills and 1 composite mill. The corporate sector owns only 2 spinning mills. In Kerala the Trissur corporative spinning mills with an installed spindle capacity of 12,000 spindles is the smallest mill followed by Kathayee Cotton Mills Limited with 14,860 spindles.
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Another welcome feature was that a 100% export oriented unit, Past Pin India Ltd. Started commercial production at Palakad.
These units are located at Palakad near Tamilnadu border. Another corporative mill, Alleppey Corporative spinning mill at Kayamkulam is yet to be commissioned. Out of the 31 mills in Kerala, 14 are private sector, 8 under National Textiles Corporation, 4 under Corporative Sector and 5 under K.S.T.C.
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COMPANY PROFILE
Anna group of companies was started more than 3 decades ago in 1968 when Mr. M.C. Jacob founded the Anna aluminium company. He made a break with past. Belonging to an affluent family of plantation owners, he ventured in to the risky world of manufacturing industry and hoped for the best, while working very hard to make his maiden venture a success.
Today the group is involved in the manufacture of Aluminium sheets, vessels & utensils from Aluminum ingots, spices, fabrics, garments & marine exports etc. The Anna range of vessels & utensils are highly popular in the domestic market and in the Middle East, U.S.A., Africa and Australia.
Strategic Business Units of Anna Group of Companies
Anna Aluminium Company: -
Established in 1968 at Kizhakambalam. Company is the flagship company of the Anna Group. It is engaged in the manufacture of aluminium sheets, vessels and utensils from 99.5% pure aluminium ingots. Its Chackson range of packaged products which includes pressure cooker, milk boiler, thermal cooker, compact idly cooker, etc. are highly popular in the South Indian market. It is presently the only manufacturer with ISI certificate for its vessels in Kerala.
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Sara Spices: -
Sara spices were founded in 1978 to process and market domestically and internationally, Spices and hill products like pepper, cardamom, turmeric, masala and curry powder. High standards of quality and hygiene have won high appreciation at home and abroad as well as AGMARK, the hallmark of quality in India. They are marketed all over Kerala and also exported to the Middle East and U.S.A.
Sea Land Marine Ltd: -
It is a new company incorporated with view to alter the new trust area viz. Marine exports. The company has acquired over 100 acres in Pondichery for setting up integrated Aqua culture division comprising of hatchery and grower ponds. Increased export of shrimps through effective scientific management has enabled to bring in the muchneeded foreign exchange to the company.
Kitex Garments Ltd: -
This of course is a prestigious wing of the Anna Group which offers the finest garments to the fashion conscious markets of the world.
Kitex Ltd.: This textile-manufacturing complex was incorporated in 1975 at Cochin. Kitex produces a wide range of cotton fabric, polyester blends, grey cloth and made ups like bed sheets and lungies. They are marketed through a network of over 2000 authorized dealers. Kitex fabrics are now exported to many parts of the world. Kitex is going to for a major expansion plan to augment the production capacity. At the dawn of the new
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millennium, Kitex referred to the luggage and baggage industry under the brand name ScooBee Day.
Vital Statistics
? ? ? ? ? ? ?
Total built up area of 1, 65,000 square feet. 500 modern 100 looms. 1,500 skilled workers. 20 million meters of cotton and cotton blend fabrics are woven annually 2000 bags production capacity Production capacity of 35,000 sq. meters per day. Managed by a team of processionals.
Production Schedule of Kitex Ltd.
The textile industry is broadly divided into two spinning and weaving. In spinning units, pure cotton yarn of various counts is manufactured. The process of manufacturing pure cotton grey cloth from this cotton yarn is called weaving. The Kitex Limited under study is performing the weaving in the textile industry
The basic output of this unit is 100% cotton grey cloth, which is the raw material for most of the textile industries. About 85% of the total sales of the unit come from the sale of pure cotton grey cloth as such and the rest comes from the sale of lungies, mull, bed sheets and dhotis prepared from the pure cotton grey cloth.
100% cotton grey cloth is manufactured from the cotton yarn. The south Indian suppliers of cotton yarn are given the specification regarding the sort of yarn for
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producing various types of cotton grey cloth. The yarn is delivered to the factory location in Lorries, which are consumed in the unit only after thorough checking.
Various loom machines are used for the conversion of yarn to cotton grey cloth. This cloth, which is off white in colour, is used for making various cotton textiles. Various processes like dyeing, bleaching, printing colouring etc. are done in the cotton grey cloth by different South Indian units. A portion of grey cloth is changed into mull, 100% cotton tough cloth. The mull is made by the bleaching of grey cloth, which changes the colour of the grey cloth into white. This process is undertaken in various units in Tamil Nadu.
The consumer goods from this unit are made from the grey cloth produced here. The grey cloth is transferred to Tamil Nadu units for its printing and colouring. The lungies, bed sheets and dhotis are cut into the required dimensions in the factory itself. As these products are consumer items, the quality is the main factor that quantifies the good will of the unit. For this, experienced laborers do manual checking of individual piece. After this the products are covered in suitable packs for the delivery to the dealers.
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Production Process – A nut Shell Pure Cotton Yarn
Weaving
100% Cotton Grey Cloth
Dyeing Mull Lungies
Printing and colouring
Bed sheets
Dhotis
Chart 1
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Management Structure
The efficient management system plays a domine role in the success of all business units. It is this section that declares the levels of output, its production pattern, pricing technique, marketing style etc. So every concern should have a competent management mechanism.
The significant decisions of the group concerns are taken by the Chairman and the Managing Director who are the representatives of the shareholders. They perform strategic planning and policy-making functions of Kitex Limited. For their help, the General Manager, the top executive of the company’s management is appointed. General Manager is responsible for the smooth, efficient and productive functioning of the unit, from the production to the marketing.
The middle level management comprises of Production Manager, Marketing Manager and Finance Manager. Assistant Marketing Manager and executives work under Marketing Manager for discovering, controlling and maintaining the marketing channels for the unit’s products. Under the Finance Manager, assistant financial manager, executives and various assistants help to utilize finance, resources in a productive manner.
The production department under the leadership of Production Manager implements new production techniques and related matters. Weaving master, possessing notable experience in the field of weaving, is appointed under the Production Manager. Supervisors working under the Weaving Master control the real production process. Trained weavers are appointed under him for manufacturing quality products. Jobbers assist them by ensuring the smooth running of the machineries, especially the looms.
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Marketing and Promotional Functions
Kitex Limited markets its products through dealers in the different parts of the state. The sales of consumer goods concentrate on Kerala State only. There are about 1500 dealers of Kitex Limited. The dealerships are allotted only after assessing the creditworthiness, efficiency and expertise of the parties. Dealers obtain the products through vans of the company and products are unloaded from the vans either at dealer’s godowns or at showrooms.
Kitex lungies already have a vast market. But, for improving its market share, the company included visual media in their advertisement channel. Figures showed that these new media affirmed the usefulness of the products of the company in the minds of several viewers. As an incentive to the dealers, the company provides cash discounts and seasonal discounts.
Personnel Function The personnel’s play a major role in the survival and development of any firm. All the top officials in the company are highly experienced and have shown their ability in the respective fields. The company itself gives the laborers 3 months training course. It will help them to have a clear idea about the machineries and its functioning and help them to make better results in their performance.
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PRODUCT RANGE OF KITEX LTD
Anna groups weaving unit KITEX Ltd. was established in 1975. The company is engaged in the production of fabrics made of cotton and other blends grey cloth, bed sheets and lungies. Through the years, the company has carried rich for itself to this highly competitive industry with its tradition of world-class quality. Kitex lungies are available in four various types - executive, medium super, medium & economy. All priced differently.Kitex white gives an array of white dhotis. Single as well as double. It comes with streaks of colour line & gold lines to add to the box of your dhoti. Kitex also have beautiful & wide range of bedspreads under the label of sweet dreams. They are marketed through a network or over 2000 authorized dealers. Kitex fabrics are also exported to many parts of the world. At the dawn of new millennium Kitex entered in to the luggage and baggage industry under the brand name of Scoobee Day. Bags ranging from school, college, ladies, executive ones for travel are available. Kitex umbrellas are made from imported quality cloth and ribs, stitched with durable threads adorned with colourful handles to beat the weather and even the ultra violet rays.
Product Range
Yarn count range Weft Density Warp density Width range
- NE4s to 100s - 22 to 120 picks per inch - 22 to 132 ends per inch - 36 to 65 inches
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A. Lungies
1. Executive Superior quality lungies available in various designs and colours. Size: 130 cm x 200 cm 2. Medium Super Comfortable lungies, that one would love to drape. Available in various designs and colour combinations Size: 127 cm x 200 cm 3. Medium Experience freedom and coolness with medium range of lungies; which come in warm colours and in various designs. Size: 127 cm x 200 cm 4. Economy After a hard work, jump into lungi to easy the tension, to scooth the sence and to feel relaxed Size: 127 cm x 192 cm 5. Standard Economic variety for use during work also Size: 127 cm x 192 cm
B. Bed Sheets
1. Sweet dreams 60 Beautiful bed spreads in beautiful design and pleasant colour to suit the mood in the bedroom.
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C. Dhotis
1. Smart line White single dhoti streaks of either dark red or dark blue or dark green lines can be worn equally at home and out doors.
2. Smart line Gold Cream colour single dhoti with streaks of Gold jerry lines for special occasions.
3. Ready wear Plain white single dhoti that one will love to drape. The anywhere any time wears.
4. Samrat Pure cotton white double dhoti with lines in 5 different colours to choose. D. School Bags
1. Product: small Designed with attractive features like anti-strain padding and secret pockets.
2. Product: Medium Designed with attractive features like Anti-strain padding, secret pockets and water bottle holder.
3. Product: Large Designed with attractive features like Anti-strain paddings, secret pockets, water bottle holder.
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THEORETICAL PRESPECTIVE
Market Share Analysis
Company sales do not reveal how well the company is performing relative to competitors. Suppose a company’s sales increase. The increase could be due to improved economic conditions benefiting all companies. Or it could be due to improved company performance relative to competitors. Management needs to track its market share. If the company’s market share goes up, the company is gaining on competitors; if it goes down, the company is losing relative to competitors.
Managers must carefully interpret market share movements by product line, customer type, region, and other breakdowns. The market share decline was due mainly to a loss of some customers who normally made larger than average purchases. The manager must investigate why these customers were lost.
Defining and Measuring Market Share
The first step in using market share analysis is to define which measures of market share will be used. Four different measures are available.
1. Overall Market Share: The company’s overall market share is its sales expressed as a percentage of total industry sales. Two decisions are necessary to use this measure. The first is whether to use unit sales or dollar sales to express market share. The other decision has to do with defining the total industry.
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2. Served Market Share: The company’s served market share is its sales expressed as a percentage of the total sales to its served market. Its served market is all the buyers who would be able and willing to buy its product. A company’s served market share is always larger than its overall market share. A company could capture 100 percent of its served market and yet have a relatively small share of the total market. A company’s first task is to win the lion’s share of its served market. As it approaches this goal, it should add new product lines and territories to enlarge its served market.
3. Relative Market Share: This involves expressing the company’s sales as a percentage of the combined sales of the three largest competitors.
4. Relative Market Share: Some companies track their shares as a percentage of the leading competitor’s sales.
After choosing which market share measure to use, the company must collect the necessary data. In the consumer-goods area, individual brand shares are available through syndicated store and consumer panels.
Defending Market Share
While trying to expand total market size, the dominant firm must continuously defend its current business against rival attacks. The leader is like a large elephant being attack by a swarm of bees. The largest and nastiest bee keeps buzzing around the leader.
What can the market leader do to defend its terrain? Twenty centuries ago, Sun Tzu told his warriors: “One does not rely on the enemy not attacking, but relies on the fact that he himself is unassailable.” The most constructive response is continuous
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innovation. The leader refuses to be content with the way things are and leads the industry in developing new-product ideas, customer services, distribution effectiveness, and cost cutting. It keeps increasing its competitive effectiveness and value to customers. The leader applies the military principle of the offensive. The commander exercises initiative, sets the pace, and exploits enemy weaknesses. The best defense is a good offense.
The cost of “plugging holes” can be high. But the cost of abandoning a losing product/market segment can be higher. General Motors did not want to lose money by making small cars; but it sis losing more now because it allowed Japanese car makers to come in strong in the U.S market.
The real answer is that the market leader must consider carefully which terrains are important to defend even at a loss and which can be given up with little risk. The leader cannot defend all of its positions in the market; it must concentrate its resources where they count. The aim of defensive strategy is to reduce the probability of attack, divert attacks to less threatening areas, and lessen their intensity. Any attack is likely to hurt profits. But the defender’s form and speed of response can make an important difference in the profit consequences. Researchers are currently exploring the most appropriate forms of response to price and other attacks.
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ANALYSIS AND INTERPRETATION
Lungies and Dhotis 1. Different brands of lungies and dhotis that were traded by the Kitex dealers Brands Kitex Dealers KKB Jansons Bombay Dyeing Angel Other unbranded lungies No of Respondents 98 66 27 25 44 98 Table 1 Percentage 100 67.35 27.55 25.51 44.90 100
100% of Kitex dealers are traded in unbranded items, 67.35% of them traded in KKB, 44.9% traded in Angel, 27.55% of them traded in Jansons and 25.5% of them in Bombay Dyeing. All of the dealers liked to trade unbranded lungies and dhotis since it have high margins and low price.
Brands of lungies and dhotis traded by dealers
120 100 % of dealers 80 60 40 20 0 Kitex KKB Jansons Bombay Dyeing Angel Others
Brands
Chart 3 2. Preferences of Kitex dealers to stock Kitex lungies and dhotis. Assigning Weights
% of
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Particulars Rank I
Profit Margin Fast Moving Brand Image Availability Discounts Quality
Rank II
Rank III
Rank IV
Rank V
Rank IV
48 348 6 186
55 170 36 220
52 152 24 96 60
63 60 147 21 24
96 28 28 38
16 7 4 72
Total
Total 227 350 542 317 131 490 2057
Weight 11.04 17.01 26.35 15.41 6.37 23.82 100
Table 2
The main factor to stock Kitex lungies and dhotis by the dealers is brand image and quality. The percentages of total weights assigned to these factors are 26.35 and 23.82 respectively. Discounts were the least preferred factor. Thus it can be inferred that the dealers stocks Kitex lungies and dhotis because they have good brand image and quality when compared to other lungies and dhotis.
Preferences of Kitex dealers to stock Kitex lungies and dhotis. 30 25 20 15 10 5 0 Profit Margin Fast Moving Brand Image Availability Discounts Quality
% of dealers
Particulars Chart 4
3. Dealers opinion about the distribution of Kitex lungies and Dhotis Opinion Highly Satisfied Satisfied Moderately Satisfied Number of Respondents 1 80 9
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Percentage 1.02 81.63 9.19
Dissatisfied Highly Dissatisfied Total
5 3 98 Table 3
5.10 3.06 100
81.6% of dealers are satisfied with distribution of Kitex lungies and Dhotis, 9.19% of them are morderly satisfied, 5.10% of them are dissatisfied and 3.06% of them are highly dissatisfied. Most of the dealers have good opinion about the distribution of Kitex.
Opinion about the distribution of Kitex lungies and Dhothis 90 80 70 60 50 40 30 20 10 0 Highly Satisfied Satisfied Moderately Satisfied Opinion Dissatisfied Highly Dissatisfied
% of dealers
Chart 5 4. The opinion of the dealers why a customer prefers Kitex lungies and dhotis Opinion Price Availability Brand image Display Style Quality Total No of Respondents 0 0 45 0 1 52 98
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Percentage 0 0 45.92 0 1.02 53.06 100
Table 4
45.92% of the dealers responded that brand image of Kitex lungies and dhotis is the main reason for why a customer prefers Kitex lungies and dhotis, 53.06% of them responded that the quality of the Kitex lungies and dhotis was the main factor to the customer in purchasing Kitex lungies and dhotis. Most of the consumers preferred Kitex lungies and dhotis for its very good quality. While pricing 0%, Availability 0%, Display 0%, Style 1.02%, were not the factors that made a customer prefer a Kitex lungies and dhotis.
Dealers opinion about why a customer prefer Kitex lungies and dhotis 60 50 40 30 20 10 0 Price Availability Brand image Display Style Quality
% of dealers
Opinion
Chart 6 5. Dealers opinion about reason why customers not selecting Kitex lungies and dhotis Opinion Lack of Selection Lack of Quality High Price Colour Loosing Not have any Problem Total No of Respondents 45 3 43 1 6 98 Table 5 Percentage 45.92 3.06 43.88 1.02 6.12 100
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45.92% dealers responded that they are not getting good selection or design for Kitex lungies and dhotis. 43.88% of retailers have the opinion that Kitex lungies and dhotis was high priced when compared to competitors. While 3.06% of the dealers responded that Kitex lungies and dhotis have lack of quality. 1.02% of retailers responded that Kitex lungies and dhotis have the problem of colour loosing 6.12% of the dealers have no complaint about Kitex lungies and dhotis. A considerable number of dealers have the opinion that Kitex lungies and dhotis is lacking good selection and good pricing.
Dealers opinion about why customer not selecting Kitex lungies and dhotis 50 40 30 20 10 0 Lack of Selection Lack of Quality High Price Opinion Colour Loosing Not have any Problem % of dealers
Chart 7 6. Opinion of dealers about the price of Kitex lungies and dhotis Opinion Highly satisfied Satisfied Moderately Satisfied Dissatisfied Highly Dissatisfied Total No of Respondents 1 17 42 32 6 98 Table 6 Percentage 1.02 17.35 42.86 32.65 6.12 100
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42.86% of the dealers are moderaly satisfied with the price of Kitex lungies and dhotis, 32.65% of the dealers are dissatisfied, 6.12% of dealers are highly dissatisfied. Only 17.35% of the retailers are satisfied with the pricing of Kitex lungies and dhotis and 1.02% are highly satisfied.
Major portion of the dealers were not having good opinion about the price of Kitex lungies and dhotis.
Opinion of dealers about the price of Kitex lungies and dhotis 50 % of dealers 40 30 20 10 0 Highly satisfied Satisfied Moderately Satisfied Opinion Dissatisfied Highly Dissatisfied
Chart 8 7. Dealers impression about quality of Kitex lungies and dhotis
Opinion Highly Satisfied Satisfied Moderately Satisfied Dissatisfied Highly Dissatisfied Total No of Respondents 5 74 14 5 0 98 Table 7
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Percentage 5.1 75.51 14.29 5.10 0 100
3/4th of the dealers are satisfied with the quality of Kitex lungies and dhotis. 5.1% of dealers are highly satisfied. 14.29% of them are moderately satisfied, 5.1% of them are dissatisfied. It is inferred that a majority of dealers are satisfied with the quality of Kitex lungies and dhotis. .
Dealers impression about quality of Kitex lungies and dhotis 80 70 60 50 40 30 20 10 0 Highly Satisfied Satisfied Moderately Satisfied Opinion Dissatisfied Highly Dissatisfied
Chart 9 8. Dealers opinion about the selection and design of Lungies and dhotis that Kitex provides Options Highly Satisfied Satisfied No of Respondents 3 33 Percentage 3.06 33.68
% of dealers
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Moderately Satisfied Dissatisfied Highly Dissatisfied Total
27 29 6 98 Table 8
27.55 29.59 6.12 100
33.68% of dealers suggested that they are satisfied, 3.06% were highly satisfied with the selection of Kitex lungies and dhotis. 27.55% of dealers opined that they are moderately satisfied, 29.59% of dealers were dissatisfied. 6.12% of dealers were highly dissatisfied. Dealers had a common opinion that numbers of designs in a box of lungies and dhotis are not sufficient. They said that other brands give more designs and selection than Kitex.
Dealers opinion about the varities of Kitex lungies and dhotis 40 35 30 25 20 15 10 5 0 Highly Satisfied Satisfied Moderately Satisfied Opinion Dissatisfied Highly Dissatisfied
% of dealers
Chart 10
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9. Percentage of consumers asking lungies and dhotis by its brand name
Opinion Yes No Total
No of Respondents 76 22 98 Table 9
Percentage 77.55 22.45 100
77.55% i.e. 76 dealers replayed that consumers asked for lungies and dhotis by their brand name while 22.45% i.e. 22 dealers dealers replaied that consumers were not bothered of the brand name of lungies and dhotis.
Customers asking lungies and dhotis by its brand name
22%
Yes No
78%
Chart 11
10. Brand asked by the customers to dealers
Brands Kitex KKB
No of Respondents 58 7
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Percentage 76.32 9.21
Angel Jansons Others Total
6 1 4 76 Table 10
7.89 1.32 5.26 100
According to dealers among the 76.32% customers who ask the lungies by their brand name were asking for Kitex lungies and dhotis, while 9.21% for KKB, 7.89% for Angel, 1.32% for Jansons and 5.26% for other lungies and dhotis. Majority of the customers were asking Kitex lungies and dhotis. It shows that Kitex lungies and dhotis have good brand image.
Brand asked by the customers to dealers 100 80 60 40 20 0 Kitex KKB Angel Brands Jansons Others
% of dealers
Chart 12
11. Brand suggested by the dealers to customers Brands Kitex KKB Angel Jansons Others No of Respondents 36 18 14 4 12
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Percentage 36.73 18.37 14.29 4.08 12.24
Not Responding Total
14 98 Table 11
14.29 100
Most suggested brand by the dealers was Kitex, followed by KKB with 18.37% and Angel with 18.37%. This makes it evident that Kitex is a more preferred brand among the retailers. 14.29% of the retailers are not recommending any brand to customers.
Brand suggested by the dealers to customers 40 35 % of dealers 30 25 20 15 10 5 0
Kitex KKB Angel Jansons Others Not Responding
Brands
Chart 13 12. Most effective Media for advertising according to the dealers
Opinion T.V Radio News Paper Hoardings Wall Printing Total
No of Respondents 61 8 22 3 4 98 Table 12
Percentage 62.25 8.16 22.45 3.06 4.08 100
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62.25% of the dealers responded that the Television is the most effective media, 22.45% of them responded that newspaper are more effective. 8.16% of them said that advertisements through hoardings is also effective, 4.08% of the dealers replied that wallprinting gifts is more effective. Dealers prefer the media Television to others. So frequent advertisement in Television would definitely generate result.
Effective media for advertisement 80 % of dealers 60 40 20 0 T.V Radio News Paper Media Chart 14 Hoardings Wall Printing
MARKET SHARE OF KITEX LUNGIES AND DHOTIS.
More than 1/2 of the sales of lungies in dealer shops is unbranded items. Cheap price and good selection is the reason for their market share. 19.47% of the market is held by KKB followed by Kitex with 16.69%. Angel have 6.67%, Jansons have only 4.65% and Bombay Dyeing have only 1.26%.
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Most of the dealers have the suggestion to reduce price of Kitex lungies and dhotis increase varieties. Some dealers are dissatisfied with the dealings, and they suggested to improving the dealings.
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Market share of lungies and dhotis
60
50
40
% of dealers 30
20
10
0 Kitex Angel Bombay Jansons Dyeing Brands KKB Others
Chart 15
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FINDINGS
1) 2) 3)
All Kitex dealers are trading in low priced unbranded lungies and dhotis which give them more profits. They liked low priced items because they are easy to sell. Majority of dealers are satisfied with the distribution of Kitex lungies and Dhotis. Brand image and quality are the only factors which contributed to the popularity of Kitexs lungies and dhotis. Price, Display and style were not attractive for the customers.
4) 5) 6)
A considerable number of dealers had the opinion that Kitex lungies and dhotis are costlier and lack good selection. Most of the dealers were happy with the quality of Kitex lungies and dhotis. Dealers had a common opinion that numbers of designs in a box of lungies and dhotis are not sufficient. They said that other brands give more designs and selection than Kitex.
7) 8) 9) 10) 11) 12) 13) 14)
Among the customers who ask lungies and dhotis by their brand name, Kitex customers stand first. Most suggested brands in lungies and dhotis by the dealers were Kitex. Dealers responded that TV is the most effective media to promote brands. Because of the cheap price and good selection, ½ of the total sales of lungies and dhotis go to the unbranded items. The main reason for the preference of Kitex dhotis is the brand images Kitex dhotis also face the problem of lack of selection and high price ¾th of the dealers have good opinion for the quality of Kitex lungies and dhotis Cheap prices and attractive Karas make the unbranded lungies and dhotis the best sellers. Kitex lungies and dhotis come only after MCR and premier No. 1
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SUGGESTIONS
1.
Low priced lungies and dhotis should be launched in a separate brand to attract the lower income group which comes a mammoth portion of the customers. Introducing lungies in a separate brand name will not affect the sale of the existing brands
2. 3. 4. 5. 6. 7. 8.
New prints and designs will surely boost up the sale of existing lungies. Colorful and attractive Karas should be given for dhotis. If feasible more profit margins through liberal schemes and incentives could be adopted to make the dealers push the Kitex items more. Number of designs in a box of lungies and dhotis should be increased System of replacement of rejected items should be improved since there is a complaint about this among the dealers. Kitex lungies and dhotis need more advertisements since the strong opponent MCR has aggressive advertisements. Frequent advertisements in TV will definitely improve the sale. Much stronger relations could be built with dealers by taking them into confidence through consistent promotion of the products.
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CONCLUSION
Kitex textiles are popular among customers for its quality and durability. Kitex products have good brand images among the customers and dealers.
The study revealed that most of the dealers are not having good opinion about the pricing of Kitex textiles and selection of Kitex textiles.
Kitex dealers were impressed with the distribution of Kitex Lungies and dhotis. Dealers have good opinion about the quality of Kitex lungies and dhotis.
It is desirable to have a low priced lungies and dhotis to aim the market of lower income people. Selection of Kitex products needs an increase to grab more market. It is also desirable that the company must more importance to maintain good relationships with dealers.
After considering various matters and evaluating the performance of Kitex the future of Kitex is very prosperous. Kitex can go further for marketing the product to more customers and to new segments.
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doc_196894558.doc
Market share is the percentage of a market (defined in terms of either units or revenue) accounted for by a specific entity." In a survey of nearly 200 senior marketing managers, 67 percent responded that they found the "dollar market share" metric very useful, while 61% found "unit market share" very usful.
INTRODUCTION
This study is aimed to know the market share of Kitex lungies and dhotis and to form marketing strategies to improve its market share.
Company sales do not reveal how well the company is performing relative to competitors. Suppose a company’s sale increase could be due to improved economic conditions benefiting all companies or it could be due to improved company performance relative to competitors. Management needs to track its market share. If the company’s market share goes up the company is gaining on competitors, if it goes down, the company is losing relative to competitors.
Managers must carefully interpret market share movements of product line, customer types region, and other breakdowns. The market share decline was due mainly to a loss of some customers who normally made larger than average purchases. The managers must investigate why these customers were lost.
The marketer’s should know the market share by various methods for business and should anticipate future demand. Thus quantitative measurements are essential for analyzing marketing opportunity, planning marketing programme and find controlling marketing control.
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Executive Summary
The Kitex Ltd, situated at Kizhakambalam in Ernakulam district is one of the flourishing textile companies, which comes under the prestigious Anna Group. Kitex lungies, dhotis and bed linen are the hallmark of the success of Kitex Ltd.
This study was conducted for assessing the market share of Kitex brands and to sort out the ways and means for improving the existing environment. The researcher also aimed at bringing our dealer’s opinion regarding the reason for stocking the brand, distribution, quality, price and selection of Kitex lungies and dhotis.
It was found that Kitex products had good brand image and quality. The market share of Kitex lungies and dhotis were found to 19.47% and 11.5% respectively. The unbranded low priced items captured the major portion of the market share. The company had a good distribution network. It was noted that the company should give more incentives to the dealers to boost up the sales. Schemes and incentives offered by the other brands were more attractive than Kitex.
Kitex lungies had good enquiry from the customer but Kitex dhotis had comparatively less enquiries. So the Kitex dhotis need more sales promoting activities. Even though the Kitex dealers thrived in quality, the major portion of the market was conquered by the low priced unbranded lungies and dhotis. So Kitex can increase its sales by trying low priced items.
It was found that the company required building up of more confidence among dealers through promotional activities.
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OBJECTIVES OF THE STUDY
Main Objective
To assess the dealers perception on market share of Kitex lungies and dhotis and to find out the ways and means to improve its market share.
Specific Objectives
1) 2) 3) 4) 5) 6)
To study the preferences of dealers to stock Kitex textiles To study the dealers satisfaction about the price. To study weather the dealers are satisfied with the quality of Kitex textiles. To study about the dealer’s satisfaction with the distribution of Kitex To know dealers attitude to push Kitex textiles. To give suggestions to Kitex for increase the sales of Kitex lungies and Dhotis
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RESEARCH METHODOLOGY
Research refers to a search of knowledge. Marketing research is defined as the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services.
Nature and Sources of data
Primary data collected for the study and questionnaire were used for this purpose. Apart from the secondary data collected from reports and manuals of Kitex Ltd. Discussions with the marketing manager and staff members also helped to a great extend in getting valuable information, questionnaire construction in order to make questionnaire attractive. A set of 16 questions were given to dealers for dhotis and lungies.
Sampling design
Convenience sampling was adopted for the study. In this method the sample units are close primarily on the basis of convenience to the investigator. This method was turned be most suitable for the study.
Sample size
Actual sample collected for the book is 112 and due to errors committed by the respondents in filling up their questionnaire, 14 samples were removed. The effective sample size considered for the analysis is 98.
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Universe
All Kitex dealers in Kerala.
Scope of Study
Dealer survey was conducted at Ernakulam and Trissur markets only.
Two
questionnaires were prepared to collect the data about lungies and dhotis. Only Kitex dealers were selected from the market. The scope of the study is limited to the products of Kitex Ltd., Kizhakambalam.
Period of study
The study covered a period of one month from 19th may 2008 to 18th June 2008.
Tools for analysis
The collected data was used for analysis. The data has been so arranged to apply simple statistical tools as bar diagrams charts, tables etc.
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Limitations of study
1) 2) 3) 4)
The scope of the study was limited to Kitex lungies and dhotis The respondents were having business throughout the day. This might have caused distraction while answering the questionnaire. The study was fully based on the dealer’s assumptions. The real consumers of lungies and dhotis were not interviewed because of the time element and wideness in the subject.
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INDUSTRY PROFILE
Textile Industry in India The Indian textile sector has its roots going back several thousand years. After the industrial revolution in Europe, this sector in India also saw growth of an industrial complex. However, over the least 50 years the textile industry in India has shown a chequered performance.
Today the industry contributes around 14% to industrial production in the country, is estimated to directly employ approximately 35 million people apart from the indirect employment in allied sectors, accounts for a about 27% to the country’s exports, and is, in sum, an important economic engine for the nation.
In part, the very diversity scale and spread of the industry which has been its strength, has also been its weakness. Like the “six blind men exploring the elephant” most people’s experiences and actions have included only part of the industry, rather than its completeness. Thus, even government regulations and financial policies have never been able to adequately fulfill the widely varied needs of the different segments of the industry.
However, during the last 10 years, the industry’s actions, government policies as well as market events have begun to coverage, providing several growth opportunities of the sector domestically as well as in the global market. As the MFA quota-regime draws to a close, India presents many opportunities for buyers, suppliers and investors to partner with its textile industry, and to profit from the partnership.
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Cotton textiles in India are a well-established manufacturing industry and employ more workers than any other sector. Production in FY 1992 was 19 billion square meters of cloth. In Indian textile mills, yarn is spun, woven into fabrics, and processed under one roof. Production as a share of the manufacturing industry fell from 79 percent in 1951 to under 30 percent in the early 1990s as a result of curbs on capacity expansion and new equipment and differential excise duties. The main export market is Russia and other former Soviet republics. The power-loom fabric dominates India’s garment export industry. There is also a substantial handloom sector, which provides employment in rural areas.
The Indian textile industry, which has created a global market for itself with its competitive price and versatility, is now repositioning. Itself as a source of apparel design, textiles and manufacture to target the international client and increase exports manifold.
“India is exporting around $13 billion of textiles presently but to improve our share, India has to innovate our items for the global market. International brands have to be convinced that they can source all their product requirements from cutting to designing to India.
The textile industry holds a predominant position in the Indian economy, which is manifested in its significant contribution to industrial production, employment generation and foreign exchange earnings.
The Indian apparel industry had so far enjoyed the privileges of assured demand and some protection under the quota system. As stipulated in agreements signed at WTO, the textiles market will open up fully by 2005. The phasing out of quantitative restrictions post 2004 is expected to create and additional market of $50 billion for the developing countries. This would pose new challenges and opportunities since the Indian textile
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products will have to compete in quality and cost, with products from other countries like China, Bangladesh, Indonesia, Pakistan, and Sri Lanka.
All sectors of the textile industry seem to be undertaking massive programmes of modernization to ensure productivity, improve quality along with adoption of innovative marketing strategy and introduction of support system for commercial intelligence, designs, fashion inputs and promotion of brand equity, along with application of IT as integral part of production process to reinvigorate the textile sector and to make it a leading exports industry.
Strengthening and enhancing the technological capability of the domestic textile machinery industry is vital for placing the Indian textile industry on the trajectory of accelerated growth.
Textile Industry in Kerala
The first cotton textiles mills were established in 1883 in Kallai near Kozhikkode by P.S Santhappa Chettiyar and M. Guptan Namboothiripad, known as Malabar Spinning and Weaving Mill. The commercial production was started in 1887. Later in 1976 the mill was taken over by Government of Kerala and handled over to Kerala state textiles corporation. The second mill presently called Parvathi Mills Ltd.was started in 1884 by James Darragan, an English man using 19 acres of land donated by the Maharaja of Travancore. In 1888, the mill was sold to another British industrialist named AT Vin. In 1932 the management was taken over by Kerala textiles corporation. In April 1974, the mill was nationalized under sick textiles undertaking (nationalization) Act and was made a unit of National Textiles Corporation (NTC) Limited. Bangalore, which is a subsidiary of NTC Delhi. Sitaram Textiles Ltd., another oldest mill was established in 1903 as a
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Private Limited Company. Balarama Iyyer started it. Later due to mismanagement and labour trouble, company was liquidated in 1954.
The factory was gutted down due to fire in 1959 and spinning production was completely stopped. The Government of Kerala purchased this unit as a result of liquidation and public auction in 1972, with the modest start of these mills, the number of cotton textile mill rose to 31. The government of Kerala has announced in state assembly on March 29, 1994, its Willingness to start 5 more spinning mills, one each of Kazargod, Kozhikkode, Thrissur, Kottayam and Malapuram along with the commissioning of corporative spinning mill at Kareela Kulangara at Allepey with a spindle capacity of 6000 spindles.
The cotton textiles industries are concentrated in district of Thrissur and Palakad followed by Ernakulam and Kannur. These 4 district taken together accounts for nearly 3/4th of the mills in Kerala. The numbers of existing composite mills are quite low i.e., only four in number, Its growth during the last 10 years is nil. Due to the unprofitable nature of composite mill, Malabar spinning and weaving mill discontinued its weaving operation and concentrated on spinning only. Calicut modern spinning mill once turned sick is now taken over by a financially sound third party and found earnings before the last, decade. There are 7 cotton textile mills in Trissur including one composite mill. Kottayam stands last in the list with only one state owned mill.
There are 16 private mill in Kerala of which 14 are spinning mills and the rest 2 are composite mills. The national textile corporation has got under it, 4 spinning mills and 1 composite mill. The corporate sector owns only 2 spinning mills. In Kerala the Trissur corporative spinning mills with an installed spindle capacity of 12,000 spindles is the smallest mill followed by Kathayee Cotton Mills Limited with 14,860 spindles.
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Another welcome feature was that a 100% export oriented unit, Past Pin India Ltd. Started commercial production at Palakad.
These units are located at Palakad near Tamilnadu border. Another corporative mill, Alleppey Corporative spinning mill at Kayamkulam is yet to be commissioned. Out of the 31 mills in Kerala, 14 are private sector, 8 under National Textiles Corporation, 4 under Corporative Sector and 5 under K.S.T.C.
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COMPANY PROFILE
Anna group of companies was started more than 3 decades ago in 1968 when Mr. M.C. Jacob founded the Anna aluminium company. He made a break with past. Belonging to an affluent family of plantation owners, he ventured in to the risky world of manufacturing industry and hoped for the best, while working very hard to make his maiden venture a success.
Today the group is involved in the manufacture of Aluminium sheets, vessels & utensils from Aluminum ingots, spices, fabrics, garments & marine exports etc. The Anna range of vessels & utensils are highly popular in the domestic market and in the Middle East, U.S.A., Africa and Australia.
Strategic Business Units of Anna Group of Companies
Anna Aluminium Company: -
Established in 1968 at Kizhakambalam. Company is the flagship company of the Anna Group. It is engaged in the manufacture of aluminium sheets, vessels and utensils from 99.5% pure aluminium ingots. Its Chackson range of packaged products which includes pressure cooker, milk boiler, thermal cooker, compact idly cooker, etc. are highly popular in the South Indian market. It is presently the only manufacturer with ISI certificate for its vessels in Kerala.
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Sara Spices: -
Sara spices were founded in 1978 to process and market domestically and internationally, Spices and hill products like pepper, cardamom, turmeric, masala and curry powder. High standards of quality and hygiene have won high appreciation at home and abroad as well as AGMARK, the hallmark of quality in India. They are marketed all over Kerala and also exported to the Middle East and U.S.A.
Sea Land Marine Ltd: -
It is a new company incorporated with view to alter the new trust area viz. Marine exports. The company has acquired over 100 acres in Pondichery for setting up integrated Aqua culture division comprising of hatchery and grower ponds. Increased export of shrimps through effective scientific management has enabled to bring in the muchneeded foreign exchange to the company.
Kitex Garments Ltd: -
This of course is a prestigious wing of the Anna Group which offers the finest garments to the fashion conscious markets of the world.
Kitex Ltd.: This textile-manufacturing complex was incorporated in 1975 at Cochin. Kitex produces a wide range of cotton fabric, polyester blends, grey cloth and made ups like bed sheets and lungies. They are marketed through a network of over 2000 authorized dealers. Kitex fabrics are now exported to many parts of the world. Kitex is going to for a major expansion plan to augment the production capacity. At the dawn of the new
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millennium, Kitex referred to the luggage and baggage industry under the brand name ScooBee Day.
Vital Statistics
? ? ? ? ? ? ?
Total built up area of 1, 65,000 square feet. 500 modern 100 looms. 1,500 skilled workers. 20 million meters of cotton and cotton blend fabrics are woven annually 2000 bags production capacity Production capacity of 35,000 sq. meters per day. Managed by a team of processionals.
Production Schedule of Kitex Ltd.
The textile industry is broadly divided into two spinning and weaving. In spinning units, pure cotton yarn of various counts is manufactured. The process of manufacturing pure cotton grey cloth from this cotton yarn is called weaving. The Kitex Limited under study is performing the weaving in the textile industry
The basic output of this unit is 100% cotton grey cloth, which is the raw material for most of the textile industries. About 85% of the total sales of the unit come from the sale of pure cotton grey cloth as such and the rest comes from the sale of lungies, mull, bed sheets and dhotis prepared from the pure cotton grey cloth.
100% cotton grey cloth is manufactured from the cotton yarn. The south Indian suppliers of cotton yarn are given the specification regarding the sort of yarn for
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producing various types of cotton grey cloth. The yarn is delivered to the factory location in Lorries, which are consumed in the unit only after thorough checking.
Various loom machines are used for the conversion of yarn to cotton grey cloth. This cloth, which is off white in colour, is used for making various cotton textiles. Various processes like dyeing, bleaching, printing colouring etc. are done in the cotton grey cloth by different South Indian units. A portion of grey cloth is changed into mull, 100% cotton tough cloth. The mull is made by the bleaching of grey cloth, which changes the colour of the grey cloth into white. This process is undertaken in various units in Tamil Nadu.
The consumer goods from this unit are made from the grey cloth produced here. The grey cloth is transferred to Tamil Nadu units for its printing and colouring. The lungies, bed sheets and dhotis are cut into the required dimensions in the factory itself. As these products are consumer items, the quality is the main factor that quantifies the good will of the unit. For this, experienced laborers do manual checking of individual piece. After this the products are covered in suitable packs for the delivery to the dealers.
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Production Process – A nut Shell Pure Cotton Yarn
Weaving
100% Cotton Grey Cloth
Dyeing Mull Lungies
Printing and colouring
Bed sheets
Dhotis
Chart 1
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Management Structure
The efficient management system plays a domine role in the success of all business units. It is this section that declares the levels of output, its production pattern, pricing technique, marketing style etc. So every concern should have a competent management mechanism.
The significant decisions of the group concerns are taken by the Chairman and the Managing Director who are the representatives of the shareholders. They perform strategic planning and policy-making functions of Kitex Limited. For their help, the General Manager, the top executive of the company’s management is appointed. General Manager is responsible for the smooth, efficient and productive functioning of the unit, from the production to the marketing.
The middle level management comprises of Production Manager, Marketing Manager and Finance Manager. Assistant Marketing Manager and executives work under Marketing Manager for discovering, controlling and maintaining the marketing channels for the unit’s products. Under the Finance Manager, assistant financial manager, executives and various assistants help to utilize finance, resources in a productive manner.
The production department under the leadership of Production Manager implements new production techniques and related matters. Weaving master, possessing notable experience in the field of weaving, is appointed under the Production Manager. Supervisors working under the Weaving Master control the real production process. Trained weavers are appointed under him for manufacturing quality products. Jobbers assist them by ensuring the smooth running of the machineries, especially the looms.
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Marketing and Promotional Functions
Kitex Limited markets its products through dealers in the different parts of the state. The sales of consumer goods concentrate on Kerala State only. There are about 1500 dealers of Kitex Limited. The dealerships are allotted only after assessing the creditworthiness, efficiency and expertise of the parties. Dealers obtain the products through vans of the company and products are unloaded from the vans either at dealer’s godowns or at showrooms.
Kitex lungies already have a vast market. But, for improving its market share, the company included visual media in their advertisement channel. Figures showed that these new media affirmed the usefulness of the products of the company in the minds of several viewers. As an incentive to the dealers, the company provides cash discounts and seasonal discounts.
Personnel Function The personnel’s play a major role in the survival and development of any firm. All the top officials in the company are highly experienced and have shown their ability in the respective fields. The company itself gives the laborers 3 months training course. It will help them to have a clear idea about the machineries and its functioning and help them to make better results in their performance.
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PRODUCT RANGE OF KITEX LTD
Anna groups weaving unit KITEX Ltd. was established in 1975. The company is engaged in the production of fabrics made of cotton and other blends grey cloth, bed sheets and lungies. Through the years, the company has carried rich for itself to this highly competitive industry with its tradition of world-class quality. Kitex lungies are available in four various types - executive, medium super, medium & economy. All priced differently.Kitex white gives an array of white dhotis. Single as well as double. It comes with streaks of colour line & gold lines to add to the box of your dhoti. Kitex also have beautiful & wide range of bedspreads under the label of sweet dreams. They are marketed through a network or over 2000 authorized dealers. Kitex fabrics are also exported to many parts of the world. At the dawn of new millennium Kitex entered in to the luggage and baggage industry under the brand name of Scoobee Day. Bags ranging from school, college, ladies, executive ones for travel are available. Kitex umbrellas are made from imported quality cloth and ribs, stitched with durable threads adorned with colourful handles to beat the weather and even the ultra violet rays.
Product Range
Yarn count range Weft Density Warp density Width range
- NE4s to 100s - 22 to 120 picks per inch - 22 to 132 ends per inch - 36 to 65 inches
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A. Lungies
1. Executive Superior quality lungies available in various designs and colours. Size: 130 cm x 200 cm 2. Medium Super Comfortable lungies, that one would love to drape. Available in various designs and colour combinations Size: 127 cm x 200 cm 3. Medium Experience freedom and coolness with medium range of lungies; which come in warm colours and in various designs. Size: 127 cm x 200 cm 4. Economy After a hard work, jump into lungi to easy the tension, to scooth the sence and to feel relaxed Size: 127 cm x 192 cm 5. Standard Economic variety for use during work also Size: 127 cm x 192 cm
B. Bed Sheets
1. Sweet dreams 60 Beautiful bed spreads in beautiful design and pleasant colour to suit the mood in the bedroom.
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C. Dhotis
1. Smart line White single dhoti streaks of either dark red or dark blue or dark green lines can be worn equally at home and out doors.
2. Smart line Gold Cream colour single dhoti with streaks of Gold jerry lines for special occasions.
3. Ready wear Plain white single dhoti that one will love to drape. The anywhere any time wears.
4. Samrat Pure cotton white double dhoti with lines in 5 different colours to choose. D. School Bags
1. Product: small Designed with attractive features like anti-strain padding and secret pockets.
2. Product: Medium Designed with attractive features like Anti-strain padding, secret pockets and water bottle holder.
3. Product: Large Designed with attractive features like Anti-strain paddings, secret pockets, water bottle holder.
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THEORETICAL PRESPECTIVE
Market Share Analysis
Company sales do not reveal how well the company is performing relative to competitors. Suppose a company’s sales increase. The increase could be due to improved economic conditions benefiting all companies. Or it could be due to improved company performance relative to competitors. Management needs to track its market share. If the company’s market share goes up, the company is gaining on competitors; if it goes down, the company is losing relative to competitors.
Managers must carefully interpret market share movements by product line, customer type, region, and other breakdowns. The market share decline was due mainly to a loss of some customers who normally made larger than average purchases. The manager must investigate why these customers were lost.
Defining and Measuring Market Share
The first step in using market share analysis is to define which measures of market share will be used. Four different measures are available.
1. Overall Market Share: The company’s overall market share is its sales expressed as a percentage of total industry sales. Two decisions are necessary to use this measure. The first is whether to use unit sales or dollar sales to express market share. The other decision has to do with defining the total industry.
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2. Served Market Share: The company’s served market share is its sales expressed as a percentage of the total sales to its served market. Its served market is all the buyers who would be able and willing to buy its product. A company’s served market share is always larger than its overall market share. A company could capture 100 percent of its served market and yet have a relatively small share of the total market. A company’s first task is to win the lion’s share of its served market. As it approaches this goal, it should add new product lines and territories to enlarge its served market.
3. Relative Market Share: This involves expressing the company’s sales as a percentage of the combined sales of the three largest competitors.
4. Relative Market Share: Some companies track their shares as a percentage of the leading competitor’s sales.
After choosing which market share measure to use, the company must collect the necessary data. In the consumer-goods area, individual brand shares are available through syndicated store and consumer panels.
Defending Market Share
While trying to expand total market size, the dominant firm must continuously defend its current business against rival attacks. The leader is like a large elephant being attack by a swarm of bees. The largest and nastiest bee keeps buzzing around the leader.
What can the market leader do to defend its terrain? Twenty centuries ago, Sun Tzu told his warriors: “One does not rely on the enemy not attacking, but relies on the fact that he himself is unassailable.” The most constructive response is continuous
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innovation. The leader refuses to be content with the way things are and leads the industry in developing new-product ideas, customer services, distribution effectiveness, and cost cutting. It keeps increasing its competitive effectiveness and value to customers. The leader applies the military principle of the offensive. The commander exercises initiative, sets the pace, and exploits enemy weaknesses. The best defense is a good offense.
The cost of “plugging holes” can be high. But the cost of abandoning a losing product/market segment can be higher. General Motors did not want to lose money by making small cars; but it sis losing more now because it allowed Japanese car makers to come in strong in the U.S market.
The real answer is that the market leader must consider carefully which terrains are important to defend even at a loss and which can be given up with little risk. The leader cannot defend all of its positions in the market; it must concentrate its resources where they count. The aim of defensive strategy is to reduce the probability of attack, divert attacks to less threatening areas, and lessen their intensity. Any attack is likely to hurt profits. But the defender’s form and speed of response can make an important difference in the profit consequences. Researchers are currently exploring the most appropriate forms of response to price and other attacks.
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ANALYSIS AND INTERPRETATION
Lungies and Dhotis 1. Different brands of lungies and dhotis that were traded by the Kitex dealers Brands Kitex Dealers KKB Jansons Bombay Dyeing Angel Other unbranded lungies No of Respondents 98 66 27 25 44 98 Table 1 Percentage 100 67.35 27.55 25.51 44.90 100
100% of Kitex dealers are traded in unbranded items, 67.35% of them traded in KKB, 44.9% traded in Angel, 27.55% of them traded in Jansons and 25.5% of them in Bombay Dyeing. All of the dealers liked to trade unbranded lungies and dhotis since it have high margins and low price.
Brands of lungies and dhotis traded by dealers
120 100 % of dealers 80 60 40 20 0 Kitex KKB Jansons Bombay Dyeing Angel Others
Brands
Chart 3 2. Preferences of Kitex dealers to stock Kitex lungies and dhotis. Assigning Weights
% of
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Particulars Rank I
Profit Margin Fast Moving Brand Image Availability Discounts Quality
Rank II
Rank III
Rank IV
Rank V
Rank IV
48 348 6 186
55 170 36 220
52 152 24 96 60
63 60 147 21 24
96 28 28 38
16 7 4 72
Total
Total 227 350 542 317 131 490 2057
Weight 11.04 17.01 26.35 15.41 6.37 23.82 100
Table 2
The main factor to stock Kitex lungies and dhotis by the dealers is brand image and quality. The percentages of total weights assigned to these factors are 26.35 and 23.82 respectively. Discounts were the least preferred factor. Thus it can be inferred that the dealers stocks Kitex lungies and dhotis because they have good brand image and quality when compared to other lungies and dhotis.
Preferences of Kitex dealers to stock Kitex lungies and dhotis. 30 25 20 15 10 5 0 Profit Margin Fast Moving Brand Image Availability Discounts Quality
% of dealers
Particulars Chart 4
3. Dealers opinion about the distribution of Kitex lungies and Dhotis Opinion Highly Satisfied Satisfied Moderately Satisfied Number of Respondents 1 80 9
27
Percentage 1.02 81.63 9.19
Dissatisfied Highly Dissatisfied Total
5 3 98 Table 3
5.10 3.06 100
81.6% of dealers are satisfied with distribution of Kitex lungies and Dhotis, 9.19% of them are morderly satisfied, 5.10% of them are dissatisfied and 3.06% of them are highly dissatisfied. Most of the dealers have good opinion about the distribution of Kitex.
Opinion about the distribution of Kitex lungies and Dhothis 90 80 70 60 50 40 30 20 10 0 Highly Satisfied Satisfied Moderately Satisfied Opinion Dissatisfied Highly Dissatisfied
% of dealers
Chart 5 4. The opinion of the dealers why a customer prefers Kitex lungies and dhotis Opinion Price Availability Brand image Display Style Quality Total No of Respondents 0 0 45 0 1 52 98
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Percentage 0 0 45.92 0 1.02 53.06 100
Table 4
45.92% of the dealers responded that brand image of Kitex lungies and dhotis is the main reason for why a customer prefers Kitex lungies and dhotis, 53.06% of them responded that the quality of the Kitex lungies and dhotis was the main factor to the customer in purchasing Kitex lungies and dhotis. Most of the consumers preferred Kitex lungies and dhotis for its very good quality. While pricing 0%, Availability 0%, Display 0%, Style 1.02%, were not the factors that made a customer prefer a Kitex lungies and dhotis.
Dealers opinion about why a customer prefer Kitex lungies and dhotis 60 50 40 30 20 10 0 Price Availability Brand image Display Style Quality
% of dealers
Opinion
Chart 6 5. Dealers opinion about reason why customers not selecting Kitex lungies and dhotis Opinion Lack of Selection Lack of Quality High Price Colour Loosing Not have any Problem Total No of Respondents 45 3 43 1 6 98 Table 5 Percentage 45.92 3.06 43.88 1.02 6.12 100
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45.92% dealers responded that they are not getting good selection or design for Kitex lungies and dhotis. 43.88% of retailers have the opinion that Kitex lungies and dhotis was high priced when compared to competitors. While 3.06% of the dealers responded that Kitex lungies and dhotis have lack of quality. 1.02% of retailers responded that Kitex lungies and dhotis have the problem of colour loosing 6.12% of the dealers have no complaint about Kitex lungies and dhotis. A considerable number of dealers have the opinion that Kitex lungies and dhotis is lacking good selection and good pricing.
Dealers opinion about why customer not selecting Kitex lungies and dhotis 50 40 30 20 10 0 Lack of Selection Lack of Quality High Price Opinion Colour Loosing Not have any Problem % of dealers
Chart 7 6. Opinion of dealers about the price of Kitex lungies and dhotis Opinion Highly satisfied Satisfied Moderately Satisfied Dissatisfied Highly Dissatisfied Total No of Respondents 1 17 42 32 6 98 Table 6 Percentage 1.02 17.35 42.86 32.65 6.12 100
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42.86% of the dealers are moderaly satisfied with the price of Kitex lungies and dhotis, 32.65% of the dealers are dissatisfied, 6.12% of dealers are highly dissatisfied. Only 17.35% of the retailers are satisfied with the pricing of Kitex lungies and dhotis and 1.02% are highly satisfied.
Major portion of the dealers were not having good opinion about the price of Kitex lungies and dhotis.
Opinion of dealers about the price of Kitex lungies and dhotis 50 % of dealers 40 30 20 10 0 Highly satisfied Satisfied Moderately Satisfied Opinion Dissatisfied Highly Dissatisfied
Chart 8 7. Dealers impression about quality of Kitex lungies and dhotis
Opinion Highly Satisfied Satisfied Moderately Satisfied Dissatisfied Highly Dissatisfied Total No of Respondents 5 74 14 5 0 98 Table 7
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Percentage 5.1 75.51 14.29 5.10 0 100
3/4th of the dealers are satisfied with the quality of Kitex lungies and dhotis. 5.1% of dealers are highly satisfied. 14.29% of them are moderately satisfied, 5.1% of them are dissatisfied. It is inferred that a majority of dealers are satisfied with the quality of Kitex lungies and dhotis. .
Dealers impression about quality of Kitex lungies and dhotis 80 70 60 50 40 30 20 10 0 Highly Satisfied Satisfied Moderately Satisfied Opinion Dissatisfied Highly Dissatisfied
Chart 9 8. Dealers opinion about the selection and design of Lungies and dhotis that Kitex provides Options Highly Satisfied Satisfied No of Respondents 3 33 Percentage 3.06 33.68
% of dealers
32
Moderately Satisfied Dissatisfied Highly Dissatisfied Total
27 29 6 98 Table 8
27.55 29.59 6.12 100
33.68% of dealers suggested that they are satisfied, 3.06% were highly satisfied with the selection of Kitex lungies and dhotis. 27.55% of dealers opined that they are moderately satisfied, 29.59% of dealers were dissatisfied. 6.12% of dealers were highly dissatisfied. Dealers had a common opinion that numbers of designs in a box of lungies and dhotis are not sufficient. They said that other brands give more designs and selection than Kitex.
Dealers opinion about the varities of Kitex lungies and dhotis 40 35 30 25 20 15 10 5 0 Highly Satisfied Satisfied Moderately Satisfied Opinion Dissatisfied Highly Dissatisfied
% of dealers
Chart 10
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9. Percentage of consumers asking lungies and dhotis by its brand name
Opinion Yes No Total
No of Respondents 76 22 98 Table 9
Percentage 77.55 22.45 100
77.55% i.e. 76 dealers replayed that consumers asked for lungies and dhotis by their brand name while 22.45% i.e. 22 dealers dealers replaied that consumers were not bothered of the brand name of lungies and dhotis.
Customers asking lungies and dhotis by its brand name
22%
Yes No
78%
Chart 11
10. Brand asked by the customers to dealers
Brands Kitex KKB
No of Respondents 58 7
34
Percentage 76.32 9.21
Angel Jansons Others Total
6 1 4 76 Table 10
7.89 1.32 5.26 100
According to dealers among the 76.32% customers who ask the lungies by their brand name were asking for Kitex lungies and dhotis, while 9.21% for KKB, 7.89% for Angel, 1.32% for Jansons and 5.26% for other lungies and dhotis. Majority of the customers were asking Kitex lungies and dhotis. It shows that Kitex lungies and dhotis have good brand image.
Brand asked by the customers to dealers 100 80 60 40 20 0 Kitex KKB Angel Brands Jansons Others
% of dealers
Chart 12
11. Brand suggested by the dealers to customers Brands Kitex KKB Angel Jansons Others No of Respondents 36 18 14 4 12
35
Percentage 36.73 18.37 14.29 4.08 12.24
Not Responding Total
14 98 Table 11
14.29 100
Most suggested brand by the dealers was Kitex, followed by KKB with 18.37% and Angel with 18.37%. This makes it evident that Kitex is a more preferred brand among the retailers. 14.29% of the retailers are not recommending any brand to customers.
Brand suggested by the dealers to customers 40 35 % of dealers 30 25 20 15 10 5 0
Kitex KKB Angel Jansons Others Not Responding
Brands
Chart 13 12. Most effective Media for advertising according to the dealers
Opinion T.V Radio News Paper Hoardings Wall Printing Total
No of Respondents 61 8 22 3 4 98 Table 12
Percentage 62.25 8.16 22.45 3.06 4.08 100
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62.25% of the dealers responded that the Television is the most effective media, 22.45% of them responded that newspaper are more effective. 8.16% of them said that advertisements through hoardings is also effective, 4.08% of the dealers replied that wallprinting gifts is more effective. Dealers prefer the media Television to others. So frequent advertisement in Television would definitely generate result.
Effective media for advertisement 80 % of dealers 60 40 20 0 T.V Radio News Paper Media Chart 14 Hoardings Wall Printing
MARKET SHARE OF KITEX LUNGIES AND DHOTIS.
More than 1/2 of the sales of lungies in dealer shops is unbranded items. Cheap price and good selection is the reason for their market share. 19.47% of the market is held by KKB followed by Kitex with 16.69%. Angel have 6.67%, Jansons have only 4.65% and Bombay Dyeing have only 1.26%.
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Most of the dealers have the suggestion to reduce price of Kitex lungies and dhotis increase varieties. Some dealers are dissatisfied with the dealings, and they suggested to improving the dealings.
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Market share of lungies and dhotis
60
50
40
% of dealers 30
20
10
0 Kitex Angel Bombay Jansons Dyeing Brands KKB Others
Chart 15
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FINDINGS
1) 2) 3)
All Kitex dealers are trading in low priced unbranded lungies and dhotis which give them more profits. They liked low priced items because they are easy to sell. Majority of dealers are satisfied with the distribution of Kitex lungies and Dhotis. Brand image and quality are the only factors which contributed to the popularity of Kitexs lungies and dhotis. Price, Display and style were not attractive for the customers.
4) 5) 6)
A considerable number of dealers had the opinion that Kitex lungies and dhotis are costlier and lack good selection. Most of the dealers were happy with the quality of Kitex lungies and dhotis. Dealers had a common opinion that numbers of designs in a box of lungies and dhotis are not sufficient. They said that other brands give more designs and selection than Kitex.
7) 8) 9) 10) 11) 12) 13) 14)
Among the customers who ask lungies and dhotis by their brand name, Kitex customers stand first. Most suggested brands in lungies and dhotis by the dealers were Kitex. Dealers responded that TV is the most effective media to promote brands. Because of the cheap price and good selection, ½ of the total sales of lungies and dhotis go to the unbranded items. The main reason for the preference of Kitex dhotis is the brand images Kitex dhotis also face the problem of lack of selection and high price ¾th of the dealers have good opinion for the quality of Kitex lungies and dhotis Cheap prices and attractive Karas make the unbranded lungies and dhotis the best sellers. Kitex lungies and dhotis come only after MCR and premier No. 1
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SUGGESTIONS
1.
Low priced lungies and dhotis should be launched in a separate brand to attract the lower income group which comes a mammoth portion of the customers. Introducing lungies in a separate brand name will not affect the sale of the existing brands
2. 3. 4. 5. 6. 7. 8.
New prints and designs will surely boost up the sale of existing lungies. Colorful and attractive Karas should be given for dhotis. If feasible more profit margins through liberal schemes and incentives could be adopted to make the dealers push the Kitex items more. Number of designs in a box of lungies and dhotis should be increased System of replacement of rejected items should be improved since there is a complaint about this among the dealers. Kitex lungies and dhotis need more advertisements since the strong opponent MCR has aggressive advertisements. Frequent advertisements in TV will definitely improve the sale. Much stronger relations could be built with dealers by taking them into confidence through consistent promotion of the products.
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CONCLUSION
Kitex textiles are popular among customers for its quality and durability. Kitex products have good brand images among the customers and dealers.
The study revealed that most of the dealers are not having good opinion about the pricing of Kitex textiles and selection of Kitex textiles.
Kitex dealers were impressed with the distribution of Kitex Lungies and dhotis. Dealers have good opinion about the quality of Kitex lungies and dhotis.
It is desirable to have a low priced lungies and dhotis to aim the market of lower income people. Selection of Kitex products needs an increase to grab more market. It is also desirable that the company must more importance to maintain good relationships with dealers.
After considering various matters and evaluating the performance of Kitex the future of Kitex is very prosperous. Kitex can go further for marketing the product to more customers and to new segments.
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