CONTENTS

SI:NO TOPIC PAGE ON

INTRODUTION

1 Introduction of study

1.1 Background of the study

1.2 Introduction of company

1.2.1 Industry profile

Company profile

Objectives of the study

Scope of the study

Research methodology

Research design

Population

Period

Sample size

Source data
Statistical tools used for data analysis

Limitations of the study

REVIEW OF LITERATURE

Employee empowerment

Importance of employee empowerment

Method of empowerment

Classification of empowerment

Principal of employee empowerment

DATA ANALYSIS AND

INTERPRETATION

Data analysis

FINDINGS AND SUGGESTION

Findings

Suggestion

Conclusions

APPENDIX

Bibliography

questionnaire
 LIST OF TABLES

CHAPTER 1
1.1 INTRODUCTION

1.2 NEED FOR THE STUDY

1.3 OBJECTIVE OF THE STUDY

1.4 SCOPE OF THE STUDY

 1.5 RESEARCH METHODOLOGY

1.6 LIMITATION OF THE STUDY

1.1 INTRODUCTION

“Marketing is so basic that it can’t be considered a separate function. It is the whole

business seems from the point of view of its final results that is from the customer’s point
of view Business success is not determined by the producer but by the customer.”
According to me marketing means, push the product to the market & pull the customer
towards the business. We can say that the main aim of the marketer is to convert the want
of the customer to the need of the customer. “Thus marketing job is to convert societal
needs into profitable opportunities. Hence, Marketing occupies an important position in
the organization of a business unit. It is one of the important line activities of business
operation. It consists of the ownership of goods. Goods are not complete products until
they are in the hands of the customer. It is the process by which products are made
available to the ultimate consumers from their point of origin. It consists of all those
activities, which are meant to ensure the flow of goods and services from the producer to
the consumer. Therefore, marketing thinking must start with a crystallization of needs of
consumer segment of which the efforts will ultimately be aimed. In terms of needs, the
product or service must be developed or improved so that ultimately the product satisfies
such needs of the consumer segment involved.
 “The process of ascertaining consumer needs, converting them into a product or
service & then moving the product or service to the final consumer or user to satisfy such
needs & wants of Specific customer segment or segments with emphasis on profitability,
ensuring the optimum use of resources available to the organization”.

The marketing mix has been defined as the “set of marketing tools that the firm uses
to pursue its marketing objectives in the target market”. Thus, the marketing mix refers to
four broad levels of marketing decision, namely: product, price, place, and promotion.
The marketing mix refers to the set of actions, or tactics, that a company uses to promote
its brand or product in the market. All the elements of the marketing mix influence each
other. They make up the business plan for a company and handled right, can give it great
success. But handled wrong and the business could take years to recover. The marketing
mix needs a lot of understanding, market research and consultation with several people,
from users to trade to manufacturing and several others.

The project work entitled “A study on the effectiveness of marketing mix with special
reference to Baby care Products at Popees BabyCare Products Pvt Ltd”, Malappuram.
This study is basically to understand the marketing mix of Popees Baby Care new
innovative product among the painters and consumers with respect to Malappuram and
Kozhikode district and to understand the attributes that are used in the Marketing. The
study analyses the availability of the product with respect to the specified districts and it
also considers the satisfaction level with respect to the usage of Popees Baby Care
Products.
1.2 NEED FOR THE STUDY
The purpose of the study is to know the effectiveness of marketing mix tools on
the Popees new innovative Baby Care Products. Since the market potential
determines the scope of the product in the market as well as the profit potential of the
product. This study will also help the Management to improve in coordinating the
marketing activities of the company. Therefore the study is relevant for the
organization to understand the preferences of consumers and can analyze the
customer’s expectations.
1.3 OBJECTIVE OF STUDY
PRIMARY OBJECTIVES

 To study the effectiveness on marketing mix of Popees BabyCare Products Pvt

Ltd

SECONDARY OBJECTIVES

1. To understand the satisfaction level of customers with respect to Baby Care Products

2. To study about the attributes that effect Purchase behavior of the consumer

3. To study the availability of the product with respect to specified districts.

4. To provide Information & suggestions to improve the market potential of Popees

BabyCare Products Pvt Ltd

1.4 SCOPE OF THE STUDY

This study will provide information and opinions of customers about Popees
BabyCare new innovative product. After the completion of this study, the preferences of
the consumers can be identified and the suggestions can be given to authorities of Popees
BabyCare Products Pvt Ltd for the betterment of their business. Today, customers have
wide range of ways to gather information about products and markets. They do brand
comparisons, product features analysis, services benchmarking etc. So every organization
should try to produce on the basis of consumer needs and wants.

1.5 RESEARCH METHODOLOGY

A research is “the manipulation of things, concepts or symbols for the purpose of

generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art”. Research in common parlances refers
to a search for knowledge. The advanced learner’s dictionary of current English lays
down the meaning of research is a “careful investigation of inquiry especially through
search for new facts in any branch of knowledge”. Research is an academic activity and
as such the term should be used in a technical sense. The research includes scientific and
inductive thinking and it promotes the development of logical habits thinking and
organization.

Research methodology is a way to systematically solve that research problem. It

may be understood as a science of studying how research is done scientifically. In it we
study previous that is generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research method/ techniques, but also the methodology. Researcher needs to understand
the assumptions underlying various techniques and procedures will be applicable to
certain problems and others will not. All this means that it is necessary for the researcher
to design his methodology for his problem as the same may differ from problem to
problem. The research methodology has many dimensions and research methods do
constitute a part of the research methodology.

RESEARCH DESIGN

Research design is a detailed outline of how an investigation will take place. It

will typically include how data is to be collected, what instruments will be employed,
how the instruments will be used and the intended means for analyzing collected data.

Bernard Philips defined Research design as “the blue print for data collection,
measurement and analysis of data”. There are different types of Research design. Here in
this study, the descriptive research design is taken.

Descriptive research is a study designed to depict the participants in an accurate way.

More simply put, descriptive research is all about describing people who take part in the
study.

There are three ways a researcher can go about doing a descriptive research project, and
they are:
Observational, defined as a method of viewing and recording the participants.

Case study, defined as a brief interview or discussion with an individual about a specific
topic.

SAMPLING METHOD

 Sampling method was used to collect the pertinent data; the respondents were
selected using convenient random sampling. The study was conducted with the
customers of Popees BabyCare Products Pvt Ltd.

SAMPLE SIZE
Questionnaire was employed to collect the primary data, from the 150
respondents from Malappuram and Kozhikode district.

SAMPLING TECHNIQUE
The respondents were selected by using non probability convenient sampling
from the selected respondents.

SOURCES OF DATA

 Primary data

It is the first hand information, which is being collected by the researcher is called
primary data. It is collected through a well-structured questionnaire. The data for this
project is collected by administering to the respondent directly and collecting the
information immediately. These data are attained by using any of the methods such as

 Interview method

 Survey method

Here the researcher has used the survey method. A survey is a systematic process
of acquiring the data and opinion from the respondents through questionnaires. In this
 study, the researcher has maximum used the type of questions for conducting the
study.

 Secondary data

Secondary data already exists since it has been collected for other purposes. It is
conducted on data published previously and usually by someone else. Secondary
research costs far less than primary research, but seldom comes in a form that exactly
meets the needs of the researcher. Company websites, Books, related information
from net, customer database were referred for this purpose, from the library to
facilitate proper understanding of the study.

TOOLS USED FOR DATA COLLECTION

Questionnaire was the main tool for collecting data. Hence, pain has been taken to
construct the questionnaire in a systematic way by converting adequate in and relevant
questions to ensure in achieving the research objectives.

A questionnaire is a research instrument consisting of a series of questions and

other prompts for the purpose of gathering information from respondents. Although they
are often designed for statistical analysis of the responses, this is not always the case. The
questionnaire was invented by Sir Francis Galton.

DATA ANALYSIS

The data collected from the primary source were arranged sequentially and
tabulated in the systematic order.

TOOLS USED FOR DATA ANALYSIS

Data collected through questionnaire were presented in a master table. From the
master table, sub-tables were prepared. In order to analysis and interpretation of the data
simple statistical tool selected that is percentage analysis.

PERCENTAGE ANALYSIS
 Percentage method refers to a special kind of ration. Percentage is used in making
comparisons between two or more series of data. Percentage is used to describe
relationships. Percentage can also use to compare the relative terms the distribution of
two or more series of data.

The percentage method is the widely used method to analysis the data collected. It
is done by calculating the percentage of the corresponding number in each category in
total of all the members.

PERIOD OF STUDY

45 days (May 27, 2019 to July 17, 2019)

1.6 LIMITATIONS OF THE STUDY

 Research work is carried out in Malappuram and Kozhikode district only; the
finding may not be applicable to other areas.

 The data was collected using sampling technique. Such result may not give an
exact representation of the population.

 Time and money for the study was limited as per the sample size.

 Change in customer attitude, taste and preferences.

 CHAPTER 2

GENERAL INFORMATION

2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

2.3 PRODUCT PROFILE

1.1 Industry Profile

India’s textiles sector is one of the oldest industries in Indian economy

dating back several centuries. Even today, textiles sector is one of the largest
contributors to India’s exports with approximately 13 per cent of total exports.
The textiles industry is also labour intensive and is one of the largest employers.
The textile industry has two broad segments. First, the unorganized sector
consists of handloom, handicrafts and sericulture, which are operated on a small
scale and through traditional tools and methods. The second is the organized
sector consisting of spinning, apparel and garments segment which apply modern
machinery and techniques such as economies of scale. The textile industry
employs about 45 million people directly and 20 million people indirectly. India's
overall textile exports during FY 2015-16 stood at US$ 40 billion.
 The Indian textiles industry is extremely varied, with the hand-spun and
hand-woven textiles sectors at one end of the spectrum, while the capital
intensive sophisticated mills sector at the other end of the spectrum. The
decentralized power looms/ hosiery and knitting sector form the largest
component of the textiles sector. The close linkage of the textile industry to
agriculture (for raw materials such as cotton) and the ancient culture and
traditions of the country in terms of textiles make the Indian textiles sector
unique in comparison to the industries of other countries. The Indian textile
industry has the capacity to produce a wide variety of products suitable to
different market segments, both within India and across the world.
Indian sub-continent is the second largest manufacturer of garments after
China being the global leader in garment production. India is known for its high
quality garments for men and most of the garment manufacturers are in the Small
and Medium scale industry.

Indian men's clothing industry has been growing steadily over the past few
years, this has been possible owing to the Indian male becoming more fashion
conscious, and hence there is more consumption which has increased global
demand of men's garments by the rest of the world.
India Garment Industry has an advantage as it produces and exports stylish
garments for men at economical prices due to cheap labor rates. Today the by the
way of Technological advancement and use of sophisticated machinery it has
enabled the manufacturers to achieve better quality and well-designed garments.
India's Garment Industry has been rapidly growing in last few years. Exports
have been rising as there is an increase in orders from global buyers accompanied
by a rise of investments in the garment sector of the country. The Garment
Industry is of major importance to the Indian economy as it contributes
substantially to India's export earning, it is estimated and analyzed that one out of
every six households in the country depends on this sector either indirectly or
directly for its livelihood. From all over the world the Retailers also increasingly
come to India attracted by low production costs. The large brands among them
are Wal-Mart, Tesco, and M&S.

India's Garment Industry is a well-organized enterprise and is among the

best in the world. It constitutes of designers, manufacturers, exporters, suppliers,
stock keepers, and wholesalers. Indian Garment Industry has carved out a niche
in the global markets and earned a reputation for its durability, quality and
beauty. Today's changing consumer preferences - buying branded apparel and
fashion accessories, major boom in retail industry, people shopping at department
and discount stores, shopping malls, with rising disposable incomes, government
policy focused on fast-track textile export growth, and ambitious goals have
created several investment opportunities in India. Government has even made
effort to include benefits for Garment Industry.

The annual plan for 2016-17 formulated by Indian government to promote

the textile sector, includes schemes for attracting foreign direct investments,
brand promotion through public-private partnership (PPP) for global acceptance
of Indian brands, trade centers for facilitating business and image building,
fashion hubs as a stable marketplace for Indian fashion, common compliance
code for creating apparel standards for the benefit of buyers, and training centers
for developing human resources. Indian garment industry`s has a decentralized
production structure - subcontracting, which is low risk and low capital-has
served the industry well but has excluded Indian products from the mass market
for clothing, which demands consistent quality for large volumes of a single item.

1.1.1 History of textile manufacturing in India

In human history, past and present can never ignore the importance of
textile in a civilization decisively affecting its destinies, effectively changing its
social scenario. India has been well known for its textile goods since very ancient
times. The traditional textile industry of India was virtually decayed during the
colonial regime. However, the modern textile industry took birth in India in the
early nineteenth century when the first textile mill in the country was established
at fort gloster near Calcutta in 1818. The cotton textile industry, however, made
its real beginning in Bombay, in 1850s. The first cotton textile mill of Bombay
was established in 1854 by a Parsi cotton merchant then engaged in overseas and
internal trade. Indeed, the vast majority of the early mills were the handiwork of
Parsi merchants engaged in yarn and cloth trade at home and Chinese and
African markets. The first cotton mill in Ahmedabad, which was eventually to
emerge as a rival center to Bombay, was established in 1861. The spread of the
textile industry to Ahmedabad was largely due to the Gujarati trading class.
The cotton textile industry made rapid progress in the second half of the
nineteenth century and by the end of the century there were 178 cotton textile
mills; but during the year 1900 the cotton textile industry was in bad state due to
the great famine and a number of mills of Bombay and Ahmedabad were to be
closed down for long periods. The two world War and the Swadeshi movement
provided great stimulus to the Indian cotton textile industry. However, during the
period 1922 to 1937 the industry was in doldrums and during this period a
number of the Bombay mills changed hands. The second World War, during
which textile import from Japan completely stopped, however, brought about an
unprecedented growth of this industry. The number of mills increased from 178
with 4.05 lakh looms in 1901 to 249 mills with 13.35 lakh looms in 1921
and further to 396 mills with over 20 lakh 41 looms in 1941. By 1945 there
were 417 mills employing 5.10 lakh workers. 4 The cotton textile industry is
rightly described as a Swadeshi industry because it was developed with
indigenous entrepreneurship and capital and in the pre-independence era the
Swadeshi movement stimulated demand for Indian textile in the country. The
partition of the country at the time of independence affected the cotton textile
industry also. The Indian union got 409 out of the 423 textiles mills of the
undivided India. 14 mills and 22 per cent of the land under cotton cultivation
went to Pakistan. Some mills were closed down for some time. For a number of
years since independence, Indian mills had to import cotton from Pakistan and
other countries. After independence, the cotton textile industry made rapid
strides under the Plans. Between 1951 and 1982 the total number of spindles
doubled from 11 million to 22 million. It increased further to well over 26
million by 1989-90.
1.1.2 Indian garment industry at a glance in 2011 - 2012

The Apparel Export Promotion Council reports that the exports have reached
$12,145 million in the recent months and the growth is good for the industry and is
revealing a profit margin which is more than the profit earned last year. The
growth of export is 1.5% more than the export of the last year.
In terms of money, the growth of export is 9.8% more than the
corresponding month of the last year export Textile and garment exports by India
reached $31 billion to $32 billion in 2011-12, falling short of the target by a tad
despite a sharp depreciation of the rupee. The country shipped out textile
products and garments worth $26.8 billion in the 2010-11 fiscal. Apparel exports
account for nearly half of the total shipments by the textile and garments
industry.
The government expected the exports to rise in 2011-12 as demand
seemed to have returned after the global financial turmoil in 2008, but the debt
crisis in Europe erupted, jeopardizing shipment prospects.
1.1.3 Indian garment industry at a glance in 2012 – 2013

India's garment industry is one of the mainstays of the national economy.

It is also one of the largest contributing sectors of India's exports worldwide. The
garment industry accounts for 14% of industrial production, which is 4% of GDP
and employs 45 million people and accounts for nearly 11% share of the
country's total exports basket. India's exports of Textiles and Clothing together
clubbed as garments is pegged at USD 64.41 billion by the end of March, 2017.
Exports of garment products from India have increased steadily over the last few
years, particularly after 2004 when textiles exports quota was discontinued.
Textiles exports in the financial period of 2012- 2013 witnessed a negative 7.55
percent growth in dollar terms although there was a 6.00 percent growth in rupee
terms. During the year 2012-13, Garments accounted for almost 39% of the total
textiles exports. The total textile exports during 2012-13 was valued at Rs
137619.44 crore as against Rs 129829.30 crore during the corresponding period
of financial year 2011-12, registering an increase of 6.00 percent in rupee terms.
In US dollar terms, the same was valued at US$ 25263.74 million as
against US$ 27328.06 million during the corresponding period of previous
financial year registering a decline of 7.55 percent in US$ terms.
1.1.4 Indian garment industry at a glance in 2013 – 2014

India's garment exports to the European Union increased 5.9 per cent
year-on-year in January-May 2013, while those of China and Bangladesh
declined 9.7 per cent and 1.8 per cent year-on-year, respectively, according to the
data from the Apparel Export Promotion Council (AEPC). In the first half of this
financial year 2013, India exported apparel worth $7.9 billion, a rise of 13 per
cent over the year-ago period, according to data collected by AEPC. For the 2014
financial year, Union textile Ministry has pegged apparel exports at $20 billion.
Last year, apparel and garment exports stood at $14 billion. India is the world's
second largest producer of textiles and garments. Indian textile industry accounts
for about 24% of the world's spindle capacity. It contributed about 14% of the
industrial production, direct employment generation (35 million workforce) and
foreign exchange earnings (~27%) in FY 2013. The Apparel industry contributes
to almost 4% of the India's GDP. The Indian Garment Industry has been growing
as the disposable income of the people are rising. Branded readymade garments
account for over 21% of the readymade garment industry. Man Made fabric
(MMF) is in great demand and has recorded an increase of about 2% in FY13
and production stood at 1, 23,000 crore tones. India's domestic ready-made
garments market is estimated at around 2 lac crore, with the unorganized sector
accounting for more than half of the market.
1.1.5 Indian garment industry at a glance in 2014 – 2015

India is the second largest producer of garments in the world. The Indian
garment industry is expected to grow to a size of US$ 223 billion by 2021,
according to a report by Techno park Advisors. This industry accounts for almost
24% of the world's spindle capacity and 8% of global rotor capacity. Abundant
availability of raw materials and skilled workforce have made the country a
sourcing hub for the world garment industry.
The Indian garment sector contributes about 14 per cent to industrial
production, 4 per cent to the gross domestic product (GDP), and 27 per cent to
the country's foreign exchange inflows. It provides direct employment to over 45
million people. The Indian Garment industry is set for strong growth, supported
by strong domestic consumption as well as export demand. MMF (man-made
Fibre) production increased by about 4 per cent during FY2014. Cloth production
by mill sector registered a growth of 6 per cent during FY2014. The total cloth
production grew by 3 per cent during the same period. Textiles exports registered
a growth of 14.58 per cent. Garment exports from India is expected to touch US$
60 billion over the next three years according to industry experts. The Indian
Garment Industry attracted foreign direct investment (FDI) worth Rs
6,710.94crore (US$ 1.11 billion) in FY2014. Improved demand from the US
market, rising labor cost in China would be a boost to the Indian textile exports.
The total value of textile products exported from India touched US $35.4 bn in
FY14, which was 12% higher compared to FY13. The US has been the primary
market for Indian garment exporters.
1.1.6 Organic cotton and organic wear
The concern for a life devoid of the use of extremely harmful toxic
chemicals, the need for an eco-friendly industrial and agricultural culture and an
increasing awareness of depleting resources and the consequences therein- these
are factors which are shaping the life styles of people worldwide. It is in this
context that the relevance of organic cotton becomes import Organic cotton is
grown and processed without toxic chemicals that can be absorbed easily when in
contact with the user's skin especially in newborn garments. Pesticides, fertilizers
and chemicals used to grow a conventional cotton fabrics may go directly to the
users blood stream, which consequently affect's the body's organs and tissues.
Besides the naturally soft organic cotton fabric is a comfortable to use and is
available at competitive prices.
1.1.7 Globalization of Indian textile industry

The initiation and development of globalization and Indian textile industry

took place simultaneously in the 1990s. The Indian textile industry, until the
economic liberalization of Indian economy was predominantly an unorganized
industry. The economic liberalization of Indian economy in the early 1990s led to
stupendous growth of this Indian industry. The Indian textile industry is one of
the largest textile industries in the world and India earns around 27% of the
foreign exchange from exports of textiles and its related products. Further,
globalization of India textile Industry has seen a paradigm increase in the 'total
industrial production' factor of this Industry, which presently stands at 14%.
Furthermore, the contribution of the Indian textile Industry towards the gross
domestic product (GDP) of India is around 3% and the numbers are steadily
increasing. The process of globalization and Indian textile industry development
was the effect of rapid acceptance of 'open market' policy by the developing
countries, much in the lines of the developed countries of the world.
The initiation and its subsequent development of globalization and Indian
textile industry respectively, was effected by the Ministry of Textiles under the
Government of India. The aggressive policy that was undertaken for the rapid
development of globalization and Indian textile industry were really
praiseworthy. The most significant step amongst them was introduction of "The
National Textile Policy 2000". This policy envisaged to address the following
issues: -
  Increased global competition in the post 2005 trade regime under WTO.
 Huge import volume of cheap textiles from other Asian neighbors.
 High production cost with respect to other Asian competitors.
 Use of outdated manufacturing technology.
 Poor supply chain management and huge transit cost.
 Huge unorganized and decentralized sector.

Further, this policy also aims at increasing the foreign exchange earnings to
the tune of US $ 50 billion by the end of the year 2010. It includes rational
projections for the overall development and promotion of all the sectors involved
directly or indirectly with the Indian textile industry. Furthermore, this policy
also envisages the inclusion of the huge unorganized and decentralized Indian
textile sector under the organized textile industry. This is because the
unorganized textile manufacturing sector in India accounts for 76% of the total
textile production.

1.2.7.1 The globalization of the Indian textile sector was the cumulative effect
of the following factors -

Huge textile production capacity

Efficient multi-fiber raw material manufacturing capacity
Large pool of skilled and cheap work force
Entrepreneurial skills
Huge export potential
Large domestic market
Very low import content
Flexible textile manufacturing systems

1.2.7.2 The Indian textile industry consist of the following sectors -

 Man-made Fiber
Filament Yarn Industry
Cotton Textile Industry
Jute Industry
Silk and Silk Textile Industry
Wool & Woolen Industry
Power loom Sector
1.2.7.3 An approximate number of textile manufacturing companies
operating in India are given below -

Badges, emblems ribbons and allied products - 175

Bed covers, curtains, cushions and other draperies - 2471
Carpets and rugs - 270
Embroidery and embroidered garments, made ups and furnishing - 848
Fabrics and textiles - 3013
Yarns and threads - 1201
Jute products - 337
Kids apparel and garments -1052
Ladies apparel and garments - 2932
Men's' apparel and garments - 2936
Miscellaneous garments, textile and leather accessories - 1658
Yarns and threads - 1201
Wool, woolen garments, blankets and accessories - 468
Textile chemicals, dyeing and finishing chemicals – 239

The overall growth of the Indian textile industry can be attributed to the
globalization. Today, the Indian textile industry employs around 35 million
personnel directly and it accounts for 21% of the total employment generated in
the economy. Globalization of the Indian textile industry has also facilitated
introduction of modern and efficient manufacturing machineries and techniques
in the Indian textile sector. Thus, much of India's economic growth is largely
dependent on textile manufacturing and exports.
1..8 Market Size

The Indian textiles industry, currently estimated at around US$ 120

billion, is expected to reach US$ 230 billion by 2020. The Indian Textile Industry
contributes approximately 2 per cent to India’s Gross Domestic Product (GDP),
10 per cent of manufacturing production and 14 per cent to overall Index of
Industrial Production (IIP).
Indian khadi products sales increased by 33 per cent year-on-year to Rs
2,005 crore (US$ 311.31 million) in 2016-17 and is expected to exceed Rs 5,000
crore (US$ 776.33 million) sales target for 2018-19, as per the Khadi and Village
Industries Commission (KVIC).
The production of cotton in India is estimated to increase by 9.3 per cent
year-on-year to reach 37.7 million bales in FY 2017-18. The total area under
cultivation of cotton in India is expected to increase by 7 per cent to 11.3 million
hectares in 2017-18, on account of expectations of better returns from rising
prices and improved crop yields during the year 2016-17. Indian exports of
locally made retail and lifestyle products grew at a compound annual growth rate
(CAGR) of 10 per cent from 2013 to 2016, mainly led by bedding bath and home
decor products and textiles.
1..9 Market growth in India

Textile plays a major role in the Indian Economy. It contributes 14 per

cent to industrial production and 4 per cent to GDP with over 45 million people,
the industry is one of the largest source of employment generation in the country.
The size of India’s textile market as of July 2017 was around US$ 150
 billion, which is expected to touch US$ 250 billion market by 2019, growing at
a CAGR of 13.58 per cent between 2009-2019.
The central government is planning to finalise and launch the new textile
policy in the next three months1. The policy aims to achieve US$ 300 billion
worth of textile exports by 2024-25 and create an additional 35 million jobs.

Figure 1.1: Market size of Indian textile industry

1..10 Investment

The textiles sector has witnessed a spurt in investment during the last five
years. The industry (including dyed and printed) attracted Foreign Direct
Investment (FDI) worth US$ 1.85 billion during April 2000 to March 2016.
 Some of the major investments in the Indian textiles industry are as follows:

Trident Group, one of the leading manufacturers and exporters of terry towel,
home textile, yarn and paper in India, has entered into a partnership with
French firm Lagardere Active Group, to launch a premium range of home
textiles under the renowned French lifestyle brand Elle Décor in India.
Raymond Group has signed a Memorandum of Understanding (MoU) with
Maharashtra government for setting up a textile manufacturing plant with an
investment of Rs 1,400 crore (US$ 208.76 million) in Maharashtra’s Amravati
district.
Reliance Industries Ltd (RIL) plans to enter into a joint venture (JV) with
China-based Shandong Ruyi Science and Technology Group Co. The JV will
leverage RIL's existing textile business and distribution network in India and
Ruyi's state-of-the-art technology and its global reach.
Giving Indian sarees a ‘green’ touch, Dupont has joined hands with RIL and
Vipul Sarees for use of its renewable fiber product Sorona to make an
‘environment-friendly’ version of this ethnic ladies wear.
Snapdeal has partnered with India Post to jointly work on bringing thousands
of weavers and artisans from Varanasi through its website. “This is an
endeavor by Snapdeal and India Post to empower local artisans, small and
medium entrepreneurs to sustain their livelihood by providing a platform to
popularise their indigenous products,” said Mr Kunal Bahl, CEO and Co-
Founder, Snapdeal.
Welspun India Ltd (WIL), part of the Welspun Group has unveiled its new
spinning facility at Anjar, Gujarat - the largest under one roof in India. The
expansion project reflects the ethos of the Government of Gujarat’s recent
‘Farm-Factory-Fabric-Fashion-Foreign’ Textile Policy, which is aimed at
strengthening the entire textile value-chain.

1..11 Government Initiatives

The Indian government has come up with a number of export

promotion policies for the textiles sector. It has also allowed 100 per cent FDI
in the Indian textiles sector under the automatic route. Initiative will be taken
into consideration by Government of India. The Union Ministry of Textiles,
Government of India, along with Energy Efficiency Services Ltd (EESL), has
launched a technology up gradation scheme called SAATHI (Sustainable and
Accelerated Adoption of Efficient Textile Technologies to Help Small
Industries) for reviving the power loom sector of India.
The Indian government has come up with a number of export
promotion policies for the textiles sector. It has also allowed 100 per cent FDI
in the Indian textiles sector under the automatic route.
Some of initiatives taken by the government to further promote the
industry are as under:
India’s first integrated textiles city, which will largely cater to the
export market and build a brand for Indian textiles abroad, is likely to be set
up in the state of Andhra Pradesh.
The Clothing Manufacturers' Association of India (CMAI) has signed a
memorandum of understanding (MOU) with China Chamber of Commerce for
Import and Export of Textiles (CCCT) to explore potential areas of mutual co-
operation for increasing apparel exports from India.
The Department of Handlooms and Textiles, Government of India, has
tied up with nine e-commerce players and 70 retailers to increase the reach of
handlooms products in the Indian market, which will generate better prices
and continuous business, besides facilitating direct access to markets and
consumers for weavers.
The Union Ministry of Textiles, which has set a target of doubling
textile exports in 10 years, plans to enter into bilateral agreements with Africa
and Australia along with working on a new textile policy to promote value
addition, apart from finalising guidelines for the revised Textile Up gradation
Fund Scheme (TUFS).
The Government of India has started promotion of its ‘India
Handloom’ initiative on social media like Facebook, Twitter and Instagram
with a view to connect with customers, especially youth, in order to promote
high quality handloom products.
The Revised Restructured Technology Up gradation Fund Scheme
(RRTUFS) covers manufacturing of major machinery for technical textiles for
5 per cent interest reimbursement and 10 per cent capital subsidy in addition
to 5 per cent interest reimbursement also provided to the specified technical
textile machinery under RRTUFS.
Under the Scheme for Integrated Textile Parks (SITP), the Government
of India provides assistance for creation of infrastructure in the parks to the
extent of 40 per cent with a limit up to Rs 40 crore (US$ 6 million). Under this
scheme the technical textile units can also avail its benefits.
The major machinery for production of technical textiles receives a
concessional customs duty list of 5 per cent.
Specified technical textile products are covered under Focus Product
Scheme. Under this scheme, exports of these products are entitled for duty
credit scrip equivalent to 2 per cent of freight on board (FOB) value of
exports.
The Government of India has implemented several export promotion
measures such as Focus Market Scheme, Focus Product Scheme and Market
Linked Focus Product Scheme for increasing share of India’s textile exports.
Under the Market Access Initiative (MAI) Scheme, financial assistance
is provided for export promotion activities on focus countries and focus
product countries.
Under the Market Development Assistance (MDA) Scheme, financial
assistance is provided for a range of export promotion activities implemented
by Textiles Export Promotion Councils.
The government has also proposed to extend 24/7 customs clearance
facility at 13 airports and 14 sea ports resulting in faster clearance of import
and export cargo.
The Ministry of Textiles has approved a 'Scheme for promoting usage
of geotechnical textiles in North East Region (NER)' in order to capitalise on
the benefits of geotechnical textiles. The scheme has been approved with a
financial outlay of Rs 427 crore (US$ 63.67 million) for five years from 2014-
15.
1..12 Employment opportunities

Indian Garment Industry is closely connected to the fashion industry

and grows hand in hand. With these even opportunities for the employment is
also increasing to a larger extent. These high levels of fashion consciousness
has created the need for candidates who are highly productive, efficient and
have a passion to create new designs and give way to creativity.
This Industry demands and requires both skill and diligence. India is an
ultimate combination, like it has a matured garment industry for a long time
along with a vast trained manpower. Some of the key areas to work are related
to design and manufacturing, merchandising, import export according to the
government policies, freight and shipments etc. work as designer, or a start up
a business in the local market and expand the business to the others areas of
the national market.
1..13 Top leading Companies

Pantaloon Retail India Ltd

Shopper's Stop
Tata - Trent
Globus stores Pvt Ltd
Pirmayd Retail Ltd
Arvind Brands Ltd
Provogue India Ltd
The Raymond Group
Madura Garment
Reliance Retial Ltd
Wills lifestyle
Murjani Group
Landmark Group
Gokalda Group
Zodiac Clothing
1..14 Road ahead

The future for the Indian textile industry looks promising, buoyed by
both strong domestic consumption as well as export demand. With
consumerism and disposable income on the rise, the retail sector has
experienced a rapid growth in the past decade with the entry of several
international players like Marks & Spencer, Guess and Next into the Indian
market.
High economic growth has resulted in higher disposable income. This
has led to rise in demand for products creating a huge domestic market. The
domestic market for apparel and lifestyle products, currently estimated at US$
85 billion, is expected to reach US$ 160 billion by 2025. The Indian cotton
textile industry is expected to showcase a stable growth in FY2017-18,
supported by stable input prices, healthy capacity utilization and steady
domestic demand.
1..15 Children’s apparel market size

Children's apparel market is growing rapidly today. Trends in the

market are fast changing. This article aims to analyze the market for kids'
apparel in detail and explaining the shift in focus that is taking place.
Children's apparel includes clothing for kids between 1 and 14 years
of age. The market for kids' apparel in India exceeds Rs. 13000 crore, of
which around Rs. 3000 crore is constituted by branded kids' wear. The
kids' wear market is growing at the rate of 10% per annum, which makes it
one of the fastest growing markets.
Some major changes in trends are taking place in the market for kids'
apparel. One of the important changes is the increasing preference for branded
apparel. This shift is taking place on account of changes such as a rise in the
disposable income of the people and the increasing influence of foreign
culture. The other important change that is taking place in this area is the
emergence of kids as an independent buyer group. Influenced by mass media
and peer pressure, today's kids are more informed and self-conscious.
Armed with this knowledge, popular apparel brands are coming up
with new collections that will appeal to kids. Gini and Jony have come up
with a collection of brightly colored apparel. Their collection includes clothes
in hues such as lilac, pink, plum, orange and citrus green.
Certain brands like Weekender have made an agreement with Walt
Disney and Warner Bros., whereby they can make use of some of their famous
cartoon characters in their apparel. The brand is planning to make use of
characters like Mickey and Minnie Mouse as well as Tom and Jerry in the
new line of children's clothing that they are planning to launch. This collection
is to be named 'Toon World'.
Pantaloon and Gini and Jony have entered into a joint venture to
set up a chain of retail stores for children's apparel. Raymond has launched its
first store for kids' apparel 'Zapp!'. DS Corporation, which owns the Ruff Kids
brand of kids' garments, is planning to expand.
Generally in India, the trend was that most of the people prefer buying
functional kids' apparel rather than branded ones. Children's garments were
usually purchased from small stores and from street shops, while branded
garments were only bought by the very high status families. This trend is
gradually changing and the market for branded kids' clothing is growing.
Dungarees, shorts and shirts are the evergreen fashions in kids' apparel.
Short skirts, tops with puffed volume, halter tops, lace trims and cropped
trousers are the in things in the world of children's apparel in today's times. In
terms of prints, butterflies, flowers, polka dots, skulls and pirates and stripes
are popular in kids' apparel.
There are two important factors to be considered for making a kids'
apparel brand a success - variety and price. A children's apparel collection
should have variety that will appeal to kids. Moreover, kids outgrow their
clothes very rapidly. Hence it is necessary that a kids' apparel range be
reasonably priced.
Children's apparel is a growing market in India that has huge untapped
potential. Apparel makers all over India are making forays into this huge
market, in an attempt to make favorable use of the prevailing trends. They are
also coming up with collections that would create new trends.

1..16 Kids wear market in India

Market Size and Growth India remains one of the most promising
markets for apparel due to the ever burgeoning economic activities and ever
widening consumer base. The Indian apparel market is expected to grow at a
CAGR of 9%, from USD 41 billion in 2013 to USD 102 billion in 2023.
 In 2013, kids wear, at USD 8.3 billion, alone contributed 20% of
India’s apparel market, but given its higher growth rate, this share is expected
to increase to 22% by 2023.
Figure 1.2 kids wear market in India

1..17 Boys wear and girls wear

The kids wear market is somewhat skewed towards boys wear which
by itself is a USD 4.3 billion market, as compared to the USD 4.0 billion-
worth girls wear market. But with the increase in spending on the girl child,
the girls wear market is expected to catch up with the boys wear market in the
near future.

It is expected that the girls wear market will grow at a CAGR of 11% over
the next decade, while the boys wear market will grow at 10%.
Figure 1.3: Category wise classification

Uniforms and T-shirts/Shirts are the two major categories within the
boys wear market. Together, they contribute 57% of the total market.
However, Denims and T-shirts are the high growth categories within this
segment and are expected to register CAGRs of 15% and 11%, respectively,
over the next decade.
On the other hand, Uniforms and Ethnic wear are the two largest
categories within the girls wear market. But western wear categories like
Denims and T-shirts are growing faster than traditional categories in the girls
wear market as well.

1.2.17.1 Growth Drivers of Kids wear Market

Some distinct factors like changes in the family system, increased

spending on children, growing brand awareness among kids, and greater focus
on the kids wear market by organized players have contributed significantly to
the growth of the kids wear market. Urban India today is characterized by a
nuclear family with double income parents who are willing to spend extra
higher share of their wallets on their children. Consequently the spending on
children’s apparel, with better brand image and quality has received a boost.
At the same time, Indian kids in both urban and semi-urban India are
increasingly exposed to various media and are thus aware about brands which
cater to them. They have also started participating actively in purchase
decisions relating to their apparel. Organized retailers and brands have also
contributed immensely to the growth of the kids wear market. Some of them
have invested time and money in establishing brands which target the
requirements of children as well as parents. They have managed to attract
consumers through the right product assortment, better visual merchandising,
and focused advertising and promotional strategies.
1.2.18 Strengths and Weaknesses of Indian Textile Sector

1.2.18.1 Strengths
• Nation’s textile industry has potential to double its rise in the next 7
years; China is losing advantage in textile because of rising power costs, labor
costs and focus on domestic market.
• Major exporting countries like Bangladesh are also facing geopolitical
issues.

• Country’s major costs such as cotton, yarn, power, wages, dyes and
chemicals are internationally competitive.
• Make in India campaign covering 25 sectors including the textile and
garment industry has been launched.
• It has put logistics and systems in place to address concerns of potential
investors.
• Through ‘Make in India’ initiative, investment opportunities for foreign
companies and entrepreneurs are present across the complete value chain of
synthetics, value-added and specialty fabrics, fabric processing set-ups for the
following:
- Natural and synthetic textiles,
- Technical textiles,
- Garments, and
- Retail brands.
• Technology Up gradation Fund Scheme launched in 1999 has also given
a major boost to this sector; the scheme is continuing through the 12th plan
with a massive focus on power looms.
• SIDBI is working for SSI in textile and cotton ginning and pressing
sector.
• The TUFS scheme aims at making available funds to the domestic
textile industry for technology up-gradation and setting up of new units .
• Total Budget Outlay for continuation of scheme is around INR 11,900
crore from which 2400 crore has been allocated for 2013-2014.
• Scheme aims to generate 11.5 % annual growth in volume terms in
cloth production and 15% in value exports by increasing domestic value
addition and technological depth and enhancing global competitiveness.
1.2.18.2 Weaknesses
• Preferential tax regime whereby the textile sector has not received its
due under the FTP despite being one of the biggest job providers in the nation
• Huge tariff barriers are faced by the industry on account of preferential
tariff arrangements.
• Duty sops of only 2% were given to mainstream cotton textile products,
whereas higher rates were given for handlooms, carpets, coir products under
the merchandise exports from India scheme (MEIS).
• Man made textile industry that is highly capital intensive and can attract
FDI has been discriminated against through the cotton industry; liberal MEIS
benefit under FTP has not been granted to this sector.
• MMF textiles generate INR 7000 crore as taxes and are suited to the
new FTP scheme; these products have been given lower incentives compared
to cotton textiles.
• Benefits for exporting textiles in major emerging markets for MMF
textiles have been stopped in the new FTP.
• Old machines, more than 10 years old, especially in the weaving sector
is another problem plaguing the industry. While the global textile industry is
advancing technologically, local textile industry still relies on import of
second hand textile machineries.
• Rigid labour laws have stymied the growth of the sector where labour
involvement is maximum.
• Lack of economies of scale and paucity of large manufacturing
capacities is also a weakness of the Indian textile sector.

1.3 Company Profile

POPEES BABY CARE Pvt. Ltd is a leading and fast growing garment
brand in India which has grown in stature as one of the leaders in children’s
garment manufacturing segment. Popees Baby care products certified as a
non-polluting white category company. We are an ISO 9001-2015 and GOTS
(Global Organic Textile Standards) certified manufacturer. Millions of kids
wear and ranges of products that had been sold locally and globally are just
examples of its reach and influence on people. Popees garments are now
available at all the major textile shops across Kerala and South Indian states.
The company is setting to explore the markets all over India and extend its
reach around the globe.
1.3.1 Vision: -
To establish Popees as a world renowned brand in the realm of
kids wear and to play a prominent role in adding to the happiness and well-
being of as many children as possible.
1.3.2 Mission: -
To dedicate our efforts in constructing a healthier and happier
world by means of offering the most comfortable and safe clothes for children,
conceived and manufactured with utmost focus on quality.
Popees’ mission is to provide our customers a “full package” program
of knitted apparel products for kids at the highest level of quality, service,
compliance and value. Popees produce garments for newborn babies as well
as for children below 6 years and bring innovative ideas and products to meet
the health and well-being of infants and children. But its care and protection
reaches much more and beyond. The world new ideas and products that we
brought in have transformed babies’ comfort and the well-being of every
single ones behind them. Children, their parents and over a thousand of our
staff members and several multiple thousands of people who carefully handle
and serve our products, have been enhanced in their lives. Quality and
perfection, skill and diligence interwoven with committed team work are
the hallmark of Popees brand.
Some of the products from Popees which have already gained
momentum includes Junior Popees caters to the requirement of Just born,
Accessories & Innerwear for New Born to 8 years children, Popees plus a
Garment brand for kids of age 2-6 years, Fifth Innerwear is for Kids, Adults,
Men & Women.
Popees maintain state-of-art manufacturing facility in which process
includes from Fabric – stitching – printing – embroidery and packing. More than
95% machineries are imported from various countries like Japan, Germany, Italy
etc. Popees has now started selling products through own e-commerce
portal, www.popees.com.
The total turnover of Popees Group was Rs.58 crores during the last
financial year and is expected to achieve Rs. 85 crores by the end of this fiscal
and the management has plans to make Popees become a listed company in
the near future. Popees Group includes Popees Baby Care Products Private
Limited (Mr. Shaju Thomas & Mrs. Linta P Jose are the promoters of the
company holding 1,41,89,237 equity shares having a face value of Rs.10/-)
incorporated to take over the proprietorship business M/s Popees Baby care
products from Mr. Shaju Thomas w.e.f 1 st September 2017, M/s Aibel
Apparels which is a proprietorship business from Mrs. Linta P. Jose, M/s Shre
International which is partnership of Mr. Shaju Thomas & Mrs. Linta P. Jose.
Popees have manufacturing units in Kerala and Tamil Nadu and have
branches in Karnataka, Andhra Pradesh. Apart from having a state of the art
manufacturing environment, we have our own R & D Wing which consists of
textile professionals, fashion designers, skin specialists, skilled labours and
marketing experts situated at Tirupur in Tamil Nadu. Our R & D wing
frequently analyze key aspects of the business, ranging from the nature of
various fabrics to the latest trends. The administration of the company
ensures well balanced and wholesome working environment for the
employees. We have a variety of more than 250 styles of kids wear. We are
concentrating in the manufacturing of clothes for newborns, as well as for
children below 6 years. We are treating our garments as an additional skin to
babies.
So we are making it with 100% combed cotton with balloon padding
technology and with natural colours. Currently we have started a new segment
of clothes with micro modal and organic combed cotton fabrics.
Presently there are more than one thousand employees in the company.
All statutory liabilities like PF & ESI are complied with. In addition, we
provide free hygienic food & furnished accommodation and fringe benefits
with best salary in today’s market conditions. We have an Indoor badminton
court and a stadium and a gym is under construction.
Best organic food prepared in homely manner is served freely and
timely to all the staff. Health insurance and health checkups, awareness and
anti-smoking campaigns, tree plantation projects and other CSR measures are
a few of the other initiatives.
POPEES PRODUCTS

 School bags
 Baby girl clothes
 Baby boys clothes
 Kids accessories
 Inner wear

1.3.3 Expansion Plans

1.3.3.1 Popees Exclusive Brand Outlets

The company has plans to open 200 exclusive brand outlets (EBO’s) in
India through franchising model which we are planning to deliver a unique
experience of shopping for mothers and babies. It caters the needs of new
parents and new born babies with its wide range of quality products such as
apparel, diapers, cradles, nursing & cosmetic products, toys, books, health
care products, games, baby products, clothing, bags, shoes and mothers’
essentials with utmost care and comfort.
The basic concept underlying EBO’s is that, we will provide apparels
and accessories to mothers starting from the 2nd trimester of pregnancy till the
period of breast feeding, same way we will be providing dress and accessories
to the new born baby till he/she reaches the age of ten. It is planned to achieve
a sales turnover of 100 crores from EBO’s by 2019 by exploring the immense
potential in the mother and baby care segment.
1.3.3.2 Manufacturing Facility for Woven & Denims

Presently they are manufacturing knitted apparels in the kids wear

segment for garments up to 2 years. Since Popees brand has fairly reached in
the minds of general public it is planned to set up manufacturing facility to
produce woven garments like shirts, shorts, trousers, denims, frocks etc for
kids up to 10 years. Once the EBO’s are flourished, any products
manufactured in the brand of Popees brand can have a wide market access.
The setup cost of this manufacturing facility will be around 10 crores
(approx), excluding cost of land, as the promoters are holding the required
land near to the existing factory premises.
1.3.3.3 Introducing School bags

A new academic year brings in a host of responsibility for parents and

one amongst them is searching for a shop to buy good, durable and affordable
school bags. With the number of books increasing year after year and the bags
unable to hold the weight parents are on the lookout for sturdy affordable bags.
We have introduced 25000 school bags in the year 2013 and 50000 bags in
2014 in order to test the market and we got immense response from the market
and the entire bags are sold out. We are receiving enquiries for school bags
from the house of Popees. For the academic year 2018 we are planning to
introduce school bags that can have to match the best standards in the industry
in terms of quality and durability. Our focus is to introduce bags in a
premium segment, MRP ranges from Rs.799/- to Rs.1299/-.
1.3.3.4 Exploring Domestic & Foreign Market

Popees’ garments are now available at all the major textile shops across
Kerala and South Indian states. The company is setting to explore the markets
in all over India and extends its products reach around the globe. Dubai,
Sharjah, Qatar, Kuwait & Saudi Arabia are the current markets in which
Popees already have presence and is expanding further to New Zealand,
Canada, France, USA, Australia, Malaysia etc. Albeit Popees succeeded to
cater the demands of LC WAIKIKI, Turkey irrespective of the fact that the
clothing and textiles is among the largest and best-performing sectors of the
Turkish economy and there are some 56,000 textile and clothing companies
operating in Turkey.
1.3.3.5 SME Listing

They are planning to get listed on BSE SME Exchange by the end of
2019- 20 fiscal. Before listing, they planning to raise capital through private
placement to cater its financial requirements to diversify the products and to
materialize the above-mentioned capex plans.
1.3.3.6 Capital Infusion

It is proposed to raise the fund required for expansion by issue 7%

compulsorily convertible preference shares with face value of Rs.10/- per
share which shall be converted into equity shares at proportion of one equity
share for every Sixteen 7% Preference shares after a period of five years.
1.3.4 Group of companies

 Anna Apparels
 Aibel Apparels
 Thomson Group Of Companies
 SHRE International
  Esther Apparels
 Ourkids Media Pvt Ltd.
 PVS Honda

1.3.4.1 Values

Vision Mission

Values

Transparency, Collaboration, Innovation & Integrity, Creative and Proactive

1.3.5 SWOT analysis of popees

Figure 1.4: SWOT analysis

 CHAPTER 2

LITERATURE REVIEW
2.1 LITERATURE REVIEW

A literature review is a comprehensive summary of previous research on a

topic. The literature review surveys scholarly articles, books, and other sources
relevant to a particular area of research. The review should enumerate, describe,
summarize, objectively evaluate and clarify this previous research. It should give a
theoretical base for the research and help you (the author) determine the nature of your
research. The literature review acknowledges the work of previous researchers, and in
so doing, assures the reader that your work has been well conceived. It is assumed that
by mentioning a previous work in the field of study, that the author has read,
evaluated, and assimilated that work into the work at hand.
A literature review creates a "landscape" for the reader, giving her or him a
full understanding of the developments in the field. This landscape informs the reader
that the author has indeed assimilated all (or the vast majority of) previous, significant
works in the field into her or his research.
"In writing the literature review, the purpose is to convey to the reader what
knowledge and ideas have been established on a topic, and what their strengths and
weaknesses are. The literature review must be defined by a guiding concept (e.g. your
research objective, the problem or issue you are discussing, or your argumentative
thesis). It is not just a descriptive list of the material available, or a set of summaries.
Marketing

“Marketing is managing profitable customer relationships, the twofold goal of

marketing is to attract new customers by promising superior value and to keep and
grow current customers by delivering satisfaction” (ARMSTRONG & KOTLER,
2007 P. 5).

People often think marketing as selling and advertising, which is just a small
part of marketing. ‘The marketer does a good job when he understands superior
customer value, prices, distributes and promotes them effectively; the products will
sell very easily then. This tells that selling and advertising are just a part of marketing
as a marketing mix; a set of marketing tools that work together to satisfy customer
needs and build customer relationships.’ (ARMSTRONG & KOTLER, 2007 P. 5).

Marketing mix

To MOHAMMED RAFIQ AND PERVAIZ K. AHMED (1995), the term

7
marketing mix was first used by Borden and that it was suggested to him by
CULLITON’S (1948) description of a business executive as ‘mixer ingredients.
Borden did not define the marketing mix; it simply consisted of important elements of
ingredients that make up a marketing programmed (BORDEN, 1965, P. 389).
MCCARTHY (1964, P. 35) refined this further and defined the marketing mix as a
combination of all of the factors at a marketing managers command to satisfy the
target market. Later MCCARTHY AND PERREAULT (1987) together defined the
marketing mix as the controllable variables that an organization can co-ordinate to
satisfy its target market, which is widely accepted as “the set of controllable
marketing variables that the firm blends to produce the response it wants in the target
market” (KOTLER AND ARMSTRONG, 1989, P. 45). According to JONATHAN
IVY (2008),
 Marketing mix is a set of controllable marketing tools that an institution uses
to produce the response it wants from its various target markets. RONALD E.
GOLDSMITH (1999) stated that 4Ps was first formulated by MCCARTHY (1975)
as a pedagogical tool to describe the chief tasks of marketing managers. Marketing
managers must develop a systematic plan to sell to the customers after selecting a
target market to create long-term relationships (DOYLE, 1995). The marketing mix
plan consists of 4Ps which consists of decisions about product, place, promotion and
price (GOLDSMITH, 1999).

According to BENNET (1997), “the concept of marketing outlines a course

for the organization using controllable variables in an environment where many
factors are uncontrollable, defined as the external market”. KOTLER (1967) (cited by
BENNET, 1997) broadened this classification into four namely, customer,
environmental, competitive and marketing decision variables. Focusing on
manufacturing industries, BORDEN (1964) identifies the four external forces on the
organization as consumer buying behavior, trade behavior, competitor’s position and
behavior and government regulations. ROBINS (1991) formulated “four Cs” which is
an alternate mnemonic to the marketing mix formulated by MCCARTHY (1964).
Four Cs are defined as Customers who buys goods and services in the market place,
Competitors who provide the choice of alternative sources of supply, Capabilities and
Company both of them refers to the organization which has ability to satisfy customer
needs. GRONROOS (1984) proposes a concept of interactive marketing which was
backed by KOTLER (1991). This concept emphasizes the relationship between the
employee and the customer and identifies it as the key factor in successful market
making. KOTLER (1991) argues that the employee- 8
Customer relationship is an important factor in the success of the market-
making process. BOOMS AND BITNER (1981) added three additional factors to the
marketing mix elements proposed by MCCARTHY (1964) namely people, processes
and physical evidence. This concept highlights that the model proposed by
MCCARTHY (1964) might lead to too narrow focus on the internal variables, and
does not include some of the process variables which is a part of marketing planning
system (BENNET, 1997, P. 151).LINGS (1999) argues for services industry 4Ps are
in adequate and 7Ps marketing mix illustrates the importance of internal factors, as
retail sector is not a service-based industry traditional 4Ps marketing mix is used to
represent the external factors (cited by KHANH & KANDAMPULLY, 2004). 4Ps
makes the marketing easier handle for the managers in non-service-based industry; the
components of traditional marketing mix can change a firm’s competitive position
(GRONROOS, 1994). Even with the deficiencies, the 4Ps remain a staple of the
marketing mix (KENT AND BROWN, 2006).

According to the American Marketing Association (1985), “marketing is the

process of planning and executing the conception, pricing, promotion and distribution
of ideas, goods and services to create exchange and satisfy individual and
organisational objectives”. KENT (1986) states that the four Ps of the marketing mix
as the “holy quadruple of the marketing faith written in tablets of stone”.

According to ARMSTRONG AND KOTLER (2007) marketing mix tools

are classified into four broad groups, called the four Ps of marketing: product, price,
place and promotion. In order to deliver on its value proposition, the firm must first
create a need-satisfying market offering (product). It must decide how much it will
charge for the offer (price) and how it will make the offer available to the target
customers (place). It must communicate with target customers about the offers and
persuade them of its merits (promotion) (ARMSTRONG AND KOTLER, 2007
P.53)

BAKER & HART (2008, P 463) the logic of 4Ps is straight forward; a
supplier needs products, needs to price them, to promote them and distribute them to
the place where the customer can buy them.

According to DOGRA & GHUMAN (2008) some of the variables associated with
4Ps are: Price: price level, credit terms, price changes and discounts.
Product: features, packaging, quality and range.

9
 Promotion: advertising, publicity, sales promotion and personal selling. Place:
inventory, distribution channels and number of intermediaries.
(1) Price

(a) BELOHLAVEK (2008) states that price is a conditioning element for buying a
product; price only conditions a product but does not determine it, in accordance to
the buyer’s income makes a monetary value of a given service or goods, which makes
them reachable to the goods. Price is a factor which acts as a barrier which when
reached in operational terms, that’s when the last stage of purchasing action is
reached. Price is an element which determines a priority relationship with the value
and opportunity creating access to the customer.

(b) KASPER ET AL. (2000, P. 627), “pricing is an important management tool to

achieve the objectives of the organization”. Similarly, PELLINEN (2003, P.218) has
suggested that “pricing is one of the most central management tasks for a service
company”. It is also the only element of the marketing mix that generates revenues for
a firm, while all the others (e.g. new product introductions, promotions) are associated
with costs (ZEITHAML ET AL., 2006) (CITED BY INDOUNAS&AVLONITIS,
2009).

(c) REA & KERZNER (1997) argues that the easiest way to reach and compete with the
competitor is to match the price with the competitor. Price is one of the most
important criteria that customers use when choosing between competing brands
(HUBER ET AL., 2001; TA AND HAR, 2000) (cited by
INDOUNAS&AVLONITIS, 2009).

(d) Price is the sum of money customers has to pay to acquire the product; often
customers buy the product negotiating the price for more accessibility, companies
offer discounts to customers adjusting price to sustain the competitive situation
(ARMSTRONG & KOTLER, 2007 P. 52).

(2) Place

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(a) According to KAI LI & HUNG (2007), place is a marketing mix which describes
whether the location is accessible and transport is convenient, place comes out as a
heterogeneous phenomenon which is created by the company at each place combining
resources; accessibility increases value to the customer. KOTLER, ET AL.,
(2005) claims that place involves all activities of the company to make all products
available to the customers
(b) According to MASON &STAUDE (2009), Place is the least changing marketing
tactic. Distribution and availability are used in stabilizing dimensions, communicating
and creating a control as a link between supplier and customer, and reducing the
probability to change suppliers, which actually stabilizes the market. Backward and
forward integration also reduce the uncertainty of retailer stocking the products,
lowering the risks and stabilizing the environment (NILSON, 1995).

(c) According to BOYLE & PROCTOR (2009), in the context of product sales,”
placement is actually distribution” (BIECH, 2003). In social marketing, distribution
can be defined as” dissemination channels” (NWPHO, 2006). Clearly for dispersing
channels to be effective they must be accessible to the target market (BOYLE &
PROCTOR, 2009).

(3) Product

(a) PHILIP KOTLER: “A product is anything that can be offered to a market for
attention, acquisition, use or consumption. It includes physical objects, services,
personalities, place, organizations and ideas”.

(b) ALDERSON: “A product is a bundle of utilities consisting of various features and

accompanying services”.

(c) SCHWARTZ: “A product is something a firm market that will satisfy a personal
want or fill a business or commercial need and includes all the peripheral factors that
may contribute to consumer’s satisfaction”.

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(d) WILLIAM J. STANTON: “A product is a set of tangible and intangible attributes,
including packaging, colour, price, manufacturers and retailer’s prestige and services,
which the buyer may accept as offering satisfaction of wants and needs”.

(4) Promotion

(a) “The most common promotion is a sale” (LEVY & WEITZ, 2007 P 433). Promotion
is one of the key P’s in the marketing mix (DIBB ET AL., 1994).

(b) The promotion strategy is used in increasing sales by creating differences in resources
which results in a firm being able to outspend a competitor in advertisement, purchase
displays, trade shows and other promotional methods (REA & KERZNER, 1997 P.
58).

(c) According to JENNIFER ROWLEY (1998), an appropriate promotional mix must

be created in order to meet the promotional objectives of any given promotion
strategy. The promotional mix is the combination of different promotional channels
that is used to communicate a promotional message. This will involve an appropriate
selection from the range of tools that are available for use as part of the promotional
mix.

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