GTU’s Enrollment No: 97690592104

A PROJECT REPORT ON

“A STUDY ON CUSTOMER SATISFACTION OF DIGJAM FABRIC”

At

It’s who you are

DDIIGGJJAAMM LLIIMMIITTEEDD,, JJAAMMNNAAGGAARR

Submitted By:

PIYUSH K. PARMAR (Roll no: A-38) MBA PROGRAMME 2009-2011 (SEMESTER II)

In partial fulfillment of the requirements for Summer Internship Programmed for

the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT

AND COMPUTER APPLICATIONS (NICM-MBA)

Submitted to

GUJARAT TECHNOLOGICAL UNIVERSITY,

AHMEDABAD.

i

Declaration

This project report entitled “(A Study on Customer Satisfaction at Digjam Ltd.)” has been submitted to Gujarat Technological University, Ahmedabad in partial fulfillment for the award of degree of Master of Business Administration. I, the undersigned hereby declare that this report has been completed by me under the guidance of Mr. S.A.LOHANI, (Q.C. Manager) and Prof. NISARG JOSHI (Faculty Member, Shri Jairambhai Patel Institute of Business Management & Computer Applications, Gandhinagar).

The report is entirely the result of my own efforts and has not been submitted either in

part or whole to any other institute or university for any degree.

Name of the Student with Signature: PARMAR PIYUSH KISHORBHAI GTU’s Enrollment No. : 097690592104

Date:

Place: GANDHINAGAR

iii

CCEERRTTIIFFIICCAATTEE This is to certify that Piyush K. Parmar, student of MBA

(2009-2011 batch) at Post Graduate Centre of Gujarat Technological

University – MBA, SJPI has prepared a Summer Internship Project Report

on “A STUDY ON CUSTOMER SATISFACTION OF DIGJAM FABRIC” in partial

fulfillment of two years full-time MBA Programme of Gujarat

Technological University, Ahmedabad. This project work has been

undertaken under my supervision and found satisfactory.

Date: ----------------- Prof. Nisarg Joshi Place: Gandhinagar (Core Faculty – MBA Dept. & Project Guide)

Shri Jairambhai Patel Institute of Business Management and Computer Applications (Formerly known as National Institute of Cooperative Management), Approved by AICTE, New Delhi and Affiliated with Gujarat Technological University Opposite Amusement Park, Indroda Circle, Gandhinagar - 382 007 Phone: 079 – 23213043, 37 - 38 - 39 Fax : 079 – 23213036 Web: www.nicm.org.in E mail: director_mbanicm@yahoo.com

iv

PREFACE I am the student of M.B.A. It means, I am a management student you know

manufacturing is more over art; art involves practical so there is no meaning of

theoretical study only, so there is also a part of practical study.

How much I have benefited in my life through this effort that is the main object or

aim. So I have got maximum knowledge about the management through this effort,

so I am heartily thankful to G.T.U. for including this subject.

The object of industrial training at M.B.A. level is to give a perspective about the

organization and functioning of the marketing department in industrial units,

M.B.A. faculty designed in such a way that it depicted all the major functioning of

report to clarify various business and construction.

I visited “DIGJAM Ltd.” at Jamnagar. For my practical training, I have prepared

this report of on management of the company, on visit and its work at managerial

level as become very clear. I have managerial concept with the help of collective

information sustaining the theoretical principles. I have got through all the major

practical aspect of the organization and the same has been depicted in this report.

In this report I have tried my best to cover all the information available from

concern unit. This training enhanced my particularity on management of industry

of the firm in area of marketing.

v

ACKNOWLEDGEMENT

The successful completion of any project depends upon the co-operation of many

individuals. Through this brief note I would like to acknowledge the help of

individuals who have directly or indirectly contributed towards the completion of

our project.

First of all I would like to express my deepest sense of gratitude to the leading

team of DIGJAM LTD., Jamnagar for providing me an opportunity to carry on my

project report in prestigious organization.

Hence, I take this opportunity to put on record my sincere appreciation and

gratitude to Shri Lohani sir, DIGJAM LIMITED, Jamnagar for granting me

permission to carry on my project.

I also express my indebtedness to Mr. Satish, General Manager & Mr.

Narendrabhai trivedi, Personnel Manager of DIGJAM LIMITED, Jamnagar for

their kind co-operation, valuable suggestion, guidance and constructive criticism.

I would like to thank our director Prof. “Dr.” S.O.Junare and my faculty guide

Prof. Nisarg Joshi for their valuable inputs for my project.

I also heartily wish my deepest sense of reverence to Shri Sharad Goel for his kind

co-operation in each and every way.

Last but not the least I would like to thanks my affectionate parents without whose

blessing the study could not have been possible.

- (PIYUSH PARMAR)

vi

Figure 1

EXECUTIVE SUMMARY

The textile sector is one of the fastest growing sectors in the economy. There are

many players in this sector but DIGJAM is a step ahead of them all. DIGJAM is

committed to satisfy customers by providing quality products and services, which

give highest value for money. They believe that their employees are their most

important assets through which they can reach the top in each field they venture

into.

‘IT’S WHO YOU ARE’ – they commit themselves to continuous growth so as to

fulfill the aspirations of the customers, employees and shareholders.

The whole project is based on understanding the two P’s of marketing i.e., Product

and Promotion.

I am really very thankful to the management at DIGJAM for giving me to an

opportunity to undertake a project work in their organization. I hope that the work

done by me is satisfactory.

TABLE OF CONTENTS

TITLE PAGE NO.

DECLARATION I CERTIFICATE FROM THE ORGANIZATION II CERTIFICATE FROM THE COLLEGE III PREFACE IV ACKNOLEDGEMENT V EXCUTIVE SUMMARY VI CHAPTER-1-PRODUCTION DEPARTMENT 1 1.1 INTRODUCTION 2 1.2 RAW MATERIAL 4 1.3 PRODUCTION PLANNING & CONTROL 5 1.4 PRODUCTION PROCESS 6 1.5 QUALITY CONTROL 13 CHAPTER-2-H.R.DEPARTMENT 14 2.1 INTRODUCTION 15 2.2 RECRUITMENT & SELECTION 16 2.3 INDUCTION 19 2.4 TRAINING & DEVELOPMENT 20 2.5 TRANSFER 21 2.6 WAGES AND SALARY 22 2.7 TRADE UNION 23 2.8 PERFORMANCE APPRAISAL 24 CHAPTER-3-MARKETING DEPARTMENT 25 3.1 INTRODUCTION 26 3.2 MARKETING CHANNEL/DISTRIBUTION CHANNEL 27 3.3 MOTIVATING CHANNEL PARTNER 29 3.4 ADVERTISEMENT 30 3.5 TYPES OF PACKAGING 33 3.6 RANKING OF MEDIA THE UNIT IS IN TOUCH WITH 37 CHAPTER-4-FINANCE DEPARTMENT 38 4.1 INTRODUCTION 39 4.2 SOURCES OF FUND 40 CHAPTER-5-FUTURE PLAN 41 CHAPTER-6-SWOT ANALYSIS 43 CHAPTER-7-RESEARCH METHODOLOGY 45 7.1 LITERATURE REVIEW 46 7.2 INTRODUCTION 51 7.3 OBJECTIVE 52 7.4 LIMITATION 53

7.5 DATA COLLECTION 54 7.6 DATA ANALYSIS 54 7.7 RESEARCH METHOD 55 7.8 DATA ANALYSIS & INTERPRETATION 56 7.9 FINDING 85 7.10 SUGGESTION 86 CHAPTER-8- BIBLIOGRAPHY 87 CHAPTER-9-ANNEXURE 88

LIST OF FIGURES

FIGURE NO. TITLE PAGE NO.

1 LAUNCHING OF DIGJAM’S WINTER COLLECTION 3

2 WOOL 4

LIST OF CHARTS

CHART NO. TITLE PAGE NO.

1 PRODUCTION PROCESS 6 2 GREY COMBING 7 3 SPINNING 9 4 WEAVING 10 5 FINISHING 11 6 CONSUMER MARKETING CHANNELS 29 7 MULTI CHANNEL DISTRIBUTION OF DIGJAM 30 8 FORMS OF ADVERTISEMENT 38 9 DATA ANALYSIS CHART 57-84

LIST OF TABLES

TABLE NO. TITLE PAGE NO.

1 INFLUENCE OF MEDIA ON UNIT 39

2 DATA ANALYSIS TABLE 57- 84

Page | 1

CHAPTER-1

PRODUCTION

DEPARTMENT

Page | 2

1.1 INTRODUCTION

Product is a key element in the market offering. Marketing mix planning begins with formulating

an offering that brings value to target customers. This offering becomes the basis upon which the

company builds profitable relationships with customers.

“Product is anything that can be offered to a market for attention, acquisition; that might satisfy a

want or need it includes physical products, services persons, place organization and idea.”

Product Mix: Product mix or product assortment consists of all the product lines and items that

a particular seller offers for sale.

Product Line: A group of products that are closely related because they function in a similar

manner, are sold to the same customer groups, are marketed through the same types of outlets, or

fall within given price ranges.

PRODUCTS OF DIGJAM

DIGJAM woolen mills produce the fabric which is used for the purpose of making:

• Blazers

• Trousers

• Sherwani

• Safari

Page | 3

DIGJAM’S WINTER COLLECTION

Figure 1

DIGJAM launched its new collection of fine jacketing fabric, The Free Spirit for winter 05.

Specially carved to praise the Indian style of dressing the jacketing collection which has a wide

range of fabric to choose from. This collection boasts of fine finish and excellent quality, and

adds to the much wanted class and lavish appeal to one’s personality. The collection comes in

superfine merino wool and poly wool in aesthetically designed Checks, Herring ones, Hound’s

Tooth and other fancy weaves.

The jacketing collection has been specifically designed for the Indian winter and is a must have

in your wardrobe. The recently launched techno finish in summer 05 has been very well

appreciated in the market. The company continues to be ingenious in its feet while delivering to

the ever-growing and ever-changing demands of the clothing and fashion industry, both in the

domestic as well as the international markets. The prices range from Rs. 600 to Rs. 2500 per

meter.

Page | 4

1.2 RAW MATERIALS

Woolen fabrics:- These are made out of wool. Wool is a natural product, basically hair of sheep. The sheep which

they use is MARINO SHEEP from Australia, New Zealand and some parts of South Africa.

Not only the sheep hair but also some amount of rabbit hair, camel hair, hangora wool and mink

(a bird of South Pole) hair is used as a raw material along with sheep hair. Mink hair is very

costly it costs 2 to 3 lacks per meter, therefore all these types of raw material is used in very

small quantity.

Polyester is also used as a raw material. Polyester is a product of crude oil (artificial fiber).

Types of wools:-

• 22.5 micron

• 18.5 micron

• 19.5 micron

• 17.5 micron

Figure 2 Figure 2 Figures 2

Page | 5

1.3 PRODUCT PLANNING

Product planning means planning for the product that is to decide what type of product is too

produced or what need or requirement the product is to satisfy and for whom the product is

meant. If existing product satisfies the need of consumers is also a part of product planning?

Product Line:- A product line is a group of products that are closely related because they perform a similar

function are sold to the same customer groups, are marketed through the same channels or make

up particular price range.

DIGJAM LIMITED has three product lines which are used to prepare different types of

products:-

Woolen fabrics

• Suit length

• Coat length

Worsted fabrics • Sherwani

• Safari

PV fabric (polyester viscose)

• Blazers

• Trousers

Page | 6

1.4 PRODUCTION PROCESS

The various operations that are carried out at Jamnagar plant are as follows:

Chart no.: 1

Page | 7

Production process

GREY COMBING

Chart 2 – Process of Grey Combing

1) Sorting, blending and scouring: - The Greasy wool bales are trapped and sorted

to give a proper mix and to remove the solid impurities. It is then scoured to remove the

greasy and vegetable impurities.

2) Carding: - The scoured wool is carded and is made in silver form. The impurities like

vegetable burrs, dust and very short fibers are removed.

3) Gilling: - In this process the carded wool in the form of silver is treated with faller pins

and it is made parallel and weight per meter is regulated.

4) Combing: - Gilled silver with definite weight per meter is combed and short fibers,

neps and vegetable matters are removed to get a clean combed silver output.

5) Post Gilling: - Combed silvers are fed to the Gilling Machines and in the last silver

output are transferred into shape of ball which is suitable for dyeing and transporting. In

the above process the CV% length is achieved in the form of final top.

Page | 8

TOW TO TOP CONVERTER In this process, polyester tow is cut into required fiber length and converted into top after three

gilling operations.

DYEING AND BACK WASHING This is another high-tech area in Digjam, where fully automatic microprocessor-controlled HP

HT Dyeing machines are in operation. Also in use are radio frequency dryer, Vigorous printing

and Jet dyeing machines. The dyeing plant has a computerized IBM-based system for color

matching.

RECOMBING In this gilling either pure wool blended tops are gilled and in third phase a predetermined weight

per meter is taken as output. The output in silver form is put in cans and fed to comber in this

operation blending, fiber blending, removal of short fibers; neps, etc. are carried out. Now this

recombed cans are fed into two gilling operations and in the last gill box output is in form of

balls. Top is ready for spinning.

Page | 9

Flow chart of spinning department.

Chart no. : 3 spinning process

Assembly winding (assemble two single yarn on 1 package)

Twisting on TFO(two for one)

Double yarn steaming

Double yarn winding

Visual checking of yarn

Single yarn winding(to remove the fault from the yarn)

Single yarn steaming ( to remove the snarling)

Spinning on Ring frame

Roving

Gilling

Yarn delivers to the godown

Page | 10

WEAVING

A well-laid out weaving shed houses 116 Sulzer-Ruti microprocessor controlled projectile

weaving machines. The sulzers are the world’s highest rated weaving equipment, capable of

producing the highest quality of fabrics.

Chart 4: Process of Weaving

Page | 11

FINISHING

The finest Italian, Swiss and Japanese machines finish the fabric to perfection. These machines

use a process sequence that is automatically controlled by a punch card system. In this way,

perfect uniformity is ensured, thus avoiding lot variations.

Chart no. 5: Process of Finishing

Damping

Rotary press / Paper press

Continuous Press

KD Machine

Grading / Folding

Cropping

Scouring

Singing

Heat Setting

Dry / Wet Setting

Page | 12

FOLDING DIVISION After the shrinkage department or keir decatisation, final product is transferred to final inspection

/ perching department, table checking, selvedge stamping and measuring & cutting

Then, this cutter pieces go for the folding, weighing and recording as per concern person or

client by whom company got the order. Final fabric is folded by the folding machine. As per

requirement

Like 75cm length, generate barcode, quality no. , shade no. , cut no. and length & weight of

fabric.

Designing department Sources of design:

• International magazines which contains fabric cutting

• Designer’s intuition and past experience.

• Market survey

• Customer requirement(they also design for institutions)

Activities of design department

1) Yarn development

2) Fabric development

3) Export development

As per the domestic and export order, there are arranging a conference two times in a year for the

selection of yarn, fabric, export development.

Page | 13

1.5 Quality control

The main functions of the quality control department are:

1) Find out micron value of wool.

2) To find out blend composition

3) To find out count value of yarn

4) To find out the fabric properties like steam shrinkage , relaxation

Shrinkage, stretch & growth percentage, fastness etc.

In quality control some of the checking is done. The types of checking are as follow:

1) Tow(denier, c.v.%, oil%, shade)

2) Final top(c.v.%, short fiber%, oil%, Neps)

3) Yarn checking(count, Neps, twist, shade)

4) Dyeing(washing fastness, light& rubbing fastness)

5) Fabric checking(weight, width, pilling test, color fastness)

Page | 14

CHAPTER 2

HUMAN RESOURCE DEPARTMENT

Page | 15

2.1 INTRODUCTION:

Personnel management is a link between the top management and the workers or we can say that it acts like bridge between the employers and the employees. It is basically concerned with the human relationship within the organization and helps in maintaining smooth relationship between employees and employers. It is the art of getting things done through other people.

Manpower is the most important resource among all the resources. Factors such as funds, machineries, technological advancement, etc. that are required in order to run an organization; nothing will work if an organization doesn’t have sufficient manpower and suitable managerial personnel system and practices.

In Human Resource Management there is an emphasis on the developmental aspects of human being. He is treated as resources contributed towards the overall objectives of the organization. It is strongly believed in this approach and philosophy that the collaborative and participative efforts of human resources are to be nurtured, developed ton the fullest extent and human resource development is the foundation of this philosophy.

In DIGJAM Limited, there is no difference between Human Resource Department and Personnel Department. And the all the activities of HRM is done by Personnel Management. And the personnel department is very important in each and every organization and we can say that the personnel department is known as Police Department of any organization. So the all activities which are done by the Digjam Limited are stated below.

Page | 16

2.2 RECRUITMENT & SELECTION:

Recruitment has been regarded as the most important function of the personnel department because unless the right type of people are hired, even the best plans, organizations and control system would not do much good.

As Yoder point out, “Recruitment is a process to discover the source of manpower to meet the recruitment of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection and efficient working force.”

Recruiting Procedure of Digjam Limited:

• Recruitment of workers

• Recruitment of executives and managerial staff

• Recruitment of technical personnel

SOURCES OF RECRUITMENT:

Sources are those where prospective employees are available like employment exchange while techniques are those which stimulate the prospective employees to apply for jobs like applications by employee, promotion and advertisement etc. now we discuss the sources of recruitment.

Sources for the recruitment for DIGJAM are as follows:

• Internal Sources

• External Sources

1. Internal sources:-

Internal sources are the most obvious sources. This includes personnel already on the pay-roll of the organization. These are some advantages of using internal sources:

o Improve employee morale

o Job security and opportunities for employee members

o Tried people and then be relied upon

o Require less training, so the training cost will be minimized

o It is less costly than going outside to recruit

Page | 17

o Present employee can understand local languages, customers and business practices well

In DIGJAM the internal recruitment is done by the reference of internal member of the organization. With the help of internal advertisement, within the company, company gets enough references for the recruitment.

2. External sources:-

Many of the organizations are depends upon the external sources for the recruitment like,

• New entrance for the labor force i.e. young, mostly inexperienced, potential employees, college students.

• The unemployed with wide range of skills and abilities.

• Experienced persons such as mechanics, accountants and welders.

• It provides the requisites type of personnel for an organization up to the required standards.

• It is economical because potential employees do not need extra training for job.

In DIGJAM the external recruitment is done by HR department with the help of concern department. As per the requirement of concern department recruitment procedure will be done by HR department.

Page | 18

2.2 SELECTION

Selection is the process of choosing the most suitable person out of all the applicants. Selection is the process of matching the qualifications of applicants with job requirements. Selection divides all the applicants into two categories:

1. Suitable

2. Unsuitable

In DIGJAM recruitment and selection procedure for BLUE COLLAR force is as per labour laws for the recruitment of labor in the company it is essential that he should acquire the certificate of ITI examination. Workers are selected by the concern supervisor and Assistant personnel manager. Physical fitness and attitude are considered at the time of selection.

Recruitment and selection procedure for WHITE COLLAR force refers to the selection of officers and managers. For this purpose DIGJAM is largely depend upon the fresh candidate and for that the company is following the formal selection procedure.

• Application receipt

• Employment test

• Group discussion

• Final interview

• Medical examination

• References checked

• Orientation programme

Page | 19

2.3 INDUCTION:

Induction mainly implies familiar introduction of new employee with the work, follow workers, work culture, superiors and organizations.

DIGJAM has systematic induction program, which helps to make employee feel at home and reduces the initial nervousness on his part. The main objectives of an induction program of DIGJAM are:

• To build up the new employee’s confidence in him in lathe new organization so that he may become an efficient employer.

• To give all the necessary information to employee about location of workrooms, canteen and other facilities, leave rules, rest periods

• To develop a feeling of belongings & loyalty to the organization.

Page | 20

2.4 TRAINING AND DEVELOPMENT:

Never stop listening

Never stop learning

Never stop training

“Training is any process by which the aptitudes, skills and abilities of employees to perform specific jobs are increase.” Training is the process of increasing the knowledge and skills for doing a particular job.

In DIGJAM the Human Resource Department identifies the training in all the employees with the departments’ heads. Every year in the month of March, after having training rate identified the Human Resource Department with the top management prepares a training calendar are conducts the training program.

• In case of workman, training is given on safety, housekeeping, quality improvement, skill improvement, multitasking, awareness, discipline, behavior and conduct rules are given here.

• In case of staff category, the training areas are skill development, attitude, motivation, awareness, roles and responsibilities etc. are given.

• In case of management training or all the training areas are of the specific nature mainly the management development areas are been conducted

There are two types of training are given to employees:

• On the job training

• Off the job training

Page | 21

2.5 PROMOTION AND TRANSFER:

“A promotion is the transfer of an employee to a job which pays more money or one that carries some preferred status.”

The term promotion is referred to the advancement of an employee to a better or higher job. In other words employee can be said to have been promoted where he performs his job which involves higher responsibility, requires a great degree of skills, commands more prestige & a higher status & carries higher rate of pay.

In DIGJAM being management reviews the performance of every individual on the yearly basis. The promotion is to be given on the merit basis. There are no fix promotion schemes. In DIGJAM demotion is also followed. These step is also been taken for some workers who do not performs his job well as required.

Transfer is a movement of employee from one job to another without any significant change in duties, responsibilities, required skills or compensations. Transfer may have to be made within an organization for varied reasons.

In DIGJAM workmen & staff employees are normally being transferred from one department to another department. This is on needing base in case of sales promotion to the transfer is in one location to another which also needs base.

Page | 22

2, 6 WAGES & SALARIES:

The wage is remuneration paid for the service of labor. In production wages usually refers to the contribution to production, while salary normally refers to the clerical administration & professional employees. A person who gets the wages is called “Blue collar worker.”

On the other hand salary normally refers to the monthly rates paid to clerical administration and professional employees or “White collar worker” in DIGJAM time office department decides the wages of worker. There is attendance system and after totaling the attendance of workers, they are paying to the workers at the 10th date of month. The maximum general advance will be Rs.450 each.

In case of staff category the employee’s gets consolidate salary on monthly calculated basis the pay scale starts from 7000 gross salary.

Page | 23

2.7 TRADE UNION:

Trade union is one of the associations of employees. According to G. Ramanagan, “Worker is a flower and trade union is a garland”. Trade union is an association of workers which protects and maintains employee’s interest. It works for employee’s welfare.

In DIGJAM there are more than 1300 employees in the organization, in which there are 1061 workers, 277 staff and 53 sub staff is included.

In DIGJAM are having three labor trade unions. The unions are affiliated with external trade unions such as

• BMS (Bharat Majdoor Sangh)

• AITUS (All India Trade Union Sangh)

• Janta Dal

There is family type of environment in the unit and if any problem occurs then union leader or labor officer solves that problem jointly. All the trade union helps in the development of the unit

Page | 24

2.8 PERFORMANCE APPRAISAL

Performance is not a matter of chance; it is a matter of choice. It is not a thing to be waited

for. It is a thing to be achieved.

PERFORMANCE MANAGEMENT AS A CYCLE Performance management can be described as a continues if – renewing cycle. CONTENT OF PERFORMANCE APPRAISAL: Every organization has to decide upon the content to be appraised before the programme is

approved. Generally content to be in the form of the basis of job analysis. Content to be

appraised may be in the form of contribution to organization objectives like production, cost

saving, return on capital, discipline, presence etc

CONTENTS TO BE APPRAISED FOR AN OFFICER’S JOB:

• Regularity of attendance.

• Self expression: Written & oral.

• Ability to work with others.

• Leadership styles & abilities.

• Initiative.

• Technical skill

Performance

Review

Performance &

development agreement

Managing performance Throughout

the year

Page | 25

CHAPTER 3

MARKETING

DEPARTMENT

Page | 26

3.1 INTRODUCTION Basically, marketing mix consists of four elements. They are:

• Product

• Price

• Place

• Promotion

In marketing, we have to select specific marketing targets in the form of market

segments. For each segment of subdivision of the market, we formulate a combination

of a number of devices or type of marketing activities that are integrated. The

contribution of these marketing methods of devices is known as the marketing mix.

A successful marketing strategy must have a marketing mix as well as a target market

for which the marketing mix is prepared. The elements or variables that make up

marketing mix are only four.

• Decision on Product or service

• Decision on Price

• Decision on Promotion

• Decision on Place/distribution

These 4 ingredients are closely interrelated. Under the system approach, the decision in

one area affects action in the other. Marketing mix decision constitutes a large part of

marketing management.

Marketing manager is a mixer of all marketing ingredients and he creates a mix of all

marketing elements and resources. Marketing mix offers an optimum combination of all

marketing ingredients so that we can have realization of company goals such as profit,

return on investment, sales volume, and market share and so on. It is the profitable

formula of our marketing operations.

The marketing mix will naturally be changing according to changing marketing

conditions and also with the changing environmental factors affecting each market. It is

of course, based on marketing research and marketing operations.

Page | 27

3.2 MARKETING CHANNELS / DISTRIBUTION CHANNELS

Few producers sell their goods directly to the final users. Instead, most use

intermediaries to bring their products to market. They try to forge marketing channel or

distribution channel – a set of independent organizations involved in the process of

making a product or service available for use or consumption by the consumer or

business user.

NUMBER OF CHANNEL LEVELS: Companies can design their distribution channels to make products and services

available to the customer in different ways. Each layer of marketing intermediaries that

performs some work in bringing the product and its ownership closer to the final buyer is

a channel level. Because the producer and the final consumer both perform some work,

they are part of every channel.

Chart 6 - Consumer Marketing Channels

Producer Producer Producer

Wholesaler

Retailer

Consumer Consumer

Retailer

Consumer

Page | 28

DIGJAM has 1600 to 2000 distributors spread all over India. There are many selling

representatives who work as agents on the basis of commission which is based on the

turnover achieved by them. DIGJAM follows a Multichannel distribution system which is

as follows:

Chart 7 - Multichannel Distribution of Digjam

1) SELLING REPRESENTATIVES: - They work as the agents on the basis of

commission paid to them based on the turnover i.e. on the rate of selling.

2) WHOLESALERS:- They get the following benefits:

i. Turnover incentive

ii. Early Bird Incentive

iii. Free Of Interest (FOI

3) DIRECT SHOWROOMS: - There are about 27 direct showroom of DIGJAM

spread all over India and get the benefit of Free of Interest (FOI).

1) RETAILERS: - There are 3000 such retailers of DIGJAM spread all over India

and does not get any such benefits.

PRODUCER (DIGJAM)

Selling Representative (AGENTS)

Retailers (3000 retailers)

Direct Showrooms (27 direct showrooms)

Wholesaler (100 wholesalers)

Page | 29

3.3 MOTIVATING THE CHANNEL PARTNERS

Once selected, channel members must be continuously managed and motivated to do

their best. The company must sell not only through the intermediaries but to and with

them. Most companies see their intermediaries as first – line customers and partners.

They practice strong Partner Relationship Management (PRM) to forge long-term

partnerships with channel members. This creates a marketing system that needs of

both the company and its marketing partners.

In managing its channels, a company must convince distributors that they can succeed

better by working together as apart of a organized value delivery system. Many

companies are now installing integrated high-tech partner relationship management

systems to coordinate their whole – channel marketing efforts. Just as they use

Customer Relationship Management (CRM) software systems to help manage

relationships with important customers, companies can now use PRM software to help

recruit, train, organize, manage, motivate, and evaluate relationships with channel

partners.

DIGJAM LIMITED motivates its customers by providing them gifts and discounts etc.

the various promotion tools used by DIGJAM are as follows:

1) Free Holiday Trips

2) Gift Articles

3) Carrier Bags

4) Glow Sign Boards

5) Sponsoring Events

Page | 30

3.4 ADVERTISEMENTS

Advertisement is nothing but a paid form a non – personal presentation or promotion of

ideas, goods or services by an identified sponsor. It communicates about the firm which

manufactures the product. Advertising thus means spreading of information.

According to Richard Buskirk: “Advertising is a paid form of non – personal presentation

of ideas goods or services by an identified sponsor.”

DIGJAM believes in planned and controlled ads. Every year around 15 crore of rupees

is spent on various types of advertisements. The advertisement program decision is

based as follows:

Mission - What is the advertising object?

Money - How much can be spent?

Message - What message should be used?

Media - What media should be used?

Measurement - How should the result be evaluated?

The department carries out the function of communicating the brand name value and

image to the customer. It ensures the premium image of DIGJAM brand is upheld in the

market place for this, it decides on the advertising to be undertaken by the company

and supervises the functioning of the advertising agency. The company’s ad agency is

RADIANT and it is ranked 4th in the country ad agency rating list.

DIGJAM advertises its product on various channels mainly in news channel viz. “Aaj

Tak”. Some of the print media through which the company makes advertisement of the

product are Outlook, India Today and Business India. The ad punch line “FABRIC FOR

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THE GREAT SUIT” has proved to be more effective. One of such different initiatives

taken by the department in the recent past is discussed below.

Back drop in movie “KABHI KHUSHI KABHI GUM”. A back drop of DIGJAM brand was

used in the highly successful movie. The total advertisement cost was Rs. 25 lacks in

the said production cost of Rs. 30 crore.

DIGJAM’s main competitor is Raymond. The Raymond at present rank in the market as

far as the sales and advertisement is concern. The company targets its ads on the

younger and most successful person. The lifestyle, emotion and humor are the key

contents of advertisement is limited and therefore executives have to check out the

various types media and their features like cost of media and high customer reach.

OUTDOOR MEDIA: Generally company contributes 50% advertising expense rendered by local agents.

Advertisement is given through various ads media like postal electric sign and electric

display.

The other media through which the company communicates its exclusive message to

the customer are window display, exhibitions and showroom. The company takes part in

various trade fairs organized in various parts of the country and outside the country to

tap the national as well as international market. The company has to see that it does not

spend too much or too less to wastage of money a negligible effect on consumers

respectively.

DIGJAM has the market share of 12% in the total market of woolen fabrics.

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ADVERTISING CAMPAIGN HORDINGS

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3.5 TYPES OF PACKING

DIGJAM has five types of packing at a different product and at a different price. This all the type

is as follow.

Packing A

In packing A, a lather briefcase is given with a product promotion is very easy and also this

briefcase is useful in your real life, as a office document and also you can use this bag at office

level.

Packing B

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In the packing B, a lather travel begs is given with product and in this bag you can use at

different place. At an official level, at a sales man level and in real life also.

Packing C

Packing C in the product give with a velvet bag life suitcase type this types of bag you

can use anywhere and of any purpose and this bag is very chip as compare to the lather bag. And

wait is light and attractive.

Packing D

In the packing D a paper bag which can be disposable also. This bag is very attractive

and its wait is very light and there are no government restrictions on this bag.

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Packing E

A packing E is give product with cover and plastic paper for the protection of the

product. It give a direct choose of color and design of the product for helping your side.

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PROMOTION: In order to promote the brand name and sales of the company the marketing

department launches various promotion schemes aimed at the consumers and the

channel partners. Low cost effective promotions done by the department for e.g.,

sponsorship of different prizes at as disco night in a five star hotel. Digjam suit lengths

were distributed as prizes.

Chart 8: Forms of Advertisements DIGJAM also advertises through FM Radios in Metros and Semi – metros like Jammu,

Bikaner, Pune, Bhopal, Baroda, and Ahmedabad etc. It advertises in Cinemas and

Multiplexes only in Metros.

ADVERTISEMENTS

NATIONAL LEVEL Aaj Tak Zee News NDTV India NDTV 24x7 CNBC

REGIONAL LEVEL ETV Gujarati Zee Gujarati ETV Punjabi UDAYA Gemini

MAGAZINES Business World India Today Flight Magazines Swagat (IA) Jet Wing (JA)

NEWSPAPERS Times of India Gujarat Samachar Rajasthan Patrika

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3.6 Ranking of media, the unit is in touch with:

The reason behind this point is to know which media has greater influence over

customer. Which media plays a vita role in the customer buying behavior? From the

survey it was derived that about 60% of the people ranked TV for their media habit,

ranked second to the newspaper and magazine i.e., 33%., 5% are in favor of internet

while the rest 2% are influenced by other means.

Table 1: Influence of media on unit PARTICULARS % OF RESPONDENTS

Television 60%

Newspaper and magazines 33%

Internet 5%

Others 2%

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CHAPTER 4 FINANCE

DEPARTMENT

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4.1 INTRODUCTION Finance department is the heart of any organization. Finance is as important as brain in human body. The basic objective of this department is t handle the finance as well as to maintain records of finance. Finance function assumes an important role in the business system and it should be given equal importance as to production and marketing function.

According to phillipatus,”Finance management is concerned with the managerial decisions that results in the acquisition and financing of long term and short term credit for the firm.” Financial management refers to the planning & control of financing decisions so as to ensure proper acquisition, allocation and maximum utilization of financial resources. The scope of financial management provides an overview of important decision making areas relating to the financial operations of a firm.

Profit maximization and wealth maximization are the main objective used in the sense of decision criteria for investment financing & dividend policy decisions involved in financial management. Finance manager who works under the direct control of company executives who handle the finance department. The bank related employees working under the finance manager who handle the matters and also fund management related matters.

Financial statements are indicators of the two significant factors:-

i. Profitability and

ii. Financial soundness

Analysis of financial statement therefore, refers to such a treatment of the information contained in the income statement and the Balance sheet so as to afford full diagnosed of the profitability and financial soundness of the business.

→ Tools of financial Analysis :-

1. Comparative Financial statements,

2. Common size financial statements,

3. Fund flow Analysis,

4. Ratio Analysis.

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4.2 SOURCES OF FUND:

One of the most important considerations for an entrepreneur of company in implementing a new project or undertaking expansion, diversification and modernization and rehabilitation scheme is ascertaining the cost of project and the means of finance.

The selection of fund source is dependent on the financial strategy pursued by the company, the leverage planned by the company, the financial condition prevent in the economy and the risk profile of both viz., the company as well as the industry in which the company operates. Each and every source of finance of funds has some advantages as well as disadvantages.

In DIGJAM, they use both types of sources for meet their different future requirements.

Internal Source:

• Depreciation fund • Profit Fund

External Source:

• Banks • Financial Institutions • Others

So these are the sources of finance and this necessary for every company to know their sources and they have to keep watch on all these sources.

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CHAPTER 5

FUTURE PLANS

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FUTURE PLANS

The global trend in textiles is shifting to ready-to-wear (RTW). At Digjam Limited, they

gear themselves for this shift with the launch of an exclusive range of RTW.

The RTW range will be available across India through a chain of select showrooms, run

by franchisees and dealers.

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CHAPTER 6 SWOT ANALYSIS

Every company does SWOT analysis whether it is large scale organization or small

scale organization to measure. They do their analysis for the purpose of identifying their

strengths, weakness, opportunities and threats.

STRENGTHS

• Sound logistics management system helps the company to cater the customers

having varied requirements in different varieties, color and packing.

• Young and the dynamic work force providing professional edge to the

management.

• Company covers 1/6th of the market share in the organized segment.

• Strong marketing and distribution network.

• Strong brand equity, goodwill and reputation.

WEAKNESS

• Image in the mark of only manufacturer of woolen fabric.

• Relatively higher carrying cost of inventory.

• No diversification till the year 2000.

• Lack of funds for heavy investment in advertisements.

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OPPORTUNITIES

• Company has good image in woolen segment so it can enter into production of

shawl and blanket.

• Existing dealer network sued to cater to new products also.

• By introduction of new applications, demand for the product can be expanded.

THREATS

• Cheap imported fabric.

• Dependable for raw material on other countries.

• Cotton fabric is preferred more by the consumer as compared with woolen.

• Change of consumer preference towards readymade garments.

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CHAPTER 7

RESEARCH

METHODOLOGY

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7.1 LITERATURE REVIEW

Literature Review on Customer Satisfaction: Author: Bingguang Li, Ph.D. Assistant Professor of Operations and Information Management College of Business Albany State University Albany, GA 31705 U.S.A. Phone: (229) 430-4779 Fax: (229) 430-5119 Email: bli@asurams.edu Abstract: Parcel delivery companies (e.g., US Postal Service, UPS, and FedEx) are significant parts of modern transportation systems. From a literature review, availability, responsiveness, reliability, completeness, and professionalism of service were identified as the five critical factors affecting customer satisfaction in parcel delivery industry. A model of customer satisfaction in parcel delivery service was developed. Written questionnaire responses from university academic departments across the U.S. were used. The questionnaire gathered data on the characteristics of each factor and determined the ranking of importance of factors. The research tested the hypotheses to determine the correlation coefficients between the five factors and overall customer satisfaction with respect to all customers for both outgoing and incoming parcel delivery services. Findings: Factors Affecting Customer Satisfaction in Parcel Delivery Industry: • Availability of service: The degree to which the customer can access the delivery service and contact customer service. • Responsiveness of service: The willingness or readiness of staffs to provide service and the degree to which the staff react promptly to the customer. • Reliability of service: Consistency of performance and dependability. Parcels are delivered to the right receivers without damage within the promised time. • Completeness of service: The degree to which the total job is finished. • Professionalism of service: The degree to which the provider uses suitable professional behaviors Research Model: It is the purpose of this study to determine the relationships between the five factors and customer

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CONCLUSIONS AND DISCUSSIONS Summary of the Research This research concluded that all the five factors (availability, responsiveness, reliability, completeness, and professionalism) were positively correlated with overall customer satisfaction with respect to all customers for both outgoing and incoming parcel delivery services. This research discovered that reliability of service was the most important among the five factors with respect to all customers for both outgoing and incoming parcel delivery services for the university departments surveyed. Professionalism was the least important for conditions of outgoing service and incoming service for all customers. Availability of service, responsiveness of service, and completeness of service were in the middle of the rankings. Sometimes availability of service, responsiveness of service, and completeness of service were statistically significantly different from each other, and sometimes they were not statistically significantly different with respect to two different services (outgoing or incoming service). Managerial Implications Reliability of service was the most important among the five factors. When parcel carriers make investment decisions, the highest priority should be given to the projects related to reliability improvement. Since reliability of service contributes to customer satisfaction, it is believed customer satisfaction contributes to customer retention and business success.

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RESEARCH PAPER ON CUSTOMER SATISFACTION :

Author :Scott B.Mackenize, Richard A.Spreng.

The Journal of Marketing, Vol. no. 3 (July., 1996)

Published by: London Financial times, 1998

Findings :

• Manager and salespeople can manipulate customer satisfaction ratings.

• Exclusion of unhappy customer during the survey period.

• Inaccurate survey by being nice to customer just before the survey.

• Intentionally wrong ratings by customer in order get more concessions.

Recommendations :

• Company should hire an outside research agency for getting accurate result.

• Company should not announce in advance about their research schedule.

• Company should select more diversified sample

• Company should provide some promotional gift to the customer for increase the

response rate for the survey. 1

1 Scott B. Mackenize & Richard A. Spreng,”A Reexamination of the Determinants of customer satisfaction,” journal of marketing, vol. no. 3(July1996): 15-32. 2 “Saturn Illustrates Customer Satisfaction, “Louisville courier-journal of marketing, September 5, 1999.

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Literature Review on Customer Satisfaction: Author : A White Paper, by Paul Hague and Nick Hague of B2B International Website : www.b2binternational.com Recommendation: 1 Pay attention to those issue that is important to customer. 2 Look at the customer satisfaction data to see, where low absolute scores are and low scores relatives to the competitive. 3 Think through the issues that need to be addressed and list them out. 4 Courtesy from sales staff 5 Representative of the sales staff should be friendliness 6 Company should provide after as well as before sales services to their customer through which company able to get satisfaction from customer side. 7 Company should provide good quality of product.

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Literature Review on Customer Satisfaction: Author: Rodrigo A. Padilla Research Faculty of Commerce and administration, Concordia University, December 5, 1996 Fifteen years ago, in the beginning stages of the customer service revolution, Ron Zemke and Dick Schaaf canvassed 101 leading companies to see how they approached customer service. From this investigation, they distilled five general operating principles that research and experience continue to uphold: Recommendation : 1 Successful customer service companies should listen , understand, and respond—often in unique and creative ways—to the evolving needs and constantly shifting expectations of their customers 2 Company should carefully hire people, train them extensively so they have the knowledge and skills to achieve the service standards, and then empower them to work on behalf of customers, whether inside or outside the organization. 3 Company should establish a clear vision of what superior service is, communicate that vision to employees at every level, and ensure that service quality is personally and positively important to everyone in the organization. 4 Not surprisingly, a primary concern of business research and literature is building companies that excel at gaining and keeping customers. Studies show that outstanding customer service organizations focus on a clear goal—satisfying the customer—and design everything else with that aim in mind. From the top-down, these organizations act to provide positive customer experiences. The focus on complete customer 5 Company should establish concrete standards of service quality and regularly measure themselves against those standards. 2

1 Customer Satisfaction: Improving Quality and Access to Services and Supports in Vulnerable Neighborhoods Benjamin Schneider and David E. Bowen, Winning the Service Game (Boston: Harvard Business School Press, 1995), 132. 2 Customer Satisfaction: Improving Quality and Access to Services and Supports in Vulnerable Neighborhoods Tim Mannello, “Susquehanna Health System: 1999 Global Customer Service Award Winner”

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7.2 INTRODUCTION OF MARKET RESEARCH Definition of Marketing Research : Marketing Research as the systematic design, collection, Analysis and Reporting of data and Findings Relevant to a specific marketing situation facing the company. Most large companies have their own marketing research department, which often play crucial role within the organization. Yet, marketing research is not limited to large companies with big budgets and marketing research departments. Often at much smaller companies, everyone carries out marketing research-including the customers. Companies normally budget marketing research at 1% to 2% of company sales. A large percentage of that is spent on services for outside firms Here Digjam spent approx 10% of the company sales. Specialty-line marketing research firms: A company can hire services of marketing research firm or conduct research in creative and affordable ways such as: 1 Engaging professors or students to design and conduct studies. Many large companies’ hires summer trainees from management institution for cost-effective market research year after year. Awarding live projects to MBA as part of their course work is also a common practice. 2 Monitoring published information and actions systematically. This may be done by examining news paper, websites, industry report, and by visiting competitive outlets.

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7.3 Objective of study PRIMARY:

1. To study the customers psychology regarding the company. 2. To gain knowledge about the market of DIGJAM fabric, with respect of brand usage,

market size and industrial scenario.

SECONDARY:

1. To identify the market forces that influences the customer decision in buying the product. 2. To get an insight about what the customer feels about the company policy. 3. To know the problems of customer. 4. To get an overview of the customer about the quality and sales promotion activities of the

company.

5. To know the market share of the company.

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7.4 LIMITATION Time horizon: Shortage of time duration, because the research on customer satisfaction is very broad area and it’s require much more time for reached at the good conclusion. Response: The response rate was very low. And can not be justify in the context of time limit. Technology: There was lack of availability of hardware equipment and internet connectivity, result for low response.

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7.5 DATA COLLECTION As a tool a well-structured questionnaire was used. These were used for collecting the responses from the respondent. The data collected through questionnaire was tabulated and analyzed to study, the respondent attention toward buying the DIGJAM to assess the customer knowledge about the organization, view on overall quality and price competitiveness, the advertising media to which the customers are in touch with and the problems they are facing with the product. Marketing research was done to assess the customer knowledge about the organization, view on overall quality and price competitiveness, the advertising media to which the customers are in touch with the problems they are facing with the product.

7.6 DATA ANALYSIS In order to do the work properly, a insight about the product, about the organization, about the production process was necessary. For this purpose a extensive study was initially done about the product and the production process. After the initial study, the survey was started in order to get the questionnaire filled by them. On the basis of the information collected in the interviews from the respondents and filled in questionnaire from them, certain findings were made on that basis and some recommendations too were given to the organization so as to improve the level of satisfaction of their customers. These findings and recommendations would go a long way of satisfaction and service in order to maintain its existing customer as well as to add 1-1 new customer to its existing data base. They also point the aspect in which the organization is lacking and need to improvise upon as well as the aspect, which are its plus point and which can really help in future.

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7.7 RESEARCH METHOD

To get an insight about the company, a questionnaire was properly designed for the customer. Basically those customers were undertaken who were purchasing the product from dealers, retailer, showrooms or shopping malls. First, the factors that affect the satisfaction level of DIGJAM customers were obtained. This was done with the help of discussions held with the sales and marketing professionals in the company. The following factors were obtained as a result

• Purchase influencers • Preference of garments getting stitched • Quality the fabric • Variety of design and colors with feel & finish • Offerings in tune with market demand, fashion/trend • Price competitiveness • Marketing efforts by the company to increase its sales. This includes advertising &

marketing, regional promotion, enhancing market/customer understanding.

As a universe was infinite, and due to time and cost constraints, The sampling unit is decide to cover maximum city through online(Ahmadabad, Vadodra, Surat) and oral(Jamnagar) research . The size of the sample is dependent on the city. But a minimum of 90 samples was to be taken to maintain the standard quality and reliability of the data collected.

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7.8 DATA ANALYSIS & INTERPRETATION Q.-1 Customer Detail. This is mention in questionnaire Q.-2 Are you aware about DIGJAM product? The main purpose of asking this question is that to know how much percent of people at least

know about DIGJAM product. So we can ask them next question related to DIGJAM product

and its services .

If customers aware about the product and also purchase the DIGJAM product regularly, so we

can get some information regarding requirement and what are their expectations from the

company.

If customers are not aware about DIGJAM product, we can ask them about our loop holes and

defect that what are the reasons of why we do not live up to the expectations of customers. Is

there any product promotion problem or adv. problem?

Through the help of end users we can reach the final decision. Although 72% of people were

aware about the customers. And 28% of people were not aware about the customer.

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Freq. Percentage Yes 65 72 No 25 28 Total 90 100

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Q.-3 Who influences your decision to buy clothes? The purpose of asking, this question was to know that with whose influences customers purchase the fabric. Influence plays a very vital role in affecting the preference and choice of people . Better quality life, along with exposure and education are making children and young adults increasingly participating in purchase decision and are becoming brand conscious with strong brand preference. As it is often seen, during purchase of fabric most of the purchasers are influenced by their well-known and in the form of peer pressure i.e. either any friend/colleague or family members who can judge better the customer on his overall look/personality. As for example: women are considered to be more influencers an ( I deeply interested in people, family and community) involvement . Therefore companies who market to them by focusing on these aspects, rather than solely on the product, are far more likely to capture their attention. Moreover, the company should never allow their sales associates to talk down to them. Moreover sometimes advertisements and retailers also influence the customer to purchase the product as e.g. any design/shade, shown in the advertisement is in demand. Or it may be possible that the retailers influence customer, pushing him to purchase a specific brand/quality. Besides these, there can be several other influences as well. In case of fabric purchase, the survey shows that about the customer’s nature

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- Company should have to concentrate on final customer , therefore they should give more advertisement on news paper and local media .

Freq. Percentage Advertisement 14 16 Friend 39 43 Family Member 34 38 Retailer 2 2 Other 1 1 Total 90 100

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Q.-4 which of the given garments you like to get stitched? This question was asked to enquire which of the garments the customers like to get stitched . As the taste, fashion and preferences of the customers are changing, 26% people prefer to get a blazer stitched. 34% people prefer to get trouser stitched 21% people prefer to get shirt stitched 13% people prefer to get 2pcs suit stitched 6% people prefer to get safari stitched Here, above result shows that a large proportion of the population have shifted to READY-TO-WEAR segment and affected the scale of fabric a lot. This shift, to readymade garments is mainly due to heavy stitching charges, time consuming with uneasy fitting given by the tailors. However, the above analysis may not be right in the truest sense as the, location factor plays an vital role in deciding the taste and fashion of the customer. It was difficult to analyze to the improper responses and understanding of the respondents. In most of the cases, respondents have marked only one of the option as answer to this question. With the result obtained, the company should produce more fabric usable for trousers &shirt purpose. Moreover, it should encourage the young adult male by its advertisements attracting them for the product. The company can too by-furcated or expand its activities by not just providing the customers the best quality fabric at cheaper rate but by entering into READY-TO-WEAR segment and providing it in cost effective way to the customer

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- Therefore, the company should try to manufacture the READYMADE garments by using its integrated manufacturing facility and receive high margins on that.

Freq. Percentage 2Pcs Suit 12 13 Safari 5 6 Blazer 23 26 Trouser 31 34 Shirt 19 21 Total 90 100

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Q.-5 which of the fabric brands you prefer to buy? As we know that brand image play a vital role in the market. One powerful brand, may work better than ten weak brands. If a product has a good brand image, then even if there are some, loop holes in the product or in the company’s policy, it will not affect the market. But company’s having a lower or less brand image, has to struggle in the market against its price competitiveness with its competitors or the quality of the product. Besides, strong brand can help companies to extend their offerings into newer product and develop a critical mass. Brand awareness is high not only in pure retail terms, but also disseminated through media advertising. Fashion wears especially for male, features heavily together with branded merchandise. In this respect DIGJAM conforms to current retail pattern with luxury and premium quality goods featured quite widely in prominent exclusive show rooms. Brand awareness with visibility can be with help of planned advertising activity. It was necessary to know in the survey that which brand the customers want to purchase, whether it’s DIGJAM, or RAYMOND, or REID & TAYLOR, or OCM, or any other. As per survey was conducted in local area of Jamnagar and many more city within the GUJARAT(SURAT , AHMEDABAD, RAJKOT,VADODRA ), where the factory of DIGJAM product is located, most of the preferences, about 24%of the people, were in favor of DIGJAM product is located, 14% of people give their preference to REID & TAYLOR . 3 % of people give their preference to OCM. 49% of people give their preference to RAYMOND 10% of people give their preference to OTHER. The reason behind its not brand image in customer mind is that there are showing very less advertisement on T.V. or DIGJAM has just 25 outlet whole over the India which very less that he RAYMON is about 600 outlet in all over India .

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Freq. Percentage DIGJAM 21 24 REID & TAYLOR 13 14 OCM 3 3 RAYMOND 44 49 OTHER 9 10 Total 90 100

Through, the company should try to manufacturing the readymade garments by using its integrated manufacturing facility and reap high margins on that.

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Q.-6 what is your view on DIGJAM fabric? For a company it’s an important things to know, whether their product overall view on the market is having a positive impact or a negative one. As such e.g. in the customer’s viewpoint “LEE” jeans are considered to be a costly one, as compared to other jeans manufacturing company. The view over a product varies with each mid even-person depending upon his likings, dis-likings, financial resources available etc. A more satisfied customer is likely to be more co-operative and brand loyal to the company. But the key growth for a company is, what conditions govern the increase and decline of satisfaction of a customer? If these can be identified, can they be influenced? Customers with higher rates of satisfaction generate significantly higher performance outcomes resulting in higher sales. Whenever customer had been asked about their view on DIGJAM fabric and it observed that

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Interpretation: Company should try to give some gift to their customers with which company can achieve maximum customers.

Freq. Percentage EXCELLENT 27 8 GOOD 43 48 SATISFACTION 22 24 NEED IMPROVEMENT 11 12 POOR 7 8 Total 90 100

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Q.-7 how would you perceive the quality of DIGJAM product? Expertise and quality are the two key words that rightfully describe the company and its work. To stand in the market arid to gain faith of the end consumer, it is essential for a company to provide good quality product to the customer at a comparative cheaper price. As customer don’t want to compromise on the quality. They want a return whatever they spent, either it is less or more. Some observation is also made that customers are ready to spent a little more, but within their budget, if they are getting a standard set of quality product. The company is using latest technology machines, with the procedures as Laid down in ISO-9001, to give the best output quality of product in the market for the end users of DIGJAM brand. There is no compromising in mill, as far as, quality is concerned with. At each and every point of production, a quality control machine is installed, which regularly checks the fabric during the process of production, Moreover, a quality control department is made, which, with the help of imported sophisticated machines and with set standards of ISO-9001 gives a best output for its quality.

Interpretation: Company should try to manufacture itself, or if not possible, may even out-source but it doesn’t be at the cost of quality of the fabric.

Freq. Percentage EXCELLENT 14 15

GOOD 58 65 SATISFACTION 13 15

NEED IMPROVEMENT 1 1

POOR 4 4 Total 90 100

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Q.-8 At which level, you are satisfied with the DIGJAM’s product? The main objective behind this question is to collect information about DIGJAM’S various product. All product has some satisfactory level which mention in below figure as well as chart . 38% of people were satisfied with Suit. 32% of people were satisfied with Blazer. 14% of people were satisfied with Trouser. 14% of people were satisfied with Shirt. 2% of people were satisfied with Shawl.

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Q.-9 What are your perception about the various Design & Color of the DIGJAM fabric? Change are a part of life in the growing market change is constant innovation is the key to success and makes business profitable in the long run, here be it in terms of product, design, marketing or price. Differentiation and creativity are the most important hallmark in the modern era. The company has to first identify the specific needs and tastes of customers and then making arrangements to provide the desired lines and colors that appeal to the customers. Topics such as “Design as the final differentiator” play an important role for a company. As the competition increases in India, design and colors would need to be upgraded regularly to keep it with the changing requirement of the customers. Since brand names and traditional advertising do not necessary translate in to sales, exports say that the changing design and colors with respect to change in fashion and trend holds the key to profitability. In the survey about 16% of the people were feel excellent 48% of the people were feel good 20% of the people were feel satisfactory 12% of the people were feel need improvement 4% of the people were feeling poor. As per the result and market condition it is impossible to satisfy each and every customer and the company is spending a lot on making design and color development. But still it can make an improvement in this sector by exploring the market and getting the feed backs from the dealers, retailers and even from the customers about their needs and requirement and the latest changing trends and fashion.

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Freq. Percentage EXCELLENT 14 16 GOOD 43 48 SATISFACTION 18 20 NEED IMPROVEMENT 11 12 POOR 4 4 Total 90 100

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Q.-10 Choose the range of DIGJAM product you prefer to buy . The objective of asking this is to get information about the customer expectation . I n which

range they prefer to buy a DIGJA,M fabric. And here the factor affecting in purchase the

different type of fabric in different range is money means INCOME . The income profile is also

different in today’s India..

As per the result we can’t say that there are maximum people who want to purchase fabric at

higher price. But it’s fact that the range factor totally depend upon the income of the customer

Here company should not concentrate only on price but they should maintain the quality of the

fabric so they can able to attract to customer.

No. Of Range Freq. Percentage 150-300 16 18 300-475 34 38 475-800 25 28 800-1300 9 10 More than 1300 6 6 Total 90 100

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Q.-11 How does your view the price-competitiveness of DIGJAM fabric with its competitors? The main objective of asking this question to customer is that want to find out the current market condition of DIGJAM and what kind of image set in customers mind compare to its competitors like Raymond , Reid & Taylor etc. As per the research result finds that Rest of the people view is that the price of DIGJAM is average compare to its competitors. Company has mass number of customer are in favor of it fabric but still company should maintain their price as well as quality.

Freq. Percentage Excellent 9 10 Good 49 55 Satisfaction 20 22 Need Improvement 9 10 Poor 3 3 Total 90 100

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Q.-12 What do your feel about the packaging of DIGJAM product? Company should maintain its quality as well as have to maintain its product packing for attract to customers. If company provides good packing with its product so they can easily attract the customers. The survey also revealed the policy of the company. More than 85% of the people were satisfied with company’s product packaging . Result is shown in below chart .

Freq. Percentage Excellent 13 18 Good 22 32 Satisfaction 24 35 Need Improvement 7 10 Poor 4 5 Total 70 100

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Q.-13 Where do you prefer to buy DIGJAM fabric? The objective of asking this question was basically to know that from which outlet they want to purchase and what their demand toward company is. Whether the DIGJAM brand is easily, available to the end user or he has to travel less for purchase of the fabric. As we observed in the research about

Therefore, the company should open make more exclusive show rooms and make more retailers/dealers at such places to provide the customer with a cost effective and operationally efficient location.

Freq. Percentage Exclusive Show Room 31 39 Digjam retail shops 21 26 Shopping malls 28 35 Total 80 100

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Q.-14 How would you evaluate the responses given to you by company/retailers to your complain? This question was asked to customer to get an insight into whether there is any complaint coming up for the product and if ‘YES’ then responses given by the company/retailers is up to mark or not. The company policy is to produce the fabric at the best quality level to ensure no complaints. But even if any complaints arises in the fabric and are forwarded to the company, the company takes it very seriously. They, simply replace the genuine defective item with a fresh one without loosing much of time. The survey also revealed the policy of the company

Freq. Percentage Excellent 6 12 Good 22 44 Satisfaction 12 24 Need Improvement 8 16 Poor 2 4 Total 50 100

Therefore, company should concentrate on this 20% people who were unsatisfied and also improve their outlet services.

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Q.-15/16 Please states the services given by our retailer’s before/after purchase of our product ? Services are one of the most important parameters to be kept in mind. The best of the product may not sell if the service offered to the customers is not satisfactory. The key differentiator to brand choice is pre sales and post sales service experienced. Since, word of mouth plays a very vital role, good service experience will be essential for brands to survive, ir-respective of how much they advertise or bring down price. At this point, one might wonder, why would a customer especially drive to a shop, fight for parking and then enter into a store and pay, a similar price for a similar product that he or she would have purchased from any other store. The retailer is, until retailer do not pull up their socks, offer unique services to the customers, it will be hard for them to attract the customers. There are equal chances that a customer may get annoyed with a bad services as with a bad product. Before purchase service includes a warm welcome by the retailer to the customer, friendly environment (if possible ), offering a glass full of water, comfortable seating, helping him to choose the right fabric etc. So that, the customer become cool-minded, feels comfortable and fully concentrates oil purchase of fabric. After purchase service is about services rendered after the customer has made the purchase. This may include helping the customer by informing him about the proper care of the fabric, washing instructions, bidding him a proper good buy, offering cold drinks, snacks, tea, coffee or providing good packaging to the product, giving home delivery service, proper billing listening to any complaint or suggestions of the customers etc. These services are offered to attract the customer to re-visit the retailer’s place again. These findings were made in the survey too. It is not surprising to see that 80% of the people were satisfied by the retailer before and after purchasing the product . The reason behind dis-satisfaction was mainly due to the pact that not all the dealers/retailers do an extra expense on the end-users, once the product is sold. Moreover, the customers always enter at the retailer’s place for purchase of product, where earlier also lie had got full satisfaction regarding the services rendered by the retailer or lie may be a referral client as well

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Freq. Percentage Excellent 6 12 Good 21 43 Satisfaction 13 27 Need Improvement 8 16 Poor 1 2 Total 50 100

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Q.-17 The distance of our digjam show room and retailer from your place? The purpose of asking this question was basically to know that whether the DIGJAM brand is easily, available to the end user or he has to travel a long distance for purchase of the fabric. As we observed in the survey about 20% of the customers come from the area of 3 kms . to purchase the fabric from the retailers counter’s counter and 22% of customer comes on an average from 1,2and 4 kms. and 40% of the customers were from more than 4 kms. This can be analyzed in two ways firstly, it can be seen as a strength for the company that it is able to attract its customers not only in local areas but from far areas too. But still on an average 17% of the customer were from the near or adaptive places. This shows tile brand loyalty mid brand image which the company has in the customer’s mind. Therefore, the company should open their exclusive show rooms and make more retailer/dealers at such places to provide the customer with a cost effective and operationally efficient location. The distribution of distance of DIGJAM retail outlet /showroom from customer’s place is shown above. But this data itself is not sufficient to make any decision. We also need to know as to how much distance a customer is willing in order to make a fabric/garment purchase. This Questionnaire assumes that a distance of 4km and above is ‘FAR’ for customer. In place like metropolitan cities, customers are willing to move to distances of around 20 km . in order to get good quality/reasonable prices/good brands, etc.

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Freq. Percentage Very Near 3 3 Near 13 15 Average 20 22 Far 16 18 Very Far 38 42 Total 90 100

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Q.-18 Rank the media you are in touch with (maximum to minimum) The purpose of asking this question was to know the media habits of the end user so that accordingly the advertising plan can be prepared by the company. Brand awareness and visibility can be achieved with the help of planned advertising activity. This means that we should adequate presence on television, newspaper and magazines. Again the limitation was that if the survey was conducted in any other metropolitan city, the result might very a lot.

Freq. Percentage T.V. 43 48 News Paper & Magazine 25 28 Radio 11 12 Internet 6 6 Other 5 6 Total 90 100

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Q.-19 What do you feel about the T.V. advertisement of DIGJAM fabric? All your efforts of choosing the right advertising medium, the right vendors to promote your product, drawing up a marketing strategy, tying up with the local store, would prove to be useless, if your product does not cut through the marketing din and stand out. In a market that is bursting at its seams with posters, banners, signs etc, visibility is a tough battle to be won. A battle won over visibility is wining half the battle in marketing your product. Imaging seeing a big carving of your favorite dessert from a very far off distance or seeing huge ducks on a building! Stunningly huge graphics would no doubt stand out from the other advertisements. But at the same time, if you think of putting up huge billboards, well that would neither solve the purpose, nor are they worth the hassles they bring with them. As in modern era, without good advertisement policy it is not easy task to catch up the customers and influence or attract them to buy the product. Moreover, the brand image of the company also builds up with more advertisement. As in television, advertisement is shown at the national level, the reach ability of the company towards its customers is at a higher side. So, mostly companies aim to give their ads at national level. With the question being asked about the television ads of DIGJAM fabric, a large number of sample populations were un-satisfied with the advertisement of DIGJAM in television channels. 62% of the people were un-satisfied with adv. on television and rest 38% of the people were satisfied with adv. on television.

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Freq. Percentage Excellent 4 4 Good 9 10 Satisfaction 3 3 Need Improvement 32 36 Poor 42 47 Total 90 100

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Q.-20 What do you feel about the magazine & news paper? Giving advertisement at local area is an important source of generating revenue and sales for any enterprise. As once the brand name becomes famous in local area, it gradually increase its area ,build its image at national level. This question asked to get the view of the customer regarding the magazine and news paper advertisement of DIGJAM fabric. The result of the survey shows that about 78% people were satisfied & 22% people were unsatisfied. Therefore, the company should give some extra advertisement to regain its market position at least at the regional level. Moreover, as the company had some financial constraints, so regional level ads on newspapers, magazines or local channel should be preferred.

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Freq. Percentage Excellent 2 3 Good 11 12 Satisfaction 13 14 Need Improvement 31 34 Poor 33 37 Total 90 100

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Customer expectation from DIGJAM

- More Bridal Collection

- I Want Readymade Formal Garments.

- Readymade Garments

- Readymade Fancy Jacket.

- Make More Adv. So Customer Can Aware About Your Product

- Readymade Shirt

- Readymade Trouser

- Need More Improvement In Marketing....

- Only Readymade Shirt...

- Mfg. Readymade Cloth

- Jacket

- Readymade Garments

- Mfg. A Ready To Wear Cloth

- At Low Price Middle Class People Afforded It.

- Quality Oriented

- Ladies Wear In Domestic Market

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7.9 FINDINGS Findings during the survey were: -

At present company’s more emphasis is on the export business, which is adversely affecting its domestic market. Lack of promotional activities at national as well as in regional level. A sales promotional scheme floated by the company is not impressive. Lack of innovative idea regarding new application of product. The main thing in the customers mind is that company manufactures only woolen fabric. Main complaints in P.V. fabric regarding its quality, price with feel and finish.

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SUGGESTIONS

• DIGJAM should go into the fashion shows because fashion shows serves as an

interesting way to showcase your products and seasons offering to your customer.

• Company should improve its promotional activities

• Company should aim and try to hit the right mark with teenagers too

• It should also step into new segments like readymade garments, cotton fabric, shawl and

blankets.

• DIGJAM should go into the fashion shows because fashion show serves as an interesting

way to showcase your products and seasons offering to your customers.

• Company should strategically locate its outlet in different areas.

• Company should direct its attention on the shop-in-shop retail format for greater market

penetration.

• To create awareness in areas of north an east, company should prefer advertising through

niche magazines.

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BIBLIOGRAPHY / WEBOGRAPHY

BOOK REFERENCES

By Kotler Philip, Keller Kevin Lane, Koshy Abraham, Zha Mithileshwar , Marketing

Management (13TH Edition) ,Pearson Education Ltd.

By Cooper Donald P., Schindler Pamela S., Business Research Method (9th

Edition), Tata-McGraw Hill Publishing Co. Ltd.

WEB REFERENCES

www.digjam.co.in. http://pages.infinite.net/rodrigo/satisfaction.html http://www.pressganey.com www.cssp.org http://www.apple.com

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CHAPTER-9-ANNEXURE

DIGJAM LIMITED. JAMNAGAR

{Customer Questionnaire}

1. Are you aware about DIGJAM product?

a. Yes b. No

2. Who influences your decision to buy clothes ? a. Adv. b. Friends c. Family Members d. Retailers e. Others.

3. Which of the given garments you like to get stitched ? a. 2Pcs Suit b. Safari c. Blazer d. Trouser e. Shirt

4. Which of the following fabric brands you prefer to buy ?

a. DIGJAM b. Reid &Taylor c. OCM d. Raymond e. Others ________.

5. What is your view on DIGJAM fabric?

a. Excellent b. Good c. satisfactory d. Need Improvement e. Poor

6. How would your perceive the quality of DIGJAM products?

a. Excellent b. Good c. satisfactory d. Need Improvement e. Poor

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7. What are your perception about the various design & colors of the DIGJAM

fabric?

a. Excellent b. Good c. satisfactory d. Need Improvement e. Poor

8. Choose the Range of DIGJAM products you prefer to buy.

a. 150 -300 b. 300 – 475 c. 475 - 800 d. 800 - 1300 e. More than 1300

9. How do your view the Price-Competit iveness of DIGJAM fabric with its competitors?

a. Excellent b. Good c. satisfactory d. Need Improvement e. Poor 10. What do your feel about the packaging of DIGJAM products?

a. Excellent b. Good c. satisfactory d. Need Improvement e. Poor

11. Where do you prefer to buy DIGJAM fabric?

a. Exclusive Show Room b. DIGJAM Retails Shops b. Shopping Malls

12. How would you evaluate the responses given to you by

Co./Retailers to your Complain?

a. Excellent b. Good c. satisfactory d. Need Improvement e. Poor

13. Please state the services given by our retailers before purchasing

our products.

a. Excellent b. Good c. satisfactory d. Need Improvement e. Poor

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14. Please state the services given by our retailers after purchase of our products.

a. Excellent b. Good c. satisfactory d. Need

Improvement e. Poor

15. The distance of our DIGJAM Show Room and Retailer from your place. a. Very near b. near c. Adaptive d. Far e. Very Far (1 KM) (2 KM) (3 KM) (4 KM) (More then 4 KM)

16. Rank the MEDIA you are in touch with. (Maximum to Minimum)

a. Magazines and Newspapers b. T.V. c. Radio d. Internet e. Others_________.

Rank 1 2 3 4 5 Assign alphabets as per rank

17. What do you feel about the T.V. Adv. of DIGJAM fabric?

a. Excellent b. Good c. satisfactory d. Need

Improvement e. Poor

18. What do you feel about the Magazine and Newspaper Adv. of DIGJAM

fabric?

a. Excellent b. Good c. satisfactory d. Need Improvement e. Poor

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19. Suggestions:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

20. What is your expectation from DIGJAM? Which type of product you want from DIGJAM? _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________

Consumer Details: Name: ______________________________________________________________________ Occupation: _____________________. Age: ________________________ yrs. Marital Status: ___________________ Annual Income: __________________ City: ___________________________

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EXAMPLE PERFORMANCE APPRAISAL FORM

DIGJAM LIMITED (DIGJAM WOOLLEN MILLS)

Confidential Performance & Competency Assessment: 2006 Please rate the employee on a scale of 1-5 on the following parameters: Scale of rating: (Excellent-5, Very good-4, Good-3, Average-2, Unsatisfactory-1)

Name : Department : Designation : Qualification : Date of Joining :

KNOWLEDGE/ SKILLS/ATTRIBUTES RATING/SCORES 1. A) ATTITUDE IMMD.SUP. HOD

• Regularity in attendance • Punctuality • Desire to learn • Attitude towards work

B) RELEVANT PROFESSIONAL KNOWLEDGE

• Professional Qualification for the • Relevant experience on the job

C) CONCEPTUAL SKILLS

• Ability to analyzer & use data • Recognizing problem / improvement Areas • Suggesting solutions on above

D) FUNCTIONAL SKILLS

• Setting priorities for work • Target orientation • Timely delivery of job

E) INTERPERSONAL SKILLS

• Ability to get along with juniors • Ability to get along with peers • Effective listening

F) LEADERSHIP SKILLS

• Ability to plan, Organize & control • Assertiveness • Ability to articulate & motivate • Ability to take decisions

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G) POTENTIAL ASSESSMENT IMMD.SUP. HOD

• Ability to further improve in current job level • Ability to take additional / higher responsibilities at same level • Ability to take up a cross –functional rule • Level of Ambition

2. Please describe briefly any significant contribution / achievement

on the job during last one year:

3. Please list down a few strengths of the employee:

4. Please list down a few specific areas if any where employee needs improvement:

5. Any suggestion on methodology for brining in improvement in the areas listed at (4) above, e.g. any

specific need based tailor-made training, job rotation etc.

Total scores by immediate superior:

Total scores by HOD:

Unit Head:

Date: