A Project Report Submitted in Partial Fulfilment of The Requirement For The Award of The Degree of

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A REPORT TO “STUDY ON EMPLOYEE MOTIVATION FOR “FITNESS”

ONLINE BUSINESS LISTING AT RECHEC”

A Project Report Submitted In Partial Fulfilment Of The Requirement For

The Award Of The Degree Of

MASTER OF BUSINESS ADMINISTRATION

(SPORTS MANAGEMENT)

By

SARAVANA KUMAR

Reg.No.20175407011

Under The Guidance Of

Mr.KUMARESAN

Assistant Professor

DEPARTMENT OF SPORTS MANAGEMENT AND SPORTS PSYCHOLOGY &


SPORTS SOCIOLOGY

TAMILNADU PHYSICAL EDUCATION AND SPORTS UNIVERSITY

CHENNAI-600127

DECEMBER-2018
STUDENT DECLARATION

I Saravana Kumar have completed the Project titled “A STUDY ON EMPLOYEE


MOTIVATION FOR “FITNESS” ONLINE BUSINESS LISTING WEBSITE AT
REACHEC” in HADO CONSULTECH PVT.LTD. under the guidance of
Mr.Kumaresan in the partial fulfilment of the requirement for the award of Master in
Business Administration (MBA) of Faculty of Management, Tamil Nadu Physical
Education and Sports University (TNPESU). This is an original work & I have neither
copied and nor submitted it earlier elsewhere.

Saravana Kumar
BONAFIDE CERTIFICATE

This is to certify that Mr. Saravana Kumar is a bonafide student of faculty of


Management, Tamil Nadu Physical Education and Sports University.

As a part of the University curriculum, the student has undergone Project work at

Hado Consultech Pvt. Ltd. during the period from 7/12/2018 to 8/02/2019 in the
partial fulfilment of the requirement for the award of the Degree of Master in Business
Administration (MBA)

Name & signature Name & signature

(Guide) (HOD)

Signature of Internal examiner Signature of External examiner

Date ………………………

Place ……………………..
Acknowledgement

It is with my deepest gratitude and warmest affection that I thank, Mr. Deepak
Kumar, Managing Director – Hado Consultech Pvt. Ltd. for giving me this
opportunity and I hope to have made the best use of it. I am more than happy to have
contributed to the development of the business by this research study on EMPLOYEE
MOTIVATION FOR “FITNESS” ONLINE BUSINESS LISTING AT “REACHEC”.
I hope that I have met your expectations! I am truly thankful to my mentor and advisor
Pandeshwari, Department Head –Nungabakkam for her continuous support
throughout the development of this work. Her motivation and immense knowledge has
helped me throughout the research study.

I would also like to extend my sincere gratitude to all the staff members of REACHEC
FITNESS TEAM Nungabakkam, who were very cooperative and made me feel I am
one among them. I will take back with me all the learnings we had working together.

The time I spent at Team lead, especially with the fitness department has given me
acute insights about how to run such a huge business with maximum profitability as
well as satisfying the customers.

Saravana Kumar
Acknowledgement

I would like to express my heartfelt gratitude to Mr.Kumaresan for her immense


support throughout my course period of MBA programme at TNPESU. I am very
much pleased to have you as my project guide. Your support in shaping this research
project as per the requirement was immense. The painstaking process of analysing the
inputs from the participants would not have taken the right shape without your
guidance. Madam, your vast academic knowledge has always inspired me.

Saravana Kumar
EXECUTIVE SUMMARY

Successful development of a growing and profitable customer base is a critical


requirement for business survival in a highly competitive and economically challenging
market environment. Unfortunately, most companies lack an integrated approach to both
attract and retain profitable new customers and maximize revenue and profitability from
existing ones.

Among the findings of a recent Chief Marketing Officer Council study, “Business gains
from how you retain respondents” say customer churn significantly impacts business
performance through revenue loss (59.9%), reduced profitability (39.6%), and greater
marketing and reacquisition costs (36.3%).

An existing customer base contains real growth potential, but many companies fail to
realize its full potential. Often, more energy goes into attracting new customers than
looking after current ones.

Those who play and enjoy sport - from Olympians to rank amateurs, want better, lighter,
higher performing equipment; while in our everyday lives we are increasingly looking for
goods that perform well, look good, last longer, and use as little energy as possible, both
in their production and use.

TABLE OF CONTENTS
PAGE
CONTENTS No.
CHAPTER 1

INTRODUCTION 1-29

CHAPTER 2

REVIEW OF LITERATURE 30-34

CHAPTER 3

TITLE OF THE STUDY 35-38

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION 39-55

CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION 56-62

QUESTIONARIES 63-65
CHAPTER 1

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1.1 INTRODUCTION

In order for most companies to be successful, they need to sell their product and services.
To sell products and customers must accept them, which means they are willing to
purchase or at least tolerate them. Consumer acceptance is directly linked to satisfaction.
It is a necessary step for there to be any chance of approval and repeat buying. The
degree of consumer acceptance can vary depending up on if product or service in
question is a necessity or a want. Consumer acceptance of necessary products is much
higher and easier to obtain than acceptance of luxury items. People are more selective
without unnecessary purchases, therefore acceptance can be more difficult to obtain.

The strategy of a company often depends on the level of consumer acceptance. If a


product is accepted by consumers immediately, it may not require a lot of marketing and
may be sold at a higher price. A product which takes longer to be accepted by consumers
will require more promotion to convince people.

The phrase, “Sport consumer behaviour is about the journey not the destination”,
describes the essence of sport and event consumer behaviour. Sport consumer behaviour
whether, it is watching or participating in a sport event, is about the experience. A desire
to seek out a consumption experience reflects a desire to satisfy internal needs and
receive benefits through acquisition. Even consumption activities that support this
behaviour (e.g., retail and services) often attempt to enhance or reactivate the meaning of
the sport experience. The amount of time and money individuals devotes to sport and
events represent behavioural outcomes of some experiential journey. This journey
corresponds to the specific sport or event pathway an individual travels to seek out
experiences that provide positive outcomes. From this perspective, sport consumer
behaviour and consumption activities that occur at sport event destinations signify the
completion of the journey. As a result, the actions of sport marketing professionals should
help individuals navigate and enjoy the journey.

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1.1.1 BRANDING MEANS

 Source of product
 Delegating responsibility to the manufacturer of products
 Lower risk
 Less search cost
 Quality symbol
 Deal or pact with the product manufacturer
 Symbolic device

Brand simplify consumers purchase decision. Over a period, consumers discover the
brands which satisfy their need. If the consumers recognize particular brand and have
knowledge about it, they make quick purchase decision and save a lot of time. Also, they
save search costs for product. Consumers remain committed and loyal to a brand as long
as they believe and have an implicit understanding that the brand will continue meeting
their expectations and perform in the desired manner consistently. As long as the
consumers get benefits and satisfaction from consumption of the product, they will more
likely continue to buy that brand. Brand also play a crucial role in signifying certain
product features to consumers.

BRANDINGS MEANS AND SIGNIFIES

 Basics of competitive advantage


 Way of bestowing products with unique association
 Way of identification to easy handling
 Way of legal protection of products unique traits/features
 Sign of quality to satisfied customers
 Means of financial return

A brand, in short can be defined as a seller’s promise to provide consistently a unique set
of characteristics, advantages and services to the buyers/consumers. It is a name, term,
sign, symbol or a combination of all these planned to differentiate the goods/services of
one seller or group of sellers from those of competitors. Some examples of well known
brands are Mc Donald’s, Mercedes-Benz, Sony, Coca-Cola, Kingfisher, etc.

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A brand connects the four crucial elements of an enterprise, customers, employees,
management and shareholders. Brand is nothing but an assortment of memories in
customers mind. Brand represent values, ideas and even personality. It is a set of
functional, emotional and rational association and benefits which have occupied target
markets mind,. Association are nothing but the images and symbols associated with the
brand or brand benefits , such as, The Nike Swoosh, The Nokia Sound, etc. Benefits are
the basis for purchase decision.

1.1.2 BRAND IMAGE

Brand image is the current view of the customers about a brand. It cab be defined as a
unique bundle of associations within the mind of target customers. It signifies what the
brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is
nothing but the customers perception about the product. It is the manner in which a
specific brand is positioned in the market. Brand image conveys emotional value and not
just a mental image. Brand image is nothing but an organizations character. It is a
accumulation of contact and observation by people external to an organization. It should
highlight an organizations mission and vision to all. The main elements of positive brand
image are unique logo reflecting organizations image, slogan describing organizations
business in brief and brand identifier supporting the key values.

Brand image is the overall impression in consumers mind that is formed from all sources.
Consumers develop various associations with the brand. Based on these associations, they
form brand image. An image is formed about the brand on the basis of subjective
perceptions of associations bundle that the customers have about the brand. Volvo is
associated with safety. Toyota is associated with reliability.

The idea brand image is that the customers is not purchasing just the product/services but
also the image associated with that product/services. Brand image should be positive,
unique and instant. Brand image can be strengthened using brand communications like
advertising, packaging, word of mouth publicity, other promotional tools, etc.

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Brand image develops and conveys the products character in a unique manner different
from its competitors’ image. The brand image consists of various associations in
consumers mind-attributes, benefits, and attributes. Brand attributes are the functional and
mental connections with the brand that the customer have. They can be specific or
conceptual. Benefits are the rationale for the purchase decision. These are three types of
benefits: Functional benefits - what do you do better (than others), emotional benefits -
how do you make me feel better (than others), and rational benefits/support - why do I
believe you (more than others). Brand attributes are consumers overall assessment of
brand.

Brand image has not to be created but is automatically formed. The brand image includes
products appeal, ease of use, functionality, fame and overall value. Brand image is actually
brand content. When the consumers purchase the product, they are also purchasing its
image. Brand image is objective and mental feedback of consumers when they purchase a
product. Positive brand image is exceeding the customers expectations. Positive brand
image enhances the goodwill and brand value of an organization.

1.1.3 Brand Recognition

Brand recognition is the extent to which the general public (or and organization’s
target market) is able to identify a brand by its attributes. Brand recognition, also known as
“aided brand recall” is most successful when people can state a brand without beingexplicitly
exposed to the company’s name, but rather through visual or auditory signifiers like logos,
slogans, packaging, colours or jingles as seen in advertising. It differs from brand awareness,
which is merely the knowledge that a brand exists.

Brand recognition is often paired with brand recall, which is the ability of customers to
think of a brand name from their own memory when told to think of a category of products.
Brand recall tends to indicate a stronger connection to a brand than brand recognition. For
example, people tend to think of more brand names when prompted by a product than by a
category. Brand recall is also called “unaided recall” or “spontaneous recall.”

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To measure brand recognition and the effectiveness of promotional campaigns, many
companies will perform experiments on study group. Both aided and unaided recall tests may
be used. With similar products, brand recognition will result in higher sales, even if both
brands are of equal quality.

1.1.4 Brand Equity

Brand equity is a marketing term that describes a brand value. That value is
determined by customers perception of and experience with the brand. If people think highly
of a brand, it has positive brand equity. When a brand consistently under-delivers and
disappoints to the point where people recommend that others avoid it, it has a negative brand
equity.

1.1.4.1 Positivebrand equity has value:

 Companies can charge more for a product with a great deal of brand equity.
 That equity can be transferred to line extensions – products related to the brand that
include the brand name – so a business can make more money from the brand.

1.1.5 Brand Awareness

Brand awareness is the probability that consumers are familiar about the life and availability
of the product. It is the degree to which consumers precisely associate the brand with the
specific product. It is measured as ratio of niche market that has former knowledge of brand.
Brand awareness includes both brand recognition as well as brand recall. Brand recognition is
the ability of consumer to recognize prior knowledge of brand when they are asked questions
about that brand or when they are shown that specific brand, i.e., the consumers can clearly
differentiate the brand as having been earlier noticed or heard. While brand recall is the
potential of consumer to recover a brand from his memory when given the product
class/category, needs satisfied by that category or buying scenario as a signal. In other words,
it refers that consumers should correctly recover brand from the memory when given a clue
or he can recall the specific brand when the product category is mentioned. It is generally
easier to recognize a brand rather than recall it from the memory.

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Brand awareness is improved to the extent to which brand names are selected that is
simple and easy to pronounce or spell, known and expensive, and unique as well as distinct.
For instance – Coca-Cola has come to be known as Coke.

1.1.5.1There are two types of Brand Awareness

1. Aided awareness – This means that on mentioning the product category, the
consumers recognize your brand from the lists of brands shown.

2. Top of mind awareness (immediate brand recall)- This means that on mentioning
the product category, the first brand that customer recalls from his mind is your brand.

The relative importance of brand recall and recognition will rely on the degree to
which consumers make product-related decision with the brand present or not. For
instance – in a store, brand recognition is more crucial as the brand will be physically
present. In a scenario where brands are not physically present, brand recall is more
significant (as in case of service and online brands)

Building brand awareness is essential for building brand equity. It includes use of
various renowned channels of promotion such as advertising, word of mouth publicity,
social media like blogs, sponsorships, launching events, etc. To create brand awareness, it
is important to create reliable brand image, slogans and taglines. The brand message to be
communicated should also be consistent. Strong brand awareness leads to high sales and
high market share. Brand awareness can be regarded as a means through which consumers
become acquainted and familiar with a brand and recognize that brand.

1.1.6 BRAND ATTRIBUTES

Brand attributes portray a company’s brand characteristics. They signify the basic
nature of brand. Brand attributes are a bundle of features that highlight the physical and
personality aspects of the brand. Attributes are developed through images, actions, or
presumptions. Brand attributes help in creating brand identity.

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1.1.6.1A strong brand must have following attributes.

1. Relevancy – A strong brand must be relevant. It must meet peoples expectations and
should perform the way they want it to. A good job must be done to persuade consumers
to buy the product; else inspite of your product being unique, people will not buy it.

2. Consistency – A consistent brand signifies what the brand stands for and builds
customers trust in brand. A consistent brand is where the company communicates message
in a way that does not deviate from the core brand proposition.

3. Proper positioning – A strong brand should be positioned so that it makes a place in


target audience mind and they prefer it over other brands.

4. Sustainable – A strong brand makes a business competitive. A sustainable brand


drives an organization towards innovation and success. Example of sustainable brand is
marks and spencer’s.

5. Credibility – A strong brand should do what it promises. The way you communicate
your brand to the audience/customers want to believe what it promises. Do not exaggerate
as customers want to believe in the promises you make to them.

6. Inspirational – A strong brand should transcend/inspire the category it is famous. For


example – Nike transcendent jersey polo shirt.

7. Uniqueness – A strong brand should be different and unique. It should set you apart
from other competitors in market

8. Appealing – A strong brand should be attractive. Consumers should be attracted by


the promise you make and by the value you deliver.

1.1.7 BRAND POSITIONING

Brand positioning refers to target consumers reason to buy your brand in preference
to others. It is ensure that all brand activity has a common aim; is guided, directed and
delivered by the brands benefits/reason to buy, and it focus at all points of contact with the
consumer.

1.1.7.1 Brand positioning must make sure that:

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 It is unique/distinctive vs. competitors?
 It is significant and encouraging to the niche market?
 It is appropriate to all major geographic markets and business?
 Is the proposition validated with unique, appropriate and original products?
 Is it sustainable – can it be delivered constantly across all point of contact with
the consumer?
 Is it helpful for organization to achieve its financial goals?
 Is it able to support and boost up the organization?

In order to create a distinctive place in the market, a niche market has to be carefully
chosen and a differential advantage must be created in their mind. Brand positioning is
a medium through which an organization can portray its customers what it wants to
achieve for them.

1.1.8 BRAND PROMISE

Brand evokes the responses. There are many people who love their Apple iPod or
love their car etc. There are certain feelings that come to your mind when you think about
your favourite brands. People expect that these brands should demonstrate brand promises
every time whenever they are, encountered. Inconsistence in the performance of services
can lead to damage in future relations. This can cause a customer to select some other
brand.

Brand promise is what you say to the customers and what is to be delivered. If you
are not able to meet the expectations of the customer, your business will either flounder or
die. If you are not able to deliver the brands promises you will not be able to meet the
expectations that have been created in the customers mind.

1.1.9 BRAND PREFERENCE

Brand preference develops when one brand consistently provides a pleasant


experience for a customer. If a customer buys one brand of dog food and sees no issues
with the food, likes the price, and notices that the dog enjoys it, they will likely develop a

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preference for that brand and be unlikely to branch out and try other brands. Brand
preference does not equal loyalty, however

Brand is the “name, term, design, symbol, or any other feature that identifies one
seller’s good or services as distinct form those of other seller.” Initially, Branding was
adopted to differentiate one person’s cattle from another’s by means of a distinctive
symbol burned into the animal’s skin with a hot iron stamp, and was subsequently use din
business, marketing and advertising. A modern example of a brand is Coca Cola which
belongs to the Coca-Cola company. A brand is the most valuable fixed asset of a
corporation. A concept brand is a brand that is associated with an abstract concept, like
breast cancer awareness or environmentalism, rather than a specific product, service or
business. A commodity brand is a brand associated with commodity.

Based on the previous experience with the product consumer will choose it rather
than competitors of its availability. Companies with products at the brand preference stage
are in favourable position in competition their industry since the brand preference results
in brand loyalty companies more market share.

1.1.10 Customer brand preference and loyalty

Getting a customer to prefer your brand is the first step to creating loyalty. Once a
brand preference has been established, the customer will continue to come to your store or
visit your website somewhat regularly. Regular interaction and purchases create additional
opportunities to connect with customers and being to build loyalty out of their brand
preference. In order to have a customer around long enough to build loyalty, the brand
preference must be established.

For this reason, the employees’ you staff are very important. How they interact
with your customers will determine if they develop a brand preference or true customer
loyalty. Hire employees who understand the importance of the customer experience and
don’t mind going out of their way to help. Creative problem-solving skills are essential in
customer-facing staff. Positive communication technique should be taught to ensure every
customer leaves feeling satisfaction

1.1.11 Types of Preferences

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The target audience might like the product but not prefer it to other. In this case, the
communicator must try to build customers preference by promoting quality, value,
performance and other features. The communicator can check the campaign’s success by
measuring audience preference after the campaign. The following are the types of preference.

 Homogeneous Preference
 Diffused Preference
 Clustered Preference
 Heterogeneous Preference

1.1.11.1 Homogeneous Preferences

A market where the entire customer have roughly the same preference. The market
show no natural segments. We would predict that existing brands would be similar and cluster
around the middle of the scale in both sweetness and creaminess.

1.1.11.2 Diffused Preference

At the other extreme, customer preference may be scattered throughout the space,
indicating that customer vary greatly in their preferences. The first brand to enter the market
is likely to position in the centre to appeal to the most people. A brand in the centre
minimizes the sum of total customer dissatisfaction. A second competitors could locate next
to the first brand and fight for market share or it could locate in a corner to attract a customer
group that was not satisfied with the centre brand. If several brands are in the market, they are
likely to position throughout the space and show real difference to match customer preference
differences.

1.1.11.3 Clustered Preference

The market might reveal distinct preference clusters called natural market segments.
The first firm in this market has three options. It might position in the centre hoping to appeal
to all groups. It might position in the largest market segments. It might develop several
brands, each positioned in a different segment if the first firm developed only one brand and
competitors would enter and introduce brands in the other segments.

1.1.11.4 Heterogeneous Preference

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Customer preference heterogeneity perhaps the most important reason for
segmenting in customer preference. Taste and preferences differ among people. Some people
are highly concerned about the appearance of a product, whereas others are more concerned
about functionally. As preference heterogeneity increase the case for segmentation increases
in strength moreover; the greater the variability the large the number of profitable segments
present in a market.

1.1.12 SPORTS INDUSTRY PROFILE

A sports industry is developing one of the biggest in the world. More & more people
are participating in sport & recreational activities throughout a wide spectrum of activities.
Indian sports goods retail industry has grown significantly over the year. Technology, coupled
with few government initiatives, leading to cost-effective production techniques, would be
the prerequisites for this highly evolving industry. The Indian sports goods retailing sector is
becoming intensely competitive, as more and more players are vying for the same set of
customers and is witnessing a radical transformation. The increase in the number of retailers
across the country indicates that sports industry will boom in a big way in the near future.
The new entrant in retailing in India signifies the beginning of retail revolution. Retailing of
sports goods market in India is growing due to the rise in per capita income, changing
lifestyle, and consumer preferences. India has been a manufacturing hub for various sports
products and brands sourcing which has tremendously increased.

Sports is becoming increasingly important as a passive entertainment, both live and in


the media. The most popular “equipped” sport in India is Cricket; next comes volleyball and
racket sports. Beyond these, sports equipment’s market is extremely fragmented. Home
fitness equipment’s is nearly second only to cricket in terms of consumers expenditure. As a
maximum consumers of fitness equipment’s are by clubs and gyms. Consumers also spend
more on sportswear, but their spending is exaggerated by the fashion for wearing sports
clothing and sports shoes as all-purpose leisurewear. As ever, a sport on the 21 st century is
market full of extremes. With market throughout the world becoming increasingly more
competitive, market research is now on the main agenda of marketing the sports goods; it
means identifying customers and providing services of uncompromising quality in return for
an optimal profit on investment. Generally, a growing market is more desirable, not only
there is great sales potential but also usually easier to entre and build sales in a growing
market place. For very small firms, however, a large market can be double edge sword. On
the positive side of course, there is a potential for huge sales, negatively though larger firms
with well-established access to marketing channels and better financing might be tempered to
entre such an attractive market place.

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Sports goods are defined as tangible, physical products that offer benefits to
consumers. Conversely, services are intangible, non-physical products. Most sports products
possess the characteristics of both goods and services. Sports goods industry is comprised of
all establishments primarily engaged in retailing new sporting goods, health and fitness
equipment apparels or hosiery, sports shoes various sports equipment and accessories which
are sold by sports goods retailers and whole sellers. It is axiomatic that consumers participate
in the activities for which they buy various sports products; where as in some cases it may be
in obverse condition people may not buy products for participants; e.g. Tread-mill or jogger
may not be used at health clubs, cricket matting or helmets may be shared by one or more
team. Table tennis table may be borrowed or rented etc. None less in many sports events
participating trends are clearly correlated with consumer’s products.

One believes that sports product is a good, service or any combination such (a)
product availability in the region, (b) Geographic location of the region, (c) Economic
condition of the sports participants, etc are the few points to be mentioned. Indian retail
sector of sports goods India is a country having one of the most unorganized sports good
retail market. Traditionally it is a family’s livelihood, with more than 90% retailers’ function
in less than 500 square feet of shopping space purchasing power of Indian urban consumer is
growing and branded merchandise in sports are slowly becoming lifestyle products that are
widely accepted. Indian sports goods retailers need to take advantage of this growth and aim
to grow, diversify and introduce new formats and to face fierce competitive pressure they
must come to recognize the value of building their own stores as brands to reinforce their
marketing positioning, to communicate quality as well as value for money. No doubt Indian
sports good retail scene is booming and has witnessed too many players in short time,
crowding several categories without looking at their core competencies, or having a well
thought out branding strategy. Some retailers have still been able to maintain their ground in
the market in spite of the arrival of new entrants.

Consumer insights built over their years of experience in business is helping them to
hold the fort against the onslaught of the new players on the horizon. Researcher quotes that
“consumers also now play games with retailers – sitting tight and waiting for the discounts to
come. Because purchases are not necessities as they have more choice about when they buy.”
Sports goods retail market in Vidarbha in Vidarbha region sports good retail has developed a
lot and sports goods market is growing rapidly at an average annual rate of around 5-10 per
cent in the past few years, as young and educated population, higher disposal income,
urbanization, awareness and exposure to international market, presence of foreign brands,
corporate entry into sports, technological development and good performance of the country
in some international events. Also hosting a series of international / national sporting events,

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increased training and infrastructure facility had boosted sports goods business in the region.
Although, Vidarbha is not a major sporting region in country and neither does players won a
significant number of medals in major sporting events but participants had actively
participated in all type of sporting events. Also, consumers health conscious as is evident
from the growing number of health clubs, gyms, and fitness centres. Sports goods retailing in
Vidarbha is not a new concept, but the retail format have changed in the post liberalization
period. In the past, sports retailing was done through family -owned single shop outlets which
mostly sold sports equipment and toys.

Sports apparel was sold by apparel retailers and shoes by footwear retailers. There
were hardly any outlets providing sports apparel, shoes, equipment and accessories under one
roof. After last few decades sports goods retail business in Vidarbha under gone a massive
change from family owned, one-shop businesses to corporate retailing, presence all type od
foreign brands through exclusive outlets, departments stores, other conveniences stores, etc.
There are a number of studies on various retail sectors in Vidarbha. However, they do not
specifically looks at sports goods retailing. Researchers pointed out that sports good retailers
in region are more likely to sell high value technology- oriented products, fast-moving
products along with foreign brands that operate across all segments including sports
equipment, apparel, shoes and sports accessories which help them to increase their retail
footprint. However, penetration of sports retailers in smaller cities of Vidarbha region is
somewhat restricted by availability and access to sports infrastructure. Services offered by
sports goods retailers.

The general services which sports goods retailers should provide are as below:

1. Sports goods retailers anticipate the wants of the consumers and then supplies them
right kind of goods at reasonable price. Retailers make consumers buying easy &
convenient as possible.
2. Retailers perform the services of bulk-breaking i.e. dividing large quantities into small
units, appropriate for consumer use.
3. Retailers create time and place utility by storing the product in off season and by
transporting these goods to the places where they can be readily available as and when
needed by consumer.
4. Retailers also help the manufactures in distributing their goods by using advertisement
display and personal selling.
5. Retailers sometimes also offer free delivery of goods, credit, free alteration, liberal
exchange facilities, instructions in the use of goods, revolving credit plans, etc.

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Marketing one of the most misunderstood and confused terms used in business. Many of
us are often confused between marketing and selling. However, these two concepts have
exactly opposite connation. Marketing is existed in the world of business and commerce.
The marketing concept is very logical.

In general, marketing activities are all those associated with identifying the particular
wants and needs. The two can be differentiated as (1) Manufactures create a product,
which is given to sales representatives to find a customer and sell that product; where as in
the marketing approach the information is given to the designer who develops a product
and finally the manufacturer who produce the desired product. Thus, the sales approach
begins and end with the customers. (2) The second major difference between sales and
marketing approaches is the focus of management. The sales approach almost focuses on
volume; while the marketing approach focus on profit. Marketing is a dynamic discipline,
one must adapt quickly to new technologies, new products & new consumer tastes, as
rapid technological innovation continue to change human needs & provide goods &
services to consumers at an affordable price. A need occurs when an individual feel that
they lack a necessity. A want, on the other hand, is something learned; it is shaped by
various factors such as culture, experience, social-influences, etc. Thus, a market is
composed of potential consumers with the desire and ability to purchase a specific
product.

Four P’s of marketing there is evidence that some universal rules are applicable to
successful marketing in retail sports goods industries. Studies have found that some of the
characteristics affecting consumer behaviours that marketers must take into account, due
to the influence on consumer purchases are product, pricing, positioning, and placement.
What is known in marketing circles as 4 P’s? As selling sports goods need to create a
successful mix of: (1) The right product, (2) Sold at the right price, (3) In the right place &
(4) Using the most suitable promotion other dimensions of competition in sports goods
retailing Geographical location. Geographical location can be important in retailing.
Sports goods consumers are not quite sure what they want and want to be able to make
comparisons among a number of different shops, retailers can attract customers by
clustering together. The importance of geographical location means that local market
power can be high and the inability to find an appropriate location can act as a barrier to
entry. Product selection (Quality and Range of products retailed) Location in product
space tends to be very important in retailing. Retailers carry out a selective gatekeeper
function: consumers do not have the time or ability to look at all products available from
manufacturers, and they prefer retailers to carry out some selection on their behalf.
Consumers then choose between retailers on the ground of the sort of product selection
they expect the retailer to have already done.

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Level and quality of retailer service simply deciding which products to retail, however,
is only part of a retailer’s quality choice. In addition to the physical characteristics of the
products chosen, the retailers has to decide how much, and what form, of retailer service
to provide. There are various possible types of services that retailers can provide; 1. Shop
ambience 2. Point-of-sale services 3.After-sale-services 4.Product promotion 5. Retailer
image/reputation there are a variety of opportunities to market within the sports industries,
as it views marketing not as hunting but as gardening. Minds are like parachutes, they
only function when they are open. Many sports goods manufacturers have formed their
own wholesale and retail networks. Also, a new marketing strategy the in-house retail
system is being applied by various manufacturers to achieve consumers loyalty and
strengthen their competitiveness, ultimately leading to greater market share, because
instead of product centred “make and sell” philosophy, the sports product marketing
concept is a customer centred “sense and respond” philosophy.

1.2 INDUSTRY PROFILE

Introduction

Sport – from games and physical activity to organized competitive sport – has an
important role in all societies. For the individuals, it enhances fitness, improves general
health and enables a person to be self-confident. At the national level, sport and physical
education contribute to economic and social growth, improves public health, and bring
different communities together. It is an important component of human capital
development. At the global level, sports and physical education can have a long lasting
positive impact on development of poor countries through various linkages like
development of tourism sector. It helps to maintain international peace and promotes
cordial international relations through international sporting events.

Globally, the sports market is one of the most complex and diverse markets in which the
government, federations and private sector are intertwined and all of them play an
important role. In many countries the government is responsible for the development of
sports infrastructure. For instance, in countries like China, Australia and India,
development of sports infrastructure is one of the key responsibilities of the government.
Government policies directly or indirectly impact the development of sports in any
country. However, these policies vary from country to country. In countries like China

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and Australia sports sector got a boost due to conducive government policies. For
instance in China, the government adopted "Physical Health Law of the People's
Republic of China" in 1995 in which it aimed to build a sport and health-building service
system for the general public. Prior to 1990‟s, sports sector in China was completely
government funded, however, since then, there has been corporatization of sports. This
has helped in professionalization of sports and improving sports environment in China. In
Australia, the government’s focus on sports development was propelled by Australia’s
poor performance in the 1976 Montreal Olympic Games. The government adopted a
policy of „Using sport to build healthy and active communities‟ and commissioned
various studies. Despite political resistance, a governing body called the Australian
Institute of Sports (AIS) was established in 1981for focused infrastructure development
to facilitate development and training of Australian sportsperson. In 1989 for a holistic
development the government decided to form the Australian Sports Commission (ASC)
and merge the AIS with it. The ASC is one of the most active global institutions in
promoting sports at the grass-root level, training and development of sportsperson,
among others.

At present, the size of the sports retail market in India is small. There are no clear
estimates on the size of the sports sector alone. However, the sports, equipment’s, books
and entertainment sector together constituted around 2.7 per cent of the total retail market
in 2006-07 while in the organized retail market its share is around 10 per cent. India has
developed as a sports good sourcing hub and the sports goods industry has been growing
at an average annual rate of around 10-12 per cent in the past five years. The focus of the
industry has been on exports. However, of late the sports market in India is growing
rapidly with the continued growth of GDP, a young and educated population, higher
disposable income, urbanization, awareness and exposure to international markets, the
presence of foreign brands, corporate entry into sports, technological developments, and
good performance of the country in some international events. The country is hosting a
series of international sporting events which is likely to boost the industry and increase

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sports awareness. Also, sports promotion, training and infrastructure, and exports of
sports goods are now the focus areas of the Indian government.

In India, sports are treated as a recreational and leisure activity. As income increases,
expenditure on recreational and leisure activities also increases. In the recent years, the
consumption of food and basic necessities is declining, while spending on recreational
activities is increasing.
The government wants to develop India as a sourcing hub for sports goods, apparel and
footwear. For this, 100 percent FDI is allowed in manufacturing of sports product. The
focus of the government’s policy in manufacturing is on exports and not on the domestic
market. The government has created special economic zones where manufacturers get
various tax exemptions on export income and easier clearances among others. The sports
goods and toys sector has a special focus in the Foreign Trade Policy (2009-14) and is
treated as a priority sector under the Marketing Development Assistance and the Market
Access Initiative schemes. The allocations for these schemes have been increased.
Applications relating to sports goods and toys are given fast-track clearance by the DGFT
(Directorate General of Foreign Trade). There are duty exemptions on the import of
footwear machinery, and concessions have been given to the import of sports vehicles,
such as golf carts for hotels, travel agents and tour operators to promote the tourism
industry in general and golf tourism, in particular. For technological up gradation in the
apparel sector, the EPCG (Export Promotion Capital Goods) scheme offers zero duty for
capital goods imports. To promote modern retail infrastructure, concessional duty
benefits under the EPCG scheme have been extended to the import of capital goods
required by retailers that have a minimum area of 1,000 sq. meters‟; retailers availing of
this scheme will have to fulfil export obligation criteria.

Apart from these, the Foreign Trade Policy emphasized on the promotion of Indian
brands in international markets, simplification of the procedures for imports/exports,
improvements in infrastructure related to exports, and reduction in transaction costs.
When the Indian exporters were hit by the global slowdown, government announced

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stimulus packages to revive the sector. The retail sector in India has received a shot in the
arm by the Indian Governments recent policy decision to allow Foreign Direct
Investment (FDI) of up to 51% in multiband retail and up to 100% in single brand retail.
Given that 95% of the sector constitutes unorganized retail consisting largely of „mom
and pop‟ stores, the Government have treaded cautiously by building adequate
safeguards for the domestic stakeholders in the unorganized sector. Foreign investments
in retail will have to go through Government approval first. The policy mandates a
minimum investment of $100 Million with at least half the amount be invested in
backend infrastructure, including cold chains, refrigeration, transportation, storage,
packaging etc. Further, foreign retailers will have to source a minimum 30% from the
Indian small and micro industry. Another key policy initiative to safeguard
small/unorganized sector retailers is that FDI is being allowed only in 53 cities having a
population of over 1Mn out of nearly 8000 cities/towns in India. Finally in India’s federal
structure, retail trade is a state level‟ regulation and it will be up to the states to allow
foreign participation in the respective 53 cities within their states.

COMPETITOR ANALYSIS

Competitors of Decathlon Sports India Private Limited are:

All the Sports company in India especially the International sports brands are the major
competitors of Decathlon Sports India Private Limited. Some of them are:

YONEX

The company was founded in 1946 byMinoru Yoneyamaas a producer


ofwoodenfloatsforfishing nets. The company was later forced out of this market because of
the invention of plastic floats. This led to a commitment by Yoneyama to never again be
left behind bytechnologicaladvancements.

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In 1957, Yoneyama began to make badminton racquets for other brands. By 1961, the first
Yoneyama-branded racquet was introduced, and within another two years an export
company was created for the worldwide distribution. After the company began to
makealuminumbadminton racquets in 1969, it found that the same technology could be
applied to thetennis racketwhich the company introduced in 1971. The company began to
experiment withgraphiteshafts for both types of rackets and found that these would also be
useful for golf clubs.

In 1982 YONEX came out with the new oversized tennis racquet in the REX-series with R-7
and R-10. At that time Martina Navratilova played with R-7 and very successful. Then one
year later the new series Rex king was developed with the R-22.

In 1988 you could suddenly see Martina Navratilova with a new YONEX in her hands it was
the white RQ 180 widebody frame, with Martina won a couple of tournaments. She played
this racquet until the early '90s.

Finding a growing market, the Yonex Corporation (a wholly owned subsidiary) was
established inTorrance, Californiain July 1983. In 1992 Yonex introduced the widebody
badminton racket, the "Isometric 500", a racquet that was much less "tear drop"-shaped than
previous ones. The more "square" head gave it a much larger striking surface, which
provides a larger "sweet spot" to hit the shuttle. It led other manufacturers to follow suit in
"square-head" orisometricdesigns.

LI-NING

The company was founded in 1989 byLi Ning, a former Chinese Olympic gymnast. As of
2015, Li Ning remains the Chairman of the company's Board of Directors. In 2005, Li-Ning
created a joint-venture with French sports apparel company,AIGLE, giving Li-Ning the
exclusive right to be the sole distributor of AIGLE's products in China for 50 years. As of
March 2007, there were 4,297 Li-Ning retail stores. The company directly owns some of the
retail stores while others are franchised.

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In January 2010, Li-Ning opened its U.S. headquarters and flagship store inPortland,
Oregon. In 2010, as part of the 'Revitalization' of the brand, Li-Ning released a new logo and
the new slogan "RàngGǎibiànFāshēng" in Chinese, translated to "Make The Change" in
English. In January 2011, Li-Ning entered into a partnership with Chicago-
basedAcquityGroupto expand its U.S. distribution and brand awareness.

In April 2012, Li-Ning was awarded the highest distinction of "Outstanding Contribution to
Quality Standardization Award" in knitwear division at the Third National Textile
Standardization Technical Committee's inaugural meeting held inZhuhai,Guangdong. In
September 2012, Li-Ning signed into a partnership with NBA playerDwyane Wade.

In 2013, The Group recorded revenue of RMB2,906 million, which represents a decrease of
24.6% year-on-year, due to near-term focus on sell-in reductions, inventory clearance, and
reducing the number of stores. The Group projected a net loss of up to 820 million yuan for
2014, the third straight year where it was unprofitable.

COSCO

The company incorporated or came into existence on 25 January 1980 under The Companies
Act 1956. The company was a sister concern of Enkay India Rubber Company Pvt Ltd,
which is also engaged in producing sports products for a number of years.

It was a private company until 15 March 1994 after which the company was transformed
into a Public Company. After incorporation of the company it took over the partnership Firm
Coronation Sporting ball Co., which started operating in 1976 and was engaged in the
production of Sporting Balls. The company's shares are issued in India's Stock Exchanges
(BSE and DSE).

The company is also associated with The World Federation Of The Sporting Good Industry,
The Sport Goods Export Promotion Council and with The Sports Goods Foundation Of
India.

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Most of the Tournaments in India use Cosco sports products. It has managed to retain its
place in the market for producing good quality sport and fitness equipments. Cosco was the
official sports partner for the 35th National Games Kerala, 2015 for Football, Table Tennis
and Hand Ball that were held from 31 January 2015 to 14 February 2015

1.3 PROFILE OF DECATHLON SPORTS INDIA PVT LIMITED

History of the company

Decathlon is a majorFrenchsportinggoods chainstore,with stores located throughout the


world. It started with a shop nearLille,France in 1976. It expanded toGermanyin
1986,Spainin 1992 and the United Kingdomin 1999. It entered theAmericanmarket by
purchasing theNew England20-store MVP Sports chain in 1999, rebranding them as
Decathlon USA. A restructuring led to all but fourMassachusettslocations closing in
2003. In September 2006, Decathlon announced its decision to exit the US altogether by
year’s ends.

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The retailer stocks a wide range of sporting goods, fromtennis racquetsto
advancedscubadivingequipment, usually in large superstores. Decathlon Group also owns
20 brands, withresearch and developmentfacilities all over France to develop the latest
innovative designs, registering up to 40 patents per year. Each brand represents a different
sport or group of sports, with a dedicated product development and design team.
Decathlon's focus on creating innovative products is evident with the company owning
the third-largestR&Dfacility in France, with the largest being owned by the military and
second-largest by automakerRenault.

Through innovation and low prices made possible by the ownership of the entire supply
chain, Decathlon seeks to make the pleasure and benefits of sports accessible to all.

PRODUCT LINES

The chain develops and sells its own brands. Each group of activities has a
separatebrandname:

• APTONIA - Nutrition and health care

• ARTENGO - Racket sports

• B'TWIN - Cycling

• CAPERLAN - Fishing

• DOMYOS - Fitness, dance, martial arts and contact sports

• FLX - Cricket

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• FOUGANZA - Horse riding
• GEOLOGIC - Outdoor sports, archery and darts

• GEONAUTE - Sports & Electronics

• INESIS - Golf

• KALENJI - Running

• KIPSTA - Team sports

• NABAIJI - Swimming

• NEWFEEL - Walking

• OXELO - Roller, skate and ice sports

• Quechua - Mountain and outdoor sports

• ROCKRIDER - Mountain biking

• SIMOND - Mountaineering

• SOLOGNAC - Hunting

• TRIBORD - Water sports

• WED'ZE - Skiing, snowboarding

• MYSPORTEEZY - Event organization (birthday, corporate day...)

Decathlon has also developed brands for components which provide technical support for
the products of its passion brands:

• EQUAREA - Clothing designed for the active removal of sweat

• ESSENSOLE - Shoe soles and insoles

• NOVADRY - waterproof and breathable clothes

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• OUTCHOC - Sport protection

• STRATERMIC - Warm and light clothes

• STRENFIT - Light and Robust Synthetic fabrics

• SUPPORTIV - Support and compression

Vision Statement

Make the pleasure and benefits of sport accessible to many.

Mission statement

To provide sports products and facilities with high quality with low prices.

At Decathlon, they love all sports and all those who play and practice sports. They offer
sports enthusiasts products and solutions to each of their level, their rhythms and their
demands.

They believe that the pleasure and benefits of sports contribute to the good health,
balanced education, social integration and sustainable development the world over. In
India it is their aim to do their best to help more and more Indians play more by paying
less for their sports equipment

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Departments :

 Production Department

 Operations Department

 Logistic Department

 Finance Department

 Human Resource Department

 IT Department

EXPANSION PLAN:

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Brief Analysis

These points can be considered as the strengths of decathlon all over the world :

1. Stores located throughout the world with 800 stores all over

2. Group is largest sporting goods reseller in domestic market

3. Large variety of sports goods in affordable pricing for all classes of consumers

4. Own private label brands to get high brand recall

5. Strong and innovative marketing since years have created a strong brand retention in
the minds of customers.

These are the major flaws of decathlon:

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1. Limited global presence as compared to leading global companies

2. E- retailing is gaining importance but still company has limited presence on the same

Scope for the firm to develop and increase the market share:

1. Brand building by tie-up with emerging clubs/teams/players

2. Company has opportunity to innovate on technology front to design new products

3. Creating high brand awareness by exploring advertising media tactically

Major problems faced by decathlon are as follows:

1. High inflation doesn't give opportunity of cost advantage in competitive environment

2. High competition from global and domestic players

3. Threats further brands who provide goods at lower price

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CHAPTER 2

2.1 REVIEW OF LITERATURE

In this chapter an attempt has been made to review the related literature on the previous
studies, to identify the research gap. The literature reviews on the previous studies made
has been synchronized in the following manner.

Reviews of related studies in India

Reviews of related studies in Abroad

Farquhar, Peter H (1994). Understanding the implications of these 3 strategic elements is


essential in preparing for the branding challenges of the next century. Highly credible
brands can be reduce the perceived risk of buying products or services where features
cannot readily be evaluated prior to purchase. There are 4 basic branding strategies for
surviving the next century, including: 1. Differentiate brands along new dimensions that
are both relevant and important to consumers. 2. Fortify brands with “breakthrough”
goods and services that leapfrog current products in the market. 3. Integrate the brand
offering with those of channel partners and other solutions providers. 4. Create alternate

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channels of distribution for the brand to appeal to new customers and open access to
traditional channels.

Nandagopal and Chinnaiyan (2003) in their article “Brand preferences of soft drink in
rural Tamil Nadu” studies that the level of awareness among the rural consumers about the
brand of soft drinks was high which was indicated by the mode of purchase of the soft
drinks by “Brand Name.” The major sources of brand awareness was word of mouth
followed by advertisements, family members, relatives and friends Gilpatrick D. Hornsby
(2005) says that the country of origin has the great influence on brand preference. The
study also find outs the other factors that influence brand preference. The study included
516 responses with 40 unusable surveys leading to a 57% usable response rate. Results
were gained through descriptive statistics and organized by scenario situation. The factors
are Price, Appearance and Country of origin

Banumathy and Hemameena (2006) on their article “Analysis of brand preference of soft
drinks in the global environment” while studying consumer brand preference with respect
to soft drinks, found that after globalization most of the consumers like the international
brands such as Pepsi and Coca-Cola. Consumers preferred a certain brand or a particular
drink mainly because of its taste and refreshingability24.

Luca Petruzzellis (2010), referred and concluded that technology nowadays is overcome
by customer preferences and needs. In particular, the role of the brand is to be analysed
with respect to its influence in shifting customers preferences from the technical
performances (tangible elements) to the emotional/ symbolic ones (intangible elements).
The researchers had provided an analysis of the brand attitude and perception tested and
viewed through user eyes.

Annamalai Solayappan, Jothi Jayakrishnan (2010) on their article “Customer Preference


For Branded Computers with Special Reference to Post Graduate Students” noted that
purchase decision making is a complex amalgam of needs and desire. It is influenced by
factors such as consumer’s societal role, social and cultural environment, aspiration and
inhibitions. In this article, they researcher’s tries to find out the customer preference for

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branded computers. Exploratory research has been made with postgraduate students of
various discipline in leading institutions in Chennai to find out the most important factors
influencing the purchase of branded computers. After the influencing factors are
identified, a self-structured questionnaire has been developed with 5 point scale. It was
circulated to the postgraduate students of Arts, Science and Professional courses. Factors
analysis and ANOVA have been employed to establish the important influencing factors
on the purchase of branded computers and differences of opinion among the students.
According to this study, Quality, Specification/ Configuration, Reasonable price, Credit,
Service, Experience person, Offers, Style, Guarantee, Warrantee and Product availability
are the inducing factors for the purchase of branded computers amongst post graduate
students of Chennai13.

Saaksjarvi and Samiee (2011) examined the relationship among brand identity, brand
image and brand preference in the context of cyber and offline-based extension retail
brands over time. They examined a conceptual model with survey data collected over
three time periods and found out that offline-based extension brands had an advantage
over cyber brands when it came to translating a brands identity into a successful brand
image, especially in the early internet stages.

Ahmed Alamro, Jennifer Rowley, (2011) explored that there are 11 antecedents of brands
preferences, these can be theoretically clustered into three groups: awareness antecedents
(controlled communication ‘advertising’, and uncontrolled communication ‘publicity,
word of mouth’), image antecedents (service value attributes ‘price, quality’, provider
attributes ‘brand personality, country of origin, service employee + location’ and,
customers attributes antecedents ‘satisfaction, perceived risk, and reference group’.
Multiple regression showed the contribution of each of these antecedents to brand
preference.

Bart J. Bronnenberg (2011) in their study “The evolution of brand preference evidence
from consumer migration” evaluated that the brand preferences, using new data on
consumers life histories and purchases of consumer packaged goods. Variation in where
consumers have lived in the past allows us to isolate the causal effect of past experience
on current purchases, holding constant contemporaneous supply-side factors. We show

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that brand preferences form endogenously, are highly persistent, and explain 40% of
geographic variation in market shares. Counterfactuals suggest that brand preferences
create large entry barriers and durable advantages for incumbent firms, and can explain
the persistence of early mover advantages over long periods58.

AttiyaKanwal (2011) on his study “Consumer preferences of international brand over local
brands” aimed at determining consumer preferences of international brands instead of
national and local brands. If a consumer is a satisfied with a product, he will but it again,
become loyal and over time develop a relationship with the brand. There are various
factors which influence consumers purchase decision. The price of a brand plays a
fundamental role in the consumers choice of brand. If a brand is priced too high then a
consumer will avoid it. The price of a brand is an indication of the quality of the brand as
well. The country of origin of products is another cue used as a sign of quality of a
product. Products from developed countries are perceived to be of better quality. Other
factors include fashion, family and friends, brand name, availability, advertising campaign
etc. The sample for this research is taken from Islamabad and Rawalpindi. Simple random
sampling was the technique used and the sample size was 100. Data collected for research
was through a questionnaire, which was distributed among both males and females of
various age groups and income levels. Calculations were then analysed and interpreted
using percentage of respondents and frequency distribution.

Malviya et al (2013) said about brand preference on the basis of research conducted on
“The factors influencing consumers purchase decision towards smart phones in Indore.”
The basic purpose of the research is to identify the key factors which have a dominating
effect on the consumers mind while making a purchase of smartphone. The collected data
were analysed and interpreted using chi-square, reliability analysis, Factor analysis,
Confirmatory factor analysis. It was found that data is reliable for factor analysis. The
measurement model suggested four factors price, brand preferences, social influence and
features having a dominant influence on the purchase decision of consumers in Indore to
identify the prominent emotions customers associated to the utility vehicle. The study
identified the six factors that influence brand preference they are Product reliability,
Monetary factor, Trendy appeal, Frequency of non-price promotions offered,
trustworthiness and customer feeling or association towards brand.

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Brand associations are a core part of consumers based brand equity (CBBE), and
behavioural brand loyalty is a desirable outcome of CBBE. The finding also showed that
share of category requirements is a greater driver of brand association responses than
buying frequency. This finding suggested that the use of competitors has a greater
dampening effect on brand associations than the reinforcement effect of repeated brand
buying. These results have important implications for modelling brand associations,
particularly using cross-sectional data. (Jenni Romaniuk, Magda Nenycz- Thiel, 2013).

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CHAPTER 3

3.1 TITLE OF THE STUDY

A STUDY ON CUSTOMER PREFERENCE FOR “ARTENGO” BRAND


BADMINTON RACKETS AT DECATHLON

3.2 BACKGROUND OF THE STUDY

Sportswear has become a common and popular category among young people as it
identifies them with a more relaxed lifestyle, greater versatility and comfort. This has
prompted manufacturers to start expanding their business particularly in Asia as it has the
potential to give them higher volume of sales for their products. On a smaller study I
came to know that customers are not adequate when compared to the size of the store.
Hence, I decided to study the subject deeply so that it will be beneficial for the store.

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3.3 STATEMENT OF PROBLEM

It is observed that inadequacy of prospective customers is the problem faced by the


Decathlon OMR Padur. This study is to formulate suitable strategies to increase the
customer awareness regarding Artengo brand of the decathlon store at OMR Padur.

3.4 SIGNIFICANCE OF THE STUDY

Competition in the sports market is very much increasing today because of the increasing
number of competitors or alternatives. It resulted in rising trend of brand switching
among consumers. So it is important for the marketers to get more information about the
factors that affect brand loyalty, so that it could help them to develop brand loyal
behaviour among their potential customers. As such from the study we can provide
useful information to Artengo brand for developing competitive brand strategies based
on the effect of above mentioned loyalty factors in the Indian scenario.

The study examines the factors that influencing the brand loyalty of sports consumers in
OMR Padur. If the hypotheses are true, the study would uncover a potentially important
relationship of Brand loyalty of sports consumers with product quality, price, Brand
name, store environment and service quality.

3.5 Objectives of the study

 To study the consumer preference towards Artengo brand of decathlon store at


OMR Padur.

 To identify the prospects who are likely to purchase sports gears from decathlon.

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 To formulate marketing strategies for store on the basis of customer feedback

3.6 SCOPE OF THE STUDY

The study intends to know the flaws of the marketing strategies adopted by Decathlon
and to make suitable suggestions to improve the customer base thereby to increase the
sales.

3.7 LIMITATION OF THE STUDY

 The duration of the project was one of the primary constraints for the project

 It was an academic effort and limited the cost

 Number of respondents were restricted due to the time factor.

3.8 RESEARCH DESIGN

The research design is survey type and the nature of the study is descriptive.

Population : Customers visiting Decathlon OMR Padur.

Data collection: The data was collected from the respondents using a structured
questionnaire.

Tool for data collection:The primary tool which was used for data collection was
questionnaire. It was a structured questionnaire which consist of series of question
related to the objective of the study

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3.9 METHOD OF DATA COLLECTION

DATA SOURCES

Primary data

Data used in the study is the Primary data. Primary data are the actual information,
which are received by researcher for study from the actual field of research. The
data collected through interview and observation is called primary data because
the researcher attains them from the field of research directly and for the first time.

3.10 SAMPLING DESIGN

Sampling method : The sampling method being used is convenient sampling.

Sampling Unit : The sampling unit is the individual users of sports products.

Sample size : 200

3.11 STATISTICAL TOOLS USED

The statistical tools used in this project are percentage analysis.

PERCENTAGE ANALYSIS

Percentage method refers to a specified kind of which is used in making comparison


between two or more series of data. Percentage are based on descriptive relationship. It
compares the relative items. Since percentage reduces everything to a common base and
there allow meaning comparison.

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Percentage = Number of respondents × 100

Total no.of respondents

3.12 CHAPTERISATION SCHEME

The first chapter includes the introduction statement of the problem, objectives of the
study, research methodology data collection tools and chapterization scheme

The second chapter devoted for the review of literature

The third chapter describes the title of the study

The fourth chapter consists of the data analysis and interpretation of the study

The fifth chapter presents the summary of the findings, suggestion and conclusion

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CHAPTER 4

DATA ANALYSIS AND INTREPRETATION

4.1 INTRODUCTION

Data analysis focuses on how to use statistical teste as a key tool for analysing research
data. This chapter presents the entire data analysis process as a cyclical, multiphases
process and addresses the processes of exploratory analysis, decision-making for
performig parametric or nonparametric analysis, and practical significance determination.
And it is details how data analysis is used to reveal the underlying patterns and
relationships between the variables and connects those trends to the data’s contextual
situation.

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4.2 ANALYSIS OF DATA COLLECTED FROM THE RESPONDENTS

The aim of this module is to give an overall view of some of the principles of effective
data analysis. The focus is on how we summaries data to the uncover patterns and
relationship between variables and how these relationships can begin to explain the value
of the variables that we observe.

It is the systematic approach to investigate during which numerical data is collected and it
transform what is collected or observed into numerical data. It often describes a situation
or event, answering the ‘what’ and ‘how many’ question you may have about something.

Sample size taken in this project was 200 customers. The goal was to achieve 200
responses to gain reliable data. The results presented below.

TABLE 1: RESPONDENTS ON THE BASIS OF GENDER

GENDER NUMBER OF PERCENTAGE


RESPONDENTS

Male 180 90%

Female 20 10%

Total 200 100%

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Gender
Male Female

10%

90%

Inference: It is clear from above figure that majority of respondents were male which
contributed 90% and females 10%. The reasons for the difference may be either the males
are more passionate towards sportswear brands or their willingness to fill the
questionnaire was much more than females who were mostly concentrated on shopping
sports gears.

TABLE 2: RESPONDENTS ON THE BASIS OF AGE

AGE FREQUENCY PERCENTAGE

15-25 81 40.5%

25-35 55 27.5%

35-45 38 19%

45-55 26 13%

Total 200 100

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Age
13%

40.5% 15-25
19% 25-35
35-45
45-55

27.5%

Inference: It is clear from above figure that majority of respondents fall in the age group
of 15-25 i.e. 40.5%, 27.5% falls in the age group of 25-35, 19% falls in the age group of
35-45 and13% falls under the age group of 45-55.

TABLE 3: RESPONDENTS ON THE BASIS OF OCCUPATION

OCCUPATION NO. OF PERCENTAGE


RESPONDENTS
Government 30 15%
Servant
Service Sector 20 10%

Business 80 40%

Housewife/Studen 60 30%
t
Others 10 5%

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Total 200 100%

OCCUPATION
90
80
70
60
50
40
30
20
10
0
Government Service Sector Business Housewife/Student Others
Servant

Government Servant Service Sector Business Housewife/Student Others

Inference: From the above graph, it is identified that most of the customers belongs to
Business and Housewife/Students.

TABLE 4: RESPONDENTS ON THE BASIS OF MONTHLY FAMILY INCOME

INCOME FREQUENCY PERCENTAGE

>10000 18 9%

10000-20000 52 26%

20000-30000 59 29.5%

30000-40000 41 20.5%

<40000 30 15%

TOTAL 200 100%

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INCOME
>10000 10000-20000 20000-30000 30000-40000 <40000

>10000 10000-20000 20000-30000 30000-40000 <40000

Inference: Customers who visit Decathlon mostly belong to middle class and upper
middle class.
TABLE 5: RESPONDENTS ON THE BASIS OF BADMINTON
RACKETBRANDS

BRANDS FREQUENCY PERCENTAGE

Yonex 180 90
Li-ning 142 71
Artengo 44 22
Silvers 80 40
Cosco 60 30
Victor 50 25
Other 12 12

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Yonex
100%
LI-ning
80%
Artengo
60%
Silvers
40%
Cosco
20%
victors
0%
Other
Known brand

Inference: Yonex was the most recalled brand followed by Li-Ning and silvers.
Artengo had comparatively lower recalls.

TABLE 6: IMPORTANCE OF A GRAPHITE RACKET FOR PLAYING


REGULARLY

RESPONSE FREQUENCY PERCENTAGE

I can't go without graphite 53 26.5


racket

I can go but I prefer having 112 56


graphite racket

I don't use graphite racket 20 10


I would like to have but 15 7.5
haven't found a suitable one

TOTAL 200 100%

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60
I can't go without graphite racket
50
I can go but I prefer having
40 graphite racket

30 I don't use graphite racket

20 I would like to have but haven't


found a suitable one
10

Inference: Table 6 shows that most of the respondents said that they can go without
graphite rackets but they prefer to have it but the next majority said that they can’t go
without graphite rackets.

TABLE 7: FREQUENCY OF PLAYING BADMINTON

RESPONSE FREQUENCY PERCENTAGE

More than thrice a week 32 16%

Once a week 93 46.5%

More than twice a month 47 23.5%

Once a month or less 28 14%

TOTAL 200 100%

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Playing Frequency

more than thrice a week


once a week
more than twice a month
once a month or less

Inference: From Table 7 it is understood that 46.5% of the respondents practice sports
once a week. 3

TABLE 8: WILLING TO BUY BADMINTON RACKETS IN THE NEXT


6 MONTHS

RESPONSE FREQUENCY PERCENTAGE

YES 48 24%

NO 152 76%

Total 200 100%

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PURCHASE IN THE NEXT 6 MONTHS
90%

80%

70%

60%

50%
YES
40%
NO
30%

20%

10%

0%
YES NO

Inference: It is understood from the data 76% of the respondents have no plan to buy
badminton rackets in the next 6 months. 26% of respondents is planning to buy.

TABLE 9: BUDGET FOR FUTURE PURCHASES

PRICE FREQUENCY PERCENTAGE

>1000 24 12

1000-3000 113 66.5

3000-5000 28 14

5000-7000 21 10.5

<7000 14 7

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TOTAL 200 100%

PERCENTAGE
70

60

50 >1000
1000-3000
40
3000-5000
30 5000-7000
20 <7000

10

0
>1000 1000-3000 3000-5000 5000-7000 <7000

Inference: The respondents prefer to buy by spending in between 1000 to 3000. Only
less respondents are willing to pay more or less.

TABLE 10: BRANDS CONSIDER FOR THE NEXT PURCHASE

BRANDS FREQUENCY PERCENTAGE

Yonex 48 24%
Li-ning 26 13%
Silvers 18 9%
Artengo 59 29.5%
Cosco 12 6%
Victor 32 16%
Other 5 2.5%

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TOTAL 200 100%

30

25 Yonex
Li-ning
20
Silvers
Artengo
15
Cosco
10 Victors
Others
5

0
Brands consideration

Inference: Among the respondents 29.5% said that, they will go for Artengo in next
purchase.

TABLE 11: FACTORS AFFECTING THE PURCHASE

FACTORS FREQUENCY PERCENTAGE

Quality 80 40%
Design 60 30%
Durability 40 20%
Discount 55 22.5%
Warranty 77 38.5%
Advertising 30 15%
Price 70 35%
Other 10 5%

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Inference: From the data it is understood that respondents want quality product for the
money they spend. Warranty, price and design falls under quality.

TABLE 12: AWARENESS ABOUT DECATHLON


MODE FREQUENCY PERCENTAGE

Newspaper 4 2%
Online ADVT. 14 7%
E-commerce 14 7%
website 4 2%
Referral by family/friends 58 29%
Outdoor hoardings 50 25%
Spotted the store 56 28%
TOTAL 200 100%

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SOURCE OF AWRENESS Newspaper
2% 7% Online ADVT.
7%
28%
2% E-commerce

website

Referral by
29%
family/friends
Outdoor hoardings
25%

Inference: Majority of the respondents get to know about Decathlon from referral by
others. Outdoor hoardings and spotted store are the next ways.

TABLE 13: BRAND AWARENESS OF RESPONDENTS

BRANDS FREQUENCY PERCENTAGE

Domyos 60 30%
FLX 74 37%
Nabaji 36 18%
Newfeel 28 14%
Quechua 150 75%
Btwin 134 67%
Kalenji 40 20%
Aptonia 60 30%
All of them 24 12%

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Inference: Quechua and B-Twin are the most known brand among the respondents. Only
24 respondents knows all of the brands from Decathlon.

TABLE 14: MODE OF BUYING

MODE FREQUENCY PERCENTAGE

ONLINE 40 20%

PHYSICAL STORE 160 80%

Total 200 100%

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8487580

PERCENTAGE

80%

70%

60%

50% ONLINE

40% PHYSICAL STORE

30%

20%

10%

0%
ONLINE PHYSICAL STORE

Inference: Among 200 respondents 80% prefer to purchase from the physical store and
the rest prefer to by online that is 20%.

TABLE 15: RECOMMENDATION OF DECATHLON TO OTHERS


RESPONSE FREQUENCY PERCENTAGE

YES 110 55%

MAY BE 60 30%

DON’T KNOW 30 15%

TOTAL 200 100%

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PERCENTAGE

60%

50%

40% YES
MAY BE
30%
DON’T KNOW
20%

10%

0%
YES MAY BE DON’T KNOW

Inference: Most of the respondents are willing to recommend Decathlon for others that is 55%.
But the next majority is not sure about it.

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CHAPTER 5

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5.1 FINDINGS

 The overall result shows that all the factors that have been taken for study are

important for the consumer acceptance of Decathlon store, OMR Padur.

 In those factors; warranty, quality, price are the factors which are most crucial.

 It is revealed that Brand name is the factor which is less influencing on minds of

customers. Because this brand name is not so popular among Indian customers

especially in OMR Padur.

 The study identifies that Males are more brand conscious why because majority of

the respondents are male.

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 It also came in to light that sports professionals recognizing the store as an

important sports store because all the sports items can be purchased from a single

roof.

 Youngsters especially students are becoming more focused to buy products from

Decathlon.

 Decathlon is not very popular in this part of India, because of lack of advertisement

and sales promotion activities.

 The study revealed that the customer base of Decathlon is very week.

5.2 SUGGESTIONS

As it was found that product quality, price, store environment and service quality are the
crucial factors of brand acceptance so they should focus more on these factors to retain
their acceptance among the Indian customers.

 There should be no compromise in quality as the most important influencing factor

for customers to buy is product quality.

 Brand name should be given equal importance like the other crucial factors

mentioned above because as brand name gets popularized in the coming years it
will add growth to the overall brand.

 The market trend has to be monitored always and also the consumer preferences

have to be updated accordingly.

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 As the competition in the sports market is increasing day by day Decathlon should

start promoting their brand through advertisements and also through conducting
promotional activities and sponsorship in major sports events

 The company should organize community specific events at grass root level to

promote unconventional sports like roller skating, squash, Table Tennis etc. This
would help the company in long term as a new set of customers would emerge to
buy their products.

5.3 CONCLUSION

From the study it is understood that Price, Product quality and Service quality are the
most crucial factors that makes the customer to buy products from Decathlon.

Decathlon which is a new term to the customers compared to other sports stores. Brand
name doesn’t have that much effect on customers of the region. The brand’s design and
functional quality makes sport professional love the brand. At the same time, more hope
for the brand is that students are getting very much attracted to the brand now. It can be
identified from the respondents, majority of the male respondents are between the ages of
15-25. This opens a great market for the brand. So Decathlon, one of the most popular
sports brands in western countries can repeat the history in India also by focusing on
these factors. After a year or two the brand also can make its own influence on the minds
of Indian customers.

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5.4 LIMITATIONS OF THE STUDY

 The study was conducted among 200 respondents. Increase in number of

respondents may give different results.

 The time period was limited to less than one month. Extension of the time period

will allow the researcher to go more deeply in to the research.

 The study was limited to OMR Padur. If it was done with in a region as a whole

like southern region of India/ northern India, then the study can come out with
more interesting results.

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BIBLIOGRAPHY

BOOKS

1. Kothari, C.R; Research Methodology, New Age International (P) Ltd Publishers,
New Delhi, 2004.

2. Sharma, D.D; Marketing research, Sulthan Chand & sons; 2002.

3. Retail Management, Chetan Bajaj, Rajinish Tuli, Nidhi V Srovastava.

4. Kotler. P (1994) Marketing Management: Analysis, Planning, Implementation and


Control, 8th Edition, Prentice Hall Inc., New Jersey.

5. Marketing Management, Philip kotler

JOURNALS

1. Bhardwaj RK, Makkar U (2007). Retail Revolution- Emerging Challenges and


Issues, Journal of Institute of Management Studies Group.

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2. Brennan DP, Lundsten L (2000). Impact of Large Discount Stores on Small US
Towns; Reasons for Shopping and Retailer Strategies. Int. Journal of Retail
Distribution Management.

3. Dalwadi R, Rathod HS, Patel A (2010). Key Retail Store Attributes Determining

Consumer‟s Perceptions; An Empirical Study of Consumers of Retail Stores


Located in Ahmadabad (Gujarat). SIES Journal of Management.

4. Fam KS, Merrilees B, Richard JE, Jozsa L, Li Y, Krisjanous J (2011). In-store


marketing; a strategic perspective Asia Pacific Journal of Marketing and
Logicistics.

5. Goldman A (2001). The transfer of retail formats into developing economics; the
example of China. Journal of Retail.

WEBSITES

1. www.decathlon.com

2. www.decathlon.in

3. www.wikipedia.com

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QUESTIONNAIRE

1. Gender of the respondent

Male □ Female □

2. Age of the respondent

Below 25 □ 25-35 □ 35 -45 □ 45-55 □ above 55 □

3. Occupation of the respondent

Government Servant □ Service Sector □Business □ Housewife/Student □ Others □

4. From the following list select the brands that make badminton rackets that you are
aware of?

Yonex □ Artengo □ Li-ning □ Silvers □ Victor □ Cosco □ Other □ _______

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5. What is your monthly income?

<10000□ 10000-20000□ 20000-30000□

30000-40000□ >40000□

6. How important is having a graphite rackets (22-28lbs tension) for playing regularly?

I can't play without graphite rackets □ I can play but i prefer graphite rackets □

I don't use graphite rackets □ I would like to use but haven't found a suitable one □

7. How often do you play badminton?

More than thrice in a week □Once a week □ More than twice in a month□ Once in a
month □

8. Do you plan to buy a racket in the next 6 months ?

Yes □ No □

9. What would be your budget for any future purchases?

Less than 1000 □ 1000-3000 □ 3000-5000 □ 5000-7000 □ above 7000 □

10. Which of the following brands will you consider whenever you buy your next racket?

Yonex □ Artengo □ Li-ning □ Silvers □ Victor □ Cosco □ Other □ _______

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11. Which of the following factors affect your purchase?

Quality□ Design□ Durability□ Discount □Warranty □Advertising □Celebrity□

Others □_______

11. How did you come to know about decathlon brand?

Newspaper □ Online Advt.□ E-commerce□ website □ Referral by family/friends □


Outdoor hoardings□ spotted the store□

12. Which of the following products does decathlon sell according to you ?
Domiyos □ FLX □ Nabaji □Newfeel □ Queuchua □ Btwin □ kalenji □ Aptonia □ All of
them □

13. Do you prefer buying decathlon products online or at a physical store? Why?

Online □ Store □
Why:__________

14. Would you recommend decathlon products to others:

Yes definitely □ May be □ No □ Don't know □

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