Consumer Preference for Fabindia

Pearl Academy, New Delhi

Fashion Business Management (2014-2018)

Research Methods II

Consumer Preference for Fabindia

Submitted to

Mrs. Vasundhra Gupta/Mrs. Usha Aggarwal

Submitted by

Himali Lalwani, Shreya Tewari and Akshit Gulati

Acknowledgement We would like to acknowledge a number of valuable contributions to this project.

First and foremost, we would like to express our sincere gratitude towards our mentors Mrs. Vasundhra Gupta and Mrs. Usha Aggarwal without whose valuable guidance and support, it would have been impossible to make this project. Their valuable inputs during the log process were helpful and enriching. They have been a consent source of inspiration, guidance, support and encouragement.

We would like to pay our regards and thanks to library members, Pearl Academy of Fashion for giving us constant and all possible support whenever asked for.

Last but not the least we would like to thank our family and friends for providing us the moral support during the course of this report.

Table of Contents 1. Executive Summary 2. Background Study 2.1 Introduction 2.1.1 Origin 2.1.2 History 2.1.3 Vision 2.1.4 Mission 2.1.5 Philosophy 2.1.6 Organic Certification 2.1.7 Sales Analysis 2.2 Marketing Mix 2.2.1 Product 2.2.2 Place 2.2.3 Price 2.2.4 Promotion 2.3 Competitors 2.3.1 Khadi Gramudyog 2.3.2 Central Cottage Industries Emporium 2.3.3 Anokhi 2.3.4 Kilol 2.3.5 Good earth 2.4 Competitors’ Edge 2.5 Primary Study 2.6 SWOT Analysis 2.7 PEST Analysis 3. Literature Review 3.1 Home Furnishings 3.2 Organic Food 3.3 Personal Care Products 3.4 Consumer 3.5 Consumer Behavior 3.6 Consumer Behavior in Context of the Products 3.7 Promotion 3.8 Types of Promotion 3.9 Knowledge Gap 4. Research Methodology

1 2-12

13-18

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5.

6.

7.

8.

9.

Data Analysis and Findings Conclusion and Recommendations References Bibliography Annexure

List of Tables 1. Sales Analysis 2. Products of Fabindia 3. International Presence of Fabindia 4. Products of Khadi Gramudyog 5. Products of Central Cottage Industries Emporium 6. Products of Anokhi 7. Products of Kilol 8. Products of Good earth 9. Competitors’ Edge 10.Testing for mean 11.Testing for mean 12.Chi-square 13.Annova

List of Graphs 1. Sales Analysis 2. Reasons for Buying Organic Food 3. Demographic Factors 4. Psychographic Factors

List of Figures 1.

2.

3.

4.

5.

John Bissell Organic Certification Home furnishings Organic food Personal care products

19 37 37 38 40

Executive Summary Fabindia has a wide variety of product lines ranging from garments to home furnishings. The brand has a good footfall in comparison to its competitors like Khadi Gramudyog, Good earth, Kilol, Anokhi and Central Cottage Industries Emporium. However, it is observed in the following study that out of all the product lines of Fabindia, home furnishings, organic food and personal care products are less preferred than product lines like garments, accessories and gift sets.

Promotion refers to the activity which helps in communicating the product, brand or any service to the consumers. After the primary and secondary research, it was found that Fabindia lacks in promoting the home furnishings, organic food and personal care products less than its other major product lines.

The research has been done accordingly and it is recommended that Fabindia should expand itself by opening separate or more stores for home furnishings, organic food and personal care products so that the consumers get to know more about the product lines which will further increase their sales.

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2. Background Study: 2.1. Introduction: 2.1.1 Origin – John Bissell previously worked as a buyer for Macy's, New York and came to India in 1958, as a consultant for the Ford Foundation to advise the Government of India to run Central Cottage Industries Corporation. He was then given a two-year grant to instruct Indian villagers in making goods for export. He firmly believed in the emerging Indian textile industry and was determined to showcase Indian handloom textiles with a way to provide employment to traditional artisans.

Fig.1. John Bissell In 1964, Bissel met British designer Terence Conran, who’s newly established home furnishing retail company Habitat, Source: Author soon became one of their biggest customers. Meanwhile it also established a distribution network in the United States, supplying their products to mom-and-pop stores.

2.1.2 History – Fabindia was founded in 1960 by John Bissell to market the diverse craft traditions of India. It started out as a company exporting home furnishings. The first Fabindia retail store was opened in Greater Kailash, New Delhi Fig.2. Fabindia Logo fifteen years later that is in 1975.

Source: Author By the early eighties, Fabindia was already known for garments made from hand woven and hand printed fabrics. The non-textile range was added in 2000, while organic foods, which formed a natural extension of Fabindia’s commitment to traditional techniques and skills was added in 2004, with personal care products following in 2006. The handcrafted jewellery was introduced in 2008.

2.1.3 Vision – The vision of Fabindia is to celebrate India and endeavor to bring all that people love about India to the customers around the world.

2.1.4 Mission – The main mission of Fabindia is to:

•

Harness the transformative power of a well-run business committed to profitable growth in support of Fabindia’s vision.

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Strengthen and support the community of customers, designers, artisans, farmers, makers and entrepreneurs inspired by India.

•

Give the customers the products that delight them by interpreting India’s rich heritage and traditional knowledge, while protecting the natural environment.

2.1.5 Philosophy – Fabindia was founded with a strong belief that there was a need for a vehicle for marketing the vast and diverse craft traditions of India and thereby help fulfil the need to provide and sustain employment. It blends indigenous craft techniques with contemporary designs to bring aesthetic and affordable products to today’s consumers.

Fabindia’s endeavour is to provide customers with hand crafted products which help support and encourage good craftsmanship. The products are sourced from all over India.

Fabindia works closely with artisans by providing various inputs including design, quality control, access to raw materials and production coordination. The vision continues to be the maximization of the handmade element in the products, whether they are handwoven textiles, hand block printing, hand embroidery or handcrafting home products.

2.1.6 Organic Certification Fabindia Categories of Food Products Products displaying our Green logo are 'Fully Certified' Organic. All processes, from growing to preparing to packing have been done according to National and International standards, verified by Fig.3. Fully accredited agencies.

Certified Logo; Source: Author

Products displaying our Blue logo are 'In Conversion'. This means that the farmer is using purely organic techniques, and has registered and is complying with set standards. Farmland must be managed organically for about 3 years before it can be fully certified.

Fig.4. In Conversion Logo; Source: Author

Products displaying our Yellow logo are 'Natural'. This category contains products produced by small farmers who use purely organic techniques, but who have decided to not yet register for certification. It also includes some processed foods, which do not Fig.5.Natural Logo; contain any synthetic preservatives, colors, flavors or additives.

Source: Author

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National and International Standards India's organic certification standards are set by the National Programme for Organic Production (NPOP), which are based on standards set by the International Federation of Organic Agriculture (IFOAM).

In India, there are a handful of certifying agencies accredited by NPOP. Farmers and producers must register with one of these agencies, who will in turn verify whether NPOP standards have been met.

For certified Organic products, look for a certified agency's logo, for example SGS, and NPOP's India Organic logo.

Fig.6. India Organic Logo; Source: Author

Fig.7. SGS Logo; Source: Author

2.1.7 Sales analysis The percentage of business extracted from Apparel and Home in Fabindia:

Table 1. Sales Analysis; Graph 1. Sales; Source: Author

An analysis was made according to the secondary research made and it was found that the business of home accessories and organic food is less preferred by the customers as compared to garments and jewellery.

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2.2. Marketing Mix: 2.2.1 Product –

Table 2. Products of Fabindia; Source: Author

1.

Fabindia’s products are its differentiating factor and it has made sure that the quality and style of the product is maintained over the years.

2.

It always maintains the ethnicity of its products.

3.

It has a wide range of products ranging from garments to organic food. All the products have one factor in common; they are handmade and thus they support artisans.

2.2.2 Place – 1.

It has 177 stores across India and it is trying to increase its coverage in order to make sure that the products are available at large number of places.

2. It has different type of stores according to the products stored.

International Presence: S.No. 1

Number of stores

Countries India

177

5

2

Italy

1

3

Mauritius

2

4

Nepal

1

5

Singapore

2

6

UAE

1

7

Bhutan

1

Table 3. Countries and Number of Stores; Source: Author

2.2.3 Price – 1. Fabindia’s product range enables it to provide a wide range of products at a wide price range.

2. It has tried to make sure that the customer’s cost remains affordable and gives value for money. To this end it has expanded its range of garments starting from Rs. 200 to R+s. 2000 in order to provide something for its customers.

2.2.4 Promotion – 1. Fabindia has traditionally relied on word of mouth advertising. It believes that product speaks for itself and this strategy works very well.

2. The only problem with the above stated strategy is that the customers don’t get to know the location of the nearby stores. Therefore, to overcome this problem, various tools such as mobile marketing and newspaper advertisements are used to promote the brand well.

2.3. Competitors: 2.3.1 Khadi Gramodyog Khadi work was started in the Bassi block by Charkha Sangh in 1950. Charkha Sangh handed over the work to Rajasthan Khadi Sangh. This block level institution was established by Rajasthan Khadi Sangh and came into operation on 1st April 1967 towards fulfilment of its decentralization programme.

The aim of this institution was conceived to develop all the villages of the block through the Khadi and Village industries and other constructive activities. The name of the institution was chosen to be Khadi Gramodyog Saghan Vikas Samiti.

The ultimate aim of the institution was to bring development to all the villages.

Khadi Gramodyog Saghan Vikas Samity also looks to achieve the wider objectives in production of Khadi.

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Garments

Cotton Woolen Ready wears

Home Furnishing

Mats and Rugs Bedsheets Flooring Materials

Gifts

Handicrafts Handmade Papers Table 4. Products of Khadi Gramudyog; Source: Author

2.3.2 Central Cottage Industries Emporium – The World famous Central Cottage Industries Emporium is the India’s window to the world for nearly over 60 years for authentic handloom and handicraft products. In 1952, cottage was conceived by a band of dedicated art lovers and their consistent endeavor led to the creation of “Cottage” – the abode of Indian handloom & handicrafts that helped to restore the crafts persons pride in their work, recognized their genius and gave them a viable and honored future.

Sixty years down the lane, “Cottage” with flagship showroom in Delhi and showrooms in Mumbai, Kolkata, Chennai, Bengaluru, stands tall helping India and the world, access to the finest crafts with an assurance of authenticity, beauty and value, setting standards in aesthetics and design.

Garments

Dress Fabrics

Home Furnishing

Home Décor and Furnishing

Gifts

Art Objects Bankura Silvers Decorative and Gift Items

Organic Food

Tea and Herbals

Accessories Table 5. Products of Central Cottage Industries Emporium; Source: Author

2.3.3 Anokhi Anokhi's roots lie in Jaipur, a city whose founders were enlightened patrons of the arts and crafts. Skilled craftsmen were invited to settle here and were ensured a secure livelihood. In the Jaipur tradition, Anokhi tries to maintain an 7

open and honest relationship with its crafts persons. It helps them to work in conditions of their own choosing and commits itself to providing them with sustained work.

The hand block is carved out of wood and is the simplest of printing devices.

Dyeing with vegetable colors is the oldest of coloring techniques. As pioneers of hand block printing for the export market, Anokhi has built on these for the last thirty years.

Anokhi has a state of the art work unit, with more than 200 sewing machines, dry cleaning plants, and checking and packaging units. The company deals with more than ten different printing units and two dyeing units which have largely hereditary practitioners of their respective craft.

Garments

Dresses Tops Jumpers and Cardigans Jackets and Coats Skirts Trousers

Accessories

Table 6. Products of Anokhi; Source: Author

2.3.4 Kilol Kilol plays around with delicate traditional designs to give them a modern interpretation. Playing with conventional weaves, it creates contemporary outfits that comfortably fit your daily routine and casual outings.

Kilol Fabrics Pvt. Ltd. was founded in the year 1986, when Mamta Mansingka took a non-descript garage in Indore (M.P.) and turned it into the factory of her dreams with a single printing table and one kaarigar (printer). The fusion of hand-woven borders with hand block printed motifs gave Kilol its identity and thus, began a journey of creating ethnic wear that is contemporary and comfortable.

Kilol's retail chain currently comprises 10 stores. With its head office and production unit based in Jaipur (Rajasthan), it has a wholesale department to cater to individual outlets and an export department to address worldwide shipping.

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Sarees Top Suits Dress Materials Mix and Match Western Clothing Kurta Pants Cushion Fillers

Garments

Home Furnishing

Table 7. Products of Kilol; Source: Author

2.3.5 Good Earth Established in 1996 with its first store at Kemps Corner, Mumbai, Good Earth set standards for stylish luxury retail across India.

Anita Lal, founder and creative director, believes that true luxury is in the detail of everyday living; it is being surrounded by things that are natural and handcrafted with designs that elevate the spirit’.

They celebrate the heritage of the Indian sub-continent and of surrounding areas across Asia by creating unique design stories.

Their values are based on the values of sustainability. Sustaining tradition and the ecology is a core value.

Home Furnishing

Home DĂŠcor Cushions

Gifts

Dinnerware Tea Time Coffee Break Serve ware Glassware and Bar

Personal Care Products

Bed and Bath Wellness

Garments

Kids Table 8. Products of Good earth; Source: Author

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2.4. Competitor’s Edge: Competitor s

Products

Khadi Gramudyog

Cotton Products, Woolen Products, Poly Vastra, Flooring Materials, Khadi Readyweares, Khadi Bed sheets, Mats & Rugs

Central Cottage Industries Emporium

Art Object, Bankura Silver, Tea And Herbals, Dress Fabrics, Garments, Accessories, home décor and furnishing , decorative and gift items, crafts

Price

USP USP of the Khadi product is its ecofriendly nature which leaves behind near zero carbon footprint.

Art objects – 950 – 19350 Bankura silver1452-24839 Tea and herbals – 90 – 407 Dress fabrics -135 -7948 Garments – 940 – 12240 Accessories – 770 – 41191 Home furnishing – 40 – 153356 Gift items - 36 – 446 Crafts - 30936750

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Central Cottage Industries Emporium is the single largest emporium of the country, which is the perfect showcase of the traditional Indian art and crafts.

Following are its major attributes: • Most authentic source of traditional Indian art • Largest collection of products • Flagship showroom in major cities like Mumbai, Bengaluru, Kolkata, Chennai etc.

•

•

Most popular among foreign tourists Offering artists, artisans and craftsmen the most viable and direct access to the markets Securing the future of artisans and craftsmen who otherwise would fade into oblivion

•

The stamp of ethnicity, authenticity and quality

•

Instrumental in reviving age-old Indian

Anokhi

Women’s wear, Men’s wear, Home furnishing,

Kilol

Sarees, Western Clothing, Suits, Dress Materials, Home Furnishings

Good earth

Entertaining, living , bed and bath, wellness, kids, gifts

crafts Offers the best value for money and complete shopping experience Women’s wear:800- The USP of the store is that 4500 Men’s wear: everything here is made out of 900 – 3000 natural fabric and dyes. It Furnishing - 1000- houses eco-friendly clothes in 12800 the form of sarongs, skirts, tieup tops, trousers and pants that have been dyed with vegetable dyes. The collection here i chic and unique and would add a certain class and style to your wardrobe Promoting hand block print, Sarees:3000empowering craftspeople 6500 Western across India as well as upcoming wear:800-2000 designers who work in the field suits:2000-6500 of craft and keying in the Dress comfort for customers is our material:20003500 USP. With an everextending Home playfulness into the new world, furnishing:2003500 Kilol gets its design strength by blending the old with new. A dedicated, committed and a strongly united team is the greatest strength of Kilol.

Entertaining – 850 – 9800 Living – 10006800 Bed and bath – 1200 – 19000 Wellness- 4505600 Kids – 550 – 4400 Gifts – 400 - 12500

Table 9. Competitors’ Edge; Source: Author

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To produce, procure and sell quality handicrafts and handloom products and t develop markets for these products in India and abroad.

To continue to improve the quality of Indian Handicrafts and to upgrade and produce new designs.

To strengthen and expand the marketing network of the organization.

To generate adequate returns on Net Worth.

To manage trading activities so as to optimize sales and earnings and reduce expenditure

2.5. Primary Study: A visit to the DLF promenade was organized to research about the promotional strategies of Fabindia

2.6. SWOT Analysis: 2.6.1 Strengths • The brand has maintained its Indian-ness with the authenticity of hand-woven fabric for over years.

• The brand has provided sustainable employment for the skilled artisans in rural areas.

• The fact that the brand strongly believes in word of mouth marketing which has proved very effective.

2.6.2 Weaknesses • The brand is losing out on attracting new customers as it hugely depends on repeat purchases.

• Not enough experienced personnel to push Fabindia towards growth in the retail sector.

• Limited global penetration despite huge potential in NRI market.

2.6.3 Opportunities • The brand needs to tap the potential of organic foods by creating awareness about their merits.

• Display of FABINDIA products in MBO’s and collaborating with various construction groups would give.

• Geographic expansion in US and UK with huge Indian population.

2.6.4 Threats • Development of state owned co-operatives in the same segment can be serious competition.

• Consumers tilt towards foreign brands in the lifestyle segment.

• Not in touch with Fashion Trends.

2.7. PEST Analysis: 2.7.1 Political and Legal – Fabindia has faced government and legal issues like tax policy, employment laws, overworked young people, trade restrictions etc.

2.7.2 Economic and Demographic – Indian handloom industry plays a vital role with a contribution of up to 24% of the total industrial production index, earns 27% of the country’s total exports revenue 12

and employs almost 2 million people in the country. Within this sector, cotton weaving contributes almost 90% of the total production.

2.7.3 Social and Cultural – Fabindia connects very well to the social strata of the society as it always maintains its ethnic feel in the products.

2.7.4 Technological – Fabindia is known for its handloom products. All their clothing products are basically hand loomed. There is very less use of machines and other technology.

More of ethnic and traditional methods are used.

3. Literature Review: 3.1 Home Furnishing – Bed linens, curtains and bath linen like terry towel cover the largest share of the home textile in the domestic market. Indian home textile products have come of age. The product range comprises of furnishing fabrics and made-ups of Jacquard and Dobby weaves of various types of fiber like cotton, polyester, rayon blends, chenille, flax, silk, jute, linen and other blends.

High quality of fabrics used has added a new dimension. It offers further value addition in terms of hand painted fabrics and embroidered fabrics.

Fig. 1.Home Furnishings; Source: Author

The products are well known for diversity, weave, color and texture. Following are the main products:

• • • • • • • • • • • • •

Bed linen, Table linen, Kitchen linen, Toilet linen Beddings Bed covers, Bed spreads Cushions, Cushion covers, Duvets Quilts and quilting materials Curtains Terry towels Comforters Carpets and other floor coverings Blankets and Rugs Mattresses Upholstery Other made-ups (ace global private limited , 2009) 13

3.2 Organic food Organic food is safer, healthier, and usually chemical-free as there is no usage of artificial substances such as pesticides, herbicides, and genetically modified organisms (GMOs).

Fig. 2. Organic Food; Source: Author

They are grown in healthier soil and taste better than their conventional counterparts. Hence, the popularity of such produce is picking up volumes in recent years. There is no better choice for one's consumption than organic produce.

(Organic food)

Benefits:-

       

Prevents premature aging Reduces risk of heart disease Boost immune system Ensure safe and healthy world for future generation Tastes better than non-organic food Promotes animal welfare Reduces presence of pesticides Prevents cancer (organic facts)

Types of organic food:

         

Organic Vegetables and Fruits Organic Dairy Products Organic Fish & Meat Teas, Natural drinks and Sweeteners Spices, herbs and seasonings Grain, flours and Pastas Seeds and pulses Soups and Snacks Pickles and Chutney Ayurvedic (Satyamorganics)

3.3 Personal Care -

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Personal care products are made up of only natural ingredients and are manufactured with appropriate processes to maintain ingredient purity (Npainfo). They are safe and avoid involvement of any ingredient which is suspected to be harmful for humans. These products are always made of biodegradable ingredients and the most environmentally sensitive packaging. They use no animal testing in their development.

Types of personal care products:

    

Fig. 3. Personal Care Products; Source: Author

Hair Care Bath and Body Baby and Kids Health Care Soaps and Shave

3.4 Consumer An individual who buys products or services for personal use and not for manufacture or resale is known as a consumer. He can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Any time someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer.

3.5 Consumer Behavior The study of consumer behavior is a study of how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. It includes the study of what they buy, why they buy, when they buy it, how often they buy it and how often they use it. (Kanuk and Schiffman, 2011) Buying decision of consumers also depends on the following factors:-

   

Selective exposure Selective attention Consumer interpretation Selective retention

3.6 Consumer Behavior in Context of the Products Consumer behavior is not constant. It changes with a change in the product he/she is going to buy. The following explain the behavior of a consumer in terms of home furnishings, organic food and body care products: (a) Factors Affecting the Purchase of Home Furnishings –

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Fig. 4. Factors Affecting the Purchase of Furniture; Source: Al-Azzam (2014) Social factors affecting the purchase of furniture:

 Reference Groups - Reference group can be defined as any person or group of people who significantly influences an individual’s behaviour (Al-Azzam, 2014).

Individuals are a part of various groups which have relation with the assessment, aspirations and behaviour of another individual. Therefore, a reference group has the potential to mould the attitude and behaviour of a consumer.  Family – Family is one of the most important social factors which affect the purchase of furniture. Furniture is a necessity and therefore, it is important to buy the type of furniture which suits the family according to their size, preference and need. The size of the family mainly increases the need for the purchase of furniture.

Evaluative criteria of purchasing home furnishing products:

 Price - Furniture industry has a wide range of customers from low income to high income (Al-Azzam, 2014). Every consumer tends to buy furniture which suits his economic conditions. Therefore, while buying an expensive yet necessary commodity like furniture, price is one of the main factors which affect the purchasing decision of a consumer.  Color – Color is a source of relaxation. Colourful furniture makes a person calm and satisfied when he returns his home or goes to his office. It makes the furniture look more interesting and attractive. Finally color analysis constitutes one of the areas of marketing about consumers’ choice in dissimilar cultures and its perception of colors (Al-Azzam, 2014).  Quality – Furniture represents the personality of the owner and therefore, the quality of the furniture defines its superiority, excellence and refinement. The right quality of the furniture is judged through the type of wood used, types of construction joints, external surface construction and overall construction details. (b) Factors Affecting the Purchase of Organic Food 16

Demographic Factors:  Age – In case of organic food, age matters the most. People who are usually young or middle-aged tend to buy more organic food than children. This is so because young people wish to avoid junk food as they want to stay fit whereas, children love to eat junk food. Therefore, age is an important factor which determines the purchase of organic food.  Income Level – The income level of consumers also affects the purchase of organic food. Higher income households purchase organic products more frequently (Paul and Rana, 2012).  Education Level – Another factor affecting the purchase of organic food is the education level of an individual. The consumers who are less educated tend to buy less or no organic food as they don’t know the advantages and disadvantages of the food and vice-versa.

Health Benefits: Other than the demographic factors, the major factor which affects the purchase of organic food is health. Keeping in mind the factors like age, education level and level of income, health is stated to be given more weightage. Deterioration in Graph 2. Reasons for Buying Organic Food; human health was a main reason to influence consumers to think about Source: Paul and Rana (2012) organic food. (Paul and Rana, 2012). The consumers are always ready to invest more in healthy, tasty and effective food and therefore, health is the major factor for buying organic food.

Availability: Availability also, is one of the chief factors which encourage the purchase of organic food (Paul and Rana, 2012). With the growing reasons to buy organic food, brands have started working upon their marketing strategies and hence, the conventional supermarkets and large retail outlets have increased the availability of organic food which further influences the consumers to buy more organic food.

Others: The other factors which affect the purchase of organic food are environment friendly packaging and environment friendly technology.

(c) Factors Affecting the Purchase of Personal Care Products  Brand – The consumers of personal care products specifically concentrate on the brand of the product. It is believed that a famous brand delivers the best

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







type of personal care products. Since, the products are meant for taking care of the body therefore, consumers tend to buy them from a known brand.

Quality – The personal care products take care of an individual’s body and their skin type. Therefore, it is the tendency of the consumers to check the quality of the products before buying them.

Price – A rational customer always focuses on the price of the products he/she is going to buy. Thus, before buying a product of a necessary category like personal care, the consumers focus on the price.

Ingredients – Consumers prefer to think about the ingredients of the personal care products so that they don’t turn out to be harmful for their skins in the near future.

Availability – The personal care products can be found at any supermarket or general store or a small retail shop since they are a necessity. Therefore, availability also affects the purchase of personal care products.

3.7 Promotion – Promotion refers to the activity which helps in communicating the product, brand or any service to the consumers.

3.8 Types of Promotion – There are various types of promotion which help in reaching a wider area of consumers.

They are:

(a) Personal Selling: It is the most effective way of selling a product as it helps in building a customer relationship. It is very expensive and time consuming but it is good for high value or premium products. (b) Sales Promotion: It includes various contests, discounts, freebies etc. to attract the customers. (c) Public Relations: It is a deliberate and planned effort to establish a mutual understanding between the company and the public.

3.9 Knowledge Gap – Promotion of all product lines is extremely important for a brand to bring customers at their doorsteps and convey to them what the brand is all about. Fabindia lacks in promoting their product lines: home furnishings, organic food and personal care and therefore, the same are preferred less by the customers of Fabindia.

4. Research Methodology: 4.1 Research objective – 18

To understand the customer preference of garments and jewellery over home furnishings, personal care and organic food.

4.2 Research design The research design is exploratory because it relies more on the secondary research and is qualitative in nature. The knowledge obtained is limited.

4.3 Data collection methods and tools The data collection methods are primary sources which include tools like questionnaires and interviews; secondary sources which include tools like books, online journals and online newspapers.

4.4 Sample design 4.4.1 Sampling frame – the sampling frame is the potential customers of Fabindia 4.4.2 Sampling unit – the sampling unit of potential customers of Fabindia is Delhi 4.4.3 Sampling size – the sample size is 100 respondents 4.4.4. Method of sampling – the method of sampling used is probability stratified random sampling 4.4.5. Sample – the sample has respondents of age group 18 to 50

5. Data Analysis and Findings: 5.1 Data Methods and Tools – 5.1.1 Data Methods – Primary and Secondary Data 5.1.2 Data Tools – Primary: Questionnaires and Interviews Secondary: Books, Journals and Newspapers

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5.2 Findings and Interpretation – 5.2.1 Demographic Factors – (a) Q1.

Graph 3. Age of Respondents; Source: Author

Interpretation: From the above pie chart it is analyzed that 30% of the total respondents that of the age group of 18-23 years and there are only 14% of respondents that belong to the age group of 41- 46 years. (b) Q.2

Graph 4. Location of the respondent; Source: Author

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Interpretation: From the above pie chart it is analyzed that 21% of the total respondents reside in West Delhi and there are only 12 % of the total respondents that reside in East Delhi. (c) Q3.

Graph 5. Marital Status of Respondents; Source: Author

Interpretation: From the above pie chart it is observed that 50 % of the total respondents are married and only 1% of the total respondents are separated. (d) Q.4

Graph 6. Education Level of the Respondents; Source: Author

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Interpretation: From the above pie chart it is analyzed that 47% of the total respondents are post graduate and only 4% of the total respondents have other kind of education level. (e) Q5.

Graph 7. Occupation of the Respondents; Source: Author

Interpretation: From the above pie chart it is analyzed that 34% of the total respondents are students and only 12% of the total respondents are service man (d) Q.6

Graph 8. Monthly Household Income of the Respondents; Source: Author

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Interpretation: From the above pie chart it is observed that 29% of the total respondents have monthly income of Rs. 2 lakh and above and only 14% of the total respondents have Rs 80,000 – 1, 00,000 (e) Q.7

Graph 9. Family type of the Respondents; Source: Author

Interpretation: From the above pie chart it is analyzed that 61% of the total respondents have nuclear family and only 39% of the total respondents have joint family.

5.2.2 Psychographic Factors – (a) Q8.

Graph 10. Lifestyle; Source: Author

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Interpretation: From the above graph it is analyzed that 24% of the total respondents mostly prefer fashionable kind of lifestyle and only 15% of the total respondents prefer traditional.

(b) Q.9

Graph 11 Time Spent by the respondent. ; Source: Author

Interpretation: From the above graph it is observed that 24% of the total respondents spend their time with their family and only 2% of the total respondents spend their time however they wish to.

(c) Q.10

Graph 12 Shopping Preference; Source: Author 24

Interpretation: From the above graph it is analyzed that 39% of the total respondents shop from malls and only 1% shop from other places

5.2.3 Testing for Mean – (a) Q11.

Table 10. Testing for Mean. ; Source: Author

Interpretation: According to the above table, it is analyzed that the least preferred brand among all the given brands is Kilol. However, the most preferred brand is Fabindia.

Therefore, it can be concluded that the customer preference for Fabindia is more than Anokhi, Good earth, Central Cottage Industries Emporium, Cottons, Khadi Gramudyog and Kilol.

The data is accepted for the population as the significance level is less than 0.05 (b) Q12. (i) Personal Care Products:

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Table 11. Testing for Mean. ; Source: Author

Interpretation: As shown in the above table, it is observed that out of the given five factors namely price, quality, brand, marketing and peer reviews which affect the purchase of personal care products, the quality of the product matters the most when a consumer buys them.

The data is accepted for the population because the level of significance is less than 0.05 (ii) Organic Food:

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Table 12. Testing for Mean ; Source: Author

Interpretation: According to the table, it can be observed that among the five factors given in the table, quality is the most preferred factor which affects the purchase of organic food. Therefore, it can be concluded that consumers see the quality of organic food before buying it.

The data is accepted for the population as the level of significance is less than 0.05 (iii) Home Furnishings:

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Table 13.Testing for Mean; Source: Author

Interpretation: As shown in the table, price is the factor which affects the purchase of home furnishings by the consumers. This means that the consumers prefer to give importance to the price of home furnishings before buying it.

The data is accepted for the population as the level of significance is less than 0.05 5.2.4 Chi-square Test (Q13.) (a) Age and Product:

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Table 14.Chi-square ; Source: Author

Interpretation: According to the above table, it can be analysed that out of the total sample of 100 respondents, 30 consumers are between the age group of 18-23 years. However, out of the 30 consumers, 16 consumers prefer to buy garments from Fabindia, whereas, 7 consumers buy accessories, 3 consumers buy home furnishings, 1 consumer buys organic food, 1 consumer buys personal care products and 2 consumers buy FABELS. This implies that garments are the 29

most preferred product of Fabindia by the consumers between the age group of 18-23 years.

It is observed that the consumers between the age group of 24-29 years prefer to buy garments. Out of the sample of 100 respondents, 21 consumers are aged between 24-29 years. However, only 12 of them buy garments, 2 consumers buy accessories, 2 consumers prefer home furnishings, none of them buy organic food whereas 4 consumers buy personal care products and only 1 consumer prefers to buy FABELS. The table indicates that out of 17 consumers aged between 30 – 35 years the maximum number of consumers that is 7 preferred to buy garments from fabindia instead of accessories, home furnishing, organic food, personal care products and FABELS. It is analysed that out of the 18 consumers between the age group of 36 – 41 years only 5 people prefer to buy garments from fabindia whereas the purchase for the other products is comparatively low.

It is observed that the consumers between the age group of 41 – 46 years have 14 consumers out of which 5 consumers who buy garments from fabindia instead of other products available at fabindia.

The data is rejected for the population as the level of significance is more than 0.05 (b) Income with Product:

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Table 15. Chi-square; Source: Author

Interpretation: According to the given table it is observed that out of 20 consumers who have a monthly disposable income of Rs. 30000-Rs. 60000 the majority of 7 consumers prefer to buy garments and the least purchased product is organic food with no preference at all.

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The table shows that out of 22 consumers with the monthly disposable income of Rs. 60000 – Rs. 80000, the most purchased product is garment with a majority of 10 consumers. However, the least purchased products are organic food and FABELS with the preference of 1 consumer each.

It is analysed that the 14 consumers with the monthly disposable income of Rs. 80000 – 1 lakh have a majority of 5 consumers who prefer to buy accessories whereas the least preferred product of this group is FABELS with no preference.

The table indicated that out of 15 consumers who have a monthly disposable income of Rs. 1 lakh – Rs. 2 lakh have the preference of buying garments with a majority of 5 consumers whereas the least purchased products are home furnishing, personal care and FABELS. It is observed that out of 29 consumers who have a monthly disposable income of Rs. 2 lakh and above have the buying preference for garments with a majority of 19 consumers whereas the least purchased product is accessories with no preference.

The data is accepted for the population as the level of significance is less than 0.05 5.2.5 Annova (Q14.) (a) Age and product:

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Table 16. Annova; Source: Author

Interpretation: According to the above table, it can be observed that garments, accessories and FABELS are most preferred by the consumers ageing between 36-41 years. This implies that garments, accessories and FABELS are sold more to these age groups as compared to other product lines.

The data for the population is rejected because the level of significance is more than 0.05 Whereas, in context to other product lines, it is found that home furnishings and organic food are most preferred by the age group of 18-23 years.

The data for the population is rejected because the level of significance is more than 0.05 The personal care products are preferred by the people ageing between 41-46 years.

The data for the population is rejected because the significance level is more than 0.05 (b) Income with product:

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Table 18. Annova; Source: Author

Interpretation: In the above tables it is observed that the consumers with the monthly disposable income of Rs. 30000 – Rs. 60000 prefer to buy garments and personal care products.

The data for the population is rejected for garments because the significance level is more than 0.05. However, the data for the population is accepted for personal care products as the level of significance is less than 0.05 The consumers who have the monthly disposable income of Rs. 60000 – Rs. 80000 prefer to buy accessories and home furnishings.

The data for the population is rejected because the level of significance is more than 0.05 It is found that organic food is preferred by the consumers who have the monthly disposable income of Rs. 80000 – Rs. 100000.

The data for the population is accepted because the level of significance is less than 0.05 The consumers who have the monthly disposable income of Rs. 100000 – Rs. 200000 prefer to buy FABELS. The data for the population is accepted because the significance level is less than 0.05 36

6. Conclusion and Recommendations: 6.1 Conclusion – On the basis of the findings in the above report, it can be concluded that garments are more preferred than personal care products, organic food and home furnishings which further states that the sales of the latter are less as compared to the former.

Also, according to the research, it can be concluded that Fabindia is the most preferred brand amongst its competitors Khadi Gramudyog, Anokhi, Central Cottage Industries Emporium, Kilol and Good earth.

1.2 Recommendations – 1. The personal care, organic food and home furnishings product lines of Fabindia should have a different store like that of garments and accessories so that the consumers get to know more about the products.

2. The visual merchandising should be improved by showcasing a bit of each of the above stated product lines in the windows so that they attract the consumers and persuade them to visit the stores like garments, accessories and other products of Fabindia.

7. References: •

(2015), Fabindia. [Online] Available from: http://www.mbaskool.com/brandguide/lifestyleand-retail/2843-fabindia.pdf [Accessed: 5th February 2015]

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(2015), Products. [Online] Available from: http://www.khadigramodyogbassi.org/aboutus.php [Accessed: 5th February 2015]

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Ace Global Private Limited. (2009). The Home Textile Furnishing Industry in India.

[Offline], [Accessed on: 25th February 2015]

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Al-Azzam, A. (2014). Evaluating Effect of Social Factors Affecting Consumer Behavior in Purchasing Home Furnishing Products in Jordan. [Online] eajournals, 2, p. 82 – 86. Available from: http://www.eajournals.org/wpcontent/uploads/Evaluating-effect-of-social-factors-affecting-consumer-behaviorin-purchasing-home-furnishing-products-in-Jordan.pdf [Accessed on: 22nd February 2015]

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Fabindia (2015), About the company. [Online] Available from: http://www.fabindia.com/intl/company/ [Accessed: 5th February 2015] Fabindia (2015), 50 years of Fabindia. [Online] Available from: Fabindia (2015), Philosophy. [Online] Available from: http://www.fabindia.com/intl/philosophy/ [Accessed: 5th February 2015]

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Fabindia (2015), Products. [Online] Available from: http://www.fabindia.com/intl/products/ [Accessed: 5th February 2015] http://www.fabindia.com/intl/50-years-of-fabindia/ [Accessed: 5th February 2015] Huber, M. et al (2011). Organic Food and Impact on Human Health: Assessing the Status Quo and Prospectus of Research. [Online] sciencedirect, 58, p. 8. Available from: 37

www.sciencedirect.com/science/article/pii/S1573521411000054 [Accessed on: 24th February 2015]

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Kanuk and Schiffman, L. and L. (1999). Consumer Behaviour. 6th Edition. New Delhi: Asoke K. Ghosh, Printice Hall of India Pvt. Ltd.

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Khanna, D. et al (2010), Merchandise Assortment and Merchandise Policy of Fabindia. [Online] Available from: http://www.slideshare.net/guest979637/cfakepathmerchandising-fabindia-ppt [Accessed: 5th February 2015]

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Kilol (2015), Kilol USP. [Online] Available from: http://kilol.com/content/about-kilol [Accessed: 5th February 2015]

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Mattas, K. et al (2007). Attitudes and Behaviour Towards Organic Products: An Exploratory Study. [Offline], [Accessed on: 24th February 2015]

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Organic Facts. Health Benefits of Organic Food. [Online] Available from: www.organicfacts.net/organic-products/oragnic-food/health-benefits-of-organicfood.html [Accessed on: 23rd February 2015]

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Rabolt and Solomon, N. and M. (2009). Consumer Behaviour in Fashion. 2nd Edition.

India: Dorling Kindersley Pvt. Ltd. [Accessed on: 23rd February 2015]

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Thanyamon, S. (2012). Consumer Behaviour in Purchasing Home Furnishing Products in Thailand. [Online] dspace.wul.waseda.ac.jp, p. 12-18. Available from: https://dspace.wul.waseda.ac.jp/dspace/bitstream/2065/38112/1/ShokenShuron_2012_9_Th anyamon.pdf [Accessed on: 23rd February 2015]

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