CHAPTER 1 INTRODUCTION

1.1 ABOUT THE INDUSTRY

The Indian textile industry is one of the largest in the world with a massive raw material and textiles manufacturing base. Our economy is largely dependent on the textile manufacturing and trade in addition to other major industries. About 27% of the foreign exchange earnings are on account of export of textiles and clothing alone. The textiles and clothing sector contributes about 14% to the industrial production and 3% to the gross domestic product of the country. Around 8% of the total excise revenue collection is contributed by the textile industry. So much so, the textile industry accounts for as large as 21% of the total employment generated in the economy. Around 35 million people are directly employed in the textile manufacturing activities. Indirect employment including the manpower engaged in agricultural based raw-material production like cotton and related trade and handling could be stated to be around another 60 million. A textile is the largest single industry in India (and amongst the biggest in the world), accounting for about 20% of the total industrial production. It provides direct employment to around 20 million people. Textile and clothing exports account for one-third of the total value of exports from the country. There are 1,227 textile mills with a spinning capacity of about 29 million spindles. While yarn is mostly produced in the mills, fabrics are produced in the power loom and handloom sectors as well. The Indian textile industry continues to be predominantly based on cotton, with about 65% of raw materials consumed being cotton. The yearly output of cotton cloth was about 12.8 billion m (about 42 billion ft). The manufacture of jute products (1.1 million metric tons) ranks next in importance to cotton weaving. Textile is one of Indias oldest industries and has a formidable presence in the national economy inasmuch as it contributes to about 14 per cent of manufacturing value-addition, accounts for around one-third of our gross export earnings and provides gainful employment to millions of people. They include cotton and household sectors spread across the entire country.

1.1.2 ROLE OF INDIAN TEXTILE INDUSTRY IN THE ECONOMY

Textile industry plays a significant role in the economy. The Indian textile industry is one of the largest and most important sectors in the economy in terms of output, foreign exchange earnings and employment in India. It contributes 20 per cent of industrial production, 9 per cent of excise collections, 18 per cent of employment in industrial sector, nearly 20 per cent to the countrys total export earnings and 4 per cent ton the GDP. The sector employs nearly 35 million people and is the second highest employer in the country. The textile sector also has a direct link with the rural economy and performance of major fiber crops and crafts such as cotton, wool, silk, handicrafts and handlooms, which employ millions of farmers and crafts persons in rural and semi-urban areas. It has been estimated that one out of every six households in the country depends directly or indirectly on this sector. India has several advantages in the textile sector, including abundant availability of raw material and labor. It is the second largest player in the world cotton trade. It has the largest cotton acreage, of about nine million hectares and is the third largest producer of cotton fiber in the world. It ranks fourth in terms of staple fiber production and fourth in polyester yarn production. The textile industry is also labor intensive, thus India has an advantage.

1.2 ABOUT THE ORGANIZATION 1.2.1 HISTORY OF AMANATH GARMENTS

Amanath garments limited were founded in 1958. Then called as Haider mill. In 1961 the name was changed from Haider mill to Amanath garments (AG) limited and during the year the mill was equipped with spinning capacity of 44256 spindles and processing with 1000 looms. After this incorporation, best and company private limited managed the mill as managing agents.

In 1973, the management changed hands and the late Haji.Akbar khan a senior industrialist in the textile field, took over the reins of the mill and the mill made very considerable improvement, in as 75 % of its product were exported. In 1974, the mill expanded and a new mill was commissioned with 687 automatic looms. In 1985 a spinning unit canvas mill with 13500 spindles was starts at Rakkiya palayam. In 1991 Jatia & Somani group from Bombay took over the mill. Due to mismanagement and lab our problems, the mills financial position declined considerably and it was closed down on 4th July 1995. The manager then fled to Bombay and for 6 months the employees didnt get their wages. After two and a half years the mill was taken over by Haji.mohammed karim basha under 2988 textile act.

The cleaning of the mills machinerys was taken up from 8.12.1997 and the canvas mill (now calledcount) was restarted from 27.3.1998and a and b units (old and new mill) were started on 10.7.1999. After the take over the mil by the government, new machinerys were commissioned shuttle less looms with a width 230 were imported from USSR and installed in c unit. In the processing department also, new machineries were added for and increased capacity. The spinning and weaving department were expanded too.

The mill under Amanath garments launched many valuable welfare schemes. The mill at present has a tailoring unit at the industrial estate were employees childrens are given training. The mill has 3 shifts, all seven days a week and has 570 workers, 62 staff members which include clerks, supervisors and officers.

1.2.2 PRODUCT PROFILE IN AFT 1.2.2.1 Industrial fabrics

1. Foam coated curtain lining. 2. PVC (Polyvinyl chloride) coated fabrics. 3. Recreational and camping equipment. 4. Abrasives. 5. Belting. 6. Shoe uppers.

1.2.2.2 Institutional fabrics suitable for

1. Entire range of hospital line. 2. Hotel and restaurant linen. 3. Uniforms fabrics schools, institutions, factories, defense and Para-military organizations. 4. Fire-resistant fabrics. 5. Stain-resistant fabrics.

1.2.2.3 Consumer product which consist of

1. 2. 3. 4. 5.

Household linen of all types. Dress material satin, twills, poplin, chambray, oxford, cambric Furnishings & draperies. Specialized fabrics and fashion garments. Ready-mades.

1.2.4 BRIEF ACCOUNT OF OTHER DEPARTMENTS

The various departments in AFT are viz.

1.3.4.1 Production department

Spinning department blow room, carding and spinning. Weaving preparatory department winding, warping and sizing. Weaving department loom shed. Processing department bleaching, printing and dyeing. Warehouse department examining, packing and bailing.

1.2.4.2 Service departments

Marketing department Finance and accounts department Purchase and stores Quality assurance Personnel department

1.2.5 QUALITY COMMITMENT

Amanath garments are dedicated to a system of quality management, which will ensure that its products and services meet the requirements of its customers at all times. At each and every stage of production process control is done to ensure quality

1.2.6 QUALITY POLICY

Do it right and keep it right

The watchwords are:-

A world full of satisfied customers Where quality is by design and excellence and obsession Where quality is the word, an Amanath garments is the pass word.

1.3 NEED FOR THE STUDY

AG is one of the developing textile industries in India. It occupies a predominant role in textile industry. AG have a strong role in domestic sales. But still the company wants a change in the domestic sales department. According to the current trend of the market. For that the study helps to accomplish the present market situation, and also to know and increase the level of customer satisfaction. The study also helps to show the company where they are standing in the market, and also suggest ideas to improve their domestic sales by providing the products according to the customers needs and wants.

1.4OBJECTIVES OF THE STUDY

To find out the customer satisfaction in AG domestic sales of products.

To find out the domestic sales of products awareness among society.

To find out the reason for fluctuation in the demand.

To know the needs and wants of the customers.

Suggestions for improving domestic sales of products in AG.

1.5 SCOPE OF THE STUDY

Due to shortage of time I did not meet more number of customers. Analysis made is only based on the number of respondents. Some of the people are not willing to filling the questionnaire.
Population size is infinite, but I was collected data only from 100 customers.

1.6 LIMITATION OF THE STUDY

Chance for personal bias in responding to the researcher Researcher got limited period of time for the study Using percentage analyzing only fair idea of the population can be identified. Study is based upon the prevailing respondent behavior.

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CHAPTER 2

REVIEW OF LITERATURES

2.1 INTRODUCTION TO CUSTOMER SATISFACTION

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

2.1.1 MEASURING CUSTOMER SATISFACTION

Organizations are increasingly interested in retaining existing customers while targeting noncustomers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Since satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry, Brodeur between 1990 and 1998[3] defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous 11

improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance.

The usual measures of customer satisfaction involve a survey with a set of statements using a Liker Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of the performance of the organization being measured.

2.2 CUSTOME SATISFACTION IS KEY BY MARTIN STOLEMAN

As a consultant for people who are considering starting their own small business, I naturally have many things to share with people. Clients come to me with a host of questions about the process of starting a business and about the details of what to focus on above everything else. Once we have talked through the logistics and the finances that are necessary in starting a business, I quickly move into talking about the keys to running a successful business. The first key that I always talk about is customer satisfaction. Before I share with clients that customer satisfaction is my number one key to success, I make them list in order of priority what they feel are the top ten keys to success in their future business. This is important because it gets them thinking about their goals and about actually having to perform for their business to be a success. Most of the time my clients rank customer satisfaction somewhere in their list, but it is very rare that it makes the number one spot. They are shocked when I reveal my list and they see customer satisfaction all the way on the top. I feel strongly about customer satisfaction for many reasons. I guess the biggest reason is that the whole purpose of a business is to invite customers and to meet a need that they have. If business owners and potential business owners lose sight of the fact that they are in business for the

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customer and not for the money, then they will never have a successful business. I find that businesses are prosperous and long-lasting to the degree that they truly do make customer satisfaction the center of all they do. Customer satisfaction means a variety of things for the business owner, but the main thing it means is that the needs of the customer are the bottom line and the driving force behind all decisions that are made for the business. It means that gaining and keeping customers is important enough to a business that they are willing to make changes if necessary based on what customers want. Customer satisfaction is the missing key in many struggling businesses. Give customers what they want in a way they want and in a friendly matter and many more of our companies would be doing better. Customer satisfaction is hard to achieve, yet with intention and care it can be rewarding for everyone involved.

2.3 CONDUCTING AN EFFECTIVE CUSTOMER SATISFACTION PROGRAM BY JOHN SLOVAK

Most customer interaction studies have a couple of core issues that we'd like to measure. Among the top are: satisfaction, importance, and loyalty. Satisfaction is how satisfied are your customers with respects to the various services and attributes of your engagement with theirs: A. over-all product/service satisfaction B. pre-sales support C. ongoing support and customer service D. cancellation reasons and drop-outs

Importance covers what is really important to your customers and what are not. For example: if most of your customers think on-site support is not very important, having a high satisfaction score on that will not significantly affect the bottom-line. 13

Loyalty is what do your customers think about you really and how they perceive your services. With the high cost involved in the acquisition of new customers (about 10x) this usually plays a critical role in the development of your business and services that you provide. For most businesses, customer retention directly affects the profitability.

Businesses today realize that one of the keys to success in the competitive marketplace is effective customer management. Companies see customer relationship as a strategic advantage and have invested a lot of effort in making sure that Customer Relationship Management (CRM) is high on the priority list. However, few companies have invested effort in terms of having a continuous measurement strategy that can signal potential dips in real-time.

2.4 CONDUCTING CUSTOMER SATISFACTION RESEARCH BY LEIGH A. ZAYKOSKI

Understanding the needs of your customers is an important tool for identifying a starting point for future improvement. Before spending a great deal of valuable time, money, and resources on service improvement programs, you must understand how your customers rate your current service and how you can improve this service in the future. Conducting customer satisfaction research allows customers to communicate their current satisfaction levels, establishes effective metrics with which to track future progress, and lays a foundation for constructive discussions about the strong and weak points of your service plan. When choosing a survey method, you must assess the resources available for surveying, the type of information you are looking to obtain, and the type of customer you would like to survey. A random customer survey measures overall customer satisfaction and can outline any general service problems. When conducting a random customer survey, you will select a percentage of your customers and contact them by telephone, e-mail, or in person. After contacting these customers, they are asked to rate the level of service provided by your company. When conducting a random customer survey, it is important to remember that the usual response rate ranges from forty to sixty percent. You will need to remember this when choosing how many customers to contact initially. Conducting a random survey is a good choice if you have never done customer satisfaction research before. 14

Conducting a company-wide attitude survey will allow you to evaluate how satisfied staff members are with their jobs, how well the lines of communication within your company are functioning, and whether or not your employees feel a sense of camaraderie on the job. Conducting a lost account survey involves surveying customers who have closed their accounts with your company. The interviews are conducted either by telephone or in person and let the former customers know that you are attempting to fix your service problems. A target account survey involves surveying a specific group of customers rather than a random sample. This type of survey is particularly useful for improving service to a specific segment of your customer base. Finally, a customer exit survey involves conducting interviews as customers exit a business establishment. This is a useful tool because it catches the customer immediately following their service experience. This provides more accurate and immediate feedback on the service experiences of your customers.

The data collected from the survey can be a critical tool in determining service areas that can be improved. It is important to analyze this data from two angles. First, what aspects of your service plan are failing your customers? Second, how well are the service experience and sales messages you put forth making it into customer consciousness? By carefully analyzing the data and forming a solid action plan, you can not only eliminate ineffective aspects of your service, but help ensure your service drives your sales message home.

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CHAPTER 3

RESEARCH METHODOLOGY

Research methodology is way to systematically solve the research problem. It is a plan of action for a research project and explains in detail how data are collected and analyzed. Research Methodology may be understood as a science of studying how research is done scientifically. It can cover a wide range of studies from simple description and investigation to the construction of sophisticated experiment.
A clear objective provides the basis of design of the project. Since the main objective of this study is to identify the customers preference, expectation and perception. It was decided to use descriptive research design include, surveys and fact-findings enquires of different kinds, which found out to be the most suitable design in order to carry out the project.

3.1 MEANING OF RESEARCH

Research is an art of scientific investigation. The advanced learners dictionaries of current English lay down the meaning of research as, a careful investigation (or) inquiry especially through search for new facts in any branch of knowledge. Redmen and Mary research as a systematic effort to gain knowledge.

3.2 RESEARCH DESIGN

A Research design is plan that specifies the objectives of the study, method to be adopted in the collection of the data, tools in analysis of data and helpful to frame hypothesis. A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to research purpose with economy in procedure. Research design is needed because it facilitates the smooth sailing of the various project operations, thereby making the project as efficient as possible yielding maximal information with minimal expenditure of effort time and money. Also it minimizes bias and maximizes the reliability of the data collected.

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3.3 DATA COLLECTION

The data collection pertaining to the study involves on the basis of primary data and secondary data.

3.3.1 Primary data

The primary data have been collected form costumers by personal interview by selecting consumers belonging to business, professional, private and government employee.

3.3.2 Secondary data

The secondary data is undertaken only among the domestic sales department with in the organization.

3.4 SAMPLING PLAN

Sampling plan is to be decided about the sampling unit, sampling method, sampling size.

3.4.1 Sampling unit

The survey is conducted from the customers.

3.4.2 Sampling method.

In this study the samples were drawn using random sample method.

3.4.3 Sampling size

Sample studies were selected from the sampling unit. The estimated total sample size is 100 in Tirupur

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3.5 AREA OF THE STUDY

Primary data were collected from Pondicherry at AFT textiles and branch of another shop.

3.6 STATISTICAL TOOLS

The following statistical techniques have been for the study 1. Percentage Analysis. 2. Chi-square Test

3.6.1 Percentage Method

The percentage method was extensively used for findings various details. It is used for making comparison between two or more series of data. It can be generally calculated. Percentage of customers is given by = (Number of customers / total customers) * 100

3.6.2 Chi-square test

The chi-square test has been used to find the relationship between variables, as it is applicable for cross-tabulated data This test has been used to determine whether or not there is any association statistically, between the variables in data collected. The chi-square contingency table has been used, as it is appropriate for the hypothesis of independence between two nominally scaled variables.

Chi square (2) =

(Oij-Eij)2 / Eij

Where Oij= Observed frequency of the cell in ith roe and jth column Eij= Expected frequency of the cell in ith row and jth column

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