CHAPTER 1

INTRODUCTION

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1.1: INTRODUCTION

Philip Kotler defines marketing as 'satisfying needs and wants through an exchange,
process 'The ultimate aim of production is the satisfaction of human wants. It includes
both the goods and services. Consumers can satisfy their wants only when the good
reach in their hands. Thus marketing makes goods and services useful to the society
by getting what where they are wanted

In olden days customers are treated as king of the market. Now the trend is changed.
Nowadays the customers are treated as god. A customer satisfaction is measure at the
individual level but it is almost always reported as aggregate level. Satisfaction
depends on number of both psychological and physical variables, which correlate with
satisfaction behavior such as return and recommend rate. Customer behavior and
customer satisfaction plays a good role in marketing set-up. Everything depends upon
the behavior of customers. Market must find out the needs and wants of customers
first and setup the product features based on this. It is a difficult task to force them to
change the attitude of customers. But customer’s preference may vary from one
another. It depends on the features of a product and other factors. Satisfaction depends
on number of both psychological and physical variables, which correlate with
satisfaction behavior such as return and recommend rate.

Customer satisfaction, a term frequently used in marketing, is a measure of how

product and services supplied by a company to meet or surpass customers’
expectation. Customer satisfaction is defined as the number of customers, or
percentage of total customers, who reported experience with a firm. Its products or
services exceed specified satisfaction goals.

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction vary from person to person and product to
product. The state of customer satisfaction is seen as a key performance indicator
within business; a key differentiator and increasingly has become a key element of
business strategy.

Within organizations, customer satisfaction ratings can have powerful effects. They
focus employees on the importance of fulfilling customers’ expectations.
Furthermore, when these ratings dip, they warn of problems that can affect sales

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profitability. These metrics quantify an important dynamic. A brand loyal customer, it
does positive word of mouth marketing, which is both free and highly effective. It is
essential for business to effectively manage customer satisfaction.

In researching satisfaction, firms generally ask customers whether their products or

services are meeting or exceeding expectations. Thus expectations are a key factor
behind satisfaction. When customers have high expectations and the reality falls short,
they will be disappointed and will likely rate their experience as less than satisfying.

The prime importance of customer satisfaction is, its costs between 5 and 6 times
more attract a new customer than to keep an existing one. The importance of customer
satisfaction cannot be dismissed because the satisfied customers are like free
advertisement. Customer satisfaction survey provides benefits for business of every
size. It can assist business decision makers in developing strategies to achieve the all
important goals of gaining and retaining customers.

Customer satisfaction has a vital role in marketing. To trace out the attitude and
preferences, of customers, a firm has to make lot of research on the related areas and
then should make or modify the product to satisfy customers.

Being the most enhancing district of Northern Kerala, Kannur has its own role in the
history of Kerala. Kannur, a renowned port in ancient times, is now an industrial town
with a thriving handloom industry. The Kanhirode Weavers Society has been engaged
in the production of export oriented hand crafted home furnishings and made ups
since its inception in 1979.The commitment of the workers paved the way for the
society to achieve the maximum goal of customer satisfaction and prompt delivery.
There are hundreds of workers who eke out their hand to mouth for the livelihood
under the flourished umbrella of this organization. Wide ranges of fabrics are created,
are first of its kind in terms of texture &design. The design ideas are taken from with
the aid of latest software in textiles designing. The reason for a business firm to come
into being is the existence of customer who has unfilled needs and wants. Customer
satisfaction has been conceptualized in several ways. It consists of expectations,
performance interaction, pleasured or displeasure and the evaluation of the benefits of
consumption .transformer industry it is having a lesser number of competitors and
competition .so the demand is high.

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A company's product may be successful. It may be attractively packaged. It may have
reasonable price. It may be built according to customer needs and desires. But people
will not buy the product if they have never heard of it. People must know the
availability of the product and its features, price etc. Marketers must communicate the
product; its features etc. to the right target customers by formulating right message in
the language that is understood by them.

There must be proper flow of information from the producer to the customer either
along with the product or well in advance of the introduction of the product into the
market. It's a management process responsible for identifying, anticipating and
satisfying customer's requirements and profitability. The term marketing has changed
and evolved over a period of time, today marketing is based around providing
continual benefits to the customer, these benefits will be provided and a transactional
exchange will take place. Marketing objectives, goals and targets have to be
monitored and met, competitor strategies analysed, anticipated and exceeded.
Through effective use of market and marketing research an organization should be
able to identify the needs and wants of the customer and try to delivers benefits that
will enhance or add to the customer's lifestyle, while at the same time ensuring that
the satisfaction of these needs results in a healthy turnover for the organization.

1.2: IMPORTANCE OF THE STUDY

Concerned the importance of customer satisfaction, in marketing it has been desired

to conduct a study of the importance of customer satisfaction in kanhirod weaver’s
cooperative society. Since customer is the king in the market,the every firm has to
take the importance to customer satisfaction.

This study helps to understand about customer’s feedback as well as their satisfaction
level. The study also helps in finding out the problems faced by customers.

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1.3: SCOPE OF THE STUDY

The research was conducted to assess the customers’s satisfaction regarding

KANHIRODE WEAVERS CO-OPERATIVE P&S SOCIETY LTD. The research
findings will help the company to improve the marketing strategies to improve the
awareness among the customers.

With the real effect, the scope of the study was to understand the range of importance
of customers relationships. By the scope of the study the researcher came to know that
there is an important need and scope for customer relation to maintain customer’s
satisfaction about the product.

1.4: OBJECTIVE OF THE STUDY

The main objectives of the study are following

1. To find out satisfaction level of customers regarding the pricing of the

product.
2. To find out customer preference for a particular brand.
3. To assess the quality of service received by the customer
4. To compare their quality, price, service with that of the competitors.
5. To assess the promotional activities under taken by the company.
6. To understand overall customer satisfaction level towards KANHIRODE
WEAVERS.

1.5 : RESEARCH METHODOLOGY

RESEARCH DESIGN
A research design is an arrangement of conditions for collecting and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure.

The study has been conducted on the customers of Kanhirode Weaver’s cooperative
society. This would help me to gain knowledge to understand and justify the reason
for customers to place the opinion stage.

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A Research design is the basic plan that guides the data collection and analyses phases
of research instrument. A well developed questionnaire was prepared on the basis of
objectives.

1.6: SAMPLE DESIGN

Convenience sampling method was adopted in the area under the study. Customers
were non probably selected for the study.

SAMPLE PLAN FOR THE PROJECT

All items any field of inquiry constitutes population. Population refers to the total of
items about which information is desired. A complete study of the few elements
presents in the population is known as sample survey. Population of kannur distrcitis
used as customers.

SAMPLE SIZE

The sample size (n) should not be small as it may not serve the objective and if it is
too large it incurs huge cost and waste of resources. The sample size of the present
study is 100

DATA COLLECTION METHODS

 SOURCES OF DATA COLLECTION

The methodologies mainly includes detailed observation, interviews of personal both
managerial executive level and workers and also study of manuals and reports
available. Data can be collected through two sources: they are;

 PRIMARY DATA
It includes original information which derived directly through personal investigation,
interviews and telephone calls with Secretary, staffs, and workers of various
functional units were interviewed and data was collected. It helped me to understand
the function of organization deeply and also up to date information.

 SECONDARY DATA
Secondary data includes all those indirect sources of collected data, which are mainly
from:

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  Company records
 Manuals
 Magazines and Journals
 Account Books
 internet
 Govt publications

DATA COLLECTION

QUESTIONNAIRE

This method of data collection is quite popular, particularly in case of big enquires. It
is being adopted by private individuals, research workers, private and public
organizations and even by governments. In this method contact with customers
through phone and ask the questions. Questionnaires consist of questions printed or
typed in a definite form. The respondents have to answer the questions of their own.

Quite often questionnaire is considered as the heart of survey operation. Hence it

should be constructed very carefully. If it is not properly set up , then the survey is
bound to fail.

PERSONAL INTERVIEW

Personal interview is mainly done through face to face interaction. The Researcher
asks questions to the interviewee and their replies are taken as the source of data.

1.7: TOOLS FOR DATA ANALYSIS

 Percentage Method

The percentage analysis is the analysis of ratio of the current value to the base
value, either the result multiplied by 100. The Percentage Method distinguishes
between cross-controlling area data, which you maintain in an overhead structure, and
controlling-area related data, such as base cost elements, overhead rates and credit
objects. In the case of multiple- choice question the workers were categorized based
on the nature and percentage is calculated for each category. The main objective of
the percentage analysis is comparison of data.

No.of respondents
Percentage analysis = *100
Total respondents

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1.8: LIMITATIONS OF THE STUDY

The study has been conducted seriously and with very accurately. The study suffers
from the following limitations:

 The study is based mainly on the information provided by the respondent.

 Despite repeated proof reading there is a possibility of spelling error.
 Due to lack of time, I was not able to collect detailed information as the officials
in the organization were busy with their routine tasks.
 The analysis is based on the response of the respondent
 The study limited to only Kannur district

1.9 CUSTOMER ORIENTATION

A firm in the market economy survives by producing goods that persons are willing
and able to buy. Consequently, ascertaining consumer demand is vital for a firm's
future viability and even existence as a going concern. Many companies today have a
customer focus (or market orientation). This implies that the company focuses its
activities and products on consumer demands. Generally, there are three ways of
doing this: the customer-driven approach, the market change identification approach
and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic
marketing decisions. No strategy is pursued until it passes the test of consumer
research. Every aspect of a market offering, including the nature of the product itself,
is driven by the needs of potential consumers. The starting point is always the
consumer. The rationale for this approach is that there is no reason to spend R&D
funds developing products that people will not buy. History attests to many products
that were commercial failures in spite of being technological breakthroughs.

A formal approach to this customer-focused marketing is known as SIVA (Solution,

Information, Value, and Access). This system is basically the four Ps renamed and
reworded to provide a customer focus. The SIVA Model provides a

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 demand/customer-centric alternative to the well-known 4Ps supply side model
(product, price, placement, promotion) of marketing management.

Product → Solution

Promotion → Information

Price → Value

Place → Access

If any of the 4Ps were problematic or were not in the marketing factor of the business,
the business could be in trouble and so other companies may appear in the
surroundings of the company, so the consumer demand on its products will decrease.
However, in recent years service marketing has widened the domains to be
considered, contributing to the 7P's of marketing in total. The other 3P's of service
marketing are: process, physical environment and people.

Some qualifications or caveats for customer focus exist. They do not invalidate or
contradict the principle of customer focus; rather, they simply add extra dimensions of
awareness and caution to it.

The work of Christensen and colleagues on disruptive technology has produced a

theoretical framework that explains the failure of firms not because they were
technologically inept (often quite the opposite), but because the value networks in
which they profitably operated included customers who could not value a disruptive
innovation at the time and capability state of its emergence and thus actively
dissuaded the firms from developing it. The lessons drawn from this work include:

 Taking customer focus with a grain of salt, treating it as only a subset of one's
corporate strategy rather than the sole driving factor. This means looking beyond
current-state customer focus to predict what customers will be demanding some years
in the future, even if they themselves discount the prediction.

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 Pursuing new markets (thus new value networks) when they are still in a
commercially inferior or unattractive state, simply because their potential to grow and
intersect with established markets and value networks looks like a likely bet. This
may involve buying stakes in the stock of smaller firms, acquiring them outright, or
incubating small, financially distinct units within one's organization to compete
against them.

Other caveats of customer focus are:

 The extent to which what customers say they want does not match their purchasing
decisions. Thus surveys of customers might claim that 70% of a restaurant's
customers want healthier choices on the menu, but only 10% of them actually buy the
new items once they are offered. This might be acceptable except for the extent to
which those items are money-losing propositions for the business, bleeding red ink. A
lesson from this type of situation is to be smarter about the true test validity of
instruments like surveys. A corollary argument is that "truly understanding customers
sometimes means understanding them better than they understand themselves." Thus
one could argue that the principle of customer focus, or being close to the customers,
is not violated here—just expanded upon.
 The extent to which customers are currently ignorant of what one might argue
they should want—which is dicey because whether it can be acted upon affordably
depends on whether or how soon the customers will learn, or be convinced, otherwise.
IT hardware and software capabilities and automobile features are examples.
Customers who in 1997 said that they would not place any value on internet browsing
capability on a mobile phone, or 6% better fuel efficiency in their vehicle, might say
something different today, because the value proposition of those opportunities has
changed.
References:
• Dabholkar, P.A,(1993). "Customer Satisfaction and Service Quality: Two
Constructs or One?" in Enhancing Knowledge Development in Marketing,
AMA, 4, 10-18
• Kothari-C Research Methodology- Viswa publications-Reprint 1999-Second
edition.

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WEBSITES REFERED

1. www.googlescholar.com, 06/07/2014,9:30pm
2. en.http://indiamart.com/kwco-opsocietyltd10/07/2015,10:00pm
3. Wikipedia.org/wiki/wip.ltd 22/17/2015
4. http://en.wikipedia.org/wiki/Customer_satisfaction , 07/10/2015

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 CHAPTER 2

INDUSTRY PROFILE

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3.1: INDUSTRY PROFILE

The earliest confirmed and dated evidence of weaved clothe came from Turkey
about 7000 to 8000 years ago .Based on this and other anecdotal evidence,
archaeologists theories basket and basket weaving were probably among the first
invention of mankind .Because of short-lived nature of fabrics and textiles and the
complications of weather erosion, insects and fire, little evidence on the origin of
weaving has survived throughout the ages. With the evidence of art of weaving
confirmed in several locations around the world, it is through by some
archaeologists that early humans would have instinctively recognized the benefit of
woven structure by observing it in nature, such as in a spider’s web or bird’s nest.
There is confirmed evidence of weaving taking place in Egypt, China,
Mesopotamia, Switzerland and Peru dating as far as 5000 BC. Common fibers used
were linen, wool and silk.

The History of Indian cotton textile goes back to the age of Mesopotamian and
Egyptian civilization. Among Indian industries cotton textile industry has an
important place. Clothing is the necessary want of human being after food, so there
emerged the invention of textile and developed that much. The cotton textile industry
is one of the largest organized industries in India accounting for roughly 20% of the
value of India’s total industrial production and giving direct employment to about
one-fifth of the total factory labourforce. Indirectly, it also provides a means of
livelihood to a much larger number of cultivators, agricultural laboures and traders. It
is one of the leading foreign exchange earners. Industrial co-operative societies are
formed by small producers and artisans, handicraftsman to undertake small scale and
cottage industries on co-operative basis. Number of industrial co-operatives has been
formed in India in the handloom industry, coir industry and certain village industries.

The industry consist of two sectors- a well-organized mill sector and a de centralized
sector.The mill sector covers (1) purely spinning mills producing yarn only and (2)
composite mills engaged in both spinning and weaving activities. The cotton textile
mills are spread over all most all the States but Gujarat, Maharashtra and Tamil Nadu
lead in the number of mills as well as in the production of cloth and yarn. Handloom
industry accounts for a fair percentage of the total production of cotton cloth. India
earns quite a food deal of foreign exchange through export of textiles.

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The RBI has classified these societies in different ways. They are-Weavers co-
operatives, Spinning mill, Industrial estates, Industrial co-operative Banks, Other
industrial societies. The main objectives of industrial co-operatives are-Provide
employment opportunities, Skilled workers are saved from the exploitation from the
capitalist industry, Promotion of small scale and cottage industry, To increase the
production by avoiding strikes and lock out, To establish labour production in
management, To start industries in backward areas, Uplift the weaker section of the
society. The main Kinds of Industrial co-operatives in India are- Handloom industrial
co-operative, Coir societies, Handicraft societies, Dairy co-operatives, Fisheries co-
operatives, Poultry co-operatives, Housing co-operatives etc. When we analyze the
Indian economy, we can see that Indian cotton industry has the second place (1 st
agriculture). This industry spread almost all the states as well as central province in
India. Out of total products 33.5% come from hand weaving. Gujarat and Maharashtra
produces best part of the Indian cotton. In textile industry Kerala has its own part of
play. Kannur is known as City of Looms and Lore’s. It shows the importance of
Kannur in weaving. There are 19,587 people are working in the weaving industry in
13,667 Looms.

3.1.1 HANDLOOM SOCIETIES IN INDIA

Handloom Co-operations in India are mainly evolved through governmental

initiatives, as the artisans in the rural and semi urban India felt is be the vulnerable
groups. Voluntary Co-operative actions are rarely summed to have grown. Most of the
co-operative growth has been regressing with some king of obscured interest groups
who have title interest in the development of the Co-operative institutions.

In spite of the above, there have been many successful co-operatives that have
liberated themselves from the draconian rules; and have been able to generate
adequate surface for this members by marketing the business health in and outside the
country. For example, the Kanhirode Weavers Co-operative Production and Sales
Society Ltd(an ISO Certified Society). and the Irinav Weavers Industrial (Workshop)
Co-operative Society Ltd in Kerala. The Polavaram Co-operative Society in Andhra
Pradesh has hugely successful.

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Buddhist era scripts reveal that woolen carpets were known in India as early in 500
B.C. Some varieties of Indian fabrics are mentioned in the Chinese literature. This
indicates the early exports of India. Marco polo’s records show mat Indian textiles
used to be exported to China and South East Asia from Andhra and Tamil ports in the
largest ships. A port named ‘Kalyan’ was a place from where textiles were exported
in the 2nd century B.C. there is archaeological evidence from Mohenjo-Daro, which
establishes that the complex technology of mordant dyeing was being used in the
subcontinent from at least the second millennium B.C. a hoard of block printed and
resists dyed fabrics , mainly of Gujarat origin , found in the tombs of Foster, Egypt.
They were exported in the early medieval times from India to Indonesia in the 13 th
century.

At the end of the 17th century, the British East India Company had begun exports of
Indian silks and cotton fabrics to different countries. Before the introduction of
mechanized means of spinning in the early 19th century, all Indian cottons and silks
were hand spun and hand woven, a high popular fabric, called the khadi. The history
of Indian Handloom textiles is mentioned in our epics and puranas. Nearly 5 million
years ago, a piece of cotton stacks to a silver vase and some spindles were found in
excavations. This revealed that the spinning and weaving of cotton was known to the
Harappa’s.

Various materials used in spinning and the method of spinning are mentioned in the
ancient scripts. In the Vedic literature also, we can find the information about
weaving. Some historians have concluded that India may have given birth to textile
printing. India’s historical prominent role in textile production stems from its wealth
in natural resources which are silk, cotton, jute. Prior to colonization, India’s
manually operated textile: machines were among the best in the world and these
served as a model for production of the first textile machines in newly industrialized
Britain and Germany.

By the British capitalism, India once was one of the textile exporters became a net
importer of these textiles in the year 1880. This situation was continued till it got
independence. In the year 1990, India realized the sufferings of the textile sector due
to the numerous regulatory actions and then relaxed many constraints imposed earlier
on this sector. By liberalizing its policies in 1991, its, economic situation has

15
improved in a better way. The handloom sector is known for its heritage and the
tradition of excellent craftsmanship. It provides livelihood to millions of weavers
and craftsperson. The industry has not only survived but also grown over the
decades due to its inherent strengths like flexibility of production in small
quantities, openness to innovation, low level of capital investment and
immense possibility of designing fabrics.

Government of India has continued to accord priority to this sector. An

imperative step has been taken by the office of Development Commissioner -
Handlooms, Ministry of Textiles, and Government of India, to promote and
develop its exclusiveness for the global market. It’s a comprehensive and
innovative attempt among others to promote merchandising and marketing both
at the domestic and international levels which is central to the success of the
handloom sector. Brand equity of handloom is the need of the hour.
Some of the exclusive product ranges include Silk Sari from Varanasi, scarf from
Burbank, home furnishing from Bandore, shawls from Kelli, kite sari from Sholapur
and Barger, cotton sari from Chandlery and many other products can be source from
the website. The cluster specific products can be seen on the cluster web pages. The
Ministry Of India has several welfare schemes to promote Indian Handloom Industry
and exports.

INDIAN SCENARIO
India weaving industry has conventionally been one of the most promising
sectors of huge employment. In fact, after agriculture, this industry is largest
provider of work force. The abundance in the raw materials, the continuous
supply of cheap force is the contributing factors behind the success of the
weaving industry in India. However, the liberalization of the international trade
coupled with the change in the reforms of domestic economy, have made
effected the weaving industry of India negatively.

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Present scenario of Indian Weaving Industry
Despite of the fact that the Indian weaving industry employs a large section of
the Indian population, it is considered as a failing industry. Though this ancient
industry of India is experiencing a bad phase, a large market for weaving
products still exist in the market. The manufacturing of the weaving products
makes a remarkable contribution to the national GDP and even in the exports
revenue. As per the studies, it has been found out that the weaving industry of
India provides employment to approximately12.5 million people, thereby,
making this industry the largest provider of rural work force. It is preceded by
the agricultural sector.
Over 38,00,000 weaving industries have been built throughout India, and more
than 15,00,000 domestic weaving industries have been set up in the states of
North and Eastern parts of India. On the other hand, the southern states also
have their huge share of weaving industries for example, the southern state of
Andhra P radish houses some 3, 20,000 weaving industries. Most of these
industries are situated in Chirala, Pedana, Polavaram, Mangalagiri, Pochampali
etc.
Along with these centers, the coastal areas of Andhra Pradesh also have
numerous centres for weaving. All these sectors are engaged in the production
of unique varieties of weaving products. Both the weaving sectors of northern
and southern India are engaged in the weaving production for the domestic
market only.
Estimates over the years have found out that the weaving industry are
supporting some 32 other sectors that include marketing, financial,
transportation, hotels and even maintenance services.

Future scenario
It is estimated that the weaving industry in india will grow by 25% to over 35
million tons by the year 2010. The indian weaving industry will maintain its
growth throughout 2010. The Indian weaving industry will maintain its growth

17
throughout 2010. Apparel being the mostly used woven products is expected
to expand its market in the international arena as well.

3.1.2 HANDLOOM SOCIETIES IN KERALA

The handloom co-operatives of Kerala are largely differentiated from the

handloom cooperative of the other states so far as the history, structure and level of
co-operation are concerned. The formation of co-operatives in Malabar was greatly
introduced by the crisis of the late 30s and the advent grade characteristics of the
industrial labour. The Chirakkal Handloom Weavers Co-operative Society in Kannur
has claimed to have been started in 1946 at the initiative of the trade unions. In the
post-independent period, the co-operative movement gained tremendous momentum
in Kerala.

The fact-finding Committee (1954) favored co-operation to overcome the

general crisis of the industry in the Malabar region. In view of an established tradition
of co-operative creation in the Kerala state, we examine the performance of the apex
society that has a far reaching role to generate surplus from the co-operative creation
during recent years. The industry in Kerala is more organized. Even though the
weavers co-operative societies were in existence in Kerala before independence. The
share of the co-operative sector in the total members of looms was not significant till
80s. By the end of 1998, the share of the co-operative sector has rise to about 11
percent of the total looms in the states and by the year 2003, about 86 percent of the
looms of the states is controlled by the co-operative organization in the country. In the
other main handloom textile producing states such as Tamil Nadu, West Bengal and
Orissa master craftsmen (Yarn to Cloth Merchants) and independent Weavers Control
most of the looms.In order to bridge up 3 areas, the Government of Kerala set up an
apex cooperative society for handloom weavers to carry out the above jobs. The apex
society,The Kerala State Handloom Weavers Co-operative Society Ltd known as
Hantexcame into being in 1961 at the initiative of the Government.

Many handloom weavers in the northern part of the state were outside the preview of
the co-operative sector even other setting of primary societies and the apex society.
The politicians and members of co-operative build from Northern Kerala felt that the

18
weavers from their region are not received coverage from Hantex to reap the benefit
of Government programs. Under these circumstances a different form of co-operative
or Hanveev was set up in 1968 in Kannur as the Kerala Handloom Finance
corporation to promote the private handloom sector by providing finance for working
capital as well as for investment.The Government and the large number of private
factory owners and master craftsman hold the majority of the share of the corporation.
The name of the corporation was changed to The Kerala Handloom Finance and
Trading Corporation. In 1975 and it started buying fabrics from members for selling
in the open market in addition to providing loans.

This co-operation introduced a navel scheme of organizing the weavers under

common procurement center called _clusters_ by linking them to the supply-cum
procurement centers. Through not co-operatives, these procurement centers have
strong co-operative over tense. Presently, 32 clusters are operating under Hanveev
and Hanveev supplies yarn to the registered weavers to produce as per the product
specification at Hanveev.

In early days majority of handloom weavers followed the hereditary line. Earlier they
were producing cloth for their own consumption and for the need of their village.
Increase in production and improvement in transport facilities removed the hindrance
of time and eased the exchange of commodities. The skill of weaving has been passed
from parents to children. During 15th century British, French and Portuguese people
visited Kerala. They were attracted by the things like spices, ivory and beauty of
handloom fabrics. They began to purchase large quantities and exported to their
countries. Germany has established a mission called ‘Basal mission’ in 1829. This
mission paved the way of changing from home production to factory system. Apart
from this, French people started to give training in weaving. They imported versatile
loom and introduced principle designs from the hooks.

After the British captured India they took up the nourished handloom industries for
their purposes. At the end of the 18th century the monopoly came to an end. Since 19th
century with the advent of industrial revolution, the English people gave up all. They
started mechanical production in their land. During this period of foreigners the
weavers of Kerala learned all techniques and they paralleled the way for the
production of furnishing fabrics according to new style of demand.

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During the dawn of 20th century, the Sree Narayana movement influenced Kerala
society by and large prompting the caste based culture to change towards secular and
modern industrious culture so that many people from traditional thiyya/ezhava
community had taken up their employment in handloom industry to do away with the
toddy tapping to respond with the advice of Sree Narayana Guru. These changes also
have its own mark in making the present shape of Kerala Handloom Industry. It has
resulted in the production of various types of artistic handloom designs in Kerala. The
‘Kerala cassava saris are praised by the women all over India for their fineness of
count and natural colors, texture and gold borders. Kerala is also known for its
unbleached cotton handloom crepe popularly known as ‘kora’ cloth this has entered in
the foreign market and occupied a proud place in the garment industry. The secret of
furnishing fabrics from Malabar is the excellent structure and texture of the cloth,
unique color combination, wide width (98" - 120") and craftsmanship. When we look
back to the history of Kerala it can be seen that in 1498 Vascodi Gama, the
Portuguese navigator visited Calicut in Malabar. So it is well known that 15th
century handloom cloth of excellent qualities was exported Asian and
European countries .Balaramapuram, in Thiruvanathapuram district is the most
historically important place for handloom fabrics. The weavers belong to
Saliyas were migrated from Nagar coil and Thirunalveli in Tamil Nadu during
the time of Balarama Varma before 250 years. Here they produced super fine
'Mundum Neriyathu; for the need of royal family. Still they are in existence
and carry important part of the total production. The technique of producing the
superfine fabric spread from them to the local weavers in Balaramapuram and
the surrounding places. Initially they were producing 'Munds' for men with
0.4cm of width of 'Kara' (cross border) with black garn. Before 100 years the
Jeri from Surratt takes to Balaramapuram and 'Cassava saris production was
started .Koothampalli in Thrissur district is also well known for handloom
fabric. Here Devangas immigrated from Karnataka are engaged in weaving.
The 'Cassava Saris' which are being produced here is mostly with half line Jeri.
The middle class people would like to purchase this saris because of its
cheapness. The price of a sari can be reduced from Rs.5000 to 1000 by using
half fine Jeri instead of pure Jeri. Chendamangalam, in the Ernakulum district

20
is also an important handloom centre in Kerala. Here they have been producing
the double dhoti and Tvlundu' and 'Neriyathu'. The distinction of these fabrics
is in its structure in the plain structure, they have producing a special effect in
weft direction.

Kerala has 14 districts from Thiruvanathapuram to Kasargod. The handloom

industry is spread all over the state. But the handloom industry is concentrated
in certain places. The southern Kerala is famous for its superfine products, like
saris, dhotis and 'Set Munds' etc. The middle Kerala also engaged with such
products .But while going to northern side called Malabar the main production
changed to coarser varieties like furnishing items bed spreads, towels etc. The
common products in Kerala are 'thorthu' (Bathing towel) and lungies. Almost 2
lakhs of weavers are earning their livelihood from the handloom. 75% of them
are in the co-operative line. Almost 5 lakhs families are depending up on
handloom industry

3.1.3 HANDLOOM INDUSTRY IN KANNUR

The weavers are mainly working in industrial societies. For export of hand
loom products Kerala mainly depending upon the products from Kannur. The
main products from this society are shirting, made-ups, jacquards, furnishing,
Turkish towels, sateen sheets crepe such export oriented and lungies earezha
thorthu etc for domestic purpose. The products are coarser varieties Kannur
mundu is a popular variety. The main centers are Kannur, Azhikode, Chirakkal,
Kanhirode, Panoor, Kuthuparambu and Kalliasseri. There are 73 societies
established in this district and with about 50 exporters in private sector together
have, 13667 weavers working in the industry.

21
NATIONAL HANDLOOM DEVELOPMENT CORPORATION

National Handloom Development Corporation Ltd. (NHDC) was formed in

1983 as a public sector undertaking by the Government of India, an autonomous body
under the Companies Act 1956 acting as an agency to assist the speedy development
of the Handloom sector covering procurement and supply of their requirement at a
reasonable prices, ensuring the availability of raw materials like Yarn, Dyes and
Chemicals and other inputs to the handloom weaver by supplementing the effort and
increasing the marketing efforts of the state level handloom agencies and initiating the
development activities of upgrading generation for sustenance.NHDC has extended its
service and support in the state of Kerala through hand weavers and Hantex Co-
operative societies. HEPC members unit,Kerala Handloom Association members unit
with the approval and office at the directors of handloom and textile for making the
requirements of inputs. NHDC has opened one regional office at Coimbatore and
branch at Kannur.

GROWTH OF THE INDUSTRY

This society was model society to the many of the industrial type of Handloom
Weavers Co-operative Societies in different part of these states. The industry
situated about 3.5 km. away from Kannur Railway station and working on common
work shed with other facilities the dye-house, office building etc. constructed on its
own land and weaving all varieties according to the modern trend. By years the
society had made mainly use of different project package scheme of Government of
India mainly for the production of exportable quality handloom goods and
marketing of economical manner.

The firm is mainly producing exportable handloom products like bed sheet, pillow
cover, Mat, Table cover, Bag, Munds, Furnishing fabrics etc. based on the order
obtained from the reputed handloom exporters in and around Kannur, Chennai,
Bangalore and Mumbai. Here the decisions are taken by the Board of directors;
consist of President, Directors and Members. Secretary is the head of the
organization where he acts as a link between organization and Board of directors.
The workers in the company are also the members of the Board of directors. Several
training programmers are arranged to workers to improve the skill and knowledge

22
in the work. The company is going on a loss, even then the workers are paid 8.33%
bonus.

The promotion of the handloom helps to improve the standard of living of the
weavers belonging to all co-operative society is proposed to implement the
development of products and the market.

THE 1985 TEXTILE POLICY AND PROMISES TO HANDLOOM SECTOR

The 1985 textile policy through it made major departure from the past by
proclaiming increase in productivity as the main objective, did not shy away from
making profuse- prornises to the Handlooms- "to preserve the distinctive and
unique role of handlooms to enable them to realize their full potential and ensure
higher earnings to the weavers`' (GOI 1985:4].

The measures intended to preserve the handlooms are

a) Modernization of looms to improve handloom productivity and quality.

b) Necessary measures to encourage and increase spinning in Khadi sector,

given its large employment potential.

c) Ensuring the availability of yarn and other raw materials at the reasonable
price.

d) Encouragement to the production of mixed and blended fabrics on

handloom by making man-made fabric adequately available at reasonable
prices by increasing domestic production supplemented by imports.

e) Providing market facilities and

f) Introduction of contributory thrift Fund and work shed-cum-housing

scheme.

23
HANDLOOM RESERVATION Act

Handloom (Reservation of Articles of production) Act, 1985 (22 of 1985)

reserving 22 varieties of articles for exclusive production in the handloom sector
is a major concrete initiative in the direction of protecting hand loom from the
power loom and mill sectors.

Two major grounds on which this act was challenged were;

a) That the act would lead to the monopoly of the handloom industry and

b) That the act violated the equality clause (Articles l4 of the Fundamental
lights) of constitution.

IMPACT OF THE NTP-ANOVERVIEW

Three months of assessing the impact of textile policy on the structure of the textile
industry in general and on the handloom sector in particular could be identified.
They are (a) the position and the number of handlooms: (b) hank yarn availability
and (c) The fabric production in the handloom sector.

a. Handloom Position:- According to the Siva Raman Committee (1974) for

the even power loam set up, six handlooms are rendered dormant - which
means that for every job created in the power loom weavers are displaced.
Through the Siva Raman committee noted the alarming rate of growth of
poorer loom and duly recommended strict restriction on both the permission
to set up new power loom as well as on the varieties to be manufactured. the
expansion in the sector went unhindered. There is a phenomenal growth in
the power looms between 1975 and 1982-1983 and the total tally went up to
6 lakhs. Going by the Siva Raman committee’s estimate, the addition of
2.90 lakhs power looms should have displaced 17.4 lakhs handlooms 1988
handlooms which in turn mean a loss of 41.76 lakhs jobs per annum in the
handloom sector. But the 1987-1988 handloom census show a declaring of
handloom to the tone of 2.39 lakhs and another 2.46 lakhs recorded has
being rendered dormant.

24
b. Yarn availability - Another method of assessing the relative position of the
different sectors in the industry is on there is of production and delivery of
yarn. Through it would be difficult to establish how much of cotton yarn has
been made available to the mill and power Zoom sector, as far as handlooms
are concerned on the basis of the data available on the hank darn delivery
and assuming that all this is converted in to cloth on the handlooms it would
be possible to guess how much is cloth is produced on handlooms. It is
pertinent to note that while the hank yarn obligation of the spinning mills
was 50 percent of the total Yarn production, the cotton hank yarn delivered
between 1987-1988 and 1994 -1995 never did exceed 20 percent instead has
declined to 23.10 percent in 1992-1993.

a) It is estimated that 1 kg of cone or hank yarn yields 10 meters of power

looms or handloom cloth. Thus the hank yarn delivered should match with
the cotton cloth produced on the handlooms in the proportion of 10 meters
per 1 kg. of yarn. But what could be found in the data for the period of 5
years from 1988-1989 to 1992-1993 is a gross incongruity or mismatch
between the figures of cotton cloth produced and the hank yarn delivered,
with the former being many times more than the letter during this period.

c. Fabric Production: - Now let us turn to the analysis of fabric production

sector wise. While the cotton fabric production in the mill sector was 41
percent in 1980-1981; it has declined to 28.18 percent in 1985-1986: its
decline has been sharper and reached 10.5 percent by 1992- 1993. The total
fabric production in the mill sector also recorded a declining trend from
37.93 percent to 9.15 percent between 1980-1981 and 1992-1993. The
cotton fabric production in the handloom sector during this has fluctuated
between 31 and 37 percent. The overall production in the handloom sector
during has recorded a marginal increase between 1985-1986 and 1988-1989
but declined by 4.6 percent in 1989-1990 and recorded only marginally in
1992- 1993.

25
HANDLOOM CRISIS

The handloom industry in the last decade witnessed a crisis serious in term of
intensity and expense, The consequences of this were large scale displacement of
weavers steady decline in handloom cloth production and of course severe hardship
to the weavers in the old age group when they were pushed to starvation while the
younger weavers resorted to occupational shift and migration for survival.

It would be improper to talk about this crisis in general terms for its impact has
differentially felt, determined by spatial. organizational and product related factors,
While the weavers in the centers producing color - jerri , tie and dye silk varieties
and special high value sarees and export varieties could cope up with the crisis. In
spite of the initial shocks largely due to the relatively assured up-market, it is the
weavers producing cheap varieties using low-count earn who had to bear the brunt
of the crisis which received national attention occurred in1988-1989 & 1991.

RECURRENT CRISIS

The periodic crisis in the handloom sector is an immediate consequence of the

unpredictable and sharp rise in prices of cotton yarn and chemical dyes. The
following table shows the increasing trend in the price of the cotton yarn.

HANDLOOM - POWER LOOMS COMPETITION

Of the total production of cloth in India, 19 percent is in the handloom sector and
59 percent is in the power loom sector. In this field there exist 38.91 lakhs
handlooms and 16.29 lakhs power looms and 1.84 lakhs other machines. By saying
on the basis of technology, with the development of modern hi-tech looms,
electronics and computer the handloom sector become more primitive. Therefore, it
must be changed. But for each loom there is a need for considering its own
economic and social factors. If we examine these factors we can understand that the
according of interest of the industry and the common society, each looms have its
own merits and demerits. Therefore there is no need for competition between
handloom and power looms. Therefore the approaches are to fixing the role of each
sector by dividing the products on the basis of its quality.

26
LOOMS DISTRIBUTION

According to the national handlooms census conducted in 1987-1988. . There was

3.27 1akhs loom less weaver in the country. In the last couple of decades there has
been a steady and definite decline of the independent weaver system and also of the
co-operative. This decline has been largely due to the unequal competition from the
power loom sector and its relatively cheap and affordable cloth flooding the rural
markets. As a result, the vulnerable independent weavers have either resorted to an
occupational shift or settled with the master weavers as wage earners. Therefore, the
government adopted loom to loom less weaver's scheme conceived by the ministry
of rural development in 1993 , earmarked Rs.523.20 crore with the subsidy
component of Rs. 130.80 crore from the IRDP phased over 3 years from 1993-
1994 with a target of 1. 90 lakhs is looms per annum. But this package in reality,
would only be adding another 3.27 lakes looms to the 2.79 lakhs idle loom s as on
1987-1988 and many more that could have been forced to be idle in the intervening
years.

HANDLOOM DEVELOPMENT CENTRES SCHEME

Under this scheme 3000 handloom Development Centers (H D Cs) and 500 Quality
Dyeing Units (Q D Us) are to be set up with an assistance of Rs.27 lakhs per QDC
and Rs.7.83 lakhs per QDC and phased over four years starting from 1993-1994
and completed by the end of the Eight Five Year Plan. The weavers covered by
HDCs Could be provided with the raw materials, i.e. yarn and dyes, training in
improved dyeing and designing, and marketing of the production. While during
1993-1994 only 267 HDCs and 66 QDCs were sanctioned at a cost of Rs.10 crores
far below the target set.

27
NEW TEXTILE POLICY (2000)

On 2nd November 2000, the government of India announced the new textile policy
to make India a global player in textile and readymade garments. The government
has decided to de reserve the garment industry from the SSI category so as to make
the industry internationally more competitive. But the government did not agree to
the recommendation of Satyam Committee to abolish of Handloom Reservation Act
and removal of hank yarn obligation due to social causes including the need to
protect the handloom weavers. But the study of the NTP clearly shows the
increasing gap between the Five Year plan priorities and specific policy priorities
there by strengthening the view that planning may become irrelevant in the context
of liberalization.

PROBLEMS FACED BY WEAVERS HANDLOOM CO-OPERATIVES

Weaving is a profession and weavers as a caste play a vital role in the Indian
society. They are engaged in this industry, because they do not have any other
alternatives source of livelihood and as such draw the attention of the government
to took to their problems. Some of the important problems they face are-

1. Inadequate and untimely supply of raw material :- Yarn the main input in
case of handloom industry which are produced in mills .It reaches to the
weavers through middleman who make high profit, supply to the weavers at
the high price and ultimately the cost of production of handloom products
goes up.

2. Finance: The weavers are economically poor and are not in a position to
invest money in the process. Hence, they want sufficient and timely finance
in easy terms.

3. Marketing:-The weavers are unable to sell their product at a profitable price

because of their cloth is less compared to handloom. Hence, in the market
the handloom products are unable to compete with the mill or power loom
products.

To solve the above problems of the weavers, the idea of forming weaver’s co-
operative societies was thought of therefore, government directed its efforts towards

28
brining weavers in to the co-operative field weavers co-operative are started in
every nook and the corner of the country and it has made varied progress in
different states.

GOVERNMENT POLICY AND HANDLOOM INDUSTRY

Rajiv Gandhi’s regime marked the beginning of the early phase of liberalization .A
series of new policy initiative under taken during this period, unrestrained by the
ideological inhabitations of the earlier regimes, points to the shift. The hall mark of
the early phase of Rajeev Gandhi’s tenure was decisive attempt at a shift from the
frame work of state controlled import substitution to that of a liberalized market
economy and export oriented growth.

It is a decade since the new textile policy was adopted by the Rajeev Gandhi
Government. It is a time for a critical appraisal of the policy. Here we attempt to
assess the impact of the policy on the handloom sector.

TECHNOLOGICAL PROBLEMS

Generally, the machine used for the production of cloth is technically known as
looms. Today, the primitive loin looms, there is a frame looms, power loons are
working on the basis of manpower and from power looms to multiphase looms
working by the push do the human resources. The Kannur looms, which is included
in the items of Malabar frame looms is sufficiently able to produce the diversified
products. But the productive efficiency of these looms is limited as compared to the
modem hi-tech looms which are using the machine and electronic technology. The
people in the domestic and foreign countries using the cloths not only for satisfying
their basic needs, but also for expressing their thoughts and feelings.

Therefore, by taking into account of changing fashions and use value, the
application of technology which satisfying the diverse customers interest is needed
for Kannur looms.

29
SOCIAL PROBLEMS

By considering the total employ rent capacity in this field, we can see that in Kerala
and particularly in Kannur the participation of youngsters is reducing. By taking in
to the account the ease of labourers who participated in the survey, 67 percent were
doing this job more than 20 years and 14percent of them have this job experience of
less than years; that is the new generation wilt not ready to come in to this field.
Insecure future and low earnings are the two important reasons for this
phenomenon. In Kannur district 71 percent of the laborers participated in this
survey have the monthly income below Rs.1000/-

POLICY RESPONSE

With specific reference to the handloom sector, because of the serious survival
crisis of a large number of weavers as a consequence of the liberalization drive the
deregulation of the textile industry and decontrol of trade in yarn being two
significant aspects of relevance here public policy intervention, in principle, has
become necessary. Among the aforesaid factors the researcher hall focus on those
schemes that address certain crucial aspect of the crisis.

30
 CHAPTER 3

COMPANY PROFILE

31
3.2: COMPANY PROFILE

3.2.1 KANHIRODE WEAVER’S CO-OPERATIVE SOCIETY

The Kanhirode Weavers Co-operative production and sales society (also known as
weave co.)Ltd. No.L.L.44 is registered as co-operative society under Act VI of 1932
(Madras). It is located in Kanhirode Village at Kannur Taluk in Kannur District. Its
operation shall be confined to Kanhirode and Kuttiattooramsam in Kannur Taluk,
Munderi and Anjarakandyamsam in Kannur and Kodaly. Nearly 400 families
consisting both men and women weavers actively and creatively engaged in hand
crafting. The society is equipped with latest technology for production high quality
handloom product for the international market based on design color forecast from
reliable source. Blended with tradition and latest technology the delivered products
meet the standard of the discerning buyers in the sophisticated domestic and
international market. It is now manufacturing a group of products like bed sheets,
furnishing, curtains, silk saris, shirting etc.

The main objective of the society is to raise fund for the society from members and
others including government. From Kerala Handloom Finance and Trading
Cooperation , Kannur by issuing shares, borrowings, equity participation and by
deposit or otherwise to purchase appliance on a may be required for the India by and
relating the same whether for cash or on credit to weaver members who shall convert
them into finished goods and deliver them to its society.

Kanhirode Weavers Co-operative Society Ltd. No: LL44 otherwise known as

“WEAVS.CO” was registered on 16-05-1952 as a producer's co-operative society
under the act VI of 1332 (Madras), and its function started on 05-10-1952, with a paid
up share capital of Rs.10130/-

The object of the society is to be improving the handloom industry and to raise the
economic condition of weavers residing nearby area. The society is completely
engaged in manufacturing of various kinds of cotton fabrics, which is suitable for
export market as well as local market. At the initial stage of society produced thorth
and pudava and sold the same in and around the village by the weavers and later on
bullock carts were used to carry the goods.

32
Later from 1964-1965 onwards, the society had the production of shaming and lower
count is which were sold in the different part of the country through agents. After that
during 1973-1974, society started production of crape fabrics against the order of
furnishing fabrics suitable for export market, and supplied the same by the merchant
exporters. The society had started its direct export during the year 1995-1996. Now
also society producing 2/100, .2/180 counts, stain bed sheets and other further fabrics
and made ups. The society is availing NABARD cash credit by the extent of Rs.1.20
crores.

Considering the progress achieved by the society, the government had sanctioned
various schemes to the society for further development, They are :
1. Handloorn Development Centre
2. Quality Dyeing Centre
3. Silk weaving unit
4. Common facility centre for silk yarn dyeing
5. Handloom jute development centre

BRIEF HISTORY OF THE SOCIETY

The Kanhirode Weavers Co-op P & S Society Ltd. No.L44 was registered on
16.9.1952 as Producer co-op society under the Act VI of the 1932 (Madras) and
started its function on 05/10/1952. The Weave Co is working the last 55 years. The
intention to start the esteemed society was to provide regular employment to the poor
workers at a reasonable wages and thereby to improve the economic conditions of the
weavers. Initially the weavers supplied in and around the village 'thorth' and 'pudava',
which was the main product of the society and later on bullock cart, were used to
carry the goods. The society is engaged for manufacturing of various kinds of cotton
fabrics which is suitable for export market as well as local market.

The 1964-65s was the period; which gave the society a hope to shine in the textile
world; the society started producing shirting & lower count lungies, which were sold
in different part of country through agents. During 1973-74 the society started
producing crepe fabrics, which attracted orders of merchant exporters. The
trendsetters stared producing furnishing fabrics suitable for export market and

33
supplied the same to merchant exporters. The innovation team entered into the
international market in the year 1995-96.

The society produces top quality lungies-using 2/100s.2/80s counts. Satin bed sheet,
furnishing fabrics and made ups are the other product of the society which gives a
charm to all interiors. With the intention to give the market variety of quality products
society started producing silk fabrics, with the state- of the- art Central Silk
Technology Research Institute and Seri fed. Govt. of Kerala had granted financial
assistance for the purpose. We are having workforce of 500 workers and 300 working
looms with various width capacity form 48-90 inch. We are having 30 switching
machine and 2 dehumidification rooms to keep the geniuses of fabrics.

3.2.2 DEPARTMENTS IN KWCS

PRODUCTION DEPARTMENT

Production may be understood as the organized activity of converting row materials in to

finished products. Weaving and Dyeing are the main production process in the society. The
Production Department produce quality product as per the requirement of the parties for local
market and international market.

FINANCE DEPARTMENT

Financing is a very important factor in every enterprise. Therefore its management requires
special attention. As finance or money is the important for any activity especially in business.
The finance department of the KWCS prepares various financial statements like trading a/c,
P&L a/c, Balance Sheet, etc

MARKETING DEPARTMENT

The basic objective of marketing is to satisfy human wants. The end of all the marketing
activities is the satisfaction of human wants and then increase in consumptions, creation of
goodwill, price stability, etc. Marketing management is another important functional
department in the society.

34
PERSONNEL DEPARTMENT

In KWCS, there is a separate specialized department for managing human resources. This
department is coordinated by the chief executive or secretary.

QUALITY CONTROL DEPARTMENT

Every process Kanhirode weavers' right from procuring the raw material to the process
finished goods has stringent quality control at every stage. All the process are non-
carcinogenic and ecofriendly applying technology retaining the tradition crafting techniques

INFRASTRUCTURE

The society has provided adequate buildings, work place, and other utilities
for the effective operations. Adequate machines are provided to carry out present
production process. All available literature in the field of processing and sewing
departments is made available. Sufficient communications means between the
production centers and head offices are also available at present.

35
ACHIEVEMENTS

1. ISO 9001-2000

The first ISO 9001-2000 certified primary handloom co-operative society in the state.

2. GOLD MEDAL

The contribution of the society in the field of craftsmanship was well appreciated and
awarded with GOLD MEDAL for the BEST PERFORMANCE by the Ministry of
textile, Govt. India during 1993-94.

3. The Govt. of India had selected the society for participation in international trade
faire at Frank first, Germany during 1995 and 2004.

36
 3.2: ORGANIZATIONAL CHART

Board of Directors

Board of Directors

Board of Directors

Manager of office Business Manager Production Manager

& Administration

Accountants Marketing

Dyeing Weaving QAM

Master Master
Senior Clerk

Domesti Export Asst. Asst. Quality

Junior Clerk Dyeing Weaving Inspector
c
Master Master

Stitching Go down
Supervisor Manager

Packing Labeling Dispatching

Figure:3.1 Organization structure - KWCS.

37
VISION

A complete range of handloom fabrics in heritage old tradition of classic

wrap-weft combinations, importing modern element of convenience, without
compromising upon the core values of quality. A fabric range has been created
through adequate research and expertise, which will enable Indian Textiles to acquire
a competitive edge in global market.

PRODUCT PROFILE

INTERNATIONAL MARKET

 Furnishing fabrics

 Curtain
 Cushion cover
 Beret cover
 Apron
 Table mat
 Table cover
 Bed sheet
 Dress materials
 Shirting
 Glues
 Potholder
 Napkins
 Runner

38
LOCAL MARKET

20% of the products are sailing through dealers through retail counters, exhibition
stall etc. the main products of the society sold are:-

1. Bed sheets.
2. Lungies.
3. Double Dhotis.
4. Shirting.
5. Curtain.
6. Cushion.

3.2.4 PROBLEM IDENTIFICATION AND DEFINITION

Kanhirode weavers is a leading handloom textile manufacturing company in Kannur

district (Kerala).It has whole lot of customers who are using its products because of
the excellent quality. Quality is one of the variable which is affecting customer
satisfaction. This project titled
“A study on Customer Satisfaction with the special reference to Weaveco brand of
Kanhirode Weavers Co-operative Society.” aims in a detailed study of how other
variables affect customer satisfaction.
Statement of problem:
 Change in customer preference due to excess pricing strategy.
The customers are having a tendency to lose the interest towards WEAVECO
brand of Kanhirode weaver because of their pricing strategy.

Other problems being identified are:

 The company is not giving attention on marketing their products.

 The price range seems to be high while comparing with competitors products.
 There is a lack of good and keen relationship with the customers.
 Kanhirod weavers are suffering a high level of competition from power looms.

39
PROBLEM FORMULATION
 Problem formulation means identifying the controllable and uncontrollable
variables that constitute the problem.
 Controllable variables are those the company can handle and control given its
current resources.
 Uncontrollable variables are related to the competitors, markets, legal
environments and global factors which are uncontrollable.

Here the main study is conducted in households and other retail shops. So the
controllable and uncontrollable variables should be defined in relation to two sides.

Variables according to Company

Some of the controllable and uncontrollable variables identified from the

customer’s perception are given below:

Table showing controllable and un-controllable variables

CONTROLLABLE VARIABLES UN-CONTROLLABLE VARIABLES

Material quality Competition
Price Seasonal issues
Communication Special preference of customers
Durability
Customer service
Innovativeness

CONTROLLABLE VARIABLES

Material quality

Only if the quality of the material is good, Kanhirode weavers could charge optimal
price for their products. As it is a ISO certified company they always do care for the
quality of the material. Since they take material quality into consideration, there is a
demand for their products.

40
 1. Fabric
The fabric should have been cut and sewn on the grain. Patterns and stripes
should match all over the garment. The fabric should also hold its shape fairly
well if you grab a handful of it, bunch it together, then let it loose. There should
be no colour fading , cuts , patch marks etc.
2. Seams and Hems
The edge of seams and hems of a high-quality garment are always
sewn straight. They are also "finished". They are never left "raw". This special
application prevents the seams from unravelling. Seams and hems should also
be pressed so they lie flat.
3. Trim
any trim that a high-quality piece of clothing has should be sewn on securely.
The trim should also complement the garment in colour and in style.

Price

All the variables are interconnected. If the quality is good, the price charged will be
at max. The higher the quality, the higher the price will be. The price varies
according to production cost, seasons and the taste and preference of the customers.
In the case of Kanhirode weavers the company is charging a high price.

Communication

The success of an endeavor hinges on the ability to communicate effectively in

today's fast paced life. In such a scenario effective communication holds the key.
Effectively communication centers round the usage of words, speed of delivery of
words, pitch modulation and body language. Using the right tools to communicate the
right messages at the right time can salvage a crises and motivate people to work
towards success.

On the bases of two month experience in Kanhirode weavers, communication skills of

the management are highly praiseworthy. They are good in dealing with customers
and other co-workers. Most of the employees are experienced and as a result they are
able to retain customer .But because of intense competition they are not able to attract
new customers.

41
Durability

Durability of the products is an important factor which affects the customer

satisfaction in textile industry. The product should be of high quality and its should be
able to last longer .As the weavers concentrate mostly on furnishing fabrics, curtains,
shirting’s, bed spreads etc. durability becomes a key element which constitute
customer satisfaction.

Customer service

The success of a company depend on the effective customer service .Customer service
depicts how the firm communicate with its customers, how complaints are resolved,
efficient delivery of products and effective packing etc.

Innovativeness

Innovation means bringing something new to market. A success of a product depends

upon how an organization is able to bring new products to the market. Kanhirode
weavers are bringing new products to domestic market. They are the pioneers weavers
in the Kannur district who brought natural dyed cloths.

1.5.2 UN-CONTROLLABLE VARIABLES

Competition

Kanhirod weavers faces severe competition from other handloom co-operative

societies and power looms in the region, and power looms outside Kerala mainly
Tamil-Nadu.. Almost all these enterprises are charging different prices and other
policies. As such, only if comes with creative thinking and innovation they could
survive in the market. As a result, it depends on the management to come up with
entirely distinct policies.

Seasonal issues

42
Climate change could be about to claim a new victim of the textile industry.
Designers and industry experts fear that the traditional seasonal collections which
have formed the backbone of the business may become meaningless due to increasing
unpredictability of the weather. As global warming increases, the changes in the
season have become more unpredictable. As a result, the type of clothing people buy
depending on season has also become unpredictable and shortage of raw materials is
common. So the organization cannot produce according to customer needs and
preference. Ultimately affecting customer satisfaction.

Special preference of customers

In textile industry customer always demands for uniqueness as taste and preference of
each one differs from one another. This uniqueness may be in form of quality , colour,
patterns, fabric type, texture etc. Some merchants also gives importance to packing.
These factors are unpredictable and a thus effects customer satisfaction.

43
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

44
 4.1: DATA ANALYSIS AND INTERPRETATION

The raw data is collected from the respondents has to be classified in to some
purposeful and usable categories. The classified data then put together in form of
tables. For this purpose master table should be framed and from this master table
individual tables are prepared. The tabulated data are then put in to mathematical test
used for analysis including simple percentage analysis and weighted average analysis.

Here the researcher has used simple percentage method for analyzing the data
collected through questionnaire from 100 respondents including households and
retailers. For the purpose of framing individual tables the researcher has prepared
master tables.

Interpretation is search for the broader meaning of research findings. Through

interpretation the meaning and implementation of study becomes clear. Analysis is
not clear without interpretation and interpretation cannot be processed without
analysis. Both are interdependent. It connects the findings with established theories or
available stock of knowledge in a particular area of research.

The following pages include the individual tables and their corresponding chart based
on the percentage analysis and also the interpretation based on analysis.

45
 Table 4.1
Table showing age of respondents

AGE NO OF RESPONDENTS
20-30 25
30-40 35
40-50 22
Above 50 18
Total 100

Diagram 4.1

Diagram showing Age of respondents

30-40, 35
Age of Respondents
40

35

30
20-30, 25
25 40-50, 22
20 Above 50, 18

15

10

0
20-30 30-40 40-50 Above 50

Interpretation

The diagram above shows the age of respondents. About 35 % of the respondents are
between 30-40 and least is above 50 i.e. 18%.

46
 Table 4.2

Table showing Customer satisfaction on Quality of the Weaveco Brand

PARTICULARS NO. OF RESPONDENTS

Highly satisfied 78
Somewhat satisfied 10
Neutral 09
Dissatisfied 03
Highly dissatisfied 00
TOTAL 100

Diagram 4.2

Diagram showing Customer satisfaction on Quality of the Weaveco Brand

Customer satisfaction on Quality of the

Weaveco Brand
80
No. of respondents

60
40
20
0

Customer Response

Interpretation:

The diagram shows that most of the customers are highly satisfied with the quality of
weaveco brand i.e., 78% followed, and no respondents are highly dissatisfied with the
quality.

47
 Table 4.3

Table showing Customer satisfaction on Durability of the Weaveco Brand

PARTICULARS NO. OF RESPONDENTS

Highly satisfied 48
Satisfied 39
Neutral 10
Dissatisfied 03
Highly dissatisfied 00
TOTAL 100

Diagram 4.3

Diagram showing Customer satisfaction on Durability of the Weaveco Brand

Customer satisfaction on Durability of the

Weaveco Brand

Interpretation:

The diagram shows that the durability of weaveco brand is excellent among
respondents ie.48% and there is no respondents say that the durability is poor.

48
 Table 4.4

Table showing Customer opinion on Price of product.

PARTICULARS NO. OF RESPONDENTS

Very high 30
High 60
Reasonable 08
Low 06
Very low 06
TOTAL 100

Diagram 4.4

Diagram showing Customer opinion on Price of product.

Customer opinion on Price of product

100%
No. of respondents

50%

0%

Customer response

Interpretation:

This diagram says the price of product is high (60%), and only 6% of respondents
says the cost is very low.

49
 Table 4.5

Table showing Customer satisfaction on Price of the Weaveco Brand

PARTICULARS NO. OF RESPONDENTS
Highly satisfied 3
Satisfied 20
Neutral 10
Dissatisfied 55
Highly dissatisfied 12
TOTAL 100

Diagram 4.5

Diagram showing Customer satisfaction on Price of the Weaveco Brand

Customer satisfaction on price of

Weaveco barnd
60
No. of respondents

50
40
30
20
10
0

Customer response

Interpretation:

The diagram above shows the customer satisfaction on price of Weaveco brand.
About 55% of them are dissatisfied on the pricing and only 3% are highly satisfied.

50
 Table 4.6

Table showing Customer satisfaction on service provided by company

PARTICULARS NO. OF RESPONDENTS

Highly satisfied 35
Satisfied 55
Neutral 10
Dissatisfied 00
Highly dissatisfied 00
TOTAL 100

Diagram 4.6

Diagram showing Customer satisfaction on service provided by company

Customer satisfaction on on service

provided by company
60
No of respondents

40
20
0
NO. OF RESPONDENTS

Customer response

Interpretation:

55% of respondents say that the service provided by the company is very good. And
any of the respondents says that the service is poor or the service is very poor.

51
 Table 4.7

Table showing Customer opinion on Innovativeness of Weaveco brand

PARTICULARS NO. OF RESPONDENTS

Excellent 31
Very good 35
Good 21
Poor 13
No opinion 00
Total 100

Diagram 4.7

Diagram showing Customer opinion on Innovativeness of Weaveco brand

Customer opinion on Innovativeness of

Weaveco brand

Excellent
Very good
Good
Poor
No opinion

Interpretation:

The majority of respondents says that the innovativeness of weaveco brand is very
good (35%), followed by excellent (31%) and there is (13%) respondent telling
service is poor.

52
 Table 4.8

Table showing Customer satisfaction with the delivery schedule of weaveco

brand

PARTICULARS NO. OF RESPONDENTS

Highly satisfied 32
Satisfied 40
Neutral 26
Dissatisfied 02
Highly dissatisfied 00
TOTAL 100

Diagram 4.8

Diagram showing Customer satisfaction with the delivery schedule of weaveco

brand

Customer satisfaction with the delivery

schedule of weaveco brand
40
No of respondents

30
20
10
0
NO. OF RESPONDENTS

Customer response

Interpretation:

Most of the respondents are satisfied (40%) with the delivery schedule of the weaveco
brand and followed by highly satisfied (32%) with the delivery schedule of weaveco
brand. And no one is dissatisfied with it.

53
 Table 4.9

Table showing customer opinion on the packing and labeling of weaveco brand

PARTICULARS NO. OF RESPONDENTS

Excellent 60
Very good 28
Good 10
Average 02
Poor 00
Total 100

Diagram 4.9

Diagram showing customer opinion on the packing and labeling of weaveco

brand

Opinion on the packing and labeling of

Weaveco brand
70
60
No of respondents

50
40
30
20
10
0
Excellent Very good Good Average Poor
Customer response

Interpretation:

Most of the respondents said that the packing and labeling is excellent (60%), and any
one of the respondents said packing and labeling was poor.

54
 Table 4.10

Table showing most important factor in weaveco brand

PARTICULARS NO. OF RESPONDENTS

Quality 44
Price 13
Attractiveness 11
Durability 22
Customer service 10
TOTAL 100

Diagram 4.10

Diagram showing most important factor in weaveco brand

Most important factor in Weaveco brand

No. of respondents

50
40
30
20
10
0
No. of respondents

Customer response

Interpretation:

The most important factor in weaveco brand is quality (44%), and the least important
factor that respondents say is attractiveness.

55
 Table 4.11

Table showing the medium which tells about the brand

PARTICULARS NO. OF RESPONDENTS

Existing customers 71
Internet 09
Radio 17
Television 00
Magazines 03
Total 100

.Diagram 4.11

Diagram showing the medium which tells about the brand

The medium which tells about the brand

80
70
60
No. of respondents

50
40
30
20
10
0
Existing Internet Radio Television Magazines
customers
Customer response

Interpretation:

The table show that the medium which tells most about the weaveco brand is through
the existing customers 71% and there is no respondent who tells about television

56
 Table 4.12

Table showing requirements needed to satisfy the respondents more

PARTICULARS NO OF RESPONDENTS
Improve quality 25
Reduce price 54
Retain brand image 16
Innovativeness 05
Total 100

Diagram 4.12

Diagram showing requirements needed to satisfy the respondents more

Requirements needed to satisfy the

respondents more
60

50
No. of respondents

40

30

20

10

0
Improve quality Reduce price Retain brand image Innovativeness
Customer response

Interpretation:

The respondents says that the requirements needed to satisfy the respondents is to
reduce the price(54%) followed by improved quality (25%) and least among the is
innovativeness.

57
 CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

58
FINDINGS

Following are the important findings of the study:

 Although Kanhirod weavers are leading in material quality, 55% of the

respondents are not happy with its pricing. And 3% of the respondents are highly
satisfied.

 People buy the product of Kanhirode weavers because of its quality. About 78%
of customers are satisfied by its quality.

 Kanhirode weaver has the highest material quality but they lose their market
share due to poor marketing.

 Kanhirode weavers get market for its products through its existing customer and
through government organized stalls. So they are not able to market its products
to an extensive area.

 Customers don’t get proper service for their products as there is no permanent
stall for the organization is an easily accessible area.

 Kanhirode weavers are not currently in exporting because of high cost of

production, change in government policy and Forex fluctuations.

 The products of the weavers are not able to attract youth as it’s not trendy and
attractive. Their main aim is on the adults over 35.
 In regards of assisting customers, which means to convince customers to buy the
product, Kanhirode weavers is lacking experienced employees who are good in
communication skills. So they are not able to keep good and keen relationship
with the customers.

59
 Kanhirode weavers is using just in time system of production so they are able to
avoid wastage and idle inventory.

SUGGESTIONS

On the basis of the analysis of data collected from the respondents and the findings
arrived at a few suggestions are also made.

 Kanhirode weavers can enter in to readymade garment industry as they have the
all the necessary facilities in the current factory itself. By diversifying in to this
field they can spread cost and thereby reducing prices.

 Kanhirode weavers also need to adjust the prices to make the clothes more
affordable to middle and lower class members. They can do this by reducing cost
of production.

 The firm may re-establish exports so they can tap the overseas market .Thus they
can gain more profits.

 Kanhirode weavers need to increase their advertisements to attract a larger group

of potential customers. They need to create advertisements that will specifically
attract youth and teens as they are the largest buyers of clothes.

 Innovative and creative ideas should be put forward by Kanhirode weavers to

survive in the market. For active customer participation, there should be a
research and development department in Kanhirode weavers.

 Retention of customers is very important in this field. In order to retain

customers, they should satisfy the customers to the maximum by offering
innovations, discount, offers, price coupons etc.s

60
 Kanhirode weavers need to increase their advertisements to attract a larger
variety of people. They need to create advertisements that will specifically
attract youth and teens as they are the largest buyers of clothes.

61
 CONCLUSION

Customer satisfaction index is a good tool to make improvements in the product and
services of the company. And therefore should utilize carefully and kept as
confidential as possible.

Kanhirode weavers are already doing well in several areas and need to maintain such
high standards in customer need and expectations.The overall service of the company
is good,the company is providing high quality clothing materiel’s and have excellent
delivery and packing system.

It has been observed that most of the customers are satisfied with the quality,
durability, packing, delivery schedule etc. of the company and most of them are
satisfied on th-e services provided by the firm. But the problem is that most of
the customers including households and other retailers are dissatisfied with the pricing
of the products. The customers are thus drifting away from the Weavecobrand, which
in turn is affecting the company much. And employees are not able to communicate in
an effective way to the customers. The firm is also not giving importance on
marketing their products and they are lacking good showroom in an easily accessible
area. These all factors are leading to reduction in popularity of the brand.

The company should give importance to pricing as well as marketing then only they
can sustain the market. High customer satisfaction helps the company to retain its
existing customers as well as generate new customers through word to mouth
publicity and value added services.

62
 QUESTIONNAIRE
Dear sir/Madam,

I am pleased to introduce myself as MBA student I am doing my project at

KANHIRODE WEAVERS CO-OPERATIVE SOCIETY KANNUR.The purpose of
the study is to know “A STUDY ON CUSTOMER SATISFACTION LEVEL OF
KANHIRODE WEAVERS”.

I request you to kindly spare your valuable time for completing this questionnaire.

( please mark for the relevant box)

1. Name:
2. Gender
a. Male
b. Female
3. Age
a. Below 20
b. 20-30
c. 30-40
d. 40-50
e. Above 50
4. Monthly income
a. Less than 5000
b. 5000-8000
c. 8000-10000
d. 10000 and above
5. Do you use products of Kanhirodeweaver’s co-operative society?
a. Yes
b. No

63
6. How do you feel about quality of the product?
a. Excellent
b. Very Good
c. Good
d. Poor
e. No opinion
7. Are you satisfied with quality of the product?
a. Highly satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Highly dissatisfied
8. How do you feel about durability of the product?
a. Excellent
b. Very good
c. Good
d. Poor
e. No opinion
9. What is your suggestion about price of product when compared to another
brands?
a. Very high
b. High
c. Reasonable
d. Low
e. Very low
10. Your opinion on price range of the product.
a. Highly satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Highly dissatisfied

64
11. What is your opinion about customer service provided by the company?
a. Excellent
b. Very good
c. Average
d. Poor
e. No opinion
12. How do you feel about the innovativeness of the product?
a. Excellent
b. Very good
c. Good
d. Fair
13. What factor according to weaveco is the most important factor
a. Quality
b. Price
c. Attractiveness
d. Durability
e. Customer service
14. How do you feel about packing and labeling of the products?
a. Excellent
b. Very good
c. Good
d. Average
e. Poor
15. Are you satisfied with the delivery schedule of weaveco brand?
a. Highly satisfied
b. Satisfied
c. Neither satisfied nor dissatisfied
d. Dissatisfied
e. Highly dissatisfied

65
16. Through which medium did you hear about weaveco brand
a. Existing customers
b. Internet search
c. Radio
d. Television
e. Advertisements
17. What would you need to satisfy your requirements even more?
a. Improve quality
b. Reduce price
c. Retain brand image
d. Innovativeness
18. Your suggestion on the product.

66
BIBLIOGRAPHY

BOOKS REFERED

1. Philip Kotler (2006) “Marketing Management”, Twelth Edition, Prestige hall

of India Pvt Limited, New Delhi.
2. RajanSaxena (2002) “Marketing Management”, Second Edition, Tata
McGraw hill.
3. Philip Kotler, Kevin LanKeller,AbhramKoshy,MithileshwarJaa(2009)
“Marketing Management- A South Asian perspective ”, 12/e, Prestige hall of
India Pvt Limited, New Delhi.
4. Kothari CR (2002) “Research methodology-methods and techniques”, 12/e,
Prestige hall of India Pvt Limited, New Delhi.

WEBSITES REFERED

5. www.googlescholar.com,
6. en.http://indiamart.com/kwco-opsocietyltd
7. Wikipedia.org/wiki/wip.ltd
8. http://en.wikipedia.org/wiki/Customer_satisfaction ,

67