SUMMER INTERNSHIP PROJECTONMARKET RESEARCH AND ANALYSIS TO INCREASE THE SALE OF ARTENGO BADMINTON PRODUCTS IN DELHIAtIn Partial Fulfilment OfPDGM FMG 26Under the Supervision of:Prof. DHANYA JOTHIMANISubmitted ByHARITHA SASIKUMARROLL NO – 261022FORE SCHOOL OF MANAGEMENTJUNE 2018DECLARATION BY THE STUDENTI, Ms.
Haritha Sasikumar, Roll No. 261022 have completed my summer internship at Decathlon and has submitted this project report entitled “Market Research and Analysis to Increase the Sale of Artengo Badminton Products in Delhi” towards partial fulfilment of the requirements for the award of the Post Graduate Diploma in Management (FMG-26), 2017-2019.This Report is the result of my own work, no part of it has earlier comprised any other report, monograph, dissertation or book. Signature: Haritha SasikumarFMG 26Roll No: 261022CERTIFICATEThis is to certify that Ms.
Haritha Sasikumar, Roll No. 261022 has completed her summer internship at Decathlon and has submitted this project report entitled “Market Research and Analysis to Increase the Sale of Artengo Badminton Products in Delhi” towards partial fulfilment of the requirements for the award of the Post Graduate Diploma in Management (FMG-26), 2017-2019.This Report is the result of her own work and to the best of my knowledge, no part of it has earlier comprised any other report, monograph, dissertation or book. This project was carried out under my overall supervision. Date: 29 June 2018Place: New Delhi————————————- Prof. Dhanya JothimaniInternal Faculty GuideACKNOWLEDGEMENTI take this opportunity to express my profound gratitude and deep regards to thank all the people who provided their unstinted support during the nine weeks of my Summer Internship Programme.
I wish to express my sincere gratitude to the entire team at Decathlon who have helped me in every possible way to make this internship successful and experience how the real market functions.I also take this opportunity to express a deep sense of gratitude to my industry mentor Mr Mukesh Dhanashekar, Department Manager (Decathlon) for guiding me at every step. I am extremely grateful to Ms Caroline Mulliez, Store Manager (Decathlon). Her enthusiasm was a constant source of motivation. Also, I would like to extend my whole hearted thanks to Professor Dhanya Jothimani, Faculty Guide, FORE School of Management, for guiding, monitoring and constantly encouraging me as well as for taking all the challenges with patience, without whom this report could not have been possible.Without the cooperation of the above people, the report could not have been the same.Haritha Sasikumar261022LETTER OF TRANSMITTALJune 29, 2018To: Prof.
Dhanya JothimaniFrom: Haritha Sasikumar Student, Fore School of ManagementSubject: Report on Market Research to Increase the Brand Awareness and Sales of Artengo Badminton Products in Delhi As part of summer internship project, I am submitting the attached report entitled “Market Research and Analysis to Increase the Sale of Artengo Badminton Products in Delhi”. This report closely examines the brand awareness of Artengo, Decathlon’s in-house brand for badminton products, among people in Delhi. At the same time it critically examines the factors influencing sales and buying behaviour of the products. For this purpose, in-depth market research, competitor analysis and consumer surveys were carried out.
Questionnaires and all other relevant material has been attached in the appendix for your ready reference. I hope you find this report satisfactory.EXECUTIVE SUMMARYThe study is conducted as a part of the academic-requisite summer internship in Decathlon, where the key project activity undertaken is to conduct a market analysis for the sport badminton in Delhi to identify various methods to increase the brand awareness and sales of Artengo badminton products. The location allocated for the researcher to conduct the project was 5 catchments in Delhi, where the Decathlon stores are located, namely, Khelgaon, Shahdara, Rohini, Tagore Garden and Dwarka. In this particular study, I started with the competitor analysis, in which the major store who sell badminton products were analysed. Questionnaires were prepared for the survey in order to understand about the brand awareness, consumer behaviour and their requirements when they buy badminton products in each catchment. It is found the Yonex badminton rackets and products are used by most of the players.
Around 76.5% of players who took part in survey owns a Yonex racket. Li-Ning and Cosco are other famous brands among players. From survey it was found that the brand awareness of Artengo brand is not big enough. Low string tension and poor gutting quality are the complaints raised by many players who use Artengo rackets. Also, the company does not provide racket cover along with rackets, which is provided by most of the competitor brands. Recommendations to improve the brand awareness and thereby increase the sale are also mentioned in the report.
TABLE OF CONTENTS TOC o “1-3” h z u 1.INTRODUCTION PAGEREF _Toc518142986 h 111.1 BACKGROUND PAGEREF _Toc518142987 h 111.2 INDUSTRY ANALYIS: RETAIL (SPORTS) PAGEREF _Toc518142988 h 12World Market PAGEREF _Toc518142989 h 12Indian Market PAGEREF _Toc518142990 h 13Understanding the Delhi Market: PAGEREF _Toc518142991 h 141.3 COMPANY PROFILE PAGEREF _Toc518142992 h 14Mission PAGEREF _Toc518142993 h 15Values PAGEREF _Toc518142994 h 15Brands PAGEREF _Toc518142995 h 161.4 RELEVANCE OF THE PROJECT PAGEREF _Toc518142996 h 171.5 INTRODUCTION TO PROBLEM PAGEREF _Toc518142997 h 181.6 OBJECTIVES PAGEREF _Toc518142998 h 182.
LITERATURE REVIEW PAGEREF _Toc518142999 h 203.METHODOLOGY PAGEREF _Toc518143000 h 263.1 PROJECT STRUCTURE PAGEREF _Toc518143001 h 263.2 RESEARCH METHODOLOGY PAGEREF _Toc518143002 h 29Data Collection PAGEREF _Toc518143003 h 303.3 SAMPLING PAGEREF _Toc518143004 h 324.RESULTS AND ANALYSIS PAGEREF _Toc518143005 h 334.1 SURVEY ANALYSIS PAGEREF _Toc518143006 h 334.
2COMPETITOR STORES ANALYSIS PAGEREF _Toc518143007 h 474.3 RACKET COMPARISON WITH COMPETITOR BRANDS PAGEREF _Toc518143008 h 494.3 MARKET SIZE AND MARKET SHARE CALCULATION PAGEREF _Toc518143009 h 525.FINDINGS AND RECOMMENDATION PAGEREF _Toc518143010 h 596.
LIMITATIONS AND FUTURE SCOPE PAGEREF _Toc518143011 h 626.1 LIMITATIONS PAGEREF _Toc518143012 h 626.2 FURTHER SCOPE OF THE STUDY PAGEREF _Toc518143013 h 627.
REFERENCES AND BIBLIOGRAPHY PAGEREF _Toc518143014 h 638.ANNEXURE PAGEREF _Toc518143015 h 66LIST OF TABLES Table No: Particulars Page No:1 Top 10 Places of Practice 362Popular Tournaments among Players 413Top competitor Stores Catchment-wise 474Beginner / Occasional Rackets Comparison 495Beginner / Regular Rackets Comparison 506Intermediate Rackets Comparison 507Expert Rackets Comparison 518Average Basket Value of Decathlon Stores 529Estimated Market Size and Market Share of DSI CBD Shahdara 5510 Estimated Market Size and Market Share of DSI Tagore Garden 5611Estimated Market Size and Market Share of DSI Rohini 5612Estimated Market Size and Market Share of DSI Khelgaon 5713Estimated Market Size and Market Share of DSI Dwarka 57LIST OF EXHIBITSExhibit No: Particulars Page No:1 Decathlon Value Chain 162Decathlon Brands163India as a Sports Superpower234Global Sports Industry245Project Structure266Gender of Customers337Age Group of Survey Respondent348Practice Time referred by Players359Practice Level of Player3510List of Top Rackets Used3711 Racket Feature Preference of customers3812Factors Influencing Buying Decision3913Average Money Spend to Buy Badminton products per year4014Brand Awareness4115Yearly Budget: Shahdara Catchment4216Yearly Budget: Rohini Catchment4317Buying Decision Influential Factors: Rohini Catchment4318Buying Decision Influential Factors: Khelgaon Catchment4419Brand Awareness: Khelgaon Catchment4420Competitor Stores: Tagore Garden Catchment4521Yearly Budget: Tagore Garden Catchment4522Yearly Budget: Dwarka Catchment4623Competitor Stores: Dwarka Catchment4624Khelgaon Catchment Master Plan52INTRODUCTION 1.1 BACKGROUNDIn a day and age when there are multiple choices and options available to customers each selling their own version of similar products with very little unique selling propositions to differentiate between them it becomes very important for a company to understand the kind of competition it faces in a particular market, the kind of products that are sold by their competitors in these markets and even more importantly the customer preferences and choices and the reason for their preference towards a particular brand or a product.
Keeping this in mind, the project is titled, “Market Research and Analysis to Increase Sale of Artengo Badminton Products in Delhi”. With increasing sedentary lifestyles resulting a rise in obesity rates, more number of people are becoming interested in participating in sports to be both healthy and as a means of self-expression. Increasingly, Indian consumers are adopting this trend more and has benefited the sports industry in India over a period. This project presents a broad analysis of the badminton equipment market in Delhi.
The project and its findings are aimed at giving the company direction for making its marketing strategy and policies that are followed by the company to strengthen its hold in Delhi. The marketing strategy of the company should highlight key characteristics of their products which should be in sync with the preferences and choices of the large number of customers that buy these products.1.2 INDUSTRY ANALYIS: RETAIL (SPORTS)World MarketThe growth of the global badminton equipment market is driven by many factors, one of the most important being the increase in the number of tournaments being organized across the globe. The high growth potential of the market can be forecasted on the basis of the prevailing popularity of badminton tournaments like the Super Series Badminton League and the Premier Badminton League. Also, badminton has the second-highest participation rates in the world after football. The global badminton market is divided into the following segments based on geography:AmericasAPACEuropeMEAAPACS region lead the global market in terms of geography and is home to some of the most successful players in the world.
These countries organize and hosts major badminton leagues and championships, which has helped this market to grow manifold in the past few years.The global badminton equipment market can be segmented into three based on retail formats as Speciality and Sports Stores, Department and Discount Stores and Online Retail. The speciality and sports store dominate the market in terms of revenue by 46%. Examples of speciality and sports store are exclusive YONEX and Li-Ning stores. The increasing internet penetration and e-commerce, along with faster shipping services and changing demand of consumers, will play a significant role in the growth of this market in the upcoming years.The key vendors in the global market are Ashaway, Babolat, Li-Ning, Sports Direct and YONEX. The entry of new products are prevented due to the intense competition among the key players and the introduction of many advanced products in the market.
Indian MarketTop five biggest sports in India are cricket, hockey, soccer, badminton and tennis. Badminton is the second most played sport in India. The global sports sector is estimated to be worth between $480-620 billion. However, in India, due to little or no comprehensive study done on the size of the industry, potential and opportunities, sport is yet to be recognized as an economic sector. Across the globe sports is a full-fledged industry contributing about 1 to 5 percent of the country’s GDP. Due to lack of sporting culture, the growth of such an industry is held back in India.
The factors such as budding awareness about fitness among the urban and middle and high income population have ultimately boosted the sports equipment market in India. Many multinational companies are organizing intra-office sports events like cricket or badminton tournaments. Also, Indian government is now focusing on sports promotion, infrastructure and training. Further, hosting of international sports events, such as common wealth, has boosted the demand for sports equipment and has increased sort awareness in India. Understanding the Delhi Market:Delhi, or the National Capital Territory (NCT) of India, is a large metropolitan area in India. Delhi is the fifth most populous city in the world and the largest city in India area-wise.
It has an estimated 2016 population of 19 million. Sport in Delhi have a long and distinguished history. Delhi is the capital territory of India. It has hosted many major international tournaments. There are many Sports complexes constructed and maintained by Delhi Development Authority (DDA) and badminton academies were thousands of people play badminton regularly. There are also many prominent sports organizations that organize badminton tournaments every year. Many international tournaments are also being conducted in Delhi. One example is the India Open 2018, an international badminton tournament organized by Badminton Association of India and sanctioned by Badminton World Federation (BWF) which took place at Siri Fort Indoor Stadium in New Delhi in January 2018.
1.3 COMPANY PROFILE Decathlon is a French sporting good retailer which has been founded in 1976 in Lille, France. They are the largest sporting goods retailer in the world. Currently there are 42 stores around the UK, where customers get experts’ advice and have a seamless shopping experience. Decathlon today has 1535 stores in several countries. The company recorded a revenue of 10 billion Euros in 2015. Decathlon employs 86,000 from 80 different nationalities people across the world.
It started its operation in Indian in 2009. Decathlon sells 5000+ products for more than 50 sports. The company has 60 stores in India The headquarters Decathlon Sports India Pvt Ltd is in Bangalore.MissionNumber of Stores per Country: “Decathlon’s main mission is to make sport accessible to as many people as we can. We would like to help, inspire and guide you through your sports experiences. We believe that being active and discovering new sports every day is an important part of a healthy lifestyle. Let’s do some sports together, as together is always more fun!” ValuesVitalityVitality is Life, intense activity, energy, drive and vigour. Our employees are full of vitality as they have, first and foremost, a positive mind set and are bursting with energy.
They are enthusiastic, they love creating and innovating, and relentlessly strive to improve and make things around them change. ResponsibilityBeing responsible is about making decisions and making sure they are acted upon. Our employees are fully responsible for their decisions, both in terms of their team and their customers. Responsibility is also about anticipating the challenges facing society and orienting our actions towards sustainable development.
And it is also our responsibility to guarantee the safety of our customers and employees all over the world. Exhibit 1: Decathlon Value ChainBrandsExhibit 2: Decathlon BrandsDecathlon designs, manufactures and distributes a wide range of sports-related equipment and accessories, with over 20 in-house ‘passion brands’ dedicated to different sports, and each with its own design team. Decathlon aims to make sports more accessible by offering a wide range of quality products at affordable prices. The retailer also endeavours to cater to a range of customers from beginners to professionals.Each of Decathlon’s ‘passion brands’ is tested in real-world conditions, and customer feedback is integrated into further product design and development. Work is further guided by Decathlon’s research and development centre which is called ‘SportsLab’. Every year, the company creates more than 2,800 new products.
1.4 RELEVANCE OF THE PROJECT This project is for studying the Delhi market for badminton. The first Decathlon store in Delhi is in Noida and was opened in 2014.
In the upcoming years the company opened three more stores and in 2018 they are opening their new store in Dwarka. The expansion of the company is happening at a faster pace. Hence it is paramount for the company to analyse the performance of each store.
This project analyse the performance of Decathlon’s in-house brand Artengo.Competitor analysis also helps a company to understand where it stands with respect to other brands. It helps the company understand the reasons that influence the buying decision of customers. And also it helps to understand why some products of other companies have an edge over Artengo products. This is crucial information for any company to remain as a competitive player in that market both geographically and in terms of the product characteristics itself. While the brand Artengo has a better fame and growth in Southern market, they do not have received the same in the Northern market and has fallen back compared to their rivals. YONEX has an unmatched market leadership in the Indian sports equipment industry. They have exclusive outlets inside or near sports complexes which is spreading a lot of awareness and does a lot of brand imaging and brand building.
Knowing more about its competitors and consumer preferences is vital information for the company to plan not only its inventory management for the Delhi market but also the marketing strategies it must follow to capture a healthy share in this highly competitive market. 1.5 INTRODUCTION TO PROBLEMCompany is facing a major problem of brand awareness and brand acceptance in Delhi market. The company’s policy is not to spend money in advertising so as to reduce the price of goods and make sports accessible to many at a cheaper price. Hence the marketing strategy of the company is word of mouth marketing and conducting sports events and campaigns.
The major problems discussed in the report are: How Decathlon can increase its market share in badminton equipment industry in Delhi and the methods the company to could adopt to increase its brand awareness and sales.1.6 OBJECTIVES Primary Objectives Study about the major competitor stores in each catchment and compare their business model with Decathlon.
Understand the purchasing behaviour of the customers and identify their preferences and requirements.Learn about the influence of Artengo brand in the provided market. Analyse the reaction of the customers towards the Artengo badminton equipments.Identify methods to increase market share and sale of badminton rackets, shoes, apparels and accessories in each Catchment.Develop methods to implement the changes or strategies after finding the gaps between Decathlon and Customers.To identify the reason behind sale of competitor brands. Secondary Objectives To create awareness about Artengo sports equipments amongst new and existing Customers.
To promote new products designs of Shoes/Apparels/Accessories. To identify the schemes and offers provided by the competitors.To identify the potential tie ups with sports complexes and badminton academies. To identify which company has the maximum presence in the market.LITERATURE REVIEW In simple words a brand is what comes to one’s mind when one hear about a product. For example when one hear the term soft drinks, if the names that first comes to one’s mind are Pepsi and Coca Cola, and the features associate with them -it implies that they are two successful brands. The key in creating a brand is the ability to come with a set of components like logo, symbol, name etc that can help the customer to distinguish yours from other brands in the market. Derived from the Old Norse word brand which means to burn, Brands are considered by managers as something that has created a reputation and awareness in the market.
The different between a product and brand can be easily distinguished as if product is the skeleton then brand is the skin. Keller et al (2011) Among the various loyalties a customer has towards a product, brand loyalty is the best loyalty. It is even better than the price loyalty. Price loyalty can be used only at the initial stages as an exit to behavioural barriers. The author questions the traditional tools used for branding and its effectiveness.
Studies have found that once a customer get in love with a brand chances are very less for him to leave the brand for price issues. The loyalty will be broken only if the customer is disappointed of if the contemporaries can provide benefits that are marginally different when compared to the brand to which the customer has loyalty. Managing a brand is very important. Marketers have identified the importance of the same and it has been followed since ages .The intense competition prevailing in the industry from private labels and actors demands for new tools in Brand management. There are many approaches towards determining the value of the brand.
Each has its own features. For example the financial approach measures the brand value by singling out the total cash flow generated by the brand. Kapferer (2012) Market research is an important tool that can be used for brand building. The process by which consumers’ needs, preference and other information are collected. Trust is an important factor in conducting effective market research. Moorman et al (1993) The researcher should be able to build a faith in the customer at the end that the information revealed will not be used against him at any cost and will be sued for only educational purposes.
It is the duty of the researcher to ensure the same. The researcher should have the maturity to respect the privacy of the customers. He should not pressurise the customers to reveal information that the customer feels as a threat.
A good market research is built on trust and loyalty. Atsmon, Child and Kopka (2013) said that by 2025, annual consumption in emerging markets will reach $30 trillion. Correspondingly, the share of these markets in aggregate world consumption will jump from 32% to almost 50%. “As a result, emerging-market consumers will become the dominant force in the global economy. The challenge in emerging markets resembles a decathlon, where success comes from all-around excellence in multiple sports. Sitting out an event isn’t an option; competing effectively means mastering a variety of capabilities. In emerging markets, companies, like athletes, must learn to make trade-offs, taking into account their own capabilities and those of competitors. The rewards for success and the costs of failure will be large.
Many international corporations admit that, despite their advantages of size, more powerful financial capabilities and more advanced marketing strategies, they still need to expend significant effort in order to overcome competition with local, young companies. An article suggested that the global manufacturing sector is on the threshold of a dynamic new phase that will provide renewed opportunity for manufacturing firms — and a host of new challenges (Manyika, George and Rassey, 2013; Harvard Business Review). Incumbents who can rise to the challenge — and upstarts who may find lower barriers to entry — could do very well, indeed. The megatrend in demand, of course, is the shift to developing economies. It is well known that China, India, and other developing economies in Asia and Latin America have been leading global growth. What is less well understood is how quickly demand is following that growth.
According to recent McKinsey research (see “The $30 Trillion Decathlon”), consumption by developing economies could rise from $12 trillion annually in 2010 to $30 trillion in 2025, by which time these markets could account for nearly 70% of global demand for manufactured goods. Importantly, this emerging market demand is also highly fragmented; not only is there a huge difference between what the customer wants in Indonesia and India, but also within countries.Han and Aman (2015) said that the game of badminton has grown to be a global sport dominated by Asian players, sponsors and Asian brands of badminton equipment. A series of longitudinal data collected over a fifty-year period suggests that Asian players and teams dominated almost all aspects of the game by consistently winning major team and individual events, including Olympic medals for badminton from 1992 to 2012. Furthermore, sponsors for teams, players and tournaments were also dominated by Asian manufacturers of badminton equipment, Asian corporations and brands.Considering that 50% of our population is below 25 years of age, there is a strong prospect of developing India as a sports superpower.
Although India has an abundant resource of sportspersons blessed with natural talent, we have not been able to capitalize on this dividend.Exhibit 3: India as a Sports SuperpowerTo focus on Sports as a sunrise sector, India needs to deliberate on multiple parameters like inculcating sports as an academic subject, shortage of trained manpower and specialists, skill gaps, sports infrastructure and sports medicine, but most importantly, building a sports culture in the society. While much has advanced in terms of children choosing cricket as a career option, with recent successes in the Olympics and other sports like tennis and badminton adding to the plate, the sector employs a variety of experts from other sectors like medicine, psychology, management.Exhibit 4: Global Sports Industry RevenueThe report suggests 3 key points: In India, the business of sports will grow at a CAGR of 5% from USD 1.
53 Bn in 2011 to USD 1.89 Bn in 2015.India is expected to witness a significant surge in TV advertising and sponsorship income in the coming years, making it the second-best revenue generator after Brazil, among the BRIC countries.Though India would account for a mere 1.3% of the worldwide sporting revenues, the rate of growth is expected to be much higher than the global CAGR of 3.7% till 2015.
According to a report by Technavio, the badminton equipment market in APAC to grow at a CAGR of almost 3% between 2016 and 2020. The demand for badminton equipment in the region is spurred an increase in the number of badminton tournaments being organized and played across the region. China dominates the badminton equipment market globally owing to the high popularity of the sport in the country and the favorable scenarios provided by the government.
An increase in the use of nanomaterials in the manufacture of badminton rackets is an ongoing trend in this market. Consumers, especially professional athletes, prefer modern lightweight equipment owing to their improved stiffness, high strength, and flexibility. Carbon fiber is replacing the traditional metal, wood, and steel in modern sports equipment. Furthermore, carbon fiber-reinforced plastic moldings in this type of equipment are being used largely instead of traditional glass-reinforced plastic moldings.
Purchases made by customers are triggered by seeing the product and relating the same to the promotional messages to which the customer was previously exposed to (Attri and Jain, 2018). Emotions and feelings play a decisive role in such purchases and marketers tend to exploit this want of the customer for instant gratification. Factors like advertisement of the product, quality, price, time and money available with the shopper, brand name, product displays in store, moods of the customers, crowd in the store, company of the customer with whom he/she is shopping and the variety of products from which a customer has to choose from affect the buying decision of the customers.
This paper attempts to study the factors affecting the shopping behavior of the customers.METHODOLOGY This section will explain the approach taken by the researcher in completing the project. The various parameters taken by the researcher and how there were carried out is explained. The chapter is broken down into different sections and each section will provide information regarding the actual process carried and its justifications. The methodology will be discussed under the following context: Project Structure Research Design Data Collection Methods Sampling Results and Analysis -331269530482Phase 0: Market and Product StudyPhase 1: Competitors visitsPhase 2: User SurveyPhase 3: AnalysisPhase 4: Recommendations and PresentationPhase 0: Market and Product StudyPhase 1: Competitors visitsPhase 2: User SurveyPhase 3: AnalysisPhase 4: Recommendations and Presentation3.
1 PROJECT STRUCTURE Exhibit 5: Project StructureThe project title assigned for the researcher was “Market research and analysis to increase the sale of Artengo badminton products in Delhi”. The locations assigned for the researcher was five catchments in Delhi, where the Decathlon stores are located namely Khelgaon, Shahdara, Tagore Garden, Rohini and Dwarka. The project had four phases and had a duration of 60 days. The intern worked as a market researcher as well as an Omni Sport Leader in store handling the Artengo department. The project is divided into following phases:Phase 0: Market and Product Study (Time Duration: 3 days) The first phase of the project focused on studying the Badminton market as well as the product. Since the product is a target sport, it was necessary to have a basic understanding about the product and its features.
Online research was done to identify the top competitors in each catchment and the top places of practice were shortlisted. A heat map was created using Google maps to easily locate the top competitors and places of practice.Phase 1: Competitor Visits (Time Duration: 7 days) The project officially started from this phase onwards. The first phase was allotted a period of 7 days where the researcher visited the top shortlisted competitors in each catchment to understand their business model and analyse their performance based on certain criteria provided to the researcher by the company.
The researcher was able to cover a total of 24 competitors in Delhi. The researcher found out that 5 competitors are as good as or better than the Decathlon in terms of the products and services they provide. Among these top competitors 3 of them are located inside sports complexes and are all Yonex sponsored shops. Remaining stores does not have well maintained layout, the availability of accessories for all sizes and the sales representatives do not have enough product knowledge. Also, 1 store in Tagore Garden has online selling.Phase 2: User Survey (Duration: 30 days) During the second phase, the researcher prepared a questionnaire for the consumer survey based on the company requirements.
The questionnaire contained a total of 14 questions in which all the major queries said by the company were covered. A target of 500 responses in total was given, 100 responses from each catchment. The researcher had to interview multiple badminton players by visiting the top places of practice shortlisted in phase 0 and make them fill the questionnaire. The main places of practice visited are the sports complexes, badminton academies, colleges and parks where people play badminton. Another task assigned was to talk to the badminton coaches in the academies and sports complexes about the possibilities of tie up with them to boost the sale of Artengo products.
Phase 3: Survey Response Analysis (Duration: 3 days) In the third phase the researcher analysed the survey responses collected as part of the market research. A total of 520 responses were collected from all the catchments and the target of 100 responses were achieved in all the catchments except in Dwarka. A total period of 3 days was allotted for the third phase. Based on the analysis, the researcher was asked to find out the market size and market share in each catchment and methodologies to sell the products in each catchment. Phase 4: Recommendations and Presentation (Duration: 4 days) The last four days of the market research were utilised to prepare a corporate presentation for the company to present the survey findings and suggesting them certain recommendations to improve the brand awareness, sales and the market share in Delhi. The researcher had made writings and notes on a day today basis on an excel sheet which was useful in making the presentation. 3.2 RESEARCH METHODOLOGYThe main aim of this research paper is to identify the factors which will help the brand to grow its market and to know the requirements and preference of the customer.
Therefore, this research is descriptive, so as to get a picture of the topic and understand the consumer’s mind-set towards a brand, their perception and the growing change to badminton industry (i.e. Understanding their likings and factors influencing their decision making power)The research also seeks to identify relevant reasons for this new trend and change to answer the question, in what way company can set its identity for itself in the consumer’s mind.
Descriptive research, correlation, developmental design, observational studies, and survey research are used. For the research, surveys and observation are the suitable ways to understand this shift in trends.Market Research: Qualitative and Quantitative Research Primary Data: Collected by Field Work Secondary Data: Collected by internet and company data Research Approach: Survey Method Type of Questionnaire: Structured Type of Questions: Close Ended and Open Ended Target Population: Badminton players The popular methods used in business researches are quantitative and qualitative methods. Quantitative method is used to explain, predict phenomenon with measurable variables. Qualitative research emphasizes on words instead of large quantification and focuses on the individuals’ interpretations of their social world.
This research adopted quantitative research since the research is aimed to identify various elements and measure level of consumer behaviour and the factors that affect the decision making power regarding buying of badminton products. In other words, quantitative is deductive approach, which prefers to analyse and test relationship between theory or researcher´s assumptions and the empirical research. Data CollectionThere are two sources of data for research, namely primary and secondary data.
The primary data is relevant to the present study and usually collected through communication methods or interaction with respondents and observation methods. Secondary data is gathered from previous studies through various sources such as articles, internet, organization’s database, government surveys and enterprises etc.For this research, primary data is collected in accordance with the research phenomenon and design. Since this research is supposed to investigate the constructs of consumer’s requirements and preference for the badminton brands in a limited geographic dimension, primary data was consistent with the research purpose. The use of primary data from the survey is logical access to interviews and to get information from targeted respondents.
The use of questionnaire is suitable in order to interact with respondents to get structured information and to find out consumer satisfaction level from their perspectives. Data collection is conducted through interactive interviews and survey. It contains a series of questions prepared for the target audience. Same questionnaire was used for all catchments.
When marking a response the catchment to which the player belong is marked to segregate the players in a particular catchment. The sample of questionnaires are attached at the annexure. (See Annexure A).The secondary data for the research was collected from various sources like research paper, websites, YouTube videos, company website etc. Questionnaire Design: The use of questionnaire is the most suitable and economical choice of collecting data. The research only served for purpose of an academic, popular business phenomenon without any financial fund resources.
Questionnaire consisted of structured questions, both open and close ended. Only 3 open ended questions were included so as to minimize the time required to fill the questionnaire, which helps to increase the response rate, save time for respondents and decrease waiting cost for the surveyor. The use of more close ended questions is reasonable. Questions used are brief, comprehensive and the use of jargon was avoided to increase understanding and interest of the respondents.
3.3 SAMPLINGProcess of sampling is the next issue. As this is a cross-sectional study, it needs less time to be completed. The research also has limited time and financial resources. As convenience samples are generally the cheapest and easiest to conduct. Convenience sampling is most often used during the exploratory phase of a research project and is perhaps the best way of getting some basic information quickly and efficiently. So, convenience sampling is used to collect data.Sample Size: The sample size for this study was 500, over which 520 responses were completed.
So sample size is taken as 520.Sampling Tool: Convenient SamplingSample Area: Khelgaon, Shahdara, Tagore Gargen, Rohini and Dwarka. Population Size:The area which is within the 10 Km limit from the location of each Decathlon store is considered as a catchment. All the analysis was asked to be done within the catchment range. Such a criteria was chosen because people who live within this range is considered as the potential customer for the store. Hence, for this study it is primarily the competitors and players in the catchments becomes the sample pool.
RESULTS AND ANALYSIS The responses for the questionnaire are tabulated and analysed in detail. This chapter chronicles the analyses of the collected information in detail with the help of graphs and charts.4.1 SURVEY ANALYSISGender of respondentExhibit 6: Gender of CustomersUnderstanding the gender proportion of potential customers help to estimate the quantity and types of apparels and accessories to be kept in the store to ensure that the supply is equal to demand. This helps to increase the sale as the number of customers leaving the store without buying due to unavailability of stock could be reduced.Age group of respondentBased on the survey response, it can be noted that the sport badminton is popular among people between the ages 10 – 25 years, which constitute more than 60% of survey respondents. They are the potential customers for Decathlon, because it is comparatively easy to spread brand awareness among them and are not very status conscious and behind branded products.
Exhibit 7: Age Group of Survey RespondentTime of practiceAccording to the responses obtained, more than 95% people prefer to play badminton in the evening. So any promotional activities or events planning to be organised by the company is advised to be conducted in the evenings.Exhibit 8: Practice Time Preferred by PlayersPractice level of playersExhibit 9: Practice Level of PlayerAbout 53.3% of the respondents belong to the intermediate player category. 29% people belonging to beginner category are mostly people who play in parks and societies. These people are very price conscious and opt for low end badminton products. More growth in sales possible for beginner and intermediate level rackets and accessories.
Places of practiceS. No. Place of PracticeCatchment1 Siri Fort Sports Complex DSI Khelgaon2 DDA Squash and Badminton Academy, Siri Fort DSI Khelgaon3 Saket Sports Complex DDA DSI Khelgaon4 Yamuna Sports Complex DSI CBD Shahdara5 Zenith Badminton Academy DSI CBD Shahdara6 Hari Nagar Sports Complex DSI Tagore Garden7 Rohini Sports Complex DSI Rohini8 S N Badminton Academy DSI Rohini9 Dwarka Sports Complex DSI Dwarka10 Dwarka Shuttlers DSI DwarkaTable 1: Top 10 Places of PracticeThe above mentioned are the catchment wise top 10 places of practice in Delhi. Siri Fort Sports Complex, DDA Squash and Badminton Academy and Yamuna Sports Complex are the biggest sports complexes with maximum number of indoor and outdoor badminton and can accommodate a minimum of 540,800 and 720 players a day respectively. Badminton is more popular in the catchments Khlgaon and Shahdara than other catchments.Rackets used by customersExhibit 10: List of Top Rackets UsedFrom the results it can be observed that at least three out of four players are using Yonex rackets, which is the biggest competitor for Artengo rackets.
This is mainly due to the strong brand image created by the company, aggressive advertisement and tie-ups with most of the prominent academies and events organised. Only 48 people out of 520 survey respondents have an Artengo racket. The company should focus more on building brand awareness and brand image.Racket features influence the buying decisionExhibit 11: Racket Features Preference of CustomersTension is the most important feature a customer look for when they buy a badminton racket. 430 out of 520 players opined that tension is fairly or very important for them. Weight of the racket is the second important feature. Players are not very much bothered about the frame material of the rackets.
But indirectly frame material and weight of the rackets are related. Metallic frame material rackets weight is very high compared to the graphite, carbon or Nano fibre rackets. Hence more customers prefer graphite or carbon single frame rackets.Buying influential factorsExhibit 12: Factors Influencing Buying DecisionSince from the research it is found out that coach recommendation is the major influencing factor that influence the buying decision.
This is majorly among the people of age group 10-18 years who undergo training in badminton academies. The coaches mainly recommend YONEX rackets because of the tie-up they have with the brands. Most of the major academies are YONEX sponsored, which is the major reason for the popularity and high usage of the brand. Average Yearly spendingExhibit 13: Average Money Spend to Buy Badminton Products per YearIt is found that more than 50% people spend more than Rs. 10,000 per year to buy badminton products. This amount varies from Rs.
10,000 to Rs. 100,000 for intermediate to expert or professional level players. Depending on the intensity of play, the gutting and shuttlecocks are to be replaced on weekly or monthly basis. If the players are using feather shuttlecock the expenditure further increases as the lowest cost of a feather shuttlecock pack of 12 is around Rs. 650. For indoor courts, it is compulsory to wear gun sole non-marking shoes.
Other accessories include kitbag, net, grip and over grip.Popular badminton tournaments in Delhi S. No. Tournaments1 Born to Play2 Lehleh Sports3 YoGems4 Bbadminton Hudle5 Flow SportsTable 2: Popular Tournaments among PlayersThe above mentioned are the most popular tournaments in Delhi. The company can sponsor these tournaments and events to increase the brand awareness and publicity of the brand. Since Decathlon does not do advertisements, sponsoring such events is the best way to reach out more people.Brand awareness of Artengo brandExhibit 14: Brand AwarenessBrand awareness of Artengo brand is very low.
From the response, only 55% people are aware of Decathlon and Artengo brand. Brand awareness among people is more in sports complexes and badminton academies. But on the other hand it is very poor among the beginner level players playing in parks and societies, whom are easy to get converted to Artengo from the brand they are using now.Analysis of DSI Shahdara Catchment Exhibit 15: Yearly Budget: Shahdara CatchmentOne of the most different fact about the Shahdara catchment is the spending pattern of the players. Spending behaviour of people in this catchment is very high. About 74% of people who took part in the survey spent more than Rs. 5000 a year to buy badminton products.
Hence, Artengo has a good market potential in this catchment.Analysis of DSI Rohini CatchmentExhibit 16: Yearly Budget: Rohini CatchmentTrend in Rohini catchment is the reverse of Shahdara. 76% people spend less than Rs. 5000 a year. So the company should stock more range 1 and 2 products in store.669081544063Tie up with Zenith Badminton Academy has helped to boost the sale in this catchment.
60% of people buy based on coach recommendation. Many of them are now decathlon’s loyal customers. Brand awareness among players in Zenith Badminton Academy is very high and about 50% of them use Artengo rackets.
Exhibit 17: Buying Decision Influential Factors: Rohini CatchmentAnalysis of DSI Khelgaon CatchmentIn this catchment buying behaviour of people is different. The factors influencing the buying decision are mainly friend’s recommendation and internet research. Hence, word of mouth marketing has a huge scope in this catchment to influence players.Brand awareness in this catchment is high compared to others. 31.
82% of people who are aware of Artengo, buy products from Decathlon. 66.66% out of them use an Artengo racket and the rest use Artengo apparels and accessories. Exhibit 18: Buying Decision Influential Factors: Khelgaon Catchmentright93220433.34%33.34%455930094294366.66%66.
45%114554089785868.18%68.18%Exhibit 19: Brand Awareness: Khelgaon CatchmentAnalysis of DSI Tagore GardenExhibit 20: Competitor Stores: Tagore Garden CatchmentBooki sports is the major competitor in this catchment. They also have online selling. Mishra sports is a YONEX sponsored store. This store has the location advantage, as it is situated inside Hari Nagar Sports Complex.
The number of people who visit Decathlon is very less as many of them have heard about the brand Decathlon, but does not know the existence of a Decathlon store in Tagore Garden. Brand awareness is only 54.2% and among them only 22.4% of people are Decathlon customers. In this catchment, the spending capacity of customers is low. Around 60% of people are willing to spend less than Rs.
5000 per year only. Hence this catchment has more potential for range 1 and 2 products.Exhibit 21: Yearly Budget: Tagore Garden CatchmentAnalysis of DSI DwarkaExhibit 22: Yearly Budget: Dwarka CatchmentDecathlon store in Dwarka is opening in 2018. There is a huge market potential in Dwarka, as players in Dwarka has high sending capacity.
72% of people spend more than Rs. 10,000 a year. Also, Gupta sports planet is the only good store available in the catchment. Decathlon store will have the location advantage as it is located near one of the major badminton academy in the locality – Dwarka Shuttlers. Before the opening of the store, around 40% of people are already aware of Artengo badminton products which is advantageous for the company. Exhibit 23: Competitor Stores: Dwarka CatchmentCOMPETITOR STORES ANALYSISThe researcher was provided with a set of parameters based on which the analysis was done (See Annexure A). The sports stores within each catchment were shortlisted and out of them to rated four or five stores were visited for analysis.
A total of 24 competitor stores were covered as part of the study.S. No. CompetitorCatchment1 YONEX Sports Shop, Siri Fort DSI Khelgaon2 Lodhi Sports DSI Khelgaon3 SM Sports DSI CBD Shahdara4 Booki Sports DSI Tagore Garden5 Gupta Sports Planet DSI Dwarka6 Sadaar Bazaar NATable 3: Top competitor Stores Catchment-wiseAdvantages:Spacious and well-kept layout.Separate department for Artengo. Except Yonex sports store and Lodhi Sports no other store has a spacious department for badminton.Well trained and experienced sport leaders with sound technical knowledge about the products are available in store to help out the customers to choose the best suited rackets.Product availability in varied price and size ranges.
Most of the stores does not have apparels and all size ranges for shoes and none of the stores provide kid size rackets.Provides offers like 2 year manufacturing warranty for rackets and shoes, discounts and free gutting for rackets. No competitor brand provides the same.Many competitor stores does not have proper parking facilities, signage and are difficult to locate.Disadvantages:Top stores like YONEX sports shop, SM sports and Gupta sports planet are YONEX sponsored stores and are located inside or near sports complexes and badminton academies which give them location advantage.
Most of the stores have multiple brand products, which give customers good amount of choices.Except Booki Sports and Lodhi Sports, none of the other stores have a webpage. Booki Sports has online selling.Many of the stores are having gutting machine, which all the Decathlon stores don’t have.Price range of rackets varies from Rs.
200 to Rs. 17,550. For Artengo products it is between Rs.
199 to Rs. 5999.4.3 RACKET COMPARISON WITH COMPETITOR BRANDSYONEX, Li-Ning and Cosco are the major badminton brands which are the competitors of Artengo. YONEX, a Japanese based company, is the market leader in the industry and had become a dominant corporate player.
They supply official materials for leagues, teams, athletes, associations and advisory staffs. Li-Ning is a Chinese sporting goods company. This company also use aggressive sponsorship deals and had signed a sponsorship deal with Indian Olympic Association for the 2016 Rio Olympic Games. Cosco is an Indian Sports equipment manufacturing company based in Delhi.Beginner / Occasional RacketsBrand Artengo Yonex Li-Ning CoscoModel BR710 GR 303 XP – 710 CB 88Tension 18-20 lbs 18-20 lbs 20-22 lbs 18 – 20 lbsWeight 100g 90g ; 90g 100 – 105gFrame Material Aluminium head and steel shaft Aluminium frame and steel shaft Steel shaft and carbon fibre Aluminium and steelFlexibility Stiff Stiff Soft StiffPrice RS. 599 Rs.
580 Rs. 790 Rs. 310Table 4: Beginner / Occasional Rackets ComparisonFor the same price YONEX is providing same features and weight of the racket is 10g lesser than Artengo racket. Cosco is providing the same features for a much lower price.
Beginner / Regular RacketsBrand Artengo Yonex Li-Ning CoscoModel BR 800 Carbonex 8000+ Turbo X 90 CBX 750Tension 20-22 lbs 19-24 lbs upto 30 lbs 24-28 lbsWeight 90g 88g 87g 89-93gFrame Material Graphite Graphite Carbon fibre + Graphite GraphiteFlexibility Medium Stiff Medium MediumPrice Rs. 1199 Rs. 1800 – 2200 Rs. 2100 – 3000 Rs.
1300 – 1800Table 5: Beginner / Regular Rackets ComparisonAll other rackets at this price range are providing better string tension, which is the major disadvantage of Artengo rackets. Many customers are dissatisfied due to the low string tension provided. This is a feature the brand should improve.Intermediate RacketsBrandArtengo Yonex Li-Ning CoscoModel BR 900 Voltric 1 G-Force power 1800 CBX 1000Tension 20-26 lbs 20 – 24 lbs 22-26 lbs 26-28 lbsWeight 76g 83g 75-79 g 86-89GFrame Material High Modulus Carbon Graphite, Tungsten Carbon fibre carbonFlexibility Stiff Stiff Flexible N/APrice Rs. 3499 Rs. 4490 Rs.
7992 Rs. 2560Table 6: Intermediate Rackets ComparisonArtengo BR 900 is a highly competitive racket as it provide tension upto 26 lbs at Rs. 3499 and is a very light weight racket. The racket is providing similar features of Li-Ning at half of its price. The price of Cosco CBX 1000 racket is low, but the weight is comparatively very high, which is a very important feature customers look into when they buy a racket.Expert RacketsBrandArtengo Yonex Li-Ning CoscoModel BR 990 Voltric 9000 Windstorm 770 WT65Tension 22-28lbs 19-28lbs 30-32 lbs 26-28 lbsWeight 89g 83g 78g 83-87gFrame Material High Modulus Carbon Graphite Carbon fibre GraphiteFlexibility Stiff Stiff Soft MediumPrice Rs. 5999 Rs. 7250 Rs.
8990 Rs. 5050Table 7: Expert Rackets ComparisonBR 990 is the high end badminton racket of Artengo. This racket features and price are competitive enough. Cosco is providing similar features at a lower price, where YONEX and Li-Ning racket prices are higher.
Tension is the most important parameter a player consider when he buys a racket. A player may choose the Li-Ning Windstorm 770 racket among these because of its high tension strings, when price is not a concern for him. 28 lbs is the maximum tension provided by Artengo rackets, which is very low when compared to its competitors like YONEX and Li-Ning, who provide 35 – 36 lbs string tension for their high end rackets.4.3 MARKET SIZE AND MARKET SHARE CALCULATIONAverage Basket ValueStore Turnover(Rs) No. of Billings Avg. Basket Value(Rs)Khelgaon 8885652 3833 2318Tagore Garden 2771811 3466 799CBD Shahdara 2145873 2535 846Rohini 1988664 1900 1046Table 8: Average Basket Value of Decathlon Stores76390577583Average Basket Value= Turnover/ Number of Billings00Average Basket Value= Turnover/ Number of Billings`DSI Khelgaon has the highest average basket value. This is due because the catchment consist of a wealthy neighbourhoods (e.
g. Defence Colony, Hauz Khas) whose ABC population is 8 lakhs and some historical villages in transition (e.g. Shahpur Jat, Kotta) with a population of 3.4 lakhs (D population). Exhibit 24: Khelgaon Catchment Master PlanDSI Rohini has a different trend compared to other stores.
Even though the total number of billings are lowest compared to other catchments DSI Tagore Garden and DSI Shahdara, the average basket value is highest. This is the result of the tie-up the store has with the Zenith Badminton Academy, where the customers visit the store specifically to buy the Artengo badminton products.Market Size and Market Share EstimationFacebook Insights (Given by the company)Delhi total population = 10 -15 millionDelhi Population Interested in Badminton = 400k – 450k = 3% of total populationFrom Survey ResultsSample size= 520 Practice levelBeginners = 29.
00%Intermediate = 53.30%Experienced = 17.70%Average spending per year Less than 2000 = 11.90%2000 – 5000 = 14.
60%5000 – 10000 = 20%More than 10000 = 53.50%AssumptionsAssuming two categories of beginners Beginners Parks Badminton CourtYearly Budget 1000 4000Therefore, Yearly Budget in general 2500 Experienced player yearly expenditure Shuttlecock 5000 Racket 3000 Gutting 1800 Shoes 3000 Apparels 1000 Accessories(grips, socks etc) 1000 14800 ~ 15000Yearly Budget for each category (approx.)Beginners = Rs. 2500Intermediate = Rs.
7500Experienced = Rs. 15,000CalculationAB population of each catchment is considered. Based on Facebook insights, assuming that 3% of population in each catchment play badminton. Number of players (beginner / intermediates / experienced) = percentage of players (beginner / intermediates / experienced) * 3% of AB population of catchment.
Yearly expense = Number of players * Average spending per yearMarket Share = Turnover / Market SizeCBD Shahdara AB Population 410000 3% of AB population 12300 Yearly expenseBeginners 3567 8917500Intermediate 6556 49169250Experienced 2177 32656500 Market Size 9,07,43,250 Market Share= (TurnOver / Market Size) Turnover(Oct 1, 2017 to May 25, 2018) 2149187 Extrapolating for 1year 3223780.5 Market Share 3.55%Table 9: Estimated Market Size and Market Share of DSI CBD ShahdaraTagore Garden AB Population 910000 3% of AB population 27300 Yearly expenseBeginners 7917 19792500Intermediate 14551 109131750Experienced 4832 72481500 Market Size 20,14,05,750 Market Share= (TurnOver / Market Size) Turnover(Jan 1, 2017 to Dec 31, 2017) 5735848 Market Share 2.85%Table 10: Estimated Market Size and Market Share of DSI Tagore GardenRohini AB Population 400000 3% of AB population 12000 Yearly expenseBeginners 3480 8700000Intermediate 6396 47970000Experienced 2124 31860000 Market Size 8,85,30,000 Market Share= (TurnOver / Market Size) Turnover(Jan 1, 2017 to Dec 31, 2017) 3415555 Market Share 3.86%Table 11: Estimated Market Size and Market Share of DSI RohiniKhelgaon AB Population 800000 3% of AB population 24000 Yearly expenseBeginners 6960 17400000Intermediate 12792 95940000Experienced 4248 63720000 Market Size 17,70,60,000 Market Share= (TurnOver / Market Size) Turnover(Jan 1, 2017 to Dec 31, 2017) 8874111 Market Share 5.01%Table 12: Estimated Market Size and Market Share of DSI KhelgaonThe opening of Dwarka store is expected on August 2018.
Dwarka AB Population 350000 3% of AB population 10500 Yearly expenseBeginners 3045 7612500Intermediate 5597 41973750Experienced 1859 27877500 Market Size 7,74,63,750 Market Share= (TurnOver / Market Size) Turnover(Jan 1, 2017 to Dec 31, 2017) Market Share 0.00%Table 13: Estimated Market Size and Market Share of DSI DwarkaTotal market share = Sum of market shares of each catchment = Rs. 63,52,02,750 = Rs. 63.52 CrTotal Market share = Total turnover / Total market share= 21,249,295 / 555,739,000 (excluding Dwarka market size) = 3.8% FINDINGS AND RECOMMENDATION FindingsArtengo does not have a strong market presence in the Delhi.
Brand awareness is very low among middle class and lower class people. Hence more promotional activities must be done.Purchase decision is mainly based on the product quality. Factors like price, service, packing doesn’t have that much considerable influence on the same when it comes to medium or high end rackets. Customers are unhappy with the string tension of Artengo rackets. From the survey, it is clear that 324 customers said that tension is very important and 106 customers said that tension is fairly important feature they consider when they buy a racket. Competitor brands like Yonex and Li-Ning are providing rackets with higher tension that customers are more inclined to buy those rackets. It is suggested to improve the tension of rackets.
Racket string tension is not mentioned in the decathlon website under racket description. Since it is a very important feature a customer look into when they buy a racket it is suggested to mention it on decathlon.in and on e-commerce sites like amazon and flipkart.Customer complaints about the quality and durability of BR800 model graphite rackets and BSC 800 model shuttlecock. Tie up with Zenith Badminton Academy has helped DSI Rohini to boost its sale.
One major reason for the huge market share of YONEX rackets is the availability of its products in every sports stores.Website loading time is high for decathlon.inApparels and accessories (mainly shoes) provided by Artengo are receiving good reviews from customers regarding its quality and design. Improve varieties in womenNo other brand is providing manufacturing warranty for its products. Decathlon is providing 2 year warranty for Rackets and shoes for manufacturing defects.RecommendationsLow end rackets price range include Rrs.
199, Rs. 250, Rs. 599 and Rs. 899. It is suggested to include a racket between the ranges Rs.