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Introduction And History Of Khadi Marketing Essay

3350 words (13 pages) Essay in Marketing

5/12/16 Marketing Reference this

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One major factor that made a significant contribution during the freedom movement of India (“satyagrah”) was “Khadi”. Khadi became a common factor among the “satyagrah” and served as unifying thread among Indians. It was right called “the livery of freedom”

Gandhiji was the founder of Khadi, but it was Khadi which inspired Gandhiji at every stage of his life and work. The first inspiration came to him in the year 1908. He returned to India from South Africa on Jan 9th 1915 and started his ashram at Ahmadabad. Here the Khadi became a practical.

It was the time for Nagpur session (1920) that the Indian National Congress decided to encourage “Khadi”. The first Khadi production centre was established at Katiawad, Gujarat. In 1921, when All India Congress Commitment at Vijayawada, the congress resolved to introduce 20 lacks charkhas in the country and also to invest Rs 3 lacks for the propose. The tricolour with the emblem of charkha on it was mooted by the congress and was accepted as the national flag of India.

Gandhiji launched the programme of Khadi and village industries as an integral part of the freedom struggle for the economic emancipation of the downtrodden masses of India by providing them with gain full employment and subsistence to them. He realized with a prophetic vision that next to agriculture, Rural and Cottage industries alone can provide the maximum employment with the maximum capital out lay to the poor and unemployed and under employed masses using the locally available resources.

Gandhiji, with basic thinking above the up liftment of downtrodden masses, has introduced the programme of Khadi and village industries in the Nation. The National Government of free India have constituted the Khadi and V.I. Commission and have taken step to boost the programme by providing financial support and several facilities. The programme has been gradually grown up in all over the country.

In Karnataka State only one person who thought over about the Khadi and village industries programme was late Mr Venkatesh Magadi and he was called as father of Khadi in Karnataka. During the period of decentralization of Khadi work in Karnataka State, it was though over to form Khadi Federation for the guidance of all the Khadi and village Industries sectors of the State. Under the Provision of registration of Societies Act, Karnataka Khadi Gramodyog Federation was got registered on 1st Nov 1957.

Late Mr V.T. Magadi was the 1st chairman of the institution and late Mr. Shrirranga kamath was the Vice-Chairman. The institution was started with the donation to the extent of Rs. 10,500/- donated by the member sector of the Federation. At the beginning Late Mr H.A. Pai from Ankola, Late Mr Anatha Bhat from Bijapur, Late Mr Jayadevarao Kulkarni from Belgaum, Late Mr B.J. Gokhale from Dharwad, Late Mr Vasudevarao from Chitradurga and Mr B.H. Inamdar from Raichur have enlisted their membership with the federation.

A recipient of direct loan from khadi commission the head office of the federation is situated at Bengeri, Hubli. Sales out let at Bangalore, Khadi production and sales centers at Biligi,Siddhapur,Gaddanakeri,Kerur of Bagalkot district are the branches opened to cater to the needs of public K.K.G.S.S.(Fed)is holding a property worth two Crores, in a turnover of over Rs.10 Crores, in whole sale,Rs.1.50 Crores in retail sales Andover Rs. 50 lakhs in village industries.

Today the federation is ably led by Mr T.S.Jyoti as Chairman and ever dynamic Secretary Mr S.V. Somanatti. It is needles to say that the footprints set by Mr V.T. Magadi are the guiding principles for the federation.

Toady the federation has strength of over 100 karyakarthas dedicating their services to the federation in different capacities. In order to increase and streamline the working of Federation, different sections are formed according to the work.


Customer satisfaction is often considered a primary factor for a successful business.Here,we are trying to identify what drives the customers, in the case of a fabric, a relatively unknown fabric outside of India known as khadi.This paper tries to identify the problems of the retail stores, which are an emerging market in India, to understand the needs of the customers, especially with respect to an age old traditional fabric. Understanding the mindset of the target consumer would lead to improvement in both the product and the retail store. The idea is to gauge what the consumers have in mind while visiting the store and the results would then definitely help identify the pros and cons of the stores and the product including the location, price, quality etc.To achieve this, the primary data is collected by addressing around a sample of 100 people with a well structured questionnaire. This data can draw out ideas, needs and possibly some innovations. This study can be used for several purposes mainly, in finding out what satisfies the customers and what does not, gives room for improvement regarding retail stores and hopefully push the manufacturers in to thinking identically with the consumers. After we collect the primary data, it could be used to compare with secondary data, there by giving us a chance of having a look in to,how the customers view changes over time, hence giving a chance to khadi manufacturers to suit their products,emporiums,etc to the consumers taste. However the research has its share of limitation. Owing to time constraints, it was conducted on a small scale and over a small period of time. This will examine only a single emporium in a state, so it should not be taken as an appropriate bench mark for the whole country.


To be successful, organizations must look into the needs and wants of their customers. That is the reason why many researchers and academicians have continuously emphasized on the importance of customer satisfaction, loyalty and retention. Customer satisfaction is important because many researchers have shown that customer satisfaction has a positive effect on an organization’s profitability. Due to this, the consequences of customer satisfaction and dissatisfaction must be considered. There is also a positive connection between customer satisfactions, loyalty and retention. Therefore, customer satisfaction, loyalty and retention are all very important for an organization to be successful.

The importance of customers has been highlighted by many researchers and academicians. Zairi (2000) said “Customers are the purpose of what we do and rather than them depending on us, we very much depend on them. The customer is not the source of a problem, we shouldn’t perhaps make a wish that customers ‘should go away’ because our future and our security will be put in jeopardy”. That is the main reason why organizations today are focusing on customer satisfaction, loyalty and retention. According to Hansemark and Albinsson (2004), “satisfaction is an overall customer attitude towards a service provider, or an emotional reaction to the difference between what customers anticipate and what they receive, regarding the fulfilment of some need, goal or desire”. Customer loyalty, on the other hand, according to Anderson and Jacobsen (2000) “is actually the result of an organization creating a benefit for a customer so that they will maintain or increase their purchases from the organization. Oliver (1997) said that customer loyalty refers to “a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future despite situational influences and marketing efforts having the potential to cause switching behaviour”.

True customer loyalty is created when the customer becomes an advocate for the organization, without incentive”. According to Hoyer and MacInnis (2001), customer retention is “the practice of working to satisfy customers with the intention of developing long-term relationships with them”. Zineldin (2000) said that retention can be defined as “a commitment to continue to do business or exchange with a particular company on an ongoing basis”.

Many researchers have looked into the importance of customer satisfaction. Kotler (2000) defined satisfaction as: “a person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations”. Hoyer and MacInnis (2001) said that satisfaction can be associated with feelings of acceptance, happiness, relief, excitement, and delight. There are many factors that affect customer satisfaction.

According to Hokanson (1995), these factors include friendly employees, courteous employees, knowledgeable employees, helpful employees, accuracy of billing, billing timeliness, competitive pricing, service quality, good value, billing clarity and quick service.

This is shown in the Figure below


Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace.

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization’s products.

Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry (Bart Allen) and Brodeur between 1990 and 1998 defined ten ‘Quality Values’ which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer’s expectation of performance and their perceived experience of performance.

This provides the measurer with a satisfaction “gap” which is objective and quantitative in nature. Work done by Cronin and Taylor propose the “confirmation/disconfirmation” theory of combining the “gap” described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance.


Retailing is a trading activity directly related to the sale of goods of services to the ultimate consumer for personal, non-business units. A retailer is the last middle men in the machinery of distribution & he is responsible to satisfy recurrent wants of consumers, retail trade is selling of varied boots in small quantities to the final consumer. There are three distinguishing feature of retail trade. The retailer deals in small quantities & his business is usually local in character. Secondly retail trade always shows tendency towards variety as it has to satisfy innumerable wants of consumers. A specialized retail shop is an exception. Thirdly a retailer, by predating near about the residential areas of consumer, sells his wares directly to consumers. Manufactured goods are worthless until they pass acid test of retail distribution. The retailer alone can offer safe & reliable goods to consumers.


Defining a new consumer culture, retailing beats everything else hollow. Though still at a nascent stage, the rate at which retailers outlets are mushrooming could give an amoeba a complex.

The Indian consumer initially accepted everything that was offered to them but from the nineties the trend changed & the market became more consumers driven. Consumers became more specific about what they wanted & did not pick up anything & everything that was given to them. In shot they became very choosy & needed alternatives to choose from. These in turn made the Indian consumers more knowledgeable about the products & facilities & they now become tough critics, savvy, purchasers, value driven spenders & practical thinkers when it comes to shopping. The demand for their time at work & home has made the consumers extremely selective about how they would spend their limited time on shopping.

The rate growth in India has gradually picked up in the last two decades. Growth prospects apart, India’s very size acts as the fourth largest economy in the world. It is also the second most populous nation in the world. This clearly indicates that within the broad picture of a developing nation, there are segments to represent big enough to represent large markets for organized retail.

Due to the increasing demand of consumers for variety & convenience under one single roof & the concept of shopping malls started taking shape in India. Though the concept of shopping malls came from the west, when it was introduced in India is was according to Indian taste & preferences.

In India there are a number of large towns & the population in these towns is also very high. This acts as a very important factor to attract the large retailers in venturing into these towns. In the ascending traffic congestion levels, the net result is overcrowded towns & parking hassles, One-stop shops have become the places of choice in such a scenario.

There has been an explosion of branded goods as a corollary to the receptive conditions created by the new trends; for e.g.: in the 80’s there was only one brand of salt available in the Indian market but today there are many brands that are available. Garments, cosmetics, shoes, etc are no way different as a number of brands have entered into the market.


The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviours such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization’s products. The reviewed literature suggests that the interests, beliefs, attitudes & tastes towards material are important factors in forming customers’ satisfaction on Khadi. To understand the Customer Satisfaction level towards retail stores and their products is one of the greatest problems. In the recent years, barely any study has been conducted on customer satisfaction on Khadi retail stores. Therefore now there is a need for the study.

Analytical study provides the Interests, beliefs, attitude & taste towards materials & retail stores of KHADI which intern gives scope for further improvement in Khadi retail stores, Product, Service & Price. This will provide the measurer with a satisfaction “gap” which is objective and quantitative in nature.


The aim of the study is to understand the different factors influencing the customers’ satisfaction on the Khadi. The focus of the study is on the following four objectives

1) Customer Satisfaction level on Khadi retail stores

2) Customer Satisfaction level on products of Khadi retail stores

3) Customers’ perception on products of Khadi.

4) Customers’ expectation.


Study helps to enable gain an insight as to the areas where it has to make improvement so increase its sales as well as Consumer acceptance. It will help in understanding the customers’ behaviour and their expectations. This study will help the Khadi stores to understand the customers’ need. It will help the Khadi stores in understanding the customers’ response towards attractiveness of the store atmosphere and interior decor. From the study we can understand the types of the Khadi product that costumers would need. And hence will enable the stores in understanding the future demands in the market.

The study will also help the Khadi merchandise in understanding the followings

1 Convenient of store hours for customers shopping needs.

2 Good selections of products present in the store

3 Attractiveness towards Merchandise displayed in store.

4 Customer satisfactions towards the merchandise/product bought.

5 Customer satisfactions towards the price paid to bought product.



Survey method will be adopted in order to collect the primary data required for the study.

Tools for data collection:

A structured questionnaire is formulated based on the objectives of the study and the data required for finding solution; feedback will be taken from the customers to know their satisfaction level on Khadi retail stores and products.

Primary data: data observed and collected directly from first-hand experience. A structured questionnaire is formed and circulated among the customers in stores.

Secondary data: published data and the data collected in the past or other parties. Data collected from books, journals and the websites, Bangalore.

The researcher uses both primary and secondary data for this study of purpose.


Sampling unit: A customer visiting emporium is identified as the sampling unit

Sampling size: The sampling size will be 100.

Sampling procedure: Random Sampling

6.3 Questionnaire

How often do you visit Khadi retail store?

0 Weekly once 0Monthly once 0Quarterly once 0 During discounts 0whenever needed

Store atmosphere and interior d├ęcor are appealing for you?

0 Strongly agree 0 Agree 0Somewhat agree 0 Disagree 0Strongly disagree

Store hours are convenient for your shopping needs?

0 Strongly agree 0 Agree 0Somewhat agree 0 Disagree 0Strongly disagree

What time do you suggest______________________________

A good selection of products was present in store?

0 Strongly agree 0 Agree 0Somewhat agree 0 Disagree 0Strongly disagree

Merchandise/product sold is a good value for your money?

0 Strongly agree 0 Agree 0Somewhat agree 0 Disagree 0Strongly disagree

Merchandise displayed are attractive?

0 Strongly agree 0 Agree 0Somewhat agree 0 Disagree 0Strongly disagree

Overall, are you satisfied with the store?

0 Fully satisfied 0Very satisfied 0 Satisfied 0Somewhat satisfied 0 Unsatisfied

Are you satisfied with the merchandise/product you bought?

0 Yes 0 No

Are you satisfied with the price you paid for what you bought?

0 Yes 0 No

Which product did you purchase in the store?

0 Apparel 0 Bed, bedspreads, blankets 0Others

How did product price compare to your expectation?

0Excellent 0 Very good 0Good 0 Fair 0 Poor

Would you recommend bought product to others?

0 Definitely 0 probably 0Not sure 0Definitely not 0Not used

How satisfied are you with overall quality of the product?

0 Fully satisfied 0 Very Satisfied 0 Satisfied 0Somewhat satisfied 0 Unsatisfied

Are you satisfied with your sales person in the store?

0 Fully satisfied 0 Very satisfied 0 Satisfied 0Somewhat satisfied 0 Unsatisfied

How satisfied are you with time, spent in the store/

0 Fully satisfied 0 Very satisfied 0 Satisfied 0Somewhat satisfied 0 Unsatisfied

How satisfied are you with variety of products available in the store?

0 Fully satisfied 0 Very satisfied 0 Satisfied 0Somewhat satisfied 0 Unsatisfied

How satisfied are you with location of the store?

0 Fully satisfied 0 Very satisfied 0 Satisfied 0Somewhat satisfied 0 Unsatisfied

Would you like to have more Khadi stores in the city?

0 Yes 0 No

If yes, where ____________________

Why you use Khadi, because it is

0 Nature friendly 0 Traditional 0comfort

How was your overall purchasing experience?

0Excellent 0 Very good 0Good 0 Fair 0 Poor

Please enter your details below:

NAME: __________________________

CITY: __________________________

PHONE: __________________________

E-MAIL: __________________________

AGE: 0 Below 20yrs 020-30yrs 0 30-40yrs 040 and above

GENDER: 0Male 0 Female


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