Professional Documents
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Submitted by:
SACHIN CHAUDHARY
PGDM-2/1528(2015-2017)
This project is exclusively prepared by me under the guidance of Mr. R. Ramesh, and
has not been submitted to any other University or Institute for the Award of any degree
diploma / certificate or published any time before.
Name:
Sachin Chaudhary
Universal Business School
Student Code: PGDM2-1528
Date: (Signature)
ACKNOWLEDGEMENT
The ideal way to begin documenting this project work would be to extend my earnest gratitude to
everyone who has encouraged, motivated and guided me to make a fine effort for successful
completion of this project.
I would like to take the opportunity to thank and express my deep sense of gratitude to my
corporate mentor Mr. R. Ramesh (Sr. V.P Sales) for giving me an opportunity by taking me as
an internee in their organization. This proved to be a very good learning experience for me,
where I could get an exposure to all the aspects of real time Core customer satisfaction activities.
I am very thankful to my faculty mentor Prof. Sushant Nanda for guiding me throughout the
project. I am greatly indebted to both of them for providing their valuable guidance at all stages
of the study, their advice, constructive suggestions, positive and supportive attitude and
continuous encouragement, without which it would have not been possible to complete the
project.
I would also like to thank Mr. Rudraksh Verma (Manager- Trade Marketing) & Mr. Surajit
Gogoi (Deputy Manager) who in spite of busy schedule has co-operated with me continuously
and indeed, their valuable contribution and guidance have been certainly indispensable for my
project work.
I owe my wholehearted thanks and appreciation to the entire staff of the company for their
cooperation and assistance during the course of my project. I hope that I can build upon the
experience and knowledge that I have gained and make a valuable contribution towards this
industry in coming future.
2. Chapter 2: Introduction
7 Sample Questionnaire
7.1 Geysers 85
7.2 Monoblock Pumps 87
1
The purpose of this research is to make a positioning for newly launched geysers and monoblock
pumps of Parryware. In order to identify the parameters for positioning an exploratory study was
conducted. The exploratory study comprised of in-depth interviews of some dealers and retailers of
different brands. Some major differentiating parameters which came out of the study were the
following:
Brand image
Technical details
Competitive pricing
Incentives given to the dealers.
Customer behavior
Based on the above mentioned points, questionnaires were designed in order to carry out
multi-dimensional scaling of the dealers’ responses. Both attribute & non-attribute based
questionnaires were designed & few geysers as well as monoblock pumps were chosen to be listed
on the questionnaire for the purpose of comparison. Few of them are:
These brands were chosen as per the analysis on secondary data which reveals that these are the
brands with whom Parryware has to compete with. The responses were collected & analyzed on
Excel. Through the analysis few dimensions were identified which comprised brands image &
their network.
In the Geysers - Parryware position matched with Jaquar second only to Racold which was on top
position against the two parameters i.e. performance & Brand image while in the pumps segment
Parryware position matched with USHA which is after Crompton and Kirloskar in the market.
2
CHAPTER- 2
Introduction
3
INTRODUCTION
athrooms and kitchens were once considered just as one portion of home where people
B usually visit early in the morning to perform their daily routine. But today they are one of
the important considerations for a buyer whenever he buys a flat. Today various sanitary
companies across globe are providing innovative & creative solutions to their consumers.
Bathrooms are becoming more and more intelligent & ecofriendly which not only saves water but
also gives unbelievable facility to their users. Bathrooms are becoming comfort zone today. From
faucets to showers, cisterns to waterless urinals, each & every equipment’s are being designed to
give more comfort. According to a recent report from Research and Markets, more people in India
are viewing Sanitaryware products as a medium through which they can showcase their wealth and
premium lifestyle. In addition, companies are also manufacturing products to suit the upbeat
lifestyles of new-age Indians by providing a greater emphasis on looks and comfort.
Indian Sanitaryware market consists of both organized player and unorganized players, with
organized players like Cera, Parryware, Hindware and Jaquar holding the majority share
(60% approximately). Further, with increasing brand awareness and demand for luxurious and
stylish Sanitaryware, the market share of organized players in the overall Sanitaryware market is
expected to increase in coming years. According to the recently published report by TechSci
Research “India Sanitaryware Market Forecast and Opportunities, 2018”, the southern region holds
the highest market share, in revenue terms, of the country’s Sanitaryware market. Among the
metropolitan cities, Delhi NCR’s contribution is the highest as a result of continuing growth in
hospitality, SEZ, residential and healthcare sectors. According to the report, India’s Sanitaryware
market is projected to grow at a CAGR of around 45% during 2013-18.
During my project I came to know that today’s consumer is very brand conscious, and he look for
branded instrumentalities whenever come to visit sample house. “Today’s consumer is very
intelligent and knows one n’ all brands. Sometimes they demand one brand over other.”
Companies taking cues from these ideas are trying to cross the threshold of consumer mind.
International brands are making their presence felt by their novel offerings and giving value to the
consumer money. Most of them are targeting just the upper segment of market and keeping their
eye on high end customers who do not mind to give some extra in order to get a bathroom of their
4
dreams. Sanitaryware companies are getting into entire bathroom solutions in order to provide
their customers with a one-stop-shop.
Distribution channels today are backbone of any industry. In this industry developing distribution
channel is a big challenge. Margins are really low with infuriating prices of raw materials.
Companies winning strategy is to play with their operations. Companies like Grohe have adopted
practices which are helping them to make their process more efficient. Grohe lean® came up
emulating Toyota Production system which cut their waste by unbelievable 35%.
5
TOP SANITARYWARE BRANDS IN INDIA
6
Market Size of Sanitaryware and Bathroom Fitting
Today India’s Sanitaryware and Bathroom fittings industry is estimated to be valued at a combined
INR 8,000 crore, which was used to be an INR 6000 crore market two years ago, the industry has
grown nearly 25% in the last couple of years. The share of Sanitaryware segment is estimated to be
valued around INR 2700 crore and the Bathroom fitting industry is estimated at approximately
INR 5300 crore. The organized segment in the sanitary and bathroom fitting industry comprises of
nearly 55%. As per the census 2011 data, 19% of urban homes in India do not have a toilet and this
emphasizes on the tremendous growth potential this segment has.
PARRYWARE –
The easiest brand to find, has approximately 700 plus dealers in India, less than the number of
dealers of Hindware, Jaquar and Cera Sanitaryware.
Parryware cheapest closed couple toilet is “Indus” priced at INR 4890, its cheapest wall hung is
priced at INR 6360. Its cheapest wall hung basin is “Cosmos” priced at INR 1030, Corner basin is
available at INR 1130 and over counter is “Small Oval” priced at INR 1500.
7
Hindware –
The cheapest closed couple toilet by Hindware is “EWC Papular P” priced at INR 3260. Its
cheapest wall hung wash basin is” WB CUTE" priced at INR 810, similarly corner basin and over
counter basin are priced at INR 1,040 and INR 1,830.
Cera –
Its cheapest closed couple toilet is “Calibre” priced at INR 5860; its wall hung toilet is “Carat” is
priced at INR 4550(with seat cover). Its cheapest available wall hung wash basin is “Corren” is
priced at INR 2945, its over counter wash basin is “Oval” priced at INR 1270 and its corner basin
is also available at a minimum price of INR 940.
Industry Growth
Industry Growth
12000
10000
Revenue (in crores)
8000
6000
4000
2000
0
2013 2014 2015 2016 2017
year
With the growth rate of nearly 13%, the Sanitaryware and bathroom fitting which at present is
valued at approximately INR 8000 crores is estimated to be valued at approximately INR 10,000
crores in year 2017.
8
Industry Growth Drivers:
1. Increasing level of income and growing spending rate
When combined with the growing Income Per Capita (PPP), urbanization rate, an
increasing number of nuclear families and an increasing focus on spending, the consumer
market potential is clear. The diversity in spending patterns, eating habits and lifestyle
changes (focused on higher spending) in various parts of the country offer a sizable market
for a range of industries wanting to set up their office in India.
6000
4000
2000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(
(Source- IMF)
Grwoing Spending
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
9
2. Growth in Real Estate in India and Rapid Urbanization
Due to the rapid urbanization, positive demographic and rising income level, the Indian real
estate sector has attracted significant investments over the past few years which have
directly or indirectly benefited the Ceramic tiles, Sanitation and Bathroom fitting
industries.
(Source- IBEF)
10
Impact of “Swachh Bharat Abhiyaan” and “Housing For All”
11
Evaluation of Sanitary Industry Attractiveness
12
Bargaining power of suppliers Bargaining power of buyers
Sanitary products are consisting of two types The number of buyers in the coming seven
of different raw materials, the first type is years will be very large.
called the body and the second type is called
the glaze. Thera material used for body is
china clays, fireclays, ball clay, quartz,
feldspar etc. and the raw material used for
making glaze is clay, quartz, feldspar and
different oxides for different colors.
Absence of real substitute to Sanitaryware, Absence of real substitute of Sanitaryware.
limits the number of buyers for these Therefore, the industrial attractiveness is high.
suppliers. Therefore, the industrial
attractiveness is high
Overall Assessment
The demand in the coming years is going Tobe Minimum government intervention & easy
exponentially high. availability of raw material.
Leading player have already exhausted their Absence of any real substitute. Therefore,
existing capacity and are planning for the overall industrial attractiveness is high.
expansion.
13
Industry Profile of Consumer Electronics and Durables
As per a recent report by ASSOCHAM, the consumer electronics and durables sector in India is
expected to grow at a CAGR of about 15% and grow from Rs. 34,000 crores to reach Rs. 52,000
crores by 2016 by rising demand from the Indian middle class as well as growing sales through the
online retail format. According to the report, multi-national companies (MNCs) with superior
technology and better quality control account for a market share about 70% of consumer
electronics and durables market in India and maintain a strong hold on the urban middle class
segment growing at about 12-15%.
As per the study, the consumer durables and electronics market in rural and semi-urban areas
account for about 40 per cent of the overall market and is growing at about 30 per cent CAGR and
is currently estimated at about Rs 16 lakh crore and is likely to cross Rs 21 lakh crore mark by
2015.
“If you look at the AIDA model of buying (Awareness – Interest – Desire – Action), since the AID
are happening increasingly online, there is a growing chance to convert the last stage online too,
provided the right price point, delivery time and experience are served. A lot of products such as
storage devices and small appliances have become low involvement purchases for a lot of
consumers, because of which convenience of shopping from home and getting it delivered saves
them effort and time. Also, with product life cycle getting shorter, people are switching to newer
gadgets more often than ever.”
As per Forrester Research Inc., growth in Indian online retail market is set to be the fastest in Asia-
Pacific with total market slated to reach over $8 billion by 2016. The online format has also added
additional consumers from Tier-II and III cities thereby increasing the overall demand for such
products. Consumers can now research product and category manuals, compare prices as well as
hunt for discounts before making a purchase online. The online market for consumer durables and
electronics is now moving towards inflection point and maturity and we may see some
consolidation happening over the next couple of years.
14
Porter Forces for Consumer Durable Industry
Availability of Substitutes
The threat of availability of substitutes in Indian consumer durables market is medium, whereas
the white goods segment (air conditioners, refrigerators) face low threat of substitute. As new
technologies enter the market at an increasing pace, the manufacturer need to upgrade their
products accordingly.
E.g.- VCR got replaced by DVD player.
Competitive Rivalry
Presence of large no of local as well as international players in the domestic durables market in
each segment leads to high rivalry.
Supplier Power
The suppliers power is low because of the availability of the large number of suppliers in the
domestic market and cheap import options for components from other suppliers and countries.
Buyer Power
The buyer power is quite high as they have multiple brands across different price points, hence
giving them a wide variety across both durable and non-durable products to choose from.
15
Industry Analysis of Geyser Market in India
Water heaters in India are emerging as technologically upgraded and innovative products. Electric
water heaters are currently the most popular among consumers. Although electric water heater
market is moving towards maturity, continuous innovations on the part of manufacturers are
driving growth in the market. Major players in India water heaters market are Racold, Bajaj,
Venus, V-Guard and AO Smith among others. The market is currently dominated by Racold
followed by AO Smith, Havells and Bajaj. Moreover, foreign companies like Ferroli are entering
the market with innovative products. Other small and medium sized companies also hold a
significant share of around 20% in the market. Water heater manufacturers in the country are
facing stiff competition from unorganized sector and Chinese imports, which provide cheaper
products. Indian consumers have limited awareness of technology and consider water heater an
ordinary electrical appliance, giving not much importance to its specifications.
According to a recently published TechSci Research report "India Water Heaters Market Forecast
& Opportunities, 2020", water heaters market in India is expected to cross USD330 million in
2016. Major factors driving water heater sales in India include increase in disposable income,
improved standard of living and rising awareness among consumers regarding benefits of branded
water heaters. Residential sector is currently the largest revenue contributor in India water heater
market. The high contribution of residential sector can be accredited to the increase in housing
projects in the country. However, water heater use in India is not limited to residential sector as
they are increasingly being adopted in industrial and commercial sector as well.
According to India Water Heater Market Overview, the market for water heaters in India grew
with a CAGR of 26.16% from 2010 to 2014. The Water heater market in India was estimated to
have a market of more than INR 1500 crore in 2014. Better government. Electricity shortages and
frequent outages are major constraints in the use of solar heaters, causing higher penetration of
electric water heaters, especially in Tier 2 and 3 towns. Some of the major players in the water
heater market are Racold, Bajaj, V-Guard, Venus and A.O. Smith.
16
CHAPTER- 3
Company Profile
17
About Roca: Brief and History
Roca is the world leader in the definition of bathroom space and a benchmark reference in the
world of design. Currently they are active in more than 135 different countries and have 76
production plants spread across five continents. Roca Directly employees more than 21, 000
people across the globe. Roca began its activity as a company that made cast iron radiators for
domestic heating at its factory in Gava, near Barcelona.
History
1929, Roca entered the bathroom space by starting the production of baths.1954, Roca started the
production of brassware. In the 90s the Group developed a first step of international expansion,
mainly based on setting up commercial branches and signing agreements with local leading
brands. Besides Portugal and France, Roca’s presence started to spread over the United Kingdom,
Germany, Italy, Russia, Morocco, Argentina, Brazil and China.
The turning point of the internationalization process took place in 1999, with the acquisition of the
Swiss Keramik Holding Laufen, fourth global manufacturer in those days. The acquisition of
Laufen allowed the Group to strengthen its position in strategic markets where the brand had less
presence, such as Eastern Europe, Brazil and the USA.
In 2007, Roca Group came into a JV with the Chennai based Murugappa Group and by 2010,
Parryware, which is India’s leading Sanitaryware brand, became a 100% subsidiary of the Roca
Group. Presently, with 7 plants including the state-of-the-art plant at Bhiwadi, Roca and
Parryware are equipped with leading infrastructure.
18
About PARRYWARE
Brief History
Parryware, India’s leading manufacturer of bathroom products, originated from EID parry, one of
the country’s oldest and most reputed business entities. In 2006, it entered into a joint venture with
Roca corporation, Spain, became a Roca Group subsidiary in2008 and turned into a wholly- owned
subsidiary of the Roca Group in 2011.
The journey started in 1952 when Parryware started under EID Parry in Ranipet. The company
joined hands with Royal Doulton in 1960 and inaugurated a new casting unit in 1976. Change
came knocking in 1980 when Murugappa group took over Parryware brand.
Five years later, in 1985 a revolution was born in shape of the Cascade Range of closets which
upgraded Parryware from just a bathroom product manufacturer to a brand that stood for
glamorous bathrooms. Roca group took over Parryware in 2006 and the growth story continues
with increased production prowess and deeper penetration into the INDIAN market.
19
Registered Offices in India
Central Offices: - Chennai (+914449022000)
No. 62, K G N Towers,4th floor, A-Wing, Eithraj Salai EGMORE, Chennai-600105
Sales Offices
Chennai, Bengaluru, Gurgaon, Hyderabad, Mumbai, Kolkata and Kochi
Company Mission
To be a truly World Class Company in all respects exceed our customers’ expectations in quality,
delivery and cost effectiveness through continuous product innovation, cutting edge technologies,
and customer interaction.
Awards
Parryware’s strong foothold in the market has been testified by cover titles such as “Super Brand”
& “Power brand” in 2011 and “Trusted Brand” in 2013 and 2014. Parryware products have been
recognized/approved by all major quality certifications agencies.
20
Parryware Values
The Parryware ethos is perfectly captured in its brand essence: Trust, Practically, Value Offerings
and Contemporaneity. True to its legacy, Parryware continues to progress from Strength to
strength and charter ahead as a provider of complete and contemporary bathroom solutions for
INDIA.
Trust
The Key ingredient of our 6-year relationship, your trust is our pride, and we promise to continue
delivering superior quality, attractive pricing, extra ordinary range and unparalleled service.
Practical
With an eye for detail, our products are tailored to your needs, your imagination, your space and
your pocket. Simple yet fabulous bathroom solutions.
Contemporary
We believe in constant reinventing to sync with our dynamic users, while preserving our core
values- the secret ingredients of our revolutionary bathroom fittings.
Youthful
The youthful and exuberant spirit of the org. resonates in our experimental designs that constantly
challenge the status quo and are trendsetters.
21
Strategy
Value Based Management is our integral philosophy, directed towards maximizing long-term cash
flow and shareholder value through:
Focus on the Company's core profitable segments to build up our position as one of the
leading Sanitaryware companies;
Investments in information technology to improve planning and control of operation.
Increased investments in Human Resources Training & Development to upgrade and
broaden the skill base of the organization in consonance with changing needs.
Build flexible cost-efficient manufacturing base through a balanced mix of in-house and
contract manufacturing
We encourage experiential learning, and believe in clear delegation of authority and acceptance of
personal accountability. We value the involvement of our colleagues in bringing the best to our
organization in a spirit of understanding, trust and appreciation of cultural differences. We are
open to discussing alternative views and build on constructive feedback.
22
MANAGEMENT
Key Personnel
Managing Director Mr. Pau Abello
Sr. V.P Sales Mr. R. Ramesh
Sr. V.P HR Mr. MV Vasudevan
CFO Mr. Nirmal Kumar
Marketing Manager Mrs. Mayuri Saikia
General Manager (Sourcing) Mr. Vipin Rastogi
Manager (Trade Marketing) Mr. Rudraksh Verma
23
PRODUCT PORTFOLIO
24
PRODUCTS
25
Closets
26
27
Basins
28
Urinals
29
Faucets
30
Wellness
31
Allied Products
32
Bathroom Furniture
33
Geysers & Pumps
34
Competition Overview & SWOT Analysis
35
SWOT ANALYSIS
Parryware Hindware Cera Jaquar
Strengths Trendsetter (cascade First in India to first to use Operates in vari-
cistern) receive ISI License NATURAL Gas ous bath verticals
First & only “super (1962) Conferred Power like Sani-
brand” & “power brand” Has been rated Brand taryware, shower,
7 plants across INDIA amongst top 100 Voted product of heaters, wellness
Path breaking concepts small & medium the year in range of products,
Dual Flush & Anti- Mi- companies by Sanitaryware whirlpool, steam
crobial surfaces Forbes Magazine segment for cons. cabins.
International presence Manufactures 2.7 Years World class brands
(S.A, Sri-lanka, Middle million Steadfastly and presence
East) Sanitaryware piec- growing Significant mkt in
Wide portfolio of prod- es each year. Modern facility bath fitting indus-
ucts Most committed with latest try
Won over 40 awards distribution net- machinery (CNC Producing over
work in India. Machines) & 45000 faucets a
First company in automatic polish- day
the building ing 3 state of art
material to be manufacturing
awarded the pres- facilities
tigious ISO 9001, Strong advertising
14001 and OHSAS
18001 certificate
weakness Market Share is limited Less international Distribution net- High price
presence work is not strong Being a market
Limited market Limited interna- leader, under the
share tional existence scanner
Opportunities Should leverage brand Should leverage Can Inc. its Pan Can expand using
equity of Roca and ex- brand equity and India distribution mergers and
pand in int. mkt. implement to Inc. worldwide acquisitions
Can enter into new mar- Umbrella Branding presence Real estate sector
ket by mergers to get a Can build up a More advertising is growing at a hue
worldwide presence. strong network for through TV and space; this is a
worldwide pres- online media good sign for
ence Jaquar
Threat Regional players in the Regional players Regional low cost Low price
Sanitaryware sector in the sanitary manufacturers alternatives
Might get dissolved as a market Govt. policies Other leading
brand into ROCA Hindware should keep changing brands
also look for trade
promotional
schemes.
36
CHAPTER-4
Research Methodology
37
OBJECTIVE & SCOPE OF STUDY
38
Research Methodology
A questionnaire was prepared to conduct the survey covering the Delhi NCR region as a
neutral person.
The question was presented in one to one interview with each of the respondents.
Responses of the concerned persons had been thoroughly analyzed.
Conclusions had been arrived at using the response of the concerned persons and not on
questionnaire alone.
Generally speaking, dealers are most reserve persons on the planet and they are not flattered by
attention and this sometimes overcomes any inhibitions. All you can do in such circumstances is to
give up and try something else likely to be more productive - you haven't the time to spend on
lengthy discussions. Your stance, once granted access, depends on how much of an active
participant you want to be in the arena you are observing - the more obviously committed you are
to one particular stance or ideology the more others will take this into account when revealing their
thoughts or their actions to you.
In this context the questionnaire was not a fully-fledged one and was made with an intention of
getting the main information as dealers don’t have that much time to spare and also a long
questionnaire may irritate them. So the questionnaire used in my research was really crisp and was
aimed at getting the required information in the least time, also the questionnaire was used for
primary purpose only.
Research Design
Research design specifies the methods and procedures for conducting a particular study. A
research design is the arrangement of conditions for collection and analysis of the data in a manner
that aims to combine relevance to their search purpose with economy in procedure.
Research design is broadly classified into three types as:
1 Exploratory Research Design
2 Descriptive Research Design
3 Causal Research Design
39
Descriptive Research Design was used in this research.
Descriptive research studies are those studies which are concerned with described the
characteristics of particular individual. In descriptive studies, the researcher must be able to define
clearly, what he wants to measure and must find adequate methods for measuring it along with a
clear cut definition of population he wants to study. Since the aim is to obtain complete and
accurate information in the said studies, the procedure to be used must be carefully planned. The
research design must make enough provision for protection against bias and must maximize
reliability, with due concern for the economical completion of the research study.
Source of Data
|
Primary Data: - Primary data means data that is collected by different techniques like
questionnaire, interview, Survey etc. In this project, primary data has been collected by
the means of questionnaire and survey.
Secondary Data: - Secondary data means data that is already available i.e. it refers to
the data which have already been collected and analyzed by someone else. The
secondary data involved in this project has been gathered from the internet and different
catalogues.
40
Tools to Collect Data
SAMPLE SIZE
Sample Size for the study of Geysers is 45, while it is 35 for the pumps.
SAMPLING METHOD
In this marketing research project, I am using Random sampling method.
The sample area and sample size has been limited due to time constraint.
In a small sample size, it is not possible to do segmentation.
Dealers (respondents) are reluctant for their feedbacks & opinions, and authenticity of their
statements can’t be verified too.
All the observation and recommendation are made on the feedback obtained from survey.
41
CHAPTER-5
Data Analysis
42
METHODS & TECHNIQUES OF DATA ANALYSIS
Raw data can take a variety of forms, including measurements, survey responses, and observations.
In its raw form, this information can be incredibly useful, but also overwhelming. Over the course
of the data analysis process, the raw data is ordered in a way which will be useful. For example,
survey results may be tallied, so that people can see at a glance how many people answered the
survey, and how people responded to specific questions. In the course of organizing the data,
trends often emerge; modeling the data with the use of mathematics and other tools such as SPSS
and Excel can sometimes exaggerate such points of interest in the data, making them easier for the
researcher to see. Charts, graphs, and textual write ups of data are all forms of data analysis. These
methods are designed to refine and distill the data so that readers can glean interesting information
without needing to sort through all of the data on their own.
43
Data Analysis Process
Once the necessary data collected, the next task is to aggregate the data in a meaningful manner. A
number of tables are prepared to bring out the main characteristics of the data. The researcher
should have a well thought out framework for processing and analyzing data, and this should be
done prior to the collection. It includes the following activities:
I. Editing
The first task in data processing is the editing. Editing is the process of examining errors and
omissions of irrelevant information in the collected data and making necessary corrections in the
same.
II. Coding
Coding is necessary to carry out the subsequent operations of tabulating and analyzing data. If
coding is not done, it will not be possible to reduce a large number of heterogeneous data into
meaningful categories with the result that the analysis of data would be weak and ineffective, and
without proper focus.
III. Tabulation
Tabulation comprises sorting of the data into different categories and counting the number of
cases that belong to each category, usually done in MS Excel. The analysis based on just one
variable is obviously meager.
IV. Analysis
After the all three above steps, the most important step is analysis of the data.
44
Detailed Analysis of
GESYERS MARKET
45
Objective 1: To find the major geyser players in the market and their
demand.
Questions:
Findings: -
18 out 45 dealers are dealing in Racold, 16 each are dealing in Havells and Crompton, 14
in AO Smith, 9 in v-guard and 7 each in Jaquar, Thermo king and Bajaj.
Other brands available with the dealers are Venus (5), Haier (2), Pearl (2), Tanza, Airex,
kenstar, Great king and the list goes on…
Out of all these brands Racold, AO Smith and Crompton are in demand(moderate).
46
20
18
BRANDS
18
16 16
16
14
No. of Responses
14
12
10 9
8 7 7 7
6 5
4 3
2 2 2
2 1 1 1 1 1 1 1 1 1 1 1 1 1
12
No. of Outlets
10
10
6
4
4
2 1 1 1 1 1
0
ao smith racold marco venus jaquar thermoking crompton bajaj
47
OBJECTIVE 2: To identify the technical details & price range of
Geysers.
Questions:
Q3. Which type of geysers are in demand?
Q7. What is the average Price range in which most of the geysers are sold?
Findings: -
Storage geysers, used in bathroom, are in demand and are sold at a ratio of 4:1 to the
instant heating geysers (used for kitchen purposes).
Geysers with the capacity of 25L are in demand followed by 15L,10L and 35L
respectively.
When it comes to color only white and ivory are preferred by customers that too in
vertical shape followed by horizontal (3:1 vertical to horizontal).
Although geysers are sold 365 days a year but “Winter season” is considered to be
favorable particularly in the months of oct-feb.
48
capacity Season
3% 6% anytime
28%
37%
54%
winters
72%
capacity 10L capacity 15L
capacity 25L capacity 35L anytime winters
10
6 5
4
4
2
2 1 1 1 1 1 1 1 1 1 1 1 1
0
3-6 K 3-8 K 4-12 K 4-5 K 4-6 K 4-8 K 5-10 K 5-6 K 5-7 K 5-8 K 6-8 K 7-8 K 8K 8-10 K 8-12 K 8-9 K
Shape
25
20
21
15
10
5 7
4 1 2
0
all cylindrical horizontal square vertical
49
Objective 3: Understand the market ; dealers benefits ; trend in
sales?
Questions:
Q.8 What is your trade margin?
Q.9 What is the credit time given to you by the company/distributor and are you satisfied with it?
Q.10 Do you get long term incentives like TOD (turn over disc.)?
Q.12 Is there any change in the sales of geysers for past few years? If yes, what are the possible
reasons?
Findings: -
Trade margin of dealers varies from 1% - 10% but most of them are getting a margin of
either 2-3% or 3-4%, with Racold providing the highest dealer margin (as per dealers).
On an avg. 30 days is the credit time given to the dealers and they are satisfied with it but
10 out of 45 dealers always prefer only cash payment so as to get maximum margin.
Companies are providing different-2 schemes, like holiday packages (36% of the dealers
are getting), cash discount (33%) and target schemes (15%).
55% of the dealers are getting long term incentives like TOD.
49% of the dealers are getting their products directly from company followed by 46%
from the distributors and rest from the wholesaler.
48% of the dealers said that there is an increase in the sales trend of geysers while 19% of
the dealers denied this fact, whereas according to 33% of the dealer’s sales trend is
constant there is no such increment/decrement in sales.
According to the majority of dealers this change is due to the change in consumption
usage of the customer and competition.
50
Trade Margin (%)
8
7
6
5
4
3
2
1
0
1-2% 2-3 % 2-3% 2-5% 3-4% 4-5% 5-10% 5-7% 8-10%
Highest Margin
7
6
5
4
3
2
1
0
bajaj equal havells local racold
holiday package
15%
cash disc.
TOD
8% 35%
NO Scheme
3%
2% credit notes
5%
quantity
target scheme
32%
51
Credit Time
12
10
8
6
4
2
0
7 15 20 30 40 45 60 70 90 15-20 15-30 30-45 45-60 No
(only
cash)
No. Of days
13% 33%
48%
79% 19%
wholesaler
5% Channel TOD
no yes
49% 45% 55%
46%
52
Objective 4: Consumer buying behavior, preferences and
expectations?
Questions:
Q.13 What are the key decisions a customer has to make before buying a geyser?
Q.14 Does a customer compare a brand, if yes than please rank the following attributes that he
considers?
Findings: -
When a customer makes his mind to buy a geyser, then on following factors he makes his
key Decisions: -
Quality - 40% of the customers look for the best quality available in the market
Price- 27% customers give preferences to their pocket and look for a pocket friendly
product.
Brand Advertisement satisfaction: - 25% are satisfied with the T.V. advertisements and
the promotional activities (banner, hoardings, etc.) used by the companies.
Yes, customers do compare brands while purchasing and attributes for their comparison are
(higher to lower in order)
Brand image > Price > Features > Design > Dealer recommendation > Technology >
warranty> Safety Features > Availability at the store. (on the basis of research)
Brand Image is the most important factor that differentiates two/three brands in the mind of
the customer.
**Price also plays an important role but a customer is ready to pay some extra bucks for a
branded product so price is not the top most in the priority list of a customer.
53
A total of 5 customers were also surveyed.
To our surprise 80% of them were using Bajaj geysers followed by Havells (20%).
Their preferences for shape was Horizontal and colors were white and ivory.
For 90% of them quality is the first thing that came from brand image followed by price
factors and technology used.
DECISION MAKING
35
No. of responses
30
25
20
15
10
5
0
QUALITY PRICE BRAND ADD. DEALER
RECOMMENDATION
Attributes
54
Hypothesis test
Let us do a hypothesis test (x=0.5), whether customer is influenced from quality, price & other
factors using CHI SQUARE TEST.
H0= let us take the hypothesis that brand image through advertisement, quality, price and dealer
recommendation do not influence the customer in their buying decision.
H1= let us take the hypothesis that brand image through advertisement, quality, price and dealer
recommendation influence the customer in their buying decision.
55
Table for Expected frequency
Hence it is proved, that brand image through advertisement, quality, price and influence the
customer in their buying decision.
56
Detailed Analysis of
MONOBLOCK PUMPS MARKET
A total of 35 dealers/retailers having an avg. experience of 20 years were surveyed out of which:
57
Objective 1: To find the type of monoblock pumps and the purpose
they are used for?
Questions:
Q1. For which purpose monoblock pumps are in demand?
Findings: -
According to 77% of the retailers monoblock pumps are in demand for domestic purpose,
while 18% of them said monoblock pumps are in demand for agriculture purpose.
3/4th of dealers said centrifugal type of pumps are in demand and according to the rest of
dealer’s submersible type is in demand.
Questions:
Q3. Which brand of monoblock pumps do you deal in?
Findings: -
26 out of 35 dealers are dealing in Crompton, 10 in Kirloskar, 4 each in v-guard, oswal
and Havells.
Other brands available with the dealers are KSB (3), Bajaj (2), Sameer (2), lubi (2), nova,
khaitan, alpha and the list goes on…
Out of all these brands Crompton is in demand followed by Kirloskar.
58
Purpose Type
5%
26%
18% 74%
77%
Brands
30 26
No. of Responses
25
20
15
10
10
4 4 3 4
5 1 2 1 1 2 2 1 1
0
kirloskar
In demand through 11%
kirloskar
crompton
89%
59
Objective 3: find the benefits availed by the dealers through
company?
Questions:
Q4. What is your trade margin?
Q5. What are the credit policies of the company and what is your satisfactory level for that?
Findings: -
Trade margin of dealers varies from 1% - 10% but most of them are getting a margin of
either
1-2% or 4-5% followed by a margin of 10%.
On an avg. 30 days is the credit time given to the dealers but around 35% of the dealers
prefer only cash payment so as to get maximum margin and they are satisfied with it.
28% of the surveyed are not getting any type of schemes from companies while others are
getting schemes like Discount, Holiday packages, TOD and incentives.
72% of the dealers are not using any sort of strategy to promote their products while 17%
are giving extended warranties as a part of their promotional strategies followed by long
life promises (6%) and advertisements (5%)
60
TRADE MARGIN(%)
12
10
No. of Dealers
8
6
4
2
0
1-2% 2-3% 2-5% 3-4% 3-5% 4-5% 5-10% 5-6% 9-10%
12
NO. OF REPONSES 10
10
8
8 7
6
6
4 4
2
2 1 1 1 1 1 1 2
0 0
17%
extended
89% warranty
6%
long life
72% no
moderate satisfied
61
Objective 4: To know about the price range of the pumps and
preferred season (if any) of their selling?
Questions:
Q8. Is there any particular season/time in which customers are buying monoblock pumps?
Q10. Out of 100 customers how many will go for the lower price range?
Findings: -
Although pumps are sold 365 days a year but “Summer season” is considered to be
favorable by 69% of the dealers.
Mono blocks pumps are mostly sold in the price range of Rs. 3000-5000
Out of 100 customers 30-40% of the always look for the lower price range.
62
Season
28%
anytime
no idea
3%
69% summers
12
10
8
6
4
2
0
3-5k 4-5k 4k 5-10k 5-6k 5k
PRICE RANGE
63
Objective 5: to find out the technical details of pumps?
Questions:
Q.11 What is the HP of most common sold pumps in the market?
Q.12 What is the average size of inlet/suction pipe of these pumps? (meters)
Q.13 What is the avg. discharge range for the pumps customers are looking for? (LITERS/
MINUTES)
Q15. What type of water flow through these pumps customers are looking for?
Findings
According to 78% of the dealers only 1 HP is sold while rest of them says 0.5 HP is also
sold with alongside of the 1 HP one.
Average size of Suction Pipe is 0.024m i.e. 1 Inch (as per the dealer’s response)
78% of the customers want maximum flow of water while rest want nominal range of
water flow.
**Most of the dealers are not aware of the technical details of the product like head range,
discharge range and size of suction pipe.
** Detailed discharge range is present at the end of this report.
64
HP Water Flow
22%
22%
78%
78%
14
12
10
8
6
4
2
0
0.012 m 0.0137 m 0.015 m 0.024 m 0.025 m 18.28 m 30 m 65 m 7.62 m
LENGTH (IN METRES)
65
HEAD RANGE (IN METRES)
5
4 4
4
No. of Dealers
1 1 1 1 1 1 1 1 1 1
1
0
10m 15 m 15m 20m 30-45m 30m 40 m 45m 48m 6-45m 65m 6m
3
3
No. of Dealers
2
2
1 1 1 1 1 1 1 1
1
0
100 LPM 20 LPM 40 LPM 42 LPM 47 LPM 5 LPM 50 LPM 57 LPM 63 LPM 9 LPM
66
Objective no 6 – to find the customer buying behavior
Questions:
Q.16 What are the attributes customer are looking for in a pump?
Q.17 Please rank the factors based on which customers choose a particular brand?
Q.18 In additional to pumps what are the add - ons customers are looking for?
Findings: -
For 34% of the customer’s Quality of the product comes first while 22% looks for the
Warranty period of the pumps followed by price and after sales service.
Brand image > Price > Quality > Dealer recommendation > ISI Mark (on the basis of
research)
*Brand turns a commodity into something much more valuable so, Brand Image is the most
important factor that differentiates two/three brands in the mind of the customer.
*Price and quality comes after brand image. Price and quality are interlinked with the brand
of the product and if customer is satisfied with the brand image than he is ready to pay
some extra for the desired product.
*Dealer also has a role to play when customer has to choose a brand, he can easily
guide/misguide a customer for the particular brand.
*Most of the products available in the market are of ISI mark but still there are few who are
not ISI marked and a customer always wants a ISI mark product.
Half of the customers wants auto start and auto cut with monoblock pumps but there are
few who didn’t ask for these, as it is already present there in most of the products.
67
Add Ons
36%
auto start & cut
60%
fitting
Nothing
4%
Attributes 5%
quality
22% 34%
after sales
price
20% 19%
warranty
DECISION MAKING
25
No. of responses
20
15
10
5
0
Attributes
68
CHAPTER-6
Interpretations
&
Suggestions
69
For Geysers
SWOT Analysis
Weakness Market Share is Future debt rating Tax structure High debt ratio
limited High working capitals High loan Investment in
Limited financing rates R& D
capacity for large Small
products business units
Threats Regional players in the Delay of projects Rising cost of Tax changes
Sanitaryware sector Lowering of import raw material Govt.
Might get dissolved as tariffs Price changes regulations
a brand into ROCA Increasing competi- Inc. in labor
tion from large com- costs
panies
70
Perceptual Map for Parryware Geyser
71
Price Positioning for PARRYWARE Geysers
Brands having MRP greater than of PARRYWARE **Only commonly sold Geysers are taken
Brands having less MRP than PARRYWARE **Racold & Jaquar have 1-1 digital product
**Detailed price list of some commonly products is attached below.
72
Price List of Commonly Sold Geysers
15 l. 25 l.
73
Suggestions for a New Player by Dealers
Geysers is a FMCD product so customer always want a product from a well-established
brand, that is why this market is tough for a new player until unless it doesn’t have any
brand attachment with it.
For PARRYWARE it would be easy to sell its geysers from its existing Sanitaryware
outlets (brand attachment) and it will take 2-3 years to sell the same geyser from an
electrical store.
Geyser is kind of product which a customer will expect to last at least for 7-8 years so it’s
very obvious from a customer point of view to expect a good after sales service with a good
warranty time period.
Greater trade margin and inorganic promotional activities for the dealers.
74
In a country like India where quality of water varies geographically it’s very important for
a product like geyser to do customization and make geysers as per the requirement.
All the above listed qualities with a competitive price product, although most of the cus-
tomers are not price sensitive but still price plays an important role while purchasing.
75
For Pumps
USP Creative and A pioneer & has top High sensitive to One of the top
innovative products leadership position customer needs. FMEG company
76
SWOT Analysis
Parryware Crompton greaves Kirloskar Havells
Strengths First & only Wide range of Reduced Existing distribu-
“super brand” & products labor costs tion & sales
“power brand” Major presence in High profit- network
plants across domestic power ability and Good acquisition
INDIA and market revenue history
continues to be a Wide installed cus- First FMEG comp
leader tomer base to offer door step
International Prompt after sales service
presence service Global presence
Experience business (50+ countries)
units
Weakness Market Share is Future debt rating Tax structure High debt ratio
limited High working Brand Competitive market
capitals portfolio Cost structure
Limited financing Cost Productivity
capacity for large structure
products Investment
in R & D
Oppor- Should leverage Total transmission Income level Globally emerging
tunities brand equity of capacity to be at a constant markets
Roca and increased increase Weak cycles of the
expand in int. High growth rate New acqui- sector
mkt. will stimulate sitions Vertical integration
Can enter into growth in demand online media into Havells retail
new market by for infra outlets
mergers to get a Income level at a Growing demand
worldwide pres- constant increase
ence.
Threats Regional players Delay of projects Cash flow Delays in execution
in the Lowering of import Financial of power projects
Sanitaryware tariffs capacity Highly regulated
sector Increasing Increasing electrical sector
Might get competition from rate of Environmental
dissolved as a large companies interest legislations on
brand into ROCA industrial wastes.
77
Product Life Cycle of Major Pump Brands
78
Price Positioning for Parryware Pumps
Brands having MRP greater than of PARRYWAR **Only commonly sold pumps are taken
Brands having less MRP than PARRYWARE **Crompton has 2 commonly sold pumps.
**Detailed price list of some common products is attached at the pg-82
79
Perceptual Map for PARRYWARE Pumps
80
Points of Differentiation & Suggestions
In a product like Motor Pumps quality matters a lot but price and quality go parallel to
each other so if you totally focus on quality than you have to increase the price (that
doesn’t work) and if you do on the other way by cutting of the prices if you have to
compromise with quality (that also won’t work). So, try to make a balance between the
two things.
For a new product launch Marketing is one of the most important factor that comes into
play and try to do a 360-degree marketing campaigns that would create awareness about
your product.
Dealers are the ones who are going to sell your product so make an excellent and a wide
dealer network through your marketing. Encourage your dealers to promote your product
by giving them a good margin.
Customers expects a good warranty period & after sales services from a brand so try to
fulfil these expectations.
Only a few are providing an onsite warranty and replacement warranty for their
products, it could be a one go through point for Parryware motor pumps by providing a
free onsite warranty and free installation of the product.
Although most of the customers are not aware of the technical details of the product but a
dealer is so, used best material for the winding of your product.
81
Points of Differentiation
5%
19%
12%
3%
11%
18%
9%
23%
82
Price List
0.5 HP 1 HP
83
Discharge Range (6m head)
0.5 HP 1 HP
Model Name Range (lph) Model Name Range (lph)
84
CHAPTER-7
Annexure
(Questionnaire)
85
Geyser
1. For how many years are you in this sector?
>1 yr. 1-5 yrs. 6-10 yrs. 10 + yrs.
2. Quality
Below avg. Avg. fair Good Very good
4. Brand advertisement
Never Hardly ever Sometimes Very often Every time
6. Does a customer compare a brand, if yes than please rank the following attributes that he
considers?
1. Design (shape & size) 1……………………………...
2. Features 2………………………………
3. Safety protection 3………………………………
4. Price factor 4……………………………….
5. Brand image 5……………………………...
6. Dealers recommendation 6……………………………….
7……………………………….
7. Technology
8. Do you get long term incentives from the company (turnover discount), if yes how much?
86
9. What is the credit policy of the company and your satisfaction level with that?
Highly satisfied Satisfied Moderately satisfied Dissatisfied
10. **Rank the brands in order of dealer’s margin facilities? (for a multi dealer outlet only)
o Havells
1……………………………...
o AO Smith 2………………………………
o Racold 3………………………………
o Bajaj 4……………………………….
o Venus 5……………………………...
Color
White Orange / red Grey ( l or d) Black Blue Other
14. What type of complaints are generally received about geysers you deal in?
15. Which set of the customers is preferring 2 -3 stars and 4-5 stars’ geysers?
Hotels Builders Hospitals Household
use
17. Is there any change in sales (increased or decreased) in recent times, if yes what is the rea-
son?
o Competition has increased
o Usage has change/ consumer behavior
o Price and quality degrade/upgrade
o Market is growing rapidly
18. What are the chances for a new player in the geyser market?
o Fairly good
o No chance competition is too high
o Could be a market leader with some innovation
87
Monoblock Pumps
4. **Which is the most sold brand from your store? (multi-brand retailer)
Crompton Flora Kirloskar Mahindra
Oswal Falcon V-Guard Any other
88
10. What is the trade margin for you in pumps?
11. What are the credit policy of the company and what is your satisfactory level for that?
Highly satisfied Satisfied Moderately satisfied Dissatisfied
13. What is the average size of inlet/suction pipe of these pumps? (meters)
15 20 30 30+ Others
14. What is the avg. discharge range for the pumps customers are looking for? (LITERS/
MINUTES)
15 Lpm 20 Lpm 40 Lpm 54 Lpm Others
16. What type of water flow through these pumps customers are looking for?
Minimum Nominal Maximum Other (specify)
18. Is there any particular season/time in which customers are buying monoblock pumps?
Festival New years Winters Summers Anytime
19. Out of 100 customers how many will go for the lower price range?
5-10 10-20 20-35 35-50 50+
21. In additional to pumps what are the add ons customers are looking for?
Auto cut Auto start Ampere meter Voltage stab. Expander
22. What should be the POD (points of difference), if a new player wants to enter into the mar-
ket?
89
CHAPTER- 8
Glossary
&
Bibliography
90
Glossary
Advertising Any paid form of non personal presentation and promotion of ideas, goods, or
servicesby an identified sponsir
Brand A name, term, sign, symbol, or design, or a combination of them, intended to identify the
goods or servicesof one seller or group of sellers and to differntiate them from those of
competitors,
Brand awareness all the thoughts, feelings, images, experience, beliefs, and so on that become
associated with the brand.
Brand image The perceptions and belief held by consemers, as reflected in the association held in
consumer memory.
Branding Endowing the products and services with the power of brand.
Competitive adventage A company’s ability to perform in one or more ways that competitors can
not match.
Core Values the belief systems that underlie consumer attitudes and behavior, and that determine
peoples’ choice and desire over a long term.
Core competency attribute that is a source of competitive advantage in that it makes a significant
contribution to perceived customer benefits, has applications in a wide variety of markets, is
difficult for competitors to imitate.
Customer perceived value The difference between the prospective customers’ evaluation of all
benefits and all the cost of an offering and perceived alternatives.
91
Delivery how well the products or services are deliverd to customer
Dealer who carries on business in purchasing, selling, supplying or distributing goods and also
includes works contractor, company, Co-operative Society, Broker, Commission Agent,
Auctioneer or any other mercantile Agent for the consideration of cash, commission and deferred
payment.
e-marketing company efforts to inform buyers, communicate, promote, and sell its products and
services over the internet
Image the set of beliefs, ideas, and impressions a person holds regarding an object.
Marketing communication mix advertising, sales promotion, events & experience, public
relation & publicity, direct marketing, and personal selling
Marketing research the systematic design, collection, analysis, reporting of data & findings
relevant to a specific markeitng situation facing to the company.
Media Selection finding the most collective media to deliver the desired no. and type of exposure
to the target audience.
92
Perceived value the value promisecby the company’s value proposition and perceived by
customer
Perception the process by which an individual selects, organizes, and intercepts information
inputs to create a meaningful picture of the world
Product assortment the set of all products and items, a seller offers for sell.
Retailer buys goods or products in large quantities from manufacturers or importers, either
directly or through a wholesaler, and then sells individual items or small quantities to the general
public or end user customers, usually in a shop, also called store. Retailers are at the end of the
supply chain.
Sales Promotion consists of a diverse collection of incentive tools mostly shot-term activity
designed to stimulated quicker and/or greater purchase of particular product/services by consumers
or the trade.
93
Target market the part of qualified available market the company decides to pursue.
Value delivery network a company’s supply chain and how it partners with specific suppliers and
distributors to make products and bring them to market.
Value pricing winnig loyal customer by charging an offordable price for a high quality product.
Viral marketing using the internet to create word of mouth effects to support marketing efforts
and goal.
Wholesalerwholesaler buys goods in large quantities from their manufacturers or importers, and
then sells smaller quantities to retailers, who in turn sell to the general public.
94
Bibliography
1. Opportunity in the Water Heaters Market in India – 2015
http://www.researchandmarkets.com/reports/2637177/opportunity_in_the_water_heatersmarket_in
_india ; http://themoneyroller.com/2015/09/21/sanitaryware-sector-report/
crores-assocham/4389
smith-believes-its-best-to-be-in-hot-water/article4119474.ece
market-set-to-cross-usd330-million-in-2015-reports-techsci-research-296726011.html
water-heaters-geysers-brand-in-india-by-standing-loss-and-size.html
market-set-to-cross-usd330-million-in-2015.html
http://www.researchandmarkets.com/reports/2703133/india_sanitary_ware_market_forecast_andhtt
p://www.slideshare.net/vikram_dahiya/sanitaryware-industry
trends-demand-for-high-end-premium-sanitaryware-products-booming-in-india
http://www.swotanalysis24.com/swot-b/11730-swot-analysis-bajaj-steel-industries-ltd.html ;
https://www.mindtools.com/pages/article/newTMC_05.htmhttp://www.swotanalysis24.com/swot-
a/485-swot-analysis-a-o-smith.html
95