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HERZ Report by Ritika
HERZ Report by Ritika
Submitted By-
Ritika
Jaipuria Institute of Management,
Noida,India
Acknowledgement
In preparation of my report, I would like to show my gratitude to Herz
Austria to give me this chance to understand the sanitaryware market
and to be able to learn about Market Research. My special thanks to
Prof. Joy Patra, in Jaipuria Institute of Management for giving me good
guidelines for this report. I would also like to thank to MR. Imtiaz Ali
for his guidance throughout the project I would also like to expand my
gratitude to all those who have directly and indirectly guided me in
writing this assignment.
Date- RITIKA
1ST MARCH 2020
CONTENT
1) Introduction About Herz………… 5
2) History of Herz………………5
3) Products of Herz………….6
4) Competitors share………….7
5) Jaquar………………………9-15
Introduction
USP, STP
Product and prices
Strength and weakness
Supply Chain
Current news
6) Cera………………………….15-18
Introduction
USP, STP
Product and price Range
Strength and weakness
Supply chain
7) Parryware ………….19
8) Grohe India…………….19
9) Ways to Enter India Market……..20
10) Suggestions………….. 21-22
11) Conclusion……..22
12) References……23
Executive Summary
This report contains the all the information about the Herz product, About the Herz
company, how they started their business. Who are the major players in the market and their
market share. All the Important information about the competitors of the Herz their
products, Prices, Supply chain is also in this report which helps us to know how Herz can
enter into the Indian market, how they can target the customers and what they should
communicate to the customers, ways of entering into the Indian Market. The factors they
need into consider before entering into the market. And also includes the references which
are helpful in making this report and the pictures of the stores where I visit.
History of Herz
Originally named Gebauer and Lehrner, the Herz business was founded in 1896 - producing flow valves for
water and gas supply in Vienna. By 1914, the business had a portfolio of several thousand products and
employed over 300 staff. After many years of successful trading, and with huge growth in worldwide sales,
the 1970s saw the company renamed as HERZ (Austrian for the heart) - reflecting the business’ ethos of
passion for quality. The HERZ group are presented in 75 countries worldwide with the support of new
investments, technologies, and know-how, the company has grown and developed since 1933. To meet the
ever-increasing demands of present and new markets and meet the taste of their customers, the level of
quality of the sanitary mixers is always being extended and approaches the leading companies of the branch.
Herz at Present-
At present, with approximately 3.000 employees in 27 production facilities worldwide, HERZ- Armaturen
Ges.m.b.H. is one of the leading European manufacturers of valves, fittings, circuit regulating valves,
dynamic control fittings and thermostatic valves for domestic installations for heating, air conditioning,
sanitary and gas appliances.
Herz represents a prudent use of resources and energy, environmentally friendly methods of production and
care for the environment, part of social responsibility and awareness.
INFINITY
Infinity i10, i12(They both are the top lever basin mixer and i10 and i12 mixers are fitted with eco-
aerators that restrict the flow of water to 6 l/min).
Infinity i30 (bath or shower mixer), Infinity i40(shower mixer i30 and i40 mixers are fitted with eco-
aerators that restrict the flow of water to 9l/minute).
FRESH
Fresh f10, f11, f12 (These are the top lever basin mixer which is slightly different in Design)
Fresh f30 and f40(These are the Bath and shower mixer)
Fresh Thermostatic t30 and t40 (FRESH thermostatic is the elegant lines of both f30 and f40
thermostatic mixers are complemented by the ease of operation, and the exceptional control of water
temperature. The valve bodies do always not heat up under operation – ensuring against any
potential scalding by touch- as well as maintaining water temperature to your selected level).
ELITE
e10 and e12 (All basin mixers include eco aerator that enables the water flow of 6 l/min)
e30 and e40 (Bath and shower mixer)
SQ
PRESTIGE
p10 and p11 (top lever basin mixer p10 and p11 mixers are fitted with a ceramic cartridge that
enables the mechanical limitation or setting of water temperature, two-level opening, on the other
hand, helps to limit your water consumption).
p39 and p40 (Bath and shower mixer)
SIMPATY
s10, s32, and s39 (top lever basin mixer and bath and shower mixer)
The company deals with different basins and shower mixer and they keep on innovating different style and
different designs and lots of products are available in the market as per the choice of the customer. All Herz
mixers have been designed to accommodate Eco Flow Restrictors. Easy to fit and save on water usage. The
R&D of Herz is very well working on the edge of everything.
A market can be defined as an economic concept that shows the connections established between a product
or service and specific consumers. Every product and service have a market in which it competes with
similar products and services. Consumers are won over through promises of good quality, fair prices,
accessibility, great client service, etc. The driving engines of every market are the concepts of supply and
demand.
Industry implies a collection of firms that are more or less identical to one another, with respect to the
business operations conducted by them, i.e. firms engaged in manufacturing a particular type of product or
rendering specific services are altogether called as an industry. The number of firms operating in an industry
may differ, on the basis of its structure. Herz belong to the taps and mixtures industry also there are many
competitors of the company within the same industry. An industry is an economic concept used to regulate
the general production and sale of a category of goods
The Herz company comes under Sanitary industry and the market is the place through which they sell their
product to the customer or the distributor and else.
Competitor Analysis
MARKET SNAPSHOT
The global sanitaryware market was valued at 9,194 million dollars in 2017 and is projected to reach 13,616 million
dollars by 2025, registering a CAGR of 5.0% from 2018 to 2025.
It is expected that 500mn people or 38% of the total population will live in cities and towns in 2021 which are major
markets for sanitaryware manufacturers. Moreover, the share of larger cities is increasing faster, underscoring rising
demand for higher quality ceramic-ware and faucets.
The retail outlets we visit near our area-
USP of Jaquar-
Technically Advance products
SEGMENTATION- Rural/urban areas, Tier I/II/III cities, general/Premium Customers, Public/private
contractors’ /builders
Targeting- General and premium Customers living in Tier I and Tier II cities or builders having projects in
urban areas
Positioning- Providing customers with best bathing experience
Product and Prices of the Jaquar
Company is targeting its customers through its different brands as company is dealing in four brands for
targeting the different customers. The four Brands of the company are the following
1.Artize (for luxury category)
2.Jaquar (Premium Category)
3.Essco (Value category)
4. Jaquar lightning
The Jaquar Group caters to luxury, premium and value bathroom segments with these four brands
respectively, for residential and commercial sectors across the globe.
In these brands there are different types of products of the sanitary with the different models and the prices.
Artize- This brand is mainly targeting the luxury class people; they are providing the luxury bathrooms
showers and faucets. The company has also won the various awards for its excellent performance.
There are different Products names under this like kavalier, Angelo, Leone, Signac. All the Models having
the different price Ranges. The price range of the most trending product are the following -
SIGNAC (QUARTER TURN)
The price range is from 1000 to 8000. This type is mostly in wall flanges. There are many types of bath &
shower pipes, connecting legs &wall flange, Wall Mixer with Provision of Hand Shower, Wall Mixer with
Provision of Overhead Shower. The various categories that are covered are basin mixers with & without
Pop-Up Waste
Here is another Type of Taps called “Jaquar Quarter Turn Taps” It had many varieties by its name itself,
Bib Cock, 2way Bib Cock Angular Stop Cock, Stop Cock with Flush Cock. The price range is from 500
INR to 1,900 INR depends on the width and height of the taps.
Jaquar Quarter Turn Bath & Shower Taps
Jaquar has unique varieties of quarter turn bath & shower taps which suits all kind of bathrooms which
makes the entire days as a memorable one. Price range varies from 2,450 INR to 12,500 INR.
Full turn basin mixer from jaquar has 4 types namely central hole basin mixer, pillar cock, pillar cock long
neck and swan neck tap with left hand knob. Price range starts from 775 INR to 3,325 INR.
Jaquar full turn kitchen taps are available in wall mounted model and table mounted models. Sink cock with
swinging spout adds extra attraction to the sinks. Price range starts from 1,325 INR to 3,100 INR.
Kitchens get a wonderful look with this elite product from jaquar called “jaquar quarter turn kitchen mixer
tap”. This product comes in two models namely Wall Mounted Model and Table Mounted Model. Price
range starts from 1175 INR to 3950 INR.
Some of the Products Examples of this brand with their price are-
ARC –
Single lever basin mixer without Popup – Rs. 7260
Quarter turn basin without pop or with pop both are available -Rs 8650/9360
Kubix Prime
Single lever Basin (without popup)- Rs.6,400
Bath and Shower
Single lever wall mixer with provision for connection to exposed shower pipe with connecting legs and wall
flanges Rs.7,100
Single lever wall mixer with provision of Hand shower -Rs. 7,350
Single lever wall mixer 3-in-1 System with provision for both hand shower and overhead shower – Rs.
8,260
Quarter Turn
Basin
Pillar cock- Rs.1850
S-hole basin mixer without popup waste system – Rs. 6,700
Opal prime
Single lever
Basin mixer without popup- Rs.3400
With popup- Rs.4,100
Bath and shower are around 6,000
Kitchen single lever sink mixer with swinging spout – Rs.3,660
Quarter Turn
Basin pillar cock – Rs.1,660
Pillar cock with extension body- Rs.2,000
Taps
Bilb cook with wall flange – Rs.- 1350
2-bilb cook with wall flange – Rs.1,760
Essco
For over five decades now, Essco (the bath fitting brand) has been supporting affordable and sustainable
housing in India. Jaquar Group hopes to add to India’s growth story by providing affordable and high-
quality sanitaryware products through the value brand Essco and making it readily available across metros
and Tier 2 & 3 cities.
Strength of Jaquar
It operates in various bath verticals like sanitaryware, shower enclosure, water heaters, concealed cisterns,
wellness range of products like whirlpool, shower panels, showers, steam cabin and spa.
2. The company has decades of operational experience.
3. World class brands, products and ranges for residential and commercial purpose
4. It has a significant market share in bath fittings industry
5. It employees trained technicians producing 45,000 faucets a day.
7. Its presence over 5 continents makes it a true global player
8. Strong advertising and marketing activities through online media
9.Go Green is a philosophy embraced by Jaquar as a tenet of its design and production system to save water.
10.The brand is the first to offer after sales service to the customers which was unheard of for bath
fittings category. Jaquar was also promoted through a multifaceted promotion strategy involving all
channel members
Weakness
Jaquar products are high pricing as compare to its competitors
Being a market leader, always under the scanner and public eye for any activity
Supply chain
From the manufacturing units of Jaquar, the stock goes to clearing & forwarding department. After the
approval, the stock further goes to the distributors.
From the distributors it goes to the area dealers and then the local dealers. Most of these works directly from
warehouse to dealer. But dealers can supply to sub dealers in which all the sales are taken care by some
brand executives.
Current News
Recently Jaquar Group has expanded its manufacturing plant in Bhiwadi, Rajasthan, on the eve of its 60th
anniversary making it the world's largest faucet manufacturing plant in a single unit. The plant has
a production capacity of manufacturing 1,25,000 faucets in a single day.
CERA SANITARYWARE
Cera Sanitaryware Ltd a Gujarat based company was incorporated in the year July 17th 1998. The company
is headed by its Chairman Vikram Somany. The company's main product lines are sanitaryware, faucets
ware and bathware.
Unique Selling Point: Innovative and Stylish products
STP Analysis
o Segmentation: Rural/Urban Areas, Tier I/II/III Cities, General/Premium Customers,
Public/private Contractors/Builders
o Targeting: General and Premium customers living in Tier I and Tier II cities or builders having projects
in Urban areas
o Positioning: Style, Innovation, Leadership
2. The brand has very limited international existence compared to leading global players
CERA offers wide variety in design and functionality to choose from in Faucets. Our portfolio is the most
complete, ranging from beautiful single lever, quarter turn; half turn to technologically advanced products
for commercial purpose sensor and push taps.
Price: The price range of the faucets of Cera starts from Rs.700 and reaches up to Rs.15000.
Types of faucets:
Basiaclly, pearla, valentina and ruby are mainly for the premium customers. Victor and titanium are for
the middle ones and ocean for the government supplies.
Being responsible for procuring the stock of all the products of the different departments, it is the most
important department of Cera Sanitary ware.
From the manufacturing units of Cera, the stock goes to clearing & forwarding department. After the
approval, the stock further goes to the distributors.
From the distributors it goes to the area dealers and then the local dealers. Most of these work directly from
warehouse to dealer. But dealers can supply to sub dealers in which all the sales are taken care by some
brand executives.
Channel Members
Increasing reach through distribution Over the years, CRS has managed to gain significant presence in
states like Kerala, Gujarat, Maharashtra (excluding Mumbai), Punjab, and Orissa in particular backed by
strong distribution reach and mind recall. But in the last three-to-four years, it has been making significant
in-roads into south India which is the fastest growing market for sanitary ware products in India.
At present, the company has a wide-spread distribution network encompassing 1,500 dealers and
15,000 retailers. To supplement the distribution network, CRS has 20 major stock points pan-India.
It also has 19 zonal offices, 10 Cera Style Studios, and over 100 Cera Style Galleries across the
country.
South Zone
North Zone
Leader: Kerala
Leader:Punjab Emerging: Andhra
Emerging: Haryana Pradesh and Karnataka
Weak but improving: Weak but improving:
Delhi Weak: Other Tamil Nadu
Northern States Weak: NIL
CRS is currently focusing on key growth markets like Tamil Nadu, Andhra Pradesh, Karnataka,
Maharashtra (ex-Mumbai) by increasing its brand visibility and distribution reach. Besides these
markets, we believe there is immense scope for CRS to penetrate further, particularly in East &
North East India where the penetration levels are lower.
The journey started in 1952 when Parryware started under EID parry in Ranipet. The company joined hands
with royal Doulton in 1960 and inaugurated new casting unit in 1976. Change came knocking in 1980 when
Muruguppa 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 manufactures to a
brand that stood for glamorous bathrooms. Roca groups took over Parryware in 2006 and the growth story
continuous with Increased production prowess (8 plants) and deeper penetration into the Indian market.
Strengths:
1) Parryware was the first and only sanware manufacturer that was conferred initially as “Super brand” and
“Power brand”.
2) It has 5 manufacturing units across India and continuous to be a leader in its own segment.
3) Its path breaking concepts like dual flush and anti- microbial surfaces established parry ware as the
foremost and most respected sanitaryware brand in the country.
4) It operates in overseas markets of south Africa, Srilanka, the middle east and a host of other countries.
WEAKNESSES:
Parryware is a subsidiary of Roca which is not many people know. So, there is a lack of
communication. About the same.
It should do more advertising activities as its market share is limited.
GROHE India
The intuitive digital technology GROHE Digital® with its user icons allows, the user to create a personal
water experience with the help of a fingertip.
It enables one to easily pre-program the preferred combination of water temperature, flow rate and duration.
Simple, convenient, and discreet, the technology embraces the latest wireless technology to bring digital
showering to a wider audience.
GROHE has developed faucets and fixtures that combine economic, ecological, and safe use of water with
excellent designs. It is the use of our superior technology that has been one of the cornerstones of our
success in India.
In 2014, GROHE became part of the LIXIL Group Corporation, a publicly listed company on the Tokyo
Stock Exchange. LIXIL is the global market leader in the sanitary ware industry and also Japan’s leading
provider of housing and building materials.
Grohe found an easy way to include its suppliers in the planning process with the help of an innovative
procurement software solution. The suppliers can see upcoming production projects well in advance using a
forecasting system and can plan their deliveries around the projects so that everything arrives in time. Grohe
India Private Limited's operating revenues range is INR 100 crore - 500 crore for the financial year ending
on 31 March, 2018.
The easiest way to serve the Indian market is direct export of manufactured
products from abroad (direct distribution). However, this assumes that you already
know (potential) customers in India; that you have all the import registrations you
need; and you can settle commercial invoices in a foreign currency instead of in
Indian Rupees.
Partnership
There are many different company’s which can help to find the right
distribution partners for you with a thorough check on the selected partners search,
but you need to keep a direct eye on your investment
your long-term India commitment. Being close to the Indian market means that you
will also be better informed about the latest market trends and new opportunities
for sales in India, and you can adapt your India market-entry strategy
We must take below- mentioned points in consideration while selecting top brands which are already
present in the Indian market and will be a contender to HERZ.
• Variety of designs to satisfy your customer
. • One-stop solutions for bathrooms and taps/mixtures.
• Price should be profitable yet competitive and good quality offered, easy to maintain.
• Providing required accessories, diagrams and fixtures. • Excellent customer after sales support.
Conclusion
There is various competition in the Taps and mixture market. On analyzing we can see that there are so
many competitors who are providing the innovative designs and various kinds of ranges of the product. But
by communicating the right information and by providing the innovative and according to the customer
preference and the quality there is an opportunity for the Herz to enter into the market. The real estate
sector in India is undergoing a phase of revival after witnessing a slump in recent years. This revival is
catalyzed by improved buyer sentiment, restricted new launches, improving sales, declining unsold units
and consolidation in the Indian real estate sector. Moreover, macro factors such as increasing urbanisation,
nuclear family concept, low per capita consumption, rising disposable incomes, and the government's push
for housing for all, smart cities and improvement of sanitation are further expected to drive this market.
Therefore, this is a great opportunity for Herz to enter Indian market.
References
https://jaquar.com/en/
http://www.parryware.in/our-company
https://www.cera-india.com/
https://www.deccanherald.com/business/budget-2020/affordable-housing-sector-need-more-support-jaquar-
800808.html
https://www.bccourier.com/faucet-market-2020-future-growth-jaquar-agmeco-faucets-roca-hindware-hansgrohe-
cera-sanitaryware/
https://www.mobihealthnews.com/news/europe/cera-launches-smartcare-technology-nationwide-following-70-
million-financing-boost
http://www.herz-taps.com/
https://www.nirmalbang.com/Upload/Cera%20Sanitaryware%20-%20Initiating%20Coverage-28%20September
%202018.pdf
https://www.hindwarehomes.com/
https://www.alliedmarketresearch.com/sanitary-ware-market
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