A PROJECT REPORT

ON

“STUDY OF SALES AND DISTRIBUTION OF HIGH

QUALITY (HIGH-TECH) HAND TOOLS, WITH A FOCUS ON
B2B MARKET OF STANLEY HAND TOOLS”

UNDER THE GUIDANCE OF

PROF. DINESH KUMAR

SUBMITTED TO

STANLEY WORKS INDIA Pvt. Ltd.

SUBMITTED BY

ATIV VASUDEV

ROLL NO. 09DM 129

PGDM (2009 -2011)

BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

 Page |2

Summer Project Certificate

This is to certify that Mr. VASUDEV ATIV MANOJ Roll No. 09DM129 a student of

PGDM has worked on a summer project titled STUDY OF SALES AND DISTRIBUTION

OF HIGH QUALITY (HIGH-TECH) HAND TOOLS, WITH A FOCUS ON B2B

MARKET OF STANLEY HAND TOOLS at STANLEY WORKS INDIA Pvt. Ltd. after

Trimester-III in partial fulfillment of the requirement for the Post Graduate Diploma in

Management programme. This is his/her original work to the best of my knowledge.

Date: ___________ Signature ________________

(_________________________)

Name of Faculty

BIMTECH SEAL
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ACKNOWLEDGEMENT

A project, research and a report can never be an outcome of a single person’s endeavors. It is
always a collective work of people of many people who, either directly or indirectly, inspire
or influence the researcher to carry out the task at hand.

My period of internship with Stanley Works provided with one of the best learning
experience and a change to have an insight into the industries of Jammu region.I would like
to thank several people here.

To begin with I would thank Mr. Kuldeep S. Bhardawaj, General Manager, Stanley
Works India Pvt. Ltd. as he found me credible enough to work for Stanley Works India (P)
Ltd.

Then I would thank Mr. Nitin Verma, Asst. Regional Manager – North and East, Stanley
Works India Pvt. Ltd. for being my Mentor during my period of internship.

I would thank my local mentors Mr. Ramandeep Singh and Mr. Mukesh Singh for
providing a continuous support. In fact without the support of the two of them, it would have
never been possible to successfully perform my duties during my during the period of
internship.

My sincere thanks to my college mentor, Prof. Dinesh Kumar for being my pillar of
strength. It is only his guidance that inspired me to face all the challenges with full zeal.

A special thanks to Prof. Amarnath Bose for guiding me in carrying out the data analysis
and summarizing my results.

VASUDEV ATIV MANOJ

ROLL NO: 09DM 129
PGDM (2009-2011)
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY
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Table of Contents

List of Figures.......................................................................................................................................6
EXECUTIVE SUMMARY...................................................................................................................8
Primary Objectives:...........................................................................................................................8
Secondary Objectives:.......................................................................................................................8
Approach to the Problem:..................................................................................................................9
Research Design:.............................................................................................................................10
Major Findings:...............................................................................................................................10
Conclusion and recommendations:..................................................................................................11
I. INTRODUCTION TO HAND TOOLS AND HAND TOOL INDUSTRY.................................12
Hand Tools:.....................................................................................................................................12
Classification of Hand Tools...........................................................................................................13
Global Hand Tool Industry..............................................................................................................15
II. INTRODUCTION TO STANLEY WORKS...............................................................................17
A Brief Overview and History:........................................................................................................17
Merger and Acquisitions:................................................................................................................17
Awards and Recognitions................................................................................................................18
Brand Portfolio................................................................................................................................18
Product Platforms............................................................................................................................18
Stanley Product Line.......................................................................................................................19
Stanley Works in India....................................................................................................................21
Stanley’s Valued customers.............................................................................................................22
Stanley Competitors........................................................................................................................22
Key Technologies............................................................................................................................22
III. PROBLEM DEFINITION.......................................................................................................25
Background to the problem..............................................................................................................25
Primary Objectives:.........................................................................................................................26
Secondary Objectives:.....................................................................................................................26
IV. APPROACH TO THE PROBLEM.........................................................................................27
(Overview of the work done in the period of internship).....................................................................27
The internship period was divided as following:.............................................................................27
The Job Description specified to me by HR was as follows:...........................................................27
Main Responsibilities......................................................................................................................27
Visits to the Companies...................................................................................................................28
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Daily Sales Report and Business Potential Review.........................................................................29

V. RESEARCH DESIGN.................................................................................................................30
Literature Review:...........................................................................................................................30
Type of research design:..................................................................................................................30
Information needs:...........................................................................................................................30
Data collected from secondary sources:...........................................................................................30
Data collected from primary sources:..............................................................................................31
Scaling Techniques:.........................................................................................................................31
Questionnaire Development and pretesting.....................................................................................31
Sampling Techniques:.....................................................................................................................31
Field work:......................................................................................................................................31
DATA ANALYSIS.............................................................................................................................32
VI. RESULTS AND INTERPRETATION....................................................................................33
SPSS Output Analysis 1: Factor Analysis.......................................................................................35
Sample Size Requirement.............................................................................................................35
Presence of substantial correlations:...........................................................................................36
Sampling adequacy of individual variables:................................................................................37
Sampling Adequency for Set of Variables:...................................................................................38
Scree Plot....................................................................................................................................38
Latent root criterion:...................................................................................................................39
Evaluating Communalities:.........................................................................................................40
Identifying complex structure:.....................................................................................................41
Interpreting the principal component:.........................................................................................42
SPSS Output Analysis 2: Reliability Analysis.................................................................................44
Cronbach Alpha for Quality_Component....................................................................................44
Cronbach Alpha for Sophistication_Component..........................................................................45
Cronbach Alpha for Availability_Component..............................................................................46
VII. LIMITATIONS AND CAVEATS...........................................................................................48
VIII. KEY LEARNINGS & VALUE ADDITIONS FROM SUMMER INTERNSHIP...................49
IX. CONCLUSIONS AND RECOMMENDATIONS...................................................................51
X. BIBLIOGRAPHY.......................................................................................................................52
APPENDIX A.....................................................................................................................................53
APPENDIX B......................................................................................................................................55
APPENDIX C......................................................................................................................................58
APPENDIX D.....................................................................................................................................60
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List of Figures

Figure 1.1 Screwdriver……………….………………………………………………………13

Figure 1.2 Hammer…………………………………………………………………………..13

Figure 1.3 Chisel……………………………………………………………………………..13

Figure 1.4 Saw………………………………………………………………………………..13

Figure 1.5 Plane File………………………………………………………………………....13

Figure 1.6 Power Drill………………………………………………………………………..13

Figure 1.7 Tape Rule…………………………………………………………………………13

Figure 1.8 Wrench……………………………………………………………………………14

Figure 1.9 Pliers……………………………………………………………………………...14

Figure 1.10 C – Clamp ………………………………………………………………………14

Figure 2.1 Global Presence of Stanley Works……………………………………………….17

Figure 2.2 Stanley in Major Cities and Industrial Towns…………………………………....21

Figure 2.3 Customers of Stanley Works……………………………………………………..22

Figure 2.4 Maxi-Drive Technology in Sockets………………………………………………23

Figure 2.5 DynaGrip used in Screwdrivers…………………………………………………..23

Figure 2.6 Stanley Spanners vs. Others………………………………………………………24

Figure 2.7 VDE Pliers………………………………………………………………………..24

Figure 6.1 Sector Wise breakup……………………………………………………………...33

Figure 6.2 Awareness about Stanley Hand Tools……………………………………………33

Figure 6.3 Brand Used……………………………………………………………………….34

Figure 6.4 Scree plot of the Data……………………………………………………………..38

Figure 8.1 Procurement Process……………………………………………………………...50

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List of Tables

Table 1.1 Chinese Market Snapshot………………………………………………………….15

Table 1.2 European Market Snapshot………………………………………………………..15
Table 1.3 Indian Market Snapshot…………………………………………………………...16
Table 6.1 Descriptive Statistics ……………………………………………………………...35
Table 6.2 Correlation Matrix…………………………………………………………………36
Table 6.3 Anti – image Matrices……………………………………..………………………37
Table 6.4 KMO and Bartlett’s Test……………………………………..……………………38
Table 6.5 Total Variance Explained………………………………………………………….39
Table 6.6 Communalities…………………………………………………………………….40
Table 6.7 Rotated Component Matrix………….…………………………………………….41
Table 6.8 Rotated Component Matrix 1……….…………………………………………….42
Table 6.9 Reliability Statistics 1……………………………………………………………..44
Table 6.10 Item Statistics 1…………………………………………………………………..44
Table 6.11 Item- Total Statistics 1…………………………………………………………...44
Table 6.12 Scale Statistics 1………………………………………………………………….44
Table 6.13 Reliability Statistics 2……………………………………………………………45
Table 6.14 Item Statistics 2…………………………………………………………………..45
Table 6.15 Item – Total Statistics 2…………………………………………………………..45

Table 6.16 Scale Statistics……………………………………………………………………45

Table 6.17 Reliability Statistics 3……………………………………………………………46

Table 6.18 Item Statistics 3…………………………………………………………………..46

Table 6.19 Item – Total Statistics 3…………………………………………………………..46

Table 6.20 Scale Statistics……………………………………………………………………46

Table 6.21 Reliability Statistics 4……………………………………………………………47

Table 6.22 Item Statistics 4…………………………………………………………………..47

Table 6.23 Item – Total Statistics 4………………………………………………………….47

Table 6.24 Scale Statistics 4………………………………………………………………….47

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EXECUTIVE SUMMARY

Stanley Works wanted to improve its presence in the region of Jammu. A few key factors
(dimensions) are considered by any end customer before making a choice regarding purchase
of Hand tools. It is necessary for Stanley, to position its tools appropriately against the
competitors’ brands, to be successful in the Indian Market. However, even before this is
done, it becomes critical to be able to extract those key factors, which are consciously or
subconsciously, considered as important for purchase.

In our present study, we try to analyze and extract these factors by the help of a survey.
Responses are taken from the end customers (industry users). Then factor analysis is
performed on these responses using SPSS to yield the factors.

Though we restrict our study to only finding the factors, Stanley Works can carry out a
further survey where customer feedback is used to plot the position of Stanley against
competitors on those dimensions. It would give a clear picture of where does Stanley Tools
stand as against the tools already used and help Stanley strengthen its position in the Indian
markets.

In the process of identifying the factors another key objective is achieved, which is to find out
the key industries where Stanley should try to sell its products. The sales generated in the
period of internship helps in assessment of the potential in the market of Jammu region as
well as narrow down on the prime companies.

Primary Objectives:

Extraction of the Key Dimensions (Factors) taken into consideration for purchase of Hand
Tools in the market of Jammu region.

Secondary Objectives:

1. Analysis of the expectations of the end user from Stanley tools as well as Hand Tools in
general.
2. Identification of the New Industries and Key users that hold high potential for purchase of
Stanley Tools.
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Approach to the Problem:

I was given a list of 10 companies by Stanley Works. These included:

Cadilla Pharma, Berger Paints, Vodafone Essar, Nilkamal, Singer Sewing Machines, Surya
Pharma, KC Vehicleades, Reckitt Benckiser, Sudhir Gensets and Airtel.

To expand the list I started collecting data regarding industries of Jammu as soon as I reached
Jammu.
Various industrial areas have been developed in and around Jammu by the State Government.
J&K SIDCO (Jammu & Kashmir State Industrial Development Corporation) is the nodal
agency for promotion & development of medium and large scale Industries in the state.
I focused on 4 main areas:

 Sambha Industrial Area; Phase 1 and 2

 Bari Brahmana Industrial Area; Phase 1 and 2
 Gangyal Industrial Area
 Companies in Jammu city

I visited these areas and with the help of JK SIDCO website, I tried to expand my list of
companies. Though the list kept updating, the precise list included the following companies:

Surya Pharma, Reckitt Benckiser, Indswift Labs Ltd, Berger, Indswift Ltd, Cadilla,
Nilkamal, UK Paint, Bharat Box 2, Kamdhenu Cement, Lupin, Sun Pharma, Eurobond, Lark
Non Ferrous, Intex, Kashmir Steel, Ultimate Flexipack, Sudhir Gensets, Jai Beverages,
Aircel, Vodafone, Idea, Coca Cola, Crest Hyundai, Yamaha, Shaurya Motors, Highland
Automobile, Skoda Motors, Caterpillar, Fiat Motors, Jamkash Vehicleades, Honda 2
Wheelers, Ford Motors, Bajaj Auto, Shree Toyota.

Visits to the Companies

I started visiting the companies in focus from the second day I reached here. The purpose of
visits during the initial days was to introduce Stanley Hand Tools to the companies, and take
feedback from the companies already using our tools. This period also gave me an insight
into the minds of the company personnel which helped me work on the list of variables I
chose to analyze in my study, and also prepare the questionnaire.
Prepared the questionnaire and on my subsequent visits I tried to get responses from the
company personnel as well as initiate sales.

The tools being slightly costlier than the ones already being used, companies were not ready
to place an order instantly. However many companies asked me to provide quotation for the
tools they required.
A few companies also asked me to give them a demo of the tools. So, I would often carry
the tool kits along with me so that I could give them a demonstration of the quality of our
tools.
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Daily Sales Report and Business Potential Review

I had to provide a report of my daily work via Daily Sales Report. The format is there in
Appendix 4
At the end of internship, I submitted the respective BPR for each company visited. The
format of BPR is specified in Appendix 3

The data collected was then analyzed via SPSS. Details about the same have been specified
further in the report.

Research Design:

The research that has been conducted is Problem Identification Research. Since it is an
exploratory research and that no earlier data is available, we cannot frame a hypothesis. In
this research I will identify the key factors. If Stanley Works plans to carry out any further
studies, it can use the factors extracted in this report for a further Descriptive Study.
A questionnaire comprising of 12 questions was prepared and was used to get responses from
the 35 companies visited in the period of internship. The data was first collated in MS Excel
and later processed via SPSS. Dimension reduction followed by Reliability analysis was
carried out. The scaling technique used in the questionnaire was Likert Scale. The scale was
designed with five response categories as shown below:
I. Strongly Agree
II. Agree
III. Neither Agree nor Disagree
IV. Disagree
V. Strongly Disagree
There was no need to resort to any specific sampling techniques. I had a list of 35 companies
to be visited and that was my sample set. These 35 companies were there from almost all
sectors of industry. The breakup for the same is given in analysis. Thus care was taken to
remove as many biases as possible. The sample set was neither random nor convenience.

Major Findings:

4 factors were identified from the research:

 Quality_Component
 Sophistication_Component
 Avaialability_Component
 PriceStructure_Component
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Conclusion and recommendations:

1) Focus on the niche

It is not sensible to waste efforts over convincing those industries to purchase our tools
which don’t purchase tools worth amount even Rs 10,000 a year. Stanley Works should
focus on the selected few which can become our permanent customers.

2) Regular follow ups

To ensure that companies give order to Stanley Works, the sales force should regularly
remain in touch with the company personnel met previously.

3) Increase the Sales Force

It becomes difficult for the Sales officer to be in touch with all the companies of the
region, as they are sparsely located. The industrial areas are quite far from each other. The
company can appoint different sales officers to handle respective zones.

4) Setup Exclusive Outlet

Stanley Works has been planning to set up an exclusive outlet for Stanley Hand Tools in
Jammu city. The store should be opened as soon as possible. A store that displays tools
always adds to the company image.

5) Reseller Identification
Many companies have occasional demand of tools in case of their existing tools break.
Also companies prefer buying from a local vendor rather than purchase in bulk from
distributors.
Stanley Works can identify several resellers in various zones who can purchase Stanley
Hand Tools from the distributor and stock them.

6) Newsletter, Emails
Stanley Works can send regular email and updates to the prospective clients about the
new products launched.

7) Tie Ups
Stanley Works can tie up with various automobile companies and distribute customized
kits with the cars. This will not only lead to brand promotion but also help in long term
relations with various automotive companies.
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I. INTRODUCTION TO HAND TOOLS AND HAND TOOL INDUSTRY

Hand Tools:

A Hand Tool is any device that can be used to do physical work on a piece on a material like
wood, metal, etc, using hands. The device can either be used manually or it can be driven by
electric current. The latter is classified under the category of Power Tools.

Hand tools should not be confused with the machine tools. They are different from machine
tools in a way that machine tools are powered mechanical devices that are used for
fabrication of metal components. Machine tools typically uses power source other than
human movement. Some of the examples of machine tools are the Lathe machines.

Hand tools are one of the indispensible parts of our routine. No machine can take the place of
a Hand tools. They have been a part of Human activities since prehistoric times and their uses
have also remained more or less similar. It is only that today the tools that we use are
developed as per certain standards.

Some of the key purposes for which Hand Tools are used are:

1.) Home repair: Day to day activities like hitting the nail with a hammer, etc
2.) General Maintenance: Maintenance in Industries and Automobile workshops
3.) Woodworking: Furniture manufacturing, Carpentry
4.) Building: Construction purposes
5.) Gardening: Activities ranging from maintenance of gardens to agricultural farming.
6.) Mechanics: All mechanical activities like cutting of metal sheets, etc

Thus we can conclude that there are two types of Market Segments for Hand Tools:

1. Market for Home Products i.e. Tools to be used for domestic chores.
2. Industrial Markets i.e. Tools for maintenance and construction in industries.

Hand Tool industry is a labor intensive industry. In countries like India, which depend a lot
on the manpower, this industry provides a source of employment to many people. The tools
manufactured are again used as by people to carry out labor intensive work and support their
livelihoods. A part of the bigger Tool industry which comprises of Hand tools, Power tools,
and Machine tools, this industry contributes significantly to the economy of our country.
Of late, this industry has seen a major shift from being labor intensive to energy intensive.
Use of power tools is the cause of this shift.
 P a g e | 13

Classification of Hand Tools

Depending upon their usage, Hand Tools are classified under following broad categories1:

1.) Driving and Chopping Tools: Hammers, Sledges, screwdrivers and bits, chopping tools.

FIGURE 1.1 FIGURE 1.2

Screwdrivers2 Hammers2

2.) Cutting and Smoothing Tools: Saw, Chisels, Planes, Files, And Miscellaneous Cutting
Tools.
FIGURE 1.3 FIGURE 1.4 FIGURE 1.5
2 2
Chisel Set Saw Plane File2

3.) Drilling and Boring Tools

FIGURE 1.6
Power Drill3

4.) Measuring, Leveling and Layout Tools : Rules, Tapes, Marking Tools, Levels, etc
FIGURE 1.7
Tape Rule2

5.) Gripping, Prying and Twisting Tools: Pliers, Wrenches

FIGURE 1.8 FIGURE 1.9

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Wrench2 Pliers2

6.) Holding, Raising, Grinding Tools: Clamps, Jacks, Grinders, etc

FIGURE 1.10
C-Clamp2

1. Source: http://en.wikipedia.org/wiki/Hand_tool
2. Source: www.stanleytools.com
3. Source:www.blackanddecker.com

Global Hand Tool Industry

The total worth of the Global Hand Tool Market is estimated to be in excess of US $ 10
Billion4. Amongst the main producers of Hand Tools are the following:
Note: more than/over
1. Chinese Market:
China has registered a growth of around 20% in terms of hand tools, for past several
years. Note: for the past
TABLE 1.1
Chinese Market Snapshot4

Number of exporters 2800

Number of 4000
manufacturers
Total exports US$ 630 million
Capacity utilization 80%
Export ratio 83%
Industry snapshot (2004)

2. US Hand Tool Market:

 P a g e | 15

The US Market accounts for more than 60% of the worth of the total Global Hand Tool
Markets. It is expected to reach around US $ 14 .3 Billion. There are more than 1,000
firms active in the U.S. hand and power tools industry, ranging from small, privately
owned firms to major corporations like Stanley Works, Black & Decker, Bosch, Danaher
and Snap-on etc. In fact these major companies accounted for nearly 55 percent of sales
in 2006. Note1: market; Note 2: Danaher, Note 3:, etc; Note 4: These

3. EU Hand Tool Market:

EU market for Hand Tools comprises of 6 major countries, i.e. UK, France, Germany,
Belgium, Italy, and The Netherlands. Note: comprises 6

TABLE 1.2
European Market Snapshot4

EU Germany United France Belgium The

    Consumption 

Kingdom Netherlands
Total 12700 3150 1250 1210 950 600

Hand tools 1900 680 900   208

7500
Power tools 1250 570 310   392
5200
Exports 6436 2140 711 367 804 732

Imports 7544 1611 995 866 1034 746

4. Indian Hand Tool Market:

Indian Hand Tool Market is in a strong position. There has been a considerable shift of
manufacturing locations, for Key Hand Tool Players, to India. The reason for this is easy
availability of Raw material and cheap labour. Note1: This is the easy; Note 2: Labor

TABLE 1.3
Indian Market Snapshot

Estimated No. of 2500

Units in India
SSI Units 95%
Large Units 7
Estimated number of 25000
workers
Major Jallandhar/ Nagaur
Manufacturing
regions
Total exports in 5215.5 million Rs.
2001-02
Industry snapshot
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Punjab’s hand tools industry grew 15 per cent5 in the last fiscal, after a decline in 2007-08
and 2006-07. In 2008-09, exports were worth Rs 894.81 crore.

The hand tool industry of Punjab employs nearly 60,000 people and consists of about 350
units, a majority of them SMEs. The major export markets are the US and the European
Union, which account for 50 per cent of total exports from Punjab. Exporters supply hand
tools to major retail chains like Wal-Mart, B & Q and Home Depot.

Punjab’s hand tool manufacturers are mostly located in Jalandhar and Ludhiana.

References:
4.) www.hand-tools-manufacturers.com/hand-tools-market.html
5.) Business Standard, March 16, 2010

II. INTRODUCTION TO STANLEY WORKS

A Brief Overview and History:

Stanley Works, an S&P 500 company is a worldwide supplier of consumer
products, industrial tools and security solutions for professional, industrial
and commercial use. The company was established in the year 1843 by
Frederick Trent Stanley. Who founded a small hardware manufacturing
shop in Britain, CT. Thus we have here a 167 year reputation for Product
Quality and Service. Note1: tools, and Note 2: 167-year
Frederick Trent Stanley
 A few years later, in 1857, Frederick’s cousin, Henry Stanley, founded The Stanley Rule and
Level Company. In 1920, The Rule and Level Company merged with The Stanley Works and
would go on to become its famous Hand Tools Division.
Over the years, The Stanley Works has produced some of the most innovative and useful
tools ever made. Among these tools are the Bailey Plane, the Surform shaper, the PowerLock
tape rule and most recently the FatMax line of products.
Today, more than ever, Stanley continues to be an industry leader in tool innovation. In
2001, Stanley introduced more than 100 new products, bringing to 400 the number of new
 P a g e | 17

products introduced in the past four years. As a direct result of Stanley’s commitment to
excellence, Stanley was awarded the Prestigious Golden Hammer Award, presented for New
Product Innovation in both 2000 and 2001.
In 1877, Stanley Works paid its first annual cash dividends to stockholders and has been
doing the same since then.

Merger and Acquisitions:

 In 1980, Stanley acquired MAC tools
 In 1984, Stanley acquired Proto Tools
 In 1986, Stanley acquired Bostitch fastener and fastening tools
 In 2005, Stanley acquired National and Facom

FIGURE 2.1
Global Presence of Stanley Works

Awards and Recognitions

Following are the most recent awards received by Stanley Works.
Note: The following
Stanley was the recipient of the following four awards at the 2007 Golden Hammer Awards
Ceremony:

 The Vendor of the Year Award.

 The Innovator of the Year Award for overall new product development in all categories.
 The Gold Golden Hammer Award for the Hand Tools category.
 The Business to Consumer Communications Award for the Alien commercial featuring
the Stanley MaxLife 369 Tripod Flashlight.

2007 IDEA Awards from Business Week:

Stanley won two IDEA awards in the 2007 International Design Excellence Competition. The
MaxLife 369 Tripod Flashlight received a Silver Award, and the FatMax Xtreme FuBar
Utility Bar won a Bronze in the Consumer Goods category.

Graphic Design USA Magazine:

 P a g e | 18

Stanley Hand Tools Packaging won 5 awards in the 2006 American In House Design
Competition sponsored by Graphic Design USA magazine.
Consumer Fastening: SharpShooter Staple Line of Packages
MaxLife 369 Tripod Flashlight Packaging
MaxLife 369 Tripod Flashlight Counter Display
MaxLife 369 Tripod Flashlight Floor Display

Brand Portfolio

Stanley has a very strong portfolio of Brands. The key ones amongst the list includes Stanley,
Bostitch, Proto, Fidmar, FatMax, IntelliTools, Blackhawk, Facom, MAC, ZAG, National,
Britool.
Note: include

Product Platforms

Stanley tools are classified in 3 categories i.e. Consumer Tools, Industrial Tools and Security
Solutions. Note1: into; Note 2: tools, and

Construction Tools are used for Residential construction, repair and remodelling. They are
further classified as Hand Tools, Consumer Hardware, Consumer Mechanic Tool, and
Consumer Storage. Note: repair, and remodeling

Industrial Tools are used for automotive repair and industrial production. This covers
military, mining, transit, agriculture, aviation, energy and aviation. Note: energy, and

Industrial Tools are further classified as following: Note: follows

 Hand Tools (Sockets, wrenches, screwdrivers, pliers, etc)

 Hardware (Hinges, Closures, etc)
 Hydraulics (Mounted and Hand held tools) Note: Handheld
 Assembly Technologies (Assembly line fastening equipment)
 Storage Solutions (Storage cabinets, Shelving, mobile cabinets)
 Surveying Equipment (Tripods, measuring wheels, laser levels, measuring equipment)
 Fastening. (Fastening tools, nails, staples)

The key brands are Stanley, MAC, Proto, Facom, LaBounty, Vidmar, Bostitch, CST

Security Solutions are used by hospital, airports, financial instruments, government.These

include Best Access Systems, C J Rush industries, Stanley Access Technologies, Stanley
Engineered Components, Senior Technologies. Note1: hospitals; Note2: . These

Stanley Product Line

 P a g e | 19

Mechanic Tools:

Spanners: This includes Ratcheting Spanners, Ratcheting Geared Spanners, Combination

Spanners Ring End Spanners, Double Open End Spanners, Adjustable Spanners, Ratcheting
Hook Spanners, Socket Spanners, and Construction Ratchet Spanners.

Sockets and Accessories: Sockets – Inch & Metric, Ratchets, Flex Handle, Spinner Handle,
Universal Joints, Adapters, Bit Adapters, Sliding T-Bars, Extension Bars, Bit Sockets,
Speeder Handles, L-Handle, and Offset handles, Impact Sockets & Accessories.

Automotive Tools:
Brass Hammers, Feeler Gauge, Oil Filter Strap Spanner, Grease Guns, Stud Removers, Jaw
Pullers, Ignition Crimping Tools, Snap ring Pliers.

Pneumatic Tools:
Air Ratchets, Reversible keyless Air drill

Tool Sets:
Telecommunication Tools Sets, Do-it-all Tool Sets, Electrician Tool Sets, Auto Maintenance
Tool sets, all purpose tools sets. Note: toolsets, all-purpose

Pliers, cutting and holding tools:

Pliers: Insulated Pliers, Basic Pliers, Miniature Pliers, Locking Pliers, Automatic Wire,
Strippers, Circlip Pliers, Clamping Pliers, Orceleon Wire Stripper, Chain Grip Pliers.

Knives and Cutters: Retractable Knives, Sports Utility Knives, Saws, Hacksaws, Hand drills,
Aviation Snips, All Purpose Snips, Wire Strippers, Bolt Cutters, Glass Cutters, Bit Braces.
Note: all-purpose

Pipe Tools
Pipe wrenches, Basin wrenches, Water Plumb Pliers, Tubing cutters, Pipe cutters, Flaring
Tools.

Fastening Tools

Screwdrivers and Keys: Insulated screwdrivers, Basic Screwdrivers, Tank Thru Screwdrivers,
Ratcheting Screwdrivers, Multi Bit Screwdrivers, Testers, Digital Testers, Precision
Screwdrivers, Hex Keys, Torx Keys. Note: Multi-Bit
 P a g e | 20

Clamps, Glue Guns, Riveters, Staplers: Trigger Clamps, F-Clamps, C-Clamps, Pipe Clamps,
Parallel Bar Clamps, Heavy duty Clamps, Corner Clamps, Staplers, Heavy Duty Staplers,
Hammer Tackers, Hot Melt Glue Guns, Soldering Guns, Riveters. Note: Heavy-Duty

Striking and stuck Tools

Hammers: Anti Vibe Hammers, Jacketed Steed Hammer, Fiberglass Hammer, Wood Handle
Hammer, Contractor Grade Hammer, Engineering Hammer, Hickory Handle Hammers,
Compo Cast Hammers, Rubber Mallets, Soft Face Hammers, Steel Axe.

Pry Bars, Chisels, Punches, Nails: 4 in One Fu Bars, Pry Bars, Claw bars, Wrecking Bars,
Hand Guard Chisels, Cold Chisels, wood curving Chisels, Nail sets , Punches. Note: sets,

Flashlights

Led Flashlights, Tripod Flashlights, Mini Tripod Flashlights, Aluminum Alloy Bright ,
Flashlights, Aluminum Alloy Bright , Chargeable Flashlights. Note: bright,

Measuring, Layout and Surveying Tools

Layout Tools: I-Beam Levels, Box Levels, Torpedo levels, Line Levels, Chalk Lines,
Roofing Squares, Try Squares, Combination Squares, Bevel Edges, Marking Gauge,
Magnetic Cast Aluminum Torpedo Level, Torpedo Level (42-294 - 8" ) Note: 8”)

Measuring and Layout Tools: Laser Distance Estimator, Laser Torpedo Level, Laser Line
Level, Laser Cross Level, Laser Level & Square, Laser Level, Cross Line Laser Level, Cross
Line Laser Level with Pole, Horizontal/ Vertical Laser Level, Multi laser Cross Level,
Digital Measuring wheel, Analog Measuring Wheel, Rotary laser.

Stanley Works in India

FIGURE 2.2
Stanley in major cities and industrial towns
 P a g e | 21

No. of Distributors for Stanley Products in India:

PROTO 5
Hardware 20
Laser Products 8
Stanley Hand Tools 140

Stanley Works will set up its manufacturing facility in the country and aims to clock a
turnover of $100 million in next three years from Indian operations.

Stanley’s Valued customers

FIGURE 2.3
Customers of Stanley Works
 P a g e | 22

Stanley Competitors

Some of the Competitors of Stanley Tools in Indian Markets include Taparia, Everest, East
Man, Snap On, Ambika, Bahco, Blue Point, Sioux, Multitec, Mac Master, Jhalani.
Amongst all, Taparia is the biggest competitor for the Stanley Tools. Irony is that Stanley
Works is expanding in India when Taparia is expanding its operations in European Markets.

Key Technologies

Stanley Works applies certain patented technologies in its tools that differentiate them from
competitors and puts them at a competitive advantage. Some of them are discussed here.
However, even before it is worth mentioning that Stanley Tools meet ANSI, ISO and DIN
standards.
ANSI – American National Institutions
ISO – International Organization for Standardization
DIN – Deutches Institute for Normung. Note: Deutsches

The complete ANSI standards for Hand Tools can be checked in Appendix 1.
a) Maxi-Drive Technology:

FIGURE 2.4
Maxi-Drive Technology in Sockets
 P a g e | 23

The Maxi-Drive technology is the registered patent of Stanley. It is the patented gripping
designed to outperform conventional drive configuration. Some of the key Advantages are:
Note: advantages

• Reduces the chance of rounding in corners of the fasteners to extend fastener life.
• Enables to turn worn or rounded fasteners.

• Provides 15% more torque to tighten fasteners easily. Note: It provides

• Reduces fastener wear by minimizing contact on the outer 5% of the fastener; helping
increase life expectancy of the fastener.

• Helps reduce slipping on frozen or rusted fasteners.

• There is absolutely no difference between the printed size & the actual size.

• It allows ratcheting at an angle of 50.

b) DynaGrip

FIGURE 2.5
DynaGrip used in Screwdrivers
 P a g e | 24

c) Shaft Length in Spanners

FIGURE 2.6
Stanley Screwdrivers vs. Others

d) VDE Pliers FIGURE 2.7

VDE Pliers
VDE-Pliers are those pliers which are use in electrical insulation purposes to prevent
from shock etc. In other words it used in live wire working
condition (up to 10,000 volts) Note1: that are used in;
Note2: prevent shock; Note3: words,

e) Technologies in Hammer:
1. Wooden handle is made from HICKORY wood which absorb 40% of vibration. Note:
abosrbs
2. Also reduces nerves numbness. Note: It also
3. Also reduces the chance of white-finger vibration syndrome. Note: It also

Source of data for this Chapter has been the Official Material Provided by Stanley Works
India Pvt. Ltd.
 P a g e | 25

III. PROBLEM DEFINITION

Background to the problem

Stanley Works is the oldest Hand tool manufacturing company in the world and the Stanley
Hand Tools are one of the most respected Tools used globally (poor use of adjective). In
spite of a 167 year long background in this field, once the company entered the Indian
market, it has had to face a stiff competition from the competitors’ tools already present in
the market. (incorrect grammar)

The Indian Hand tools market is totally different from the US or European market for tools.
(How) A major portion of the market is flooded with tools from the unorganized sector. The
ones that come under organized segment are also classified under Small and Medium scale
industries. (incorrect grammar)

The sophistication of Tools, which is the key component of purchase globally, is one of the
least considered factor while purchase in Indian markets. (Basis?) The most important factor
here is: maximum value derived at minimum cost.

A few key factors (dimensions) are considered by any end customer before making a choice
regarding purchase of Hand tools. It is necessary for Stanley, to position its tools
appropriately against the competitors’ brands, to be successful in the Indian Market.
However, even before this is done, it becomes critical to be able to extract those key factors,
which are consciously or subconsciously, considered as important for purchase.

In our present study, we try to analyze and extract these factors by the help of a survey.
Responses are taken from the end customers (industry users). Then factor analysis is
performed on these responses using SPSS to yield the factors.

Though we restrict our study to only finding the factors, Stanley Works can carry out a
further survey where customer feedback is used to plot the position of Stanley against
competitors on those dimensions. It would give a clear picture of where does Stanley Tools
stand as against the tools already used and help Stanley strengthen its position in the Indian
markets.

In the process of identifying the factors another key objective is achieved, which is to find out
the key industries where Stanley should try to sell its products. The sales generated in the
period of internship helps in assessment of the potential in the market of Jammu region as
well as narrow down on the prime companies.
 P a g e | 26

Primary Objectives:

Extraction of the Key Dimensions (Factors) taken into consideration for purchase of Hand
Tools in the market of Jammu region.

Secondary Objectives:

1. Analysis of the expectations of the end user from Stanley tools as well as Hand Tools in
general.
2. Identification of the New Industries and Key users that hold high potential for purchase of
Stanley Tools.

(Poor formatting done, with a lot of white space throughout the document)
 P a g e | 27

IV. APPROACH TO THE PROBLEM

(Overview of the work done in the period of internship)

The internship period was divided as following:

1. Induction Program: A 2 day intern oriented program to become aware of the Stanley
culture and policies (Poor use of words). The induction was spread across 2 days as
following:
 HR Policies
 Internship Program
2. Sales Officer Meetings: This including going to the field with the local mentor to
understand the tactics of pitching sales. (incorrect grammar)
3. Distributer Meetings: This included meeting with the local Distributer to get a feel of the
market trends and demand patterns.
4. Company visits: This included visiting to the selected companies, in the designated area,
which can be existing/potential customers for Stanley Works. (incorrect grammar)
5. Sales Workshop: A presentation outlining the SWOT analysis of the Project.
6. Project report submission: A copy of the final presentation along with other documents to
be submitted to the HR.

The Job Description specified to me by HR was as follows:

 Designation: Sales Officer (Domestic)

 Corporate Grade: Trainee
 Reporting To: Head of Sales Department* ?/ (Domestic Sales Manager)
 Overview: Co-ordinate and administer sales activities for designated market group

Main Responsibilities

Sales and Marketing

 Compile and analyze sales statistics and study the market potential for STANLEY hand
tools.
 To Submit the Business Potential Reports and Org Chart within 15 days for the Target
Companies as per Action Plan.
 All major Industries to be covered to see scope for Hand Tool market and major players.
 Giving Product Demo to Potential Customers.
 To close the sales generated.
 P a g e | 28

 Coordinating with Distributor, Sales Officer, Mentor and Central Team for executing
Orders.
 Travel to customer sites as required.

Sales Administration

 Prepare and submit Weekly plan and Daily sales reports and project sales figures for the
next day.
 Executions of customer orders, coordinating with Distributor to send Quotations, follow
up etc.
 Handle ad hoc sales enquiries.

I was given a list of 10 companies by Stanley Works. These included:

Cadilla Pharma, Berger Paints, Vodafone Essar, Nilkamal, Singer Sewing Machines, Surya
Pharma, KC Vehicleades, Reckitt Benckiser, Sudhir Gensets and Airtel.

To expand the list I started collecting data regarding industries of Jammu as soon as I reached
Jammu.
Various industrial areas have been developed in and around Jammu by the State Government.
J&K SIDCO (Jammu & Kashmir State Industrial Development Corporation) is the nodal
agency for promotion & development of medium and large scale Industries in the state.
I focused on 4 main areas:

 Sambha Industrial Area; Phase 1 and 2

 Bari Brahmana Industrial Area; Phase 1 and 2
 Gangyal Industrial Area
 Companies in Jammu city

I visited these areas and with the help of JK SIDCO website, I tried to expand my list of
companies. Though the list kept updating, the precise list included the following companies:

Surya Pharma, Reckitt Benckiser, Indswift Labs Ltd, Berger, Indswift Ltd, Cadilla,
Nilkamal, UK Paint, Bharat Box 2, Kamdhenu Cement, Lupin, Sun Pharma, Eurobond, Lark
Non Ferrous, Intex, Kashmir Steel, Ultimate Flexipack, Sudhir Gensets, Jai Beverages,
Aircel, Vodafone, Idea, Coca Cola, Crest Hyundai, Yamaha, Shaurya Motors, Highland
Automobile, Skoda Motors, Caterpillar, Fiat Motors, Jamkash Vehicleades, Honda 2
Wheelers, Ford Motors, Bajaj Auto, Shree Toyota. (Poor formatting)

Visits to the Companies

I started visiting the companies in focus from th second day I reached here. The purpose of
visits during the initial days was to introduce Stanley Hand Tools to the companies, and take
feedback from the companies already using our tools. This period also gave me an insight
 P a g e | 29

into the minds of the company personnel which helped me work on the list of variables I
chose to analyze in my study, and also prepare the questionnaire.
Prepared the questionnaire and on my subsequent visits I tried to get responses from the
company personnel as well as initiate sales.

The tools being slightly costlier than the ones already being used, companies were not ready
to place an order instantly. However many companies asked me to provide quotation for the
tools they required.
A few companies also asked me to give them a demo of the tools. So, I would often carry
the tool kits along with me so that I could give them a demonstration of the quality of our
tools.

Daily Sales Report and Business Potential Review

I had to provide a report of my daily work via Daily Sales Report. The format is there in
Appendix 4
At the end of internship, I submitted the respective BPR for each company visited. The
format of BPR is specified in Appendix 3

The data collected was then analyzed via SPSS. Details about the same have been specified
further in the report.
 P a g e | 30

V. RESEARCH DESIGN

Literature Review:

No specific study has been conducted previously which analyses the Hand Tools Market of
Jammu region. No data was available that could be used to frame a Hypothesis. In fact the
key issue faced in this research was lack of specific data pertaining to Hand Tools industry in
general. It is a part of Small and Medium Scale Industries. Though annual reports pertaining
to MSME can be found online, there is no breakup for Hand Tool sectors. Thus I planned to
carry out an Exploratory Research. (could have used references from foreign markets)

Type of research design:

The research that has been conducted is Problem Identification Research (What does that
mean? Unnecessary use of Jargons). The key objective, as already stated, is to identify the
key factors influencing purchase of hand tools in the region of Jammu. In short, our research
is an exploratory research where I plan to do Factor analysis on the primary data collected via
survey of the company personnel. (repetitive)
Since it is an exploratory research and that no earlier data is available, we cannot frame a
hypothesis. In this research I will identify the key factors. If Stanley Works plans to carry out
any further studies, it can use the factors extracted in this report for a further Descriptive
Study.

Information needs:

The research is an exploratory research and one can carry out such research with the help of
secondary data. Primary data used, if any, is qualitative in nature.
However, in our case we plan to carry out factor analysis and the information needed for the
same is quantitative in nature. Primary data is collected by asking respondents to fill the
questionnaire. The data is then processed via SPSS to find out the key factors.

Data collected from secondary sources:

 P a g e | 31

The research was started by gaining an insight of the hand tool industry; the key technologies
used in Hand tools, types of hand tools, Stanley Works and its presence in India and most
importantly, the industrial area of Jammu.
Data was collected from websites, and online portals of newspapers. The data regarding
industries of Jammu was collected from official website for Jammu and Kashmir SIDCO.
The data regarding Stanley Works was collected from official website of Stanley Works and
the official data provided by Stanley Works India Pvt. Ltd. (it was mentioned earlier in the
report that no previous data was available, so this feels contradictory)

Data collected from primary sources:

A questionnaire (where is it in the report?) comprising of 12 questions was prepared and was
used to get responses from the 35 companies visited in the period of internship. The data was
first collated in MS Excel and later processed via SPSS. Dimension reduction followed by
Reliability analysis was carried out.

Scaling Techniques:

The scaling technique used in the questionnaire was Likert Scale. The scale was designed
with five response categories as shown below:
1. Strongly Agree
2. Agree
3. Neither Agree nor Disagree
4. Disagree
5. Strongly Disagree

Questionnaire Development and pretesting

During initial days of visits to companies I could assess a few key factors which companies
were resorting to while making a decision for purchase. Then I tried to refer Hand Tool data
and made a precise list of 10 factors which could be tested to find out key factors.
The questionnaire size was restricted to 12. The questionnaire did not include any personal
details or questions pertaining to demographic profiling. Only the questions pertaining to the
list I prepared were framed along with 2 additional questions.
The sample set was very small so the survey was carried directly without pretesting.

The questionnaire can be checked in Appendix 2

Sampling Techniques:
 P a g e | 32

There was no need to resort to any specific sampling techniques. I had a list of 35 companies
to be visited and that was my sample set. These 35 companies were there from almost all
sectors of industry. The breakup for the same is given in analysis. Thus care was taken to
remove as many biases as possible. The sample set was neither random nor convenience.

Field work:

There was an extensive fieldwork carried out by repetitive visits to the 35 companies. Each
company was visited at least 4 to 5 times to get an insight as well as the responses.

DATA ANALYSIS

Following steps were carried out during various phases of the research to perform data
analysis:

1) The company personnel, mainly from either commercial or maintenance departments,

were asked to fill the questionnaire. The responses were taken on a likert scale.
2) The data was then transferred to MS Excel, where the responses were collated.
3) This data was then transferred to SPSS. The data was available for 10 variables, namely:

 Price_Importance
 Life_Importance
 LeadTime_Importance
 Availability_Importance
 DiscountStructure_Importance
 InternationalStandard_Importance
 AfterSalesService_Importance
 Theft_Issue
 Quality_Importance
 HighQuality_Sophisticated (what was the reason for selecting these variables?)

4) Then, Dimension reduction i.e. Factor Analysis was performed. 4 components were
extracted.
5) All the 10 variables loaded on only one of the 4 components. The variables for respective
components were combined together and renamed.
6) Then, Reliability Analysis was carried for all the components and Cronbach Alpha’s
value was examined.
7) The remaining two questions were analyzed separately in MS Excel and Pie Charts were
prepared for the same.
 P a g e | 33

8) Further, I tried to provide sector based breakup of the companies visited wih the help of a
Pie Chart

VI. RESULTS AND INTERPRETATION

A total of 35 companies were visited. These companies belong to various sectors. The
breakup can be done in the following manner:

FIGURE 6.1
Sector Wise Breakup

(Incomplete chart)

Companies were inquired about their awareness of Stanley Tools. 3 categories were used i.e.
Aware and Used, Aware but Not Used, Not Aware. The results obtained were following:

FIGURE 6.2
 P a g e | 34

Awareness about Stanley Hand Tools

The companies were also asked about the respective brand of tools being used in their
respective company. It was found that the tool brands could be classified under 5 categories:

Taparia/ Everest/ Venus, Local Tools, Parent Company Tools, Stanley Tools, Others

FIGURE 6.3
Brand Used
 P a g e | 35

SPSS Output Analysis 1: Factor Analysis

Sample Size Requirement

TABLE 6.1

Descriptive Statistics

Mea Std. Deviation Analysis N

n

Price_Importance 1.94 .684 35

Life_Importance 2.46 .852 35

LeadTime_Importance 2.80 .759 35

Availability_Importance 2.94 .873 35

DiscountStructure_Importance 2.11 .758 35

InternationalStandard_Importan 2.91 .853 35

ce

AfterSales_Importance 2.46 .780 35

Theft_Issue 3.43 1.290 35

Quality_Importance 2.40 .553 35

HighQuality_Sophisticated 2.69 1.231 35

Conventionally as per Principal Component Analysis, the ratio of cases to variables

should be greater than 5:1. In our case we have only 35 responses for 10 variables. The
reason for this is that there were not more than 35 companies/ Industries whose response
was important for inclusion in our study.
 P a g e | 36

Presence of substantial correlations:

TABLE 6.2
Correlation Matrix

Price_Importance

InternationalStandard_Importance

Theft_Issue
Life_Importance

LeadTime_Importance

Availability_Importance

DiscountStructure_Importance

AfterSales_Importance

Quality_Importance

HighQuality_Sophisticated
Correlation

Price_Impor 1.0 -.358 .147 .290 .297 -.311 -.281 .062 -.093 .223
tance 00
Life_Import -.3 1.000 -.036 -.162 .144 .541 .384 -.37 .662 -.252
ance 58 1
LeadTime_I . -.036 1.000 .693 -.061 -.254 .010 .120 -.154 .214
mportance 14
7
Availability . -.162 .693 1.000 -.034 -.244 -.004 .414 -.195 .393
_Importance 29
0
DiscountStr . .144 -.061 -.034 1.000 .197 .357 -.32 .309 -.181
ucture_Impo 29 2
rtance 7
International -.3 .541 -.254 -.244 .197 1.000 .237 -.12 .387 -.334
Standard_I 11 6
mportance
AfterSales_I -.2 .384 .010 -.004 .357 .237 1.000 -.34 .245 -.244
mportance 81 7
Theft_Issue . -.371 .120 .414 -.322 -.126 -.347 1.00 -.330 .661
06 0
2
Quality_Imp -.0 .662 -.154 -.195 .309 .387 .245 -.33 1.000 -.371
ortance 93 0
HighQuality . -.252 .214 .393 -.181 -.334 -.244 .661 -.371 1.000
_Sophisticat 22
ed 3
 P a g e | 37

Principal components analysis requires that there be some correlations greater than 0.30
between the variables included in the analysis. For this set of variables, there are several
correlations satisfying the criterion.

Sampling adequacy of individual variables:

TABLE 6.3

Anti-image Matrices

Theft_Issue
Price_Importance

Life_Importance

LeadTime_Importance

Availability_Importance

DiscountStructure_Importance

InternationalStandard_Importance

Quality_Importance

HighQuality_Sophisticated
AfterSales_Importance
Anti-image Correlation

Price_Importanc .473a .277 .089 -.297 -.396 .067 .380 . -.170 -.221
e 258

Life_Importance .277 .528a -.126 -.056 .174 -.490 -.133 . -.639 -.395
418

LeadTime_Impo .089 -.126 .534a -.683 .018 .143 .097 . .105 -.011
rtance 198

Availability_Im -.297 -.056 -.683 .563a - .051 -.250 -.40 .024 .030
portance 7.12 6
7E-5

DiscountStructu -.396 .174 .018 - .504a -.253 -.384 . -.231 -.106

re_Importance 7.12 200
7E-5

InternationalSta .067 -.490 .143 .051 -.253 .587a .019 -.36 .141 .374
ndard_Importan 5
 P a g e | 38

ce

AfterSales_Imp .380 -.133 .097 -.250 -.384 .019 .603a . .061 -.011
ortance 207

Theft_Issue .258 .418 .198 -.406 .200 -.365 .207 . -.201 -.641
500
a

Quality_Importa -.170 -.639 .105 .024 -.231 .141 .061 -.20 .608a .340
nce 1

HighQuality_So -.221 -.395 -.011 .030 -.106 .374 -.011 -.64 .340 .553a
phisticated 1

a. Measures of Sampling Adequacy (MSA)

Principal component analysis requires that the Kaiser-Meyer-Olkin Measure of Sampling

Adequacy be greater than 0.50 for each individual variable as well as the set of variables.
On iteration 1(the first Iteration), except for variable the Price_Importance, the MSA for all
of the individual variables included in the analysis was greater than 0.5, supporting their
retention in the analysis.
Sampling Adequacy for Set of Variables:
TABLE 6.4
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .545

Bartlett's Test of Sphericity Approx. Chi-Square 126.526

Df 45

Sig. .000

In addition, the overall MSA (Measure of Sampling Adequacy) for the set of variables
included in the analysis was 0.545, which exceeds the minimum requirement of 0.50 for
overall MSA.

Principal component analysis requires that the probability associated with Bartlett's Test of
Sphericity be less than the level of significance. The probability associated with the Bartlett
test is < 0:001, so our data satisfies this requirement also.
The probability that is associated with the Bartlett test is < 0:001, this requirement is satisfied
by the data.
Scree Plot
 P a g e | 39

FIGURE 6.4
Scree Plot of the Data

Latent root criterion:

TABLE 6.5

Total Variance Explained

Co Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared

mp Loadings Loadings
on
ent Total % of Cumulat Total % of Cumulat Total % of Cumulat
Varianc ive % Varianc ive % Varianc ive %
e e e

1 3.41 34.169 34.169 3.417 34.169 34.169 2.306 23.059 23.059

7

2 1.65 16.519 50.688 1.652 16.519 50.688 2.015 20.155 43.214

2

3 1.39 13.958 64.646 1.396 13.958 64.646 1.796 17.962 61.176

6

4 1.02 10.264 74.910 1.026 10.264 74.910 1.373 13.735 74.910

6

5 .832 8.324 83.235

 P a g e | 40

6 .607 6.066 89.301

7 .402 4.024 93.325

8 .339 3.386 96.711

9 .199 1.987 98.698

10 .130 1.302 100.000

Extraction Method: Principal Component Analysis.

There are four Eigen values greater than 1.0. The latent root criterion for extraction of factors
if Eigen value is > 1 indicates that there are four components to be extracted for these
variables.
In addition, the cumulative proportion of variance criteria can be met with the top two factors
to satisfy the criterion of explaining 60% or more of the total variance. A four-factor solution
would explain 74.91% of the total variance.

Evaluating Communalities:

Communalities represent the proportion of the variance in the original variables that is
accounted for by the factor solution. The factor solution should explain at least half of each
original variable's variance, so the communality value for each variable should be 0.50 or
higher.

In our case, the communality value for all the variables is above 0.50 and thus all variables
are accepted in the study.

TABLE 6.6

Communalities

Initial Extractio
n

Price_Importance 1.000 .837

Life_Importance 1.000 .794

LeadTime_Importance 1.000 .816

Availability_Importance 1.000 .850

DiscountStructure_Importance 1.000 .759

 P a g e | 41

InternationalStandard_Importa 1.000 .669

nce

AfterSales_Importance 1.000 .547

Theft_Issue 1.000 .847

Quality_Importance 1.000 .665

HighQuality_Sophisticated 1.000 .707

Extraction Method: Principal Component Analysis.

Identifying complex structure:

Complex structure occurs when one variable has high loadings or correlations (0.40 or
greater) on more than one component. If a variable has complex structure, it should be
removed from the analysis.
Variables are only checked for complex structure if there is more than one component in the
solution. Variables that load on only one component are described as having simple structure.

TABLE 6.7

Rotated Component Matrixa

Component

1 2 3 4

Life_Importance .847 -.235 .052 -.136

InternationalStandard_Importance .774 -.015 -.251 -.086

Quality_Importance .745 -.218 -.114 .221

Theft_Issue -.106 .891 .154 -.134

HighQuality_Sophisticated -.169 .774 .279 .046

AfterSales_Importance .415 -.535 .294 -.041

 P a g e | 42

LeadTime_Importance -.124 .006 .895 -.012

Availability_Importance -.085 .325 .848 .136

Price_Importance -.329 .194 .099 .825

DiscountStructure_Importance .304 -.299 .018 .760

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

We can see form the output, none of the variable loads on more than one component. Except
for AfterSales_Importance, all factors have loadings (on one component) greater than at least
0.75. The criterion states that there should be a loading greater than 0.40 and that this should
happen for only one component. This is satisfied in the current scenario. As a result, we do
not reject any variable and proceed further.

Interpreting the principal component:

TABLE 6.8

Rotated Component Matrixa

Component

1 2 3 4

Life_Importance .847 -.235 .052 -.136

InternationalStandard_Importance .774 -.015 -.251 -.086

Quality_Importance .745 -.218 -.114 .221

Theft_Issue -.106 .891 .154 -.134

HighQuality_Sophisticated -.169 .774 .279 .046

AfterSales_Importance .415 -.535 .294 -.041

LeadTime_Importance -.124 .006 .895 -.012

Availability_Importance -.085 .325 .848 .136

 P a g e | 43

Price_Importance -.329 .194 .099 .825

DiscountStructure_Importance .304 -.299 .018 .760

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

The information in 10 variables can be represented by these 4 variables.

Component 1 includes:

1. Life_Importance
2. InternationalStandard_Importance
3. Quality_Importance
4. AfterSales_Importance

Component 2 includes:

1. Theft_Issue
2. HighQuality_Sophisticated

Component 3 includes:

1. LeadTime_Importance
2. Availability_Importance

Component 4 includes:

1. Price_Importance
2. DiscountStructure_Importance

Let us Name the 4 Components now.

 Component 1 can be termed as Quality_Component

 Component 2 can be termed as Sophistication_Component
 Component 3 can be termed as Availability_Component
 Component 4 can be termed as PriceStructure_Component

SPSS Output Analysis 2: Reliability Analysis

Cronbach Alpha for Quality_Component

TABLE 6.9
Reliability Statistics 1
Cronbach's Alpha N of Items

.724 4
 P a g e | 44

The Minimum acceptable level of Cronbach Alpha should be 0.6. Our output here is
0.724. Therefore, the output is satisfactory.
TABLE 6.10
Item Statistics 1
Mean Std. Deviation N

Life_Importance 2.46 .852 35

InternationalStandard_Importance 2.91 .853 35

Quality_Importance 2.40 .553 35

AfterSales_Importance 2.46 .780 35

TABLE 6.11
Item-Total Statistics 1
Scale Mean if Scale Variance Corrected Cronbach's
Item Deleted if Item Deleted Item-Total Alpha if Item
Correlation Deleted

Life_Importance 7.77 2.534 .708 .528

InternationalStandard_Im 7.31 2.987 .498 .676

portance

Quality_Importance 7.83 3.676 .566 .658

AfterSales_Importance 7.77 3.534 .354 .753

TABLE 6.12
Scale Statistics 1
Mean Variance Std. Deviation N of Items

10.23 5.182 2.276 4

Cronbach Alpha for Sophistication_Component

 P a g e | 45

TABLE 6.13
Reliability Statistics 2
Cronbach's Alpha N of Items

.796 2

The Minimum acceptable level of Cronbach Alpha should be 0.6. Our output here is
0.796. Therefore, the output is satisfactory.

TABLE 6.14
Item Statistics 2
Mean Std. Deviation N

Theft_Issue 3.43 1.290 35

HighQuality_Sophisticated 2.69 1.231 35

TABLE 6.15
Item-Total Statistics 2
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if
Deleted Item Deleted Correlation Item Deleted

Theft_Issue 2.69 1.516 .661 .a

HighQuality_Sophisticated 3.43 1.664 .661 .a

a. The value is negative due to a negative average covariance among items. This violates
reliability model assumptions. You may want to check item codings.

TABLE 6.16
 P a g e | 46

Scale Statistics 2
Mean Variance Std. Deviation N of Items

6.11 5.281 2.298 2

Cronbach Alpha for Availability_Component

TABLE 6.17
Reliability Statistics 3
Cronbach's Alpha N of Items

.814 2

The Minimum acceptable level of Cronbach Alpha should be 0.6. Our output here is
0.814. Therefore, the output is satisfactory.

TABLE 6.18
Item Statistics 3
Mean Std. Deviation N

LeadTime_Importance 2.80 .759 35

Availability_Importance 2.94 .873 35

TABLE 6.19
Item-Total Statistics 3
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if Item
Deleted Item Deleted Correlation Deleted

LeadTime_Importance 2.94 .761 .693 .a

Availability_Importanc 2.80 .576 .693 .a

e
 P a g e | 47

a. The value is negative due to a negative average covariance among items. This violates
reliability model assumptions. You may want to check item codings.

TABLE 6.20
Scale Statistics 3
Mean Varianc Std. N of
e Deviation Items

5.74 2.255 1.502 2

a.) Cronbach Alpha for PriceStructure_Component

TABLE 6.21
Reliability Statistics 4
Cronbach's Alpha N of Items

.456 2

The Minimum acceptable level of Cronbach Alpha should be 0.6. Our output here is
0.456 which is on the borderline. The output can be satisfactory if the analysis repeated
with more data. However, the current output can also be accepted as it quite close to the
required level.
TABLE 6.22
Item Statistics 4
 P a g e | 48

Mean Std. Deviation N

DiscountStructure_Importance 2.11 .758 35

Price_Importance 1.94 .684 35

Note:
 The alignment of the tables wasn’t done.
 The analysis should have a brief about what the output means for any given case.
TABLE 6.23
Item-Total Statistics 4
Scale Mean Scale Corrected Cronbach's
if Item Variance if Item-Total Alpha if
Deleted Item Deleted Correlation Item Deleted

DiscountStructure_Im 1.94 .467 .297 .a

portance

Price_Importance 2.11 .575 .297 ,a

a. The value is negative due to a negative average covariance among items. This
violates reliability model assumptions. You may want to check item codings.

Note:
1. Space between Discount and structure, underscore before Importance in first row
2. Comma before “a”
3. Underscore before Importance in second row
4.” Codes” instead of “codings”

TABLE 6.24
Scale Statistics 4
Mean Varianc Std. N of
e Deviation Items

4.06 1.350 1.162 2

VII. LIMITATIONS AND CAVEATS

 P a g e | 49

No report is completely error free and similar and thus my research was also not an
exception. The first limitation of the research was the sample size used to carry out research.
The time period available allowed me to visit at most 35 industries only. However even if I
had more time, the list could have not exceeded 45, since the prominent industries in this
region are very few.

Lack of time also prevented me from carrying out a further research on the basis of the
factors I extracted in the Factor Analysis.

The research was limited to the region of Jammu. To give a complete picture of entire Jammu
and Kashmir region, the research should have included even other areas of Jammu and
Kashmir.

Stanley Hand Tools are purchased mainly by Military Workshops in this region. It is a sector
even stronger than the Industries here. However, I was not authorized to work with the
Military Workshops. To get a complete picture of the demand for Stanley Hand Tools in
J&K, any further study should include Military Workshops.

VIII. KEY LEARNINGS & VALUE ADDITIONS FROM SUMMER

INTERNSHIP

1) Extensive knowledge of various kinds of Hand Tools

Prior to working with Stanley Works, Hand tool was one area about which I had no
specific knowledge. The only tools I was familiar with were screwdriver and pliers.
However, after working with Stanley Works, I gained an insight into all sorts of Hand
Tools, their applications and the kley technologies used in this field.
Note:
Spelling of “key”
2) Knowledge of Hand Tool Markets
While studying about hand tools, I also gathered information about the various hand tool
markets of the world. I studied the Indian hand tools sector which is a part of the Medium
and Small Enterprises (MEME). I came to know about the key places in India where hand
tool market is flourishing.

3) Knowledge about Industries in Jammu

Though I have resided in Jammu city for a couple of years, I was not aware about the key
industries here. However, when I started exploring the industries in this region, I found
 P a g e | 50

out that the State Government has contributed extensively to the development of large
industrial estates here. Some of the best brand have established their manufacturing units
in the industrial areas around Jammu.

4) Knowledge about location of key industries

While exploring the industrial areas, I found the addresses and contacts of the key
industries in region of Jammu. I personally met the commercial managers as well as the
production/ maintenance heads of the companies.

5) Hands on experience of sales

Being in the field is one of the most challenging aspects of any student of marketing. The
2 months period of internship gave me hands on experience of how to pitch the products
for sales, how to gain an insight into the mind of the end customer and how to efficiently
and effectively position one’s company’s products into the minds of the client.

6) An understanding of the purchase process in industries

The purchase process in industries is slightly different from general B2C purchase
process. It goes through several steps. The process that I was involved in is summarized
in the flowchart below:

FIGURE 8.1
Procurement Process

Meeting with Maintenance/Production

Head and Introduction to Stanley Hand
Tools

No Demand
Demonstration of the To be contacted
later
Stanley Hand Tools

There is Demand

Referred to Commercial Manager;

Meeting with Commercial Manager
 P a g e | 51

Prices not
acceptable
To be contacted
Call for Quotation pertaining to
later
Demand form Production/Maintenance

Purchase Order Released;

PO provided to the Distributor/ Sales
Officer

Note:
Spacing after “;”

7) Hands on experience of coordinating various activities

The training period helped me to learn, how to perform various daily activities on time.
E.g. Filed Work, reporting to local mentor, sending reports, handling ad-hoc queries, etc

Note:
Period after “etc”

IX. CONCLUSIONS AND RECOMMENDATIONS

During my period of internship I identified certain key issues of concern which were also
responsible for lower market share of Stanley Hand Tools.

 Stanley is not a much known brand in the region of Jammu.

 The companies are concerned more about price than quality.
 The companies where Stanley was introduced previously, there was no regular follow-ups
with the same.

Note:
1.Comma after “internship” in first line
2.”- “between “much” and “known”

My recommendations to Stanley Works are following:

1. Focus on the niche

 P a g e | 52

In Jammu, there are only a few plants that had their initial setup costs above Rs 500
crores. It is not sensible to waste efforts over convincing those industries to purchase our
tools which don’t purchase tools worth amount even Rs 10,000 a year. Stanley Works
should focus on the selected few which can become our permanent customers.

2. Regular follow ups

Regular follow-up with the companies is extremely important to maintain a long term
relationship with the companies. Thus, to ensure that companies give order to Stanley
Works, the sales force should regularly remain in touch with the company personnel met
previously.

Note:
“- “between “long” and “term”

3. Increase the Sales Force

It becomes difficult for the Sales officer to be in touch with all the companies of the
region, as they are sparsely located. The industrial areas are quite far from each other. The
company can appoint different sales officers to handle respective zones.

4. Setup Exclusive Outlet

Stanley Works has been planning to set up an exclusive outlet for Stanley Hand Tools in
Jammu city. The store should be opened as soon as possible. A store that displays tools
always adds to the company image.

Note:
“must” instead of “should” in line 2

5. Reseller Identification
Many companies have occasional demand of tools in case of their existing tools break.
Also, companies prefer buying from a local vendor rather than purchase in bulk from
distributors.
Stanley Works can identify several resellers in various zones who can purchase Stanley
Hand Tools from the distributor and stock them.

6. Newsletter, Emails
Stanley Works can send regular email and updates to the prospective clients about the
new products launched.
7. Tie Ups
Stanley Works can tie up with various automobile companies and distribute customized
kits with the cars. This will not only lead to brand promotion but also help in long term
relations with various automotive companies.

X. BIBLIOGRAPHY

1. Source: http://en.wikipedia.org/wiki/Hand_tool
2. Source: www.stanleytools.com
3. Source:www.blackanddecker.com
4. www.hand-tools-manufacturers.com/hand-tools-market.html
 P a g e | 53

5. Business Standard, March 16, 2010

6. www.jksidco.com
7. Company HR manual
8. Stanley Tools Product Brochure Vol.1 Year 2009

Note:
Space after “Source:”

APPENDIX A

B107 Standards

The B107 ASME series standard is given to various hand tools and accessories. The
Committee of B107 Standards operates under the American National Standards Institutes’
procedure. The B107 Committees are comprised of experts in the field of hand tools. These
standards are published by ASME after being approved by ANSI and ASME. The B107
standards on hand tools cover the complete general and dimensional data for hand tools,
including safety and other requirements.
 B107.1-1993 Socket Wrenches, Hand (Inch)

 B107.2-1995 Socket Wrenches, Extensions, Adaptors, and Universal Joints, Power

Drive (Impact) (Inch Series)

 B107.4M-1995 Driving & Spindle Ends for Portable Hand, Impact, Air, and
Electric Tools (Percussion Tools Excluded)

 B107.5M-1994 Socket Wrenches, Hand (Metric Series)

 B107.6-1994 Wrenches, Box, Angled, Open End, Combination, Flare Nut, and
Tappet (Inch Series)

 B107.8M-1996 Adjustable Wrenches

 B107.9M-1994 Wrenches, Box , Angled, Open End, Combination, Flare Nut, and
Tappet (Metric Series)

 B107.10M-1996 Handles and Attachments For Hand Socket Wrenches - Inch and
Metric Series
 P a g e | 54

 B107.11M-1993 Pliers, Diagonal Cutting, and Nippers, End Cutting

 B107.12-1997 Nut Driver (Spin Type, Screwdriver Grip) (Inch Series)

 B107.13M-1996 Pliers - Long Nose, Long Reach

 B107.14M-1994 Hand Torque Tools

 B107.15-1993 Flat Tip and Phillips Screwdrivers

 B107.16-1998 Shears (Metal Cutting, Hand)

 B107.17M-1997 Gages, Wrench Openings, Reference

Note:

1.Spacing is more after “Box” in line 16

2.”F” in “For” will not be capital in line 18

 B107.18M-1996 Pliers (Wire Twister)

 B107.19-1993 (R1998) Pliers, Retaining Ring

 107.20-1998 Pliers (Lineman's, Iron Worker's, Gas, Glass, Fence, and Battery)

 B107.21-1998 Wrench, Crowfoot Attachments (Inch Series)

 B107.22M-1998 Electronic Cutters

 B107.23M-1997 Pliers, Multiple Position, Adjustable

 B107.25M-1996 Pliers - Performance Test Methods

 B107.27-1996 Pliers, Multiple Position (Electrical Connector)

 B107.28M-1997 Electronic Torque Instruments

 B107.29M-1998 Electronic Tester, Hand Torque Tools

 B107.31M-1997 Screwdriver, Cross Tip Gaging

 B107.34M-1997 Socket Wrenches for Spark Plugs

 B107.35M-1997 Nut Drivers (Spin Type, Screwdriver Grip) (Metric Series)

 P a g e | 55

 B107.38M-1998 Electronic Pliers

 B107.41M-1997 Nail Hammers, Safety Requirements

 B107.42M-1997 Hatchets - Safety Requirements

 B107.43M-1998 Wood Splitting Wedges - Safety Requirements

 B107.44M-1998 Glaziers Chisels & Wood Chisels, Safety Requirements

 B107.45M-1998 Ripping Chisels and Flooring/Electricians' Chisels - Safety

Requirements

 B107.46M-1998 Stud, Screw, and Pipe Extractors - Safety Requirements

 B107.47M-1998 Metal Chisels - Safety Requirements

 B107.48M-1998 Metal Punches and Drift Pins: Safety Requirements

 B107.49M-1998 Nail Sets: Safety Requirements

 B107.50M-1998 Brick Chisels & Brick Sets: Safety Requirements

 B107.52M-1998 Nail Puller Bars - Safety Requirements

 B107.53M-1998 Ball Peen Hammers - Safety Requirements

 B107.54-2001 Heavy Striking Tools - Safety Requirements

 B107.55M-1998 Axes: Safety Requirements

 B107.56-1999 Body Repair Hammers and Dolly Blocks - Safety Requirements

 B107.57-2001 Bricklayers Hammers & Prospecting Picks - Safety Requirements

 B107.58-1998 Riveting, Scaling, Tinners Setting Hammers – Safety Requirements

Note:

“Tanners” in place of “Tinners”

 P a g e | 56

Source: www.hand-tool-manufacturers.com

APPENDIX B

Questionnaire to find out prime factors influencing the consumer purchase patterns for Hand
Tools in the region of Jammu.

1.) As the Quality of the tool improves, its price also increases.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

2.) The life of the tool is a key criterion of purchase.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

3.) The lead time for availability is usually not taken into consideration for purchase of
Hand Tools.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

4.) The Tool should be available in the local market.

 Strongly Agree
 Agree
 P a g e | 57

 Neither Agree nor Disagree

 Disagree
 Strongly Disagree

5.) In regular/ bulk transactions Discounts offered are the most critical aspect of
purchase.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

6.) It is important for the tools to confirm with International Standards.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

7.) After sales service is the most important aspect to have a good reputation.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

8.) High priced tools can be easily stolen.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree
 P a g e | 58

9.) At the end of the day what mattes the most is the use of Best Quality Tool.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree
10.) High quality tools are too sophisticated to be used by the industry worker.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

11.) Please provide your input for the following:

 Aware about Stanley Tools and used them previously.

 Aware about Stanley Tolls but not used them.
 Not Aware about Stanley Tools.

12.) Tool Brand being used presently

 Taparia/Everest/Venus
 Local Tools
 Tools Provided by Parent Company
 Stanley Tools
 Other

Note:

“Taparia” is not a mistake, it is an Indian company name (Proper noun) unknown to

Microsoft Word

APPENDIX D