Description
Calculation of the greatest amount of potential sales of a particular product in that product industry in a specific time period. The total market potential is calculated by multiplying the number of buyers in the market by the quantity purchased by the average buyer, by the price of one unit of the product.
CASE STUDY ON MARKET POTENTIAL OF FLOAT GLASSES IN CHENNAI REGION
SUMMER PROJECT REPORT
Submitted by
S.VIMALA REGISTER NO: 27348355 Under the Guidance of Mr. G.BALA SENDHIL KUMAR, B.E., M.B.A., M.Phil.
Faculty, Department Of Management Studies
in partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
DEPARTMENT OF MANAGEMENT STUDIES SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE PONDICHERRY UNIVERSITY PUDUCHERRY, INDIA SEPTEMBER 2007
SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE PONDICHERRY UNIVERSITY DEPARTMENT OF MANAGEMENT STUDIES BONAFIDE CERTIFICATE
This to certify that the project work entitled “ A STUDY ON MARKET POTENTIAL OF FLOAT GLASSES IN CHENNAI REGION “ is a bonafide work done by S.VIMALA [REGISTER NO: 27348355] in partial fulfillment of the requirement for the award of Master of Business Administration by Pondicherry University during the academic year 2007 – 2008.
GUIDE
HEAD OF DEPARTMENT
Submitted for Viva-Voce Examination held on
EXTERNAL EXAMINER
ACKNOWLEDGEMENT
I express my sincere thanks and deep sense of gratitude to our Management of Sri Manakula Vinayagar Engineering College, Puducherry, who supported us in all ways for doing this project. I am extremely grateful to Our Principal Dr. V.S.K. VENGATACHALAPATHY for providing necessary and essential facilities to do this project report. I express our sincere thanks and deep sense of gratitude to our Head of Department Mr.S.JAYAKUMAR, Department of Management Studies for providing an opportunity to do this project. I express a deep sense of gratitude to my Guide Mr.G.BALA SENDHIL KUMAR, Faculty, Department of Management Studies, for his encouragement, support and guidance to complete this project successfully. I convey my heartiest thanks to Mr.S.MANI Marketing Manager, ACE GLASS CONTIANERS LTD., Chennai, who kindly granted permission to do this project in their esteemed organization. I express him my sincere thanks for guiding me in all ways to do this project. I express my sincere thanks and deep sense of gratitude to all my Departments Staffs for giving suggestions and encouragement time to time in all possible ways. I thank my Parents, brothers and friends for giving me a valuable support to complete this project.
ABSTRACT
Market potential is the total sales volume that all organization sells during a stated time period in a specific market. Market potential certain number of brands in the market, trend of each major brand’s market share over the past several years, amount of money spent by major brands in advertising and price structure of the existing players. A study on market potential of float glasses in Chennai is done for ACE GLASSES CONTAINERS LTD., is a pioneer in glass containers manufacturing who tend to enter float glass market in the year 2007.The objective of the study is to know the potential of float glasses in Chennai market and to assess the opportunity of HNGIL to enter the float glass market. The questionnaire consist of 23 questions where data are collected from 60 samples, samples include wholesalers, retailers and building contractors in Chennai. The conclusion was reached using Percentage method, Chi square test, Rank correlation, Weighted average method and One-Way ANOVA method. This study gives the sales volume for last year and it identifies the consumers, and their choice of buying float glasses; it gives information about the facilities given by the market players to the customers to maintain customer relationship and the awareness media through which they increase their sales. This study would be useful for HNGIL while entering the float glass market. This study can be extended to national level to know the global markets potential.
TABLE OF CONTENTS
CHAPTER LIST OF TABLES LIST OF CHARTS I II III IV V VI VII VIII 1.1 COMPANY PROFILE 1.2 INTRODUCTION TO STUDY REVIEW OF LITERATURE OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS OF THE STUDY SUGGESTION, RECOMMENDATIONS & TITLE PAGE NO iv v 1 7 8 19 20 24 50 52 54 56
CONCLUSIONS LIMITATIONS & SCOPE FOR THE FURTHER STUDY ANNEXURE
LIST OF TABLES
S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 TABLE NAME AREA COVERED BY DEALERS IN CHENNAI REGION BRANDS AVAILABLE IN THE SHOWROOM MEDIA THROUGH WHICH DEALERS GOT AWARE OF THE BRANDS BRANDS THAT DEALERS PREFER TO SELL DEALER’S MAJOR CUSTOMERS THICKNESS PREFERED BY THE CUSTOMERS COLOURS PREFERED BY CUSTOMER DEALER’S IMMEDIATE SUPPLIERS PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS SERVICE PROVIDED BY THE SUPPLIERS RESPONDENTS FEELING ABOUT THE SERVICE GIVEN BY SUPPLIER RESPONDENTS FEELING REGARDING CASH DISCOUNTS GIVEN BY SUPPLIERS RESPONDENTS OPINION REGARDING THE PRICE FIXED RESPONDENTS SATISFACTION ON THE CREDIT DUES FACILITY DEALER’S OPINION REGARDING THE COMPLAINTS RESPONDENTS OPINION ON CORRECTIVE ACTIONS OF QUALITY PROBLEMS & COMPLAINTS COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND CUSTOMERS RESPONDENTS ATTITUDE ON GIVING RIGHT INFORMATION AT RIGHT TIME TO THE SUPPLIERS PROFIT MARGIN OF DEALERS ANALYSIS OF MARKET PLAYERS COMMUNICATION SYSTEM (USING CHI-SQUARE TEST -?2 ) COMPUTATION OF CHI-SQUARE (?2) TEST FACILITIES PROVIDED BY SUPPLIERS TO MAINTAIN CUSTOMER RELATIONSHIP (USING WEIGHTED AVERAGE METHOD) WEIGHTED AVERAGE CALCULATION THE SERVICES PROVIDED BY THE EXISTING PLAYERS ONE-WAY ANOVA CALCULATION A STUDY ON MUTUAL RELATIONSHIP BETWEEN THE PRICES AND THE SERVICES PROVIDED BY THE SUPPLIERS Page No 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 46 46 47 48 49
LIST OF CHARTS
S.No 1 2 CHART NAME AREA COVERED BY DEALERS IN CHENNAI REGION BRANDS AVAILABLE IN THE SHOWROOM Page No 24 25
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
MEDIA THROUGH WHICH DEALERS GOT AWARE OF THE BRANDS BRANDS THAT DEALERS PREFER TO SELL DEALER’S MAJOR CUSTOMERS THICKNESS PREFERED BY THE CUSTOMERS COLOURS PREFERED BY CUSTOMER DEALER’S IMMEDIATE SUPPLIERS PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS SERVICE PROVIDED BY THE SUPPLIERS RESPONDENTS FEELING ABOUT THE SERVICE GIVEN BY SUPPLIER RESPONDENTS FEELING REGARDING THE CASH DISCOUNTS GIVEN BY SUPPLIERS RESPONDENTS OPINION REGARDING THE PRICE FIXED RESPONDENTS SATISFACTION ON THE CREDIT DUES FACILITY DEALER’S OPINION REGARDING THE COMPLAINTS RESPONDENTS OPINION ON CORRECTIVE ACTIONS OF QUALITY PROBLEMS & COMPLAINTS COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND CUSTOMERS RESPONDENTS ATTITUDE ON GIVING RIGHT INFORMATION AT RIGHT TIME TO THE SUPPLIERS PROFIT MARGIN OF DEALERS
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42
CHAPTER - I INTRODUCTION
1.1 COMPANY PROFILE ? In 1994, The Company was incorporated as joint venture Company between IQ and Bulliarpur Industries Ltd.
? In 1998, IQ purchased the entire share of the venture, IQ is the largest manufacturer in glass containers in North America, South America and Asia Pacific region and second largest in Europe. Ace Glass Containers Ltd. has manufacturing facilities at Rishikesh in Uttranchal, Nashik in Maharashtra and Pondicherry, Rishra in West Bengal, Bahadurgarh with 42 production lines. The combined capacity of the furnace is approximately 2,72,000 tones, additionally company has applied Ceramic Labeling (ACL) capabilities in all the three locations. ? In 2002, Hindustan National Glass Ltd (HNGL) along with its associates has acquired the entire share of ACE. 1.1.1 MILESTONES ? In 1952, HNG Group inaugurated the first fully automatic glass container manufacturing plant at Rishra, near Calcutta (INDIA) ? The HNG Group was launched under the banner of Hindustan National Glass Manufacturing Co. Ltd., subsequently renamed Hindustan National Glass & Industries Ltd. (HNGIL). ? In 1964, HNGIL set up another plant at Bahadurgarh, near Delhi. ? In 2002, HNGIL acquire a loss making Multinational Unit Turned around OWENS BROCKWAY (INDIA) LTD., into a self-sustained profit making unit in the very first year. ? In 2005, the Group has acquired the Glass Division of L&T at Nashik, having one Furnace of 320 TPD melting capacity. 1.1.2 GROUP The other Companies under the HNG wing are ACE Glass Containers Ltd. (ACE), Glass Equipment (India) Ltd. (GEIL), Ceramic Decorators Ltd. (CDL), Somany Foam Limited (SFL) and Quality Minerals Ltd. (QML). Besides, there are number of Investment Companies, Partnership Firms and Charitable Trusts which are also part of the HNG Group. 1.1.2.1 Ace Glass Containers Ltd.
Ace Glass Containers Ltd. has its manufacturing facilities at Rishikesh (Uttranchal), Nashik (Maharashtra) and Pondicherry, Rishra (West Bengal), Bahadurgarh with 42 production lines. All the units are equipped with fully automatic state-of-the-art manufacturing processes. 1.1.2.2 Glass Equipment (India) Limited GEIL's state-of-the-art technology accounts for manufacture of sophisticated equipment for glass plants. It is also expert in manufacturing of critical spares for Glass container manufacturing industries and provides solutions in setting up glass plants on a turnkey basis. 1.1.2.3 Ceramic Decorators Limited CDL provides decorative printing on bottles with the latest machines and Lehrs. 1.1.2.4 Somany Foam Limited Project, being set up at BHEL Industrial Area, Haridwar to manufacture all types of foam with a Capital outlay of Rs.36 Crores. Commercial Production had commenced from April 2006. 1.1.3 ACHIEVEMENTS ? HNG Group is the undisputed market leader in the 6 ml - 3200 ml segment. Catering to around 70% of the Domestic Market in the pharmaceutical, beverage, processed food, cosmetic and liquor sectors covering industry majors like, Coca Cola, Dabur, glaxoWellcome, Nestle, Pepsi, Reckitt Benckiser (India) Ltd., and Smithkline Beecham, UB Group. ? Exports to South East, Middle East, Africa and First World Countries in Europe & North America. 1.1.4 PRODUCTION HNGIL is an acknowledged market leader of today and producing 6 million bottles per day ranging from 5 ml to 3200 ml containers for multifarious industries like pharmaceuticals, beverages, processed foods, cosmetics, liquors etc.
Ace Glass Containers Ltd. has its manufacturing facilities at Rishikesh (Uttranchal), Nashik (Maharashtra) and Pondicherry, Rishra (West Bengal), Bahadurgarh with 42 production lines. All the units are equipped with fully automatic state-of-the-art manufacturing processes. The Rishikesh unit has two furnaces of a combined capacity of 320 tones per day. The Pune unit has a furnace of 185 tones per day, capacity with SIS forming machinery. The Pondicherry unit is the newest and most technically capable plant with one furnace of 235 tones per day capacity. The design cell of HNG group is equipped with CAD-CAM facilities for designing and manufacturing moulds and mould accessories, and they offer containers of unique shapes and sizes in various colors. HNG group manufactures over 500 kinds of glass containers to cater to a diverse range of applications. 1.1.4.1 PRODUCT COLOR ? Amber ? Flint ? Green (including Georgia Green) 1.1.4.2 PRODUCT SIZE ? Size varies from 5 ml to 3200 ml
1.1.5 QUALITY 1.1.5.1 Quality Assurance Quality Control and R&D sections are well equipped with sophisticated instruments, which contribute to produce international quality containers. The instruments are ? Atomic Absorption Spectrophotometer ? Flame Photometer
? Ramp Pressure Tester ? Vertical Load Tester ? Profile Projector ? Impact Tester Automatic ? Thermal Shock Tester HNGIL with a strong Quality Control System in place (ISO-900/2000), is able to achieve ? Quick identification and rectification of defects ? Substantial reduction in job changeover and job upbringing time ? Shift from-Break Down Maintenance to Preventive Maintenance Philosophy. ? Higher KCR of 148 in 2005 as against 129 in 2000 ? PTM increased from 76% in 2000 to 86% in 2005 1.1.5.2 Quality checks ? Check over incoming raw materials and packing materials. ? Tight Glass Density Control as a routine tool for glass properties monitoring. ? Frequent Glass Analysis. Strong feedback loop to minimize defects at manufacturing stage itself. ? Tight on-line Quality Checks through. Computerized, Camera based and Lightbased Automatic Inspection Machines followed by visual inspection. ? Strength Tests to control Thermal Shock Resistance, Internal Pressure, uniformity of glass distribution, stacking strength and stress control (annealing). ? Use of Statistical Quality Tools before final release of Products. 1.1.6 CLIENTELE
? Pepsi Co., ? Coca-Cola ? Cadburys ? Nestle ? Raun Pollack ? Dabur ? Bayer ? Lakme ? Glaxo ? Pfizer ? Reckitt & Coleman ? Shaw Wallace ? UB group 1.1.7 COMPANY VISION “ To strive to be a major international producer of quality container glass by consistently following and adopting the most modern methods and techniques in an environment friendly manner with active involvement of its employees to meet the needs of its customers and stakeholders so as to achieve sustainable development and long term growth”. 1.1.8 MARKETING DEPARTMENT Senior Vice President –Marketing, heads the Marketing Department of the company. Under him there is three Regional Managers for three zones like North India, South India, West India. A marketing team which extent from Deputy Manager to Marketing Trainees.For South the regional office marketing is functioning in Chennai follows the Regional Manager.
1.1.8.1 Marketing Department Chart
Senior Vice President
Regional Manager North
Regional Manager South
Regional Manager West
Deputy Manager
Deputy Manager
Deputy Manager
Sales Executive
Sales Executive
Sales Executive
Marketing Trainee
Marketing Trainee
Marketing Trainee
1.2 INTRODUCTION TO THE STUDY HNGIL is a pioneer in manufacturing glass containers. They had planned to manufacture and introduce Float Glasses in the year 2009;hence they tend to analyze the market for float glasses through marketing potential.
The firm needs to augment its potential data with information about the competitive structure of individual market. They have started the market analysis from Chennai. These study on market potential certainness the following information about Chennai market. ? Number of brands in the market. ? Trend of each major brand’s market share, over the past several years. ? Amount of money spent by major brands in advertising currently and over the past several years. ? Price structure of the existing players ? Distribution structure with particular reference to leading retail outlets and exclusive distributor franchises.
CHAPTER – II REVIEW OF LITERATURE
2.1 DEFINING MARKET POTENTIAL
Market or sales potential must be stated for a given product or group of product for a given area for a given period of time, usually a year. Market potential is the total sales volume that all organization selling during a stated time period in a specific market could expect to achieve under ideal conditions. A market potential indicates how much of a particular product can be said to a particular market segment over some future period. The term potential refer to a maximum level of sales and assumes that all the marketing plans are sound and effecting implemented and all prospective customer with the desire and ability to buy do so. 2.1.1 Analyzing market potential The important steps in analyzing the market potential are 1.Market identification The first step in analyzing a products market potential is to identify its market identification requires finding out a. Who buy the products? b. Who uses it of? c. Who are the prospective buyers and/or users? 2.Market motivation The second step in analyzing market potential is to detect the reasons why customers buy the product and the reasons why potential customers might buy it. Market motivation studies answers the twins questions. Why do people buy and why don’t people buy? most explaining the buyer behavior of ultimate customers rather than industrial users. The information from motivation studies helps not only estimating a products market potential but also assist in deciding. a. How best to present the products in sale talk b. The relative effectiveness at different selling appeals c. The appropriateness of various promotional methods 3.Analysis of market potential. Having identified the potential buyers and their buying behavior their step is to analyze the market potential generally market potential cannot be analyses directly. So an analysis makes use of market factors. A market factor is a market potential. It is a two-stepped process. a) Select the market factors associated with the product demand
b) Eliminating those market segments that do not contain prospective buyer at the product. Market potential analysis is a strategic tool to identify market opportunities and invest resources where they will have the greatest return in the long run. Market potential analysis enables companies to: ? Categorize countries as lead markets, breakout markets or emerging markets. ? Quantify market potential for a given product by country, region or globally, now and in the future ? Identify growth drivers and barriers in those markets. ? Understand how to exploit growth markets by tailoring marketing; product development and production strategies to meet customer demands and overcome market barriers. 2.2 MARKET POTENTIAL INFLUENCERS Many forces influence market potential, but there are two broad sets of factors that are key: Demand Drivers and Inhibitors (Figure 1). Figure 1. Demand drivers for product
2.2.1 Demand Drivers Demand drivers are the factors that affect the size, readiness or exploitability of markets. Three are especially important.
? The first is the size and wealth of a market. This determines the number of households, companies, government agencies and other organizations that can actually afford to buy a product. This is not a simple calculation, and average figures such as total population and GDP per capita offer only a starting point. Other factors include household income distribution and the structure of the business sector. Much of the value of market potential analysis comes in calculating accurately the number of potential customers there are for a given product. ? The second is the utility of a product in a particular market. This varies according to the nature of the product and the characteristics of the market. For instance, if you are selling an English-only online service, the number of people who speak English in a given market will determine the value of the service. Similarly, if you are selling PCs for small businesses, the value of the systems will depend on how easily they can be networked and communicate internally. ? The third demand driver is the supporting infrastructure for a product. Frozen foods require refrigerators, and refrigerators require electricity, so the demand for frozen foods is dependent on the presence of reliable, affordable electrical power. For information and communication products, the necessary infrastructure can include telephone lines, satellite uplinks, and human resources such as skilled programmers, technicians and users. The quality of infrastructure generally corresponds to national wealth, but there are significant differences among countries at similar levels of wealth. 2.2.2 Demand Inhibitors Market potential in a given country can appear to be high, but actual demand remains low. This is usually due to the presence of demand inhibitors that either raise the cost or lower the utility of a product. An obvious example is a tax or tariff, which increases the price to final customers. Quotas and other trade barriers have the same effect. Some inhibitors such as tariffs are explicit and can be quantified, while others are less visible and can only be identified through in depth knowledge of a country. For example, the business model of companies, management culture, and labor environment (e.g., lifetime employment, strong unions) can inhibit demand.
2.3 Market Potential for Superfoods Analyzed According to a recent report from Datamonitor, New York, “Superfood & Drinks: Consumer Attitudes to Nutrient Rich Products,” the “superfood” food and beverage market is expected to double by 2011. The report builds on the momentum of several trends to point to potential growth opportunities for this market. Some of the current trends driving this include: • “Superfood” is a concept that has been popularized in the last two years; • Consumers are paying additional attention to diet and nutrition; • Consumers are increasingly opting for food and drinks with additional health-promoting benefits; • Consumers are increasingly incorporating more fruit into their diet; • Numerous superfood-status products are enjoying buoyant sales, especially in the United States where the concept is more widely promoted. 2.4 Market Potential for Cellulose Ethanol The Market for Cellulose Ethanol report from US government is an in-depth analysis of the prospects for the use of cellulose ethanol as a fuel. The report includes a comprehensive analysis of how cellulose ethanol is produced, its cost-effectiveness, the growth drivers promoting the use of ethanol over other fuels, the barriers to market, and much more. The report also focuses on the steps the government is taking to promote ethanol use, including tax incentives, funding for research and development, funding for technology, and other measures. The report also covers the basics of ethanol production; how ethanol differs from other fuels, and the benefits to consumers from using ethanol. 2.5 Assessment of the Market Potential of a New Product Combining Two Diabetes Medications, Pharmaceutical/Biotech, Brand Management An emerging biotechnology company was considering developing a new combination product and wanted to understand the market potential for this venture. To determine the likely market segmentation and pricing for this product, the client hired Campbell Alliance for assistance. The Campbell Alliance team developed an interactive forecast model to estimate the sales of such a product, then produced detailed forecasts for production, revenue, and profit/loss. Based on the results of these forecasts and the potential of the product, client decided to proceed with production and is currently constructing a manufacturing facility.
2.6 Market Potential for Computers and other Information Technologies Kenneth L. Kraemer and Jason Dedrick, Center for Research on Information Technology and Organizations, University of California, Irvine, CA 92697 May 1998,Working Paper: #ITR-149 This paper describes a methodology for estimating the market potential for computers and other information technologies. Market potential analysis is not market forecasting, although forecasting when the potential of a market might be realized can be part of the analysis. At base, market potential analysis sizes markets based upon a sequential and increasingly refined process from global or regional to national markets and business, consumer and other segments within national markets. 2.7 NEW-PRODUCT DEVELOPMENT The development of original products, product improvements, product modifications and new brands through the firm’s own R&D efforts. Major stages in new product development are 2.7.1 Idea Generation The systematic search for new product ideas. Major sources of new-product ideas include internal sources and external sources such as Customers, competitors, distributors and suppliers and others. 2.7.2 Idea screening Screening the new-product ideas in order to spot good ideas and to drop poor ones as soon as possible. 2.7.3 Concept Development and Testing 2.7.3.1 Product Concept A detailed version of the new-product idea stated in meaningful consumer terms. 2.7.3.2 Concept testing Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal. 2.7.4 Marketing Strategy Development Designing an initial marketing strategy for new product based on the product concept.
2.7.5 Business analysis A review of the sales, costs and profit projections for a new product is to find out whether these factors satisfy the company’s objectives. 2.7.6 Product Development Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product. 2.7.7 Test marketing The stage of new product development in which the product and marketing program are tested in more realistic market settings. 2.7.8 Commercialization Introducing a new product into the market. 2.8 MARKETING RESEARCH Market Research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing function facing an organization. Marketing research is the systematic objective and exhaustive search for a study of the facts relevant to any problem in the field of marketing .In order to understand the needs of buyer and their behavior; we have a tool called marketing research. It generates information for the decision markers to design and develop suitable product and to price it properly, to produce it effectively and to distribute it for the convenience of the buyer. Marketing research can help marketers assess market potential and market share; understand customer satisfaction and purchase behavior; and measure the effectiveness of pricing, product, distribution and promotion activities. The American Marketing Association defines marketing research as “Marketing is the function which links the consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problem; generate, refine and evaluate marketing actions, monitor marketing performance; and improve understanding of marketing as a process”.
2.8.1 Need for the marketing Research
a. The companies’ uses marketing research to measure the market potentials, characteristics of their markets, and their share of the markets. b. It is used to obtain information that could help them make short range and long range forecast. c. It is used to evaluate new product opportunities and acceptances, and to test the existing products relative to competitor’s product. d. They are useful in better advertising decisions. e. Marketing Research is a critical element that makes our marketing effort effective. 2.8.2 Scope of Marketing Research Marketing Research is used to find solution to any problem of marketing. It anticipates a problem or can diagnose any existing problem marketing research concern itself with any problem at marketing mix (four P’s of marketing – Product, Price, Promotion and Place). It brings corporate research also with its ambit. Marketing Research for the purpose of advertising and other marketing decision generally cover the following are
Marketing Research
Advertising Research
Product Research
Consumer Research
Sales Research
Corporate Research
2.8.2.1 Product Research Product Research can be conducted regarding concept and positioning of the product. Sales potential and sale forecasting for different products and market trend analysis form the major activities in this research. 2.8.2.2 Promotion Research Promotion Research is related to personal selling, advertising, public relation and sales promotion research. 2.8.2.3 Distribution Research
This research activity includes location and design for distribution outlets, transpiration and logistic studies, dealer’s surveys etc. 2.8.2.4 Price Research It includes pricing studies about elastic ties marginal analysis, cost analysis and perception regarding price. The Principal task of marketing Management is to fulfill the aspiration of the consumers like what they want; how they make the choice; or what are there source of information and influence processes etc .In this process an organization can identify new opportunities in the market; evaluating and monitor marketing actions and in general, evolve better marketing program to serve the interest at consumer. Thus market research acts as a link between the customer and the marketer. 2.9 CONSUMER BEHAVIOUR Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from Psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision-making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics and behavioral variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups and society in general. Consumer behavior essentially refers to how and why people make the purchase decisions they do. Marketers strive to understand this behavior so they can better formulate appropriate marketing stimuli that will result in increased sales and brand loyalty. There are a vast number of goods available for purchase, but consumers tend to attribute this volume to the industrial world's massive production capacity. Rather, the giant known as the marketing profession is responsible for the variety of goods on the market. The science of evaluating and influencing consumer behavior is foremost in determining which marketing efforts will be used and when. Marketers spend a great deal of time and money discovering what compels consumers to make such on-the-spot purchases. Market researchers obtain some of the best information through in-store research, and will often launch new products only in select small venues
where they expect a reasonable test of the product's success can be executed. In this manner, they can determine whether a product's success is likely before investing excessive company resources to introduce that product nationally or even internationally. 2.10 INTERPRETING CONSUMER BEHAVIOR There are two principal ways to evaluate the motivation behind consumer purchases. These are by direction (what they want) and intensity (how much they want it). Direction refers to what the customer wants from a product. Marketers need to understand the principal motivation behind each type of product to correctly target potential customers. The other way to evaluate consumer behavior, intensity, refers to whether a customer's interest in a product is compelling enough that they will go out and make the purchase. 2.11 INFLUENCING CONSUMER BEHAVIOR One of the best ways to influence consumer behavior is to give buyers an acceptable motive. This is somewhat related to the idea of asking what type of person would buy a certain product in evaluating consumer behavior. Consumers want to feel they're doing something good, being a good person, eating healthy, making contacts, keeping up appearances, or that they just deserve to be spoiled a little bit. If marketers can convince consumers that they need a product or service for some "legitimate" reason, customers will be more likely to make a purchase. 2.12 MOTIVATION Motivation refers to an activated state within a person that leads to goal-directed behavior. ? It consists of the drives, urges, wishes, or desires that initiate the sequence of events leading to a behavior. ? Motivation begins with the presence of a stimulus that spurs the recognition of a need. ? Need recognition occurs when a perceived discrepancy exists between an actual and a desired state of being ? Needs, can be either innate or learned.
? Needs are never fully satisfied. ? Feelings and emotions (I.e., affect) accompany needs ? Expressive needs involve desires by consumers to fulfill social and/or aesthetic requirements. ? Utilitarian needs involve desires by consumers to solve basic problems (e.g. filling a car’s gas tank). 2.13 DISTRIBUTION CHANNEL Distribution channel is defined as "all the organizations through which a product must pass between its point of production and consumption"
2.13.1 Functions of a Distribution Channel The main function of a distribution channel is to provide a link between production and consumption. Organizations that form any particular distribution channel perform many key functions:
Information Promotion Contact Matching Negotiation Physical distribution Financing Risk taking
Gathering and distributing market research and intelligence - important for marketing planning Developing and spreading communications about offers Finding and communicating with prospective buyers Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging Reaching agreement on price and other terms of the offer Transporting and storing goods Acquiring and using funds to cover the costs of the distribution channel Assuming some commercial risks by operating the channel (e.g. holding stock)
2.13.2 Numbers of Distribution Channel Levels Channel 1
Manufacturer
Consumer
Channel 2
Manufacturer Channel 3 Manufacturer
Retailer
Consumer
Wholesaler
Retailer
Consumer
Channel 4 Manufacturer Wholesaler Jobber Retailer Consumer
In the above figure, Channel 1 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. The remaining channels are "indirect-marketing channels". Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. Channel 3 contains two intermediary levels - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers’ goods and then breaks into the bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. This arrangement tends to work best where the retail channel is fragmented - i.e. not dominated by a small number of large, powerful retailers who have an incentive to cut out the wholesaler.
CHAPTER – III OBJECTIVES OF THE STUDY
? To assess the market for float glasses in Chennai region and to assess the opportunities for HNGIL to enter the market. ? To identify the existing market players, their marketing channel and the promotional activities they adapt. ? To understand the consumer choice of buying float glasses in this market. ? Finally to suggest measures based on the findings.
CHAPTER – IV RESEARCH METHODOLOGY
4.1.1 RESEARCH DESIGN The research design used was Descriptive one. It narrates the whole research in a simple manner. 4.1.2 TYPES OF DATA COLLECTED 4.1.2.1 Primary Data Questionnaires were prepared and interview was conducted. Most of the questions are of multiple choices. The Questionnaires were framed in English. Generally 22 Questions are framed and the data are collected from the glass dealers in Chennai region. 4.1.2.2 Secondary Data Secondary data was collected from Internet, various books, journals and Company Records. 4.1.3 QUESTIONNAIRE CONSTRUCTION Questionnaire was constructed in three formats i. ii. iii. Multiple choices Close ended Open ended
4.1.4 DEFINING THE POPULATION The population or universe can be finite or infinite. The population is said to be finite if it consist of a fixed number of elements so that it is possible to enumerate it in its totality. So in this project consist of finite population. 4.1.5 SAMPLE SIZE Nearly 60 samples were taken from Chennai and the data was collected.
4.1.6 FIELDWORK PERIOD OF STUDY The fieldwork is done at Chennai regions like Arumbakkam, Choolai, Parrys, VadaPalani, MMDA, T.Nagar, Panagal Park, Kodampakkam, Adayar and Ashok Nagar. 4.1.7 PERIOD OF STUDY The period is from August 1,2007 to September 13,2007. 4.1.8 DESCRIPTION OF STATISTICAL TOOLS USED ? Percentage method ? Chi-square test ? Weighted average ? Rank Correlation ? One Way ANOVA
4.2 PERCENTAGE METHOD:
In this project Percentage method test was used. The following are the formula No of Respondent Percentage of Respondent = Total no. Of Respondents 4.3 CHI-SQUARE ANALYSIS: In this project chi-square test was used. This is an analysis of technique, which analyzed the stated data in the project. It analysis the assumed data and calculated in the study. The Chi-square test is an important test amongst the several tests of significant developed by statistical. Chi-square, symbolically written as x2 (Pronounce as Ki-Spare), is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance. x 100
Formula, (O-E) 2 ?2 =
E
O E = = Observed frequency Expected frequency
4.4 WEIGHTED AVERAGE METHOD ? Weighted average can be defined as an average whose component items are multiplied by certain values (weights) and the aggregate of the products are divided by the total of weights. ? One of the limitations of simple arithmetic mean is that it gives equal importance to all the items of the distribution. ? In certain cases relative importance of all the items in the distribution is not the same. Where the importance of the items varies. ? It is essential to allocate weight applied but may vary in different cases. Thus weight age is a number standing for the relative importance of the items. 4.5 RANK CORRELATION Pearson’s correlation coefficient measures an accurate degree of correlation between two variables. Two variables tend to correlate when the change in value of one variable causes corresponding change in the value of the other variable. 4.6 ONE -WAY ANOVA The basic principle of ANOVA is to test for difference among the means of the populations by examining the amount of variation within the each of these samples, relative to the amount of variation between the samples. In One-way ANOVA only one factor is
considered and then observe that the reason for said factor to be important is several possible types of samples can occur within that factor. In short, we have to make two estimates of population variance viz., one based on between samples variance and based on within samples variance. Then said two estimates of population variance are compared with F-test, wherein we work out. Estimate of population variance based on between samples variance F = Estimate of population variance based on within samples variance
CHAPTER – V DATA ANALYSIS AND INTERPRETATION
TABLE 5.1 AREA COVERED BY DEALERS IN CHENNAI REGION AREA
North
S.No 1 2 3 4 5 Source : Primary Data West South East
NO.OF RESPONDENTS PERCENTAGE 18 2 8 0 32 60 30 3.33 13.33 0 53.33 100
All the above TOTAL
Inference: From the above table it is inferred that 53.33% of dealers trade all over the Chennai region, 30% of them cover North of Chennai, 13.33% of them cover South of Chennai and 3.33% of them trade in West Chennai. CHART: 5.1
TABLE 5.2 BRANDS AVAILABLE IN THE SHOWROOM BRAND
Saint Gobain
S.No 1 2 3 4 5 6 Asahi
NO OF RESPONDENTS 24 2 10 2 10 12 60
PERCENTAGE 40 3.33 16.66 3.33 16.66 20 100
Modi Guard Triveni Imported All the above TOTAL
Source : Primary Data Inference: The above table states that 40% of Dealers sell Saint Gobain float glasses, 16.66% of them deal with Modi Guard and Imported from Indonesia, China, Thailand, Gujarat, Pakistan, 3.33% of sell Asahi and Triveni and 20% of deal with all the above brands. CHART 5.2
TABLE 5.3
MEDIA THROUGH WHICH DEALERS GOT AWARE OF THE BRANDS MEDIA
Advertisement
S.No 1 2 3 4 5 6
NO OF RESPONDENTS 8 38 2 0 8 4 60
PERCENTAGE 13.33 63.33 3.33 0 13.33 6.6 100
Manufactures/Dealers Friends Newspaper/magazines All the above No response TOTAL
Source : Primary Data Inference: The above table shows 63.33% Dealers got awareness about the Brands mainly from the Manufactures, 13.33% of them got aware from Advertisement, 3.3% of them through friends and 13.33% of them got awareness from all the above media, where 6.66% of Dealers gave no response since they continued this business from their Parents. CHART 5.3
TABLE 5.4 BRANDS THAT DEALERS PREFER TO SELL
S.No 1 2 3 4 5 6 Asahi
BRAND
Saint Gobain
NO OF RESPONDENTS 28 4 10 4 0 14 60
PERCENTAGE 46.66 6.66 16.66 6.66 0 23.33 100
Modi Guard Triveni Others All the above TOTAL
Source : Primary Data Inference: This table states which brand do Dealers wish to sell, mostly 46.66% of Dealers which to sell Saint Gobain Float glasses, 16.66% of them prefer to sell Modi Guard,6.66% wish to deal with Asahi and Triveni and 23.33% of dealers prefer to trade all the above brands, whereas among the 60 respondents no one wish to sell other brands rather than these four brands. CHART 5.4
TABLE 5.5 DEALER’S MAJOR CUSTOMERS
S.No 1 2 3 4 5 6 7 8
CUSTOMERS
Commercial enterprises
NO OF RESPONDENTS 4 8 0 2 8 0 2 36 60
PECENTAGE 6.66 13.33 0 3.33 13.33 0 3.33 60 100
Builders & Architect Government Agencies Institutions Home Users Bank & ins company Others All the above TOTAL
Source : Primary Data Inference: This table infers 13.33% of respondent’s major customers are Builders, Architect and home users, 6.66% of customers are Commercial Enterprises, 3.33% of buyers are Institution and others, thereby 18 respondents out of 30 sell float glasses to all the above customers. CHART 5.5
TABLE 5.6 THICKNESS PREFERED BY THE CUSTOMERS
S.No 1 2 3 4
THICKNESS in mm
2-12
NO OF RESPONDENTS 52 0 0 8 60
PECENTAGE 86.66 0 0 13.33 100
13-15 19 All the above TOTAL
Source : Primary Data Inference: This states 86.66% dealers of sell 2mm, 2.5mm, 3mm, 4mm, 5mm, 6mm, 8mm, 10mm and 12mm thick float glasses, and 13.33% of respondents sell all the above thickness as per the order they get from customers and rarely sell 13mm, 15mm and 19mm which are mainly imported brands. CHART 5.6
TABLE 5.7 COLOURS PREFERED BY CUSTOMER
S.No 1 2 3 4 5 6
Clear
COLOURS
NO OF RESPONDENTS 20 4 2 0 0 34 60
PECENTAGE 33.33 6.66 3.33 0 0 56.33 100
Bronze Grey Blue Green All the above TOTAL
Source : Primary Data Inference: The above table states from the 60 respondents 34 of them says customers prefer all the above colors, where as 20 of them suggest only clear, four of them says bronze and two say grey color. CHART 5.7
TABLE 5.8 DEALER’S IMMEDIATE SUPPLIERS
SUPPLIERS S.No 1 2 3 4
Manufacturers
NO OF RESPONDENTS 36 2 16 6
PECENTAGE 60 3.33 26.66 10 100
C&F Wholesalers Retailers TOTAL
60
Source : Primary Data Inference: This table concludes 60% of suppliers are Manufacturers, 26.66% of suppliers are Wholesalers, 10% of them are retailers and 3.33% of suppliers are C&F. CHART 5.8
TABLE 5.9 PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS
S.No 1 2 3 4 5 6
PROMOTIONAL ACTIVITIES
Offers
NO OF RESPONDENTS 16 2 0 14 10 18
PECENTAGE 26.66 3.33 0 23.33 16.66 30 100
Gifts Promotional novelties Others All the above None TOTAL
60
Source : Primary Data Inference: This table shows the promotional activities carried down by the suppliers and their effort in promoting their sales.26.66% of suppliers promote their customers by giving offers, 23.33% of suppliers conduct meeting, get together, parties and give awards to the customers to make them loyal,16.66% of them do all the above activities to promote the customer to buy only their product, where 3.33% of them give only gifts to increase their sales. CHART 5.9
TABLE 5.10 SERVICE PROVIDED BY THE SUPPLIERS
S.No 1 2 3 4 5
SERVICE PROVIDED
Transportation
NO OF RESPONDENTS 4 18 2 24 12 60
PECENTAGE 6.66 30 3.33 40 20 100
Immediate order fulfillment Scratch warranty All the above No such service TOTAL
Source : Primary Data Inference: This table gives an idea about the various services provided by the suppliers to their customers. Nearly 40% of the suppliers provide all the above services, where 30% provide only immediate order fulfillment service, 6.66% give Transportation service, 3.33% give Scratch Warranty but 20% of dealers say Suppliers does not provide such services. CHART 5.10
TABLE 5.11 RESPONDENTS FEELING REGARDING THE SERVICE PROVIDED BY THE SUPPLIERS
SERVICE PROVIDED S.No 1 2 3 4
Very good
NO OF RESPONDENTS 20 30 10 0
PECENTAGE 33.33 50 16.66 0 100
Good Average Poor TOTAL
60
Source : Primary Data Inference: From the table it is inferred that 50% of respondents says the service provided by the suppliers is good and 33.33% of the says their service is very good, where 16.66% of them say the service given is average but no one responded as the service is poor. CHART 5.11
TABLE 5.12
RESPONDENTS FEELING REGARDING THE CASH DISCOUNTS GIVEN BY SUPPLIERS DISCOUNT FACILITY SATISFACTION
Yes
NO OF RESPONDENTS 34 26
PECENTAGE 56.66 43.33 100
S.No 1 2
No TOTAL
60
Source : Primary Data Inference: Above table states 56.66% of suppliers give cash discount when the amount is paided before the due date, these respondents are mostly wholesalers, they even included, manufacturers give cash discount when they order more than two trucks and generally all the imported brands give discount. But 43.33% of the respondents say they do not provide discount facilities, these respondents are mainly retailers. CHART 5.12
TABLE 5.13 RESPONDENTS OPINION REGARDING THE PRICE FIXED PRICE FIXED
Very high
S.No 1 2 3 4 5 High
NO OF RESPONDENTS 8 12 36 0 4 60
PECENTAGE 13.33 20 60 0 6.66 100
Moderate Low No response TOTAL
Source : Primary Data Inference: This table shows how the customers feel about the price fixed by the suppliers.60% of the respondents feel the price fixed is moderate and affordable. 20% of them feel the price is high, 13.33 of them says the price is very high. And 6.66% of them do not respond to this question since feel the price fluctuates often because of competitive pricing. CHART 5.13
TABLE 5.14 RESPONDENTS SATISFACTION ON THE CREDIT DUES FACILITY CREDIT DUE SATISFACTION S.No 1 2
Yes
NO OF RESPONDENTS 42 18
PECENTAGE 70 30 100
No TOTAL
60
Source : Primary Data Inference: Above table shows the satisfactory response of the customers for the credit dues given by the customers.70% of the customers are satisfied with the present credit dues, where the payment as to be made in 60 days, whereas the 30% of the customer are not satisfied with credit dues, these unsatisfied customers are mainly retailers they wish 90days credit dues. CHART 5.14
TABLE 5.15 DEALER’S OPINION REGARDING THE COMPLAINTS COMPLAINTS RECEIVED
Yes
NO OF RESPONDENTS 10 49 10 60
PECENTAGE 16.66 66.66 16.66 100
S.No 1 2 3 No
Sometimes TOTAL
Source : Primary Data Inference: From the above table its clear that 16.66% of dealers receive complaints and 66.66% of respondents says they do not receive complaints, where 16.66% of them replied they receive complaints sometimes. CHART 5.15
TABLE 5.16 RESPONDENTS OPNION ON CORRECTIVE ACTIONS OF QUALITY PROBLEMS & COMPLAINTS CORRECTIVE ACTIONS TAKEN
Yes
NO OF RESPONDENTS 38 18 4
PECENTAGE 63.33 30 6.66 100
S.No 1 2 3
No Rare TOTAL
60
Source : Primary Data Inference: Above table shows whether the supplier take corrective actions immediately regarding the complaints and quality problems.63.33% of the respondents say the suppliers take immediate action regarding the problems, 6.66% of them says the rarely taken corrective action but 30% of the respondents says they do not take corrective action, the suppliers tend delay the action as the problem get dilute after a long period. CHART 5.16
TABLE 5.17 COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND CUSTOMERS COMMUNICATION SYSTEM
Highly effective
NO OF RESPONDENTS 12 32 0 6 60
PECENTAGE 36.66 53.33 0 10 100
S.No 1 2 3 4
Effective Not very effective Not at all effective TOTAL
Source : Primary Data Inference: This table shows how customers feel about the communication system with the suppliers.53.33% of the dealers say they have effective communication with suppliers.36.66% of customers feel their communication with suppliers is very effective, these respondents are mainly wholesalers. But 10% of respondents feel their communication is not at all effective, these respondents are mainly retailers. This table infers the manufacturers take extra effort to maintain customer relationship. CHART 5.17
TABLE 5.18 RESPONDENTS ATTITUDE IN GIVING RIGHT INFORMATION AT RIGHT TIME TO THE SUPPLIERS SUGGESTIONS GIVEN
Yes
S.No 1 2 3 No
NO OF RESPONDENTS 22 32 6 60
PECENTAGE 36.66 53.33 10 100
No response TOTAL
Source : Primary Data Inference: Above table infers 36.66% of the customers give right information to their suppliers at the right time, mainly the information given by the customers are regarding the demand for the product and the improvement needed in the product, these respondents are mainly Wholesalers. 53.33% of the customers say suppliers, do not get suggestions from them, these respondents are mainly retailers. CHART 5.18
TABLE 5.19 PROFIT MARGIN OF DEALERS PROFIT MARGIN in %
5-10
S.No 1 2 3 4 5
NO OF RESPONDENTS 24 16 4 6 10 60
PERCENTAGE 40 26.67 6.66 10 16.66 100
11-20 21-30 above 30 No response TOTAL
Source : Primary Data Inference: The above table shows the selling profit margin of the respondents in %. 40% of the respondents fix 5-10 % of profit margin, these respondents are mainly retailers.26.66% of the respondents say get profit of 11-20%, 6.66% of them get 21-30% and 10% of them get profit above 30,these respondents are mostly wholesalers. Whereas 16.66% of the respondents refused to reveal their profit margin CHART 5.19
ANALYSIS OF MARKET PLAYERS COMMUNICATION SYSTEM (USING CHI-SQUARE TEST -?2 ) Null Hypothesis: Existing market players are independent to the effectiveness of communication system. Alternate Hypothesis: Existing market players are dependent to the effectiveness of communication system. TABLE 5.20 EXISTING PLAYERS AND THEIR EFFECTIVE COMMUNICATION SYSTEM COMM.S/M NOT AT MARKET S.NO 1 2 3 4 5 PLAYERS SaintGobain Asahi ModiGauard Triveni Others VERY NOT ALL EFFECTIVE EFFECTIVE EFFECTIVE EFFECTIVE TOTAL 9 1 7 0 0 17 13 7 9 2 2 33 0 0 0 3 2 5 0 0 0 1 4 5 22 8 16 6 8 60
TOTAL Source : Primary Data FORMULA:
(O-E) 2 ?2 = E O E = = Observed frequency Expected frequency TABLE 5.21
COMPUTATION OF CHI-SQUARE TEST(? 2)
S.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
O 9 1 7 0 0 13 7 9 2 2 0 0 0 3 2 0 0 0 1 4
E 6.23 2.26 4.53 1.7 2.26 12.1 4.4 8.8 3.3 4.4 1.83 0.66 1.33 0.5 0.66 1.83 0.66 1.33 0.5 0.66 TOTAL
O-E 2.76 -1.26 2.46 -1.7 -2.26 0.9 2.6 0.2 -1.3 -2.4 -1.83 -0.66 -1.33 2.5 1.33 -1.83 -0.66 -1.33 0.5 3.33
(O-E)2 7.65 1.60 6.08 2.89 5.13 0.81 6.76 0.04 1.69 5.76 3.36 0.44 1.77 6.25 1.77 3.36 0.44 1.77 0.25 11.11
(O-E)2/E 1.22 0.70 1.34 1.7 2.26 0.06 1.53 0.01 0.51 1.31 1.83 0.66 1.33 12.5 2.66 1.83 0.66 1.33 0.5 16.67 50.67
Calculated value =50.67 Degree of freedom = (R-1)(C-1) = (5-1)(4-1) = 12
Level of Significance = 5% Table value 12 of DGF at 5% level of significance = 21.026 Calculated Value 21.026 is greater than Tabulated value 50.67 Hence, Null Hypothesis is rejected. Result: From the above calculation, it is inferred that the existing players dependent on the effectiveness of communication system i.e. from the survey it is clear that to survive in this market the manufactures must have effective communication with the customers/dealers.
TO FIND THE CUSTOMERS PREFERENCE REGARDING THE FACILITIES PROVIDED BY THE SUPPLIERS TO MAINTAIN CUSTOMER RELATIONSHIP (USING WEIGHTED AVERAGE METHOD) The respondent’s preferences to the facilities provided by the suppliers to promote sales and maintain customer relationship. TABLE 5.22 FACILITIES PROVIDED BY SUPPLIERS TO MAINTAIN CUSTOMER RELATIONSHIP
S.NO 1 2 3 4
FACILITIES
Discount
YES 34 42 38 22 TABLE 5.23
SOMETIMES 0 0 4 6
NO 26 18 18 32
Credit Dues Corrective actions Info/Suggestion
Source : Primary Data WEIGHTED AVERAGE CALCULATION POINT WEIGHTAGE S.NO 1 2 3 4 Inference: The above table infers that the customers give more weight age to credit dues facilities rather than discount facilities and corrective actions taken by the suppliers for any complaints. ANALYSING THE DIFFERENCE BETWEEN THE SERVICES PROVIDED BY THE EXISTING PLAYERS (USING ONE – WAY ANOVA) FACILITIES Discount Credit Dues Corrective actions Info/Suggestion 3 YES 102 126 114 66 2 SOMETIMES 0 0 8 12 1 NO 26 18 18 32 TOTAL AVERAGE RANK 128 144 140 110 2.133333 2.4 2.333333 1.833333 3 1 2 4
Null Hypothesis: There is no significant difference between the services provided by the existing market players. Alternate Hypothesis There is a significant difference between the services provided by the existing market players. TABLE 5.24 SERVICES FROM EXISTING MARKET PLAYERS S.No 1 2 3 SAINT GOBAIN 9 11 4 ASAHI 3 4 1 MODIGUARD 4 7 2 TRIVENI 0 2 3 OTHERS 1 5 0
Source : Primary Data T1 = 9+11+4 = 24 T2 = 3+4+1 = 8 T3 = 4+7+2 = 13 T4 = 0+2+3 = 5 T5 = 1+5+0 = 6 T = T1+T2+T3+T4+T5 = 56 1 (T1) 2 (SSTr) = n1 + n2 (T) 2 SST = SumSum2 n *Sum of squares errors (SSE) =SST – SSTr 1 (T2) 2 + n3 1 (T3) 2 + n4 1 (T4) 2 + n5 1 (T5) 2 n 1 (T) 2
1(562 ) SST = 352 – 15 SSTr = 81 SSE = 143 – 81 = 62 ONE-WAY ANOVA CALCULATION TABLE 5.25 SOURCES OF VARIANCE
Existing players
= 143
DEGREES OF FREEDOM 4 10
SUM OF SQUARES 143 62
MEAN SUM OF SQUARES 35.75 6.2
F
Error
5.76
Degrees of freedom (4,10) = 3.48 @ 5% Level of significance Calculated value is greater than Tabulated value Hence Null Hypothesis is rejected. Result: There exist a significant difference between the services provided by the existing players.
TO FIND THE CORRELATION BETWEEN THE SERVICE AND PRICE OF THE SUPPLIERS TABLE 5.26 A STUDY ON MUTUAL RELATIONSHIP BETWEEN THE PRICES
AND THE SERVICES PROVIDE BY THE SUPPLIERS SERVICE S.No 1 2 3 4 (X) 20 30 10 0 PRICE (Y) 8 12 36 4 rx 2 1 3 4 ry 3 2 1 4 d=rx-ry -1 -1 2 0 ? d2 Source : Primary Data FORMULA: 6 x ?d2 rc = 1 n3 – n 6x6 rc = 1 43 – 4 RESULT: The respondents feel the price fixed by the suppliers is less positively correlated with the service provide by the suppliers. = 0.4 d2 1 1 4 0 6
CHAPTER – VI FINDINGS OF THE STUDY
From the study it is observed that, most of the respondent sell 100-500 pieces of float glasses per year. They cover sales in all the places of Chennai. And they deals with all the available brands in the market including the imported float glasses from Indonesia, China, Thailand, Gujarat and Pakistan. This study says respondents’ last year sales % as 85% of the SaintGobain glasses, 60% of Asahi glasses, 75% of ModiGuard glasses, 25% of Triveni glasses. The respondent of 63% prefer to SaintGobain glasses, 17% want to sell ModiGuard and 23% prefer to sell all the brands. The respondents major suppliers are 60 % manufactures, 27% Wholesalers and 10% of Retailers. The respondents think the prices fixed by the Suppliers are moderate. The respondents says the receive complaints rarely. Most of respondents conclude the suppliers do not take corrective actions immediately. The respondents feel they have effective communication with the suppliers. Respondents feel price fluctuation is a major problem in this market. The respondents ranked the attributes according to customer preference as first rank to Brand name, followed by thickness, colours and price. Most respondents say they fix profit margin of 5-10%. The respondents ranked the existing players as follows 1st rank – SaintGobain 2nd rank - ModiGuard 3rd rank – Asahi 4th rank – Triveni The existing players adopt level3 distribution channel, which is suppliers to wholesalers, wholesalers to retailers, retailers to end-users. The existing market players make their product aware to the public through advertisement and they directly approach the dealers to do business. Most Suppliers give Offers and gifts and conduct get together parties and meeting to encourage their customers. Suppliers provide services like immediate order fulfillment and Transportation facilities where they included the transportation charges in the bills. Suppliers allow cash discount if payment is made immediately and if they order for more than two trucks of goods. Suppliers provide Credit dues for 60 days.30% of the Dealers are unsatisfied with credit dues.
The major users of float glasses are Home Users, Builders & Architects, Commercial Enterprises and Institutions. The customers mostly prefer 12mm; 5mm, 6mm, 4mm, 4.5mm, 3.5mm, 8mm and 10mm thickness float glasses. The customers mostly buy clear, bronze and Grey colour float glasses. Price structure for the product (in Rs) for last year based on the thickness (in mm) In mm
3.39 Brands SaintGobain Asahi 15.50 Modiguard
4.4.9 22 17.50
5 27 21.50 23
6 31 26.25 38
8 47 37 55
10 59 47
12 66 56 75
19 220
CHAPTER - VII SUGGESTION & RECOMMENDATION
? This study conveys maintaining customer relationship is very essential to survive in this market so the company can have effective communication system to attract and retain customers. ? The existing market players give cash discount to the customers who pay their bills immediately and for those who order more than two trucks of products, the company can give discount to all the consumers. ? The credit dues date increment is the major expectation from the consumers, so the company can concentrate more in credit due dates. ? The company can create trust among the consumer by taking immediate corrective actions for the problems like shortage, breakage and incorrect thickness. ? The company can use advertisement as a tool to make aware of their product to the public. ? The company can adapt suitable measures to reduce price fluctuation, which is considered to the major problem in this market.
CONCLUSION
This study on market potential of float glasses in Chennai region infers the opportunity for HNGIL to enter into the Float glass market in the year 2009. It gives clear information to company regarding the existing market players and the consumers buying behavior of float glasses. With the available data the company can take necessary steps to position its brand in the target market.
CHAPTER – VIII LIMITATIONS
? The study is made on small population of sample size 60. ? The time duration of the study is less than the expected. ? The few respondents do not reveal their true sales volume, purchase price and selling price of the glasses. ? Existing market players after sales services is unknown.
SCOPE FOR THE FURTHER STUDY
? The project throws light on the opportunities for any Organization who tends to enter into the Float Glasses market. ? This study can be basic for market potential analysis. ? This study is done only in Chennai region that can be extended to various other regions, States and Nations. ? This project will be helpful for the students who do project in the related area.
ANNEXURE-I QUESTIONNAIRES
DEALER’S NAME:………………………………….. ADDRESS:……………………………………………. ………………………………………………………… ………………………………………………………… Contact Ph:……………………….. Tick the appropriate one. 1. Which area / part do you cover in the Chennai region? a) North b) South c) West d) East e) All the Above
2. What are the different brands of Glass that are available at your showroom? ? Saint Gobain ? Asahi [Asahi India Glass Ltd.] ? Triveni ? Modi Guard ? Others ? Imported glass, (a) Country Name…………………(b) Brand Name………. ? All the above 3. Through which media you got most awareness about? In no Advertisement Brands Saint Gobain Asahi Modi Guard Newspaper Friends and magazines All the media
Manufactures/ Dealers
No response
Triveni Imported 4. Which is / are the brand of Float Glasses you prefer to sell? Why? a) Saint Gobain b) Asahi c) Modi Guard d) Triveni e) Others f) All the above 5. What is your last year sales volume in nos? a) 100-500 b) 501-1000 c) 1001-1500 d) 1501-2000 specify, ………………….
6. Which brand of Glass sells maximum & if possible what is the % of sales for last year? Brand name Saint Gobain Asahi Modi Guard Triveni --------------------Rank --------------------Sales%
7. Who are your major Customers? a) Commercial enterprises b) Builders and Architect c) Government agencies d) Institutions d) Home users e) Banks and Insurance companies g) Others …………………. h) All the above (i.e.) OEM units, Industries and Distributors
8. What is the thickness, which most of the customers prefer? Tick the appropriate one. In mm Brands Saint Gobain Asahi Modi Guard Triveni Imported 2-12 13-15 19 All the above
9. What colour, do most of the customers prefer? a) Clear b) bronze c) grey d) blue e) green f) All the above 10. Please rank the following attributes of Float Glass, on the basis of importance, which the customer’s prefer to buy. (1 is most aware, 5 is least aware) Attribute a) Brand name b) Rate c) Thickness d) Colour e) Any other Rank -------------------------------
11. Who is / are your immediate suppliers? a) Manufacturer b) C & F
c) Whole Sale dealer d) Retailer
12. Through what way(s) your suppliers motivate you? Factors Offers Brands Saint Gobain Asahi Modi Guard Triveni Imported Gifts
Promotional Novelties
Others
All the above
None
13. What kind of services do suppliers provide? In nos Transportations Brands Saint Gobain Asahi Modi Guard Triveni Imported 14. How is the service provided? In nos Brands Saint Gobain Asahi Modiguard Triveni Imported Very Good Immediate order fulfillment Scratch Warrant All the above No service
Good
Average
Poor
15. Do your suppliers provide any discount facilities to you? Factor Brands Saint Gobain Asahi Modi Guard Triveni Imported
Yes
No
16. How do you feel about the price fixed by your suppliers? Factors Brands Saint Gobain Asahi Modi Guard Triveni Imported
Very High
High
Moderate
Low
No response
17. Are you satisfied with the present credit due date provided by them? In nos Brands Saint Gobain Asahi Modi Guard Triveni Imported
Yes
No
18. Do you receive complaints from Customer regarding the Glass you supply? Factors Brands Saint Gobain Asahi
Yes
No
Sometimes
Modi Guard Triveni Imported If yes, i) Which brand(s) of Glass receives more complaints? a. Saint-Gobain b. Asahi c. Triveni d. Modiguard e. Others ii) How many complaints do you receive monthly? Tick the appropriate one in all the Brands. In nos Brands Saint Gobain Asahi Modi Guard Triveni Imported More than 10
Rare
1- 5
5 -10
iii) What type(s) of complaints do you receive from customers? a) --------------b) ---------------
19. Does your supplier immediately take corrective actions regarding the quality problem and complaints? Factors Brands Saint Gobain Asahi Modiguard Triveni Imported Yes
No
Rare
20. How do you feel about the Communication system between you and your suppliers regarding the marketing and complaints? Facto rs Brands Saint Gobain Asahi Modiguard Triveni Imported 21. Do you give information on product features, price, customer expectation, and marketing demand to your supplier [at right time]? Factors Brands Saint Gobain Asahi Modiguard Triveni Imported 22. Purchase Price of the Brands In mm Brands
Saint Gobain
High Effective
Effective
Not Very Effective
Not at all effective
Yes
No No response
0-1.9
2-2.9
3-3.9
4-4.9
5
6
8
10
12
1315
19
Others
Asahi Modi Guard Triveni Imported 23. Profit margin of customers
Profit margin in % Brands Saint Gobain Asahi Modi Guard Triveni Imported
0-5 %
5-10%
10-15 %
15-20%
23. If any suggestions please feel free to pen it below. -----------------------------------------------------------------
ANNEXURE – II BIBILIOGRAPHY
BOOKS:
1. Kothari, C.R., Research Methodology-Methods & Techniques, New Delhi, New Age International (P) Ltd., Second Edition, 2004. 2. Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons Publishers, Thirty Fourth Editions, 2005. 3. Philip Kotler, Kevin Lane Keller, Abraham Koshy, Marketing Management, New Delhi, Twelfth Edition, 2006. WEBSITES: 1. www.hngil.com 2. www.msn.com/market potential 3. www.wikipedia.com/distribution channel 4. www.tutorial4u.com/consumer behavior
doc_767786481.doc
Calculation of the greatest amount of potential sales of a particular product in that product industry in a specific time period. The total market potential is calculated by multiplying the number of buyers in the market by the quantity purchased by the average buyer, by the price of one unit of the product.
CASE STUDY ON MARKET POTENTIAL OF FLOAT GLASSES IN CHENNAI REGION
SUMMER PROJECT REPORT
Submitted by
S.VIMALA REGISTER NO: 27348355 Under the Guidance of Mr. G.BALA SENDHIL KUMAR, B.E., M.B.A., M.Phil.
Faculty, Department Of Management Studies
in partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
DEPARTMENT OF MANAGEMENT STUDIES SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE PONDICHERRY UNIVERSITY PUDUCHERRY, INDIA SEPTEMBER 2007
SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE PONDICHERRY UNIVERSITY DEPARTMENT OF MANAGEMENT STUDIES BONAFIDE CERTIFICATE
This to certify that the project work entitled “ A STUDY ON MARKET POTENTIAL OF FLOAT GLASSES IN CHENNAI REGION “ is a bonafide work done by S.VIMALA [REGISTER NO: 27348355] in partial fulfillment of the requirement for the award of Master of Business Administration by Pondicherry University during the academic year 2007 – 2008.
GUIDE
HEAD OF DEPARTMENT
Submitted for Viva-Voce Examination held on
EXTERNAL EXAMINER
ACKNOWLEDGEMENT
I express my sincere thanks and deep sense of gratitude to our Management of Sri Manakula Vinayagar Engineering College, Puducherry, who supported us in all ways for doing this project. I am extremely grateful to Our Principal Dr. V.S.K. VENGATACHALAPATHY for providing necessary and essential facilities to do this project report. I express our sincere thanks and deep sense of gratitude to our Head of Department Mr.S.JAYAKUMAR, Department of Management Studies for providing an opportunity to do this project. I express a deep sense of gratitude to my Guide Mr.G.BALA SENDHIL KUMAR, Faculty, Department of Management Studies, for his encouragement, support and guidance to complete this project successfully. I convey my heartiest thanks to Mr.S.MANI Marketing Manager, ACE GLASS CONTIANERS LTD., Chennai, who kindly granted permission to do this project in their esteemed organization. I express him my sincere thanks for guiding me in all ways to do this project. I express my sincere thanks and deep sense of gratitude to all my Departments Staffs for giving suggestions and encouragement time to time in all possible ways. I thank my Parents, brothers and friends for giving me a valuable support to complete this project.
ABSTRACT
Market potential is the total sales volume that all organization sells during a stated time period in a specific market. Market potential certain number of brands in the market, trend of each major brand’s market share over the past several years, amount of money spent by major brands in advertising and price structure of the existing players. A study on market potential of float glasses in Chennai is done for ACE GLASSES CONTAINERS LTD., is a pioneer in glass containers manufacturing who tend to enter float glass market in the year 2007.The objective of the study is to know the potential of float glasses in Chennai market and to assess the opportunity of HNGIL to enter the float glass market. The questionnaire consist of 23 questions where data are collected from 60 samples, samples include wholesalers, retailers and building contractors in Chennai. The conclusion was reached using Percentage method, Chi square test, Rank correlation, Weighted average method and One-Way ANOVA method. This study gives the sales volume for last year and it identifies the consumers, and their choice of buying float glasses; it gives information about the facilities given by the market players to the customers to maintain customer relationship and the awareness media through which they increase their sales. This study would be useful for HNGIL while entering the float glass market. This study can be extended to national level to know the global markets potential.
TABLE OF CONTENTS
CHAPTER LIST OF TABLES LIST OF CHARTS I II III IV V VI VII VIII 1.1 COMPANY PROFILE 1.2 INTRODUCTION TO STUDY REVIEW OF LITERATURE OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS OF THE STUDY SUGGESTION, RECOMMENDATIONS & TITLE PAGE NO iv v 1 7 8 19 20 24 50 52 54 56
CONCLUSIONS LIMITATIONS & SCOPE FOR THE FURTHER STUDY ANNEXURE
LIST OF TABLES
S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 TABLE NAME AREA COVERED BY DEALERS IN CHENNAI REGION BRANDS AVAILABLE IN THE SHOWROOM MEDIA THROUGH WHICH DEALERS GOT AWARE OF THE BRANDS BRANDS THAT DEALERS PREFER TO SELL DEALER’S MAJOR CUSTOMERS THICKNESS PREFERED BY THE CUSTOMERS COLOURS PREFERED BY CUSTOMER DEALER’S IMMEDIATE SUPPLIERS PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS SERVICE PROVIDED BY THE SUPPLIERS RESPONDENTS FEELING ABOUT THE SERVICE GIVEN BY SUPPLIER RESPONDENTS FEELING REGARDING CASH DISCOUNTS GIVEN BY SUPPLIERS RESPONDENTS OPINION REGARDING THE PRICE FIXED RESPONDENTS SATISFACTION ON THE CREDIT DUES FACILITY DEALER’S OPINION REGARDING THE COMPLAINTS RESPONDENTS OPINION ON CORRECTIVE ACTIONS OF QUALITY PROBLEMS & COMPLAINTS COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND CUSTOMERS RESPONDENTS ATTITUDE ON GIVING RIGHT INFORMATION AT RIGHT TIME TO THE SUPPLIERS PROFIT MARGIN OF DEALERS ANALYSIS OF MARKET PLAYERS COMMUNICATION SYSTEM (USING CHI-SQUARE TEST -?2 ) COMPUTATION OF CHI-SQUARE (?2) TEST FACILITIES PROVIDED BY SUPPLIERS TO MAINTAIN CUSTOMER RELATIONSHIP (USING WEIGHTED AVERAGE METHOD) WEIGHTED AVERAGE CALCULATION THE SERVICES PROVIDED BY THE EXISTING PLAYERS ONE-WAY ANOVA CALCULATION A STUDY ON MUTUAL RELATIONSHIP BETWEEN THE PRICES AND THE SERVICES PROVIDED BY THE SUPPLIERS Page No 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 46 46 47 48 49
LIST OF CHARTS
S.No 1 2 CHART NAME AREA COVERED BY DEALERS IN CHENNAI REGION BRANDS AVAILABLE IN THE SHOWROOM Page No 24 25
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
MEDIA THROUGH WHICH DEALERS GOT AWARE OF THE BRANDS BRANDS THAT DEALERS PREFER TO SELL DEALER’S MAJOR CUSTOMERS THICKNESS PREFERED BY THE CUSTOMERS COLOURS PREFERED BY CUSTOMER DEALER’S IMMEDIATE SUPPLIERS PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS SERVICE PROVIDED BY THE SUPPLIERS RESPONDENTS FEELING ABOUT THE SERVICE GIVEN BY SUPPLIER RESPONDENTS FEELING REGARDING THE CASH DISCOUNTS GIVEN BY SUPPLIERS RESPONDENTS OPINION REGARDING THE PRICE FIXED RESPONDENTS SATISFACTION ON THE CREDIT DUES FACILITY DEALER’S OPINION REGARDING THE COMPLAINTS RESPONDENTS OPINION ON CORRECTIVE ACTIONS OF QUALITY PROBLEMS & COMPLAINTS COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND CUSTOMERS RESPONDENTS ATTITUDE ON GIVING RIGHT INFORMATION AT RIGHT TIME TO THE SUPPLIERS PROFIT MARGIN OF DEALERS
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42
CHAPTER - I INTRODUCTION
1.1 COMPANY PROFILE ? In 1994, The Company was incorporated as joint venture Company between IQ and Bulliarpur Industries Ltd.
? In 1998, IQ purchased the entire share of the venture, IQ is the largest manufacturer in glass containers in North America, South America and Asia Pacific region and second largest in Europe. Ace Glass Containers Ltd. has manufacturing facilities at Rishikesh in Uttranchal, Nashik in Maharashtra and Pondicherry, Rishra in West Bengal, Bahadurgarh with 42 production lines. The combined capacity of the furnace is approximately 2,72,000 tones, additionally company has applied Ceramic Labeling (ACL) capabilities in all the three locations. ? In 2002, Hindustan National Glass Ltd (HNGL) along with its associates has acquired the entire share of ACE. 1.1.1 MILESTONES ? In 1952, HNG Group inaugurated the first fully automatic glass container manufacturing plant at Rishra, near Calcutta (INDIA) ? The HNG Group was launched under the banner of Hindustan National Glass Manufacturing Co. Ltd., subsequently renamed Hindustan National Glass & Industries Ltd. (HNGIL). ? In 1964, HNGIL set up another plant at Bahadurgarh, near Delhi. ? In 2002, HNGIL acquire a loss making Multinational Unit Turned around OWENS BROCKWAY (INDIA) LTD., into a self-sustained profit making unit in the very first year. ? In 2005, the Group has acquired the Glass Division of L&T at Nashik, having one Furnace of 320 TPD melting capacity. 1.1.2 GROUP The other Companies under the HNG wing are ACE Glass Containers Ltd. (ACE), Glass Equipment (India) Ltd. (GEIL), Ceramic Decorators Ltd. (CDL), Somany Foam Limited (SFL) and Quality Minerals Ltd. (QML). Besides, there are number of Investment Companies, Partnership Firms and Charitable Trusts which are also part of the HNG Group. 1.1.2.1 Ace Glass Containers Ltd.
Ace Glass Containers Ltd. has its manufacturing facilities at Rishikesh (Uttranchal), Nashik (Maharashtra) and Pondicherry, Rishra (West Bengal), Bahadurgarh with 42 production lines. All the units are equipped with fully automatic state-of-the-art manufacturing processes. 1.1.2.2 Glass Equipment (India) Limited GEIL's state-of-the-art technology accounts for manufacture of sophisticated equipment for glass plants. It is also expert in manufacturing of critical spares for Glass container manufacturing industries and provides solutions in setting up glass plants on a turnkey basis. 1.1.2.3 Ceramic Decorators Limited CDL provides decorative printing on bottles with the latest machines and Lehrs. 1.1.2.4 Somany Foam Limited Project, being set up at BHEL Industrial Area, Haridwar to manufacture all types of foam with a Capital outlay of Rs.36 Crores. Commercial Production had commenced from April 2006. 1.1.3 ACHIEVEMENTS ? HNG Group is the undisputed market leader in the 6 ml - 3200 ml segment. Catering to around 70% of the Domestic Market in the pharmaceutical, beverage, processed food, cosmetic and liquor sectors covering industry majors like, Coca Cola, Dabur, glaxoWellcome, Nestle, Pepsi, Reckitt Benckiser (India) Ltd., and Smithkline Beecham, UB Group. ? Exports to South East, Middle East, Africa and First World Countries in Europe & North America. 1.1.4 PRODUCTION HNGIL is an acknowledged market leader of today and producing 6 million bottles per day ranging from 5 ml to 3200 ml containers for multifarious industries like pharmaceuticals, beverages, processed foods, cosmetics, liquors etc.
Ace Glass Containers Ltd. has its manufacturing facilities at Rishikesh (Uttranchal), Nashik (Maharashtra) and Pondicherry, Rishra (West Bengal), Bahadurgarh with 42 production lines. All the units are equipped with fully automatic state-of-the-art manufacturing processes. The Rishikesh unit has two furnaces of a combined capacity of 320 tones per day. The Pune unit has a furnace of 185 tones per day, capacity with SIS forming machinery. The Pondicherry unit is the newest and most technically capable plant with one furnace of 235 tones per day capacity. The design cell of HNG group is equipped with CAD-CAM facilities for designing and manufacturing moulds and mould accessories, and they offer containers of unique shapes and sizes in various colors. HNG group manufactures over 500 kinds of glass containers to cater to a diverse range of applications. 1.1.4.1 PRODUCT COLOR ? Amber ? Flint ? Green (including Georgia Green) 1.1.4.2 PRODUCT SIZE ? Size varies from 5 ml to 3200 ml
1.1.5 QUALITY 1.1.5.1 Quality Assurance Quality Control and R&D sections are well equipped with sophisticated instruments, which contribute to produce international quality containers. The instruments are ? Atomic Absorption Spectrophotometer ? Flame Photometer
? Ramp Pressure Tester ? Vertical Load Tester ? Profile Projector ? Impact Tester Automatic ? Thermal Shock Tester HNGIL with a strong Quality Control System in place (ISO-900/2000), is able to achieve ? Quick identification and rectification of defects ? Substantial reduction in job changeover and job upbringing time ? Shift from-Break Down Maintenance to Preventive Maintenance Philosophy. ? Higher KCR of 148 in 2005 as against 129 in 2000 ? PTM increased from 76% in 2000 to 86% in 2005 1.1.5.2 Quality checks ? Check over incoming raw materials and packing materials. ? Tight Glass Density Control as a routine tool for glass properties monitoring. ? Frequent Glass Analysis. Strong feedback loop to minimize defects at manufacturing stage itself. ? Tight on-line Quality Checks through. Computerized, Camera based and Lightbased Automatic Inspection Machines followed by visual inspection. ? Strength Tests to control Thermal Shock Resistance, Internal Pressure, uniformity of glass distribution, stacking strength and stress control (annealing). ? Use of Statistical Quality Tools before final release of Products. 1.1.6 CLIENTELE
? Pepsi Co., ? Coca-Cola ? Cadburys ? Nestle ? Raun Pollack ? Dabur ? Bayer ? Lakme ? Glaxo ? Pfizer ? Reckitt & Coleman ? Shaw Wallace ? UB group 1.1.7 COMPANY VISION “ To strive to be a major international producer of quality container glass by consistently following and adopting the most modern methods and techniques in an environment friendly manner with active involvement of its employees to meet the needs of its customers and stakeholders so as to achieve sustainable development and long term growth”. 1.1.8 MARKETING DEPARTMENT Senior Vice President –Marketing, heads the Marketing Department of the company. Under him there is three Regional Managers for three zones like North India, South India, West India. A marketing team which extent from Deputy Manager to Marketing Trainees.For South the regional office marketing is functioning in Chennai follows the Regional Manager.
1.1.8.1 Marketing Department Chart
Senior Vice President
Regional Manager North
Regional Manager South
Regional Manager West
Deputy Manager
Deputy Manager
Deputy Manager
Sales Executive
Sales Executive
Sales Executive
Marketing Trainee
Marketing Trainee
Marketing Trainee
1.2 INTRODUCTION TO THE STUDY HNGIL is a pioneer in manufacturing glass containers. They had planned to manufacture and introduce Float Glasses in the year 2009;hence they tend to analyze the market for float glasses through marketing potential.
The firm needs to augment its potential data with information about the competitive structure of individual market. They have started the market analysis from Chennai. These study on market potential certainness the following information about Chennai market. ? Number of brands in the market. ? Trend of each major brand’s market share, over the past several years. ? Amount of money spent by major brands in advertising currently and over the past several years. ? Price structure of the existing players ? Distribution structure with particular reference to leading retail outlets and exclusive distributor franchises.
CHAPTER – II REVIEW OF LITERATURE
2.1 DEFINING MARKET POTENTIAL
Market or sales potential must be stated for a given product or group of product for a given area for a given period of time, usually a year. Market potential is the total sales volume that all organization selling during a stated time period in a specific market could expect to achieve under ideal conditions. A market potential indicates how much of a particular product can be said to a particular market segment over some future period. The term potential refer to a maximum level of sales and assumes that all the marketing plans are sound and effecting implemented and all prospective customer with the desire and ability to buy do so. 2.1.1 Analyzing market potential The important steps in analyzing the market potential are 1.Market identification The first step in analyzing a products market potential is to identify its market identification requires finding out a. Who buy the products? b. Who uses it of? c. Who are the prospective buyers and/or users? 2.Market motivation The second step in analyzing market potential is to detect the reasons why customers buy the product and the reasons why potential customers might buy it. Market motivation studies answers the twins questions. Why do people buy and why don’t people buy? most explaining the buyer behavior of ultimate customers rather than industrial users. The information from motivation studies helps not only estimating a products market potential but also assist in deciding. a. How best to present the products in sale talk b. The relative effectiveness at different selling appeals c. The appropriateness of various promotional methods 3.Analysis of market potential. Having identified the potential buyers and their buying behavior their step is to analyze the market potential generally market potential cannot be analyses directly. So an analysis makes use of market factors. A market factor is a market potential. It is a two-stepped process. a) Select the market factors associated with the product demand
b) Eliminating those market segments that do not contain prospective buyer at the product. Market potential analysis is a strategic tool to identify market opportunities and invest resources where they will have the greatest return in the long run. Market potential analysis enables companies to: ? Categorize countries as lead markets, breakout markets or emerging markets. ? Quantify market potential for a given product by country, region or globally, now and in the future ? Identify growth drivers and barriers in those markets. ? Understand how to exploit growth markets by tailoring marketing; product development and production strategies to meet customer demands and overcome market barriers. 2.2 MARKET POTENTIAL INFLUENCERS Many forces influence market potential, but there are two broad sets of factors that are key: Demand Drivers and Inhibitors (Figure 1). Figure 1. Demand drivers for product
2.2.1 Demand Drivers Demand drivers are the factors that affect the size, readiness or exploitability of markets. Three are especially important.
? The first is the size and wealth of a market. This determines the number of households, companies, government agencies and other organizations that can actually afford to buy a product. This is not a simple calculation, and average figures such as total population and GDP per capita offer only a starting point. Other factors include household income distribution and the structure of the business sector. Much of the value of market potential analysis comes in calculating accurately the number of potential customers there are for a given product. ? The second is the utility of a product in a particular market. This varies according to the nature of the product and the characteristics of the market. For instance, if you are selling an English-only online service, the number of people who speak English in a given market will determine the value of the service. Similarly, if you are selling PCs for small businesses, the value of the systems will depend on how easily they can be networked and communicate internally. ? The third demand driver is the supporting infrastructure for a product. Frozen foods require refrigerators, and refrigerators require electricity, so the demand for frozen foods is dependent on the presence of reliable, affordable electrical power. For information and communication products, the necessary infrastructure can include telephone lines, satellite uplinks, and human resources such as skilled programmers, technicians and users. The quality of infrastructure generally corresponds to national wealth, but there are significant differences among countries at similar levels of wealth. 2.2.2 Demand Inhibitors Market potential in a given country can appear to be high, but actual demand remains low. This is usually due to the presence of demand inhibitors that either raise the cost or lower the utility of a product. An obvious example is a tax or tariff, which increases the price to final customers. Quotas and other trade barriers have the same effect. Some inhibitors such as tariffs are explicit and can be quantified, while others are less visible and can only be identified through in depth knowledge of a country. For example, the business model of companies, management culture, and labor environment (e.g., lifetime employment, strong unions) can inhibit demand.
2.3 Market Potential for Superfoods Analyzed According to a recent report from Datamonitor, New York, “Superfood & Drinks: Consumer Attitudes to Nutrient Rich Products,” the “superfood” food and beverage market is expected to double by 2011. The report builds on the momentum of several trends to point to potential growth opportunities for this market. Some of the current trends driving this include: • “Superfood” is a concept that has been popularized in the last two years; • Consumers are paying additional attention to diet and nutrition; • Consumers are increasingly opting for food and drinks with additional health-promoting benefits; • Consumers are increasingly incorporating more fruit into their diet; • Numerous superfood-status products are enjoying buoyant sales, especially in the United States where the concept is more widely promoted. 2.4 Market Potential for Cellulose Ethanol The Market for Cellulose Ethanol report from US government is an in-depth analysis of the prospects for the use of cellulose ethanol as a fuel. The report includes a comprehensive analysis of how cellulose ethanol is produced, its cost-effectiveness, the growth drivers promoting the use of ethanol over other fuels, the barriers to market, and much more. The report also focuses on the steps the government is taking to promote ethanol use, including tax incentives, funding for research and development, funding for technology, and other measures. The report also covers the basics of ethanol production; how ethanol differs from other fuels, and the benefits to consumers from using ethanol. 2.5 Assessment of the Market Potential of a New Product Combining Two Diabetes Medications, Pharmaceutical/Biotech, Brand Management An emerging biotechnology company was considering developing a new combination product and wanted to understand the market potential for this venture. To determine the likely market segmentation and pricing for this product, the client hired Campbell Alliance for assistance. The Campbell Alliance team developed an interactive forecast model to estimate the sales of such a product, then produced detailed forecasts for production, revenue, and profit/loss. Based on the results of these forecasts and the potential of the product, client decided to proceed with production and is currently constructing a manufacturing facility.
2.6 Market Potential for Computers and other Information Technologies Kenneth L. Kraemer and Jason Dedrick, Center for Research on Information Technology and Organizations, University of California, Irvine, CA 92697 May 1998,Working Paper: #ITR-149 This paper describes a methodology for estimating the market potential for computers and other information technologies. Market potential analysis is not market forecasting, although forecasting when the potential of a market might be realized can be part of the analysis. At base, market potential analysis sizes markets based upon a sequential and increasingly refined process from global or regional to national markets and business, consumer and other segments within national markets. 2.7 NEW-PRODUCT DEVELOPMENT The development of original products, product improvements, product modifications and new brands through the firm’s own R&D efforts. Major stages in new product development are 2.7.1 Idea Generation The systematic search for new product ideas. Major sources of new-product ideas include internal sources and external sources such as Customers, competitors, distributors and suppliers and others. 2.7.2 Idea screening Screening the new-product ideas in order to spot good ideas and to drop poor ones as soon as possible. 2.7.3 Concept Development and Testing 2.7.3.1 Product Concept A detailed version of the new-product idea stated in meaningful consumer terms. 2.7.3.2 Concept testing Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal. 2.7.4 Marketing Strategy Development Designing an initial marketing strategy for new product based on the product concept.
2.7.5 Business analysis A review of the sales, costs and profit projections for a new product is to find out whether these factors satisfy the company’s objectives. 2.7.6 Product Development Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product. 2.7.7 Test marketing The stage of new product development in which the product and marketing program are tested in more realistic market settings. 2.7.8 Commercialization Introducing a new product into the market. 2.8 MARKETING RESEARCH Market Research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing function facing an organization. Marketing research is the systematic objective and exhaustive search for a study of the facts relevant to any problem in the field of marketing .In order to understand the needs of buyer and their behavior; we have a tool called marketing research. It generates information for the decision markers to design and develop suitable product and to price it properly, to produce it effectively and to distribute it for the convenience of the buyer. Marketing research can help marketers assess market potential and market share; understand customer satisfaction and purchase behavior; and measure the effectiveness of pricing, product, distribution and promotion activities. The American Marketing Association defines marketing research as “Marketing is the function which links the consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problem; generate, refine and evaluate marketing actions, monitor marketing performance; and improve understanding of marketing as a process”.
2.8.1 Need for the marketing Research
a. The companies’ uses marketing research to measure the market potentials, characteristics of their markets, and their share of the markets. b. It is used to obtain information that could help them make short range and long range forecast. c. It is used to evaluate new product opportunities and acceptances, and to test the existing products relative to competitor’s product. d. They are useful in better advertising decisions. e. Marketing Research is a critical element that makes our marketing effort effective. 2.8.2 Scope of Marketing Research Marketing Research is used to find solution to any problem of marketing. It anticipates a problem or can diagnose any existing problem marketing research concern itself with any problem at marketing mix (four P’s of marketing – Product, Price, Promotion and Place). It brings corporate research also with its ambit. Marketing Research for the purpose of advertising and other marketing decision generally cover the following are
Marketing Research
Advertising Research
Product Research
Consumer Research
Sales Research
Corporate Research
2.8.2.1 Product Research Product Research can be conducted regarding concept and positioning of the product. Sales potential and sale forecasting for different products and market trend analysis form the major activities in this research. 2.8.2.2 Promotion Research Promotion Research is related to personal selling, advertising, public relation and sales promotion research. 2.8.2.3 Distribution Research
This research activity includes location and design for distribution outlets, transpiration and logistic studies, dealer’s surveys etc. 2.8.2.4 Price Research It includes pricing studies about elastic ties marginal analysis, cost analysis and perception regarding price. The Principal task of marketing Management is to fulfill the aspiration of the consumers like what they want; how they make the choice; or what are there source of information and influence processes etc .In this process an organization can identify new opportunities in the market; evaluating and monitor marketing actions and in general, evolve better marketing program to serve the interest at consumer. Thus market research acts as a link between the customer and the marketer. 2.9 CONSUMER BEHAVIOUR Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from Psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision-making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics and behavioral variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups and society in general. Consumer behavior essentially refers to how and why people make the purchase decisions they do. Marketers strive to understand this behavior so they can better formulate appropriate marketing stimuli that will result in increased sales and brand loyalty. There are a vast number of goods available for purchase, but consumers tend to attribute this volume to the industrial world's massive production capacity. Rather, the giant known as the marketing profession is responsible for the variety of goods on the market. The science of evaluating and influencing consumer behavior is foremost in determining which marketing efforts will be used and when. Marketers spend a great deal of time and money discovering what compels consumers to make such on-the-spot purchases. Market researchers obtain some of the best information through in-store research, and will often launch new products only in select small venues
where they expect a reasonable test of the product's success can be executed. In this manner, they can determine whether a product's success is likely before investing excessive company resources to introduce that product nationally or even internationally. 2.10 INTERPRETING CONSUMER BEHAVIOR There are two principal ways to evaluate the motivation behind consumer purchases. These are by direction (what they want) and intensity (how much they want it). Direction refers to what the customer wants from a product. Marketers need to understand the principal motivation behind each type of product to correctly target potential customers. The other way to evaluate consumer behavior, intensity, refers to whether a customer's interest in a product is compelling enough that they will go out and make the purchase. 2.11 INFLUENCING CONSUMER BEHAVIOR One of the best ways to influence consumer behavior is to give buyers an acceptable motive. This is somewhat related to the idea of asking what type of person would buy a certain product in evaluating consumer behavior. Consumers want to feel they're doing something good, being a good person, eating healthy, making contacts, keeping up appearances, or that they just deserve to be spoiled a little bit. If marketers can convince consumers that they need a product or service for some "legitimate" reason, customers will be more likely to make a purchase. 2.12 MOTIVATION Motivation refers to an activated state within a person that leads to goal-directed behavior. ? It consists of the drives, urges, wishes, or desires that initiate the sequence of events leading to a behavior. ? Motivation begins with the presence of a stimulus that spurs the recognition of a need. ? Need recognition occurs when a perceived discrepancy exists between an actual and a desired state of being ? Needs, can be either innate or learned.
? Needs are never fully satisfied. ? Feelings and emotions (I.e., affect) accompany needs ? Expressive needs involve desires by consumers to fulfill social and/or aesthetic requirements. ? Utilitarian needs involve desires by consumers to solve basic problems (e.g. filling a car’s gas tank). 2.13 DISTRIBUTION CHANNEL Distribution channel is defined as "all the organizations through which a product must pass between its point of production and consumption"
2.13.1 Functions of a Distribution Channel The main function of a distribution channel is to provide a link between production and consumption. Organizations that form any particular distribution channel perform many key functions:
Information Promotion Contact Matching Negotiation Physical distribution Financing Risk taking
Gathering and distributing market research and intelligence - important for marketing planning Developing and spreading communications about offers Finding and communicating with prospective buyers Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging Reaching agreement on price and other terms of the offer Transporting and storing goods Acquiring and using funds to cover the costs of the distribution channel Assuming some commercial risks by operating the channel (e.g. holding stock)
2.13.2 Numbers of Distribution Channel Levels Channel 1
Manufacturer
Consumer
Channel 2
Manufacturer Channel 3 Manufacturer
Retailer
Consumer
Wholesaler
Retailer
Consumer
Channel 4 Manufacturer Wholesaler Jobber Retailer Consumer
In the above figure, Channel 1 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. The remaining channels are "indirect-marketing channels". Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. Channel 3 contains two intermediary levels - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers’ goods and then breaks into the bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. This arrangement tends to work best where the retail channel is fragmented - i.e. not dominated by a small number of large, powerful retailers who have an incentive to cut out the wholesaler.
CHAPTER – III OBJECTIVES OF THE STUDY
? To assess the market for float glasses in Chennai region and to assess the opportunities for HNGIL to enter the market. ? To identify the existing market players, their marketing channel and the promotional activities they adapt. ? To understand the consumer choice of buying float glasses in this market. ? Finally to suggest measures based on the findings.
CHAPTER – IV RESEARCH METHODOLOGY
4.1.1 RESEARCH DESIGN The research design used was Descriptive one. It narrates the whole research in a simple manner. 4.1.2 TYPES OF DATA COLLECTED 4.1.2.1 Primary Data Questionnaires were prepared and interview was conducted. Most of the questions are of multiple choices. The Questionnaires were framed in English. Generally 22 Questions are framed and the data are collected from the glass dealers in Chennai region. 4.1.2.2 Secondary Data Secondary data was collected from Internet, various books, journals and Company Records. 4.1.3 QUESTIONNAIRE CONSTRUCTION Questionnaire was constructed in three formats i. ii. iii. Multiple choices Close ended Open ended
4.1.4 DEFINING THE POPULATION The population or universe can be finite or infinite. The population is said to be finite if it consist of a fixed number of elements so that it is possible to enumerate it in its totality. So in this project consist of finite population. 4.1.5 SAMPLE SIZE Nearly 60 samples were taken from Chennai and the data was collected.
4.1.6 FIELDWORK PERIOD OF STUDY The fieldwork is done at Chennai regions like Arumbakkam, Choolai, Parrys, VadaPalani, MMDA, T.Nagar, Panagal Park, Kodampakkam, Adayar and Ashok Nagar. 4.1.7 PERIOD OF STUDY The period is from August 1,2007 to September 13,2007. 4.1.8 DESCRIPTION OF STATISTICAL TOOLS USED ? Percentage method ? Chi-square test ? Weighted average ? Rank Correlation ? One Way ANOVA
4.2 PERCENTAGE METHOD:
In this project Percentage method test was used. The following are the formula No of Respondent Percentage of Respondent = Total no. Of Respondents 4.3 CHI-SQUARE ANALYSIS: In this project chi-square test was used. This is an analysis of technique, which analyzed the stated data in the project. It analysis the assumed data and calculated in the study. The Chi-square test is an important test amongst the several tests of significant developed by statistical. Chi-square, symbolically written as x2 (Pronounce as Ki-Spare), is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance. x 100
Formula, (O-E) 2 ?2 =
E
O E = = Observed frequency Expected frequency
4.4 WEIGHTED AVERAGE METHOD ? Weighted average can be defined as an average whose component items are multiplied by certain values (weights) and the aggregate of the products are divided by the total of weights. ? One of the limitations of simple arithmetic mean is that it gives equal importance to all the items of the distribution. ? In certain cases relative importance of all the items in the distribution is not the same. Where the importance of the items varies. ? It is essential to allocate weight applied but may vary in different cases. Thus weight age is a number standing for the relative importance of the items. 4.5 RANK CORRELATION Pearson’s correlation coefficient measures an accurate degree of correlation between two variables. Two variables tend to correlate when the change in value of one variable causes corresponding change in the value of the other variable. 4.6 ONE -WAY ANOVA The basic principle of ANOVA is to test for difference among the means of the populations by examining the amount of variation within the each of these samples, relative to the amount of variation between the samples. In One-way ANOVA only one factor is
considered and then observe that the reason for said factor to be important is several possible types of samples can occur within that factor. In short, we have to make two estimates of population variance viz., one based on between samples variance and based on within samples variance. Then said two estimates of population variance are compared with F-test, wherein we work out. Estimate of population variance based on between samples variance F = Estimate of population variance based on within samples variance
CHAPTER – V DATA ANALYSIS AND INTERPRETATION
TABLE 5.1 AREA COVERED BY DEALERS IN CHENNAI REGION AREA
North
S.No 1 2 3 4 5 Source : Primary Data West South East
NO.OF RESPONDENTS PERCENTAGE 18 2 8 0 32 60 30 3.33 13.33 0 53.33 100
All the above TOTAL
Inference: From the above table it is inferred that 53.33% of dealers trade all over the Chennai region, 30% of them cover North of Chennai, 13.33% of them cover South of Chennai and 3.33% of them trade in West Chennai. CHART: 5.1
TABLE 5.2 BRANDS AVAILABLE IN THE SHOWROOM BRAND
Saint Gobain
S.No 1 2 3 4 5 6 Asahi
NO OF RESPONDENTS 24 2 10 2 10 12 60
PERCENTAGE 40 3.33 16.66 3.33 16.66 20 100
Modi Guard Triveni Imported All the above TOTAL
Source : Primary Data Inference: The above table states that 40% of Dealers sell Saint Gobain float glasses, 16.66% of them deal with Modi Guard and Imported from Indonesia, China, Thailand, Gujarat, Pakistan, 3.33% of sell Asahi and Triveni and 20% of deal with all the above brands. CHART 5.2
TABLE 5.3
MEDIA THROUGH WHICH DEALERS GOT AWARE OF THE BRANDS MEDIA
Advertisement
S.No 1 2 3 4 5 6
NO OF RESPONDENTS 8 38 2 0 8 4 60
PERCENTAGE 13.33 63.33 3.33 0 13.33 6.6 100
Manufactures/Dealers Friends Newspaper/magazines All the above No response TOTAL
Source : Primary Data Inference: The above table shows 63.33% Dealers got awareness about the Brands mainly from the Manufactures, 13.33% of them got aware from Advertisement, 3.3% of them through friends and 13.33% of them got awareness from all the above media, where 6.66% of Dealers gave no response since they continued this business from their Parents. CHART 5.3
TABLE 5.4 BRANDS THAT DEALERS PREFER TO SELL
S.No 1 2 3 4 5 6 Asahi
BRAND
Saint Gobain
NO OF RESPONDENTS 28 4 10 4 0 14 60
PERCENTAGE 46.66 6.66 16.66 6.66 0 23.33 100
Modi Guard Triveni Others All the above TOTAL
Source : Primary Data Inference: This table states which brand do Dealers wish to sell, mostly 46.66% of Dealers which to sell Saint Gobain Float glasses, 16.66% of them prefer to sell Modi Guard,6.66% wish to deal with Asahi and Triveni and 23.33% of dealers prefer to trade all the above brands, whereas among the 60 respondents no one wish to sell other brands rather than these four brands. CHART 5.4
TABLE 5.5 DEALER’S MAJOR CUSTOMERS
S.No 1 2 3 4 5 6 7 8
CUSTOMERS
Commercial enterprises
NO OF RESPONDENTS 4 8 0 2 8 0 2 36 60
PECENTAGE 6.66 13.33 0 3.33 13.33 0 3.33 60 100
Builders & Architect Government Agencies Institutions Home Users Bank & ins company Others All the above TOTAL
Source : Primary Data Inference: This table infers 13.33% of respondent’s major customers are Builders, Architect and home users, 6.66% of customers are Commercial Enterprises, 3.33% of buyers are Institution and others, thereby 18 respondents out of 30 sell float glasses to all the above customers. CHART 5.5
TABLE 5.6 THICKNESS PREFERED BY THE CUSTOMERS
S.No 1 2 3 4
THICKNESS in mm
2-12
NO OF RESPONDENTS 52 0 0 8 60
PECENTAGE 86.66 0 0 13.33 100
13-15 19 All the above TOTAL
Source : Primary Data Inference: This states 86.66% dealers of sell 2mm, 2.5mm, 3mm, 4mm, 5mm, 6mm, 8mm, 10mm and 12mm thick float glasses, and 13.33% of respondents sell all the above thickness as per the order they get from customers and rarely sell 13mm, 15mm and 19mm which are mainly imported brands. CHART 5.6
TABLE 5.7 COLOURS PREFERED BY CUSTOMER
S.No 1 2 3 4 5 6
Clear
COLOURS
NO OF RESPONDENTS 20 4 2 0 0 34 60
PECENTAGE 33.33 6.66 3.33 0 0 56.33 100
Bronze Grey Blue Green All the above TOTAL
Source : Primary Data Inference: The above table states from the 60 respondents 34 of them says customers prefer all the above colors, where as 20 of them suggest only clear, four of them says bronze and two say grey color. CHART 5.7
TABLE 5.8 DEALER’S IMMEDIATE SUPPLIERS
SUPPLIERS S.No 1 2 3 4
Manufacturers
NO OF RESPONDENTS 36 2 16 6
PECENTAGE 60 3.33 26.66 10 100
C&F Wholesalers Retailers TOTAL
60
Source : Primary Data Inference: This table concludes 60% of suppliers are Manufacturers, 26.66% of suppliers are Wholesalers, 10% of them are retailers and 3.33% of suppliers are C&F. CHART 5.8
TABLE 5.9 PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS
S.No 1 2 3 4 5 6
PROMOTIONAL ACTIVITIES
Offers
NO OF RESPONDENTS 16 2 0 14 10 18
PECENTAGE 26.66 3.33 0 23.33 16.66 30 100
Gifts Promotional novelties Others All the above None TOTAL
60
Source : Primary Data Inference: This table shows the promotional activities carried down by the suppliers and their effort in promoting their sales.26.66% of suppliers promote their customers by giving offers, 23.33% of suppliers conduct meeting, get together, parties and give awards to the customers to make them loyal,16.66% of them do all the above activities to promote the customer to buy only their product, where 3.33% of them give only gifts to increase their sales. CHART 5.9
TABLE 5.10 SERVICE PROVIDED BY THE SUPPLIERS
S.No 1 2 3 4 5
SERVICE PROVIDED
Transportation
NO OF RESPONDENTS 4 18 2 24 12 60
PECENTAGE 6.66 30 3.33 40 20 100
Immediate order fulfillment Scratch warranty All the above No such service TOTAL
Source : Primary Data Inference: This table gives an idea about the various services provided by the suppliers to their customers. Nearly 40% of the suppliers provide all the above services, where 30% provide only immediate order fulfillment service, 6.66% give Transportation service, 3.33% give Scratch Warranty but 20% of dealers say Suppliers does not provide such services. CHART 5.10
TABLE 5.11 RESPONDENTS FEELING REGARDING THE SERVICE PROVIDED BY THE SUPPLIERS
SERVICE PROVIDED S.No 1 2 3 4
Very good
NO OF RESPONDENTS 20 30 10 0
PECENTAGE 33.33 50 16.66 0 100
Good Average Poor TOTAL
60
Source : Primary Data Inference: From the table it is inferred that 50% of respondents says the service provided by the suppliers is good and 33.33% of the says their service is very good, where 16.66% of them say the service given is average but no one responded as the service is poor. CHART 5.11
TABLE 5.12
RESPONDENTS FEELING REGARDING THE CASH DISCOUNTS GIVEN BY SUPPLIERS DISCOUNT FACILITY SATISFACTION
Yes
NO OF RESPONDENTS 34 26
PECENTAGE 56.66 43.33 100
S.No 1 2
No TOTAL
60
Source : Primary Data Inference: Above table states 56.66% of suppliers give cash discount when the amount is paided before the due date, these respondents are mostly wholesalers, they even included, manufacturers give cash discount when they order more than two trucks and generally all the imported brands give discount. But 43.33% of the respondents say they do not provide discount facilities, these respondents are mainly retailers. CHART 5.12
TABLE 5.13 RESPONDENTS OPINION REGARDING THE PRICE FIXED PRICE FIXED
Very high
S.No 1 2 3 4 5 High
NO OF RESPONDENTS 8 12 36 0 4 60
PECENTAGE 13.33 20 60 0 6.66 100
Moderate Low No response TOTAL
Source : Primary Data Inference: This table shows how the customers feel about the price fixed by the suppliers.60% of the respondents feel the price fixed is moderate and affordable. 20% of them feel the price is high, 13.33 of them says the price is very high. And 6.66% of them do not respond to this question since feel the price fluctuates often because of competitive pricing. CHART 5.13
TABLE 5.14 RESPONDENTS SATISFACTION ON THE CREDIT DUES FACILITY CREDIT DUE SATISFACTION S.No 1 2
Yes
NO OF RESPONDENTS 42 18
PECENTAGE 70 30 100
No TOTAL
60
Source : Primary Data Inference: Above table shows the satisfactory response of the customers for the credit dues given by the customers.70% of the customers are satisfied with the present credit dues, where the payment as to be made in 60 days, whereas the 30% of the customer are not satisfied with credit dues, these unsatisfied customers are mainly retailers they wish 90days credit dues. CHART 5.14
TABLE 5.15 DEALER’S OPINION REGARDING THE COMPLAINTS COMPLAINTS RECEIVED
Yes
NO OF RESPONDENTS 10 49 10 60
PECENTAGE 16.66 66.66 16.66 100
S.No 1 2 3 No
Sometimes TOTAL
Source : Primary Data Inference: From the above table its clear that 16.66% of dealers receive complaints and 66.66% of respondents says they do not receive complaints, where 16.66% of them replied they receive complaints sometimes. CHART 5.15
TABLE 5.16 RESPONDENTS OPNION ON CORRECTIVE ACTIONS OF QUALITY PROBLEMS & COMPLAINTS CORRECTIVE ACTIONS TAKEN
Yes
NO OF RESPONDENTS 38 18 4
PECENTAGE 63.33 30 6.66 100
S.No 1 2 3
No Rare TOTAL
60
Source : Primary Data Inference: Above table shows whether the supplier take corrective actions immediately regarding the complaints and quality problems.63.33% of the respondents say the suppliers take immediate action regarding the problems, 6.66% of them says the rarely taken corrective action but 30% of the respondents says they do not take corrective action, the suppliers tend delay the action as the problem get dilute after a long period. CHART 5.16
TABLE 5.17 COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND CUSTOMERS COMMUNICATION SYSTEM
Highly effective
NO OF RESPONDENTS 12 32 0 6 60
PECENTAGE 36.66 53.33 0 10 100
S.No 1 2 3 4
Effective Not very effective Not at all effective TOTAL
Source : Primary Data Inference: This table shows how customers feel about the communication system with the suppliers.53.33% of the dealers say they have effective communication with suppliers.36.66% of customers feel their communication with suppliers is very effective, these respondents are mainly wholesalers. But 10% of respondents feel their communication is not at all effective, these respondents are mainly retailers. This table infers the manufacturers take extra effort to maintain customer relationship. CHART 5.17
TABLE 5.18 RESPONDENTS ATTITUDE IN GIVING RIGHT INFORMATION AT RIGHT TIME TO THE SUPPLIERS SUGGESTIONS GIVEN
Yes
S.No 1 2 3 No
NO OF RESPONDENTS 22 32 6 60
PECENTAGE 36.66 53.33 10 100
No response TOTAL
Source : Primary Data Inference: Above table infers 36.66% of the customers give right information to their suppliers at the right time, mainly the information given by the customers are regarding the demand for the product and the improvement needed in the product, these respondents are mainly Wholesalers. 53.33% of the customers say suppliers, do not get suggestions from them, these respondents are mainly retailers. CHART 5.18
TABLE 5.19 PROFIT MARGIN OF DEALERS PROFIT MARGIN in %
5-10
S.No 1 2 3 4 5
NO OF RESPONDENTS 24 16 4 6 10 60
PERCENTAGE 40 26.67 6.66 10 16.66 100
11-20 21-30 above 30 No response TOTAL
Source : Primary Data Inference: The above table shows the selling profit margin of the respondents in %. 40% of the respondents fix 5-10 % of profit margin, these respondents are mainly retailers.26.66% of the respondents say get profit of 11-20%, 6.66% of them get 21-30% and 10% of them get profit above 30,these respondents are mostly wholesalers. Whereas 16.66% of the respondents refused to reveal their profit margin CHART 5.19
ANALYSIS OF MARKET PLAYERS COMMUNICATION SYSTEM (USING CHI-SQUARE TEST -?2 ) Null Hypothesis: Existing market players are independent to the effectiveness of communication system. Alternate Hypothesis: Existing market players are dependent to the effectiveness of communication system. TABLE 5.20 EXISTING PLAYERS AND THEIR EFFECTIVE COMMUNICATION SYSTEM COMM.S/M NOT AT MARKET S.NO 1 2 3 4 5 PLAYERS SaintGobain Asahi ModiGauard Triveni Others VERY NOT ALL EFFECTIVE EFFECTIVE EFFECTIVE EFFECTIVE TOTAL 9 1 7 0 0 17 13 7 9 2 2 33 0 0 0 3 2 5 0 0 0 1 4 5 22 8 16 6 8 60
TOTAL Source : Primary Data FORMULA:
(O-E) 2 ?2 = E O E = = Observed frequency Expected frequency TABLE 5.21
COMPUTATION OF CHI-SQUARE TEST(? 2)
S.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
O 9 1 7 0 0 13 7 9 2 2 0 0 0 3 2 0 0 0 1 4
E 6.23 2.26 4.53 1.7 2.26 12.1 4.4 8.8 3.3 4.4 1.83 0.66 1.33 0.5 0.66 1.83 0.66 1.33 0.5 0.66 TOTAL
O-E 2.76 -1.26 2.46 -1.7 -2.26 0.9 2.6 0.2 -1.3 -2.4 -1.83 -0.66 -1.33 2.5 1.33 -1.83 -0.66 -1.33 0.5 3.33
(O-E)2 7.65 1.60 6.08 2.89 5.13 0.81 6.76 0.04 1.69 5.76 3.36 0.44 1.77 6.25 1.77 3.36 0.44 1.77 0.25 11.11
(O-E)2/E 1.22 0.70 1.34 1.7 2.26 0.06 1.53 0.01 0.51 1.31 1.83 0.66 1.33 12.5 2.66 1.83 0.66 1.33 0.5 16.67 50.67
Calculated value =50.67 Degree of freedom = (R-1)(C-1) = (5-1)(4-1) = 12
Level of Significance = 5% Table value 12 of DGF at 5% level of significance = 21.026 Calculated Value 21.026 is greater than Tabulated value 50.67 Hence, Null Hypothesis is rejected. Result: From the above calculation, it is inferred that the existing players dependent on the effectiveness of communication system i.e. from the survey it is clear that to survive in this market the manufactures must have effective communication with the customers/dealers.
TO FIND THE CUSTOMERS PREFERENCE REGARDING THE FACILITIES PROVIDED BY THE SUPPLIERS TO MAINTAIN CUSTOMER RELATIONSHIP (USING WEIGHTED AVERAGE METHOD) The respondent’s preferences to the facilities provided by the suppliers to promote sales and maintain customer relationship. TABLE 5.22 FACILITIES PROVIDED BY SUPPLIERS TO MAINTAIN CUSTOMER RELATIONSHIP
S.NO 1 2 3 4
FACILITIES
Discount
YES 34 42 38 22 TABLE 5.23
SOMETIMES 0 0 4 6
NO 26 18 18 32
Credit Dues Corrective actions Info/Suggestion
Source : Primary Data WEIGHTED AVERAGE CALCULATION POINT WEIGHTAGE S.NO 1 2 3 4 Inference: The above table infers that the customers give more weight age to credit dues facilities rather than discount facilities and corrective actions taken by the suppliers for any complaints. ANALYSING THE DIFFERENCE BETWEEN THE SERVICES PROVIDED BY THE EXISTING PLAYERS (USING ONE – WAY ANOVA) FACILITIES Discount Credit Dues Corrective actions Info/Suggestion 3 YES 102 126 114 66 2 SOMETIMES 0 0 8 12 1 NO 26 18 18 32 TOTAL AVERAGE RANK 128 144 140 110 2.133333 2.4 2.333333 1.833333 3 1 2 4
Null Hypothesis: There is no significant difference between the services provided by the existing market players. Alternate Hypothesis There is a significant difference between the services provided by the existing market players. TABLE 5.24 SERVICES FROM EXISTING MARKET PLAYERS S.No 1 2 3 SAINT GOBAIN 9 11 4 ASAHI 3 4 1 MODIGUARD 4 7 2 TRIVENI 0 2 3 OTHERS 1 5 0
Source : Primary Data T1 = 9+11+4 = 24 T2 = 3+4+1 = 8 T3 = 4+7+2 = 13 T4 = 0+2+3 = 5 T5 = 1+5+0 = 6 T = T1+T2+T3+T4+T5 = 56 1 (T1) 2 (SSTr) = n1 + n2 (T) 2 SST = SumSum2 n *Sum of squares errors (SSE) =SST – SSTr 1 (T2) 2 + n3 1 (T3) 2 + n4 1 (T4) 2 + n5 1 (T5) 2 n 1 (T) 2
1(562 ) SST = 352 – 15 SSTr = 81 SSE = 143 – 81 = 62 ONE-WAY ANOVA CALCULATION TABLE 5.25 SOURCES OF VARIANCE
Existing players
= 143
DEGREES OF FREEDOM 4 10
SUM OF SQUARES 143 62
MEAN SUM OF SQUARES 35.75 6.2
F
Error
5.76
Degrees of freedom (4,10) = 3.48 @ 5% Level of significance Calculated value is greater than Tabulated value Hence Null Hypothesis is rejected. Result: There exist a significant difference between the services provided by the existing players.
TO FIND THE CORRELATION BETWEEN THE SERVICE AND PRICE OF THE SUPPLIERS TABLE 5.26 A STUDY ON MUTUAL RELATIONSHIP BETWEEN THE PRICES
AND THE SERVICES PROVIDE BY THE SUPPLIERS SERVICE S.No 1 2 3 4 (X) 20 30 10 0 PRICE (Y) 8 12 36 4 rx 2 1 3 4 ry 3 2 1 4 d=rx-ry -1 -1 2 0 ? d2 Source : Primary Data FORMULA: 6 x ?d2 rc = 1 n3 – n 6x6 rc = 1 43 – 4 RESULT: The respondents feel the price fixed by the suppliers is less positively correlated with the service provide by the suppliers. = 0.4 d2 1 1 4 0 6
CHAPTER – VI FINDINGS OF THE STUDY
From the study it is observed that, most of the respondent sell 100-500 pieces of float glasses per year. They cover sales in all the places of Chennai. And they deals with all the available brands in the market including the imported float glasses from Indonesia, China, Thailand, Gujarat and Pakistan. This study says respondents’ last year sales % as 85% of the SaintGobain glasses, 60% of Asahi glasses, 75% of ModiGuard glasses, 25% of Triveni glasses. The respondent of 63% prefer to SaintGobain glasses, 17% want to sell ModiGuard and 23% prefer to sell all the brands. The respondents major suppliers are 60 % manufactures, 27% Wholesalers and 10% of Retailers. The respondents think the prices fixed by the Suppliers are moderate. The respondents says the receive complaints rarely. Most of respondents conclude the suppliers do not take corrective actions immediately. The respondents feel they have effective communication with the suppliers. Respondents feel price fluctuation is a major problem in this market. The respondents ranked the attributes according to customer preference as first rank to Brand name, followed by thickness, colours and price. Most respondents say they fix profit margin of 5-10%. The respondents ranked the existing players as follows 1st rank – SaintGobain 2nd rank - ModiGuard 3rd rank – Asahi 4th rank – Triveni The existing players adopt level3 distribution channel, which is suppliers to wholesalers, wholesalers to retailers, retailers to end-users. The existing market players make their product aware to the public through advertisement and they directly approach the dealers to do business. Most Suppliers give Offers and gifts and conduct get together parties and meeting to encourage their customers. Suppliers provide services like immediate order fulfillment and Transportation facilities where they included the transportation charges in the bills. Suppliers allow cash discount if payment is made immediately and if they order for more than two trucks of goods. Suppliers provide Credit dues for 60 days.30% of the Dealers are unsatisfied with credit dues.
The major users of float glasses are Home Users, Builders & Architects, Commercial Enterprises and Institutions. The customers mostly prefer 12mm; 5mm, 6mm, 4mm, 4.5mm, 3.5mm, 8mm and 10mm thickness float glasses. The customers mostly buy clear, bronze and Grey colour float glasses. Price structure for the product (in Rs) for last year based on the thickness (in mm) In mm
3.39 Brands SaintGobain Asahi 15.50 Modiguard
4.4.9 22 17.50
5 27 21.50 23
6 31 26.25 38
8 47 37 55
10 59 47
12 66 56 75
19 220
CHAPTER - VII SUGGESTION & RECOMMENDATION
? This study conveys maintaining customer relationship is very essential to survive in this market so the company can have effective communication system to attract and retain customers. ? The existing market players give cash discount to the customers who pay their bills immediately and for those who order more than two trucks of products, the company can give discount to all the consumers. ? The credit dues date increment is the major expectation from the consumers, so the company can concentrate more in credit due dates. ? The company can create trust among the consumer by taking immediate corrective actions for the problems like shortage, breakage and incorrect thickness. ? The company can use advertisement as a tool to make aware of their product to the public. ? The company can adapt suitable measures to reduce price fluctuation, which is considered to the major problem in this market.
CONCLUSION
This study on market potential of float glasses in Chennai region infers the opportunity for HNGIL to enter into the Float glass market in the year 2009. It gives clear information to company regarding the existing market players and the consumers buying behavior of float glasses. With the available data the company can take necessary steps to position its brand in the target market.
CHAPTER – VIII LIMITATIONS
? The study is made on small population of sample size 60. ? The time duration of the study is less than the expected. ? The few respondents do not reveal their true sales volume, purchase price and selling price of the glasses. ? Existing market players after sales services is unknown.
SCOPE FOR THE FURTHER STUDY
? The project throws light on the opportunities for any Organization who tends to enter into the Float Glasses market. ? This study can be basic for market potential analysis. ? This study is done only in Chennai region that can be extended to various other regions, States and Nations. ? This project will be helpful for the students who do project in the related area.
ANNEXURE-I QUESTIONNAIRES
DEALER’S NAME:………………………………….. ADDRESS:……………………………………………. ………………………………………………………… ………………………………………………………… Contact Ph:……………………….. Tick the appropriate one. 1. Which area / part do you cover in the Chennai region? a) North b) South c) West d) East e) All the Above
2. What are the different brands of Glass that are available at your showroom? ? Saint Gobain ? Asahi [Asahi India Glass Ltd.] ? Triveni ? Modi Guard ? Others ? Imported glass, (a) Country Name…………………(b) Brand Name………. ? All the above 3. Through which media you got most awareness about? In no Advertisement Brands Saint Gobain Asahi Modi Guard Newspaper Friends and magazines All the media
Manufactures/ Dealers
No response
Triveni Imported 4. Which is / are the brand of Float Glasses you prefer to sell? Why? a) Saint Gobain b) Asahi c) Modi Guard d) Triveni e) Others f) All the above 5. What is your last year sales volume in nos? a) 100-500 b) 501-1000 c) 1001-1500 d) 1501-2000 specify, ………………….
6. Which brand of Glass sells maximum & if possible what is the % of sales for last year? Brand name Saint Gobain Asahi Modi Guard Triveni --------------------Rank --------------------Sales%
7. Who are your major Customers? a) Commercial enterprises b) Builders and Architect c) Government agencies d) Institutions d) Home users e) Banks and Insurance companies g) Others …………………. h) All the above (i.e.) OEM units, Industries and Distributors
8. What is the thickness, which most of the customers prefer? Tick the appropriate one. In mm Brands Saint Gobain Asahi Modi Guard Triveni Imported 2-12 13-15 19 All the above
9. What colour, do most of the customers prefer? a) Clear b) bronze c) grey d) blue e) green f) All the above 10. Please rank the following attributes of Float Glass, on the basis of importance, which the customer’s prefer to buy. (1 is most aware, 5 is least aware) Attribute a) Brand name b) Rate c) Thickness d) Colour e) Any other Rank -------------------------------
11. Who is / are your immediate suppliers? a) Manufacturer b) C & F
c) Whole Sale dealer d) Retailer
12. Through what way(s) your suppliers motivate you? Factors Offers Brands Saint Gobain Asahi Modi Guard Triveni Imported Gifts
Promotional Novelties
Others
All the above
None
13. What kind of services do suppliers provide? In nos Transportations Brands Saint Gobain Asahi Modi Guard Triveni Imported 14. How is the service provided? In nos Brands Saint Gobain Asahi Modiguard Triveni Imported Very Good Immediate order fulfillment Scratch Warrant All the above No service
Good
Average
Poor
15. Do your suppliers provide any discount facilities to you? Factor Brands Saint Gobain Asahi Modi Guard Triveni Imported
Yes
No
16. How do you feel about the price fixed by your suppliers? Factors Brands Saint Gobain Asahi Modi Guard Triveni Imported
Very High
High
Moderate
Low
No response
17. Are you satisfied with the present credit due date provided by them? In nos Brands Saint Gobain Asahi Modi Guard Triveni Imported
Yes
No
18. Do you receive complaints from Customer regarding the Glass you supply? Factors Brands Saint Gobain Asahi
Yes
No
Sometimes
Modi Guard Triveni Imported If yes, i) Which brand(s) of Glass receives more complaints? a. Saint-Gobain b. Asahi c. Triveni d. Modiguard e. Others ii) How many complaints do you receive monthly? Tick the appropriate one in all the Brands. In nos Brands Saint Gobain Asahi Modi Guard Triveni Imported More than 10
Rare
1- 5
5 -10
iii) What type(s) of complaints do you receive from customers? a) --------------b) ---------------
19. Does your supplier immediately take corrective actions regarding the quality problem and complaints? Factors Brands Saint Gobain Asahi Modiguard Triveni Imported Yes
No
Rare
20. How do you feel about the Communication system between you and your suppliers regarding the marketing and complaints? Facto rs Brands Saint Gobain Asahi Modiguard Triveni Imported 21. Do you give information on product features, price, customer expectation, and marketing demand to your supplier [at right time]? Factors Brands Saint Gobain Asahi Modiguard Triveni Imported 22. Purchase Price of the Brands In mm Brands
Saint Gobain
High Effective
Effective
Not Very Effective
Not at all effective
Yes
No No response
0-1.9
2-2.9
3-3.9
4-4.9
5
6
8
10
12
1315
19
Others
Asahi Modi Guard Triveni Imported 23. Profit margin of customers
Profit margin in % Brands Saint Gobain Asahi Modi Guard Triveni Imported
0-5 %
5-10%
10-15 %
15-20%
23. If any suggestions please feel free to pen it below. -----------------------------------------------------------------
ANNEXURE – II BIBILIOGRAPHY
BOOKS:
1. Kothari, C.R., Research Methodology-Methods & Techniques, New Delhi, New Age International (P) Ltd., Second Edition, 2004. 2. Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons Publishers, Thirty Fourth Editions, 2005. 3. Philip Kotler, Kevin Lane Keller, Abraham Koshy, Marketing Management, New Delhi, Twelfth Edition, 2006. WEBSITES: 1. www.hngil.com 2. www.msn.com/market potential 3. www.wikipedia.com/distribution channel 4. www.tutorial4u.com/consumer behavior
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