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Analysis of the Distribution Channel and the End Customer of Stanley Hand tools for B2B Market in Pune Submitted by Saurabh Bhattacharya PGDM(IB) Roll no-IB09257 Under the guidance of Prof .A.K.Biswas BIMTECH & Mr.Sumit Srivastava Stanley Works, India 1
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Analysis of the Distribution Channel and the End Customer of Stanley Hand tools for B2B Market in Pune

Submitted by Saurabh Bhattacharya PGDM(IB) Roll no-IB09257 Under the guidance of Prof .A.K.Biswas BIMTECH & Mr.Sumit Srivastava Stanley Works, India

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Summer Project CertificateThis is to certify that Mr. Saurabh Bhattacharya Roll No. 09IB257 a student of PGDM (IB) has worked on a summer project titled Analysis of the Distribution Channel and End Customer of Stanley Hand Tool for B2B Market in Pune at Stanley Works, India after Trimester-III in partial fulfillment of the requirement for the Post Graduate Diploma in Management programme. This is his original work to the best of my knowledge.

Date:___________

Signature ________________ (_________________________)

Name of Faculty

BIMTECH SEAL

Industry Certificate

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AcknowledgementIt is a matter of great pleasure to acknowledge the guidance, enormous assistance and cooperation extended to me from every corner, while proceeding with my internship My first word of gratitude is due to Mr. Sumit Srivastava Sales Officer, my corporate guide, for his kind help and support and for his valuable guidance throughout the project. I am thankful to him for providing me with necessary insights and helping me out at every single step. I would also like to thank Mr . Kuldeep S. Bhardawaj as he found me credible enough to work for Stanley Works India (P) Ltd My heartfelt thanks to my respected Faculty Guide Prof.A.K.Biswas, Birla Institute of Management Technology, Greater Noida, without his continuous help the project would not have been materialized in the present form. His valuable suggestions helped me at every step

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I would also like to express my gratitude to all other people who had extended their helping hand directly or indirectly throughout the internship, and without whose help my internship would not have been completed. I would also like to thank my parents for their guidance and support. They have remained a source of inspiration for me

Saurabh Bhattacharya IB09257 PGDM-IB

Executive SummaryThe Stanley Works, The 167 year old company is a worldwide manufacturer and marketer of tools, hardware and specialty hardware products for home improvement, consumer, industrial and professional use. The company stills bears not only Frederick Stanley's name but also the spirit and passion that drove him to succeed where others failed. Stanley India, a fully owned subsidiary of Stanley Works, U.S. having its head quarters in Delhi, started its operations in the year 2007. They import their own products manufactured in different countries and sell those in Indian Market with the help of its extensive chain of distributors & dealers. In the past one year, Stanley has been able to appoint more than 170 + distributors all over India. The U.S. hand tool industry is estimated to be a $6.2 billion. Hand tool demand, including power tool in the United States is expected to rise 3.1% annually through 2011, reaching $14.3 billion, according to a recently released report4

All the products of Stanley are categorized into 3 segments: Hand Tools, Hardware, Assembly technology and Hydraulics. In India, Stanley has launched nearly 2400 products, and is in the process of launching more. Presently, Stanley India is focusing on Industrial Tools and Hardware business in India India has a competitive advantage in the hand tool industry compared to other countries because of easy availability of raw materials, entrepreneurship skills and skilled labor at competitive wages. The hand tool industry as a whole is witnessing a shift of manufacturing base from traditional manufacturing countries in Europe and Taiwan to the developing world and this is a good sign for India to benefit. There has been an average growth of 17% per annum of the hand tool market in India for the last 7 years. The study covers the business development potential and the study of the buyers behavior of Stanley hand tools for B2B market in Pune region. The study started with the much needed product training by the Stanley employees. A tour to the Authorized Distributor and Dealer of Stanley in the city was carried out under the guidance of the Industry mentor. The Hand Tools industry is a very labor intensive industry. The field study started with gaining knowledge about the industries in Pune and their needs and requirements vis--vis hand tools. This was done on a daily planned visit to the Industries in and around Pune city. A 6 day weekly plan was prepared and followed so as to target one location of the city per week. Companies were segmented in such a way they could be potential customers for Stanley hand tools in future. A comparative study of different brand of hand tools used in different industries was carried out by meeting different end users of the company.

The respondents were interviewed on the basis of a structured questionnaire. Some points were also noted on the basis of my own observation during my visits to the manufacturing plants. The comparison was done on parameters like quality, price, performance, availability, durability, design, maintenance, functionality, customization, after sales service (ASS), lead time, discount offered. This was judged on Likert scale. Some open ended and closed ended questions were also asked to the respondents. Quotations were sent to companies after receiving request for the same. On the basis of this study and my observations some critical recommendations were made at the end of this report. If these recommendations are applied, it will boost the sales and create an awareness of Brand in the B2B market of Pune. Recommendation for better advertising and promotion was made. The company needs to work on its branding awareness. It is highly recommended that Stanley use testimonials from satisfied users to increase brand awareness. Certificates from Satisfied Stanley customers must be used as a proof. To expand the market in India, it is important to realize the price sensitive customers. The company must justify the price premium. Either increase the volume of sales or reduce the cost of production. Demonstrate to the customers that the performance of Stanley product is better.5

Provide tools for usage as samples. It is a general perception of the customer that since the office is not located in the city the after sales service will not be effective. Hence a regional office must be set up in the city Rs.1.5 crore pa is the Stanleys held value in Pune Rs.1.6 crores pa is my proposed potential value in addition to the existing value. My proposed potential is little more than 100% of the existing value generated from Pune. Target the premium segment, then target the next segment. To target the less premium segment bring down the price and sacrifice the price premium to increase the volume of sales. Pune is a developing city with large number of top manufacturing companies. These companies are potential customers of Stanley. The sales force in Pune should be increased. Sales force should not only communicate value but create value. Value can be providing innovative solutions. It is also recommended to have a warehouse or an exclusive showroom in the west region. Concentrate on customers need, attitude and changing behavior due to the market fluctuations. Make the products available to the customer as quickly as possible.

Table of ContentContent Chapter I: Introduction Chapter II: Objective 2.1 Primary Objectives 2.2 Secondary Objectives 2.3 Scope of the Study 2.4 Limitations of the study Chapter III: Methodology of study 3.1 Reach of the Project 3.2 Research Plan 3.1.1 Data Sources 3.2.2: Research Approaches 3.2.3: Research Instruments 3.2.4: Sampling Plan 3.3: Collection of Data and Analysis 3.4: Findings & Recommendations6

Page No.9 11 11 11 11 11 12 12 12 12 12 13 13 13 13

3.5: Steps Involved 3.5.1: Literature study 3.5.2: Expert opinion 3.5.3: Descriptive study 3.5.4: Scaling technique 3.5.5: Designing questionnaire 3.5.6: Deciding the sample size 3.5.7: Data collection 3.5.8: Analysis of the data collected 3.6: Plan of data analysis Chapter IV: Industry and Company analysis 4.1: Company Overview 4.1.1: Authorized Distributors: 4.1.2: Authorized Dealer 4.2: Stanleys Valued Customers Chapter V: Analysis and Findings 5.1: Industry Segmentation 5.2: Analysis of the Respondents 5.3: Awareness of Stanley in the Market 5.4: Source of Information about Hand Tools 5.5: Most widely used Hand tools in the Industry 5.6: What are the Hand Tools generally used by the respondent 5.7: Frequency of the Purchase 5.8: Tools that Break or dont function properly 5.9: Result of the Factor Analysis 5.10: Satisfaction level of the present Hand tool 5.11: Decision Maker in the Company Chapter VI: Conclusions and Recommendations Chapter VII: Bibliography Annexure I: Company History Annexure II: Stanley products Annexure III: Literature Support Annexure IV: Potential of the companies Annexure V: Details of the company visited in Pune Annexure VI: Details of Factor Analysis Annexure VII: Questionnaire Annexure VIII: Standards

13 13 13 13 13 13 13 13 15 15 16 16 22 22 23 24 25 25 26 26 27 28 29 29 30 34 34 37 40 41 50 57 62 64 67 80 83

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Chapter I: IntroductionThe Stanley Works is positioned to meet tomorrow's competitive challenges and continue as a leading worldwide manufacturer and marketer. Our businesses are diversified in terms of products, geographic spread and channels of distribution. We have moved effectively to expand our products into new market areas such as the Far East and Eastern Europe. Today, the Stanley name is known around the world as a reliable guarantee of quality and value. The Indian operations of Stanley is involved the Laser Products Hardware Hand Tools Proto The most popular product category is hand tools. The tools, which are operated by hands, are known as hand tools. Hand tool products include a broad category of hand tools. Hand tool products are broadly used in all type of industries. Today technology has become highly advanced but still the importance of hand tools products cannot be ignored. In fact hand tool products are the backbone of all the industries; no matter how advanced are the machines and technology used there. No industrial process can be executed without using hand tools.8

As machine can never replace importance of mankind the same way automatic tools can never take place of hand tools. The use of hand tools is must in every kind of industrial job but sometimes it is not promptly noticeable. Even if the entire process is executed by automatic tolls and machine, then too hand tools are required for additional jobs like packing, finishing etc. Furthermore the efficient working of machine is also dependant on hand tools. Hand tools are essentially required for repair and lubrications of machines. Apart from this they are widely used for home repairs, garages, electrical appliances etc. A kit full of primary hand tools products may be easily found at any home. Hand tools are used to execute very complex as well as simple tasks. Screwdriver is such a common hand tool product, which is the part of every engineers tool kit as well as in every household. Spanners, screwdrivers, pliers, clamps, riveters, wrenches etc., are used for tightening and riveting the various screws etc. Hand tool products are designed to carry easily. Thats why every vehicle has its own set of hand tool products. It can be used in time of any breaking of machine where one does not find any help. Hand tool is a savior in time of need. A kit of hand tools products is like a first-aid box for machinery.

Factors to consider for the growth of the hand tool industry Hand tool industry is a growing one. Developed countries like EU, USA have already been manufacturing and exporting hand tools since a long time. Developing countries like India, China, and Japan are coming up. Some factors that are to be considered for the overall development of the industry are as follows:

Manufacturing centers should be equipped with the latest hand tool manufacturing technology. For small, medium scale entrepreneurs in the developing areas, credit should be made available to them at lower rates of interest. This industry is usually a part of hand and power tool industry as a whole. Hence, steps should be taken to built up a Hand Tool Industrial Estate, exclusively for the Hand Tools Units, in all countries. Labor laws of all countries dealing with hand tools should be made more investor friendly, especially for small entrepreneurs.

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Pune has a large potential market for Stanley Hand-Tools. Stanley Hand tools are manufactured in different locations outside India. A warehouse in Sonipat stocks all the materials and is supplied to the distributors from here. Pune is a base of leading Automobile companies in India. Stanley already supplies to Automobile Companies like: Mahindra Volkswagen Mercedes Benz General Motors Fiat Premier Kinetic Motors Dilip Chabria Design (DC Motors) As the market research was done to B2B market the sample size was taken as 65. The data was collected from purchase managers and end users. Certain care was taken to avoid errors of history as the consumers were all contacted at the place of location. The other errors were either avoided or even though present it was cancelled out due to the presence of the same with other brands. The problems that I had to study during my internships in Pune are: understanding the buying behavior of the customers and the business development potential for Stanley Hand Tool B2B market

Chapter II: Objective and Scope2.1: Primary Objectives To assess the scope for the business development of Stanley Hand Tools in Pune. To study the Decision making behavior. 2.2: Secondary Objectives To find the potential for Stanley Hand Tools in the existing market. To find the hand tools purchasers needs and the expectation on hand tools. To identify potential customers and new plants where business development can truly happen 2.3: Scope of the Study The study provided an insight into the hand tools usage, expectations and attitude towards hand tools like spanners, pliers and screw drivers. And to find out what factors the customers seek in general, with regards hand tools. This study will help to find out the feedback of Stanley hand tools with regards to price, brand, quality, durability, reliability, availability, etc.10

2.4.: Limitations of the study No research would be a fool proof, 100% error free with the time/ money constraints and within the limited resources. My research study was no exception. I too had my own set of problems in terms of price, availability and with the fact that I was a first timer in this field The first limitation could be the fact that Expert opinion. Depth interview and all the Descriptive studies were conducted on a sample size of 65. Though these techniques were conducted to unearth it still could be limited. Next limitation would be the fact that the sample size of 65. More the sample size more detailed study would be. The sample taken for creating the model included people from various industries in Pune. The conclusions made are based on the data collected from the sample size. So the conclusion are based how truthfully the people entered the data. These were some of the limitations identified during the course of my research

Chapter III: Methodology of StudyThe projected was executed in such a way that it is complete to the maximum extent covering all the aspects and thus arriving at a suitable conclusion to meet the objective of the project. Few recommendations were also suggested to the company, which can help the organization to grow further and penetrate faster into the new markets. 3.1: Reach of the Project The study was conducted covering the geographical region of Pune. The reach of the project consisted of various industries and dealers located in these above mentioned areas. 3.2: Research Plan The research was started with a well laid research plan and weekly schedule. The research plan included the following important stages. 1) Data Sources 2) Research Approaches 3) Research Instruments 4) Sampling Plan11

3.2.1: Data Sources Primary Research: most of the data in this project was through primary research conducted in industries. It was done completely through personal interviews, though a prepared questionnaire was used as guide line and which was later filled summarized. Secondary Research: Latest information available on internet about various industries and dealers was also used apart from the data got through primary research, so as to have a good study of the hand tools market in Pune 3.2.2: Research Approaches Approaching Customers/Industries: Getting permission into an industry would complete almost 50% of your job as it would give the platform to know about their operations. Get the details of the persons as many as possible in the industry Spend your maximum time in the industry, so that you would know what the work Environment is i.e., whether they are using quality products, how much of their operations are being done by contractors, what is their hand tools purchase quantity and frequency of purchase, etc. Also try to find out how the process of purchase takes place, which might be different for different departments. Closing the sale: This is very important for both the parties to build the relation and also for oneself as this give motivation and adds more value to your work. To reach to this stage, one must be clear how much work needs to be put in, which operates as a funnel like, if u want to reach or make x sales at least you need to meet 10x customers. The time in which you would achieve this should also be planned in the similar way. 3.2.3: Research Instruments The research instrument was both qualitative and quantitative and hence consisted of personal Interviews, which were guided by self prepared Questionnaires. Each of the questionnaire consisted of 12 questions on an average. The questions were both open ended and closed ended. The closed ended questions were a diverse type consisting of single choices, multiple choices, likert scales and rating scales. 3.2.4: Sampling Plan The industries to be visited were based on their type of industry like Automobile Manufacturing and assembly units, steel Plants, chemical industry, Fabrication Industry, and any other major industries. The sample for studying the end user of Hand tools was chosen to be 65 from 38 different companies visited. These included users from different departments of the Company. Initial leads were taken from 2 Distributors and 1 Dealer in Pune under the guidance of the Industry Mentor. 3.3: Collection of Data and Analysis

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Various Pie-charts and bar-graphs are made to have an easy and quick understanding of the study conducted. Initially all the questionnaires were analyzed individually, and then finally an overall comparison of the various responses from all the dealers was done and analyzed. 3.4: Findings & Recommendations Finally, the various findings from the study were listed out along with certain invaluable recommendations for STANLEY, to help the company generate and tap the new markets. 3.5: Steps Involved The following steps were followed to attain the objective. 3.5.1: Literature study There is no specific study, which was done on identifying hand tools purchasers purchase behavior. 3.5.2: Expert opinion Expert opinion is the process where an expert in the related field is interviewed to get information that can be used in the study. In this case distributors, dealers, sales officers, marketing manager of Stanley for south and purchase managers of industries which use hand tools are considered as an expert. 3.5.3: Descriptive study The descriptive research design used in this case is survey method and personal interview. Personal interview with various industry purchase managers made the researcher to find some of the factors and ideas by observation, hearing their grief and interacting with them.

3.5.4: Scaling technique The scaling technique used in the questionnaire was likert scale, open, closed ended and ranking scale. All the questions in the main questionnaire were extracting answers by this scale. This was maintained throughout the questionnaire to keep the reliability and validity in control. The likert scale technique is widely used to determine the level of agreement or disagreement of an issue in the questionnaire. And another set of likert scaling were used to determine the most important and least important of an issue in a questionnaire. The scale was designed with five response categories as shown below. 1---Most important 2---Important 3---Neutral (Neither important nor unimportant) 4---Less important 5---Least important

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The questionnaire when framed was carefully done to avoid complex words. In circumstances where such words could not be avoided, explanations were given for the respondents to understand easy. The ambiguous words or sentences were also avoided. Each section of the questionnaire had an initial explanation of how to answer the questions. An example was also given for easy understanding of filling the questionnaire. Important instructions were highlighted in bold letters to improve the vision and for a quicker understanding of the instructions by the respondent. The questionnaire was altered on and off as required. The corrections were made and then it was tested amongst the respondents. The respondent didnt have any problem in understanding the questionnaire and answering it. 3.5.5: Designing questionnaire Based on the results obtained from the descriptive study and using scaling method the final Questionnaire was prepared and administered to the respondents. 3.5.6: Deciding the sample size The sampling technique used for the research was more of a stratified random sampling. This is because of the customers who were all possible to meet were selected. The sampling was done as mentioned above due the lack of time to get data. 3.5.7: Data collection Data was collected from both purchase managers and end users using stratified random sampling. The researcher went to each of them and conducted a depth interview, which takes almost 1520 minutes. The sample was about 65 potential customers for Stanley Hand Tools The data for the questionnaire was collected directly and through e-mail from purchaser mangers and end users. The data was collected from most of all industries in Pune only. Using the data collected by the researcher was able to come with factor analysis to see whether the factors are really related to the buying decision. 3.5.8: Analysis of the data collected All the data collected was fed into a database created in Microsoft Excel especially for this purpose. The various tools and functions available on excel were used for necessary calculation. Bar graphs and pie charts were generated to make the interpretation of the results easier. SPSS software was used for the purpose factor analysis. Data analysis model is econometric model and was planned to be done with the statistical tool SPSS. The data was got mainly in the likert scale for this purpose. The various tools and functions available on Excel were used for necessary calculations. Bar graphs and pie charts were generated to make the interpretation of the results. SPSS software was used for the purpose of factor analysis. 3.6: Plan of data analysis The data analysis done as in the plan given below 1. Filtering of the questionnaire were done14

2. The questionnaires were sorted into the respective groups 3. Coding of the questions were done 4. All the data was entered into different excel sheets 5. This data was copied to the SPSS tool all the variable were explained 6. The other questions related awareness, departments, ranking and current brand were analyzed using Micro soft Excel. 7. Results were tabulated and conclusion and recommendations were drawn.

Chapter IV: Industry and Company Analysis4.1: Company Overview.It is 167 years old company. Stanley is a number one Brand in the U.S and Europe. "The secret of this company's success is an open one -- all who will may avail themselves of it, and all who do so will succeed -- one word tells it all and that one word is Excellence With products sold in more than 130 countries, the Stanley brand is recognized worldwide. From crisis comes OPPORTUNITY. The chance to emerge BETTER than ever before. By remaining committed to our guiding PRINCIPLES. And TRANSFORMING a LEGACY established over a century ago. Todays Stanley is lean, flexible, diverse, and focused on long term GROWTH. Todays Stanley is READY for tomorrow

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The Stanley Fulfillment System (SFS), created to encompass and improve upon Stanleys long tradition of operations excellence, is the heart of our business operations. Its a continuous improvement program focused 100% on the needs of our customers and a comprehensive business system that guides the way we work every day. SFS is at once our blueprint for success and our roadmap for continued growth.

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At the heart of SFS are three simple, customer-facing goals:

Improve Service Increase Quality Reduce Costs

Service, quality and costs have always been strengths at The Stanley Works. SFS is our commitment to making them even stronger

Stanley also has a good portfolio of brands many of which are strong leaders in their categories.

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Stanley has recently merged with Black & Decker

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Stanleys Strategic FrameworkBe A Consolidator Of The Tool Industry Increase Relative Weighting Of Emerging MarketsBe Selective and Operate In MWhere: Brand Is Meaningful (Stanley Or Sub-Brand) Value Proposition Is Definable And Sustainable Through Innovation Global Cost Leadership Is Achievable.Pursue Growth On Multiple Fronts Through: Building On Existing Growth Platforms Developing New Growth Platforms over Time. Accelerate Prss Via Stanley FulfillSystem Increased Scale In Hand And Power Tools Greater Presence In Latin America, Middle East and Eastern Europe Significant Brand Equity Extensive Array of High Value-Added Products And Strong Culture Of Innovation Bringing Together Two Cost Leaders Increased Size And Scale Adds Attractive New Engineered Fastening Growth Platform

Ownership 50.5% Stanley / 49.5% Black & Decker Company Name Stanley Black & Decker

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All the products of Stanley are categorized into 3 segments: Hand Tools, Hardware, Assembly technology and Hydraulics. In India, Stanley has launched nearly 2400 products, and is in the process of launching more. Presently, Stanley India is focusing on Industrial Tools and Hardware business in India. Some of the valued customers of Stanley India are Tata Motors, Airtel, Nokia, Mahindra, DMRC, etc.

No. of Distributors for Stanley Products in India: PROTO Hardware Laser Products Stanley Hand Tools 5 20 8 140

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

Geographical reach of channels in India20

Stanley India Hierarchy ChartIndia General Manager

Regional Managers

Business Development Distribution Stanley follows a hybrid distribution system.21

Sales Officers

At present Stanley has three channel partners in Pune-two Authorized Distributors and One Authorized Dealer. 4.1.1: Authorized Distributors: Bhaigora Enterprises: LocationRasta Peth Indian Tools: LocationChakan 4.1.2: Authorized Dealer Super Hardware: LocationPimpri Deficiency: No regional office in the city. Stanley is rated high on the price factor when compared to its competitors in India. Some of the Competitors of Stanley Tools in Indian Markets include Taparia Everest East Man Snap On Ambika Bahco, Blue Point Sioux Multitec Mac Master Jhalani. Amongst all, Taparia is the biggest competitor for the Stanley Tools. Irony is that Stanley Works is expanding in India when Taparia is expanding its operations in European Markets Since the company has channel partners in the city, the service provided is done by the company. Hence the company has an active role to play The company has a good market in Pune. The revenue generated by the Pune market is approx Rs.1.5 crores p.a Stanleys customers in Pune Mercedes Benz Volkswagen General Motors Mahindra Fiat MTN Indian Army The Authorized Distributors/Dealers are allocated different locations of the city for business. A company representative is available to cater the market of Pune. Other than the company representative the Distributor and the Dealers Executives also play a vital role in generating and exploring the business development potential in the city. Since the Distributors/ Dealers already cater to some part of the market in the city, they are a useful tool in converting and convincing the End Users to use Stanley Hand Tools rather than the local made Hand Tools.

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4.2: Stanleys Valued Customers

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Chapter V: Analysis and FindingsThe City of Pune is a hub of Manufacturing companies Atlas Copco, Alfa Laval, LG, Finolex Cables etc, and leading Automobile making companies Force motors, DC motors, Tata Motors, Fiat, Premier Motors etc.. Segmentation was done on the basis of customers who want same type of benefits or solution to a problem from the offered product. Demographic variable was also considered. It was important for me to understand the Key Organizational Characteristics of the buying organization while segmenting the Companies. Segmentation Now I have done Macro and Micro segmentation Macro Factors Size of the organization Location Organizational structure Micro Factors Decision making Unit Characteristics Buying behavior Since I have to study the buying behavior, I have segmented the customers on the basis of buying behavior. Different companies were targeted so as to cover as many companies as possible divided geographically across the city limits. 4 such major locations were chosen. A weekly plan was made and followed so that one particular location was covered. The locations are Hinjewadi Pirangute Pimpri-Chinchwad Chakan I chose 38 companies after studying the companies on a daily basis and taking appointments. There was a weekly plan made and also followed. The potential of the Pune market that I surveyed is Rs.1.63 crores. Details have been put in the Annexure IV

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5.1: Industry SegmentationNo.of respondents 4 1 30 2 1

Sector Automobile Chemical Engineering /Manufacturing Fabrication Steel Plant

Manufacturing and Engineering industry is the main customers for Stanley. 79% of the respondents were from such industries. 5.2: Analysis of the Respondents Different end users from various departments were interviewed so as to get a wide feedback about the study. Other departments include Vendor Development, Operations, and Quality Control.Segmentation Of Customers Purchase Maintenance Vendor Development Operations Poduct Development Quality control Production No.of respondents 20 21 1 4 5 1 13

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65 End Users including purchase managers of various companies were interviewed. Out of the 65 respondents, 31% were Purchase managers, 32% were Maintenance Incharges, and 20% were Production Managers 5.3: Awareness of Stanley in the Market 15% of the respondents are aware of Stanley Hand Tools.

Awareness Of Stanley Yes No

No. of respondents 10 55

5.4: Source of Information about Hand ToolsSource of information Present vendor Stanley representative Seminars or exhibition Friends or peers Others No.of respondents 20 10 8 22 5

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The data shows that 31% of the respondents admit that they get the Information about Hand tools from their local vendor. Distribution channels are hence proved effective. A significant number of respondents (28%) have admitted that word of mouth of a good product can spread like grapevine. Another 18% of the respondents visit exhibitions and seminars. 5.5: Most widely used Hand tools in the Industry 20% of the respondents admit that Spanners are the most widely used Hand tools after Allen Key (34% respondents agree that Allen Keys are most widely used).

Most widely used toolsSpanners Torque Wrench Hammers Hex Keys/Allen Keys Pliers Crimping Tools Tool Kits

No. of respondents13 8 2 22 10 2 8

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5.6: What are the Hand Tools generally used by the respondent 45 of the respondents out of 65 use Taparia Brand Hand tools, i.e. 69%. Only 6% of the respondents use Other Important Brands.

Hand tools Used Taparia Everest CromwellOthers Jhalani Gedore

No. of respondents 45 8 2 4 4 2

Majority of the customers use Taparia made tools in the Industry. 69% of the respondents admitted that they use Taparia make tools

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5.7: Frequency of the Purchase 51% of the respondents purchased hand tools yearly, 6% purchased Half yearly, 3% purchased Quarterly and 40% purchased once in 2 yearsFrequency of purchasing Hand tools Yearly Half yearly Quarterly In 2 years No. of responses 33 4 2 26 65

5.8: Tools that Break or dont function properly.

Tools that frequently breakHammers-Breakage Screw Driver-Breakage Jaw Pullers Torque Wrench

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No. of respondents23 7 5 30

35% of the respondents complain about Hammer breaking from the T joint. It is important to note at this stage that only 3% of the respondents admit that Hammer is most commonly used tool in their company. Majority of the respondents complain about Torque Wrench not functioning well. Again 12% of the respondents have agreed that Torque Wrench is the most widely used Hand tool.

5.9: Result of the Factor Analysis The 12 items of Stanley were subjected to principal components analysis (PCA) using SPSS Version 16. Prior to performing PCA the suitability of data for factor analysis was assessed. Inspection of the correlation matrix revealed the presence of many coefficients of .3 and above. The Kaiser-Meyer-Oklin value was .703, exceeding the recommended value of .6 (Kaiser, 1970, 1974) and the Barletts Test of Sphericity (Bartlett, 1954) reached statistical significance, supporting the factorability of the correlation matrix. Principal components analysis revealed the presence of four components with eigenvalues exceeding 1. Then I decided to consider 3 factors. To aid in the interpretation of these three components, Varimax rotation was performed. The three component solution explained a total of 50.469 per cent of the variance, with Component 1 contributing 20.146 per cent and Component 2 contributing 17.155 per cent and Component 3 contributing 13.169 per cent. The results of this analysis have reduced the 12 factors to three. Main loadings on Component 1 are items Quality and Durability The main items on Component 2 are Maintenance and Functionality The main items on Component 3 are Price and Discount Details of the factor analysis has been provided in Annexure VI

Varimax rotation for 3 factor30

Now we reduce the factors to three and repeat the same process Varimax rotation-3 factor

Total Variance ExplainedCompone nt Initial Eigenvalu es Initial Eigenvalu es Initial Eigenvalue s Extractio n Sums of Squared Loadings Rotatio n Sums of Square d Loadin gs Rotation Sums of Squared Loading s Rotation Sums of Squared Loadings

Extractio n Sums of Squared Loadings

Extraction Sums of Squared Loadings

Total

% of Variance

Cumulati ve %

Total

% of Varianc e 25.713 13.660 11.096

Cumulati ve %

Total

% of Varianc e 20.146 17.115 13.169

Cumulati ve %

1 2 3 4 5 6 7 8 9 10 11 12

3.086 1.639 1.331 1.109 .933 0.842 0.728 0.666 0.448 0.438 0.416 0.363

25.713 13.660 11.096 9.245 7.776 7.014 6.064 5.553 3.736 3.647 3.467 3.029

25.713 39.373 50.469 59.714 67.490 74.504 80.568 86.121 89.857 93.504 96.971 100

3.086 1.639 1.331

25.713 39.373 50.469

2.417 2.059 1.580

20.146 37.300 50.469

Extraction method: Principle component analysis.

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Component Matrixa Component 1 Quality Durability Price Availability Performance Customization Design Manitenance Reliability Functionality Leadtime Discount .418 .630 .802 .550 .556 .602 .427 .377 .572 .459 .475 -.462 .615 .524 -.375 -.338 .504 .484 2 3 .492 .410 .517 -.315

Extraction Method: Principal Component Analysis. a. 3 components extracted.

Component Transformation Matrix Compo nent 1 2 3 1 .778 -.288 .559 2 .578 .678 -.455 3 -.248 .677 .693

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

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Rotated Component Matrixa Component 1 Quality Durability Price Availability Performance Customization Design Maintenance Reliability Functionality Lead time Discount Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations. .397 .581 .685 .325 .381 .497 .654 .813 .377 .504 .699 .557 .813 .734 .793 2 3

Interpretation of Varimax Rotation In the table labeled Total Variance Explained there are only three components listed in the right-hand section (as compared with four, in the previous un rotated output which is mentioned in the Annexure VI in detail). This is because I asked SPSS to select only three components for rotation. The distribution of the variance explained has also been adjusted after rotation. Component 1 now explains 20.146 per cent of the variance and Component 2 explains 17.155 per cent and Component 3 contributing 13.169 per cent. The total variance explained (48.2 per cent) does not change after rotation, just the way that it is distributed between the two components.

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5.10: Satisfaction level of the present Hand tool The following data shows that 52% of the respondents (46% Excellent and 6% Good) are actually satisfied with the present hand tools, and 48% of the respondents are under the satisfaction level

Satisfaction level of present Hand tools 1-Excellent 2-Good 3-Neutral 4-Bad 5-Dissatisfactory

No. of respondents 30 4 4 12 15

5.11: Decision Maker in the Company

Decision maker while purchasing the equipmentsEnd User Purchase Department

No. of respondents50 15

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The above data shows that majority of the time the decision maker is the different end users in the company. Different department will have their different requirement and they in turn ask the Purchase Department to order the particular tool. In some companies it was observed that the Purchase manager is the decision maker, though the percentage is very less approx 23%. 77% of the respondents are End Users who are the decision makers when it comes down to take decisions on which company tools are to be purchased An open question was also included to the 15% of the respondents who were aware of Stanley as a brand of hand tools. They were asked the reason why they did not buy Stanley Hand Tools. 60% of the respondent did not purchase Stanley products of its high price, 30% of the respondent fear that after sales service will not be available since there is no office in Pune.Reasons for not purchasing Stanley tools High price After sales service availability No. of respondents 6 3 1

35

After my study it was clear that the Brand awareness of Stanley in the market of Pune is very low. Only 15% of the respondents knew Stanley as a brand of hand tools. The remaining 85% of the respondent are also potential customers of Stanley, but are not aware of the companys existence in the market. Few factors that needs to focused are Quality and Durability Maintenance and Functionality Price and Discount (according to the factor analysis performed earlier)

36

Chapter VI: Conclusions and RecommendationsConclusion Advertising and Promotion are not very effective RecommendationsTake part in Auto shows in India or up-coming Trade Shows in India like IndiaMART AMTEX 2010 (Asian Machine Tool Exhibition) from, July 23-2010to 26th July 2010 to be held in New Delhi. Automation 2010 in Mumbai-Bombay Exhibition Centre - NSE Exhibition Complex, Mumbai, India from September-21-2010 to 24th Sep-2010 Other than participating in such events, the company should also Advertise and create an awareness in the Industry. This can be done by advertising in Auto magazines, Business magazines, TV advertising. Collaboration with Automobile companies-so that they can promote Stanley tools as a recommended tool kits for assured safety. Conclusion: Only 15% of the respondent I surveyed was aware of Stanley as a Brand. Recommendations Word of mouth is the best way of advertising. It is highly recommended that Stanley use testimonials from satisfied users to increase brand awareness. Certificates from Satisfied Stanley customers must be used as a proof. Organize regular corporate functions like Dinners, where Stanleys top executives can interact with the executives from the Industry. Complimentary stationeries with Stanley logo should be distributed among these executives. This will definitely increase the Brand awareness among the local executives. Brand is a distinctive identity of the company, it promises value. Without a great product and service there can be no successful Brand. Having a brand with high perceived value in the minds of the customer will set a stage for a long lasting relationship. Conclusion: The Price structure of Stanley equipments is very high. Most customers are not convinced about the price premium that they have to pay when they buy Stanley products. To expand the market in India, it is important to realize the price sensitive customers. The company must justify the price premium. It is difficult to convince the customers to purchase Stanley products on the grounds that Stanley products have better and long lasting life cycle. Recommendations: Either increase the volume of sales or reduce the cost of production. Demonstrate to the customers that the performance of Stanley product is better. Provide tools for usage as samples. Look at the cost effective measures that can be taken to reduce the price, this was out of the scope of my study; hence I cannot comment anything on the pricing factor. But certainly this should be considered.

Conclusion:37

No Regional Office Recommendation: It always helps to set up a regional Office in the city. According to my research a majority of the Customers are worried about the After Sales Service (ASS). The very fact that there is no office in Pune and there is only one office in New Delhi i.e. the corporate office forces the customer to think once again before taking any purchase decision. It is a general perception of the customer that since the office is not located in the city the after sales service will not be effective. Conclusion: The Pune market has a very high potential for Stanley hand tools. According to my study the potential of the market is Rs.1.63 crores pa. Rs.1.5 crore pa is the Stanleys held value in Pune Rs.1.6 crores pa is my proposed potential value in addition to the existing value. My proposed potential is little more than 100% of the existing value generated from Pune. Recommendations: I have already send quotations worth Rs.10 lac approx. Follow up on these orders. Target the premium segment, then target the next segment. To target the less premium segment bring down the price and sacrifice the price premium to increase the volume of sales. Pune is a developing city with large number of top manufacturing companies. These companies are potential customers of Stanley. In my report I have mentioned the names of the top companies in India which have manufacturing plant in Pune. Apparently these were never targeted. If these companies are tapped, the sales will increase drastically. Conclusion: Small sales force. Recommendation: Geographically the city limits is very large, hence it is strongly recommended to increase the sales force team. Practically it becomes difficult for one sales officer to handle so many regions and so many companies. This results in delay of response. Sales force should not only communicate value but create value. Value can be providing innovative solutions. Conclusion: No warehouse or showroom in the city Recommendation: Since all the equipments are not stocked with the local Distributor, it is strongly advised to have a warehouse in the west region. I faced such situations many times when the customer wants to have a demo of the product and it is not available with us. To add on to it the lead time is very high. One of the top executive I visited recently rightly said in India, its a tendency to dig a well only when you are thirsty. This is very critical but a soft learning for me, which also makes it obvious that customers want quick service, if they do not get quality product when they need it, they compromise on the quality and order the product from the local market, which is delivered to them in less than the promised time by Stanley.

38

Conclusion: I observed that it is a tendency in the industry to reject the product when they realize that it is made in china. (To add on to this the price is high) Recommendations: It is very important to change the perception of the end user. Most of the Stanley equipments that are available with the Distributor are either made in Taiwan or China. This gives a very negative impression of the company in the minds of the end user. It is strongly recommended to procure equipments which are manufactured in some other place. If this is not possible then the printing on the package should be made in English rather than Chinese. Conclusion: Less Market penetration Recommendation: Customers choose the offer that meets their needs or requirement better than any other at a price they are willing to pay. The solution is to provide benefits to the customer-relationship benefits. Concentrate on customers need, attitude and changing behavior due to the market fluctuations. Make the products available to the customer as quickly as possible. All my decisions have been taken based on the responses and my analysis about the same.

Chapter VII: Bibliography39

www.stanleytools.com www.stanleyblackanddecker.com www.industrialtools.in www.wikipedia.com www.agelessmarketing.com www.marketingprofs.com www.hand-tools-manufacturers.com www.faqs.org/sec-filings/091103/STANLEY-WORKS_8-K/ex991-.htm www.hti.org/0410HTIStandards.htm www.hand-tool-manufacturers.com/suppliers/ www.learnmarketing.co.uk/consumer.htm

Annexure I: HistoryHistory and Growth40

In 1843, an enterprise businessman named Frederick Trent Stanley established a little shop in New Britain, Connecticut to manufacture door bolts and other hardware from wrought iron. Mr. Stanley was the first Mayor in town; he brought New Britain rail service, gas lighting and a reservoir-fed water supply. In 1930, Stanley invented the tape rules. Stanley tools have built nearly every home, school, church and hospital in America. Stanley Air tools build nearly every car and truck made in North America. Millions pass through Stanley Automatic Doors each day. Stanley Works

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42

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The Legend of Stanley

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Stanley Platforms.A) Consumer Tools. A world leader in the design, development and delivery of tools, Stanley brings to market the strongest and most innovative tools available. With thousands of products on the market and Hundreds introduced each year; Stanley develops the tools consumers need to get the job done. Key Brands Stanley, Proto, Husky, Vidmar, ZAG, MAC, Jensen, Contact East, Bostitch, Atro, Cobotics, LaBounty, Innerspace Product categories Industrial hand tools and tool boxes, professional and industrial mechanics tools, electronic diagnostic tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and crushers. B) Security Solutions. An industry powerhouse with a global footprint, Stanley Security Solutions builds on Stanleys development of the first automatic door with integrated solutions that provide wallto-wall security, including doors, hardware, software and service. Stanleys Security Solutions protect buildings, airports and institutions all over the world. Key Brands Best Access, Blick, cj rush, Frisco Bay, HSM Electronic Protection Services, Integrator.com, ISR Solutions, Sargent & Greenleaf, Safemasters, Senior Technologies, Stanley Access Technologies, Stanley Hardware The Stanley Security Solutions Product Group offers a wide array of electronic security products, mechanical security products, integration software, and installation and support services for a diverse set of industrial, institutional, and commercial facility applications. Electronic security, access and safety products manufactured and tested to the industrys highest standards for functionality and long life. Applications include schools, banks, retail stores, hospitals, government agencies, manufacturing facilities, colleges and universities, and utilities, to name a few. Mechanical security products include patented keying, customized master key systems and Quality door and lock hardware. These combine to supply customers with mechanical access control that is cost-effective and efficient. C) Industrial Tools With our powerful professional tools, Stanleys Industrial Tools Group delivers big tools for big jobs. Recognized as leaders in Industrial Tools, our family of brands builds everything from cars and trucks to roofs and floors. Key Brands Stanley, Proto, Husky, Vidmar, ZAG, MAC, Jensen, Contact East, Bostitch, Atro, Cobotics, LaBounty, Innerspace

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Product categoriesIndustrial hand tools and tool boxes, professional and industrial mechanics tools, electronic diagnostic tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and Crushers.

Platforms

Awards & Recognition.A steady stream of new and innovative products is the lifeblood of this company. In 2007, Stanley introduced more than 100 new products, many of which have won awards for great distinctions. The company itself has been triumphant in winning numerous awards throughout the years for packaging, design innovation, communication and advertising. Most recently, Stanley won 4 Golden Hammer Awards in 2007 and also won two IDEA awards in the 2007 International Design Excellence Competition.

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Stanley has earned its industry stripes over the past 160 years being chosen as Vendor of the Year, Innovator of the Year and being included in the book Americas Greatest Brands. Were featured with the likes of Marlboro, IBM, AT&T as well as Coke.

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2007 Golden Hammer AwardsPresented by Home Channel News, Stanley was the recipient of the following four awards at the 2007 Golden Hammer Awards Ceremony: The Vendor of the Year Award. The Innovator of the Year Award for overall new product development in all categories. The Gold Golden Hammer Award for the Hand Tools category. The Business to Consumer Communications Award for the Alien commercial featuring the Stanley MaxLife 369 Tripod Flashlight.

2006 Golden Hammer AwardsStanley was the only multiple award winner at the 22nd Annual Golden Hammer Awards Ceremony, presented by Home Channel News. The awards, based on votes from retailers and buyers, were handed out at a ceremony in Las Vegas at the 2006 National Hardware Show. Stanley won: The Gold Golden Hammer Award for the Hand Tools category. The Business to Consumer Communications Award for the Stanley Sharpshooter Staple Gun World's Weakest Man campaign. The Innovator of the Year Award for overall new product development in all categories. Both the Gold Golden Hammer for the Hand Tools category and the Business to Consumer Communications awards are the highest awards in their category. For the Innovator of the Year award, Stanley was voted number one in new product innovation across all 36 product categories. Brands Acquired. Our innovative Consumer and Industrial products help people utilize their skills, express their creativity and realize their visions on work sites around the globe. Brand names include Stanley, FatMax, Husky, Goldblatt, Bostitch, Jensen, Mac, Proto, La Bounty, Vidmar, CST, David White and ZAG. Our Security Solutions brands include Stanley, Best, Blick and Frisco Bay. Stanley Black & Decker A Powerful Legacy, A future growth with Black & Decker (Acquisition of Black & Decker)

Two Companies with great legacyStanley Established In 1843 By Frederick Trent Stanley, Who Founded A Small Hardware Manufacturing Shop In New Britain, CT 166 Year Reputation For Product Quality And Service 133 Years Of Consecutive Dividends Black & Decker Established In 1910 By S. Duncan Black And Alonzo G. Decker, Who Founded A Small Machine Shop In Baltimore, MD 100 Year Reputation For Product Innovation And Customer Focus 72 Years Of Consecutive Dividends World Class Power Tools Portfolio

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Strategic Benefits A Global Leader In Hand and Power Tools Iconic Brand Portfolio - Over 250 Years Of Combined History Greater Scale In Hand And Power Tools & Storage, Mechanical Security, And Engineered Fastening World Class Innovation Process Global Low Cost Sourcing And Manufacturing Platforms Additional Presence In High-Growth Emerging Markets

Financial Benefits $350M In Cost Synergies Annually Opportunity For Margin Improvement Free Cash Flow Of Approximately $1.0B And Over $1.5B In EBITDA By Year 3 Increased Resources To Invest In Security Solutions, Engineered Fastening And Other High-Growth Platforms Strong Balance Sheet

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Annexure II: Stanley Products

Hand Tools Mechanic Tools: Spanners: This includes Ratcheting Spanners, Ratcheting Geared Spanners, Combination Spanners Ring End Spanners, Double Open End Spanners, Adjustable Spanners, Ratcheting Hook Spanners, Socket Spanners, and Construction Ratchet Spanners.

Figure 1: Ring end spanner, Open end spanner and Combination spannerSockets and Accessories: Sockets Inch & Metric, Ratchets, Flex Handle, Spinner Handle, Universal Joints, Adapters, Bit Adapters, Sliding T-Bars, Extension Bars, Bit Sockets, Speeder Handles, L-Handle, and Offset handles, Impact Sockets & Accessories.

50

Figure 2: Stanley Sockets-Chrome VanadiumAutomotive Tools: Brass Hammers, Feeler Gauge, Oil Filter Strap Spanner, Grease Guns, Stud Removers, Jaw Pullers, Ignition Crimping Tools, Snap ring Pliers.

Pneumatic Tools: Air Ratchets, Reversible keyless Air drill

Figure 3: Stanley Ratchet Tool Sets: Telecommunication Tools Sets, Do-it-all Tool Sets, Electrician Tool Sets, Auto Maintenance Tool sets, all purpose tools sets.

Figure 4: Tool Kits Pliers, cutting and holding tools: Pliers: Insulated Pliers, Basic Pliers, Miniature Pliers, Locking Pliers, Automatic Wire, Strippers, Circlip Pliers, Clamping Pliers, Orceleon Wire Stripper, Chain Grip Pliers. Figure 5: Pliers51

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

Figure 6: Mini Hacksaw Pipe Tools Pipe wrenches, Basin wrenches, Water Plumb Pliers, Tubing cutters, Pipe cutters, Flaring Tools.

Figure 7: Pipe tools Fastening Tools Screwdrivers and Keys: Insulated screwdrivers, Basic Screwdrivers, Tank Thru Screwdrivers, Ratcheting Screwdrivers, Multi Bit Screwdrivers, Testers, Digital Testers, Precision Screwdrivers, Hex Keys, Torx Keys.

52

Figure 8: Screwdriver and Allen Keys (Hex Key)

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

Figure 9: C-Clamp Striking and stuck Tools Hammers: Anti Vibe Hammers, Jacketed Steed Hammer, Fiberglass Hammer, Wood Handle Hammer, Contractor Grade Hammer, Engineering Hammer, Hickory Handle Hammers, Compo Cast Hammers, Rubber Mallets, Soft Face Hammers, Steel Axe.

Figire 10: Ball Pein Hammer Pry Bars, Chisels, Punches, Nails: 4 in One Fu Bars, Pry Bars, Claw bars, Wrecking Bars, Hand Guard Chisels, Cold Chisels, wood curving Chisels, Nail sets , Punches.

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Figure 11: The 4-in-1 Fu bar

Flashlights Led Flashlights, Tripod Flashlights, Mini Tripod Flashlights, Aluminum Alloy Bright , Flashlights, Aluminum Alloy Bright , Chargeable Flashlights. Measuring, Layout and Surveying Tools Layout Tools: I-Beam Levels, Box Levels, Torpedo levels, Line Levels, Chalk Lines, Roofing Squares, Try Squares, Combination Squares, Bevel Edges, Marking Gauge, Magnetic Cast Aluminum Torpedo Level, Torpedo Level (42-294 - 8" ) Measuring and Layout Tools: Laser Distance Estimator, Laser Torpedo Level, Laser Line Level, Laser Cross Level, Laser Level & Square, Laser Level, Cross Line Laser Level, Cross Line Laser Level with Pole, Horizontal/ Vertical Laser Level, Multi laser Cross Level, Digital Measuring wheel, Analog Measuring Wheel, Rotary laser. VDE Pliers These are pliers that are tested under 10000 electricity volts and are recommended to be used where there is high electric voltage (recommended to be used upto 1000 volts).

Figure 12: VDE Pliers Key Technologies and Standards Stanley Works applies certain patented technologies in its tools that differentiate them from competitors and puts them at a competitive advantage. Some of them are discussed here.54

However, even before it is worth mentioning that Stanley Tools meet ANSI, ISO and DIN standards. ANSI American National Institutions ISO International Organization for Standardization DIN Deutches Institute for Normung

Maxi-Drive Technology in Sockets The Maxi-Drive technology is the registered patent of Stanley. It is the patented gripping designed to outperform conventional drive configuration. Some of the key Advantages are: Reduces the chance of rounding in corners of the fasteners to extend fastener life. Enables to turn worn or rounded fasteners. Provides 15% more torque to tighten fasteners easily. Reduces fastener wear by minimizing contact on the outer 5% of the fastener; helping increase life expectancy of the fastener. Helps reduce slipping on frozen or rusted fasteners. There is absolutely no difference between the printed size & the actual size. It allows ratcheting at an angle of 50.

Figure 13: 5 Degree angle for ratcheting

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Figure 14:.The above picture shows the Maxi-Drive technology

Dyna Grip Technology

Figure 14: The above picture shows the patented Dyna Grip by Stanley

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Annexure III: Literature SupportWhat is a Hand Tool?

A hand tool is a device or an instrument used to do a particular job that does not require a motor, but intended for hand held operation by one individual. Virtually every type of tool can be considered a hand tool. It provides a mechanical advantage in accomplishing a physical task. Examples of Hand Tools Hand tools include anything from hammer to wrenches, to axes, pliers, screwdrivers, punches, shears, chisels, toolboxes etc. Materials in making Hand Tools Hand tools are made of a wide variety of metals and wood. The common materials used in making the blades of hand tools are:

Iron Steel Aluminum Brass Stainless steel Carbon steel Mild steel

Types of Hand Tools57

Manual Hand Tools: Manual hand tools are the most basic form of equipment. They do not require the speed of powered hand tools or do not have access to power sources but are perfect for operations. These include hoes, screwdrivers, chisels, wedges, drift pins, hammers etc. Pneumatic Hand Tools: Pneumatic hand tools perform the operation task at the push of a lever. They are powered by compressed air. They include chippers, drills, hammers, sanders etc. Power Hand Tools: Tools which are hand held but are powered by electricity. These include chainsaws, high grade motors, electric drills, angle grinders, jigsaw cutters, tappers, fasteners etc.

We give below a list of the various popular hand tools used for various purposes.

Awl Axe/ Hatchet Bars Clamp Chisel Cutter Drill Bit Drill File Guns Hammers Mattock Mallet Planes Plier Punches Saws Screwdriver Shovel/ Spade Trowel Vise Wrenches

Hand Tool Market58

Indian hand tools market Estimated No. of Units in India SSI Units Large Units Estimated number of workers Major Manufacturing regions Total exports in 2001-02 2500 95% 7 25000 Jallandhar/ Nagaur 5215.5 million Rs.

US hand tool market . There are more than 1,000 firms active in the U.S. hand and power tools industry, ranging from small, privately owned firms to major corporations like Stanley Works, Black & Decker, Bosch, Danaher and Snap-on etc. In fact these major companies accounted for nearly 55% of the total sales in 2006.

Characteristics of the industry A labor Intensive Industry: A source of employment to many, hand tools industry is basically labor intensive in nature, whose development is of great importance for a competitive as well as a self-reliant industrial structure. The manufacturers of hand tools produce a comprehensive range of of hand tools, right from carpentry and plumbing tools to striking and cutting tools. Energy intensive industry: Apart from being a labor intensive industry, this industry is also an energy intensive one. It is estimated in a recent study that in most economies adoption of energy efficient processes and technologies can yield in energy savings of up to 30 to 50%. Effective contributor to the economy: Adding positively to the income of a country, Hand tools industry has contributed to economy in terms of development and technology up gradation Consumption patterns of hand tools This depends on the following factors: Price Supply chain dynamics Product quality, design and safety Service Environmental factors Driving forces for hand tool development Hand tools were in use since a long time and there has been a great change in the designs of hand tools from time to time. There were many factors that led to hand tool development.59

Workers safety & health: This is a very important consideration in today's designing of hand tools. Hand tools should be designed in such a way so that they reduce wear and tear on the operator. Ergonomics hand tools have become very popular, driven by an increased emphasis on worker safety and health. Workers nowadays prefer tools, which reduce stress on the body and at the same time reduce employee time loss due to job-related disabilities. Today, designers are coming up with more comfortable grips, reducing the weight of the object, and making hand tools adjustable to different body types. Chemicals When tools are designed, manufacturers consider ergonomics, performance and the environment. Besides considering health and cleaning factors, hand tools are also produced Nowadays using less chemicals, using less environmentally damaging products which are not harmful to the the human body and which becomes an environment friendly product. Eliminating the spread of germs or cross-contamination from one area to another has been a priority for more than a decade in hand tools designing. Microfiber A more recent development in hand tools is microfiber. This new material is more efficient at cleaning compared to its traditional counterparts. It is also less damaging to the environment as it uses few or no chemicals. And because it can be laundered several times, different microfiber cleaning cloths can be used for each area to be cleaned, thereby reducing the risk of cross-contamination. Same Old, Same Old Despite new inventions in composition and designing, hand tools in original designs are still preferred by many. As the old saying goes, the more things change, the more they stay the same. Hand tools still are expected for many to perform in a way that is ageless. They may be sturdier and more colorful, but their main function has never really changed. Even with new styles and features on the market, for DIY projects, users rely on traditional tools. Cleaning One of the driving forces for change in hand tool has always been to make cleaning easier. For proper functioning and durability of hand tools, it is necessary keep them clean after usage. In most cases, the latest designs go for flexible handles which can be removed and cleaned separately as both the handle and the tool blade are of different materials. Hand Tools Standards With the rapid advancement and expansion in the global trade, standardization of various products is very necessary. The standards given to various products help in expanding International trade which in turn bridges the quality gap between the manufacturers, suppliers and buyers of different nations. In hand tools as well, standards play a vital role. Standards are required in hand tools for the following reasons: They provide performance requirements. They provide safety requirements. Standards are available for all types of hand tools like pliers, screwdrivers, wrenches, striking tools, torque instruments etc.60

These standards also include the various tests that are required to determine conformance with the safety and performance requirements. Introduction to Stanley Assembly Technology: Stanley Assembly Technologies, an operating group of The Stanley Works was founded in 1963. Originally called Stanley Air Tools, the group was renamed in 2002 to reflect the emphasis on technology to deliver solutions of high value to customers. Assembly Technologies headquarters are located in Highland Heights, Ohio, a suburb of Cleveland. The Stanley Works is global corporation, headquartered in New Britain, Connecticut and has manufacturing and distribution in all world areas. An application center is located in Troy, Michigan. Locations in Europe include the U.K., France, Germany and Italy. Assembly Technologies Product Group provides solutions to the global assembly market, including the motor vehicle industry. Core solutions include high-performance DC electric and pneumatic tightening tools and controllers, conventional pneumatic articulating arms, torque tubes and Intelligent Assist Devices for ergonomic material handling Tightening torque capacity ranges from 0.5 to 2000 Nm and above. Tool geometries include straight, pistol, angle, hold & drive, crowfoot and tubenut outputs. Different levels of torque control, fit assembly requirements ranging from the most critical, such as safety related vehicle components to non-critical. Network systems enable plant-wide real-time assembly monitoring including statistical charting, trace analysis, remote tool configuration and hardware diagnostics. With Cobotics products, Stanley Assembly Technologies leads the growing global market for Intelligent Assist Devices (IADs). Engineered to dramatically improve the productivity, quality and ergonomic safety of assembly operations, IADs are computer controlled, servo powered lift assist devices that assist workers in lifting and manipulating heavy and awkward parts. A highly skilled direct sales force works directly with major customers and supports distributors in all world areas. Assembly Technologies sales engineers and distributors are qualified to analyze customer applications and propose the ideal selection of assembly and material handling components. Technical Service employees support customers from Assembly Technologies offices and regional locations. Other services offered by Stanley Assembly Technologies are: Field service Training for customers support personnel Design consultation for special systems Maintenance programs Telephone support, Spare parts and repair,

Equipment calibration and tool system certification include: Auto and Light Truck Assembly Auto Parts and Components Large Truck Assembly Construction and Farm Machinery Recreational Vehicles Products:61

1) Thread Fastening. i. Torque Equipment ii. Standard Nut Runners iii. Small QPM Tools 2) Engineered Systems i. Articulating Arm ii. Fixtured Tools 3) Material Handling i. Trolley ii. Lift

Annexure IV: Potential of the companiesBuying potential per year 0 to 2 lac

Companies

2 to 5 lac Yes

5 lac above

Amount in lac 3 2 0

Jabil Circuit India Pvt. Ltd. kirloskar Oil Engines Ltd. Nainko Exim Pvt. Ltd LG Alfa Laval Montanari Lifts Components Sanghvi Movers Ltd. Honeywell Turbo Technologies Greaves Mather Platt Pumps ltd. ThyssenKrupp Industries India Mailhem Engineers Pvt. Ltd.

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

3 5 5 3 5 2 8 10 2

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Vanaz Engineering WOM India .Pvt.Ltd Cummins India Ltd. Suzler India Ltd. Finolex Cables Ltd Premier Ltd. Tata Bluescope Steel Knorr-Bremse KSB Pumps Kam-Avida Demag Cranes & Components. Premium VSAS Automation Force Motors Atlas Copco Vulkan Technologies.Pvt.Ltd TATA JOHNSON SKF Fiat India ltd Renu Electronics ElectroMech-ABUS Indo-Schottle Aquapharm Chemicals.Pvt.Ltd Dilip Chabria Design, ( DC) Thermax Eclipse Ador WeldingTOTAL AMOUNT

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 0 Yes Yes Yes Yes Yes Yes Yes

4 4 8 2 3 8 5 8 5 2 7 3 2 8 6 2 4 5 5 0 4 2 3 4 4 4 3 163

63

Annexure V: Details of the companies visited in PuneDetails of the Company Visited During this period of 8 weeks I visited 38 companies and met 65 End Users including Purchase Managers.

Company Name Jabil Circuit India Pvt. Ltd. kirloskar Oil Engines Ltd. Nainko Exim Pvt. Ltd LG Alfa Laval Montanari Lifts Components Sanghvi Movers Ltd. Honeywell Turbo Technologies Greaves Mather Platt Pumps ltd. ThyssenKrupp Industries India Mailhem Engineers Pvt. Ltd. Vanaz Engineering WOM India .Pvt.Ltd64

No. Of persons met 1 1 1 1 1 1 2 1 2 1 1 1 2 2

Cummins India Ltd. Sulzer India Ltd. Finolex Cables Ltd Premier Ltd. Tata Bluescope Steel Knorr-Bremse KSB Pumps Kam-Avida Demag Cranes & Components. Premium VSAS Automation Force Motors Atlas Copco Vulkan Technologies.Pvt.Ltd TATA JOHNSON SKF Fiat India ltd Renu Electronics ElectroMech-ABUS Indo-Schottle Aquapharm Chemicals.Pvt.Ltd Dilip Chabria Design, ( DC) Thermax Ador Welding Total No. of companies- 38 Total No. of Users Visited

3 1 1 3 2 2 1 2 3 3 1 4 2 2 4 1 2 1 1 1 1 2 2 2

65

65

SomThe Customers Purchase Process Recognizing the need (Demand) Developing product specification May ask for a product demo Asking for Quotations from potential suppliers66

Rejected if price not satisfactory

Evaluating the Vendor and the product company Deciding to Purchase Testing thePurchase Order Issue of received product

Annexure VI: Details of Factor AnalysisFactor AnalysisThere are a number of techniques that can be used to assist in the decision concerning the number of factors to retain:

What I have: A set of correlated continuous variables. What it does: Factor analysis attempts to identify a small set of factors that represents the underlying relationships among a group of related variables. Assumptions: 1. Sample size. Ideally the overall sample size should be 150+ and there should be a ratio of at least five cases for each of the variables 2. Factorability of the correlation matrix. To be considered suitable for factor analysis the correlation matrix should show at least some correlations of r=.3 or greater. The67

Bartletts test of sphericity should be statistically significant at p


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