+ All Categories
Home > Documents > ST_hindware

ST_hindware

Date post: 14-Sep-2014
Category:
Upload: saifu-khan
View: 127 times
Download: 3 times
Share this document with a friend
Popular Tags:
99
THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT NEW DELHI SUMMER TRAINING PROJECT REPORT ON A STUDY ON IMPACT OF BTL ACTIVITIES ON HINDWARE'S MARKET POSITION UNDER GUIDANCE OF: MR.VISHAL MUTREJA SUBMITTED BY: SUNNY TYAGI BATCH: FW/10-12 SECTION: FK 1 REF ID: D1012FWISBE-B10707-(DEL-5-$-1372) IIPM, NEW DELHI i
Transcript
Page 1: ST_hindware

THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENTNEW DELHI

SUMMER TRAINING PROJECT REPORT

ON

A STUDY ON IMPACT OF BTL ACTIVITIES ON HINDWARE'S MARKET POSITION

UNDER GUIDANCE OF:MR.VISHAL MUTREJA

SUBMITTED BY:SUNNY TYAGI

BATCH: FW/10-12SECTION: FK 1

REF ID: D1012FWISBE-B10707-(DEL-5-$-1372)IIPM, NEW DELHI

Email ID: [email protected]

i

Page 2: ST_hindware

ACKNOWLEDGEMENT

This project was an insightful experience of my internship at Hindware,

Gurgaon. I would like to thank Mr. Vishal Mutreja for not only giving

me the opportunity to work on this project, but also provided me with

sound guidance and the necessary facilities to carry out the project. I

thank him for giving me numerous assignments beyond my project and

expose me to the entire gamut of activities and made me to learn more

beyond my project.

ii

Page 3: ST_hindware

TABLE OF CONTENT

Title page

Completion certificate from the company / organization

Acknowledgements ii

Executive summary iv

Introduction 1

Research objectives and methodology 6

Body of the report - sector overview 9

Company details 19

Primary findings and analysis 23

An assessment of the internship 43

Conclusion & recommendations 46

Illustrations & annexure 56

Bibliography 59

iii

Page 4: ST_hindware

EXECUTIVE SUMMARY

Advertising and communication today is experiencing a transformation at

a pace faster than ever. It is evident in India more than anywhere else.

The rising economy, increased cash at hand for disposal and a

consumerist mindset coupled with the changing lifestyle and media hav

made communicating with the consumers a daunting task.Shopping today

has evolved , and so has the consumer. While the consumer is being

hammered through means and methods of communication that pass

through certain filters of his mind to lodge the brand there, he is still

vulnerable to various psychological factors and bran selection

inducements at the point of purchase. Good advertising is that which

sells. and in context of today's scenario the need is for a judicious and

careful spend of marketing budgets to gain maximum impact that

converts into sales. Brands today need to go beyond the share-of-mind to

capture the share-of-wallet.

With mass-media's return on investment going down drastically because

of audience fragmentation and media-cost inflation, marketers are

looking at BTL more and more to deliver customized solutions for their

brands. BTL in marketing is considered one of the most effective tools of

product promotion. BTL-events allow not only to create positive image of

the company, to get acquainted the customer with the product, to get

interested the prospects in product purchasing, but also helps to provide

all necessary information on terms of purchase, using and storage of

product/service. Visual presentation of a product increases customer

loyalty and allows for increasing product sales volumes.

iv

Page 5: ST_hindware

HSIL Limited is the largest Indian manufacturer of sanitary ware

products, with a dominant market share of over 42% in the industry.

HSIL’s portfolio of products includes Building products & Container

Glass in addition to the international brands such as TEUCO and

Keramag, all of which enjoy great popularity with consumers. HSIL

Limited products are available across the length and breadth of the

country and are supported by over 1400 direct dealers and 12000 sub

dealers HSIL Limited was the first Company in India to manufacture

Vitreous China Sanitaryware.

This research was undertaken to gauge the market position of Hindware

based on the effect of BTL activities carried out by the company in

Gurgaon region.

v

Page 6: ST_hindware

INTRODUCTION

Bathroom is a place worthy of attention from gold-plated taps to the latest

Whirlpool technology; from designer tiles to colour matching products.

People have started furnishing their bathroom like other rooms in the

house. A modern bathroom is designed as a veritable work of art, often

looked at as a status symbol. It is that part of your house which should

make you feel safe and comfortable and should be within easy reach of

all rooms. The size and the format of the bath are determined by a

number of factors, economic as well as functional. Be honest about your

needs, who will use the bath and what do you want from it. Would a

double sink alleviate congestion, would you like a bidet, a handheld or

wall mounted shower, or a sit-up bath. Selecting fixtures and fittings is

vital.

Planning the decor of a bathroom requires as much care and attention.

Options are limited and mistakes, costly. Bathrooms like kitchens are

limited by the existing plumbing arrangements and may present you with

difficulties in making modifications later on.

It is difficult and prohibitively expensive to alter, so the fittings will have

to remain in basically the same position. The materials and accessories

chosen, the colours used, placement of essential units—all these elements

contribute to its success or failure.

India could soon become a manufacturing hub for international sanitary

ware brands. International brands like Roca, Kohler and H&R Johnson

plan to expand their scale of operations in India. The expansion will be

either through Brownfield expansion of their joint venture partners or

through setting up Greenfield ventures.

1

Page 7: ST_hindware

Apart from supplying to the global market, the facilities will also cater to

the rising consumer demand within India for branded and premium

sanitary ware products. Close to Rs 1,000 crore will be invested over a

period of two years in the Rs 2,500 crore Indian markets.

The market size for sanitary ware and bathroom solutions within India is

estimated to be Rs 2,500 crore. Out of which the branded segment

accounts for a larger share of 55 per cent and is growing at a rate of 20

per cent whereas the market share of the non-branded segment has shrunk

to a 45 per cent growing at lesser pace of 8 to 9 per cent.

The sanitary ware market in India has grown rapidly during the last 5-6

years, with key players doubling their production capacities. India has

emerged as a major bath and sanitary ware market in the Asia-Pacific

region.

The organized sector comprises more than half of the total market by

value. The major threat for the industry is from the unorganized sector,

which provides products at low prices. In terms of market value,

organized players lead the market but on the other hand in terms of

volume, unorganized players hold the major share.

Housing and institutional sectors are the major growth drivers. At present,

housing demand is rapidly rising and with increasing purchasing power

people have started taking interest in premium sanitary ware products.

Sanitary ware demand comes from new projects as well as from

replacement market.

2

Page 8: ST_hindware

Major Players

The sanitary ware industry in India is divided in two sectors, organized

sector and the unorganized sector.

Organized sector

In india organized sector consisting of 5 major companies;

M/s. Hindustan Sanitary Industries Limited,

M/s. E.I.D. Parry,

M/s. Swastik Sanitarywares Limited,

M/s. Madhusudan Ceramics,

M/s. Neycer India Limited),

These companies manufacturing sanitary ware for the last 15-20 years

and have established their Brand image. The organized sectors produce

fully vitrified sanitary wares, using latest technology and best of Ceramic

Raw Materials available in India. Many other players had entered the

organized sector, but most of them have since been taken over by the

majors.

The large foreign players like American Standard, Toto, Villeroy and

Boch have also set up distribution channels in India.

Unorganized sector

The unorganized sectors have adopted local Indian technology to

manufacture the basic sanitary ware products. Since the

availability of raw material is in abundance and also very cheap

in the state of Gujarat & Rajasthan, various companies have

established their factory in these areas. They are producing the

basic sanitary ware in various brands.

3

Page 9: ST_hindware

Market Share

Unorganized sector's percentage of production capacity and also

their sales in the local domestic market are higher than that of

the organized sectors' sales. Unorganized sanitary ware

manufacturer comes under small sectors and hence enjoy the

benefit of Nil Excise Duty and Sales Tax and hence they sell

their products in the domestic market approximately 70%

cheaper than the organized sector products.

Future Demand

In the next decade, India is expected to be one of the world's

fastest growing countries for sanitaryware consumption. The

sanitation penetration has more than trebled from 8% in 1982 to

18% in 1994 and to 29% in 1999. The market size is estimated to

be Rs. 12 bn, while demand for sanitary ware in India is growing

at 12% -15% every year.

The government impetus to improve hygiene and sanitation is likely to

increase the demand for sanitary ware in India. Moreover the increasing

urbanization of India and the consequent requirement for residential and

commercial buildings will be a major driver for growth of sanitary ware.

Along with this the focus of the central and state governments to provide

housing facilities to the poor, is also expected to generate demand.

The cost of producing sanitary ware in India is substantially low as

compared to the advance countries, because the labour cost and the basic

raw materials for manufacturing quality sanitary wares is available at

very cheap rate and in abundance. Because of our low cost of production,

Indian sanitary wares are very competitive in the neighboring countries

and hence export from India is also growing everyday.

4

Page 10: ST_hindware

It is estimated that there is currently a demand for 20 million housing

units in India. Further, a significant number of the 115 million housing

units across the country will need reconstruction for improvement.

Therefore a replacement market will emerge, though currently original

equipment sanitary ware market accounts for nearly 90% of the market.

5

Page 11: ST_hindware

RESEARCH OBJECTIVES AND METHODOLOGY

PROJECT OBJECTIVE

To analyse BTL (Below-The-Line) activations acoss the

sanitaryware industry in India, and understanding the marketer’s

strategy behind those activations.

To analyze the impact of recent BTL activities carried out by

Hindware in Gurgaon region on its market position.

METHODOLOGY

Methodology is a systematic way to solve the research problem. It may

be understood as a science of studying how research is done logically.

The various steps that are generally adopted by a researcher problem are

also the main function of the research methodology.

DATA COLLECTION:

The tow types of data used for the purpose and study are:

Primary Data

Secondary Data

6

Page 12: ST_hindware

PRIMARY DATA:

In primary data collection, you collect the data yourself using methods

such as interviews and questionnaires. The key point here is that the data

you collect is unique to you and your research and, until you publish, no

one else has access to it.

Relating to the study, data was collected from the End Consumers of

Sanitary Ware, Retailers who deal in Sanitary Ware and the Architects.

It was collected through interview and questionnaire method. The other

method such as observation, indirect oral interview and detailed with the

respondents have been conducted for the purpose of data collection.

SECONDARY DATA:

Secondary data are those which have already been collected by the

agency and which have already been processed. Secondary data for the

study has been complied from the report and official publication of the

organization, which have helped in getting and insight of the present

scenario existing in the sanitary ware industry.

QUESTIONNAIRE DESIGN:

A questionnaire is a research instrument consisting of a series of

questions and other prompts for the purpose of gathering information

from respondents.

The questionnaire used for data collection is a structured one. It was a

mixture of both open ended, closed ended and multiple choices. The

7

Page 13: ST_hindware

words used were simple and help in avoiding confusion and

misunderstanding among the respondents.

SAMPLE UNIT:

End Consumers:

The end consumers of sanitary ware products were surveyed.

The sample size of 26 samples was considered for the survey

study.

Retailers:

The retailers who deal with sanitary ware products were surveyed

in around the city.

The sample size of 50 samples was considered for the survey

study.

The survey was done through direct interview with the retailers.

LIMITATION OF THE STUDY:

As in the case of any study, I have to cope with some limitations.

The lack of interest of the end consumers in responding to the

survey.

The end consumers may not give proper details with respect to

expenditure.

The lack of interest of the retailers in responding to the survey.

Many answers of the respondent will be subjective.

8

Page 14: ST_hindware

BODY OF THE REPORT

"All the successful models we grew up with don't work. It used to be

brands had all the power, and then they got sidelined by promotions.…

Now it's become a consumer republic again. The consumer is boss –

there's no more mass market – and is driving the flow of information."

-- Kevin Roberts, CEO, Saatchi & Saatchi Worldwide

"I believe today's marketing model is broken. We're applying antiquated

thinking and work systems to a new world of possibilities."

-- Jim Stengel, CMO, Procter & Gamble

ORIGIN OF THE”LINE”

The origin of term “BTL” is the following: an advertising manager of

Procter & Gamble developed promotion campaign media-plan that

included main media channels: TV, press, outdoor etc. He underlined it,

summarized the expenses and only after recalled about the board on fairy,

souvenirs, gifts etc. He added these expenses to the list “below the line”.

BTL is usually opposed/contrasted to ATL (above the line) – advertising

in its traditional distribution channels: press, TV, radio, outdoor, movie,

Internet.

The annals of Marketing Management have witnessed a tug of war

between advertising and sales promotion since inception. But in the early

phase of twenty first century this war has taken a new avatar in form of

Above - The- Line and Below - The- Line activities, widening both scope

and intensity of this war. Above-the-line propagated traditional marketing

9

Page 15: ST_hindware

channels that strive to reach a mass audience with messages that reinforce

a brand communicate general product information or inspire an emotional

response. “Below-the-line” initiatives, by comparison, acts like traditional

direct marketing efforts – they aspire to establish targeted relationships

between marketers and individual consumers, and offer comparable ease

in measurability. With increase fragmentations and demographic along

with the increased pressure to increase effectiveness of marketing

communication soon BTL activities started substituting ATL activities

and there has been a steady growth in BTL expenditure in this century .

With its unique ability to personalize and customize communication this

form of communication is slowly replacing the mass media advertising.

Introduction of the Topic

There are two kinds of marketing strategies that can be used to promote

any product: "above-the-line" (ATL, essentially advertising in the mass

media) and "below-the-line" (BTL). These category names reflect the

business practices of advertising agencies. Agencies generally make

commission on placement of advertisements in newspapers, magazines

and cinema, and on television, radio and billboards, a fee that appears

"above the line" on their bill. Traditionally, other forms of promotion—

events, direct marketing, email promotions, text message promotions,

premiums, price reductions, public relations activities, sponsorship, trade

shows, exhibitions, sales literature and catalogues—were charged at a

fixed fee and thus appeared "below the line

Above-the-line propagated traditional marketing channels that strive to

reach a mass audience with messages that reinforce a brand communicate

general product information or inspire an emotional response. “Below-

10

Page 16: ST_hindware

the-line” initiatives, by comparison, acts like traditional direct marketing

efforts – they aspire to establish targeted relationships between marketers

and individual consumers, and offer comparable ease in measurability.

Traditionally ATL and BTL strategies have been considered distinct, and

BTL the poor cousin. BTL activities were generally used to complement

the main mass media marketing activities and usually a fraction of

marketing resources were allocated for these activities. BTL activities

first shot into prominence when ATL activities for products which have

unwholesome demand were proscribed by the Socio-legal restrictions.

Even though BTL activities started off to fill in for ATL activities,

increasingly, BTL strategies are now recognized as economical, unique,

and personal ways to achieve "cut-through" in the supersaturated

advertising environment.

Figure: Channels of BTL and ATL activities

11

Page 17: ST_hindware

Above-the-Line Media Below-the-Line Media

1. Are tailored to reach a mass audience

Are targeted to individual

consumers, based on their expressed

needs and preferences

2. Establish brand identity or reinforce

emotional concepts surrounding a

product or brand

Issue a “call-to-action,” inspiring

specific customer activity or tailored

messages about a product or brand

3. May or may not drive customer

responseDrive individual responses

4. Are difficult – if not impossible – to

measure with any accuracy

Are highly measurable, allowing

marketers insight into their return-

on-investment, as well as those

tactics that are (and are not) working

5. Cater to the mass marketEstablish one-to-one relationships

between consumers and marketers

Figure: Differences in BTL and ATL activities

Evolution of below -the- line activities

In a market rapidly adapting to changes in technology, available

information and heightened consumer demand, traditional, brand-oriented

advertising is no longer the primary driver of customer behaviour.

Whether it’s reflected in dwindling print newspaper circulation or the

stagnant market for network television commercials, significant evidence

suggests that the marketing landscape has fundamentally shifted – from

an “above-the-line” focus on reaching a broad population with

emotionally-oriented appeals, to a “below-the- line” approach that

stresses targeted, customer-centric communications, measurable results

and concrete return-on-investment.

12

Page 18: ST_hindware

We believe that the metaphorical “line” separating marketing

philosophies (often quoted, but never precisely defined) is reflected in

three key qualities that separate today’s emerging promotional methods

from the top-down advertising monologue of the past. Acting in concert,

they embody the universal elements of successful below-the-line

marketing efforts:

Perception – The extent to which a consumer feels that he or she is

engaged as an active participant in a marketing dialogue, rather

than a target of an aggressive direct sales or branding effort

Interaction – The extent to which consumers are empowered to

respond to marketing communications via preferred channels that

are both convenient and accessible

Measurability – The extent to which a marketer can track the

results of an individual initiative, determine commensurate return-

on-investment and adjust future campaigns to provide for an

enhanced chance of success

Figure 1.3 Framework of BTL activities

Channels of BTL activities

13

Page 19: ST_hindware

a) Database marketing: It involves use of proprietary database of

consumer records which can enhance prospect or customer data sources

with unprecedented demographic, lifestyle and transactional data. It can

be utilized for tuning marketing offers targeted at new prospects -- and

provide their current customers with products that more closely match

purchasing preferences and habits.

b) Mail marketing: It involves creation of compelling branded

Mail/email templates and campaign messages, and also our data driven

services to develop precise targeting to reach the highest number of

quality prospects

c) Interactive services: By designing online campaigns that generate

valuable and conversions by the use of Web Properties, Affiliate Network

and Search Engine Marketing

d) Affinity marketing: Enhancing brand value and gaining new

customers by affinity programs like collaborations with

Veteran's Organizations

Sportsmen's Organizations

Conservation and Wildlife Advocacy Organizations

Seniors Advocacy Organizations

Political Organizations

Religious Organizations

Youth Activity Organizations

Ethnic Group Advocacy Organizations

Cause Based Organizations

Direct Response Print: It’s most common form today is infomercials. It is

achieved by eliciting a direct response via television presentations.

14

Page 20: ST_hindware

Viewers respond via telephone or internet, credit card in hand. Other

media, such as magazines, newspapers, radio, and e-mail can be used to

elicit the response, but they tend to achieve lower response rates than

television.

e) Event Marketing: It involves a strategic-based face-to-face contact

designed to impact a brand's perception among its constituents. It is set of

promotional activities involving an event such as a sporting or social

event, designed to bring a product to the attention of the public

f) Promotional Marketing: It is a non-personal promotional effort that

is designed to have an immediate impact on sales. Sales promotion is

media and non-media marketing communications employed for a pre-

determined, limited time to increase consumer demand, stimulate market

demand or improve product availability.

Examples include:

Coupons

Discounts and sales

Contests

Point of purchase displays

Rebates

Free samples (in the case of food items)

Gifts and incentive items

Free travel, such as free flights

Sales promotions can be directed at the customer, sales staff, or

distribution channel members (such as retailers). Sales promotions

targeted at the consumer are called consumer sales promotions. Sales

promotions targeted at retailers and wholesale are called trade sales

promotions.

15

Page 21: ST_hindware

The Indian market is witnessing some major changes. More consumers,

more buying power and more media reach. Then there is the rise of

digital media, the fragmentation of mass media, the growing power of

young consumers and the growing BTL activities.

Marketers acknowledge that advertising is just one variable that impacts

sales among other including pricing, distributions etc. Products and

services that are promotion elastic tend to be highly impacted by price-

offs and discounts which increase the likelihood of consumer buying the

same. In comparison, products and services that are advertising elastic see

higher sales with increased advertising. Many successful categories and

brands in Key Urban Towns (KUT) are price sensitive and hence

promotion elastic. Marketers then choose to divert advertising budgets to

on-ground promotions (including BTL and activation) that show a direct

impact. In comparison, premium brands that have a greater uptake in

metros (given higher purchasing power) tend to be advertising elastic

which means that the more they are advertised, the higher is the

likelihood of sales.

For marketers, the decision to enter a new market is dependent on a

number of factors which help them select and prioritize markets. As

shared by some of the leading Indian marketers, the key factors impacting

their decisions for gauging market potential and allocating marketing

spends are listed below.

16

Page 22: ST_hindware

Exhibit – Factors impacting choice of market(s)

Once the market is selected then the marketer is faced with the decision

to select the choice of medium for advertising. The factors are listed

below:

Exhibit – Factors impacting choice of media for advertising

One of the new directions taken by marketers in allocating ad spends that

could be indicative of changes that can be expected in the future is a

growing share of BTL in the total marketing spend. The average BTL

spends across marketers met was about 35-40 % against about 15 % of

marketing spends, just three years earlier. While in the metros, BTL is

used because the clutter in mass media is too high and getting audience

attention is difficult in Key Urban Towns (KUT), since media options are

limited BTL gets a more than proportionate response from the inquisitive

consumers. BTL could therefore be one of the factors that could better

17

Page 23: ST_hindware

harness the marketing and media needs of KUT where marketers can use

BTL effectively instead of focusing only on traditional media planks

which may not be as readily accessible.

BTL activations can be strategical or tactical in nature, depending upon

the type of activation. BTL activations are most commonly used for sales

promotions, branding, product launch, channel partners appeasement,

channel expansion, lead generation. Marketers have different objective

for different activities. Some of the most common strategies are customer

retention, customer acquisition, brand visibility etc.

18

Page 24: ST_hindware

COMPANY PROFILE

It was the year 1960 when Mr. Rajendra K. Somany established

Hindustan Twyfords, in collaboration with Twyfords Ltd. of UK. With a

bent towards innovation coupled with the intention to introduce vitreous

china ceramics in India, he identified the sanitaryware market as the

segment of interest. Hindustan Twyfords was the first in the country to

make available vitreous china ceramics, offering significant improvement

from the prevalent earthenware sanitary products. Aware and focused

towards the burning need for sanitation across the country, this

opportunity well extended his desire for social welfare, and bringing a

much needed service to the nation. This was the impetus that initiated the

journey half a decade ago.

With strong family support, coupled with technical collaboration from

Twyfords, Mr. RK Somany established the Bahadurgarh plant, which

commenced production in 1962. Every decade thereon marked a

milestone of achievement in product innovation, market penetration,

internal expansion as well as venturing out to new business segments –

container glass and home retail.

Concentrated and strategic progress enabled business expansion through

organic and inorganic growth. HSIL bought over another sanitaryware

manufacturing sanitaryware manufacturing facility in South India, and

recently commenced operations of our second container glass facility in

Bhongir, A.P. Today, HSIL stands tall with strong market leadership in

the building products market, and a dominant player in the container glass

segment. The Building Products commands more than 38% of the market

19

Page 25: ST_hindware

in the sanitaryware industry, while the Container Glass is the second

largest player in India.

Customer Satisfaction, Product Innovation, and Quality Control are the

three pillars that have fostered high levels of trust and respect for the

Hindware Brand. The brand is trusted and respected by millions of

customers and thousands of dealers across the country. The 40 million

satisfied customers are testimonials to the brand ethos. With a product

spectrum ranging from Sanitaryware to Wellness, to Faucets and as of

recently covering Kitchen Appliances, Hindware satisfies the need of

bathroom and kitchen products. Appreciating the evolving customer

needs, Hindware’s Customer Service Division takes pride in its

confidence of speedy customer support, and in providing a spectrum of

service opportunities for enhancing the Hindware experience.

Their institutional partners include the respectable business houses India

– DLF, The Taj Hotels, GMR, Unitech, ITC Hotels, Mahindra, Infosys,

Coca Cola, Pepsi, Dr. Reddy’s Laboratories, Hindustan Unilever, Peron

Ricard, Pfizer, Sab Miller, Dabur, Nestle, to name a few. This validation

from the cream of India Inc. extends the confidence and conviction in

their values and vision.

While HSIL predominantly caters to the Indian market, in this era of

globalization, both the Building Products Division and the Container

Glass Division have expanded their horizons to cater to the international

market as well. A definite accomplishment in itself.

20

Page 26: ST_hindware

HSIL is recognized among the top 300 companies in India, while rated

amongst the best 100 small and medium sized companies in the world by

the Forbes Magazine.

HSIL is the first company in the Building Materials Industry to be

awarded the prestigious ISO 9001, 14001 and OHSAS 18001 certificate,

awarding effective quality management and environment systems. They

were also the first in the country to receive the ISI License in the country,

back in 1962.

With their recent foray into the retail of Home Interior solutions, they

have extended their outreach to the end-customer. EVOK, their retail

brand specializes in providing a comfortable and convenient one-stop

shopping experience. Currently located in NCR, upon consolidating their

hold within North India, EVOK plans to become the household name

across urban India for value-for-money home interior solutions.

Their corporate office is located in Gurgaon, with eight regional offices

covering the length and breadth of the country. They now have four

manufacturing units, one located in Bahadurgarh, Haryana, while the

other three are located in Andhra Pradesh.

Some Interesting Facts

o Hindware" brand has been recognized as a Super brand

consecutively for the last four years.

o Hindware manufactures ten sanitary ware pieces every two

minutes; 310 every hour and 2.7 million each year.

o Possesses the largest distribution network in India's building

products industry.

21

Page 27: ST_hindware

o AGI Glasspac has a capacity to produce 953 million bottles per

annum and the capability to manufacture 400 different products in

three colours.

o AGI's second container glass manufacturing facility at Bhongir

( AP) has a capacity of 690 mn pieces per annum bringing the total

capacity to 1643 mn pieces per annum.

PRODUCTS:

Sanitary ware:

Wash Basin Water Closets

Cisterns

Closet seat

Biders

Kids series

Paraplegic series

Urinals

Sinks

Faucets :

Kitchen Bathroom

Showers

Flush values

Addons

Accessories

22

Page 28: ST_hindware

Wellness Products:

Steam Rooms Bath tubs

Shower Enclosures & Partitions

Shower Panels

23

Page 29: ST_hindware

PRIMARY FINDINGS AND ANALYSIS

DATA ANALYSIS FOR END CONSUMERS OF SANITARY WARE PRODUCTS

1. How much would you spend on a bathroom?

INFERENCE:

6 respondents said that they will spend below Rs. 50000 for bathroom.

9 respondents said that they will spend between Rs.50000-Rs. 100000

for bathroom.

8 respondents said that they will spend between Rs.100000- Rs.150000

for bathroom.

3 respondents said that they are ready to spend above Rs.150000 for

bathroom.

2. Which company does your bathroom sanitary ware belong to?

VARIABLES RESPONDENTSBelow Rs 50000 6Between Rs.50000-Rs.100000 9Between Rs.100000-Rs.150000 8Above Rs. 150000 3TOTAL 26

24

Page 30: ST_hindware

INFERENCE:

6 Respondents used sanitary ware products of Jaquar.

11 Respondents used sanitary ware products of Parryware Roca.

2 Respondents used sanitary ware products of Cera India

8 Respondents used sanitary ware products of Hindware.

9 Respondents used sanitary ware products of Metro, Kohler, Alto and Opera.

3. What do you look for before selecting a bathroom range?

BRANDS RESPONDENTSJAQUAR 6PARRYWARE ROCA 11CERA INDIA 2HINDWARE 8OTHERS 9TOTAL 36

25

Page 31: ST_hindware

INFERENCE:

12 respondents said that they look for Quality before selecting a brand for purchasing sanitary ware products. Majority of the respondents, 6 respondents who see Quality as important factor are Hindware consumers.

11 respondents said that they look for Price before selecting a brand for purchasing sanitary ware products. Majority of the respondents, 5 respondents who see Price as important factor are Parryware Roca consumers.

10 respondents said that they look for Brand Reputation before selecting a brand for purchasing sanitary ware products. Majority of the respondents, 5 respondents who see Brand Reputation as important factor are Hindware consumers.

2 respondents said that they look for Post Sales Service before selecting a brand for purchasing sanitary ware products. Respondents who see Post Sale Service as one of the important factor before selecting a brand are Kohler consumer.

16 respondents said that they look for style and appearance before selecting a brand for purchasing sanitary ware products. Majority of the respondents, 6 respondents who see style and appearance as important factor are Parryware Roca consumers. 5 respondents who use Hindware said that style and appearance is the important factor for choosing a sanitary ware brand.

Variables Parryware Roca Hindware Jaquar Others Total

Quality 4 6 1 1 12Price 5 3 1 4 11Brand Reputation 2 5 2 1 10Post Sales Service 0 0 0 2 2Style And Appearance 6 5 2 3 16Total 51

26

Page 32: ST_hindware

27

Page 33: ST_hindware

4. What source of information have you used to buy the current range?

INFERENCE:

10 respondents said that Advertisement is the source of information which they referred before purchasing the product. Out of 10 respondents, majority 5 respondents who used Advertisement as a source of information are Hindware consumer.

15 respondents said that Architects is the source of information which they referred before purchasing the product. Out of 15 respondents, majority 6 respondents who used Architects as a source of information are Hindware consumer.

10 respondents said that Retailers and Dealers is the source of information which they referred before purchasing the product. Out of 10 respondents, majority 4 respondents each who used Retailers and Dealers as a source of information are Hindware and Parryware Roca consumer.

9 respondents said that Family and Friends is the source of information which they referred before purchasing the product. Out of 9 respondents, majority 3

Variables Parryware Roca Hindware Jaquar Others TotalAdvertisements 0 5 2 3 10Architects 6 4 2 3 15Retailers and Dealers 4 4 0 2 10Family and Friends 3 3 2 1 9Past Experience 1 1 0 0 2Total 46

28

Page 34: ST_hindware

respondents each who used Retailers and Dealers as a source of information are Hindware and Parryware Roca consumer.

2 respondents said that Past Experience is the source of information which they referred before purchasing the product. Out of 9 respondents, majority 1 respondents each who used Retailers and Dealers as a source of information are Hindware and Parryware Roca consumer.

.

29

Page 35: ST_hindware

5. In case of future renovation, would you choose product from the existing brand?

INFERENCE: 10 respondents said that on renovation of bathroom they will purchase

products of the same brand.

12 respondents said that on renovation of bathroom they will go in for products of different brands.

4 respondents said that they don’t have any idea.

The reasons for not using the same brand are as follow: High price quotient and ineffective customer support.

Readiness to experiment new brands and explore.

Relevant experiences from the past or mere change in taste.

They have also repeatedly emphasized on Quality and appearance and also on lack of brand reputation.

Variables Respondents Yes 10No 12Don’t know 4Total 26

30

Page 36: ST_hindware

6. If respondents go in for a new brand for renovation which brand it will be?

INFERENCE:

5 respondents said that on renovation of bathroom they will purchase products of Parryware Roca.

4 respondents said that on renovation of bathroom they will purchase products of Hindware.

1 respondent each said that on renovation of bathroom they will purchase products of Kohler, Cera –India and Jaquar.

Variables Respondents Parryware 5Kohler 1Cera India 1Hindware 4Jaquar 1Total 13

31

Page 37: ST_hindware

7. What is your satisfaction level in the current product you are using?

INFERENCE:

9 respondents said that they are highly satisfied with the product they are using.

15 respondents said that they are highly satisfied with the product they are using.

9 respondents said that they are highly satisfied with the product they are using.

3 respondents said that they are highly satisfied with the product they are using.

None of the respondents said that they are highly dissatisfied with the products they use.

Variables Respondents Highly satisfied 9Satisfied 15Neutral 9Dissatisfied 3Highly Dissatisfied 0 Total 36

32

Page 38: ST_hindware

Brand wise break up of overall satisfaction level:

Variables Parryware Roca Hindware Jaquar OthersHighly satisfied 2 4 1 2Satisfied 6 1 2 6Neutral 3 2 2 2Dissatisfied 0 1 1 1Highly Dissatisfied 0 0 0 0

33

Page 39: ST_hindware

8) Are you satisfied by the service provided by your customer service?

INFERENCE: 11 respondents said that they are satisfied with the Customer service.

4 respondents said that they are not satisfied with customer service as their problems were not solved.

11 respondents said that they are not aware of the facility.

Variables RespondentsYes, thoroughly satisfied 11The problems were not resolved 4The company does not provide any service 0Not aware of such facility 11Total 26

34

Page 40: ST_hindware

9) Will you recommend the brands to peers?

INFERENCE: 20 respondents said that they will recommend the brand to their peers.

6 respondents said that they will not recommend the brand to their peers.

REASONS FOR NOT RECOMMENDING BRANDS TO PEERS: Dissatisfaction from the brand. Due to lack of brand reputation. Respondents feel that they products of the brand are not worth paying the

price they are charged.

Variables Respondents

Yes 20

No 6

Total 26

35

Page 41: ST_hindware

HYPOTHESIS:

1) Choice of brand is independent of the amount spend on bathroom.

HYPOTHESIS:H0: preference of brands is independent of expenditure on bathrooms.H1: preference of brands is dependent of expenditure on bathrooms.

CALCULATION:

D.O.F =6Table value @5 % = 12.592Calculated value = 2.7027

RESULTS:Since the calculated value is less than the table value. The null hypothesis H0 is accepted.Preference of brand is independent of the expenditure on bathrooms.

2) A recommendation of brands to peers is independent of the customer service satisfaction.

Variable Jaquar Parryware Roca Hindware Others TotalBelow Rs 50000 1 5 3 3 12Rs 50000-Rs100000 3 3 3 3 12Above Rs.100000 2 3 2 5 12Total 6 11 8 11 36

36

Page 42: ST_hindware

Variable Yes, thoroughly satisfied

Problems not resolved

Company doesn’t provide any such service

Not aware of such facility

Total

Yes 9 1 0 10 20No 2 3 0 1 6Total 11 4 0 11 26

HYPOTHESIS:H0: Recommendation of brands to peers is independent of the customer service satisfaction.H1: Recommendation of brands to peers is dependent of the customer service satisfaction.

CALCULATION:D.O.F =3Table value @5 % = 7.815Calculated value = 7.5888

RESULTS:Since the calculated value is less than the table value. The null hypothesis H0 is accepted.Recommendation of brands to peers is independent of the customer service satisfaction.

37

Page 43: ST_hindware

DATA ANALYSIS FOR RETAILERS

1) Could you tell us how long you have been in this business?

INFERENCE: 2 retailers responded that they are in this business for 0-5 years.

5 retailers responded that they are in this business for 5-10 years.

6 retailers responded that they are in this business for 10-15 years.

4 retailers responded that they are in this business for 15-20 years.

8 retailers responded that they are in this business for more than 20 years.

VARIABLES Respondents 0-5 year

25-10 years 510-15 years 615-20 years 4More than 20 years 8TOTAL 25

38

Page 44: ST_hindware

2) What different brands you deal with?

INFERENCE: 23 retailers responded that they recommend with Parryware Roca. 22 retailers responded that they recommend with Metro. 21 retailers responded that they recommend with Hindware. 19 retailers responded that they recommend with Jaquar. 9 retailers responded that they recommend with Cera-India. 8 retailers responded that they recommend with Kohler. 5 retailers responded that they recommend with Neycer. 4 retailers responded that they recommend with Galaxy. 3 retailers responded that they recommend with Opera. 3 retailers responded that they recommend with Alto.

VARIABLE RESPONDENTSPARRYWARE 23METRO 22HSIL 21JAQUAR 19CERA-INDIA 9KOHLER 8NEYCER 5GALAXY 4OPERA 3ALTO 3

39

Page 45: ST_hindware

3) Which are the fast moving brands?

INFERENCE:

VARIABLE SANITARYWARE TAPS& SHOWERSPARRRYWARE 19 14METRO 0 18HSIL 18 10JAQUAR 12 15CERA- INDIA 7 4KOHLER 6 6NEYCER 3 3GALAXY 2 2OPERA 2 2ALTO 2 2

40

Page 46: ST_hindware

SANITARYWARE:

19 retailers said that Parryware Roca is the fastest moving brand.

18 retailers said that Hindware is the fastest moving brand.

12 retailers said that Jaquar is the fastest moving brand.

7 retailers said that Cera-India is the fastest moving brand.

6 retailers said that Kohler is the fastest moving brand.

3 retailers said that Neycer is the fastest moving brand.

2 retailers said that Galaxy is the fastest moving brand.

2 retailers said that Opera is the fastest moving brand.

2 retailers said that Alto is the fastest moving brand.

TAPS&SHOWERS:

14retailers said that Parryware Roca is the fastest moving brand.

18 retailers said that Metro is the fastest moving brand.

10 retailers said that Hindware is the fastest moving brand.

15 retailers said that Jaquar is the fastest moving brand.

4 retailers said that Cera-India is the fastest moving brand.

6 retailers said that Kohler is the fastest moving brand.

3 retailers said that Neycer is the fastest moving brand.

2 retailers said that Galaxy is the fastest moving brand.

2 retailers said that Opera is the fastest moving brand.

2 retailers said that Alto is the fastest moving brand.

.

41

Page 47: ST_hindware

4) Rating of various brands:

SANITARYWARE:VARIABLE JAQUAR PARRYWARE HSIL CERA-

INDIAKOHLER

QUALITY 4.3 4.5 4.6 3.5 4.2STYLE & DESIGN

4.1 4.2 4.4 3.7 4.4DURABILITY 4.5 4.7 4.7 4.1 4.6PRICE 4.2 4.4 4.4 4.1 4

INFERENCE: JAQUAR earned 4.3 out of 5 for quality. 4.1out of 5 for style& design. 4.5 out

of 5 for durability and 4.2 out of 5 for price.

PARRYWARE ROCA earned 4.5 out of 5 for quality. 4.2 out of 5 for style& design. 4.7 out of 5 for durability and 4.4 out of 5 for price.

HSIL earned 4.6 out of 5 for quality. 4.4 out of 5 for style& design. 4.7 out of 5 for durability and 4.4 out of 5 for price.

CERA-INDIA earned 3.5 out of 5 for quality. 3.7 out of 5 for style& design. 4.1 out of 5 for durability and 4.1 out of 5 for price.

KOHLER earned 4.2 out of 5 for quality. 4.4out of 5 for style& design. 4.6 out of 5 for durability and 4 out of 5 for price.

42

Page 48: ST_hindware

TAPS & SHOWERS:VARIABLE JAQUAR PARRYWARE HSIL CERA-

INDIAKOHLER METRO

QUALITY 4.5 4.4 4.1 3.9 4.2 4.5STYLE & DESIGN

4.3 4.2 4 3.8 4.1 4.1DURABILITY 4.2 4.3 4.3 4 4.1 4.2PRICE 4.1 4.2 4 3.9 3.8 4.4

INFERENCE: JAQUAR earned 4.5 out of 5 for quality. 4.3out of 5 for style& design. 4.2 out

of 5 for durability and 4.1 out of 5 for price.

PARRYWARE ROCA earned 4.4 out of 5 for quality. 4.2 out of 5 for style& design. 4.3 out of 5 for durability and 4.2 out of 5 for price.

HSIL earned 4.1 out of 5 for quality. 4 out of 5 for style& design. 4.3 out of 5 for durability and 4 out of 5 for price.

CERA-INDIA earned 3.9 out of 5 for quality. 3.8 out of 5 for style& design. 4.1 out of 4 for durability and 3.9 out of 5 for price.

KOHLER earned 4.2 out of 5 for quality. 4.1 out of 5 for style& design. 4.1 out of 5 for durability and 3.8 out of 5 for price

METRO earned 4.5 out of 5 for quality. 4.1 out of 5 for style& design. 4.2 out of 5 for durability and 4.4 out of 5 for price

AN ASSESSMENT OF THE INTERNSHIP

43

Page 49: ST_hindware

HSIL Ltd, the group behind India’s leading ceramic brand Hindware,

today announced a fresh identity for the iconic brand. Being one of the

most trusted names in bathware for millions of customers across India,

Hindware has suitably recognised their evolving perceptions and needs.

In the past 50 years of its existence, Hindware has steadily developed into

a brand which signifies utmost innovation and quality. The new identity

reflects these values and the company is all set to position Hindware as a

young, vibrant & contemporary brand which is representative of ‘Change,

Positivity & Passion’ and in sync with what modern India believes in.

The all new image of brand Hindware was unveiled at a gala event at ITC

Mughal, Agra in the presence of hundreds of channel partners assembled

together to celebrate the new face of the brand.

Hindware is one of the most prestigious brands in India today and it gives

me immense pleasure to introduce the new brand identity to all their

customers and stakeholders. They at HSIL believe that change lies at the

core of evolution. It is this philosophy that helps us keep up with

evolving consumers and markets. From being pioneers in sanitaryware in

India with their brand Hindware, to successfully being present across

India for 50 years, they now represent a brand that is bold, dynamic and

ready to take on challenges of the future. The new look reinforces the

trust and equity in consumers minds and reaffirms the credibility of the

brand.  The new face of brand Hindware symbolises a set of values that

are- ‘young, global, contemporary and dynamic’. The unique brand

identity supports their desire to balance function and form to the highest

degree. This fresh rendition is a manifestation of the global outlook of

44

Page 50: ST_hindware

brand Hindware and reflects the group’s ambitions and commitment.

Therefore, it is a fundamental change for us going forward.”

The change in the identity of Hindware showcases the transition of the

original logo which was symbolic of quality and reliability, to the new

young logo that reflects confidence and dynamism while maintaining the

core values for which the brand has stood for across the years. The design

partner responsible for Hindware’s new brand identity is Fitch, UK’s

leading design consultancy, also part of WPP, PLC which is one of the

world’s leading marketing services group. It was carefully selected to

design a fresh new brand identity for Hindware that would appeal to the

brand’s target market. The new identity is in a warm shade of red - the

colour of energy and passion. The choice of colour expresses the brand’s

determination and desire to succeed and deliver for our customers.  The

easily readable, simple and elegant lower case font has been specially

chosen to portray the brand as ‘engaging and approachable’ and is

immediately recognisable as Hindware. It appropriately conveys

modernity and their innate sense of style.  Their brand graphic element

derives from the negative and positive space found within our new brand

identity itself. It creates an additional layer of brand recognition and

recall and can be used across all brand applications.

The new look flow across products, packaging, signage and all

communication. As a part of Hindware’s promotion strategy, it rolled roll

out a comprehensive pan-India campaign across the media spectrum. This

comprised of both ATL (above-the-line) and BTL (below-the-line)

activities.

o ATL activities included - print and electronic media with all major

dailies, magazines and general interest, business and news

45

Page 51: ST_hindware

channels. Providing additional support would be the outdoor and

radio campaign.

o While BTL activities consisted of road shows, product parades

along with on-ground mall activities and interesting initiatives at

dealer outlets to promote the new brand identity.

.

46

Page 52: ST_hindware

CONCLUSION & RECOMMENDATIONS

1. Most of the companies are doing multichannel promotions and

marketers endeavour to align their ATL and BTL strategy.

2. Almost all the players in each sector are tapping onto Rural India

as they see an immense opportunity. Since mass media has limited

reach over their hence a lot of BTL activations are done.

3. BTL to ATL ratio is increasing over the years. For the industry

average it is near 35:65, which was just about 15:85 three years

back. With marketers looking for cost effective marketing

campaigning, BTL industry is bound to increase.

4. BTL activations can be tactical or strategical in nature depending

upon the type of activations. It is the misconception that they are

only tactical in nature.

5. Companies are giving a lot of importance to their channel partners.

In some cases they are treated equally to customers.

A new direction taken by marketers in allocating funds that has been

highlighted through our research is the significant jump in the

investments going into below-the-line (BTL) marketing. Across the

board, marketers are spending anywhere between 10-50 % of their total

budgets on direct marketing, events, activation and other BTL activities

depending on the nature of the product / service and market of choice.

The average BTL spends across marketers met during the course of the

research was closer to 40 % against about 15 %, just three years earlier.

One reason of course is mass media fragmentation and therefore less

bang for the above-the-line (ATL) buck. The other more important reason

47

Page 53: ST_hindware

however isthe pressure on brand managers for a better return on

marketing investments made. This rise in BTL is resulting in a better

connect with small-town India because a larger portion of the increased

BTL is going to KUT as per marketers.

In the metros, BTL is used because the clutter in mass media is too high

and getting audience attention is difficult. The logic for using BTL in

KUT, however, is different. Even though media options are limited in

many KUT, yet because consumers are looking for new products or

services, BTL gets a more than proportionate response. In existing

product categories BTL in KUT has helped push up revenue

contributions.

Current Scenario in the field of BTL activities

Expenditure estimates say a lot about where sophisticated marketers are

focusing their efforts, but they don’t address the more fundamental

question of why. Why, after so many years of success with above-the-

line methods, are marketers finally changing their approach to

reaching customers and fostering profitable relationships? And why

do customers appear so willing to accept this new communications

philosophy? The following seven trends explore the factors, both external

and internal, that are contributing to this emerging marketing emphasis.

Specifically, it identifies seven key trends that are directly impacting the

allocation of marketing budgets for both ATL and BTL campaigns. They

include:

1. Changing consumer demographics decrease the influence of

traditional mass media (i.e. ”one-size-fits-all”) marketing messages

2. Growing consumer sophistication heightens the demand for

channel-agnostic communications

48

Page 54: ST_hindware

3. Widespread marketing “clutter” diminishes the impact of

commercial messages that don’t address specific and individually

relevant consumer needs

4. Enhanced information availability empowers both marketers and

consumers with insight that allows for precise customer targeting

and intelligent purchase decisions

5. Heightened client pressure to deliver quantifiable value by

evaluation of ROI of the marketing initiatives , forces marketing

service providers – especially agencies – to re-evaluate services

platforms

6. Growing effectiveness of “multi channel” campaigns (those that

cross multiple media) reinforces demand for tactics that establish

one-to-one relationships between marketers and consumers

7. Rapid technological advances allow for consumer/marketer

interactions that are frequent, easier and more relevant than

previously possible

Trends Impacting BTL Marketing Budgets

1.) Changing consumer demographics decrease the influence of

traditional mass- media (i.e. "one-size-fits-all”) marketing messages.

Understanding the conventions of culture as well as the individual

cultural differences and similarities of target locales empowers marketing

professionals to realize that one universal message—whether verbal or

visual, can never reach a global audience. One global culture comprised

of people with identical values does not exist—not even within the

confines of our own country as the recent elections illustrate. Differences

in learning and thinking patterns influence the way people process

information, as demonstrated in their innate responses to marketing

49

Page 55: ST_hindware

communications. Audiences differ in the way they perceive and value

concepts of time, space, money, relationships, power, risk, and even the

protocols of gender roles. It is important to note that when attempting to

customize communications with cultural differences in mind, it is just as

important to recognize the cultural similarities. As much as localization

vendors like to overemphasize "extreme customization", cultural

similarities do exist, and are deeply imbedded in the core values of your

products and service offerings.

2. Growing consumer sophistication heightens the demand for

channel-agnostic communications.

Advances in marketing and communications haven’t just served to

benefit marketers – consumers, too, have learned to exploit technology,

information and available media channels for their benefit. Among other

capabilities, the sophisticated modern consumer is adept at:

• Using the Internet to compare product prices

• Screening out unwanted outbound telemarketing calls (or telemarketing

calls altogether – through participation on the National Do-Not-Call

list)

• Skipping past television commercials – the lifeblood of above-the-line

marketing – with TiVo and other digital video recording technologies

• Bypassing traditional print advertisements through online

newspaper subscriptions and opt-in “headlines” e-mails that provide a

selected snapshot of relevant news with only a fraction of the advertising

interference.

Collectively, these practices speak to the active participation of

consumers in the marketing process, a phenomenon made possible by the

50

Page 56: ST_hindware

same innovations that many marketers expected would cement their

authority in customers’ daily lives. They demand marketing responses

that are concise, relevant and universal across all media – so that

consumers who choose to interact via multiple channels (say, researching

available products online and then completing the purchase in-store) are

exposed to a consistent fundamental buying experience.

3. Widespread marketing “clutter” diminishes the impact of

commercial messages that don’t address specific and individually

relevant consumer needs.

Rapid advances in the quality of available marketing media have had at

least one deleterious effect: a saturated media consumption landscape,

plus a resultant consumer backlash against advertising messages that are

perceived as intrusive or otherwise irrelevant.

4. Enhanced information availability empowers both marketers and

consumers with insight that allows for precise customer targeting

and intelligent purchase decisions.

Significant advances in database marketing, analytics and customer

relationship management (CRM) platforms have spawned an

informational avalanche, allowing marketers the opportunity to build a

comprehensive, 360-degree view of the customer and their transaction

history. By maximizing the complex array of available information,

leading-edge marketers are reaching prospects with offers targeted to

their expressed (or expected) wants and desires – and driving

significantly enhanced response rates and lifetime customer value.

Not to be outdone, consumers are arming themselves with an array of

enhanced informational tools to make smarter buying decisions. Web

51

Page 57: ST_hindware

sites reinforce the movement to obtain information and apply it through

stricter scrutiny of the available market.

5. Heightened client pressure to deliver quantifiable value forces

marketing service providers – especially agencies – to re-evaluate

services platforms.

Among traditional advertising agencies, average client tenure now stands

at less than18 months per account. In a timeframe shorter than many ad

campaigns themselves, marketers are increasingly deciding that these

trusted strategic advisers – once thought of as the standard-bearers of

marketing strategy, conception and delivery – can easily be replaced by

others whose strategic, creative and, most notably, financial objectives

better align with their own.

While shoddy creative work is often cited as the reason, more often, the

actual fuel for this rapid agency turnover is a lack of concrete delivery. In

the face of alternative below-the-line media that offer the benefits of

personalization and measurable return-on-investment, the vast investment

required to sustain solo ATL campaigns (as well as the agencies from

which they originate) is increasingly seen as excessive in the eyes of

bottom-line focused executives.

6. Growing effectiveness of “multichannel” campaigns (those that

cross multiple media) reinforces demand for tactics that establish

one-to-one relationships between marketers and consumers.

Given the proper tools, consumers prefer to engage with marketers

through a combination of available media (including retail stores, the

Internet, catalogs, direct mail and direct response television) thus

relegating single-channel categorizations such as” catalog buyer” and

52

Page 58: ST_hindware

“online shopper” to the business archive. But these customers offer more

than just a challenge to marketing strategists – they also offer greater

profit potential. According to the Internet Advertising Bureau, well-

executed multichannel marketing campaigns generate a sales lift ranging

from 7 to 34 percent. Viewed from another perspective, that spells trouble

for single- channel marketers (such as those hoping that traditional

television advertisements will fuel visits to retail stores).

7. Rapid technological advances allow for consumer/marketer

interactions that are more frequent, easier and more relevant than

previously possible.

Long ago cited as the most significant factor inhibiting the growth of

BTL marketing, the recent proliferation of appropriate, cost-effective

technologies – for both marketers and consumers – has finally reached

the critical mass necessary to fuel campaigns that cross multiple media

and stand out from the mass-oriented messages proffered by

traditional advertising.

The scope of technological advance spans all media, but perhaps the most

significant advance involves the widespread adoption of high-speed,

broadband Internet connections – allowing consumers to surf the Internet

effortlessly and manage rich, HTML-coded e-mail and online messages

that inspire click-through and greater response. More than 43 percent of

U.S. households now connect to the Internet through a broadband

connection, according to Jupiter Research, and approximately 80 percent

will be on broadband by 2011.

53

Page 59: ST_hindware

END CONSUMER:

• People are ready to spend more on bathroom products. Need for

luxury bathroom products are on increase.

• Hindware has a stiff competition from Parryware Roca

• People look for style, appearance and quality before selecting a

product.

• Advertisements and recommendations from retailers and architects

are the major source of information used by the consumers to select

the brand.

• Almost 50% of the respondents are ready to go for a new brand on

bathroom renovation.

• Consumers are satisfied with all the characteristic of products.

• Brand recommendation to peers is not dependent on the

satisfaction from customer service.

RETAILERS:

• Majority of the retailers recommend Parryware Roca, Hindware

and Metro.

• Parryware Roca and Hindware are the 2 fastest moving brand in

sanitaryware.

• Parryware, Metro and Jaquar are the 3 fastest moving brands in

Taps & showers solutions.

54

Page 60: ST_hindware

• Majority of the retailers recommend Parryware Roca, Hindware,

Jaquar and Metro. They recommend Metro and Jaquar only for

taps& shower solution.

• Retailers Rate Hindware superior to Parryware Roca in quality and

style and equal in price and durability in sanitaryware market.

• Retailers Rate Jaquar, Metro and Parryware Roca almost equal in

Taps& showers products.

55

Page 61: ST_hindware

RECOMMENDATIONS

• Style and Design of the products are to be improved.

• Advertisements in all media channels especially in television.

• The delivery of high technology quality product with lesser

glitches is to be assured.

• An effective after sales service force is to be developed and

consumers should be made aware of it.

• More incentives can be given to Retailers so that they will

recommend only Hindware products.

• A special program like car& bike show or gadget guru etc, can be

organized for sanitaryware industries which will help in increasing

knowledge of the consumers about the products.

56

Page 62: ST_hindware

ILLUSTRATIONS & ANNEXURE

QUESTIONNAIRE FOR END CONSUMERS

1) How much would you generally spend on a bathroom renovation? Below Rs 50,000 Rs 50,000- Rs 1,00,000 Rs 1,00,000- Rs 1,50,000 Above Rs 1,50,000

2) Which company does your bathroom sanitary ware belong to? Jaquar Parry ware Hindware CERA - India Others

If others, please specify _____________________________________

3) What do you look for before selecting a bathroom range? Quality Price Brand reputation Post sales service Style and appearance Others

If others, please specify _____________________________________

4) What source of information have you used to buy the current product range? Advertisements Recommendation from architects/interior decorator Dealers and retailers Family and friends Past experiences

5) In case of future renovation, would you choose product from the existing range? Yes No Don’t know

If not, why ______________________________________________

57

Page 63: ST_hindware

6) If not, which brand would you switch to?

7) What is your satisfaction level in the current product range you are using? Very satisfied Somewhat satisfied Neutral Dissatisfied Very dissatisfied

8) Are you satisfied by the service provided by your customer service? Yes, thoroughly satisfied The problems were not resolved The company does not provide any service Not aware of such facility

9) Will you recommend the brand to your peers? Yes No

If not, why ______________________________________________

Thank you for filling the Questionnaire.

58

Page 64: ST_hindware

Questionnaire For Retailers

1) Could you tell us how long have you been in this business?

2) Which are the fast moving brands? (tick)

Sanitaryware

Taps& showers

3) Which brand do you recommend to your customers for their bathrooms?

4) Rate the following on the scale of 1 to 5: ( 5 stands for high and 1 stands for low)

SANITARYWARE:

Parameters Jaquar Parryware Roca Cera- India HSIL KohlerQuality Style& designDurability Price

TAPS & SHOWERS:

Parameters Jaquar

Parryware Roca

Cera- India

HSIL

METRO Kohler

Quality Style& designDurability Price

Thank you for filling the Questionnaire.

59

Page 65: ST_hindware

BIBLIOGRAPHY

o www.agencyfaqs.com

o www.eventfaqs.com

o www.exchange4media.com

o www.adexindia.com

o www.indiantelevision.com

o Laurent, Gilles, Jean-Noel Kapferer, and Francoise Roussel (1995),

"The Underlying Structure of Brand Awareness Scores," Marketing

Science, 14 (No. 3, Part 2

o Day, George S. and Robert W. Pratt (1971), "Stability of Appliance

Brand Awareness," Journal of Marketing Research, 8 (February),.

o Dall'Olmo Riley, F., A.S.C. Ehrenberg, S.B. Castleberry, T.P.

Barwise, and N.R. Barnard (1997), "The Variability of Attitudinal Repeat-Rates," International Journal of Research in Marketing, 437-50

o Aaker, David A. (1991), Managing Brand Equity. New York: The

Free Press

o Keller, Kevin Lane (2003). “Brand Synthesis: The

Multidimensionality of Brand Knowledge,” Journal of Consumer

Research, 29 (4), 595-600

o Leuthesser, L., C.S. Kohli and K.R. Harich (1995). “Brand Equity:

The Halo Effect Measure,” European Journal of Marketing, 29 (4), 57-

66.

o Keller, Kevin Lane (1993). “Conceptualizing, Measuring, and

Managing Customer-Based Brand Equity,” Journal of Marketing, 57

(January) 1-22

60

Page 66: ST_hindware

61


Recommended