Summer Internship

7/14/2019 Summer Internship

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Titleof the project-TO STUDY THE EXISTING DISTRIBUTION NETWORK OF

HINDWARE SANITARY WARE LIMITED IN NOIDA AND GHAZIABAD AND

SUGGEST IMPROVEMENTS IN THE SAME TO INCREASE MARKET SHARE OF

THE COMPANY.

ABSTRACT

India, with a size of 6.75 million pieces, accounts for about 3.3% of the total global production.

Penetration of Sanitary ware in India is about 30% which is much lower than neighboring Asian

countries, indicating significant growth potential for this sector in Indian market. India, today, is all

set to become the biggest manufacturing hub for international sanitary wares brand. Even foreign

brands like H&R Johnson, Roca and Kohler have established their operations in India. Hindware

India, has the biggest market share in sanitary ware products. For over 47 years, Hindware sanitary

ware products have a huge market share because it not only offers a wide range of sanitary ware

products but also offers them at a relatively lower price than its competitors. Hindwares range of

sanitary ware offers includes wash basins , cisterns , bath tubs , pedestals , etc.

The research is done for brand Hindware that is a flagship brand of HSIL (Hindustan

sanitaryware industries limited). Project seeks to describe the existing distribution network of

Hindware Sanitary Ware Limited in Noida and Ghaziabad and suggests improvements in the

same to increase market share of the company.The report begins with a discussion of the

hindware sanitaryware market and then analyzes the distribution networks of the company in

Noida and Ghaziabad . The report also focuses on suggesting the improvements in the

distribution network of Hindware . The research also identifies the important criteria for making

a purchase decision.

The research adopts a quantitative methodology by preparing a Semi-structured questionnaire

for dealers and sub-dealers and findings are in regard to aspects of marketing and communication

as perceived by dealers and sub-dealers of brand Hindware and its major competitors. Besides

this, the research explores the perception for advertising and its role in purchase decision. In

other words, what is the role of communication and how it influences products and brand


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preference.. The location of research is Noida Ghaziabad and nearby areas of Delhi. Purposive

sampling was done and sample of 30 dealers and 40 sub-dealers were surveyed. Insights have

been obtained about attitude towards buying a particular brand, influence of dealers, users and

advertisement.

In view of the above findings following recommendations have been made to the company.

Some part of study also describes the dealers recommendations, customer preference for a

particular brand and drivers for the growth of sanitary ware category Although the company has

a good distribution network but it has to focus on timely delivery of the products and better after

sales services. The company needs to increase its distribution network by coming up with

attractive schemes for the dealers and sub-dealers so that more and more dealers are ready to take

up companys dealership or sub-dealership.


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CHAPTER 1-INTRODUCTION


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CHAPTER 1: INTRODUCTION

1.1Overview of the industry

In todays world when there is an ever-growing interest in most people to lead an elegant

lifestyle, one is often found ready to spend more and more price to make the house look

Beautiful and this just doesnt get restricted to just living room but also bathroom.

During the last 5-6 years the sanitaryware market in India has grown rapidly, with key players

doubling their production capacities. India has emerged as a major bath and sanitaryware market

in the Asia-Pacific region. The sanitaryware industry in India is divided in two sectors. The

organized sector majorly consisting of 7 companies (M/s. Hindustan Sanitary Industries Limited,

M/s. E.I.D. Parry, M/s. Cera Sanitaryware limited, Somany sanitaryware limited , M/s. Jaguar

Sanitaryware Limited, M/s. Roca Sanitaryware,M/s Kohler sanitaryware limited), manufacturing

sanitaryware for the last 15-20 years and have established their Brand image Unorganized

sanitaryware manufacturer comes under small sectors .

The Indian sanitaryware market is estimated at around Rs. 2750 crores, characterized by a

branded organized sector as well as a large unorganized sector. The industry reported an

attractive 25% growth on account of a strong trend in the building and construction industry

space riding a favorable environment in Indias housing and infrastructure sector. The market for

sanitaryware in India comprises the institutional and individual segment. While institutional

customers buy directly from the company and use material in construction projects like

apartments, commercial complexes and shopping malls, the individual segment buys from retail

outlets for residential applications. Over the last few years, off take has been progressively

influenced by Indias evolving demographics triggered by urbanization, nuclear families, rising

incomes, higher aspiration levels and affordable mortgage rates.India, with a size of 6.75 million

pieces, accounts for about 3.3% of the total global production. Penetration of Sanitaryware in

India is about 30% which is much lower than neighboring Asian countries, indicating significant

growth potential for this sector in Indian market. The Indian sanitary ware market has been


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growing at about 10% a year, as compared to the global average growth of about 7%. The market

size for sanitaryware and bathroom solutions within India is estimated to be over 2750 crores.

World Sanitaryware Market by Volume

1.1 Accumulative growth.

Figure 1: Accumulative growth ceramic sanitaryware market, volume 000 units, 2005-20010.

Source CSL July 2011 newsletter.

1.2Company Profile

History

The Somany Groups flagship company, HSIL was set up in 1962 in collaboration with

Twyfords of UK. In India, it soon pioneered Vitreous China Sanitaryware and gave the concept

of sanitaryware a new meaning. Now, the "Hindware" brand commands more than a third of the

Indian sanitaryware market and is a leader in several categories. Furthermore, amidst

sanitaryware brands, its a top export from India.


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Business model of HSIL

2. Business segments and product categoriesBusiness Segment Product Category

High-end customer Hindware Italian, Grohe, Keramag

Middle class segment Hindware & Hindware art

Mass-market segment Rassi

Table 1: Business segments and product categories

Milestones

India's 100 Most Valuable Brands by Forbes magazine.

Selected Super Brand 2006-2007


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Readers digest 2008 award in sanitary ware category.

Selected as Business Superbrand India 2008

Reader Digest Trusted Brands Platinum Award

4Ps India's 100 most Valuable Brands

IIPM Most Admired 100 companies

Mera Brand Indias Most Preferred Brand

Elle Deco International Design Award 2008

Strategic Business Units of Hind ware:

Sanitary ware

Hindware India, has the biggest market share in sanitary ware products. For over 47 years,

Hindware sanitary ware products have a huge market share because it not only offers a wide

range of sanitary ware products but also offers them at a relatively lower price than its

competitors. Hindwares range of sanitaryware offers includes wash basins , cisterns , bath tubs ,

pedestals , etc.

Faucets

Hindware offers a stunning range of faucets. It has recently launched a new type of faucets with

3c technology- coating, casting, catridge. Hindware follows the policy of no dripping, no

leakage when it comes to faucets . It has launched a new range of faucets recently. The faucets

are manufactured with high quality standardspolished surfaceattractive designlong lasting

performance.

Tiles

Hindware has the best blend of global trends and superlative technology in tiles through their

hindware Italian range. Hindware Italian collection tiles comprise elegant, fine quality glaze

vitrified, double charge and full body vitrified tiles made on chroma technology. Available in


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innovative colours, designs, sizes and finish- to add panache to the look and feel of every space.

The company makes floor tiles and wall tiles.

Kitchen Appliances

Hindware kitchen ensemble comprises imported Italian collection cooker hoods, a wide range of

hobs, cook tops, built in ovens, cooking ranges and microwave ovens. The cooker hood series

consists of aesthetically pleasing design in pure staineless steel and tempered glass. Hindware

hobs blend and integrate well all kinds of kitchen interiors and finishes. These are available in

stainless steel and tempered glass finish.

1.3Rationale for the study

Noida and Ghaziabad have a great potential market for sanitary ware products. According to

the current market scenario all the sanitary ware companies are fighting hard to dominate the

market but hindware sanitary ware products have been able to capture a very good market.

HSIL has launched many new sanitary ware products in the recent times to increase their

market share. The new Italian range by hindware has helped the company in capturing a good

market. This study aims at studying the distribution network of HSIL in order to help them

increase their market share by suggesting them improvements in the same.

Noida and Ghaziabad have a high demand for sanitary ware products. These market have

become all the more important for the company because they have customers for all types of

products. Thus it is very important for the company to have a sound relation with their

dealers and sub dealers because they are the ones who are responsible for selling the product

in these markets. So, it is very important for the company to know the areas of concern for

the company in its distribution network and what the dealers and sub dealers think about the

companys products if they want to increase their market share in future.


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Like in few areas of Noida, the company is facing problems in making timely delivery of the

products to the dealers and sub-dealers which in turn is spoiling companys image in the

market. Hindware would always want to deliver its products on time to its dealers and sub

dealers. Thus, it is very important for the company to know its weaknesses in its distribution

network so that it can satisfy its dealers and sub dealers. The report thus focuses on all the

problems that the company is facing regarding its distribution network in Noida and

Ghaziabad areas. The objective of the study is to know the problems in the distribution

channel of hindware in these ares so that the company can increase its market share in these

areas. The study also focuses on the comparision of the salient features of Hindware's

distribution network with its main competitors and to know the expectations of Hindwares

channel partners from the company and to find out the extent to which these expectations are

being met, thereby highlighting the areas of dissatisfaction of the channel partners.

1.4Definitions and key terms

a) Sampling

Sampling is concerned with the selection of a subset of individuals from withina population to estimate characteristics of the whole population.When taking a sample from alarger population, it is important to consider how the sample will be drawn. To get a

representative sample, the sample must be drawn randomly and encompass the entire population.

b) Distribution Channels

The chain of businesses or intermediaries through which a good or service passes until it reaches

the end consumer. A distribution channel can include wholesalers, retailers, distributors and even

the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing

the consumer to buy the good from the manufacturer and an "indirect" channel allowing the

consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than

"indirect" ones.


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c) Channel partners

Channel partner is a company that partners with a manufacturer or producer to market and sell

the manufacturer's products, services, or technologies. This is usually done through a co-

branded relationship. Channel partners may be distributors, vendors, retailers, consultants,

systems integrators (SI), technology deployment consultancies, and value-added

resellers (VARs) and other such organizations.

d) Dealers

A company or individual, playing in the market at their own expense and on their behalf, that is,

investing their own money, selling/buying a currency or other assets on their own. He may be a

trader, a shopkeeper, a broker , etc.

e) Research design

Research design is defined as, it is the plan for collecting and utilizing data so that desired

information can be obtained. A research design is the determination and statement of the general

research approach or strategy adopted for the particular project

There are two types of research design:

1 Qualitative

2 Quantitave

1.5Theoretical framework

Distribution Channels of Hindware Sanitary ware in India


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Companies are facing many challenges including the operating cost of the distribution networks

(Bob Mcintyre, 2009). Adding to that, Distribution has gained enormous importance since it

accounts for a large portion of the total cost for a product to the company. Companies can greatly

improve their efficiency by creating and maintaining the right Distribution Channel. In recent

years, companies have been adding new channels to existing ones according to Rowland T

Moriarty and Ursula Moran (1990). This can be accounted for multiple reasons like increasing

the customer reach, cutting cost, meeting requirements of different segments and many more.

Companies have been adapting to the changing nature of business to stay ahead in competition.

Adding new channels gives them an edge over the competitors, especially during the recent

turbulent times when the economies worldwide were falling. The need of the hour is to have a

sustainable business which can sail through such difficult phase of global recession. India has

become a hot spot for business for many countries (Vikram Bhalla, Arindham Bhattacharya,

Abheek Singhi, Sharad Verma, 2007) due to its large customer base and increasingdemands.

India being the second highest populated country and disposable income has increased in recent

years. There is a huge scope for any country to set up its business in India, provided it is able tocope up with issues like poor infrastructure apart from the culture, bureaucracy and other issues.

Making a Hybrid Distribution work effectively can be a difficult task (John W. Hayden,

2000).Success lies in understanding and managing the channels rather than to randomly

experiment with them. Hybrid Distribution Channels may result in problems of conflict and

control according to Gila E. Fruchter (2005). Difference of margin, preference, and other factors

leads to dissatisfaction among the channel members and may result in shut down of a channel,

thus negating the very purpose of Hybrid Distribution Channels. Thus, companies would need to

develop a Distribution network that would suit their nature of business. This would require great

amount of thought with respect to channel design.


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CHAPTER 2: LITERATURE REVIEW


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2.1 Marcos Fava NevesProfessor(2009), Business/Distribution Department of tangible

goods (like sanitary products), School of Economics.

Research of existing literature reveals some models (sequence of steps) for companies that wantto plan distribution channels. None of these models uses strong contributions from transaction

cost economics, bringing a possibility to elaborate on a``distribution channels planning model,

with these contributions and organizing the steps according to a sequence that would be useful

for companies when reviewing the distribution process. This sequence was refined through in-

depth interviews with companies and distributers.

2.2 Research World, Volume 6 (2009) Research on Distribution Channel Management ofsanitary ware products.

This research report has analyzed the distribution channel and the chain of intermediaries, each

passing a product down the chain, before it finally reaches the consumer. How it bridges the gap

between the producer and the consumer. How Effective channels serve targeted market

segments, maximise sales, minimise cost, and help producer companies gain a sustainable

competitive advantage in delivering superior value to their customers. This research shows how

channel partners (such as dealers, distributors, resellers) play a crucial role in the effective

functioning of the channel. Their needs and goals may not always be aligned to those of the

producers or the consumers. Channel managers--managers of the producer organisation,

responsible for distribution performance--need to design effective distribution channels and work

in collaboration with the channel partners, taking any corrective actions based on periodic

assessment and monitoring.

2.3 Managing channels of distribution of sanitary products in the age of electronic

commerce Kevin L. Webb Department of Marketing, E. Claiborne Robins School of

Business, University of Richmond, Richmond, VA 23173, USAReceived 1 May 2000

The emergence of electronic commerce (e-commerce) has created a new business paradigm, one

that presents marketers with noteworthy opportunities and challenges. Perhaps the greatest

impact is in the area of channel management. The top issue for many business-to-business(B2B)

firms today is channel conflict. In this paper, we investigate the effect of introducing the Internet


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channel into an already complex, multichannel distribution system . We describe strategies for

proactively managing conflict, both externally with channel partners and internally among

responsible for managing the channels. Twelve propositions for research are developed; eight

relate directly to the marketing mix and four focus on channel communication and coordination.

All of the research propositions offered are mechanisms by which suppliers can influence the

level of channel conflict they experience. Dedicated channel management groups, documentation

of channel strategies, and superordinate goals are identified as strategies for minimizing

unwanted conflict.

2.4 Ubirata Tortato, Roberto Marx (2010), Study on the Configuration of Distribution

Channels for Sanitary ware products .

This paper proposes an explanatory model for the configuration of sanitary distribution channels.

The study was done using two sources of information: 1) The literature on the distribution of

speciality goods and on sanitary ware distribution and 2) Interviews conducted with dealers . The

survey allowed the identification of three variables for the proposed model: dealer size,

consumer behavior and the environment. The model comprises three possible organizational

forms for the distribution business: isolated single brand, single-brand group, and multi-brand

group. This study is expected to contribute to a better understanding of the evolution of the

sector, as well as to support the analysis of future sanitary distribution trends.

2.5 On the open design of tangible goods Christina Raasch, Cornelius Herstatt, Kerstin

Balka Mar 26th, 2009R&D Management, forthcoming on the open design of tangible goods

like sanitary products -Christina Raasch, Cornelius Herstatt, Kerstin Balka

Open Source Software development has received considerable scholarly attention, much of

which is based on the presumption that the open source model holds some l essons of broader

applicability. Nonetheless, our knowledge of its deployment outside the software industry is very

limited. This paper focuses on the open source development of tangible objects, so-called open

design. We propose a generalised definition of open source development. Drawing on 27

exploratory interviews and six comparative case studies selected from a pool of more than 75

projects, we analyse the workings of open design. The analysis reveals that open design is

already being implemented in a substantial variety of projects with different organisational and

institutional structures.


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2.6 Distribution network consolidations and optimization for sanitary ware market by Phol

Sridurongkatum under the supervision of Bruce Arntzen on 7th

May,2010.

Redisigning the distribution networks for the companys various supply chains to lower the costof delivering products to consumers is crucial to companys competitiveness. Redesign includes

changing warehouse locations for a specific product to be closer to customers and warehouse

consolidation, which requires sharing warehouse space by more than one product type and

closing some existing warehouses that are not cost efficient to operate.

The objective of this project is to develop a decision tool to help an industrial conglomerate

make decisions related the redesign the distribution networks. The data collection was done

through collaboration with companys representatives. A mixed integer linear programming

model was developed as a tool to solve the optimization problem, which involves moving 9

product types from 21 manufacturing plants, through 22 warehouses and to 26 destination zones.The result from the model provides useful information for the company about which warehouse

should be retained , which warehouse should be closed and what would be the new distribution

network, in order to minimize total distribution cost while still satisfy the customers demand.

2.7 Channels of Distribution Conceptualisation by John Gattorna, (1978) "Channels of

Distribution Conceptualisation: A State-of-the Art Review", European Journal of

Marketing, Vol. 12 Iss: 7, pp.469512

Channels of distribution are basic to the marketing strategies of firms, and have been shown to

be a key element in the marketing mix. The author here undertakes a comprehensive review of

channels literature, primarily to identify and assess the adequacy of the various mainstream

conceptual schemes which have emerged. Economic-based arguments have largely been at the

core of channels literature, although these have been partially offset by the concepts of the

organisational and behavioural schools. The author concludes that whereas every conceptual

approach reviewed has added something to our cumulative knowledge, no single approach has

yet reached a point of adequate conceptualisation based on his own basic criteria. As yet

channels literature is mainly descriptive, and has virtually no predictive power.

2.8 Designing the Distribution Network in a Supply Chain (sanitary ware products) by

Sunil Chopra Kellogg School of Management, Northwestern University 2001 Sheridan

Road, Evanston, IL 60208, U.S.A.


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This paper describes a framework for designing the distribution network in a supply chain.

Various factors influencing the choice of distribution network are described. We then discuss

different choices of distribution networks and their relative strengths and weaknesses. The paper

concludes by identifying distribution networks that are best suited for a variety of customer and

product characteristics.

2.9 Effectiveness of Distribution Network of sanitary products by M. Sreenivas, Alluri

Institute of Management Sciences, India T. Srinivas, Kakatiya University, India.

The intent of this study was to identify factors that influence supply chain efficiency and

effectiveness of sanitary ware products. Here, efficiency is defined as the ability of the

distribution function to maximize the ending auction price. Effectiveness is defined as the ability

of the chosen factor levels to attract bidder customers. Since many of those factors are under the

control of the seller, identifying them may help sellers improve the outcome of their sales. The

study also lays emphasis on reducing the final cost of the product by improving the efficiency of

distribution channel.

2.10 A Bargaining Theory of Distribution Channels (sanitary products) by GANESH IYER

and J. MIGUEL VILLAS-BOAS.

A critical factor in channel relationships between manufacturers and retailers is the relative

bargaining power of both parties. In this article, the authors develop a framework to examine

bargaining between channel members and demonstrate that the bargaining process actually

affects the degree of coordination and that two-part tariffs will not be part of the market contract

even in a simple one manufacturerone retailer channel. To establish the institutional and

theoretical bases for these results, the authors relax the conventional assumption that the product

being exchanged is completely specifiable in a contract. They show that the institution of

bargaining has force, and it affects channel coordination when the complexity of non

specifiability of the product exchange is present. The authors find that greater retailer power

promotes channel coordination. Thus, there are conditions in which the presence of a powerful

retailer might actually be beneficial to all channel members. The authors recover the standard

double-marginalization take-it-or-leave-it offer outcome as a particular case of the bargaining

process. They also examine the implications of relative bargaining powers for whether the

product is delivered early (i.e., before demand is realized) or late (i.e., delivered to the


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retailer only if there is demand). The authors present the implications for returns policies as well

as of renegotiation costs and retail competition.


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CHAPTER 3: RESEARCH METHODS AND PROCEDURES


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3.1 Purpose of Study

3.1.1 Objectives Of Research

The first step in a marketing research project is to define a problem. The objective of the research

is to study the distribution network of Hindware Sanitary ware in Noida and Ghaziabad and to

suggest improvements in the same to increase market share of the company.

The objectives in the current research are-

1) To do an in depth study of the distribution network of Hindware in Noida and Ghaziabad market.

2) To compare the salient features of Hindware's distribution network with its main competitors.

3) To assess the expectations of Hindware's channel partners from the company andfind out the extent to which these expectations are being met, thereby highlighting

the areas of dissatisfaction of the channel partners.

4) To make suitable reccomendations,to improve the distribution network ofHindware for increasing its market share in Noida and Ghaziabad.

3.2 Research Design

A research design is a framework or blueprint for conducting the marketing research project. It

specifies the details of the procedures necessary for obtaining the information needed to structure

and/or solve the marketing research problem. The type of research used is descriptive because

the objective is to determine the minset and problems of sub-dealers and dealers regarding

Sanitaryware product. After knowing our survey objectives it was very much clear that this

research is leading us to descriptive research. A descriptive research is a type of conclusive

research that has the major objective of a description of something, usually market characteristics

or functions. In other words it shows what actually exists. The research involves a study on the


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distribution network of hindware sanitary ware available .Hence, considering the above points a

descriptive research would be more suitable.

3.2.1 Research Problem

The distribution network plays a vital role in the sales of the company because of its penetration

capabilities . The distribution network of Hindware Sanitary ware has faced some problems in

the recent times. The study aims at analyzing the current distribution network of the company in

Noida and Ghaziabad taking factors such as after sales services, competitors, schemes for

dealers, etc. and thus providing suggestions for the same.

3.2.2 Scope Of The Project

The study was conducted in Noida and Ghaziabad. So, I personally visited most of the markets

and met the dealers and sub-dealers of the company. The study included 30 dealers and 40 sub

dealers.

3.3 Research Plan

The research was started with a well laid research plan and was scheduled properly. The research

plan included:

1) Data collection

2) Instruments used

3.3.1 Data Collection

Primary research

The data collected in the study is through both primary research as well as secondary research

conducted in various markets. The data was collected by making personal visits to various

showrooms and shops.


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Firstly,the information was collected by making telephone calls to various ealers and sub-dealers

and then asking them about the distribution network of hindware and other factors,then some

information was collected through internet .

Secondly, the data was collected by preparing a questionnaire. The dealers and sub-dealers in

Ghaziabad and Noida were visited personally by me . some of the dealers and sub dealers were

contacted on phone. Thus,data of 30 dealers and sub-dealers was collected, which was analysed

later.

3.3.2 Instruments Used

The research instrument consists of software SPSS and excel for analysis of data. Telephonic

interviews, e-mails and personal visits were made , which were guided by questionnaire. The

questionnaire had questions for dealers and sub-dealers for helping Hindware sanitary ware

limited to capture more market in Ghaziabad and Noida.

3.4 Procedures

To carry out the process of sampling following steps were followed

Telephonic calls, personal visits were made to various dealers and sub-dealers in Ghaziabad and

noida

A questionnaire was prepared to know the behavior and problems of dealers .

Then sampling size was taken to be 30 dealers and 40 sub-dealers as it is not possible to study all

dealers and sub-dealers. The sampling technique was decided later after the survey. Non-probability sampling technique

was chosen because of nature of research, variation in population.


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3.5 Sample Size

As the target population consists of dealers and sub-dealers,thus it was not possible to have a

large sample. Sample size of 30 dealers and 40 sub-dealers was thus taken. Also dealers and sub-

dealers were not so keen on giving information on telephones and e-mails,thus the sample size

could not be large.

3.6 Participants

The target population consists of dealers and sub-dealers who deal with the sanitary products of

hindware. They were the key to this study as they helped in studying and analyzing the researchand also helped in suggesting improvements in the distribution network of the company as they

are directly linked with the company.

3.7 Research Question

The research question for this study is to study the distribution network of hindware sanitary

ware .This research will also enabled the company to overcome its problems in the distribution

chain so that the company can function better and increase its market share in future.

3.8 Data Analysis

Various pie charts, bar graphs nd frequency distribution tables are made to have an easy and

quick understanding of the study conducted . an overall comparision of the various responses

from all dealers and sub-dealers was done and analysed.


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3.9 Limitations:

The several limitations of the methodologies adopted are:

Secondary data used might not be of recent time . The study was done in a limited area covering only a few dealers and sub-dealers. So, it might

not apply at all the places.

Questionnaire could not cover all the problems related to distribution channel of the company

and thus a lot of areas were left uncovered.

The time for study was only 2 months and there was a lot to learn and explore, so some of the

areas couldnot be covered in this research.


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CHAPTER 4: DATA ANALYSIS AND FINDINGS


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CHAPTER 4: DATA ANALYSIS AND FINDINGS

4.1 Results of research questions

1. Involvement in dealership with HSIL.

Table:4.1.1 involvement in dealership with HSIL

Frequency Percent Valid Percent

Cumulative

Percent

Valid 0 - 4years 20 28.6 28.6 28.6

4 - 8 years 27 38.6 38.6 67.1

8 - 12 years 15 21.4 21.4 88.6

more than 12 8 11.4 11.4 100.0

Total 70 100.0 100.0

4.1.1 Dealership with HSIL.

Inference: Above diagram shows that Hindware has a good loyalty rate when it comes to

maintaining good relationship with their dealers. Although not many dealers come under the

Above 12 category but still a lot of them figure in 4-8 years category which is a healthy sign.


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2.Rate the expansion of HSIL products in last 4 years

4.1.2 Expansion of HSIL products in last 4 years


Cumulative

Percent

Valid Very Good 12 17.1 17.1 17.1

Good 25 35.7 35.7 52.9

Neutral 24 34.3 34.3 87.1

Poor 9 12.9 12.9 100.0

Total 70 100.0 100.0

4.1.2 Expansion of HSIL products in last 4 yrs.

Inference: Dealers think that the company is showing a good expansion rate which is a positive

sign for the company because it proves that the company has a bright future ahead and have high

chances of having a good market share in future


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3. Quality of HSIL products.

4.1.3 Quality of HSIL products.


Cumulative

Percent

Valid Very Good 21 30.0 30.0 30.0

Good 32 45.7 45.7 75.7

Satisfactory 12 17.1 17.1 92.9

Poor 5 7.1 7.1 100.0

Total 70 100.0 100.0

4.1.3 Quality of HSIL products.

Inference: The dealers and sub-dealers feel that the sanitary products of hindware are of good

quality which reflects that the company doesnot compromise on its quality and thus is thinking

of dominating the market for a longer time.


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4. Indicate your satisfaction level with HSIL on following variables_

4.1.4.1 COMMISSION

4.1.4.1 Satisfaction level with HSIL : Commission


Cumulative

Percent

Valid Very Good 11 15.7 15.7 15.7

Good 21 30.0 30.0 45.7

Neutral 23 32.9 32.9 78.6

Poor 14 20.0 20.0 98.6

Very Poor 1 1.4 1.4 100.0

Total 70 100.0 100.0

4.1.4.1 Satisfaction level with HSIL:Commission.

Inference: Above diagram shows that the dealers are neutral and not so satisfied when it comes

to commission. The company needs to work on this aspect in order to keep the dealers happy in

future.


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4.1.4.2 AFTER SALE SERVICE

4.1.4.2 Satisfaction level with HSIL:After sales service


Cumulative

Percent

Valid Very Good 14 20.0 20.0 20.0

Good 22 31.4 31.4 51.4

Neutral 19 27.1 27.1 78.6

Poor 13 18.6 18.6 97.1

Very Poor 2 2.9 2.9 100.0

Total 70 100.0 100.0

4.1.4.2 Satisfaction level with HSIL:After Sales Services.

Inference: The company has a good after sales service but(18.6%) dealers still think that the

company needs to work on its after sales services.


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4.1.4.3 DELIVERY Of Products.

4.1.4.3 Satisfaction level with HSIL:Delivery of Products.


Cumulative

Percent

Valid Very good 9 12.9 12.9 12.9

Good 21 30.0 30.0 42.9

Neutral 20 28.6 28.6 71.4

Poor 19 27.1 27.1 98.6

Very Poor 1 1.4 1.4 100.0

Total 70 100.0 100.0

4.1.4.3 Satisfaction level with HSIL:Delivery of Products.

Inference: The company needs to work on its timely delivery as 27.2% of the dealers show their

dissatisfaction in this regard . this is a very important aspect of the business and the company

needs to solve this problem as soon as possible.


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4.1.4.4 EXCHANGE POLICY

4.1.4.4 Satisfaction level with HSIL:Exchange Policy

Inference: This diagram shows that dealers are both satisfied as well as dissatisfied when it

comes to companys exchange policy which means that the exchange rate varies from one place

to another.

4.1.4.4 Satisfaction level with HSIL:Exchange policy


Cumulative

Percent

Valid Very Good 8 11.4 11.4 11.4

Good 22 31.4 31.4 42.9

Neutral 18 25.7 25.7 68.6

Poor 19 27.1 27.1 95.7

Very Poor 3 4.3 4.3 100.0

Total 70 100.0 100.0


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5.Assess your professional relationship with your suppliers.

4.1.5 Professional relationship with suppliers.


Cumulative

Percent

Valid Very Good 10 14.3 14.3 14.3

Good 13 18.6 18.6 32.9

Neutral 25 35.7 35.7 68.6

Poor 18 25.7 25.7 94.3

Very Poor 4 5.7 5.7 100.0

Total 70 100.0 100.0

4.1.5 Professional relationship with suppliers.

Inference: The above diagram shows that not a lot of dealers have given a negative reply when it

comes to their professional relation with the company which means that the company maintans

healthy relations with their dealers.


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6. Factor that attract you to be the dealer of HSIL products.

4.1.6.1 Promotional schemes.

4.1.6.1 Promotional Scheme


Cumulative

Percent

Valid yes 21 30.0 30.0 30.0

No 49 70.0 70.0 100.0

Total 70 100.0 100.0

Inferences-The above diagram shows the promotional scheme of HSIL.70% of the dealers get

attracted by the promotional schemes of the company.


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4.1.6.2 Quality of the Products.

4.1.6.2 Quality of products


Cumulative

Percent

Valid Yes 30 42.9 42.9 42.9

no 40 57.1 57.1 100.0

Total 70 100.0 100.0

Inference-The above diagram shows that 42.9% of the dealers sell HSIL products because of its

quality standard.The company needs to improve in this area in order to be successful in future.


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4.1.6.3 Company Policy

4.1.6.3 Company Policy.


Cumulative

Percent

Valid yes 5 7.1 7.1 7.1

no 65 92.9 92.9 100.0

Total 70 100.0 100.0

Inference-More than 90% of the dealers donot like policies of the company.This is a huge

percentage and the company must take measures quickly as this is an alarming figure.


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4.1.6.4 Margin on products.

4.1.6.4Margin


Cumulative

Percent

Valid Yes 14 20.0 20.0 20.0

No 56 80.0 80.0 100.0

Total 70 100.0 100.0

Inference-The above question shows that most of the dealers are satisfied with the quality of the

sanitary products of hindware which is a very good sign for the company while it also shows that

the company needs to improve on other aspects.


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4.1.7 The credit period given by HSIL.

4.1.7 Credit period given by HSIL


Cumulative

Percent

Valid Very Good 10 14.3 14.3 14.3

Good 20 28.6 28.6 42.9

Satisfactory 22 31.4 31.4 74.3

Poor 18 25.7 25.7 100.0

Total 70 100.0 100.0

4.1.7 Credit period given by HSIL.

Inference: The company offers a poor credit policy and the company needs to give more credit

period to its dealers and sub-dealers so that they can easily repay their money.


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8. Rate the promotional activities of HSIL.

4.1.8 Promotional activities of HSIL.


Cumulative

Percent

Valid Very Good 9 12.9 12.9 12.9

Good 23 32.9 32.9 45.7

Neutral 22 31.4 31.4 77.1

Poor 15 21.4 21.4 98.6

Very Poor 1 1.4 1.4 100.0

Total 70 100.0 100.0

4.1.8 Promotional Activities of HSIL.

Inference: The company needs to improve on its promotional activities because in the long run

the company will have to come up with better promotional activities if it wants to increase its

market share because the company can reach out to its target people only through its promotional

activities.


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9. Your views on the price of HSIL products.

4.1.9 Price of HSIL products.


Cumulative

Percent

Valid Very High 15 21.4 21.4 21.4

High 22 31.4 31.4 52.9

Average 24 34.3 34.3 87.1

Low 9 12.9 12.9 100.0

Total 70 100.0 100.0

4.1.9 Price of HSIL products

Inference- The above study shows that the dealers feel that the sanitary products of hindware

have a high price. This shows that the company needs to work on reducing its cost of production

if it wants to keep its market domination.


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10. Other brands of sanitary ware products you deal in

4.1.10.1 Parryware


Cumulative

Percent

Valid Yes 10 14.3 14.3 14.3

No 60 85.7 85.7 100.0

Total 70 100.0 100.0

4.1.10.1 Parryware.

Inference-Only 14.3% dealers deal in Parryware brand which is good news for the company.

4.1.10.2 Cera


Cumulative

PercentValid Yes 22 31.4 31.4 31.4

No 48 68.6 68.6 100.0

Total 70 100.0 100.0


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4.1.10.2 Cera

Inference- Above diagram shows that cera is an emerging brand and is a huge competition to the

company.The company needs to take Cera very seriously.

4.1.10.3 Roca

4.1.10.3 Roca


Cumulative

Percent

Valid Yes 7 10.0 10.0 10.0

No 63 90.0 90.0 100.0

Total 70 100.0 100.0


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4.1.10.3 Roca

Inference- The above diagram shows that roca is still not a big threat to

of dealers deal with its products.

4.1.10.4 Kohler.

4.1.10.4 Kohler

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 6 8.6 8.6 8.6

No 64 91.4 91.4 100.0

Total 70 100.0 100.0


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4.1.10.4 Kohler.

Inference-Kohler has relatively low market share .The diagram shows that kohler is not a big threat

to the company .It has a low market share as compared to other brands.

4.1.10.5Other brands of sanitary ware products you deal in jaguar


Cumulative

Percent

Valid Yes 25 35.7 35.7 35.7

No 45 64.3 64.3 100.0

Total 70 100.0 100.0


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4.1.10.5 Jaguar.

Inference-Above diagram shows that jaguar is a big threat to the company as a lot of dealers deal in

its products which shows that jaguar products have a huge demand in the market.

4.2 Summary of the findings

From the analysis of the data ,the summary is as follows:

1) The company needs to work on its expansion rate as 12.3% of the dealers still feel that the

company is showing a poor expansion rate. The company should take timely feedbacks and

should look into this matter so that it can head in the right direction.

2) 27.8% dealers are neutral and 18.6% of the dealers and sub-dealers still feel that the company

needs to improve on its after sales service. This is a very important factor if the company islooking for a loyal customer base as most of the customers prefer a good after sales service of the

product after purchasing it from the market.

3) Exchange policy of the company has shown an awkward growth with some dealers and sub-

dealers in favour of the companys exchange policy while some opposing the companys current


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exchange policy. The company needs to work on its exchange policy so that it is able to satisfy

more and more dealers and sub-dealers and in turn will also be able to satisfy its customers.

4) 25.9% of the dealers and sub-dealers find the credit policy of the company poor .this is a clear

indication that the company is not having a good credit policy for its dealers and sub dealers. The

company should analyse its credit policy and should make sure that it doesnot put a lot of

pressure on its dealers and sub-dealers as these might prove fatal for their professional relation in

the long run.

5) Another finding from the above study can be the poor promotional schemes of the company.

With 21.4% of the dealers and sub-dealers finding companys promotional activities poor are

clear signs that the company needs to work on its current promotional activities in order to

increase its market share in future.

6) Channel partner satisfaction levelThe main issues that can be identified on the basis of inferences from the research are that,

a) Delivery is not being done on timeb) Display support is quite low as compared to competitorsc) Display payments are not done timely

Credit period is not being given


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CHAPTER 5: CONCLUSIONS AND

RECCOMENDATIONS


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CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Objective wise conclusions are :

a) Objective 1 : To do an in depth study of the distribution network of Hindware in Noida and

Ghaziabad market

Through the primary data of 30 dealers and 40 sub-dealers in different markets of noida and

Ghaziabad ,I have come to the conclusion that :

Hindware has a good distribution network in Ghaziabad and noida

The products are delivered timely and not a lot of time is wasted on transportation.

The company has a depot in Ghaziabad Industrial area and 97% of the products of sanitary ware

are dispatched from there to their respective places

Hindware has sufficient number of distributer in Ghaziabd and near by areas.

b) Objective 2: To compare the salient features of Hindware's distribution network with its maincompetitors.

Hindware has relatively better distribution network than cera and jaguar(its main competitor)

c) Objective 3 : To assess the expectations of Hindware's channel partners from the company andfind out the extent to which these expectations are being met, thereby highlighting


On the basis of the survey of 30 dealers and 40 sub-dealers , I can very easily say that hindware

has been able to meet the expectation level of its channel partners.

The study also proves that hindwares firm relation with its channel partners is because of its

good quality as 45.7% were happy with the quality of hindwares product.

Company has a good after sales service and exchange policy but poor credit policy ,so it shows

that there is still some scope of improvement .

5.2 Recommendations

1) The company should try and reduce its cost of production so that it has lower price of its sanitary

ware products and thus can attract more and more customers.


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2) The company should target distributers by increasing their sales targets . This will help the

company in selling more and more products and in return will increase companys market share.

3) Company should offer discounts or should come up with new schemes on its sanitary ware

products in order to attract more and more customers.

4) Better promotional activities can help the company to increase its market share . The study

proves that the company has a poor promotional policy.

5) Company should offer or come up with special monthly schemes for its dealers and sub-dealers

,this would force them to buy the material in bulk and sell it to the customers.

5.3 Limitations

Study was restricted to Noida and Ghaziabad only.

Lack of knowledge and understanding in case of a few dealers.

Since, convenient sampling has been followed; generalizations of populations cannot be done

accurately on the basis of this data.

Small sample size.Only 30 dealers and 40 sub- dealers were surveyed.

The time span of the survey is just 7 days with total working of 58 days.

5.4 Implications for practices

New and improved promotional schemes.

Company needs to focus on its exchange policy.

Better after sales services.

Company should make sure timely delivery of the products to its dealers.

New ideas for improving the credit policy.


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5.5 Implications for future study

In future, Hindware has to carry out this research for its distribution network. It is not easy to

collect data from various dealers and sub dealers for research purpose until you study the entiremarket function and gain a deep knowledge about the various functions and expectations of the

dealers and sub-dealers of a particular area.


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REFERENCES

Books:

Kotler, Philips principles of marketing (2006) pp-155-162.

Business Research Methods, 6thEd.: Cooper, Donald R; Schindler, Pamela S.

Understanding Consumer Decision Making- the Means-End Approach to Marketing and

Advertising Strategy edited by: Reynolds, Thomas J; Olson, Jerry PP-67

Malhotra, Naresh Research methodology (2007) pp-142-152

Trochim, M.K. William: Research methods

Websites :

http://www.icctas.com

Http://www.parryware.com

Http://www.Roca.com/news

Http://www.press.com

Http://www.Rocaindia.com

Http://www.hindwarehomes.com

http://www.indiainfoline.com

http://www.equitymaster.com

Http://marketresearch.com

Http://BSRIA.com

Http://www.kohler.com

http://www.financialexpress.com

http://www.valuebasedmanagement.net
http://www.icctas.com/http://www.parryware.com/http://www.roca.com/newshttp://www.press.com/http://www.rocaindia.com/http://www.hindwarehomes.com/http://www.indiainfoline.com/http://www.equitymaster.com/http://marketresearch.com/http://bsria.com/http://www.kohler.com/http://www.financialexpress.com/http://www.valuebasedmanagement.net/http://www.valuebasedmanagement.net/http://www.financialexpress.com/http://www.kohler.com/http://bsria.com/http://marketresearch.com/http://www.equitymaster.com/http://www.indiainfoline.com/http://www.hindwarehomes.com/http://www.rocaindia.com/http://www.press.com/http://www.roca.com/newshttp://www.parryware.com/http://www.icctas.com/


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Annexure-1

A: Questionnaire

Q1: How long have you been involved in dealership with HSIL?

1. 0-4 years

2. 4-8 years

3. 8-12 years

4. More (please specify) ____________

Q2: How would you rate the expansion of HSIL products in last 4 years?

1. Very Good

2. Good

3. Neutral

4. Poor

5. Very poor

Q3: What do you feel about the quality of HSIL products?

1. Very Good

2. Good

3. Satisfactory

4. Poor

5. Very Poor

Q4: Indicate ur satisfaction level with HSIL on following variables_

Particular Very

Good

Good Neutral Poor Very Poor

Commission

After Sale

service

Delivery

Exchange Policy


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Q5: How would you assess your professional relationship with your suppliers?

1. Very Good

2. Good

3. Neutral

4. Poor

5. Very Poor

Q6: Which factor attracts you to be the dealer of HSIL products?

1. Promotional Scheme

2. Quality

3. Company Policy

4. Margin

Q7: What do you feel about the credit period given by HSIL?

1. Very Good

2. Good

3. Satisfactory

4. Poor

5. Very Poor

Q8: What do you think about the promotional activities given by HSIL?

1. Very Good

2. Good

3. Neutral

4. Poor

5. Very Poor

Q9: What do you feel about the price of HSIL products?

1. Very High

2. High

3. Average


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4. Low

5. Very Low

Q10: What other brands of sanitary ware products you deal in?

1. Parryware

2. Cera

3. Roca

4. Kohler

5. Jaquar

6. Other : __________ (please specify)

Q11: Which are the areas in which you would want HSIL to improve?

_____________________________________________________________________

_____________________________________________________________________

Name of dealer: _____________________________________________________

Product dealt with: __________________________________________________

Name of the shop:___________________________________________________

Email: ____________________________________________________________

Contact number: ___________________________________________________

Thank you for your valuable time


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ANNEXURE- 2

SYNOPSIS REPORT

AMITY UNIVERSITY

-----UTTAR PRADESH-----

Amity Business School

SUMMER INTERNSHIPEVALUATION

Student Name ASTITVA GAUR

Enrollment No A0102211047

Programme MBA - M&S

Company'sName

and Address

Hindware Ltd.(HSIL)

Unit no-301-302,III floor, Park Centra, Gurgaon,

Haryana

122002

Industry Guide

Name Mr.Sumit Saxena

Designation ASST. Manager-Hindware Sanitary-Sales

ContactNumber

Ph.(O) : 09310588784

Mobile : 09310588784

Fax:0

E-mail : [email protected]


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Project Information

1) Project Duration : (56 Days)

a) Date of Summer Internship commencement (03/05/2012)

a) Date of Summer Internship Completion (28/06/2012)

2) Topic

To study the existing distribution network of Hindware Sanitary Ware Limited in

Noida and Ghaziabad and suggest improvements in the same to increase market share

of the company.

3) Project Objective

1. To do an in depth study of the distribution network of Hindware in Noida and

Ghaziabad market.

2. To compare the salient features of Hindware's distribution network with its maincompetitors.

3.To assess the expectations of Hindware's channel partners from the company and

find out the extent to which these expectations are being met, thereby highlighting


4.To make suitable reccomendations,to improve the distribution network of

Hindware for increasing its market share in Noida and Ghaziabad.

4) Methodology to be adopted


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1.Research Problem-India has a huge potential market for sanitary products which has

not yet been fully tapped.Hindware has an extensive range of sanitary ware and bath

fittings designed for different segments-from premium range of Benelave and Italian

collection to more affordable products for the common man.However,they have not

been able to penetrate in the market as per their expectation. This study aims at

studying the existing distribution network of hindware in Noida and Ghaziabad and

find out the possible gaps in the distribution network which may be responsible for

less than desired market penetration. Study will also try to assess the expectation of

hindware channel partners and the extent to which these expectations are being met

by the company, thereby highlighting the areas of dissatisfaction of the channel

partners, so that suitable recommendations can be made to improve the distribution

network of Hindware in Noida and Ghaziabad.

2.Research Design-Exploratory research will be used to study the existing distribution

network of hindware sanitary products. Descriptive research will be used to collect

primary data from dealers and sub-dealers in Noida and Ghaziabad to study the

functioning of actual distribution network.

3.Data Collection-Primary data for the purpose of research will be collected in a

structured questionnaire from dealers and sub-dealers. Secondary data will be

sourced from company reports, manuals, trade and industry journals and internet.

4. Sample Design-Non probability convenience/judgmental sampling.

5. Sample Size-The sample size will be approx 30 dealers and 40 sub- dealers.


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6. Sampling Areas-The area of the research will be Ghaziabad, Noida and nearby

areas of Delhi.

5)Brief Summary of project(to be duly certif ied by the industry guide)

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

Twyfords, in with Twyfords Ltd. of UK. With a bent towards innovation coupled

with the intention to introduce vitreous ceramics in India, he identified the sanitary

ware market as the segment of interest. Hindustan Twyfords was the first in the India

to make available vitreous ceramics, offering significant improvement from theprevalent earthenware sanitary products. With strong family support, coupled with

technical collaboration from Twyfords, Mr. RK Somany established the Bahadurgarh

plant, which commenced production in 1962. Now Hindware have three

manufacturing plants in India producing 12000 units of sanitary ware in a day.

The present study aims at studying the existing distribution network of Hindware in

Noida and Ghaziabad and suggesting improvements in the same to increase the

market share of the company.

In the first stage of the project, a study will be made of the existing distribution

network of hindware sanitary products, its implementation and the issues affecting its

effectiveness with the help of secondary data available at various sources such as

company reports, catalog and interaction with the sales department of the company.

After the above study, market feedback will be collected from dealers and sub-

dealers with the help of a structured questionnaire to find out the areas of concern.

The information and data so collected shall be analyzed using appropriate statistical


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tools to arrive at the conclusions of the market survey. Based on these conclusions

and the study done in the first part of the project. Suitable recommendations will be

made for improving the distribution network of the company with a view to increase

its market share.

Signature

(Student)

Signature

(Industry

Guide)

Signature

(Faculty Guide)


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