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PROJECT REPORT
ON
A STUDY ON THE PROBLEMS OF INTERNATIONAL MARKETING
OF CERAMIC SANITARY WARES WITH SPECIAL REFERENCE TO
MUTHOOT APT CERAMICS LTD.
Study of Market of BEE Star Labeled Appliances and
Buying Behavior of Consumers
Submitted by
NEERAJ DHINGRA
Reg No. 200757530
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SYMBIOSIS CENTRE FOR DISTANCE LEARNING, PUNE
ACADEMIC YEAR - 2007
Table of Contents
1. Introduction.
4
2. Objectives and Scope.
53. Limitations
. 5
4. Theoritical Perspective
5. Methodology and Procedure of Work. 6
6. Analysis of Data... 7
7. Findings, Inferences and
Recommendations. 8
8. Project
Implementation.
9
9. Conclusions
...
10. Summary of the Project
Report 10
11. Recommendations
.. 31
ANNEXURES
I) Proposal
II) References
III) List of Figures, Charts, Diagrams
IV)List of Tables
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CONTENTS
Chapter Topics Page No.
1
1.Introduction
9-13
2 2. Industrial Profile
14-18
3 3. Company Profile
3.1. History
3.2. Various Departments
3.3. Swot Analysis
3.4. Marketing Strategies.
19-26
4 4. Objectives of the study
27-39
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5 5. Scope of the study
5.1. Focus of study
5.2. Relevance of study
40-41
6 6. Research Methodology
6.1. Formulating Research
6.2 .Preparing Research Design
6.3 .Determine Sample Design
6.4. Collection of Data
42-43
7 7. Limitation of the study 44-46
8 8. Analysis and Interpretation 47-48
9 9. Suggestion & Recommendations 49-50
10 10. Findings of the study 51-55
11 11. Conclusion
12 12. Bibliography
13 13. Annexure
CHAPTER-1
NATURE
OF
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THE
STUDY
Background and aspects of the problem
Direction of Indian Exports(April - November1995)
The survey indicates the entry of two new nations in the Indian top 20 buyers' list, namely
Indonesia and Spain. Indonesia closed in as fourteenth as exports surged by 131.8% while
Spain was ranked as number eighteenth as Indian exports increased by 57.8%.
RankRank Apr-
Nov'95Country
Exports
($million)% Change
01 01 US 3613.4 13.3
02 02 Japan 1390.5 12.3
03 04 UK 1289.9 24.2
04 03 Germany 1236.2 18.6
05 05 Hong Kong 1172.7 32.1
06 06 UAE 876.8 11.5
07 07 Belgium 697.5 22.0
08 09 Russia 688.3 44.9
09 11 Bangladesh 670.7 94.2
10 08 Italy 639.8 25.4
11 10 Singapore 506.9 09.0
12 13 Netherlands 453.8 41.7
13 12 France 451.2 33.8
14 - Indonesia 344.5 131.8
15 14 Saudi Arabia 308.6 16.0
16 15 Thailand 300.3 25.8
17 18 S.Korea 246.4 24.5
18 - Spain 245.8 57.819 16 Australia 243.8 09.6
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20 17 Srilanka 237.8 10.3
The researcher has understood from preliminary research that there is a sizeable market for
ceramic sanitary ware in the International market. The Indian players are afforded a great
deal of assistance in marketing their products abroad. However, the performance of Indian
players in the export scenario is unimpressive. This study sets out to find out what exactly
are the reasons for the dismal performance on Indian players in the international market.
Purpose of the study
The volume of world merchandise exports grew by 9.5 per cent in 1997, the second
highest rate in more than two decades with the exception of 1994 when trade expanded by
10 per cent. The U.S., Germany, Japan, France and U.K. are the leading exporters in that
order. India only ranks 31st in the world with an export share of less than one percent in
world exports. It is abundantly clear that there is a great export market waiting to betapped but it goes without saying that the sailing is not easy. The performance of India has
been lackluster but is soon picking up. The purpose of the study is to find out the
performance of Muthoot APT Ceramics Ltd., an Export Oriented Unit (EOU) situated in
Cochin Export Processing Zone (CEPZ), Kakkanad, Cochin, in terms of its exports and
their first hand feel of the global market. The Plant exports Ceramic Sanitary wares and
allied products and has a tie up with Advanced Product Technology of Britain for
technology transfer.The study focuses at international trade from the viewpoint of Muthoot
APT Ceramics Ltd. The activities of the EOU can spread light on the problems faced by
the concern or the lack of it, in the global market. The results of the study can help in
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better understanding the concept of international trade and in improving the efficiency and
circumventing the problems in marketing the products. It goes without saying that some of
the problems experienced by export units are common to other industries as well.There is a
serious lack of good information regarding the exports in the sanitary ware industry. Basic
information provided in the trade yearbooks of each country lacks consistency in the
degree of detail of information provided. Therefore it is difficult to develop a clear picture
of world trade in ceramic sanitary ware and all those involved in future market planning
would surely benefit from more orderly and timely information. The following points are
considered for the study -
1. Some relevant aspects of world trade today.2. India's performances in the most important export markets.
3. The future price implications.
4. India's supply
5. Need for adequate demand stimulation program.
6. Some aspects of market accessibility.
The study would also throw light on the market influences viz., socio-economic factors,
structure of the sanitary ware market in terms of import and distribution system,
packaging, price level, Government regulations and legislation in terms of input quotas,
taxation, and safety measures. Furthermore, the study will also focus on the quality
requirements of the ceramic sanitary ware industry.
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Statement of the Hypothesis
Once the selection and definition of the problem have been accomplished, the derivation
of the hypothesis is the most important step in the research process. Etymologically
hypothesis is made up of two words, "hypo" (less than) and "thesis", which mean less than
or less certain than a thesis. It is the presumptive statement of a proposition or a reasonable
guess, based upon the available evidence, which the researcher seeks to prove through hisstudy. The hypothesis is a powerful tool in research process to achieve dependable
knowledge. It helps the researcher to relate theory to observation and observation to
theory. The null hypothesis of the present study is: The Indian exporters are not able to
match foreign technology and quality of ceramic sanitary ware available in the
international market". The existence of a large international market for ceramic sanitary
ware has been established. Therefore, the reasons for the lackluster performance of the
Indian players need to be looked into.
Rationale
The study is based on a ceramic sanitary ware exporter based in Cochin Export Processing
Zone, Kakkanad. The researcher feels that the outcome of the study will provide a positive
influence on emerging exporters as well as a refreshing study for the old timers. The study
seeks to provide an impartial and unbiased study of the ceramic industry. The study is
conducted in a professional manner using scientific tools. As the researcher is an outsider,
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it is possible that he is able to pin point certain aspects that were overlooked by those in the
industry. It is hoped that the matter researched will be of importance to the Company as
well as the industry in the form of a reference tool. The recommendations of the researcher
will also give an insight into the untapped markets.
Definition of Technical terms & Acronyms
Ceramics
Making of pots, tiles, sanitary wares etc., by shaping pieces of clay and baking them until
they are hard.
Mold
A hollow container of a particular shape into which some soft substance is poured, so that
when the substance becomes cool or hard, it takes this shape.
Sanitary fittings
Such as lavatories and bidets
Kiln
Box shaped heating apparatus for baking pots or bricks for drying wood.
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Scope of the study
The use of market research is reasonably widespread. The implications may be listed as
follows
1. It ascertains the position of a company in the ceramic sanitary ware industry.
2. It provides a birds eye-view of the ceramic sanitary ware industry as a whole.
3. The study provides an idea of the growth prospects of the sanitary ware industry,
the factors influencing it, and the trends in the industry.
4. The study mentions the factors favorable to Indian players.5. It helps in assessing and enhancing the effectiveness of marketing management.
6. It can reduce the risk involved in marketing management.
7. It offers guidance in market penetration and increasing product range.
8. It pinpoints strengths and weaknesses of the Company and the Indian ceramic
sanitary industry.
Outline of remaining chapters
Chapter 2 is titled Review of Related Literature. The chapter deals with the industrial
background of the study, and the theoretical aspects of the study. The profile of Muthoot
Apt Ceramics is also mentioned.
Chapter 3 is titled Research Design and Methodology. The problem and hypothesis is
discussed. There is a detailed description of the research design. The methodological
assumptions and limitations are stated. The chapter summary provides a gist of the matter
contained in the chapter.
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Chapter4 is titled Sources of Data. Primary data, secondary data and the sampling
procedure adapted for the study is explained in great detail. The target population, size of
sample and the type of sampling technique used is explained along with the constraints and
limitations of the sampling procedure.
Chapter 5 is titled Presentation of Tabulated Data. This chapter concerns the process of
taking completed questionnaires and preparing them foe analysis. Raw data as they are
received from the field in primary data collection are in no condition for interpretation.
Tabulated data is one step towards making this data intelligible.
Chapter 6 is titled Analysis of data and interpretation. The tabulated data is analyzed and
interpreted in this chapter. The primary data is transformed into meaningful information.The researcher is able to make conclusive findings from the analysis carried out here.
Chapter 7 is titled Results of the Study. The chapter deals with the findings of the study.
The problem researched is studied and the outcome of the study is explained in detail. The
hypothesis is tested and its acceptance or rejection is mentioned. In case the null
hypothesis is rejected, then the alternative hypothesis is accepted.
Chapter 8 is titled Summary. The chapter provides a summary of the tabulation
undertaken in chapter 5.
Chapter 9 is titled Conclusion. The chapter explains in detail the conclusions reached
after the study. It provides in a nutshell the results of the entire study undertaken.
Chapter 10 is titled Recommendations. Based on the study the researcher offers
recommendations to the Company in specific and the industry in general. These
recommendations are based on the findings of the study and may help the Company in
designing its marketing strategies.
Chapter 11 is titled Appendix. The appendix contains the blank questionnaire as well as
other relevant information. It contains additional information.
Chapter 12 is titled Bibliography. The bibliography gives details regarding the materials
researched for the study. A list of all written materials used for the study is included here.
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CHAPTER 2
REVIEW OF RELATED
LITERATURE
Industrial Background of the study
The ceramic industry has become competitive and players have understood the importance
of constant innovation and state of the art technology to stay in the race. Well-proven
machinery provided by manufacturers with long experience is preferred. The enormous
range of designs and sizes permit utmost freedom of choice for each individual scheme.
Unstable demand at home and contracting markets abroad create strong downward
pressure on unit sales prices and profits. The ceramic industry is highly sensitive to signs
of political and economic uncertainty. In 1996, most of the Building Materials Division
companies saw the dollar value of their unit sales prices decline as a result of increasing
competition in their domestic and international markets An important development has
been the establishment of marketing and distribution companies in Germany, the UK and,
most recently, the US. By maintaining close contact with consumer groups and key
distributors in the main export markets, the companies have ensured that they keep abreast
with changing demand trends. Strengthening the Customer Reach by expanding service
coverage to include all of the company's products and create brand synergy, will further
strengthen its position in the retail and distribution market.Sharp rise in revenues is
possible from successful export strategy, which seeks to increase the share of processed
materials in its Export mix. Investments Fully mechanized casting lines, defect-
minimizing robots and energy-saving kilns can improve the plant's production flexibility
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and sharply raise its international competitive edge. Installation of CAD/CAM department,
can also improve the productivity, as shown by the Turkish ceramic manufacturers The
Turkish company, EYAP-Artemas investments in 1996 was focused on improving
production quality, flexibility and speed as well as on easing bottlenecks. In 1996, the
company invested $4.5 million in modernization and expansion of its casting, buffering
and polishing processes and installed CAD/CAM, MRPII, and automatic inventory
systems. These improvements have made it one of the foremost players in the whole world
Another development in the industry is the establishment of flexible and modern
production lines that facilitate customized orders of premium products. EYAP-Vitra , a
Turkish firm has capacity to manufacture over 2 million big pieces per year, making it oneof the single largest ceramic sanitary ware plants worldwide. Continual investments in
advanced technology have sought to ensure EYAP-Vitra's international competitive edge
through higher productivity, greater flexibility and improved quality. It was the first to
adopt electrostatic glazing and to set up a fully automatic fettling and glazing line. With the
plant's new fully-mechanized casting lines producing one unit every 20 minutes as
compared to the usual 6-8 hours, its average worker productivity is roughly two times the
industry average. In addition to its large and flexible production capacity, one of EYAP-
Vitra's key strengths is its high standards of quality. EYAP-Vitra was the first Turkish
ceramic sanitary ware producer to be certified to ISO 9001 standards as well as to all the
major standards of the European Union and North American markets. In 1996, the
company received the prestigious quality certificate of the Ceramic Industry Certification
Scheme.
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Theoretical Background of the study
Product
Sanitary wares are made of ceramic materials like China clay, Ball clay, Feldspar, Quartz
etc. After casting they are coated with glazing material to give a glaze finish to the finished
products. Sanitary wares include items such as wash basins, kitchen sinks, urinals, water
closets, bath tubs, cisterns, bidets etc. According to the applications they are made in
different sizes and styles. They are also given pleasing colors to match the surroundingwhere they are fitted. Sanitary wares of exclusive designs, which incorporate water saving
systems, are the modern trend. These items find their applications in bathroom and
kitchens of houses, hotels, hospitals and public places.
Market
At present India's share in international export market is very less, although the products
have export potential. In view of the developments taking place in the industry, the market
for sanitary ware is likely to undergo a radical change in coming years. Some of the units
are going for technology up gradation and introduction of new product range. Furthermore,
India also has price advantage. The Indian FOB price of sanitary wares is much less
compared to price charged by other exporting countries. Hence it won't be difficult for
India to compete with other countries and gain 10% of the total international export
market. India is exporting 15% of its production every year.
Manufacture
Feldspar and quartz after calcinations are first ground to 20-30 mesh followed by wet
grinding to the requisite particle size in a ball mill. Wet slurry is then transferred to speed
plungers where well ground China clay, ball clay and talc in requisite proportions are
added and well dispersed. This mixture is called slip. This slip is then put into moulds
made of plaster of Paris and a thick wall like cast in the shape of the article desired is
formed inside the mould. As the absorption goes on, the thickness of cast is increased.
When the required thickness is obtained the remaining slip from the mould is taken out
into the slip container and the article cast and left in the mould for about 10-12 hours,
which becomes sufficiently stiff. After the cast wares are removed from the moulds and
allowed to dry in shades. When the cast get dried, they are bisque fried. The ceramic
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glazing composition well mixed with required colors is sprayed on the biscuited sanitary
wares, which are then fed into the tunnel kiln for gloss firing. The finished goods are then
inspected, sorted and finally packed for sale.
Plant and machinery
Tunnel kiln for first firing of sanitary wares, Shuttle kiln for refiring of sanitary wares,
Control and testing equipment,Disintegrator,Ball mill,Plunger,Agitators,Jigger and
Jolley,Magnetic filter,Jaw crusher,Chamber dryer,Glazing line,Grinding machine,De-
dusting system,Feed Hopper,Conveyors,LPG storage tanks,Kiln cars,Front end loader
Raw materials
China clay, Quartz, Feldspar, Ball clay, Zirconium opacifier, Ceramic colors and stainsUtilities and infra-structure
Land, Building, Water, LPG, Diesel oil, Electricity, Manpower
Research takes the advantage of the knowledge that has accumulated in the past as a
result of constant human endeavor. It can never be undertaken in isolation of the work that
has already been done on the problems which are directly or indirectly related to a study
proposed by a researcher. A careful review of the research journals, books, dissertations,
theses and other sources of information on the problem to be investigated is one of the
important steps in the planning of any research study. Trade between nations has been
growing rapidly. Economists have propounded some important theories to explain the
factors prompting or necessitating trade between countries. International trade may take
place due to the differences in comparative costs of production between countries, as
demonstrated by the famous classical economist, David Ricardo.
Haberler has attempted to provide a more convincing explanation in terms of the
differences in the opportunity cost of production between countries and international trade
arises from the fact that factor endowments vary between countries and international trade
arise form the fact that factor endowments vary between countries and that factor
intensities differ between commodities. Regions and nations specialize and trade with each
other for the same reasons that individuals specialize and trade. International trade is
merely a special case of inter-local or inter-regional trade. According to Alfred Marshall,
"the causes which determine the economic progress of nations belong to the study of
international trade."Haberler points out: "International division of labor and international
trade, which enable every country to specialize and to export those things that it can
produce cheaper in exchange for others that can provide at a lower cost, have been and still
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are one of the basic factors promoting economic well-being and increasing the national
income of every participating country". The global scenario that is emerging out of several
recent and emerging developments is one that will foster international business. Although
some developments hamper international business, the forces, which foster far outweigh
them. Irving Kravis has pointed out that international trade arises as a result of the
availability and non-availability factors - a nation would tend to import those commodities
which are not readily available domestically and export those whose domestic supply can
be easily expanded beyond the quantity required to satisfy the domestic demand. Export is
the lifeline of a country. India has now understood that for existence and to continue its
economic growth, it has to export in a large way. The commerce ministry as such hasidentified 34 thrust areas in which India has potentiality to become a competitive exporter.
Export thrust in these areas is expected to bring the expected growth rate in $ terms to the
targeted 25% per annum.The export thrust items identified under extreme focus areas
include agriculture, agro-chemicals, auto components, bicycles and parts, cement, drugs
and pharmaceuticals, dyes and intermediates, floriculture, footwear, fresh fruits, gold
jewelry, granites, hand tools, industrial castings and forging, tomato paste products, topical
fruit juices, pulp and concentrates, preserved mushrooms, readymade garments, rice,
software packages, systems software, Computer Aided Design/ Computer Aided
Manufacture (CAD/CAM), spices, synthetic and man made textiles and tires.Export
Processing Zones (EPZs) are industrial estates that form enclaves from the national
customs territory of a country and are usually situated near seaports or airports. The entire
production of such a zone is normally intended for exports. The Kandla Free Trade Zone
(KAFTZ), set up in 1965 is India's first free trade zone. Cochin Export Processing Zone
(CEPZ) commenced exports during the Seven Plan (1985-86).
Benefits for EPZ/EOU Units
Concessional Rent
The units set up in the EPZs will be eligible for concessional rent for lease of industrial
plots and standard design factory (SDF) buildings.
Clubbing of NFE
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Net Foreign Exchange (NFE) earned by an EOU/EPZ unit can be clubbed with the NFE of
its parent/associate company in the domestic tariff area (DTA) for the purpose of according
Export House, Trading House or Star Trading House status for the latter.
Supplies from DTA
Supplies from DTA to EOU/EPZ units will be regarded as "Deemed Exports" and will be
eligible for extra benefits.
Sub-contracting
The EOU/EPZ units may be permitted to sub-contract part of their production for job work
to units in the DTA on a case to case basis.
Private Bonded WarehousesPrivate bonded ware houses may be permitted to be setup in EPZs for stock and sale of
duty free raw-materials, components etc. to EOUs and EPZs units subject to certain
conditions.
An Evaluation of EPZ/EOUs
A number of developing countries have pinned great hopes in EPZs or EOUs as a means to
increase exports, achieve transfer of technology, inter industry linkages, employment
generation and economic development. The achievement of the objectives has been limited
in most of the countries. The MNCs have not been enthusiastic to transfer technology. It is
mostly the assembly stage of production that has been relocated to the EPZs. Further, there
has not been scope for forward linkages as the entire output is meant for exports. The
scope for backward linkages is limited because of the heavy reliance on imports for the
inputs.
Strategic Marketing
The heart of modern strategic marketing can be described as STP marketing - segmenting,
targeting and positioning. Companies are increasingly embracing target marketing. Target
marketing help sellers to identify marketing opportunities better. The sellers can develop
the right offer for each market. Target marketing is one in which the seller distinguishes
the major market segments, targets one or more of these segments and develops products
and marketing programs tailored to each selected segments.
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Profile of the organization
MUTHOOT APT CERAMICS LTD. (MACL)
" Molded for supremacy in world markets, fired by international standards ofexcellence"
Muthoot APT Ceramics Ltd. (MACL) is a 100% Export Oriented Unit manufacturing
designer Vitreous China Sanitary ware. MACL is promoted by the
Muthoot Group in technical and financial collaboration with Advanced Project
Technology of U.K. The Registered Office is situated at Muthoot Towers, M.G.Road - 682
035, Kochi, Kerala and the factory admeasuring 11429 square meters is located at the
Cochin Export Processing Zone (CEPZ), Kakkanad - 682 030, Kochi, Kerala. APT
limited, the technical as well as financial collaborators of MACL is essentially a ceramic
consulting engineering company belonging to the Newton Hall group. APT has the rich
experience drawn from Newton Hall group's pool of executives who have been involved in
the design, construction and running of numerous ceramic factories throughout the world.
Products
MACL manufactures middle to top of the range designer sanitary ware conforming to
European and American standards. MACL has the most modern equipment from U.K and
Italy The initial product range shall comprise of three bathroom suites consisting of seven
pieces each as detailed here under.MACL has a highly skilled expatriate management team
to support the company's objective to produce Vitreous China Sanitary ware of the highest
quality at the lowest cost. Process Quality International is guiding it through the ISO
certification. Certification will be carried out by C.I.C.S a renowned certification body
within the European Ceramic Industry. Our commitment to Quality and Customer Care is
our driving force. MACL manufactures middle to top of the range designer sanitary ware
conforming to European and American standards. MACL has the most modern equipment
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from U.K and Italy. The plant can supply the base range of colors and any specific color
either decorated or on decorated in small numbers.
MACL's commitment to quality and customer care
1. Fully equipped laboratory for Quality Control, Research and Development
2. The Ceramic Technology Department vets all suppliers and only those who qualify
become approved suppliers. Raw materials are stringently checked using the latest
technology in the Ceramic industry.
3. Color control is verified by sophisticated instrumentation to ensure that the
customer does not suffer mismatches
4. The fired product is subjected to stringent testing to maintain the highest standardsof serviceability.
5. Every piece of vitreous china sanitary ware is hand inspected and only then
released for retail
SUMMARY
The chapter starts with a detailed look into the industrial background of the study. The
theoretical background of the study serves to shed light on the nature of the study.
Theoretical aspects are discussed in great detail. The profile of the organization gives an in
depth view of the Muthoot Group of companies in general and Muthoot APT Ceramics in
particular. The origin of the organization, its growth and development, present status and
future outlook are mentioned.
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CHAPTER - 3
RESEARCH DESIGN
AND
METHODOLOGY
CHAPTER OVERVIEW
This chapter will start with the restatement of the problems and hypothesis. The problems
will be spelled out and the need for this kind of study will be discussed. The research
design will include planning of a market research project, the resources required, methods
used for field work program, questionnaire design and type of questionnaire used. Finally
we will discuss the assumptions that are made along with reasons for making them.
Moreover, we will ponder over the limitations that go along with the study.
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RESTATEMENT OF THE PROBLEM AND HYPOTHESIS
The size of the global market for ceramic sanitary wares is indeed large. The global market
for ceramic sanitary wares is large, however Indian presence is limited. There is scope for
increasing Indian presence and the reasons for the dismal performance will be looked into.
Once the selection and definition of the problem have been accomplished, the derivation of
the hypothesis is the most important step in the research process. The hypothesis is a
powerful tool in research process to achieve dependable knowledge. It helps the researcher
to relate theory to observation and observation to theory. The null hypothesis of the present
study is," The Indian exporters are not able to match foreign technology and quality of
ceramic sanitary wares available in the international market ".
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DESCRIPTION OF RESEARCH DESIGN
PLANNING A MARKET RESEARCH PROJECT
In the present context the planning of a market research project by considering the need
for market research for business decision making will be discussed.
MARKET RESEARCH AND DECISION MAKING
Market research is the process of collection, analysis and interpretation of marketing
information. Decision-making is an important aspect of business management. While some
of the decisions have short-term consequences, others affect the long-term prospects of the
business. Whatever the nature of decisions taken, a common thread is the need for
information. In carrying out marketing analysis, planning, implementation, and control,marketing managers need information at almost every turn. They need information about
customers, competitors, dealers and other forces in the market place. This is where market
research has a great role to play. Marketing research specifies the information needed to
address marketing issues, designs the method for collecting information, manages and
implements the data-collection process, analyzes the results, and communicates the
findings and their implications.
Some common decision areas where market research can help are as follows
Opportunities
1. What product should we offer?
2. How should we formulate the product?
3. How much should we charge?
4. Which group of consumers are we going to supply?
5. How will we get the product to our customers?
6. How will we persuade the consumers to buy our products rather than our
competitors'?
Evaluation
1. Can we increase sales of our product?
2. Can we charge more for our product?
3. Can we supply to a different group of consumers?
4. Should we change the way we get the product to customers?
5. Should we change the way the product is offered?
Problem Solving
1. How can we increase the profit made from a product?
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2. How can we reverse a trend of falling sales?
3. How can we increase our customers' satisfaction with our products and service?
Each decision area involves making choices between alternatives. The chances of making
the best choice are increased by having reliable information at hand.
Types of information commonly provided through market research
The Market
1. The total market size
2. Who the customers are? [their profile]
3. Customer needs and requirements.
4. Market segmentation by area, customer grouping, needs or requirements.5. Trends - whether it is a growing or declining market?
The Market's Structure
1. The major players - domestic manufacturers, importers.
2. Branding
3. Distribution networks in the market
4. Market share of major players/brands
5. Major distributors and retailers
6. Trends - who is growing, declining and why?
The suppliers & Brands
1. How the suppliers operate in the market?
2. Why they are successful [or not]
3. Customers attitudes to (image of) suppliers and brands
The Product
1. Types of products within the market
2. How the products are differentiated
3. Relationship of products to market segmentation
4. Level of product innovation
5. Product Life Cycle - how long they last?
6. How the product meets customers' needs?
7. Customer's satisfaction with products
8. The need to develop/change the product
Pricing
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1. Current pricing structures
2. Past trends
3. Customers' price expectations for a product
4. Anticipated changes in purchasing following price changes
Sales Method
1. Customers' attitude to the methods used
2. Evaluation of different methods
3. Relating market potential to sales organization
4. Sales organization and market structure
Advertising1. Evaluation of advertising campaigns
2. Audiences reached by advertising media
3. Testing new advertising before / after use.
4. Relationship between advertising and product / brand perceptions
This section shows a wide range of information required to address a problem. However
the process of obtaining information is to help you to arrive at a decision and not to serve
as an alternative to decision making.
Description of Research Design
Fundamental to the success of any formal marketing research project is sound research
design. A good research design has the following characteristic viz., problem definition,
specific methods of data collection and analysis of, time required for research project and
the estimate of expenses to be incurred. A research design is purely and simply the frame
work or plan for a study that guides the collection and analysis of data. It is a blue print
that is followed in completing a study.
1. The study must be relevant to the problem.
2. The study must employ economical procedures.
Three important points about research design are
The design of investigation should stem from the problem.
Whether the designs are productive in a given problem setting depends on how
imaginatively they are applied. An understanding of the basic design is needed so that they
can be modified to suit specific purpose.
The three basic types of research design viz.
1. exploratory
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2. descriptive
3. casual or experimental
Can be looked at as stages in a continuous process. The following figure shows their inter
relationships. Explorative or formulative studies are often seen as the initial step in the
continuous research process. It is shown here that these three designs are not mutually
exclusive and a combination of all the three used in the successful completion of a
marketing research project. We start with the exploratory and go to casual through the
descriptive research. Alternatively we can select any of these research designs and take the
help of the other two designs if the situation or problem requires.
EXPLORATORY RESEARCHAll marketing research projects must start with exploratory research. This is a preliminary
phase and is absolutely essential in order to obtain a proper definition of problem at hand.
The major emphasis is on the discovery of ideas and insights. The exploratory research is
particularly helpful in breaking broad and vague problem into smaller, more precise sub
problem statements, hopefully in the form of specific hypothesis.
IMPORTANCE OF EXPLORATORY RESEARCH DESIGN
An exploratory study is used for the following purposes
1. Formulating a problem for more precise investigation or for developing hypothesis.
2. Establishing priorities for further research
3. Gathering information about the practical problem for carrying out research on
particular conjectural statements.
Flexibility and informality characterize exploratory research. Explanatory studies rarely
use detailed questionnaires. Ingenuity, judgment and good luck play a part in such studies.
Not withstanding the flexibility the research experience has demonstrated that
1. literature surveys
2. experience surveys
3. analysis of selected cases
Are particularly productive in exploratory research.
DESCRIPTIVE RESEARCH
We should also recognize the existence of many studies whose results are descriptive, not
conclusive. Most governmental and academic marketing studies probably fall within this
category. For, example a professor or doctoral student makes a study of "Food Brokers:
Their nature and functions", which is a research but descriptive in nature.
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Descriptive studies investigate phenomena in their natural setting. Their purpose is both
immediate and long range. They constitute a primitive type of research and do not aspire to
develop an organized body of scientific laws. Descriptive research differs from other
research in purpose and scope.
STEPS IN DESCRIPTIVE RESEARCH
The process of descriptive studies is not different from other forms of research. Since such
studies, describe and interpret what conditions or relationships exist at present, the
researcher may adopt the following steps
Selection of the Problem
A researcher may be concerned with conditions or relationships that exist, points of viewor attitudes that are held, effects that are being felt or trends that are developing, and may
select the problem accordingly from the area or field in which he is interested.
Statement and Definition of the Problem
The researcher must state the problem. The statement must identify the variables involved
in the study. It should specify clearly whether the study is merely seeking to determine the
present status of these variables or whether it will also explore relationships between the
variables.
Identification of Data
After stating and defining the problem, the next step for the researcher is to list the data to
be collected for the study. He has to specify whether the data are of qualitative or
quantitative nature and whether the data will be collected in the form of counts, test scores,
responses to questionnaires, interviews and so on.
Selection or Development of Tools
The nature of the data to be collected helps the researcher to select the appropriate tools for
the study. Questionnaires, interviews, psychological tests, rating scales, schedules and
attitude scales are the most frequently used tools for descriptive research. If the researcher
uses ready-made tools, he should satisfy himself about their reliability, validity and
suitability for sample chosen for the study.
Selection of the sample
The researcher must select the sample about which he wishes to seek information using
appropriate sampling techniques. The sample selected should adequately represent the
population.
Collection of Data
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The researcher should specify the practical schedule for gathering the data from the sample
selected for the study with the help of appropriate tools.
Analysis and interpretation of Data
The data collected is quantified in the form of counts, test scores, responses to
questionnaires, etc. These are analyzed and interpreted with the help of appropriate
parametric or non-parametric statistical tests.
Writing of the Research Report
It is the last stage in the descriptive research as in any other form of research. The
researcher should exercise extreme caution in generalizing conclusions and reporting them
with all the limitations of the study.
A RESEARCH PLAN
The second step of the marketing research process calls for determining the information
needed, and developing a plan for gathering it efficiently. The elements of a research plan
are as follows
1. Analysis of the requirement for research
1. Give some context - the business's involvement in the subject of the research.
2. Briefly describe any past events that led unto the present situation.
3. State what the present situation is and how this fits in with wider business goals.
4. Outline business options that are available.
5. Indicate what information, relevant to the requirement, is available and what
confidence can be put on it.
The purpose of this research is to delve deep into the problems in the International
marketing of ceramic sanitary wares manufactured by MACL.
2. Stating the research objective
A statement of research objective should describe what would be achieved by carrying out
the research. These objectives should meet the business requirements covered in the
analysis stage. Our research objective is to study the problems in the international
marketing of ceramic sanitary wares manufactured by Muthoot APT Ceramics Ltd.,
Cochin.
3. Information needed to meet the objective
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It is important to distinguish between the information needed to meet the objective and the
objective itself. The objective is a statement of an intention to provide data relevant to a
marketing problem, but in itself it does not indicate what the research must find out. The
research project is constrained by both time and costs, and it is but natural that some
compromises will have to be made in the depth and breadth of the information we propose
to cover.
4. Research methods
This element of the plan describes how the work will be carried out. The sources of
research information are conveniently classified as either primary or secondary. Anunderstanding of what can be obtained through desk research, how to plan fieldwork, the
role of questionnaires and how to use them in interviewing is all needed in before research
methods of a plan can be written. Secondary information is the one that has already been
collected usually for some purpose quite unconnected with our requirement. Primary
research on the other hand is needed to collect factual information to refine the data that is
uncertain or too broad. Quantitative data is concerned with understanding the subjects of
the research from within; it is very much concerned with attitudes and motivations.
Resources required
Market research in most respects is labor intensive and outside data analysis (especially
processing of questionnaires, which are beyond the impact of information technology.
Time factor is the most important element for any market research project.
1. Desk Research
Generally two man-days spent in a library supplemented by telephone 'overview'
interviews would produce the data.
2. Telephone interviews
The number of telephone interviews that can be carried out in a day is often more
dependent on the time needed to locate appropriate respondents than on the length of the
interview itself. Lengthy questionnaires are costly to be administered on telephone
3. Face-to-face interviews
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Considerable time is spent on travelling. If the respondents are scattered it may prove too
costly. If the respondents are geographically concentrated and easily accessible, then this
type of interviewing is beneficial.
4. Postal surveys
They can be employed when the responses are not subject to time constraints. Since time is
a key factor in market research projects, the same may not prove beneficial here.
Non-interviewing methods
1. Postal survey
2. Observation
Face to face interviewing involves a meeting between the person collecting the data andthe person giving it for consumer research. Our area of interest in face to face interviews is
business to business research, which are mostly carried out in the respondent's work place.
For quality information, in-depth information is needed. In business to business research
the respondent's view reflects the view of the organization. Telephone interviews can be
carried out in both consumer and business to business research; either as a stand-alone
method or in conjunction with visits or a postal survey. Combining a postal survey with
telephone interviews can overcome some limitations of each individual method.
Observation is another non-interviewing fieldwork method.
Selection of Appropriate Fieldwork Method
We now consider when and why to use one fieldwork method rather than another. A
number of factors are relevant and in a study it may be necessary to make a compromise to
resolve conflicting requirements.
1. Information
Nature of information to be sought is the most important factor to be considered.
Quantitative data usually requires the collection of standardized data from a reliable and
representative sample. Either face to face or telephonic interviews can be considered.
Attitude measurement using scales is a type of quantitative data, often based on a large
number of interviews. For collecting qualitative data, in-depth interviews or group
discussions are advisable. However it is worth considering other methods of data
collection, especially when both qualitative and quantitative data are to be collected from
the same respondent. For qualitative data, open-ended questions are a comfortable
alternative.
2. Respondents
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The nature and location of respondents may affect selection of the fieldwork method. For
respondent group with low level of literacy, postal surveys cannot be used. Street
interviewing is not advisable for elderly or working class people.
3. Interviewing Requirements
Special requirements may favor or rule out a particular field work approach. Telephonic
interview is not feasible when something has to be shown to the respondents. Likewise
when a product has to be shown or tested, then a hall is required unless a home placement
is more appropriate. In our study, the Managing Director of MACL was interviewed face
to face at his office.
4. ResourcesThis is concerned with practical constraints and they may result in compromises on either
method or fieldwork used or on sampling procedure. The ideal research method may not be
feasible owing to the affordability criterion.
Strengths and Weaknesses of the three contact methods
PERSONAL MAIL TELEPHONE
1. Flexibility Excellent/ Poor/ Good
2. Quantity of data that can be collected Good/ Fair/ Excellent
3. Control of interviewer Excellent/ Fair/ Poor
4. Control of sample Fair/ Excellent/ Fair
5. Speed of data collection Poor/ Excellent/ Good
6. Response rate Poor/ Good
7. Cost Good/ Fair /Poor
CHOOSING THE RESPONDENT
In case of business research, who should be interviewed has to be given much thought. The
respondents must be in a position to give factual data to arrive at the prevailing
international market situations. The respondents must have first hand knowledge of the
ceramic sanitary ware markets and the global scenario.
QUESTIONNAIRE DESIGN
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Preparing questionnaires or observational forms is one significant step in research that may
be done properly by watching for the many pitfalls and following an orderly procedure.
The neophyte in this work should be warned, though, that no questionnaire has been
perfect and that an adequate one requires painstaking effort.
A CLASSIFICATION OF QUESTIONNAIRES
Type of
Questionnaire
Structured
Semi-structured
Unstructured
Areas of use of Questionnaire
Used in large interview
programs
(Over 50 interviews) where it
is possible to anticipate closely
the responses.
Used where there is need to
accommodate widely different
responses and where the
responses cannot be
anticipated.
Used for in-depth interviewing
of consumers both one to one
and groups. Allows probing
and searching where a skilled
researcher is not fully sure of
the responses before the
interviews.
Administration of the
Questionnaire
Street interviews,
Home interviews,
Telephone,
Self-completion,
Face to face
Face to face,
Telephone
Home interviews,
Group discussions,
Industrial visit
Interviews,
Telephonic interviews
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Types of Questions
1. CLOSED-END QUESTIONS
Name Description
Dichotomous
A question offering two answer choices
Multiple choice
A question offering three or more answer choices
Lickert Scale
A statement with which the respondent shows the amount of agreement/disagreement
Semantic
A scale is inscribed between two bipolar words, Differential and the respondent selects the
point that represents the direction and intensity of his or her feelings.
2. OPEN- END QUESTIONS
Name Description
Completely Unstructured
A question that a respondent can answer in an almost unlimited number of ways.
Sentence completion
Incomplete sentences are presented and the Respondents are asked to complete it.
Story completion
Incomplete story is presented and the Respondent has to complete it.
Thematic ApperceptionA picture is presented and respondents are asked Test (TAT) to make up a story on what
they think is happening or may happen.
GENERAL PRINCIPLES OF QUESTIONNAIRE DESIGN
1. Keeping the objectives in mind
Every survey has a purpose, which is defined on paper, and the objectives spelt out. The
first step in questionnaire design is, therefore, to write down the objectives of the survey
and then list the key subject areas where information is required. Then assign an order ofpriority to each subject.
2. Drafting the Questions
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Ask the following questions
1. Will the question be understood in the way that I intended?
2. How many different ways could this question be interpreted?
3. Is this question likely to annoy or offend?
4. Is there a better way of asking the questions?
3. Pitfalls to avoid in the designing of Questionnaire
Avoid lengthy questionnaires. Make it short and sweet. Nobody likes a time
consuming endeavor and the responses may suffer.
Avoid long or complicated questions. Make the language simple and easy to
understand. Incorporate only one idea or instruction per questionnaire.Avoid unreasonable questions. The respondent should not be forced into guesswork.
Avoid 'loaded' questions. Loaded questions are biased and may elicit inaccurate
responses.
4. Fine tuning the questionnaire
Once the draft copy is prepared, revise it for corrections keeping in mind the features of a
good questionnaire and by steering clear of the pitfalls in questionnaire design. The order
of questions is adjusted to enhance the flow and ambiguous questions are removed. A test
or dummy run of the questionnaire is advisable and it can be timed to arrive at the average
time required to finish the questionnaire. Fine-tuning of the questionnaire will flush out the
weaknesses in the questionnaire in terms of the meaning of questions or length of
questionnaire or its flow.
DESCRIPTION OF RESEARCH DESIGN OF THIS STUDY
The research design is the major blue print according to which the result is to be
conducted. The research design specifies the methods of data collection and data analysis.
In the preliminary phase exploratory research was conducted to obtain a proper definition
of the problem at hand. It helped in formulating the hypothesis for further research. The
study also makes use of descriptive research in order to analyze the problem and come up
with solutions. Sources of data included both internal as well as external. Primary data was
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collected using questionnaires and by mailing them to the employees of the organization
on their mailing ids. Secondary data was collected from magazines, journals, textbooks,
newspapers, Internet web sites etc Non probability sampling was used. The researcher has
used judgment sampling to choose the elements of the sample. The sample size is 25% of
the population.
METHODOLOGICAL ASSUMPTIONS AND LIMITATIONS
ASSUMPTIONS
Data was collected from the customers by using both the questionnaire method and the
observation method It is hoped that the sample size portrays the true picture.The
questionnaire and interview methods were employed to gather data.LIMITATIONS
Due to time and money constraints the sample size is limited and probably not
enough.Due to the large International market and dispersed market players, the attention
devoted to each player may not be sufficient.The data gathered may be biased in favor of
the respondents.
Summary
This chapter starts with the chapter overview wherein a briefing of the entire chapter is
made. The problems and hypothesis is restated. The problems are spelt out and the need for
the study is discussed. The research design is thoroughly explained. It includes a plan of a
market research project, the resources required, methods used for fieldwork program,
questionnaire design and type of questionnaire used. Finally the assumptions that are made
along with reasons for making them are mentioned. The limitations that go along with the
study are listed.
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CHAPTER - 4
SOURCES
OF
DATA
PRIMARY DATA
Primary data can be expressed in simple terms as information collected for the specific
purpose at hand. Good decisions require good data. Just as researchers must carefully
evaluate the quality of secondary information they obtain, they must also take great care in
collecting primary data in order to gather relevant, accurate, current, and unbiased
information.
Planning Primary
RESEARCH CONTACT SAMPLING RESEARCH
Data Approaches
APPROACHES METHODS PLAN INSTRUMENTS
Observation, Mail Sampling unit Questionnaire
Survey, Telephone, Sample size, Mechanical instruments
Experiment, Personal Sampling procedure
Interview Planning
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Having decided on the size of sample required and the method of data collection to be
used, the interview schedule can be ascertained. The quality of market research greatly
depends on the questions asked and the responses elicited. The following points may be
noted:
1. Be pleasant.
2. Assure the respondent of the genuineness of the research.
3. Don't beat about the bush.
4. Explain what is required of the respondent.
5. Adopt a positive approach.
6. First impression is the best impression; therefore the first few minutes areparamount for the success of the interview.
7. Ensure the accuracy of responses obtained.
8. Stick to the prepared questionnaire.
9. Respect valid objections.
The questionnaire designed for collection of primary data elicits responses on the
following
1. Pricing mechanism adopted
2. Specific Markets for the products
3. Market strengths and weaknesses
4. Market share
5. Product range
6. Brands
7. Channels of distribution
8. Promotional aspects
9. Competitors
10. Government policies/regulations
SECONDARY DATA
Secondary data consist of information that already exists somewhere, having been
collected for another purpose. Secondary data may be described as those data that have
been compiled by some agency other than the user. When the needed data are available
from secondary sources, either within or outside the organization that can be a fine
economy. Sources of existing data should be practically exhausted before seeking original
data.
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Uses of Secondary Data
1. A prerequisite to the conduct of marketing research is an adequate understanding of
the problem situation. This understanding typically is based to a large extent on
secondary data.
2. Further use of secondary data often is in exploratory search for hypothetical
solutions to the problem, suggested or inspired by others' publications and data.
3. In carrying out conclusive research to verify the expected effect of hypotheses
under consideration, several uses may be made of secondary data. One is
examining the methods employed in studies of similar nature for guidance in a
project design to gather primary data.4. Secondary data are essential in planning the sample from which primary
information is to be obtained. They may be used to describe the target population
that is to be sampled, as parameters and guides in the actual sample selection
process, and as bases for validating the obtained sample.
Sources of Secondary Data
1. Internal sources
Internal sources include company profit and loss statements, balance sheets, sales figures,
sales call reports, invoices, inventory records, and prior research reports.
2. Government publications
Various press releases and Government Gazettes provide information of secondary nature.
3. Periodicals and books
Various export magazines, business publications like Business week e.t.c, are a store house
of information.
4. Commercial Data
There are numerous commercial houses selling data to subscribers. The secondary data for
this study was obtained from Business magazines, Export journals and other sanitary wear
literature. The sales performance of a company is partly due to its marketing efforts in a
competitive environment and partly due to the result of trends within the market. Plotting a
Company's sales over time may give an idea of the shape and movement of the market.
Every company should make an effort to track its performance against the size of the
market and in doing so plot its market share. Changes in the market shares are signal for
action. An increase in market share may mean that a promotional campaign is working, the
competitor is on a decline or product is priced too low. A decline in market share may
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mean that a product has been usurped by the competition that competitors are more
aggressive in their marketing, distribution channel is too poor or prizes are too high. In any
case, plotting the Company's sales against market should raise questions and it may prompt
an investigation. Thus your own Company as a source of information is very important.
COMPARISON OF PRIMARY AND SECONDARY DATA COLLECTION
DATA COLLECTION
In a broader sense we can say that two types of data are available to a researcher. These are
1. Primary data
2. Secondary data1. Primary data
Primary data is obtained when a particular problem at hand is investigated by the
researcher employing mail, questionnaire, telephone surveys, personal interviews,
observations and experiments.
Merits of using primary data:
1 The amount of information procured on each aspect is larger.
2. As there is personal interaction between interviewer and respondent, the data obtained
are more reliable.
3. The result can be projected to the relevant universe with a greater degree of accuracy
Limitations of using primary data
1. The cost involved is relatively higher.
2. The respondents may refuse to co-operate with the investigator
3. Bias may occur when the sample chosen to be surveyed is not really representative of
the population
2. Secondary data
Secondary data on the other hand include those data which are collected for some earlier
research work and are applicable or usable in the study the researcher has presently
undertaken.
Merits of secondary data
1. Secondary data is unbiased. It is in no way affected by the objectivity of the
researcher.
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2. The secondary data obtained for research purposes are more economical than
primary data.
Limitations of secondary data
1. Finding data to suit the specific project is cumbersome.
2. It is tiresome to find data of known accuracy
Selecting a survey technique
The seven major factors involved in selecting a survey technique are
1. Cost of collecting the data
2. Speed of getting desired response
3. Accuracy of the data4. Amount of data gathered
5. Response rate
6. Flexibility of the technique
7. Degree to which sample represents the population
SAMPLING PROCEDURE
It would be impracticable, if not impossible, to test, to interview or observe each unit of the
population under controlled conditions in order to arrive at principles having universal
validity. Some populations are so large that their study would be expensive in terms of
time, money, effort, and manpower. Sampling is the process by which a relatively small
number of individuals or measures of individuals, objects, or events is selected and
analyzed in order to find out something about the entire population from which it was
selected. The representative proportion of the population is called a sample. To obtain a
representative sample, the researcher selects each unit in a specified way under controlled
conditions. Usually four steps are involved in the process
1. Defining the population
2. Listing the population
3. Selecting a representative sample
4. Obtaining an adequate sample
Generally larger the sample, the greater the accuracy, provided it is selected in an
appropriate way. Diminishing returns apply, however, and the increased accuracy from
additional interviewing may be very small and not worth paying for. The ideal sample is
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generally drawn randomly. In fact, pure random sampling is very rarely used. This applies
to this study also, because cooperation from the respondent's part is essential. The target
population or universe in this study is made up of all the ceramic sanitary ware
manufacturers who engage in exports. The entire population consists of about 20 known
ceramic sanitary ware exporters. The number of respondents included in this study is 5,
which amounts to 25% of the population. The researcher has used Non-probability method
of sampling. Judgment sampling is used to purposefully select the specific members of the
sample in a random method. The researcher according to his judgment has chosen the
members of the sample that would constitute a proper cross section representing the
parameters of pertinence to the research.A listing of every element in the population or universe would constitute a perfect
sampling frame. In reality, though, most sampling frames are found to be far from perfect,
owing to omissions, incomplete data, and outdated information. The sampling techniques
used in this study may also suffer from any of the above mentioned defects. Since, it is
practically impossible for a smaller segment of a population to be exactly representative of
the population, some degree ofsampling errorwill be present whenever we select a
sample. This error is the result of chance. Non-sampling error is everything else besides
sampling error that may inject inaccuracies and bias into the results of a study. It goes
without saying that the study may have non-sampling errors but every step has been taken
to minimize non-sampling errors.
CHAPTER - 5
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PRESENTATION
OF
TABULATED DATA
Classification of Data
Classification is arranging the data according to points of similarities and dissimilarities.
The common types of classification are quantitative, geographical and chronological. The
objectives are
1. To prepare data in to homogeneous groups.
2. To prepare data to be presented in tabular form
3. To condense the mass of data in such a way that its salient features are highlighted.
4. To facilitate comparisons between variables
Data are classified into primary and secondary. Primary data is collected for meeting the
specific objectives of research study. Primary data is collected for meeting the specific
objectives of research study. The primary data is mainly collected by using questionnaires.
Secondly data is defined as data collected earlier for a purpose other than one currently
being pursued. Data which is available prior to the commencement of a research study is
secondary data. The data classified here is primary data collected from sources.
TABULATION
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Factors influencing buying decision
FACTORS No. of respondents
Price
2
Shape
2
Others
1
Price 40%, shape 40%, and other factors 20%
Table 5A
Countries to which exports have failed
Serial No. Name of the country
1.
South Africa
2.
China
3.
Namibia
Table 5B
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Reasons for failure of exports to these countries
S.No Reasons No of respondents
1.
Low prices 2
2. Low demand for
quality products
2
3.
Others
1
Table 5A1
Promotional Inputs
S. NO Promotional Inputs
1.
Product brochures
2.
Product leaflets
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3.
Floppy disks
4.
Internet Web sites and home pages
Table5B1
Price mechanism adopted for the international market
S.No Price mechanism No. of respondents
1. Uniform prices pegged to
the U.S.$
0
2. Different prices for
different markets
5
Table 5C
Whether marketing research is conducted on an ongoing basis?
Query result No of respondents
Yes, marketing research is conducted on
an ongoing basis to identify changing
customer preference
5
No, marketing research is not conducted
on an ongoing basis to identify changing
customer preference
0
Table 5D
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Common problems faced by sanitary ware manufacturers
S.No Common Problems
1.
Resistance to Indian products
2.
Freight charges
3.
Breakage in transit
4.
Rapid changes in design and
5.
High Research and development costs
Table 5C1
CHAPTER - 6
ANALYSIS
AND
INTERPRETATION
THE DATA
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Analysis and interpretation of data
Table 5A Factors influencing buying decision
Out of the 5 respondents, 2 have agreed on the price of the products and 2 on the shape of
the products and 1 has mentioned other factors. From the responses collected it is evident
that price and shape of the sanitary fittings are the most important factors influencing
buying decisions.
Table 5B Countries to which exports have failed
From the responses received the three countries to where exports have failed are South
Africa, China and Namibia. The reasons given for this are that the demand for luxury itemsis low and the price of the sanitary wares in the domestic markets are too low and Indian
manufacturers do not find it feasible to export quality products at that price
Table 5C Price mechanism adopted by Indian manufacturers for the Export market
All 5 respondents price their products depending on the markets. None of them have
pegged their pricing mechanism on the dollar. The importance of flexible pricing is evident
from this. Differentiated pricing policies for different markets are surely better than
pegging prices to the dollar as the benefits far outweigh the disadvantages.
Table 5D whether the respondents carry out Marketing Research at regular interval
All the 5 respondents have agreed that they carry out marketing research at regular
intervals to identify changing customer perception. Constant change in strategies according
to the inputs received from the market research enables to fight the competition better.
Table 5A1 Reasons for failure of export .to South Africa, China and Namibia.
The reasons for failure in exports to South Africa, China and Namibia can be attributed
mainly to the following
1. Low prices
2. Low demand for quality products
Table 5B1 various promotional inputs used by the exporting companies
According to the responses received the promotional inputs of the various ceramic sanitary
ware-exporting firms include the following
1. Product brochures
2. Product leaflets
3. Floppy disks and
4. Internet Web sites and home pages.
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Table 5C1 Problems faced by the ceramic sanitary ware manufacturing companies
who export
There are a few common problems faced by the companies engaged in the manufacture
and export of Indian ceramic sanitary wares. Some of the prominent ones include the
following
1. Resistance to Indian products
2. Freight charges
3. Breakage in transit
4. Rapid changes in design and
5. High Research and development costs
CHAPTER - 7
RESULTS
OF
THE STUDY
The Indian ceramic sanitary ware industry has a number of players who export their
merchandise to the global market place. It is true that the Indian share of the global market
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is limited and the market share negligible. However, the ceramic sanitary ware produced in
India, especially the merchandise for exports are of good quality and conform to the BIS
standards and other International standards. The hypothesis," The Indian exporters are not
able to match foreign technology and quality of ceramic sanitary ware available in the
international market", is the null hypothesis of the present study. The study has revealed
that the alternate hypothesis is true. Therefore, the null hypothesis has been rejected.
CHAPTER - 8
SUMMARY
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Table 5A Factors influencing buying decision
Out of the 5 respondents, 2 have agreed on the price of the products and 2 on the shape of
the products and 1 has mentioned other factors. From the responses collected it is evident
that price and shape of the sanitary fittings are the most important factors influencing
buying decisions.
Table 5B Countries to which exports have failed
From the responses received the three countries to where exports have failed are SouthAfrica, China and Namibia. The reasons given for this are that the demand for luxury items
is low and the price of the sanitary wares in the domestic markets are too low and Indian
manufacturers do not find it feasible to export quality products at that price.
Table 5C Price mechanism adopted by Indian manufacturers for the Export market
All 5 respondents price their products depending on the markets. None of them have
pegged their pricing mechanism on the dollar. The importance of flexible pricing is evident
from this. Differentiated pricing policies for different markets are surely better than
pegging prices to the dollar as the benefits far outweigh the disadvantages.
Table 5D Whether the respondents carry out Marketing Research at regular intervals?
All the 5 respondents have agreed that they carry out marketing research at regular
intervals to identify changing customer perception. Constant change in strategies according
to the inputs received from the market research enables to fight the competition better.
Table 5A1 Reasons for failure of export to South Africa, China and Namibia.
The reasons for failure in exports to South Africa, China and Namibia can be attributed
mainly to the following
1. Low prices
2. Low demand for quality products
Table 5B1 various promotional inputs used by the exporting companies
According to the responses received the promotional inputs of the various ceramic sanitary
ware-exporting firms include the following
1. Product brochures
2. Product leaflets
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3. Floppy disks and
4. Internet Web sites and home pages.
Table 5C1 Problems faced by the ceramic sanitary ware manufacturing companies
who export
There are a few common problems faced by the companies engaged in the manufacture
and export of Indian ceramic sanitary wares. Some of the prominent ones include the
following
1. Resistance to Indian products
2. Freight charges
3. Breakage in transit4. Rapid changes in design and
5. High Research and development costs
6. Different standards to conform to in different countries or regions
CHAPTER - 9
CONCLUSIONS
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The study has revealed that
1. The Indian ceramic sanitary wares produced for export are not inferior to that of
those produced by international players.
2. The quality standards of Indian export merchandise are high.
3. The Indian Government offers encouragement to export firms on continuous basis
to boost exports.
4. There is a large market for ceramic sanitary wares
5. The Indian ceramic industry has good growth prospects.
6. As there is great scope for growth, the ceramic industry can accommodate manymore players. This can be explored and exploited by interested entrepreneurs.
CHAPTER - 10
RECOMMENDATIONS
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Recommendations
With the proper understanding of goals, policies and actions of countries globally, the
exporters have to develop a culture of devising their own specific goals, strategies andpolicies. India, as a country, may have to meet the cost of getting into global strategic
alliances and market chains, achieving the necessary market share, for which companies
must grow. Thereby, the government can better equip the exporters to deal with the
international competition.
Marketing Strategies
Packaging
Packaging plays a great role in product safety but above all, good packaging creates instant
consumer recognition of the company or brand. Packaging also gives the first impression
of the product to the customer. A well-packaged item is always associated with a good
manufacturer. After selecting and introducing a package design, the company should check
the packaging concept in the face of advances in technology and change in consumer
preferences.
Overseas Market Surveys
The tastes and preferences of the consumers are bound to changes. In keeping with this
notion, MACL should not produce standardized products but indulge in innovative
products.
To ascertain the needs of the customers, overseas market surveys are to be conducted at
regular intervals through efficient agencies.
Tailor made products
The need for tailor made products is assuming significance in the present world market
scenario. MACL should be in a position to tap this market by offering products tailor made
to the needs of the customer, thereby enhancing the prestige of the company and tapping a
fast growing market.
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Strategic alliances
Better market access is possible by establishing strategic alliances. The strength of
distributionis crucial in deepening and widening market penetration. Therefore instead of
building a distribution channel and logistics, using up a developed one through alliance
will be more appropriate.
Image Building
The image building exercise is to be viewed as a process. The international market does
not have a favorable impression of most Indian goods. An image building exercise will go
a great way in promoting the standards and quality of Indian products in internationalmarket. The next step would be to tackle the problem of "facelessness" of Indian products.
Finally, the Indian manufacturers will be in a position to place the "made in India" stamp
with pride instead of having a faceless presence in the world market.
Advertising
Effective print advertisements can be used in trade journals, magazines e.t.c., to instill the
presence of Indian brand sanitary ware in the market. The quality of products and their
research and development can be highlighted to evoke positive influences on the buyers.
Niche marketing
A carefully formulated strategy of niche marketing would give a tremendous boost to the
marketing of Indian products and Indian Brand names. Potential markets ignored can be
chosen for gaining entry and building a market share.
Agreements and contracts
The Company can also enter into long term agreements and contracts for marketing its
products.
Trade shows
The Company can participate in foreign trade shows. These trade shows draw a large
number of buyers who view new products in a few concentrated days. The manufacturer
sees how buyers react to various product features and terms and can assess buyer interest
and purchase intentions.
Export marketing channels
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Knowledge about the whole set of inter-related marketing agencies which are involved in
making the goods available from the producer to customers is important to the trader to
enable him to tailor his marketing scheme appropriately. Therefore, he should know the
available marketing channels. He should also know the most appropriate channel to link
the domestic operations to the overseas channel.
How an Export Management Company can assist you?
An Export Management Company (EMC) represents a manufacturer as their Export Sales
Department to develop international sales on their behalf. An EMC offers a firm immediate
expertise in international sales and marketing. An EMC represents manufacturers of
complementary, related products, but not competitive. An EMC is paid a commission on
sales made for the manufacturer, but only after the products have been shipped, and the
manufacturer has been paid. An EMC absorbs all selling costs, meaning NO FINANCIAL
RISK, NO STAFF COMMITTMENTS, and NO ADDITIONAL EXPENSES borne by the
manufacturer. An EMC will find, screen, select and appoint commissioned representatives
and distributors for your products, and will manage them for you.
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CHAPTER - 11
APPENDIX
BLANK QUESTIONNAIRE
1. Name the countries that buy from you in the International market. Also please specify
the quantum of purchase (U.S. $ value or Indian Re. value on an average since inception)
S.
No
Country Quantum of
purchase
Market share in %
1.
2.
3.
4.
5.
6.
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7.
8.
9.
10
Checklist your product ranges
a. Bathroom Accessories
b. Closet with cistern
c. Washbasin with pedestal
d. Shower enclosure & cubicle
e. Vanity Basin
f. Cloak room basin
g. Bidet
h. Towel holder
Other (please specify)_______________
Explain the Brand name strategy adopted by MACL.
_________________________________________________________________________
_________________________________________________________________________
__________
2 a) What factors motivate these countries to buy from you?
__________________________________________________________________________________________________________________________________________________
__________
b) Could you name any country or countries where you have tried to export but failed?
_________________________________________________________________________
_________________________________________________________________________
__________
c) What factors went against you?
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_________________________________________________________________________
_________________________________________________________________________
__________
3. How do you source your buyers? (Indicate 4 or 5 critical mechanisms for sourcing)
_________________________________________________________________________
_________________________________________________________________________
__________
4. Name some critical promotional input through which you create demand for your
products in International market.
__________________________________________________________________________________________________________________________________________________
__________
5. What price mechanism do you adopt for your products in the international market?
1. Uniform prices pegged to the U.S.$
2. Different prices for different markets
_____________________________________________________________________
6. Do you have any preset standards for pricing or do you go for negotiable pricing. Please
explain.
7. How do you make your products available to your customers in the International
market?
1. Direct
2. Through channels
If 2) please explain the channel procedure.
________________________________________________________________________
_________________________________________________________________________
________
8 a) Do you conduct marketing research as an ongoing process to identify changing
customer perception? Yes/ No
_____________________________________________________
b) If so, what sort of basic research do you conduct?
_________________________________________________________________________
_________________________________________________________________________
__________
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9. How do you keep yourself up in terms of technological advances, changing customer
tastes and preferences etc.?
_________________________________________________________________________
_________________________________________________________________________
_________
10. How do you meet competition at the International level?
_________________________________________________________________________
_________________________________________________________________________
__________
11 a) What are the major problems you face in your line of business? Please explain indetail.
_________________________________________________________________________
_________________________________________________________________________
_____
b) How friendly or unfriendly are the Government policies in boosting sanitary wares?
Please support your answer with figures.
_________________________________________________________________________
_________________________________________________________________________
_____
12. What changes do you foresee in the ceramics sanitary wares market in the light of
globalisation with reference to India?
_________________________________________________________________________
_________________________________________________________________________
__________
13a) Please name your competitors in India who export ceramic sanitary wares.
_________________________________________________________________________
___________________________________