Rajiv Project
Rajiv Project
On
“MARKET STUDY ON CONSUMER BEHAVIOUR AND SATISFACTION
IN TILES INDUSTRY”
Submitted to:-
MAHARSHI DAYANAND UNIVERSITY ROHTAK
For
The partial fulfillment of the award of degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
(Session: 2009-11)
SUBMITEDTO:-
SUBMITTEDBY:-
MR. S.B. DUBEY
Rajeev Kumar {Faculty of marketing}
Reg. no._
1
DECLARATION
and satisfaction in tiles industry” is an original work and the same has
not been submitted to any other institute for award of any other degree. A
seminar presentation of the Training Report was made on ……………. and the
Presentation Incharge
Candidate Signature
S.B. Dubey
Rajeev Kumar
2
Forwarded by
PREFACE:
certain destination and declare that target has been achieved and we need
not go further. The summer training program is designed to give the future
managers feel of the corporate happenings and work culture. These real life
reason that this summer training program is designed, so that the manager
of tomorrow not feel ill in the case when the time comes to shoulder
It was exactly in this context that I was privileged to join kajaria tiles pvt Ltd.
on the 10thof May 2010, as a summer trainee.kajaria tiles is known not only
for its professional management, but also for its enlightened and progressive
3
experience that I have gathered over the past two months has certainly
assignment successfully in future. During this period the report which I made
was done after a deep, comprehensive and full-fledged study and is based
ACKNOWLEDGEMENT
Trainer Mr. Hitesh restage marketing Manager. Kajaria tiles pvt. Ltd.
Delhi who helped me throughout the project and also encouraged me to take
Also, I would like to thank Dr. Hariom Sharma, H.O.D MBA for being the
on. I deeply appreciate every personnel in the company who has provided
Last but not the least I am also thankful to all the staff members of kajaria
tiles pvt, ltd. to make my project successful and helping me out by giving me
RAJEEV KUMAR
4
TABLE OF CONTENTS
Sr.N PRTICULARS Page
o No.
1 PREFACE 3
2 ACKNOWLEDGEMENT 4
3 CHAPTER 1 INTRODUCTION
Significance of the studies 6
Conceptualization 7-12
Review of Literature
4 CHAPTER 2 RESEARCH METHODOLOGY
Company Profile 15-35
Research Design 36
5
6 CHAPTER 4 FINDINGS & RECOMMENDATIONS, 50-55
CONCLUSIONS
7 CHAPTER 5 BIBLIOGRAPHY 58-59
8 QUESTIONNAIRE 60-64
INTRODUCTION:
SIGNIFICANCE OF STUDY
customers. This data can be explorated to take in the trends across the
industry. The significance for the industry lies in studying these trends that
emerge from the study. It is a rapidly changing and evolving sector. A study
like this can attempt to guide the future of the industry based on current
trends. Also the views of the architects and dealers would help in
6
Significance of the study:
and secondary data sources would help in shaping a good notion about the
CONCEPTULIZATION:
Before getting into details of consumer behavior & satisfaction, one must go
customer are considered the same but they are quite different. The term
specific term while a consumer is not Consumer may be referred to any one
7
which he expects will satisfy his needs. So ultimately consumers are that
purchased by him. So after getting into these terms we need to get into the
goods and services of his choice in different situations. The term consumer
services and ideas which they expect will satisfy their needs. The study of
consumer behavior not only focuses on how and why consumers make
buying decisions, but also focuses on the uses which consumers make of the
goods they buy and their evaluation of these goods after use. If the goods
after use don’t satisfy the consumers, they may feel dissatisfied perhaps
this may influence their purchase of the goods and it may also influence the
buying decision of many others who might come in contact with them.
focuses on-
8
Who buys products or services?
These questions will help in understanding the factors that influence the
decision making process of the consumers. The buyer’s decision making the
1. Problem recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
1. Problem recognition:- first and the foremost step are to identify the
problem i.e. what actually one wants with regard to the product.
9
2. Information search: - second step is to search the relevant
against the quality, quantity etc received after purchasing the product
i.e. in this stage he reacts on the basis of his getting satisfied after the
Product choice
Brand choice
Availability
Taste choice
Promotional schemes
10
Purchase amount
Consumer perception:
11
How the buyers buy form their preference? Their preferences are
difficult to measure. In this study an effort has been made to measure the
customer preference level. The customer is king. Finally 15 years after the
become tightening competitive. Not only have new players stormed into
the country, there are more brands available than ever before in every
customers.
12
Customer satisfaction;
customers who are just satisfied still find it easy to switch, when a better
offer comes along. Those who are highly satisfied are much less ready to
brain, not just a rational preference. The result is high customer loyalty. In
this highly competitive world customers plays a very important role. Thus
issue that differs from individual to individual yet, identifying some basic
13
FOCUS OF THE STUDY
The scope of the study covers the consumer behavior & satisfaction that is
market of Delhi & Faridabad region. The study will be beneficial for the
14
OBJECTIVES OF THE STUDY:
Objective is the pre-requisite of any study. All the students are carried out
with an objective in mind, which give direction to the study. As this summer
training report is related to analyze the market and study the consumer
behavior, satisfaction and preferences towards the tiles at kajaria tiles pvt.
customers?
15
COMPANY PROFILE:
There are three major regions in the world, namely, Asia, Latin America and
European Union (EU) that produce and export ceramic tiles in bulk. In 2008,
they had jointly produced more than 87% of the global output. World
production of ceramic tiles was 7565 millionsq.mt in 2008. China was the
largest producer with a total production of 2200 million sq.mt, Spain and
Italy were the 2nd and 3rd largest producers with production of 635million
sq.mt and 589million sq.mt respectively. India ranks at 5th position with
The ratio between consumption and production has been stable at around 94
close to 6 per cent. Asia is the most significant region by production, as well
as consumption, accounting for more than 50 per cent of both. China is the
leading country in the production of ceramic tiles with a share of 33 per cent
16
Italy. Europe accounts for 30 per cent and USA accounts for 14 per cent of
pattern remains similar, with Asia accounting for 51 per cent, Europe for 26
per cent and USA accounting for 18 per cent of the total global ceramic tile
consumption.
The global sanitary ware industry is estimated to be 187 million pieces and
growing at about 7 per cent Year-to-Year. The main sanitary ware producing
countries in the world are China, Italy, Mexico, Brazil and Spain, which
together account for about 35 per cent of global production India, with a size
of 6.7 million pieces, accounts for about 3.3 per cent of global production.
this sector in the Indian market. The Indian sanitary ware market has been
17
INDIAN CERAMICS INDUSTRY:
Ceramic Tiles:
India’s ceramic tile industry emerged in the 1950s. Tiles form the most
significant part of the Indian ceramics industry and consist of floor tiles (46
per cent), vitrified and porcelain tiles (12 per cent) and wall tiles (42 per
cent). The floor tiles segment is growing faster as compared to wall tiles.
Vitrified and porcelain tiles are recent entrants into the ceramic tile industry
and have increased the size of the market considerably. It is expected that
this segment will capture the bulk of the market gradually, replacing the
conventional floor and wall tiles segment. These tiles are light and have the
tiles, which are heavier and more expensive to transport. Both organized and
18
unorganized sectors play a key role in the manufacturing of ceramic tiles in
India. The per capita consumption of ceramic tiles in India is very less as
compared to the other countries in the world. It is as low as 0.15 sq.mtr per
annum.This low per capita consumption shows the likely demand that is
going to arise in the future in India as more and more development takes
place. Ceramic Tiles are furnishing material apart from being utility or
unorganized sector accounted for 44 percent of the total Production and the
revenue earnings from the organized sector accounted to over Rs150 crore.
India ranks 7th in terms of production in the world and the market share of
India have risen from 1.7 percent to 2.7 percent in terms of ceramic tile
production.
The Indian ceramic tile industry is estimated at US$ 0.35 billion. It comprises
of wall tiles, floor tiles and vitrified tiles. The per capita Consumption of
ceramic tiles in India is just 0.15 square meters per Annum, which is quite
capacity. While capacity has also increased significantly, from 120 million
19
tons in 2004, to 215 million tons in 2008, the demand has grown nearly two
and a half times in the same period, from 97 Million tons to 207 million
such as H. & R. Johnson, Kajaria Ceramics, Bell Ceramics, SPL, Spartech and
ORGANISED PLAYERS:
NitcoTiles Pvt.Ltd.
20
Orient Ceramics and Industries Ltd.
SPL Ltd.
NORTHERN INDIA
KAJARIA TILES:
It is the largest ceramic floor and wall tile manufacturer in the second most
21
Todagres, S.A., Spain. It commenced operation in 1988 in Sikandrabad,
(Uttar Pradesh) and Galipot (Rajasthan). It has been equipped with eight
prominent Indian ceramic tile brand with a favorable recall the largest
floor, vitrified, Spanish and Italian tiles). It has brand enhancing customers
NITCO TILES:
endeavors’ and premium products in the construction industry for over five
22
decades. Today, with its rich repertoire in offering unique Floor Tiles, Mosaic,
Wall Tiles and Marble, Nitco has gone to become the most preferred name
and the ideal choice of millions of house-holds and the real estate fraternity.
offerings.
awards for innovation and design is the perfect testament to all of its
achievements.
SOMANY TILES:
23
In the Indian tiles sector, somany has achieved a clear leadership position by
porcelain floor tiles, Somany prides itself in being at the very forefront of
style and quality. From raw material imported from Italy and Spain, to the
have been, and will always strive to be a dynamic leader in its field. It began
which later became Somany Ceramics Ltd. It was the power of a dream and
the zeal to excel, that drove Sheri H L Somany to forge a path of unparalleled
success for this company. The dynamic leadership team in Somany not only
helm as Founder, Sheri Shrieking Somany as the CMD and Sheri Abhishek
expansion and growth. This core leadership team along with a large team of
creating more value for all stakeholders. Their commitment to excel in every
sphere and to fuel growth in the core as well as new sectors has truly
created a powerful vitality within the company, both in mind and spirit. In
1971 the very first unit of Somany started production in Kassar, Haryana.
Since then Somany has reached and surpassed many milestones – setting-up
24
of second unit in 1981, buyout of all equity shares by Somany's Indian
brand name “Synergy”, got patent for VC technology-a first ever in Indian
and Mumbai, Pune and Indore. Many other retail showrooms are about to be
and offer imported tiles as well as exclusive Aqua ware brand sanitary ware.
A large network of Somany display centers are also spread across the
inspiring Somany range of tiles. Somany strives to bring its customers floor,
wall, vitrified, ceramic, porcelain and innovative tiles that are the very latest
in the world. Somany prides itself in the sheer variety of design and finish,
and constantly looks to bring new and trend-setting ideas into the tile
industry. The futuristic patented VC Shield range of tiles from Somany, are
the world's most durable floor tiles. Created using the breakthrough, 'Veil
craft technology', that creates a special layer on the tiles that keep them
free from abrasion, scratches and stains, these tiles retain the original glaze
and finish for years. No wonder then, that these tiles comprehensively
outperform ordinary ceramic tiles including PEI grade 5 tiles. Venturing into
25
the burgeoning sanitary ware sector, Somany has already made major in-
roads into this market. With its range of high quality products and offerings
niche for itself in this sector, by bringing in and adopting the latest in design,
customers, we source our raw material from as far as Italy, Spain, and China
besides Rajasthan, Uttar Pradesh, Madhya Pradesh and other major centers
in the country. Somany has a production capacity of 15.7 million sq met per
annum from its Haryana and Gujarat units. It has always focused on
the huge amounts of funds invested in research and development. This has
borne fruit in the form of Somany's achievement of establishing the very first
Machine has the capacity to decorate ceramic tiles with glazes, using a
system that optimizes decoration of tiles enables any kind of random design
achieved with Somany's new Laser Guided Vehicle system. This cutting-edge
26
material transportation system has automated the movement of ceramic
commitment to bring the best and the latest to its valued stakeholders and
customers in India.
ASIAN TILES:
Asian tiles have blazed a trail in the tile industry. With humble beginning in
the field of floor tiles, today it has expanded till the horizon, covering almost
each of the aspects of the industry. Supported by vast man power along with
mind power,
27
Asian Tiles possesses the strength of over 3000 business associates spread
across the nation. Asian is all set to reach the goal of supplying world class
product, through a network of 18 depots with display centers & ultra modern
30,000 Sq. Mtr. and production capacity of two plants is 32300 Sq. Mtr. Per
day of tile. Asian has become India's leading wall tile manufacturer in large
format size, with the biggest size of 300 X 900 mm, where we provide wall
European tiles, with the promise of extremely accurate size control, to add
H & R JOHNSONS:
H. & R. Johnson (India) Limited is India's No. 1 tile company offering a wide
range of wall and floor tile products across various segments v.i.z. Wall,
Floor, Vitrified, Exterior and Industrial. The company also has diversified
and Endure & Milano) the company provides the most innovative products of
international standards that is coupled with the best of pre and after sales
service.
28
EURO CERAMICS:
Promoters:
Mr. Nenshi Shah: Mr. Talakshi Nandu: Mr. Kumar Shah: Mr. Paresh Shah
29
• Vitrified Ceramic Tiles: 79,971 MTPA.
• Technology:
• Quality focus:
INDUSTRY STATISTICS:
30
Market):15%
Share: 8%
Share: 6%
9. Organized sector:
No. of units: 16
31
Revenue (excise duty): Rs 300 crores
In Gujarat region)
Less
500,000 indirect
Apart from domestic demand, exports of ceramic tiles from India have also
ceramic tiles from India have gone up to US$ 58.5 million in 2006-07, at a
CAGR of 12 per cent. India exports tiles to other parts of Asia, Africa and
West Europe. The other main exports of ceramic products consist of chemical
32
Imports of tiles have gone up rapidly in recent years, to almost match the
level of exports. From around US$ 8.3 million in 2001-02, imports have gone
imports indicate the rapid growth in domestic demand for tiles, due to boom
History of kajaria:
manufactures glazed and wall & floor tiles. The company obtained the
promoted by shri ashok Kumar kajaria ,his associate and kajaria exports ltd.
33
The company entered into a technical collorbation agreement with todagres
Spain for the manufacture of ceramic glazed wall and floor tiles.
The industry’s potential appears attractive, following the realty growth in the
housing, retail, IT and BPO sectors. The low per capita consumption projects
a rising demand for ceramic tiles in India as they are used for aesthetic,
besides utility and hygiene reasons. To capitalize on the latent demand, the
Owing to the delicate nature of the product, distribution and logistics costs
form a substantial portion of the total costs and the success of the
stocks and wide market reach – is critical to the success of retail sales.
Indian economy is poised to grow at 7-8 percent and with growing incomes
and urbanization, demand for houses is slated for growth. The increasing
34
focus on rural areas, by government and corporate, the demand for housing
would also increase in rural areas. The ceramic industry will also benefit from
the above developments. Increasing demand is just one part of the story the
availability of
Finance is the other part. With the availability of loans at low interest rate
Price Analysis:
The price of ceramic tiles depends on the various size and measurements of
the tiles. Although we have noticed that tile dealers are not ready to give
price details fairly, somehow we have managed to extract some of the tiles
prices of various players. the mostly used vitrified tile size for living room is
2’ X 2’, for kitchen and for toilet people used to install ceramic tiles of 16’ X
16’ and 12’ X 12’. For dining they used to stick with vitrified tiles of 2’ X 2’
size. Now, in wall tiles segment, the general market price in Ghaziabad starts
35
Research Methodology:
Title: To determine the perception about various tiles’ quality, brand equity,
Title Justification:
36
Title is self-explanatory. The study mainly deals with the quality, brand
awareness,
Price analysis and above all customer experience about the various tile
Research Design:
nature. The sources of information are both primary & secondary. A well-
PROJECT INTRODUCTION;
37
At its core, marketing is primarily about human activity, which involves tiles
exchanges. Tiles industry one of the biggest industries in the world in terms
of gross output and value added, capital investment, employment, and tax
gradual shift in the preference for destinations, form Europe and North
America to South Asia. India being one of the major South-Asian tiles
cultural heritage woven into a range of tiles products, can certainly expect to
domestic tiles and the outbound tiles which is an inevitable by-product of the
prosperity that India has achieved during the last decade. In conjunction with
the new tiles policy of, Government of India also adopted a multi-pronged
has witnessed rapid changes especially in the last five years. India is the
fastest growing tiles economy where tiles have grown at a very healthy 13
per cent per annum in the past four years. In 2006, international inbound
tiles to India peaked at a record 4.4 million arrivals, driven probably by the
38
successful re-positioning of the destination brand through the ‘Incredible
India' marketing campaign. India's domestic tiles market has also shown a
steady upward trend over the past 15 years, as many of the States woke up
up by 13 per cent on 2005. The average annual growth rate has been more
than 10 per cent since 2000. Many of the States in India are formulating
However there are still infrastructural inadequacies that are constraining the
increase room supply, open further its skies to increase air capacity. Also
cultural degradation.
RESEARCH METHODOLOGY
39
Each and every object requires genuine research study, success of the
project and getting genuine results that all are depends upon a research
RESEARCH DESIGN:
This study is analytical in nature. Analytical study means I had to analyze the
things, which already exists. We have to analyze the things and interpret the
required.
40
DATA COLLECTION
DATA COLLECTION:
There are several ways of collecting the appropriate data, which may differ
in two categories.
Primary source
Secondary source
Primary data:
prepared, and that is being used to collect the data from every individual.
Customers are being interviewed with the help of the questionnaire and it
41
Secondary data:
Books
Journals
Internet
Magazines
Newspapers
1. observation method
42
Under the observation method, the information is sought by way of
2. Interview method
3. Questionnaire
set of forms.
4. through schedules
This method of data collection is very much like the collection of data
through questionnaire, with a little difference, which lies in the fact that
43
schedules are being filled in by the enumerators, who are specially
made on the basis that, I did not require the restructuring opportunity that
THE SAMPLE
The sample size of the respondents was 30 and the study was being
44
AREA OF STUDY
The area in which the research is conducted is the marketing, to study the
SAMPLE DESIGN
Sample design that part of which I select for the purpose of investigation. A
SAMPLE SIZE:
45
MICRO ANALYSIS
Price 09
Brand 15
Scheme 06
46
PRICE
BRAND
SCHEME
Friends 45
Family 11
Advertisement 27
Sales person 17
47
FRIENDS
FAMILY
ADDVERISEMENT
SALES PERSON
Strongly satisfied 25
Satisfied 39
Neutral 28
Dissatisfied 6
48
Strongly dissatisfied 2
Strongly satisfied
Satisfied
Neutral
Dissatisfied
Strongly dissatisfied
Scheme Percentages
Coupon 29
Discount 48
Free gift 24
49
Coupon
Discount
Free Gift
Factor Percentage
Price 19
Variety 56
50
Promotion schemes 25
Price
Variety
Promotion
schemes
Advertisement Percentage
Magazine 29
51
Newspaper 45
Television 13
Internet 8
Other 5
Magzine
Newspaper
Television
Internet
Other
52
How can you recommend this product to someone else?
Recommended Percentage
Definitely yes 44
Probably yes 45
Definitely no 3
Probably no 8
53
Definitely yes
Probably yes
Definitely no
Probably no
As per table concerned 44% of the respondent said that they have
recommended to other person.
The same product as they own 45% of the consumer said probably
yes that they will recommend.
54
RECOMMENDATIONS:
products to the end user in quickest and most effective way. It would also
segments.
customers and also give customer a chance to design product in their own
showrooms for special products instead of keeping with the regular range. As
dealer outlets. This would serve a dual purpose: it would enable the company
prominent and trend- influencing customer; on the other hand, it helped the
55
BRAND:
It may introduce a specific dedicated team to look after the overall brand
equity. They will ensure that all showrooms and dealer display centers were
in sync with the Orient profile. Also they will look after the external packing
branding approach.
Risks and Concerns: Some of the key risks affecting the Company are
explained below:
margins.
raw materials.
56
3. After the imposition of anti dumping duty on Vitrified tile, dumping is
taking place in glazed wall and floor tiles which has put pressure on the
companies in India.
57
CONCLUSIONS
The conclusions which are made after conducting the survey regarding the
1. Price and brand name are the two major factors that affect the buying
58
4. Discount offers also attract the consumers.
5. Most of the respondents are satisfied with the price of the services
SUGGESTIONS
bodies.
59
5. Comparative price should be used as a tool to promote products in the
Market.
6. To create the needs of youths & children segment the company should
behavior.
8. Different promotional schemes like discount & free gift can be used.
among people.
60
14. Collecting personal references.
LIMITATIONS
also admitted here it was a great mental & physical exercise to go along with
project report. Even by doing a lot to attend the maximum aspects of the
61
The first limitation is the availability of time which is caused a great
the study.
These are the various limitations which I faced during my training study.
The sample size is very less, hence it does not imply for the complete
population.
There was lack of time and resources that prevented from carrying out an in
depth study.
The findings of the survey are based on the subjective opinion of the
error exists in the data filling process because of the following reasons:
62
Influence of others Misunderstanding of the concept .Hurried filling of the
questionnaire.
The research is confined to a certain parts of Delhi & Faridabad and does not
BIBILOGRAPHY
63
1. Gupta S.P, Statistical Methods, Sultan Chand and Sons Publishers, 34th
edition, pp 378.
pp 110-112
3. Internet sites:
financial services.”
publications.
edition, 2000.
www.wikipedia.com
www.google.com
64
Business line
www.icctas.com
Company websites
Annual reports
Questionnaire
QUESTIONNAIRE
65
Hello Sir,
Name - Age:
Occupation-
c) Self – Employed [ ]
d) Student [ ]
66
a) Advertisements [ ]
a) Price [ ]
b) Brand [ ]
c) Schemes [ ]
a) Friends [ ]
b) Family [ ]
c) Advertisement [ ]
d) Sales person [ ]
67
a) Strongly satisfied [ ]
b) Satisfied [ ]
c) Neutral [ ]
d) Dissatisfied [ ]
e) Strongly dissatisfied [ ]
a) Coupon [ ]
b) Discount [ ]
c) Free gift [ ]
A) Price [ ]
b) Variety [ ]
c) Promotion schemes [ ]
68
a) Magazine [ ]
b) Newspaper [ ]
c) Television [ ]
d) Internet [ ]
e) Other [ ]
a) Definitely yes [ ]
b) Probably yes [ ]
c) Definitely no [ ]
d) Probably no [ ]
a) Yes [ ]
b) No [ ]
69
a) Yes [ ]
b) No [ ]
RAJEEV
KUMAR
70