Asahi india glass project by DEV MASAND

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Evaluation of impact of Advertisement in awareness and demand of the

commodity product: Glass

By

Dev Masand

PGDM (HR)

Sinhgad Institute of Management

Vadgaon, Pune

June, 2009

1 | S u m m e r P r o j e c t R e p o r t

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Evaluation of impact of Advertisement in awareness and demand of the

commodity product: Glass

By

Dev Masand

Under the guidance of

Mr. Alok Agarwal

Zonal Head- West Zone Prof. M.M. Marathe

(Sales & Marketing) College Project Guide

Asahi India Glass Ltd.

Mr. Shailesh Ranjan

Area Manager (Head Office)

(Sales & Marketing)


Sinhgad Institute of Management

Vadgaon, Pune June, 2009


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Certificate of Approval

We approve this Summer Project Report titled " Evaluation of impact of Advertisement

in awareness and demand of the commodity product: Glass " as a certified study in management

carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for

the award of Post Graduate Diploma in Management ( HR) for which it has been submitted. It

is understood that by this approval we do not necessarily endorse or approve any statement

made, opinion expressed or conclusion drawn therein but approve the Summer Project Report

only for the purpose it is submitted.

Summer Project Report Examination Committee for evaluation of Summer Project Report

Name Signature

1. Faculty Examiner

2. PGDM Summer Project Co-coordinator


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Certificate from Summer Project Guides

This is to certify that Mr. Dev Masand a student of the Post Graduate Diploma in Management (HR), has worked under our guidance and supervision. This Summer Project Report has the requisite standard and to the best of our knowledge no part of it has been reproduced from any other summer project, monograph, report or book.

Faculty Guide Organizational Guide

Designation Designation

SIOM Organization

AddressDate

Date


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ACKNOWLEDGEMENT

I am elated to extend my gratitude to the management of Asahi India Glass Ltd. for

providing me an opportunity to undertake the summer internship program in their organization.

The knowledge gained from the organization during the project is of immense help that enables

me to understand the practical applications of the Business concepts in consonance with

academic learning.

I owe sincere thanks to my Project Guide Mr. Alok Agarwal-Zonal Head ( Sales &

Marketing- Mumbai) for guiding me towards every step in completion of this project.

And a special thanks to Mr. Shailesh Ranjan, Mr. Anish, Mr. Sumeet for sharing their

knowledge.

I would like to thank Mr. Milind Marathe for guiding me at every step during Summer

Internship.

And in the end I would like to thank all the House owners, Dealers Sales Executive team

and drivers without whom this project would definitely have been incomplete.

Dev Masand

PGDM(HR)

SIOM


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Table of ContentsTable of Figures........................................................................................................................................................................... 5

List of Tables................................................................................................................................................................................. 5

Abbreviation................................................................................................................................................................................. 5

Abstract........................................................................................................................................................................................... 5

Industry Overview..................................................................................................................................................................... 5

Float Glass Industry in India.............................................................................................................................................5

User Segments........................................................................................................................................................................5

Major Producers..................................................................................................................................................................... 5

New Entrants........................................................................................................................................................................... 5

Current capacity versus demand in India...................................................................................................................5

Future Prospectus................................................................................................................................................................. 5

Current Scenario.................................................................................................................................................................... 5

Market Share............................................................................................................................................................................5

Company Profile..........................................................................................................................................................................5

Vision and Mission................................................................................................................................................................ 5

Vision...................................................................................................................................................................................... 5

Mission...................................................................................................................................................................................5

Guiding principles................................................................................................................................................................. 5

Collaborators........................................................................................................................................................................... 5

SBU’S............................................................................................................................................................................................ 5

AIS Auto Glass.....................................................................................................................................................................5

AIS Glass Solution............................................................................................................................................................. 5

AIS Float Glass.................................................................................................................................................................... 5

Market Research......................................................................................................................................................................... 5

Background.............................................................................................................................................................................. 5

Introduction............................................................................................................................................................................. 5

Problem Formulation...........................................................................................................................................................5

Literature Review.................................................................................................................................................................. 5


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Gaps in The Literature....................................................................................................................................................5

Time Frame................................................................................................................................................................................ 5

The Research Problem.........................................................................................................................................................5

Research Objective...........................................................................................................................................................5

Null hypothesis.................................................................................................................................................................. 5

Alternative hypothesis....................................................................................................................................................5

Scope of The Study........................................................................................................................................................... 5

Research Design..................................................................................................................................................................... 5

Research Methodology...................................................................................................................................................5

Sample size.......................................................................................................................................................................... 5

Research Instrument.......................................................................................................................................................5

Tool of Data Analysis (SPSS)........................................................................................................................................5

Results and Conclusion............................................................................................................................................................ 5

Recommendations......................................................................................................................................................................5

REFERENCES........................................................................................................................................................................... 5

Appendix -1.............................................................................................................................................................................. 5


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Table of FiguresFigure 1: Domestic Float Glass Sales..................................................................................................................................5Figure 2 : Sales Growth of Float Glass................................................................................................................................5Figure 3 : Company wise capacity of production..........................................................................................................5Figure 4 : Break-up of Capacity............................................................................................................................................5Figure 5 : Domestic Market Share.......................................................................................................................................5Figure 6: Awareness of Glass brands.................................................................................................................................5Figure 7: Glass advertisement saw by people................................................................................................................5Figure 8: Awareness Vs Particular brand........................................................................................................................5Figure 9: Whether go for buying..........................................................................................................................................5Figure 10: Purchase of glass.................................................................................................................................................. 5Figure 11: Importance of brand...........................................................................................................................................5Figure 12: Awareness Vs whether go for buying..........................................................................................................5Figure 13: Time Taken at Retail Counter.........................................................................................................................5Figure 14: Preference for particular brand.....................................................................................................................5Figure 15: Decision to choose any brand.........................................................................................................................5Figure 16: Influencer of Recommendation......................................................................................................................5Figure 17: Ad recall....................................................................................................................................................................5Figure 18: Ad influence on action........................................................................................................................................5Figure 19:Parameters for buying glass.............................................................................................................................5Figure 20: Awareness of application of glass.................................................................................................................5


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List of Tables Table 1 : Domestic Float Glass Sales..................................................................................................................................5

Table 2 : Total Capacity............................................................................................................................................................5

Table 3 : Break-up of Capacity..............................................................................................................................................5

Table 4 : Market Share..............................................................................................................................................................5


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Abbreviation

SGG SAINT GOBAIN GLASS INDIA LIMITED

AIS ASAHI INDIA GLASS LIMITED

GGL GUJRAT GUARDIAN LIMITED

MODIGUARD GUJRAT GUARDIAN LIMITED

TPD TONNES PER DAY

MT METRIC TONNES

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Abstract

Asahi India Glass Ltd. (AIS) is the largest integrated glass company in India, manufacturing a

wide range of international quality automotive safety glass, float glass, architectural processed

glass and glass products.

AIS is jointly promoted by the Labroo family, Asahi Glass Co. Ltd., Japan and Maruti Suzuki

India Ltd. AIS have the following three Strategic Business Units (SBUs):

Automotive Glass Unit – AIS Auto Glass

Float Glass Unit – AIS Float Glass

AIS Glass Solutions Ltd – AIS Glass Solutions

The Indian Glass Industry is still at nascent stage and it is rapidly developing. The glass industry

is very organized. The business environment is getting more competitive by the entry of new

players beside the three major companies as Saint Gobain, AIS and Modiguard.

Problem statement

The impact of advertisement on the demand of commodity product specifically Glass is to find

out. India is the only country where glass as commodity product is being advertised on TV. But

their effectiveness in impacting consumers mind for using more glass is not clear. How the ad

affects the market share and perception of the glass in the mind of consumers is to be figured

out.

Scope of the Study

The study will be conducted in India with limited scope of A and B class cities where 80%

(building material) commodities are sold. Primary focus of the study will be on Glass. The most

of the survey is limited to Mumbai and nearby city around it.


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Literature survey

This is the most researched topic and various methods were adopted to check the effectiveness of

advertising by different researchers. But that previous research has not specifically measured the

impacts of advertising and brand value, and their joint effect, on firm performance for the glass

kind of commodity product. We could not find the study which talks the likeable attributes in

commodity products like glass. What exactly customers are looking for in a glass? By examining

the effects of advertising and brand value, our work contributes to the existing literature.

The Research Problem

The research problem is to find out the impact of advertisement on demand of commodity

product specifically glass.

Research Objective

Based on the problem statement, the research objectives are:

To find out whether consumers are really involved in Glass buying decision if yes then to

what extent?

To find out, Are consumers really aware of any Glass or cement Co, brand or Glass

products?

To find out Does advertising has any impact in the minds of consumers?

Can the advertising be measured or connected with a equation to the top and bottom line

of the company.

Research is going to be descriptive as well as applied in order to achieve the desired objectives.

The null hypothesis and the research hypothesis has been developed keeping assumption that the

research will be specifically for the commodity product glass and keeping all the factors

affecting the glass busying constant other than advertisements.

The null hypothesis and alternate hypothesis is prepared to prove the research objectives.


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After the research study we should be able to judge the above hypothesis by accepting or

rejecting it. The result will tell us about the effectiveness of the advertisement on glass

(commodity product) and should also explain the awareness on the different glass brands.

The Research Design

Research is going to be descriptive as well as applied in order to achieve the desired

objectives. Most of the objectives will be derived from the primary data after the survey. Focus

group, stratified sampling technique in A and B class cities particularly Mumbai and its nearby

cities will be surveyed.

Research approach

In this study, both sample survey and statistical approaches will be applied to collect data and

establish the relationships between variables of interest.

Sources of data

Both secondary (documents and records) and primary (a sample survey of customers and

channel partners in this case) data sources will be used in this work.

Research instrument

The structured questionnaire will be used for the survey. The SPSS tool is being used for the

analysis purpose. The complete research study will be done in 8 weeks parts.


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Recommendations

The commodity market has very less involvement of the end consumers in the buying process , hence the company should push dealers and retailers through different schemes , gifts and by giving them awards of “Best Retailer of the Year” and “Best Dealer of the Year” awards. The visibility at the retail counter should be increased by giving them pad, cutting tools to carpenters via retailers having AIS inscribed on it.

1. The companies can provide booklet containing samples of glass to carpenter to push their products and increase their brand awareness. They can organize some kind of training on new design to carpenters. They should distribute danglers, calendars to retailers shop.

2. They can put their videos on “You tube “to increase the awareness. The company should project their positioning statement “See More, See Clear “in their advertising media.

3. The company can direct its advertisements through different channels towards these functional benefits of glass. They should organize meets and exhibition with retailers, The mode of communications like PR, sponsorships to events will be good method to create the awareness.

4. The advertisements activities should be targeted on the middle segment. The awareness

can be increased by through tie-ups with the social society/community like BMC and

CARE to increase the awareness level among the middle income category.

5. They can also have the tie-ups with the known builders and architects to advertise their

brands on their websites. Different festivals should be targeted for the awareness.


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Industry Overview

Float Glass Industry in India

India with more than one billion people, one sixth of the world’s total population has

become an attractive destination for investment in Glass Industry for some time, it

contributes around (6 %) one sixteenth of the world’s total Gross Domestic Product. It is

one of the largest economies of the world that had a middle-class consumer market in

excess of 300 million people. With increasing purchasing power and development of

service sector, India is definitely on the radar of all the glass manufacturing companies.

Float glass Industry in India is relatively new; the first float glass plant was established as

recently as 15 years back. In this period India has emerged an important player in float

glass production and today there are six float lines in operation and five new lines are at

different stages of completion. It goes without saying that the rapid increase in demand

during the late 1990s due to construction activities, in addition to provoking a cutback in

exports, charmed some international firms which now are the major producers of float

glass in the country.

India had been using sheet and lower quality float glass through ages. Secondary

processing was negligible with the majority of glass being installed in basic, monolithic

form such as casting glasses. Until 1992, only sheet glass was being manufactured in the

country, with a limited quantity of float glass being imported. In 1993, the first float glass

plant was set. Since then new varieties of float and sheet glass capacities have been

added. Against decades of old practice of casting glass in sheets over plain surfaces, the

technology of float glass had brought about a significant change in the production and use

of glass. The switch from low quality sheet glass with limited range and thickness to the

sophisticated float glass took place in just a decade.

Totally, the flat glass industry grew by about 90% between 2000 and 2007, resulting in a

compound annual growth rate of 11%. The per capita consumption of glass, which was

0.41 kg in 1999, reached 0.80% kg in 2007. The demand for flat glass in India has


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increased at an average rate of 12 percent to 15 percent each year for the past five years.

Respective market share of float and sheet glass is 89 percent and 11 percent. However,

the greater proportion of sheet and lower-quality float capacity will gradually phase out

and be replaced with high-quality float. The two main consuming sectors of flat glass in

India are the construction and automotive industries, both of which have been

experiencing hyper growth for the last five years.

User Segments

Eighty-three percent of the glass produced is used in the construction industry, 15 percent

in the automotive industry and 2 percent in miscellaneous industries such as furniture and

photo frames. The automobile industry, four-wheelers, has registered 18.6 percent growth

between January and November 2007. The construction sector is growing around 12

percent per annum. India exports about 13,000 tons of glass per month to the Middle

East, African countries, Europe and South America. The rapid increase in the demand for

flat glass in the domestic market has resulted in a cutback in exports by as much as 60

percent in the last couple of years.

Major Producers

The major producers of float glass in India are three foreign joint ventures and an Indian

company:

Asahi India Glass Ltd Taloja, Maharashtra, Roorkee, UP; Asahi India’s two plants

produce 500 tons and 750 tons per day. Asahi India Glass Ltd. It started operations in

December 1994. It started off as a joint venture between the Tatas and Asahis of Japan.

With the exit of the Asahis in 2003, it was taken over by Asahi India Safety, the

automotive glass manufacturing company. The merged entity is known as Asahi India

Glass Ltd. The company started a new float plant with a 750-ton capacity on Jan. 1, 2007

at Uttaranchal in North India.

Saint-Gobain Glass India Ltd., Sriperumbudur, Tamil Nadu; Saint-Gobain’s two plants

produce 550 tons and 700 tons per day. It started operations in 2000 and is India’s largest

capacity float plant.It is a 100 percent subsidiary of the Saint-Gobain Group


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Gujarat Guardian Ltd., Ankleshwar, Gujarat, Gujarat Guardian, the first company to set up

float glass plant in India produces 550 tons per day; It is a joint venture between

Guardian Industries International Corp. of the United States and India’s Modi Group.

Triveni Glass in Allahabad produces 200 tons of float glass per day. It’s a mini float plant

based on Chinese float-glass technology.

New Entrants

Other than these four established players, a few domestic companies too are venturing in

Float glass production; there float lines are at various stages of completion. All the three

new players are related to glass industry.

Gold Plus Glass Limited- Gold Plus glass is a New Delhi based glass processor, and has a

significant market share in processing glass industry, announced that it’s Roorkie based

latest float glass manufacturing plant of Gold Plus, would start production in June, 2008.

The furnace may be fired on any suitable day in June; 2008.The estimated cost of this

project is approximately Rs.400 Crores in the first phase. The capacity of this float glass

production line would be 460tonnes per day. This float glass production line will produce

clear and green tinted glass from 2 to 19mm thickness. Most of the machineries for this

plant are from Europe and America and Yaohua Glass Group of China.

Sejal Glass – another prominent manufacturer of value added glass, based in Mumbai

( Western Coast) has ambitious plans to set up a Float Line. The factory site is at

Bharuch, for which the construction has already begun and production will commence

from March 2009. The plant will undertake manufacturing of Clear and Tinted Glass

HNG Float glass - Hindustan National Glass company, the leading manufacturer of

container glass in India, made the announcement of setting its float glass plant in Dec.

2007, in Halol, Gujarat. Capacity of this line will be 600 Ton/day and is expected to be

on stream by middle of 2009. In its press release the company stated that equipments

would be sourced from European suppliers.

Current capacity versus demand in India


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An excess capacity of raw glass in the industry was experienced in the beginning of 2006.

This excess capacity could become larger in the years to come if current investment plans

see the light of day. In 2007, the excess capacity was four times that of 2006, and in 2008

it could be six times that of 2006. This is assuming demand continues to grow at the

current double-digit pace. It is interesting to note that the cumulative profit of flat-glass

manufacturers in India is still in the red.

Future Prospectus

The construction and automotive industries are the most important consuming sectors,

almost 80 million square feet of land in India is earmarked for shopping malls, taking into

consideration Special Economic Zones and Corporate offices, there is an immense

opportunity in Indian Glass industry. Nowadays, taking climate, safety, sound

attenuation, energy conservation and aesthetics into consideration, builders are opting for

more glass in their construction. The glass revolution is also taking place in the

automotive industry which is predicted to grow at more than 15% till 2012. Anyway, it

isn’t all roses for Indian glass industry, problems like the overcapacity of raw glass (and a

projected surplus of processed glass); Chinese competition (in spite of anti-dumping

duties) and the lack of codes of standards threaten Indian glass industry. As far as

overcapacity concerned, analysts say that the supply will far exceed demand at least until

2009. Excess capacity, increased competition and the development of a regulatory

framework are the real future challenges for the Indian glass industry.

Current Scenario

The domestic glass industry and trade has been progressing at a consistent impressive rate of

growth of 12-13% per annum during the last nine years. However this progress has come to a

rude halt in the fourth quarter of the current financial year 2008-2009 and the rate of growth has

turned negative. During the last financial year 2007-08 all the three float glass manufacturing

companies operating in the country – SGG, GGL and AIS had combined sales of 2043 tonnes

per day of float glass on an average. However , during the fourth quarter ( January- March ) of


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the current financial year 2008-2009 this has slide to 1885 tonnes per day on an average having a

negative growth rate of -8.38%( Glass Yug magazine, January Edition- 2009).

Year MT/Day %Growth

2000-01 886 2.66

2001-02 980 10.6

2002-03 1106 12.85

2003-04 1310 18.44

2004-05 1427 8.93

2005-06 1402 14.22

2006-07 1695 20.89

2007-08 2043 20.46

2008-09 ( Jan-Mar) 1885 -8.38

Table 1 : Domestic Float Glass Sales

The float glass sales trend shows that from past nine years sales was increasing continuously, but

due to economic slowdown and recessionary condition it has decreased in the beginning of 2008-

09 turning into negative growth rate in the sales .


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2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 ( Jan-Mar)

MT/Day

886 980 1106 1310 1427 1402 1695 2043 1885

250

750

1250

1750

2250

886 9801106

13101427 1402

1695

20431885

Domestic Float Glass Sales(MT/Day)Sa

les

Figure 1: Domestic Float Glass Sales

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 ( Jan-Mar)

%Growth

2.66 10.6 12.85 18.44 8.93 14.22 20.89 20.46 -8.38

-7.5

-2.5

2.5

7.5

12.5

17.5

22.5

Sales Growth of Float Glass( in percentage)

% S

ales

Gro

wth

Figure 2 : Sales Growth of Float Glass

The total capacity of including all the major float glass companies in India comes 4650 tonnes

per day. Out of which the three major companies like Saint-Gobain Glass India Ltd. has 1400


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tonnes per day, Asahi India Glass Ltd. with 1200 tonnes per day and Gujarat Guardian Ltd. with

550 tonnes per day. The other three companies Gold Plus Float Glass Industry Ltd., H.N.G Float

Glass Ltd. and Gold Plus Float Glass Industry Ltd. have corresponding capacity of 550, 550 and

400 tonnes per day.

Total Capacity ( in tonnes per day)

Manufacturers Capacity( in tonnes per day)

Gujarat Guardian Ltd. 550

Asahi India Glass Ltd. 1200

Saint-Gobain Glass India Ltd. 1400

Gold Plus Float Glass Industry Ltd. 400

Sejal Architectural Glass Ltd. 550

H.N.G Float Glass Ltd. 550

Total Capacity 4650

Domestic Sales on an average/day 1885

Export sales on an average/day 350

Domestic + Exports 2235

Extra Supplies or Stocks 2415

Table 2 : Total Capacity


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550; 12%

1200; 26%

1400; 30%

400; 9%

550; 12%

550; 12%

Capacity( in tonnes per day)

Gujarat Guardian Ltd. Asahi India Glass Ltd.Saint-Gobain Glass India Ltd.Gold Plus Float Glass Industry Ltd.Sejal Architectural Glass Ltd.H.N.G Float Glass Ltd.

Figure 3 : Company wise capacity of production

So far as the concern of export sale, SGG and AIS are the performing extremely well by

recording export sales of more than 700 tonnes per day on an average while the export figure for

GGL is negligible as its production capacity is limited to 500 TPD. The total capacity gets

absorbed mostly in domestic market with 1885 mostly whereas export sales per day are 350

TPD. The extra supplies or stocks are 2415 tonnes per day.

Break-up of Capacity ( in tonnes per day)

Total Capacity 4650

Domestic Sales on an average/day 1885

Export sales on an average/day 350

Extra Supplies or Stocks 2415

Table 3 : Break-up of Capacity


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41%

8%

52%

Break-up of Capacity( in tonnes per day)

Domestic Sales on an av-erage/dayExport sales on an average/day Extra Supplies or Stocks

Figure 4 : Break-up of Capacity

Market Share

The SGG has the highest market share of 38.89%, whereas AIS stands second with 31.52 %

market share. The GGL has 23.23% market share and the Gold plus float glass Industry Ltd.

covers 6.37% market share.


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Table 4 : Market Share

Saint-Gobain Glass India Ltd.


Gujarat Guardian Ltd.

Gold Plus Float Glass Industry Ltd.

Market Share

38.89% 31.51% 23.23% 6.37%

2.50%

7.50%

12.50%

17.50%

22.50%

27.50%

32.50%

37.50%

38.89%31.51%

23.23%

6.37%

Float Glass :Market Share ( Domestic Market )

% M

ark

et S

har

e

Figure 5 : Domestic Market Share


Float Glass : Market Share ( Domestic Market )

Manufacturers Market Share

Saint-Gobain Glass India Ltd. 38.89%

Asahi India Glass Ltd. 31.51%

Gujarat Guardian Ltd. 23.23%

Gold Plus Float Glass Industry Ltd. 6.37%

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Company Profile

AIS is the largest integrated glass company in India, manufacturing a wide range of international

quality automotive safety glass, float glass, architectural processed glass and glass products.

AIS has a strong strategic position in the Indian glass industry. AIS is a leader in auto glass and

architectural processed glass segments and has prominent position in Float glass market.

AIS is jointly promoted by the Labroo family, Asahi Glass Co. Ltd., Japan and Maruti Suzuki

India Ltd. The promoters jointly hold 55.24% of paid up equity capital of AIS, with remaining

44.76% held by public.

Being a widely held listed public company with close to 62,000 shareholders, AIS remains

committed to maintain the highest standards of corporate governance and shareholder

accountability. The equity shares of AIS are listed on the Bombay Stock Exchange (BSE) and

National Stock Exchange (NSE) in India.

AIS is transforming itself from being a manufacturer of world-class glass and glass products to a

solutions provider by moving up the value chain of auto glass and architectural glass and

providing design, products and services that make glass more versatile and user-friendly.

AIS have the following three Strategic Business Units (SBUs):

Automotive Glass Unit – AIS Auto Glass

Float Glass Unit – AIS Float Glass

AIS Glass Solutions Ltd – AIS Glass Solutions

AIS Auto Glass is India's largest manufacturer of world class automotive safety glass and is, in

fact, one of the largest in the field in Asia. It meets over 80% automotive glass requirement of

the Indian passenger car industry.


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AIS Float Glass is the leading manufacturer of international quality float glass in the country.

Prior to its merger with AIS, it was known as Floatglass India Ltd.

AIS Glass Solutions is a value addition in the architectural glass business of AIS, addressing the

following segments:

Architectural Processing and Glass solutions

Product and Knowledge development

Glass Services – Sales & Marketing

The market and technology leader in the Indian Glass Industry, AIS continues to add to its

customer base and service offerings, while maintaining and enhancing product quality

Its ongoing efforts, to provide high quality products and reliable and excellent service to its

customers, are the key factors for AIS’s sustained success and leadership position in the Indian

glass industry.

AIS recorded gross sales and operating profits of Rs. 11742 millions and Rs. 2046 millions

respectively for the year ended 31st March, 2008.

Vision and Mission

Vision

AIS’s Vision is to “SEE MORE”

This byline captures AIS’s culture:

It describes AIS products and services which delight its customers by helping them see

more in comfort, safety & security.

It expresses AIS’s corporate culture of merit and transparency.

It defines the quality of AIS’s people to want to see, learn, and do more, in depth and

detail to transcend the ordinary.


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Mission

AIS’s Mission is “JIKKO” – Execution for Excellence

With major investments in place, the time is now to reap the benefits by execution for excellence

Guiding principles

All actions of AIS are driven by the following guiding principles:

Creation of value for Shareholders

Customer Satisfaction

Respect for Environment

Use of Facts

Continuous Improvement

Strengthening of Systems

Upgradation of Human Potential through education and training

Social Consciousness

Collaborators

Asahi Glass Co., Ltd., Japan

Asahi Glass Co. Ltd, Japan, was established in 1907. Today, it is one of the leading glass

producers of the world. AGC has a global network of over 350 subsidiaries and affiliates in

Japan and 20 and above other countries. The group’s operations comprise of flat glass,

automotive glass, and have recently diversified into display glass, chemicals, electronics and

energy.

AGC has evolved as a top multinational glass manufacturer with a leading share of the global

market in most key glass products. AGC group is the largest glass manufacturer of the world

with 12% global market share in the flat glass segment and 30% global market share in the

automotive glass segment. It has further captured the top share in CRT glass, TFT display glass

and PDP glass in the display field as well.


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For the year 2007, the AGC Group has recorded net sales of 1681 billions of yen, and with

Operating Net Income of 69 billions of yen.

SBU’S

AIS Auto Glass

OVERVIEW

AIS Auto Glass is the most reputed and trusted supplier in Indian automotive glass industry

having over 21 years of technological expertise and is the largest manufacturer of world-class

automotive safety glass in India.

AIS Auto Glass has been awarded the prestigious Deming Application Prize, 2007, certifying the

outstanding performance improvements achieved by it through application of Total Quality

Management (TQM).

Today, AIS Auto Glass has a ‘body of knowledge’ to be able to deliver ‘cutting edge’ auto glass

solutions and value addition to its customers, most of whom are global and demanding players.

AIS Auto Glass is overwhelmingly the ‘first choice’ supplier for most automotive manufacturers

in India. Hence, AIS Auto Glass is either the sole or a leading supplier of auto glass to most

passenger car manufacturers in India, supplying about 80% of their auto glass requirement.

Apart from supplying to OEMs in India, AIS Auto Glass has significant presence in the domestic

after-market with a market share of 43%. It also exports auto glass to the after-markets in Europe

and Pakistan.

AIS Auto Glass has state-of-the-art plants located at Rewari-Haryana, Roorkee-Uttrakhand

(North India) and Chennai- Tamil Nadu (South India) with a combined capacity to produce 2.81

million car sets per annum.


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Product Range

AIS Auto Glass is India's largest manufacturer of automotive safety glass. The unit

manufactures the full range of automotive safety glass, which includes:

Laminated Windshield

Tempered Glass for Side and Backlites

Silver Printed Defogger Glass

Antenna Printed Backlites

Black Ceramic Printed Flush Fitting Glass

Encapsulated Fixed Glass

Solar Control Glass

IR Cut Glass

UV Cut Glass

Reflective (PET) Windshield

Water Repellant Glass

Glass Antenna

Extruded Windshield

Clients

AIS Auto Glass : Share of Business

Customer SOB (%)

Maruti Suzuki India Ltd. 100

International Cars and Motors 100

Reva Motors 100

Honda Motors 100

Ford India 99

Toyota Kirloskar Motors 99


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Fiat India 83

Hyundai Motors 72

General Motors 67

Volvo India 57

Mahindra & Mahindra 52

TATA Motors 24

Piaggio 22

Hindustan Motors 17

Eicher Motors 13

Swaraj Mazda 5

Force Motors 1

Market Position

Sole supplier to almost the entire Indian passenger car industry, with a current market

share in excess of 80 %.

Significant presence in the after-market with a market share of over 43%.

Exporting auto glass to after-market in Europe and Pakistan.


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AIS Glass Solution

AIS Glass Solutions is the face of the architectural glass processing business of AIS. As a

separate business unit, AIS Glass Solutions focuses on offering innovative architectural glass

solutions to customers.

AIS Glass Solutions aims at raising per capita consumption of glass in the country to bring it at

par with the other developed countries in the world. It disseminates knowledge for increased

awareness of the use and application of architectural glass through innovative offerings.

AIS Glass Solutions has been supplying a wide range of high quality architectural processed

glass, comprising of toughened glass, laminated glass, insulated glass units and value added

glass products. It also caters to the project segment, meeting glass and related requirements of

construction projects.

Its product portfolio includes:

AIS Strong glass - impact resistant glass.

AIS Security glass - burglar resistant glass.

AIS Acoustic glass - sound resistant glass.

Glass products like shower enclosures, tabletops, shelves.

The state-of-the-art architectural glass processing facilities are located at Taloja (West India),

Chennai (South India), Rewari and Roorkee (North India). The Roorkee facility is the largest

architectural glass processing facility in the country.


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AIS Float Glass

OVERVIEW

AIS Float Glass is a premier manufacturer of international quality float glass and value-added

glass like reflective glass and mirror.

AIS Float Glass has state-of-the-art glass manufacturing plants located at Taloja near Mumbai

(West India) and Roorkee (North India) with a total production capacity of 1,200 tons per day

(TPD). Its newly commissioned unit at IGP Roorkee has manufacturing facilities for float glass,

superior quality heat reflective glass and new generation environment friendly mirror.

PRODUCT RANGE

AIS Float Glass offers a diversified product range of float glass in thickness of 2 mm - 12

mm in different shades and tints of clear, green, grey, bronze and blue in varying sizes. Its

product portfolio includes world-class range of international quality Supersilver heat-

reflective glass, the world’s finest quality "Environment Friendly" copper & lead free

premium AIS Mirrors, AIS Décor lacquered glass & AIS Krystal Frosted glass for interior

applications.


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Application Of AIS Glass

With its wide product range and its status as the undisputed quality leader, AIS Glass is

the natural choice in most of the application segments:

Window Glazing: AIS Float Glass’s superior strength, high optical clarity, distortion

free, smooth surface and bigger sizes give design flexibility, making it the natural choice

for all window glazing applications.

Curtain walls: Availability of AIS Tinted Float & AIS Heat Reflective Glass in various

shapes and sizes enable you to design the latest in curtain walls. Besides modern

expression, it reduces the overall dead weight of the building, allows faster construction

and requires less expensive maintenance. The heat-absorbing / heat-reflective

characteristic reduces the air-conditioning load substantially, thus saving precious energy.

Partition Walls: Due to its inherent strength and availability in large sizes, AIS Float

Glass can be extensively used for partitions. Glass partitions add to the aesthetics of the

room and give a feeling of spaciousness.

Doors: AIS Float Glass is extensively used in doors and entrances, exuding beauty and

elegance.

Shop-Fronts: Brilliantly clear and transparent shop-fronts made of Float Glass provide a

distinct image to a showroom.

Decorations: Modern expression, transparency, easy maintenance and non-

inflammability of AIS Float Glass makes it an indispensable material for display cabinets

Shop, partitioning, screening and designing modern and high-class Showrooms and

Shopping Malls.


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Furniture: AIS Float Glass, due to its versatility, is ideal for furniture, tabletops, shelves,

cabinets, showcases and sliding doors of large almirahs and cupboards etc.

Balustrades: The use of AIS Float Glass in balustrades gives a graceful effect to the

staircases.

Mirrors: AIS Float Glass gives perfect reflected images when mirrored. Also AIS

Mirrors, are world-class quality mirrors, being copper & lead free and corrosion resistant.

Automobile Safety Glass: AIS Float Glass Unit is the single largest supplier to the OEM

segment. Its European Green glass is used extensively in almost all premium cars.

Special Applications: AIS Float Glass can be further processed to be used for skylights,

atriums, museums, art galleries, aquariums, lifts, dance floors etc.

MARKET POSITION

AIS Float Glass enjoys 38.89 % market share in the Indian float glass market.

CLIENTS

The diversified product portfolio of AIS Float Glass includes float glass in varying sizes,

shapes and thickness. AIS's quality products make it the preferred choice of a wide range

of clients including


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Advantages of Float Glass over its Counterparts

Fuel Efficiency

The fuel efficiency is enhanced significantly in a float glass plant. Whereas in a sheet

glass plant, the best fuel efficiency is limited to 0.3 MT of furnace oil per tonne of glass, in the

float process, 0.18 to 0.20 MT of furnace oil is required to melt 1 tonne of glass.

Quality

Owing to the greater degree of quality control in the furnace conditions, the final product

is free from body defects such as waves, stones etc. The reason for this lies in the process itself:

the molten glass is formed on a bed of molten tin, improving the accuracy of glass immensely.

In the other processes, the molten ribbon of glass is drawn out mechanically between rollers,

making it vulnerable to variations in thickness. Thus the float process offers better quality.


Automotive Safety Glass Manufacturers

Processors

Dealers and Retailers

Architects

Interior Decorators

Builders

Aluminium Fabricators

Carpenters

Furniture Manufacturers

Household Consumers

With glass finding applications in an array of arenas, the client base of AIS Float Glass is

an ever-expanding one.

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Control

Because the product passes horizontally from one chamber to another, a greater degree of

inspection and quality control can be exercised unlike the other process where the glass is pulled

up against the force of gravity.

Variety

The float glass can be manufactured with thickness upto 19mm, to be used for applications such

as tabletops; furniture etc.This is not possible in sheet glass, as the glass would become brittle at

such high thickness.


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Market Research

Background

In the present era of cut throat competition there is a very little scope left out for the

companies to create differentiation in the products to compete, hence need to start brand

building exercise by way of creating perceived images of superiority over the competition . This

starts with the various kind of activities to be undertaken by the companies to create brand ,

among them one way is advertising. Indian commodity market ( in the building material segment

)such as cement, steel, aluminum, Glass has adopted various methods to enhance the demand for

their products, they have simultaneously invested sizeable amount of money in advertising to sell

their products and increase their market share. VARIOUS consultants and advertising agencies

were hired to create a difference but, “have they been successful in their efforts to create demand

or make any kind of impact on the demand or sale due to advertising or mass media campaigns.

Lots of subjective discussions (simply based on individual feelings and selected market

researches to show the positive impact, which can easily be contradicted by any other agency or

market research) have taken place and actually not yielded any results or tangible benefits which

can distinctively be observed or verified. Whenever organizations try to establish a relationship

between the advertising and the Top line, bottom line then efforts are put in to de link it so that it

goes to the expenses part rather than become a part of the cost. There is a need to re-examine and

evaluate the impact of advertising on the demand of commodity products and see what exactly

consumers are looking for. Once companies understand that branding is a necessary (and

profitable) part of doing business, the next logical question is — how do you brand?

Tactically speaking, there are numerous ways to go about branding. The look and feel of

the communications, the balance of advertising versus public relations versus grassroots, the

media used, etc., all reflect tactical aspects of the branding process. However, these are only

vehicles used to brand, and do not inherently lend themselves to developing a brand, per se. To

ensure a good, successful brand is the methodology used to develop and/or refine the brand in

the first place. In other words, just like a building, a good brand starts with a strong foundation.


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Sound branding practice begins with addressing five key attributes present in any effective

brand: uniqueness, relevance, credibility, sustainabiiity, and practicality.

Uniqueness

The average American is exposed to approximately 3,000 advertising messages per day.

That means everything from the logo on your watch, to product placement in television and

movies, down to traditional commercials and print ads. And all this static is in addition to

children, family, job and various other aspects of everyday life that are constantly vying for

attention. To break through all of the clutter, a brand has to stand out, has to be memorable — it

has to be unique.

Relevance

This attribute seems like a no-brainer, but it is an important check-off. If a brand is

positioned in a way that has no bearing in the life of the audience, then how can the audience be

expected to develop an affinity for the brand?

Credibility

Things can be true, but not necessarily believable. For instance, Kia brand automobiles

could spend hundreds of millions of dollars on the development of a luxury car that rivals BMW

in every aspect. However, it is a good bet that such an endeavor would fail. At the very least, Kia

could only command a fraction of the retail price of BMWs. The Kia brand has successfully

positioned itself as a low-cost automobile maker. People would simply not believe the company

had produced a car that was on par with BMW. The lessons here — don’t let your business stray

from your brand. Once credibility in your brand is lost, it is near impossible to regain it. Just see

Arthur Andersen, WorldCom or Enron.

Sustainability

This factor represents the most significant difference between advertising and pure

branding. An advertising campaign is finite, while a brand should theoretically be credible and

relevant forever. The core values inherent in a brand should reflect core human values. For


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example, Nike's core value is achievement. McDonald's core value is convenience. Citibank’s

core value is financial security. These values will be as relevant as in 2055 as they are in 2005,

which gives the brand consistency, staying power, and the ability to build consumer loyalty.

Advertising remains one of the cornerstones of marketing communications. However,

determining its impact on a firm’s performance continues to be a difficult proposition for many

marketing and advertising managers. Although firms in the USA spent over $230 billion on

advertising in 2001 (Coen, 2002), a clear link Between advertising expenditures and financial

performance remains somewhat Uncertain in many cases. One common belief is that advertising

creativity is an Essential element of advertising success (El-Murad and West, 2004; Smith and

Yang, 2004) and may lead to an improved financial performance, that is, as firms focus more

resources and develop more creative advertising, they will realize marginal benefits in the form

of higher sales, an increased market share and higher future earnings. While seemingly

reasonable, this particular belief fails to provide much more than an anecdotal basis for

determining the effects of advertising on a firm’s bottom line. While providing some useful

insights, these mostly academic studies typically failed to take into consideration the myriad of

other variables that also affect advertising effectiveness (e.g. differentiating message, repetition

and recall).


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IntroductionCan Advertising Contribute?

On the heels of what seems to be a never-ending series of attacks on advertising, two new

studies purport to reveal more evidence of its diminishing impact. For several years, respected

industry leaders have been assailing both advertisers and their agencies for lack of performance.

Some experts, such as Sergio Zyman, former advertising head at Coca-Cola, claim that ad

agencies have abandoned their basic responsibility to sell the brands they're paid to advertise.

Others, including noted author Al Ries, have gone even further, contending that advertising's

business building capabilities now pale in comparison to the "buzz" public relations can

generate. (See "Is Advertising Dead?" Adding fuel to this fire are two recently released studies.

The first, by Yankelovich Partners, maintains that the effectiveness of ad campaigns has been

declining markedly. It cites as evidence the apparent growth in consumers' negative perceptions

of advertising. According to Yankelovich, about 6 in 10 U.S. consumers report that they now

feel more negatively about advertising than they used to. Furthermore, they claim to "avoid

buying products that overwhelm them with advertising and marketing."

The second study, recently released by Deutsche Bank, is based on a more wide ranging

analysis of sales and marketing spending data. It concludes that TV advertising delivers, in most

cases, a negligible return on investment (ROI) for mature package-goods brands. According to

the Deutsche Bank data, only 3 of 18 major brands competing in established product categories

(ranging from beer to detergent and from snacks to toothpaste) could demonstrate financial

returns that exceeded the company's investments. In the other 15 cases, the companies were

simply spending more money than they were making. No bang for the buck Reports such as

these have caused consternation among advertisers and the agencies they've enlisted to create

and deliver sales-building and business-enhancing messages. Wall Street analysts and company

boards are increasingly expecting and demanding accountability for marketing expenditures. If,

as the Deutsche Bank data contend, major advertisers such as Coca-Cola, Heinz, and Colgate are

realizing no tangible business benefits from their expenditures, then ad money will likely be

reallocated to other, higher-return uses. The dilemma, of course, is to identify what those

alternatives might be. According to the Deutsche Bank report, the solution is not an increase in


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trade-promotion spending, as this tactic also falls short when it comes to ROI. So where are

companies to turn? What are these studies telling today's brand marketers? Perhaps, as some

have suggested, the solution is simply "better advertising." The argument is that the money is

squandered -- not because all Advertising is wasteful, but because too many companies have

been lured into creating ad campaigns that just don't work. Either marketers are employing the

wrong media mix (for example, relying on expensive and inefficient TV commercials), or they're

relying on the wrong selling strategies (such as creating messages that have little or no potential

impact). Does a company's advertising just need to "work harder"? Or is the real problem that

today's advertisers are heading in the wrong direction, and as a result, are making no apparent

progress toward meeting their ROI challenge? It appears that far too many companies operate

under an incomplete or erroneous model of how advertising can best contribute to building a

healthier brand. Consequently, they fail to hold their ads -- and their ad agencies -- accountable

for the end results they should be delivering.

Consider the Yankelovich study, which apparently equates "liking" advertising with its

impact. The study suggests that if people say they're feeling increasingly negative toward

advertising, then that means that advertising has increasingly less impact. This argument would

imply that the solution for enhancing the return on advertising expenditures would be to make

the ads more entertaining and fun to watch, hear, or read. But should that be the goal? Is

advertising's real purpose to entertain -- or to sell? As experts from David Ogilvy to Sergio

Zyman have pointed out, advertising's objective is not to be "fun to watch." Entertaining

consumers is not the reason companies invest billions of dollars in ads. Customer acquisition or

customer retention? What should advertising's goal be? What are the appropriate objectives for

today's marketers to pursue? These are the questions that marketers must answer as they rethink

their targets and reexamine their strategies. Some time ago, companies began shifting their

emphasis from customer acquisition to customer retention. That's because myriad published

studies have emphasized what has now become a management mantra: It costs a lot less to keep

a customer than it does to acquire a new one. (See "The Constant Customer" and "Maximizing

Return" in See Also.) Yet the goals that many companies set for their advertising have remained

essentially the same as they were decades ago, when brands were being launched and the aim

was to attract new customers. What are these stated objectives? What do today's marketers


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demand of their ad agencies? They want agencies to build brand and advertising awareness,

increase consumers' positive attitudes toward identifiable purchase motivators, and boost the

number of customers who state a positive intention to buy the brand.

But these measures all derive from a time past, when package-goods companies were

defining what marketing was all about (the "Four Ps" of product, place, promotion, and price)

and focusing on building brand share for frequently purchased, low-involvement consumer

products. And they were pursuing these goals through advertising that was designed and

executed to increase the brand's profile and make it more "top of mind." But those outcomes are

not the hallmarks of increased customer retention. Rather, they are indicators of the potential for

customer acquisition. As several Gallup Organization studies have pointed out, the health of a

company's customer relationships is reflected in the nature and depth of the emotional

connections that have been forged between the brand and the customer. (“Beyond Customer

Loyalty”) Brand awareness is an insensitive and even inappropriate indicator of the strength of a

company's customer relationships.

However, that may be exactly why the Deutsche Bank study has concluded that

advertising typically doesn't work for mature brands in mature categories. What should the role

of advertising be for brands such as Coke and Heinz? Should their ads focus on increasing the

awareness of these already-familiar names? Or should they seek to deepen and extend brand

relationships by enhancing the engagement of their current customers? The problem with

attacking the issue of advertising that reportedly doesn't work is that too many companies are

still defining what works according to an outmoded customer acquisition model. They are

looking at what it takes to generate trial, and that's a mistake. In a world that's now strongly

focused on customer retention, advertising must be designed, crafted, and held accountable for

its ability to enhance the customer relationship, not just initiate it. This means that company

marketers -- at least those who are marketing established brands -- must rethink not just what

they're spending, but what they're doing, what they're saying, and how they're monitoring their

progress. Unless advertisers and their agencies reexamine where they're heading and reconsider

what they're striving to achieve, marketers will continue to read bleak and scary reports about

advertising's lack of impact and effectiveness. Ad expenditures, already clearly in jeopardy, will


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decline. And the real promise and potential of advertising will, sadly, continue to be left

unrealized.

Marketers are too willing to concede that their products have reached commodity status.

That's a major reason why advertising effectiveness has suffered mightily. Here's the problem:

When companies treat their brands the same as their competitors', they no longer focus on

attributes of the brand itself as reasons to buy it. Instead, they talk about the people who buy the

product, or they make fun of the advertising -- anything to keep from admitting that their product

purportedly has no real advantage over the next guy's. So, when advertising is forced to get away

from concentrating on what makes it most effective and efficient -- tangible and meaningful

product benefits -- the result is likely to be disappointing.

It's amazing how sophisticated marketers make this mistake. The contention is that they are

selling their products short; that their products have advantages that can be exploited by great

advertising if only their custodians would look harder for the hidden gems buried deep within the

product -- or maybe just under the surface.

Although the agency is only too happy to oblige, the client is clearly the place to lay the

blame. After all, if the top guys at Miller Brewing Co. had insisted that their agencies dig out and

exploit attributes of their beers, instead of the weird people who drink their beers, they would be

gainfully employed today.

The agencies, of course, were glad to be let off the hook. It's hard work to come up with

an advantage that can give a product an edge and convey that advantage in a meaningful,

creative and entertaining way. How much easier to ignore the product altogether and focus on

the lifestyles of the consumers who use the product. That way, you can say anything you

want.It's easy to go down the road that says most products are the same. You see that most often

when companies are floundering.

Kellogg Co. is a sad case in point. Its troubles started when the cereal companies

drastically lowered the prices on their products, giving consumers the impression that they were

all the same. (Kodak did the same thing with its film.)


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When that line of thinking takes hold, management starts looking for non-product-related

things to talk about. So now, the head marketing guy at Kellogg concedes that, because "the

functional benefits are the same" from brand to brand, Kellogg is intent on creating a personality

for each brand -- and a relationship with its consumers.

If the "functional benefits" of a brand are all the same, how can the brand's personality be

distinct, other than by fabricating it out of whole cloth? A brand's uniqueness comes out of its

real and tangible product advantages.

“The moral of the story is that few consumer products are commodities unless their

owners concede that they are”. And because so many companies today are making that

concession, smart marketers have a terrific new weapon at their disposal.

Marketing is at the top of the list because this is the area where rigorous financial

evaluations have not been used extensively to justify the expenditures within a firm.

Manufacturing costs have been reduced from 50 per cent to 30 per cent, and general

management costs have also declined as a proportion of the total corporate costs from 30 per

cent to 20 per cent, but in contrast to manufacturing and general management costs, marketing

costs have increased significantly from only 20 per cent of the total corporate costs 50 years ago

to 50 per cent today. In spite of the huge marketing expenditures, managers frequently do not

have concrete measures or knowledge of what is obtained in return from a significant investment

in marketing. Moreover, many have doubted that definite quantitative measurements of

marketing effectiveness could ever be made

Problem Formulation

The impact of advertisement on the demand of commodity product specifically Glass is

to be find out. India is the only country where glass as commodity product is being advertised on

TV. The huge amounts of investment in ads are happening in the industry. But their

effectiveness in impacting consumers mind for using more glass is not clear. Do the

advertisements help the company in commanding more market share, has become the main issue.

The connection of ad to the top and bottom line of the company is not yet established clearly for


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the commodity product such as glass. The perception of consumers towards glass is still very

traditional as that of fragile nature etc. The relationship between glass buying behavior and the

awareness towards the brand among the commodity glass market is to be figured out. All these

issues are the rationale behind choosing this research study.

Literature Review

RIEDESEL (2002) COMMENTS that the modeling of company sales and income as a function

of three types of media spending using Data Envelopment Analysis (DEA) by Luo and Donthu

(2001) is questionable. He acknowledges that the relationship between media spending and

company sales may be reciprocal, but the impact of sales on media spending is more direct than

vice versa. First, there are numerous marketing, management science, econometrics, and

advertising studies that have established the causal relationship from media spending to sales

volume ( Aaker and Carman, 1982; Feinberg, 2001; Mesak, 1999; Simon and Arndt, 1980;

Stewart, 1989). Danaher and Rust (1994) theoretically propose that optimal level of media

spending can be achieved by maximizing the advertising productivity/efficiency. Following this

school of research, we believe that the amount spent on different media such as broadcasting,

print, and outdoor can be treated as DEA inputs, while sales and income as DEA outputs.

Second, while some firms may be using a fixed percentage of previous sales as current

media spending budget, the approach is ad hoc and not supported by science. One hopes that

many firms are actually setting advertising budget based on future sales goals. However,

irrespective of how advertising budgets are set, advertising expenditure may or may not be

efficient (given level of advertising may produce different levels of sales) and DEA can be used

to investigate this.

It is not the setting of the budget that creates sales but the spending of the budget. If sales

fall below or above projected levels, real-time changes have to be made in spending. DEA can be

used to model such contemporaneous spending/sales data.

Finally, a pure empiricist may argue that DEA is a correlation technique used to analyze the

relationship between two sets of variables.


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In conclusion, advertising theory dictates that media spending be treated as inputs and sales be

treated as outputs. Media spending should reflect sales goals. Irrespective of how advertising

budgets are arrived at, inefficiencies exist in advertising and that inefficiency can be

benchmarked using DEA. ( Mehir Kumar Baidya and Partha Basu Measurement and Analysis

for Marketing 2008) did one study with the aim to check the impact of individual marketing

efforts (advertising, sales force , promotion, distribution and price) on sales and overall customer

satisfaction for a brand by taking into consideration both the financial and non financial aspects

of the measurement. The return on- investment (ROI) has been calculated for each effort on the

basis of sales The findings suggest that all the marketing efforts have significant positive impact

on sales except price. Moreover, all the marketing efforts have significant positive effects on

overall customer satisfaction for the brand. Furthermore, among all the marketing efforts the

adjusted ROI is the highest for sales force. These results will assist the managers in allocating the

resources to different marketing efforts in a better manner, so as to improve the effectiveness of

marketing expenditures.

Stone and Duffy , and Basu and Batra used the judgmental and mathematical

(ADSPLIT) models to frame the relationship between sales and advertising expenditures. Both

studies used response function to allocate marketing budget to advertising as well as to different

brands.

Effects of sales promotion : (Bawa and Shoemaker) performed a study to identify the influence

of sales promotion activities on customers ’ brand choice behaviour. The authors found that sales

promotion activities have short-term and long term positive effects on the brand choice

behaviour of customers. In the same direction, Jones made an attempt to examine the short term

and long-term impact of sales promotion activities on sales by a multivariate technique

Regression model estimation indicates that the short-term effect is more prominent than the

long-term.

The author found that the effect of a low price on attracting buyers depends on the level

of advertising. The high advertising plan produces sales 50 per cent above the low plan at the

base price. At the middle price it was 34 per cent, and at the highest price with the high


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advertising level it was only 11 per cent.( Effectiveness of marketing expenditures © 2008

Palgrave Macmillan Ltd 0967-3237 Vol. 16, 3, 181–188 Journal of Targeting, Measurement and

Analysis for Marketing 183).

Customer Satisfaction Studies: Anderson analysed a database matching the CSI with

ROI, and the productivity of each company covered by the Swedish Customer Satisfaction

Barometer (SCSB) from 1989 to 1992. Regression model estimation indicates that the

coefficient for the direct relationship between the customer satisfaction and ROI is positive and

significant. Similarly, Ittner and Larcker 12 extend this study by using stock price as a dependent

variable and CSI as an independent variable. The authors found that the estimated regression

coefficient is 7.36. This shows that customer satisfaction has a positive impact on shareholder

value.

Advertising remains one of the cornerstones of marketing communications. However,

determining its impact on a firm’s performance continues to be a difficult proposition for many

marketing and advertising managers. Although firms in the USA spent over $230 billion on

advertising in 2001 (Coen, 2002), a clear link between advertising expenditures and financial

performance remains somewhat uncertain in many cases. One common belief is that advertising

creativity is an essential element of advertising success (El-Murad and West, 2004; Smith and

Yang, 2004) and may lead to an improved financial performance, that is, as firms focus more

resources and develop more creative advertising, they will realize marginal benefits in the form

of higher sales, an increased market share and higher future earnings. While seemingly

reasonable, this particular belief fails to provide much more than an anecdotal basis for

determining the effects of advertising on a firm’s bottom line. In addition, while positive returns

are expected, this type of unsubstantiated claim has become unacceptable as more marketing

managers are being asked to validate the links between traditional marketing variables and

financial performance (Jedidi et al., 1998).

Although the search for the true value of advertising has led to the completion of

numerous experimental and econometric studies, evaluating the effectiveness of specific

advertising campaigns continues to be problematic for practitioners and academics alike. For the


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most part, past studies have tended to focus on a handful of ‘executable devices such as the use

of humor, sex, and celebrity presenters’ (Stewart and Furse, 2000, p. 85). While providing some

useful insights, these mostly academic studies typically failed to take into consideration the

myriad of other variables that also affect advertising effectiveness (e.g. differentiating message,

repetition and recall). Exceptions to these fairly limited studies are practitioner studies that rely

on an experimental design and use single-source data (e.g. Eskin, 1985; Lodish et al., 1995).

Such studies are able to estimate advertising performance by tracking the actual purchasing

behaviour of a sample of consumers (via retail scan cards). However, while providing useful

insights, many of these experiments were not well documented in terms of methodology (Stewart

and Furse, 2000) and were very expensive, technically difficult to conduct and relied heavily on

the ability for tracking exact consumer purchasing patterns carefully. While both categories of

studies have helped to extend our general understanding of how advertising affects firms’

performances, more research is needed.

Consequently, a number of empirical studies have recently been conducted in order to

extend our understanding of the links between specific aspects of a firm’s advertising function

and various financial performance measures (e.g. market share, profitability and stock price).

While market share and profitability continue to demand attention as managers attempt to link

their decisions to financial outcomes directly, many researchers have opted for a more unique

approach and have begun to examine the impact of specific marketing and advertising decisions

on expected future earnings (as manifested in higher or lower abnormal stock returns).

Specifically, researchers have explored the links between stock price and the use of celebrity

endorsers (e.g. Ohanian, 1991; Agrawal and Kamakura, 1995; Mathur et al., 1997; Farrell et al.,

2000), corporate sponsorship and the marketing of sporting events (e.g. Miyazaki and Morgan,

2001; Tomkovick et al., 2001), changing a company’s name (Horsky and Swyngedouw, 1987)

and changing a firm’s advertising slogan (Mathur and Mathur, 1996). However, while some

progress has been made in this area, more research is needed.

Managerial relevance. Jointly examining weight and content effects on market response

can be extremely appealing to brand managers who try to strike a balance between copy and

weight and may ultimately help them achieve higher advertising efficiencies. The results of

MacInnis et al. are encouraging, since they suggest that media expenditures are not a waste of


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money when combined with the appropriate type of copy appeal (in their case emotional) in

mature markets. Similarly, the implications of the study by Chandy et al. [3] may help managers

in copy-changing decisions depending on the maturity of the market they compete. The approach

suggested in Reference [7] can be used when advertising appeals are ambiguous and need to be

inferred by examining their effects on response.

Long-term effects and hysteresis

Although the long-term effectiveness of advertising has long been a popular subject of

academic research with the Koyck model being the main methodological tool (e.g. Reference

[8]), in recent years new paradigms in the study of long-term advertising effects have emerged.

Most notably, Dekimpe and Hanssens [9, 10] proposed the use of ‘persistence modelling’ to

study long-term advertising effects. Applying vector auto-regressive (VAR) models to data from

evolving markets, Dekimpe and Hanssens essentially redefine what should be considered as

‘long term’ and contrast it with the more traditional Koyck modelling approach. Koyck models

may be applied to stationary markets but their advertising effects cannot be permanent (and thus

really ‘long term’), because market performance in these markets reverts to its mean. In

evolutionary

markets, however, market performance can exhibit permanent increases and if such increases can

be attributed to advertising spending then advertising effects may be considered long term.

More specifically, Dekimpe and Hanssens [9] estimated a VAR model using home-improvement

chain sales and advertising data.

A relevant, but not identical, approach to measuring long-term effectiveness of

advertising is to examine whether it causes hysteresis, a concept introduced in the marketing

literature by Simon [12]. Hysteresis suggests that a temporary increase in advertising

expenditures can lead to a permanent increase in market performance (sales). The critical

assumption in the econometric modelling of hysteresis is that there is not a one-to-one

relationship between advertising and market performance, since decreasing advertising to its

previous level would not affect sales but increasing advertising from the same level would. In

other words the ‘sales path’ is different for decreases from, than for increases to any level of


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advertising spending. Hanssens and Ouyang [13] empirically examined hysteresis in the

computer printer market. They distinguish between full hysteresis, where temporary changes in

advertising cause permanent changes in sales without needing additional spending to maintain

the new high sales levels, and partial hysteresis, where some maintenance advertising is needed.

Their empirical results provided evidence for partial hysteresis caused by print media

advertising.

The studies by Mela et al. [14] and Jedidi et al. [15] offer an alternative approach to

studying long-term advertising effects. The first study looks at the effects of quarterly

advertising expenditures on quarterly price sensitivities, while the second examines the

cumulative effects of advertising on choice and quantity and their short-term pricing and

promotion sensitivities.

Advertising effects on stability of performance

While recent research has addressed the issue of advertising effects in evolutionary

markets, the question remains whether advertising has a significant impact on mature markets.

The results reported in Reference [5] are encouraging as they suggest that increased advertising

effort can increase sales in mature markets. However, the ‘maintenance’ role of advertising in

mature markets (see Reference [33]) should also be investigated. In other words, whether

advertising contributes to the stability of a brand’s performance, since many markets especially

for frequently purchased goods are mature The issue may be of greater importance for big brands

that would like to maintain leadership in a market but it could also be important for smaller

‘niche’ brands that enjoy a healthy profit margin and are satisfied with their market position.

There are two possible approaches to modelling advertising effects on stability of performance.

One is to examine the effects of advertising on the variance in the performance (sales or share) of

a brand across time. If advertising is expected to increase performance stability, it should

decrease variance in performance. To make comparisons meaningful across } It should also be

acknowledged that recent research has started examining the effects of advertising/marketing

expenditures on financial metrics (see for example Reference [29]). kFor example, P&G,

Unilever and GM are the top three media spenders worldwide. Although they do introduce new


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products annually, they also support a lot of mature brands.(Copyright # 2005 John Wiley &

Sons, Ltd. Appl. Stochastic Models Bus. Ind., 2005; 21:351–361 358 D. VAKRATSAS)

The specification of advertising effects on the variance of performance should follow

from the specification of advertising effects on the mean performance (e.g. Reference [34]),

which may complicate matters. Furthermore, showing that advertising contributes to lower

variance in performance may not easily convince managers to continue investing in advertising

since performance variance is not explicitly linked to profitability.

An alternative approach to evaluate advertising’s ‘maintenance’ role would be to look

fordifferential effects of increases and decreases in advertising. In other words, a mature brand’s

performance may be resistant to advertising increases (due to ‘ceiling’ effects) but may be

sensitive (declining) to advertising decreases (due to lack of critical support). The implication

then would be that although advertising does not lead to increased performance, it helps maintain

it as declining advertising spending would result in deterioration of brand performance. This is

conceptually the opposite of hysteresis, where brand performance is resistant to advertising

decreases, as it focuses on losses in performance as a result of lower advertising investment.

Both approaches to measuring maintenance effects need sufficient variability in the data in order

to produce reliable results (see Reference [35]), which may be difficult to attain as such studies

should be carried in mature markets where managers may not change status quo advertising

practices.

Europe shows that advertising recall is lower in countries with higher levels of television

advertising. Specifically, yfield and Nazaroff (2003) report that in Denmark, where there are

only 80 average television exposures per week per person, the Millward Brown awareness index

is 150 (compared with the U.K. benchmark of 100).1 However, in Italy, where there are 300

average exposures per week per person, the awareness index drops to only 50. Thus, an effect of

increasing advertising levels is to decrease the recall of all advertisements. In addition, academic

studies have found lower ad recall and recognition in the presence of too much advertising from

competitors (Burke and Srull 1988; D’Souza and Rao 1995; Keller 1987, 1991). Increasing

advertising content on television also increases ad avoidance behavior (Danaher 1995; Lafayette


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2004), such as channel switching or time-shift viewing with a personal video recorder (Green

2003).

A commonly used term to describe the presence of high levels of advertising is “clutter.”

For television, clutter is the combination of commercials and other nonprogram material,such as

program promotions and public service announcements. The increase in clutter over the past 40

years is due to both an increase in nonprogram time and an increase in the number of 15-second

commercials (Brown and Rothschild 1993; Kent 1995). The topic of increasing advertising

clutter is one of the most publicized issues in the advertising trade literature and continues to be

one of the greatest concerns facing the advertising industry (Chunovic 2003; Lafayette 2004).

Kent (1993) makes a distinction between competitive and noncompetitive clutter. Competitive

clutter, which is also called “competitive interference” (Burke and Srull 1988; Kent and Allen

1994), is clutter that arises from advertisements delivered by competing brands (within a

category) at or near the same time and place as those for a focal brand.Kent (1993, 1995) finds

that competitive clutter has a more harmful effect on ad recall than noncompetitive clutter. In

this study, we focus on competitive clutter.

Most previous research on brand advertising interference has been conducted in

laboratory settings, in which participants are exposed only to commercials and no editorial

material (Burke and Srull 1988; Keller 1991; Kent and Allen 1994), resulting in limited external

validity. Other studies of this topic have used unfamiliar brands, which Kent and Allen (1994)

show are more prone to interference effects. Finally, previous marketing studies have examined

the effect of competitive interference on recall, recognition, or brand evaluations rather than the

all-important effect on sales (East 2003, p. 19).

Advertising response models with managerial impact: an agenda for the future Faculty of

Management, McGill University, 1001 Sherbrooke St. W, Montreal, QC H3A 1G5, Canada

ALBA, Athens, Greece.This paper discusses recent advances in advertising response models and

identifies new opportunities for managerially relevant research. First, it establishes that recent

research has shifted attention from topics such as duration of advertising e ects in matureff

markets and short-term advertising elasticities to issues such as combined e ects of ad contentff

and weight and e ectiveness in evolving markets. Then, motivated from recent trends inff


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advertising practice, it presents a research agenda consisting of four main topics: (1) new media

and forms of advertising (e.g. product placement), (2) media synergies, (3) advertising

productivity and (4) advertising e ects on performance stability. Copyright # 2005 John Wileyff

& Sons, Ltd. This paper has two main objectives. The first is to discuss new research findings (of

the last ten years) in advertising response research, their implications for managers and their

importance for broadening the scope of advertising research. The second objective is to propose

an agenda consisting of four new areas of research: non-traditional media, media synergies,

advertising productivity and advertising’s role in performance stability. The choice of these four

issues was based on their practical relevance and the lack of su cient academic research toffi

consider them resolved. The discussion of the proposed research agenda includes suggestions for

potential methodological approaches, data requirements and measurement. Given the focus of

the paper on advertising response models, the discussion mainly concerns empirical econometric

studies that use market-based performance measures (e.g. sales, share).

Marketing managers are under increasing pressure to justify marketing spending. The

issue of quantifying the returns to marketing activities in financial terms is one of the greatest

challenges facing marketing and brand managers today. For example, Rust and colleagues (2004,

p. 76) note that marketers have not been held accountable for showing how marketing adds to

shareholder value and that “this lack of accountability has undermined marketers’ credibility,

threatened the standing of the marketing function within the firm, and even threatened

marketing’s existence as a distinct capability within the firm.”

Brand-The initial framework, developed in the 1990s, was based on four pillars:

differentiation, relevance, esteem, and knowledge (Agres and Dubitsky 1996). Implications from

this model have helped shape thinking on various brand issues. For example, Aaker (1996, Chap.

10) uses the BAV model as one of the key inputs into formulating his “brand equity ten” and has

continued to make use of the framework to highlight the crucial role of differentiation in brand

building (Aaker 2004, p. 136; Aaker and Joachimsthaler 2000, p. 263). Y&R recently modified

its framework and introduced a fifth pillar called “brand energy.”1 The measure is based on the

Y&R survey questions reflecting the degree to which the brand is viewed as (1) innovative and

(2) dynamic.


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The Pillars of the Initial Y&R BAV Model

Researchers have repeatedly established that the brand beliefs generated by an

advertisement affect consumer perception of the physical product during subsequent trial (e.g.,

Deighton and Schindler 1988; Kempf and Laczniak 2001; Kempf and Smith 1998; Marks and

Kamins 1988; Olson and Dover 1979; Smith 1993). However, those studies have typically

exposed consumers to the physical product shortly after exposing them to advertising. It is

therefore likely that in the marketplace a more extensive time lag occurs between both exposures

with beliefs decaying over time and that effects exist from perceived product physical attributes

on specific post experience brand beliefs in such cases (Kempf and Smith 1998).

Advertisement Effectiveness

The role of advertisement is to

Give your customer the reason to keep buying from you

Attract Must -Have customers to try your products

Increase the sales and profits

(Core customers are company’s most loyal customers who are willing to pay a fair

price for a product or service. Must-Have customers are people who could become

the core customers, but they currently do business with the competition.

Advertisement effectiveness can be checked a process call “Plus Over Normal”. To determine

the Plus over Normal results every ad is benchmarked against the normal business baseline. The

lift from the ad is sales can then be evaluated.

There are only three measures of advertising effectiveness:

Did core customers increase their spending with the company after seeing my advertising?

Did any Must-Have customers start doing business with the company after seeing the advertising?

Did the ads generate a net profit?


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The Effects of Advertising and Brand Value on Future Operating and Market

Performance

Li Li Eng and Hean Tat Keh

This paper examines the joint effects of advertising and brand value on the firm’s future

operating and market performance. We operationalize future operating and market performance

as future accounting returns and future stock returns, respectively. Our results show that both

advertising and brand value improve future accounting returns at the firm level. The impact of

advertising and brand value on future stock returns is minimal. We find that spending on

advertising results in better brand sales and brand profitability. Brand value is also a good

predictor of brand performance. Thus, we conclude that advertising and brand value benefit the

brand and the firm through improved accounting performance. In this paper, we investigate the

impact of advertising and brand value on future operating and market performance. Key

intangible assets such as brand value (or brand equity), product differentiation, and goodwill are

the outcomes of investment in advertising. It is generally believed that advertising contributes to

the creation of brand value (Chaudhuri 2002; Chu and Keh 2006; Kimelman 1993; Sheinin and

Biehal 1999). Mizik and Jacobson (2003) argue that brand-based advertising can create a

comparative advantage for firms through its ability to differentiate the firm’s product. The brand

can be a formidable barrier to imitation, as brand equity is difficult for competitors to copy,

becoming an effective entry deterrence strategy. Industry observers and analysts note that many

companies continue to emphasize brand-building activities. For example, Samsung has been

rated by Interbrand, a brand-consulting firm, as the fastest-growing brand over the past few years

(“Yun Jong Yong” 2004). The CEO of Samsung, Yun Jong Yong, has been instrumental in

driving the creation of its brand value, claiming, “Our future will depend on our brand equity.”

While brand value creation is generally regarded as a “good thing,” we need to have

more concrete measures of brand value appropriation (i.e., extracting profits from brand value).

Merely knowing the effect of brand value on purchase intent (Cobb-Walgren, Ruble, and Donthu

1995) is inadequate; Chaudhuri (2002) proposes a stylized model of how brand reputation affects

the advertising–brand equity link. Using survey data, the models brand reputation as a mediator


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on the effect of brand advertising, brand familiarity, and brand uniqueness on brand equity

outcomes. His results suggest that advertising directly or indirectly affects brand equity

measured as brand sales, market share, and relative price.

Second, firms spend large amounts annually on advertising and brand value creation with

the expectation of reaping returns in the future. As such, it is important to examine not only the

contemporaneous effect of advertising or brand value on firm performance, According to Low

and Mohr: “To be sure, advertising is vital to brand equity. However, advertising, per se, is not a

sacred cow that should necessarily be part of every year’s marketing allocation. Monies should

be allocated to advertising only if it has a clearly defined role within that year’s strategy for

meeting a brand’s goals” (1999, p. 72). They reached this conclusion via a qualitative study

using 21 in-depth interviews. Our review of the literature indicates that previous research has not

specifically measured the impacts of advertising and brand value, and their joint effect, on firm

performance. By examining the effects of advertising and brand value, our work contributes to

the existing literature.

There have been numerous studies, however, on the individual effect of advertising on

the persistence of profits (e.g., Mueller 1990), implying that excess returns erode more slowly for

firms that advertise heavily. For example, Chauvin and Hirschey (1993) provide evidence that

advertising expense has a positive influence on the market value of the firm. They suggest that

spending on advertising can be viewed as a form of investment in intangible assets with positive

effects on future cash flows. When Erickson and Jacobson (1992) control for the endogeneity

between discretionary expenditures and profitability, however, they find that advertising

generates substantially lower accounting and stock market returns than indicated in previous

research. In a recent study, Chu and Keh (2006) investigate the effects of advertising, promotion,

and R&D expenses on brand value creation. They find that these lagged expenses yield

diminishing returns to brand value.


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Gaps in The Literature1. In my limited literature survey it has come to my notice that lot of work has been done on

the packaged goods or consumer durables but unfortunately ,we could not find any study

done on the commodity products related to brand preference or advertising effectiveness.

Even if something has been done and we missed out still we feel it is an unexplored area

in India, and behavior pattern can’t be compared with any western country. It is

interesting to note that no where in the world glass is branded or advertised, it is only in

India which was started by an American company in 1994.

2. We could not find the study which talks the likeable attributes in commodity products

like glass. What exactly customers are looking for in a glass?

3. Lot of efforts have been put in by the various researchers to establish a linkages between

advertising and key performance indicators of the company but no conclusive equation

could be found out , mine also will be one more attempt for commodity products .

4. We could not find any work on the commodities, what kind of adv copy is suitable to

influence the consumers when there is no differentiator available.


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Table 5: SUMMARY OF LITERATURE REVIEW

Researcher and source Subject Highlights and conclusion Gaps

Simon and Arndt (1980),

Aaker and Carman, 1982;

Stewart, 1989) Danaher and

Rust (1994) Mesak, 1999;

Feinberg, 2001;

advertising studies that

have established the causal

relationship from media

spending to sales volume

Some firms may be using a fixed

percentage of previous sales as

current media spending budget,

the approach is ad hoc and not

supported by science. One hopes

that many firms are actually

setting advertising budget based

on future sales goals.

No conclusive

equation could be

found out.

Mehir Kumar Baidya and

Partha Basu Measurement

and Analysis for Marketing

2008

The impact of individual

marketing efforts

(advertising, sales force ,

promotion, distribution and

price) on sales and overall

customer satisfaction for a

brand by taking into

consideration both the

financial and non financial

aspects of the measurement

All the marketing efforts have

significant positive effects on

overall customer satisfaction for

the brand. Furthermore, among all

the marketing efforts the adjusted

ROI is the highest for sales force.

Study was conducted

on Hair care product

navratna oil and

emami. Nothing

related to the

commodity products.

Customer Satisfaction

Studies : Anderson from

1989 to 1992

Analysed a database

matching the CSI with

ROI, and the productivity

of each company covered

by the Swedish Customer

Satisfaction

Barometer(SCSB)

Regression model estimation

indicates that the coefficient for

the direct relationship between

the customer satisfaction and ROI

is positive and significant.

Similarly, Ittner and Larcker 12

extend this study by using stock

price as a dependent variable a

No relationship

between advertising

and market share

(Stewart and Furse, 2000, p.

85).

Executable devices such as

the use of humor, sex, and

celebrity presenters’

These experiments were not well

documented in terms of

methodology and were very

expensive, technically difficult to

conduct and relied heavily on the

ability for tracking exact

consumer purchasing patterns

Could not establish

the direct link.


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carefully. While both categories

of studies have

Dekimpe and Hanssens Estimated a VAR model using

home-improvement chain sales

and advertising data.

Simon [12]. Long-term effects and

hysteresis

Hysteresis suggests that a

temporary increase in advertising

expenditures can lead to a

permanent increase in market

performance (sales). The critical

assumption in the econometric

modelling of hysteresis is that

there is not a one-to-one

relationship bet

Hanssens and Ouyang

[13] empirically

examined hysteresis

in the computer

printer market. They

distinguish between

full hysteresis, where

temporary changes in

ad cause permanent

changes in sales

without needing

additional spending.

Time Frame

Literature Survey Throughout

Questionnaire Design, Pilot survey,

finalization of questionnaire

2 week

Actual Survey 3 week

Data collection 1 week

Data Analysis 1 week

Report Writing 1 week


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The Research Problem

The research problem is to find out the impact of advertisement on demand of commodity

product specifically glass.

Research Objective

Based on the problem statement, the research objectives are:

Primary objectivesThe following objectives have been identified:

To find out whether consumers are really involved in Glass buying decision if yes then to

what extent?

To find out, Are consumers really aware of any Glass or cement Co, brand or Glass

products?

To find out Does advertising has any impact in the minds of consumers?

Can the advertising be measured or connected with a equation to the top and bottom line

of the company.

To find out, what attributes consumers are looking for in a glass or cement brand? Can

any value addition be done in a brand through TV advertising?

To find out whether TV advertising can help in building brands for commanding

premium or more market shares in commodity products?

Secondary objective

To find out the advertisement effectiveness on demand of glass.


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Null hypothesis

1. There is no relationship between awareness of glass brand and income category.

2. End Consumers buying decision is greatly influenced by TV advertising and they tend to

think that it is a better Quality product.

3. End Consumers are aware of all the glass brands available in the market and they tend to

ask for a particular brand.

4. The end consumer’s decision to choose any brand is not affected, if they get impressed

by advertisement.

Alternative hypothesis

1. There is relationship between awareness of glass brand and income category.

2. End Consumers buying decision is not greatly influenced by TV advertising and they

don’t tend to think that it is a better Quality product.

3. End Consumers are not aware of all the glass brands available in the market and they

don’t tend to ask for a particular brand.

4. The end consumer’s decision to choose any brand is affected, if they get impressed by

advertisement.

Scope of The Study

The study will be conducted in India with limited scope of A and B class cities where 80%

(building material) commodities are sold. Primary focus of the study will be on Glass. The most

of the survey is limited to Mumbai and nearby city around it.

Research Design

Research is going to be descriptive as well as applied in order to achieve the desired

objectives. The null hypothesis and the research hypothesis has been developed keeping


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assumption that the research will be specifically for the commodity product glass and keeping all

the factors affecting the glass buying constant other than advertisements.

Research Methodology In this study, both sample survey and statistical approaches will be applied to collect data and

establish the relationships between variables of interest. Sources of data: Both secondary

(Documents and Records of the company, Annual report) and primary (a sample SURVEY of

customers and channel partners (Builders, Dealers, Retailers, Architect) data sources will be used

in this work.

Sample sizeSample size is going to be decided once strata of samples are decided in different cities.

ss =

Z 2 * (p) * (1-p)

c 2

Where:

Z = Z value (e.g. 1.96 for 95% confidence level)

p = percentage picking a choice, expressed as decimal((.5 used for sample size needed)

c = confidence interval, expressed as decimal (e.g., .04 = ±4)

Determine Sample Size

Confidence Level: 95% 99%

Confidence Interval:


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Population:

Sample size needed:

Using the above formula and Sample Calculator,

(Source:- http://www.surveysystem.com/sscalc.htm) the sample size was calculated:

Where the Confidence interval = 6.37

Confidence level = 95%

Hence the sample size was calculated as 212.

Type of Respondents Number of Respondents

House Owner 120

Architect 21

Dealers 23

Retailer 21

Builder 27

Total 212

Research InstrumentThe questionnaire is divided into three categories as Category 1, Category 2, and Category 3.

Category 1 for House owner (End Consumer)

Category 2 for Architect, Retailer and Dealer

Category 3 for Builder


http://www.surveysystem.com/sscalc.htm

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The questionnaire has different sets of question taking the objectives into consideration.

The first part having 5 questions for finding customer involvement in the buying process of

glass and in other commodity products.

The second part contains questions relating to customer’s thinking towards glass and its

usage/application.

The third part contains 10 questions to know about the customer’s emotional reactions towards

advertisements.

The fourth part 5 questions, which measures the different medium affecting customer’s

reactions towards the brand awareness and their influence on buying process.

The fifth part has 3 questions, which measure the perception of different brand of glass in the

mind of customer’s on different parameters such as the product quality to check the various

attributes he is looking for in a brand and the customer ’ s overall satisfaction with the brand.

All the statements of these five parts have been framed on a five-point Likert scale ranging from

‘strongly agree’ to ‘strongly disagree ’ etc.

It also has ordinal scale and Nominal scale based question based on a binary (Yes /No) response

format.

Few open ended questions are also asked to know about the specific liking towards ads.


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Tool of Data Analysis (SPSS)The SPSS software has been used as tool for the data analysis. The following tests were

performed on the testing of hypothesis and for understanding the analysis.

1. Chi-square test

2. Correlation

3. Regression

4. Cross-Tabulation

5. Descriptive analysis

6. Discriminant analysis

7. Frequency distribution

Results and ConclusionAll the graphs having count on Y-axis and variables/parameters on X-axis have the value in

percentage of the respondents on the graph as label. They Y-axis corresponds to count and the

label on the graphs corresponds to the percentage of the respondents out of the total sample

size.

Hypothesis 1: There is no relationship between awareness of glass brand and income category.

The Chi-square test is performed to check the fit between the awareness of glass brand

and the income category. For this cross-tabulation function is used.

Aware of any glass brand * Family annual income Crosstabulation

Count

Family annual income

Total3-5 lakh 5-7 lakh Above 8 lakhAware of any glass brand

Yes 0 65 12 77No 8 9 22 39

Total 8 74 34 116

Chi-Square Tests


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Value dfAsymp. Sig.

(2-sided)Pearson Chi-Square 45.785(a) 2 .000Likelihood Ratio 49.199 2 .000Linear-by-Linear Association

3.396 1 .065

N of Valid Cases116

a 1 cells (16.7%) have expected count less than 5. The minimum expected count is 2.69.

Yes No

Aware of any glass brand

0

10

20

30

40

50

60

70

Co

un

t

6.9%

56.03%

7.76%10.34%

18.97%

Family annual

income

3-5 lakh

5-7 lakh

Above 8 lakh

Figure 6: Awareness of Glass brands

As the Chi-square tests shows the significant value < 0.05. Hence the null hypothesis is rejected.

Hence, the awareness of brand is directly related to the family income category. From graph we

see those High income categories (> 8 lakh) are well aware of brand whereas the middle income

level is not aware of glass brand specifically.


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Suggestion:

The advertisements activities should be targeted on the middle segment. The awareness can be

increased by involving into the PR activities and through tie-ups with the social

society/community like BMC and CARE to increase the awareness level among the middle

income category.

Hypothesis 2: End Consumers buying decision is greatly influenced by TV advertising and they

tend to think that it is a better Quality product.

The Correlation test is used to find out the relationship between the influence of ad and

perception towards better quality product.

Crosstab

Count

Better Quality Brand

TotalDisagreeHave no opnion Agree

Strongly Agree

Have seen the ad of glass

Yes 51 0 36 2 89No 15 1 12 3 31

Total 66 1 48 5 120

Symmetric Measures

Value

Asymp. Std.

Error(a)Approx.

T(b) Approx. Sig.Interval by Interval Pearson's R .091 .094 .998 .320(c)Ordinal by Ordinal Spearman

Correlation.091 .094 .998 .320(c)

N of Valid Cases 120

a Not assuming the null hypothesis.b Using the asymptotic standard error assuming the null hypothesis.c Based on normal approximation.


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Yes No


0

10

20

30

40

50

60

cou

nt

42.5%

12.5%

0.83%

30.0%

10.0%

1.67% 2.5%

Better Quality

Brand

Disagree

Have no opnion

Agree

Strongly Agree

Figure 7: Glass advertisement saw by people

As the approx. sig. value is quite high, so the null hypothesis is rejected. Here the correlation between the advertisement of glass and the perception of better quality comes out to be positive but as the value is only 0.091, which is very less. Hence there is such perception with respect to commodity product like glass in the mind on end consumers even after watching TV ads.

From the graph it is clear that the maximum people, who have seen the ads, disagree to this fact.

Suggestion:

The company’s advertisement communication should emphasis on other attributes such durability, variety rather than involving features showing better quality.

Hypothesis 3: End Consumers are aware of all the glass brands available in the market and they

tend to ask for a particular brand.

The Correlation and cross tabulation technique is use to find the relationship between the awareness of glass brands available in the market and their tendency to ask for a particular brand of the glass.


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Aware of any glass brand * Ask for particular brand Crosstabulation

Count

Ask for particular brand

TotalYes NoAware of any glass brand

Yes 18 50 68No 0 11 11

Total 18 61 79

Symmetric Measures

Value

Asymp. Std.

Error(a)Approx.

T(b) Approx. Sig.Interval by Interval Pearson's R .218 .041 1.965 .053(c)Ordinal by Ordinal Spearman

Correlation.218 .041 1.965 .053(c)

N of Valid Cases 79



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Yes No


0

10

20

30

40

50

Co

un

t

22.78%

63.29%

13.92%

Ask for particular

brand

Yes

No

Figure 8: Awareness Vs Particular brand

As the sig. value is more than 0.05 level hence the null hypothesis is rejected. Here the correlation value is positive 0.218, which is very less. Hence there is no high correlation between the chosen parameters, so one has no such great effect on the other. Therefore, even if the end consumers are aware of the glass brands they don’t generally ask for it, in case of commodity product like glass generally.

Suggestions:

As the consumers don’t ask for a particular brand, it all depends on the retailer recommendations. Hence the company should give special discounts, gifts to promote the brand awareness and sell at the retail counter. They should award retailers by giving “Best Retailer of the Month/Year” and should attach discount to that, to increase the sell of their particular branded glass.


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Hypothesis 4: The end consumer’s decision to choose any brand is not affected, if they get

impressed by advertisement.

The Bivariate correlation technique is used between the decision to choose any brand

and the impressed by ad variable.

Correlations

Decision to choose any

brandImressed by

adDecision to choose any brand

Pearson Correlation 1 .567(**)Sig. (2-tailed) . .000N 71 70

Imressed by ad Pearson Correlation .567(**) 1

Sig. (2-tailed) .000 .N 70 89

** Correlation is significant at the 0.01 level (2-tailed).

As the Pearson correlation between the two variables is .567 and sig. is 0.000, hence the null hypothesis is rejected. The variables are positively correlated and the value of correlation 0.567 is pretty good. Hence if the end consumers get impressed by ad there is likely chance for them to those that particular brand.

Suggestions

Hence the ad content should include the parameters such as emotion, message, informative, unique, familiar and relevant etc.


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Findings

1. The most of the consumers(78.3 %) don’t go for buying the commodity products

like glass, steel etc.

21.7

78.3

Yes

No

Whether go for buying

Figure 9: Whether go for buying

Maximum numbers of people have not bought the glass (58.33%), hence their involvement in the process is very low.

Yes No

Bought glass in past or planning to buy

0

10

20

30

40

50

60

Per

cen

t

41.67

58.33

Figure 10: Purchase of glass


See More, See Clear

For the maximum percentage (64.2%) of end consumers the brand carries somewhat important. Hence this potential segment of consumers can be tapped in coming futures if the brand awareness among them is increased through the communication channel.

Importance of brand

Frequency Percent Valid PercentCumulative

PercentValid Not important 23 19.2 19.2 19.2

Somewhat important

77 64.2 64.2 83.3

Important 20 16.7 16.7 100.0

Total 120 100.0 100.0

Not important Somewhat important Important

Imporatnce of brand

0

10

20

30

40

50

60

70

Per

cen

t

19.2

64.2

16.7

Figure 11: Importance of brand

The end consumers are aware of brand of glass are high with 66.7%, but the rest of the consumers are not brand conscious. Hence the companies need to increase the awareness among them.


See More, See Clear

Whether go for buying * Aware of any glass brand Crosstabulation

Count


TotalYes NoWhether go for buying

Yes 25 1 26No

55 39 94

Total 80 40 120

Correlations



Whether go for buying Pearson Correlation 1 .329(**)Sig. (2-tailed) . .000N 120 120


Pearson Correlation .329(**) 1Sig. (2-tailed) .000 .N 120 120

** Correlation is significant at the 0.01 level (2-tailed).

From the correlation value we find that the both awareness of brand and whether they go for buying have positive correlation but its not high enough to affect each other.

The time taken by the maximum end consumers ( 74.6%) at the retail counter is 0-15 minutes, hence it shows that they take very less time to decide upon choosing any glass brand. Their involvement is low.

Time taken before choosing glass(at retail counter)

Frequency Percent Valid PercentCumulative

PercentValid 0-15

minutes53 44.2 74.6 74.6

16-30 minutes

11 9.2 15.5 90.1

31-60 minutes

7 5.8 9.9 100.0

Total 71 59.2 100.0Missing System 49 40.8Total 120 100.0


Yes No


0

10

20

30

40

50

60

Co

un

t

20.83%

45.83%

0.83%

32.5%

Aware of any

glass brand

Yes

No

Figure 12: Awareness Vs whether go for buying

See More, See Clear

0-15 minutes 16-30 minutes 31-60 minutes

Time taken before choosing glass(at retail counter)

0

20

40

60

80

Pe

rce

nt

74.6

15.59.9

Figure 13: Time Taken at Retail Counter

Conclusion: Hence end consumers are not directly involved in the purchase of glass.

2. Most of the end consumers (77.2%) do not ask for a particular brand while purchasing glass. Out of which mostly customers (77.5%) ask for recommendations mostly, very few customers take the decision to choose any brand on their own.

Yes No

Ask for particular brand

0

20

40

60

80

Perc

en

t

22.8

77.2

Figure 14: Preference for particular brand


See More, See Clear

On your own Ask for recommendations sometimes

Ask for recommendations mostly

Decision to choose any brand

0

20

40

60

80

Per

cen

t

14.18.5

77.5

Figure 15: Decision to choose any brand

Most of the end consumer is influenced by carpenter, then retailer and lastly from architects.

Influencer of recommendation * Specification by type and brand of glass Crosstabulation

Count

Specification by type and brand of glass

TotalBoth brand and type Only brand Only type Nothing

Influencer of recommendation

Architect 16 0 2 0 18Retailer 12 2 8 2 24Carpenter 24 0 8 3 35

Total 52 2 18 5 77

Conclusion

The most of the end consumers are influenced by carpenter and retailer. But high income end consumers contact architect for recommendation.


See More, See Clear

Architect Retailer Carpenter

Influencer of recommendation

0

5

10

15

20

25

Co

un

t

20.78%

15.58%

31.17%

2.6%2.6%

10.39% 10.39%

2.6% 3.9%

Specification by

type and brand of

glass

Both brand and type

Only brand

Only type

Nothing

Figure 16: Influencer of Recommendation

Suggestions

The companies can provide booklet containing samples of glass to carpenter to push their products and increase their brand awareness. They can organize some kind of training on new design to carpenters. They should distribute danglers to retailers shop and should provide enough booklets, pad to them. They can also distribute calendar to retailers, carpenters and ultimately to house owners through this channel to increase their brand awareness and to push their sales.


See More, See Clear

The regression equation can be established based on the parameters seen by the customers while buying glass.

Here the Ready to pay if influence by ad is the dependent variable , the independent variables are colour, reputation of manufacturer, advertisement, brand name , status symbol.

The regression holds true because the sig. value is <0.05. The regression equation can be established like:

The Readiness to buy a brand = -0.882+( .582)*price – (.684)* brand name-(.903)*advertisement-(.446)*status symbol+(.541)*reputation of manufacturer+(.5984)*colour

Model Summary

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

1 .827(a) .685 .668 .216

ANOVA(b)

Model Sum of

Squares df Mean Square F Sig.1 Regressio

n11.409 6 1.901 40.864 .000(a)

Residual 5.258 113 .047Total 16.667 119

a Predictors: (Constant), Purchase_colour Colour, Purchase_reputmanuf Reputation of manufacturer, Purchase_ad Advertisements, Purchase_brandname Brand Name, Purchase_price Price, Purchase_statussymbol Status Symbolb Dependent Variable: Ready2pay_extra Ready to pay extra if influenced by Ad

Coefficients(a)

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.B Std. Error Beta1 (Constant) -.882 .590 -1.496 .138

Purchase_price Price

.402 .129 .582 3.102 .002

Purchase_brandname Brand Name

-.296 .100 -.684 -2.962 .004

Purchase_ad Advertisements

-.321 .045 -.903 -7.172 .000

Purchase_statussymbol Status Symbol

-.183 .104 -.446 -1.766 .080

Purchase_reputmanuf Reputation of manufacturer

.547 .074 1.541 7.438 .000

Purchase_colour Colour

.446 .081 .598 5.481 .000

a Dependent Variable: Ready2pay_extra Ready to pay extra if influenced by Ad


See More, See Clear

Conclusion

From the regression equation, we can say that the readiness to buy is affected by price, colour and the reputation of manufacturer. Hence the company should give stress to these parameters in their advertisements and at the retailer counter to increase the awareness. They should provide hoardings to retailers and 2.

The Top of mind recall is the highest for SGG followed by GGL and then AIS.AIS has maximum aided recall and unaided recall, hence its there in the mind of consumers. Hence for top of mind recall, company should use aggressive advertisements through the entire advertisements channel. The market share of SGG is highest which may be the effect of its top of mind recall.

Brand recall of AIS Brand recall of SGG Brand recall of GGLTop of mind Unaided Aided

Top of mind Unaided Aided


Count Count Count Count Count Count Count Count CountAware of any glass brand

Yes 3 24 45 61 19 0 42 11 16No

0 0 0 0 0 0 0 0 0

The ad recall on TV is the highest for the SGG, followed by AIS. Out of which the SGG has the highest top of mind recall, having strong hold in the market in terms of brand awareness.

Ad recall of AIS Ad recall of SGG Ad recall of GGLTop of mind Unaided Aided



Count Count Count Count Count Count Count Count CountHave seen the ad of glass

Yes 11 3 12 84 5 0 0 0 0No

0 0 0 0 0 0 0 0 0

The emotional, familiarity, fun, increased interest and appealing features of ads are mostly like the end consumers which has the top of the mind recall. Hence the companies ad should include these features in their ad by involving kids, music and jingles so that people can connect to ad and will ask for the brand because of the familiarity and can have the top of the mind recall in the mind of consumers.


See More, See Clear

Appealing Increased Interest EmotionalInformative about

product Familiar

Yes No Yes No Yes No Yes No Yes No

Count Count Count Count Count Count Count Count Count CountImressed by ad

Yes30 5 35 0 23 12 35 0 35 0

No 48 0 48 0 48 0 48 0 48 0

celebrity emotion fun

Yes No Yes No Yes No

Count Count Count Count Count CountImressed by ad Yes 5 0 26 11 36 5 No 0 0 3 0 48 0

The ad recall of China man ad of SGG is highest, followed by their ad of lady throwing water. The AIS ad is very less remembered by the end consumers. Hence to have the recall in the mind of consumers and for the ad to be effective, they can target the social networking site which will be very cost effective.

China man ad Shoaib Akhtar ad Lady throwing water ad

Remember the ad

0

20

40

60

80

Per

cen

tag

e

78.3

8.4 13.3

Figure 17: Ad recall

The people are not sure about the influence of ad in taking their action. But the 30% people choose, probably. Hence the ad influence on the action of end consumers is very minimal in taking their action. Hence the awareness among the end consumers should be increased by different channels. Their unsure nature can be converted to sale by pushing retailers and carpenters recommendation.


See More, See Clear

Yes No


0

10

20

30

40

50

60

co

un

t

30.0%

23.33%

44.17%

1.67% 0.83%

Ad influences

to undertake

action

Probably

Not Sure

Definately Not

Figure 18: Ad influence on action

The likelihood to purchase the advertised brand is quite high. The seen ad and the likelihood to purchase brand is positively correlated and is significant. Hence the company should do the advertisements , because the top of the mind recall will push them to buy that brand.

Crosstab

Count

Likelihood to purchase advertised brand

TotalMore Often Less OftenRemains the same


Yes 53 24 12 89No 0 31 0 31

Total 53 55 12 120

Symmetric Measures

Value

Asymp. Std.

Error(a)Approx.

T(b) Approx. Sig.Interval by Interval Pearson's R .309 .065 3.534 .001(c)Ordinal by Ordinal Spearman

Correlation.387 .070 4.552 .000(c)

N of Valid Cases 120



See More, See Clear

Out of all the parameters while purchasing glass, aesthetics, clarity and colour have the maximum effect in the minds of end consumers. The company should emphasize these three things in their all advertisement channels to attract customers towards their brand.

Somewhat important Very important

Clarity

0

20

40

60

80

100

Per

cen

t

0.8

99.2

Important Very important

Colour

0

10

20

30

40

50

60

Per

cen

t

48.33 51.67

Figure 19:Parameters for buying glass

Suggestions The ad influence is very unsure in nature. There is no high effect on purchase of that in case of commodity product like glass. Hence the probability seems good, hence the company should increase the awareness among the consumers because the less differentiation between the products with respect to customers. Hence the other mode of communications like PR, sponsorships to events will be good method to create the awareness.


Important Very important

Aesthetics

0

20

40

60

80

100

Per

cen

t

8.3

91.7

See More, See Clear

Perceptual Mapping

As the wilk’s lamda value is small and sig. value <0.05. Hence the following perceptual mapping of the different brand on the asked parameters holds true.

Here the good quality, durability, wide range, international brand, trustworthy brand and offers good discount are loaded as Function 1. Whereas the affordable, popular. Easy availability, premium brand , attractive ad are loaded as Function 2.

Wilks' Lambda

Test of Function(s)Wilks'

Lambda Chi-square df Sig.1 through 2 .006 614.158 22 .0002 .313 138.186 10 .000

Standardized Canonical Discriminant Function Coefficients

Function

1 2Good Quality 4.601 -.137Affordable -.277 .090Durable 1.116 -.369Popular/Well known -.826 -.732Easily Available -.165 .683Wide range/variety 2.049 -.345International Brand .002 -.307Premium brand .408 1.032Trustworthy brand 10.345 .008Attractive/eye catching ad -9.291 .264Offer good discount .019 -.170


See More, See Clear

-20 0 20 40 60

Function 1

-2

0

2

4

Fu

nct

ion

2

AIS

SGG

GGL

Brand name

AIS

SGG

GGL

Group Centroid

Canonical Discriminant Functions

Hence the AIS is more close to function 1 but SGG is far from function 1 but it gives more emphasis on the function 2. Hence they have got the highest market share and are the leaders in the industry. Whereas the GGL have different space in the mind of consumers by being at the middle of both the function.

Suggestion

Hence the AIS should try to more push to the Function 2 to have more advantage like SGG. AIS have to change their perception in the mind of consumers by giving more emphasis on their positioning statement and by involving the function 2 in their marketing strategies.


See More, See Clear

4.

The consumers are not aware usage/application of glass like safety, privacy, sound control and energy saving.

Disagree Agree Strongly Agree

Maintains Safety

0

10

20

30

40

50

60

70

Per

cen

t

64.2

31.7

4.2

Disagree Have no opnion

Agree Strongly Agree

Saves Electricity

0

10

20

30

40

50

Per

cen

t

45

33.3

19.2

2.5




Sound Control

0

10

20

30

40

50

60

70

Per

cen

t

70

9.216.7

4.2



Maintains Privacy

0

10

20

30

40

Per

cen

t

39.2 37.5

19.2

4.2

Figure 20: Awareness of application of glass

See More, See Clear

SuggestionsThe company can direct its advertisements through different channels towards these functional benefits of glass. They should organize meets with retailers, should educate about these functional benefits of glass. They should organize exhibition where they can invite builders, architects and exhibit these benefits of glass to increase the awareness and in long term sales.

5.

The brand awareness of SGG across all different advertisement communication channels is the highest. Their awareness across end consumers is the highest. Whereas their reach to builders, architect through meets and sales people is the highest. The shop display at retail center is maximum

The AIS in brand awareness across along all the channels is low. Their awareness across the consumer is very low. The dealer and retailer awareness toward the brand should be increased through more meets and interaction with the sales people.

The GGL has the highest awareness through the word of mouth because of long presence and being the pioneer in the industry.

AIS Occupation

House owner(end consumer)

Architect Builder Retailer Dealer

Count Count Count Count Countad on TV Yes 2 11 13 13 14 No 0 0 0 0 0ad in magazine Yes 9 25 19 20 19 No 4 0 2 0 0ad on radio Yes 0 0 0 0 0 No 0 0 0 0 0Meets Yes 0 19 15 0 5 No 0 0 0 0 0saw display on shop Yes 6 7 13 12 12 No 0 0 0 0 0


See More, See Clear

Relatives and friends (word of mouth) Yes 19 20 15 0 0 No 2 0 0 0 0Mails Yes 0 25 17 0 4 No 0 0 0 0 0actual user experience Yes 14 25 23 23 18 No 0 0 0 0 0


See More, See Clear

SGG Occupation

House ownerend consumer)

Architect Builder

Retailer Dealer

Count Count Count Count Countad on TV Yes 30 30 30 30 30 No 0 0 0 0 0ad in magazine Yes 3 30 30 19 26 No 0 0 0 0 0ad on radio Yes 9 13 16 30 26 No 0 0 0 0 0Meets Yes 0 30 30 15 23 No 0 0 0 0 0saw display on shop Yes 10 30 30 30 30 No 0 0 0 0 0Relatives and freinds(word of mouth) Yes 4 26 24 30 27 No 0 0 0 0 0Mails Yes 0 18 18 0 5 No 0 0 0 0 0actual user experience Yes 12 30 30 30 30 No 0 0 0 0 0


See More, See Clear

GGL Occupation

House owner(end consumer)

Architect Builder Retailer Dealer

Count Count Count Count Countad on TV Yes 0 0 0 0 0 No 0 0 0 0 0ad in magazine Yes 2 30 30 30 30 No 0 0 0 0 0ad on radio Yes 0 0 0 0 0 No 0 0 0 0 0Meets Yes 0 28 17 30 30 No 0 0 0 0 0saw display on shop Yes 30 30 30 30 30 No 0 0 0 0 0Relatives and freinds(word of mouth) Yes 30 30 30 0 12 No 0 0 0 0 0Mails Yes 0 12 3 30 28 No 0 0 0 0 0actual user experience Yes 26 12 3 23 27 No 0 0 0 0 0

Suggestion

The AIS can also target Radio to increase its brand awareness. They can also have the tie-ups with the known builders and architects to advertise their site on their respective websites.

The awareness can also be increased among the channel partners through regular mailers about their products and through greetings.

The company should use hoardings/billboards at the different festival and important occasions to increase awareness.


See More, See Clear

Recommendations 1. The commodity market has very less involvement of the end consumers in the buying

process , hence thee company should push dealers and retailers through different schemes , gifts and by giving them awards of “Best Retailer of the Year” and “Best Dealer of the Year” awards. The visibility at the retail counter should be increased by giving them pad, cutting tools to carpenters via retailers having AIS inscribed on it.

2. The companies can provide booklet containing samples of glass to carpenter to push their products and increase their brand awareness. They can organize some kind of training on new design to carpenters. They should distribute danglers to retailers shop and should provide enough booklets, pad to them. They can also distribute calendar to retailers, carpenters and ultimately to house owners through this channel to increase their brand awareness and to push their sales.

3. The company should add more emotional, familiar and attractive to catch the attention, hence they should go for viral marketing and buzz marketing. They can put their videos on “You tube “to increase the awareness. The company should project their positioning statement “See More, See Clear “in their advertising media.

4. The company can direct its advertisements through different channels towards these functional benefits of glass. They should organize meets with retailers, should educate about these functional benefits of glass. They should organize exhibition where they can invite builders, architects and exhibit these benefits of glass to increase the awareness and in long term sales.

5. The ad influence is very unsure in nature. There is no high effect on purchase of that in case of commodity product like glass. Hence the probability seems good, hence the company should increase the awareness among the consumers because the less differentiation between the products with respect to customers. Hence the other mode of communications like PR, sponsorships to events will be good method to create the awareness.

6. The advertisements activities should be targeted on the middle segment. The awareness

can be increased by involving into the PR activities and through tie-ups with the social

society/community like BMC and CARE to increase the awareness level among the

middle income category.


See More, See Clear

7. They can also have the tie-ups with the known builders and architects to advertise their

brands on their websites. The awareness can also be increased among the channel

partners through regular mailers about their products and through greetings during

festivals. The company should use hoardings/billboards at the different festival and

important occasions to increase awareness of their products and brands.


See More, See Clear

REFERENCESBooks

Philip Kotler, Kevin Lane Keller, Abraham Koshy and Mithileshwar Jha (13th Edition),

Marketing Management, Pearson Education.

Neil J. Salkind ( 3rd Edition), Statistics for people who ( think they) hate statistics, Sage

publications.

Glass yug ( November 2009) Magazine

Journal Paper

Rick T Wilson and Brand D. Till ( 2008), ,” Journal of Advertising, vol 37, no 1 (spring 2008),

pp.59-72

Keller, Kevin L. (1987), “Memory Factors in Advertising: The Effect of Advertising Retrieval

Clues on Brand Evaluation,” Journal of Consumer Research, 14 (December), pp.316–33.

Roberts, Andrew (1999), “Recency, Frequency and the Sales Effects of TV Advertising,”

Harvard Business Review, 167 (January),pp.44–48.

Simon, Julian L. and Johan Arndt (1980), “The Shape of the Advertising Response Function,”

Journal of Advertising.

Danaher, Peter J. (1995), “What Happens to Television Ratings During Commercial Breaks?”

Journal of Advertising Research, 35 (1), pp. 37–47.

D’Souza, Giles and Ram C. Rao (1995), “Can Repeating an advertisement More Frequently

Than the Competition Affect Brand Preference in a Mature Market?” Journal of Marketing,

59 (April), pp. 32–42.

AAKER, DAVID. A., and JAMES M. CARMAN. (1982), “Are You Over advertising?” Journal of

Advertising Research 22, 4 (1982), pp. 57–70.

DANAHER PETER, and ROLAND RUST. “Determining the Optimal Level of Media Spending.”

Journal of Advertising Research. 34, 1 (1994), pp. 28–34.

FEINBERG, FRED (2001), “On Continuous-time Optimal Advertising Under S-shaped

Response.” Management Science 47, 11 (2001), pp. 1476–87.

LUO, XUEMING and NAVEEN DONTHU. (2001), “Benchmarking Advertising Efficiency.”

Journal of Advertising Research 41, 6 (2001), pp. 7–18.

RIEDESEL, PAUL. “Comment on Benchmarking Advertising Efficiency.” Journal of

Advertising Research 42, 2 (2002), pp. 93.


See More, See Clear

Appendix -1Questionnaire

Good Morning / Good Evening,

I, Dev Masand am a student of PGDM(HR) from Sinhgad Institute of Management. I am

conducting a survey for understanding the effectiveness of advertisements on demand of

commodity products (Glass). I shall be grateful; if you could spare some time to answer the

questions that I have.

I would like to assure you that all the answers given by you will be kept confidential and will be

aggregated to draw the results. Thanking you in advance.

1. What is your occupation out of the following two categories? Please tick mark.

Category I

House owner (End consumer)

Category II

Architect Retailer Dealer

Category III

Builder

Please fill the questionnaire according to the instructions given below:-

Category I Go to SECTION I

Category II Go to SECTION II

Category II Go to SECTION III


See More, See Clear

SECTION I

1. Do you go for buying products like cement, Glass and steel or any such commodity product?

Yes No

2. How important is the brand for buying such products for you?

1- Not Important at all , 2- Not Important, 3- Somewhat Important , 4- Important, 5- Very

Important

Not Important at all 1 2 3 4 5 Very Important

3. Are you aware of any glass brand available in the market?

Yes No

If yes, Please specify the names.

……………………………………………………………………………………………………………………….

4. Have you bought glass in the past or planning to buy in next one year?

Yes No

If Yes, then continue, else go to Question 5.

a. Do you ask for a particular brand while buying glass, cement or such commodity

product?

Yes No

b. How do you decide to choose any brand of such kind of products?

On your own Ask for recommendation sometimes

Ask for recommendation mostly


See More, See Clear

c. How do they generally recommend, if nothing is asked from your end? Please mark

according to the specification with respect to type and brand told to you by the

following people.

Influencer

Specify

Architect Carpenter Retailers Builder Dealer

Both brand and

type

Only brand

Only type

Nothing

d. How much time do you take before buying the glass at the retail counter?

0-15 minutes

16-30 minutes

31-60 minutes

More than one hour

5. What are the attributes, which according to you is important while you think of Glass?

Aesthetics Not Important at all 1 2 3 4 5 Very Important

Quality Not Important at all 1 2 3 4 5 Very

Important

Clarity Not Important at all 1 2 3 4 5 Very

Important

Modern Not Important at all 1 2 3 4 5 Very

Important


See More, See Clear

Privacy Not Important at all 1 2 3 4 5 Very

Important

Attractiveness Not Important at all 1 2 3 4 5 Very

Important

Durability Not Important at all 1 2 3 4 5 Very Important

6. What do you think about the usage/application of glass for the following purpose?

Please select a phrase that best describes your view how Strongly you feel about the

dimension.

5 - Strongly Agree, 4- Agree, 3- Have no opinion, 2- Disagree, 1- Strongly Disagree

Maintains Safety Strongly Agree 5 4 3 2 1 Strongly Disagree

Maintains Privacy Strongly Agree 5 4 3 2 1 Strongly Disagree

Sound control Strongly Agree 5 4 3 2 1 Strongly Disagree

Saves electricity Strongly Agree 5 4 3 2 1 Strongly Disagree

7. Whom did you/ will you consult before buying glass?

Retailers Architect Carpenter

Builder Dealer

8. How frequently do you watch television? Please indicate out of the following options. Choose

one of the following option.

Very often (Daily) Often (3-4 days a week) Occasionally (1-2 days a

week)

Rarely (Once in a week) Never

9. Have you seen any advertisement regarding the glass in the TV?

Yes No


See More, See Clear


10. Which company’s ad comes to your mind first when you think of glass?

…………………………………………………………………………………………………………………………………………………

11. What was the Ad about?

…………………………………………………………………………………………………………………………………………………….

.

12. Did it impress you? What do you remember of the advertising? INTERVIEWR TO NOTE

DOWN VERBATIM.

Yes No

………………………………………………………………………………………………………………………………………………

……………

13. What did you like in the advertisements?

Message Entertainment Music Concept

Celebrity Emotion Fun

If anything else, please specify

………………………………………………………………………………………………………………………………………………………

……


See More, See Clear

14. How did you find the message of the advertisement?

Unique Yes No

Relevant Yes No

Appealing Yes No

Increased interest Yes No

Emotional Yes No

Informative about product Yes No

Familiar Yes No

Irritating Yes No

15. Which ad do you remember among the following Ads of different brands of glass?

Kid in shower Ad China man Ad Shoaib Akhtar Ad

Small boy Ad Lady throwing water Ad Kids playing

with a ball

16. What did you like in the advertisement?

…………………………………………………………………………………………………………………………………………

…………….

17. What do you/will you think about the glass, if you see any advertisements on TV?


dimensions.


Trustworthy brand Strongly Agree 5 4 3 2 1 Strongly Disagree

Better Quality Strongly Agree 5 4 3 2 1 Strongly Disagree

Preferred brand Strongly Agree 5 4 3 2 1 Strongly Disagree


See More, See Clear

18. How likely is it that the ad will influence you to undertake your action? Choose among the

following

Definitely Probably Not Sure Probably Not Definitely Not

19. What attributes do/will you consider while purchasing any glass brand?

Please select a phrase that best describes your view on the Importance of the Attributes.


Important

Colour Not Important at all 1 2 3 4 5 Very Important

Price ` Not Important at all 1 2 3 4 5 Very Important

Brand name Not Important at all 1 2 3 4 5 Very Important

Advertising Not Important at all 1 2 3 4 5 Very Important

Status symbol Not Important at all 1 2 3 4 5 Very Important

Reputation Not Important at all 1 2 3 4 5 Very Important

Of manufacturer

20. If you are influenced by Ad, Will you be ready to pay extra for a branded glass? Please

select any one option showing the extent that you can pay extra in percentage.

Yes No,

If yes, then continue, else go to Question 21

1-5 % more 5-10% more 10-15% more 10% and above


See More, See Clear

21. Through which medium you came to know about the following brands of glass? Please tick mark.

Asahi Saint

Gobain

Modiguard Others

Ad on TV

Ad in magazine

Ad on radio

Hoarding/ Billboards

Meets

Saw display in shop

Relatives and friends

Mails/Internet

Actual user Experience

Sales people

22. What is the likelihood of purchasing the advertised brand of commodity products like glass,

cement?

More Often Less often Remain the same

23. Do you feel that you will ask for a particular brand after seeing the ad?

Definitely Probably Don’t Know

Probably Not Definitely Not


See More, See Clear

24. Choose the options which you the different brands based on following parameters (Rate

each parameter out of 3)

(1 being the lowest and 3 being the highest)

Attributes AIS Saint Gobain Modiguard

Is of good quality

Is affordable

Is durable

Is popular / well known

Easily available

Has a wide range/variety of glass

Is an international / world class brand

Is a premium brand

Is trust worthy / reliable

Is involved in lots of advertising

Has eye catching / attractive advertisements

Offers good discounts

Is reputed

Gives good value for money

Is a Pioneer

Is Global

Is a Leader in the Glass Category

Is Modern / stylish

Personal Details:

What is your family annual income?

0-2 lakh per annum 3-5 lakh per annum

5-7 lakh per annum Above 8 lakh per annum

Age: Upto 19 20-25 26-34 35-45 45+

Gender: Male Female


See More, See Clear

Section II- RETAILER/DEALER

1. Which BRANDS of Float Glass do you store and sell?

SGG & GGL SGG & AIS AIS & GGL All the brands Others

2. Which brand of Float Glass do you sell the most (the brand of Float Glass brand that is sold most often), from your shop. Please rank them from 1-4 where 1- Highest selling and 4- Lowest selling.

Modiguard Saint Gobain AIS Imported

3. Which company’s float glass is mostly preferred in the market? Please rank them priority

wise in terms of demand in the market (From 1 to 4) where 1- Highest Priority and 4-

Lowest Priority.

Saint-Gobain Glass India Ltd. Gujarat Guardian Ltd (Modiguard)

Asahi India Glass Ltd. Imported

4. Do you think that the consumers are brand conscious while buying glass?


statement.

5- Strongly Agree, 4- Agree, 3- Have no opinion, 2- Disagree, 1- Strongly Disagree

Strongly Agree 5 4 3 2 1 Strongly Disagree

5. Do they ask any particular brand when they come to you?

Yes No

6. How often do they ask for your recommendation?

Very often Often Occasionally Rarely Never

7. What do you recommend to consumers when they come to you?

Both Brand and Type Only Brand Only Type Nothing


See More, See Clear

8. Which brand do you recommend the most to the consumers? Please rank them according

to your preference where 1 - stands for Recommend Mostly and 6 - being Recommend

Rarely.


Asahi India Glass Ltd. (AIS) Gold Plus Float Glass Industry Ltd.

Imported Others

9. How frequently do you watch TV?


week)


10. Through which medium you came to know about the following brands and their products?

Please tick mark.

Asahi Saint Gobain Modiguard Others

Ad on TV

Ad in magazine

Ad on radio

Hoarding/Billboards

Meets/salespeople

Saw display in shop


Mails

Actual User Experience


See More, See Clear

11. Do you feel that the consumers can pay extra if they are influenced by ad?


How much extra they can pay?


12. Rate the different brands based on following parameters ( Rate each parameter out of 3 point)



Is of good qualityIs affordableIs durableIs popular / well known Easily availableHas a wide range/variety of glassIs an international / world class brandIs a premium brandIs trust worthy / reliableIs involved in lots of advertisingHas eye catching / attractive advertisementsOffers good discountsIs reputedGives good value for moneyIs a PioneerIs a Leader in the Glass CategoryIs Modern / stylish

13. Will you recommend the brands which you have used earlier?

Definitely Probably Don’t know



See More, See Clear

14. Have you seen the advertisement of any glass company?

Yes No

Please specify the

names………………………………………………………………………………………………………

If No, go to Question 17

15. What do you remember about the Ad?

…………………………………………………………………………………………………………………………………………

…….

16. How did you find the advertisement?

Unique Yes No

Relevant Yes No

Appealing Yes No


Emotional Yes No


Familiar Yes No

Irritating Yes No

17. How likely is it that the ad will influence the consumers to undertake their action?



See More, See Clear

18. What do they consider while purchasing glass?

Please select a phrase that best describes your view on the Importance of the criterion , 1- Not Important at all , 2- Not Important, 3- Somewhat Important , 4- Important, 5- Very Important


Price Not Important at all 1 2 3 4 5 Very Important

Quality Not Important at all 1 2 3 4 5 Very Important

Wide range Not Important at all 1 2 3 4 5 Very Important




Reputation Not Important at all 1 2 3 4 5 Very Important Of manufacturer


See More, See Clear

SECTION III- Builder

1. How important is the brand for buying commodity products like cement, glass etc. for

you?


Important

Not Important at all 1 2 3 4 5 Very Important

2. Have you bought glass in the past or planning to buy in next one year?

Yes No

3. Are you aware of any glass brand available in the market?

Yes No

If yes, Please specify the names.

……………………………………………………………………………………………………………………….

4. Whom did you/ will you consult before buying glass?

Retailers Architect Builder Dealer

No one

5. Do you ask for a particular brand while buying glass, cement or such commodity product?

Yes No

6. How do you decide to choose any brand of such kind of products?

On your own Ask for recommendation sometimes

Ask for recommendation mostly


See More, See Clear

7. How do they generally recommend, if nothing is asked from your end? Please mark

according to the specification with respect to type and brand told to you by the following

people.

Influencer

Specify

Architect Carpenter Retailers Builder Dealer

Both brand and

type

Only brand

Only type

Nothing

8. What are the attributes, which according to you is important while you think of Glass?

Aesthetics Not Important at all 1 2 3 4 5 Very Important

Quality Not Important at all 1 2 3 4 5 Very Important

Clarity Not Important at all 1 2 3 4 5 Very Important

Privacy Not Important at all 1 2 3 4 5 Very Important

Modern Not Important at all 1 2 3 4 5 Very Important

Attractiveness Not Important at all 1 2 3 4 5 Very Important

Durability Not Important at all 1 2 3 4 5 Very Important


See More, See Clear

9. What do you think about the usage/application of glass for the following purpose?


dimension.


Maintains Safety Strongly Agree 5 4 3 2 1 Strongly Disagree

Maintains Privacy Strongly Agree 5 4 3 2 1 Strongly Disagree

Sound control Strongly Agree 5 4 3 2 1 Strongly Disagree

Saves electricity Strongly Agree 5 4 3 2 1 Strongly Disagree

10. Which company’s float glass is mostly preferred in the market? Please rank them priority

wise in terms of demand in the market (From 1 to 6) where 1- Highest Priority and 6-

Lowest Priority.


Asahi India Glass Ltd. Gold Plus Float Glass Industry Ltd.

Imported Others

11. How frequently do you watch television? Please indicate out of the following options.


week)


12. Have you seen any advertisement regarding the glass in the TV?

Yes No



See More, See Clear

13. Which company’s ad comes to your mind first when you think of glass?

…………………………………………………………………………………………………………………………………………………

14. What was the Ad about?

…………………………………………………………………………………………………………………………………………………….

.

15. Did it impress you? What do you remember of the advertising? INTERVIEWR TO NOTE

DOWN VERBATIM.

Yes No

………………………………………………………………………………………………………………………………………………

……………

16. What did you like in the advertisements?

Message Entertainment Music Concept

Celebrity Emotion Fun

If anything else, please specify

……………………………………………………………………………………………………………………………………………………

17. How did you find the message of the advertisement?

Unique Yes No

Relevant Yes No

Appealing Yes No


Emotional Yes No



See More, See Clear

Familiar Yes No

Irritating Yes No

18. Which ad do you remember among the following Ads of different brands of glass?

Kid in shower Ad China man Ad Shoaib Akhtar Ad

Small boy Ad Lady throwing water Ad Kids playing

with a ball

19. What did you like in the advertisement?

…………………………………………………………………………………………………………………………………………

…………….

20. What do you/will you think about the glass, if you see any advertisements on TV?


dimensions.


Trustworthy brand Strongly Agree 5 4 3 2 1 Strongly Disagree

Better Quality Strongly Agree 5 4 3 2 1

Strongly Disagree

Preferred brand Strongly Agree 5 4 3 2 1 Strongly Disagree

21. How likely is it that the ad will influence you to undertake your action?


22. What attributes do/will you consider while purchasing any glass brand?

Please select a phrase that best describes your view on the Importance of the Attributes.



See More, See Clear

Important


Price ` Not Important at all 1 2 3 4 5 Very Important




Reputation Not Important at all 1 2 3 4 5 Very Important

Of manufacturer

23. If you are influenced by Ad, Will you be ready to pay extra for a branded glass? Please

select any one option showing the extent that you can pay extra in percentage.

Yes No,

If yes, then continue, else go to Question 21



See More, See Clear

24. Through which medium you came to know about the following brands of glass? Please tick mark.

Asahi Saint Gobain Modiguard Others

Ad on TV

Ad in magazine

Ad on radio

Hoarding/ Billboards

Meets

Saw display in shop


Mails

Actual user Experience

Sales people

25. What is the likelihood of purchasing the advertised brand of commodity products like glass,

cement?

More Often Less often Remain the same

26. Do you feel that you will ask for a particular brand after seeing the ad?

Definitely Probably Don’t Know



See More, See Clear

1. Rate the different brands based on following parameters (Rate each parameter out of 3)



Is of good quality

Is affordable

Is durable

Is popular / well known

Easily available

Has a wide range/variety of glass

Is an international / world class brand

Is a premium brand

Is trust worthy / reliable

Is involved in lots of advertising

Has eye catching / attractive advertisements

Offers good discounts

Is reputed

Gives good value for money

Is a Pioneer

Is Global

Is a Leader in the Glass Category

Is Modern / stylish

Personal Details

Name:

Firm Name:

Area:

Thank you so much for your time and efforts for filling the questionnaire.


Asahi india glass project by DEV MASAND

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