MBA Symbiosis Project

8/3/2019 MBA Symbiosis Project

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PROJECT REPORT

ON

A STUDY ON THE PROBLEMS OF INTERNATIONAL MARKETING

OF CERAMIC SANITARY WARES WITH SPECIAL REFERENCE TO

MUTHOOT APT CERAMICS LTD.

Study of Market of BEE Star Labeled Appliances and

Buying Behavior of Consumers

Submitted by

NEERAJ DHINGRA

Reg No. 200757530


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SYMBIOSIS CENTRE FOR DISTANCE LEARNING, PUNE

ACADEMIC YEAR - 2007

Table of Contents

1. Introduction.

4

2. Objectives and Scope.

53. Limitations

. 5

4. Theoritical Perspective

5. Methodology and Procedure of Work. 6

6. Analysis of Data... 7

7. Findings, Inferences and

Recommendations. 8

8. Project

Implementation.

9

9. Conclusions

...

10. Summary of the Project

Report 10

11. Recommendations

.. 31

ANNEXURES

I) Proposal

II) References

III) List of Figures, Charts, Diagrams

IV)List of Tables


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CONTENTS

Chapter Topics Page No.

1

1.Introduction

9-13

2 2. Industrial Profile

14-18

3 3. Company Profile

3.1. History

3.2. Various Departments

3.3. Swot Analysis

3.4. Marketing Strategies.

19-26

4 4. Objectives of the study

27-39


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5 5. Scope of the study

5.1. Focus of study

5.2. Relevance of study

40-41

6 6. Research Methodology

6.1. Formulating Research

6.2 .Preparing Research Design

6.3 .Determine Sample Design

6.4. Collection of Data

42-43

7 7. Limitation of the study 44-46

8 8. Analysis and Interpretation 47-48

9 9. Suggestion & Recommendations 49-50

10 10. Findings of the study 51-55

11 11. Conclusion

12 12. Bibliography

13 13. Annexure

CHAPTER-1

NATURE

OF


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THE

STUDY

Background and aspects of the problem

Direction of Indian Exports(April - November1995)

The survey indicates the entry of two new nations in the Indian top 20 buyers' list, namely

Indonesia and Spain. Indonesia closed in as fourteenth as exports surged by 131.8% while

Spain was ranked as number eighteenth as Indian exports increased by 57.8%.

RankRank Apr-

Nov'95Country

Exports

($million)% Change

01 01 US 3613.4 13.3

02 02 Japan 1390.5 12.3

03 04 UK 1289.9 24.2

04 03 Germany 1236.2 18.6

05 05 Hong Kong 1172.7 32.1

06 06 UAE 876.8 11.5

07 07 Belgium 697.5 22.0

08 09 Russia 688.3 44.9

09 11 Bangladesh 670.7 94.2

10 08 Italy 639.8 25.4

11 10 Singapore 506.9 09.0

12 13 Netherlands 453.8 41.7

13 12 France 451.2 33.8

14 - Indonesia 344.5 131.8

15 14 Saudi Arabia 308.6 16.0

16 15 Thailand 300.3 25.8

17 18 S.Korea 246.4 24.5

18 - Spain 245.8 57.819 16 Australia 243.8 09.6


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20 17 Srilanka 237.8 10.3

The researcher has understood from preliminary research that there is a sizeable market for

ceramic sanitary ware in the International market. The Indian players are afforded a great

deal of assistance in marketing their products abroad. However, the performance of Indian

players in the export scenario is unimpressive. This study sets out to find out what exactly

are the reasons for the dismal performance on Indian players in the international market.

Purpose of the study

The volume of world merchandise exports grew by 9.5 per cent in 1997, the second

highest rate in more than two decades with the exception of 1994 when trade expanded by

10 per cent. The U.S., Germany, Japan, France and U.K. are the leading exporters in that

order. India only ranks 31st in the world with an export share of less than one percent in

world exports. It is abundantly clear that there is a great export market waiting to betapped but it goes without saying that the sailing is not easy. The performance of India has

been lackluster but is soon picking up. The purpose of the study is to find out the

performance of Muthoot APT Ceramics Ltd., an Export Oriented Unit (EOU) situated in

Cochin Export Processing Zone (CEPZ), Kakkanad, Cochin, in terms of its exports and

their first hand feel of the global market. The Plant exports Ceramic Sanitary wares and

allied products and has a tie up with Advanced Product Technology of Britain for

technology transfer.The study focuses at international trade from the viewpoint of Muthoot

APT Ceramics Ltd. The activities of the EOU can spread light on the problems faced by

the concern or the lack of it, in the global market. The results of the study can help in


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better understanding the concept of international trade and in improving the efficiency and

circumventing the problems in marketing the products. It goes without saying that some of

the problems experienced by export units are common to other industries as well.There is a

serious lack of good information regarding the exports in the sanitary ware industry. Basic

information provided in the trade yearbooks of each country lacks consistency in the

degree of detail of information provided. Therefore it is difficult to develop a clear picture

of world trade in ceramic sanitary ware and all those involved in future market planning

would surely benefit from more orderly and timely information. The following points are

considered for the study -

1. Some relevant aspects of world trade today.2. India's performances in the most important export markets.

3. The future price implications.

4. India's supply

5. Need for adequate demand stimulation program.

6. Some aspects of market accessibility.

The study would also throw light on the market influences viz., socio-economic factors,

structure of the sanitary ware market in terms of import and distribution system,

packaging, price level, Government regulations and legislation in terms of input quotas,

taxation, and safety measures. Furthermore, the study will also focus on the quality

requirements of the ceramic sanitary ware industry.


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Statement of the Hypothesis

Once the selection and definition of the problem have been accomplished, the derivation

of the hypothesis is the most important step in the research process. Etymologically

hypothesis is made up of two words, "hypo" (less than) and "thesis", which mean less than

or less certain than a thesis. It is the presumptive statement of a proposition or a reasonable

guess, based upon the available evidence, which the researcher seeks to prove through hisstudy. The hypothesis is a powerful tool in research process to achieve dependable

knowledge. It helps the researcher to relate theory to observation and observation to

theory. The null hypothesis of the present study is: The Indian exporters are not able to

match foreign technology and quality of ceramic sanitary ware available in the

international market". The existence of a large international market for ceramic sanitary

ware has been established. Therefore, the reasons for the lackluster performance of the

Indian players need to be looked into.

Rationale

The study is based on a ceramic sanitary ware exporter based in Cochin Export Processing

Zone, Kakkanad. The researcher feels that the outcome of the study will provide a positive

influence on emerging exporters as well as a refreshing study for the old timers. The study

seeks to provide an impartial and unbiased study of the ceramic industry. The study is

conducted in a professional manner using scientific tools. As the researcher is an outsider,


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it is possible that he is able to pin point certain aspects that were overlooked by those in the

industry. It is hoped that the matter researched will be of importance to the Company as

well as the industry in the form of a reference tool. The recommendations of the researcher

will also give an insight into the untapped markets.

Definition of Technical terms & Acronyms

Ceramics

Making of pots, tiles, sanitary wares etc., by shaping pieces of clay and baking them until

they are hard.

Mold

A hollow container of a particular shape into which some soft substance is poured, so that

when the substance becomes cool or hard, it takes this shape.

Sanitary fittings

Such as lavatories and bidets

Kiln

Box shaped heating apparatus for baking pots or bricks for drying wood.


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Scope of the study

The use of market research is reasonably widespread. The implications may be listed as

follows

1. It ascertains the position of a company in the ceramic sanitary ware industry.

2. It provides a birds eye-view of the ceramic sanitary ware industry as a whole.

3. The study provides an idea of the growth prospects of the sanitary ware industry,

the factors influencing it, and the trends in the industry.

4. The study mentions the factors favorable to Indian players.5. It helps in assessing and enhancing the effectiveness of marketing management.

6. It can reduce the risk involved in marketing management.

7. It offers guidance in market penetration and increasing product range.

8. It pinpoints strengths and weaknesses of the Company and the Indian ceramic

sanitary industry.

Outline of remaining chapters

Chapter 2 is titled Review of Related Literature. The chapter deals with the industrial

background of the study, and the theoretical aspects of the study. The profile of Muthoot

Apt Ceramics is also mentioned.

Chapter 3 is titled Research Design and Methodology. The problem and hypothesis is

discussed. There is a detailed description of the research design. The methodological

assumptions and limitations are stated. The chapter summary provides a gist of the matter

contained in the chapter.


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Chapter4 is titled Sources of Data. Primary data, secondary data and the sampling

procedure adapted for the study is explained in great detail. The target population, size of

sample and the type of sampling technique used is explained along with the constraints and

limitations of the sampling procedure.

Chapter 5 is titled Presentation of Tabulated Data. This chapter concerns the process of

taking completed questionnaires and preparing them foe analysis. Raw data as they are

received from the field in primary data collection are in no condition for interpretation.

Tabulated data is one step towards making this data intelligible.

Chapter 6 is titled Analysis of data and interpretation. The tabulated data is analyzed and

interpreted in this chapter. The primary data is transformed into meaningful information.The researcher is able to make conclusive findings from the analysis carried out here.

Chapter 7 is titled Results of the Study. The chapter deals with the findings of the study.

The problem researched is studied and the outcome of the study is explained in detail. The

hypothesis is tested and its acceptance or rejection is mentioned. In case the null

hypothesis is rejected, then the alternative hypothesis is accepted.

Chapter 8 is titled Summary. The chapter provides a summary of the tabulation

undertaken in chapter 5.

Chapter 9 is titled Conclusion. The chapter explains in detail the conclusions reached

after the study. It provides in a nutshell the results of the entire study undertaken.

Chapter 10 is titled Recommendations. Based on the study the researcher offers

recommendations to the Company in specific and the industry in general. These

recommendations are based on the findings of the study and may help the Company in

designing its marketing strategies.

Chapter 11 is titled Appendix. The appendix contains the blank questionnaire as well as

other relevant information. It contains additional information.

Chapter 12 is titled Bibliography. The bibliography gives details regarding the materials

researched for the study. A list of all written materials used for the study is included here.


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CHAPTER 2

REVIEW OF RELATED

LITERATURE

Industrial Background of the study

The ceramic industry has become competitive and players have understood the importance

of constant innovation and state of the art technology to stay in the race. Well-proven

machinery provided by manufacturers with long experience is preferred. The enormous

range of designs and sizes permit utmost freedom of choice for each individual scheme.

Unstable demand at home and contracting markets abroad create strong downward

pressure on unit sales prices and profits. The ceramic industry is highly sensitive to signs

of political and economic uncertainty. In 1996, most of the Building Materials Division

companies saw the dollar value of their unit sales prices decline as a result of increasing

competition in their domestic and international markets An important development has

been the establishment of marketing and distribution companies in Germany, the UK and,

most recently, the US. By maintaining close contact with consumer groups and key

distributors in the main export markets, the companies have ensured that they keep abreast

with changing demand trends. Strengthening the Customer Reach by expanding service

coverage to include all of the company's products and create brand synergy, will further

strengthen its position in the retail and distribution market.Sharp rise in revenues is

possible from successful export strategy, which seeks to increase the share of processed

materials in its Export mix. Investments Fully mechanized casting lines, defect-

minimizing robots and energy-saving kilns can improve the plant's production flexibility


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and sharply raise its international competitive edge. Installation of CAD/CAM department,

can also improve the productivity, as shown by the Turkish ceramic manufacturers The

Turkish company, EYAP-Artemas investments in 1996 was focused on improving

production quality, flexibility and speed as well as on easing bottlenecks. In 1996, the

company invested $4.5 million in modernization and expansion of its casting, buffering

and polishing processes and installed CAD/CAM, MRPII, and automatic inventory

systems. These improvements have made it one of the foremost players in the whole world

Another development in the industry is the establishment of flexible and modern

production lines that facilitate customized orders of premium products. EYAP-Vitra , a

Turkish firm has capacity to manufacture over 2 million big pieces per year, making it oneof the single largest ceramic sanitary ware plants worldwide. Continual investments in

advanced technology have sought to ensure EYAP-Vitra's international competitive edge

through higher productivity, greater flexibility and improved quality. It was the first to

adopt electrostatic glazing and to set up a fully automatic fettling and glazing line. With the

plant's new fully-mechanized casting lines producing one unit every 20 minutes as

compared to the usual 6-8 hours, its average worker productivity is roughly two times the

industry average. In addition to its large and flexible production capacity, one of EYAP-

Vitra's key strengths is its high standards of quality. EYAP-Vitra was the first Turkish

ceramic sanitary ware producer to be certified to ISO 9001 standards as well as to all the

major standards of the European Union and North American markets. In 1996, the

company received the prestigious quality certificate of the Ceramic Industry Certification

Scheme.


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Theoretical Background of the study

Product

Sanitary wares are made of ceramic materials like China clay, Ball clay, Feldspar, Quartz

etc. After casting they are coated with glazing material to give a glaze finish to the finished

products. Sanitary wares include items such as wash basins, kitchen sinks, urinals, water

closets, bath tubs, cisterns, bidets etc. According to the applications they are made in

different sizes and styles. They are also given pleasing colors to match the surroundingwhere they are fitted. Sanitary wares of exclusive designs, which incorporate water saving

systems, are the modern trend. These items find their applications in bathroom and

kitchens of houses, hotels, hospitals and public places.

Market

At present India's share in international export market is very less, although the products

have export potential. In view of the developments taking place in the industry, the market

for sanitary ware is likely to undergo a radical change in coming years. Some of the units

are going for technology up gradation and introduction of new product range. Furthermore,

India also has price advantage. The Indian FOB price of sanitary wares is much less

compared to price charged by other exporting countries. Hence it won't be difficult for

India to compete with other countries and gain 10% of the total international export

market. India is exporting 15% of its production every year.

Manufacture

Feldspar and quartz after calcinations are first ground to 20-30 mesh followed by wet

grinding to the requisite particle size in a ball mill. Wet slurry is then transferred to speed

plungers where well ground China clay, ball clay and talc in requisite proportions are

added and well dispersed. This mixture is called slip. This slip is then put into moulds

made of plaster of Paris and a thick wall like cast in the shape of the article desired is

formed inside the mould. As the absorption goes on, the thickness of cast is increased.

When the required thickness is obtained the remaining slip from the mould is taken out

into the slip container and the article cast and left in the mould for about 10-12 hours,

which becomes sufficiently stiff. After the cast wares are removed from the moulds and

allowed to dry in shades. When the cast get dried, they are bisque fried. The ceramic


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glazing composition well mixed with required colors is sprayed on the biscuited sanitary

wares, which are then fed into the tunnel kiln for gloss firing. The finished goods are then

inspected, sorted and finally packed for sale.

Plant and machinery

Tunnel kiln for first firing of sanitary wares, Shuttle kiln for refiring of sanitary wares,

Control and testing equipment,Disintegrator,Ball mill,Plunger,Agitators,Jigger and

Jolley,Magnetic filter,Jaw crusher,Chamber dryer,Glazing line,Grinding machine,De-

dusting system,Feed Hopper,Conveyors,LPG storage tanks,Kiln cars,Front end loader

Raw materials

China clay, Quartz, Feldspar, Ball clay, Zirconium opacifier, Ceramic colors and stainsUtilities and infra-structure

Land, Building, Water, LPG, Diesel oil, Electricity, Manpower

Research takes the advantage of the knowledge that has accumulated in the past as a

result of constant human endeavor. It can never be undertaken in isolation of the work that

has already been done on the problems which are directly or indirectly related to a study

proposed by a researcher. A careful review of the research journals, books, dissertations,

theses and other sources of information on the problem to be investigated is one of the

important steps in the planning of any research study. Trade between nations has been

growing rapidly. Economists have propounded some important theories to explain the

factors prompting or necessitating trade between countries. International trade may take

place due to the differences in comparative costs of production between countries, as

demonstrated by the famous classical economist, David Ricardo.

Haberler has attempted to provide a more convincing explanation in terms of the

differences in the opportunity cost of production between countries and international trade

arises from the fact that factor endowments vary between countries and international trade

arise form the fact that factor endowments vary between countries and that factor

intensities differ between commodities. Regions and nations specialize and trade with each

other for the same reasons that individuals specialize and trade. International trade is

merely a special case of inter-local or inter-regional trade. According to Alfred Marshall,

"the causes which determine the economic progress of nations belong to the study of

international trade."Haberler points out: "International division of labor and international

trade, which enable every country to specialize and to export those things that it can

produce cheaper in exchange for others that can provide at a lower cost, have been and still


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are one of the basic factors promoting economic well-being and increasing the national

income of every participating country". The global scenario that is emerging out of several

recent and emerging developments is one that will foster international business. Although

some developments hamper international business, the forces, which foster far outweigh

them. Irving Kravis has pointed out that international trade arises as a result of the

availability and non-availability factors - a nation would tend to import those commodities

which are not readily available domestically and export those whose domestic supply can

be easily expanded beyond the quantity required to satisfy the domestic demand. Export is

the lifeline of a country. India has now understood that for existence and to continue its

economic growth, it has to export in a large way. The commerce ministry as such hasidentified 34 thrust areas in which India has potentiality to become a competitive exporter.

Export thrust in these areas is expected to bring the expected growth rate in $ terms to the

targeted 25% per annum.The export thrust items identified under extreme focus areas

include agriculture, agro-chemicals, auto components, bicycles and parts, cement, drugs

and pharmaceuticals, dyes and intermediates, floriculture, footwear, fresh fruits, gold

jewelry, granites, hand tools, industrial castings and forging, tomato paste products, topical

fruit juices, pulp and concentrates, preserved mushrooms, readymade garments, rice,

software packages, systems software, Computer Aided Design/ Computer Aided

Manufacture (CAD/CAM), spices, synthetic and man made textiles and tires.Export

Processing Zones (EPZs) are industrial estates that form enclaves from the national

customs territory of a country and are usually situated near seaports or airports. The entire

production of such a zone is normally intended for exports. The Kandla Free Trade Zone

(KAFTZ), set up in 1965 is India's first free trade zone. Cochin Export Processing Zone

(CEPZ) commenced exports during the Seven Plan (1985-86).

Benefits for EPZ/EOU Units

Concessional Rent

The units set up in the EPZs will be eligible for concessional rent for lease of industrial

plots and standard design factory (SDF) buildings.

Clubbing of NFE


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Net Foreign Exchange (NFE) earned by an EOU/EPZ unit can be clubbed with the NFE of

its parent/associate company in the domestic tariff area (DTA) for the purpose of according

Export House, Trading House or Star Trading House status for the latter.

Supplies from DTA

Supplies from DTA to EOU/EPZ units will be regarded as "Deemed Exports" and will be

eligible for extra benefits.

Sub-contracting

The EOU/EPZ units may be permitted to sub-contract part of their production for job work

to units in the DTA on a case to case basis.

Private Bonded WarehousesPrivate bonded ware houses may be permitted to be setup in EPZs for stock and sale of

duty free raw-materials, components etc. to EOUs and EPZs units subject to certain

conditions.

An Evaluation of EPZ/EOUs

A number of developing countries have pinned great hopes in EPZs or EOUs as a means to

increase exports, achieve transfer of technology, inter industry linkages, employment

generation and economic development. The achievement of the objectives has been limited

in most of the countries. The MNCs have not been enthusiastic to transfer technology. It is

mostly the assembly stage of production that has been relocated to the EPZs. Further, there

has not been scope for forward linkages as the entire output is meant for exports. The

scope for backward linkages is limited because of the heavy reliance on imports for the

inputs.

Strategic Marketing

The heart of modern strategic marketing can be described as STP marketing - segmenting,

targeting and positioning. Companies are increasingly embracing target marketing. Target

marketing help sellers to identify marketing opportunities better. The sellers can develop

the right offer for each market. Target marketing is one in which the seller distinguishes

the major market segments, targets one or more of these segments and develops products

and marketing programs tailored to each selected segments.


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Profile of the organization

MUTHOOT APT CERAMICS LTD. (MACL)

" Molded for supremacy in world markets, fired by international standards ofexcellence"

Muthoot APT Ceramics Ltd. (MACL) is a 100% Export Oriented Unit manufacturing

designer Vitreous China Sanitary ware. MACL is promoted by the

Muthoot Group in technical and financial collaboration with Advanced Project

Technology of U.K. The Registered Office is situated at Muthoot Towers, M.G.Road - 682

035, Kochi, Kerala and the factory admeasuring 11429 square meters is located at the

Cochin Export Processing Zone (CEPZ), Kakkanad - 682 030, Kochi, Kerala. APT

limited, the technical as well as financial collaborators of MACL is essentially a ceramic

consulting engineering company belonging to the Newton Hall group. APT has the rich

experience drawn from Newton Hall group's pool of executives who have been involved in

the design, construction and running of numerous ceramic factories throughout the world.

Products

MACL manufactures middle to top of the range designer sanitary ware conforming to

European and American standards. MACL has the most modern equipment from U.K and

Italy The initial product range shall comprise of three bathroom suites consisting of seven

pieces each as detailed here under.MACL has a highly skilled expatriate management team

to support the company's objective to produce Vitreous China Sanitary ware of the highest

quality at the lowest cost. Process Quality International is guiding it through the ISO

certification. Certification will be carried out by C.I.C.S a renowned certification body

within the European Ceramic Industry. Our commitment to Quality and Customer Care is

our driving force. MACL manufactures middle to top of the range designer sanitary ware

conforming to European and American standards. MACL has the most modern equipment


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from U.K and Italy. The plant can supply the base range of colors and any specific color

either decorated or on decorated in small numbers.

MACL's commitment to quality and customer care

1. Fully equipped laboratory for Quality Control, Research and Development

2. The Ceramic Technology Department vets all suppliers and only those who qualify

become approved suppliers. Raw materials are stringently checked using the latest

technology in the Ceramic industry.

3. Color control is verified by sophisticated instrumentation to ensure that the

customer does not suffer mismatches

4. The fired product is subjected to stringent testing to maintain the highest standardsof serviceability.

5. Every piece of vitreous china sanitary ware is hand inspected and only then

released for retail

SUMMARY

The chapter starts with a detailed look into the industrial background of the study. The

theoretical background of the study serves to shed light on the nature of the study.

Theoretical aspects are discussed in great detail. The profile of the organization gives an in

depth view of the Muthoot Group of companies in general and Muthoot APT Ceramics in

particular. The origin of the organization, its growth and development, present status and

future outlook are mentioned.


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CHAPTER - 3

RESEARCH DESIGN

AND

METHODOLOGY

CHAPTER OVERVIEW

This chapter will start with the restatement of the problems and hypothesis. The problems

will be spelled out and the need for this kind of study will be discussed. The research

design will include planning of a market research project, the resources required, methods

used for field work program, questionnaire design and type of questionnaire used. Finally

we will discuss the assumptions that are made along with reasons for making them.

Moreover, we will ponder over the limitations that go along with the study.


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RESTATEMENT OF THE PROBLEM AND HYPOTHESIS

The size of the global market for ceramic sanitary wares is indeed large. The global market

for ceramic sanitary wares is large, however Indian presence is limited. There is scope for

increasing Indian presence and the reasons for the dismal performance will be looked into.

Once the selection and definition of the problem have been accomplished, the derivation of

the hypothesis is the most important step in the research process. The hypothesis is a

powerful tool in research process to achieve dependable knowledge. It helps the researcher

to relate theory to observation and observation to theory. The null hypothesis of the present

study is," The Indian exporters are not able to match foreign technology and quality of

ceramic sanitary wares available in the international market ".


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DESCRIPTION OF RESEARCH DESIGN

PLANNING A MARKET RESEARCH PROJECT

In the present context the planning of a market research project by considering the need

for market research for business decision making will be discussed.

MARKET RESEARCH AND DECISION MAKING

Market research is the process of collection, analysis and interpretation of marketing

information. Decision-making is an important aspect of business management. While some

of the decisions have short-term consequences, others affect the long-term prospects of the

business. Whatever the nature of decisions taken, a common thread is the need for

information. In carrying out marketing analysis, planning, implementation, and control,marketing managers need information at almost every turn. They need information about

customers, competitors, dealers and other forces in the market place. This is where market

research has a great role to play. Marketing research specifies the information needed to

address marketing issues, designs the method for collecting information, manages and

implements the data-collection process, analyzes the results, and communicates the

findings and their implications.

Some common decision areas where market research can help are as follows

Opportunities

1. What product should we offer?

2. How should we formulate the product?

3. How much should we charge?

4. Which group of consumers are we going to supply?

5. How will we get the product to our customers?

6. How will we persuade the consumers to buy our products rather than our

competitors'?

Evaluation

1. Can we increase sales of our product?

2. Can we charge more for our product?

3. Can we supply to a different group of consumers?

4. Should we change the way we get the product to customers?

5. Should we change the way the product is offered?

Problem Solving

1. How can we increase the profit made from a product?


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2. How can we reverse a trend of falling sales?

3. How can we increase our customers' satisfaction with our products and service?

Each decision area involves making choices between alternatives. The chances of making

the best choice are increased by having reliable information at hand.

Types of information commonly provided through market research

The Market

1. The total market size

2. Who the customers are? [their profile]

3. Customer needs and requirements.

4. Market segmentation by area, customer grouping, needs or requirements.5. Trends - whether it is a growing or declining market?

The Market's Structure

1. The major players - domestic manufacturers, importers.

2. Branding

3. Distribution networks in the market

4. Market share of major players/brands

5. Major distributors and retailers

6. Trends - who is growing, declining and why?

The suppliers & Brands

1. How the suppliers operate in the market?

2. Why they are successful [or not]

3. Customers attitudes to (image of) suppliers and brands

The Product

1. Types of products within the market

2. How the products are differentiated

3. Relationship of products to market segmentation

4. Level of product innovation

5. Product Life Cycle - how long they last?

6. How the product meets customers' needs?

7. Customer's satisfaction with products

8. The need to develop/change the product

Pricing


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1. Current pricing structures

2. Past trends

3. Customers' price expectations for a product

4. Anticipated changes in purchasing following price changes

Sales Method

1. Customers' attitude to the methods used

2. Evaluation of different methods

3. Relating market potential to sales organization

4. Sales organization and market structure

Advertising1. Evaluation of advertising campaigns

2. Audiences reached by advertising media

3. Testing new advertising before / after use.

4. Relationship between advertising and product / brand perceptions

This section shows a wide range of information required to address a problem. However

the process of obtaining information is to help you to arrive at a decision and not to serve

as an alternative to decision making.

Description of Research Design

Fundamental to the success of any formal marketing research project is sound research

design. A good research design has the following characteristic viz., problem definition,

specific methods of data collection and analysis of, time required for research project and

the estimate of expenses to be incurred. A research design is purely and simply the frame

work or plan for a study that guides the collection and analysis of data. It is a blue print

that is followed in completing a study.

1. The study must be relevant to the problem.

2. The study must employ economical procedures.

Three important points about research design are

The design of investigation should stem from the problem.

Whether the designs are productive in a given problem setting depends on how

imaginatively they are applied. An understanding of the basic design is needed so that they

can be modified to suit specific purpose.

The three basic types of research design viz.

1. exploratory


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2. descriptive

3. casual or experimental

Can be looked at as stages in a continuous process. The following figure shows their inter

relationships. Explorative or formulative studies are often seen as the initial step in the

continuous research process. It is shown here that these three designs are not mutually

exclusive and a combination of all the three used in the successful completion of a

marketing research project. We start with the exploratory and go to casual through the

descriptive research. Alternatively we can select any of these research designs and take the

help of the other two designs if the situation or problem requires.

EXPLORATORY RESEARCHAll marketing research projects must start with exploratory research. This is a preliminary

phase and is absolutely essential in order to obtain a proper definition of problem at hand.

The major emphasis is on the discovery of ideas and insights. The exploratory research is

particularly helpful in breaking broad and vague problem into smaller, more precise sub

problem statements, hopefully in the form of specific hypothesis.

IMPORTANCE OF EXPLORATORY RESEARCH DESIGN

An exploratory study is used for the following purposes

1. Formulating a problem for more precise investigation or for developing hypothesis.

2. Establishing priorities for further research

3. Gathering information about the practical problem for carrying out research on

particular conjectural statements.

Flexibility and informality characterize exploratory research. Explanatory studies rarely

use detailed questionnaires. Ingenuity, judgment and good luck play a part in such studies.

Not withstanding the flexibility the research experience has demonstrated that

1. literature surveys

2. experience surveys

3. analysis of selected cases

Are particularly productive in exploratory research.

DESCRIPTIVE RESEARCH

We should also recognize the existence of many studies whose results are descriptive, not

conclusive. Most governmental and academic marketing studies probably fall within this

category. For, example a professor or doctoral student makes a study of "Food Brokers:

Their nature and functions", which is a research but descriptive in nature.


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Descriptive studies investigate phenomena in their natural setting. Their purpose is both

immediate and long range. They constitute a primitive type of research and do not aspire to

develop an organized body of scientific laws. Descriptive research differs from other

research in purpose and scope.

STEPS IN DESCRIPTIVE RESEARCH

The process of descriptive studies is not different from other forms of research. Since such

studies, describe and interpret what conditions or relationships exist at present, the

researcher may adopt the following steps

Selection of the Problem

A researcher may be concerned with conditions or relationships that exist, points of viewor attitudes that are held, effects that are being felt or trends that are developing, and may

select the problem accordingly from the area or field in which he is interested.

Statement and Definition of the Problem

The researcher must state the problem. The statement must identify the variables involved

in the study. It should specify clearly whether the study is merely seeking to determine the

present status of these variables or whether it will also explore relationships between the

variables.

Identification of Data

After stating and defining the problem, the next step for the researcher is to list the data to

be collected for the study. He has to specify whether the data are of qualitative or

quantitative nature and whether the data will be collected in the form of counts, test scores,

responses to questionnaires, interviews and so on.

Selection or Development of Tools

The nature of the data to be collected helps the researcher to select the appropriate tools for

the study. Questionnaires, interviews, psychological tests, rating scales, schedules and

attitude scales are the most frequently used tools for descriptive research. If the researcher

uses ready-made tools, he should satisfy himself about their reliability, validity and

suitability for sample chosen for the study.

Selection of the sample

The researcher must select the sample about which he wishes to seek information using

appropriate sampling techniques. The sample selected should adequately represent the

population.

Collection of Data


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The researcher should specify the practical schedule for gathering the data from the sample

selected for the study with the help of appropriate tools.

Analysis and interpretation of Data

The data collected is quantified in the form of counts, test scores, responses to

questionnaires, etc. These are analyzed and interpreted with the help of appropriate

parametric or non-parametric statistical tests.

Writing of the Research Report

It is the last stage in the descriptive research as in any other form of research. The

researcher should exercise extreme caution in generalizing conclusions and reporting them

with all the limitations of the study.

A RESEARCH PLAN

The second step of the marketing research process calls for determining the information

needed, and developing a plan for gathering it efficiently. The elements of a research plan

are as follows

1. Analysis of the requirement for research

1. Give some context - the business's involvement in the subject of the research.

2. Briefly describe any past events that led unto the present situation.

3. State what the present situation is and how this fits in with wider business goals.

4. Outline business options that are available.

5. Indicate what information, relevant to the requirement, is available and what

confidence can be put on it.

The purpose of this research is to delve deep into the problems in the International

marketing of ceramic sanitary wares manufactured by MACL.

2. Stating the research objective

A statement of research objective should describe what would be achieved by carrying out

the research. These objectives should meet the business requirements covered in the

analysis stage. Our research objective is to study the problems in the international

marketing of ceramic sanitary wares manufactured by Muthoot APT Ceramics Ltd.,

Cochin.

3. Information needed to meet the objective


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It is important to distinguish between the information needed to meet the objective and the

objective itself. The objective is a statement of an intention to provide data relevant to a

marketing problem, but in itself it does not indicate what the research must find out. The

research project is constrained by both time and costs, and it is but natural that some

compromises will have to be made in the depth and breadth of the information we propose

to cover.

4. Research methods

This element of the plan describes how the work will be carried out. The sources of

research information are conveniently classified as either primary or secondary. Anunderstanding of what can be obtained through desk research, how to plan fieldwork, the

role of questionnaires and how to use them in interviewing is all needed in before research

methods of a plan can be written. Secondary information is the one that has already been

collected usually for some purpose quite unconnected with our requirement. Primary

research on the other hand is needed to collect factual information to refine the data that is

uncertain or too broad. Quantitative data is concerned with understanding the subjects of

the research from within; it is very much concerned with attitudes and motivations.

Resources required

Market research in most respects is labor intensive and outside data analysis (especially

processing of questionnaires, which are beyond the impact of information technology.

Time factor is the most important element for any market research project.

1. Desk Research

Generally two man-days spent in a library supplemented by telephone 'overview'

interviews would produce the data.

2. Telephone interviews

The number of telephone interviews that can be carried out in a day is often more

dependent on the time needed to locate appropriate respondents than on the length of the

interview itself. Lengthy questionnaires are costly to be administered on telephone

3. Face-to-face interviews


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Considerable time is spent on travelling. If the respondents are scattered it may prove too

costly. If the respondents are geographically concentrated and easily accessible, then this

type of interviewing is beneficial.

4. Postal surveys

They can be employed when the responses are not subject to time constraints. Since time is

a key factor in market research projects, the same may not prove beneficial here.

Non-interviewing methods

1. Postal survey

2. Observation

Face to face interviewing involves a meeting between the person collecting the data andthe person giving it for consumer research. Our area of interest in face to face interviews is

business to business research, which are mostly carried out in the respondent's work place.

For quality information, in-depth information is needed. In business to business research

the respondent's view reflects the view of the organization. Telephone interviews can be

carried out in both consumer and business to business research; either as a stand-alone

method or in conjunction with visits or a postal survey. Combining a postal survey with

telephone interviews can overcome some limitations of each individual method.

Observation is another non-interviewing fieldwork method.

Selection of Appropriate Fieldwork Method

We now consider when and why to use one fieldwork method rather than another. A

number of factors are relevant and in a study it may be necessary to make a compromise to

resolve conflicting requirements.

1. Information

Nature of information to be sought is the most important factor to be considered.

Quantitative data usually requires the collection of standardized data from a reliable and

representative sample. Either face to face or telephonic interviews can be considered.

Attitude measurement using scales is a type of quantitative data, often based on a large

number of interviews. For collecting qualitative data, in-depth interviews or group

discussions are advisable. However it is worth considering other methods of data

collection, especially when both qualitative and quantitative data are to be collected from

the same respondent. For qualitative data, open-ended questions are a comfortable

alternative.

2. Respondents


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The nature and location of respondents may affect selection of the fieldwork method. For

respondent group with low level of literacy, postal surveys cannot be used. Street

interviewing is not advisable for elderly or working class people.

3. Interviewing Requirements

Special requirements may favor or rule out a particular field work approach. Telephonic

interview is not feasible when something has to be shown to the respondents. Likewise

when a product has to be shown or tested, then a hall is required unless a home placement

is more appropriate. In our study, the Managing Director of MACL was interviewed face

to face at his office.

4. ResourcesThis is concerned with practical constraints and they may result in compromises on either

method or fieldwork used or on sampling procedure. The ideal research method may not be

feasible owing to the affordability criterion.

Strengths and Weaknesses of the three contact methods

PERSONAL MAIL TELEPHONE

1. Flexibility Excellent/ Poor/ Good

2. Quantity of data that can be collected Good/ Fair/ Excellent

3. Control of interviewer Excellent/ Fair/ Poor

4. Control of sample Fair/ Excellent/ Fair

5. Speed of data collection Poor/ Excellent/ Good

6. Response rate Poor/ Good

7. Cost Good/ Fair /Poor

CHOOSING THE RESPONDENT

In case of business research, who should be interviewed has to be given much thought. The

respondents must be in a position to give factual data to arrive at the prevailing

international market situations. The respondents must have first hand knowledge of the

ceramic sanitary ware markets and the global scenario.

QUESTIONNAIRE DESIGN


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Preparing questionnaires or observational forms is one significant step in research that may

be done properly by watching for the many pitfalls and following an orderly procedure.

The neophyte in this work should be warned, though, that no questionnaire has been

perfect and that an adequate one requires painstaking effort.

A CLASSIFICATION OF QUESTIONNAIRES

Type of

Questionnaire

Structured

Semi-structured

Unstructured

Areas of use of Questionnaire

Used in large interview

programs

(Over 50 interviews) where it

is possible to anticipate closely

the responses.

Used where there is need to

accommodate widely different

responses and where the

responses cannot be

anticipated.

Used for in-depth interviewing

of consumers both one to one

and groups. Allows probing

and searching where a skilled

researcher is not fully sure of

the responses before the

interviews.

Administration of the

Questionnaire

Street interviews,

Home interviews,

Telephone,

Self-completion,

Face to face

Face to face,

Telephone

Home interviews,

Group discussions,

Industrial visit

Interviews,

Telephonic interviews


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Types of Questions

1. CLOSED-END QUESTIONS

Name Description

Dichotomous

A question offering two answer choices

Multiple choice

A question offering three or more answer choices

Lickert Scale

A statement with which the respondent shows the amount of agreement/disagreement

Semantic

A scale is inscribed between two bipolar words, Differential and the respondent selects the

point that represents the direction and intensity of his or her feelings.

2. OPEN- END QUESTIONS

Name Description

Completely Unstructured

A question that a respondent can answer in an almost unlimited number of ways.

Sentence completion

Incomplete sentences are presented and the Respondents are asked to complete it.

Story completion

Incomplete story is presented and the Respondent has to complete it.

Thematic ApperceptionA picture is presented and respondents are asked Test (TAT) to make up a story on what

they think is happening or may happen.

GENERAL PRINCIPLES OF QUESTIONNAIRE DESIGN

1. Keeping the objectives in mind

Every survey has a purpose, which is defined on paper, and the objectives spelt out. The

first step in questionnaire design is, therefore, to write down the objectives of the survey

and then list the key subject areas where information is required. Then assign an order ofpriority to each subject.

2. Drafting the Questions


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Ask the following questions

1. Will the question be understood in the way that I intended?

2. How many different ways could this question be interpreted?

3. Is this question likely to annoy or offend?

4. Is there a better way of asking the questions?

3. Pitfalls to avoid in the designing of Questionnaire

Avoid lengthy questionnaires. Make it short and sweet. Nobody likes a time

consuming endeavor and the responses may suffer.

Avoid long or complicated questions. Make the language simple and easy to

understand. Incorporate only one idea or instruction per questionnaire.Avoid unreasonable questions. The respondent should not be forced into guesswork.

Avoid 'loaded' questions. Loaded questions are biased and may elicit inaccurate

responses.

4. Fine tuning the questionnaire

Once the draft copy is prepared, revise it for corrections keeping in mind the features of a

good questionnaire and by steering clear of the pitfalls in questionnaire design. The order

of questions is adjusted to enhance the flow and ambiguous questions are removed. A test

or dummy run of the questionnaire is advisable and it can be timed to arrive at the average

time required to finish the questionnaire. Fine-tuning of the questionnaire will flush out the

weaknesses in the questionnaire in terms of the meaning of questions or length of

questionnaire or its flow.

DESCRIPTION OF RESEARCH DESIGN OF THIS STUDY

The research design is the major blue print according to which the result is to be

conducted. The research design specifies the methods of data collection and data analysis.

In the preliminary phase exploratory research was conducted to obtain a proper definition

of the problem at hand. It helped in formulating the hypothesis for further research. The

study also makes use of descriptive research in order to analyze the problem and come up

with solutions. Sources of data included both internal as well as external. Primary data was


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collected using questionnaires and by mailing them to the employees of the organization

on their mailing ids. Secondary data was collected from magazines, journals, textbooks,

newspapers, Internet web sites etc Non probability sampling was used. The researcher has

used judgment sampling to choose the elements of the sample. The sample size is 25% of

the population.

METHODOLOGICAL ASSUMPTIONS AND LIMITATIONS

ASSUMPTIONS

Data was collected from the customers by using both the questionnaire method and the

observation method It is hoped that the sample size portrays the true picture.The

questionnaire and interview methods were employed to gather data.LIMITATIONS

Due to time and money constraints the sample size is limited and probably not

enough.Due to the large International market and dispersed market players, the attention

devoted to each player may not be sufficient.The data gathered may be biased in favor of

the respondents.

Summary

This chapter starts with the chapter overview wherein a briefing of the entire chapter is

made. The problems and hypothesis is restated. The problems are spelt out and the need for

the study is discussed. The research design is thoroughly explained. It includes a plan of a

market research project, the resources required, methods used for fieldwork program,

questionnaire design and type of questionnaire used. Finally the assumptions that are made

along with reasons for making them are mentioned. The limitations that go along with the

study are listed.


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CHAPTER - 4

SOURCES

OF

DATA

PRIMARY DATA

Primary data can be expressed in simple terms as information collected for the specific

purpose at hand. Good decisions require good data. Just as researchers must carefully

evaluate the quality of secondary information they obtain, they must also take great care in

collecting primary data in order to gather relevant, accurate, current, and unbiased

information.

Planning Primary

RESEARCH CONTACT SAMPLING RESEARCH

Data Approaches

APPROACHES METHODS PLAN INSTRUMENTS

Observation, Mail Sampling unit Questionnaire

Survey, Telephone, Sample size, Mechanical instruments

Experiment, Personal Sampling procedure

Interview Planning


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Having decided on the size of sample required and the method of data collection to be

used, the interview schedule can be ascertained. The quality of market research greatly

depends on the questions asked and the responses elicited. The following points may be

noted:

1. Be pleasant.

2. Assure the respondent of the genuineness of the research.

3. Don't beat about the bush.

4. Explain what is required of the respondent.

5. Adopt a positive approach.

6. First impression is the best impression; therefore the first few minutes areparamount for the success of the interview.

7. Ensure the accuracy of responses obtained.

8. Stick to the prepared questionnaire.

9. Respect valid objections.

The questionnaire designed for collection of primary data elicits responses on the

following

1. Pricing mechanism adopted

2. Specific Markets for the products

3. Market strengths and weaknesses

4. Market share

5. Product range

6. Brands

7. Channels of distribution

8. Promotional aspects

9. Competitors

10. Government policies/regulations

SECONDARY DATA

Secondary data consist of information that already exists somewhere, having been

collected for another purpose. Secondary data may be described as those data that have

been compiled by some agency other than the user. When the needed data are available

from secondary sources, either within or outside the organization that can be a fine

economy. Sources of existing data should be practically exhausted before seeking original

data.


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Uses of Secondary Data

1. A prerequisite to the conduct of marketing research is an adequate understanding of

the problem situation. This understanding typically is based to a large extent on

secondary data.

2. Further use of secondary data often is in exploratory search for hypothetical

solutions to the problem, suggested or inspired by others' publications and data.

3. In carrying out conclusive research to verify the expected effect of hypotheses

under consideration, several uses may be made of secondary data. One is

examining the methods employed in studies of similar nature for guidance in a

project design to gather primary data.4. Secondary data are essential in planning the sample from which primary

information is to be obtained. They may be used to describe the target population

that is to be sampled, as parameters and guides in the actual sample selection

process, and as bases for validating the obtained sample.

Sources of Secondary Data

1. Internal sources

Internal sources include company profit and loss statements, balance sheets, sales figures,

sales call reports, invoices, inventory records, and prior research reports.

2. Government publications

Various press releases and Government Gazettes provide information of secondary nature.

3. Periodicals and books

Various export magazines, business publications like Business week e.t.c, are a store house

of information.

4. Commercial Data

There are numerous commercial houses selling data to subscribers. The secondary data for

this study was obtained from Business magazines, Export journals and other sanitary wear

literature. The sales performance of a company is partly due to its marketing efforts in a

competitive environment and partly due to the result of trends within the market. Plotting a

Company's sales over time may give an idea of the shape and movement of the market.

Every company should make an effort to track its performance against the size of the

market and in doing so plot its market share. Changes in the market shares are signal for

action. An increase in market share may mean that a promotional campaign is working, the

competitor is on a decline or product is priced too low. A decline in market share may


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mean that a product has been usurped by the competition that competitors are more

aggressive in their marketing, distribution channel is too poor or prizes are too high. In any

case, plotting the Company's sales against market should raise questions and it may prompt

an investigation. Thus your own Company as a source of information is very important.

COMPARISON OF PRIMARY AND SECONDARY DATA COLLECTION

DATA COLLECTION

In a broader sense we can say that two types of data are available to a researcher. These are

1. Primary data

2. Secondary data1. Primary data

Primary data is obtained when a particular problem at hand is investigated by the

researcher employing mail, questionnaire, telephone surveys, personal interviews,

observations and experiments.

Merits of using primary data:

1 The amount of information procured on each aspect is larger.

2. As there is personal interaction between interviewer and respondent, the data obtained

are more reliable.

3. The result can be projected to the relevant universe with a greater degree of accuracy

Limitations of using primary data

1. The cost involved is relatively higher.

2. The respondents may refuse to co-operate with the investigator

3. Bias may occur when the sample chosen to be surveyed is not really representative of

the population

2. Secondary data

Secondary data on the other hand include those data which are collected for some earlier

research work and are applicable or usable in the study the researcher has presently

undertaken.

Merits of secondary data

1. Secondary data is unbiased. It is in no way affected by the objectivity of the

researcher.


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2. The secondary data obtained for research purposes are more economical than

primary data.

Limitations of secondary data

1. Finding data to suit the specific project is cumbersome.

2. It is tiresome to find data of known accuracy

Selecting a survey technique

The seven major factors involved in selecting a survey technique are

1. Cost of collecting the data

2. Speed of getting desired response

3. Accuracy of the data4. Amount of data gathered

5. Response rate

6. Flexibility of the technique

7. Degree to which sample represents the population

SAMPLING PROCEDURE

It would be impracticable, if not impossible, to test, to interview or observe each unit of the

population under controlled conditions in order to arrive at principles having universal

validity. Some populations are so large that their study would be expensive in terms of

time, money, effort, and manpower. Sampling is the process by which a relatively small

number of individuals or measures of individuals, objects, or events is selected and

analyzed in order to find out something about the entire population from which it was

selected. The representative proportion of the population is called a sample. To obtain a

representative sample, the researcher selects each unit in a specified way under controlled

conditions. Usually four steps are involved in the process

1. Defining the population

2. Listing the population

3. Selecting a representative sample

4. Obtaining an adequate sample

Generally larger the sample, the greater the accuracy, provided it is selected in an

appropriate way. Diminishing returns apply, however, and the increased accuracy from

additional interviewing may be very small and not worth paying for. The ideal sample is


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generally drawn randomly. In fact, pure random sampling is very rarely used. This applies

to this study also, because cooperation from the respondent's part is essential. The target

population or universe in this study is made up of all the ceramic sanitary ware

manufacturers who engage in exports. The entire population consists of about 20 known

ceramic sanitary ware exporters. The number of respondents included in this study is 5,

which amounts to 25% of the population. The researcher has used Non-probability method

of sampling. Judgment sampling is used to purposefully select the specific members of the

sample in a random method. The researcher according to his judgment has chosen the

members of the sample that would constitute a proper cross section representing the

parameters of pertinence to the research.A listing of every element in the population or universe would constitute a perfect

sampling frame. In reality, though, most sampling frames are found to be far from perfect,

owing to omissions, incomplete data, and outdated information. The sampling techniques

used in this study may also suffer from any of the above mentioned defects. Since, it is

practically impossible for a smaller segment of a population to be exactly representative of

the population, some degree ofsampling errorwill be present whenever we select a

sample. This error is the result of chance. Non-sampling error is everything else besides

sampling error that may inject inaccuracies and bias into the results of a study. It goes

without saying that the study may have non-sampling errors but every step has been taken

to minimize non-sampling errors.

CHAPTER - 5


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PRESENTATION

OF

TABULATED DATA

Classification of Data

Classification is arranging the data according to points of similarities and dissimilarities.

The common types of classification are quantitative, geographical and chronological. The

objectives are

1. To prepare data in to homogeneous groups.

2. To prepare data to be presented in tabular form

3. To condense the mass of data in such a way that its salient features are highlighted.

4. To facilitate comparisons between variables

Data are classified into primary and secondary. Primary data is collected for meeting the

specific objectives of research study. Primary data is collected for meeting the specific

objectives of research study. The primary data is mainly collected by using questionnaires.

Secondly data is defined as data collected earlier for a purpose other than one currently

being pursued. Data which is available prior to the commencement of a research study is

secondary data. The data classified here is primary data collected from sources.

TABULATION


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Factors influencing buying decision

FACTORS No. of respondents

Price

2

Shape

2

Others

1

Price 40%, shape 40%, and other factors 20%

Table 5A

Countries to which exports have failed

Serial No. Name of the country

1.

South Africa

2.

China

3.

Namibia

Table 5B


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Reasons for failure of exports to these countries

S.No Reasons No of respondents

1.

Low prices 2

2. Low demand for

quality products

2

3.

Others

1

Table 5A1

Promotional Inputs

S. NO Promotional Inputs

1.

Product brochures

2.

Product leaflets


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3.

Floppy disks

4.

Internet Web sites and home pages

Table5B1

Price mechanism adopted for the international market

S.No Price mechanism No. of respondents

1. Uniform prices pegged to

the U.S.$

0

2. Different prices for

different markets

5

Table 5C

Whether marketing research is conducted on an ongoing basis?

Query result No of respondents

Yes, marketing research is conducted on

an ongoing basis to identify changing

customer preference

5

No, marketing research is not conducted

on an ongoing basis to identify changing

customer preference

0

Table 5D


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Common problems faced by sanitary ware manufacturers

S.No Common Problems

1.

Resistance to Indian products

2.

Freight charges

3.

Breakage in transit

4.

Rapid changes in design and

5.

High Research and development costs

Table 5C1

CHAPTER - 6

ANALYSIS

AND

INTERPRETATION

THE DATA


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Analysis and interpretation of data

Table 5A Factors influencing buying decision

Out of the 5 respondents, 2 have agreed on the price of the products and 2 on the shape of

the products and 1 has mentioned other factors. From the responses collected it is evident

that price and shape of the sanitary fittings are the most important factors influencing

buying decisions.

Table 5B Countries to which exports have failed

From the responses received the three countries to where exports have failed are South

Africa, China and Namibia. The reasons given for this are that the demand for luxury itemsis low and the price of the sanitary wares in the domestic markets are too low and Indian

manufacturers do not find it feasible to export quality products at that price

Table 5C Price mechanism adopted by Indian manufacturers for the Export market

All 5 respondents price their products depending on the markets. None of them have

pegged their pricing mechanism on the dollar. The importance of flexible pricing is evident

from this. Differentiated pricing policies for different markets are surely better than

pegging prices to the dollar as the benefits far outweigh the disadvantages.

Table 5D whether the respondents carry out Marketing Research at regular interval

All the 5 respondents have agreed that they carry out marketing research at regular

intervals to identify changing customer perception. Constant change in strategies according

to the inputs received from the market research enables to fight the competition better.

Table 5A1 Reasons for failure of export .to South Africa, China and Namibia.

The reasons for failure in exports to South Africa, China and Namibia can be attributed

mainly to the following

1. Low prices

2. Low demand for quality products

Table 5B1 various promotional inputs used by the exporting companies

According to the responses received the promotional inputs of the various ceramic sanitary

ware-exporting firms include the following

1. Product brochures

2. Product leaflets

3. Floppy disks and

4. Internet Web sites and home pages.


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Table 5C1 Problems faced by the ceramic sanitary ware manufacturing companies

who export

There are a few common problems faced by the companies engaged in the manufacture

and export of Indian ceramic sanitary wares. Some of the prominent ones include the

following

1. Resistance to Indian products

2. Freight charges

3. Breakage in transit

4. Rapid changes in design and

5. High Research and development costs

CHAPTER - 7

RESULTS

OF

THE STUDY

The Indian ceramic sanitary ware industry has a number of players who export their

merchandise to the global market place. It is true that the Indian share of the global market


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is limited and the market share negligible. However, the ceramic sanitary ware produced in

India, especially the merchandise for exports are of good quality and conform to the BIS

standards and other International standards. The hypothesis," The Indian exporters are not

able to match foreign technology and quality of ceramic sanitary ware available in the

international market", is the null hypothesis of the present study. The study has revealed

that the alternate hypothesis is true. Therefore, the null hypothesis has been rejected.

CHAPTER - 8

SUMMARY


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Table 5A Factors influencing buying decision

Out of the 5 respondents, 2 have agreed on the price of the products and 2 on the shape of

the products and 1 has mentioned other factors. From the responses collected it is evident

that price and shape of the sanitary fittings are the most important factors influencing

buying decisions.

Table 5B Countries to which exports have failed

From the responses received the three countries to where exports have failed are SouthAfrica, China and Namibia. The reasons given for this are that the demand for luxury items

is low and the price of the sanitary wares in the domestic markets are too low and Indian

manufacturers do not find it feasible to export quality products at that price.

Table 5C Price mechanism adopted by Indian manufacturers for the Export market

All 5 respondents price their products depending on the markets. None of them have

pegged their pricing mechanism on the dollar. The importance of flexible pricing is evident

from this. Differentiated pricing policies for different markets are surely better than

pegging prices to the dollar as the benefits far outweigh the disadvantages.

Table 5D Whether the respondents carry out Marketing Research at regular intervals?

All the 5 respondents have agreed that they carry out marketing research at regular

intervals to identify changing customer perception. Constant change in strategies according

to the inputs received from the market research enables to fight the competition better.

Table 5A1 Reasons for failure of export to South Africa, China and Namibia.

The reasons for failure in exports to South Africa, China and Namibia can be attributed

mainly to the following

1. Low prices

2. Low demand for quality products

Table 5B1 various promotional inputs used by the exporting companies

According to the responses received the promotional inputs of the various ceramic sanitary

ware-exporting firms include the following

1. Product brochures

2. Product leaflets


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3. Floppy disks and

4. Internet Web sites and home pages.

Table 5C1 Problems faced by the ceramic sanitary ware manufacturing companies

who export

There are a few common problems faced by the companies engaged in the manufacture

and export of Indian ceramic sanitary wares. Some of the prominent ones include the

following

1. Resistance to Indian products

2. Freight charges

3. Breakage in transit4. Rapid changes in design and

5. High Research and development costs

6. Different standards to conform to in different countries or regions

CHAPTER - 9

CONCLUSIONS


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The study has revealed that

1. The Indian ceramic sanitary wares produced for export are not inferior to that of

those produced by international players.

2. The quality standards of Indian export merchandise are high.

3. The Indian Government offers encouragement to export firms on continuous basis

to boost exports.

4. There is a large market for ceramic sanitary wares

5. The Indian ceramic industry has good growth prospects.

6. As there is great scope for growth, the ceramic industry can accommodate manymore players. This can be explored and exploited by interested entrepreneurs.

CHAPTER - 10

RECOMMENDATIONS


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Recommendations

With the proper understanding of goals, policies and actions of countries globally, the

exporters have to develop a culture of devising their own specific goals, strategies andpolicies. India, as a country, may have to meet the cost of getting into global strategic

alliances and market chains, achieving the necessary market share, for which companies

must grow. Thereby, the government can better equip the exporters to deal with the

international competition.

Marketing Strategies

Packaging

Packaging plays a great role in product safety but above all, good packaging creates instant

consumer recognition of the company or brand. Packaging also gives the first impression

of the product to the customer. A well-packaged item is always associated with a good

manufacturer. After selecting and introducing a package design, the company should check

the packaging concept in the face of advances in technology and change in consumer

preferences.

Overseas Market Surveys

The tastes and preferences of the consumers are bound to changes. In keeping with this

notion, MACL should not produce standardized products but indulge in innovative

products.

To ascertain the needs of the customers, overseas market surveys are to be conducted at

regular intervals through efficient agencies.

Tailor made products

The need for tailor made products is assuming significance in the present world market

scenario. MACL should be in a position to tap this market by offering products tailor made

to the needs of the customer, thereby enhancing the prestige of the company and tapping a

fast growing market.


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Strategic alliances

Better market access is possible by establishing strategic alliances. The strength of

distributionis crucial in deepening and widening market penetration. Therefore instead of

building a distribution channel and logistics, using up a developed one through alliance

will be more appropriate.

Image Building

The image building exercise is to be viewed as a process. The international market does

not have a favorable impression of most Indian goods. An image building exercise will go

a great way in promoting the standards and quality of Indian products in internationalmarket. The next step would be to tackle the problem of "facelessness" of Indian products.

Finally, the Indian manufacturers will be in a position to place the "made in India" stamp

with pride instead of having a faceless presence in the world market.

Advertising

Effective print advertisements can be used in trade journals, magazines e.t.c., to instill the

presence of Indian brand sanitary ware in the market. The quality of products and their

research and development can be highlighted to evoke positive influences on the buyers.

Niche marketing

A carefully formulated strategy of niche marketing would give a tremendous boost to the

marketing of Indian products and Indian Brand names. Potential markets ignored can be

chosen for gaining entry and building a market share.

Agreements and contracts

The Company can also enter into long term agreements and contracts for marketing its

products.

Trade shows

The Company can participate in foreign trade shows. These trade shows draw a large

number of buyers who view new products in a few concentrated days. The manufacturer

sees how buyers react to various product features and terms and can assess buyer interest

and purchase intentions.

Export marketing channels


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Knowledge about the whole set of inter-related marketing agencies which are involved in

making the goods available from the producer to customers is important to the trader to

enable him to tailor his marketing scheme appropriately. Therefore, he should know the

available marketing channels. He should also know the most appropriate channel to link

the domestic operations to the overseas channel.

How an Export Management Company can assist you?

An Export Management Company (EMC) represents a manufacturer as their Export Sales

Department to develop international sales on their behalf. An EMC offers a firm immediate

expertise in international sales and marketing. An EMC represents manufacturers of

complementary, related products, but not competitive. An EMC is paid a commission on

sales made for the manufacturer, but only after the products have been shipped, and the

manufacturer has been paid. An EMC absorbs all selling costs, meaning NO FINANCIAL

RISK, NO STAFF COMMITTMENTS, and NO ADDITIONAL EXPENSES borne by the

manufacturer. An EMC will find, screen, select and appoint commissioned representatives

and distributors for your products, and will manage them for you.


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CHAPTER - 11

APPENDIX

BLANK QUESTIONNAIRE

1. Name the countries that buy from you in the International market. Also please specify

the quantum of purchase (U.S. $ value or Indian Re. value on an average since inception)

S.

No

Country Quantum of

purchase

Market share in %

1.

2.

3.

4.

5.

6.


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7.

8.

9.

10

Checklist your product ranges

a. Bathroom Accessories

b. Closet with cistern

c. Washbasin with pedestal

d. Shower enclosure & cubicle

e. Vanity Basin

f. Cloak room basin

g. Bidet

h. Towel holder

Other (please specify)_______________

Explain the Brand name strategy adopted by MACL.

_________________________________________________________________________

_________________________________________________________________________

__________

2 a) What factors motivate these countries to buy from you?

__________________________________________________________________________________________________________________________________________________

__________

b) Could you name any country or countries where you have tried to export but failed?

_________________________________________________________________________

_________________________________________________________________________

__________

c) What factors went against you?


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_________________________________________________________________________

_________________________________________________________________________

__________

3. How do you source your buyers? (Indicate 4 or 5 critical mechanisms for sourcing)

_________________________________________________________________________

_________________________________________________________________________

__________

4. Name some critical promotional input through which you create demand for your

products in International market.

__________________________________________________________________________________________________________________________________________________

__________

5. What price mechanism do you adopt for your products in the international market?

1. Uniform prices pegged to the U.S.$

2. Different prices for different markets

_____________________________________________________________________

6. Do you have any preset standards for pricing or do you go for negotiable pricing. Please

explain.

7. How do you make your products available to your customers in the International

market?

1. Direct

2. Through channels

If 2) please explain the channel procedure.

________________________________________________________________________

_________________________________________________________________________

________

8 a) Do you conduct marketing research as an ongoing process to identify changing

customer perception? Yes/ No

_____________________________________________________

b) If so, what sort of basic research do you conduct?

_________________________________________________________________________

_________________________________________________________________________

__________


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9. How do you keep yourself up in terms of technological advances, changing customer

tastes and preferences etc.?

_________________________________________________________________________

_________________________________________________________________________

_________

10. How do you meet competition at the International level?

_________________________________________________________________________

_________________________________________________________________________

__________

11 a) What are the major problems you face in your line of business? Please explain indetail.

_________________________________________________________________________

_________________________________________________________________________

_____

b) How friendly or unfriendly are the Government policies in boosting sanitary wares?

Please support your answer with figures.

_________________________________________________________________________

_________________________________________________________________________

_____

12. What changes do you foresee in the ceramics sanitary wares market in the light of

globalisation with reference to India?

_________________________________________________________________________

_________________________________________________________________________

__________

13a) Please name your competitors in India who export ceramic sanitary wares.

_________________________________________________________________________

___________________________________

MBA Symbiosis Project

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