Project Report on Marketing Reserch
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Transcript of Project Report on Marketing Reserch
PROJECT REPORT
Submitted for the partial fulfillment of the requirementfor the award
of
MASTER OF BUSINESS ADMINISTRATION (MARKETING)
SUBMITTED BY
Varun pandey
INVERTIS INSTITUTE OF ENGENERING & TECNOLOGY
ACKNOWLEDGMENT
I take this opportunity to thank all the people who helped me with valuable inputs
guidance and suggestions during my tenure of project, without which this report
would not take its final shape.
I thank Mr. Pradep Pandey , Manager HR, who spared his valuable time and give
me the opportunity to work and understand this project in H & R Johnson (India)
Limited and guide me through out this project.
Varun pandey
CERTIFICATE
To whomsoever it may concern
It is certify that Mr. Varun pandey has undergone training from 25 July to 30 August
in H & R Johnson (India) to study “ Marketing research at HRJ”
FOR H & R Johnson (India)
(A Division of Prism Cement Ltd)
Preface
Topic of study:
A comprehensive study of Marketing Research programs in H & R JOHNSON
(INDIA)
Rational behind the study:
PrefaceThe word "Ceramic" has originated from the Greek word, "Keramos", which meanspottery. It also relates to an ancient Sanskrit word whose root meaning is “to burn,”but it is predominantly used to indicate "burnt stuff". Almost 10,000 years later, withthe establishment of settled communities, tiles were manufactured in Mesopotamiaand India. The first instance of functional pottery vessels being used for storing waterand food is thought to be around 9,000 or 10,000 BC. Clay bricks were also madearound the same time.The ceramics industry in India came into existence about a century ago and hasmatured over time to form a industrial base. From traditional pottery making, theindustry has evolved to find its place in the market for sophisticated insulators,electronic and electrical items. Over the years, the industry has been modernisingthrough new innovations in product profile, quality and design to emerge as a modern,world-class industry, ready to take on global competition.Though there are a number of large companies in the ceramics sector, small andmedium enterprises (SMEs) account for more than 50 per cent of the total market inIndia, offering a wide range of articles including crockery, art ware, sanitary ware,ceramic tiles, refractory and stoneware pipes among others. Most of the players aregrouped together in clusters.Over the last two decades, the technical ceramics segment has recorded an
impressive growth propelled by the demand for high-alumina ceramics, cuttings toolsand structural ceramics from the industry. Overall, the Indian ceramics industry hasemerged as a major manufacturer and supplier in the global market.
Scope Of The StudyCeramic tile comes under ‘Building Material Industry’. Over the years, Indian BuildingMaterial Industry poised to grow at a fast pace of almost 16%/annum due to boom in5real estate and construction industry. Increase in income levels and availability of arange of financing options for housing is enabling rapid growth in housingconstruction.In India, particularly in NCR region, growth rate of building material industry is at veryhigh and constantly growing. By this project finding, we have been trying to catch theopportunities and demand of various tile making organisations for their commercialand residential needs in Ghaziabad and Meerut region.Also as marble prices begin to pinch purses in these times of meltdown, tiles aremaking deeper inroads into urban homes. And they are getting more designermakeovers to suit market demands.
Objective Of The StudyOur soul objective of this report confines with these facts-To know the nitty-gritty of Ceramic tile industry as much possibleDetermine the market size and potential of all the organise and unorganisedplayersA comparative analysis among some major players of tiles industry , especiallyin Ghaziabad and Meerut region in terms of Quality, Brand Equity, Price andCustomer Service.Further scope and opportunity analysis.
Methodology of data collection:
i. Going through the records:
I would like to go through relevant files and the company has carried out
documents from where can get an idea about the different types of training
and development & PEROFAMNCE APPRAISAL procedure
ii. Feedback from the employees through the interview and written
questionnaire.
For evaluation the effectiveness of training and development programs &
performance appraisal, I have taken feedback from employees that how much
they get benefit from those programs. At last I would like to take suggestion
for future improvement.
CONTENT
1. Company Profile
2. Company products
3. Objective of study
4. Marketing Research
5. Training Need Identification
6. Competitors performance
7.
8. Data Analysis & Interpretation
9. Suggestions & Limitations
Annexure
Bibliography
Chapter -1
COMPANY PROFILE
H & R Johnson (India)
Established in 1958, H & R Johnson (India) is the market leader in the field of ceramic tiles in India. HRJ has consistently maintained its leadership position in the field of tiles over the past five decades. Today, HRJ enjoys the reputation of being the only company in India to offer end-to-end solutions of Tiles, Sanitaryware, Bath Fittings and Kitchens. Under its flagship brand, Johnson, HRJ offers glazed wall and floor tiles, bath products, kitchens, laminate and engineered wooden flooring. Marbonite brand offers a complete range of vitrified tiles, and Endura offers industrial tiles and tiles for special applications like bathrooms / high traffic areas / swimming pools etc. HRJ has recently launched top-end, premium range of products under Johnson Ceramics International brand. HRJ has a strong service network of technicians and engineers spread across the country. This network complements the range of bath products by offering various services like installation, trouble-shooting, repairs, and AMC. HRJ also has a toll-free customer helpline: 1-800-22-7484. HRJ's sales volume for the year 2008-09 was 37 million m2 of tiles and plans to achieve 90 million m2 by 2014-15
H & R Johnson (India)(A Division of PRISM CEMENT LTD) is India No1 Tile
company. its comprise India most sought after brand Johnson Ceramic
International (JCI)Johnson,Marbonite,Endura.As member of Johnson ceramic
UK ,company always strive for excellence in products & services.
Professionally managed company
Adopted modern management practice
High emphasis on training
Yearly Performance appraisal of EVERY EMPLOYEE
Informal work environment
Brief highlight
Member of Johnson ceramic UK
India’s only tile company to cross turnover of 1000 crore.
Pioneers in the Indian tile industry
Multi brand company with 4 brand
India’s only complete bathroom solution provider company
Modern manufacturing plant at 5 location
World most modern plant at Pen Maharashtra
ISO 9002, ISO 14001 & OHSAS 18001 certification for all plant.
Company Leadership through……………………
HRJ pioneered some of the key innovations in the Indian ceramic tile industry. These are:
Anti-skid tiles for bathrooms. Specially designed tiles for kitchen floors and walls. Joint-free porcelain tiles marketed under the brand Johnson Porselano series. Vitrified tile in large formats under the Marbonite brand. Large-format joint-free Monoporosa tiles, India’s first water repellent tiles marketed
under Johnson Pioneered acid / alkali resistant tiles for industrial floorings marketed under Endura
HRJ DISTRIBUTION NETWORK
HRJ PRESENCE AT INDIA
HRJ distribution network is the largest in the country comprising of 1200 dealers and
15,000 sub-dealers spread across the length and breadth of the country. In addition, we
also have 22 branches and warehouses that give us a tremendous reach in the
marketplace.
HRJ WORLDWIDE PRESENCE
HRJ association with Johnson Ceramic International ensures that consumers can find
our tiles across the world. Our products are sold in all continents of the world and we
take pride that the Johnson name is globally associated with high quality design led
products.
HRJ MARKET SHARE
DETAIL MARKET SHARE RANK
ALL INDIA 21% 1
SEGMENT WISE DISTRIBUTION
WALL TILE 28% 1
FLOOR TILES 18% 1
VITRIFIED TILE 30% 1
International alliances
Collaboration with M/S Delta, USA.
M/S Huppe,Germany
M/S Vitra,Turkey
M/S BAL,UK
M/S SACMI & ANCORA,ITLAY
HRJ VISION
“Improving lifestyle of our customers by providing
innovative products and services.”
CORE VALUE
Honesty, integrity & fairness
People as source of our strength
Passion for excellence
Team working
Innovation
Entrepreneurship
Chapter-2
COMPANY PRODUCTS
Company manufactured the following brand of tiles.
JOHNSON-both wall & floor ceramic tiles for residential application such as
bathroom, kitchen, living room etc
Various sizes under Johnson brand
Wall tile Floor tile
108x108(4x4) 200x200(8x8)
200x200(8x8) 300x300(12x12)
300x200(12x08) 400x400(16x16)
320x400(12x16) 600X600(2X2)
320x480(13x19)
320x600(2x1)
Marbonite-fully vitrified floor tiles suitable for residential application as well as
commercial area like showroom, offices, shopping mall, supermarkets, restaurant,
hospital, airport etc
Sizes offer under Marbonite brands are
600X600 (2X2)-SS,Color,Stain free
900X900(3X3)-SS,Color,Stain free
Endura-heavy duty commercial & industrial tiles suitable for pavement, automobile
garage, petrol pumps, railway station, bus terminal, school, swimming pool tiles &
industrial application for flooring in acid/alkali resistance
Sizes offer under Endura brands are
Endura brand Sizes (in mm)
Rustic 374x374
380x380
Tosca 320x320
Scratch Free 400x400
600x600
CORE ENDURA 200x200
300x300
600x600
Johnson Bath Division (JBD)-CP fitting & sanitary introduced by company to
market under brand name of JOHNSON. This brand makes India’s only complete
bathroom solution provider company. Thing offer under JBD are
CP Fitting
Sanitary
Shower panel
Shower enclosure
Multifunction
Kitchen sink
Pressure pumps
Other item like bathroom Mirror,Dustbin,Bathroom curtain & bathroom
accessories
Chapter-3
OBJECTIVE OF STUDY
The objective of the project is to “study marketing research at HRJ” As we know
that training is an important factor for growing because growth is lifeline for the
company.
The main motto of this project was to know, how company conducts training
program & Performance Appraisal. What are the basic requirements during this
process? How does the company come to know that some body needs training? How
does company assess employee productivity in organization?
After providing them training analysis is required. Analysis makes the management
aware of the workers or staffs whosoever had gone through the training.
Development is the main objective of any training. If there is no any development, the
objective of training is not achieved. So for achieving the objective, development is
very much required.
Performance appraisal help HRJ to understand Manpower productivity, Make ground
for promotion, salary increment, various awards & perk & IDENTIFICATION OF
FUTURE MANAGER
So the ultimate goal of this project is to study the way of providing training as well as
the way of measure the development of trainees in H & R Johnson(India) &
procure of performance appraisal
Chapter-4
Global Tiles Industry
There are three major regions in the world, namely, Asia, Latin America and EuropeanUnion (EU), that produce and export ceramic tiles in bulk. In 2008, they had jointlyproduced more than 87% of the global output. World production of ceramic tiles was7565 million sq.mt. in 2008.China was the largest producer with a total production of2200 million sq.mt. Spain and Italy were the 2nd and 3rd largest producers withproduction of 635 million sq.mt. and 589 million sq.mt. respectively. India ranks at 5th
position with production of 270 million sq.mt., which is around 2.5% of globalproduction.The ratio between consumption and production has been stable at around 94 percent. Ceramic tile production has been increasing at a cumulative rate of close to 6per cent. Asia is the most signifcant region by production, as well as consumption,accounting for more than 50 per cent of both. China is the leading country in theproduction of ceramic tiles with a share of 33 per cent at a total production of 2,200million square metres, followed by Spain and Italy. Europe accounts for 30 per centand USA accounts for 14 per cent of the total global production of ceramic tiles. Interms of consumption the pattern remains similar, with Asia accounting for 51per cent, Europe for 26 per cent and USA accounting for 18 per cent of the totalglobal ceramic tile consumption.
Global Sanitaryware IndustryThe global sanitary ware industry is estimated to be 187 million pieces andgrowing at about 7 per cent Y-o-Y. The main sanitaryware producing countries inthe world are China, Italy, Mexico, Brazil and Spain, which together account forabout 35 per cent of global production India, with a size of 6.7 million pieces,accounts for about 3.3 per cent of global production. Penetration of sanitarywarein India-about 30 per cent, is much lower than even neighbouring Asian countries,indicating signifcant growth potential for this sector in the Indian market. The Indiansanitaryware market has been growing at about 10 per cent a year, as compared to
the global average growth of about 7 per cent.
7
INDIAN CERAMICS INDUSTRYCeramic TilesIndia’s ceramic tile industry emerged in the 1950s. Tiles form the most significantpart of the Indian ceramics industry and consist of floor tiles (46 per cent), vitrifiedand porcelain tiles (12 per cent) and wall tiles (42 per cent). The floor tiles segment isgrowing faster as compared to wall tiles. Vitrifed and porcelain tiles are recententrants into the ceramic tile industry and have increased the size of the marketconsiderably. It is expected that this segment will capture the bulk of themarket gradually, replacing the conventional floor and wall tiles segment. Thesetiles are light and have the added advantage of being offered in designer looks ascompared to mosaic tiles, which are heavier and more expensive to transport. Bothorganised and unorganised sectors play a key role in the manufacturing of ceramic
tiles in India. The per capita consumption of ceramic tiles in India is very less ascompared to the other countries in the world. It is as low as 0.15 sq.mtr per annum.This low per capita consumption shows the likely demand that is going to arise in thefuture in India as more and more development takes place. Ceramic Tiles arefurnishing material apart from being utility or hygiene products. Despite an overallslowdown of the economy this sector continues to grow at a healthy 12 percent perannum. Growth of the unorganized sector accounted for 44 percent of the totalProduction and the revenue earnings from the organized sector accounted to overRs150 crore. India ranks 7th in terms of production in the world and the market shareof India have risen from 1.7 percent to 2.7 percent in terms of ceramic tile production.
MARKET SIZE OF THE INDIAN CERAMIC INDUSTRYThe Indian ceramic tile industry is estimated at US$ 0.35 billion. It Comprises of wall
tiles, floor tiles and vitrified tiles. The per capita Consumption of ceramic tiles inIndia is just 0.15 square metres per Annum, which is quite low as compared todeveloped countries.
The industry has been experiencing increased demand, which, in recent years, hasmatched the installed capacity. While capacity has also increased significantly,from 120 million tonnes in 2004, to 215 million tonnes in 2008, the demand hasgrown nearly two and a half times in the same period, from 97 Million tonnes to 207million tonnes. Ceramic tiles are produced by organised, as well as unorganisedplayers. The share of production of organised players is around 55 per cent. Theorganised sector is characterised by the existence of a few large players, such as H.& R. Johnson, Kajaria Ceramics, Bell Ceramics, SPL, Spartek and MurudeshwarCeramics,OCIL and Nitco.
ORGANISED PLAYERS
Some of the major players of Indian ceramics industry areoo Asian Granito (India) Ltd.o Euro Ceramics Pvt. Ltd.o H. & R. Johnson (India) Ltd.o Kajaria Ceramics Ltd.o Nitco Tiles Pvt.Ltd.o Orient Ceramics And Industries Ltd.o RAK Ceramics India Pvt. Ltd.o SPL Ltd.
A Brief Description of Major Players
Orient Ceramics Industries Ltd.
Headquartered at New Delhi, Orient was incorporated as a Public Limited Companyon 18th May 1977 for the manufacture of ceramic tiles with an installed capacity of0.4 Million sq. mtrs. per annum which has now grown to 14 million sq. mtrs. perannum.Mr. Mahendra K. Daga currently heads Orient Ceramics as Chairman & Managing
Director with the credo of delivering products of sustained excellence and superiorquality.Orient’s state of the art manufacturing unit at Sikandrabad (Bulandshar, U.P.) isspread across 40 acres of land and conforms to the IS 13753-56:1993 of BIS, ISO10545-1/17 & ISO 13006 specifications. Orient has also been accredited with theISO 9001:2000 certification for quality control management.Since inception, OCIL has been scaling new heights and has evinced a steadygrowth rate. OCIL’s commitment to excellence and quality has earned it a wideand diverse customer base, which spreads across Europe, South East Asia, MiddleEast and the SAARC countries.It plans to diversify into importing and distributing other building materialproducts. This shall be accomplished through a strong network of over 800 dealersand 2500 sub-dealers spread all over the country.The operative keywords are:Quality
DurabilityAesthetic AppealThus, it 'creates tiles with a distinct persona'.OCIL is not just a tiles manufacturer but a company devoted to offer 'extraordinarywall and floor solutions' to create and enliven exclusive designer homes andoffices.
KAJARIA TILES:It is the largest ceramic floor and wall tile manufacturer in the second mostpopulous country in the world. It is promoted by Mr. Ashok Kajaria and KajariaExport Limited (Group Company) in technical collaboration with Todagres, S.A.,Spain. It commenced operation in 1988 in Sikandrabad, (Uttar Pradesh) with anannual capacity of 1 MSM of floor tiles. It possesses an annual installed capacity of21 MSM across two facilities at Sikandrabad, (Uttar Pradesh) and Gailpur(Rajasthan). It has been equipped with eight stock points, eight Kajaria Worldshowrooms, 19 offices-cum-display centres and 7,000+ dealers and sub-dealers on
a pan-India basis. It is the most prominent Indian ceramic tile brand with afavourable recall. The largest exporter of ceramic tiles in India. It has unmatchedproduct offering (wall, floor, vitrified, Spanish and Italian tiles). It has brandenhancingcustomers like Unitech, DLF, Parsvnath, Magarpatta, Sobha Developers,DSK, Mantri Group,Prestige Group, Ansals, Hiranandani, Raheja Developers, Omaxeand EMAAR-MGF, among others.
ASIAN TILES:This company is the result of the dreams of three entrepreneurs, materialized withthe grassroots of passion, experience & dynamism… With starting a quest forexcellence a decade ago, todayAsian tiles have blazed a trail in the tile industry. With humble beginning in thefield of floor tiles, today it has expanded till the horizon, covering almost each ofthe aspects of the industry. Supported by vast man power along with mind power,Asian Tiles possesses the strength of over 3000 business associates spread acrossthe nation. Asian is all set to reach the goal of supplying world class product,through a network of 18 depots with display centres & ultra modern plant in theceramic zone of Sabarkantha, Gujarat, spread over an area of 2, 30,000 Sq. Mtr.and production capacity of two plants is 32300 Sq. Mtr. Per day of tile. Asian hasbecome India's leading wall tile manufacturer in large format size, with the biggestsize of 300 X 900 mm, where we provide wall tiles of white body similar toEuropean tiles, with the promise of extremely accurate size control, to addbrightness and depth to the glaze.
EURO CERAMICS:Part of “Euro Group” Integral part of the Decorative industry in India.Promoters:Mr. Nenshi Shah: Mr. Talakshi Nandu : Mr. Kumar Shah : Mr Paresh ShahCurrent Business Profile:Vitrified Ceramic Tiles : 79,971 MTPA.Aluminium Extruded Sections : 1800 MTPACalcareous Tiles : 45,000 MTPASanitary ware : 11,000 MTPATrading in Wall Tiles through a 100% subsidiary
Technology:SACMI (For Vitrified Tiles & Sanitary ware)Quality focus:Vitrified Tiles : ISO 13006. Applied Consumer Services Inc.Florida, U.S.A. VJTI, MumbaiManufacturing facilities : ISO 9001:2000 certified
NITCO TILES:A foundation laid on innovation. Since 1953.Going beyond the ordinary and leadingby example is a common tradition practised at Nitco. No wonder, the company isrenowned and revered for its revolutionary concepts, pioneering endeavours andpremium products in the construction industry for over five decades.Today, with itsrich repertoire in offering unique Floor Tiles, Mosaico, Wall Tiles and Marble, Nitcohas gone to become the most preferred name and the ideal choice of millions ofhouse-holds and the real estate fraternity. An avant-garde at the core, the14company has continued to pioneer ground breaking innovations in all its offerings.Ceramic Tiles, Vitrified Tiles, Pavers, Imported Marble, Engineered Marble, Intarsiasplendoursof inlay marble and Mosaico- artistic creations in mosaic rendered instone, ceramic and marble, for instance. Winning 13 Capexil awards for innovationand design is the perfect testament to all of its achievements.
SOMANY TILES:In the Indian tiles sector, Somany has achieved a clear leadership position bywholeheartedly adopting forward thinking and an innovative and futuristicapproach. Whether ceramic glazed tiles, vitrified tiles, sanitary ware or porcelainfloor tiles, Somany prides itself in being at the very forefront of style and quality.From raw material imported from Italy and Spain, to the constant endeavor to bethe first to introduce new products in India, Somany has been, and will alwaysstrive to be a dynamic leader in its field.It began as a vision of things to come, and is today a trail-blazer that others follow.In 1969 Shri H L Somany incorporated a company called Somany Pilkington's,
which later became Somany Ceramics Ltd. It was the power of a dream and thezeal to excel, that drove Shri H L Somany to forge a path of unparalleled successfor this company.The dynamic leadership team in Somany not only spans three generations of ableleaders, it also brings together their staggering breadth of experience and wisdom.With Shri H L Somany at the helm as Founder, Shri Shreekant Somany as the CMDand Shri Abhishek Somany as the JMD, the company is heading towards an excitingphase of expansion and growth. This core leadership team along with a large teamof highly dedicated and talented people is continuously working towards creatingmore value for all stakeholders. Their commitment to excel in every sphere and tofuel growth in the core as well as new sectors has truly created a powerful vitalitywithin the company, both in mind and spirit.In 1971 the very first unit of Somany started production in Kassar, Haryana. Sincethen Somany has reached and surpassed many milestones – setting-up of secondunit in 1981, buyout of all equity shares by Somany's Indian promoters in 1994;achieving Government recognition for its R&D Department in 1996 (a first in thetiles industry); getting ISO 9002 certification in 1998; achieving ISO 14001 forenvironment friendly facilities, in 1999; ventured in retailing in 2007, joint venturewith Keraben under brand name “Synergy”, got patent for VC technology-a firstever in Indian Ceramics industry and incorporation of HL Somany group.Somany Global flagship retail showrooms are currently located in Delhi, Gurgaon,Ludhiana and Mumbai, Pune and Indore. Many other retail showrooms are about tobe opened in leading centres. These showrooms cater to high-end customers andoffer imported tiles as well as exclusive Aquaware brand sanitary ware. A largenetwork of Somany display centers are also spread across the country.A wide cutting-edge array of designs and material make up the inspiring Somany
range of tiles. Somany strives to bring its customers floor, wall, vitrified, ceramic,porcelain and innovative tiles that are the very latest in the world. Somany pridesitself in the sheer variety of design and finish, and constantly looks to bring new15and trend-setting ideas into the tile industry. The futuristic patented VC Shieldrange of tiles from Somany, are the world's most durable floor tiles. Created usingthe breakthrough, 'Veilcraft technology', that creates a special layer on the tilesthat keep them free from abrasion, scratches and stains, these tiles retain theoriginal glaze and finish for years. No wonder then, that these tilescomprehensively outperform ordinary ceramic tiles including PEI grade 5 tiles.Venturing into the burgeoning sanitary ware sector, Somany has already mademajor in-roads into this market. With its range of high quality products andofferings under the brand name of Aquaware, Somany is focusing on creating aniche for itself in this sector, by bringing in and adopting the latest in design,concept and technology.In the endeavor to bring the very best to customers, we source our raw materialfrom as far as Italy, Spain, and China besides Rajasthan, Uttar Pradesh, MadhyaPradesh and other major centers in the country.Somany has a production capacity of 15.7 million sq mt per annum from itsHaryana and Gujarat units. It has always focused on acquiring and leveraging thelatest technologies and know-how. A commitment to bring to life new ideas anddesign innovations is driven by the huge amounts of funds invested in researchand development. This has borne fruit in the form of Somany's achievement ofestablishing the very first Government Recognized In-house Research &Development Centre.Somany has also brought in some ground-breaking technologies into the Indianmarket. Their highly advanced Rotocolour Machine has the capacity to decorate
ceramic tiles with glazes, using a serigraphic decorating system that employssilicon cylinders. This integrated system that optimizes decoration of tiles enablesany kind of random design and also a marble effect. A truly trend-settingachievement, it has helped Somany to set new industry benchmarks in quality andproduction standards for ceramic tiles.Another exceptional technological advantage has been achieved with Somany'snew Laser Guided Vehicle system. This cutting-edge material transportationsystem has automated the movement of ceramic materials in the productionsystem. The Laser Guided Vehicle facilitates optimal and accurate handling,thereby minimizing rejection of in-process materials during the production of tiles.All of this is a result of Somany's commitment to bring the best and the latest to itsvalued stakeholders and customers in India.
H & R JOHNSON (A CRAMIC TILE INDUSTRY)
Performance GrowthOur unique growth profile, high brand pull and proven track record are symbolic of our strong performance. We are on a constant quest to make superior products through extensive research. The result is evident in the annual revenue of Rs. 1,472 crores in 2010-11. Our sales volume during the year crossed 43 million square meters.
A robust production, infrastructure, distribution, sales network and the ability to predict, prepares us for future growth. The future is ours
HRJ (India) has the largest distribution network in the industry, with 30 branch offices and 29 depots spread across India. The company’s trade network comprises of over 1,300 dealers and 15,000 sub-dealers. The Institutional Sales Division specializes in servicing the large project requirements of large builders, developers and contractors.
At present we’re targeting 30% growth of this network to the rural markets in India including Class B and C towns. The rural operation is expected to contribute 25% of the total turnover. Our subsidiary, H. & R. Johnson (India) TBK Limited, focuses on modern retail channel. The ‘House of Johnson’ showrooms showcase the complete range of products for the upper and upper-mid segment of market, while ‘Tile Bazaar’ is targeted towards to the lower-mid segment.
InfrastructureOur PresenceOur distribution network is the largest in the country comprising of 1300 dealers and 15,000 sub-dealers spread across the length and breadth of the country. In addition, we also have 30 branches offices and 39 depots that give us a tremendous reach in the marketplace.
Worldwide PresenceOur association with Johnson Ceramic International ensures that consumers can find our tiles across the world. Our products are sold in all continents of the world and we take pride that the Johnson name is globally associated with high quality design led products.
Our Manufacturing UnitsWe have the most modern manufacturing plants located at Dewas, Pen, Kunigal and Karaikal, employing the best of technologies from world leaders in tile manufacturing machinery.
All our plants are ISO compliant with both 9001, 14001 certifications, as well as OHSAS 18001, which is given for excellence in safety standards.
Research & DevelopmentA Research & Development Centre located at Pen is approved by Department of Scientific and Industrial Research, Government of India. We have successfully achieved backward integration by
developing and manufacturing of products such as soluble salts, stains and frits etc. which are used in ceramic manufacturing.
Our research and development department keeps a strict eye on every aspect when it comes to delivering quality. Our products undergo regular quality tests. Stringent quality tests are also carried out on raw materials like clays, minerals, chemicals and pigments we procure from the large network of vendors and suppliers both from Indian and across the globe. Geologists regularly do on-site testing at the mines from where raw materials are procured.
IT initiativeOur processes can be benchmarked with the best. To further make them future ready we’ve initiated a technological advancement program that has added speed and streamlined our processes.
We have implemented comprehensive ERP/CRM software to integrate over 2000 SKUs across 30 branch offices, 5 plants and 15000 plus strong dealer networks. We have harnessed our production facilities, branch offices and corporate office with a top-of-the-line IT product, SAP –R3. Thus helping us optimize better resource mobilization and faster delivery.
BRANDS
Walls12x16 Spring Collection Rectificado12x8 Johnson Wall Tile Collection13x19 Tiles12x16 Winter Collection (Rajkot Plant)12x8 Winter Collection (Rajkot Plant)12x8 Wall Tile CollectionGerm Free TilesJohnson PlasmaJohnson Digital Wall sectionFLOORING12x12, 16x16 Floor Tiles
Johnson Porselano SeriesJohnson Floor Tile Collection 2010Johnson Woodenza
KEY DEVELOPMENTS FOR H. & R. JOHNSON (INDIA) LIMITED12/22/2009H. & R. Johnson (India) Limited has expanded commercial production of vitrified tiles at its two plants in Gujarat and Andhra Pradesh. H&R Johnson has entered into a joint venture with two companies for its plants in Gujarat and Andhra Pradesh. The JV partner for Gujarat and Andhra Pradesh are Antique Granito Pvt. Ltd. and Silica Ceramica respectively. Production capacity in the Antique Granito plant has been increased by adding one more kiln to the existing three kilns. An investment of around INR 500 million has been infused for the purpose. As a result, the total daily production has increased from 22,000 sq metres per day to 30,000 sq metres per day. In Silica unit, too, the investment amounts to INR 500 million. Commercial production at this plant has started and is manufacturing 7,500 sq metres of tiles per day.
Brand Awareness Analysis:
1/poor 2/avg. 3/good 4/very good 5/Excellent0
1
2
3
4
5
6
johnsonkajariasumaniasignoters
BRAND AWARENESS RATING
MEAN RATING
INTERPRETATION:According to the architect’s brand awareness, Kajaria Tiles is on the top followedby Somany tiles, H.R.Johnson’s Pvt. Ltd., Orient tiles and Nitco Tiles.
Quality Analysis:Quality RatingQuality Mean
ashian kajariya sumani johnson0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Series 1Column1Column2
INTERPRETATION:According to the Architect’s, quality wise Kajaria Tiles is leading the marketfollowed by H.R.Johnson Pvt. Ltd., Somany Tiles, Orient Tiles and Nitco Tiles.
Dealer’s Network:
Dealer’s Network Rating
Dealer’s Network’s Mean
JohnsonAlambagh Hardware & Sanitary Store
Be First to Rate
Location - Alam Bagh, Lucknow-226005
Also See - Tile Dealers Johnson, Tile Dealers-Johnson, Tile Dealers-Johnson (Authorised)
Get the lowest price
Chetan Traders
Be First to Rate
Location - Alam Bagh, Lucknow-226005
Also See - Tile Dealers Johnson, Tile Dealers-Johnson, Tile Dealers-
Johnson (Authorised)
Get the lowest price
Chhabr Agencies
Be First to Rate
Location - Alam Bagh, Lucknow-226005
Also See - Tile Dealers Johnson, Building Material Dealers, Flooring Tile Dealers
Get the lowest price
Gurukripa Traders
Be First to Rate
Location - Alam Bagh, Lucknow-226005
Also See - Tile Dealers Johnson, Tile Dealers-Johnson, Tile Dealers-Johnson (Authorised)
Get the lowest price
H & R Johnson India Ltd
Be First to Rate
Location - Mahanagar, Lucknow-226006
Also See - Tile Dealers Johnson, Bathroom Fitting Dealers, Tile Dealers-Johnson
Get the lowest price
Reciporcal Impex Pvt Ltd.
Be First to Rate
Location - Gomti Nagar, Lucknow-226016
Also See - Tile Dealers Johnson, Water Tank Dealers, Flooring Tile Dealers
Shri Ram Marble & General Suppliers
Be First to Rate
Location - Kalyanpur, Lucknow
Also See - Tile Dealers Johnson, Marble Merchants, Bathroom Fitting Dealers
Vishal Trading Co
Be First to Rate
Location - Khurram Nagar, Lucknow-226022
Also See - Tile Dealers Johnson, Steel Merchants, Tile Dealers
INTERPRETATION:According to Architect’s view, Kajaria ceramics has the widest dealer’s network inthe sample area followed by Orient Tiles, Somany Tiles, H.R.Johnson Pvt. Ltd, andNitco Tiles.Overall Architect’s Choice:
Sales
Johnsonsumanikajariaothers
INTERPRETATION:
Overall view of the Architect’s leads to this fact that the surveyed region ismostly favoured by Kajaria Tiles Pvt. Ltd., followed by Somany Tiles Pvt. Ltd.,Orient Tiles Pvt. Ltd. And Nitco Tiles in the branded and organised ceramic tilessegment.Customer Experience Study:A total number of 100 customers (new user) being interviewed at various locationsof Ghaziabad and being asked to rate the above mentioned tile brands in terms oftheir awareness and choice and usage.The parameters are as follows:1. Price2. Durability and quality3. Awareness4. Response pace5. Availability6. Variety
Overall Customer Rating
poor avg good good excellent0
0.5
1
1.5
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sumanikajariyanitcoorientjohnson
Overall Customer Experience Mean
Interpretation:The above mentioned graph shows a very tough competition among all themajor organised players. Kajaria tiles is ahead in terms of customer rating followedby Orient Tiles, H.R.Johnson Ltd., Somany Tiles and Nitco Tiles.Dealer’s Experience Study:A total number of 25 dealer’s of various tiles manufactures had beeninterviewed in Ghaziabad and Meerut Region on the basis of following parameters:Brand availability in the storeFrequency of the inventoryTimely deliverySpecial/urgent supplySupply timeRepresentative relationCash/dealer’s discountFrequency of taking dealer’s adviceCustomer’s prerequisite specification needs, if anyVariety in quality and size of the tilesDealer’s ranking
Overall Dealer’s Experience Rating
Overall Dealer’s Experience MeanInterpretation:In terms of dealer’s study, Kajaria Tiles is the most sought after brandfollowed by Somany Tiles,Orient Tiles, H.R.Johnson Ltd. And Nitco Tiles.
Limitations of the Study:The sample size is very less, hence it does not imply for the completepopulation.There was lack of time and resources that prevented from carrying out an indepth study.The findings of the survey are based on the subjective opinion of therespondents and there is no way of assessing truth of the statements.There is some respondent’s bias which cannot be removed.some amount of error exists in the data filling process because of thefollowing reasons: Influence of others. Misunderstanding of the concept. Hurried filling of the questionnaire.The research is confined to a certain parts of Lucknowt anddoes not necessarily shows a pattern applicable to all of Country.Some respondents were reluctant to divulge personal information whichcan affect the validity of all responses.In a rapidly changing industry, analysis on one day or in one segmentcan change very quickly. The environmental changes are vital to beconsidered in order to assimilate the findings.
INDUSTRY STATISTICS:1. World production: 6900 Million sq.mt.2. India's Share: 340 Million sq.mt..3. World ranking (in production): 54. Per capita consumption: 0.30 sq.mt.5. Global Industry Growth Rate: 6%6. Growth Rate (India DomesticMarket):15%7. Organized industry turnover (India): Rs 3000 croresGlazed Wall Tile share: 40%Glazed Floor Tile share: 46%Unglazed Vitrified Tileshare: 8%Glazed Porcelain Tile Share: 6%Unorganised Industry Turnover Rs 3500 croresGlazed Wall Tile share: 57%Glazed Floor Tile share: 35%Unglazed Vitrified Tileshare: 6%
Glazed Porcelain Tile Share:2%8. Investments in last 5 years: Rs 2000 crores9. Organized sector:Share of Production: 56%No. of units: 16Revenue (excise duty): Rs 300 crores10. Unorganized sector:Share of Production: 44%
No. of units: 200 (approx..) (70% basedin Gujarat region)Revenue (excise duty): Rs 350 crores per annum orless11. Job Potential: 50,000 direct500,000 indirect
Export & Import ScenarioApart from domestic demand, exports of ceramic tiles from India have alsobeen increasing. From a level of US$ 33.3 million in 2001-02, exports ofceramic tiles from India have gone up to US$ 58.5 million in 2006-07, at aCAGR of 12 per cent. India exports tiles to other parts of Asia, Africa and WestEurope. The other main exports of ceramic products consist of chemical porcelainand insulators, handicraft artware and stoneware crockery. Imports of tiles havegone up rapidly in recent years, to almost match the level of exports. Fromaround US$ 8.3 million in 2001-02, imports have gone up to nearly US$ 55 millionin 2006-07, at a CAGR of 46 per cent. Rising imports indicate the rapid growth in
domestic demand for tiles, due to boom in real estate construction
Transportation & ordering
Process
Dealer Sales person
Branch logistic person
Account person
Dealer ‘s point
Sales person
SWOT ANALYSIS:
Distribution System:
Ceramic Marketing:The 4Ps of ceramic marketing are like different levers that can be used in differentdegrees to achieve the same objective.Product There is a wide range of designs and sizes to choose from. Introductionof two new categories-i.e., Vitrified and Concept tiles.40Price The price range is very vast. Due to capacity expansion supply isincreased so price is lowered down by 35%. Moreover price war from china hasalso lowered down prices.Promotion Advertising is done in leading Construction magazines and interiordesign journals. Taking part in international exhibitions is routine.Place Wide distribution network in and outside state. Products delivered withinfeasible timeline of order.
CHAPTER-VRECOMMENDATIONS:MARKETING:Should adopt the widest distribution network model to deliver products tothe end user in quickest and most effective way. It would also accelerate thesales. It may include company owned showrooms, franchises, multi-productdealers and sub-dealers.Distribution network should be clearly segregated towards specific productsegments.May introduce three dimensional catalogue visual experiences to itscustomers and also give customer a chance to design product in their ownway of choice (customized design specification).
Setting up exclusive showrooms for special products instead of keeping withwith the regular range. As example, the upcoming product ORVIT-a productin high glaze tiles segment should have an exclusive place to showcase. Itwould add to the exclusive ambience of the product.More introduction of matching wall and floor tiles.To grow its institutional business, the company should organize moreinteractions with architects, developers and government agencies at itsdealer outlets. This would serve a dual purpose: it would enable thecompany to acquire an insight into evolving preferences of some of the mostprominent and trend- influencing architects; on the other hand, it helped thecompany cater to their evolving preferences.BRAND:More focus on packaging and product merchandising.It may introduce a specific dedicated team to look after the overall brandequity. They will ensure that all showrooms and dealer display centres werein sync with the Orient profile. Also they will look after the external packingmaterial which creates an eye on look-and-feel, resulting in a holisticbranding approach.More focus on Research and design-development activities to achieve thecost and product design leadership.41Risks and Concerns:Some of the key risks affecting the Company are explained below:1. The instability in the fuel prices due to continuous increase in energy prices inthe international market has significantly put pressure on margins.2. Due to withdrawal of certain export concession by China and the generalincrease in freight has increased the landing cost of certain raw materials.3. After the imposition of anti dumping duty on Vitrified tile, dumping is takingplace in glazed wall and floor tiles which has put pressure on the domestic tilemanufacturers. The amount of anti dumping duty was significantly reduced inApril 08 by the Govt. However, it is still prohibitive enough. Therefore, only afew of the Chinese companies who were exempted from anti dumping duty aresupplying to companies in India.4. To retain skilled professionals is also a cause for concern. However, best HR
practices are in place to retain the talent and reduce the attrition.5. Due to high inflation and tightening of credit by RBI, finance costs may beadversely affected in the coming year.
Conclusion:The prospect and the future of ceramic tiles lies not only in northern region but itspread across the country. I would like to produce some of the evidences aligningwith this and with this I would like to conclude my project-A report, published in June 2008, stated that the growth in demand forceramic products has been further strengthened by the boom in the Indianreal estate sector, which is registering 30 per cent growth per annum, for thelast few years. The growth in the hospitality industry and the advent of newmalls, commercial complexes and multiplexes also lend support to thegrowth prospects of this industry.The low per-capita consumption of ceramic tiles in India, which is currentlyaround 0.5 sq. m per person as compared to 2.0 sq. m per person incountries, like Malaysia, Brazil and China, offers huge growth potential.The industry can reap the benefit of its low cost of production, which is 25-3042per cent lower compared to the US and Europe, primarily owing to labourcosts. Production of ceramics through conversion from coal-fired to gas/oilfired- furnaces is likely to enhance fuel efficiency and reduce cost as well asensure better quality and reduction of environmental pollution.Reduction in threshold limit under Zero Duty Export Promotion Capital Goods(EPCG) Scheme would also help accelerate the modernisation process inceramics industry.
References:For secondary data-www.icctas.comCompany websitesAnnual reportsPrevious summer training projectsMagazines, web-articles and cataloguesFor primary data-QuestionnaireSupervisor’s advice and information43