Summer Training report

On

Consumer Brand Preference of drink ware and dinnerware

ARC INTERNATIONAL

Submitted in partial fulfillment of Post Graduate Programme

By

Suruchi Goyal

PGDM 10-12

FT-10-960

IILM GRADUATE SCHOOL OF MANAGEMENT

Greater Noida

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DECLARATION FORM

I hereby declare that the Project work entitled___________________________

_____________________________________________ (write the title in Block Letters)

submitted by me for the Summer Internship during the Post Graduate Diploma in

Management Program to Institute for Integrated Learning in Management, Greater

Noida is my own original work and has not been submitted earlier either to IILM GSM or to

any other Institution for the fulfillment of the requirement for any course of study. I also

declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this

report from any earlier / other work done by me or others.

Place :

Date : Signature of Student

Name of Student : _____________________________

Address : _____________________________

______________________________

________________________________

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Acknowledgement

I would like to firstly extend my gratitude to my Company mentor, Mr. Ajay Dhyani ,Marketing Manager ,Arc International for providing me the guidance and support to choose a suitable project and also help me properly analyze and understand the right course of progress so that I could successfully complete the project.

Secondly, I want to thank my institution and especially Ms.Vasundhara Tomar, Assistant Manager, Placement who helped me to find the best organization to enhance my learning and get the best out of the Summer Internship program.

Lastly, I want to thank all my family and friends to help me with the survey and the respondents for taking out their valuable time to answer my queries with enthusiasm.

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Executive summaryArc international is the world leader in tableware industry with its headquarters in Arques, France having its production in France, USA, China, UAE and Spain and distribution in 160 countries. It caters to mainly the business line Consumer Good, Business to Business and Food Service through its various merger and acquisition like Cardinal International, Newell Cookware, Pasabache, Rak Glassworks etc.

Arc International has 5 major brands namely Luminarc, Arcoroc, Chef and Sommilier, Pyrex and Cristal d Arques for the general public. The b2b clients are provided with customized product like promotional gifts and advertisement according to their needs like Coco-Cola glasses for Mc Donald.

The project has been carried out to understand the consumer brand preference for the dinnerware and drink ware in Delhi/NCR region and it has been found that the consumer still prefer the traditional form of Steel dinner set for their daily use but the rise in income and lifestyle has led to the increase in the use of glass, opal and melamine dinner set as well. Again, the drink ware products are also significantly increasing with almost every household using it.

The concept of retailing and home theme based shopping centers have also made it possible for the consumer to accessibly reach the desired tableware product with comfort but the wholesale market still are the most favorable destination for shoppers so it is important for the companies to set an efficient distribution network to adhere to the needs of every type of individual.

Despite the fact that the consumer use the tableware products more frequently the brand awareness of the respondent were very narrow because of lack of brand recall due to in sufficient advertisement and promotion by the companies. It has also been seen that the consumer mostly prefer the design before knowing the brand in the dinnerware and drink ware segment thus making the brand irrelevant and unimportant for their first preference. Though brand image plays an important role it is up to the retailer to produce the true image of the brand since most of the consumer is likely to be ignorant about the same. So, it is necessary to position the brand image and reputation in the consumer so that quality when delivered and brand loyalty is received in return.

Lastly, the tableware industry has a huge perspective to expand in consumer goods line since people prefer new and innovative items daily to decorate their homes as well as gift others. So, a huge market awaits the tableware industry which would likely add up to the revenue of the company if strategically planned to cater.

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Table of contentsChapter Title

1. Tableware Industry Company Introduction and history: Arc International Company global Strategy: Merger And Acquisition The Management Team Financial Report (2006-2009) The Arc Brand Gallery The Green Statement Success Stories and sustainable development

2. Consumer Brand Preference in Dinnersets and Drink ware Introduction Research objective and descriptive summary Buying trend in dinner set and drink ware Value for money Consumer brand Awareness Market Opportunity–Conclusion and recommendation

3. Appendix4. References

List of tables

Table 1: Company Strategic objective

Table 2: Company History

Table 3: Arc Internat6ional Sales Revenue region wise

Table 4: Arc Internat6ional Sales Revenue business line wise

Table 5: Supply Chain of Arc International

Table 6: Emission of carbon dioxide per tonne of glass produced

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Table 7: Sorting and recycling

Table 8: The 3P’s of Marketing Luminarc

Table 9: SWOT analysis of Product feature of Glassware dinner sets

List of graphs

Graph 1: Indian Household Income per annum

Graph 2: Frequency of use of different types of dinner sets

Graph 3: Consumer Buying Behavior

Graph 4: Location preference of consumer

Graph 5: Clockspeed of purchase of dinner sets.

Graph 6: Clockspeed of purchase of glassware items

Graph 7: Preferred Price range of the consumer.

Graph 8: Brand Awareness of dinner set

Graph 9: Brand Awareness of drink ware

Graph 10: Consumer preference of channel of communication

Graph 11 Gift item preferences in glassware

Graph 12: Preferred price range of gift items

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Introduction

The tableware market in India is estimated to be around *INR 30 Billion in 2007 including the unorganized market. The organized tableware market which is around 8% of the total market The organized tableware ,market is growing at the rate of 15-20% on an average after taking into consideration the effects of slowdown. .

The tableware industry in India can be segmented based on – On the basis of use by consumer:

Dinnerware, Beverage Range Barware Range Serving Bowl and Containers

On the basis of Material used for manufacturing

Stainless Steel – with & without Matte Finish Ceramic – Bone China & Porcelain Glassware – Transparent glassware & Opalware

The market size of Glassware ,which is at INR 12 billion is the largest in the total tableware market in 2007-08. Based on the application of tableware - beverage range is the fastest growing product category growing at around 20-25% p.a. and contributes maximum to the sales of tableware manufacturers..

Arc International is a privately-owned, French company and the worldwide leader in Tableware. With a workforce of 19,000 across the world and 5 well-known brands (Luminarc , Cristal d'Arques Paris , Arcoroc , Pyrex , Chef & Sommelier ), Arc International is active in over 160 countries. Founded in 1825, ARC INTERNATIONAL remains a family business after more than 175 years. With its headquarters in Arques,France, the group exports 83% of its production to 160 countries.

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To reflect the international nature of its operations, the company replaced its former name, the Verrerie Cristallerie d’Arques, with ARC INTERNATIONAL in 2000.In addition to its facilities in France, the group has factories in Spain, Italy, U.S.A. and China. Today,ARC INTERNATIONAL employs 16,000 people and has an annual turnover of €1.3 billion. ARC International has been owned by the Durand family since 1916.

Table 1: Company Strategic objectiveTable 2:Company History

YEAR ACTIVITY1825 CREATION OF VERRIERIE

CRISTALERIE d’Arques(former name of Arc International)

1897 George Durand becomes director1930-1934 First tank furnace installed at Arques by

Jacques Durand which were started uninterrupted glass production

1948 Creation of the first Brand Luminarc and decoration department.

1958 First experiment and development of opal Glass by the name of Arcopal.Creation of non-household catering brand Arcoroc was created.

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MissionOffer our customers and consumers innovative and high-quality products and services.

VisionBe recognized as the tableware leader in all markets which have significant growth or value added potential.

Values• Respect and foster the development of men and women : by developing their skills and employability.

• Satisfy consumer and customer expectations: by being the leading brand in terms of innovation, quality and service to customers.

1960 Automation of stem glass production and production of first stem glass on industrial scale.

1966 Creation of first sales subsidiary in USA by name JG Durand

1968 Automated Production of first crystal product marketed under the brand Cristal d Arques

1980 Production group,Vidrierie Cristalleria De Lan in Spain joins the group

1982 Creation of Durand Glass Manufacturing Company In USA

1986 Brand Arcopal replaced by smoked cookware range Arcuisine

1999 Takeover of Salviti, a traditional glass works in Italy

1990 Creation of Oscar for food container HIFI jar1994 pioneered in laser engraving2000 Changed its name to Arc international and

bought Mikasa, a leading distributor of tableware in USA

2003 Production site installed in China Arc Glassware NanjingDistribution Companies of Barnett and Alcester bought Acquires wholesale Eneriz.

2004 Arc international Middle East created after becoming Partner with Rak DubaiArc Distribution France is created and Fiba is acquiredAcquisition of distributor Cardinal Group.

2006 Creation of Arc International Cookware after purchase of Newell cookware Pyrex brand.Creation of own distribution network through Salvaiti Boutiques and factory outlet as well as opening of Arc International Store in Home theme shopping centre in Paris regionJV with Pasabahce to cater food Service Sector.Creation of Kwarx brand.

2007 Arc International Group has concluded the partial sale of the Salviati brand's activities

Global Strategy: Merger and Acquisition

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Arc International has been over the century expanded its production to five major countries with a major distribution to about 160 countries. ARC International is present in five continents with production sites (France, UK, Spain, USA,Italy, China, UAE) distribution subsidiaries (France, USA, UK, Spain, Australia, Mexico, Brazil,Japan, Italy), liaison offices and a network of fully owned retail outlets, Mikasa stores (USA and Canada), outlet stores, Salviati jewel stores, Arc Decoration and Arc International retail stores.

The first production house in Spain was set up by the joining of Vidrierie Cristalleria De Lan.

Another partnership with Rak Glass, a glass works company in Emirat of Ras –al Kimiah help set up Rak Dubai.

Acquisition of Salviata In Venice, Italy Joint Venture with Pasabahce to form Arc Pasabahce Food Service Distribution companies of Barnett and Alcester acquired to form Arc

International tableware United Kingdom Acquired wholesaler Eneriz to form Arc distribution Iberica Acquiring of distributor Cardinal International Group operation in New jersey which now

serves the North American Food Service and Hospitality Industry exclusively with four brands Arcoroc,Chef and Sommelier, Elemental and F&D

Formation of AIC after acquisition of Pyrex brand of Newell cookware.

The company has been pro active in expanding its production and distribution network through a streamlined work force and efficient supply chain consisting of all intermediate distribution channels to reach the final consumer.The company also has patented material and processes like Extra Strong Porcelain® and Maxima® bodies, Opal® and Kwarx® to secure its technological knowhow.

The Arc Brands gallery

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Luminarc is the major tableware brand. Attractive to all, it knows no frontiers and is Trans generational. Its complete range includes plates, cutlery, glasses, dishes and decorative items     

In 1968, Cristal d'Arques Paris made news by automatically manufacturing crystal for the first time. Its collections of stemware, cocktail and whisky glasses, vases and accessories are well recognized.

Pyrex, which is specialised in the cookware products segment is now used in all kitchens from ovens to utensils, from refrigerators to microwave ovens. The brand offers a complete range of products of different materials (glass, steel, metal, microwave and ceramic plastics),to meet consumer needs. 

Arc International has created the Chef & Sommelier brand, evoking French tradition and oenology heritage. A brand for connoisseurs, it now includes all the wine and fine dining product lines, the latter being reserved for professionals of hotel & catering industry.

Arcoroc offers its expertise to professionals. The brand is known for its quality, strength and functional qualities, covering all commercial and food service needs (hotels, restaurants, local administrations). Arcoroc offers a complete range of items in different materials: glass, porcelain dishes and stainless steel cutlery.

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12

The Management Team

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Besides it has offices in the countries where the products are sold and are distributed through Importers, distributor and wholesaler within these countries. Its Indian office is located in Gurgaon from which all the different states are catered.

Financial Report

Arc International succeeded in reaching its targets in 2008, in spite of the difficult economicClimate. With an operating profit of €39 million, up from €10 million in 2007, the Group has

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been able to cut back on indebtedness.

YEAR 2006 2007 2008 2009Sales Revenue €1.4 bn €1.5 bn €1.2 bn €1 bn

Europe 59% 59% 65% 56%

North America 27% 23% 12% 14%International Division

14% 18% 23% 30%

Table 3: Arc International Sales Revenue region wise

Arc international mainly operates in three major business lines:

Consumer Goods for general public Business to business Food and service sector.

The main business comprises of the consumer goods followed by b2b where Arc provides promotional gift items for their clients and helps develop business for both the organizations. The food and service sector is catered by the Cardinal international group of Arc along with the JV of Pasabahce Arc Pasabahce food Service catering to the industry.

Turnover 2006(€1.4 bn) 2007(€1.5 bn) 2008(€1.2 bn) 2009(€1bn)Consumer goods 63% 57% 52% 53%B2B 20% 25% 27% 27%Food Service 17% 18% 21% 20%Table 4: Arc International Sales Revenue business likewise

The company cost structure consists of the several machinery used for production as well as timely up gradation of the same in order to comply with quality and safety standards. The company heavily invests in R&D which comprises of nearly 3% of the company turnover and also continuously invests in:

New materials production, Industrial process improvements, Environmental impact reduction, Low energy consumption decorating techniques.

Many safety and health measures programs are carried out by the company to train its employees as well as CSR programs by Arc Distribution Iberica was strongly committed to a campaign run by the Spanish confederation of associations caring for people with cerebral

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palsy and similar disorders and the Carrefour Solidarity Foundation is also supported by the company.

The Supply Chain

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Table 5: Supply Chain of Arc International

The Green Statement

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FactoryRetailerCutomer

Conserving resources and preserving the environment is our best gift to future generations.

“Our global teams share a commitment towards the growth and sustenance of

a beautiful environment.”

Arc has concentrated time and energy on choosing ways to specifically impact the energy consumption, atmospheric pollution, waste management, and material choices. It has been seen that European reference document on technologies used in the glass-making world has ranked Arc International among those companies that are the most respectful of the environment. They use the ISO 14001 standard to ensure that the organization is set up to reduce the environmental impact like AERES program (in France) and the PNAQ program (national plan for allotment of quotas) based on the Kyoto protocol to reduce CO2 emissions is used.

ARC / Cardinal International is committed to the United Nations Global Compact program on May 14, 2003 thereafter 20% reduction in the use of water and a 12% reduction in greenhouse gas emissions has been sustained. They are now recycling 10 times the amount of plastics that were recycled in 2003 and have reduced the energy consumption by 9% through recycling glass in the manufacturing process. Materials such as glass, Opal®, Zenix® and

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stainless steel can be recycled.

It is important to define environmental protection to be actions as priorities and maintain it throughout the world which has helped Arc survive.

Durand Glass Manufacturing Company, Inc., the North American manufacturing subsidiary of Arc International, is located in Millville New Jersey Prior to 2005, the glass decorating process used paints containing lead because of the paint's quality and durability. During this time they partnered with the NPEP program with a lead reduction goal of 80%. Upon entering the program in December 2005 their paint inventory contained l3, 804 1bs. of lead. By December 2009 this was reduced by 94% to 791 lbs. and all the existing paints contain only trace amounts of Lead. (National Partnership for Environmental Priorities)

Key actions taken by Arc International Commitments to reduce energy consumption and waste. Reduction of environmental impact of production and distribution facilities. Construction of buildings in compliance with High Environmental Quality standards Awareness-raising on environmental issues for all employees. Optimization of transport. The packaging of the company has been designed to use 100% recyclable kraft board

from sustainably managed forests Anti-corruption businesses should work against corruption in all its forms, including

extortion and bribery.

Year 2006 2007 2008Europe 1.00 1.02 0.99North America 1.24 1.18 1.11International Division

1.42 1.35 1.21

Table 6: Emission of carbondioxide per tonne of glass produced

Plastics (tones) 2006 2007 2008Europe 835 864 723International Division

- 226 186

Paperboard(Tonne)Europe 10528 10398 8797North America 740 816 836International division 1051 1018 851

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Metals(tones)Europe 3200 2173 2969North America 176 194 183International Division

35 58 119

Table 5: Sorting and recycling

The recycling material depends upon the consumption which was limited during 2008 thus showing decrease in recycled material.

Success Stories and sustainable development

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Anniversaries

Three of the Group’s leading brands celebrated their anniversaries one after the other in 2008: Cristal d’Arques celebrated its 40th, Arcoroc its 50th and Luminarc its 60th. Whatbetter proof of Arc International’s staying power and its ability to get its products to achieve sustainability.

A billion balloon glasses

Arc International produced its billionth balloon glass in 2008, 50 years after the first modelemerged from the Arques factory furnaces. More than one balloon glass a second is sold somewhere in the world! Having become a standard glass in many countries, it suits most needs at a very affordable price. Over the years, the resistance and durability of this product have been enhanced with the introduction of new production techniques.. In 2008, 9 million additional units were ordered by MC Donald.

Marketing the Technological Know-how

Technology Centre along with Axe 3DRobotics, they have set up two other structures based on the same model: AGMS (Arc Glass Melting Solutions), for glass melting and furnace design, employing 120 people, and AEC (Athena Equipment and Construction), employing100 people at Arques and 60 in China. Two other subsidiaries originally working forthe Group alone, MMV, for moulding and shaping, with 180 employees, and C&P, for board and plastic, with 110 employees, have now opened up to external customers. Indeed, they see themselves as suppliers of customised solutions, able to really listen to the customers’ needs

The Clientele

Arc international has clients across 20 sectors world wide with major beverage companies like Chivas regal, Smirnoff, Havana and fast food sector like MC Donald along with many breweries, food sector, banking and insurance companies providing them promotional gifts and advertisement through the products.

Over the 185 years of existence Arc international has positioned as the world leader in the tableware industry through their innovative designs and production style bringing them the most recognized organization as their clients and a dedicated team of personnel who are highly engaged in the development of the organization ensuring sustainability and higher levels of success.

Research Introduction21

“Authentic marketing is not the art of selling what you make but knowing what to make. It is the art of identifying and understanding customer needs and creating solutions that deliver

satisfaction to the customers, profits to the producers and benefits for the stakeholders” Prof.Philip Kotler

A consumer is the guide of every seller and it is important to carefully and sincerely understand his needs to be able to sustain in present competitive environment Every product and service require careful research and observation which provides the roadmap to the seller to frame all his marketing strategy (The 4 p’s) accordingly.

India accommodates roughly 1/6 population in the world and it is very crucial to understand the trend and behavior patterns of Indian Consumer in order to succeed in the country which is ranked in No 2 spot in 2010 Global Manufacturing Competitiveness Index, a collaboration between Deloitte Touché Tohmatsu (Deloitte) and the U. S. Council on Competitiveness (Council).

With the changing trends in spending and lifestyle of the approx. 222 million households where dinner sets and drink ware used in daily basis an estimated figure by a study published by the National Council for Applied Economic Research (NCAER) in August claims a remarkable rise of the Indian middle class households with an annual income of at least $4,000, to around 46.7 million, representing a population of about 200 million individuals. 4

less than 1000

1000-4000

above 4000

0 20 40 60 80 100 120 140 160

Total no of household(in million)Household Income(in $ per annum)

Graph 1: Indian Household Income per annum Source: NCAER

Also every segment of household has seen an increase in disposable income leading to higher spending capacity and changing lifestyle leading to adoption of newer trends and habit so it is

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necessary to identify the business opportunity for dinner sets ,drink ware and decorative items.

Thus, Indian household being our main target market we undertook the project to identify the actual trend in the present target segment to mould the future decision accordingly.

Research ObjectiveThe project was undertaken to study the consumer buying habit and preference with respect to the product offering of the brand Luminarc mainly Glassware and Dinnerware.

Sample Size: 150

The sample would consist of the homemakers from various areas of Delhi which has been sub divided according to the 4 zones and includes 2 NCR regions. The sample would be

House maker

Sampling frame:

The Delhi region has been sub divided as under:

North Delhi: Rain bagh, Model town, Kamla Nagar, Wazirpur.

East Delhi: Laxmi nagar,Mayur Vihar

West Delhi: Rajouri Garden, Paschim Vihar,Karol Bagh,Connaught Place

South delhi:Lajpat Nagar,Saket,South Extension

NCR region: Noida,Gurgaon

Research design:

The design would consist of mainly the following descriptive designs:

Observation

Survey(Web mails, Telephonic interview(database)and field work(primary research))

Descriptive summary:

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The above design which would be conducted for a period of 20 days which would deduct the

following conclusion:

The present level of satisfaction of serviced customers.

The present trend and future potential in the market for glassware and dinnerware.

The awareness of brand and the most preferred brand in the market.

The preferred medium of promotion and distribution channel.

The buying needs of the customer.

Limitation of Study:

The sample size collected may not adequately represent the whole Delhi Households.

Web search maybe conducted by the mailed respondents to make themselves familiar

to the brands.

The telephonic respondents may have intentionally not answered to make the

conversation small.

Unable to understand the questions properly may lead to certain errors.

The research was conducted over a period of 20 days which provided a lot of insights on the

necessary aspects in the present business of the company which are mainly:

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Table 8: The 3P’s of Marketing Luminarc

Findings The dinner set market is still following the traditional trend where the home makers still prefer steel dinner sets for their daily need which is around 54% of the total sample. The glass dinner sets closely follow with around 31.25% home maker using it in daily basis. It can also be seen that silverware dinner sets are not preferred in the market due to the high cost and maintenance involved.

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daily

altern

ativel

y

occassi

onally

rarely

nev

er0

102030405060708090

steelglasssilverwaremelamine

Graph 2: Frequency of use of different types of dinner sets

Presently, there has been a rising trend in the use of Melamine and Plastic dinner sets because of unbreakable and microwave resistant feature. It is also observed that homemakers prefer using plastic utensils because of low handling needs and cost benefit.

Again, it can be seen that Plastic and melamine dinner sets are alternatively preferred with other types of dinner sets accounting to 46.7% of the total respondent.

The dinner sets of Luminarc come in the category of glass form and are occasionally used even at present time which is mostly to serve guests and visitors .But presently ,the upgrading of the lifestyle has lead to use of glassware dinner sets as an alternative to steel ware as it provides a sense of better presentation and style.

Again, silverware and melamine also fall under the least preferred forms of dinner sets with 80% and 20% rarely using silverware and melamine dinner sets respectively.

Also prefer equally do not use silverware and melamine because of various reasons like cost, lifestyle, quality and maintenance of product.

Thus, Indian consumer may still prefer steel ware to glassware but the latter seems to gradually catch up the formers market thus providing a lot of scope for the company to provide better quality dinner sets at economical range in order to capture a wider market.

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Strength

Incorporation of various designs. Modification in set of pieces

according to requirement. Various features like chip resistant,

microwave resistant etc feature can be added.

Opportunity

Customers are attracted to new variety.

Price can be set accordingly and help in selling more in sets.

Due to growth in electronic means of heating would likely have increased scope.

Changing lifestyle.

Weakness

Non durable or easily breakable. Expensive and not economical. Sets consisting of many pieces last for

a very long time thus replishment clock speed is long

Threat

Steel ware items are coming up with sets with various designs.

Less expensive alternative like melamine and plastic are eroding the market.

Table 9: SWOT analysis of Product feature of Glassware dinner sets

The glassware dinner sets have a lot of inherent feature which are preferred by the buyer such as chip and microwave resistant and presently unbreakable material is also found in the market but there are also various material which provides durability and value for money like steel dinner sets which attract to the customer thereby taking away the market of glassware dinner sets.

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The Trend in Dinner set

The best public policy is made when you are listening to people who are going to be impacted. Then, once policy is determined, you call on them to help you sell it-Elizabeth Dole

It is very important for every organization to be aware of the preference of their target consumer to successfully develop and market the product in order to increase the profitability and sustainability of their product. Every product has unique blends and features which attract and induce them to buy it. Human buying behavior has always been a matter of study and research for the market researcher and a lot of variation has been observed in buying pattern for different products because of their usability. With regards to the dinner sets mainly the research helped find out the influencing factors while purchasing dinner sets where they firstly see the design of the dinner sets in the market.. Thus, desings are the most important factor for a consumer while buying dinner sets and good designs are likely to increase sale for the company. Again ,the consumer also seem to be brand conscious and rank brand image as their priority followed by 12% of consumer likely to see the price first before buying the product.

Always Considered Likely to consider least Consider Do not consider0

10

20

30

40

50

60

70

80

DesignAvailabilityFriends ReferencePriceOffer and promotionbrand Image

Graph 3: Consumer Buying Behavior

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The consumer considers a lot of factors before making the purchase like availability of the product followed by the price and offer and promotion which help them make the final choice to purchase the product. So, it is necessary for the company to strengthen these features to attract more consumers. Again, the consumer seem to be unaffected by the friends reference for any product so word of mouth form of advertisement seems to considered the least considered factor influencing the buying behavior of the consumer for dinner sets.

Considering the above finding, it can be suggested that in order for the company to expand their consumer base, they should

Provide various new and attractive designs in the dinner sets Build a brand image through loyalty program, membership offers and

advertisement to highlight the brand as well as build good reputation. Build a strong supply chain of distributor and dealer so that the product can be

made available to the target consumer at the preferred location. Market the product with new feature and provide attractive offers and promotion

schemes in the dinner range providing value for money to the consumers.

Considering the above aspects we can see that it is very important for the product to have a strong supply chain so that it can directly reach the consumer at the most accessible location so the following research was conducted to determine the favorably shopping areas of the consumer for the dinner sets in order to help the organization enhance the supply chain network of the company.

The above figures have been calculated on the basis of partial responses from the samples since all the features were not necessarily ranked so the figures show the relative importance of a feature in the total responses actually obtained.

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Neighbourhood Market/Local Market

22%

Wholesale market

45%

Malls(Home Centres)

29%

Nothing Particular4%

Location Preference

Graph 4: Location preference of consumer

As we can see that the consumer mostly prefer to buy the dinner sets from the wholesale market in the Delhi /NCR region namely Karol Bagh,Gaffar Market,Sadar Bazar,Deputy ganj,Khan market etc. The main reasons for strong preference of the wholesale market being :

More choice and variety of different brands, Range of price and more number of shops available for best price High level of bargaining is possible as well as trust worthiness from a regular

dealer or wholesaler ensures more value for money.

Secondly the consumer prefer the exclusive shopping centers (Home Centers) as their shopping location which provide a wide variety of home utility products in the realm of extra ordinary décor and ambience luring more consumer to shift their purchasing location. The main advantage of the shopping complex being:

Good ambience attract consumer since it proves hassle free shopping experience. Provides all range of home products thereby eliminating the need to visit different

shops to buy products used at home. The present accessibility and fad of visiting malls also has raised the preference to

buy all the products from outlets in the malls.

Though ,some 4% people do not have a particular preference of location whereas the local

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market or neighborhood shops providing dinner sets are an important buying location with 22% people opting for the nearly market since it is:

Easily accessible to the consumer. Trust worthiness because of regular dealing. Dinnersets purchased of Low Volume Low Value do not require too much of

consideration.

Thus, it is required for the company to mainly capture all the available wholesale market along with which a strong distribution network should be built to make the product available at various exclusive outlets in malls as well as local markets which are easily accessible to the consumer so that they can ensure maximum reach of the product.

Value for money31

Consumer want value for their money and since dinner sets are products which are used daily it is always preferable to purchase a range of economical dinnerset.It has been rather observed that since the frequency of use of glass dinnersets are very less comparative to steel. The frequency of purchase or clock speed with to purchase dinnersets is a year for almost 33% of the respondents followed by the tenure of 2-3 years to purchase dinnersets because:

Durability of dinner sets so less breakage and exchange. Frequency of use is less leading to less purchase to avoid over stocking. The dinner sets are mostly gifted so they do not purchase as use of dinner sets is

not common at home.

0-6 month7%

6-12 month33%

1-2 year14%

2-3 year16%

3-4 year9%

4-5 year9%

do not purchase12%

Clock Speed of purchase of dinnersets

Graph 5: Clockspeed of purchase of dinner sets.

Again, we should also consider the glassware range which is the most preferred items for personal use and gift for the consumer because of the change in lifestyle, social networking and availability of economical items. It has been observed that the glassware range are more frequently bought because of the fragility and usage and thus the company should give more attention to the segment of glassware by providing more variety, designs and offers in the range of glassware .Considering the same the frequency of purchase of glassware items is as shown in table 7 where glassware items are mostly bought every 3 months consisting of varied segments of beverage glasses for coffee, juices, tea and beer. In the same research it has also been seen that beverage glasses are among the most gifted items in festivals and marriages thus a lot of scope as a gift item

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arise for glass sets.

monthly19%

quaterly33%

bi-yearly25%

yearly14%

1-2 years8%

Clock speed of purchase of Drinkware

Graph 6: Clockspeed of purchase of glassware items

It is also important to consider the price range the customer usually prefer to buy so that it provides the production and marketing line a fair idea about the breakeven point of sale. The financial decision being an important aspect in every company a well designed strategy helps the formulate successful decision leading to profitable business. It has been observed that the consumer mostly prefer buying product in the range of 1000-3000 in dinner sets of various pieces combination.So.it is likely that the consumer would foresee worthiness to buy dinner sets in the range of 1000-3000 depending upon the liking and preference. Also a major part of the sample also preferred the range of 3000-5000 with 23% homemaker ready to purchase dinner sets if they like the design but for daily purpose they would prefer the slightly lower range.

The design and preference of the customers also play an important role for around 5% of the customer who do not consider price to be an issue and 25% customer prefer to buy product at higher range of 5000 and above. So, in order attract this niche market it is necessary to create and market new and innovative designs which would lure this segment to make purchase.

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0102030405060708090

100

5

41.6666666666664

23.3333333333332

255

Preferred Price Range

Depends on liking5000 and above3000-50001000-30000-1000

Graph 7: Preferred Price range of the consumer.

Thus, like every product various segments of consumer lies in the dinner set and it is important for the organization to develop different strategy to market and cater to various segments by:

Providing attractive designs to the niche market consumer who are not sensitive to price.

Provide value for money for consumer who are sensitive to price and lies in the middle range since they constitute the major part of the revenue for the organization.

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BRAND AWARENESS“Every advertisement should be thought of as a contribution to the complex symbol which is a brand image”-David Ogilvy, O&M

“Positioning the brand and regaining trust are all smart things for us to do and those are the litmus tests for any decisions we make”-John McKinley

As a seller it is very important to understand the consumer psyche and position your product according to their needs and make them loyal to the brand which would can be measured from the awareness and brand recall. To understand the brand positioning in the dinner set and glassware market the survey was carried out which revealed that the sample were not aware of many brands in the dinner sets which may be due to lack of advertisement and branding strategy but among the awareness Corelle was the brand 24% of the respondent recalled followed by brands like PCN, Ektara etc producing melamine dinner sets. Again, La Opala was also a popularly used brand with 20% homemaker using it followed by Luminarc with 14% recalling the brand.

Corelle24%

La opala20%

Luminarc14%

Bone china10%

Others24%

No idea8%

Brand Awareness of dinnerset

Graph 8: Brand Awareness of dinner set

It was also observed that many respondents were not able to recall any brands even though they use it in a daily basis because of lack of brand awareness due to various extraneous variables. From a similar research in the market area it has been seen that the advertisement in various forms like poster, offer and promotion of the brands the respondents were mostly aware of were more visible then those of brands which were less known.

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Luminarc22%

Borosil17%

Yera17%

Ocean12%

Treo10%

Others22%

Brand awareness of drinkware

Graph 9: Brand Awareness of drinkware

In the segment of drink ware the scenario was different since the companies although followed the same branding strategy for all their product but due to higher availability, quality product and higher frequency of purchase the respondent were aware of the brands of drink ware used and frequently purchased and Luminarc being the most preferred brand by 22% of the sample followed by Borosil and Yera brands.

From the above research it can be deduced that:

The products which are frequently purchased have higher brand recall that those less frequently purchased.

The only way to position a brand by using various forms of promotion strategy to make the target consumer aware of the brands.

Provide quality and durable product so that the consumer feel connected to the brand and prefer the brand over others.

Be aware of competitors marketing strategy and work proactively to maintain the position in the user minds and market.

It is very important to win the trust of the consumer by maintaining the quality and changing taste and preference as well as adopting strategies according to the changing environment to avoid the competitors to take away the market share.

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It has been seen that some part of the consumers are not still aware of the brands in dinner sets and no brand loyalty since all the brands have parity product is witnessed so it is necessary to position the brand altogether differently in the minds of consumer so that the consumer strongly affiliate the product to a particular brand. The best way to differentiate a product, a lot of promotional techniques should be used: firstly to develop awareness and secondly to create loyalty. So, the mostly preferred promotional technique by 32% consumers is advertisement in television or print media followed by telephone or SMS. Again, billboard and mall promotions are also preferred means of receiving information respectively by 15% and 19% respondents who always or mostly prefer these forms of promotion.

An ironical response is seen in the medium telephone where a lot of respondents highly prefer it as the means of easy communication and equally a majority of 75% respondents who has provided choices for the most not preferred medium dislike the same for some reasons or the other.

So, it is important to consider the overall consumer behavior n both the segments before implementing the promotional strategy.

Lastly, as the product cannot be customized and usually mass marketed the highly preferred forms like advertisement, billboard and mall promotion should be used to reach and attract a larger audience.

Always Prefered Likely to prefer least preferred not preferred0

1020304050607080

telephoneadvertisementemailbillboardmall promotion

Graph 10: Consumer preference of channel of communication

Note: The above figures have been calculated on the basis of partial responses from the samples since all the features were not necessarily ranked so the figures show the relative importance of a feature in the total responses actually obtained.

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Market opportunity

The dynamic market is full of opportunity and threat where in one hand the market is overloaded with competition dividing the market share of the company if marketing strategy are not implemented properly and in the other hand new market open up where the product are in shortfall and the marketing strategy can be utilized to capture the emerging trend. Similarly in the area of glassware the products can be used personally and considered as a favorable gifting item during marriages and festival. It has been observed that glass sets are the most common gifted items where 26% of the respondent has either gifted or received glass sets as gifts. Secondly, dinnersets are also considered a worthy gift items especially during marriages with 22% of the respondent said to have gifted the same in the marriages of closed ones followed by serving bowl sets and pudding sets.

Thus, with respect to the trend of celebrating various occasions and festival in grandiose fashion the trend of gifting is also on the rise and the glassware industry have a variety of options besides those mentioned above like tea sets, lemon sets ,vases and other decorative items which can help capture a significant market.

servin

g/Pudding b

owl

lemon se

ts

glass

sets

tea se

ts

vases

and deco

rative

items

dinner set

s05

1015202530

20.5882352941176

5.88235294117647

26.4705882352941 14.70588235

29412 10.2941176470588

22.0588235294118

Graph 11: Gift item preference in glassware

Again, it is always important to identify the budget of the consumer in which they prefer to buy items for gifting and according to the responses received 33% of the consumers usually prefer gifts in the range of 800-1000. Again, it also depends on the individual to whom the gift is purchased but in general table summarizes the preferable price range for gift items. Respondents also prefer gifting in the range of 1000-1500 to closer relatives.

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200-400 400-600 600-800 800-1000 1000-1500 1500 and above

0

5

10

15

20

25

30

35

6.66666666666667

15.5555555555556

20

33.3333333333333

17.7777777777778

6.66666666666667

Graph 12: Preferred price range of gift items

From the above observation we can deduce that:

Glassware items has a huge market for personal consumption and used as a gift item.

Glassware gift items can be made available in the price range preferred. It is necessary to develop the trend of gifting glassware since there are a huge

number of alternative options which can erode the market for glassware. New and innovative products should be developed for gift purpose like beer

mug ,knive stands, various shaped juice set etc which would definitely attract customer.

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AppendixQuestionnaire for study of Consumer Brand Preference of Glassware and Dinnerware

Name: Gender:

Age: Family income:

Occupation: Locality:

Contact No: E-mail:

1. How frequently the following type of dinnerware material is generally used at home?

Daily Alternatively Occasionally Rarely Never

Steel Glass Silverware Melamine/Plastic

2. Which brands of dinnerware do you usually use at home?

3. Which brands of glassware do you usually use at home?

4. Which brands of dinnerware are you aware of and generally like to purchase?

5. Which brand of glassware are you aware of and generally like to purchase?

6. How frequently do you purchase dinnerware?

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7. How frequently do you purchase glassware items?

8. What do you preferably purchase as a gift item in glassware (if any)?

9. How much do you spend on dinnerware for personal use?

10. How much do you spend on glassware for personal use?

11. How much do you generally spend on purchase of gift items? 200-400 400-600 600-800 800-1000 1000-1500

12. Name few places where you generally buy dinnerware and glassware?

13. How would you prefer to be informed about new product and range of dinner ware items?

Telephone/SMS Advertisement Emails

Billboards Mall promotion

14. Rank by preference the factors that influence your buying behavior?

Design Availability Referral/Friends pressure

Pricing/Value for money Offers and promotion Brand image

15. Do you use Luminarc product, if yes please provide the following information?

Product type: Feedback/remarks(if any)

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References

1. http://www.1000advices.com/guru/marketing_quotes.htm 2. http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/

Manufacturing/dtt_2010%20Global%20Manufacturing%20Competitiveness%20Index_06_28_10.pdf

3. www.forbes.com 4. http://uk.arc-intl.com/BrandsServices/les-marques-professionnelles.aspx 5. http://www.cardinalcatalogs.com/TheCardinalPortfolio/pdf/2011p-Introduction.pdf 6. http://uk.arc-intl.com/BrandsServices/les-marques-professionnelles.aspx 7. http://uk.arc-intl.com/Thegroup/history.aspx 8. http://uk.arc-intl.com/upload/Sites/Corporate/en/ARC_SustainableDevelopment-

2008-2009.pdf9. http://uk.arcintl.com/upload/Sites/Corporate/en/PressRelease%20Arc

%20International%20Financial%20Result%202009.pdf10. “INVESTMENT POTENTIAL STUDY INDIAN HOME UTILITY &

FURNISHING INDUSTRY”, BIRD report 2010,IMRB International.

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