TABLE OF CONTENTS
Executive Summary
Introduction
Objective
Methodology
Background
Product Details
Financial Highlights
Distribution
Organizational Structure
SWOT Analysis
Conclusion
Recommendation
Bibliography
Annexure
EXECUTIVE SUMMARY
IPSA is the premier name and one of the leader brands in the
exclusive hardware segment, which is reigning the particular
segment since last 9 years. Presently, enjoying a substantial market
share but now open to fierce competition from brands like, Dorset,
Golden Locks, Harrison and Link etc. – That make IPSA to feel
the need for increasing its marekt share.
We carried out a market survey taking a convenient sample
(including residents, architects and builders) in Delhi & NCR area
with a structured questionnaire. The method is being descriptive
and exploratory type.
The analysis of the questioning is made after taking and
considering certain common features and attributes.
On the basis of that we gave our recommendations for real
customer education i.e., IPSA need to educate the customers,
develops customers awareness. And further IPSA needs to enter a
new market segment.
INTRODUCTION
Once Peter Drucker Said –
“Marketing is so basic that it cannot be taken as a separate
function. It is the whole business seen from the point of view of its
final result, that is, from the customer point of view …business
sweets is not determined by the producer but buy the customer.
Hence, customer’s perception is the key that defines the correct
positioning of the product.
Perception is defined as the correct interpretation of the sensory
information in the light of past experience.
Perception is a whole process – the consumer all ways perceive the
product as a whole, even though he is exposed to a single attribute
of any product at a given time.
Again we repeat consumer’s perception reflects the correct
positioning of the product.
Positioning is the act of designing the company’s offerings and
image so they occupy a meaningful and distinct competitive
position in the target customers’ minds.
In other words we can say positioning means the mental image of
the customer about any product which can be in relation to its
competitive.
Marketing in all its aspects thinks customer
Any organizations before developing its marketing plans need to
study all the aspects of consumer i.e., from customer point of view.
It needs to analyze the consumer behavior, perception, attitudes,
values etc. It also needs to take into accounts the factors like social,
cultural, personal and psychological, which influence the
consumers, perception.
Taking it into account, the above factors a market survey is made
the study the consumer’s perception towards the IPSA, which may
help the company to know and access the real positioning of IPSA
and their by help the company in developing a suitable marketing
plan.
OBJECTIVE
1. To understand the manufacturing process of IPSA products.
2. Identifying the new prospects and new users segment.
3. To identify different channels of distribution which are opted by
the company and several others which can be taken over by it.
4. To gain practical experience of all marketing strategies followed
and regulated by the company.
METHODOLOGY
It is basically a marketing survey study, based on
primary data collection. It is descriptive research
where survey is undertaken to learn about
consumer’s perception. Again perception includes
customer knowledge, beliefs, preference, satisfaction
etc.
The units of analysis are some residents and some
builders/ contractors, in Delhi & NCR region, we have
taken some convenience sample for primary data
and for the analysis of supply chain management, we
have taken samples of many dealers in the local
area. The data collection method or the research
instrument is a structured questionnaire i.e.,
designed to study the consumer’s perception.
All the secondary information were regarding the
company and its performance were collected from
their regional office at Anand Vihar Delhi and some
data were collected from the Internet.
BACKGROUND OF THE IPSA
The Company celebrated its centenary in 1997. In 1897 a young
man named Ardeshir Godrej gave up law and turned to lock
making. Ardeshir went on to make safes and security equipment of
the highest order and then stunned the world by creating toilet soap
from vegetable oil. His brother Pirojsha Godrej carried Ardeshir's
dream forward, leading Godrej towards becoming a vibrant, multi-
product enterprise. Pirojsha laid the foundation for the sprawling
industrial garden township now called Pirojshanagar in the suburbs
of Mumbai. Godrej touches the lives of millions of Indians every
day. To them, it is a symbol of enduring ideals in a changing
world.
Incorporation
Established in 1897, the Company was incorporated with limited
liability on March 3, 1932, under the Indian Companies Act, 1913.
Combined Sales - Subsidiaries and Affiliates
The Company is one of the largest privately-held industrial
corporations in India. The combined Sales (including Excise Duty)
of the Company, its subsidiaries and affiliates, during the Fiscal
Year ended March 31, 2001, amounted to about Rs. 35,000 million
(US$ 740 million).
Godrej undertakes customised requirements from individuals /
organisations in respect of the following:
The Godrej Locks has marked steady growth for last 2
decades.
For example in the years 1999, 2000 and 2001 their turnover
where 62crores, 68crores and 72crores respectively.
Products Details
Godrej has the most versatile range a products which are
mentioned below:
Master key solutions in the following standard products
Navtal Padlocks - Freedom Padlocks - All Ultra Locks Pin
Cylinder Mortise Locks, Cylindrical Locks and Rim Locks
Common key solutions in all products
Development of a totally new lock / latch / component -
These products can be supplied with the customer’s brand
name.
Modifications in the standard Godrej product range that
will suit the functional / aesthetic requirement of the
customer
Some of the prestigious clients of IPSA:
DLF Projects Ltd
Parsavnath Projects Ltd.
Omaxe Ltd
Eldeco
Tata Housing
Bharti - Walmart
Reliance
Panchsheel builders
And the list continues with many more renowned Builders and
contractors.
Smart planning begins at the door with IPSA exclusive range.
Where you need security, Godrej is there. There are locks for
cupboards, drawers, kitchen cabinets, wardrobes, metallic boxes,
postboxes, telephone and other furniture.
These versatile locks have multiple uses, are rust-resistant and fit
unobtrusively.
Elegance and beauty go together in a Godrej Mortise Lock. These
locks are available in a range of designs and finishes that look
great on the front door of houses, office cabins or 5-star hotel
rooms. They are available in Keyless, Lever mechanism, Pin
Cylinder mechanism and Ultra Locking mechanism.
The locks and a variety of handle sets are available in separate
packs.
The Ultra Locking systems from Godrej are security for tomorrow,
available today. They are based on multi-row 14-pair pin cylinder
technology, i.e., pins need to make precision contact with the key
from 3 sides instead of one. The Ultra key has high precision
dimples on all four sides, of different sizes, made with
sophisticated computerized technology. The computerized dimples
are available in over 1000 million combinations. Ultra key is
reversible and is made of nickel-silver which resists bending. Ultra
locks' inside components are made of rust-proof metals like brass
and stainless steel, to ensure they function smoothly for years.
Whether it is Front door, Main door or even Balcony door - one
cannot compromise on anything less than a Godrej Lock. Even
here, there are several choices, all of which offer you security of
the highest order.
With the SOHO concept booming and the offices being designed
to create an ambience, which improves efficiency, various Interior
Decorators and Architects have given air conditioning utmost
importance.
Striving towards providing total solutions for your door, Godrej
locks has launched 3 models of hydraulic door closers, which cater
to different applications. These products adapt to different
demands of closing and latching speeds thereby minimizing the
loss in air conditioning.
The Range of Door Closers include : 1. Hydraulic Door Closers -
Heavy Duty
2. Hydraulic Door Closers - Two Speed
3. Hydraulic Door Closers - Standard
Distribution Network
Our All India operations are carried out through the main corporate
office situated at 57/1/17-18 site-4 industrial area Sahibabad,
Ghaziabad. The Distribution Network consists of a strong army of
over 800 dealers, making our products available at the remotest
retail counter.
IPSA’s Hardware can even be seen in remote corners of India. In
homes, shops, sheds, godowns, shutters ... in villages, towns and
cities. Today the assertive range of IPSA products are prescribed
and recommended by famous architects and builders for its
PRICE, SUPPLY & QUALITY.
ORGANIZATIONAL STRUCTURE
Chairman
Managing Director
President
GM Sales & Mktg.
RM RM RM RM
ASTM ASTM ASTM ASTM
SO SO SO SO SO SO SO SO
SWOT ANALYSIS
Strengths
One of the top leading brands
in the market enjoying a
substantial market share
which offers widest and most
versatile ranges of locks and
innovative architectural
hardware, with its assertive
and exclusive quality.
Fastest market penetration
and coverage.
The very brand connotes
quality, perceived as
architectural hardware of
highest quality.
Weakness
Does not comprise with price
always charges premium.
Poor attention in the sales
promotion and advertisement
for growing demanding in
house hold segment.
Opportunities
Growing consumer’s
awareness towards safety,
security and also about the
exclusive quality of the
products that are sold in the
market. Emergence of over
whelming numbers of modern
housing societies, flats,
commercial, IT centres, and
villas and pent-houses.
Growing demand for good
quality in the above said
households.
Threats
Consumer’s ignorance about
real product features.
Majority of Indian population
has low economic condition
who cannot purchase the
high priced Architectural
hardware.
Growing market share of the
competitors like Golden,
Harisson, Dorset etc, due to a
heavy expenditure on sales
promotion and
advertisement.
Growing demand for safety
iron or steel doors in the
resident house hold segment
where IPSA has yet to offer
the symmetrical products.
ANALYSIS
CONJOINT ANALYSIS AND PERCEPTUAL MAPPING OF
THE ATTRIBUTES INFERRED/DERIVED FROM THE
DATA COLLECTED FROM CONSUMER SURVEY
THROUGH QUESTIONAIRE.THE OUTCOME OF WHICH
WILL HELP THE COMPANY TO SENCE THE REAL
POSITIONING OF ITS PRODUCTS.
CONJOINT ANALYSIS
Conjoint Analysis is typically used to identify the most desirable
combination of features to be offered in a product or service – for
example what additional features should be offered to the existing
service on what features to be offered in a new service. Here the
respondents are told about various combinations of features under
consideration and are asked to indicate their preference ranking for
the combination s.
Conjoint analysis applies a complex form of analysis of variance to
preference data obtained from each respondent and this analysis
will calculate a value i.e. utility for each feature. Features with the
highest values will be judged the most important to respondents.
Further conjoint analysis identifies interdependence among
variable.
APPLICATION OF CONJOINT ANALYSIS ON
GODREJ LOCKS
Identification On Selection Of Attractive Features
Here the first job is to identify the characteristics or features of the
products to be presented towards which the potential customers
will be attracted and will ready to accept.
Here we are concerned with the relative desirability of main
product attribute i.e., security and price(personal factors like
paying capacity)
SECURITY
1. SAFETY
2. HIGH QUALITY
3. BRAND
4. NOTHING
PERSONAL(PRICE)
1. HIGH PRICE
2. ECONOMIC PRICE
3. LOW PRICE
All these features is to be presented in 12 combinations (potential
customers)
A convenient sample of 175 respondents were taken each of these
respondents were shown the 12 combination that resulted from the
three frequency of PRICE SENSITIVITY level and four
SECURITY features under consideration. They were then asked to
identify and rank which combination of SECURITY AND and
PRICE SENSITIVITY is their first, seemed and 3rd preference and
so on until they rank-ordered all the 12 combinations. These
respondents were asked to repeat the procedure more times. In
other words the respondents were asked to rank-order their
preferences for all possible pairs of attribute and for each level on
feature being considered for each attribute. There preference
rankings are used in a conjoint analysis to calculate values (called
utilities) that could help the managers decide on the best
combinations of features to offer.
Respondents Preference Ranking – It helps reveal how valuable
and desirable a particular feature is to the respondent.
Here we have taken the example of 2 respondents preference
ranking in a tabular form.
Example
(a) Mr. Rajan
SECURITY
Per
son
al F
acto
rs
Safety High
Quality
Brand
Loyalty
Nothing
High Prices 1 2 3 4
Economy
Price
5 6 7 8
Low Price 9 10 11 12
(b) Mr. Vikash
SECURITY
Per
son
al F
acto
rsSafety High
Quality
Brand
Loyalty
Nothing
High Prices 1 4 7 8
Economy
Price
2 5 9 10
Low Price 3 6 11 11
Here table (a) shows Mr. Rajan’s 1st choice high price for with
both safty and brand loyalty. However, the table also, the table also
shows that he has high utility for higher price i.e. he wants to pay
high price for high quality . This same pattern of preference holds
true for the second and 3rd row of the table. Clearly safety and high
quality is of higher importance to this respondents than Price
sensitivity.
On the other hand table (b) shows that Mr. Vikash has a higher
utility for security than for Price sensitivity. The table shows that
Vikash wants both safety and Brand, and will “give up” on trade
for more price for the greater security. If he cannot have both
safety and brand, Vikash prefers to have safety, again regardless of
Price. His 8th, ninth and tenth of price sensitivity than high quality
and brand. Such a pattern of preferences implies that Safety has a
higher utility than price sensitivity and that of high quality has a
higher utility than Price.
UTILITIES CORRESPOND TO PREFERENCE
When a utility of one attribute feature on level is added to the
utility of some other attributes features on level, the sum of that
combination will show a good correspondence with that
combination’s position in the respondents original preference
ranking.
For example we will show one respondents preference ranking on
the faster service disposal and comfort attributes as shown on table
(c).
Table (c)
(c) Mr. Rajan
SECURITY
Per
sona
l Fac
tors
Safety High
Quality
Brand
Loyalty
Nothing
High Prices 1 2 5 6
Economy
Price
3 4 7 9
Low Price 8 10 11 12
The conjoint analysis procedures may calculate the utilities of 1.6,
1.2 and 0.4 for personal price factors of high price, economy price
and lower price respectively and 1.2, 1.1, 0.6 and 0.4 for the
security features of safety and brand loyalty, safety only ,brand
loyalty only and nothing.
We now add the utilities associated with various combinations of
personal price factors levels to security levels. For example high
price has a utility of 1.6 and safety and brand loyalty has a utility
of 1.2, the combination of these two features has a total utility of
2.8 (1.6 + 1.2). Similarly, high price combined with safety results
in total utility of 2.7 (1.6 + 1.1) – by repeating their procedure of
addition of utilities we calculate the utilities of other 10
combinations of tastes service disposal and comfort levels, as
shown in the table – (d).
Result
Table (d)
SECURITY
Safety High
Quality
Brand
Loyalty
Nothing
High Prices 2.8 2.7 2.2 2.0
Per
sona
l
Fac
tors
Economy
Price
2.4 2.3 1.8 1.6
Low Price 1.6 1.5 1.0 0.8
A close inspection of the table reveals that respondents first
preference has the largest combined utility of 2.8 and the
respondents 2nd preference has the next largest combined utility
and so on.
Graphical representation of the result table (c)
Utility Utility
1.6
0.2
0.4
0.6
0.8
1.0
1.2
1.3
1.4
High priceeco price Low price
0.4
0.6
0.8
1.0
1.2
1.4
1.6
safety High quality
Brand loyalty
Nothing
Utilities indicate importance of each level or feature of
attribute.
Utilities can identify the more important attribute.
Such set of utilities are calculated for each 100 respondents who
has participated in the study i.e. 100 sets of attributes for
PRICE/SECURITY features are prepared and when they were
further analyzed and results obtained.
As per the analysed result that seems to very close to the result
shown in the table (d) is termed as multidimensional scaling
because its goal is to scale objects or services on several
dimensions on attributes. Multidimensional scale can be based
upon either attribute data our non attribute data. Thus there is
2 types of approaches:
1. Attributes based multidimensional scaling
2. Non-attribute based multidimensional OR
PERCEPTUAL MAP
Here for our interest for Godrej Locks, we will se perceptual map
i.e. non attribute based multidimensional scale, where we will use
non attributed data such as similarity data.
Similarly measures simply reflect the perceived similarity of two
product attributes in the eyes of the respondents. For example each
respondent may be asked to rate the degree of similarity of each
pair of objects or services. Thus the respondents does not have any
best of features that will implicitly suggest criteria to be included
or excluded. The result when averaged over all respondents is a
similarity rating system for each attribute pair. A multidimensional
scaling programme then, attempts thus the 1st preference
combination comes out to be High Price/Safety and Brand Loyalty
and the 2nd preference is High Price and Safety .
Based on these combination features M/s Godrej can make its
marketing plan and highlight the above mentioned features in its
Sales promotion.
PERCEPTUAL MAP
A conjoint analysis will help in promotional marketing plan and in
building up a successful promotional theme but it is not enough to
help the company in building on ideal positioning one of useful
exercise is to determine how competitors are positioned (including
our own entry). The primary focus is how they are positioned with
respect to the relevant attributes or features, what is the customer’s
image, how they are positioned in respect of each other. Such
research to locate objects on services in a two or their dimensional
(or more if necessary) space. Such a space is again termed as –
perceptual map. The programme days to constitute the perceptual
map such that the two objects with highest similarity are separated
by shortest distance. The object with second highest degrees of
similarity is separated by second shortest distance.
Here our study will attempt to draw a perceptual map among the
four players in the auto finance industries.
– Godrej. (Our company of interest )
– Harrison .
– Link
– Door set
Because customers perceived on object or service as a whole,
hence it is difficult to select any particular attribute. Here we take
the perceptual views of some selected respondents (convenience
sampling) how the perceived similarity of services provided by the
four players as a whole. Then we try to identify the point of
similarity and separation.
Ideal brand
GODREJ
Harrison
Link
Dorset
Existing customers of Godrej
IDEAL
Godrej
Harrison
link
Door set
Non customers of Godrej
.
Similarity Based Perceptual Map
This perceptual map is drawn in the basis of perceived similarity as
observed by the respondents which includes the existing customer
base and the non customer base of the M/s Godrej.
The disadvantage of this similarity based approach is that the
interpretation of the dimensions does not have the attribute as a
guide.
But if we combine the Conjoint Analysis findings with the
dimensions of perceptual map and correlate the attribute
(combination of features according to preference found from
conjoint analysis) with the dimensions we may arrive at a
separate analysis.
The ultimate positioning decision specifies where in the perceptual
map the brand should be positioned. Thus the task is to identify
segments or clusters of customers based on their preferred
locations in the perceptual maps. Then the decision will involves
selecting the segment on segments as well as the target position.
Again the approach involves identification of the most important
attributes.
Thus when we combine the two approaches i.e. when we combine
the findings of conjoint analysis and perceptual map and correlate
the attributes with dimensions – we can arrive at certain Product
features of service of Godrej which the customers will find most
attractive – that can be REAL IDEAL POSITIONING. FOR
EXAMPLE WHEN CUSTOMER W STARTS PERCEIVING
GODREJ LOCK AS THE NO 1 BRAND WHICH
SYMBOLYZES QUALITY AND SAFETY.
THE VERY NAME OF GODREJ LOCKS WILL PROVIDE
THE IMAGE OF SAFETY AND SECURITY.
CONCLUSION
Basically our conclusion has two components: finding and
recommendations.
Findings:
The conjoint analysis and the perceptual map gave us the real
positioning of the godrej Locks which is already mentioned in the
end of the analysis i.e. “Godrej is perceived as number 1 brand -
the very brand is the symbol of quality and safety “.
But our general analysis of the data lead to some more core
customer and competitive factors
That the majority of the customers are ignorant about the merits
of the godrej locks and they are also ignorant about the
customised features of the locks.
Majority of the customers are unaware of the versitle brands and
the ranges of the product e.g. most of the respondents were
unaware of the high performance of the ULTRA LOCK.
CONCLUSION
Basically our conclusion has two components: finding and
recommendations.
Findings:
The conjoint analysis and the perceptual map gave us the real
positioning of the godrej Locks which is already mentioned in the
end of the analysis i.e “Godrej is perceived as number 1 brand -
the very brand is the symbol of quality and safety “.
But our general analysis of the data lead to some more core
customer and competitive factors
That the majority of the customers are ignorant about the merits
of the godrej locks and they are also ignorant about the
customised features of the locks.
Majority of the customers are un aware of the versitle brands
and the ranges of the product e.g most of the respondants were
unaware of the high performance of the ULTRA LOCK.
Some of the respondants attitude towards lock is very casual
like a purchase of vegetables i.e product indiffrentiation.
When we analysed the purchase behaviour of most of the house
hold residents we found out there is only one role player i.e
DECISION MAKER, there is no role playing of Initiator ,
influencer and ULTIMATE USER.
We find there is emergence of new potential segment in the
house hold sector i.e the use of steel protection doors with triple
locking system., the demand of which is growing very rapidly
that minimizes the use of Pad locks and door locks. The advent
of new steel protection doors provided the new term in the
competition.- Till now Godrej has not offered any locking
system for the above said segment which is affecting the growth
of the Pad and door locks negatively. Thus, this segment may be
a potential threat to Godrej house hold market segment.
RECOMMENDATIONS
IPSA needs to educate the customers in the house hold sector as
well as the customers in the building construction segment.
IPSA need to develop special promotion plan / strategy to
promote new range.
IPSA need to match with its supplies to the dealers more
efficiently.
IPSA should offer more and more incentives to the dealers, so
as to capture the market share.
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