Volatility Pairs Trading New York Group 13 Gaurav Gandhi Palash Kasodhan David Lin
New Gaurav
-
Upload
agnihotrimba -
Category
Documents
-
view
121 -
download
4
Transcript of New Gaurav
Project Report
On
CONSUMER AND DEALER RESPONSES
TOWARDS KAJARIA TILES
Submitted for the partial fulfilment of the Award
Of
Master of Business Administration
DEGREE
(Session 2009-11)
SUBMITTED BY
GAURAV AGRAHARI
0903270014
UNDER THE GUIDANCE OF
Mrs. Amrita Singh
ABES ENGINEERING COLLEGE
AFFILIATED TO
GAUTAM BUDDHA TECHNICAL UNIVERSITY, LUCKNOW
1
CANDIDATES DECLARATION / CERTIFICATE
I/We hereby declare that the work which is being presented in the report entitled “CONSUMER AND
DEALER RESPONSES TOWARDS KAJARIA TILES” is an automatic record of my own work carried
out under the supervision of Mr. UMESH KUMAR.
The matter embedded in this report has not been submitted by me for the award of any other degree.
Dated: GAURAV AGRAHARI
Department:
This is to certify that the above statements made by the candidate are correct to the best of my
knowledge.
(Head of department) (Name of supervisor)
Date: Date:
2
ACKNOWLEDGEMENT
At the onset, I would like to thank the Organization KAJARIA CERAMICS LTD. COMPANY for
providing me the opportunity to undergo the project. I would like to take this opportunity to thank my
external guide Mr. Umesh Kumar, Manager HR, Kajaria Ceramics Ltd. for his valuable inputs which
shall hold me in good stead for my career ahead. In the list of those whose help I treasure, I must
mention my internal guide Mrs. Amrita Singh for her Guidance; Patience, Support and Attention to
detail have resulted in successful completion of this project.
Last but not the least, I express my appreciation and thanks to all the Employees of Kajaria Ceramics
Ltd. for their Patience, helpful and who have contributed to my learning which I shall cherish forever.
3
CERTIFICATE
This is to certify that Mr./Ms. GAURAV AGRAHARI, is a student of ABES Engineering College has
done his/her Training Project “CONSUMER AND DEALER RESPONSES TOWARDS KAJARIA
TILES” in the specialization area Marketing.
The work embodied in this report is original and is of the standard expected of an MBA student and has
not been submitted in part or full to this or any other University for the award of any Degree or
Diploma. He/she has completed all requirements of guidelines for Training Project Report and the work
is fit for evaluation.
Signature of Head of Institution
Name :
Designation :
Institution :
4
TABLE OF CONTENTS
TITLE PAGE NO.
CHAPTER I 05-17
Introduction & Company Profile
Need of the study
Scope of the study
Objective of the study
CHAPTER II 18-27
Research Methodology
Limitations of the study
CHAPTER III 28-68
HR Practices and Policies
CHAPTER IV 68-87
Data Analysis and Interpretation
CHAPTER V 88-90
Conclusions
Suggestions
5
CHAPTER VI 90-92
Bibliography
CHAPTER VII
Appendices – 1 Questionnaire
6
1. Introduction & company profile
2. Need of the study
3. Scope of the study
4. Objective of the study
7
Introduction & Company Profile
Kajaria Ceramics ltd. Was incorporated in 1985 and was promoted by Kajaria
Exports ltd. And its associates. The plant was set up for manufacturing Ceramic
Glazed floor and wall tiles in technical collaboration with M/s Todagres of Spain and
imported major equipments from Sacmi Imola and Omis due of Italy.
The Company started commercial production in Aug.1988 at an initial
installed capacity of 12,000 metric tones per annum [TPA]. In Aug.1990 it
commissioned an additional 14,000 TPA thereby raising installed capacity to 26,000
TPA. The second phase of expansion was commissioned in Dec.1991, enhancing the
installed capacity from 26,000 TPA to 40,000 TPA. The third phase of expansion in
Aug.1994 enhanced the installed capacity to 60,000 TPA and the fourth phase of
expansion increase the installed capacity to 80,000 TPA at Sikandrabad plant in 1996.
The capacity of this plant was further raised to 90,000 TPA in 1999.the
company has established its second plant at Bhiwadi, Rajasthan with a capacity of
70,000 TPA in the year 1998.
The company manufacturers printed and special affect Tiles and have a wide
product range in terms of design, sizes and shades. It has consistently pioneered and
brought in the latest international quality product in India. Exclusive and valid
8
showroom in- Kajaria plus, Kajaria tiles Shoppe , Kajaria Tile studio, Kajaria tile
galleria in all the important cities of the country offer a panoramic view of the widest
range, choices of the tiles, mix and match to suit individual and family needs. The
company has to credit a strong market presence and dealer network. The market base
was systematically expanded by appointing many dealers all over the country. The
sales turnover has progressively increased from Rs.6.83 cr. In 1998-89 to Rs. 227cr.
Approx in 2001-02.
The company entered the export market in 1989-90 and on a global front
Kajaria has made significance advances and established its first showroom in
Melbourne, Australia. Exports are being identified as a major thrust area.
The company export markets are the Gulf countries, SARRC countries, Canada,
European countries, etc.
KCL is the first Tile Company having received ISO 9002 Certification, which
is symbolic for maintaining the highest standard of quality in keeping with the
stringent international specification, it also takes pleasure in announcing environment
friendly ISO 14001 accredit ion.
It is the first Tile manufacturer to receive OHSAS 18991 in India to receive
OHSAS 18001 in fulfilling international standards in occupational health and safety
management system specification.
9
Kajaria has yet again won the CAPEXIL Export Award for the highest
exports in 2000-01. This is the fourth consecutive year that Kajaria has been awarded
this national recognition.
It has been the recipient of the Global Growth Company Award by the world
economic forum in December 1997.
Today Kajaria is the largest selling brand in India and the largest exported
brand from the country. Despite the fact that the Kajaria Ceramics ltd. Has the largest
manufacturing facility in the country.
The company has been consistently producing above 100% of its rated
capacity. KPL is promoted by Mr. Chetan Kajaria, a gold medalist in Engineering from
Pune University and MBA from Boston College, USA. Another fact which has helped
the company to control its cost is the supply of piped natural gas, which ended the
company dependence on LPG\LDO in addition to reducing cost.
The mgmt. Of Kajaria Ceramics ltd, since its inspection has always remained
conscious about the environmental aspects of the business and to materialize its
objective the mgmt. Has incorporated the latest technology available in the world.
Several other initiatives toward improving the environmental performance have been
taken. One of this is to establish unit as a “zero liquid effluent plant”. The unit is the
first tile plant in India and among a very few ceramic Tile plant in the world to
recycle 100% water which comes out as an effluent from the various point during the
manufacturing process. Another unique initiative is adoption of vermiculture Bio-
technology for organic waste.
10
As its most bold step, Kajaria introduced Kajaria World, the biggest and
most elegant imported tile showroom in the country. Opened in Gurgaon over an area
of 14,000 Sq. Ft., Kajaria World is the last word in premium and high quality concepts
for home design.
The entire area at Kajaria World is divided into a vitrified tile section, a
ceramic floor tile section, bathroom concepts and mock up flats where consumers can
browse through and view thousands of options and their applications.
The company's in-house team of designers has done a remarkable job of creating an
elegant and exclusive ambience.
On display consumers will fine, modern bathroom concepts with over 100 alluring
creative patterns and ideas. Mock-up flats where they can walk through and find out
how Kajaria tiles and ideas suit kitchens, living rooms, dining halls, study rooms and
bedrooms. Imported porcelain tiles in various shades and marble finish selected from
leading tile manufacturers of the world, ranging from 60x60 cm to large format 1x1
Mtr. Tiles.
Kajaria World also offers customers advise from trained experts in the fields of
architecture and interior design to help them make the right choice for their dream
home.
11
Kajaria ceramics is the Largest Exporter of India
INTERNATIONAL MARKETS: -
Kajaria ceramics exports to more than 20 countries round the Globe. The International
Marketing operations are organized by a specialist export division that manages a
network of international agents and distributors supported by our exclusive
office/showroom in Australia. Now in international markets we enjoy a similar brand
Recall as that of Domestic.
Our Brand “Kajaria tile” has today become synonym of quality, service and innovation
not only in the domestic market but even in the international market. With increased
capacity, increase in turnover and a growing domestic and exports market, Kajaria
Ceramics is set to emerge as a leader in the international ceramic tiles market.
12
BOARD OF DIRECTORS
1. Shri A.K.Kajaria (Chairman & M.D)
2. Shri J.C.Mediratta
3. Shri R.K.Kajaria
4. Shri R.K.Bhargava
5. Shri R.R.Bagri
6. Shri Sonjoy Sethee (Nominee-IFCI)
7. Shri D.D.Rishi (Executive Director)
8. Shri Chetan Kajaria (Whole Time Director)
13
NEED OF THE STUDY
14
SCOPE OF THE STUDY
15
OBJECTIVE OF THE STUDY
1. To give top priority to quality.
2. Whatever we produce, product the best.
3. To make profit, through ‘maximum production at minimum cost’.
4. To train ourselves for excellence.
5. Maintain customer satisfaction as ‘customer is the centre of our
universe’
6. To achieve business excellence by enhancing long term shareholders
value and interest of all its shareholders.
7. Efficient conduct of the business of the company through commitment to
transparency, business ethics and discharging its corporate responsibilities, are
hallmark of the best practices followed by the company.
16
1. RESEARCH METHODOLOGY
2. LIMITATION
17
RESEARCH METHODOLOGY
Marketing research is a systematic design, collection, analysis and
reporting of the data and findings relevant to specific marketing situation facing the
company.
The marketing research is done in the following ways:
1. Defining the problem and research objective.
2. Developing the research plans.
This is to develop the most effective plan for gathering the needed information. In this
project the plan was so decided that the research objective are fulfilled.
DATA SOURCES
The research plan calls for gathering data.
PRIMARY
This consists of original information gathered for the specific purpose. In this case
it was collected from the user and dealers. This was done by survey research, which
18
is generally conducted to learn about people’s knowledge, beliefs, preferences,
satisfaction etc.
For primary data collection. I used questionnaire method, where my sample size is
100 people.
Sample technique-probability/ random sampling.
Type of research-non-experimental research.
SECONDARY
This consists of information that already exists somewhere. Here the information
was collected from magazine, newspaper, brochures, internet and journals etc.
DATA COLLECTION
The various parameter deciding and subsequently influencing purchase of tiles are
identified and the questionnaire is prepared on the basis of the objective. Different
categories are selected for the study.
The primary information is collected using the survey technique in which a
structured questionnaire is devised to measure consumer preferences for various
factor effecting purchase decision, their awareness for brand, various function of
cell phone, physical features, general features, special and accessories.
19
I have contacted people for collecting the data. I explained them for my study and
asked them to fill the questionnaire. Some of the people have given their full co-
operation while some of them have ignored. At last I am able to collect the
questionnaires filled by the people using tiles.
The questionnaire measured the responses using parameters like
Brand Awareness
Brand Loyalty
Brand Image
Usable location for tile.
Feature Awareness
20
SWOT ANALYSIS
STRENGTH:-
i . Kajaria ceramics has excellent brand awareness and a high quality image.
ii . KCL focus on quality.
iii . The company is highly professional, devoted and result oriented in marketing
its product.
iv. Advertising campaign of the company is creative in the market.
v. Company believes in ensuring high quality standards of its product.
WEAKNESS:-
i . Lack of transparency with dealers.
ii . Company focus on niche segments.
OPPORTUNITIES:-
i . Selection of effective and result oriented distributions for wide spread
distribution.
ii . Positive reaction of the customer because of the existing product.
21
THREATS:-
i . Product of the competitors is available at low price as compared to KCL.
ii. Dealer can sometimes be bias.
iii . Nothing unique about strategy
22
Findings & Analysis
AWARNESS
RURAL
68%
17%
83%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Unaware Aware Interested toknow
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
In this case we segment people in three categories one who are unaware, second who
are aware, and third who are interested to know about the tiles of Kajaria Ceramics
Limited.
In the rural areas there are 83% of people who are unaware about the tiles of Kajaria
Ceramics Limited. In this category some of them totally unaware about the tiles but
not of KCL.
In the rural areas there are 17% of people who are aware about the tiles of Kajaria
Ceramics Limited. Either through retailers or by friends from that places where
Kajaria tiles are used.
23
1%12%
99%
0%
20%
40%
60%
80%
100%
120%
unaware aware interestedto know
0%
20%
40%
60%
80%
100%
120%
And in the other segment, which covers those people who are interested to know about
the tiles, are covered 68% people they are always ready to know more about the tiles.
This means for not only about Kajaria Tiles other may also.
AWARENESS
URBAN
I
24
In this case we segment people in there categories on who
Are unaware, second are aware and third who are interested to know about the tiles of
Kajaria Ceramics limited.
In the urban areas there are 1% of people who are unaware about the tiles of Kajaria
Ceramics Limited. But they know that what is tile, where it should be used etc
In the urban areas there are 99% of people who are aware about the tiles of Kajaria
Ceramics Limited. The matter is not that they don’t know about all categories of the
tiles of Kajaria Ceramics Limited.
In the other segment which cover’s those who are interested to know about the tiles
are covered 12% people they are interested to know more about the tiles either to
increase his knowledge related to tiles or only for time pass and rest of them says that
they do not have time to spend on them. If they require the tiles then at that time they
will know it.
25
BRAND LOYALTY
RURAL
None1%
Some3%
Strong96%
None
Some
Strong
In this case of brand loyalty we segment rural areas into none means those people’s who Are not
brand loyal they may use it, that brand which are suitable for them either in terms of cost of the tiles or
design of the tiles or by the motivation level of the dealers or retailers.
So, in rural areas 96% of the people’s are not brand loyal. In second segment we concentrate on those
people who are some brand loyal ( 3% people ). They either heard or by his friends, college and
magazines or through advertisement that this brand has conformed they wants only on that places where
the guest visit it most. The reasons behind this to show that have something extra. They are not much
aware of the advantage of the tiles.
26
In terms of heavy users for the rural area very less are heavy users and rest of them
believe that this is the wastage of money to invest in the tiles. You should invest in
those sector from which their may be changes to take return.
27
USAGE RATE
URBAN
And the last is heavy user who uses tiles in a large quantity like in hotels, apartments and
hospitals etc. They are of 14%.So, by this way we can say that there is a big difference in terms of tiles
users in between rural and urban areas people.
USABLE LOCATION
RURAL
2% 4% 2%8%
30%
60%
0%
10%
20%
30%
40%
50%
60%
70%
0%
10%
20%
30%
40%
50%
60%
We segment the usable location in several parts where we can use the tiles these are
Kitchen, Bathrooms, Gallery, Veranda and other places. In the case of rural most of
the people do not use tiles and those who use it , they
28
Use it only in some parts of their Home.Now, we show our data, according to our
survey each part compare to whole rural people, only 2% rural people use tiles in
kitchen, only 4% rural people use tiles in bathroom, only 8% rural people uses in
gallery, 60% people use tiles in rooms, 30% people use tiles in veranda and 2% people
use tiles in other places.
There is that we use tiles only at that place where the guest visits more. The
purpose of showing tiles is more in comparison to its advantage
29
USABLE LOCATION
URBAN
4%
48%
58%
77%
66%
91%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
kitchen bathroom gallery rooms veranda others
0%
20%
40%
60%
80%
100%
We segment the usable location in several parts, where we can use the tiles
these are kitchen, bathroom, gallery, veranda and other places. In the case of urban
area most of the people uses tiles but the location is totally different in comparison to
the rural area.
We can say this according to our survey .i .e. 77% people use tiles in
kitchen either on platform or on the wall or on both places. In Bathroom 91% people
use wall tiles where only 63% people use floor tiles, their perception is that floor tiles
may cause skit problems, 66% people use tiles in gallery, 58% people use tiles in
rooms, 48% people use tiles in veranda and only 4% people use tiles at other places.
30
The urban people mostly use stones (Marble, Kota, Granite) in the rooms, veranda and
platform of kitchen. So, the percentage of tiles used in rooms, veranda is less in
comparison to other places.
USING CRITERIA
RURAL
Using criteria
7%2% 83%
8%
convenience
premium
economic
value of themoney
For the purpose of using tiles we segment rural areas into four different
parts, which plays an important role before buying the tiles. These different parts are
convenience; here convenience indicates the availability of tiles of rural area people.
So, 7% of rural area people gave preference to those tiles, which are easily available,
not the specific brand.
Now, next is the premium quality so, only 2% of rural area people give preference to
this type of tile in which mostly are those who gave preference for use of these tiles as
a base of religious drawing or photographs.
31
Using criteria
convenience, 14%premium,
8%
economic, 63%
value of the
money, 15%
convenience
premium
economic
value of themoney
Next, is the economic condition it covers, 83% of rural area people buy tiles according
to his economic condition? It never indicates that other segment avoid the economic
condition they never gave preference to other segments.
And last segment is value for money, which covers only those people who always
wants that tpurchased must give at least, the value for their money they are of 8%.
USING CRITERIA
URBAN
For the purpose of using tiles we segment urban area into four different
parts,which plays an important role before buying the tiles. These different are
convenience, here convenience indicates the availability of tiles for urban area people.
32
So, 14% of urban people give preference to those tiles, which are easily available, or
in a specific pack or other conditions not only for specific brands.
Now, next is the premium quality so, only 8% of urban area people give preference to
these types of tiles, in which mostly are those who give preference for use of these
tiles in a room or on pillars etc.
Next, is the economic condition it covers, 63% of urban area people buy tiles
according to his economic condition? It means that people under this segment buy tiles
on the basis of their economic condition. They buy only those brands or designs,
which suits their pocket.
And last segment is value for money, which covers only those people who always
wants that the product they have purchased must give at least, the value for their
money and they are 15%.
33
ABOUT CUSTOMER
INVOLVEMENT
RURAL
As, we know that in rural area most of the people use to sit together at least
once in a day and according to our survey we find they are interested to know about
the tiles.
So, there is a possibility to motivate the potential customer by satisfying his or her
quarries.
LIKE:-
1. As we know that in some of the stores of grains. The grains are affected
by moisture. So, with the use of tiles we may avoid the moisture problem and save
money.
2. With the use of the tiles we may avoid small insects, ants, housefly etc.
That comes either due to the unfinished floor, moisture or holes in them.
34
INVOLVEMENT
URBAN
In urban area there is no much involvement of the people in the comparison to the
rural area people. But the urban people are closer to the advertisement. So, by
advertisement, magazines, cable TV or through print media we can motivate potential
customer.
Because if you want to make people aware about the Kajaria Tiles personally then you
have faced many problems like potential customer may say that he don’t have time etc.
PERCEPTION
RURAL
In rural area most of the people are not interested to spend money in tiles. The
important factor is economic condition and other reasons, like one may skid, which
cause problem and some of them may also want to follow his or her traditional system.
They believe that due to the traditional system they can maintain the holiness of their
house.
35
35 30
57
20
95
18
0102030405060708090100
Series1
ABOUT CUSTOMER
PERCEPTION
URBAN
In urban area most of the people are usually educated and rational in thinking so they
don’t nurture any myths. Moreover their lifestyle demands more attention towards
their houses, offices, etc. Apart from satisfying their basic necessities of life. These
people are mostly interested to invest in the stones like marble, granite and tiles in
rooms and other places where they can afford them.
In urban area some of the people believe that floor tiles in bathrooms may cause
problem that’s why they are not interested to put floor tiles in bathroom.
ABOUT DEALERS
36
First of all we want to know that who are in the competition with kajaria tiles
according to the dealers they are Johnson, Nitco, Somany, and Orient.
As according to this graph we say that the most important problem faced by the dealers
are margin problem. They say that they don’t get margin from this tiles and other
company give better margin. Some of the dealers also complain that their business is
also affected by the opening of Kajaria plus Showroom near his area.
Now, the next problem faced by the dealers are service problem means that there
is no proper response of any complain if there may be any response than it will be so
late, as it lost its importance.
Some of the dealers are also complain for the tiles that they are not plain in shape
(base of the tiles), not specific size of the tiles (16/12) and also color range.
Some of the dealers say that they don’t face any problem by this company mostly are
Kajaria Plus dealers.
37
PROBLEMS OF DEALERS
0
50
100Tiles
Transportation
Services
Advertisement
Margin
Others
Series1
Now, in conclusion dealers says that they are doing business and business
means earn money so, why they want to sell those brand which do not give the margins
or better margins. If the same conditions continue then at that time dealers want to
motivate the customer for those brands, which give better margin.
38
LIMITATIONS:
1. The data obtained is available to Ghazi bad.
2. Due to shortage of time study was restricted.
3. Inaccessibility to certain areas also restricted the study to a limited sample size.
4. Inaccessibility of the respondents at times at their houses.
39
1. DESCRIPTION WORK ON SUBTOPIC OF STUDY
40
DESCRIPTION WORK ON SUBTOPIC OF STUDY
Kajaria Ceramics ltd. Was incorporated in 1985 and was promoted by
Kajaria Exports ltd. And its associates. The plant was set up for manufacturing
Ceramic Glazed floor and wall tiles in technical collaboration with M/s Todagres of
Spain and imported major equipments from Sacmi Imola and Omis due of Italy.
The Company started commercial production in Aug.1988 at an initial installed
capacity of 12,000 metric tones per annum [TPA]. In Aug.1990 it commissioned an
additional 14,000 TPA thereby raising installed capacity to 26,000 TPA. The second
phase of expansion was commissioned in Dec.1991, enhancing the installed capacity
from 26,000 TPA to 40,000 TPA. The third phase of expansion in Aug.1994 enhanced
the installed capacity to 60,000 TPA and the fourth phase of expansion increase the
installed capacity to 80,000 TPA at Sikandrabad plant in 1996.
41
KAJARIA MILESTONES
A MEMORABLE DECADE
1988 Production of ceramic tiles begins with single firing technology.
1990 Expansion of capacity from 12,000 MT to 26,000 MT.
1991 Further increase in capacity to 40,000 MT.
1992 Kajaria wins the CAPEXIL Award for the highest exports.
1994 Monoporosa Wall Tiles introduced for the first time.
1996 Capacity expanded to 80,000 MT.
1996 Rs. 1 Billion turnover crossed.
1996 World Economic Forum honors Kajaria as one of the top performing Global
Growth Companies from India.
Kajaria captures 16% market share and reaches the No. 2 position in the ceramics tiles
industry.
1996 capacity expanded to 150,000 MT equivalents to 33,000 Sq.m Per day, at par
with the international players.
1996 Rs. 2 Billion turnover crossed.
2000-2001 Fourth time winner of CAPEXIL Export Award.
2002-03 Starts advertisement in T.V.
2004 Kajaria has registered turnover of Rs.2390 million.
2004 Company has register red turnover of Rs.2698 million.
42
MISSION STATEMENT
To remain forefront in the Ceramic Tile Industry.
To remain the highest brand recall in the mind of discerning customers for
quality, designs and as a provider of new concepts and ideas.
To reach into everyone’s dream home.
To follow the principles of transparency, high business ethics, global quality
standards and in creating new intellectual assets.
43
Translating vision into reality
Ceramics limited, the leading manufacturer and largest exporter of latest technology single fired ceramic
tiles in the country and is touching new heights. Within 14 years of operations, it has moved very close
to its vision of becoming a leader worldwide.Kajaria Ceramics has grown at a breathtaking pace during
the last decade in turnover, profits and foreign exchange earnings. With the new plant at Bhiwadi,
Rajasthan becoming fully operational, it has almost doubled its capacity from 16200 Sq Mtr. Per day to
33000 Sq Mtr. Per day. Both the plants are operating at 100 % + capacity.
ISO-14001 And
OHSAS-18001
44
The Company is the largest exporter of ceramic tiles in the country and has won 7 export awards since
inception. The has also been selected as one of the top performing Global Growth Company from
India by World Economic Forum in 1997. Kajaria is the first ceramic tile Company in India and may be
5th in the world accredited with ISO 9002 certification for its quality system and recipient of ISO 14001
for Environment Management System.
The company has also been given OHSAS 18001 Certificate by M/s. TUV Suddeutschland, Germany.
The Certificate has been given for the commitment for the Company for fulfilling International
standards in Occupational Health and Safety Management System – Specification.
Kajaria Ceramics is the first ceramic tile company in the world to get this certification . We at Kajaria
always believe that safe working methods lead to better business performance, motivated workforce and
higher productivity.
With ongoing training, R&D and human resource development, the company continuously strives to
bring International quality consistently, surpassing itself and always reaching a peak higher.
Kajaria Ceramics has consistently pioneered and brought in the latest in international quality products in
India. The company launched the high hardness and abrasion resistant Group-5 floor tiles for heavy
traffic are as for the first time in India. It was international quality with single fired Monoporosa
technology. With an attractive range of borders, pencils and moldings, Kajaria Ceramics manufactures
the widest range of floor and wall ceramic tiles to provide the complete wall and floor solutions.
45
PERFORMANCE OF KAJARIA CERAMICS LTD
BUOYED by the improved business prospects and growth in earnings, the stock prices of companies in
the ceramic tile industry have moved up the past few months. Industry heavy weight Kajaria Ceramics is
no exception. Taking into account the company's strong position's in the industry, the commissioning of
expanded capacity and growth prospects, long-term investors may include the stock in their portfolio.
Kajaria Ceramics is one of the bigger producers and exporters of ceramic tiles.
After passing though a rough patch in the late-1990s, the company and other ceramic tile producers
benefited from the robust growth in demand of recent years.
46
The softening interest rate regime and the pick-up in the real-estate and construction sectors played a
key role in bolstering demand for ceramic tiles.
Apart from the retail segment, consisting primarily of residential housing, the demand for tiles picked up
from the institutional segment as well.
The increased activity in the retailing business along with the economic growth propelled demand from
the institutional segment.
The positive impact of these factors is evident in the company's performance. For the year ended March
2005, revenues rose 12 per cent to Rs 280 crore while the post-tax earnings more than doubled to Rs
25.5 crore from Rs 11.8 crore.
47
Along with the factors listed above, the lowering of excise duty on ceramic tiles also helped the
company's cause. This has effectively narrowed the price differential between ceramic tiles and the
traditionally popular mosaic tiles.
To to cater to the growing demand, the company has expanded its production capacity to 18-million
square metres from 14-million square metres.
This would place the company in the position to take advantage of the growing demand for ceramic tiles
Kajaria is also expanding its geographic footprint and its retail presence by opening exclusive outlets
across the country. The trend of healthy growth in earnings is evident in this fiscal as well.
For the quarter ended June 2005 revenues increased by 8 per cent to Rs 61.6 crore and post-tax earnings
by 26 per cent to Rs 5 crore. Going forward, the company appears well-positioned to post a healthy
growth in earnings.
The continued boom in the construction sector, housing industry in particular, would spur demand for
ceramic tiles. With expanded capacity in place, the company would also have the option of enhance its
export earnings if there is surplus capacity.
Considering that the ceramic tile penetration is still low in India, there is significant room for growth for
the industry.
Kajaria and other tile majors such as Bell, Murudeshwar, SPL and Orient may continue to see robust
growth in demand.
Long-term investors may consider exposure at prevailing levels of Rs 230.
48
The year 2001-02 concluded with company’s overall turnover at Rs.2278 million and
profit after tax Rs.26 million. Despite a tough year for the industry in general, the
company has operated at 109% capacity during the year.
GROWING GLOBAL PRESENCE
After successfully establishing its first showroom in Melbourne, Australia
through its subsidiary Kajaria (Aus) Pty. Ltd. In February 2001, Kajaria has spread its
wings wider and has made significant advances in global retailing.
While the impressive Melbourne showroom stands testimony to the strengths of
Kajaria in global retailing, its matter of great pride and accomplishment to Kajaria that
today its product are sold in Australia through over 50 dealers. This shows the
heartening response and acceptance the products have received in this sophisticated
market, where Kajaria is pitched against other world-class brands and products.
Global retailing opens up new avenues for growth. Having established a growing
presence in a short span, Kajaria is now playing more exciting showrooms in other
cities of Australia. The objective is to emerge as a strong force in global retailing and
a strong brand in the international arena.
49
EXPORTS MARKET:-
EXPORT PERFORMANCE
67.6113
163 167
429
620
458423
0
100
200
300
400
500
600
700
Series1
The export were lower this year due to increase in domestic demand for company’s demand .
Kajaria Tile Brand is established not only in the domestic market but also even in the
international market, with exports to quality conscious markets in Europe, Canada,
Arabian Gulf and Saarc countries. With increased capacity, increase in turnover and an
overgrowing domestic and exports market, Kajaria Ceramics is to set to emerge as a
leader in international Ceramics Tiles Market.
50
ABOUT PRODUCT
PRODUCT
“People don’t buy products, they buy what products do for them “
- JOHN WILHMURST.
KCL’S MAIN PRODUCTS:-
1. Ceramic Glazed Floor
2. Ceramic Wall Tiles
They differ in strength and resistance.
THREE – MAIN KIND OF TILES:-
1. Standard Tiles – Elite Class
2. Commercial Tiles – Upper Middle Class
3. Utility Tiles – Middle and Lower Middle Class
51
THESE TILES COME UNDER RANGES OF:-
1. Plan Colour Range –
E.g. Blanco Nieve, Champagne, Silver Grey, etc.
2. Classic –
E.g. Naveda Blanco, Kajaria Green etc.
3. Special Plain -
E.g. Burgundy, Oxford Blue, Terracotta etc.
4. Contractor -
E.g. Leonardo Beige, Limoni Grey, Luxor and Luna etc.
5. Printed –
E.g. Alicante Beige, Arena Grey, Antique Blanco, etc.
6. Special Printed –
E.g. Chimera Beige, Corona Grey, Galleria Brown, etc.
7. Premium Range –
E.g. Auto Grey, Alfar Blue, Archiva, Argilla, Atrium, etc.
These tiles come in various dimensions such as – 200mmx200mm, 300mmx300mm,
400mmx400mm. Thickness – 7mm, 7.80mm, 9mm, etc.
52
Through trend setting product innovation and design, Kajaria keeps ahead of the
times, fulfilling the changing lifestyle needs of the consumer. Kajaria has introduced
captivating range of tiles in terms of design, sizes and shades. Today consumers and
the trade have come to except ultra modern and futuristic concepts in design among
the Kajaria collection.
FLOOR TILES
Alicante Beige Alicante Blanco Alicante Pink [300x300 mm] [300x300 mm] [300x300 mm]
Alicante Verde Amphora Beige Amphora Brown
[300x300 mm] [300x300 mm] [300x300 mm]
53
WALL TILES
Angola Beige Angola Crema Angola Grey [300x200 mm] [300x200 mm] [300x200 mm]
Ankara Beige Ankara Blanco Ankara Crema[300x200 mm] [300x200 mm] [300x200 mm]
54
Ankara Grey Arabia Beige [300x200 mm] [300x200 mm]
COMPETITORS
55
These continuously threaten rather than contribute to the survival of the
business. They watch each other very closely and follow one another prices up and
down, they try to capture either others market share and customer base to increase
their own profit margins.
The more competitors there are and the close their product offering, the more
sensitively sales respond to a relative change in price.
Non-price competition using branding and other product
COMPETITORS OF KCL
1. Johnson ( Oldest and biggest competitor )
2. Nitco Tiles in Mumbai
3. Somany
4. Orient
5. Chinese Tiles Manufacturers (Due to cheap prices)
56
To face the challenge posed by the competitors we have to take many measures
such as regularly improve the product quality, develop and use new technology to
produce tiles according to the new trends, appreciated by the people and to take our
prices comparable to our competitor’s prices.
57
1. DATA ANALYSIS & INTERPRETATION
58
DATA ANALYSIS & INTERPRETATION
AWARNESS
RURAL
68%
17%
83%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Unaware Aware Interested toknow
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
In this case we segment people in three categories one who are unaware,
second who are aware, and third who are interested to know about the tiles of Kajaria
Ceramics
Limited.
In the rural areas there are 83% of people who are unaware about the tiles of Kajaria Ceramics Limited.
In this category some of them totally unaware about the tiles but not of KCL.
In the rural areas there are 17% of people who are aware about the tiles of Kajaria
Ceramics Limited. Either through retailers or by friends from that places where
Kajaria tiles are used.
59
1%12%
99%
0%
20%
40%
60%
80%
100%
120%
unaware aware interestedto know
0%
20%
40%
60%
80%
100%
120%
And in the other segment, which covers those people who are interested to know about
the tiles, are covered 68% people they are always ready to know more about the tiles.
This means for not only about Kajaria Tiles other may also.
AWARENESS
URBAN
In this case we segment people in there categories on who are unaware,
second are aware and third who are interested to know about the tiles of Kajaria
Ceramics limited.
In the urban areas there are 1% of people who are unaware about the tiles of Kajaria
Ceramics Limited. But they know that what is tile, where it should be used etc
60
None1%
Some3%
Strong96%
None
Some
Strong
In the urban areas there are 99% of people who are aware about the tiles of Kajaria
Ceramics Limited. The matter is not that they don’t know about all categories of the
tiles of Kajaria Ceramics Limited.
In the other segment which cover’s those who are interested to know about the tiles
are covered 12% people they are interested to know more about the tiles either to
increase his knowledge related to tiles or only for time pass and rest of them says that
they do not have time to spend on them. If they require the tiles then at that time they
will know it.
BRAND LOYALITY
RURAL
61
In this case of brand loyalty we segment rural areas into none means those
people’s who
Are not brand loyal they may use it , that brand which are suitable for them either in
terms of cost of the tiles or design of the tiles or by the motivation level of the dealers
or retailers.
So, in rural areas 96% of the people’s are not brand loyal. In second segment we concentrate on those
people who are some brand loyal ( 3% people ). They either heard or by his friends, college and
magazines or through advertisement that this brand has conformed they wants only on that places where
the guest visit it most. The reasons behind this to show that have something extra. They are not much
aware of the advantage of the tiles.
In terms of heavy users for the rural area very less are heavy users and rest of them
believe that this is the wastage of money to invest in the tiles. You should invest in
those sector from which their may be changes to take return.
USAGE RATE
URBAN
And the last is heavy user who uses tiles in a large quantity like in hotels, apartments and
hospitals etc. They are of 14%.So, by this way we can say that there is a big difference in terms of tiles
users in between rural and urban areas people.
62
USABLE LOCATION
RURAL
2% 4% 2%8%
30%
60%
0%
10%
20%
30%
40%
50%
60%
70%
0%
10%
20%
30%
40%
50%
60%
We segment the usable location in several parts where we can use the tiles
these are Kitchen, Bathrooms, Gallery, Veranda and other places. In the case of rural
most of the people do not use tiles and those who use it , they
Use it only in some parts of their Home.Now, we show our data, according to our
survey each part compare to whole rural people, only 2% rural people use tiles in
kitchen, only 4% rural people use tiles in bathroom, only 8% rural people uses in
gallery, 60% people use tiles in rooms, 30% people use tiles in veranda and 2% people
use tiles in other places.
There is that we use tiles only at that place where the guest visits more. The purpose of showing tiles is
more in comparison to its advantage
63
4%
48%
58%
77%
66%
91%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
kitchen bathroom gallery rooms veranda others
0%
20%
40%
60%
80%
100%
USABLE LOCATION
URBAN
We segment the usable location in several parts, where we can use the tiles these
are kitchen, bathroom, gallery, veranda and other places. In the case of urban area
most of the people uses tiles but the location is totally different in comparison to the
rural area.
We can say this according to our survey .i.e. 77% people use tiles in kitchen either on platform or on the
wall or on both places. In Bathroom 91% people use wall tiles where only 63% people use floor tiles,
their perception is that floor tiles may cause skit problems, 66% people use tiles in gallery, 58% people
use tiles in rooms, 48% people use tiles in veranda and only 4% people use tiles at other places.The
urban people mostly use stones (Marble, Kota, Granite) in the rooms, veranda and platform of kitchen.
So, the percentage of tiles used in rooms, veranda is less in comparison to other places.
64
USING CRITERIA
RURAL
Using criteria
7%2% 83%
8%
convenience
premium
economic
value of themoney
For the purpose of using tiles we segment rural areas into four different
parts, which plays an important role before buying the tiles. These different parts are
convenience; here convenience indicates the availability of tiles of rural area people.
So, 7% of rural area people gave preference to those tiles, which are easily available,
not the specific brand.
Now, next is the premium quality so, only 2% of rural area people give preference to
this type of tile in which mostly are those who gave preference for use of these tiles as
a base of religious drawing or photographs.
Next, is the economic condition it covers, 83% of rural area people buy tiles according
to his economic condition? It never indicates that other segment avoid the economic
condition they never gave preference to other segments.
65
Using criteria
convenience, 14%premium,
8%
economic, 63%
value of the
money, 15%
convenience
premium
economic
value of themoney
And last segment is value for money, which covers only those people who always
wants that purchased must give at least, the value for their money they are of 8%.
USING CRITERIA
URBAN
66
1. CONCLUSION & SUGGESTION
67
CONCLUSION
An attempt is made to identify the level of awareness among he respondents towards
KAJARIA CERAMICS LTD. From the study it is inferred that TV commercials have considerable
influence on the buying decision as well as brand preference of the consumers. The celebrity
endorsement is also considered to be an important part of advertisements to make them more creative
and innovative in their reach to the consumers and their attempt to capture their attention.
Following observations are made after making an analysis of data collected form various
respondents and from general discussions with them:
Almost half of the segment of respondents likes to watch ads regularly. So company should
expense more on advertisement.
A significant portion of the people prefers to watch ads because of the informative content.
This is because of “Evocation of experience”
Brand preference is considered to be one of the prerequisite for brand salience-to create the
Top of the mind Brand awareness. A small segment of the respondents think that the advertisements
are totally true or reliable. All the rest of them think that they are either sometimes deceptive or mostly
deceptive.
68
Major chunk of the respondents feel that celebrities presence in the ads is highly required.
They feel models are familiar and their presence is reassuring. Moreover, because of the high positive
image of the celebrities consumers feel the genuineness of the product/brand.
More than half of the consumers are not able to relate themselves with the lifestyle shown in
the TV ads. This is because the people are not able to conform the exaggeration shown in the respect of
product benefits with their own picture reality.
It is very difficult for any company to rise and become the leading brand but it is much
more difficult to maintain this position.
69
SUGGESTION
I am pleased to submit my suggestion to Kajaria Ceramics Limited.
According to our survey we saw there is a big difference in buying behaviour of
the customers of the rural and urban areas. We cover rural area in Ghaziabad and
urban area in Noida, Delhi and Ghaziabad. Because the most of the people of the rural
area follow the traditional approach and most of the people of urban area believe in
new generation.
According to our analysis we found that the current business of Kajaria Ceramics
Limited is better in comparison to other tile manufacturing companies but if the same
condition continues then the company may face problem in future because most of the
dealers prefer to sell those brands which give them better margins.
So, if Kajaria ceramic ltd. Not changes its business strategy then it will confirm face
problem in respect of its customer as well as profit of the company.
First of all kajaria ceramic ltd. Segment its market separately in rural as well as urban
areas because their buying behavior and their thinking for tiles are different from each
other.
As we know that in rural areas most of the people faces economics problems. Here
economic indicate that the cash money. The reason behind this is natural disaster or
condition mean people buy essential goods on credit basis so they gave first preference
to satisfy those people who gave the substance on accredit basis. Rural area people
70
also say that what are the needs of the tiles for us? Firstly we manage need of our
family like food, cloths, shelter means repair of shelter before rainy season etc. And
then we think for the others.
So, the first step of the Kajaria ceramics Ltd. Is that to aware the rural area people,
about the advantages of tiles like heat resistance, by the use of tiles you may avoid
moisture in the stores by which your stored grains are affected, you may avoid
housefly which causes disease, you may also avoid the small insects and may snake
also who creep on the floor because they are unable to creep it on the tiles by the use
of the tiles etc.
You may easily do it because in rural area; people are interested to know about the
new thing. And in a day at least one time e they sit together so, you don’t face much
problem to collect the people or for giving demo. Of the tiles. When you will tell or
aware the rural area people for the need of the tiles then the next step is to make the
stock in that area by which they can easily buy it without spending much money on
transportation, after that you may also give a offer to buy on credit basis but this
credit should be in a period of six month or more for a year not more than this. The
reason behind that your business is also not affected by this offer. You should also
provide the better margin for the dealer s by reducing the by reducing the
advertisement through electronic or print media because dealers may play amore role
for motivating the customer for specific brand. You should also give questioners to
each dealer, which is necessary to fill i t , by the dealer after a month by which you can
analyze the current situation for the product on this area.
71
Now, in urban areas we know that the most of the people don’t have the time to listen
your demo for the tiles they say that whenever we feel to buy, at that time we may ask
for that. So you should concentrate on print media, electronic media and dealer. In
print media our as our advertisement are continuously published in some magazines
like business world. But all the potential customer not read that magazines. So, you
should also use the some banners and the places, which is able to see by the most of
the people. Next is through electronic media by this electronic media you should
advertise either on a prime time or on that time when a parent or guardian are watch
T.V like news or family related serial which is watched by the most of the
housewife’s.
And with the help of the margin, mean by giving more margin in comparison to the
other tiles company. If would we necessary cut some advertisement cost from the print
media or from electronic media then you should cut it .But you don’t compromise with
dealer margin. Because dealer play an important role for motivating the people. E.g. If
a customer enter in a shop which has a biggest banner of kajaria ceramic ltd. And the
customer also have some knowledge about kajaria tiles then dealers gave demo which
is fully devoted to kajaria but in last line if they say that now a days some of the
customers tells some problems comes in use of kajaria tiles so,We don’t take any
guarantee for this tile and according (dealers) to me if you spend such money then you
should invest on that brand which have no complaint yet, means another company
tiles who gave better performance and no one gave any type of complain so, most of
the potential customer divert for the another brand tiles and the dealers also make a
better margin as dealer sit on the shop for making money. So, why they don’t want to
72
sell that product which gave less margins? Where as the quality is as same as the
kajaria tiles. E.g. Dealers who have only Kajaria tiles now facing problem from local
manufactures which is located in Marbi, Rajkot, Baroder. Major competitor are Gold
coin, Bell ceramics, Asian etc. The above manufactures are having equivalent to
Kajaria quality and latest machinery.
a) Good, production team.
b) They are in mass advertisement for specific area.
c) Gave better margins to dealers by which dealers motivate potential customer to
customers.
d) They gave better margins to dealers by cutting advertisement cost.
If Kajaria may allow giving its tiles on a credit basis for a limited time period then the
number of the customer increases because some of the customers are brand loyal but
they don’t buy Kajaria tiles due to his financial position. Or buy another brand as they
have the option of credit basis.
Some of the dealers also complain that your services are not up to the mark like:-
Mahul traders say that some times company doesn’t give replacement offer for
defective materials for the customer.
Shree Shah sanitary stores say that since last one year, we have received many
complaints from the customers.
73
Having different problems requiring Kajaria ceramic tiles. There is no positive
answer from responsible person.
Vijay sanitary stores say they faced main problem of others. In others problem
can be sorting, services etc.They say that in pack of tiles id to stored tiles of II
quality in the I quality.
They also that due to present economic condition and cheaper and good quality of tiles
available in the market of different companies rates of your company are high.
Company is not able to solve the genuine complaint of the customers, replacement for
defective goods as well as rates.
Now, you also make the better contact with architecture because they can motivate the
potential customer through his scientific point of view and potential customer are
easily believe on his views like heat resistance , stroke resistance.
Contact with Builders as they may help to gave better contract by which your product
can use in a huge amount. With contractors they may also gave a better setting
condition and other who may gave you a better business.
You have also concentrates on those dealers who are nearer to the kajaria plus
showroom as they are affected by the opening of kajaria plus .The reason behind this,
is that the bigger project are transfer to the kajaria plus whereas this project is
actually concerned with those dealers who are nearer to the kajaria plus showroom it
will transfer to kajaria plus.
74
Note: - as due to the request of the some dealers and a large number of complaints we
not mention the same and all complaint, we mention only those, which conclude all
75
1. BIBLIOGRAPHY
76
BIBLIOGRAPHY
Web sites:
www.kajariaceramics.com
www.google.com
www.wikipedia.com
Books:
MARKETING MANAGEMENT : - PHILIP KOTLER
PRINCIPLES OF MANAGEMENT : - C.B. GUPTA
MARKETING RESEARCH : - D.D. SHARMA
RESEARCH METHODOLOGY : - C.R. KOTHARI
77
1. ANNEXURE
78
QUESTIONNAIRE
1. Which brand of tile do you use?
a) Kajaria
b) Johnson
c) Nitco
d) Somany
e) Orient
2. If given a chance to change the brand of tiles, would you prefer to change it?
a) Yes
b) No
3. If yes, then which brand?
a) Kajaria
b) Johnson
c) Nitco
d) Somanyorient
79
4. Are you aware of the fact that Kajaria Ceramics Ltd. Is the No.1 Tile
Company?
a) Yes
b) No
5. If yes then indicate the source of your awareness?
a) Newspaper
b) T.V
c) Magazine
d) Radio
6. Can you recall logo of any brand?
a) Yes
b) No
7. If yes then which brand?
a) Kajaria
b) Johnson
c) Nitco
d) Somany
e) Orient
80
8. In your view which one is the best company (Quality Wise)?
a) Kajaria
b) Johnson
c) Nitco
d) Somany
e) Orient
9. In your view which one is the best company (Feature Wise)?
a) Kajaria
b) Johnson
c) Nitco
d) Somany
e) Orient
10. In your view which one is the best company (Price Wise)?
a) Kajaria
b) Johnson
c) Nitco
d) Somany
e) Orient
81
11. Indicate the criterion for using the tiles?
a) Convenience
b) Premium
c) Economic
d) Value For Money
12. Which is the most usable location for tiles in your opinion?
A) Kitchen E) Rooms
B) Bathroom F) Veranda
C) Floor G) Others
D) Gallery
13. Indicate your usage rate?
a) Heavy User
b) Medium User
c) Light User
d) Non User
82