Download - Godrej Locks,40

Transcript
Page 1: Godrej Locks,40

TABLE OF CONTENTS

Executive Summary

Introduction

Objective

Methodology

Background

Product Details

Financial Highlights

Distribution

Organizational Structure

SWOT Analysis

Conclusion

Recommendation

Bibliography

Annexure

Page 2: Godrej Locks,40

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.

Page 3: Godrej Locks,40

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.

Page 4: Godrej Locks,40

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.

Page 5: Godrej Locks,40

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.

Page 6: Godrej Locks,40

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

Page 7: Godrej Locks,40

their regional office at Anand Vihar Delhi and some

data were collected from the Internet.

Page 8: Godrej Locks,40

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

Page 9: Godrej Locks,40

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.

Page 10: Godrej Locks,40

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

Page 11: Godrej Locks,40

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

Page 12: Godrej Locks,40

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.

Page 13: Godrej Locks,40

The Range of Door Closers include : 1. Hydraulic Door Closers -

Heavy Duty

2. Hydraulic Door Closers - Two Speed

3. Hydraulic Door Closers - Standard

Page 14: Godrej Locks,40

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.

Page 15: Godrej Locks,40

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

Page 16: Godrej Locks,40

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.

Page 17: Godrej Locks,40

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.

Page 18: Godrej Locks,40

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

Page 19: Godrej Locks,40

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.

Page 20: Godrej Locks,40

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

Page 21: Godrej Locks,40

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.

Page 22: Godrej Locks,40

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

Page 23: Godrej Locks,40

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

Page 24: Godrej Locks,40

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

Page 25: Godrej Locks,40

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).

Page 26: Godrej Locks,40

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

Page 27: Godrej Locks,40

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

Page 28: Godrej Locks,40

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

Page 29: Godrej Locks,40

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

Page 30: Godrej Locks,40

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.

Page 31: Godrej Locks,40

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

Page 32: Godrej Locks,40

– 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.

Page 33: Godrej Locks,40

Ideal brand

GODREJ

Harrison

Link

Dorset

Existing customers of Godrej

IDEAL

Godrej

Harrison

link

Door set

Non customers of Godrej

.

Page 34: Godrej Locks,40
Page 35: Godrej Locks,40

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

Page 36: Godrej Locks,40

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

Page 37: Godrej Locks,40

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

Page 38: Godrej Locks,40

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

Page 39: Godrej Locks,40

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.

Page 40: Godrej Locks,40

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.