Professional Documents
Culture Documents
MKT Potential
MKT Potential
S.VIMALA
REGISTER NO: 27348355
Under the Guidance of
Mr. G.BALA SENDHIL KUMAR, B.E., M.B.A., M.Phil.
Faculty, Department Of Management Studies
GUIDE
EXTERNAL EXAMINER
HEAD OF DEPARTMENT
ACKNOWLEDGEMENT
I express my sincere thanks and deep sense of gratitude to our Management of Sri
Manakula Vinayagar Engineering College, Puducherry, who supported us in all ways for
doing this project.
I am extremely grateful to Our Principal Dr. V.S.K. VENGATACHALAPATHY for
providing necessary and essential facilities to do this project report.
I express our sincere thanks and deep sense of gratitude to our Head of Department
Mr.S.JAYAKUMAR, Department of Management Studies for providing an opportunity to do
this project.
I express a deep sense of gratitude to my Guide Mr.G.BALA SENDHIL KUMAR,
Faculty, Department of Management Studies, for his encouragement, support and guidance to
complete this project successfully.
I convey my heartiest thanks to Mr.S.MANI Marketing Manager, ACE GLASS
CONTIANERS LTD., Chennai, who kindly granted permission to do this project in their
esteemed organization. I express him my sincere thanks for guiding me in all ways to do this
project.
I express my sincere thanks and deep sense of gratitude to all my Departments Staffs
for giving suggestions and encouragement time to time in all possible ways.
I thank my Parents, brothers and friends for giving me a valuable support to complete
this project.
ABSTRACT
Market potential is the total sales volume that all organization sells during a stated
time period in a specific market. Market potential certain number of brands in the market,
trend of each major brands market share over the past several years, amount of money spent
by major brands in advertising and price structure of the existing players.
A study on market potential of float glasses in Chennai is done for ACE GLASSES
CONTAINERS LTD., is a pioneer in glass containers manufacturing who tend to enter float
glass market in the year 2007.The objective of the study is to know the potential of float
glasses in Chennai market and to assess the opportunity of HNGIL to enter the float glass
market.
The questionnaire consist of 23 questions where data are collected from 60 samples,
samples include wholesalers, retailers and building contractors in Chennai. The conclusion
was reached using Percentage method, Chi square test, Rank correlation, Weighted average
method and One-Way ANOVA method.
This study gives the sales volume for last year and it identifies the consumers, and
their choice of buying float glasses; it gives information about the facilities given by the
market players to the customers to maintain customer relationship and the awareness media
through which they increase their sales. This study would be useful for HNGIL while entering
the float glass market. This study can be extended to national level to know the global markets
potential.
TABLE OF CONTENTS
CHAPTER
TITLE
PAGE NO
LIST OF TABLES
LIST OF CHARTS
iv
v
II
REVIEW OF LITERATURE
III
19
IV
RESEARCH METHODOLOGY
20
24
VI
50
VII
VIII
SUGGESTION,
RECOMMENDATIONS
&
CONCLUSIONS
LIMITATIONS & SCOPE FOR THE FURTHER
STUDY
ANNEXURE
52
54
56
LIST OF TABLES
S.No
TABLE NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
24
25
26
27
Page
No
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
46
46
47
48
49
LIST OF CHARTS
S.No
1
2
3
CHART NAME
AREA COVERED BY DEALERS IN CHENNAI REGION
BRANDS AVAILABLE IN THE SHOWROOM
MEDIA THROUGH WHICH DEALERS GOT AWARE OF THE
Page No
24
25
26
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
BRANDS
BRANDS THAT DEALERS PREFER TO SELL
DEALERS MAJOR CUSTOMERS
THICKNESS PREFERED BY THE CUSTOMERS
COLOURS PREFERED BY CUSTOMER
DEALERS IMMEDIATE SUPPLIERS
PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS
SERVICE PROVIDED BY THE SUPPLIERS
RESPONDENTS FEELING ABOUT THE SERVICE
GIVEN BY SUPPLIER
RESPONDENTS FEELING REGARDING THE CASH DISCOUNTS
GIVEN BY SUPPLIERS
RESPONDENTS OPINION REGARDING THE PRICE FIXED
RESPONDENTS SATISFACTION ON THE CREDIT DUES FACILITY
DEALERS OPINION REGARDING THE COMPLAINTS
RESPONDENTS OPINION ON CORRECTIVE ACTIONS OF
QUALITY PROBLEMS & COMPLAINTS
COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND
CUSTOMERS
RESPONDENTS ATTITUDE ON GIVING RIGHT INFORMATION AT
RIGHT TIME TO THE SUPPLIERS
PROFIT MARGIN OF DEALERS
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
CHAPTER - I
INTRODUCTION
1.1 COMPANY PROFILE
In 1994, The Company was incorporated as joint venture Company between IQ
and Bulliarpur Industries Ltd.
Ace Glass Containers Ltd. has its manufacturing facilities at Rishikesh (Uttranchal),
Nashik (Maharashtra) and Pondicherry, Rishra (West Bengal), Bahadurgarh with 42
production lines. All the units are equipped with fully automatic state-of-the-art
manufacturing processes.
1.1.2.2 Glass Equipment (India) Limited
GEIL's state-of-the-art technology accounts for manufacture of sophisticated
equipment for glass plants. It is also expert in manufacturing of critical spares for Glass
container manufacturing industries and provides solutions in setting up glass plants on a
turnkey basis.
1.1.2.3 Ceramic Decorators Limited
CDL provides decorative printing on bottles with the latest machines and Lehrs.
1.1.2.4 Somany Foam Limited
Project, being set up at BHEL Industrial Area, Haridwar to manufacture all types of
foam with a Capital outlay of Rs.36 Crores. Commercial Production had commenced from
April 2006.
1.1.3 ACHIEVEMENTS
HNG Group is the undisputed market leader in the 6 ml - 3200 ml segment. Catering
to around 70% of the Domestic Market in the pharmaceutical, beverage, processed
food, cosmetic and liquor sectors covering industry majors like, Coca Cola, Dabur,
glaxoWellcome, Nestle, Pepsi, Reckitt Benckiser (India) Ltd., and Smithkline
Beecham, UB Group.
Exports to South East, Middle East, Africa and First World Countries in Europe &
North America.
1.1.4 PRODUCTION
HNGIL is an acknowledged market leader of today and producing 6 million bottles
per day ranging from 5 ml to 3200 ml containers for multifarious industries like
pharmaceuticals, beverages, processed foods, cosmetics, liquors etc.
10
Ace Glass Containers Ltd. has its manufacturing facilities at Rishikesh (Uttranchal),
Nashik (Maharashtra) and Pondicherry, Rishra (West Bengal), Bahadurgarh with 42
production lines.
manufacturing processes.
The Rishikesh unit has two furnaces of a combined capacity of 320 tones per day. The
Pune unit has a furnace of 185 tones per day, capacity with SIS forming machinery. The
Pondicherry unit is the newest and most technically capable plant with one furnace of 235
tones per day capacity.
The design cell of HNG group is equipped with CAD-CAM facilities for designing
and manufacturing moulds and mould accessories, and they offer containers of unique shapes
and sizes in various colors. HNG group manufactures over 500 kinds of glass containers to
cater to a diverse range of applications.
1.1.4.1 PRODUCT COLOR
Amber
Flint
Green (including Georgia Green)
1.1.4.2 PRODUCT SIZE
Size varies from 5 ml to 3200 ml
1.1.5 QUALITY
1.1.5.1 Quality Assurance
Quality Control and R&D sections are well equipped with sophisticated instruments,
which contribute to produce international quality containers. The instruments are
Atomic Absorption Spectrophotometer
Flame Photometer
11
12
Pepsi Co.,
Coca-Cola
Cadburys
Nestle
Raun Pollack
Dabur
Bayer
Lakme
Glaxo
Pfizer
Reckitt & Coleman
Shaw Wallace
UB group
1.1.7 COMPANY VISION
To strive to be a major international producer of quality container glass by
consistently following and adopting the most modern methods and techniques in an
environment friendly manner with active involvement of its employees to meet the needs of
its customers and stakeholders so as to achieve sustainable development and long term
growth.
1.1.8 MARKETING DEPARTMENT
Senior Vice President Marketing, heads the Marketing Department of the company.
Under him there is three Regional Managers for three zones like North India, South India,
West India. A marketing team which extent from Deputy Manager to Marketing Trainees.For
South the regional office marketing is functioning in Chennai follows the Regional Manager.
13
Deputy Manager
Deputy Manager
Deputy Manager
Sales Executive
Sales Executive
Sales Executive
Marketing Trainee
Marketing Trainee
Marketing Trainee
14
The firm needs to augment its potential data with information about the competitive
structure of individual market. They have started the market analysis from Chennai. These
study on market potential certainness the following information about Chennai market.
Number of brands in the market.
Trend of each major brands market share, over the past several years.
Amount of money spent by major brands in advertising currently and over the past
several years.
Price structure of the existing players
Distribution structure with particular reference to leading retail outlets and exclusive
distributor franchises.
CHAPTER II
REVIEW OF LITERATURE
2.1 DEFINING MARKET POTENTIAL
15
Market or sales potential must be stated for a given product or group of product for a
given area for a given period of time, usually a year.
Market potential is the total sales volume that all organization selling during a stated
time period in a specific market could expect to achieve under ideal conditions.
A market potential indicates how much of a particular product can be said to a
particular market segment over some future period. The term potential refer to a maximum
level of sales and assumes that all the marketing plans are sound and effecting implemented
and all prospective customer with the desire and ability to buy do so.
2.1.1 Analyzing market potential
The important steps in analyzing the market potential are
1.Market identification
The first step in analyzing a products market potential is to identify its market
identification requires finding out
a. Who buy the products?
b. Who uses it of?
c. Who are the prospective buyers and/or users?
2.Market motivation
The second step in analyzing market potential is to detect the reasons why customers
buy the product and the reasons why potential customers might buy it.
Market motivation studies answers the twins questions. Why do people buy and why dont
people buy? most explaining the buyer behavior of ultimate customers rather than industrial
users. The information from motivation studies helps not only estimating a products market
potential but also assist in deciding.
a. How best to present the products in sale talk
b. The relative effectiveness at different selling appeals
c. The appropriateness of various promotional methods
3.Analysis of market potential.
Having identified the potential buyers and their buying behavior their step is to
analyze the market potential generally market potential cannot be analyses directly. So an
analysis makes use of market factors. A market factor is a market potential. It is a two-stepped
process.
a) Select the market factors associated with the product demand
16
b) Eliminating those market segments that do not contain prospective buyer at the
product.
Market potential analysis is a strategic tool to identify market opportunities and invest
resources where they will have the greatest return in the long run. Market potential analysis
enables companies to:
Categorize countries as lead markets, breakout markets or emerging markets.
Quantify market potential for a given product by country, region or globally, now and
in the future
Identify growth drivers and barriers in those markets.
Understand how to exploit growth markets by tailoring marketing; product
development and production strategies to meet customer demands and overcome
market barriers.
2.2 MARKET POTENTIAL INFLUENCERS
Many forces influence market potential, but there are two broad sets of factors that are
key: Demand Drivers and Inhibitors (Figure 1).
Figure 1. Demand drivers for product
17
The first is the size and wealth of a market. This determines the number of
households, companies, government agencies and other organizations that can actually
afford to buy a product. This is not a simple calculation, and average figures such as
total population and GDP per capita offer only a starting point. Other factors include
household income distribution and the structure of the business sector. Much of the
value of market potential analysis comes in calculating accurately the number of
potential customers there are for a given product.
The second is the utility of a product in a particular market. This varies according to
the nature of the product and the characteristics of the market. For instance, if you are
selling an English-only online service, the number of people who speak English in a
given market will determine the value of the service. Similarly, if you are selling PCs
for small businesses, the value of the systems will depend on how easily they can be
networked and communicate internally.
The third demand driver is the supporting infrastructure for a product. Frozen foods
require refrigerators, and refrigerators require electricity, so the demand for frozen
foods is dependent on the presence of reliable, affordable electrical power. For
information and communication products, the necessary infrastructure can include
telephone lines, satellite uplinks, and human resources such as skilled programmers,
technicians and users. The quality of infrastructure generally corresponds to national
wealth, but there are significant differences among countries at similar levels of
wealth.
2.2.2 Demand Inhibitors
Market potential in a given country can appear to be high, but actual demand remains
low. This is usually due to the presence of demand inhibitors that either raise the cost or lower
the utility of a product. An obvious example is a tax or tariff, which increases the price to final
customers. Quotas and other trade barriers have the same effect. Some inhibitors such as
tariffs are explicit and can be quantified, while others are less visible and can only be
identified through in depth knowledge of a country. For example, the business model of
companies, management culture, and labor environment (e.g., lifetime employment, strong
unions) can inhibit demand.
18
19
20
21
Marketing Research
Advertising
Research
Product
Research
Consumer
Research
Sales
Research
Corporate
Research
22
This research activity includes location and design for distribution outlets, transpiration and
logistic studies, dealers surveys etc.
2.8.2.4 Price Research
It includes pricing studies about elastic ties marginal analysis, cost analysis and perception
regarding price.
The Principal task of marketing Management is to fulfill the aspiration of the consumers like
what they want; how they make the choice; or what are there source of information and
influence processes etc .In this process an organization can identify new opportunities in the
market; evaluating and monitor marketing actions and in general, evolve better marketing
program to serve the interest at consumer. Thus market research acts as a link between the
customer and the marketer.
2.9 CONSUMER BEHAVIOUR
Consumer behavior is the study of how people buy, what they buy, when they
buy and why they buy. It blends elements from Psychology, sociology, sociopsychology,
anthropology and economics. It attempts to understand the buyer decision-making process,
both individually and in groups. It studies characteristics of individual consumers such as
demographics, psychographics and behavioral variables in an attempt to understand peoples
wants. It also tries to assess influences on the consumer from groups such as family, friends,
reference groups and society in general.
Consumer behavior essentially refers to how and why people make the purchase
decisions they do. Marketers strive to understand this behavior so they can better formulate
appropriate marketing stimuli that will result in increased sales and brand loyalty. There are a
vast number of goods available for purchase, but consumers tend to attribute this volume to
the industrial world's massive production capacity. Rather, the giant known as the marketing
profession is responsible for the variety of goods on the market. The science of evaluating and
influencing consumer behavior is foremost in determining which marketing efforts will be
used and when.
Marketers spend a great deal of time and money discovering what compels consumers
to make such on-the-spot purchases. Market researchers obtain some of the best information
through in-store research, and will often launch new products only in select small venues
23
where they expect a reasonable test of the product's success can be executed. In this manner,
they can determine whether a product's success is likely before investing excessive company
resources to introduce that product nationally or even internationally.
2.10 INTERPRETING CONSUMER BEHAVIOR
There are two principal ways to evaluate the motivation behind consumer purchases.
These are by direction (what they want) and intensity (how much they want it). Direction
refers to what the customer wants from a product. Marketers need to understand the principal
motivation behind each type of product to correctly target potential customers.
The other way to evaluate consumer behavior, intensity, refers to whether a customer's
interest in a product is compelling enough that they will go out and make the purchase.
2.11 INFLUENCING CONSUMER BEHAVIOR
One of the best ways to influence consumer behavior is to give buyers an acceptable
motive. This is somewhat related to the idea of asking what type of person would buy a
certain product in evaluating consumer behavior. Consumers want to feel they're doing
something good, being a good person, eating healthy, making contacts, keeping up
appearances, or that they just deserve to be spoiled a little bit. If marketers can convince
consumers that they need a product or service for some "legitimate" reason, customers will be
more likely to make a purchase.
2.12 MOTIVATION
Motivation refers to an activated state within a person that leads to goal-directed behavior.
It consists of the drives, urges, wishes, or desires that initiate the sequence of events
leading to a behavior.
Motivation begins with the presence of a stimulus that spurs the recognition of a need.
Need recognition occurs when a perceived discrepancy exists between an actual and a
desired state of being
Needs, can be either innate or learned.
24
Information
Promotion
Contact
Matching
Negotiation
Physical distribution
Financing
Risk taking
and packaging
Reaching agreement on price and other terms of the offer
Transporting and storing goods
Acquiring and using funds to cover the costs of the distribution channel
Assuming some commercial risks by operating the channel (e.g. holding
stock)
25
Manufacturer
Consumer
Channel 2
Manufacturer
Retailer
Consumer
Channel 3
Manufacturer
Wholesaler
Retailer
Consumer
Channel 4
Manufacturer
Wholesaler
Jobber
Retailer
Consumer
26
CHAPTER III
OBJECTIVES OF THE STUDY
To assess the market for float glasses in Chennai region and to assess the
opportunities for HNGIL to enter the market.
To identify the existing market players, their marketing channel and the promotional
activities they adapt.
To understand the consumer choice of buying float glasses in this market.
Finally to suggest measures based on the findings.
27
CHAPTER IV
RESEARCH METHODOLOGY
4.1.1 RESEARCH DESIGN
The research design used was Descriptive one. It narrates the whole research in a
simple manner.
4.1.2 TYPES OF DATA COLLECTED
4.1.2.1 Primary Data
Questionnaires were prepared and interview was conducted. Most of the questions are
of multiple choices. The Questionnaires were framed in English. Generally 22 Questions are
framed and the data are collected from the glass dealers in Chennai region.
4.1.2.2 Secondary Data
Secondary data was collected from Internet, various books, journals and Company
Records.
4.1.3 QUESTIONNAIRE CONSTRUCTION
Questionnaire was constructed in three formats
i.
Multiple choices
ii.
Close ended
iii.
Open ended
28
x 100
Total no. Of Respondents
29
Formula,
(O-E) 2
2 =
E
O
Observed frequency
Expected frequency
30
considered and then observe that the reason for said factor to be important is several possible
types of samples can occur within that factor.
In short, we have to make two estimates of population variance viz., one based on
between samples variance and based on within samples variance. Then said two estimates of
population variance are compared with F-test, wherein we work out.
Estimate of population variance based on between samples variance
F =
Estimate of population variance based on within samples variance
31
CHAPTER V
DATA ANALYSIS AND INTERPRETATION
TABLE 5.1
AREA COVERED BY DEALERS IN CHENNAI REGION
AREA
S.No
1
2
3
4
5
North
18
30
West
3.33
South
13.33
East
32
53.33
60
100
TOTAL
Source : Primary Data
Inference:
From the above table it is inferred that 53.33% of dealers trade all over the Chennai
region, 30% of them cover North of Chennai, 13.33% of them cover South of Chennai and
3.33% of them trade in West Chennai.
CHART: 5.1
North
30%
West
3%
East
0%
South
13%
32
TABLE 5.2
BRANDS AVAILABLE IN THE SHOWROOM
BRAND
NO OF RESPONDENTS
PERCENTAGE
Saint Gobain
24
40
Asahi
3.33
Modi Guard
10
16.66
Triveni
3.33
Imported
10
16.66
12
20
60
100
S.No
1
2
3
4
5
6
TOTAL
Source : Primary Data
Inference:
The above table states that 40% of Dealers sell Saint Gobain float glasses, 16.66% of
them deal with Modi Guard and Imported from Indonesia, China, Thailand, Gujarat, Pakistan,
3.33% of sell Asahi and Triveni and 20% of deal with all the above brands.
CHART 5.2
40
40
35
30
In %
25
20
16.66
16.66
20
15
10
3.33
3.33
5
0
Saint
Gobain
Asahi
Modi Guard
Triveni
TABLE 5.3
Others
All the
above
33
NO OF RESPONDENTS
PERCENTAGE
Advertisement
13.33
Manufactures/Dealers
38
63.33
Friends
3.33
Newspaper/magazines
13.33
No response
6.6
60
100
S.No
1
2
3
4
5
6
TOTAL
Source : Primary Data
Inference:
The above table shows 63.33% Dealers got awareness about the Brands mainly from
the Manufactures, 13.33% of them got aware from Advertisement, 3.3% of them through
friends and 13.33% of them got awareness from all the above media, where 6.66% of Dealers
gave no response since they continued this business from their Parents.
CHART 5.3
No response
7%
All the above
13%
Advertisement
13%
new spaper/magazine
0%
Friends
3%
Manufactures/Dealers
64%
TABLE 5.4
BRANDS THAT DEALERS PREFER TO SELL
34
BRAND
NO OF RESPONDENTS
PERCENTAGE
Saint Gobain
28
46.66
Asahi
6.66
Modi Guard
10
16.66
Triveni
6.66
Others
14
23.33
60
100
S.No
1
2
3
4
5
6
TOTAL
Source : Primary Data
Inference:
This table states which brand do Dealers wish to sell, mostly 46.66% of Dealers which
to sell Saint Gobain Float glasses, 16.66% of them prefer to sell Modi Guard,6.66% wish to
deal with Asahi and Triveni and 23.33% of dealers prefer to trade all the above brands,
whereas among the 60 respondents no one wish to sell other brands rather than these four
brands.
CHART 5.4
In %
50
45
40
35
30
25
20
15
10
5
0
46.66
23.33
16.66
6.66
6.66
Saint
Gobain
Asahi
Modi Guard
Triveni
Others
All the
above
TABLE 5.5
DEALERS MAJOR CUSTOMERS
35
CUSTOMERS
NO OF RESPONDENTS
PECENTAGE
Commercial enterprises
6.66
13.33
Government Agencies
Institutions
3.33
Home Users
13.33
Others
3.33
36
60
60
100
S.No
1
2
3
4
5
6
7
8
TOTAL
Source : Primary Data
Inference:
This table infers 13.33% of respondents major customers are Builders, Architect and
home users, 6.66% of customers are Commercial Enterprises, 3.33% of buyers are Institution
and others, thereby 18 respondents out of 30 sell float glasses to all the above customers.
CHART 5.5
60
Others
3.33
0
Home Users
13.33
3.33
Government Agencies
0
13.33
Commercial enterprises
6.66
10
20
30
40
50
60
70
80
90
in %
TABLE 5.6
THICKNESS PREFERED BY THE CUSTOMERS
100
36
THICKNESS in mm
NO OF RESPONDENTS
PECENTAGE
2-12
52
86.66
13-15
19
13.33
60
100
S.No
1
2
3
4
TOTAL
Source : Primary Data
Inference:
This states 86.66% dealers of sell 2mm, 2.5mm, 3mm, 4mm, 5mm, 6mm, 8mm,
10mm and 12mm thick float glasses, and 13.33% of respondents sell all the above thickness
as per the order they get from customers and rarely sell 13mm, 15mm and 19mm which are
mainly imported brands.
CHART 5.6
100
90
86.66
80
70
In %
60
50
40
30
20
13.33
10
0
2--12
13-15
19
TABLE 5.7
COLOURS PREFERED BY CUSTOMER
37
COLOURS
NO OF RESPONDENTS
PECENTAGE
Clear
20
33.33
Bronze
6.66
Grey
3.33
Blue
Green
34
56.33
60
100
S.No
1
2
3
4
5
6
TOTAL
Source : Primary Data
Inference:
The above table states from the 60 respondents 34 of them says customers prefer all
the above colors, where as 20 of them suggest only clear, four of them says bronze and two
say grey color.
CHART 5.7
Clear
33%
TABLE 5.8
DEALERS IMMEDIATE SUPPLIERS
38
SUPPLIERS
NO OF
PECENTAGE
RESPONDENTS
36
60
C&F
3.33
Wholesalers
16
26.66
Retailers
10
60
100
S.No
1
2
3
4
Manufacturers
TOTAL
Source : Primary Data
Inference:
This table concludes 60% of suppliers are Manufacturers, 26.66% of suppliers are
Wholesalers, 10% of them are retailers and 3.33% of suppliers are C&F.
CHART 5.8
100
90
80
70
In %
60
60
50
40
26.66
30
20
10
10
3.33
0
Manufacturers
C&F
Wholesalers
Retailers
TABLE 5.9
PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS
39
S.No
1
2
3
4
5
6
PROMOTIONAL ACTIVITIES
NO OF RESPONDENTS
PECENTAGE
Offers
16
26.66
Gifts
3.33
Promotional novelties
Others
14
23.33
10
16.66
None
18
30
60
100
TOTAL
Source : Primary Data
Inference:
This table shows the promotional activities carried down by the suppliers and their
effort in promoting their sales.26.66% of suppliers promote their customers by giving offers,
23.33% of suppliers conduct meeting, get together, parties and give awards to the customers
to make them loyal,16.66% of them do all the above activities to promote the customer to buy
only their product, where 3.33% of them give only gifts to increase their sales.
CHART 5.9
None
30
16.66
Others
23.33
Promotional novelties
Gifts
3.33
Offers
26.66
10
20
30
40
50
60
70
in %
TABLE 5.10
SERVICE PROVIDED BY THE SUPPLIERS
80
90
100
40
SERVICE PROVIDED
NO OF RESPONDENTS
PECENTAGE
Transportation
6.66
18
30
Scratch warranty
3.33
24
40
No such service
12
20
60
100
S.No
1
2
3
4
5
TOTAL
Source : Primary Data
Inference:
This table gives an idea about the various services provided by the suppliers to their
customers. Nearly 40% of the suppliers provide all the above services, where 30% provide
only immediate order fulfillment service, 6.66% give Transportation service, 3.33% give
Scratch Warranty but 20% of dealers say Suppliers does not provide such services.
CHART 5.10
100
90
80
70
In %
60
50
40
40
30
30
20
20
10
6.66
3.33
0
Transportation
Order
fulfillment
Scartch
warranty
No such
service
TABLE 5.11
RESPONDENTS FEELING REGARDING THE SERVICE PROVIDED
BY THE SUPPLIERS
41
SERVICE PROVIDED
NO OF
PECENTAGE
RESPONDENTS
20
33.33
Good
30
50
Average
10
16.66
Poor
60
100
S.No
Very good
1
2
3
4
TOTAL
Source : Primary Data
Inference:
From the table it is inferred that 50% of respondents says the service provided by the
suppliers is good and 33.33% of the says their service is very good, where 16.66% of them
say the service given is average but no one responded as the service is poor.
CHART 5.11
50
50
45
40
33.33
35
In %
30
25
16.66
20
15
10
5
0
Very good
Good
Average
TABLE 5.12
Poor
42
NO OF RESPONDENTS
PECENTAGE
Yes
34
56.66
No
26
43.33
60
100
S.No
1
2
TOTAL
Source : Primary Data
Inference:
Above table states 56.66% of suppliers give cash discount when the amount is paided
before the due date, these respondents are mostly wholesalers, they even included,
manufacturers give cash discount when they order more than two trucks and generally all the
imported brands give discount. But 43.33% of the respondents say they do not provide
discount facilities, these respondents are mainly retailers.
CHART 5.12
100
90
80
70
In %
60
56.66
50
43.33
40
30
20
10
0
Yes
No
43
TABLE 5.13
RESPONDENTS OPINION REGARDING THE PRICE FIXED
PRICE FIXED
NO OF RESPONDENTS
PECENTAGE
Very high
13.33
High
12
20
Moderate
36
60
Low
No response
6.66
60
100
S.No
1
2
3
4
5
TOTAL
Source : Primary Data
Inference:
This table shows how the customers feel about the price fixed by the suppliers.60% of
the respondents feel the price fixed is moderate and affordable. 20% of them feel the price is
high, 13.33 of them says the price is very high. And 6.66% of them do not respond to this
question since feel the price fluctuates often because of competitive pricing.
CHART 5.13
60
60
50
40
In %
30
20
20
13.33
6.66
10
0
Very high
High
Moderate
Low
No
response
44
TABLE 5.14
RESPONDENTS SATISFACTION ON THE CREDIT DUES
FACILITY
CREDIT DUE SATISFACTION
NO OF
PECENTAGE
Yes
RESPONDENTS
42
70
No
18
30
60
100
S.No
1
2
TOTAL
Source : Primary Data
Inference:
Above table shows the satisfactory response of the customers for the credit dues given
by the customers.70% of the customers are satisfied with the present credit dues, where the
payment as to be made in 60 days, whereas the 30% of the customer are not satisfied with
credit dues, these unsatisfied customers are mainly retailers they wish 90days credit dues.
CHART 5.14
100
90
80
70
70
In %
60
50
40
30
30
20
10
0
Yes
No
45
TABLE 5.15
DEALERS OPINION REGARDING THE COMPLAINTS
COMPLAINTS
RECEIVED
NO OF RESPONDENTS
PECENTAGE
Yes
10
16.66
No
49
66.66
Sometimes
10
16.66
60
100
S.No
1
2
3
TOTAL
Source : Primary Data
Inference:
From the above table its clear that 16.66% of dealers receive complaints and 66.66%
of respondents says they do not receive complaints, where 16.66% of them replied they
receive complaints sometimes.
CHART 5.15
66.66
70
60
50
In %
40
30
16.66
16.66
20
10
0
Yes
No
Sometimes
46
TABLE 5.16
RESPONDENTS OPNION ON CORRECTIVE ACTIONS OF
QUALITY PROBLEMS & COMPLAINTS
CORRECTIVE ACTIONS
TAKEN
NO OF RESPONDENTS
PECENTAGE
Yes
38
63.33
No
18
30
Rare
6.66
60
100
S.No
1
2
3
TOTAL
Source : Primary Data
Inference:
Above table shows whether the supplier take corrective actions immediately regarding
the complaints and quality problems.63.33% of the respondents say the suppliers take
immediate action regarding the problems, 6.66% of them says the rarely taken corrective
action but 30% of the respondents says they do not take corrective action, the suppliers tend
delay the action as the problem get dilute after a long period.
CHART 5.16
100
90
80
70
63.33
In %
60
50
40
30
30
20
6.66
10
0
Yes
No
Rare
47
TABLE 5.17
COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND CUSTOMERS
COMMUNICATION
SYSTEM
NO OF RESPONDENTS
PECENTAGE
Highly effective
12
36.66
Effective
32
53.33
10
TOTAL
60
100
S.No
1
2
3
4
Effective
53%
Highly effective
37%
48
TABLE 5.18
RESPONDENTS ATTITUDE IN GIVING RIGHT INFORMATION
AT RIGHT TIME TO THE SUPPLIERS
SUGGESTIONS GIVEN
NO OF RESPONDENTS
PECENTAGE
Yes
22
36.66
No
32
53.33
No response
10
60
100
S.No
1
2
3
TOTAL
Source : Primary Data
Inference:
Above table infers 36.66% of the customers give right information to their suppliers at
the right time, mainly the information given by the customers are regarding the demand for
the product and the improvement needed in the product, these respondents are mainly
Wholesalers. 53.33% of the customers say suppliers, do not get suggestions from them, these
respondents are mainly retailers.
CHART 5.18
10
No response
53.33
No
36.66
Yes
10
20
30
40
50
in %
60
70
80
90
100
49
TABLE 5.19
PROFIT MARGIN OF DEALERS
S.No
1
2
3
4
5
PROFIT MARGIN in %
NO OF RESPONDENTS
PERCENTAGE
5-10
24
40
11-20
16
26.67
21-30
6.66
above 30
10
No response
10
16.66
60
100
TOTAL
Source : Primary Data
Inference:
The above table shows the selling profit margin of the respondents in %. 40% of the
respondents fix 5-10 % of profit margin, these respondents are mainly retailers.26.66% of the
respondents say get profit of 11-20%, 6.66% of them get 21-30% and 10% of them get profit
above 30,these respondents are mostly wholesalers. Whereas 16.66% of the respondents
refused to reveal their profit margin
CHART 5.19
40
40
35
26.67
30
In %
25
16.66
20
10
15
6.66
10
5
0
5--10
11--20
21-30
> 30
No
response
50
VERY
PLAYERS
NOT
ALL
SaintGobain
13
22
Asahi
ModiGauard
16
Triveni
Others
17
33
60
TOTAL
Source : Primary Data
FORMULA:
(O-E) 2
2 =
E
O
Observed frequency
Expected frequency
TABLE 5.21
51
S.NO
O-E
(O-E)2
(O-E)2/E
6.23
2.76
7.65
1.22
2.26
-1.26
1.60
0.70
4.53
2.46
6.08
1.34
1.7
-1.7
2.89
1.7
2.26
-2.26
5.13
2.26
13
12.1
0.9
0.81
0.06
4.4
2.6
6.76
1.53
8.8
0.2
0.04
0.01
3.3
-1.3
1.69
0.51
10
4.4
-2.4
5.76
1.31
11
1.83
-1.83
3.36
1.83
12
0.66
-0.66
0.44
0.66
13
1.33
-1.33
1.77
1.33
14
0.5
2.5
6.25
12.5
15
0.66
1.33
1.77
2.66
16
1.83
-1.83
3.36
1.83
17
0.66
-0.66
0.44
0.66
18
1.33
-1.33
1.77
1.33
19
0.5
0.5
0.25
0.5
20
0.66
3.33
11.11
16.67
TOTAL
50.67
= 12
52
Level of Significance = 5%
Table value 12 of DGF at 5% level of significance = 21.026
Calculated Value 21.026 is greater than Tabulated value 50.67
Hence, Null Hypothesis is rejected.
Result:
From the above calculation, it is inferred that the existing players dependent on the
effectiveness of communication system i.e. from the survey it is clear that to survive in this
market the manufactures must have effective communication with the customers/dealers.
53
S.NO
FACILITIES
YES
SOMETIMES
NO
Discount
34
26
Credit Dues
42
18
Corrective actions
38
18
Info/Suggestion
22
32
S.NO
FACILITIES
YES
SOMETIMES
NO
Discount
102
26
128
2.133333
Credit Dues
126
18
144
2.4
Corrective actions
114
18
140
2.333333
Info/Suggestion
66
12
32
110
1.833333
Inference:
The above table infers that the customers give more weight age to credit dues facilities
rather than discount facilities and corrective actions taken by the suppliers for any complaints.
ANALYSING THE DIFFERENCE BETWEEN THE SERVICES PROVIDED
BY THE EXISTING PLAYERS (USING ONE WAY ANOVA)
54
Null Hypothesis:
There is no significant difference between the services provided by the existing market
players.
Alternate Hypothesis
There is a significant difference between the services provided by the existing market
players.
TABLE 5.24
SERVICES FROM EXISTING MARKET PLAYERS
S.No
SAINT
ASAHI
MODIGUARD
TRIVENI
OTHERS
GOBAIN
9
11
1 (T2) 2
+
1 (T3) 2
+
n1
n2
1 (T4) 2
+
n3
(T) 2
SST = SumSum2 n
*Sum of squares errors (SSE) =SST SSTr
1 (T5) 2
+
n4
1 (T) 2
-
n5
55
1(562 )
SST = 352
= 143
15
SSTr = 81
SSE = 143 81 = 62
ONE-WAY ANOVA CALCULATION
TABLE 5.25
SOURCES OF
DEGREES OF
SUM OF
MEAN SUM
VARIANCE
FREEDOM
4
SQUARES
143
OF SQUARES
35.75
10
62
6.2
Existing
players
Error
5.76
56
PRICE
S.No
(X)
(Y)
rx
ry
d=rx-ry
d2
20
-1
30
12
-1
10
36
d2
= 0.4
43 4
RESULT:
The respondents feel the price fixed by the suppliers is less positively correlated with
the service provide by the suppliers.
CHAPTER VI
FINDINGS OF THE STUDY
57
From the study it is observed that, most of the respondent sell 100-500 pieces of float
glasses per year. They cover sales in all the places of Chennai. And they deals with all the
available brands in the market including the imported float glasses from Indonesia, China,
Thailand, Gujarat and Pakistan.
This study says respondents last year sales % as 85% of the SaintGobain glasses, 60%
of Asahi glasses, 75% of ModiGuard glasses, 25% of Triveni glasses. The respondent of
63% prefer to SaintGobain glasses, 17% want to sell ModiGuard and 23% prefer to sell all
the brands. The respondents major suppliers are 60 % manufactures, 27% Wholesalers and
10% of Retailers.
The respondents think the prices fixed by the Suppliers are moderate. The respondents
says the receive complaints rarely. Most of respondents conclude the suppliers do not take
corrective actions immediately. The respondents feel they have effective communication
with the suppliers. Respondents feel price fluctuation is a major problem in this market.
The respondents ranked the attributes according to customer preference as first rank to
Brand name, followed by thickness, colours and price. Most respondents say they fix
profit margin of 5-10%. The respondents ranked the existing players as follows
1st rank SaintGobain
2nd rank - ModiGuard
3rd rank Asahi
4th rank Triveni
The existing players adopt level3 distribution channel, which is suppliers to
wholesalers, wholesalers to retailers, retailers to end-users. The existing market players
make their product aware to the public through advertisement and they directly approach
the dealers to do business. Most Suppliers give Offers and gifts and conduct get together
parties and meeting to encourage their customers. Suppliers provide services like
immediate order fulfillment and Transportation facilities where they included the
transportation charges in the bills. Suppliers allow cash discount if payment is made
immediately and if they order for more than two trucks of goods. Suppliers provide Credit
dues for 60 days.30% of the Dealers are unsatisfied with credit dues.
58
The major users of float glasses are Home Users, Builders & Architects, Commercial
Enterprises and Institutions. The customers mostly prefer 12mm; 5mm, 6mm, 4mm,
4.5mm, 3.5mm, 8mm and 10mm thickness float glasses. The customers mostly buy clear,
bronze and Grey colour float glasses.
Price structure for the product (in Rs) for last year based on the thickness (in mm)
In mm
3.39
Brands
SaintGobain
Asahi
15.50
Modiguard
4.4.9
10
12
19
22
17.50
27
21.50
23
31
26.25
38
47
37
55
59
47
66
56
75
220
CHAPTER - VII
SUGGESTION & RECOMMENDATION
This study conveys maintaining customer relationship is very essential to survive in
this market so the company can have effective communication system to attract and
retain customers.
59
The existing market players give cash discount to the customers who pay their bills
immediately and for those who order more than two trucks of products, the company
can give discount to all the consumers.
The credit dues date increment is the major expectation from the consumers, so the
company can concentrate more in credit due dates.
The company can create trust among the consumer by taking immediate corrective
actions for the problems like shortage, breakage and incorrect thickness.
The company can use advertisement as a tool to make aware of their product to the
public.
The company can adapt suitable measures to reduce price fluctuation, which is
considered to the major problem in this market.
CONCLUSION
This study on market potential of float glasses in Chennai region infers the
opportunity for HNGIL to enter into the Float glass market in the year 2009. It gives clear
information to company regarding the existing market players and the consumers buying
60
behavior of float glasses. With the available data the company can take necessary steps to
position its brand in the target market.
CHAPTER VIII
LIMITATIONS
61
62
The project throws light on the opportunities for any Organization who tends to enter
into the Float Glasses market.
This study can be basic for market potential analysis.
This study is done only in Chennai region that can be extended to various other
regions, States and Nations.
This project will be helpful for the students who do project in the related area.
63
ANNEXURE-I
QUESTIONNAIRES
DEALERS NAME:..
ADDRESS:.
Contact Ph:..
Tick the appropriate one.
1. Which area / part do you cover in the Chennai region?
a) North
b) South
c) Westd) East
2. What are the different brands of Glass that are available at your showroom?
Saint Gobain
Asahi [Asahi India Glass Ltd.]
Triveni
Modi Guard
Others
Imported glass, (a) Country Name(b) Brand Name.
All the above
3. Through which media you got most awareness about?
In no
Advertisement
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
Manufactures/
Dealers
Friends
Newspaper
All
and
the
magazines
media
4. Which is / are the brand of Float Glasses you prefer to sell? Why?
No
response
64
a) Saint Gobain
b) Asahi
c) Modi Guard
d) Triveni
e) Others
specify, .
b) 501-1000
c) 1001-1500
d) 1501-2000
6. Which brand of Glass sells maximum & if possible what is the % of sales for last year?
Brand name
Rank
Sales%
Saint Gobain
------
------
Asahi
------
------
Modi Guard
------
------
Triveni
------
------
8. What is the thickness, which most of the customers prefer? Tick the appropriate one.
65
In mm
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
2-12
13-15
19
b) bronze
c) grey
d) blue
e) green
10. Please rank the following attributes of Float Glass, on the basis of importance, which the
customers prefer to buy.
(1 is most aware, 5 is least aware)
Attribute
Rank
a) Brand name
-------
b) Rate
-------
c) Thickness
-------
d) Colour
-------
e) Any other
-------
66
Factors
Offers
Promotional
Gifts
Novelties
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
Others
All the
None
above
Immediate
Transportations
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
order
Scratch
All the
fulfillment
Warrant
above
Very
Good
Good
Average
Yes
No
Poor
No service
67
16. How do you feel about the price fixed by your suppliers?
Factors
Very High
High
Moderate
Low
No response
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
17. Are you satisfied with the present credit due date provided by them?
In nos
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
Yes
No
18. Do you receive complaints from Customer regarding the Glass you supply?
Factors
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
Yes
No
If yes,
i) Which brand(s) of Glass receives more complaints?
a. Saint-Gobain
b. Asahi
c. Triveni
Sometimes
68
d. Modiguard
e. Others
ii) How many complaints do you receive monthly? Tick the appropriate one in all the Brands.
In nos
Rare
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
1- 5
5 -10
More than
10
19. Does your supplier immediately take corrective actions regarding the quality problem and
complaints?
Factors
Yes
Brands
Saint Gobain
Asahi
Modiguard
Triveni
Imported
No
Rare
20. How do you feel about the Communication system between you and your suppliers
regarding the marketing and complaints?
Facto
rs
Brands
Saint
Gobain
Asahi
Modiguard
Triveni
High
Effective
Effective
Not Very
Not at all
Effective
effective
69
Imported
21. Do you give information on product features, price, customer expectation, and marketing
demand to your supplier [at right time]?
Factors
No
Yes
Brands
Saint
No
response
Gobain
Asahi
Modiguard
Triveni
Imported
22. Purchase Price of the Brands
In mm
Brands
0-1.9
2-2.9
3-3.9
4-4.9
10
12
1315
Saint
Gobain
Asahi
Modi Guard
Triveni
Imported
23. Profit margin of customers
Profit margin in %
0-5 %
5-10%
10-15 %
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
15-20%
19
Others
70
ANNEXURE II
BIBILIOGRAPHY
BOOKS:
1. Kothari, C.R., Research Methodology-Methods & Techniques, New Delhi, New Age
International (P) Ltd., Second Edition, 2004.
2. Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons Publishers, Thirty
Fourth Editions, 2005.
3. Philip Kotler, Kevin Lane Keller, Abraham Koshy, Marketing Management, New
Delhi, Twelfth Edition, 2006.
WEBSITES:
1. www.hngil.com
2. www.msn.com/market potential
3. www.wikipedia.com/distribution channel
4. www.tutorial4u.com/consumer behavior
71