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A Study on Sales Promotion

CHAPTER – 1

INTRODUCTION

“Marketing is a social and managerial process by which individuals and

groups obtain what they need and want, through creating, offering and

exchanging products of value with others”.

- Philip Kotler.

Marketing includes all those activities having to do with effecting changes in

the ownership and possession of goods and services. It is that part of

economics which deals with the creation of time, place and possession utilities

and that phase of business activity through which human wants are satisfied,

by the exchange of goods and services for some valuable consideration.

- American Marketing Association.

Marketing is the process of discovering and translating consumer wants into

product and service specifications and then in turn helping to make it possible

for more and more of consumers to enjoy more and more of these products

and services.

Marketing consists of analyzing marketing opportunities, researching and

selecting target markets, designing marketing strategies, planning marketing

programs and organizing, implementing and controlling marketing effort.

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Companies have to identify long and short term marketing opportunities and

research the selected market by measuring and forecasting attractiveness of

the given market. Having selected the market, the companies need to develop

a differentiating and positioning strategy for the target market. The marketing

strategy must be transformed into marketing programs by deciding on

marketing expenditures and the marketing mix. The final step is organizing the

marketing resources and implementing and controlling the marketing plan.

Marketing Mix

Marketing mix is the set of marketing tools that a firm uses to pursue its

marketing objectives in the target market.

McCarthy has popularized a four factor classification of marketing tools known

as the 4P’s of the marketing mix. They are:

• Product

• Price

• Place

• Promotion

Product:
Product stands for the firm’s tangible offer to the market, including the product

quality, design, features, branding and packing. It deals with new product

development, product life cycle, product mix, product lines, branding and

associated services to a product. From the customer’s point of view, it helps in

satisfying the customer’s needs and wants.

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Price:
Price is the monetary value of the product. Price deals with selecting the

pricing objectives, setting the price, discounts, allowances, payment policies

and credit terms. It is very important to the customers as it decides the cost

the customer has to pay to gain the product value.

Place:
This marketing tool stands for the various activities the company undertakes

to make the product accessible and available to the customer. It involves

market size, channel selection and management, storage and physical

distribution with the ultimate purpose of efficiently supplying the company’s

offer to the target market. To the customer, this marketing tool refers to

convenience.

Promotion:

Promotion stands for various activities the company undertakes to

communicate and promote its products to the target market. It involves

communication programs i.e. direct marketing, advertising, sales promotions,

public relations and motivation of sales force. To the customer this tool

provides knowledge and information.

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The Promotion Mix of a company includes the following tools;

Advertising:

It is any paid form of non-personal presentation and promotion of ideas,

goods or services by an identified sponsor.

Direct Marketing:

It refers to the use of mail, telephone and other non-personal contact tools

to communicate with or solicit a response from specific customers and

prospects.

Personal Selling:

Face to face interaction with one or more prospective purchasers for the

purpose of making a sale refers to personal selling.

Public Relations and Publicity:

It refers to the variety of programs designed to promote and or protect a

company’s image or its individual products.

Sales Promotions:

The short-term incentive to encourage trial or purchase of a product or

service refers to sales promotion. Whereas advertising offers a reason to buy;

sales promotion offers an incentive to buy. Since sales promotion directly

push up the sales, increasing number of companies are undertaking sales

promotion activities.

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Sales Promotion

Sales promotion refers to the short-term incentives to encourage sales of a

product or service. It consists of a diverse collection of incentive tools, mostly

short-term, designed to stimulate quicker and greater purchase of products or

services by consumers.

Purpose of Sales Promotion

Sales promotion tools vary in their specific objectives. They may be used

to attract new customers, to reward loyal customers and to increase the

repurchase rates of occasional users. Sales promotion usually targets brand

switchers because non-users and users of other brands do not always notice

a promotion. Sales promotions are thus also seen as a tool for breaking down

loyalty to other products.

Sales promotions also let manufacturers adjust to short term changes in

supply and demand and differences in customer segments. They also let

manufacturers to experiment by varying prices. Sales promotions also lead to

greater consumer awareness of prices.

To use sales promotion, a company must set objectives, select the right tools,

develop the best program and implement it and evaluate the results.

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Objectives of Sales Promotion

The specific objectives set for sales promotions will vary with the type of

the target market. For consumer promotions, objectives include encouraging

purchasing of larger sized units, building trial among non-users and attracting

switchers away from the competitor’s brands. For trade promotions, objectives

may include; including retailers to carry new items and higher level of

inventory, encouraging off-seasonal buying, of-setting competitive promotions,

building brand loyalty of retailers and gaining entry into new retail outlets. The

sales force promotions help in encouraging support of a new product or

model, encouraging more prospecting and stimulating off-seasonal sales. But

most importantly, sales promotion should be focused on consumer

relationship building.

Sales Promotion Tools

Many tools can be used to accomplish sales promotion objectives.

Descriptions of the main promotional tools are as follows;

Consumer Promotion Tools

The main consumer promotion tools are as follows;

• Samples:

They are offers of a trial amount of a product. It consists of inviting

prospective purchasers to try the product without cost or at a lower cost

in the hope that they will buy the product. Samples may be free or

discounted.

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• Coupons:
Coupons are certificates that give buyers a saving when they purchase

a specified product. Coupons can be mailed, placed in advertisements

or included with other products.

• Rebates:
Rebate is also known as cash refund offers. Rebates are offers to

refund part of the purchase price of a product to its customers who

send a proof of purchase to the manufacturer. These are like

coupons except that the price reduction occurs after the purchase

and not at the point of sale.

• Price Packs:
Cents-off deals or price packs offer consumers savings by way of

reducing prices that are marked by the producer directly on the

package.

• Premiums:
These are the goods offered either free or at a low cost as an

incentive to buy a product. Premiums may be in-pack or on-pack

(outside the pack).

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• Prizes:

They are offers of chance to win something such as cash, trips or goods –

by luck or through extra efforts. Contests of talent and sweepstakes or

draws the most popular prize offering promotions.

• Tie-in Promotions:

Tie-in promotions involve two or more brands or companies that team up

on coupons, refunds or contests to increase their pulling powers.

• Cross Promotions:
Cross promotions involve using one brand to advertise non-competing

brand.

• Advertising Specialties:
These are useful articles imprinted with an advertiser’s name, given as

gifts to consumers.

• Patronage Rewards:
They are cash or other awards for the regular use of company’s products

or services. They are values (in cash otherwise) that are proportional to

one’s patronage of a certain vendor or a group of vendors. They aim at

building brand loyalty.

• PoP Promotions:

Point of purchase (PoP) includes displays and demonstrations that take

place at the point of purchase or sale.

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Trade Promotion Tools


More money is spent by companies on trade promotion (58%) than on

consumer promotions (42%). The major trade promotion tools are as follows;

• Discounts:
It is also known as price-off or off-invoice or off-list. Discounts price cut off

the list price on a particular quantity purchased during a stated time.

• Allowances:
They are the amount offered in return for an agreement by the retailer to

feature the manufacturer’s products in some way; displays, advertising or

otherwise.

• Free Goods:
Free goods are the extra merchandise offered to middlemen who buy a

specific amount of a product.

Companies also offer push money and specialty advertising items to the

middlemen.

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Business Promotion Tools

Companies spend huge amount on promotions focused on industrial

consumers. The major business promotion tools are as follows;

• Trade Shows and Conventions.

• Sales Contests.

Clearly, sales promotions play an important role in the total promotion mix. To

use it well, the marketer must define the sales promotion objectives, select the

best tools, design the sales promotion program, pretest and implement the

program and evaluate its results.

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INDUSTRY PROFILE

A Look into the Indian Economy and Furniture

Industry

India is the fourth largest economy in the world and it’s the largest

democracy with second largest GDP among emerging economies. World

Bank’s President James D. Wolfensohn confirmed that India is not the world’s

4th largest economy after USA, China and Japan in PPP (Purchasing Power

Parity). It is also one of the ten fastest growing economies in the world.

With 1 billion populations, India remains on the fastest growing economies

and even in the present worldwide economic slowdown, has maintained GDP

Growth rate of nearly 6%.

India today is 7th most attractive destination for foreign direct investments,

after US, China, Brazil, Mexico and Germany. Besides, India offers higher rate

of returns and profitability than anywhere else in the world.

Out of 1 billion population the upper and middle class constitutes 20% or

200 million people (or 30 to 40 million houses). By rent per capita:

• 2 percent of Indian has a per capita income in excess of 14,500 Euros,

which means 20 million people.

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• 8 percent of Indians have a per capita income of more than 3,900

Euros, which means 80 million people.

• 10 percent of Indians have a per capita income in excess of 3,200

Euros, this is about 100 million people

Overall Economic Scenario

1. The Indian market has been enormous with a large base.

2. Levels of affluence are high- with the number of individuals in the “high:

income demographic group doubling each year, according to NCAER

statistics.

3. The actual “disposable” income at the disposal of the affluent Indian is as

high as three to five times higher as the official statistics, on account of the

very large proportion of unaccounted (“black”) money income.

4. The market has, due to exposure to overseas products and lifestyles,

displayed the willingness and ability to purchase overseas brands and

products at high prices.

5. Customs duties and tariffs have been drastically reduced, in keeping with

government policy to open up the economy – a policy which has stayed

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constant despite changes in government. All the products in the INDEX

product range are now permitted for import into India under OGL or the

Open General License, which implies that no special import license is

required for import.

6. Despite the cut in duties, the rate of customs duties is fairly substantial

which makes the prices of products higher in India. There is a huge

demand for furniture, hardware and fittings, DIY equipment, lighting and

consumer non-durable and appliances.

7. While the Indian middle class still does not have as high a rate of

obsolescence as the US, and tend to use their furniture for several years

before changing or upgrading, the actual size of this segment makes

investment in this market more than worthwhile. The affluent classes

however, do have high rate of obsolescence of interior decoration products

and redecorate constantly.

8. All the above factors put together make manufacturers and retailers of a

wide range of consumer durables. Several overseas companies have

already entered the market and have been extremely well received by the

market.

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Indian Furniture Industry

The furniture sector in India only makes a marginal contribution to the

formation of GDP, representing just a small percent (about 0.5%), which

indicates a huge potential for growth. It is estimated that the furniture industry

comprises 25% of the construction industry and hardware comprises 40% of

total furniture industry, out of this 20% is replacement and 20% is new.

Wood and wooden products, furniture and fixtures carry a weight of

27.01% in the total manufacturing sector.

The furniture industry employs a total of around 30,000 workers. The future

on the furniture sector in India seems positive. Talking about production,

several agreements have been signed between local producers looking for

technology and European and Asian companies trying to reach a potential

opportunity in costs.

From the commercial point of view, India shows good perspective to sell

furniture in the following years. First of all, because its size and secondly due

to the newly acquired taste as a result of exposure to western furniture style.

India is one of the largest consumers of wood in South East Asia. Until a

few years ago the county had considerable quantities of available tropical

woods. The most common species in Indian forests are teak, rosewood,

ebony, laurel, pine, cedar and rubber trees. Supply of these “ready to uses”

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species became scarcer due to unconditional and inappropriate exploitation

and also due to growing concern about the environment.

In India, natural rubber plantations covers 520,000 hectares with another

6,000 hectares replanted almost every year since 1994. Kerala state (South

India) produces 95% of the total supply of rubber wood in India.

India imports wood (logs) especially from Malaysia, Indonesia, Myanmar,

Ivory Cost, Cameroon, Nigeria, Ghana, South Africa and New Zealand and to

some extend from South America.

Most soft and hard woods are imported from Russia, Scandinavia and

other South East Asian counties. MDF is imported from Europe, and there is

also a small local production. Veneered panel are becoming more popular in

India and are imported from the European Union and the USA.

The total size of Indian furniture industry is estimated at Rs. 350 thousand

million but almost 85% of this is unorganized. The remaining 15% is organized

and is believed to be growing at a steady pace of 12% to 15% per annum.

The share of the wooden furniture market is estimated at Rs. 600 million.

Woodworking industry of India is one of the fastest growing in the county’s

economy. Much of this growth has been fuelled by the increasing access to

modern machinery and technology through easier import policies as a result

of India’s entry into the WTO in the year 1990s. There is a noticeable shift in

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the preference towards mechanized mass production and the up gradation of

technology.

The Emerging Trend

Though technology has made inroads in the industry with increasing

stress on the use of machines, overall scenario reveals that almost 80% of the

products supplied in local markets by indigenous manufacturers are labor

intensive and handmade.

Residential or household furniture accounts for over 60% of the overall

domestic and leading manufacturers have begun to realize the necessity of

proper distribution system in this area.

Among other sectors where the demand is spiraling upwards is office

furniture. Growth of IT an IT- enabled sector such as BPO’s has created a

huge demand in metros and Class II cities all over India. The old economy

businesses are also undergoing a makeover and this is reflected through

changing looks of the offices.

Metal and plastic furniture production is gaining wider prominence but

wood still remains to be the most favored medium.

CHAPTER - 2
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REASEARCH DESIGN

Title of the Study

The title of the study is – “A STUDY ON SALES PROMOTION OF HOME

FURNISHINGS AT Ferror Dek Pvt. Ltd”.

Statement of the Problem

The project is mainly undertaken to study the sales promotional

strategies at Ferror Dek Pvt. Ltd. The intention of the study is to find what

attributes needs further improvement in order to make the product more

preferable in the market.

The main aim of the study is to uncover new relationship and identify any

problem that may arise in future. Hence, exploratory research is been

conducted. Exploratory research as its name implies endeavors of exploring

the possibility of doing research on a subject where due to lack of existing

knowledge framing and testing the hypotheses is difficult. In today’s crowed

marketplace where products and services are touting themselves to be the

best, it is vital to stand out in the crowd. The study was undertaken to explore

how a company or brand can ensure a store that stands out and not get lost in

the crowd.

Objectives of the Study


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1. To study the various promotional strategy adopted by Ferror Dek Pvt. Ltd.

2. To find out the footage of Ferror Dek Pvt. Ltd. With respect to other players

in the market.

3. To observe and understand the practice followed by Ferror Dek Pvt. Ltd.

4. To find out the communication linkages and de-linkages in the

organization.

5. To study the activities of each and every department of the organization.

Scope of the Study

This project was undertaken for a specific period in Ferror Dek Pvt. Ltd.,

New BEL Road, RMV II Stage; Bangalore. It is an exercise that is well

planned into the curriculum giving the researcher a valuable opportunity to

understand the working dynamics of the organization and to experiment and

exhibit the recently acquired management and administration skills.

The prospect of the furniture sector in India seems positive. The Indian

furniture industry has awakened to interesting times! The last ten years have

seen changes in the shop windows of furniture retailers. Consumers today no

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longer look for mere practicality in furniture, instead, they look for theme

furnishing, i.e. lifestyle living. Realizing the tremendous market potential and

to make the most of it, the study was undertaken.

Limitations of the Study

Every study is bound by limitations and as such this is no exceptions.

1. “Change is Constant” rule of nature. Hence, the study undertaken may

not hold good for longer duration.

2. The study was conducted under the assumption that the information

given by the respondents is authentic.

3. The analysis and suggestion are given only with respect to marketing

aspects as technical suggestion with respect to the product could not

be given.

4. Confidential matters were not disclosed by the company.

5. There were time constraints.

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Methodology of the Study

A variety of methods of study have been adopted by the researcher to

fulfill the objectives of the study.

 In order to have a better grasp of the study, the researcher chose to

become a keen observer, studying the various aspects of the

organization.

 To have a broader perspective of the study, the researcher

attended the Lifestyle Exhibition at Palace Grounds wherein the

products of Ferror Dek Pvt. Ltd. were displayed.

 In order to fund out the market realities, the researcher visited the

showrooms of certain companies having almost similar product

profile as that of Ferror Dek Pvt. Ltd. To name a few Quezel,

Veneto Cosines, Trident Inter Wood, etc.

 With a view to understand the crunch of the matter and to find out

the ground realities, the researcher formed a schedule specifically

for the set of respondents. The researcher met the respondents

personally, interviewed them and made them to fill the

questionnaire.

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The researcher has done the research in the following manner;

a) Type of the research undertaken is analytical.

b) Technique used is random sampling.

c) Sample size taken is 30.

d) Sources of data used include both primary as well as secondary data.

e) Tool used for the research is questionnaire.

f) Plan of analysis are tables and graphs.

Data Collection Methods

In this study, the foremost data collection instrument used is the

questionnaire method. The questionnaire has been designed with both open

ended and closed ended questions. Apart from this, the research instrument

consists of primary and secondary data collected for the study.

Primary Data:

Here first hand information is obtained by distributing printed questionnaire to

the marketing executives of the company. Data was also obtained from the

observation and interview technique adopted by the researcher. Moreover,

information was disseminated by the departmental heads.

Secondary Data:

Here the information is obtained from the brochure of Ferror Dek, books,

websites, newsletter, journals, magazines, newspapers, etc.

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SOURCES OF DATA

Primary Data Secondary Data

Questionnaire Newsletter
Observation Journals
Interviews Magazines
Visits to other Newspapers
Companies Information Books
Through Departmental heads Websites

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CHAPTER – 3

COMPANY PROFILE

Ferror Dek Pvt. Ltd. promoted by Mr. Binny Kuriakose is one of India’s

leading manufacturers and distributor of modular kitchen and modular work

station. It also undertakes value added services such as executing turnkey

projects as a part of office furnishing.

It has set international standards in terms of quality of work and execution

of projects.

It was a modest beginning for Ferror Dek with a few orders for home

furnishing. Very soon as the scope of the business grew; it started expanding

into diverse activities. It is only a year old but the company has shown

excellent growth since inception and is growing at a rapid pace.

It has a decade of expertise in building turnkey solutions for contemporary

offices and homes. The understanding of modern demands allows optimizing

spaces to derive maximum utility value for every furniture solution. The

solutions are available in a wide variety of boards such as Pre-lam particle

board, MDF board with post form finish, MDF with veneer finish and MDF with

PVC foil membrane, 2mm PVC edge banded shutter etc. The whole range of

solutions are tailor-made to suit the consumers needs blended with

affordability and aesthetics. It is located at Bangalore, India’s melting pot of


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international cultures. They are at a strategic advantage to offer clients

furniture that reflects the emerging global denizen.

It is equipped with a modern production house and employs world class

machinery from Germany and Italy to carve artistic niche for customers. It

uses high quality raw material for all solutions and these are available in a

wide variety of options.

Today’s market is clustered with options to furnish homes and workplace.

But at Ferror Dek, what makes it to truly stand apart is the quality of the

products and services. It is driven by the urge to provide quality that is

distinctive as the customers are. Every single product that is rolled out of the

manufacturing unit is ensured to be flawless and absolutely defect-free. The

adherence to rigorous quality standards is maintained at every level because

quality is continuous and consistent process….

Ferror Dek ensures its customers that the customers will find unique

expressions of their creative niche.

THE CREATIVE NICHE:

• Understanding of modern client mindset allows optimizing spaces to

derive maximum utility value for every interior solution, be it office or

home.

• Application of highly specialized design techniques sets its design apart

from competing companies.

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• A combination of proficient project management control, unyielding

quality guarantee and prompt operation and service support.

• It builds up a technical drawing, which has detailed records for every

project, thus assuring complete transparency in all business dealings.

• Ferror Dek undertakes and completes every project with the same

precision and approach irrespective of the size of the project. Raw

material is checked and sorted based on the target approach to

stringent quality checks at every level.

MANUFACTURING FACILITIES:

The specialized home solution offers complete units for every room. The

array of products includes:

 Modular Kitchens

a) Eco friendly laminated in different colors. Shutters come in

membrane, medium density fiber (MDF) and pre-laminated particle

board.

b) Different kinds of pull out baskets, to name a few D-tray, Swivel

tray, magic corner.

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 Wardrobes

 Wall units

 Crockery units

 Living room furniture

 Designer doors

 Shoe racks

 Loft coverings

 Dressing units

 Kids units.

Managing space at work:

The modular solutions of the office strive to create a comfortable

workplace, allow easy maneuverability of work area and infuse a high degree

of visual appeal. The range of solutions includes:

• Modular Workstations:

Eco friendly laminated modular office systems include desk, storage

cabinet, pedestal, partitions and key board.

 The working desk system – is available in variety of shapes

and sizes.

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 Partition system with fully integrated cable management

partitions (two levels of cable raceways).

 Partition thickness will be available in 75mm thickness.

 Partition is made up of Mild Steel (MS) with required powder

coated color.

 Various heights and lengths of partitions are available.

 Multiple choice of fabric, laminate, metal perforated sheets,

accessories panel, glass, etc.

• Filling storage units

• Pedestals

• Keyboard and CPU trolleys

• Discussion tables

• Conference tables

• Training tables

• Other office furniture.

Managing Turnkey Projects:

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Though home and office furnishing is the niche area, value added services

are provided to give customer solution and thus turnkey projects are

undertaken.

Turnkey projects include:

• Architectural services

• Civil construction

• Project co-ordination

• False-ceiling

• Networking

• Electrical work.

Some of its Clients are:

1. Rockewell Studio, Bangalore

2. Credence Audio Systems, Bangalore

3. Honeywell Ltd., Bangalore

4. Cepha Imagining Pvt. Ltd., Bangalore

5. Black and White Studio, Bangalore

6. Siddharth Engineering Pvt. Ltd., Bangalore

7. Kurl-on-Ltd., Bangalore

8. Manjushree College of Nursing, Bangalore

9. Atlas Copco-Bangalore

10. Rahul Cargo Pvt. Ltd. – Bangalore

11. Daedalus Consulting Pvt. Ltd. – Bangalore.

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ORGANIZATION CHART

MD

Head Accounts Head Head Head Head


And Marketing Designing Marketing Production
Administration (Home (Office
Furnishings) Furnishings)

2 Executives 8 Marketing 8 Designers 2 Marketing


And an Executives Executives
Office boy

Supervisor Supervisor Supervisor Supervisor


(Quality Control) (Production) (Product (Dispatch)
Analysis)

2 Persons 26 Persons 2 Persons 1 Person


(Machine operators
And helpers)

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Employee Strength –

A total of 61 personnel including executives and shop floor workers are

working for the company.

DEPARTMENTS

The researcher encompassed the study of four departments namely

Accounts and Administration, Designing, Production and Marketing. The basis

for departmentalization was functional.

ACCOUNTS AND ADMINISTRATION DEPARTMENT

This department is headed by Mr. Yesudas. Two executives assist him.

This department is broadly concerned with the acquisition and use of funds

by the company. It also analyze, plan and control the company’s financial

affairs. Moreover, the in house administration of the company is also taken

care of. It includes maintenance of showroom and a look into the

requirements and problems of day to day administration. It also keeps a track

of things with regard to civil construction, architectural services, networking,

project co-ordination, electrical work, etc. It is also concerned with bank facility

availed by the employees. Apart from all these, it also takes into account the

installation part at the customer site after the dispatch of the product. In a

nutshell this department deals with the trouble shooting of any problem.

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DESIGNING DEPARTMENT

This department is headed by Mr. Albert. Eight creative designers assist

him. The team of designer tailor makes the products according to the needs of

the customers. Two aspects namely affordability and aesthetics are focused

upon. Major activities undertaken in this department are as follows:

• Setting the normal design –

According to the initial measurement told by the customer, a normal

design is set. Once the normal design is finalized by the customer, a

designer accompanied by marketing personnel visits the construction

site and takes the final measurement. Then according to it a design is

set and the price quotations are made.

• Setting the production design –

When the deal is finalized and after receiving 50% of the amount from

the customer, the designers make the production design. This design

clearly demarcates the technicalities so that it becomes easier for the

production personnel to understand.

• Innovative designs –

The team of designers also trigger out the brain cells to create

innovative designs.

PRODUCTION DEPARTMENT

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This department is headed by Mr. Prashanth. Four supervisors are in

charge of four different activities such as quality control, product analyzing,

production and dispatch.

PRODUCTION HEAD

Supervisor Supervisor Supervisor Supervisor


(Quality Control) (Product (Production) (Dispatch)
Analysis)

2 Persons 2 Persons 26 Persons 1 Person


(Machine
Operators
And helpers)

• Quality Control:

This sub department is mainly concerned with the inspection of raw

materials. The raw materials are supplied mainly by four companies namely

Novapan, Spacewood, Bhutan Board and Nepal Board and Nuwood. For bulk

orders, direct purchase is made from the local companies such as Marino Ply,

Greenlam, Virlam and Kalachandra.

The raw materials obtained are with respected with regard to

requirements and specifications.

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• Product Analyzing:

This sub-department is mainly concerned with targeting and

scheduling. After receiving the production design, it targets as to when the

work needs to be completed and schedules the whole process. Again,

after completion of production process and before dispatch, the product is

thoroughly inspected here.

• Production:

26 persons comprising of machine operators and helpers are

involved in this sub-department. It consists of five operations namely

cutting, molding, edge bending, boring and hot press and post formed.

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I. Operation : Cutting

Machine Used No. of Person Involved


1. BEAMSAW 5 persons :
2 operators
3 helpers

2. PANELSAW

II. Operation : Molding

Machine Used No. of Person Involved


1. SPINDLE MOULDER 4 persons :
1 operator
1 gauge setting
2 for loading and unloading

III. Operation : Edge bending

Machine Used No. of Person Involved


1. THROUGH EDGE 3 persons :
BENDING 1 operator
2 helpers

IV. Operation : Boring

Machine Used No. of Person Involved


1. BORING 3 operators

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V. Operation : Molding

Machine Used No. of Person Involved


1. HOT PRESS 3 operators

2. POST FORMED 3 operators

‫ ٭‬Important Note :

Within 4 hours after cutting the panel, it needs to be covered.

• Dispatch:

After the product is analyzed, it is ready for dispatch. Usually, at least

once carpenter goes to the customer site for installation.

MARKETING DEPARTMENT

This department deals with the springboard of all activities. This

department is split into two divisions – one dealing with home furnishings and

the other dealing with office furnishings.

Home Furnishings:

This department is headed by Mr. Eugene Joseph. Eight marketing

executives assist him. Let us discuss the 4P’s of marketing mix with regard to

the company.

1. Product:

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Modular kitchens, wardrobes, wall units, crockery units, living room

furniture, designer doors, shoe racks, loft coverings, dressing units,

kids units.

What is Modular Kitchens?

The accent today is on ergonomics – a kitchen that’s a comfort to

use and be in. Modular kitchens are planned around the workflow triangle

of refrigerator – cooker-sink: minimizing distances between these makes

cooking a more economical and energy saving process. For a dream

kitchen, one must be able to pinpoint needs, aspirations, likes and dislikes.

Then the manufacturers step in and do the rest. Color preferences,

textures and materials work at the psychological level to affect one’s

perception of a space. Modular kitchen also have accessories like napkin

holders and storage shelves mounted on racks that can be run along the

length of the kitchen wall.

Why use Modular Kitchen?

I. They look good and optimize space.

II. Are fully re-locatable.

III. Are made of durable material.

IV. Selection of different materials for different uses is a difficult decision to

make which easily solved by modular kitchen.

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V. A modular kitchen takes care of things like exhaust hoods/ chimneys

which are otherwise ignored. Replacement/ repairs are easy.

VI. Kitchen work/ equipment/ utensils get proper definition, role and place to

function.

VII. Can be expanded or reduced in size at later stages. Have low

maintenance and high durability.

VIII. Require simple ground preparation and services.

IX. Can be constructed in a time period as short as 6 to 8 weeks from order.

X. Person gets motivated to work in such kitchens.

2. Place:

Located at Bangalore, India’s melting pot of international cultures, the

company is at a strategically advantageous position to offer its clients

furniture that reflects the emerging global denizens.

The corporate office and showrooms is situated at New BEL Road,

RMV II Stage; Bangalore.

3. Price:

The products are customized so the price also doffers accordingly. The

products offered are basically made either from prelim, MDF or

membrane. Each product has a different rate. Prelim is priced at Rs.

650 per sq. ft. The pricing policy adopted is cost plus a percentage of

profit. While quoting the price of a product, height and width is

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considered irrespective of depth. If the depth exceeds the standard

norm of 2 ft. then only it is considered.

4. Promotion:

The Company has a showroom of its own. The showroom is opened for

all the seven days of a week from 9 a.m. to 9 p.m. Paper insertion are

placed in leading newspapers such as Times of India, Business

Standard, Deccan Herald and Prajavani. Telemarketing is also done.

Display stalls are put up near upcoming construction of apartments.

The Company also participates in exhibitions. The recent one is, being

the participant of the Life Style Show on Palace Ground at Mekhri

Circle.

Office Furnishings:

This department is headed by Mr. Rajesh. Two marketing executives assist

him.

The products dealt with are – modular workstations, filing storage units,

pedestals, keyboard and CPU trolleys, conference tables, training tables and

other office furniture. An important facet dealing with the promotion of a

product is corporate presentations. The target group here is the corporate.

Other than that there is no major change with regard to place, price and

promotion.

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HR ASPECTS

Though the company does not have a separate HR Department as it is in

the embryonic stage but the HR aspects are taken care of by Mr. Eugene

Joseph.

• Leave Facility :

All employees are entitled to 12 days of casual leave and 2 days of

sick leave (monthly). In case of a long leave, say a week or more than that,

one needs to inform it before 10- 12 days. In case of emergency, a prior

intimation before 2 days is sufficient. One can also avail the facility of

working on holidays and taking leave on the week days.

• Recruitment :

The Company spells out its requirements to the consultancies about

the suitable candidates. Usually, Mr. Eugene or Mr. Rajesh or Mr. Yesudas

takes the interview of the candidates.

• Training :

A selected candidate is put on training for about 15 days. During

this period, he is not given individual project.

• Job Rotation :

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Job rotation is adopted by the company so that there is development

of multi-faceted skills to fill in vacancies and to cope with increasing work

load. Movement is effected in the same grade

THE WHOLE PROCESS AT A GLANCE

Clients come to the showroom


Initial Measurement is given


Designers design the product


Quotation is made


Negotiation is made


Color combination is chosen by the customer


50% of the amount is given as advance by the customer


Signing of the estimation form
Both the company and client will keep a copy of it


Production drawing is made


Production department

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Delivery and installation

SWOT Analysis

Strength Weakness

• Customized products • A new entrant in the market


• Reasonable price
• Quality
Opportunity Threats

• Growth of furniture industry • A lot many players are existing


seems positive in the market
• Huge potential

Future Plans:

The company has shown excellent growth since inception and is

growing at a rapid pace. All these contribute for the company’s future

expansion plan.

• It is going to open showrooms on Kerala. The 1st one is coming up in

Cochin.

• It is going to open 4 more showrooms in Bangalore.

• Will involve 10 dealers in Bangalore.

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CHAPTER- 4

DATA ANALYSIS AND INTERPRETATION

Table No. 1

Table representing the sex of the marketing


executives

Sex No. of Respondents Percentage


Male 6 20%
Female 24 80%
Total 30 100%

Analysis

 80% of the respondents are male.

 20% of the respondents are female.

Interpretation

 Majority of the marketing executive are male.

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Graph 1

Sex of the Marketing Executives

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Table No. 2

Table representing the pricing of products

Prices No. of Respondents Percentage


High ─ ─
Reasonable 16 54%
Competitive 14 46%
Low ─ ─
Total 30 100%

Analysis

 54% of the respondents are of the opinion that the products are

reasonable.

 46% of the respondents are of the opinion that the prices of the

products are competitive.

 None of the respondents feel that the prices of the products are

either high or low.

Interpretation

 Majority of the respondents opine that the prices of the products

are reasonable.

 The prices of the products are reasonable though they are

competitive.

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Graph 2

Pricing of Products

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Table No. 3

Table representing the major competitors of


Ferror Dek Pvt. Ltd. with regard to
Home furnishing

Major Competitor No. of Respondents Percentage


No dominant player 24 80
Godrej 4 13
Trident Inter Wood 2 7
Total 30 100

Analysis

 Majority of the respondents i.e. 80% opines that there is no

dominant player in the market.

 13% of the respondents are of the opinion that the Godrej is the

major competitor.

 Trident Inter wood is considered as the major competitor by 7% of

the respondents.

Interpretation

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 Though brand names like Godrej and Trident Inter Wood came into

the picture but the fact reveals that there is no dominant player in

the market. So everyone is competing with each other.

Graph 3

Major Competitors

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Table No. 4

Table representing the competitor’s strength

Strength No. of Respondents Percentage


Quality ─ ─
Brand Image 24 80
Pricing ─ ─
Promotional Activities 6 20
Total 30 100

Analysis

 80% of the respondents are of the opinion that the competitor’s

strength is brand image.

 20% of the respondents opine that promotional activities are the

strength of the competitors.

 None of the respondents feel that quality and pricing are the

strength of the competitors.

Interpretation

 Majority of the respondents opines that brand image is the strength

of the competitors.
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Graph 4

The Competitor’s Strength

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Table No. 5

Table representing the quality of the products of


Ferror dek with respect to other competitors

Rating No. of Respondents Percentage


Good 17 57
Very good 13 43
Fair ─ ─
Poor ─ ─
Total 30 100

Analysis

 Majority of the respondents i.e. 57% are of the opinion that the

products are of good quality with respect to other competitors.

 43% of the respondents opine that the products are of very good

quality with respect to the other competitors.

 None of the respondents are of the opinion that the products are of

fair or poor quality with respect to other competitors.

Interpretation

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 Majority of the respondents is of the opinion that the products are of

good quality and is at par with other competitors having brand

names.

Graph 5

Quality of the products of Ferror dek with


respect to other competitors

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Table No. 6

Table representing kind of products sold more


per month

Products No. of Respondents Percentage


Modular kitchen 27 90
Modular kitchen and 3 10
Wardrobe
Total 30 100

Analysis

 90% of the respondents are of the opinion that modular kitchens

are sold more per month.

 10% of the respondents are of the opinion that modular kitchen and

wardrobes are sold more per month.

Interpretation

 Majority of the respondents is of the opinion that modular kitchens

are sold more per month.

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Graph 6

Kinds of products sold more per month

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Table No. 7

Table representing the merits of the products of


Ferror dek that differentiates it from others

Merits No. of Respondents Percentage


Reasonable price 10 33
Quality 7 24
Customized product 10 33
Finishing 3 10
Total 30 100

Analysis

 33% of the respondents are of the opinion that reasonable pricing

and a customized product differentiates the products of Ferror dek

from that of others.

 24% of the respondents are of the opinion that quality is the

differentiating factor.

 10% of the respondents are of the opinion that finishing is the

differentiating factor.

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Interpretation

 Reasonable pricing and customized products differentiates the

products of Feror dek from that of others.

 In fact, all the merits such as reasonable pricing, customized

products, quality and finishing contributes in differentiating the

products from others.

Graph 7

Merits that differentiates the products of Ferror


dek Pvt. Ltd.

12

10 10
10

8
7
Reasonable price
6 Quality
Customized products
4 Finishing
3

0
No. of Respondents

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Table No. 8

Table representing the factors which play a


major role in demand generation

Factors Ratings

5 4 3 2 1
Price of the product 4 3 0 1 1

Awareness about the 3 1 0 4 1


product
Delivery of the product 1 0 5 1 2
ordered
Presentation about the 0 2 0 3 4
product
Design of the product 1 3 4 0 1

5 - Very important, 4 - Important, 3 - Makes little difference,

2 - Not important, 1 – Does not make any difference.

Analysis

 Price of the product gets the maximum of 5 rating.

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 Design of the product and the price of the product get the maximum

of 4 rating.

 Delivery of the product ordered gets the maximum of 3 ratings.

 Awareness about the product gets the maximum of 2 rating.

 Presentation about the product gets the maximum of 1 rating.

Interpretation

 Price of the product plays a major role in the demand generation.

 Design of the product plays an important role in demand

generation.

 Delivery time of the product ordered can make a little difference in

demand generation.

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Graph 8

Factors playing a major role in demand


generation

5
5

4 4 4
4

Price of the product


3 3 3 3 Awarenessabout the product
3
Delivery of the product ordered
Presentation about the product
2 2
2 Design of the product

1 1 1 1 1
1

00 0 0 0 0
0
1 2 3 4 5

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Table No. 9

Table representing the promotion of the


products of Ferror dek Pvt. Ltd.

Promotions No. of Respondents Percentage


Paper insertion 7 24
Telemarketing 10 33
Display stalls ─ ─
Participating in 10 33
exhibition
Direct mail ─ ─
Presentations ─ ─
Showrooms 3 10
Total 30 100

Analysis

 24% of the respondents are of the opinion that paper insertions are

used as promotion of the product.

 33% of the respondents opine that telemarketing is the means of

promotion of the products.

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 33% of the respondents feel that participating in exhibition has

promoted the product.

 10% of the respondents are of the opinion that showrooms are used

as promotion of the product.

Interpretation

 The company adopts a variety of promotional methods such as

paper insertion, telemarketing, display stalls, participating in

exhibition, direct mail, presentations and showrooms.

Graph 9

Methods of promoting the products

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Table No. 10

Table representing the discount if given on


repeat purchase

Discounts Given No. of Respondents Percentage


Yes 27 90
No 3 10
Total 30 100

Analysis

 90% of the respondents are of the opinion that the discount is given

on repeat purchase.

 10% of the respondents are of the opinion that discounts are not

given on repeat purchase.

Interpretation

 Majority of the respondents is of the opinion that discounts are

given on repeat purchase.

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Graph 10

Discounts given on repeat purchase

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Table No. 11

Table representing the percentage of discounts


given on repeat purchase

Percentage of No. of Respondent Percentage


Discount
2 – 5% 20 66
6 – 10% 5 17
11 – 15% ─ ─
16 – 20% ─ ─
None 5 17
Total 30 100

Analysis

 66% of the respondents are of the opinion that 2-5% discount is

given on repeat purchase.

 17% of the respondents opine that 6-10% of discount is given on

repeat purchase.

 17% of the respondents are of the opinion that no discount is given

on repeat purchase.

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Interpretation

 Majority of the respondents are of the opinion that 2-5% discount is

given on repeat purchase.

 The company does not adhere to any stringent norm while giving

discount on repeat purchase as there is difference of opinion

among the respondents.

Graph 11

Percentage of discount given on repeat


purchase

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Table No. 12

Table representing the way of marketing of the


products

Way No. of Respondents Percentage


Direct marketing 30 100
(Showroom)
Retailers ─ ─
Dealers ─ ─
All of the above ─ ─
Total 30 100

Analysis

 100% of the respondents are of the opinion that the marketing of

products are through direct marketing.

Interpretation

 The products are marketed through direct marketing and dealers

and retailers are not involved in the marketing process.

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Graph 12

The way of marketing of the products

35
30
30

25

20 Direct marketing
Retailers
15
Dealers

10 All of the above

5
0 0 0
0
No. of Respondents

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Table No. 13

Table representing the target consumers

Target No. of Respondents Percentage


Upper class 27 90
Middle class 3 10
Lower class ─ ─
Total 30 100%

Analysis

 90% the target customers are from upper class.

 10% of the target customers are from middle class.

Interpretation

 The target consumers are the upper class and the middle class.

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Graph 13

The target consumers

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Table No. 14

Table representing the kind of incentives


received by the employee

Kind of incentives No. of Respondents Percentage


Commission ─ ─
Schemes ─ ─
Free gifts ─ ─
Recognition 17 57
Nothing at present 13 43
Total 30 100

Analysis

 100% of the respondents are of the opinion that no incentives are

given at present.

Interpretation

 No incentives are given to the marketing personnel at present.

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Graph 14

Kind of incentives received by the marketing


personnel

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CHAPTER – 5

SUMMARY OF FINDINGS AND CONCLISION

A Summary of Findings:

The finding can be grouped together into two broad categories such as;

Specific Findings:

 This is pertaining to the objectives of the study.

General Findings:

 This is with regard to the market dynamics and visits made by the

researcher to companies having almost similar products profile.

Specific Findings:

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1. The company adopts a variety of promotional methods such as paper

insertion, telemarketing, display stalls, participating in exhibitions,

direct mail, presentations and showrooms.

2. Though brand names like Godrej and Trident Inter Wood came into

the picture but the fact reveals that there is no dominant player in the

market. So every player is vying with each other to capture a larger pie

in the markets.

3. Transparency is maintained at the levels of the organization.

4. The products are marketed through direct marketing (showroom) and

dealers are not involved in the marketing process so far.

5. The activities carried out by each and every department of the

organization is systematic.

General Findings:

1. Foreign companies can invest up to 100% in most of the manufacturing

industries in India, including furniture.

2. With the vast array of modular option available in market, the consumer

isn’t really strapped for choice.

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3. Italian manufacturers have now entered the Indian markets. Moreover,

furniture made from Asian Teak Wood which is available in the rich rain

forests of Malaysia is flooded in the Indian market. In a nutshell, this

means to say that the competition is very intense.

4. Many branded companies outsource the products because of which the

delivery time of the product ordered is stretched. In this respect, Ferror

Dek has an added advantage.

5. With respect to the foil, Ferror Dek offers a wide range of colors. This

gives it an edge over the others.

6. “Quality never comes cheap”. This is true but at the same time, it is

also true that quality can come at a reasonable price. With regard to

the quality, products of Ferror Dek are at par with the other players

having brand names and at the same time the products are reasonable

priced.

7. With regard to home furnishings, most of the companies have

standardized products but the products of Ferror Dek are customized.

This can be rightly marked as the strength of the company.

8. Majority of the marketing executives are male.

9. The prices of the products are reasonable though they are competitive.

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10. The products are of good quality and are at par with other competitors

having brand names.

11. Modular kitchens are sold more per month. So, this area needs greater

focus.

12. Reasonable pricing, customized products, quality and finishing

contributes in differentiating the products of the organization from that

of the others.

13. Apart from price of the product, design and delivery time of the product

ordered play a crucial role in triggering out demand generation of the

product.

14. Discount is given on repeat purchase.

15. The company does not adhere to stringent norm while giving discount

on repeat purchase.

16. The target consumers are the elite and upper middle class.

17. No incentives are given by the company to its marketing personnel at

present.

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CONCLUSION

“No man has the right to dictate what other men should perceive, create or

produce, but all should be encouraged to reveal themselves, their perceptions

and emotions and builds confidence in their creative spirit!”

This inspiring thought of Ansell Adams is well appreciated by new style

marketing organizations which understand that “boxes and lines” structures

can’t drive value in fast moving environments. No doubt, Ferror Dek Pvt. Ltd.

is one of them because they believe in teamwork. Today, the need of the

Indian consumer evolves beyond “roti, kapada aur makaan”. The game in the

new-breed furniture industry is no longer furnishing. It is about “home

dressing”. To capture opportunities continually, the company must have a

continual flow of ideas. Transforming a pipeline full of ideas into a value –

generating portfolio of products and services is hard. Herein, lays the

importance of co-ordination.

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A home is not just a living space but one’s statement of individuality to the

world. Big or small, it’s all about adding own touch to one’s home to make it

unique – a perfect blend of form and function. With the ever increasing

number of house-hold items, a highly dynamic and always on the move job

profiles, it is crucial for people to employ efficient storage spaces that are

affordable to purchase. The modular kitchen of today is the epitome of

functionality and multi-purpose aspects. With the rise in income and the

infiltration of western luxury goods have created a cultural shift towards

materialism and consumerism. Ferror Dek with its unique strength provides

customer solution that offers the perfect balance of quality and economy.

In today’s crowded market place, where products and services are touting

themselves to be the best, it is vital to stand out in the crowd. From the

various channels of advertising, point of sale displays and how the employees

are relating to the customers. It is important for Ferror Dek Pvt. Ltd. to

establish and reinforce an unmistakable brand and corporate identity in all

channels of fickle minded consumers. Herein, lays the importance of the

Japanese proverb which says – “Thinking without action is a daydream and

action without thinking is a nightmare”.

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CHAPTER – 6

RECOMMENDATIONS AND SUGGESTIONS

This chapter lists the various recommendations and suggestions with

respect to the findings and in congruence with the objectives of the study.

Recommendations:

1. It’s overwhelming to find out that the organization works in a systematic

manner. A blend of co-ordination will definitely enhance the

performance of the company.

2. Quality clubbed with reasonable pricing and quick delivery made the

product of the company stand apart. The marketing campaign should

focus on this aspect and made according to its line.

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3. The strength of the company is its customized products. This very fact

must be highlighted in the marketing campaign.

4. As the products are reasonably priced, the ambit of the target

consumers should be stretched so that middle class consumers also fit

into it.

5. The company must stick to a norm while giving discounts on repeat

purchase. This will certainly help in sales promotion in order to create

repeat purchase.

6. In order to have a rapid market access, the company can include

dealers, if not retailers at the moment.

7. The company should focus the marketing strategies on Modular

kitchens in the home furnishing arena as it is moving in the market

rapidly.

8. The company can introduce some reward schemes so that a person is

benefited after the fulfillment and over achievement of the target. This

is predominantly done to motivate the sales force and enhance their

performance.

9. Other than emphasis on design, craftsmanship and product quality, the

company’s unique strength also lies in its capability as a fully –

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integrated furniture manufacturer. This fact should be highlighted

during the advertisement campaigns.

10. The need of the hour is aggressive marketing.

Suggestions:

1. Everyone is aware of the growth in wealth and change in lifestyle

among Bangalore’s novae riche. So the marketing campaign should be

designed to woo the customers.

2. The company should explore all possible ways in order to aggressively

sell its products. So, the company can register itself in Furniture.co.in

as it is India’s biggest online B2B plan with largest virtual furniture

directory.

3. The construction industry is in boom. In order to tap the potential

market, the Company can advertise in a magazine named ‘Builders

Grid’. This will help in showcasing the products of the magazine. This

can add an extra spice to sales.

4. Feng Shui items are gaining prominence right at the moment. Feng

Shui describes the wood personality as one possessing good decision

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making skills, idealism, imagination, compassion and the ability to

create change. The fact can help in emotional marketing of the product

and also combat competition from Godrej whose modular kitchens are

made of steel.

5. In today’s crowed market place in order to increase the size of the pie,

the Company can adopt innovative promotional strategies. One of them

can be suggested as ‘Dream House’ road shows. It will help in creating

and reinforcing the Company’s identity in the minds of the consumer.

6. In order to be extra ordinary, the Company has to walk the extra mile. A

method named ‘Experimental Marketing’ can be adopted by the

Company wherein the prospective consumers can be invited to visit the

showroom and touch and feel the products.

7. Since the competition is intense, so there should be some value

addition so as to make the Company stand apart in the market. One

such way is to improvise the customer service.

8. Consumer is the king in the market. This fact should be deeply rooted

in the minds of the employees. The Company can adopt some ways to

listen to the customer’s feedback which should be noted in writing so

that it will help in continual improvement and make the company to be

in the right track always. Moreover, a sense of involvement will be felt

by the customers whish can give the company a cutting edge.

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APPENDICES AND ANNEXURES

A copy of the questionnaire, some eye sizzlers showcasing the products of

the company and paper insertion are enclosed herewith.

QUESTIONNAIRE

1) Name:

2) Address:

3) Designation:

4) Sex:

a) Male

b) Female

5) Type of products dealing with

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a) Home furnishing

b) Office furnishing

6) How are you priced?

a) High

b) Reasonable

c) Competitive

d) Low

7) Who is your major competitor?

8) What is your competitor’s strength? / What makes you ahead of

him?

a) Quality

b) Brand image

c) Pricing

d) Promotional activities

9) With respect to other competitors how do you rate yourself in terms

of quality?

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a) Good

b) Very good

c) Fair

d) Poor

10)Which products are sold more per week/per month?

11) What specific merits do you think will differentiate your products

from others?

a) Reasonable price

b) Quality

c) Customized products

d) Finishing

12)How important do you feel that the following factors play a major

role in demand generation on a scale of 1-5?

a) Price of the product

b) Awareness about the product

c) Delivery time of the product ordered

d) Presentation of the product

e) Design of the product

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5- Very important

4- Important

3- Makes little differences

2- Not important

1- Does not make any difference

13)How do you promote your products?

a) Paper insertion

b) Telemarketing

c) Display stalls

d) Participating in Exhibition

e) Direct mail

f) Presentations

g) Showrooms

h) All of the above

14) A) Do you give any discount on repeat purchase?

a) Yes

b) No

B) If yes how much discount do you give?

a) 2-5%

b) 6-10%

c) 11-15%

d) 16-20%

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e) None

15)How are you marketing your products?

a) Direct marketing

b) Retailers

c) Dealers

d) All the above

16)Who are your target consumers?

a) Elite class and upper middle class

b) Middle class

c) Lower middle class

d) Corporate

17)What kind of incentives are you getting?

a) Commission

b) Schemes

c) Free gifts

d) Recognition

e) Nothing at present

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THANK YOU!

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