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A SUMMER TRAINING PROJECT REPORT ON CONSUMER AND DEALER RESPONSES TOWARDS KAJARIA TILES

Submitted to

U.P. Technical University, Lucknow


IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF

MASTER IN BUSINESS ADMINISTRATION

2005-2007
Submitted by

CHANDRADEO PANDEY MBA-3RD Semester

INSTITUTE OF PROFESSIONAL EXCELLANCE & MANAGEMENT GHAZIABAD FROM U.P.TECHNICAL UNIVERSITY, LUCKNOW.

PREFACE
Today all the decision of a company relies on the market. Market is the place where actual transaction between the consumer and company take place. Consumers decides what a company should produce in turn company gets various benefits like good consumer relationship, long time stay in the market, monetary benefits etc. Obtaining market information is not an easy job, one have to make research for it called MARKET RESEARCH. Market research is very important for a manager, as through it he can know his customer from very near. He can give them what they require. Market Research is a well-planed step to move towards the customers. Manager has to keep several factors in mind like sample size, sample design, type of research (exploratory, descriptive, or a mix of both), choice of questionnaire is also important (open/close ended). One should not forget the objective even while preparing for the research. He should keep objective in mind while framing sample size or questionnaire, a slight diversion from the objective may create blunders. So one should have objective in mind at each and every step. During this research we have tried to know the behaviour of the consumers towards the Kajaria tile.

ACKNOWLEDGEMENT
Concentration, dedication, hard work and application are the essential part of our vocational summer training but not the factor to achieve the goal. These must be supplement by guidance, assistance and cooperation of the people to make it success. Many people have given their precious ideas and valuable time to unable me to complete this project report. I am deeply indebted to all of them for their excellent ideas assistance. After completing this project at Kajaria Ceramics Ltd., It is a great pleasure for me to that all those who have helped me during the course of completing this project. I highly express my sincere thanks to 1) Mr. C.V.S. RANA (General Manager, Works) 2) Mr. B.M. PRASAD (Asst. General Manager, Production) 3) Mr. RAJESH SHARMA (Human Resource Manager) I would like to thank Mr. S.K.VERMA who helped me in making this project. I also like to express my hearty gratitude to MS.CHITRA Mam (faculty of I.P.E.M.) for her valuable guidance at each and every step. I take this opportunity to thank all those who have directly or indirectly helped me during the course of this task. Last but not least I would like to thank my classmates and my parents for their willing help and support at all times.

CHANDRADEO PANDEY

Declaration
I ,Chandradeo Pandey from Institute Of Professional Management Excellence &

, Ghaziabad hereby declare that this project report on

Kajaria Ceramics Ltd. Has been prepared based upon the survey done in there respective area like Ghaziabad ,Noida and Delhi .All the data and the information mentioned in this project have been collected through primary and secondary data. It is based upon the responses of the interviewee and keeping the concept of business objective of the company in mind, I have made the recommendations. The recommendations were made ,keeping all the cost and expenses and technical barriers as constant.

Chandradeo Pandey

TABLE OF CONTENT

S. No. 1 A B C D E F 2 3 4 5 6 7 8 9 10

Titles PART-I Introduction about product. Organisation Structure Mission Statement Performance of company Product Problems of organization PART-II Objective Research Methodology SWOT Analysis Findings Conclusion Suggestions Limitation Annexure Bibliography

PART-I

ABOUTCOMPANY

Kajaria Ceramics ltd. was incorporated in 1985 and was promoted by Kajaria Exports ltd. And its associates. The plant manufacturing Ceramic Glazed floor and wall was set up for tiles in technical

collaboration with M/s Todagres of Spain and imported major equipments from Sacmi Imola and Omis due of Italy.

The Company started commercial production in Aug.1988 at an initial installed capacity of 12,000 metric tones per annum [TPA]. In Aug.1990 it commissioned an additional 14,000 TPA thereby raising installed capacity to 26,000 TPA. The second phase of expansion was commissioned in

Dec.1991, enhancing the installed capacity from 26,000 TPA to 40,000 TPA. The third phase of expansion in Aug.1994 enhanced the installed capacity to 60,000 TPA and the fourth phase of expansion increase the installed capacity to 80,000 TPA at Sikandrabad plant in 1996.

The capacity of this plant was further raised to 90,000 TPA in 1999.the company has established its second plant at Bhiwadi, Rajasthan with a capacity of 70,000 TPA in the year 1998.

The company manufacturers printed and special affect Tiles and have a wide product range in terms of design, sizes and shades. It has consistently pioneered and brought in the latest international quality product in India. Exclusive and valid showroom in- Kajaria plus, Kajaria tiles Shoppe , Kajaria Tile studio, Kajaria tile galleria in all the important cities of the country offer a panoramic view of the widest range, choices of the tiles, mix and match to suit individual company has to credit a and family needs. The

strong market presence and dealer network. The

market base was systematically expanded by appointing many dealers all over the country. The sales turnover has progressively increased from Rs.6.83 cr. In 1998-89 to Rs. 227cr. Approx in 2001-02.

The company entered the export market in 1989-90 and on a global front Kajaria has made significance advances and established its first showroom in Melbourne, Australia. Exports are being identified as a major thrust area.

The company export markets are the Gulf countries, SARRC countries, Canada, European countries, etc.

KCL is the first Tile Company having received ISO 9002 Certification, which is symbolic for maintaining the highest standard of quality in keeping with the stringent international specification, it also takes pleasure in announcing environment friendly ISO 14001 accredit ion. It is the first Tile manufacturer to receive OHSAS 18991 in India to receive OHSAS 18001 in fulfilling international standards in occupational health and safety management system specification.

Kajaria has yet again won the CAPEXIL Export Award for the highest exports in 2000-01. This is the fourth consecutive year that Kajaria has been awarded this national recognition.

It has been the recipient of the Global Growth Company Award by the world economic forum in December 1997.

Today Kajaria is the largest selling brand in India and the largest exported brand from the country. Despite the fact that the Kajaria

Ceramics ltd. Has the largest manufacturing facility in the country.

The company has been consistently producing above 100% of its rated capacity. KPL is promoted by Mr. Chetan Kajaria, a gold medalist in Engineering from Pune University and MBA from Boston College, USA. Another fact which has helped the company to control its cost is the supply of piped natural gas, which ended the company dependence on LPG\LDO in addition to reducing cost.

The mgmt. Of Kajaria Ceramics ltd, since its inspection has always remained conscious about the environmental aspects of the business and to materialize its objective the mgmt. has incorporated the latest technology available in the world. Several other initiatives toward improving the environmental performance have been taken. One of this is to establish

unit as a zero liquid effluent plant. The unit is the first tile plant in India 100% and among a very few ceramic Tile plant in the world to recycle water which comes out as an effluent from the various point

during the manufacturing process.

Another unique initiative is adoption

of vermiculture Bio-technology for organic waste. As its most bold step, Kajaria introduced Kajaria World, the biggest and most elegant imported tile showroom in the country. Opened in Gurgaon over an area of 14,000 Sq. Ft., Kajaria World is the last word in premium and high quality concepts for home design.

The entire area at Kajaria World is divided into a vitrified tile section, a ceramic floor tile section, bathroom concepts and mock up flats where consumers can browse through and view thousands of options and their applications. The company's in-house team of designers has done a remarkable job of creating an elegant and exclusive ambience. On display consumers will fine, modern bathroom concepts with over 100 alluring creative patterns and ideas. Mock-up flats where they can walk through and find out how Kajaria tiles and ideas suit kitchens, living rooms, dining halls, study rooms and bedrooms. Imported porcelain tiles in various shades and marble finish selected from leading tile

manufacturers of the world, ranging from 60x60 cm to large format 1x1 Mtr. Tiles. Kajaria World also offers customers advise from trained experts in the fields of architecture and interior design to help them make the right choice for their dream home.

Kajaria ceramics is the Largest Exporter of India


INTERNATIONAL MARKETS: -

Kajaria ceramics exports to more than 20 countries round the Globe. The International Marketing operations are organized by a specialist export division that manages a network of international agents and distributors supported by our exclusive office/showroom in Australia. Now in international markets we enjoy a similar brand Recall as that of Domestic. Our Brand kajariatile has today become synonym of quality, service and innovation not only in the domestic market but even in the international market. With increased capacity, increase in turnover and a growing domestic and exports market, Kajaria Ceramics is set to emerge as a leader in the international ceramic tiles market.

BOARD OF DIRECTORS

1. Shri A.K.Kajaria (Chairman & M.D)

2. Shri J.C.Mediratta

3. Shri R.K.Kajaria

4. Shri R.K.Bhargava

5. Shri R.R.Bagri

6. Shri Sonjoy Sethee (Nominee-IFCI)

7. Shri D.D.Rishi (Executive Director)

8. Shri Chetan Kajaria (Whole Time Director)

KAJARIA MILESTONES

A MEMORABLE DECADE

1988

Production technology.

of

ceramic

tiles

begins

with

single

firing

1990

Expansion of capacity from 12,000 MT to 26,000 MT.

1991

Further increase in capacity to 40,000 MT.

1992

Kajaria wins the CAPEXIL Award for the highest exports.

1994

Monoporosa Wall Tiles introduced for the first time.

1995

Capacity expanded to 80,000 MT.

1996

Rs. 1 Billion turnover crossed.

1997

World Economic Forum honors Kajaria as one of the top performing Global Growth Companies from India.

Kajaria captures 16% market share and reaches the No. 2 position in the ceramics tiles industry.

1998

Capacity expanded to 150,000 MT equivalents to 33,000 Sq.m Per day, at par with the international players.

1999

Rs. 2 Billion turnover crossed.

2000.1

Fourth time winner of CAPEXIL Export Award.

2002.3 20042005-

Starts advertisement in T.V. Kajaria has registered turnover of Rs.2390 million. Company has register red turnover of Rs.2698 million.

MISSION STATEMENT

To remain forefront in the Ceramic Tile Industry.

To remain the highest brand recall in the mind of discerning customers for quality, designs and as a provider of new concepts and ideas.

To reach into everyones dream home.

To follow the principles of transparency, high business ethics, global quality standards and in creating new intellectual assets.

Translating vision into reality

Kajaria Ceramics limited, the leading manufacturer and largest exporter of latest technology single fired ceramic tiles in the country and is touching new heights. Within 14 years of operations, it has moved very close to its vision of becoming a leader worldwide.Kajaria Ceramics has grown at a breathtaking pace during the last decade in turnover, profits and foreign exchange earnings. With the new plant at Bhiwadi, Rajasthan becoming fully operational, it has almost doubled its capacity from 16200 Sq Mtr. Per day to 33000 Sq Mtr. Per day. Both the plants are operating at 100 % + capacity.

ISO-14001 And

OHSAS-18001

The Company is the largest exporter of ceramic tiles in the country and has won 7 export awards since inception. The has also been selected as one of the top performing Global Growth Company from India by World Economic Forum in 1997. Kajaria is the first ceramic tile Company in India and may be 5th in the world accredited with ISO 9002 certification for its quality system and recipient of ISO 14001 for Environment Management System. The company has also been given OHSAS 18001 Certificate by M/s. TUV Suddeutschland, Germany.

The Certificate has been given for the commitment for the Company for fulfilling International standards in Occupational Health and Safety Management System Specification. Kajaria Ceramics is the first ceramic tile company in the world to get this certification . We at Kajaria always believe that safe working methods lead to better business performance, motivated workforce and higher productivity. With ongoing training, R&D and human resource development, the company continuously strives to bring International quality consistently, surpassing itself and always reaching a peak higher.

Kajaria Ceramics has consistently pioneered and brought in the latest in international quality products in India. The company launched the high hardness and abrasion resistant Group-5 floor tiles for heavy traffic are as for the first time in India. It was international quality with single fired Monoporosa technology. With an attractive range of borders, pencils and moldings, Kajaria Ceramics manufactures the widest range of floor and wall ceramic tiles to provide the complete wall and floor solutions.

PERFORMANCE OF KAJARIA CERAMICS LTD

BUOYED by the improved business prospects and growth in earnings, the stock prices of companies in the ceramic tile industry have moved up the past few months. Industry

heavy weight Kajaria Ceramics is no exception. Taking into account the company's strong position's in the industry, the commissioning of expanded capacity and growth prospects, long-term investors may include the stock in their portfolio. Kajaria Ceramics is one of the bigger producers and exporters of ceramic tiles.

After passing though a rough patch in the late-1990s, the company and other ceramic tile producers benefited from the robust growth in demand of recent years.

The softening interest rate regime and the pick-up in the real-estate and construction sectors played a key role in bolstering demand for ceramic tiles. Apart from the retail segment, consisting primarily of residential housing, the demand for tiles picked up from the institutional segment as well.

The increased activity in the retailing business along with the economic growth propelled demand from the institutional segment. The positive impact of these factors is evident in the company's performance. For the year ended March 2005, revenues rose 12 per cent to Rs 280 crore while the post-tax earnings more than doubled to Rs 25.5 crore from Rs 11.8 crore.

Along with the factors listed above, the lowering of excise duty on ceramic tiles also helped the company's cause. This has effectively narrowed the price differential between ceramic tiles and the traditionally popular mosaic tiles. To to cater to the growing demand, the company has expanded its production capacity to 18-million square metres from 14-million square metres. This would place the company in the position to take advantage of the growing demand for ceramic tiles Kajaria is also expanding its geographic footprint and its retail presence by opening exclusive outlets across the country. The trend of healthy growth in earnings is evident in this fiscal as well. For the quarter ended June 2005 revenues increased by 8 per cent to Rs 61.6 crore and post-tax earnings by 26 per cent to Rs 5 crore. Going forward, the company appears wellpositioned to post a healthy growth in earnings. The continued boom in the construction sector, housing industry in particular, would spur demand for ceramic tiles. With expanded capacity in place, the company would also have the option of enhance its export earnings if there is surplus capacity. Considering that the ceramic tile penetration is still low in India, there is significant room for growth for the industry.

Kajaria and other tile majors such as Bell, Murudeshwar, SPL and Orient may continue to see robust growth in demand. Long-term investors may consider exposure at prevailing levels of Rs 230.

The year 2001-02 concluded with companys overall turnover at Rs.2278 million and profit after tax Rs.26 million. Despite a tough year for the industry in general, the company has operated at 109% capacity during the year.

GROWING GLOBAL PRESENCE

After successfully establishing its first showroom in Melbourne, Australia through its subsidiary Kajaria (Aus) Pty. Ltd. In February 2001, Kajaria has spread its wings wider and has made significant advances in global retailing. While the impressive Melbourne showroom stands testimony to the strengths of Kajaria in global retailing, its matter of great pride and accomplishment to Kajaria that today its product are sold in Australia through over 50 dealers. This shows the heartening response and acceptance the products have received in this sophisticated market, where Kajaria is pitched against other world-class brands and products. Global retailing opens up new avenues for growth. Having established a growing presence in a short span, Kajaria is now playing more exciting

showrooms in other cities of Australia. The objective is to emerge as a strong force in global retailing and a strong brand in the international arena.

EXPORTS MARKET:EXPORT PERFORMANCE

700 600 500 400 300 200 100 67.6 0 113 163 167 429

620 458

423 Series1

94 -9 5 95 -9 6 96 -9 7 97 -9 8 98 -9 9 99 20 00 00 20 01 01 -0 2

The export were lower this year due to increase in domestic demand for companys demand . Kajaria Tile Brand is established not only in the domestic market but also even in the international market, with exports to quality conscious markets in Europe, Canada, Arabian Gulf and Saarc countries. With increased capacity, increase in turnover and an overgrowing domestic and exports market, Kajaria Ceramics is to set to emerge as a leader in international Ceramics Tiles Market.

PRODUCT

People dont buy products, they buy what products do for them

- JOHN WILHMURST. KCLS MAIN PRODUCTS:-

1. Ceramic Glazed Floor 2. Ceramic Wall Tiles They differ in strength and resistance.

THREE MAIN KIND OF TILES:-

1. Standard Tiles Elite Class 2. Commercial Tiles Upper Middle Class 3. Utility Tiles Middle and Lower Middle Class

THESE TILES COME UNDER RANGES OF:-

1. Plan Colour Range E.g. Blanco Nieve, Champagne, Silver Grey, etc.

2. Classic E.g. Naveda Blanco, Kajaria Green etc.

3. Special Plain E.g. Burgundy, Oxford Blue, Terracotta etc.

4. Contractor E.g. Leonardo Beige, Limoni Grey, Luxor and Luna etc.

5. Printed

E.g. Alicante Beige, Arena Grey, Antique Blanco, etc.

6. Special Printed E.g. Chimera Beige, Corona Grey, Galleria Brown, etc.

7. Premium Range E.g. Auto Grey, Alfar Blue, Archiva, Argilla, Atrium, etc.

These tiles come in various dimensions such as 200mmx200mm, 300mmx300mm, 400mmx400mm. Thickness 7mm, 7.80mm, 9mm, etc. Through trend setting product innovation and design, Kajaria keeps ahead of the times, fulfilling the changing lifestyle needs of the consumer. Kajaria has introduced captivating range of tiles in terms of design, sizes and shades. Today consumers and the trade have come to except ultra modern and futuristic concepts in design among the Kajaria collection.

FLOOR TILES

EMBED Word.Picture.8

Alicante Beige [300x300 mm]

Alicante Blanco [300x300 mm]

EMBED Word.Picture.8

Alicante Blue [300x300 mm]

Alicante Grey [300x300 mm

Alicante Pink [300x300 mm]

Alicante Verde [300x300 mm]

Amphora Beige [300x300 mm]

Amphora Brown [300x300 mm]

WALL TILES

Angola Beige [300x200 mm]

Angola Crema [300x200 mm]

Angola Grey [300x200 mm]

Ankara Beige [300x200 mm]

Ankara Blanco [300x200 mm]

Ankara Crema [300x200 mm]

Ankara Grey [300x200 mm]

Arabia Beige [300x200 mm]

COMPETITORS

These continuously threaten rather than contribute to the survival of the business. They watch each other very closely and follow one another prices up and down, they try to capture either others market share and customer base to increase their own profit margins. The more competitors there are and the close their product offering, the more sensitively sales respond to a relative change in price. Non-price competition using branding and other product

COMPETITORS OF KCL

1. Johnson ( Oldest and biggest competitor ) 2. Nitco Tiles in Mumbai 3. Somany 4. Orient 5. Chinese Tiles Manufacturers (Due to cheap prices)

To face the challenge posed by the competitors we have to take many measures such as regularly improve the product quality, develop and use new technology to produce tiles according to the new trends, appreciated by the people and to take our prices comparable to our competitors prices.

PART-II

OBJECTIVES

OBJECTIVES

1. To give top priority to quality.

2. Whatever we produce, product the best.

3. To make profit, through maximum production at minimum cost.

4. To train ourselves for excellence.

5. Maintain customer satisfaction as customer is the centre of our universe.

6. To achieve business excellence by enhancing long term shareholders value and interest of all its shareholders.

7. Efficient conduct of the business of the company through commitment to transparency, business ethics and discharging its corporate responsibilities, are hallmark of the best

practices followed by the company.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Marketing research is a systematic design, collection, analysis and reporting of the data and findings relevant to specific marketing situation facing the company.

The marketing research is done in the following ways:

1. Defining the problem and research objective.

2. Developing the research plans.

This is to develop the most effective plan for gathering the needed information. In this project the plan was so decided that the research objective are fulfilled.

DATA SOURCES

The research plan calls for gathering data. PRIMARY

This consists of original information gathered for the specific purpose. In this case it was collected from the user and dealers. This was done by survey research, which is generally conducted to learn about peoples knowledge, beliefs, preferences, satisfaction etc. For primary data collection. I used questionnaire method, where my sample size is 100 people. Sample technique-probability/ random sampling. Type of research-non-experimental research.

SECONDARY

This consists of information that already exists somewhere. Here the information was collected from magazine, newspaper, brochures, internet and journals etc.

DATA COLLECTION
The various parameter deciding and subsequently influencing purchase of tiles are identified and the questionnaire is prepared on the basis of the objective. Different categories are selected for the study. The primary information is collected using the survey technique in which a structured questionnaire is devised to measure consumer

preferences for various factor effecting purchase decision, their awareness for brand, various function of cell phone, physical features, general features, special and accessories. I have contacted people for collecting the data. I explained them for my study and asked them to fill the questionnaire. Some of the people have given their full co-operation while some of them have ignored. At last I am able to collect the questionnaires filled by the people using tiles. The questionnaire measured the responses using parameters like Brand Awareness Brand Loyalty Brand Image Usable location for tile.

Feature Awareness

SWOT ANALYSIS
STRENGTH:i. Kajaria ceramics has excellent brand awareness and a high quality image. ii. KCL focus on quality. iii. The company is highly professional, devoted and result oriented in marketing its product. iv. Advertising campaign of the company is creative in the market. v. Company believes in ensuring high quality standards of its product.

WEAKNESS:i. Lack of transparency with dealers.

ii. Company focus on niche segments.

OPPORTUNITIES:i. Selection of effective and result oriented distributions for wide spread distribution. ii. Positive reaction of the customer because of the existing product.

THREATS:i. Product of the competitors is available at low price as compared to KCL. ii. Dealer can sometimes be bias. iii. Nothing unique about strategy

AWARNESS RURAL

0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

83% 0% 68% 10% 20% 30% 40% 50% 17% 60% 70% 80% Unaware Aware Interested to know 90%

In this case we segment people in three categories one who are unaware, second who are aware, and third who are interested to know about the tiles of Kajaria Ceramics Limited.

In the rural areas there are 83% of people who are unaware about the tiles of Kajaria Ceramics Limited. In this category some of them totally unaware about the tiles but not of KCL.

In the rural areas there are 17% of people who are aware about the tiles of Kajaria Ceramics Limited. Either through retailers or by friends from that places where Kajaria tiles are used.

And in the other segment, which covers those people who are interested to know about the tiles, are covered 68% people they are always ready to know more about the tiles. This means for not only about Kajaria Tiles other may also.

AWARENESS URBAN

120% 100% 80% 60% 40% 20% 1% 0% unaware aware interested to know
I

99%

0% 20% 40% 60% 80% 100% 12% 120%

In this case we segment people in there categories on who Are unaware, second are aware and third who Areinterested to know about the tiles of Kajaria Ceramics limited.

In the urban areas there are 1% of people who are unaware about the tiles of Kajaria Ceramics Limited. But they know that what is tile, where it should be used etc In the urban areas there are 99% of people who are aware about the tiles of Kajaria Ceramics Limited. The matter is not that they dont know about all categories of the tiles of Kajaria Ceramics Limited. In the other segment which covers those who are interested to know about the tiles are covered 12% people they are interested to know more about the tiles either to increase his knowledge related to tiles or only for time pass and rest of them says that they do not have time to spend on them. If they require the tiles then at that time they will

know it.

BRAND LOYALTY

RURAL

None 1% Some 3% None Some Strong Strong 96%

In this case of brand loyalty we segment rural areas into none means those peoples who

Are not brand loyal they may use it, that brand which are suitable for them either in terms of cost of the tiles or design of the tiles or by the motivation level of the dealers or retailers. So, in rural areas 96% of the peoples are not brand loyal. In second segment we concentrate on those people who are some brand loyal ( 3% people ). They either heard or by his friends, college and magazines or through advertisement that this brand has conformed they wants only on that places where the guest visit it most. The reasons behind this to show that have something extra. They are not much aware of the advantage of the tiles.

In terms of heavy users for the rural area very less are heavy users and rest of them believe that this is the wastage of money to invest in the tiles. You should invest in those sector from which their may be changes to take return.

USAGE RATE

URBAN

And the last is heavy user who uses tiles in a large quantity like in hotels, apartments and hospitals etc. They are of 14%.So, by this way we can say that there is a big difference in terms of tiles users in between rural and urban areas people.

USABLE LOCATION

RURAL

70% 60% 50% 40% 30% 20% 10% 2% 0%


tc he n

60%

0% 10% 20%

30%

30% 40% 50% 2% 60%

4%

8%

ba th ro om

ga l le ry ro om s ve ra nd a ot he rs

ki

We segment the usable location in several parts where we can use the tiles these are Kitchen, Bathrooms, Gallery, Veranda and other places. In the case of rural most of the people do not use tiles and those who use it, they

Use it only in some parts of their Home.Now, we show our data, according to our survey each part compare to whole rural people, only 2% rural people use tiles in kitchen, only 4% rural people use tiles in bathroom, only 8% rural people uses in gallery, 60% people use tiles in rooms, 30% people use tiles in veranda and 2% people use tiles in other places. There is that we use tiles only at that place where the guest visits more. The purpose of showing tiles is more in comparison to its advantage

USABLE LOCATION

URBAN

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 77%

91% 0% 58% 48% 20% 40% 60% 80% 100% 4% kitchen bathroom gallery rooms veranda others

66%

We segment the usable location in several parts, where we can use the tiles these are kitchen, bathroom, gallery, veranda and other places. In the case of urban area most of the people uses tiles but the location is totally different in comparison to the rural area.

We can say this according to our survey .i.e. 77% people use tiles in kitchen either on platform or on the wall or on both places. In Bathroom 91% people use wall tiles where only 63% people use floor tiles, their perception is that floor tiles may cause skit problems, 66% people use tiles in gallery, 58% people use tiles in rooms, 48% people use tiles in veranda and only 4% people use tiles at other places.

The urban people mostly use stones (Marble, Kota, Granite) in the rooms, veranda and platform of kitchen. So, the percentage of tiles used in rooms, veranda is less in comparison to other places.

USING CRITERIA

RURAL

Using criteria

convenience 83% premium economic value of the money

2% 7% 8%

For the purpose of using tiles we segment rural areas into four different parts, which plays an important role before buying the tiles. These different parts are convenience; here convenience indicates the availability of tiles of rural area people. So, 7% of rural area people gave preference to those tiles, which are easily available, not the specific brand.

Now, next is the premium quality so, only 2% of rural area people give preference to this type of tile in which

Mostly are those who gave preference for use of these tiles as a base of religious drawing or photographs.

Next, is the economic condition it covers, 83% of rural area people buy tiles according to his economic condition? It never indicates that other segment avoid the economic condition they never gave preference to other segments.

And last segment is value for money, which covers only those people who always wants that tpurchased must give at least, the value for their money they are of 8%.

USING CRITERIA

URBAN

Using criteria
value of the money, 15%

convenienc e, 14% premium, 8%

convenience premium economic

economic, 63%

value of the money

For the purpose of using tiles we segment urban area into four different parts,

Which plays an important role before buying the tiles. These different are convenience, here convenience indicates the availability of tiles for urban area people. So, 14% of urban people give preference to those tiles, which are easily available, or in a specific pack or other conditions not only for specific brands.

Now, next is the premium quality so, only 8% of urban area people give preference to these types of tiles, in which mostly are those who give preference for use of these tiles in a room or on pillars etc.

Next, is the economic condition it covers, 63% of urban area people buy tiles according to his economic condition? It means that people under this segment buy tiles on the basis of their economic condition. They buy only those brands or designs, which suits their pocket.

And last segment is value for money, which covers only those people who always wants that the product they have purchased must give at least, the value for their money and they are 15%.

ABOUT CUSTOMER

INVOLVEMENT

RURAL
As, we know that in rural area most of the people use to sit together at least once in a day and according to our survey we find they are interested to know about the tiles.

So, there is a possibility to motivate the potential customer by satisfying his or her quarries.

LIKE:1. As we know that in some of the stores of grains. The grains are affected by moisture. So, with the use of tiles we may avoid the moisture problem and save money.

2. With the use of the tiles we may avoid small insects, ants, housefly etc. That comes either due to the unfinished floor, moisture or holes in them.

INVOLVEMENT URBAN
In urban area there is no much involvement of the people in the comparison to the rural area people. But the urban people are closer to the advertisement. So, by advertisement, magazines, cable TV or through print media we can motivate potential customer.

Because if you want to make people aware about the Kajaria Tiles personally then you have faced many problems like potential customer may say that he dont have time etc.

PERCEPTION RURAL
In rural area most of the people are not interested to spend money in tiles. The important factor is economic condition and other reasons, like one may skid, which cause problem and some of them may also want to follow his or her traditional system. They believe that due to the traditional system they can maintain the holiness of their house.

ABOUT CUSTOMER

PERCEPTION URBAN
In urban area most of the people are usually educated and rational in thinking so they dont nurture any myths. Moreover their lifestyle demands more attention towards their houses, offices, etc. Apart from satisfying their basic necessities of life. These people are mostly interested to invest in the stones like marble, granite and tiles in rooms and other places where they can afford them. In urban area some of the people believe that floor tiles in bathrooms may cause problem thats why they are not interested to put floor tiles in bathroom.

ABOUT DEALERS

100 90 80 70 60 50 40 30 20 10 0
es Ti l

95 57 35 30 20 18

Tr

rta tio n Se rvi ce Ad s ve rti se me nt Ma rg in Ot he rs

an sp o

Series1

First of all we want to know that who are in the competition with kajaria tiles according to the dealers Orient. they are Johnson, Nitco, Somany, and

As according to this graph we say that the most important problem faced by the dealers are margin problem. They say that they dont get margin from this tiles and other company give better margin. Some of the dealers also complain that their business is also affected by the opening of Kajaria plus Showroom near his area.

Now, the next problem faced by the dealers are service problem means that there is no proper response of any complain if there may be any

response than it will be so late, as it lost its importance.

Some of the dealers are also complain for the tiles that they are not plain in shape (base of the tiles), not color range. specific size of the tiles (16/12) and also

Some of the dealers say that they dont face any problem by this company mostly are Kajaria Plus dealers.

PROBLEMS OF DEALERS

Tiles 100 Others 50 0 Margin Advertisement Services Transportation Series1

Now, in conclusion dealers says that they are doing business and business means earn money so, why they want to sell those brand which do not give the margins or better margins. If the same conditions continue then at that time dealers want to motivate the customer for those brands, which give better margin.

CONCLUSION

CONCLUSION
An attempt is made to identify the level of awareness among he respondents towards KAJARIA CERAMICS LTD. From the study it is inferred that TV commercials have considerable influence on the buying decision as well as brand preference of the consumers. The celebrity endorsement is also considered to be an important part of advertisements to make them more creative and innovative in their reach to the consumers and their attempt to capture their attention.

Following observations are made after making an analysis of data collected form various respondents and from general discussions with them: Almost half of the segment of respondents likes to watch ads regularly. So company should expense more on advertisement. A significant portion of the people prefers to watch ads because of the informative content. This is because of Evocation of experience Brand preference is considered to be one of the prerequisite for brand salience-to create the Top of the mind Brand awareness . A small segment of the respondents think that the advertisements are totally true or reliable. All the rest of them think that they are either sometimes deceptive or mostly deceptive.

Major chunk of the respondents feel that celebrities presence in the ads is highly required. They feel models are familiar and their presence is reassuring. Moreover, because of the high positive image of the celebrities consumers feel the genuineness of the product/brand. More than half of the consumers are not able to relate themselves with the lifestyle shown in the TV ads. This is because the people are not able to conform the exaggeration shown in the respect of product benefits with their own picture reali

SUGGESTIONS

SUGGESTIONS
It is very difficult for any company to rise and become the leading brand but it is much more difficult to maintain this position.

I am pleased to submit my suggestion to Kajaria Ceramics Limited.

Any company can be successful only in one condition when the company satisfies the dealer and customer. The company should follow this principle that to maximize the production at minimum cost. It is very difficult for a company or firm to raise needs of the customer. If you successfully arise it, then the next step is more difficult in comparison to first step i.e. To maintain the customers needs for the product. Because at that time several other substitutes may present in the market with lower cost and the same quality or nearer to the same quality because they dont spend as much money on advertisement in comparison to original products.

As we know that it is the first Indian Tile Company with ISO-9002 certification. Now, in the current market situation, some Other tile companies also have ISO-9002 certification. So, only on the basis of this Kajaria Ceramics cant motivate potential customer.

Company should have a goal to make profit with customer satisfaction and mission of being committed to excellence.

According to our survey we saw there is a big difference in buying behavior of the customers of the rural and urban areas. We cover rural area in Ghaziabad and urban area in Noida, Delhi and Ghaziabad. Because the most of the people of the rural area follow the traditional approach and most of the people of urban area believe in new generation.

According to our analysis we found that the current business of Kajaria Ceramics Limited is better in comparison to other tile manufacturing companies but if the same condition continues then the company may face problem in future because most of the dealers prefer to sell those brands which give them better margins.

So, if kajaria ceramic ltd. Not changes its business strategy then it will confirm face problem in respect of its customer as well as profit of the company.

First of all kajaria ceramic ltd. Segment its market separately in rural as well as urban areas because their buying behavior and their thinking for tiles are different from each other.

As we know that in rural areas most of the people faces economics problems. Here economic indicate that the cash money. The reason behind this is natural disaster or condition mean people buy essential goods on credit basis so they gave first preference to satisfy those people who gave the substance on accredit basis. Rural area people also say that what are the needs of the tiles for us? Firstly we manage need of our family like food, cloths, shelter means repair of shelter before rainy season etc. And then we think for the others.

So, the first step of the Kajaria ceramics Ltd. Is that to aware the rural area people, about the advantages of tiles like heat resistance, by the use of tiles you may avoid moisture in the stores by which your stored grains are affected, you may avoid

Housefly which causes disease, you may also avoid the small insects and may snake also who creep on the floor because they are unable to creep it on the tiles by the use of the tiles etc.

You may easily do it because in rural area; people are interested to know about the new thing. And in a day at least one time e they sit together so, you dont face much problem to collect the people or for giving demo. Of the tiles. When you will tell or aware the rural area people for the need of the tiles then the next step is to make the stock in that area by which they can easily buy it without spending much money on transportation, after that you may also give a offer to buy on credit basis but this credit should be in a period of six month or more for a year not more than this. The reason behind that your business is also not affected by this offer. You should also provide the better margin for the dealer s by reducing the by reducing the advertisement through electronic or print media because dealers may play amore role for motivating the customer for specific brand. You should also give questioners to each dealer, which is necessary to fill it, by the dealer after a month by which you can analyze the current situation for the product on this area.

Now, in

urban areas we know that the most of the people dont have the

time to listen your demo for the tiles they say that whenever we feel to buy, at that time we may ask for that. So you should concentrate on print media, electronic media and dealer. In print media our as our

advertisement are continuously published in some magazines like business world. But all the potential customer not read that magazines. So, you should also use the some banners and the places, which is able to see by the most of the people. Next is through electronic media by this electronic media you should advertise either on a prime time or on that time when a parent or guardian are watch T.V like news or family related serial which is watched by the most of the housewifes.

And with the help of the margin, mean by giving more margin in comparison to the other tiles company. If would we necessary cut some advertisement cost from the print media or from electronic media then you should cut it .But you dont compromise with dealer margin. Because dealer play an important role for motivating the people.

E.g. If a customer enter in a shop which has a biggest banner of kajaria ceramic ltd. And the customer also have some knowledge about kajaria tiles then dealers gave demo which is fully devoted to kajaria but in last line if they say that now a days some of the customers tells some problems comes in use of kajaria tiles so,

We dont take any guarantee for this tile and according (dealers) to me if you spend such money then you should invest on that brand which have no complaint yet, means another company tiles who gave better

performance and no one gave any type of complain so, most of the potential customer divert for the another brand tiles and the dealers also make a better margin as dealer sit on the shop for making money. So, why they dont want to sell that product which gave less margins? Where as the quality is as same as the kajaria tiles. E.g. Dealers who have only

Kajaria tiles now facing problem from local manufactures which is located in Marbi, Rajkot, Baroder. Major competitor are Gold coin, Bell ceramics, Asian etc. The above manufactures are having equivalent to Kajaria quality and latest machinery.

a) Good, production team. b) They are in mass advertisement for specific area. c) Gave better margins to dealers by which dealers motivate potential customer to customers. d) They gave better margins to dealers by cutting advertisement cost.

If kajaria may allow giving its tiles on a credit basis for a limited time period then the number of the customer increases because some of the customers are brand loyal but they dont buy kajaria tiles due to his financial position. Or buy another brand as they have the option of credit basis.

Some of the dealers also complain that your services are not up to the mark like:-

Mahul

traders

say

that

some

times

company

doesnt

give

replacement offer for defective materials for the customer.

Shree Shah sanitary stores say that since last one year, we have received many complaints from the customers .

Having different problems requiring Kajaria ceramic tiles. There is no positive answer from responsible person.

Vijay sanitary stores say they faced main problem of others. In others problem can be sorting, services etc.They say that in pack of tiles id to stored tiles of II quality in the I quality.

They also that due to present economic condition and cheaper and good quality of tiles available in the market of different companies rates of your company are high. Company is not able to solve the genuine complaint of the customers, replacement for defective goods as well as rates.

Now, you also make the better contact with architecture because they can motivate the potential customer through his scientific point of view and potential customer are easily believe on his views like heat resistance , stroke resistance.

Contact with Builders as they may help to gave better contract by which your product can use in a huge amount. With contractors they may also gave a better setting condition and other who may gave you a better business.

You have also concentrates on those dealers who are nearer to the kajaria plus showroom as they are affected by the opening of kajaria plus .The reason behind this, is that the bigger project are transfer to the kajaria plus whereas this project is actually concerned with those dealers who are nearer to the kajaria plus showroom it will transfer to kajaria plus.

Note: - as due to the request of the some dealers and a large number of complaints we not mention the same and all complaint, we mention only those, which conclude al

LIMITATIONS

1. The data obtained is available to Ghazi bad. 2. Due to shortage of time study was restricted. 3. Inaccessibility to certain areas also restricted the study to a limited sample size. 4. Inaccessibility of the respondents at times at their houses.

ANNEXURE

QUESTIONNAIRE
1. Which brand of tile do you use? a) Kajaria b) Johnson c) Nitco d) Somany e) Orient 2. If given a chance to change the brand of tiles, would you prefer to change it? a) Yes b) No 3. If yes, then which brand? a) Kajaria

b) Johnson c) Nitco d) Somanyorient e)

4. Are you aware of the fact that Kajaria Ceramics Ltd. Is the No.1 Tile Company? a) Yes b) No 5. If yes then indicate the source of your awareness? a) Newspaper b) T.V c) Magazine d) Radio 6. Can you recall logo of any brand? a) Yes b) No 7. If yes then which brand? a) Kajaria b) Johnson c) Nitco d) Somany e) Orient

8. In your view which one is the best company (Quality Wise)? a) Kajaria b) Johnson c) Nitco d) Somany e) Orient 9. In your view which one is the best company (Feature Wise)? a) Kajaria b) Johnson c) Nitco d) Somany e) Orient 10. In your view which one is the best company (Price a) Kajaria b) Johnson c) Nitco d) Somany e) Orient

Wise)?

11. Indicate the criterion for using the tiles? a) Convenience b) Premium c) Economic d) Value For Money

12. Which is the most usable location for tiles in your opinion? A) Kitchen B) Bathroom C) Floor D) Gallery E) Rooms F) Veranda G) Others

13. Indicate your usage rate? a) Heavy User b) Medium User

c) Light User

d) Non User

BIBLIOGRAPHY

BIBLIOGRAPHY

WWW.KAJARIACERIMICS.COM

MARKETING

MANAGEMENT - PHILIP KOTLER

PRINCIPLES OF MANAGEMENT - C.B. GUPTA MARKETING RESEARCH - D.D. SHARMA RESEARCH METHODOLOGY - C.R. KOTHARI