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Summer Internship Project Report

TOPIC

“To understand the distribution strategy of Hettich’s Screw and

Channel business”

Submitted in partial fulfilment of the requirement of Post Graduate Diploma in

Management (PGDM)

Under the supervision of:

Dr. Poonam Sharma (Faculty Mentor) &
Mr. Divyankar Goel (Industry Mentor)

Submitted by:
Kushagra Mahajan
PGDM 2017-19
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Jaipuria Institute of Management, Noida.

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Declaration

I, Kushagra Mahajan, hereby declare that the project entitled “To understand the distribution
strategy of Hettich’s Screw and Channel business” submitted in the partial fulfilment of Post
Graduate Diploma in Management (PGDM) is the original work done by me under the
guidance of Mr. Divyankar Goel (AGM Sales) and Dr. Poonam Sharma (Faculty Mentor,
Jaipuria Institute of Management). The contents of this project report reflect the work done by
me during the Summer Internship at Lucknow for Hettich India Pvt. Ltd.

Kushagra Mahajan
PGDM (2017-19)
Jaipuria Institute of Management, Noida

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Acknowledgement

Writing any Summer Internship report like this is a collaborative effort. I and many important
people that I met during my Internship at Hettich made it possible. Firstly I’d like to extend my
sincere thanks to Jaipuria Institute of Management, Noida for giving me such an enriching
opportunity to go through this Summer Internship process. I’d also like to thank my Faculty
mentor, Dr. Poonam Sharma, for encouraging me and helping me throughout the process.
I’m highly indebted to my Industrial mentor, Mr. Divyankar Goel, A.G.M Sales at Hettich
India Pvt. Ltd. to provide me with an opportunity to work with such a goliath multinational
company like Hettich. I’d also like to thank him for being such an amazing mentor throughout
the process and instilling confidence in me through his appreciation and recognition for my
work at every step.
I’d like to express my gratitude to Mr. Brijesh Singh, Area Sales Manager at Hettich India
Pvt. Ltd. I’m forever indebted to him for teaching me such important facts about being a Sales
manager in such a big company like Hettich and the responsibilities that come along with it.
He has been the main reason that I performed my job so well during my internship and received
a special recognition certificate for my work from corporate.
Last but not the least; I’d like to thank Vee Enterprises (Mr. Vishal Goel), Distributor of
Hettich/ HePo products in Lucknow. Their knowledge about the market, co-operation and
encouragement has helped me throughout the completion of this project.

Kushagra Mahajan
PGDM (2017-19)
Jaipuria Institute of Management, Noida 3
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Table of Contents

Summer Internship Project Report............................................................................................. 1

Declaration ................................................................................................................................. 2

Acknowledgement ..................................................................................................................... 3

CHAPTER 1: INTRODUCTION .............................................................................................. 6

1.2 Company Introduction................................................................................................ 7

1.2.1 Hettich ................................................................................................................. 7

1.2.2 HePo .................................................................................................................... 9

1.3 Introduction to Screws by Hettich & HePo .............................................................. 10

1.3.1 Difference between Stainless Steel and Mild Steel .......................................... 10

1.3.2 Features in Hettich’s screws ............................................................................. 11

1.3.3 Types of Screws by Hettich .............................................................................. 13

1.3.4 Types of Screws by HePo ................................................................................. 14

1.4 Introduction to Telescopic Channels by HePo .......................................................... 17

CHAPTER 2: JOB DESCRIPTION .................................................................................. 20

2.2 Key Responsibility Areas (Explained) ..................................................................... 23

2.2.1 Hettich and HePo Screws.................................................................................. 23

2.2.2 HePo Telescopic Channels: .............................................................................. 25

2.3 Hettich Screws and HePo Screws & Telescopic Channels:- Channel of
Distribution .......................................................................................................................... 26

CHAPTER 3:ANALYSIS OF JOB DONE ............................................................................. 28

3.1 SWOT Analysis........................................................................................................ 29

3.1.1 Hettich’s screws ................................................................................................ 29

3.1.2 HePo’s channels ................................................................................................ 32

3.2 Ansoff Matrix ........................................................................................................... 35

3.3 Price Analysis ........................................................................................................... 36

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3.3.1 Hettich’s Saw Thread SS screws vs Omni’s Saw Thread SS Screws ................ 36
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3.3.2 Hettich’s Saw Thread MS Screws vs HePo’s Normal Thread MS Screws vs

Omni’s Regular Thread MS Screws ................................................................................. 37

3.4 Questionnaire (Job) Analysis ................................................................................... 38

3.4.1 Hettich’s Screws related analysis ...................................................................... 38

3.4.2 HePo’s channel related analysis........................................................................ 41

CHAPTER: LEARNING OUTCOMES .................................................................................. 43

4.1 Learning from Hettich’s and HePo’s Screw department- ........................................ 44

4.2 Issues related to Hettich’s and HePo’s Screws- ....................................................... 44

4.3 Learning from HePo’s Channel department- ........................................................... 45

4.4 Issues related to HePo’s Channels- .......................................................................... 45

CHAPTER 5: SUGGESTIONS, MAJOR TAKEAWAYS AND CONCLUSION .......... 46

5.1 Suggestions for Hettich’s Screws ............................................................................. 47

5.1.1 Immediate actions required: .............................................................................. 47

5.1.2 Long Term actions required: ............................................................................. 47

5.2 Suggestions for HePo’s Screws ............................................................................... 48

5.2.1 Immediate actions required: .............................................................................. 48

5.2.2 Long Term actions required: ............................................................................. 48

5.3 Suggestions for HePo Telescopic channel ............................................................... 49

5.3.1 Immediate actions required: .............................................................................. 49

5.3.2 Long Term actions required: ............................................................................. 49

5.4 Major Takeaways ..................................................................................................... 50

5.5 Conclusion................................................................................................................ 51
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CHAPTER 1:
INTRODUCTION

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1.2 Company Introduction

1.2.1 Hettich

Hettich was founded in 1888 and is today one of the world's largest and most successful
manufacturers of furniture fittings. Over 6,600 members of staff in almost 80 countries work
together towards one objective: developing intelligent technology for furniture. With it, we
excite people across the globe. And are a valuable partner to the furniture industry, retailers
and the trades.

Despite our size and international significance, Hettich has remained a family owned business.
Independent of investors, we have a free hand in shaping our future with a focus on the human
element and sustainability.

The secret behind our success are Hettich's four central brand values: awareness of quality, joy
of innovating, constant dialogue with our customers and reliability. It is on the basis of these
values that our staff thinks and act every day.

Hettich products significantly influence the quality and functionality of furniture. Prudent and
consistent quality management is one of the vital keys to success at Hettich. Even as early as
when Hettich products are being developed, the focus is on serviceability and long life which
is then verified in the form of prototypes. The most exacting demands also apply to the visual
quality of Hettich products: product surfaces are hard wearing and durable – for many years of
reliable use.

Established 1888, Schaumberg, Germany.

Furniture fittings, including Hinges,
Products drawers, runners and sliding door
hardware.
Mission Technology for furniture

Turnover Approx 1 Billion Euros

Wholly owned by Hettich family
Ownership structure
(4th Generation)
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Subsidiaries 38 worldwide
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The Hettich brand is synonymous with quality, innovation, reliability and closeness to
customers all over the world. Technology for furniture – that‘s our passion. Our furniture
hardware solutions excite people all across the globe.

With 38 subsidiaries and production sites in America, Europe and Asia, we are never far from
our customers wherever they are in the world. We are a strong partner to the furniture and white
goods industry, to specialist retailers and the trades as well as to the Do-It-Yourself sector.
From industry client to consumer, our technology for furniture excites them all.

We meticulously work on products which are often unseen once they are fitted inside furniture.
They are only noticeable through the job they do because our hardware solutions bring
movement, safety and convenience to furniture, even after years of use. The secret: awareness
of quality, joy in innovating, constant dialogue with our customers an reliability. Our staff act
in line with these values, something that doesn‘t go unnoticed.
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1.2.2 HePo

HePo India Private Limited (HePo) is a Joint Venture between Hettich (Germany) &
Adventz (Group).
The promoters of the company are Dr Andreas Hettich & Mr Saroj Poddar.
HePo is having its presence all over India with its registered office at New Delhi and Head
Office at Mumbai.
HePo is present in various business segments.
One of which is Screw/ Fasteners beside Furniture Fitting - for value for money buyers.
HePo is also present in Stone vertical wherein it has exclusive tie-up with world renowned
brand- Du Pont for Zodiaq- Engineered stone & Corian Shapes & Sinks.
It is also present in Acrylic Solid Surfaces in brand name of - Montelli.
HePo is also present in Built in Home Appliances Category under the brand name Blaupunkt.
In Built in Appliances it has complete range comprising of Hobs, Hoods, Oven, Microwave,
Dish washer, warming drawer etc.
HePo also plan to foray into new areas of business opportunity

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1.3 Introduction to Screws by Hettich & HePo

Screws

Hettich HePo

Stainless Mild Steel Mild Steel

Steel

1.3.1 Difference between Stainless Steel and Mild Steel

Mild steels:

Carbon steel is sometimes referred to as ‘mild steel’ or ‘plain carbon steel’. The corrosion
resistance of carbon steels is poor (i.e. they rust) and so they should not be used in a corrosive
environment unless some form of protective coating is used. This type of material proves to be
much cost effective.

Stainless steel:

It is defined as a steel alloy with a minimum of 11.5 % chromium content. Stainless steel does
not stain, corrode or rust as easily as ordinary steel (it “stains less”), but it is not stain-proof. It
is also called corrosion resistant steel. Stainless steel differs from carbon steel by amount of
chromium present. Carbon steel rusts when exposed to air and moisture. This iron oxide film
is active and accelerates corrosion by forming more iron oxide. Stainless steels have sufficient
amount of chromium present so that a passive film of chromium oxide forms which prevents
further corrosion.
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1.3.2 Features in Hettich’s screws

USP of Hettich’s Screws

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1. Saw Thread: - For better and faster cutting strength of the screw inside the material.
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2. High thread pitch: - Larger distance between consecutive thread for faster drive in and
better grip.
3. Sharp optimised tip: - For better positioning and drilling of the screw even on hard
surface.
4. High grade (Available in SS):- Hettich’s SS screws are of 410 grade which ensures
higher chromium content thereby enabling magnetic properties in SS screws.

Advantage of Pozi drive

 8 times better grip compared to slotted heads and 2 times better than Phillips head.
 No Cam-Out Problems.
 Allows greater torque and faster drive.
 Fast and safe positioning while starting on hard surfaces.
 Latest & most efficient head type prevalent internationally

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1.3.3 Types of Screws by Hettich

Following are the categories into which Hettich’s Screws fall into:-

1. Counter Sunk Saw Thread MS Screws

 Hettich’s most selling type of screw.

 It has Saw threading.
 It comes in 33 sizes.
 Most commonly sold size 4 x 20 is priced Rs. 86 per 100 screws.
 The head of this screw gets in line with the surface.

2. Pan Head Saw Thread MS Screws

 It has Saw Threading.

 Pan Head screws are rarely in demand.
 It comes in 19 sizes.
 Most commonly sold size 4 x 20 is priced Rs. 92 per 100 screws.
 The head of this screw is oval in shape and it stands out above the surface.

3. Counter Sunk Saw Thread SS Screws

 These are 410 grade Stainless Steel screws.

 They’ve magnetic properties due to presence of Chromium in its material.
 These are mostly demanded where there is kitchen purpose usage.
 Most commonly sold size 4 x 20 is priced Rs. 176 per 100 screws.
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 Mostly demanded by Upper Middle and High class customers.

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4. Handle Fixing Screws

 They’re available only in Pan Head.

 The come with Cross recessed drive rather than Pozi Drive.
 They’re available in 15 sizes all with 4 mm of diameter.
 Most commonly sold size M4 x 32 is priced Rs. 176 per 100 screws.
 It makes the handles last without any dislocation for a longer time.

1.3.4 Types of Screws by HePo

Following are the categories HePo’s Screws fall into :-

1. Counter Sunk Regular Thread MS Screws

 These screws are generally around 20% lesser in cost compared to Hettich’s screws
 Cost cutting has nothing to do with compromising with quality but it’s all about
eliminating the additional feature, i.e. Saw Threading.
 It also comes with Poi Drive head technology.
 It comes in 18 different sizes.
 Most commonly sold size 4 x 20 is priced Rs. 76 per 100 screws.
 It is one of the HePo’s most selling screws and finds more acceptances from the
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retailers and carpenters due to lesser price and assurance of Hettich’s quality that
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comes with it.

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2. Pan Head Regular Thread MS Screws

 Pan Head screws are rarely in demand.

 It comes in just 7 sizes.
 Most commonly sold size 4 x 20 is priced Rs. 83 per 100 screws.

3. Black Iodised Counter Sunk Regular Thread Screw

 Always available in Regular Thread.

 Black Phosphate coated for preventing rust.
 It also comes with Poi Drive head technology.
 It comes in 19 different sizes.
 Most commonly sold size 4 x 20 is priced Rs. 74 per 100 screws.
 It is one of the HePo’s most selling screws as the demand for Black iodised screws
is high in current market.

4. Black Iodised Pan Head Regular Thread Screws

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 Pan Head screws are rarely in demand.

 It comes in just 6 sizes.
 Most commonly sold size 4 x 20 is priced Rs. 90 per 100 screws.

5. Self Drilling Screws

 Screw tip itself acts as Drill bit and therefore it doesn’t require pre drilling of holes.
 It comes with Phillips head.
 Currently it comes with size of 1 inch only priced at Rs. 119 per 100 screws.
It generally is demanded by retailers who deal in aluminium related work
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1.4 Introduction to Telescopic Channels by HePo

Product Description:-

 HePo’s telescopic channel has a weight bearing capacity of 25-30 kg.

 HePo’s channels are highly attractive due to their design as the channel has single ball
bearing slider which makes the channel a lot slimmer.
 It comes in even numbered sizes from 8 inch to 22 inch priced at Rs. 19 / inch.
 These channels are perfect for Office and Kitchen purposes.
 The channel is designed keeping in mind how perfectly it would match the needs of a
modern kitchen.
 It comes with a single ball bearing with more number of balls closely attached, making
sure the channel is not only slimmer and stylish in looks but also strong and reliable in
terms of quality.
 It has 0.2 mm of Nickel coating done in it which makes sure that the channel remains
rust free for much longer time. If Hettich’s channel is able to last for a year without rust
then HePo’s channel would last easily for couple of years due to extra nickel coating
done in it.
 Corrosion resistance score of HePo’s channel is 6.4 compared to that of Godrej and
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Ebco which is 1.1 and 3.6 respectively.

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CHAPTER 2: JOB
DESCRIPTION

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2.1 Job Description

JOB TITLE
Sales and Marketing Intern, Hettich India Pvt. Ltd.

SECTION
B2B Marketing

JOB LOCATION
Lucknow

JOB SUMMARY
 Worked on expanding the network for Hettich’s Screws and Telescopic channels by
registering new outlets and periodically visiting the existing ones
 Conducted research for company by collecting vital information from Hettich’s retailers
 Conducted carpenter meets to make carpenters and retailers aware about the product

KRA (Key Responsibility Area)

 Explain retailers about the product; i.e. Screw and Telescopic Channels.
 Educate retailers and carpenters about HePo and how it differs from Hettich.
 Expansion of market by getting on board new retailers for Hettich and HePo.
 Getting orders for screws and channels from existing and new Retailers.
 Educate the retailers about new schemes and discounts available to them.
 Go to distributor’s warehouse and facilitate timely delivery of order.
 Understand the channel of distribution of Hettich & HePo and how it affects the business.
 Make sure that retailers fill the questionnaires which will be used for research purposes.
 Go to retailers who deal in Aluminium products and pitch to them Hettich’s Self Drilling
screws and ask them what is stopping them to use it.
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Additional responsibilities

 To make sure retailers know about new Gold/Silver scheme that covers both screws and
telescopic channels and ask them to give fresh orders accordingly.
 To arrange a Carpenter Meet where we can tell them about the benefits of Hettich/ Hepo’s
products compared to local ones and also provide them free Hettich Screw Drivers.
 To make sure retailers understand the change in branding of HePo as it now says in its
packaging HePo-“A Hettich & Poddar JV”.

WORKING TIME
8 hours per day
10 AM – 6 PM
6 days a week (Sunday- Holiday)

REPORT
Mr. Brijesh Singh - Area Sales Manager (Hettich India Pvt. Ltd.)
Mr. Divyankar Goel – AGM Sales (Hettich India Pvt. Ltd.)

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2.2 Key Responsibility Areas (Explained)

2.2.1 Hettich and HePo Screws

 Network Expansion: Visit retailers to make them aware about what Hettich’s screws
have to offer in terms of its features and how beneficial it can be for end customers and
carpenters. Make them understand how discount applies on the screws. If retailers seem
to worry about price then pitch to them about new cost effective HePo screws.
 Getting orders and facilitating timely delivery: Job was not just about educating the
retailers but also to take orders from them by way of continuous persuasion. I visited
one shop many times in order to ensure they give orders and when they finally order, it
was my responsibility to ensure timely delivery from warehouse and receive payment
on time.
 Provide solution: Retailers don’t just need information to buy products they need cost
effective solution to their problems. Part of my job was to make retailers understand
that Hettich offers Industry Packaging which drops rate per screw drastically as the
number of screws per package increases from 1000 to 28000.
 Circulate questionnaires: In order to conduct a small research I developed a
questionnaire which needed to be filled by retailers. At the end of the process I was able
to come at some crucial game changing conclusions because of the feedback I received
through these questionnaires.
 Awareness about Self drilling screws: Self drilling screws are of much demand at
Aluminium shops, so the retailers there need to be informed about Hettich’s self drilling
screw which could drastically improve the quality of their product.
 Educating carpenters: Just educating retailers about the product is not even the job
half done. We as inters need to make sure that we take our talks with retailers one step
ahead and ask them to assemble their known carpenters for a meet where we can
educate them about the benefits of using Pozi drive and Saw threaded screws introduced
in the market by Hettich and HePo.
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 Getting retailers onboard through Gold/Silver scheme: During my time as an Intern,

Hettich launched a scheme on its Screws and HePo Telescopic Channels where retailers
who orders above a certain amount, is entitled to receive Gold/ Silver as per the terms
and conditions. We need to entice the retailers with the help of that scheme and make
sure they were on board.
 Creation of formal database: As an intern it was my duty to create a Retailer’s
database which contained list of all the important retailers I visited. The list contains
contact details and address of the retailers that I covered.

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2.2.2 HePo Telescopic Channels:

 Business Development: Help in developing the market for HePo’s light weighted
Telescopic channels. Educate the retailers about the maximum weight that a channel
generally bears in around 15 kg and our channel that has a weight bearing capacity of
25 kg, which is perfect for the customers.
 Brand awareness: One of the most important tasks was to make sure that retailers
understand HePo is a company of Hettich and is same in terms of quality. It is a joint
venture between Hettich and Poddar group formed to penetrate further into the market
and target middle class customers with its top notch quality products.
 Product awareness: We need to make retailers aware about the additional features our
channel has to provide. For example:- HePo channels have 0.2 mm of nickel coating
done in it which makes sure that it remains rust free for around 2 years.
 Change their misconception: Retailers generally have misconception that thick and
heavy channels are better compared to those which are light weight and slim. We as
interns try to clear this misconception of theirs as much as possible.
 Aware them about change in branding: Earlier HePo did not used Hettich name in
their packaging of channels, but recently they’ve change it now it says in the packing-
“HePo- A Hettich & Poddar JV”.
 Smart selling: We need to inform our retailers about the smart way they can adopt to
sell HePo’s channels. They should take advantage of the Hettich’s name written in the
packaging to entice customers rather than selling it as a new and untested name in the
market HePo.
 Getting retailers onboard through Gold/Silver scheme: During my time as an Intern,
Hettich launched a scheme on its Screws and HePo Telescopic Channels where retailers
who orders above a certain amount, is entitled to receive Gold/ Silver as per the terms
and conditions. We need to entice the retailers with the help of that scheme and make
sure they were on board.
 Increasing visibility: We were also asked to increase the visibility of the brand HePo
by requesting retailers to put up stickers in their shops showcasing Hettich and HePo
together.
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2.3 Hettich Screws and HePo Screws & Telescopic Channels:-

Channel of Distribution

Hettich follows two types of Sales Models for its screws:

1. Dealership Model
2. Distribution Model

1. Dealership Model

 Production – Plant Warehouse – Depot Warehouse – Dealers/Retailers – Customers.

 In smaller cities where there is comparatively smaller market to target with lesser
number of established retailers, Hettich provides Dealership to various big retailers.
 This model makes sure that Dealers are closely related with company and enjoy time
to time benefits from it as well.
 This model will eventually help Dealers to act as big retailers who also supply Hettich
screws to smaller retailers as and when the demand comes for it.
 This model also proves to be cost and time efficient as it eliminates the need of Sales
Executive in that area.

2. Distribution Model

 Production – Plant Warehouse – Depot Warehouse – Premium Dealer / Distributor’s

Warehouse – Retailers – Customers.
 This model is focused upon Tier 1 and 2 cities which are much bigger in area and
require extra efforts of a Sales executive to push the product further into the market.
 This model is created in order to cater the needs of casual demand of product from local
retailers.
 This model helps in widening the reach of the product in the market as retailers get
educated about the product and demand for it in small quantity.
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Meanwhile, HePo for its Screws and Telescopic channels follows only Distribution Model
because of the following reasons:-

 HePo is a new entrant and customer has little to no awareness about the company.
 Lesser awareness means it can’t rely upon retailers to obtain dealership and sell off all
its stock. These unsold products through dealership model will unnecessarily lead to
accumulation of dead stock.
 To make the retailers and carpenters more aware about the product the company follows
Distribution Model as it allows company to employ a Sales Executive who takes care
of such brand awareness responsibilities.

Channel of
Distribution

Hettich HePo

Dealership Distribution Distribution

Model Model Model
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CHAPTER 3: ANALYSIS OF
JOB DONE

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3.1 SWOT Analysis

3.1.1 Hettich’s screws

Strengths
 Strong brand name.
 Top notch German quality.
 Wide range of screws.
 Excellent image.
 Innovative features.
Weakness
 Expensive screw range.
 Less scope of margin for
dealers.
 Unaware end customers.
 Ignorant carpenters.

Opportunities Threats
 Strong Dealership  Too many unorganized
network. players.
 Economy range screws by  Very cheap pricing of
HePo. screws done by major
 High brand recall for Saw competitors like Omni,
threaded screws Patta, etc.
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Strengths:

 Hettich has a strong hold over its customers, which have developed due to excellent
quality products of the company over the years.
 In terms of quality no other company that deals in hardware products like screws,
hinges, channels, baskets, etc. comes even close to match the standards set by Hettich.
 Hettich are not into screws just for the mere presence. They’ve all variety of screws
available that could match the needs of the customer. From saw threaded screws to self
drilling screws every variety of them is available.
 Hettich has excellent image in the eyes of dealers, carpenters, architects and end
customers as well.
 What motivates Hettich to move forward is Innovation. It has been the key for Hettich’s
success over the years.

Weaknesses:

 Biggest weakness for Hettich in India is that many people here look for price over
quality and assurance. Hettich’s screws are top notch in terms of quality but turns out
to be expensive as well.
 High price of the products doesn’t leave much space for retailers or dealers for their
own margin.
 Most of the people who buy screws are ignorant carpenters, who don’t care much about
quality but just about low price.
 To add to the ignorant carpenters, customers are also not well aware about which
company’s products assures quality and what are the benefits of choosing quality over
price.
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Opportunities:

 I’ve witnessed many of the big shops in an area are Premium dealers with Hettich and
that helps the company a lot to push the product.
 Hettich has recently introduced a new brand HePo that deals with varied products.
HePo’s screws follow Market penetration strategy where it provides screw at a much
lesser cost compared to its Hettich screws.
 Customers who have once used the product seem to be very satisfied about the quality
of it and generally come back to buy again when the need arises.

Threats:

 The major threat for Hettich’s screw is that it has to compete with too many unorganised
players who are enjoying quite a major chunk in current market.
 To add to such a stiff competition already, these local competitors make very low
quality products ready for sale at a very low cost.

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3.1.2 HePo’s channels
Strengths
 Association with Hettich.
 Top notch German quality.
 Available in all sizes.
 Slimmer and stylish look.
 Extra nickel coating to make
it rust proof for a longer
time.
Opportunities
 Strong Distribution
network.
 High scope of decent
margin.
 Economy range of channels
backed by a brand like
Hettich.
Weakness
 New entrant into the
market.
 Unproven brand name.
 Vey light weight and slim.
Threats
 Too many unorganized
players.
 Very strong hold of
competitors like Ozone,
Ebco, etc. in the market.
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Strengths:

 HePo is a Joint Venture between Hettich and Poddar group, therefore the name Hettich
brings in quality assurance with itself making the sale of HePo easier.
 In terms of quality HePo is similar to Hettich. HePo sacrifices some of the features that
Hettich products have to offer.
 HePo channels are available in all sizes ranging from 8 inch to 22 inch.
 HePo channels are designed to perfectly fit our modern kitchen and offices. Therefore,
the design offers slimmer and more stylish and modern looks.
 In HePo channels, unlike Hettich channels extra 0.2 mm layer of nickel coating is done
which makes sure it’s rust free for a longer time than Hettich itself.

Weakness:

 Biggest weakness for HePo at the moment is that is is a new entrant, therefore it’ll take
time to establish itself.
 Being the new entrant it is highly unproven but given the quality of the product it’ll
soon be a success.
 Many retailers have complained that they’ll not be able to sell such a low weight bearing
capacity channel as the customer still feels that only thickness and weight of the channel
gives way to quality.

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Opportunities:

 HePo follows Distribution Model which makes sure that retailers stay interested as
every other retailer earns same margin on the product.
 With the introduction of HePo the company wants to take care of most important issue
raised by the dealers, i.e; Profit margin. Retailers can now sell HePo products at
Hettich’s cost as the name Hettich is mentioned in the packaging to entice customers.
 HePo channels are much cheaper compared to Hettich and are more focused on giving
the customer just what they want, that being a light weight channel that will be solving
their purpose at much lesser cost.

Threats:

 The major threat for Hettich’s screw is that it has to compete with too many unorganised
players who are enjoying quite a major chunk in current market.
 To add to such a stiff competition already, major competitors like Ebco and Ozone
currently leads the market with decent quality products at low cost and have a wide
presence as well.

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3.2 Ansoff Matrix

PRODUCTS
EXISTING NEW

PRODUCT DEVELOPMENT
MARKET PENETRATION
STRATEGY
STRATEGY
EXISTING
(Tower Bolts)
(Saw Threaded Screws)
(Self Drilling Screws)
(Screws Without Saw Thread)
(Blackodised Screws)
(Handle Fixing Screws)
MARKET (Light weight HePo Channels)

NEWMARKET DEVELOPMENT DIVERSIFICATION STRATEGY

STRATEGY (Non Magnetic SS Screws)
(Magnetic 410 Grade SS Screws) (Half Threaded Screws)

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3.3 Price Analysis

3.3.1 Hettich’s Saw Thread SS screws vs Omni’s Saw Thread SS Screws

Stainless Steel (SS) - Saw Thread Screws

Sizes 3.5 x 35 4 x 20 4 x 25 4 x 35 5 x 60 5 x 70

Hettich 2.14 1.76 2.09 2.64 7.26 7.6

Omni 2.58 1.84 2.11 2.79 10.47 17.36

20
17.36
18

16

14

12
10.47
10 Hettich

7.26 7.6 Omni

8

4 2.58 2.79
2.11 2.64
2.14 1.84
1.76 2.09
2

0
3.5 x 35 4 x 20 4 x 25 4 x 35 5 x 60 5 x 70

Implication: People generally talk about Hettich’s screws being expensive, but in case of
Stainless Steel (SS) screws we can clearly see that Hettich’s screws are cheaper compared to
its one of the biggest rival in Indian market, Omni. Therefore more efforts need to made from
Hettich’s sales team to make sure we don’t lose out on this huge opportunity as SS screws is
hugely demanded in today’s world of modular kitchens and modern offices.
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3.3.2 Hettich’s Saw Thread MS Screws vs HePo’s Normal Thread MS Screws vs Omni’s
Regular Thread MS Screws

Mild Steel (MS)

Sizes 4 x 25 4 x 30 4 x 35 4 x 40

Hettich 0.97 1.12 1.3 1.41

HePo 0.85 0.97 1.08 1.32

Patta 0.51 0.56 0.64 0.76

1.6
1.41
1.3 1.32
1.4

1.2 1.12
1.08
0.97 0.97
1
0.85
0.76 Hettich
0.8
0.64 HePo
0.51 0.56 Patta
0.6

0.4

0.2

0
4 x 25 4 x 30 4 x 35 4 x 40

Implication: Here we can understand why retailers mourn about lack of margin in Hettich’s
screws. We can clearly interpret here that Patta, one of the biggest player in screw industry
offers its screws at just half the rate compared to Hettich’s screws. HePo’s screws are cheaper
compared to Hettich’s products but still far dearer compared to Patta screws.
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3.4 Questionnaire (Job) Analysis

Following upcoming analysis has been done with the Sample Size of 120 retailers in Lucknow
region and the figures in terms of percentages are rounded off. Questionnaire is also attached
at the end of the report.

3.4.1 Hettich’s Screws related analysis

Reason for not selling Hettich's screws ?

Too expensive for

12% customers

38% Lack of knowledge about

12% screws
Low margin for retailers
25%
13% Location of the store

Implication: Around 2/5th of the retailers believe that due to cheaper brands available out
there, they really don’t feel the need to stock Hettich’s screws and settle for low margin.

Most preferred brand ?

3% 5%

HePo
28%
Hettich
26%
Omni
Patta
Other local brands
38%

Implication: More than 3/5th of the screw market is captured by Patta and Omni, who only
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believe in penetrating into the market by providing low priced products.

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Which type of Screw Head do you most commonly sell ?

80
70 67

60
50 47
Which type of Screw Head
40
do you most commonly sell
30 ?
20
10 6
0
Slotted Phillip Pozi Drive

Implication: Only 5% of the screws sold in a day are Pozi drive ones according to the
information provided by retailers. This quite clearly indicates the customer be it carpenter or
the end user lack knowledge about benefits of Pozi drive screws.

Major channel of sales of screws for Retail customers

3%
13%

Carpenters
Furniture makers
51% End customers
OEM
33%

Implication: More than half of the customers of Hettich’s screws are carpenters. The plight of
this industry is that most carpenters are not educated enough to understand the benefits of using
Hettich’s quality products and still rely on traditional cheaper screws. Therefore the need of
the market is to educate the carpenters via Carpenter Meets.
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What should
Hettich do to Strongly Strongly
Disagree Undecided Agree
increase the sale of Disagree Agree
its screws ?

Carpenters Meet 0% 4% 4% 17% 75%

Advertisements on
Radio, Newspapers,
8% 13% 13% 25% 42%
Radio, Hoardings,
etc.

Improve Quality 42% 25% 21% 8% 4%

Implication: It’s a strong belief among retailers in the market that things could turn around
very well in favour of Hettich if there are more Carpenter meets done by Sales managers of the
company. More than 2/5th of the retailers believe that more of advertisements should be focused
upon to make the end users known about the product.

What makes
Hettich's screws
Strongly Strongly
such an attractive Disagree Undecided Agree
Disagree Agree
proposition for
retailers to sell ?
Quality of the
0% 0% 0% 17% 83%
product

Unique & Innovative

0% 25% 17% 50% 8%
features

Margin for retailers 67% 17% 13% 4% 0%

Implication: More than 4/5th of the retailers believe that Hettich’s screws are synonymous with
quality but on the same hand more than 2/3rd of these retailers do not want get involved with
Hettich products because of lesser margin opportunity involved here with retailers.
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3.4.2 HePo’s channel related analysis

Reason for not selling HePo's channels ?

8% Too expensive for

customers
33% 17% Too much lighweight

Lack of knowledge

Low margin for retailers

25%
4% Location of the store
13%
Cheaper local brands

Implication: 1/3rd of the retailers believe that their reason for not stocking HePo’s channels is
that there’s too much availability of local cheaper channels out there in the market hence the
retailer opt to go with brand that provide opportunity for higher margin.

Channels of which brand is given preference ?

4%
8%
17%
Hettich HePo

17%
Godrej Hafele

33% 8% Ebco Ozone

13%
Others

Implication: Around half of the retailers prefer to stock Telescopic channels of either Ozone
or Godrej. Brands like Ozone are not much cheaper than HePo. The only difference is HePo is
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still a new brand and has not yet been able to develop a trust among retailers.
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Additional support from company ?

70
61
60

50

40
31
30 Additional support from
22 company ?
20

10 6

0
Carpenter's Incentives Gifts ATL / BTL
Meet activities

Implication: More than half of the retailers feel that Carpenter’s meet is the need of the
moment and should be focused upon. More than 25% believe incentives to retailers in form of
Gold/ Silver scheme could give a huge boost to sales as well.

Key things dealers want in Hardware products they

ususally sell ?

2% 13% Quality
23%
Low price
Innovation

12% High margin

46% After sale services

Brand image
4%

Implication: Many retailers that I visited said that it’s only the hardware products in today’s
market that they could really depend upon to earn high margins. Therefore around half of the
retailers have given utmost importance to margins. On the more positive note, more than 1/3rd
42

of the retailers have given importance to quality and brand name associated with the product.
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CHAPTER 4:
LEARNING
OUTCOMES

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4.1 Learning from Hettich’s and HePo’s Screw department-

1. Dealers/ Retailers complain most of the time that it’s the mentality of carpenters that
have forced them to stay away from costly screws of Hettich.
2. Every dealer in the market appreciated the concept of Hettich’s SS screws and their
design but refrained from buying it because the usual carpenter doesn’t seem to find it
useful and value for money.
3. Many carpenters have developed a false belief that Phillips head screws are much
better in practical usage than Pozi drive ones. It means that Carpenters have are not
yet fully acquainted with Pozi Drive head screws and need more exposure to it. We
should provide some free samples by organising Carpenter meets so that the carpenters
so that they could get the hang of it.
4. Hettich’s screws get sold mostly at Hardware stores, sometimes at Furniture/Plywood
shops but very rarely at Tiles/Glass/Sanitary shops.

4.2 Issues related to Hettich’s and HePo’s Screws-

1. Dealers were not happy about the margin of profit that Hettich’s screws have to
provide. Even Hepo’s Zinc screws were appearing to be very costly for them.
2. Many small and local Screw companies were selling their Zinc screws at almost half
the rate compared to Hettich’s screws and they were also very flexible with their
packaging quantity. For eg: Local companies were also providing packets of as low
as 100 screws to retailers. Therefore Hettich should start the packaging of 100/200/500
screws.
3. Many shopkeepers are of the opinion that Screw and Fastener market is still not ready
to accept SS screws, hence there is no profit in stocking SS screws for the retailers.
4. It’ll be very difficult to change the opinion about SS screws (which are almost double
the rate of Hettich’s Zinc screws) just because of the higher grade and magnetic
properties which the carpenters doesn’t value that much.
5. Retailers are supposed to buy HePo’s screws because there are cheaper than Hettich’s
screws but as it turns out the rate difference between the two is just between 20-22%.
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Therefore HePo must make it a little bit cheaper by introducing Phillip drive screws.
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6. Packaging quality of HePo’s screws is very low quality. As a personal experience in

distributor’s warehouse I’ve seen many screws getting spilled up due to easily worn out
packaging.

4.3 Learning from HePo’s Channel department-

1. When I told retailers about HePo’s channels & revealed its features with the sample,
they seem satisfied with the quality of the channels it has to offer at such a lucrative
discount.
2. There were some dealers who complained about HePo’s channels being too slim
compared to that of other brands like Godrej and Ozone. Therefore, even today
customers relate the quality of channel and its weight bearing ability to its
thickness.
3. I’ve come to realise that for many of the retailers, Hettich’s products fall in the category
of those goods that are immediately supplied to customers when they ask for it by
purchasing the products from bigger retailers.
4. These retailers who follow such strategy have nothing against the brand but do not feel
the product is absolute necessity to stock for them.

4.4 Issues related to HePo’s Channels-

1. One factor that concerned me most that nowhere in the product or the packing it was
mentioned that HePo is a company of Hettich. Therefore many of the dealers were
sceptical about the quality of it matching to that of Hettich.
2. Dealers/ Retailers make their own channels or purchase local brand channels at a cost
as low as Rs. 8 per inch and sell them at Rs. 16 per inch. Therefore purchasing HePo’s
Channel at cost of Rs 12 per inch and selling them off at Rs. 16 per inch doesn’t look
like a cost effective proposition to them.
3. Many retailers think that such low weight bearing capacity and single ball bearing
channel invites risk & should avoid selling them.
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CHAPTER 5:
SUGGESTIONS, MAJOR
TAKEAWAYS AND
CONCLUSION
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5.1 Suggestions for Hettich’s Screws

5.1.1 Immediate actions required:

 Hettich’s screws are innovative and technically far superior to other screws available
in the market. Therefore the need of the moment is to make the major chunk of
customers, i.e; carpenters aware about the product through regular Carpenter Meets.
 Hettich should give free gifts to retailers which should help them to boost the sales of
Hettich’s screws. For eg: If a retailer orders Hettich’s screws for above Rs. 3000, they
should get a free Screw driver. A free screw driver will eventually come to the hands
of carpenters and finally they’ll come to appreciate the Poi Drive technique.
 Network expansion by zeroing in on key retailers that have a very strong hold on the
carpenters of that particular area and have good old image in the minds of customers.

5.1.2 Long Term actions required:

 The plight of the screw market in India is that too much freedom is given to carpenters
to choose brands for end customers. We need to make End Customers aware about the
importance of quality features that Hettich has to provide in order to ensure their safety.
This awareness can be spread via various ATL/BTL activities. For example, if we look
at recent Dr. FixIt TV ads it promotes awareness among Indian customer about the
importance of waterproofing. Hettich could do something similar to promote itself as a
quality assurance brand.
 Hettich should be flexible with its packaging and come up with packaging of
100/200/500 screws in its most selling size segment like (3.5x20), (4x20), (4x30), etc.
 Hettich should increase its presence in Self Drilling screws. Currently they come only
in 1 inch screws. As per the information I collected from the market, demand for ¾ and
1½ inch self drilling screws is also there.
 I think Hettich is not utilizing the power of social media to its fuller extent. They
should post videos on internet about the importance of right screws at right place.
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Through these videos they could warn people about what adversities could happen if
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local screw is used in your place of living.

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5.2 Suggestions for HePo’s Screws

5.2.1 Immediate actions required:

 Network expansion by zeroing in on key retailers that have strong hold on the
carpenters of that particular area and have good image in the minds of customers. This
is the product that has immense potential and sales executive should make sure those
who can’t deal in Hettich’s screws due to its expensive nature, now deal with HePo.
 Packaging of HePo’s screws should be improved a lot in terms of quality as it leads to
lots of unnecessary spillage (Picture shown below)*.
 Since HePo is in its starting phase it should entice dealers with various schemes like
foreign holiday vacation, Gold/ Silver schemes, etc. on a certain amount of order.

5.2.2 Long Term actions required:

 HePo should launch their products looking at the market conditions and the need of the
customers at the moment. Screw market is still not responding greatly to Hettich’s
innovative features like Pozi Drive and Saw threading. HePo should launch the screws
with Phillip Drive as it will bring down the coast drastically and will cater to the
immediate need of the market.

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(Spillage)*
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5.3 Suggestions for HePo Telescopic channel

5.3.1 Immediate actions required:

 Retailers need to be made aware about their misconception of thickness giving way
to better quality channels and request them to make customers understand the same.
 Network expansion by zeroing in on new retailers in developing areas because as per
my experience, retailers don’t want to stock channels of many different brands therefore
early tie ups with new retailers is key to success both in short and long run.
 The immediate course of action should be to reach out as many retailers as possible and
inform them about a little change in branding of HePo as it now says “HePo- A Hettich
& Poddar JV” which makes the product more saleable.

5.3.2 Long Term actions required:

 HePo should also launch Black channels of their own, as people still believe that black
coloured channels are rust free for a longer time period.
 HePo should also launch channels that come with soft closure.
 HePo should continue with its Distribution Model for channels as the new smaller level
retailers feel more confident about stocking the product.

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5.4 Major Takeaways

 Product knowledge:- During my two month internship at Hettich I’ve come to realise
how Hettich has diversified its products depending upon the demand and need of the
product from market.

 Market knowledge:- During my internship I’ve came to realise how the competitors
have adjusted themselves to Indian market and had made it a lot difficult for Hettich to
survive and compete with its quality but costly products.

 Pricing and Packaging:- Realising the demand of Hettich’s products, the company
launched its new set of screws under the brand name HePo, screws of which were
available at prices 20-22% lesser than Hettich. Most dealers/ retailers’ feared spillage,
so Hettich and many competitors are now coming up with smaller packaging boxes.

 Promotion:- I’ve been exposed to various promotional activities followed by Hettich

and understood that Hettich’s promotional activities mainly target either retailers/
dealers or carpenters. For eg: Gold/ silver scheme targeted dealers/ retailers while
Carpenter Meets targeted carpenters.

 Branding:- Hettich positions itself as a brand that is synonymous with quality, whereas
HePo wants to establish itself as brand that targets retailers that crave for higher margins
while selling superior quality products at the same time.

 Channel of Distribution:- Hettich being an established brand followed both

distribution and dealership model to fulfil its potential to the fullest, while HePo being
a new entrant thrived upon distribution model only.

 Role of distributor:- I’ve came to learn that the role of a distributor is crucial for any
company like Hettich/ HePo to succeed. If a distributor is active then he/ she can affect
the sales in a major way. He/ she need to make sure that he/ she visits market at least
twice or thrice in a week and make sure timely delivery of orders is facilitated.
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5.5 Conclusion

My 2 month internship at Hettich India Pvt. Ltd. was a lesson for life. I’ve come to know about
the minute details that Sales Manager should know about.

With a close look at the Fasteners industry, I’ve come to realise that Indian market is still not
ready to fully accept quality rich and expensive Hettich’s screws. Most carpenters here in India
are not educated enough to know or appreciate the quality of Hettich screws. End customers
don’t know much about screws as well.

Indian Fastener market has a huge potential and Hettich has to take leverage of the quality
products it produces by promoting them through various channels in order to get the end
users more aware about quality screws. Hettich also need to make Carpenters more aware
about the screws it produces through 1-2 carpenter meets in a week.

Although Hettich’s products are expensive but with time Hettich has formed a very loyal
customer base in India. Customers, who seek for quality products never look beyond Hettich,
be it for screws or any product.

HePo on the other hand has a massive potential at their disposal as they’re backed by well
known brand Hettich and prices of their products are set taking into consideration Indian
market conditions. HePo’s Telescopic channels come up with packaging where it’s clearly
mentioned “HePo- A Hettich & Poddar JV”. This makes sure the product guarantees quality
products at reasonable prices. With its Telescopic channels HePo targets light weight range
channels which can easily bear weight up to 30kg. With its Screws and Telescopic channels
HePo targets dealers or retailers that only look for margins in products.
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