SUMMER TRAINING REPORT

ON
CONSUMER BEHAVIOR TOWARDS LUXURY
SANITARY WARE AT

REPORT SUBMITTED TOWARDS PARTIAL FULFILMENT OF

THE REQUIREMENT OF MASTERS OF BUSINESS
ADMINISTRATION FROM BHARATI VIDYAPEETH DEEMED
UNIVERSITY INSTITUTE OF MANAGEMENT AND
RESEARCH, NEW DELHI

UNDER THE GUIDANCE OF: SUBMITTED BY:

DR. ANJALI SHARMA ADITYA GANDHI

Faculty Guide Roll No. – 0181MBA064

 Bharati Vidyapeeth (To Be Deemed) University, Institute of Management &
Research, New Delhi
An ISO 9001:2008 14001:2004Certified Institute
A-4, Paschim Vihar, New Delhi – 110063 (Ph.: 011-25284396, 25285808 Fax: 011-25286442)

Certificate of Originality

This is to certify that the Summer Training Project Report Titled “CONSUMER BEHAVIOR
TOWARDS LUXURY SANITARY WARE AT EROME”. Submitted to Bharati Vidyapeeth
Deemed University Institute of Management and Research, New Delhi in partial
fulfillment of the requirement for the award of the MBA is an original work carried out by
“ADITYA GANDHI” under the guidance of “DR. ANJALI SHARMA”. To the best of Project
guide’s knowledge and belief the matter embodied in this project is genuine work done by the
student and has been submitted neither to this University nor to any other University for the
fulfillment of the requirement of the course of study.

DR. ANJALI SHARMA

 Bharati Vidyapeeth (To Be Deemed) University, Institute of Management &
Research, New Delhi
An ISO 9001:2008 14001:2004Certified Institute
A-4, Paschim Vihar, New Delhi – 110063 (Ph.: 011-25284396, 25285808 Fax: 011-25286442)

Certificate by Director BVIMR

This is to certify that the Project titled “CONSUMER BEHAVIOR TOWARDS LUXURY
SANITARY WARE AT EROME” is an academic work done by “Aditya Gandhi” submitted in
partial fulfillment of the requirement, for the award of the Degree of Course from Bharati
Vidyapeeth Deemed University, Pune. It has been completed under the guidance of “Dr Anjali
Sharma” (Faculty Guide) and Mr. Shikhar Agarwal (Corporate Mentor). We are thankful to
ASHA INTERNATIONAL, for having allowed our student to undergo project work training.
The authenticity of the project work will be examined by the viva-examiner, which includes data
verification, checking duplicity of information etc., and it maybe rejected due to non fulfillment
of quality standards set by the Institute.

Dr.Vikas Nath

Director
 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to Bharati Vidyapeeth Deemed University Institute
of Management and research, New Delhi for imparting us very valuable professional training in
MBA.
I pay my gratitude and sincere regards to Dr. Anjali Sharma, my project guide for giving me the
cream of her knowledge. I am thankful to her as she has been a constant source of advice,
motivation and inspiration. I am also thankful to her for giving his suggestions and
encouragement throughout the project work.
I take the opportunity to express my gratitude and thanks to our computer Lab staff and library
staff for providing me opportunity to utilize their resources for the completion of the project.
I am also thankful to my family and friends for constantly motivating me to complete the project
and providing me an environment, which enhanced my knowledge.

Name: ADITYA GANDHI

Enroll. No.: 0181MBA064
Course: MBA II-B

(Signature of the student)

 CONTENTS
Chapter 1: Introduction

● Overview of Industry 7

● Profile of the organisation 16

➢ Vision 17

➢ Mission 17

➢ Competitors 18

➢ SWOT Analysis 25

Chapter 2: Job Description 26

Chapter 3: Job Analysis 29

Chapter 4: Learning Outcomes 33

Chapter 5: Suggestions 34

Bibliography 38
 Executive Summary

This project deals specially with the behavior of end consumers of luxury sanitary ware. Today
faucets & showers are no more just the requirement for the consumer, but a luxury commodity.
India is a growing market touching world standards in sanitary market. With the advent of local
guerillas in sanitary market, competition for a new entrant is tough in lower segment. Since
upper middle class income group in South Asian countries like India is growing very rapidly, the
consumption of luxury item will also increase at a faster pace .Indian Sanitary ware industry is
worth $ 700 million.

We have focused on the brand awareness among builders, contractors, architects and end
consumer and tried to sneak into those factors which they look for while buying any sanitary
product. We also found out what are those cues and parameters which are prompting a consumer
from awareness to consideration. During this we also made some viral advertisement to create
awareness among Indian buyers. Since internet today, is the most cost effective and extensive
reach for consideration set. Amid we also studied distribution channel for the EROME and its
competitors. Report contains detailed analysis of distribution channel of EROME India Pvt. Ltd.
Our study area is Delhi.
Chapter 1:

Introduction

1.1 Overview:

B athrooms and kitchens were once considered just as one portion of home where people
usually visit early in the morning to perform their daily routine. But today they are one of
the important considerations for a buyer when he buys is flat or builds one for him. Today
various sanitary companies across globe are providing innovative & creative solutions to their
consumers. Bathrooms are becoming more and more intelligent & eco friendly which not only
saves water but also gives unbelievable facility to their users. Bathrooms are becoming comfort
zone today. From faucets to showers, cisterns to waterless urinals, each & every equipments are
being designed to give more comfort.
The global sanitary ware market is expected to witness significant growth, owing to increase in
construction activities and rise in need for commercial and industrial establishments. Increase in
urbanization, high disposable incomes, and discretionary spend are expected to drive the sanitary
ware market growth. In addition, the emergence of concept bathrooms has supplemented the
growth of the sanitary ware industry. This, in turn, has increased the replacement rate of sanitary
wares across the globe.

The sanitary ware market is also projected to witness high growth in developing countries, such
as India, China, Brazil, and others. In India, the sanitation programs and impetus on construction
of toilets through the Swachh Bharat Abhiyaan program have increased the growth and
scalability of the sanitary ware industry. In addition, high demand under the aforementioned
schemes has largely benefited the sanitary ware industry. The ceramic segment, which holds the
major share in the global sanitary ware market, is expected to witness the highest growth in
terms of value and volume during the forecast period. Asia-Pacific is also anticipated to witness
decent growth during the forecast period. Nonetheless, environmental concerns coupled with
stringent regulations related to CO2 emissions are expected to hamper the market development.
Key Findings of the Sanitary Ware Market:

 The toilet sink/water closet segment was the highest contributor to the global sanitary
ware market in 2017 and is projected to grow at a CAGR of 3.5%.
 The pedestal segment is the quickest-developing segment enlisting a CAGR of 6.1%
during the forecast period.
 In 2017, North America accounted for almost 25% of the share in terms of value in the
global sanitary ware market and is projected to grow at a CAGR of 4.5%.
 In 2017, Asia-Pacific was the top region regarding quality and volume and is projected to
grow at an astounding CAGR of 5.9% from 2018 to 2025.
 China accounted for the highest sanitary ware market share of approximately 26.2% in
the Asia-Pacific region, in 2017.
 In 2017, the ceramic segment accounted for 80% of sanitary ware market share and is
expected to grow at significant CAGR of 5.4%.
In terms of value, Asia-Pacific, MENA, and South America collectively contributed more than
53% share in the global sanitary ware market in 2017. Some of the key players in the global
sanitary ware market are CERA Sanitaryware Limited, Corona, Geberit AG, HSIL Limited,
Jaquar Group, Kohler Co., LIXIL Group Corporation, LAUFEN Bathrooms AG, Lecico Egypt,
and Roca Sanitario, S.A.

The sanitary industry in India is neglected in early nascent stage but now is creating news with
many international players are entering into the market with their ground-breaking out of the box
solutions. Indian Sanitaryware industry is currently in its growth stage. Indian sanitary market is
currently leaded by Hindustan Sanitary Ind. Ltd. (HSIL), EID Parry’s comes next. The other
major players are Cera, Jaguar, Marc etc. The market statistics have become interesting after the
introduction of international brands into the market through joint ventures. Name a few are Toto
from Indonesia and American Standard from Thailand, Hans Erome ,Erome AG both from
Germany, Sanitec Group of Finland .HSIL has roped in Hans-Erome, Sanitec group to complete
its product range.
Although market has huge potential but all International brands comprise of only 10% of total
market pie. But with their presence felt in market, Indian companies are making aggressive
moves. In past 12 months Hindware has launched around 50 products. Cera not being behind has
provided its product in more than 18 colors range.
So what is it that is attracting many international brands to the country? The reasons are high
augmentation of still to be penetrated higher middle income group in the country, & unparalleled
growth of infrastructure. If words of an industry expert are to be believed only Faucet market in
India is of around $ 200 million alone. These companies’ products are two to seven times more
expensive than Indian products but in the near future they will be setting up production unit in
India also. Companies are trying to capture the emerging market with new pioneering ideas of
marketing with emphasize on customer service.

Factors, such as rise in construction activities in developing countries, increase in concerns

related to health & hygiene, and availability of abundant raw materials, propel the growth of the
sanitary ware market. In addition, factors, such as a healthy lifestyle, disposable income of
consumers, surge in urbanization, growth in shift from unbranded products to branded products,
and strong replacement demand, have supplemented the growth of the global sanitary ware
market. However, stringent government regulations are anticipated to hamper the sanitary ware
market during the forecast period. Supportive government initiatives, such as Pradhan Mantri
Awas Yojana (PMAY) and Swachh Bharat Mission for infrastructure development, both in
urban and rural areas are expected to offer future growth opportunities in developing countries,
such as India, to the sanitary ware market players.

During my tete-a-tete with various Builders and Senior persons I came to know that today’s
consumer is very brand conscious, and he look for branded instrumentalities whenever come to
visit sample house. “Today’s consumer is very intelligent and knows one n’ all brands.
Sometimes they demand one brand over other.” Companies taking cues from these ideas are
trying to cross the threshold of consumer mind.
1.2 Indian Sanitaryware Industry:

The sanitaryware industry in India is divided in two sectors:

 Organized Sector
 Unorganized Sector

The organized sector consisting of 5 companies (M/s. Hindustan Sanitary Industries Limited,
M/s. E.I.D. Parry, M/s. Swastik Sanitarywares Limited, M/s. Madhusudan Ceramics, M/s.
Neycer India Limited), manufacturing sanitaryware for the last 15-20 years and have established
their Brand image. The organized sectors produce fully vitrified sanitarywares, using latest
technology and best of Ceramic Raw Materials available in India.

The unorganized sectors have adopted local Indian technology to manufacture the basic
sanitaryware products. Since the availability of raw material is in abundance and also very cheap
in the state of Gujarat & Rajasthan, various companies have established their factory in these
areas. They are producing the basic sanitaryware in various brands. Unorganized sector's
percentage of production capacity and also their sales in the local domestic market are higher
than that of the organized sectors' sales. Unorganized sanitaryware manufacturer comes under
small sectors and hence enjoy the benefit of Nil Excise Duty and Sales Tax and hence they sell
their products in the domestic market approximately 70% cheaper than the organized sector
products.

In the next decade, India is expected to be one of the world's fastest growing countries for
sanitaryware consumption. The sanitation penetration has more than trebled from 8% in 1982 to
18% in 1994 and to 29% in 1999. The comparative penetration levels in neighboring countries
are as follows: Pakistan: 50%, Sri Lanka: 65%, Malaysia: 94% and Thailand: 96%.

The government impetus to improve hygiene and sanitation is likely to increase the demand for
sanitaryware in India. Moreover the increasing urbanization of India and the consequent
requirement for residential and commercial buildings will be a major driver for growth of
sanitaryware. Along with this the focus of the central and state governments to provide housing
facilities to the poor, is also expected to generate demand.

The National Housing Policy formulation that envisages "Housing for all" by the end of Ninth
Plan period is a big step towards this. Indira Awaas Yojana, Samgra Awaas Yojana are programs
for providing housing to the rural poor is a key step taken by the government in this area. The
housing development organizations like HUDCO, State Housing Development Boards and Rajiv
Gandhi Rural Housing Corporation Ltd. are also playing a large role in this initiative.

It is estimated that there is currently a demand for 20 million housing units in India. Further, a
significant number of the 115 million housing units across the country will need reconstruction
for improvement. Therefore a replacement market will emerge, though currently original
equipment sanitaryware market accounts for nearly 90% of the market.

Sanitaryware demand

Sanitaryware Industries in India for the last 6-7 years have shown very dramatic growth with
major players doubling their production capacity. The Companies have also upgraded their
manufacturing system by introducing Battery Casting, Beam Casting and have gone in for latest
imported Fast Firing Cycle Kiln Technology. These Companies have also upgraded their quality
and have introduced high value range in the market, which has been accepted and appreciated.
The demand for high value Sanitaryware in India is growing very fast. The Companies are trying
to meet the demand as the realization per Metric Ton for high value product is very good which
ultimately results in good profitability. In order to educate the customers in India to go for
quality products and also for higher value sanitarywares, companies have adopted a very
aggressive advertisement campaign. Companies have also strengthened their dealer network by
offering showroom incentives and some of the companies have also gone for their own retail
outlets in major towns. The demand for Sanitarywares in India is growing @ 15% -17% every
year.

Indian customers are gradually purchasing more premium and high technology products for their
bathrooms due to increase in the spending power with increasing environmental awareness,
customers are moving towards eco-friendly sanitary-ware and bathroom fittings that help in the
conservation of water The premium segment is estimated to comprise about 10 to12% of the
total market.

The sanitary ware and bathroom fittings industry in India together is estimated to be valued
around 427 million USD in 2018. The sanitary ware segment is estimated to be valued
approximately 124 million USD in 2014 while the bathroom fittings segment is estimated at
approximately 303 million USD in 2014. The Indian sanitary-ware market accounts for 8% of
the global production and ranks second in terms of volume in the Asia-Pacific region. The
government initiatives and boom in the real estate sector will further contribute to the growing
demand of sanitary ware and bathroom fittings products in the country with the grow at the
CAGR (compound annual growth rate) of about 12.5% and 15% respectively between 2019-
2020. The demand for sanitary ware is highest in residential sector followed by demand from
commercial sector including malls, hotels, and hospitals.
1.2 Problems of the Industry:

International brands are making their presence felt by their novel offerings and giving value to
the consumer money. Mostly they are targeting the upper segment of market and keeping their
eye on high end customers who do not mind to give some extra in order to get a bathroom of
their dreams. They are putting a lot of weight over their past experience, in the world market.
Sanitary ware companies are getting into entire bathroom solutions in order to provide their
customers with a one-stop-shop. Cera & Hindware are coming up with studios which will help
them establishing them as premium brands in country. Erome is backed with a full gamut of
products. Its faucets range from Rs.2, 000/- to 20,000/- . But they are promoting themselves as a
finest International brand available in India. Hindware had just at home with a new concept
saying Bathrooms are no more Bathrooms, but glamourooms. Although this concept is not new
but is still able to catch the attention consumers.
Distribution channels today are backbone of any industry. In this industry developing
distribution channel is a big challenge. Margins are really low with infuriating prices of raw
materials. Companies winning strategy is to play with their operations. Companies like Erome
have adopted practices which are helping them to make their process more efficient. Erome
lean® came up emulating Toyota Production system which cut their waste by unbelievable 35%.
Parry’s are working on intelligent supply chain systems taking help of an IT company. So cutting
cost, not raising price is the real mantra.
During survey I came to know some interesting facts like builders are providing not only
branded fittings but also in some cases let the buyers choose from selected products. This is
interesting because now even builders know the preference of their consumers and providing
them what they want. This even helps builders to select a product for future projects. Finding
their preference to select a brand we come to know that affordability is at higher priority & a big
concern for them. Brand image of any product is also looked at.
To reach their target audience and to communicate the right message in the right manner is the
major concern for any company. Companies are using various ways for promotion like
Promotional allowances, Public reviews in newspaper, magazines and advertisings. But one
thing that gained my attention is “word of mouth”. People use what people believe in. They even
recommend others to use what they have trusted. Other promotional tricks are warranties &
service contracts. I find out builders in Delhi region are having affinity for a product because of
their service support.
Today everyone wants his consumer to be happy and satisfied so that he will become a repeat
consumer of that product. Bathroom appliances are durable goods, so they are bought once in 6-7
years or until renovation take place. So keeping customers tracked and building a long term
relationship must be worked out.
1.3 Profile of the company:

Erome Sanitaryware Limited, India’s fastest growing company in the segment. Keeping the
needs of the modern customer in mind, EROME opens the doorway to the world of style.

An extensive product portfolio that includes high end showers, steam cubicles, and whirlpools,
besides sanitaryware and faucets, has made EROME the primary choice of customers looking for
stylish products in a contemporary lifestyle. EROME’s constant innovations have given several
path breaking contributions to the industry. Some of its innovations have become benchmarks for
the industry–like water-saving twin-flush coupled WCs, 4-litre flush WCs, and one-piece WCs.

Advanced technology has been the forte of EROME. Its state-of-the-art manufacturing plant has
been following the highest standards of quality with an emphasis on sustainability .The EROME
plant was the first to use natural gas – the purest fuel that gives extra sheen on products.

Production capacity of sanitaryware has raised from 2.70 million pieces to 3.0 million pieces per
annum, EROME plans to maintain its leadership status in the industry, while catering to
increasing demands with satisfaction.

EROME endeavors to provide complete bath solutions to its customers. Pursuing this objective,
EROME has launched a range of elegant faucets, designed with style and expertise. A modern
facility with latest machinery like automatic CNC machines & automatic polishing, the plant is
equipped with superior technology manufactures the avant-garde collection of eco-friendly
single lever faucets apart from the normal half turn & quarter turn faucets.
1.4 Vision, Mission & Objectives:

 MISSION:
EROME endeavors to provide complete bath solutions to its customers. Pursuing this
objective, EROME has launched a range of elegant faucets, designed with style and
expertise. A modern facility with latest machinery like automatic CNC machines &
automatic polishing, the plant is equipped with superior technology manufactures the avant-
garde collection of eco-friendly single lever faucets apart from the normal half turn & quarter
turn faucets.

 VISION:
To understand the client’s needs and become accustomed to the market ever-changing
requirements. To innovate and implement fresh designs in tile range that inspire your senses.

 OBJECTIVES:
 Passionately strive to enrich customer's quality of life, thereby enhancing stakeholder
value.
 Setting benchmarks in operational processes.
 Setting benchmarks in operational processes.
 Provide best-in-class experience to our customers.
 Foster innovation in our processes and products to create and deliver value.
1.5 Competitors:

The major players in the Indian Sanitaryware Industry are:

 Hindustan Sanitary ware Ltd.

 Cera Sanitary ware Ltd.
 Parryware Roca

The sanitaryware industry in India is currently pegged at Rs35.6bn. The top three domestic
players – HSIL, Cera Sanitaryware (CRS) and Parryware Roca (PR) – account for ~45% of the
industry size and over 65% of the organised sanitaryware space. Over 60% of the market is
estimated to be dominated by the organised players which includes MNC brands as well.

Market FY18 Size (Rs bn) Overall market share Organised market share
share
HSIL 6.3 18% 26%

CRS 4.4 12% 18%

PR 5.5 15% 23%

Market share of top three domestic players

1.5.1 Hindustan Sanitaryware Ltd. (HSIL)

Set up in 1960 as Hindustan Twyfords Ltd, with a technical collaboration with Twyfords UK, to
introduce vitreous china sanitaryware in India. The company was subsequently renamed
Hindustan Sanitaryware and Industries Limited in 1969 and HSIL Limited in 2009.

Over the decades, the flagship brand 'Hindware' has emerged as a leading Indian sanitaryware
and faucet brand driven by consistent innovation. In FY 2015-16, the company decided to enter
into the synergic domain of plastic pipes and fitting under the brand name 'TRUFLO by
hindware' in agreement with ~USD 10 billion Japanese conglomerate Sekisui Chemical Co. Ltd,
to provide end-to-end bathroom solutions to our customers Leveraging brand equity and vast
distribution network, the company diversified into the Consumer Products space by introducing
kitchen appliances under the brand 'hindware Kitchen Ensemble'. The product portfolio was
expanded by launching water heaters, in collaboration with Euro 1.6 billion Groupe Atlantic of
France, the global leader in heating solutions. With both these categories performing
exceptionally well, purification products under the brand 'Moonbow by hindware' to offer air and
water purifiers and air coolers under the brand 'hindware Snowcrest' were launched. The
company has recently done an agreement with Formenti E Giovenzana of Italy for the
distribution of furniture functional hardware fitting products in India.

The product offerings were further expanded to include home furniture, soft furnishings, home
decor and accessories, wall fashion, modular kitchens and modular wardrobes by launching a
chain of large retail format stores under the brand 'EVOK'.

The company acquired Associated Glass Industries Limited (AGI) in 1981and entered the
Packaging Products business. PET bottles business was added through the acquisition of Garden
Polymers Private Limited (GPPL) in 2011.

HSIL Limited is among India's top 500 companies as listed in the 'Fortune India 500' 2018 list.
Currently, HSIL has four distinct business segments, namely the Building Products Division
(BPD), Consumer Products Division (CPD), Retail Division and Packaging Products Division
(PPD).
Largest sanitaryware player in India with strongest brand pull:

HSIL is India’s largest player in the sanitaryware space, with an organised market share of 26%.
‘Top of the mind recall’, strong presence in the premium segment and large nationwide
distribution network make it the best and largest player in the branded sanitaryware industry.
HSIL markets its products under the umbrella brand Hindware.

Focus on retail:

Over the years, with its aggressive brand spends and focus on retail, Hindware is perceived as the
strongest retail brand in the sanitaryware space. In FY16, retail sales accounted for 85% of the
company’s sanitaryware segment revenues while the balance consisted of institutional/project
sales. Within its branded portfolio, Benelave is largely showcased as a project brands while
Hindware, Hindware Art, Hindware Italian Collection and Queo are largely retail brands. Brand
Queo is positioned as the luxury brand while Hindware Art and Hindware Italian Collection are
premium brands.

Moving up the value chain through premiumisation:

Over the past decade, contribution from premium and luxury products has increased from 27%
of HSIL’s revenues in FY07 to 60% in FY16. This has resulted in the company having a strong
margin profile vis-à-vis its immediate listed peer – CRS, which focuses largely on mass market
products.
1.5.2 Cera Sanitaryware Ltd.

These three words capture the essence of Cera Sanitaryware Limited, India’s fastest growing
company in the segment. Keeping the needs of the modern customer in mind, CERA opens the
doorway to the world of style.

An extensive product portfolio that includes high end showers, steam cubicles, and whirlpools,
besides sanitaryware and faucets, has made CERA the primary choice of customers looking for
stylish products in a contemporary lifestyle. CERA’s constant innovations have given several
path breaking contributions to the industry. Some of its innovations have become benchmarks for
the industry–like water-saving twin-flush coupled WCs, 4-litre flush WCs, and one-piece WCs.

Advanced technology has been the forte of CERA. Its state-of-the-art manufacturing plant has
been following the highest standards of quality with an emphasis on sustainability since its
inception in 1980. The CERA plant was the first to use natural gas – the purest fuel that gives
extra sheen on products. Production capacity of sanitaryware has raised from 2.70 million pieces
to 3.0 million pieces per annum, CERA plans to maintain its leadership status in the industry,
while catering to increasing demands with satisfaction.

CERA endeavors to provide complete bath solutions to its customers. Pursuing this objective,
CERA has launched a range of elegant faucets, designed with style and expertise. A modern
facility with latest machinery like automatic CNC machines & automatic polishing, the plant is
equipped with superior technology manufactures the avant-garde collection of eco-friendly
single lever faucets apart from the normal half turn & quarter turn faucets.

Foraying into a new arena, CERA also launched an array of stylish wall and floor tiles. The
range includes HD digital wall tiles with matching floor tiles, digital glazed vitrified tiles, and
vitrified tiles with nano technology.

Growth has remained uninterrupted, only outperforming itself. CERA has grown at a robust
23.80% in 2014-15 when compared with 2013-14. For CERA, its responsibility does not end by
manufacturing quality products. A team of over two hundred technicians across India provide
prompt after-sales services to its customers.
In keeping with its tradition of innovation, CERA has been presented the Gold Award in the
bathroom & fittings and sanitaryware category by the Readers’ Digest Trusted Brand Survey.
CERA has also bagged the Product of the Year award for four years in a row, for Cerenity in
2014, Sanitaryware & Bathroom Fittings in 2013, Nano Technology in 2012 and for the Snow
White Range in 2011. CERA was conferred Power Brand for two years, in 2012 and 2013,
which is awarded to top 100 brands in the country. CERA received Asia’s Most Promising Brand
award for the year 2012-13.

With CERA, style blends with innovation to reveal a new dimension of modernity. CERA –
Reflects your style.

Cera Sanitaryware (CRS), a Gujarat-based company, is the third largest sanitaryware company in
India. It has a state-of-the-art manufacturing plant located at Kadi, Gujarat capable of
manufacturing 3mn pieces of sanitaryware products per annum, making it a largest facility at a
single location in India. It also entered into manufacturing of faucets from FY11 with a current
manufacturing capacity of 7,200 pieces per day, scalable up to 10,000 pieces per day.

CRS has also been trading in tiles through vanilla outsourcing model since FY13. However, it
recently acquired 51% stake in ‘Anjani Tiles’ in Andhra Pradesh; it has a capacity to
manufacture 10,000 sq-m per day of vitrified tiles per day. The company also has presence in
wellness products (through vanilla outsourcing model) comprising bathtubs, Jacuzzi, steam
cubicles, shower partitions, shower panels and allied sanitaryware products like cisterns and seat
covers.

It has also added new product categories like mirrors, kitchen sinks and personal care products
like hand dryers, hair dryers, soap dispensers, ceramic and chrome plated bath accessories, et al.
With this, the company is now positioning itself as a complete bathroom solutions provider by
leveraging its growing brand awareness and widespread distribution network.
1.5.3 Parryware Roca

Parryware India’s leading manufacturer of bathroom products, originated from EID Parry, one of
the country’s oldest and most reputed business entities. In 2006, it entered into a joint venture
with Roca Corporation, Spain, became a Roca Group subsidiary in 2008 and turned into a
wholly-owned subsidiary of the Roca Group in 2011.

The journey started in 1952 when Parryware started under EID Parry in Ranipet. The company
joined hands with Royal Doulton in 1960 and inaugurated a new casting unit in 1976. Change
came knocking in 1980 when Muruguppa group took over Parryware brand. Five years later, in
1985 a revolution was born in shape of the Cascade range of closets which upgraded Parryware
from just a bathroom product manufacturer to a brand that stood for glamorous bathrooms. Roca
group took over Parryware in 2006 and the growth story continues with increased production
prowess (8 plants) and deeper penetration into the Indian market

Evolution

With the Indian Sanitary ware market growing and with large international players entering the
market, the group saw a huge opportunity, and in 2006 spun off Parryware– till then a division of
EID Parry, into a separate 50:50 JV with the world’s largest sanitary ware manufacturer from
Spain Roca Sanitario. With two powerful brands – Parryware and Roca the company Parryware
Roca Private Limited has improved its market presence and share in the last two years.

Recently, Roca has expressed its desire to increase its stake in the company. The Murugappa
group has expressed its willingness to sell a further 47% stake to Roca and is now a part of Roca
Sanitario, Spain.
Market Standing

Parryware has manufacturing facilities at Ranipet in Tamil Nadu, Alwar in Rajasthan and Dewas
in Madhya Pradesh. Sanitary ware products are marketed under the trade name "Parryware" and
"Johnson Pedder". The Company also markets a complete range of bathroom accessories
including taps. The market share is 26%. Parryware not only provides bathroom solutions to
millions of homes in India, but its significant presence is also seen in the overseas markets of
South Africa, Sri Lanka, the Middle East and a host of other countries. The global stature of
Parryware Roca was further established when Ceramic World Magazine ranked it as the 10th
best sanitary ware manufacturer in the world in 2007. Parryware was the first and only
sanitaryware manufacturer in India that was conferred initially as “Superbrand” and
“Powerbrand” in 2011.

Parryware has a gamut of product ranges that include vitreous sanitary ware, seat covers, plastic
cisterns, bathtubs, kitchen sinks, electronic flushing systems and an imported range of bathroom
products. After setting benchmarks in the sanitary ware industry, Parryware is now transforming
itself into a total bathroom solutions provider. Currently Parryware is having 5 manufacturing
units located at Ranipet, Perundurai, Alwar, Dewas & Bhiwadi. The brand has aligned itself with
5 brand values to stay relevant with the changing times and continue leadership in the standard
segment. These brand values are: Trust, Practical, and Contemporary, Value for money and
Youthful. With a clear focus on the present and a strong sense of tomorrow Parryware continues
to dominate the industry and maintain its status as the premier bathroom solutions brand.
1.6 SWOT Analysis of EROME Sanitaryware Limited:

Strengths Weaknesses
 Operates in various bath verticals like  Less presence
sanitary wares, shower, heater,  Limited market share
bathroom fittings etc  Company is in its early stages
 Is an Indian brand and knows the  Distribution network is not strong
domestic market
 Provides sanitary ware products at
competitive prices
 Imports raw materials from countries
like China to cut down on costs

Opportunities Threats
 Can build up strong distribution  International players in the
network sanitaryware market
 More advertising through TV and  Competitors are offering lucrative
online medium schemes to distributors
 Can decrease the prices of their  Government policies keeps on
products further changing
Chapter 2:
Job Description

1. To understand the consumer’s buying behavior of luxury sanitary products.

Luxury Sanitary equipments are altogether a niche market of sanitary products and it is
raising with 12% per annum in Asian countries. Our objective is to study the typical buying
behavior of the prospective consumers and trace out those peculiar attributes which gives a cue
to a consumer to finally decide to buy a bathroom appliance.

2. To prepare a database of future customers of Erome products.

Delhi is a region which is 4th fastest growing city in the country. Currently there are more
than 500 big projects of townships & villa, row houses, & five star hotels are running. Preparing
a database of big builders and architects was one of the important task assigned to me during
internship. The area assigned to me is Delhi municipal corporation region only.

3. To do a competitor analysis of Erome India.

Knowing your Competitors inside out is as important as knowing your consumers. Erome
is facing stiff competition from many big as well as local brands in the market. A comprehensive
analysis of competitors will tell us about their big strength as well as their weakness, & last but
not the least weakness in their strength on which Erome can capitalize upon when making its
marketing strategy.

4. To study supply chain of Erome India.

Erome is a new entrant into the Indian market, still a big brand in Europe and other parts of
World. Erome has taken help from IBM to implement logistics networking planning tool to build
a case of reducing the number of its Regional Distribution centre (RDC) in European network.
But in India it is still a distant dream. Although in year 2008 Erome has around 70 distributors
across India & is going up to 100 by Dec. 2009.

5. To develop an advertisement for Erome India.

Although this task is not in original list, I appended it later as I start generating the feel of
what generally the luxury bathroom fittings generally mean for its customer. It’s sheer pleasure,
status, & lavishness attached to it.
Defining Management Problem

Any research process helps decision maker to make a decision with high probability.
Even degree of uncertainty decides what kind of research to be undertaken. To identify all the
dimensions of a business problem is next to impossible for any researcher or objective rest alone
management student. The formal quantitative research will not begin if the management problem
is not apparent. So it is important to define a problem first in a comprehensive manner. But here
the Iceberg principle is worth mentioning, which states that dangerous part of the business
problem is neither visible to nor easy to understand by managers.

The management problem can be avowed as

“Since Delhi is a big break for Erome India to establish its Brand, the major apprehension of the
company is ‘to understand buying behavior of consumer’ & ‘to communicate the message in
most effective manner’”.

For this reason it is necessary to comprehend the atypical behavior of end user. Obj.1
will assist us to figure out what today’s consumer think of when they buy bathroom equipments.
This will help us to create a stimulus among them by giving them faithful cues. These cues can
impel them to purchase a Erome. In the intervening time a database will be prepared while
getting in touch with and collecting data from various builders and high-flying customers.

We have to design certain Hypotheses on a range of research objectives. These research

objectives will put in the picture of purchasing deeds of customer in lucid way. A questionnaire
need to be prepared consist of questions marking those hypothesis and objectives. Again it is
important to lay bare the symptoms and identify the core problem of the business. So it is needed
to gather lots of background information from primary or secondary sources. I talked with my
company guide about the industry and product position in the market and search internet
exhaustively to accumulate information about whereabouts of the industry.

In Delhi Jaquar & some other brands came out as clear leader for C.P. fittings. Obj.3
is to do a competitor analysis of Erome. Studying the weakness of Jaquar and targeting them will
become possible. I’ll try to find out any lacunae in their service channel or product portfolio to
which Erome can target.

Unit of Analysis:

For defining the management problem we will require the unit of analysis for study. Here
we will see what is to be considered an individual, or organization as a whole for the purpose of
collection of data. Since we are collecting data from big construction firms from Delhi region as
well as from individual prominent customers, it is better to deem the unit of analysis for data
collected from builders as organization and for high-flying consumer as individual.
Determining relevant variables:

It is inevitable to determine the key variables, in order to define a management problem.

Variables for this research mostly related to the buying behavior of the consumers.
The variables affecting the customer choice for a particular product, their affinity towards a
brand after long use are to be considered. The variables will help in deriving certain research
questions.

1. Brand image
2. Ease of use
3. Aesthetic value
4. Functional value
5. Affordability
6. Advertisements
7. Renovation
8. Sources of advertisements
9. Income group
10. Willingness to spend.
Chapter 3:
Job Analysis

3.1 Qualitative Analysis

Qualitative analysis uses subjective judgment based on non-quantifiable information, such as

management expertise, industry cycles, strength of research and development and labor relations.
Qualitative analysis contrasts with quantitative analysis, which focuses on numbers found in
reports such as balance sheets. The two techniques, however, will often be used together to
examine a company's operations and evaluate its potential as an investment opportunity.

 Work Culture
The work culture in Erome is great as I saw through my eyes also I speak to a lot of
members.
There is proper work life balance. They get value for their work. Occasional leaves are
permitted. Promotions are also given to deserving employees.
Also Pressure is there as every executive requires to complete his/ her sales target but the
seniors are always supportive. Also the incentive structure is very good as told by
employees.
There is no dress code. Executives can come in formals and smart casuals. Also in every 3
month a party is organized in pubs and disco by office seniors so that staff can enjoy.

 The way employees see the company

Employees love working in the company as they think that company gives respect to their
work in terms of both salary and promotions. Also Targets get achieved easily as
marketing of the products is strong.
They think if they work hard and company grow , ultimately company will give more
authority and promotions to them.
Also there is no serious dress codes which means an individual can wear what he/she likes
which provides them an opportunity to show their fashion skills.
 Regular official tours and parties are organized so that employees get fresh and more sales
targets can be achieved in next month.

 Educational Qualifications of executives and managers

The executive were divided into junior executive and senior executive. Junior executive
are college graduate freshers whereas senior executives have minimum 1 year work
experience of sales.

Higher level management i.e. managers and VP’s are all MBA’s which a rich experience
of sales and marketing.

 Experienced analysis about people and organization

My personal experience with the people and organization was very good as the seniors
were supportive throughout out my tenure of 6 weeks. They guided me in every sense
possible in order to bring the best in me.
Also about company, company is in a right track as they are manufacturing high quality
products and all these products are easily available in both online and offline channels
or platforms.
Various Stakeholders i.e. customers and employees both are satisfied completely which
means company is going on a right track and with more and more people indulging in
fitness zones the future of company is very bright.

 Working Ambience

The office lies in Gurgaon and it is easily accessible from Delhi Metro.
The ambience of the office is great , it has modern sitting arrangements also with kitchen
facilities . There is total 5 meetings room out of which 1 room has a strength of
 holding 70 executives.

3.2 Quantitative Analysis

 BCG Matrix

It is a corporate planning tool, which is used to portray firm’s brand portfolio or SBUs on a
quadrant along relative market share axis (horizontal axis) and speed of market growth
(vertical axis) axis.

There are four quadrants into which firms brands are classified:

1. Dogs

Dogs hold low market share compared to competitors and operate in a slowly growing market.
In general, they are not worth investing in because they generate low or negative cash returns.
But this is not always the truth. Some dogs may be profitable for long period of time, they may
provide synergies for other brands or SBUs or simple act as a defense to counter competitors
moves.

For example- Erome toilet seats and basins

2. Cash cows
Cash cows are the most profitable brands and should be “milked” to provide as much cash as
possible. The cash gained from “cows” should be invested into stars to support their further
growth. According to growth-share matrix, corporates should not invest into cash cows to induce
growth but only to support them so they can maintain their current market share. Again, this is
not always the truth. Cash cows are usually large corporations or SBUs that are capable of
innovating new products or processes, which may become new stars. If there would be no
 support for cash cows, they would not be capable of such innovations.
For Example- Erome kitchen sinks

3. Stars
Stars operate in high growth industries and maintain high market share. Stars are both cash
generators and cash users. They are the primary units in which the company should invest its
money, because stars are expected to become cash cows and generate positive cash flows.
Example- Erome bathroom fixtures and faucets

4. Question marks
Question marks are the brands that require much closer consideration. They hold low market share in
fast growing markets consuming large amount of cash and incurring losses. It has potential to
gain market share and become a star, which would later become cash cow. Question marks do
not always succeed and even after large amount of investments they struggle to gain market
share and eventually become dogs.
Example- Erome cisterns and urinals
Chapter 4:

Learning Outcomes

▪ Get to know about challenges and opportunities for bathroom fittings and sanitary ware in
India.

▪ Fulfilling each and every requirement of client is very important regardless of whether that
requirement is small or big.

▪ I learned how to pitch the client while meeting.

▪ I experienced the corporate feeling which gives me a good exposure.

▪ I was able to put in practice what I have learnt in my first year of MMM curriculum.

▪ Leadership quality, it’s all about the impact you have on other people. You need to have
leaders within an organization. Leaders will deal with the customer, project, etc. as a leader.

▪ Healthy Competition forced to do better job the trick is to learn from your competitors
quicker than they can learn from you. Always look for your competitors’ strengths.

▪ Time management is the big management lesson I have learnt as make individual more
divert to words it work.

▪ How to do a formal communication, the way how to communicate with each level of
management to get work done.
Chapter 5

Suggestions

Erome has entered India way back 2 years but still only 4% of the surveyed consumer knows
about it.

Indian consumers are always a hard fish to catch for any local or global company. While Erome
has an exemplary supply chain management in German and European countries, it is still to be
implemented in India. These SCM are maintained by IBM there. With more than 80 distributers
in 7 cities in India and raised to 100 by this year end a diligent logistics software is the need of
hours.

Company is the winner of for three consecutive years for the better quality and competitive
products offered to the consumers. Although Erome is targeting high end consumers in the
country but a brand become big once people begin cherishing it. Erome has even loosen up its
Brand value, because of low awareness of the brand among the population.

We have come up with certain suggestions looking at the study results that are generated through
the analysis of data
1. Brand Awareness is desired to be improved among the consumers

“Seeing is believing” is what they say when it comes to recognition of Brand in this industry.
Today consumer is brand conscious, we are amazed to know that many of the respondents are
aware of more than 8 brand names when asked to respond. Today with the advent of internet and
gradually escalating flow of excessive information end consumers are giving more emphasis on
known names of brands. Indian consumers have a typical tendency to get a word of mouth
publicity of any product. The viral marketing and intensive advertising plan is required for the
development of market share.

In order to plan the advertising campaign this study can be immense help, because it states how
to reach target customers. TV advertisements are the best medium to get in touch and
communicate to the end consumers while news paper, magazines are better sources to be in
touch with the other major stake holders of industry like builders, architects, etc.

2. An installment scheme for the Erome customers is to be introduced

We can evidently say through this study that large base consumer of the country is not ready to
invest more than 100,000 in the bathroom appliance. This is the total money which they can
invest over a single bathroom which include tiles for walls and floor, fresher fans, and other
garnishes with faucets and sanitary fittings. So it’s better to give options of more than one
installments payments to the consumers
3. The delivery of high technology quality product with lesser glitches is to be
assured.

Erome’s biggest competitors in Indian faucet market is Jaquar and the reason that I come to
know about, why the builders, plumbing contractors and individual household like to trust Jaquar
is it’s after sales service. I am being told that if there is any technical glitch in the product then
Jaquar engineers personally come to attend it , and replaces the faulty piece without any trouble.
This after sales service is a competitive advantage of Jaquar over its competitors. Erome, a
German company should place itself as company with high technology products into the minds
of the consumers with greater emphasis on high quality product delivery.

4. An after sales service force is considered necessary to be developed.

Amid they can also start training Plumbing contractors and give them authorized service
dealership for specific Erome products. Since Erome involve German technology in their
products which is reliable as well as complex to understand, a continuous training program for
these dealers is to be made. An all India toll free service no. is to be provided to the consumers
for service or maintenance of any Erome Product. This force need to be as competent as to be
fore front of the service.

5. Search engine marketing of Erome website is rudimentary.

Internet today is a strong and cost effective medium to reach a concentrated audience. When
asked about whether the responders’ have mail id and uses internet about 87% of the respondents
speak affirmative and more than 70% of them uses internet twice a week. We are assuming that
any average web surfer use search engines 12 times a week one or other search engines.
According to An interesting statistics which came out soon after the release of ET report which
stated that there are 81 million Internet users in India.

6. Implementation of major SCM software.

Already implemented across many countries in Europe, Supply chain management is

prerequisite for a company to flourish. Distributors need to be informed about the consumer
demands & accordingly replenished. Today no distributor want a product with low mobility, So
keep low volume with them and rest to be stored at Central state distribution system.

But it’ll be beneficial to store material near to places where demand is high i.e. near to the
customer.
Bibliography