ankush project (repaired) (2)
DESCRIPTION
a project on spacewood furniture by Ankush UpanvanshiTRANSCRIPT
AProject ReportOn
“A Study Customer Satisfaction & Brand Preference of Plywood Furniture Industry in
India”
at
Spacewood Furnishers Pvt. Ltd.
Nagpur
Project Report Submitted in partial fulfillment of
Requirement for the award of the degree of
Master of Business Administration (MBA)
To
University Of Pune
Submitted by
Ankush Rajan Upwanshi
MBA (Marketing)
(2012-2014)
Under the guidance of
Prof.AsmitaPatwe
MATRIX EDUCATION FOUNDATION
MATRIX BUSINESS SCHOOL
VADGAON (BK), PUNE-411041
Preface
The objective of training is to help the student understand business environment well
and equipped themselves with the work culture of companies in the present era.
I,Ankush Rajan Upwanshi take the opportunity to introduce the reader to the outline of my project on “A Study Customer Satisfaction & Brand Preference of Plywood Furniture Industry in India “atSpacewood Furnishers Pvt. Ltd., Nagpur.
The 8 weeks period from27th may 2013 to17thJuly 2013give me an in depth exposure
in the field of Plywood Furniture Industry.
During my Project my main focus was to get maximum real work life experience
which can help me in long run and I am satisfied that I have achieve the target.
DECLARATION
I, hereby declare that the Project Report entitled “On Plywood Furniture Industries
in India from Spacewood Furnishers Pvt. ltd.”is an original and authentic work done by
me. This project is being submitted in partial fulfillment of the degree of Master of Business
Administration from “Matrix Business School”.
The content of this project is based on the information collected by me during my
tenure at “Spacewood Furnishers Pvt. ltd.” at Nagpur; Maharashtra for 2 months of
training 27th may 2013 to 17th July 2013
Place: Pune Mr. Ankush Rajan Upwanshi
Date: Master of Business Administration
(Marketing)
The Matrix Educational FoundationsMatrix Business School
CERTIFICATE
This is to certify that“Mr.Ankush Rajan Upwanshi”student of Matrix Business
School, Pune has completed his field work report at“Spacewood Furnishers Pvt. ltd.” at
Nagpur; Maharashtraon the topic of“A Study Customer Satisfaction & Brand
Preference of Plywood Furniture Industry in India”and has submitted the field work
report in partial fulfillment of MBA-III of the Matrix Business School for the academic year
2012-14
He has worked under the guidance and direction. The said report is based on authentic
information
Mrs. AsmitaPatwe Dr. SatishUbale Project Guide Director
Place: Pune Date:
COMPANY CERTIFICATE
ACKNOWLEDGEMENT
A large number of individual contributed to this project. I am thankful to all of them
for their help and encouragement. My writing in this project report has also been influenced
by a number of website and standard textbooks. As far as possible, they have been fully
acknowledged at the appropriate place. I express my gratitude to all of them.
The last 8-weeks with “Spacewood Furnishers Pvt. ltd.” at Nagpur have been full
of learning and sense of contribution towards the organization.
First of all I owe my heartfelt gratitude to my mentor Mr. Deepak Bhatt (Manager)
for his noble guidance throughout the completion of the Project job intimely and also sparing
his valuable time and extending all necessary support for the same.
I express my grateful to Dr. SatishUbale (Director) and Mrs.AsmitaPatwe
(ProjectGuide) for their kind approval of the training at “Spacewood Furnishers Pvt. ltd.” at
Nagpur. I convey my thanks to all other staff members of MATRIX BUSINESSSCHOOL
for their timely advice.
Mr. Ankush R. Upwanshi
INDEX
Sr. No. Contents Page No.
1. EXECUTIVE SUMMARY 8
2. OBJECTIVE AND SCOPE OF THE STUDY 9
3. INTRODUCTION TO INDUSTRY 10
4. COMPANY PROFILE 16
5. RESEARCH METHODOLOGY 24
6. THEORETICAL BACKGROUND 29
7. DATA ANALYSIS & INTERPRETATION 32
8. FINDINGS & SUGGESSION 43
9. CONCLUSION 47
10. LEARNING EXPERIENCE 49
11. BIBILOGRAPHY 50
ANNEXTURE
1. EXECUTIVE SUMMARY
The Furniture Industry is an important sector in the Indian economy, as it one of the
most labour-intensive industries with a potential to contribute to the reduction of
unemployment, increase exports and develop the Small, Medium and Micro Enterprises
(SMME). The sector has potential to contribute to the geographic spread of economic activity
since products can be produced in rural areas with minimal capital requirements.
The furniture industry is located within the manufacturing sector of the economy.
Whilst its contribution to GDP is small (0.3% to the national GDP and 1.6% to manufacturing
GDP in 2007) compared to other manufacturing industries, the relatively low capital
investment required per job, the established resource and manufacturing base makes it an
attractive sector. The sector can capitalise on the available opportunities and grow prospects,
thus contributing to both employment and economic growth, as prescribed by the National
Industry Policy Framework (NIPF).
The global furniture industry has grown by an average of 13% over the years from
2002 to 2006, with exports from the top 10 producing countries accounting for over 66% of
global exports. The global players have positioned themselves between manufacturing low
cost/low quality and high cost/high quality products. China has eclipsed the traditional
world’s largest export countries (Germany, Italy and USA), and by 2006 had become the
largest furniture exporter (with 20% share of global exports) in the world from being the 9th
largest in 2000.
The local furniture industry has not kept pace with the growth in worldwide furniture
trade and has steadily been losing its share of the global furniture manufacturing, having
moved from the 34th largest exporter in 2005 to 43rd in 2006. The escalation of cheap Asian
imports, the declining investment in skills development and technological innovation,
insignificant research and development funding over the past five years or so has resulted in
the declining 2 levels of competitiveness in the industry. This has also contributed to job
losses and the reversal from being a net exporter to being a net importer of furniture products.
Whilst the largest furniture manufacturers have to some extent managed to hold forth in the
face of increasing imports, the biggest casualties have been the small and medium-sized
enterprises.
It remains doubtful if the local industry will ever effectively compete with the Asian
imports. However, it is possible to position the local industry as the producer of high value
niche furniture products that are globally competitive based on quality and/or differentiated
designs. This requires a concerted effort on the part of the public and private sector to develop
programmes that address the challenges that constrain the industry from achieving potential
growth levels and significantly raise the levels of competitiveness.
This document presents a strategy for the development of the furniture industry. Its
objective is to develop key action plans that capitalise on the opportunities for growth that
exist in the industry as well as addressing the challenges that constrain the industry from
achieving the desired growth levels. These key action plans address the challenges of skills
development, SMME development and industry competitiveness.
It is envisaged that successful implementation of this strategy will reposition the
industry to take advantage of its inherent advantages and start creating jobs and Growing
exports.
This report provides an analysis of the internal as well as external situation of
Spacewood Furnishers Pvt. Ltd. in the form of SWOT Analysis and PORTER’S FIVE
FORCES Model.
2. OBJECTIVE AND SCOPE OF THE STUDY
Title of the Project
The project report “A Study Customer Satisfaction & Brand Preference of
Plywood Furniture Industry in India”has potential of further analysis.
Need for thestudy
Customer satisfaction survey is a systematic process for collecting consumer data, analyzing
this data to make it into actionable information, driving the results throughout an organization
and implementing satisfaction survey is a management information system that continuously
captures the voice of the customer through the assessment of performance from the
customers’ point of view.
Objectives of study
The setting of objective is the corer stone of a systematic study. The study will be
fruitful one when the basis laid down is a concrete one they represent the desired solution to
the problem and help in proper utilization of opportunities.
Objectives
To find out which sales promotion tools will increase the sales.
To know the features that attracts the customer to buy spacewood furniture.
To study the current position of the company.
To study the buying behaviour of consumer for furniture.
To know the level of satisfaction of customers towards the spacewood furniture.
Scope of the study
The data collected gives the clear picture of products in the market, under study in this
Research and gives the company an indication about whether it is feasible to move on with
the Persisting movements and marketing strategies, then how to go about it and make it
Worthwhile for the brand as well as the company and conclude on what should be the
mostfavoured deal.
3. INTRODUCTION TO INDUSTRY
This project report is based on survey which has been done between periods 27 May
2013 to 15 July 2013 to know about most the furniture used in day to day lifestyle. I have
undertaken various areas of Nagpur to analyses customer preferences for daily using
furniture’s. The preferences would be based primarily on their perception level, need, liking
and awareness about the brand.
Pioneering the concept of branding for various products and brand building as its core,
the company’s track record is impeccable as a profit-making dividend paying company over
the last decade with 61% CAGR growth in bottom-line over the last five years leading to
2011-12.
Spacewood has recently merged its subsidiary, Worthy Plywood, into itself. It is also
worth mentioning thatSpacewood Furnishers Industries has recently acquired a Mumbai-
based laminates brand, New Mika, to enhance its presence in the Western markets. It is worth
mentioning that The Spacewood group has recently launched its international arm, SPT
Intercontinental PAE Ltd. to market laminates in Asia Pacific Markets.
The “plywood furniture” company represents 95% of the total furniture market in the country.
The leading furniture making areas of India are in Nagpur,Mumbai,Hyderabad and Lucknow.
Exporters are suffering manifold problems while local manufacturers are facing challenges
due to heavy imports of the furniture.
Chinese furniture also hit the local industry by 70% and the sales of locally manufactured
household furniture have gone down by 30%.
The prices of raw material used in making furniture which includes
chipboard,timber,foam,polish chemical materials,color paints and hardware have increased.
Timber production on other hand has gone down drastically because of unchecked
deforestation.
India’s major buyers of wooden furniture are the UK, USA and Sri Lanka and gulf countries.
The demand of Indian furniture has been rising constantly.
The global furniture market can be broadly categorised into four categories – domestic
furniture, office/corporatefurniture, hotel furniture and furniture parts. Globally,domestic
furniture accounts for 65 per cent of theproduction value, whilst corporate/office
furniturerepresents 15 per cent, hotel furniture 15 per cent andfurniture parts 5 per
cent.According to a World Bank study, the organisedfurniture industry is expected to grow by
20 per cent everyyear. A large part of this growth is expected to come from the rapidly
growing consumer markets of Asia, implyingsignificant potential for growth in the Indian
furnituresector.
Domestic60%
Office15%
Hotels20% Parts
5%
Global Furniture Market
PLYWOOD
57 per cent increase in plywood production to 12.86 million square metres; average capacity
utilization 77 per cent
Commissioning of a Greenfield unit in Uttarkhand in May 2006 within eight months as
opposed to the industry benchmark of 12-16 months
Plywood contributed 48% to the total revenue and 53% to the total PBIT
85% increase in plywood revenue to Rs. 201.98crore
Market Size
Estimated market size 12000 cores
INDIAN FURNITURE INDUSTRY
As of 2006, the Indian furniture market is estimated to be worth US$ 7,922 million.
Of this, wooden furniture accounts for US$ 1,358 million. About 11 per cent (US$ 152
million) of this (wooden furniture) is imported and imports are growing at 50 to 60 per cent
every year. India was the largest furniture importer in the world in 2004-05, with a 17 per
cent share in the furniture imports worldwide. A total of 10, 476 importers shipped furniture
to India during this period, mainly from Italy, Germany, Spain, China, Korea, Malaysia,
Indonesia, Philippines and Japan. The furniture sector in India makes a marginal contribution
to the Gross Domestic Product (GDP), representing about 0.5 per cent of the total GDP. The
major part of this industry, approximately 85 per cent is in the unorganised sector. The
remaining 15 per cent comprises of large manufacturers, such as, Godrej & Boyce
Manufacturing Co. Ltd., BP Ergo, Featherlite, Haworth, Style Spa, Yantra, Renaissance,
Millennium Lifestyles, Durian, Kian, Tangent, Furniture Concepts, Furniturewala, Zuari,
Truzo, N R Jasani&Company, V3 Engineers, PSL Modular Furniture, etc. The range of
indigenous furniture available in India includes both residential and contract system furniture.
Manufacturers in India usually use a three-tier selling and distribution structure, comprising
Plywood including Decora-tive VeneersRs 7000 cr
LaminatesRs. 3000 cr
Particle BoardRs. 2000 cr
of the distributor, wholesaler and retailer. The market is mainly concentrated in A, B and C
category cities (the top 589 cities). A and B type cities together constitute 33 per cent of the
total market. With a healthy economy and increased household and institutional spending, the
market is growing steadily.
Unorganised85%
Organised15%
Share of Organised and Unorganised Sectors
Furniture Industry Composition
As with the global market, home furniture is the largestsegment in the Indian furniture
market, accountingfor about 65 per cent of furniture sales. This is followedby, the office
furniture segment with a 20 per cent shareand the contract segment, accounting for the
remaining15 per cent. The furniture sector in India makes a marginalcontribution to the Gross
Domestic Product (GDP),representing about 0.5 per cent of the total GDP. The majorpart of
this industry, approximately 85 per cent is in theunorganised sector. The remaining 15 per
cent comprises of manufacturers, such as, Godrej & Boyce ManufacturingCo. Ltd., BP Ergo,
Featherlite, Haworth, Style Spa, Yantra,Renaissance, Millennium Lifestyles, Durian, Kian,
Tangent.
Household29%
Office9%
Contract62%
Consumer Segments
Home furniture
Home furniture in India is available in a wide range, tocater to different customer
needs. A typical middle classurban Indian home has five rooms (including kitchen
andbathroom). About 25 per cent of the urban populationlive in homes with five rooms or
more, while 45 per centlive in houses with three rooms or less. About 16 percent is estimated
to live in single-room homes. The typeof furniture used depends on the customer’s
affluenceand taste.The rich and upper middle class is typically very attentiveto design and
quality, so price is rarely a determining factor.In general, European style furniture is only
found in homes ofthe urban upper class. Demand for furniture of international standards is
limited to the larger cities. It is also estimatedthat the wealthier classes do not change
furniture veryfrequently; the average life of a piece of furniture is about20 years and some
craftsmen’s pieces are used for as long as50-70 years. Colonial furniture is still very common
in India,but the trend seems to be declining slowly.
Office Furniture
The office furniture segment caters to the commercial andoffice space. This segment
has witnessed rapid growth inrecent years, in line with the growth in the Indian economyand
subsequent demand for office space. The thrust on realestate and office construction is
expected to sustain in thenear future, indicating continued growth for the furnitureindustry.
Contract segment
The contract segment caters primarily to hotels and itsgrowth is consequently linked
to growth in tourism anddevelopment of new hotels.
There are around 1,200 hotels in India in the organisedsector. More than 10 per cent
of these are in the 5-star andabove categories (please refer to table below for details).
4. COMPANY PROFILE
COMPANY PROFILE
With a sprawling 15 acre manufacturing unit in Nagpur, Spacewood’s integrated
facility brings home autonomous technology, viz. short cycle lamination, panel processing,
membrane pressing, press shop, powder coating, etc.
Spacewood upholds global standards with state-of-the-art European machinery
operating over the most modern manufacturing processes. BIFMA compliant test laboratory
fulfills observance with international practices. Independently functioning with in-house
design and productdevelopment specialists, Spacewood creates solutions that are future ready,
sustainable and world class.
Spacewood is a manufacturer of all products related to interior infrastructure from
plywood & boards, flush doors, decorative veneers, decorative laminates to pre lam
MDF and particleboard. The company accounts for 25 per cent of organized plywood and
15 per cent of organized laminate market
The company has, over the years, grown as an interior infrastructure solutions
provider that currently manufactures a host of renowned brands such as Spacewoodalfa –
Waterproof, Durable yet Affordable Spacewood Club Premium Ply, which comes with
a life time guarantee.
The company has more than 12 branches across the country with a strong network of
over 1,300 dealers, distributors, sub-dealers and retailers. Exports contribute to around 8% of
the company’s total turnover. Spacewood exports its laminate products to more than 18
countries such as the US, Australia, Malaysia, Singapore.
What Consumers Buy
The earliest known making of plywood was in 3500 B.C. in ancient Egypt. The
Egyptians, the builders of the pyramids, were the first to create wooden articles made from
sawn veneers glued together crosswise.
They originally did this because there was a shortage of fine wood. Because of this
shortage, thin sheets of high-quality wood were glued over lower-quality wood for a cosmetic
effect. It wasn't done for structural benefits as it is today.
Modern plywood - in which the veneer is cut on a rotary lathe from softwood logs - is
of relatively recent origin, invented by Immanuel Nobel (the father of the more-famous
Alfred Nobel). The first such lathes were set up in the United States in the mid 19th century.
Plywood has been one of the most useful and most-used building products for decades.
Plywood has become a very common building material in the United States, used to make
everything from furniture to houses.
Vision & Mission
Vision
To be one of the top 3 companies in India providing furniture for home, office and allied
needs.
Mission
Spacewood strives to achieve the vision by
Offering value solutions to evolving needs of customers
Innovation and continuous up gradation of products and services
Developing passion for understanding furniture and interiors
Efficient management of resources and supply chain
Participation of employees and business associates
In house Quality assurance laboratory confirms to FIRA/ BIFMA/ BIS standards.
Business principles
Compliance with laws and fair business practices
Respect customers, business associates and employees
Care for environment, health and safety
Maintain a clean organization with culture of accountability
Encourage teamwork and respect for individual
Freedom to innovate at work
Company’s clients
Spend on Advertising & Promotion
3.94
10.45
14.94
1.81
0
2
4
6
8
10
12
14
16
2003-04 2004-05 2005-06 2006-07
Year
Rs
in C
r
Spacewood Today
Gross Turnover123.49Cr.
Net Turnover 105.86Cr.
Net Profit 9.37Cr.
Employees 1700
Manufacturing facilities 2
Sales Offices 13
Authorized Dealers/Distributers 2300
Godrej
BlowPlast
Featherlite
Barista
.
Vodafone Airtel
Infosys
Wipro
L&T
SBI
ICICI
MAX Healthcare
SWOT ANALYSIS OF SPACEWOOD
STRENGTH (S)
Maximum Varity & high quality Of PlywoodGood Employer-employee RelationshipEfficient managementTotally Computerized CSR by keeping Environment cleanStrategic Location for easy availability Of Raw material
WEAKNESS (W)
Large Structure of organization Old MachineryHigh Fixed CostRemote Location of PlantsLogistic Issues
OPPORTUNITIES (O)
Setting up a new plant in central part of IndiaExploring new overseas marketMaximize production capacity by replacing old machinery Decreasing cost by increasing Rail & Water as mode of TransportationAcquiring some weak and poor Paper manufacturing companies
THREATS (T)
Global WarmingRaw material UnavailabilityIncreasing CompetitionImport of PapersNGO s Working against cutting down of trees & using of PlywoodTechnological advancements such as mobile facilities and internet usagesStrict Govt. Policies, high Taxes and Duties
PORTER’S FIVE FORCES MODEL FOR SPACEWOOD
1. Threat of New Entrants:
ForSpacewood, the threat of new entrants is low because despite of Govt. of India’s
persuasion by providing land for plant in low cost and various TAX exemptions it appears no
business house is taking interest in establishing new paper manufacturing industry because of
low availability of Raw material and high installation cost. Rather the existing players are
either taking over some weak industries or adopting some expansion plans and adding to their
production Capacity.
SUBSTITUTES
Threat of Substitute is LOW
SUPPLIERS POWER
Bargaining power of Supplier is HIGH
BUYERS POWER
Bargaining Power of Buyer is HIGH
INDUSTRY RIVALRY
Industry Rivalry is HIGH
POTENTIAL ENTRANTS
Threats of New Entrance is LOW
2) Industry Rivalry:
Though there are few players in this segment, there is existence of a strong
competition because of fluctuation of variable costs and customer’s choices.
3) Supplier’s Power:
The Supplier’s power is very high in paper manufacturing industry because the factors
of product-ion such as Fiber and Bamboo are becoming high cost due to decrease in forest
and high civilization. And the machinery is imported from other countries so it is not a quite
easy task.
4) Buyer’s Power:
The buyer’s power is also very high because of the import of paper products from
neighboring countries and the companies have to provide various discounts to attract
customers.
5) Threat of Substitutes:
The Threat of Substitute is very low because there is hardly any substitute for paper.
The demand will always be there for paper and paper by-products.
Certifications
Spacewood regulates its quality control systems through not just adherence to the best
standards but ensuring its products surpass expectations at every level. Employing diverse
technologies for a flawless finish is an integral part of Spacewood manufacturing. All
verticals and ranges across Spacewood undergo stringent quality checks for best results in
standardization. No wonder then, Spacewood is certified to be a notch above the rest.
ISO 9001:2008 from Quality International UK for Quality Management System
ISO 14001:2004 for environmental management
ISO 18001:2007 for health and safe environment for entire workforce
BIS certification to use ISI standard mark for boards
FIRA UK Quality certification
In house Quality assurance laboratory confirms to FIRA/ BIFMA/ BIS standards.
Awards
Best SSI award: Govt. of Maharashtra
MIA: CIMC business excellence award
Saarthi entrepreneurship award
Corp excel award 2008: Corporate Excellence
Manufacturing
Spacewood operates its vast, 15 acre, state-of-the-art factory for modular furniture
from Nagpur. With wide-scale manufacturing facilitated at the heart of the country, it is
easier to integrate processes and spearhead distribution from India’s nerve centre.
Spacewood has not only pioneered the membrane pressing technology in India, but
also forayed into the most modern woodworking technologies today. The wood working
section comprises ofGerman and Italian CNC routers, automated drilling lines, cutting
machines and edge bender. The metal working is equipped with press shop, metal pre-
treatment and powder coating. Now with backward integration, Spacewood operates as an
independent entity by managing short cycle lamination press for production of pre-laminated
boards.
From creation till completion,Spacewood has become one of the country’s most
comprehensive and widespread manufacturers of modular furniture today.
Future plans
SpacewoodIndustries has picked up controlling stake in two Gujarat-based plywood
manufacturing companies, Galaxy Decor and Platinum Veneers.
The board cleared that the company’s proposal is to set up a new laminate producing
unit in Himachal Pradesh as well as a medium density fiber (MDF) board production line
within the premises of its existing Uttarakhand plant.
Company’s present force is how directed towards maintaining the pace and we have
plans to expand, diversify and integrate to further our objective and reach new heights.
5.RESEARCH METHODOLOGY
Research methodology is the process of the systematic gathering, recording and
analysis of data collected by various techniques to access the response and accordingly
prepare a report based on which reader opinion toward products can be analyzed.
Research studies evolve through series of steps, each representing the answer to a key
of question.
This chapter aims to understand the research methodology establishing a framework
of evaluation and revaluation of primary and secondary research. The techniques and
concepts used during primary research are in order to arrive at finding, which are also dealt
with and lead to a logical deduction towards the analysis and result.
Following steps are to be taken to provide useful guidelines regarding the research process.
Research Design
Sampling
Data Collection
RESEARCH DESIGN
The research design is descriptive research. The main characteristics of this method
are that the researcher has no control over the variables. He can only report what has happen
or what is happening.
Descriptive Research:
Descriptive research refers to a set of method and procedure that describe marketing
variables. Descriptive studies portray these variable by answering who, what, why, and how
low questions. This type of research studies may describe such thing as consumer’s attitude,
intension, and behaviors, or the number of competitors and their strategies. Descriptive
research was selected as research design. It is undertaken when the researcher is interested in
knowing the complete information according to its objectives. In the case of our project,
research has to find out what actually inspires a customer to use Furniture daily or what
customer perceives about Furniture daily and for this purpose descriptive research was ideal.
SAMPLE SIZE
The sample size was: 100 respondents.
I have selected 100 respondents (50 respondents were employees from Different
Organization, 45 respondents were dealers and 5 respondents were from logistic member of
external agencies) for the purpose of research. The target population represents the internal
customers of the company. The population consist of employees and distributors of the
company, these all sample population are from professional background.
DATA COLLECTON METHOD/ SOURCES
There are two types of methods used in data collection i.e. primary data and secondary
data.
A] Primary Data
Those data which are collected at first hand by the researcher especially for the
purpose of the study are known as primary data. The data is collected directly from the person
in sample population.
Survey Method
Questionnaire Method
Interview Method
Questionnaire Method
It is the popular method for collection of necessary data from the respondents. I have
used survey method for collection of the necessary data from the respondents.
B] Secondary Method
Any data which has been gathered earlier for the other purposes are secondary data in
hand of marketers. These data has been collected from company like industrial profile,
company profile, are collected from the internet. The secondary data are collected from the
magazines, internet and website of company. Different web sites help in collecting the
detailed information.
SAMPLING PLAN
Sample size: 100 respondents
Work Area: Nagpur District, Maharashtra
Sampling Unit: Employees, Dealers, Logistics members
Sample Technique: Stratified random sampling.
Data collection instrument
1. The Data Collection instrument used was a two page questionnaire
2. The questions asked were both open and questions and close and questions.
Fieldwork Plan:
Respondents were contacted on all week days. Consumers could only be contacted in
evening between 5:30 pm to 8:30 pm. Dealers could only be contacted in the morning
between 11:30 am and 2 pm on Thursday and in the evening depending on the availability of
the respondents.
6. THEORATICAL BACKGROUND
Satisfaction:
It is no longer enough to satisfy customers. You must delight them.
Satisfaction is a person feeling of pleasure or disappointment resulting from
comparing the products to comparing products received performance is or (out come) in
relation to his or her expectations.
As this definition makes clear satisfaction is a function of received performance and
expectations. With the performance falls sharp expectations, the customer is dissatisfied. If
the performance matches the expectations the customer is satisfied. With the performance
exceeds expectations, the customer is highly satisfied or delighted.
Mini companies are aiming for high satisfactions because customers who are just
satisfied still find it easy to switch when a better offer comes along.
Those who are highly satisfied are much less ready to switch.
High satisfactions are delight creates an emotional brand with the brand. Not a just
rational performance the result is high customer loyalty Xeroxes senior managers believes
that a very satisfied or delighted customer is worth tent times as much to the company as a
satisfied customer. A very satisfied customer is likely to stay with Xerox many more years
and buy more than a satisfied customer.
A customer's decision to be loyal or to defect is the some of many small encounters
with the company. Consulting form forum corporation says that in order for all this small
encounters to add up to customers loyalty, companies need to create a" branded customer
experiences" in addition to customer value expectations and satisfactions companies need to
monitor their competitors performance in this areas. For example a company was pleased to
find the 80% of his customers said they were satisfied.
Then the CEO found out that its leading competitor attends a 90% customer
satisfaction score. He was further dismayed when he learned that this competitor was aiming
to reach a 95% satisfaction score.
For customer-centered companies, customer satisfaction is both goal and marketing
tool. Companies that achieve high customer satisfaction ratings make sure that their target
market knows it.
Although the customer-centered firm seeks to create high customer satisfaction, its
main goal is not to maximize customer satisfaction. If the company increases customer
satisfaction by lowering its price or increasing its services, the result may be lower profits.
The company might be able to increases its profitability by means other than increased
satisfaction (for example, by improving manufacturing processes are investing more in r&b
(also the company has many stake holders including employers, dealers, suppliers and stock
holders. Spending more to increase customer satisfaction might divert funds from increasing
the satisfaction of other partners. Ultimately the company must operate on philosophy that it
is trying to deliver faction to other stake holders within the constraints of its total resources.
Customer satisfaction service:
Studies show that although customers are dissatisfied with one out of every 4
purchases. Less than 5% of dis-satisfied customers will complain. Most customers will buy
less or switch suppliers. Complaint levels are thus not a good measure of customer
satisfaction. Responsive company measure customer satisfaction directly by conducting
periodic service, they sent questionnaires or make telephone calls to a random sample of
recent customers.
While collecting customer satisfaction data, it is also useful to ask additional
questions to measure repurchase intention; this will normally be high if the customer's
satisfaction is high. It is also useful to measure the likelihood or willingness to recommend
the company and brand to others. A high positive word-of-mouth score indicates that the
company is producing high customer satisfaction.
Defining customer satisfaction:
Over 35 years above peter drucker observed that a company’s first task is to create
customers. But today's customers face a vast very of product and branch choices, prices and
suppliers.
We believe that customers estimate which offer will deliver the most value.
Customers are very valuable maxi misers, within the bounds of search costs and limited
knowledge, mobility and income the form and expectations of value and act on it. Whether
are not the offer lives up to value expectations affects both satisfaction and repurchase prop
ability.
The key to customer retention is customer satisfaction. A highly satisfied customer:
1. stays loyal longer
2. Buys more as the company introduces new products and upgrades existing products.
3. Talks favorably about the company and its products
4. Pays less attention to competing brands and advertising and is less sensitive to price.
5. Offers product or service ideas to the company
6. Costs less to serve than new customers because transactions are reutilized
Thus a company would be wise to measure- customer satisfaction regularly. The
company could phone recent buyers and inquire how many are very satisfied, satisfied,
indifferent, dissatisfied, and very dissatisfied.
100% guarantee
Ah of our products are guaranteed to give 100% satisfaction in every way. Return
anything purchased from us at any time if it proves otherwise. We will replace it, refund your
purchase price or credit your credit card, as you wish. We do not want you to have anything
from l.1. Bean that is not completely satisfactory.
A buyer's satisfaction is a function of the product's perceived performance and the
buyer's expectations. Recognizing that high satisfaction leads to high customer loyalty, many
companies today are aiming for tcs - total customer satisfaction. For such companies,
customer satisfaction is both a goal and a marketing tool.
Quality is the totality of features and characteristics of a product or service that bear
on its ability to satisfy stated or implied needs. Today's companies have not choice but to
implement total quality management programs if they are to remain solvent and profitable.
Total quality is the key to value creation and customer satisfaction.
:
Customer satisfaction:
Today in the customer driven economy, ail firms are engaged in a rat race to attract
customers and build) a long term relationship with their loyal customer. The key to customer
loyalty is through customer satisfaction. A satisfied customer will act as a spoke person of the
company's product, and bring in more buyers. There is the pare to principal or the 80/20 rule,
it says 80 % of one thing comes from 20% of another. That is to say a small percentage of
loyal customers will lend a large weight to the company's sales. So marketers have to ensure
customers value satisfaction. For this they have to ensure.
1. Products are developed to meet customer requirements.
2. Brands are positioned so as to convey distinctiveness.
3. Relationships are built to offer lifetime customer value to enable the customer
to experience value satisfaction.
All the efforts of the marketers at trying to understand buying motives. Organizing
buying behavior and working out suitable promotional strategy to suit the customer behaviour
is to ensure customer satisfaction.
In today’s competitive environment, where companies are adopting various methods
to whom the prospective customers, marketers have to make all efforts to understand all the
complexities which go into the behavior and frame marketing programs suitable to the target
market.
Satisfaction Index
As far as customer satisfaction is concerned it is very clear in the market
size of Spacewood Furnishers that the customers are very much satisfied with
it.
The compliments given by the potential customers and the retailers of
Spacewood Furnishers in the market on the scale of:
Variety.
Reliable.
And the most important one is that is quality.
Tangibility.
Every company wants to satisfy their customers because if the customer
satisfied by the product of a company then and then only a company can get
the good results.
Consumer is a first person through which a company comes to know
about their product.
5.DATA ANALYSIS AND INTERPRETATION.
1) What is your perception about Plywood prices?
a) Costly
b) Cheap
c) Moderate
OPTION NO. OF RESPONDENTS PERCENTAGE
Costly 52 52 %
Moderate 30 30%
Cheap 18 18%
52
30
18
Sales
CostlyModerateCheap
Interpretation:
From the above diagram, it shows that 52% respondents believe thatplywood are
costly for furnish, whereas 30% respondents believe that plywood is acceptable and
remaining 18% respondent believe that plywood are cheap.
2) What are the different types of Plywood you are aware of?
a) Less than 2
b) 2 to 4
c) 4 to 6
d) 6 and above
OPTION NO. OF RESPONDENTS PERCENTAGE
Less than 2 24 24 %
2 to 4 24 24%
4 to 6 30 30%
6 and above 24 24%
24%
24%30%
22%
Sales
Less than 22 to 44 to 66 and above
Interpretation:
From the above data we can observe only 24% respondents are aware about only less
than 2 types of plywood. 30% respondents are aware about 4 to 6 types of plywood available.
3) Which company do you prefer for plywood consumption?
a) Spacewood Industries Pvt. ltd.
b) Greenply Pvt. Ltd.
c) Century ply
d) Other
OPTION NO. OF RESPONDENTS PERCENTAGE
Spacewood Industries 15 15 %
Greenply Pvt. Ltd. 25 25 %
Century ply 30 30 %
Other 30 30%
15%
25%
30%
30%
Sales
Spacewood Industries Pvt. Ltd.Greenply Pvt. LtdCentury PlyOthers
Interpretation:
From the above given figures it is seen that
15% respondent prefers Spacewood Industries Pvt. Ltd.25% respondent prefers
Greenply Pvt. Ltd.30% respondents prefer Century Ply30% respondents prefer other brands
4) What are the reasons behind your ranking?
a) Brand Name
b) Good service
c) Good Quality
d) Any other reason
OPTION NO. OF RESPONDENTS PERCENTAGE
Brand Name 18 18%
Good Service 30 30%
Good Quality 34 34%
Any other reason 18 18%
Brand Name
Good Service
Good Quality
Any other Reason
0% 5% 10% 15% 20% 25% 30% 35%
18%
30%
34%
18%
Sales
Interpretation:
From the above data we can observed that18% respondent prefer brand, 30%
respondent prefer good service, 34% respondents prefer good quality whereas remaining 18%
consider other factors during ranking the plywood industry.
5) Are you aware of Spacewood Industry Pvt. Ltd.?
a) Yes
b) No
OPTION NO. OF RESPONDENTS PERCENTAGE
Yes 57 57 %
No 43 43%
57%
43%
Sales
YesNo
Interpretation:
From the above figure we can see 57% respondents are aware about Spacewood
Industries Pvt. Ltd. whereas other 43% respondents are not aware about Spacewood
Industries Pvt. Ltd.
6) Have you ever used plywood of Spacewood Industries Pvt. Ltd.?
a) Yes
b) No
c)
OPTION NO. OF RESPONDENTS PERCENTAGE
Yes 32 56.14 %
No 25 43.85 %
56%
44%
Sales
yesNo
Interpretation:
As we know that only 57% of total respondents are aware of Spacewood Industries
Pvt. Ltd.Out of these, 56% respondents had consumed Spacewood Industries Pvt. Ltd.
whereas remaining 44% respondents have not experienced the plywood of Spacewood
Industries.
7) How satisfied are you with the variety in products offered by Spacewood?
a) Highly Satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Highly Dissatisfied
OPTION NO. OF RESPONDENTS PERCENTAGE
Highly Satisfied 18 31.57 %
Satisfied 25 43.85 %
Neutral 8 14.03 %
Dissatisfied 6 10.52 %
Highly Dissatisfied 0 0 %
32%
44%
14%
11%
Sales
Highly SatisfiedSatisfiedNeutralDissatisfiedHighly Dissatisfied
Interpretation:
As we know that only 57% of total respondents are aware of Spacewood Industries Pvt. Ltd.
Out of these, 32% respondents are highly satisfied, 44% are satisfied, 14% are neutral, and
remaining 11% are dissatisfied.
8) How satisfied are you with the pricing of Spacewood Products?
a) Satisfied
b) Neutral
c) Dissatisfied
OPTION NO. OF RESPONDENTS PERCENTAGE
Satisfied 30 52.63 %
Neutral 20 35.08 %
Dissatisfied 7 12.28 %
53%35%
12%
Sales
SatisfiedNeutralDissatisfied
Interpretation:
As we know that only 57% of total respondents are aware of Spacewood Industries
Pvt. Ltd.Out of these, 53% respondents are satisfied, 35% are neutral and remaining 12%
respondents are dissatisfied with the price.
9) How much money do you usually spend in Furniture?
a) Less than 1,00,000
b) 1,00,000 to 3,00,000
c) 3,00,000 to 5,00,000
d) Above 5,00,000
OPTION NO. OF RESPONDENTS PERCENTAGE
Less than 1,00,000 43 43%
1,00,000 to 3,00,000 27 27%
3,00,000 to 5,00,000 20 20%
Above 5,00,000 10 10%
43%
27%
20%
10%
Sales
Less than 1,00,0001,00,000 to 3,00,0003,00,000 to 5,00,000Above 5,00,000
Interpretation:
From the above figure we can see
43% respondents spend less than Rs. 1, 00,000. 27% respondents spend between range of Rs.
1,00,000 to 3,00,000.20% respondents spend between range of Rs. 3,00,000 to 5,00,000.10%
respondents spend above Rs. 5, 00,000.
10) What is the single most important factor for you to choose Furniture’s?
a) Ambience/Experience
b) Value of money
c) For Comfort
OPTION NO. OF RESPONDENTS PERCENTAGE
Ambience/Experience 48 48%
Value of Money 32 32%
For Comfort 20 20%
48%
32%
20%
Sales
Ambience/ExperienceValue of moneyFor Comfort
Interpretation:
From the above figure we can see that 48% respondents consider experience as the
main factor, 32% respondents prefer value for money whereas remaining 20% respondents
consider comfort as major factors for furniture.
11) How is your experience with Spacewood?
a) Excellent
b) Good
c) Satisfactory
d) Poor
OPTION NO. OF RESPONDENTS PERCENTAGE
Excellent 47 47%
Good 23 23%
Satisfactory 16 16%
Poor 14 14%
47%
23%
16%
14%
Sales
ExcellentGoodSatisfactoryPoor
Interpretation:
From the above figure we can see that 47% respondents has an excellent experience
with Spacewood, 23 % respondents has good experience whereas 23% and 16% respondents
have satisfactory and poor experience respectively.
6. FINDINGS AND SUGGESTIONS
FINDING
Customs examination done is very severe.
o During customs examination furniture is broken/tom for inspection. As a result all material
has to be made again. a huge loss is incurred on the companies.
o Some companies give money and get their material cleared from the customs. In this process,
even the poor quality material reaches foreign buyers and the image of the whole industry is
destroyed.
Problem in basic utilities
o Load –shedding is a major problem.Furthermore; gas rates are on the rise with increase
shortage of supply too.
Railway Transportation
o Indian railway is only used for movement of bonded goods aandits not available for
commercial exporters. Railway is one of the cheapest means of transportation in country.
Lack of space is problem
o Because of small area, less pieces of furniture are produced. There’s 40% loss and as a result
all opportunities are lost. If more material is produced, it is wasted because there is no space
for its storage.
Lack of Practical implications
o It seeking to go international need to learn a lot about external and internal environment
impacting their organizations.
Lack of skilled labor
o Since the injunction of contemporary furniture, there is a decline in overall hand carvers in
the market.
SUGGESTIONS
1) Company should go for direct mailing exercise to the specifies and trade.
2) Company should create awareness among the people.
3) Company should make a strong relationship with the specifies mainly
Interior Architects and Designers
Contractors & carpenters
Retailers
4) Company should expand their network through Authorized dealers/ Sub-dealers/ Retailers.
OTHER FACTS:
Access to the international markets tends to be a problem
o As producers may be unfavorably located; far from the main consumption centers and suffer
from costly transportation.
Access to raw materials at competitive costs becomes a problem
o This can become a hindrance to organizing the flow of raw materials from domestic, on-
transparent timber markets controlled by various intermediaries, and often leads to timber
shortages just when exports are growing.
Access to knowledge and technology is a major problem area.
o Industries tend to fall behind because of their strong reliance on traditions; e.g. they may be
using high-value timber for secondary uses; simply through force of habit and thus gain
revenues far below the timber's real potential.
Access to capital is difficult to find at competitive rates
o Since domestic bank finance is scarce, interest rates are generally high and collateral
requirements are strict.
Access to designers is limited
o The exporters rely on simply selling items “as they are”. copyingnew, peels or producing
according to the buyer’s designs.
There are shortages of skilled labor and in-house training
o (Apprenticeships, on the job training, etc.) is usually considered too much of a burden.
7. CONCLUSION
Spacewood Industry Pvt. Ltd. is an integrated interior infrastructure company
leading with leadership in the plywood & Laminates in India. SFPL manufactures product
like Plywood, Particle board, Laminate & Decorative veneer commanding more share of 25%
in the organized Plywood market & 15% in the organized laminate market. The products are
sold under the brand Spaceply,& Green Spacewood in the Plywood segment. SFPL has more
than 26 branches across the country with a strong network of over 7100 dealers, distributors,
sub-dealers & Retailers.
1) Plywood and laminate industry provides direct and indirect employment to over a million
people.
2) Revenue from the Plywood is more than all other products.
3) The producing capacity of Plywood is also more than all other products.(18 million sq. per
meter)
4) Consumer also giving a good preference to plywood.
5) Market share of Plywood is also high of SFPL
LEARNING EXPERIENCE
Myexperience of making a Product Profile is wonderful because it gives me a lot of
valuable & knowledgeable information. After preparing a product profile I come to know that
what researches should be conduct before launching any product in the market. For promoting
the sales of any product it is necessary to fulfill the expectations of the consumers related to a
particular product and this profile helps me to know how to target the customer or how to
reach the customer and how to satisfy them.
It is necessary for every company to expand the market of their product for
surviving in a market and for expanding the market “Positioning of the market” is very
necessary. This profile also helps me in the same.
In this way I can easily say that “product Profile” is really a wonderful experience for me.
8.BIBLIOGRAPHY
Website Reffered:
www.spacewood.in
www.business.mapsofindia.com
REFRENCES BOOKS:
Emotion in Advertising & Promotion, Stuart J. Agres.
CSIL (Centre for Industrial Studies). 2009. World furniture production and trade data for
2008.
Trochim M.K. William, 2006, Research Methods, II edition, Biztantra.
Best W. John, Kahn V. James, 2005, Research in Education, IX edition, Prentice Hall ofIndia
Pvt. Ltd.
Marketing Management, 12th edition, Philip Kotler, Kevin Lane Kotler, Published by
Prentice Hall, USA
Advertising and Integrated Brand Promotion, 4th Edition, Thomas C. O‟Guin, Christ.
Allen, Richard J. Semenik, Published by Thomson South-Western Publishing house.
Spacewood annual report 2012-13
Company’s Broacher
Company’s Magazine
ANNEXTURE
Questionnaire
Name…………………………………………………………………………………………
E-Mail ID……………………………………… Telephone…………………………………
Occupation……………………………………………………………………………………
1) What is your perception about Plywood prices?
d) Costly
e) Cheap
f) Moderate
2)What are the different types of Plywood you are aware of?
a) Less than 2
b) 2 to 4
c) 4 to 6
d) 6 and above
3) Which company do you prefer for plywood consumption?
e) Spacewood Industries Pvt. ltd.
f) Greenply Pvt. Ltd.
g) Century ply
h) Other
4) What are the reasons behind your ranking?
e) Brand Name
f) Good service
g) Good Quality
h) Any other reason
5) Are you aware of Spacewood Industry Pvt. Ltd.?
c) Yes
d) No
6) Have you ever used plywood of Spacewood Industries Pvt. Ltd.?
d) Yes
e) No
7) How satisfied are you with the variety in products offered by Spacewood?
f) Highly Satisfied
g) Satisfied
h) Neutral
i) Dissatisfied
j) Highly Dissatisfied
8) How satisfied are you with the pricing of Spacewood Products?
d) Satisfied
e) Neutral
f) Dissatisfied
9) How much money do you usually spend in Furniture?
e) Less than 1,00,000
f) 1,00,000 to 3,00,000
g) 3,00,000 to 5,00,000
h) Above 5,00,000
10) What is the single most important factor for you to choose Furniture’s?
d) Ambience/Experience
e) Value of money
f) For Comfort
11) How is your experience with Spacewood?
e) Excellent
f) Good
g) Satisfactory
h) Poor
Spacewood Nagpur (Head Office)
(Home / Kitchens & Wardrobes / Office)
T-48, MIDC Hingna Road
Nagpur, 440016
www.spacewood.in