1

A

PROJECT REPORT

ON

ESTIMATION OF MARKET SIZE AND POTENTIAL OF FIBRE CEMENT BOARDS FOR MUMBAI MARKET

FOR

EVEREST INDUSTRIES LTD.

SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF TWO YEAR FULL TIME COURSE

MASTER IN BUSINESS ADMINISTRATION

SUBMITTED BY

ANKIT SODANI (2005-2007)

BRACTS VISHWAKRMA INSTITUTE OF MANAGEMENT

PUNE - 411048

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CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. ANKIT SODANI, a student of our institute VISHWAKRMA INSTITUTE OF MANAGEMENT has successfully

completed the project on ESTIMATION OF MARKET SIZE AND POTENTIAL OF FIBRE CEMENT BOARDS FOR MUMBAI MARKET with specific reference to EVEREST INDUSTRIES LTD. undertaken in EVEREST INDUSTRIES LTD. from 1st June 2006 to 31st

July 2006

This is the original study of Mr. ANKIT SODANI. The sources used by him have been acknowledged by in his report. The report is submitted in the partial fulfillment of two

years full time course in MASTER IN BUSINESS ADMINISTRATION (2005

2007) as per the guidelines of the Pune University.

Prof. Yuvraj Lahoti Dr. Sharad .L. Joshi (PROJECT GUIDE) (DIRECTOR)

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Preface

As a part of M.B.A. it is required to present a project report. For this purpose one has to associate him self / her self with an industrial / commercial period of minimum eight weeks.

The project contains a comprehensive treatment of marketing research and its result in theoretical form as well as graphical presentation this will enable its implication for the company, its product, service and the consumer.

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Acknowledgement

It is always a difficult task to acknowledge all those who have been of tremendous help in an academic project of this nature and magnitude nevertheless, I have made a sincere attempt to express my gratitude to all those who have contributed to the successful completion of this project through this project report.

As I presents this report on Estimation of Market Size and Potential of Fibre Cement Boards For Mumbai Market In Everest Industries Ltd. West Zone Mumbai. I am aware of the humanity and gratitude towards all the individuals who have so kindly offered me their time, skill, knowledge, advice, and facilities, or guidance.

I am extremely grateful to Mr. Rahul Chopra

Vice President (Marketing) Everest Industries Ltd. West Zone Mumbai (Company guide) for giving me this opportunity to develop this project and making all the resources available to me with the intention of success of this project.

I would also like to thanks Mr. V. P. Singh Manager (Marketing) of Everest Industries Ltd. West Zone Mumbai (Company guide) for his idea, advice, knowledge, and about all his support throughout this project, which was constant source of inspiration.

I also take this opportunity to express my deepest gratitude to my Project Guide Prof. Yuvraj Lahoti (College guide) for his constant support, guidance and encouragement.

My special thanks to MANAGING DIRECTOR of EVEREST INDUSTRIES LIMITED INDIA for giving me the permission and opportunity to work in his esteem organization for 2 months internship program.

Last but not the least I would like to thanks my parents and my all family members, all the employees and all my friends who have always been a strong support during the entire course of my project and without their co-operation the completion of this project would not have been possible.

ANKIT SODANI

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Sr. No. Title Page No.

1. Executive Summary 1

2. Introduction to the Topic 2

3. Reason for Selecting the Topic 3

4. Objective of the Project 4

5. Company Profile 5

6. SWOT Analysis 12

7. Product Profile 13

8. Theoretical Background 16

9. Research Methodology 19

10. Data Analysis 22

11. Observations and Findings 35

12. Limitations 36

13. Conclusion 37

14. Suggestion and Recommendation 38

15. Bibliography 39

16. Annexure 40

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1. Executive Summary

The following report deals with the project undertaken for Everest Industries

Ltd. The company is in the manufacturing & marketing of fibre cement roofing

& building material products. It manufactures non-asbestos plain boards. It also

manufactures corrugate roofing sheets, flat fibre cement boards and E

BOARD CLASSIC (designer cement board). Everest is the first company to

launch fibre cement boards and designer boards first time in India. Everest is the

only company who manufacture quality non-asbestos cement boards in India.

The project is the study regarding ESTIMATION OF MARKET

SIZE/POTENTIAL OF FIBRE CEMENT BOARDS FOR MUMBAI

MARKET . The main objective of this project was determining the market size

and potential. The secondary objective was finding market share of Everest Ind.

And the competitors in Mumbai for fibre cement board market, potential in

project and retail segment, problems and weaknesses of the Everest fibre

cement boards and suggestions or recommendation for them. This project was

done particularly for fibre cement boards. The above tasks were very

challenging quite learning, which completed through an intensive research

conducted.

A systematic approach was used to achieve the above-mentioned objective. To

minimize the error and gather the correct information, survey technique was

used and structured questionnaires were prepared for dealers and retailers,

which include both close ended and open-ended questions. Personal interviews

and observation also proved very useful to collect the right information. For this

purpose, a sample area was taken under consideration

The project not only deal with the information regarding Everest cement boards

but of all other brands in the Mumbai market, the Everest cement boards had

some problems and findings, which work obstacles in the success of it in the

market. The report also deals with the suggestion and recommendation for them

company need to adopt in order to improve the market size and potential of the

brand.

The margin of error was kept as low as possible but existence of error would

have occurred because of limited time span.

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2. Introduction to the Topic

The topic of my summer project is Estimation of market size and potential of

fibre Cement Boards for EVEREST INDUSTRIES LTD; is first Indian

manufacturing company of fibre cement boards and designer cement boards.

In this project, it needs to understand the exact market potential of Fibre cement

Boards in Mumbai market and also the existing market share of E-Board .As

Everest is a pioneer in Fibre cement building products in India since 1934,

always try to be an innovative company and offers various customized products

in the market.

The main competitors existing in the market are Charminar, Bison boards,

swastik, Hilux, and to some extent Plywood & MDF, and also some other small

brands. EVEREST is the oldest and first company in this industry in India but

its product E

BOARD and E

BOARD CLASSIC is trying to reflect their

image as a Brand and trying to reach at a height where nobody can even

imagine. The brand is very popular and oldest in India. EVEREST brand is well

known in Mumbai.

The project for estimating market size & potential of the brand, market position,

size/potential of other brands, reasons for not expected potential of the brands

after well known of brand in Mumbai only. Company s weak points and other

problem and solution and suggestion for them so that company may be able to

know where does the brand stand? and what steps company needs to be

taken in order to increase the existing market potential of company, largest

market size or share of the brand? So that it may increase expected market

share of company. Any company cannot afford to be ignorant in the competitive

market if they want their products to be successful.

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3. Reason for Selecting the Topic

The topic for the project as mention earlier was to TOPIC which was not only

includes the market size, potential and, market share of the brand but much

others information too.

I was asked to collect all the information regarding brand and all different flat

cement board brands are available in the market, their market share, potential,

market size, E

BOARD and E

BOARD CLASSIC, its weak point or

problem and suggestion or recommendation for them. Thus, there was immense

work to do be done. This all does include a very intensive Market research.

Actually it involves field work as well as deep study of market mix of the brand.

An intensive market survey of dealers and retailers were needed to complete.

This topic was related to purely market survey and it was real market research.

Thus, the topic was interesting, challenging, learning, and very much real.

The company was facing the problem of availability, timely delivery / supply,

quality, and service, as compared to other brands in the market; the project was

a real challenge and so become interesting.

As the product was a BUILDING MATERIAL product and BUILDING

MATERIAL sector is the most booming, growing and competitive sector at this

era. In this sector much more scope of learning and much opportunity. This is

the sector, which gives that experience that no any other sector can give. No

marketer can survive in the competition in this sector without sound strategy

and policy. Therefore the project was challenging as well as learning.

I had to study the product market in depth and information regarding brand (E

BOARD and E

BOARD CLASSIC) not only for us but also about

competitors, their strategy, their strengths and company s weaknesses. This all

involves a deep market research and thus were quite challenging and

knowledge.

Thus, the project was great opportunity for me and as I always wanted to have

experience of the competitive BUILDING MATERIAL sector, hence I opted

for the project.

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4. Objectives

Title of the Project

Estimation of Market Size and Potential of Fibre Cement Boards for

EVEREST INDUSTRIES LIMITED

Objective of the Project

1. Primary Objective

The primary objective of the project is to determine the total potential of

fibre cement boards for Mumbai market.

2. Secondary Objective

1. To determine the Market Share of E-Board & Competitors

2. To determine the Present Market Position of E-Board

3. To determine the sale in project as well as retail segments

4. To identify the problems or any kind of steps that needs to rectify

5. Suggestions and Recommendations

Scope of the Project

The project was done for the fibre cement boards.

It was completed for the Everest industries ltd

Area for the study Mumbai and Thane district

Sample size was 210

It covers only west zone information.

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5. Company Profile

EVEREST INDUSTRIES LIMITED

About Company

Everest Industries Limited is the pioneer of the fibre cement products in the

country and is one of the fastest growing building material companies in India.

It started operation in 1934 at Kymore in Madhya Pradesh and today has 3 other

plants at Nashik in Maharashtra, Podanur in Tamil Nadu, and Kolkata. All the

manufacturing units are IS / ISO 9001:2000 certified. The Kymore and Podanur

in Tamil Nadu manufacturing units are also accredited with IS / ISO 14001, the

global standard for environment management system. The company has an all

India presence with a wide distribution network. It has a modern R&D center at

Nashik.

The company has a wide and well organized sales and distribution network all

over the country with a turn over of around RS. 200 crore (RS. 2 billion), the

company is going through a phase of consolidating its recently launched new

generation products and maintaining the leadership status in fibre cement

industry.

Everest Industries Limited is not only a manufacturer of corrugated roofing

sheets, accessories and cement board but also provide complete solution to your

need of industries and commercial roofing, exterior and interiors.

Everest Industries Limited pioneered fibre products in Asia and is one of the

fastest growing building material company in India. It started its operations in

1934 and today, has ultra modern exporting facilities spread across India. All

exporting units are as per IS / ISO certified.

We offer a versatile range of fibre cement products covering both roofing as

well as boards. Our product range has gained wide acceptance in Asia, Africa,

south pacific and Europe.

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Everest Industries ltd. is committed to retaining leadership in building material

through constant product innovation. Everest is also first company in Asia to

introduce compressed cement boards

E

Boards Endura . We have

experience in producing over 600 million sq. mt. of roofing and over 15 million

sq. ft. of fibre cement boards. Our currently capacity for producing non

asbestos fibre cement roofing and boards are 4.6 million sq. ft. and 10 million

sq. ft. per annum respectively. All our products conform to International

Standards and Manufactured with Latest European Technology.

We believe in providing more durable, more efficient, market oriented superior

alternatives to traditional building materials. This is achieved by continuous

product and process development though strong R&D and technically

competent manpower. The combinations of innovative building solutions along

with our trained manpower enable us to provide excellent pre and post

sales

service.

E

Board range of fibre cement boards is manufactured from a homogenous

mixture of Portland cement, treated cellulose fibres finely ground silica and

quartz and other select mineral fillers at a state

of

the

art unit using

sophisticated, digitally

controlled processes. The principal components of the

mixture are cement and cellulose fibre. Cement acts as a hydraulic binder and

the cellulose fibres interlock with the cement and quartz matrices to add

strength to the boards. Absolutely no asbestos is using during the entire process,

making our products 100% asbestos free.

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Company Photo

Network

The Company has direct sales Offices in each of the metro cities in India

supported by Sales representatives and Dealers all over the country. The

Company has also exported its highly successful product of fibre cement board,

designer board, acostyle and hi tech to the US and to a smaller extent, the

Middle East, Netherlands, Italy, Chaina and Germany.

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NEW DELHI (HEAD OFFICE &

NORTH ZONE)

MUMBAI (WEST ZONE &

REGISTERED OFFICE)

EVEREST INDUSTRIES LIMITED

EVEREST

HOUSE, E 62, GREATER

KAILAS, PART I, NEW DELHI

110048 INDIA

TEL. 91-11-23432568, 23432568

FAX 91-11-26464006

e-mail info@everestind.com

web site www.everestind.com

EVEREST INDUSTRIES LTD,ACC

LIMITED, RESEARCH AND

CONSALTANCYDIRECTORET, CRS

COMPLAX,LBS MARG THANE (W)

TEL; 91-22-55985914

FAX 91-22-55985913

e-mail wzsales@everestind.com

KOLKATA (EAST ZONE) TAMILNADU (SOUTH ZONE)

EVEREST HOUSE, 1 TARATOLLA

ROADGARDEN RESEARCH,

KOLKATA 700024 INDIA

TEL 033-24695814

FAX 033-24669920

Email ezsales@everestind.com

PODANUR P.O.COIMBATORE

641023 TAMILNADU INDIA

TEL 0422-2413816

FAX 0422-2413633

Email szsales@everestind.com

The company has identified 19 locations to appoint the sales team. The

locations along with the cities included in that location are listed in Table 1.

TERRITORY COVERED

NORTH SOUTH EAST WEST

Delhi Chennai Guwahati Mumbai

Chandigarh Coimbtore Kolkata Nagpur

Allahabad Bangalore Raipur Pune

Indore Hyderabad Bhubhneshwar

Ahmedabad

Jaipur Jamshedpur Surat

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15

List Of Competitors and With Chart (Graph)

Everest is the current market leader with 36% and the competitor of Everest

with market size in Mumbai market is listed below:

S.NO. COMPETITORS

NAME % OF

MARKET SIZE 1 EVEREST 36 2 BISON 33 3 CHARMINAR 17 4 SWASTIK 6 5 SHAKTI 4 6 HILUX 2 7 LOTUS 2 8 TOTAL 100

EXISTING COMPETITORS

36%

33%

17% 6%

4%

2%

2%

EVEREST

BISON

CHARMINAR

SWASTIK

SHAKTI

HILUX

LOTUS

Interpretation

Mumbai market is very competitive market because there is maximum number

of competitors and brands are available. In cut throat competition like this, to

maintain the market leadership is very difficult task. There is the graphical

presentation and list of competitors are available with the market share. Out of

100% market Everest is the current leader of market with share as 36% where as

Bison and Charminar are biggest competitors with leading market share of 33%

and 17 % respectively. Other companies share remaining pie with respective

market share.

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Organization chart

Managing Director

Executive Director

Vice President (west zone)

Confidential Secretary

DGM (Roofing) Manager Finance

DGM (Boards)

Manager (Mkt) (MAH)

Manager (Mkt) (GUJ)

Accountant

Cash Officer

Mumbai

Gujarat Maharashtra

ASM Mumbai

ASM

RoM

ASM

Gujarat

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6. SWOT Analysis

Strengths

70 years of rich experience

Technical expertise

Strong Research & Development support

Brand name

Weakness

Non availability in boards

Some quality issue

lack of systemized after sales service & feedback

Opportunity

construction industry is rocking

As Everest has got good technical expertise, they can enter into the

different segment with these products.

Threats

Strong will of our competitors to enter into our area of expertise.

Lot of other brands coming in India. Foreign players are also willing to

get into this segment

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7. Product Profile

Product Range

Everest Industries Ltd. is the pioneer of the fiber cement product in the

country. It is a manufacturing company. It has many numbers of products in its

product line. It produces 7 different type of fibre cement product.

Board

E Board : Multipurpose Cement Boards

E Board Classic : Designer Cement Boards

E Board Endura : Compressed Cement Boards

E Grid : Suspended Ceiling Grid System

Acostyle : Mineral Fibre Boards

Rapicon : Sandwiched panel for faster construction

Roofing

Everest :Corrugated Fibre Cement Roofing System

Everest Hi Tech :Modern non

asbestos fibre cement roofing System with

HIPP (High Impact Poly Propylene) technology

Others

Roofing accessories like Ridges, Gutters, and North Light Curves etc.

Refuse Disposal System, Septic tanks and custom made fibre cement

About Products

E Board

- Multipurpose Cement Boards

E

Board

a combination of cement, selected mineral fillers with interlocking

cellulose fibres, is manufactured through high pressure steam curing (autoclave)

process.

This unique composition and manufacturing process enrich E

Board with

attribute of fire, termite and moisture resistance, dimensional stability and easy

workability (easy to cut, saw, nail, screw, drill) thus making it the most

preferred and first choice of the architects and interior designers.

The versatile E

Boards is ideal for false ceilings, Partitioning, Wall Paneling,

Doors, Backliners, Pre

fab constructions and many other innovative

applications.

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E Boards Classic

- Designer Cement Boards

E Boards Classic is a designer cement board. It is versatile, ready to install pre

Primered, designer cement board for interiors. It is available in a wide range

of attractive, self embossed surface texture to choose from.

The only one of its kinds, E

Board Classic offers a combination of the

excellent functions properties of fibre cement and stylish elegant looks.

Ideal for a wide range of interior applications in residential, commercial and

industrial constructions, E-Board Classic offers exceptional aesthetic appeal.

Its strength and flexibility ensure work ability and minimal breakage and

wastage.

E Board Classic is available in following alternative surface textures:

Lake & Hill

Occeanic

Cascade

Electra

E Boards Endura - Compressed Cement Boards

E

Boards Endura is durable strong cement based building boards with a

smooth, flat surface.

Ideal for wet area flooring, mezzanine flooring, external decking, dry wall

partition, permanent shuttering, steel structural encasement, eaves and soffit

lining, roof sarking etc

Excellent for load bearing external panels

A superior choice for durable & aesthetically appealing façade systems

E Board Endura accepts all type of paints and surface finishes.

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E Grid

- Suspended Ceiling Grid System

E

Grid - Suspended Ceiling Grid System is a light

weight, pre

engineered,

pre

coated exposed laying system which can be easily and quickly assembled

at the site to form an aesthetically appealing and economical suspended ceiling.

All E Grid components are compatible with all standard fitting and fixture like

air conditioning ducts & diffuser, smoke detectors, fire extinguisher etc. and are

also compatible with standard illuminating system to provide a better

appearance to the interiors.

Everest

- Corrugated Fiber Cement Roofing System Roofing Excellence Since

1934

Everest Corrugated Sheets are made from the finest quality of cement and fibre

through a specially developed fibre orientation process. They undergo rigorous

quality control system

standards which are higher than ISI

giving you a

product of lasting value.

Everest Hi Tech

- Modern non asbestos fibre cement roofing System with

HIPP (High Impact Poly Propylene) technology

Everest Hi

Tech is a modern non

asbestos corrugated roofing system using

the specially HIPP technology (High Impact Poly Propylene). It is

manufactured in a world class production facility, conforming to all relevant

International Standards.

ideal for wide range of roofing and cladding solution for factories and

warehouses in industries such as petrochemicals, food, pharmaceuticals,

automobiles, engineering, metallurgy etc. Excellent roofing and cladding

solution for hotels, resorts and villas

Acostyle

- Mineral Fibre Acoustic Ceiling Tiles

Acostyle

the latest in fashionable acoustic ceiling tiles from the house of

Everest

A company internationally known for its high quality and holistic

building solutions. With the great look and acoustical quality it will change the

way interiors look and sound forever.

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8. Theoretical Background

Marketing Strategy

Following a successful concept test, the new

product manager will develop a

preliminary marketing strategy plan for introducing the new product in the

market. The plan consists of three parts.

1. The first part describes the target market s size, structure, and behavior, the

planned product positioning; and the sales, market share, and profit goals

sought in the first few years:

2. The second part outlines the planned price, distribution strategy, and the

marketing budget for the first year.

3. The third part of marketing

strategy plan describe the long run sales and

profit goals and marketing mix strategy over time:

Business Analysis

After management develops the products concept and marketing strategy, it can

evaluate the proposal s business attractiveness. Management needs to prepare

sales, cost, and profit projections to determine whether they satisfy company

objectives. If they do, the concept can move to the development stage. As new

information comes in, the business analysis will undergo revision and

expansions.

Estimating Total Sales

Total estimated sales are the sum of estimated first

time sales, replacement

sales, and repeat sales. Such estimation methods depend on whether the product

is a one

time purchase (such as an engagement ring or retirement home), an

infrequently purchase product, or frequently purchased product. For one

tome

purchase product, sales rise at the beginning, peak and later approach zero as

the number of the potential buyers is exhausted. If now buyers keep entire the

market the sales will not go to down zero.

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Infrequently purchase products

such as automobiles, toasters, and industrial

equipment

exhibit replacement cycles dictated by physical wearing out or by

obsolescence associated with changing style, features, and performance. Sales

forecasting for this product category calls for estimating first

time sales and

replacement sales separately.

Frequently purchase products, such as consumer and industrial nondurable,

have product life

cycle sales resembling. The number of first time buyer

initially increase and decrease as fewer buyer left (assuming a fixed population).

Repeat purchases occur soon, providing that the product satisfies some buyers.

The sales eventually falls to a plateau representing a level of study repeat

purchase volume; by this time the product is no longer a new product.

In estimating sales, the manager s first take is to estimate first time

purchase

of the new product in each period. To estimate replacement sales, management

has to research the product survivals

age distribution

that is, the number of

units that fail in year one, two, three and so on. The low and of the distribution

indicates when the first replacement sales will take place. The actual timing will

be influenced by a variety of factors. Because replacement sales are different to

estimate before the product in use, some manufactures base the decision to

launch a new product solely on the estimating of the first time sales.

For a frequently purchased new product, the seller has to estimate repeat sales

as well as first time sales. A high rate of repeat purchasing means the customers

are satisfied; sales are likely to stay high even after all first time purchase take

place. The seller should note percentage of repeat purchase that takes place in

each repeat

purchase class: those who rebuy once, twice, three times, and so

on. Some products and brands are bought a few times and dropped.

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Estimating Cost and Profits

Costs are estimated by the R&D, manufacturing, marketing and finance

department.

Companies use other financial measure to evaluate the merit of a new product

proposal. The simplest is break even analysis, in which management estimates

how many units of the product the company would have to sell to break even

with the given price and cost structure. Or the estimate may be in terms of how

many years it will take to break even. If management believes sales could easily

reach the break

even number, it is likely to move the project in to product

development.

The most complex method of estimating profit is risk analysis. Here three

estimates (optimistic, pessimistic, and most likely) are obtained for each

uncertain variable affecting profitability under an assumed marketing

environment and marketing strategy for the planning period. The computers

simulates possible out comes and computers a rate

of

return profitability

distribution showing the range of possible rates of return profitability

distribution showing the range of possible rates of returns and their

probabilities.

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9. Research Methodology

Meaning:

Research means the process of getting knowledge and that can be carried out

either arbitrarily or in a systematic fashion. It is a purposive investigation.

Research process involves defining the problem, formulating the hypothesis,

organizing and evaluating the data, deriving inference and conclusion after

careful testing.

Definition:

According to Bery A careful investigation or inquiry specially through search

for new facts in any branch of knowledge

Redman and mory defined research as Systematized effort to gain new

knowledge

For every comprehensive research, a proper research methodology is

indispensable and it has to be properly conceived. The methodology adopted by

me is as under:

Data to be Collected

Data includes facts and figures, which are required to be collected to achieve the

objective of the project. In order to determine the current market size, potential

and market share of E

BOARD the information needed to be collect can be

classified into following two types-

Primary Data

The data that is collected at hand and for the first time or to particularly fulfill

the objective of the project and happen to be original in nature is known as the

primary data.

The primary data were collected through stockists, dealers and retailers survey

and survey was conducted through interview, observation, and questionnaire

prepared for them.

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Secondary Data

Secondary data are that type of data, which are already collected, available,

analyzed, or assembled by someone else. And need not to collected from

outside. These types of data were

a. Company profile

b. Product profile

c. Competitor knowledge

The aforesaid data were collected through Internet and company s financial

reports, newspapers, and interior products magazines.

Data Collection Method

For given project, the primary data was more significant. This type of

information gathered through survey technique, which is the most popular and

effective technique for correct data collection. The survey was completed with

the use of questionnaires and observations. There was questionnaire for survey

of dealer, stockiest, and retailers.

a) Questionnaire for stockiest, dealers & retailers

b) Observations

Dealers and retailers as the elements of channel of distribution are the most

significant for the success of a building material product; they were taken under

consideration as the samples for the survey. The questionnaire is present further

in the annexure.

Sampling

Sample is the small group taken under consideration from the total group. The

small group represents the total group, in the project the market segment, which

was ask to be studied was Mumbai market but there was a limitation of the

project to approach all the stockiest, dealers and retailers of the city. The areas

selected for the sample are present further in annexure.

26

Calculation of sample size is based on random sampling technique for the

project & contact method is direct survey.

Sample Space Mumbai Market

Samples Dealers / Sub Dealers & Retailers

Sampling Technique Random Sampling

Sample Size 90Dealers / 120 Sub Dealers & Retailers

Contact method Direct Survey

Total Sample Size 210

S. No. Area covered No of outlets covered

1. Dader 20 2. Thane 15 3. Maszid 20 4. Byculla 20 5. Ghatkopar 15 6. Vashi 15 7. Colaba 7 8. Grat road 15 9. Santacruze 12 10. Dahisar 6 11. Andheri 20 12. Chembur 9 13. Malund 13 14. Vile Parle 15 15. Malad 12 16. Ulhas Nagar 7 17. Panvel 6 18. Total 210

Mumbai more than 5000 outlets available but for the study of this particular

project, the above mentioned sample outlets were selected because of the

constraints like geographical coverage, time frame of the project.

Data Evaluation

The extensive data collected through the questionnaires was evaluated to arrive

at the market size, market potential and the market share of the company. This

compilation was put into the charts for getting the information at a glance and

easy availability for ready reference.

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10. DATA ANALYSIS

Total sales of cement boards in Mumbai of Everest and other brands

(Average monthly sales)

TOTAL SALES

36%

33%

17%

6%

4%

2%

2%

E BOARD

BAISON

CHARMINAR

SWASTIK

HILUX

SHAKTI

LOTUS

BRANDS TOTAL SALES

(TONNEGEWISE) MARKET SHARE IN %AGE (TOTAL MKT)

E BOARD 325 36

BAISON 300 33

CHARMINAR 150 17

SWASTIK 50 6

HILUX 40 4

SHAKTI 18 2

LOTUS 15 2

TOTAL 898 100

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Interpretation

A total average monthly sale of fibre cement flat sheets in Mumbai market is

898 MT considering the sample size of this particular project. Out of 898 ton

Everest is largest seller with 325 ton, subsequently Bison and charminar are

next competitors of Everest with 300 & 150ton avg. monthly sales respectively.

Remaining 123 tones avg. monthly sales is shared amongst other four

companies.

Everest sells around 325 MT out of 898 MT & has 36% of market share

being the brand is current market leader.

Bison captures 33% market share with the sale of 300MT and stands on

second position, which is closest competitor of Everest.

Charminar has 17% market share with the sale of 150MT, which can be a

future threat to both Everest and Bison. Shows that strong competitor of

Everest

Swastika has 6% market in fibre cement flat boards in Mumbai.

Hilux lotus and Shakti have got 4%, 2, and 2% market share respectively

from the remaining 8 %.

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Total sales in retail segments

(Average monthly sales)

BRANDS SALES

(TONNEGEWISE) %AGE MARKET SHARE (RETAIL)

BISON 150 32

E BOARD 130 29

CHARMINAR 90 20

SWASTIK 35 8

HILUX 27 6

SHAKTI 13 3

LOTUS 10 2

TOTAL 455 100

RETAIL SALES

32%

29%

20%

8%

6%

3%

2%

BISON

E - BOARD

CHARMINAR

SWASTIK

HILUX

SHAKTI

LOTUS

Interpretation

Total potential in retail segment is around 455 ton, amongst all Bison leads the

market by sales of150 ton (32%) followed by Everest with 130 ton (29%) and

then Charminar with 90 ton (20 %), remaining 85 ton (19 %.) is shared amongst

other 4 competitors.

30

Total sales in project segments

(Average monthly sales)

PROJECT SALES

44%

34%14%

3%

3%

1%

1%

E BOARD

BISON

CHARMINAR

SWASTIK

HILUX

SHAKTI

LOTUS

Interpretation

Total sales in project segment are around 443 ton. Amongst all E - Board leads

the market by sales of 195 ton (44%) followed by Bison with 150 ton (34%) and

then Charminar with 60 ton (14 %), remaining 38 ton (8%) is shared amongst

other 4 competitors.

BRANDS SALES

(TONNESWISE)

%AGE MARKET SHARE

(PROJECT)

E BOARD 195 44

BISON 150 34

CHARMINAR 60 14

SWASTIK 15 3

HILUX 13 3

SHAKTI 5 1

LOTUS 5 1

TOTAL 443 100

31

Comparative Total Sales in Retail and Project Segments

COMPARATIVE TOTAL SALES IN RETAIL AND PROJECT

130 15090

35 27 13 10

455

195150

6015 13 5 5

443

050

100150200250300350400450500

EVEREST

BISON

CHARMINAR

SWASTIK

HILUX

SHAKTI

LOTUS

TOTAL

BRANDS

SA

LE

S

RETAIL

PROJECT

Interpretation

This is the comparative presentation of total retail and project segment sales.

This chart showing that in retail segment competitors have got more market

share and in project segment Everest is current market leader.

32

Product Awareness about EBC or Equivalent Boards

RESPONSE NO.

% OF

AWARNESS

YES / EBC 170 81

EBC/EQUIVALENT

25 12

NONE 15 7

TOTAL 210 100

PRODUCT AWARENESS

81%

12%

7%

YES / EBC

EBC / EQUIVALENT

NONE

Interpretation

As far as dealers are concerned out of 210 dealers, 170 dealers are well aware of

EBC, which covers 81% of the total dealers surveyed. On the other hand 25

dealers are known to ECB equivalent like DECOCIL (15), NCL (6), SHERA

(1) and VISAKA (3). Only 15 dealers were not aware of any of the brands,

neither EBC nor any mentioned here.

33

Percentage Analysis of Brand Pull

PARTICULARS YES NO TOTAL NO.OF DEALERS 113 97 210

%OF BRAND PULL 54 46 100

RATIO OF BRAND PULL

54%

46% YES

NO

Interpretation

While survey out of 210 dealers sample it was found that the 54% consumers

are demanding for a specific brand of fibre cement board, where as 46%

consumers does not have demand of particular brands. So that it indicates

consumer are more aware about various brands available

34

Brand Pull for Various Brands

CONSUMERS BRAND PULL

29%

24%20%

11%

6%

5%5%

CHARMINAR

BISON

EVEREST

SWASTIK

SHAKTI

HILUX

LOTUS

Interpretation

The survey revealed that 29% consumers prefer Charminar in comparison to other

brands where as 24% consumer prefer Bison and brand pull of consumers is very

low for Everest i.e. 20% consumer come to purchase Everest out of 100% (113)

sample size. Rest of the four companies shares remaining market share .

BRANDS NO.OF

CUSTOMERS % AGE OF

CUSTOMERS CHARMINAR 32 29

BISON 27 24 EVEREST 23 20 SWASTIK 12 11 SHAKTI 7 6 HILUX 6 5 LOTUS 6 5 TOTAL 113 100

35

Factors Effects on Consumers Buying Behavior Consider In Brands Purchase

CONSUMER PREFERENCE FACTOR

41

31

20

7 59

05

1015202530354045

QUALITY

PRICE

SERVICE

AVAILABILI

TY

CREDIT

ANY OTH

ERS

FACTORS

VA

LU

E

FACTORS

Interpretation

Out of 113 dealers during the survey it was found that 41 consumers first

preference to Quality and want superior quality product, while 31 consumers

preference to price and 20 customers want service. Remaining give preference

to availability (7%), credit facility (5%), and other prefer well-known products

(9%).

FACTORS NO.OF CONSUMERS % AGE OF

PREFERENCE QUALITY 41 36

PRICE 31 28 SERVICE 20 18

AVAILABILITY 7 6 CREDIT 5 4

ANY OTHERS 9 8 TOTAL 113 100

36

Dealers Recommendation for Particular Brand

PARTICULARS YES NO TOTAL

NO. OF DEALERS 109 101 210 %AGE OF

RECOMANDATION 52 48 100

RATIO OF RECOMMENDATIONS

52%48% YES

NO

Interpretation

Out of 210 dealers it was found that 109 (52%) dealers recommend specific

brands and 101(48%) dealers does not recommend any brand. Ratio of dealer s

recommendation is higher over dealers not recommend

37

Analysis of Particular Brand Recommended by Network

BRANDS

NO. OF DEALERS

RECOMMENDING

% AGE OF DEALER

RCOMMENDATION

CHARMINAR 31 29

BISON 24 22

EVEREST 20 18

SWASTIK 13 12

SHAKTI 9 8

HILUX 7 6

LOTUS 5 5

TOTAL 109 100

RECOMMENDATION OF NETWORK FOR PARTICULAR BRAND

29%

22%18%

12%

8%

6% 5% CHARMINAR

BISON

EVEREST

SWASTIK

SHAKTI

HILUX

LOTUS

Interpretation

Out of 109 samples it was found that 29% dealers recommend Charminar brand,

22% dealers recommend Bison and only 18% dealers recommend Everest. So it

clearly shows dealers are least interested with the brands and not happy with

brand policy. Remaining around 34 dealers (31%) recommend other brand.

38

Motives of Dealers For Recommending Particular Brand

DEALERS MOTIVES FOR RECOMMENDING A BRAND

21%

19%

17%

15%

8%

6%

6%

5%

3%

AVAILABILITY

SUPPLY

MARGIN

PRICE

QUALITY

SERVICE

TECHNICAL SUPPORT

COMPANY GOODWILL

CREDIT FACILITY

Interpretation

The survey showed that out of 109 samples

21% dealers give first preference to availability

19% give preference to supply.

17% give preference to margin.

15 % give preference to price.

8 % give preference to quality.

6% give preference to service.

Remaining 14% give preference to technical support, goodwill of

company and the credit facility respectively.

REASON NO. OF DEALERS %AGE OF DEALERS

AVAILABILITY 24 21 SUPPLY 21 19 MARGIN 18 17

PRICE 16 15 QUALITY 9 8 SERVICE 7 6

TECHNICAL SUPPORT 6 6 COMPANY GOODWILL 5 5

CREDIT FACILITY 3 3 TOTAL 109 100

39

Modes of Advertisement

MODE NUMBER OF

DEALERS %AGE OF

PREFERENCE WALL PANTING 75

37

HOARDINGS 57

27

RADIO 49

23

TELEVISION 13

6

NEWS PAPER 9

4

DIRECT MAIL 7

3

TOTAL 210

100

EFFECTIVE MODE OF SALES PROMOTION

37%

27%

23%

6%

4% 3%

WALL PANTING

HOARDINGS

RADIO

TELEVISION

NEWS PAPER

DIRECT MAIL

Interpretation

The survey conducted among 210 dealers showed that 75 dealers suggest that

company should advertise through wall paintings, where as 57 suggest that

advertisements to be on hoarding board and 49 dealers suggest that radio

advertisements to be aired and remaining 13% suggested that it should be T.V.,

Print media and Direct mail as the mode of advertisement.

40

11. Findings

Findings of the project are listed below:

1. Availability of material is the great problem of E

boards. The fibre cement board

industry on overall basis facing lot of shortage because of lot of demand against the

short supply. Everest products have very much demand in market but company not

able to fulfill the same.

2. Timely delivery of material is also great problem of Everest. Company is not able

to deliver the material at right time, at right place, at right quantity.

3. As far as quality concern the quality of E

BOARD quality is not so good

especially in 4 & 6 mm thickness.

4. Company does not have stock depot or warehouse in Mumbai city or near to city

for E - BOARDS. So it takes more time in delivery of retail orders.

5. Everest has 0.4% breakage policy that s why it creates an entry point for the

competitors into the E-Board network.

6. Selling price of Everest is more in compare to our competitors.

7. Dealers are not confident enough on E-Board availability.

8. No Hoarding has been placed for E-Boards within the Mumbai Market due to

which some Brand visibility issue is their in the Network.

9. Insufficient manpower to handle a large geographical territory in Retail.

10. Margin of the product E

Board for dealer is less compared to other substitute

products in category.

11. Due to non availability of fast moving item like 4 mm and 6 mm of E-Board, now

the network is tending towards other

41

12. Limitations

The research project had some limitations that are listed as below.

1. TIME FRAME: The time allotted for the project was two months, was

major constraint for the study.

2. GEOGRAPHICAL COVERAGE: This study was limited to Mumbai

territory only.

3. CASUAL RESPONSES: It was difficult to obtain data from each

respondent concerned. There are always some respondents that refuse to

give any information. Sometimes some respondents must have answered

casually and did not give correct information.

.

4. SAMPLE SIZE: The project was restricted for a particular sample size

or the part of network channel. The random sampling technique could

have lead to chances of some errors.

42

13. Conclusion

E

BOARD is a prime product offered by Everest industries limited and in

mumbai market it has got a good brand name in projects and retails both. But in

last one year due to non availability of material network are little bit confused

and that s why some of them had shifted to other brand in retail.

The fact and figure itself talk about the market potential of brand and

competitors. In mumbai market EIL has got maximum potential and market

share with good brand name. Bison and charminar is the strong competitors of

brand. Everest is the current market leaders but it facing the some problem of

Availability, Timely delivery, service and quality. Company must improve

Availability, Timely delivery, service and quality by considering

recommendation and findings otherwise brand may loss the market position and

competitors may market leaders.

Although E Board has got a good name and most of the dealers are willing to

deal with E Board only so EIL has to focus towards the points recommended in

this project report.

43

14. Recommendations

1. Company should increase the production capacity.

2. Company should bridge the gap between demand and supply with effectiveness

measures like establishing Depot in Mumbai for E-Board.

3. Company should focus on quality issue of E-Board 4 & 6 mm and even E-

Board Classic 4 & 6 mm as these are the sizes which are fast moving in

Mumbai market.

4. Company must improve the logistic management and cost and time effective

transport facilities.

5. Company should provide after sales service to consumer by adopting best

consumer relationship management.

6. Company should provide timely delivery by six sigma model, like i.e.

dabbawala, McDonald, pizza hut.

7. Company should give the maximum benefit to distributors by introducing some

kind of lucrative schemes to motivate their network to sell more as well as

increasing their profit margins.

8. Company should also think about establishing some hoardings at strategic

locations to increase the visibility of the Brand.

9. Wall painting also can be done in outskirt of Mumbai markets.

10. Brand should be advertised on radio, television and print media at local and

national level in local language during some festive seasons.

11. Manpower should be designed in such way so that every part of the mumbai can

be covered very effectively, that is the way we can increase our retail sale.

12. We should come out with some good policy to take care of the breakages, so

that the co. and their dealers get satisfied with the policy.

13. Company should sale the product on the basis of (USP) unique selling

proposition.

14. Company should adopt the (JIT) Just in Time model for cost effectiveness and

availability, Total Quality Management model (TQM) for quality, and Six (SS)

Sigma model for good service i.e. dabbawala, pizza hut, McDonald.

15. Company should take the systemized feedback of consumers and provide after

sales service and also customer loyalty program should be organised

16. Company should encourage the sub dealers and retailers also.

44

15. Bibliography

BOOKS

Marketing Management Philip Kotler.

Marketing Management Rajan Saxena.

Research Methodology C.R. Kothari.

Marketing Research Beri.

MAGAZINE AND JOURNALS

Inside & Outside.

REPORTS

Monthly Report of the Company.

WEBSITE

www.everestind.com

www.google.com

45

16. Annexure

Questionnaires for dealers

Fibre cement boards

1. Do you deal with fibre cement boards?

Yes / No

2. How many brand you deal in your business? (Please mention name)

a) _____________, b) _____________, c) _______________

d) _____________, e) ______________, f) _______________

3. Do people come to you asking for a particular brand of fibre cement boards? Yes / No If yes then which brand and reason?

4. Do you recommend any specific brand of fibre cement boards? Yes / No If yes then which one and why do you recommend particular brand?

5. How much is the average monthly sale of fibre cements Boards / equivalent from your business?

Dealers Boards

Average Inventory

Level Retail Project

E Boards Charminar

Bison Swastika

Hilux Shakti Lotus Total

6. Are you aware of designer fibre cement board / equivalent? If yes which brand?

a) ______________, b) ______________, c) _____________

d) ______________, e) ______________, f) ______________

46

7. Rating the product on the basis of service / availability?

8. Could you suggest which company has maximum dealers in Mumbai?

Ans.

9. Which company does more and effective advertisement and sales promotion activity?

Ans.

10. Do you think advertisement increase sales and market share of company? If yes which media is more effective in your view?

Wall Painting [ ] Hoarding [ ] Television [ ] Radio [ ] Print media [ ] Direct mail [ ]

11. How many competitors are available in market for FC Boards / Equivalent?

S. no. Name

Products Rank

E Boards Charminar

Bison Swastik Hilux Shakti Lotus

47

NOTE:-

Name of the firm M/s. ..

Address .

...

Respondent s name ...

Type of business

Designation

Date & Time ..

Phone No. ..

Email ____________________________________________

48

Survey Area and Number of Covered Outlets

Survey for the whole Mumbai city a sample was selected for this purpose which

represents the total group. The area which was the selected and number of

outlets covered in particular area are as under

S. No. Area covered No of outlets covered

1 Dadar 20 2 Thane 15 3 Maszid 20 4 Byculla 20 5 Ghatkopar 15 6 Vashi 15 7 Colaba 7 8 Grat Road 15 9 Santacruze 12

10 Dahisar 6 11 Andheri 20 12 Chembur 9 13 Malund 13 14 Vile Parle 15 15 Malad 12 16 Ulhas Nagar 7 17 Panvel 6 18 Total 210

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