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INTRODUCTION

Introduction to Sanitary ware industry

India is a large, highly populated Country of around one billion people, with an economy,

which is steadily growing. As per the study, there were an estimated 125 million dwellings in

India (1995), but 200 million households. This reveals an acute housing shortage. The U.N.

predicts an increase in the population of 1.6% per annum. There is a gradual migrant shift

from rural to urban areas and 27% of the population now lives in urban areas as compared to

20% in 1971. There is a large difference in amenities between the urban population and the

rural. In 1994, 70% of the urban population had access to adequate sanitation, whereas in the

rural community only 14% had access.

In 1991, approximately 64% of urban households had some kind of toilet facility compared

with 9% of the rural areas. There is a widening difference in income between different

regions, the rich and the poor.

Sanitation is a must for every individual of our society. According to the Government

estimates, more than 50% of the urban population does not access to sanitation facilities.

Condition of the rural areas is that only 6% of the population is covered by sanitation.

Sanitary ware Demand

Sanitary ware Industries in India for the last 6-7 years has shown very dramatic growth with

major players doubling their production capacity. The Companies have also upgraded their

manufacturing system by introducing Battery Casting, Beam Casting and have gone in for

latest imported Fast Firing Cycle Kiln Technology. These Companies have also upgraded

their quality and have introduced high value range in the market, which has been accepted

and appreciated. The demand for high value sanitary ware in India is growing very fast. The

Companies are trying to meet the demand as the realization per Metric Ton for high value

product is very good which ultimately results in good profitability. In order to educate the

customers in India to go for quality products and also for higher value sanitary ware,

companies have adopted a very aggressive advertisement campaign. Companies have also

strengthened their dealer network by offering showroom incentives and some of the

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companies have also gone for their own retail outlets in major towns. The demand for

sanitary ware in India is growing @ 15% -17% every year

The sanitary ware industry in India is divided in two sectors. The organized sector consisting

of 5 companies (M/s. Hindustan Sanitary Industries Limited, M/s. E.I.D. Parry, M/s. Swastik

Sanitary ware Limited, M/s. Madhusudan Ceramics, M/s. Neycer India Limited),

manufacturing sanitary ware for the last 15-20 years and have established their Brand image.

The organized sectors produce fully vitrified sanitary wares, using latest technology and best

of Ceramic Raw Materials available in India. The unorganized sectors have adopted local

Indian technology to manufacture the basic sanitary ware products. Since the availability of

raw material is in abundance and also very cheap in the state of Gujarat & Rajasthan, various

companies have established their factory in these areas. They are producing the basic sanitary

ware in various brands. Unorganized sector's percentage of production capacity and also their

sales in the local domestic market are higher than that of the organized sectors' sales.

Unorganized sanitary ware manufacturer comes under small sectors and hence enjoy the

benefit of Nil Excise Duty and Sales Tax and hence they sell their products in the domestic

market approximately 70% cheaper than the organized sector products.

Opportunities

Government of India Policy on Housing Sector is very encouraging. The Government has

announced Income Tax rebate on housing loan to boost the housing sector. All financial

institutions are lending money for construction of house at a very low rate of interest.

Government figure shows that Housing Sector is growing by approximately 25% every year.

The need of Housing in India with 100 crores population looks to be very potential. As per

DGTD Survey Report there is a shortage of about 20 million houses in the country by the end

of 8th Five Year Plan. The housing has become a basic necessity, as people in India are

looking forward for improved sanitary condition. The concept of making toilet is fast

growing even in village areas, where toilet till last two years did not exist.

The cost of producing sanitary ware in India is substantially low as compared to the advance

countries, because the labour cost and the basic raw materials for manufacturing quality

sanitary ware is available at very cheap rate and in abundance. Because of our low cost of

production, Indian sanitary ware is very competitive in the neighboring countries and hence

export from India is also growing every day.

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Current Market Size:

Indian Sanitary ware Market: 1300 Cr (approx)

Growth Rate (India Domestic Market): 10%

Sector Segregation:-

Organized: 43 % (Rs. 559 crores)

Unorganized: 57% (Rs. 741 crores)

Gujarat Sanitary ware Market Size: 125 Cr.

Organized: 25 Cr.

Unorganized: 100 Cr.

MAJOR PLAYERS:

1. CERA

2. HINDWARE

3. PARRYWARE

OTHERS:

1. KOHLER

2. TOTO

31%

34%

21%

14%

Market Size

Parryware HindwareCeraOther

Figure 1.1

Outlook for Sanitary ware Industry in India

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In the next decade, India is expected to be one of the world's fastest growing countries for

sanitary ware consumption. The sanitation penetration has more than trebled from 8% in

1982 to 18% in 1994 and to 29% in 1999.

The comparative penetration levels in neighboring countries are as follows: Pakistan: 50%,

Sri Lanka: 65%, Malaysia: 94% and Thailand: 96%.

The government impetus to improve hygiene and sanitation is likely to increase the demand

for sanitary ware in India. Moreover the increasing urbanization of India and the consequent

requirement for residential and commercial buildings will be a major driver for growth of

sanitary ware. Along with this the focus of the central and state governments to provide

housing facilities to the poor, is also expected to generate demand.

The National Housing Policy formulation that envisages "Housing for all" by the end of

Ninth Plan period is a big step towards this. Indira Awaas Yojana, Samgra Awaas Yojana is

programs for providing housing to the rural poor is a key step taken by the government in this

area. The housing development organizations like HUDCO, State Housing Development

Boards and Rajiv Gandhi Rural Housing Corporation Ltd. are also playing a large role in this

initiative.

It is estimated that there is currently a demand for 20 million housing units in India. Further,

a significant number of the 115 million housing units across the country will need

reconstruction for improvement. Therefore a replacement market will emerge, though

currently original equipment sanitary ware market accounts for nearly 90% of the market.

COMPANY PROFILE

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Introduction to CERA Sanitary ware Limited

Launched in 1980, Cera is a pioneer in the sanitary ware segment in India. The first sanitary

ware company to use natural gas, Cera has been on the forefront of launching a versatile

colour range and introducing the bath suite concept. It also launched innovative designs and

water-saving products. The twin-flush model launched in India by Cera for the first time,

reduces the water needs of households considerably. WCs designed to flush in just 4 litres of

water is another notable innovation by Cera.

 

Based in Kadi, Gujarat, Cera Sanitary ware Ltd. uses International technology, which has

ensured Cera’s superiority over others in quality. Established with an initial capacity of 3,600

MTPA, the plant has undergone several periodical up gradations and modernizations to

expand to 25,000 MTPA.

 

To achieve growth in the rapidly changing retail market in the country, Cera, has launched its

one of a kind Cera Bath Studios in Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin and

Hyderabad, Mumbai. With the opening of the Cera Bath Studios, the discerning consumers,

architects and interior designers can have full view of the Cera’s premium ranges of WC’s,

Wash Basins, Shower Panels, Shower Cubicles, Bath Tubs, Shower Temples, Whirlpools, CP

fittings etc. Cera Bath Studios will complement its existing network of 600 dealers and 5000

retailers. Several Bathrooms are displayed live, so that the customers can get a feel of Cera’s

vast range of products.

 

Having shown a growth rate of more than 25% since last 3 years, Cera Sanitary ware Ltd.

today is the fastest growing sanitary ware company in India.  For its contribution towards the

industrial growth, Cera's ED 'Mr. Vidhush Somany' received "The Nirman Ratna Award" in

September 2010.

 

Regd.Office&Works

 

9, GIDC Industrial Estate,

6

Kadi 382715,

Dist. Mehsana,

North Gujarat

Phone: (02764) 242329, 262619, 262638, 263874, 321949

Telefax: (02764) 242465

Email: kadi@cera-india.com

 

Head Office

 

Madhusudan House,

Opp. Navrangpura Telephone Exchange,

Ahmedabad 380006

Phone: (079) 26449781, 26449789

Fax: (079) 26569259

Email: marketing@cera-india.com

HISTORY OF CERA SANITARY WARE LIMITED:HISTORY OF CERA SANITARY WARE LIMITED:

Vikram Somany, Chairman & Managing Director of Cera Sanitary ware Limited. Mr.

Somany possessed entrepreneurial spirit even while he was managing Madhusudan Industries

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Limited in Gujarat. This company was into production of vegetable oils and vanaspati. The

turning point came into the company when Mr. Somany met a government delegation in

1978.When he signed the MoU to commence the sanitary ware manufacturing unit in Kadi in

North Gujarat using natural gas, the first of its kind in India. It was a kind of milestone. And

it was just the beginning.

Of course, one might argue that Mr. Somany had entrepreneurship in his blood and had also

inherited the understanding of this industry. His father had rich experience in sanitary ware.

He along with his brothers had pioneered sanitary ware in India in the early sixties by setting

up a manufacturing unit, Hindustan Sanitary ware, in collaboration with Twyfords of UK.

Yes, this did give Vikram Somany some kind of background. Also, there was a market

opportunity. But Cera's success does not rest on these two factors. It rests on his ability in

transforming the opportunity into a business success. The opportunity was open for others as

well but Cera made the most of it. Though those were the days of sellers’ market for sanitary

ware, most companies, which went into production around the same time as Cera, did not

succeed later. So what was it that Cera did different? The quality of Cera matched

international norms. Cera focused on creative designs and paid equal attention to after-sales

service with the differentiating factor. Moreover, Mr. Somany did not neglect the other

relevant business aspects as well. Cera went on to create history with its advertising

campaign in the early 1980s: Your Bathroom is a Room Too…" An entrepreneur is

successful because he understands and respects the three Cs: customer, change and

competition. Apart from Cera, the other two major players are Parry ware and Hind ware.

Both have larger production capacities than Cera currently Cera, however, is now expanding

its capacities

To maintain that edge in the market, Cera keeps upgrading and increasing its product

portfolio regularly. Cera also recognizes its responsibility towards environment. Like the

other two major players in the organized sector, In fact, it’s gone a step ahead.

Well, looking at Cera's track record, Mr. Somany's vision is soon likely to be transformed

into reality. He is himself quite confident about it because he has built a strong team. Success

tips from Mr. Somany of Cera Identify market opportunities Create a dedicated team and give

it fully operational freedom Concentrate on brand-building right from the beginning

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Recognize social and environmental responsibilities Follow international norms of quality

Keep innovating the product offerings Provide good after-sales service.

MISSION OF THE COMPANY

To setup and carry out research and development for the manufacture and development of

sanitary ware products.

Provide high quality to sanitary ware products.

The Company is aiming to achieve 50-60% of market share for every product.

VISION OF THE COMPANY

To be a total home solutions provider in the long run, providing products for every room in

the home.

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PRODUCT PROFILE

1. Sanitary ware:

Figure 2.1

Premium Collection

a) Clair

b) Cornet

c) Caliber

d) Casino

1.2 Regular Collection

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a) EWCs & Squatting Pans

Figure 2.2

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Figure 2.3

b) Sinks and accessories

Figure 2.4

c) Washbasins

Figure 2.5

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13

d) Urinals & Sensors

Figure 2.6

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Exclusive Export Range

Senator collection

a) Calida Table Top

b) Capsule Wash Basin

c) Casablanca Bath Suite

d) Celebrity Bath Suite

e) Chancellor Bath Suite

f) Clarion

g) Cosmo Bath Ware

e) Coupe

f) Cruse Bath Suite

Wall hung basin

Figure 2.7

a) CLAIR (EWC Wall Hung)

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b) CALIBRE (EWC Wall Hung)

c) CIRCLE (UNDER-OVER COUNTER)

d) CLASSIC (EWC Wall Hung 'P' -SEAT COVER)

e) COMET (Counter Top Wash Basin)

f) OVAL (Under, Over Counter Wash Basin)

Glass Basins

Figure 2.8

Cathie_GB152 Glass Basin

Charmaine_GB141 Glass

Chrystina-Tempered Glass Basin

Cleo_GB115-Glass Basin

Cleopatra_GB131 Glass Basin

Correa_GB120- glass basin

SHOWER RANGE:

Figure 2.9

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Shower Cubicles

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Figure 2.10

Cadet_8841- Shower Partition

Candila-Shower Cubicle (with shower tray)

Cocoon-Shower Cubicle (with shower tray)

Cupid_Shower Tray, Hot & Cold Mixer with divertor, Shower Jets Rain-Shower & Hand-

Shower, Foot Massager.

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czarina_8711-Bath Tub with Whirlpool, Hot & Cold Mixer with divertor.

WHIRLPOOL & BATH TUBS:

Figure 2.11:

Carol-Bath Tub

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Cielo Bath Tub

Colleen_8012-Whirlpool, Hot & Cold Mixer with Divertor,

Corner Panel (One-Piece) corner.

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Cushan-Hot & Cold Mixer with Diverter.

Pozzi Ginori

Figure 2.12

International presence and exports

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CERA has exported, in the past, to developed countries like the US, huge quantities.

However, as the domestic market was giving better realization, CERA has to curtail its

exports. Currently, CERA has presence in several markets like Gulf, New Zealand, Greece,

South Africa, etc. With the production going up in the coming months, CERA is now looking

at export market more seriously and talks are on with certain parties for OE supplies.

World Technology

To keep ahead of competition, Cera has always kept its technology ahead of rest of the

players in India. It took help from ceramic technology suppliers from several countries in

Europe time and again so that its process and products are of international norms. It also

helped Cera bag large export orders from the US, unmatched by any other Indian sanitary

ware company. Cera could easily make products conforming to ANSI, apart from European,

Australian, Canadian and Indian norms. CERA has been constantly using internationally

renowned consultants in the ceramic field to upgrade its production processes, yield and

finished good quality. Product innovation has been Cera’s forte. One after the other, Cera

launched not only new designs, but even new innovations in India. The first was bath suites

—a unique design concept consisting of WCs, wash basins, bidets and accessories, giving the

bathroom a distinct personality. A series of bath suites—Crowne, Conca, Capri, Cornet,

Comet, Clair, Cognac, Celebrity, Celeste, etc.—were launched in quick succession. Cera is

also credited with launch India’s first mono block EWC, Cologne and now has an array of

one piece EWC’s & wash basins to its kitty.

Innovation:

Water scarcity has always been a concern in most parts of India. When there is shortage of

water, can we not think of conserving it, by sending less water per flush down the drain? This

concern was brainstormed by our technical and research personnel, designers and quality

assurance and marketing personnel and thus the concept of twin action flushing was born.

CERA found that in most households, a WC is used more as a urinal and still it was using 8

to 12 liters of water for each flush. Cera then came up with the idea of half flush along with

full flush. A household can save substantial quantity of water by installing twin flush. Even

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where water is available in abundance, we advise twin flush because the cost of electricity for

pumping extra water to overhead tank can be saved. In India, ever since cera pioneered the

twin action coupled closets two years back, it has caught the fancy of all architects, plumbing

consultants, trade, customers and even competitors. One after the other, all manufacturers

commenced twin action.

For the economy range, Cera have also launched twin flush model of Plastic Cisterns.

Entry barriers for CERA in organized sector

The entry barriers for organized sector are-huge manpower requirements, since sanitary ware

manufacturing is highly labor intensive, non-availability of standardized raw-materials (every

manufacturer has to source raw materials from mines and have its own quality assurance

systems), low market size (the market currently is estimated to be just around Rs7bn) and

innumerable number of unorganized sector players who thrive partly on government policy of

levy-exemption and partly on evasion of taxes.

Organized sector currently contributed nearly 50% of volume sales in India. However, as

quality consciousness and brand-awareness are increasing among consumers, over a period of

time, the unorganized sector is likely to go up considerably. Currently, the replacement

market is estimated to be just 10% of the total market. However, as the market matures, it is

likely to go up exponentially.

ORGANISTIONAL STRUCTURE:

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Board of Directors

Managing Director

Vice President HRD &

Personnel

Vice President

R&D

Vice President Projects

Vice President

Marketing

Regional Sales

Manager

Sales Officer

Market Intelligent Assistants

HRD Manager

Assistants Manager Accnts

Manager Tax

Factory Accnts.

HRD Manager

Quality Assts.

Project Manager

Asst. Mrkg. Mgr

Field Officers

Market Intelligent System

Marketing Manager

Vice President Finance

Vice President

Sales

Regional Mrkg. Mgr

Asst. Manager

Figure 2.13

WHO IS WHO & ROLE IN THE ORGANIZATION?

Key Personnel

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Board of Directors

Mr. Vikram Somany, Chairman and Managing Director

Mr. Vidush Somany, Executive Director

Mr. Sajan Kumar Pasari

Dr. K N Maiti

Mr. Shree Narayan Mohata

Mr. Ashok Chhajed

Mr.Govindbhai P. Patel

Mr. Mahendra Kumar Bhandari, Director - Technical

Works

S K Ghatak, President (Works)

V.K. Jain, Joint Vice President (Quality Assurance)

Anil Kumar Punjabi, Joint Vice President (Production)

Marketing & Sales

Atul Sanghvi, President (Sales & Marketing)

Marketing

P. K. Shashidharan, Vice President (Marketing)

Domestic Sales

West, East & North : Parthiv Dave, Vice President (Sales)

South : Abbey Rodrigues, Vice President (Sales)

Export Sales

Gaurang Bhatt, General Manager (Export)

Sales Administration

B K Desai, Deputy General Manager (Sales Administration)

Finance & Company Affairs

R B Shah, President & Chief Financial Officer

Narendra N Patel, Vice President & Company Secretary

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Figure 2.14

PERSONNEL DEPARTMENT

Personnel Department has got a vital role to play in every business organization. It can be

stated that without the active involvement personnel dept. no work can be done in the

organization whether it is production work or managerial work. The Vice president heads the

personnel dept. of Cera Sanitary ware Ltd. and he is assisted by managers and other staffs.

All the recruitment selection and Placement and salary fixation jobs are done by this Dept.

In this unit of company, there is a total strength of 20 employees the number of managerial

staff is 7. The contractor to whom they have been given fixes the remuneration of those

employees.

Human resource is present in abundance and skills are traditionally inherited. The owner

usually deals with management issues and marketing related activities. Most of the labor is

semi skilled and are trained on job. There is no specialized marketing or accounts department.

They facilitate their sales only on the basis of personal contacts and no proper accounts are

maintained therefore certain problems related to tax return, monitoring and evaluation are

faced. Only primary or intermediate level employees are handling accounts. Glazing

supervisor, Body supervisor, Kiln supervisor, Designing or molding in-charge and accountant

are considered middle level management that are ceramics diploma holders or experienced

persons and also easily available in the market.

Function of Personnel Department

FunctionalArea

H.R.Department

Manufacturing Department

FinancialDepartment

MarketingDepartment

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Salary computation

Salary disbursement

Leave Marking

Attendance

Manpower Planning

Recruitment

Transfer and promotion

PRODUCTION DEPARTMENT

In macroeconomics production is the act of making things; in particular the act of making

product that will be traded or sold commercially. Production decision concentrates on what

goods to produce, how to produce them, the cost of producing them and optimizing the mix

of resource inputs used in their production. This production information then can be

combined with market information (like demand and marginal revenue) to determine the

quantity of product to produce and optimum price.

Product design is based on:

Consumer acceptance

Manufacture capability

Developing capability

Quality consideration

By product possibilities

Under production department Company have these following units:

Quality assurance Department

Purchase Department

R & D Department

Stores Department

Maintenance Department

Quality assurance Department:

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A separate quality assurance department is functioning in this unit to ensure that all the

products meet the required quality. The quality assurance dept. is entrusted with the

responsibility of preparing quality control plans and measures and evaluating product quality.

Important Function

1. The department makes sure that the raw materials comply with the quality specifications

by collecting samples. Raw materials are accepted if it conforms to specified quality and are

rejected if the raw materials do not comply with the specified quality.

2. The department checks the quality of output after the completion of each stage of

production.

3. The department attends the customer complaints on quality aspects and takes corrective

action.

4. The department ensures that necessary actions have been taken for the assurance of quality

of the final product.

Purchase Department

The purchase department is responsible for the continuous availability of raw material to the

production department. The production department should see that all the required materials

are purchased at the right time in the right quantity at the right price. Continuous availability

of all the raw material is necessary to keep the production flow uninterrupted. The company

makes purchases from suppliers outside as well as inside the state.

Purchase Procedure:

The company prepares a detailed purchase budget at the beginning of every year, which

contains the item and quantity to be purchased of each item. The bill of materials can also be

used to know the requirement of raw materials for a certain period of time. The purchase in-

charge, after receiving the purchase requisition form initiated by the storekeeper makes

necessary arrangements for inviting tender for supplier selection. The supplier selection then

company conducts vendor evaluation by collecting complete information about the suppliers.

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While evaluating supplier’s information like creditworthiness, past experience, delivery time,

capacity to supply, mode of payment are collected and evaluated. An approval list of

suppliers is prepared after the completion of vendor evaluation. After having selected the

supplier, the purchase department proceeds to place the order for materials, specifying the

details of goods. The purchase order contains details such as order number and date, suppliers

name & address, rate and number of items ordered, mode and date of delivery etc. The dept

sends reminder to supplier for the timely delivery of goods.

Goods are verified at the time of receiving with the help of delivery note sent by the supplier

and the purchase order. Quality assurance is done by quality department by taking samples

from the arrived materials. Goods are received only after the completion of quality and

quantity inspection. This follows the preparation of material received note.

R & D Department

A well- equipped and well-organized R & D department is functioning under Cera Sanitary

ware Ltd to develop new products and to improve the existing products. The department

conducts detailed research before the introduction of every new product. The company is

giving more attention and importance on R & D. Well qualified and dedicated staffs are the

main strength of the R & D department the company’s latest product Pozzi Ginnori is

formulated after conducting various research. A big R & D lab is being constructed with in

the premises of this unit. The R & D department is headed by R & D in-charge and he is

assisted by R & D assistants. The R & D department is playing a vital role in the success of

every products of the company. The human resource of R & D division includes qualified

chemists and trained laboratory technicians whom implements internationally acknowledged

analytical procedures. It can be stated the reason for the increasing use of the company’s

products is the effort of its R & D department, which formulates quality products.

Stores Department

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Stores Department is responsible for storing materials and finished products. Stores

department is headed by storekeeper and he is assisted by assistants. This unit has a

centralized store and it is from here materials are dent to various departments. The

departments keep the finished good and all the raw materials required for the production.

Raw materials are issued according to the requirements from respective departments.

Functions

1. The department checks the weights of the raw materials when they are received.

2. The department issues raw materials to the production department.

3. The stores department maintains different types of books and registers for the proper

control of materials.

Various records are maintained in stores department are

1. Goods Received note

2. Stock Register

3. Material Purchase register

4. Quality Register (for recording items of low quality)

Maintenance Department

The maintenance department is responsible for the smooth and proper working of all the

machines. This department ensures that all the machines are maintained properly which is

necessary for the uninterrupted flow of production. The maintenance department is headed by

maintenance in charge and he is assisted by maintenance staff. The maintenance department

performs mainly 3 types of maintenance works namely

Preventive maintenance

Periodic Maintenance

Break down Maintenance

Preventive maintenance

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The maintenance works done for the prevention of machine break down is known as

preventive maintenances. Lubrication, oiling, greasing etc. are the examples of preventive

maintenance.

Periodic Maintenance

Periodic maintenance is done monthly or weekly and it is a part of preventive maintenance.

Examples of periodic maintenance are cleaning and over hauling.

Break down Maintenance

Break down maintenance is done at the time of breakdown of machines. Break down of

machines are informed to the department when it occurs and the department attends the

problem.

The operations/Manufacturing process

Machinery Suppliers

Spray booth, Glaze Containers, drums and kilns are the machinery used for ceramics sanitary

ware factory. Kilns are designed by ceramics engineers and manufactured by the kiln makers.

There are about 12 kiln makers which are experts and fulfilling the need of industry. Glaze

containers, spray both and drums are prepared by the engineering sector of the Cera.

Raw Material Suppliers

Supply chain is crucial to this field and without proper raw material supply these units cannot

keep up with the production. There are about 4 to 5 companies supplying raw material to

ceramics industry in Cera. These suppliers procure clay from mine owners1 and import

barium carbonate and china clay from china and zirconium from England, USA, Italy, and

Malaysia for fulfilling the raw material requirement of Ceramics Sanitary ware industry.

However raw material supply is irregular and manufacturers have to face late delivery of raw

material or shortage of raw material.

Analysis of Production Operations

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1. Raw Material:

Raw materials for body include Quarts, Feldspar, China clays and Ball clay Mianwali clay,

K.D. 7 Stone and K.D. 10 Stone. Raw materials for glaze include Quartz, Feldspar, and

Limestone, Zinc oxide, Barium oxide, Zirconium and ceramic colors. Plaster of the Paris is

the material that is used for modeling and molding of the Ceramics sanitary ware.

2. Slip Preparations and Glaze Making:

For the slip preparation the raw materials are mixed with water as per the requirement. Proper

composition along with the sufficient amount of water then gets loaded to the ball mills for

grinding.

Glaze is a glasslike, multi-ingredient, silicate thin layer, which adheres to the surface of

ceramic body. It is usually sprayed upon dry body by manual or automatic spraying method,

which after firing produces smooth, glossy, and surface with beautiful color and luster. So

properties of glaze have large influence on quality of products. Generally ball milling is used

to prepare glaze.

3. Casting and Drying:

Slip is cast into plaster moulds. Due to the absorption and water character of porous moulds,

an even thin layer gets formed on the surface which becomes thicker with time. When a

desired thickness is arrived, surplus slip is poured out.

Finally the layer continues to retract by de-watering resulting in the gross body.

Before next process, all products need to be dried to a low water content to increase the

strength of body, which is called drying.

4. Glazing:

There are many glazing methods such as spraying glaze, dipping glaze, pouring glaze,

brushing glaze etc. Sanitary wares are mostly adopted spraying glaze method because large

volume complicated shape, low strength of body.

Spraying glaze may be manual glazing or automatic glazing. Manual glazing is done in a

booth with sufficient de-dust installation, and automatic glaze spraying is done on the

conveying belt.

5. Firing:

32

These sprayed clay wares are then taken to the kiln for firing. As a result the bodies will take

place a series of physical and chemical reactions, and will take a fixed shape.

The bodies are put in the entrance of tunnel and the products are pushed out from the exit.

Fuel is burnt in the resisting firewall on both sides of tunnel.

The tunnel kiln is consisting of three zones.

Preheating zone

Heating zone

Cooling zone

The heating zone has burners on the both sides, in the third section the product cools down by

exhausting. The temperature of every section is strictly controlled by automatic ventilation

equipment and the temperature-controlling facilities called thermo couples to ensure to fire

every product evenly. Continuous kilns are classified as roller kilns and tunnel kilns, the

roller kilns support and convey products by high temperature resistance ceramic rolling stick.

In the tunnel Kiln, kiln cars are used that are made from steel frame wheels on which low

mass refectories, silicon carbide board etc. are built to support products. These cars are

pushed by hydraulic Pusher.

6. Inspection, Repairing, Re-firing and Packing:

This is the last process of production. Finished products are determined according to

stipulated standards to select passed products and un-passed parts by repairing and re-firing.

Passed products are carefully packed and then send to customers.

7. Quality Assurance:

Currently the local market is being invaded by the cheap and better quality Chinese ceramics

products. This invasion along with strong friction from other international manufacturers,

local manufactured products are suffering from huge losses. Their biggest concern is the

quality which requires high manufacturing cost and over whelming rejection rates (7 to 8 %

scrap rate is common to this industry and sometimes it crosses this threshold too). One of the

main causes of this problem is the low and inconsistent quality standards. There is no

standards conformance control at the source (mines) from where the clay is excavated and

manufacturers don’t have any facility where this raw material can be pre-processed before

being used in production line.

The results are as follows:

33

I. Finished products show cracks after whole process of casting and baking has been

undertaken which cause loss of man hours, machine hours and finance.

II. Inconsistency of material causes pin holes and cracks which result into an extra

fragile product which can rupture during use causing a fatal loss of customer

satisfaction and further market penetration.

III. Few manufacturers are setting up their own pre-processing setups which do not

provide required material refinement and add to extra burden of pre-processing cost

resulting in higher cost of production.

IV. Manufacturers can import preprocessed material from china and other countries but it

would cost them more than double.

Performance by Production Department

The use of German know-how ensured Cera’s technological superiority over others in

uncompromising quality. Established with an initial capacity of 3,500 MTPA, the plant

underwent several periodical up gradations and modernizations to reach 15,000 MTPA. The

plant is under massive expansion and will be largest single location manufacturer in India as

far as sanitary ware is concerned.

To keep ahead of competition, Cera has always kept its technology ahead of rest of the

players in India. It took help from ceramic technology suppliers from several countries in

Europe time and again so that its process and products are of international norms. It also

helped Cera bag large export orders from the US, unmatched by any other Indian sanitary

ware company. Cera could easily make products conforming to ANSI, apart from European,

Australian, Canadian and Indian norms. CERA has been constantly using internationally

renowned consultants in the ceramic field to upgrade its production processes, yield and

finished goods quality.

Suggestion to increase Production Capacity:

Glazing with the help of robots in order to improve consistency.

Fast Firing Kilns to improve the flexibility.

34

Since the manufacturing of sanitary ware involves a high degree of manual labor, there is a

noticeable trend of movement of manufacturing from the developed countries to developing

countries to reduce manufacturing costs.

FINANCE DEPARTMENT

Finance is said to be the life blood of any business for proper allocation and management of

the funds organization requires a finance department. Cera is having a separate finance

department to take care of all these activities the following is the departmental chart of the

same.

Figure 2.15

Functions of the department:

1) Maintaining proper books of accounts.

2) Reporting to the management issues relating to finance.

3) Obtaining of funds from various sources and using it efficiently.

4) Tax planning.

5) Controlling. (regular assessment of financial activities)

Marketing Department:

Marketing is a subject having wide spectrum. Marketing deals with the whole process of

entering markets, establishing profitable positions and building loyal customer relationship.

35

As market change, so does marketing. Marketing is no longer a company department charged

with a limited numbers of tasks. Managing and advertising. Sending out direct mail, finding

sales leads. Providing customer service. It must drive the company’s vision, mission and

strategic planning. Marketing is about deciding who the company wants as its customers,

Which needs to satisfy, what products and services to offer, what prices to set, what

communications to send and receive. What channel of distribution to use and what

partnership to develop.

MARKETING STRATEGIES

All marketing strategies are built on STP- segmentation, targeting, and positioning.

Companies discover different needs and groups in the market place, target those needs and

groups that the companies can satisfy in a superior way, and then positions its offering so that

the target market recognizes the companies distinctive offering and image. No company can

win, if its product and offering resembles every other product and offerings. Today most

companies are guilty of strategy convergence namely undifferentiated strategies. Companies

must pursue meaningful and relevant positioning and differentiation. Companies normally

reformulate their marketing strategies and offerings several times. Economic condition

changes, competitors launch new and the produce passes through new stages of buyer

interests and requirements. Consequently strategies appropriate to each stage in the products

life cycle must be developed.

MARKETING STRATEGIES OF Cera Sanitaryware LTD.

Whole the marketing strategies of company is formulated and controlled by the head office at

Ahmedabad directly. There is no involvement from the production units situated at different

part of the country.

The following are the marketing strategies adopted by the company:-

1. To deliver quality products at reasonable prices to all the class of the society.

2. Positioning the products in its most suitable manner by developing a unique selling

preposition. (USP)

3. Differentials the products in order to get distinctive identity in the market.

36

4. Adopting sales promotional schemes for both the dealers and customers.

5. Creating brand awareness in the customers through continuous advertisements and

event sponsorship.

DISTRIBUTION CHANNELS

Marketing channels are set of interdependent organization involved in the process of

marketing a product or service available for use or consumption. Channel decisions are

among the most critical decision facing the management. The channels chosen intimately

affect all the other marketing decisions. The distribution system is a key external source. It

ranks in importance with key internal resources such as manufacturing, research, and final

sales personal facilities.

CHANNEL FUNCTIONS

They gather information about potential and current competitors and other actors and forces

in the marketing environment.

They develop and disseminate persuasive communications to stimulate purchasing.

They reach agreement on price and other terms so that transfer of ownership or possession

can be done easily.

They place order with manufacturers.

They acquire the funds to finance investments at different levels in the marketing channel.

They assume risk connected with carrying out channel work.

Distribution Channel of Cera Sanitary ware Ltd.

The Channel of distribution of the company is functioning very well to meet the aim of

reaching the product to customers at the right time. Following is the chain of distribution of

the company.

37

Super Stocker

Distributors

Whole Sellers

Retailers

Figure 2.16

Finished products are taken by super stockers from the company and it is the Super stockers

who supply the products to the distributors.

ADVERTISEMENT

In today’s competitive business environment advertisement has got a crucial role in the

success of every business organization. No company can win the competition if its

advertisement strategies are not properly planned and created. “Advertisement is any paid

form of non-personal presentation and promotion of ideas, goods or services by an identified

sponsor”. Advertisement makes the customers aware about the products and services of the

company. It can be seen that, behind the success of every products in that market,

advertisement has played an important role.

KINDS OF ADVERTISEMENT

Information advertising

Aims to create awareness and knowledge of new products or new features of existing

products.

Persuasive advertising

Aims to create liking, preference, conviction and purchase of products or services

38

Reminder Advertising

Aims to stimulate repeat purchase of products and service

Reinforcement advertising

Aims to convince current purchasers that they made the right choice.

Advertisement policy of Cera Sanitaryware ltd.

The company makes use of various Medias to communicate its message and product features

to the customers. All the advertisement are planned and implemented directly from the head

office

Different advertisement Medias used by the company are as follows

Newspapers

Magazines

T.V. advertisement

Board and roadside wall advertisements

Apart from the above-mentioned Medias the company sponsors events and serials, which are

broadcasted in television

Sales Promotion

Sales promotion, a key ingredient in marketing campaigns, consists of a diverse collection of

incentive tools, mostly short term, designed to stimulate quicker or greater purchase of

particular products or services by consumer. Sales promotions.

Purpose of Sales Promotion.

Sales promotion tools vary in their specific objectives. A free sample stimulates consumer

trial, whereas a free management advisory service aims at generating a large term relationship

with a retailer. Sellers use incentive type promotions to attract new users, to reward loyal

customers and to increase the repurchase rates of occasional users. Sales promotion often

attracts brand switchers, who are primarily looking for low price, good value, or premium.

Sales promotions are unlikely to turn them into loyal users. Sales promotion used in markets

of high brand similarity produce a high sales response in the short run but little permanent

gain in market share. In markets if high brand dissimilarity, sales promotion can alter market

39

permanently. Sales promotion enables manufactures to adjust to short-term variations in

demand and supply.

Cera’s product mix and new marketing strategies:

Cera has a mix of products that would cater to all needs of consumer. Cera has top end

products like the Senator Collection, the Shower Temples with Jacuzzi features in them. Cera

also has the Premium Collection focused at middle end users and the Regular collection

which includes the Indian EWCs as well as European EWCs for the lower end customers. In

Bath Fittings, the Single Lever Bath fittings are for the elite, followed by the Quarter turn and

the half turn fittings meant for people looking for more economical range.

SWOT Analysis:

STRENGTHS:

India’s first to use natural gas firing.

Direct connection of natural gas from GAIL has certainly helped CERA in better margins.

However, this is only one of the several advantages. CERA has captive power plant using

natural gas. CERA also has wind turbines. Thus CERA is not dependent on government

electricity board for its power requirements. Others will take a long time to catch up.

Further, CERA is getting natural gas on very cheap rate directly from the ONGC oil fields,

which will continue to be cheap, wherein others are getting imported LNG which is three

times costlier than what Cera is getting.

India’s first to launch twin flush technology & 4 liters flush WC. We have twin flush

models that on an average consume only 4 liters of water, against the others which

can use up to 6 liters every flush. That quantifies to 50% of water saving. With water

scarcity in urban areas, there are a lot of initiatives that have already been taken by

Metros like Mumbai. Others will have to soon follow in order to save water.

Wide product range.

Capitalizing on a strong brand image and an evolving market for bathroom products, CSL

expanded its product range to other related products like shower panels, shower cubicles,

shower temples, bath tubes, whirlpools, bath fittings etc., which makes it a total bathroom

solutions provider.

Huge distribution network.

40

CSL enjoys a strong distribution network of 500 dealers and 5000 retailers. To supplement

the distribution network, the company has several depots and zonal offices across India. This

will help the company in increasing its market share.

WEAKNESSES.

The company has only one manufacturing plant at Kadi, Gujarat.

While its nearest competitors HSIL and parry ware has more than one manufacturing plant

strategically located across different parts of India to bridge the gap between demand and

supply.

Large unorganized existence.

Low R&D for product innovation.

OPPORTUNITIES

Rising domestic demand for tile, sanitary ware and table ware.

Large export potential in sanitary ware in Middle East, Africa and Central Asia.

Exploit local expertise in related sectors, clusters technologies.

Facilitate supply chain collaboration.

THREATS

Low priced import from china.

Changing consumer preferences.

Large surplus capacities in the international market.

Increasing regulatory pressures.

41

LITERATURE REVIEW

Marketing Communications: Overview:

To market a product successfully, it is not enough to ensure that it is the right product,

available at the right place at the right time; information about its availability, utility and

price must also be effectively communicated to prospective buyers. For the communication

process to be effective, the marketer must be able to create the right message and deliver it to

the right prospect at the right time, using the right media. Although this may sound simple, in

a competitive environment with increasingly similar products and services, proliferation of

media options, and complexity in segmenting audiences, it is very difficult to get all the

elements of the communications process right. In order to differentiate their brands in such an

environment, marketers must constantly refine and fine-tune their marketing communications

strategies. Marketing communication has undergone drastic changes over the last few years.

In the past, marketers communicated using a limited number of marketing communication

tools like advertising, sales promotions or sales personnel; the number of media options - like

radio, television or print media - at their disposal was also limited. In the last couple of

decades though, fragmentation of traditional media such as television and print, and the

emergence of new or non-traditional media such as the Internet, have made marketing

communications much more complex. Today, marketers can no longer rely completely on a

single marketing communication tool like advertising, personal selling or publicity. Instead,

recognizing that each element of the communication mix is effective in achieving a specific

communication objective, they must choose the right mix of communications tools that will

help them best achieve their overall marketing objectives. Marketing Communications

examines the subject from various perspectives, and discusses the strategies that a marketer

can use while interacting with different stakeholders through marketing communications mix

elements like advertising, sales promotion, personal selling, public relations and direct

marketing. The book also highlights the need for integrating the different marketing

communications mix elements to present a single consistent image for a company or a brand.

42

MARKETING ASPECTS

Here we have analyzed various marketing aspects of Cera sanitary ware undertaken for the

marketing mix of the company. Various marketing mix of Cera sanitary ware is as follows:

Product:

Product of the company as is defined in company’s introductory chapter is an sanitary ware

product having mainly extraordinary features like twin flush water saving product, soft close

seat cover, shower temple product. This product talk about giving an spa foot massage and

inbuilt Jacuzzi unit which give experience artificial water waves and facility like radio and

tele calling with six body jet spray.

Price:

Prices of the product and services offered are competitive compared to our competitors

products and also provide value for money to the customers. Because as we talked in the

earlier paragraph that features provided in the products are very unique and are having low

cost so finally company becomes best cost provider in the market.

Place:

As Cera sanitaryware is having excellent distribution channel empowered by 500 dealer’s

network and 5000 retailers all across India. To supplement the distribution network, it has 10

major depots across India. It has 7 zonal sales & service offices, supported by another 28

sales offices, 7 bath studios strategically located in major cities across India. To capitalize on

the growth market for premium products, Cera has entered into an exclusive marketing

agreement with Italy's luxury brand Pozzi-Ginori to market its designer sanitaryware in India.

Promotion:

Cera sanitaryware ltd. has always been proactive in promotional activities for increasing the

brand awareness among the consumer so the company has promotional scheme directed

towards consumer as well as its partner (dealer).

•Consumer oriented: few months ago, the company had launch (special offer) the

promotional scheme applicable only in Delhi, Clair set in Rs. 3999/- for only one month.

•Partner oriented: gold scheme, silver scheme and foreign travel scheme.

People:

43

As company is in service industry it needs to have strong additional 3 Ps of the marketing

mix starting from people. In ceramic industry as goods are produced and prompt service is

given to the people i.e. employees need to be highly trained and qualified. So requires good

qualified and expertise employees to this competitive industry.

Cera sanitary ware has achieved a good sense of the same by employing highly qualified

employees like M.B.A. and other Marketing specialized.

Physical Evidence:

Cera sanitary ware is providing catalogs to their customers as a physical evidence of

purchasing the product. If customer wants to see the physical product then company has its

own display center “Cera bath studio” in metro cities of India.

Process:

This last step of marketing mix of Cera sanitary ware includes following points to be done for

making the product available to the customers.

Marketing Communications Research:

Market research plays a major role in increasing the effectiveness of the marketing

communications strategy of a company. The steps involved in the market research process:

defining the problem, designing the research plan, collecting the data, analyzing the

data, and submitting the report. Marketing communications research elements like

communications audit, competitor communications strategy research, and communications

content research, which help in designing an effective marketing communications strategy.

After going to the research process the things are examine & involved in each element of the

marketing communications mix that is, advertising, sales promotions, direct selling, and

public relations research. Advertising research involves advertising strategy research,

advertising copy research, and ad campaign evaluation research. Sales promotion research

involves pre-testing research, and post-testing various sales promotions programs for their

effectiveness. Direct marketing research involves finding answers to questions like whom to

direct market and how to direct market. Public relations research aims at researching the

effectiveness of various PR programs. In the end I came to know various functions of media

research and the framework and model for making better media decisions. Finally, we

examined the challenges involved in media research.

44

Marketing Communication Planning Process:

SUMMARY: For successful implementation of the marketing communications program a

systematic marketing communications plan is necessary. A cohesive and proper marketing

communications plan will help the company implement marketing communication programs

effectively in terms of achieving objectives and costs. In this chapter we outlined the steps

involved in drawing up a marketing communications plan. As marketing communications is a

subset of overall marketing mix, companies have to first formulate a marketing strategy. A

marketing plan involves the following steps - situational analysis, identifying marketing

objectives, creating a marketing strategy, implementing a marketing strategy, evaluation and

control. After developing a marketing plan, companies have to develop a marketing

communications plan based on the marketing plan.

The primary step in the marketing communications plan is to analyze the internal and

external marketing environment. There are four key environmental variables that companies

have to evaluate. They are: competition, market analysis, customer analysis and positioning

analysis. The next step in the marketing communications plan is to establish marketing

communication objectives that reflect the analysis made in the previous step. There are

usually five key objectives -creating brand awareness and building brand equity, providing

information, increasing sales, differentiating the brand and influencing consumer behavior.

Based on the marketing communications objectives, companies have to decide the budgeting

allocation for marketing communications activities. Companies usually use-- arbitrary

method, affordability method and percentage of sales method, competitive parity method,

objective and task method, and payout planning method -- to set the budget. After deciding

on the marketing communication objectives and the budget allocation, companies have to

design the marketing communications program. The decisions to be taken in this regard are:

selection of communication mix, developing a creative strategy and media decisions. The

final step in the marketing communications plan is evaluating and controlling the marketing

communications programs. This evaluation can be done through the communication audit.

Modeling for Marketing Communication:

45

SUMMARY: A few famous models of marketing communication were discussed. The black

box model based on stimulus response theory was described. The AIDAS model from the

early development phase was explained in detail. The model assumes that a customer follows

Attention - Interest - Desire - Action - Satisfaction sequence. The third model, Lavidge and

Steiner, assumes that a customer goes through six stages before making a purchase. The

stages in sequential manner are: Awareness - Knowledge - Liking - Preference - Conviction -

Purchase. The DAGMAR model suggests the stages, Awareness - Comprehension -

Conviction - Action. The Joyce model is based on the interrelations between advertising,

purchasing and attitudes. The heightened appreciation model suggests that advertising

strategy should be based on distinct and important attribute of the brand.

The FCB model divides buying behavior using two parameters: high involvement and low

involvement versus thinking and feeling

From the above data the communicational strategies can be implemented in various ways. It

also depends on company to company i.e.: what kind of communication strategies the

company wants to put I order to sell its products and also to increase the market share in the

market with reference to using various promotional and communication strategies.

46

OBJECTIVE OF PROJECT

OBJECTIVE OF RESEARCH

The main aim of research is to find out truth which is hidden and which has not been

discounted as yet. The purpose of research is to discover answer to questions through the

application of scientific procedures of collecting data.

To visit showrooms in Ahmedabad and rate them as per the following criteria:

o Display

o Branding

o Communication

To show different product range of the company

SCOPE OF THE STUDY

There has been a rise in the demand for specialized sanitary ware products in the recent

times. Though the market conditions are bit fluctuating, but then also large numbers of new

players have entered the market and trying to gain market share in this rapidly volatile

market.

The research is carried in AHMEDABAD. I had been sent at various shops that includes

dealers and retailers of the company for my Project work. I surveyed on my Project Topic

“Comparative analysis of various ways of marketing communication used by CERA

and its competitors” on the visiting of shops.

47

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

First of all, the question that arises is that “what is research”?

“Research is a scientific and systematic search for pertinent information on a specific

topic. In fact research is an art of scientific investigation.”

Research methodology is used to find new fact and knowledge.

OBJECTIVE OF RESEARCH

The main aim of research is to find out truth which is hidden and which has not been

discounted as yet. The purpose of research is to discover answer to questions through the

application of scientific procedures of collecting data.

To visit showrooms in Ahmedabad and rate them as per the following criteria:

o Display

o Branding

o Communication

I have mentioned only major players in sanitary ware market that are:

HINDWARE

PARRYWARE

CERA

KOHLER

TOTO

METHOD ADOPTED FOR RESEARCH

48

Survey method

The term survey is used for the technique of investigation by direct observation of

phenomena or systematic gathering of data from population by applying personal contact and

interviews when adequate information about a certain problem is not available in records files

and other sources. It is currently being used in those investigations also where published data

is used.

The researcher has to come in close and direct contact of the people whom he wants to study.

A survey brings the researcher in a position to come & face with the realities of life and see

things personally.

Collection method:

The task of data collection begins after a research problem has been defined and Research

design/plan chalked out. The success of research depends on the Systematic collection of

data. The appropriate method used for collection of data will yield adequate a relevant

Information. For the research, data have been collected through primary and secondary

sources.

Source of data

Primary Data Secondary Data

1. Dealers Survey 1.Company’s Reports

2. Retailers Survey 2. Relevant Books and journals

3. Personal Interviews

4. Questionnaire Method

Both primary data and secondary data were used to collect information.

1. Primary Data:

49

Primary data are those, which are collected by the research himself for first time & they are

original in character. We collected primary data during the course of sample surveys either

through observation or through direct communication with respondents in one form or

another. For this research primary data were collected through asking questions directly to the

shop owners. This method of data collection is quite popular in case of big enquiries.

2. Secondary Data:

Secondary data are those which have already been used by other persons for his/their purpose

and are published. They are usually in the shape of finished products. Collection of secondary

data has the advantage of being less expensive and less time consuming. The sources of

secondary data used for this research were old reports and journals of the company and

through website (i.e.: www.cera-india.com).

TOOLS USED TO COLLECT DATA:

The main tools used to gain the basic information regarding the market were extracted from

the response of dealers and retailers. I have selected the methods of personally asking

questions, although the latter method involved a lot of time and cost. My survey work was

retailers and dealers survey.

Sample Size:

The sample size was 100 Dealers & Retailers both.

Areas of the survey work:

AHMEDABAD

50

DATA ANALYSIS

QUESTIONNAIRE:

Q.1)Why do you stock Cera Products?

ANS.) PRICE

QUALITY

AVAILABILITY

OTHERS

20%

30%

40%

10%

CERAPrice Quality Availability Others

Figure 6.1

INTERPRETATION:

From the figure we can derive that due to availability & quality of products the

retailers are stocking CERA’s products. The amount of in percentage is 40% on

Availability of products and than 30% on quality. The main reason behind is

that the plant is very much near to the city called Ahmedabad i.e.: Kadi is the

place where the plant is being located. The prices are not that much low if we

compare the brand with other brand.

Q.2) Why do you stock Hindware Products?

51

ANS.) PRICE

QUALITY

AVAILABILITY

OTHERS

22%

38%

25%

15%

HINDWAREPrice Quality Availability Others

Figure 6.2

INTERPRETATION:

Here in Hindware the main thing matters are quality which is the best if we

compare to other brands. The amount measured in percentage is 38% in

quality,25% in availability, 22% in price and rest 15% is other factors.

Hindware as we well know is the leading brand amongst all the sanitary ware

companies in India having larger market share. The prices are comparatively

same with other brands.

Q.3) Why do you stock Parryware Products?

ANS.) PRICE

52

QUALITY

AVAILABILITY

OTHERS

25%

30%

25%

20%

PARRYWAREPrice Quality Availability Others

Figure 6.3

INTERPRETATION:

The quality of product bears around 40% and while 25% in Price & avaialiblity

concepts for Parryware. The company needs to provide the materials for

establishing its brand.

Q.4) Which brand is mostly preferred by customers?

ANS.) CERA

53

HINDWARE

PARRYWARE

40%

35%

25%

PREFERED BRANDCERA HINDWARE PARRYWARE

Figure 6.4

INTERPRETATION:

The brand which is mostly preferred in Gujarat is CERA because of easily

accessibility. So Cera is scoring high amongst all i.e.: 40% is the percentage

amount. Hindware is having 35% and Parryware is haing 25% under brand

preference. The main reason also could be the company is having its largest

market share in India.

Q.5) Your customers are…

ANS.) Cost Oriented

Brand Oriented

54

55%

45%

OrientationCost Oriented Brand Oriented

Figure 6.5

INTERPRETATION:

The customers are mostly cost oriented because of that the amount of

percentage for cost goes to 55% while if we talk about brand orientation than it

is 45% which is less than the cost concept.

Q.6) What kind of Promotional activities Company provides you?

Ans.) Print Media

T.V.Media

Others

55

35%

45%

20%

Promotional ActivitiesPrint Media T.V.Media Others

Figure 6.6

INTERPRETATION:

Here T.V. Media is more popular than rest of the available media. Having 45%

as compared to other media which is 35% and 20%. And because the company

is giving ads more and more in order to increase its brand value rather in any

other sources. It is also due to that this is the best source for promotional

activities.

Q.7) According to you which Co. has more customer satisfaction towards their

products?

ANS.) CERA

HINDWARE

56

PARRYWARE

40%

35%

25%

Customer SatisfactionCERA HINDWARE PARRYWARE

Figure 6.7

INTERPRETATION:

Customers are more satisfied with CERA with an percentage amount of 40% as

compared to Hindware – 35% and Parryware – 25%. They are satisfied also

because of easy availability of various kinds of products and hence Cera is

leading in customer satisfaction.

Q.8) How company promotes its brand to dealers & retailers?

ANS.) Margins

Schemes

Advertising

57

45%

35%

20%

Company PromotionMargins Schemes Advertising

Figure 6.8

INTERPRETATION:

The Cera and other companies mainly promote through the criteria of margin

i.e.: giving more & more margins to the shopkeepers and promote its brand

name. The amount of percentage for margin is 45% which more than that of

schemes – 35% and advertising – 20%. The more margins are only given to

those shopkeepers who are loyal to the company and have trust & good relation

with the company.

OVERALL RATING OF MAJOR PLAYERS:

HINDWARE:

58

29%

33%

38%

HINDWARE Rating (10)

1 Display2 Showroom Quality3 Communication

Figure 6.9

PARRYWARE:

26%

32%

42%

PARRYWARE Rating (10)

1 Display

2 Showroom Quality

3 Communication

Figure 6.10

CERA:

59

32%

32%

36%

CERA Rating (10)

1 Display

2 Showroom Quality

3 Communication

Figure 6.11

KOHLER:

31%

35%

35%

KOHLER Rating(10)

1 Display2 Showroom Quality3 Communication

Figure 6.12

TOTO:

60

30%

35%

35%

TOTO Rating (10)

1 Display2 Showroom Quality3 Communication

Figure 6.13

LEARNING OUTCOMES

61

The research on the consumer satisfaction and sales promotion was quite helpful for the

company as well as it provided me the first hand experience as how to conduct surveys. I

learnt the steps to be followed and the necessary measures to be taken.

It also made me aware of the problem faced by the researcher while conducting a survey.

The study on the consumer satisfaction and sales promotion also enhanced my knowledge

to know about the buying behavior, nature of the market, market share of CERA Sanitary

ware Ltd., and customer preferences - liking and disliking, attitudes etc.

FINDINGS

62

After going through the entire process of preparing the project on-

“COMPARATIVE ANALYSIS OF VARIOUS WAYS OF MARKETING

COMMUNICATION USED BY CERA AND ITS COMPETITORS.”

During the survey work, I found that most of the respondents were co-operative and took

keen interest in filling up the questionnaire though some of them did not pay adequate

attention.

Most of the respondents were aware of the terms used while communication.

Also found out what is actual reason for promotion of brands in terms of selling the

products.

Also find out what is the actual scenario while you as a sales executive goes and talk with

the retailers and also convincing them to sell more of our products and not of any other

brand.

Some of the respondents were not behaving properly, if the company doesn’t gives some

sort of gifts or any kind of incentives.

The shopkeepers only want to talk about increasing margins and extending the credit limt.

SUGGESTIONS

63

Need to have a standard layout for various types of shops.

Bringing more design and new technology in order to stick into the market

Meeting for dealers & retailers, Architect, Builders and consumers meets should be

organised at regular intervals.

Optimum numbers of dealers and retailers should be appointed for each market so as

to provide ample space for sale as well as margins.

Various kinds of POP items such as caps, key chains, empty bag display, notepads,

pens and cut outs should be distributed in a planned way at regular intervals. You may

also want to send your customer and clients some exciting corporate gifts that they

will never forget.

The advertising elements (Dealer boards, POP’s) should be improved i.e.: more

attractive and excellent shop boards to be introduced in order to attract more and more

number of people.

LIMITATIONS

64

The following were the limitations while conducting the research works that are mentioned

below:

The sample size was less.

Area covered under the research is only one or two places.

Some of the shopkeepers were not ready to share their views in terms of

communication strategies.

The information given by some respondents may be wrong.

The respondents are afraid of giving actual information.

The information provided was not accurate enough to judge the final inference by the

shop owners.

The study is time bound and would be applicable to current scenario

It is assumed that the information provided by the company is corrected and

reference is drawn accordingly.

CONCLUSION

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I came to know that; sanitary ware sector is also providing services to their consumers. The

Indian Sanitary ware industry is passing through a phase of consumer demand. The

consumers have more choices in choosing their brands.

A competition has been established, and to judge the behavior of consumer and builders

towards CERA Sanitary ware is the main aim of this project and also to find out the best

promotional strategies used by various companies as well as what is the current position of

CERA Sanitary ware Ltd in the industry.

This market research has helped to get a deep insight into the product and the marketing

strategies of the company CERA Sanitary ware Ltd.

The marketing communication strategies used by the sanitary ware companies are very much

innovative and diverse. I came to know the real marketing aspects in terms of communication

of the brand as well as the products.

The company must concentrate on its core products and on the basis of which the advertising

facet should be followed.

BIBLIOGRAPHY

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Books:

Kevin Keller (2007). Strategic Brand Management International Edition 3rd Edition

Philip Kotler (2010). Marketing Management - (Eleventh Edition)

Kenneth Clow, Donald Baack( Jan 2009). Integrated Advertising, Promotion and Marketing Communications. Global Edition 4th Edition

Richard J. Varey , Marketing Communication Principles & London & New Yor (2002) Edition

Business Research by C.R.Kothari, Delhi 1998, ED.29

Magazines:

4P’s Business and Marketing issue 2011

Society interiors issue 2009, 2010, 2011

Interiors issue 2009, 2010, 2011

Lifestyle issue 2011

WEBSITES

http://www.indiamarkets.com/imo/industry/construction/consacc/constacc.asp?

display_content_link=0&search_link=0

http://www.cera-india.com/content.aspx?id=6

http://www.google.co.in/

http://www.economictimes.com/

http://www.icctas.com/ceramicindustry/sanitarywarehistory.htm#INDIA

http://www.hindwarehomes.com/index.aspx

http://www.eparryware.com/default.asp

http://www.kohler.co.in/home.ndi

http://asia.toto.com/index.php

www.amizone.net/Amizone/WebForms/DigitalLibrary/digitalLibrary.aspx

http://www.icmrindia.org/courseware/Marketing%20Communications/Modelling-Marketing

%20Communication.htm

http://www.icmrindia.org/courseware/Marketing%20Communications/Marke-Communicat

PlPro.htm

http://www.icmrindia.org/courseware/Marketing%20Communications/Marketing

%20Communications.htm

http://www.keynote.co.uk/market-intelligence/view/product/2278/baths-%26sanitary

ware/1/executive-summary?utm_source=kn.reports.related

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ANNEXURE

QUESTIONNAIRE:

(FOR RETAILER & DEALERS)

68

Q.1)Why do you stock Cera Products?

ANS.) PRICE

QUALITY

AVAILABILITY

OTHERS

Q.2) Why do you stock Hindware Products?

ANS.) PRICE

QUALITY

AVAILABILITY

OTHERS

Q.3) Why do you stock Parryware Products?

ANS.) PRICE

QUALITY

AVAILABILITY

OTHERS

Q.4) Which brand is mostly preferred by customers?

ANS.) CERA

HINDWARE

PARRYWARE

Q.5) Your customers are…

ANS.) Cost Oriented

Brand Oriented

Q.6) What kind of Promotional activities Company provides you?

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Ans.) Print Media

T.V.Media

Others

Q.7) According to you which Co. has more customer satisfaction towards their

products?

ANS.) CERA

HINDWARE

PARRYWARE

Q.8) How company promotes its brand to dealers & retailers?

ANS.) Margins

Schemes

Advertising