soumallya project final(summer internship)

8/9/2019 Soumallya Project Final(Summer Internship)

1/79

A STUDY TO FIND UNDERLYING FACTORSBEHIND HAND TOOLS PURCHASE & POTENTIAL

OF STANLEYWORKS IN KOLKATA HANDTOOLS

MARKET

Table of Contents

SERIAL NUMBER CONTENTS PAGE NUMBER1 Executive summary 7

2 Company profile 83 Literature review 164 Methodology of study 255 Statement of objective 426 Research 427 Data analysis 488 Results and interpretation 499 Finding and

recommendation

69

10 Bibliography & references 7311 Annexure 74

1


2/79

List of Figures

Serial number Content of figure Page no.1 Stanley works 82 SFS 93 Growth story 10

4 Consumer tools 105 Industrial tools 116 Golden hammer award 137 Brands acquired by Stanley 148 Geographical reach in India 159 Market share 4910 Frequency of purchase 5011 Usage of hand tools 5212 Worth of inventory procured 5313 Source of information 5414 Satisfaction level 55

15 Scree plot 63

List of tables

Serial no. Content Page number 1 Hand tools market share 49

2


3/79

2 Frequency of Hand tools 503 Usage of hand tools 514 Worth of inventory 53

5 Source of information 546 Awareness about the product 557 Satisfaction level 558 Descriptive statistics 589 Correlation matrix 1 5810 Correlation matrix 2 5911 KMO Barttlet Table 1 5912 KMO Barttlet Table 2 60

13 Anti image matrix 6114 Total variance explained 1 6215 Total variance explained 2 6316 Communalities 64,6517 Rotated component matrix 6518 Reliability analysis table 1 67,6819 Reliability analysis table 2 69

EXECUTIVE SUMMARY

3


4/79

Stanley works India pvt. Ltd is a subsidiary of United States based multinational organization

Stanley works ltd engaged in manufacturing & marketing of hand tools, electronic tools,

masonry tools, residential entry door hardware, consumer residential hardware, consumer

mechanics tools, and pneumatic precision assembly tools. Indian operation started in late 2007 to

take advantage of robust industrial growth & emerging market space. Company is in its nascent

stage, the processes are yet to be in place & operations are not focused to the fullest extent.

Company is experiencing challenges in areas like increasing market share, inventory

management, larger lead time in shipment, encountering competitors and locating potential in the

market (Kolkata).

Two months duration of summer internship process was dedicated to generate sales for the

company and to study the factors playing crucial role behind hand tools purchase. Thus finding

out shortcomings of Stanley works and recommending suitable solution to its problems.

The methodology involved data collection through questionnaire preparation and analyzing those

data by excel graphs (pie chart) and factor analysis by SPSS software to reach a suitable

conclusion.

On the basis of these observations, certain recommendations are submitted at the end of this

report. Some important ones are- use of e-marketing, having a marketing calendar and sticking

to it, starting of newsletters and having a regional office ,plan for an acquisition and tagging upwith an automobile company amongst others.

If accepted, a few of these suggestions can result in a low-cost solution to the brand awareness

problems we face and harness more sales in the coming years to give Stanley an opportunity to

expand its business in this region.

Chapter I

4


5/79

INTRODUCTION:

1.1: Company Overview:

The Stanley Works, a 166 year old company is a worldwide manufacturer and marketer of tools,

hardware and specialty hardware products for home improvement, consumer, industrial and professional

use. The company stills bears not only Frederick Stanley's name but also the spirit and passion that drove

him to succeed where others failed .The Stanley Works is positioned to meet tomorrow's competitive

challenges and continue as a leading worldwide manufacturer and marketer. Our businesses are

Diversified in terms of products, geographic spread and channels of distribution. We have moved

effectively to expand our products into new market areas such as the Far East and Eastern Europe.

FIG: 1

Today, the Stanley name is known around the world as a reliable, guarantee of quality and value."The

secret of this company's success is an open one -- all who will may avail themselves of it, and all who do

so will succeed -- one word tells it all and that one word is Excellence.

The Stanley Fulfillment System (SFS), created to encompass and improve upon Stanleys long

Tradition of operations excellence is the heart of our business operations. Its a continuous

Improvement program focused 100% on the needs of our customers and a comprehensive business

system that guides the way we work every day. SFS is at once our blueprint for success and our roadmapfor continued growth.

At the heart of SFS are three simple, customer friendly goals:

1. Improve Service

2. Increase Quality

3. Reduce Costs

5


6/79

Service, quality and costs have always been strengths at The Stanley Works. SFS is our

Commitment to making them even stronger.

FIG: 2

1.2: Growth:

In 1843, an enterprising businessman named Frederick Trent Stanley established a little shop in New

Britain, Connecticut to manufacture door bolts and other hardware from wrought iron. Mr. Stanley was

the first Mayor in town; he brought New Britain rail service, gas lighting and a reservoir-fed water

supply. In 1930, Stanley invented the tape rules. Stanley tools have built nearly every home, school,

church and hospital in maraca. Stanley Air tools build nearly every car and truck made in North America.

Millions pass through Stanley Automatic Doors each day.

With products sold in more than 130 countries, the Stanley brand is recognized worldwide. From crisis

comes OPPORTUNITY. The chance to emerge BETTER than ever before. By remaining committed to

our guiding PRINCIPLES and Transforming a LEGACY established over a century ago. Todays Stanley

is lean, flexible, diverse, and focused on long term GROWTH. Todays Stanley is READY for tomorrow.

6


7/79

FIG: 3

1.3: Stanley Platforms:

A) Consumer Tools.

A world leader in the design, development and delivery of tools, Stanley brings to market the strongest

and most innovative tools available. With thousands of products on the market and hundreds introduced

each year, Stanley develops the tools consumers need to get the job done.

7


8/79

FIG: 4

Product categories:

Industrial hand tools and tool boxes, professional and industrial mechanics tools, electronic diagnostic

tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and crushers.

FIG: 5

B) Security Solutions:

An industry powerhouse with a global footprint, Stanley Security Solutions builds on Stanleys

development of the first automatic door with integrated solutions that provide wall-to-wall security,

including doors, hardware, software and service. Stanleys Security Solutions protect buildings, airports

and institutions all over the world.

8


9/79

Key Brands:

Best Access, Black, co rush, Frisco Bay, HSM Electronic Protection Services,

Integrator.com, ISR Solutions, Sergeant & Greenleaf, Safe masters, Senior

Technologies,Stanley Access Technologies, Stanley Hardware The Stanley Security SolutionsProduct Group offers a wide array of electronic security products,

Mechanical security products, integration software, and installation and support services for a diverse set

of industrial, institutional, and commercial facility applications.

Electronic security, access and safety products manufactured and tested to the industrys highest

standards for functionality and long life. Applications include schools, banks, retail stores, hospitals,

government agencies, manufacturing facilities, colleges and universities, and utilities, to name a few.

Mechanical security products include patented keying, customized master key systems and quality door

and lock hardware. These combine to supply customers with mechanical access control that is cost-

effective and efficient.

C) Industrial Tools:

With our powerful professional tools, Stanleys Industrial Tools Group delivers big tools for big jobs.

Recognized as leaders in Industrial Tools, our family of brands builds everything from cars and trucks to

roofs and floors.

Key Brands

Stanley, Proto, Husky, Vida, ZAG, MAC, Jensen, Contact East, Bo stitch,

Taro, Robotics, LaBounty, Innerspace

Product categories:

Industrial hand tools and tool boxes, professional and industrial mechanics tools, electronic diagnostic

tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and crushers.

1.4: Awards & Recognition:

A steady stream of new and innovative products is the lifeblood of this company. In 2007, Stanley

introduced more than 100 new products, many of which have won awards for great distinctions. The

9


10/79

company itself has been triumphant in winning numerous awards throughout the years for packaging,

design innovation, communication and advertising. Most recently, Stanley won 4 Golden Hammer

Awards in 2007 and also won two IDEA awards in the 2007 International Design Excellence

Competition.2007 Golden Hammer Awards Presented by Home Channel News, Stanley was the recipient

of the following four awards at the 2007 Golden Hammer Awards Ceremony:The Vendor of the YearAward.

The Innovator of the YearAward for overall new product development in all categories.

The GoldGolden Hammer Award for the Hand Tools category.

The Business to Consumer Communications Award for the Alien commercial featuring the Stanley

MaxLife 369 Tripod Flashlight.2006 Golden Hammer wards

Stanley was the only multiple award winner at the 22nd Annual Golden Hammer wards

Ceremony, presented by Home Channel News. The awards, based on votes from retailers and buyers,

were handed out at a ceremony in Las Vegas at the 2006 National Hardware Show. Stanley won:

The GoldGolden Hammer Award for the Hand Tools category.

The Business to Consumer Communications Award for the Stanley Sharpshooter Staple

Gun World's Weakest Man campaign.

TheInnovator of the YearAward for overall new product development in all categories.

FIG: 6

Both the Gold Golden Hammer for the Hand Tools category and the Business to consumerCommunications awards are the highest awards in their category. For the Innovator of the Yearaward,

Stanley was voted number one in new product innovation across all 36 product categories.

1.5: Brands Acquired:

10


11/79

Our innovative Consumer and Industrial products help people utilize their skills, express their creativity

and realize their visions on work sites around the globe. Brand names include Stanley,FatMax,

Husky, Goldblatt, Bostitch, Jensen, Mac, Proto, La Bounty, Vidmar,CST, David White

and ZAG. Our Security Solutions brands include Stanley, Best,Blick and Frisco Bay.

FIG: 7

1.6: The India Story:

Stanley India, a fully owned subsidiary of Stanley Works, U.S. having its head quarters in Delhi, started

its operations in the year 2007. They import their own products manufactured in different countries and

11


12/79

sell those in Indian Market with the help of its extensive chain of distributors & dealers. In the past one

year, Stanley has been able to appoint more than 170 + distributors all over India.

All the products of Stanley are categorized into 3 segments: Hand Tools, Hardware, Assembly technology

and Hydraulics. In India, Stanley has launched nearly 2400 products, and is in the process of launchingmore. Presently, Stanley India is focusing on Industrial Tools and Hardware business in India. Some of

the valued customers of Stanley India are Tata Motors, Aortal, Nokia, Mahindra,DMRC, etc.

The Indian operations of Stanley is involved the

Laser Products

Hardware

Hand Tools

Proto

Geographical Reach in India:

12


13/79

FIG: 8

Stanley Head Office (Delhi-blue)

Stanley India Warehouse (near gorgon-yellow)

Proto Distributor (green box)Hardware Distributor (yellow box)

Stanley Hand Tools Distributor (red dots)

Chapter II:

13


14/79

LITERATURE SUPPORT:

A) Introduction to Hand Tools:

The most popular product category is hand tools. The tools, which are operated by hands, are known as

hand tools. Hand tool products include a broad category of hand tools. Hand tool products are broadly

used in all type of industries. Today technology has become highly advanced but still the importance of

hand tools products cannot be ignored. In fact hand tool products are the backbone of all the industries; no

matter how advanced are the machines and technology used there. No industrial process can be executed

without using hand tools. As machine can never replace importance of mankind the same way automatic

tools can never take place of hand tools. The use of hand tools is must in every kind of industrial job but

sometimes it is not promptly noticeable. Even if the entire process is executed by automatic tolls and

machine, then too hand tools are required for additional jobs like packing, finishing etc. Furthermore the

Efficient working of machine is also dependant on hand tools. Hand tools are essentially required

For repair and lubrications of machines.

Apart from this they are widely used for home repairs, garages, electrical appliances etc. A kit full

Of primary hand tools products may be easily found at any home. Hand tools are used to execute

Very complex as well as simple tasks. Screwdriver is such a common hand tool product, which is

The part of every engineers tool kit as well as in every household. Spanners, screwdrivers, pliers,

Clamps, riveters, wrenches etc., are used for tightening and riveting the various screws etc.

Hand tool products are designed to carry easily. Thats why every vehicle has its own set of hand

Tool products. It can be used in time of any breaking of machine where one does not find any help.

Hand tool is a savior in time of need. A kit of hand tools products is like a first-aid box for

Machinery.

2.1: Hand tools Market:

2.1.1: Indian hand tools market:

India has a competitive advantage in the hand tool industry compared to other countries because

Of easy availability of raw materials, entrepreneurship skills and skilled labor at competitive

14


15/79

Wages. The hand tool industry as a whole is witnessing a shift of manufacturing base from

Traditional manufacturing countries in Europe and Taiwan to the developing world and this is a

Good sign for India to benefit. There has been an average growth of 17% per annum of the hand

Tool market in India for the last 7 years.

Estimated No. of Units in India2500

SSI Units 95%

Large Units 7

Estimated number of workers 25000

Major Manufacturing regions Jallandhar/Nagpur

2.1.2: US hand tool market:

The U.S. hand tool industry is estimated to be a $6.2 billion. Hand tool demand, including power tool in

the United States is expected to rise 3.1% annually through 2011, reaching $14.3 billion, according to a

recently released report. There are more than 1,000 firms active in the U.S. hand and power tools

industry, ranging from small, privately owned firms to major corporations like Stanley Works, Black &

Decker, Bosch, Danaher and Snap-on etc. In fact these major companies accounted for nearly 55% of the

total sales in 2006.

2.2: Characteristics of the industry:

A labor Intensive Industry:

A source of employment to many, hand tools industry is basically labor intensive in nature, whose

development is of great importance for a competitive as well as a self-reliant industrial structure. The

manufacturers of hand tools produce a comprehensive range of hand tools, right from carpentry and

plumbing tools to striking and cutting tools.

Energy intensive industry: Apart from being a labor intensive industry, this industry is also an energy

intensive one. It is estimated in a recent study that in most economies adoption of energy efficient

processes and technologies can yield in energy savings of up to 30 to 50%. Effective contributor to the

economy: Adding positively to the income of a country, hand tools industry has contributed to economy

in terms of development and technology up gradation.

15


16/79

2.3: Consumption patterns of hand tools:

This depends on the following factors:

Price

Supply chain dynamics

Product quality, design and safety

Service

Environmental factors

2.4: Driving forces for hand tool development:

Hand tools were in use since a long time and there has been a great change in the designs of

Hand tools from time to time. There were many factors that led to hand tool development.

2.4.1: Workers safety & health:

This is a very important consideration in today's designing of hand tools. Hand tools should be designed

in such a way so that they reduce wear and tear on the operator. Ergonomics hand tools have become very

popular, driven by an increased emphasis on worker safety and health. Workers nowadays prefer tools,

which reduce stress on the body and at the same time reduce employee time loss due to job-related

disabilities. Today, designers are coming up with more comfortable grips, reducing the weight of the

object, and making hand tools adjustable to different body types.

2.4.2: Chemicals:

When tools are designed, manufacturers consider ergonomics, performance and the environment. Besides

considering health and cleaning factors, hand tools are also produced nowadays using less chemicals,

using less environmentally damaging products which are not harmful to the human body and which

becomes an environment friendly product.

2.4.3: Cleaning:

One of the driving forces for change in hand tool has always been to make cleaning easier. For proper

functioning and durability of hand tools, it is necessary keep them clean after usage. In most cases, the

latest designs go for flexible handles which can be removed and cleaned separately as both the handle and

the tool blade are of different materials.

16


17/79

2.4.4: Hand Tools Standards:

With the rapid advancement and expansion in the global trade, standardization of various products is verynecessary. The standards given to various products help in expanding international trade which in turn

bridges the quality gap between the manufacturers, suppliers and buyers of different nations. In hand tools

as well, standards play a vital role.

Standards are required in hand tools for the following reasons:

They provide performance requirements.

They provide safety requirements.

Standards are available for all types of hand tools like pliers, screwdrivers, wrenches,

Striking tools, torque instruments etc.

These standards also include the various tests that are required to determine

Conformance with the safety and performance requirements.

B) Introduction to Stanley Assembly Technology:

Stanley Assembly Technologies, an operating group of The Stanley Works was founded in 1963.

Originally called Stanley Air Tools, the group was renamed in 2002 to reflect the emphasis on technology

to deliver solutions of high value to customers. Assembly Technologies headquarters are located in

Highland Heights, Ohio, a suburb of Cleveland. The Stanley Works is global corporation, headquartered

in New Britain, Connecticut and has manufacturing and distribution in all world areas. An application

center is located in Troy, Michigan. Locations in Europe include the U.K., France, Germany and Italy.

Assembly Technologies Product Group provides solutions to the global assembly market, including the

motor vehicle industry. Core solutions include high-performance DC electric and pneumatic tightening

tools and controllers, conventional pneumatic articulating arms, torque tubes and Intelligent Assist

Devices for ergonomic material handling.

Tightening torque capacity ranges from 0.5 to 2000 Nm and above. Tool geometries include straight,

pistol, angle, hold & drive, crowfoot and tube nut outputs. Different levels of torque control, fit assembly

requirements ranging from the most critical, such as safety related vehicle components to non-critical.

17


18/79

Network systems enable plant-wide real-time assembly monitoring including statistical charting, trace

analysis, remote tool configuration and hardware diagnostics. With Robotics products, Stanley Assembly

Technologies leads the growing global market for Intelligent Assist Devices (IADs). Engineered to

dramatically improve the productivity, quality and ergonomic safety of assembly operations, IADs are

computer controlled, servo powered lift assist devices that assist workers in lifting and manipulatingheavy and awkward parts. A highly skilled direct sales force works directly with major customers and

supports distributors in all world areas. Assembly Technologies sales engineers and distributors are

qualified to analyze customer applications and propose the ideal selection of assembly and material

Handling components. Technical Service employees support customers from Assembly Technologies

offices and regional locations. Other services offered by Stanley Assembly Technologies are:

Field service

Training for customers support personnel

Design consultation for special systems

Maintenance programs

Telephone support,

Spare parts and repair,

Equipment calibration and tool system certification include:

Auto and Light Truck Assembly

Auto Parts and Components

Large Truck Assembly

Construction and Farm Machinery

Recreational Vehicles

2.5: Products:

1) Thread Fastening:

i. Torque Equipment

ii. Standard Nut Runners

iii. Small QPM Tools

2) Engineered Systems:

18


19/79

i. Articulating Arm

ii. Fixtured Tools

3) Material Handling:

i. Trolley

ii. Lift

2.6: Intelligent Assist Devices (IADs): IADs are a new generation of computer controlled, servo

powered assist devices that allow seamless collaboration of a human operator with computer controlled

machinery, delivering superior speed and precision in material handling. IADs are analogous to power

steering for material handling. Providing an improved method for moving heavy or difficult to handle

loads, these systems are poised to revolutionize the ergonomic handling industry, bringing unprecedentedlevels of productivity, quality and ergonomic safety to manual processes.

2.7: Engineered System Applications:

A two spindle DC electric has adjustable bolt centers that can automatically change the tightening torque

level for each centers dimension. Tool Positioning System for Cylinder Head Bolts a Stanley Tool

Positioning System uses a single QPM DC electric tool to sequentially tighten 26 cylinder head bolts.

This is a lower cost alternative to an additional multiple spindle system. The tool is mounted on anarticulating arm with a PLC that monitors the tool position and tool parameter settings. Wheel Bearing

End Play Tool A special wheel bearing end play tool automates the tapered bearing assembly operation.

Four Spindle Blocker Beam a four spindle fixture multiple enables fastening of the 8 bolts for the blocker

beam in two operations.

Shear Bolt Tool:

Assembly of tension control fasteners that have an integral controlled shear section for installationwithout the use of torque-controlled nut runners.

2.8: Threaded Fastening Applications:

19


20/79

QPM Door Strap Secure A QPM E12PB-17 pistol DC electric tool secures the door check strap that

prevents motor vehicle door from opening past 60 degrees.QPM Instrument Panel to Firewall Secure

QPM pistol DC electric tool for securing the automobile instrument panel to the firewall. Adaptive

Tightening Control (ATC) is a patented algorithm developed exclusively by Stanley Assembly

Technologies and is a standard feature of all QPM Assembly Systems. ATC automatically manages speedand power to the motor of DC electric nut runners based on dynamic feedback during the course of each

and every rundown. If a single application consists of a mix of hard and soft joints with the same fastener

drive type and target torque, other tools must be set for the middle of the road (i.e. tolerate some

overshoot on the hard joint and increased cycle time on the soft joint). With ATC, each joint type is

sensed during that particular.

BENEFITS OF ATC:

Dynamic loads Improve Quality: accurately tightens a wide variety of joints.

Improve Productivity: optimize speed of tools on a wide variety of joints.

Improve Ergonomics: no sudden speed changes from downshifting.

Reduce Acquisition Cost: tools can be used on any assembly within their torque range.

Reduce Installation Cost: tools don't need to "learn" the job before use in production.

Reduce Maintenance Cost: smooth torque and speed transition minimizes on gearing.

MY learning and experience in the training:

Being a fresher it was my first work experience with an industry. So as far as the learning part goes it was

really enriching in all sense. My work was based on the B2B marketing. On the path of promoting our

product we had to meet general manager and assistant manager of different division in companies, for e.g.

purchase, maintenance, production etc. Overall it was an experience & learning based on interaction with

all these people in the tenure of the two months.

The whole learning process can be divided in two parts. Initial learning and getting acquainted with the

market knowledge and understanding how market functions in case of B2B hand tools selling.

INITIAL LEARNING PHASE:

20


21/79

This phase continued to initial fifteen days of my project. In this period I learnt about the distribution

chain being followed in Stanley. The chain was-

Stanley manufacturing hub (England, Taiwan, United States, China etc.)

Transport hand tools to Stanley warehouse in Gurgaon

Supplying the tools to the dealers place (overall India)

Supply to the customers on the basis of purchase order being generated

Stanley used to acquire their product from different countries. As they have acquired companies like

Proto, Facom, Britool in different countries, their manufacturing hub is also widely distributed in different

places. Depending on the brand the product is being supplied from different places. From the

manufacturing hub they are dispatching the tools to the warehouse in Gurgaon, India. From that hub they

are supplying hand tools to different dealers all over India. Those dealers in different cities are

responsible for supplying tools to the customers once the purchase order is being generated. According to

the company policy the dealers have to buy the tools from the company paying money on instant cash

basis. Stanley does not do business on credit basis. The risk completely depends on the dealer and their

capabilities to collect the payment from the customers. Stanley India is controlled from a single hub, set

up in Delhi. They do not have any permanent office in other cities in India. Stanley has appointed sales

officer for all particular zones in India. These people either themselves or by the help of some other zonal

sales officer control the sales process. All the responsibility for profitability and business development in

a particular zone depends on the sales officer. This is the initial structure the company is following. I got a

wide understanding of this structure in the initial days. I also got to deal with our dealers regarding the

data collection and proper understanding the process being followed locally in Kolkata.

This initial learning process was started by an orientation program in Delhi. In that three day long process

we were made aware of the product line of Stanley and the patented technologies Stanley is using like

maxi drive ,dynagrip etc. Then we were given an idea of the competitors of Stanley works in pan India

basis. We were also made aware of the HR policies being followed in Stanley works.

The next phase was grueling and filled with worthy experience. I was exposed to the hard realities of

market in Kolkata, where ninety nine percent of people are price sensitive. Stanleys core competency is

quality. So there was a clear trade off in Kolkata market. The job was to project quality criteria in a

manner to the customer thus they get convinced to experience the product at least once. Stanley products

have very high recall value. Not only convincing the customers but me also focused on active data

21


22/79

collection part from the customers in this phase. I learnt negotiation skills, style of pitching for the

product, style of opening & closing a deal and following up to carry forward the relationship to close

many more deals in future. These learning were not only very crucial to me but also as I am opting for

marketing major, this will be useful throughout my life as the first ever experience.

In this phase I did close a deal of twenty eight thousand in Marathon electrical. This particular company

was converted to a complete Stanley customer in all the divisions. I also got success in companies like

ONGC, Garden reach Shipyard, EMT Megaton, Titular Wagon Limited, FOJ, Tractor India Limited etc.

All these places either I generated a successful enquiry or I have made a channel for Stanley hand tools

entry. This gave me a lot of confidence to go ahead in my marketing career. The most valuable learning

was definitely the relation building exercise. I did make some valuable relationships in the industry and I

also maintained a good relationship with the dealers and the regional sales officer in Kolkata. Biggest

hindrance on the path of relationship building was the short span of the internship process.

Overall this whole internship was a very valuable experience to me what will definitely direct me towards

the correct path ahead in my life in marketing career.

Chapter III

22


23/79

METHODOLOGY OF STUDY:

The project was executed in such a way that it was complete to the maximum extent covering all

the aspects and thus arriving at a suitable conclusion to meet the objective of the project. Few

Recommendations were also suggested to the company, which can help the organization to grow

Further and penetrate faster into the new markets. Also an S.W.O.T analysis & competition

analysis were attached to the report to make company aware of their competition, strengths and

opportunities as well as threats and weakness.

3.1: Reach of the Project:

The study was conducted covering the two major industrial regions in Kolkata and the places

around Kolkata. The reach of the project consisted of various industries and dealers located in

these above mentioned areas.3.2: Research Plan:

The research was started with a well laid orientation program at Delhi. It was followed by a

research plan and weekly schedule once we started our work right here in Kolkata. The research

plan included the following important stages.

1) Data Sourcing or collection

2) Research Approaches towards the objective

3) Research Instruments used in the study

4) Sampling Plan for the research

3.2.1: Data Sourcing or collection :

Primary Research: Most of the data in this project was through primary research conducted in

Industries by me while performing the B2B selling process. It was done completely through

personal interviews, though a prepared questionnaire was used as guide line and which was later

filled summarized.

Secondary Research: Latest information available on internet about various industries and

dealers and about the hand tools market and its functioning in and around Kolkata. This

valuable data was also used apart from the data got through primary research, so as to have a

good study of the hand tools market in Kolkata and around industries.

3.2.2: Research Approaches towards the objective:

Approaching Customers/Industries:

23


24/79

1. Getting permission to enter an industry would complete almost 50% of your job as it would

give the platform to know about their operations. This gives the intern an exposure to the very

key processes done in an industry like production, logistics, finance and maintenance.

2. Get the details of the persons as many as possible in the industry through personal interview

method with the help from the questionnaire. Spend maximum time in the industry, so that you

would know what is their work environment i.e., whether they are using quality products, how

much of their operations are being done by contractors, what is their hand tools purchase

quantity and frequency of purchase, etc. These are very important parameter for the objective

verification.

3. Also try to find out how the process of purchase takes place, which is different for

Different companies, even sometimes between departments of a same company.

Closing the sale: This is very important for both the parties to build the relation, to run the business in a

flow and also for oneself as this give the motivation and adds more value to your work.

To reach to this stage, one must be clear how much work he need to put in, which

operates as a funnel like, if u want to reach or market x sales at least you need to meet

10x customers.

The time in which you would achieve this should also be planned in the similar way.

3.2.3: Research Instruments used in the study:

The research instrument was both qualitative and quantitative and hence consisted of personal

Interviews, which were guided by self, prepared Questionnaires. Each of the questionnaire

consisted of 17 questions on an average. The questions were both open ended and closed ended.

The closed ended questions were a diverse type consisting of single choices, multiple choices,

like scales and rating scales. The method of questionnaire preparation consist of few steps, The

design of a questionnaire will depend on whether the researcher wishes to collect exploratory

information (i.e. qualitative information for the purposes of better understanding or the

generation of hypotheses on a subject) or quantitative information (to test specific hypotheses

that have previously been generated).

24


25/79

There are no hard-and-fast rules about how to design a questionnaire, but there are a number of

points that can be borne in mind:

1. A well-designed questionnaire should meet the research objectives. Here the objective was to

find out potential for Stanley works in hand tools market in and around Kolkata and also have acheck on the logistics and consumer behavior in the hand tools market. Our questionnaire was

prepared with a clear focus to reach near to these objectives. Should obtain the most complete

and accurate information possible. The questionnaire designer needs to ensure that respondents

fully understand the questions and are not likely to refuse to answer, lie to the interviewer or try

to conceal their attitudes. A good questionnaire is organized and worded to encourage

respondents to provide accurate, unbiased and complete information.

2. A well-designed questionnaire should make it easy for respondents to give the necessary

information and for the interviewer to record the answer and it should be arranged so that sound

analysis and interpretation are possible.

3. It would keep the interview brief and to the point and be so arranged that the respondent(s)

remain interested throughout the interview.

There are nine steps involved in the development of a questionnaire:

1. Decide the information required.

2. Define the target respondents.

3. Choose the method(s) of reaching your target respondents.

4. Decide on question content.

5. Develop the question wording.

6. Put questions into a meaningful order and format.

7. Check the length of the questionnaire.

8. Pre-test the questionnaire.

9. Develop the final survey form.

Deciding on the information required

25


26/79


27/79

questions been asked by me. In a couple of cases I have taken the help in terms of telephonic

interview.

Decide on question content

There are only two occasions when seemingly "redundant" questions might be included:

Opening questions that are easy to answer and which are not perceived as being threatening,

or are perceived as being interesting, can greatly assist in gaining the respondent's involvement

in the survey and help to establish a rapport.

Dummy questions can disguise the purpose of the survey and/or the sponsorship of a study.

3.3.4:Sampling Plan for the research:

The industries to be visited were based on their type of industry like ship building industry, steel

Plants, electrical and electronic firm, oil refineries and any other major industries. The sample

for studying the companies was chosen to be sixty, which should have the mixture of all types of

companies.

3.3: Collection of Data and Analysis:Various Pie-charts and bar-graphs are made to have an easy and quick understanding of the study

Conducted. Initially all the questionnaires were analyzed individually, and then finally an overall

Comparison of the various responses from all the company respondents were done and analyzed.

We have also done study through the SPSS software, what have helped me to get a clear idea of

the important parameters for Stanley works in the Kolkata market. From the ten factors we have

chosen initially we have got totally six characters what were of importance to Stanley .Other than

the SPSS-factor analysis I have also done S.W.O.T analysis .What is very helpful for the

company to understand their condition in the Kolkata market, this study also can show the

company the future road of success for it, what is very important to proceed to a secure future.

Another important part of the whole study was the competition analysis. This can give a stand

where the company is today if we compare it with its competitor.

27


28/79

3.4: Findings & Recommendations:

Finally, the various findings from the study were listed out along with certain invaluable

Recommendations for STANLEY, to help them generate and tap the new markets. These

recommendations can also help the company to stress particularly on the factors where they

should focus for future success.

3.5: Competition analysis:

The hand tools market in Kolkata:

Hand tools are an integral part of the production and maintenance part of most of the industries who are

involved in some type of production. Kolkata industrial area which include central Kolkata region along

with Howrah, Budge and Hooghly district suburbs, is growing at a rate of 5.4 percent in this present

financial year. Keeping pace with the growth the hand tools market in Kolkata is also growing at six

percent per anum.The overall hand tools market worth 150 cry approx is versed with branded and unbranded competition. Price being the main factor what play the role in the Kolkata market, unbranded

players play the key role here occupying almost thirty percent of the market. Rest hundred and five core

market is open to the branded players like Taparia,Everest,Snap on ,Stanley etc.Taparia being the market

leader enjoys a major share of around sixty percent of the branded market in Kolkata, followed by other

hand tools brand.

Stanley is facing fierce competition in the Kolkata region not only from the branded but also from the

unbranded players. Being a new entrant in the market Stanley is facing a few key issues. They are-

Very low brand awareness in the market. Branded players who make claims on superior quality are not

able to impress customers sufficiently to ensure sales.

Another key issue is lack of market research. Appropriate market research on size of the market, growth

both historic and future growth and key buying influences, can give a company the right inputs and

feedback to improve its market share .It could also help the company in discovering and accessing new

markets and can help in developing winning marketing strategies.

Here we have analyzed the strength of a few key competitors and the areas where they score over Stanley

works.

Analyzing the competitor:

28


29/79

Among the key competitors present in the Kolkata hand tools market Tap aria is the most

successful player. They are doing business for more than sixty years in India based on their

manufacturing facilities in India as well as in China. The Core competency of Taparia is price.

Maintaining a minimum quality framework (ISO 9000, they sell their products at very reasonable

prices. This key factor has helped in establishing many Indian and overseas companies as theirloyal customers. They are successfully maintaining a satisfied customer base in Kolkata. A large

dealer & distributor base in the hub of the hand tools market (bare- bazaar) in Kolkata has helped

them to be a speedy and efficient supplier of hand tools. This effective and well coordinated

distribution chain has also helped them with openings in new industries. All of this has enabled

Taparia to become and continue to be the market leader not only in Kolkata but all over India.

While they may not have spent substantial sums on advertising and promotion, their products at

extremely competitive prices and an excellent distribution network has been responsible for their

premier position in the Kolkata region and their leadership in the rest of the country.

Taparia according to me have an edge over Stanley in the following aspects

Customers in Kolkata industrial belt, most of the cases preferred price parameter over the quality. This

tendency is not only seen in case of hand tools but in overall functioning process of the industries. So

naturally price being the core competency Tap aria is playing down Stanley successfully.

Secondly focusing on the delivery time, Stanleys average delivery time is about twenty days. Some time

even more than that. This is not only a potential threat to the business development process but also for

maintaining the existing market. Taparia score over Stanley supplying on an average of ten days time.

3.As the volume of delivery is high as well as the margins & commissions ,the dealers are more interested

to deal with Taparia rather than dealing with Stanley .As in case of Stanley, volume of hand tools being

supplied are very less. Even the profit margin also remains significantly low.

4. The payment policy in Stanley does not have a credit payment system. The dealer needs to pay the

money before the company supply the material to them. But once the customers turn comes, they mostly

work on a credit basis (six months at a minimum).This can create a shortage of fund for investment for

the dealer. In case of tap aria, the company also runs the business on credit basis. So dealers feel much

comfort in working with them.

5. Considering Stanley the time taken to close a deal by their sales force takes quite a long time. But if we

look at the tap aria, their customer base being very strong time to close a deal is pretty less for them. This

gives them added advantage to look for new market around the industrial area.

29


30/79


31/79

are accountable for ensuring quality is built into everything we do. Superior performance and quality

ensures future trust and confidence in our brands.

PASSIONATE CUSTOMER CARE:

Our customers come first. We believe that every interaction internally and externally is a customer

interaction that demands professionalism and respect. We believe we can make a difference in the lives of

our customers. We believe understanding our customers and listening to their unique needs ensures we

deliver customer-focused products and services.

FEARLESS INNOVATION:

At Snap-on, innovation is essential to create solutions aimed at increasing end-user productivity and

profitability. We develop and use breakthrough ideas to create solutions that bring real value to the

customer and deliver enhanced financial returns to the company.

RAPID CONTINUOUS IMPROVEMENT:

We are constantly striving for rapid continuous improvement; we are never satisfied. We are energized by

change, and continuously thinking ahead and anticipating how we can better serve our customers. We are

always examining how we can do it better, and engage constructively with those associated with the

company to gain additional knowledge and learn from past mistakes.

Snap on offer a range of hand tools and power tools as well. As their product range covers every nuke and

corner with respect to variety available in hand tools, a company can ever need to work in the field, gives

them an added advantage in the field of product offering. Now if we go for an analysis of the advantage

the company is having over the Stanley we can see,

Being other old & experienced players in hand tools market snap on also gets a trust advantage as well as

Stanley in the Kolkata market.

Snap on is also an American company, so the advantage of being brand America what Stanley gets is also

applicable equally to snap on.

If the quality is considered then snap on is also having an edge over Stanley. Snap on produce their hand

tools only in U.S and germany.This gives a quality assurance over the china made Stanley products.

31


32/79

In India, at the Bangalore and Delhi market snap on is having a loyal customer base. This belt is almost

imp-penetrable.

Though Snap on have advantages over Stanley but they fell short to many areas,

First and foremost, looking at the distribution network, snap on supply their product only from Japan to

all Asian countries. This leads to an average delivery time of months or more than that most of the

instances. What is completely unacceptable in most of the industries. On this issue Stanley scores over

them with a far more reasonable delivery time.

Snap on hardly exist in most of the Indian cities. This cost them an opportunity of getting a share in the

hand tools market pan India basis, like other international players.

They lack proper sales force in India. Completely depending on internet marketing have cost them

potential opportunities in India.

Focusing on the sensitive issue of price, Stanley will get an advantage being far cheaper than Snap on.

Snap on do not have any fixed dealer network. They depend on different dealers on a contract basis. With

a stable dealer base in all over India Stanley gets an edge over snap on.

Snap on generally deal online. But most of the companies in Kolkata are not very much interested in

intern ate dealing. This poses a serious problem for snap on.

Lastly, snap on depends on a loyal customer base of few companies who deal with only snap on hand

tools. Other than those customers, snap on do not have any steady expanding market. This have brought

their growth in Indian market at a hault.Stanley is potentially catching on this opportunity by expanding

their presence in new market every year significantly.

Then we can focus on Everest India hand Tools Company. This is another India based hand toolscompany what basically play over the low cost factor in market. This company is also having a

good customer base in pan India basis. They have diminished their quality in yearly basis in the

last decades, to focus on the price competency of the brand. In return they have paid serious price

by losing their market share significantly to Taparia. Given the situation where new and potential

entrants like Tata tools are coming in the business their chance of revival is less. Still they are

32


33/79

able to play in a niece market quite successfully. As I have focused on a limited number of

companies in Kolkata, I have got only one Everest customer. So its not very worthy to consider

Everest as a potential competitor based on my focus in the Kolkata market.

3.6:S.W.O.T analysis of Stanley works:

Being a developing nation what is growing at a rate of more than seven this year market in India for hand

tools is also booming. With increasing overall pie the number of competitors is also increasing. As

growth is the most important word for the survival of any company in the market S.W.O.T analysis ishaving an immense relevance in this study. Talking about the S.W.O.T analysis of Stanley, which

manufacture hand tools in large volume and wide range, we need to consider various factors like-

Competition

Hand tools market in India

Product quality

Technological aspect of product

Market viability

Acceptability in market

Market perception about handholds

Brand value of Stanley

Market share of Stanley worldwide and in India

Users response of the product

First of all lets focus on the strength of Stanley works.

33


34/79

STRENGTH:

Most significant strength of Stanley is their product quality. Its very important if we

consider the problem solving approach of sales. Proper projection of this core

competency in the market will prove to be very profitable for the company.

Ease of work, based on the longer size, what is responsible for the less torque

requirement while working is a very important customer friendly side of Stanley product.

Advance technologies in the product line are also very important. Dynagrip technology,

what is made for the soft gripping, gives comfort for the workers while working more

efficiently. Other than this there are technologies like maxi drive what gives the product a

very comfortable life what can prove to be one time investment for the industries. Apart

from these there is five degree range technology what makes the work smoothen.

The nickel chrome alloy gives the product very good finishing what is very important

once the products goes to the floor for use. This prevents corrosion and increases the

product life significantly.

Availability of wide range of products is also one of the most significant parts of Stanley

what gives the industry people to opt for a very high amount of purchase at a significant

discount rate.

Very high recall value of the products is also another big advantage of Stanley.

Well diverse storage item also gives a good protection against pilferage. This adds lots of

value to much industry as pilferage is one of the biggest challenges the industry people

are facing today.

With an ever changing need of the market Stanley R&D have evolved with low price

ranged spanner and other tools which will give enormous boost to the Stanley hand tools

market.

Acquisition is the most significant strategy what Stanley has taken for the expansion

purpose. They have acquired a series of companies named Facom,Proto,Britool,Mac

tools,Vidmar,Zag,Fat max,Bostitch etc.Through this they have not only increased their

range but they also gained an edge by killing competition. They have acquired the

34


35/79

companies in Germany, USA, and Russia and in much other country. By instantly

catching upon the market Stanley has improved their market share worldwide.

Another important strength of Stanley is their distribution network. If we see the world

wide picture then we can very easily estimate the main reason of Stanleys success in

U.S. and Europe is their distribution network. Though they are in nascent stage of

building this net work in India.

To run a successful company we need happy and dedicated people in the company.HR

policy of Stanley works is one of the best among the MNCs.So satisfied employee and

sales people deliver maximum effort behind the success of the company.

The Indian division of Stanley is mainly comprises of a bunch of young management

graduates. This gives a lot of thrust to the working of the company.Aggresive marketingis one of the strength of Stanley works.

In India Stanley is supplying products from china, what is very much cost effective and

easy to procure the inventory.

Customization is strength of Stanley. If the company orders in a bulk and different tolls

then Stanley make a special tool box for them to supply those kits. This makes the

company more customers friendly.

In industry the amount of requirement is huge and the field is also very diverse. As

Stanley have experimented with all the aspect of a production or maintenance unit of

particular type of company that makes it easier for them to understand which tool to order

where.

Its more than three hundred years old company. So a company surviving well for so

many years does have lots to say to the market. This makes a good image in the mind of

customers.

Not only the age but also its American origin also gives a lot of value to the brand.

ANSI and DSN are two of the toughest standard to pass through. Stanley maintains these

standards so the quality of the product is unquestionable.

WEAKNESS:

35


36/79

Though there are so many positive things about the company still the progress of

the company is stalled on some major issues. They are-

First and foremost is the price of the product. Its unreasonably high in

comparison with other players in Indian market. This high price have

cost them a lot of market share. Even if they plan for higher margin in

few customers that is also going to be tough with increasing competition.

In business everybody is very much price conscious these days. As the

raw material price is inflating day by day so all the company is opting for

a price cut. One of the most effected part of these cost cutting is

definitely the hand tools sector. So if Stanley wants to survive in India in

future definitely they have to slash price. But instead of slashing price

they are increasing price as per the international market.

Increase in price can be devastating in Indian market what is very much

pricing sensitive. Here very less people actually care about quality of the

tools. They mostly depend on use and through tools. So in this market a

high price tool can be an odd man out.

Even in the high end market where Stanley fights with their brands like

Proto and Facom, they are facing severe competition from other

established US brands like snap on.

As far the quality is concerned the market leader Taparia also maintains a

minimum level of standard. So its not very easy ground to fight out.

Taparia the competition brand is doing business in Indian market for

more than sixty years. Stanley has just entered the market. As taparia

have a good hold in the market and mostly loyal customers they are

getting an edge over Stanley everywhere.

Now if we focus on the inventory problems, we can see throughout India

they have a severe problem of inventory management. They have only

one warehouse in whole India. So even for showing a sample the dealer

have to get it from the main warehouse what takes tremendous time. This

is another big reason for loosing customer. Sometime the customer waits

36


37/79

for the whole month. In twenty first century world whatever is slow will

be wiped out for sure. Stanley should mind this gap very seriously.

The company doesnt even give any free sample to the customers. Many

of them ask for sample to the dealers and to the marketing people. As we

dont have any free sample with us, many time the customer deny

waiting and they move on with some other brand.

The product catalogue many times contains such items what is not

available with the Stanley warehouse. In that case sometimes we lose

customer even just before losing the deal. This can be very costly as bad

word of mouth against the company.

At least two out of ten cases Stanley product fails to match the criteriaasked by the customer. As a result the customers walk away with some

other brand.

Stanley does not have an office in most of the places they are doing

business. This not only cause inconvenience to the sales people but also

cause uneasy situation in front of customer as they always ask why such

a big MNC cant even afford a office when they want to do business.

All three dealers are located in the same area of Kolkata. This is veryinconvenient for people who are located in different part of Kolkata and

if they want to communicate with the dealer.

None of the dealer sales only Stanley hand tools. They all have

dealership of many other brands. So many times the lead generated by

the sales people of Stanley in some industry gets fulfilled by other

competitors product.

The dealers have severe competition among themselves. Rather than co-operating many times they try to acquire each others order. This can

cause further inconvenience.

Communication is another very big problem for the people in the market.

The sales people are overloaded. Such as the whole Kolkata region is

37


38/79

dependent on one single sales officer. Company may save some money

not recruiting more people but this can cost the company some serious

business.

The regional sales officers are also overloaded. They have so many states

to control; sometimes they are not able to stay even one week in a

particular state.

Company have only one HR employee to run the whole organization in

India and the situation is ridiculous. This signifies may be Stanley is not

at all serious about doing business in India.

At last, among the basic 4 Ps of marketing all three of place, promotion

and price is going terribly wrong for Stanley. So if they can run theirbusiness by the factors playing crucial role in Indian market Indian

market situation will improve. Otherwise like many other company they

will also quit India after few more years.

Opportunities:

If we look at the market in general we will there are lots of opportunities for hand tools market. Because

of few reasons-

Indian market is growing 8-10% in 2010, what is even better than China by now.

This can clearly state that given a growth situation there will be new factory, new set

up to match the production rise. So there will be higher requirement of hand tools as

well.

Hand tools market in India is also growing in a significant 17% rate. This is also

a very optimistic scenario for a hand tools company.

Other than these the price sensitivity in government companies is going down

day by day. This market is mostly dominated by the commission paid by the

companies. This can prove to be an opportunity for Stanley works.

Almost all the existing companies are expanding. From FMCG to automobile

manufacturer everybody is touching their threshold in case of production. So they

going to need a lot of hand tools.

38


39/79

Stanley is having a very wide range of hand tools what is rare in the competitors

product line. This gives Stanley an opportunity to sell more hand tools in bulk what

can prove to be cheap for customers.

Many companies are slowly focusing more and more on the quality of theproduct to cut short monthly purchase. This gives great opportunity for company like

Stanley whose core competency lies in Quality.

Quick acquiring of the company like Black and Dakar will give the company a

good ground on the Indian market.

Stanley is coming out with a low cost spanner range. This will add lots of value

to the company profile. Later times if they come out with a low cost substitute for

almost all the product that can prove to be a master stroke on behalf of the companyto increase the market share.

In few places like Army, Coca cola, Marathon electrical have become regular

customer of Stanley. This has helped Stanley to get a good hold on the market

referring these steady customers widely.

Being an American company and market leader in USA, it always gets an

advantage when it comes to hand tools sales in another American company.

Stanley R&D is very strong so that also gives them an edge over the other

players.

Stanley works being a centuries old company already has a good name in market.

These links once cultivated properly adds lots of value to the company profile.

Stanley works is a deep pocketed company. So keeping a pace with the

requirements they can invest a lot to increase the market share.

THREATS:

Taparia, the market leader is very strong when it comes to price. This is

the field where Stanley looses most amounts of the points.

Other companies like Everest are also going very fast, keeping pace with

the competition is the most important where Stanley is lagging.

39


40/79


41/79

STATEMENT OF OBJECTIVE:

4.1 PRIMARY OBJECTIVES

To assess the scope for the business development & maintaining a presence in theKolkata hand tools marketof Stanley Hand Tools &Stanley Assembly Technology.

To position Stanley as a brand in Kolkata market by focusing on S.W.O.T analysis and

competition analysis.

To determine the factors playing crucial role for Stanley in the Kolkata market.

4.2 SCONDARY OBJECTIVE

To find the potential for Stanley Hand Tools in the existing market. To find the hand tools purchasers needs and the expectation on hand tools.

To find the feedback about Stanley Assembly Technologies and take corrective action

thereby ensuring better business development.

To identify potential customers and new plants where business development can truly

happen

Chapter V:RESEARCH:

5.1 RESEARCH DESIGN FLOW CHART:

Two types of information are required for doing Multi Dimensional Scaling. The first type of

Informational requirement pertains to those that are requires to measure the dependent variable

This in this case is customers intention to buy.

The second type of information required pertains to the independent variable. The independent

Variables being considered in this case are price, brand, quality, durability, reliability, discount,

Warranty, availability, breakage and comfort.

41


42/79

This research was Multiple Cross- Sectional in nature as: Data collection was done only once

from only one sample of the population (Purchasers and end users). The research involved very

less of secondary data then the primary data. This was due to the fact that the accuracy of the

research was to be kept high. Moreover, the research was done on the currency basis i.e. it was

done for the current situation to make the project more relevant with the current market situation.

5.2 SCOPEOF SYUDY

The study provided an insight into the important factors for Stanley hand tools from the purview

of the customers. This is also focused on its applications, hand tools usage, expectations and

attitude towards hand tools like socket, spanners, pliers and screw drivers & many more. This

study will help to find out the feedback of Stanley hand tools with regards to price, brand,

quality, durability, reliability, availability, and comfort. Positioning Stanley among thecompetitors and leading it towards a better growth path in the Kolkata market is another

important focus of this study.

5.3 LIMITATIONS IN THE STUDY:

No research would be a fool proof, 100% error free with the time, money constraints and within

the limited resources. My research study was no exception. I too had my own set of problems in

terms of price, availability and with the fact that I was a first timer in this field.

The first limitation could be the fact that Expert opinion. Depth interview and all the

Descriptive study was conducted on a sample size of sixty. In this case the main problem is the

response varies depending on mood, situation & authority of the responder. Though these

techniques were conducted to unearth it still could be limited.

Next limitation would be the fact that the sample size of sixty. More the sample size more

detailed study would betas the number of the industries is very limited where we can

approach for the Stanley hand tools; this limited our reach further more.

The sample taken for creating the model included people from various industries in

Kolkata and around industries. This poses a great problem of limiting the view to a

handful of factors. As all these people are working under same circumstances under

specific regulation posed by west Bengal government in the particular Kolkata market,

the kind of problem people here facing can never represent people of India.

42


43/79


44/79

That can be used in the study. In this case distributors, dealers, sales officers, marketing manager

of Stanley for East and purchase, maintenance & production managers of industries which use

hand tools are considered as an expert.

5.4.3: Descriptive study

The descriptive research design used in this case is survey method and personal interview.

Personal interview with various industry purchases, maintenance & production managers made

me find some of the factors and ideas by observation, hearing their experience and interacting

with them.

5.4.4 Scaling technique

The scaling technique used in the questionnaire was like scale, open, closed ended and ranking

Scale. The Likert scale is commonly used in survey research. It is often used to measure

respondents' attitudes by asking the extent to which they agree or disagree with a particular

question or statement. A typical scale might be "strongly agree, agree, not sure/undecided,

disagree, and strongly disagree." On the surface, survey data using the Likert scale may seem

easy to analyze, but there are important issues for a data analyst to consider.

All the questions in the main questionnaire were extracting answers by this scale. This was

Maintained throughout the questionnaire to keep the reliability and validity in control. The likert

Scale technique is widely used to determine the level of agreement or disagreement of an issue in

the questionnaire. And another set of likert scaling were used to determine the most important

and least important of an issue in a questionnaire. The first step in the process is Get the data

ready for analysis by coding the responses. For example, let's say I have a survey that asks

respondents whether they agree or disagree with a set of positions in a political party's platform.Each position is one survey question, and the scale uses the following responses: The scale was

designed with five response categories as shown below.

1---Strongly disagree

2---Disagree

44


45/79

3---Neutral (Neither disagrees nor agrees)

4---Agree

5---Strongly agree

1---Most important

2---Important

3---Neutral (Neither important nor unimportant)

4---Less important

5---Least important

We need to remember to differentiate between ordinal and interval data, as the two types require

different analytical approaches. If the data are ordinal, we can say that one score is higher than

another. We cannot say how much higher, as we can with interval data, which tell the distance

between two points. Here is the pitfall with the Likert scale: many researchers treat it as an

interval scale. This assumes that the differences between each response are equal in distance. The

truth is that the Likert scale does not tell that. As with most statistical analyses, begin analyzing

Likert scale data with descriptive statistics. Adding a response of "strongly agree" (5) to two

responses of "disagree" (2) would give us a mean of 4.But, there are other measures of central

tendency we can use besides the mean. With Likert scale data, the best measure to use is themode, or the most frequent response. This makes the survey results much easier for the analysis

and interpretation purpose. We can display the distribution of responses in a graphic, such as a

bar chart, with one bar for each response category.

After descriptive methods, any good statistical analysis proceeds next to inferential techniques,

which test hypotheses posed by project. There are many approaches available, and the best one

depends on the nature of study and the questions or hypothesis I am trying to find out. A popular

approach is to analyze responses using analysis of variance techniques, such as the MannWhitney or Kreskas Wallis test. This can also be analyzed by the SPSS software, using the factor

analysis or the dimension reduction techniques.

We can simplify the survey data further by combining the four response categories (e.g., strongly

agree, agree, disagree, and strongly disagree) into two nominal categories, such as

45


46/79

agree/disagree, accept/reject, etc.). This offers other analysis possibilities. The chi square test is

one approach for analyzing the data in this way.

The questionnaire when framed was carefully done to avoid complex words. In circumstances

where such words could not be avoided, explanations were given for the respondents to

understand easy. The ambiguous words or sentences were also avoided. Each section of the

questionnaire had an initial explanation of how to answer the questions. An example was also

given for easy understanding of filling the questionnaire. Important instructions were highlighted

in bold letters to improve the vision and for a quicker understanding of the instructions by the

respondent. The respondent didnt have any problem in understanding the questionnaire and

answering it.

5.4.5: Designing questionnaire

Based on the results obtained from the descriptive study and using scaling method the final

Questionnaire was prepared and administered to the respondents.

5.4.6: Deciding the sample size

The sampling technique used for the research was more of a stratified random sampling. This is

Because of the customers who were all possible to meet were selected. The sampling was done

as mentioned above due the lack of time to get data.

As the market research was done to B2B market the sample size was taken as sixty. The data was

collected from purchase managers and end users. Certain care was taken to avoid errors of

history as the consumers were all contacted at the place of location. The other errors were either

avoided or even though present it was cancelled out due to the presence of the same with other

brands.

5.4.7: Data collection

46


47/79

Data was collected from both purchase managers and end users using stratified random

sampling. While undergoing the internship process I went to each of them and conducted a depth

interview, which took nearly ten minutes. The sample was about sixty potential customers for

Stanley hand tools. The data for the questionnaire was collected directly and through e-mail from

purchaser mangers and end users. The data was collected from all the industries I visited in and

around Kolkata. Using the data collected in the process I was able to come out with factor

analysis to see whether the factors are really related to the buying decision.

5.4.8: Analysis of the data collected

All the data collected was fed into a database created in Microsoft Excel especially for this

purpose. The various tools and functions available on excel were used for necessary calculation.

Bar graphs and pie charts were generated to make the interpretation of the results easier. SPSSsoftware was used for the purpose factor analysis.

Chapter VI:

DATA ANALYSIS:

Data analysis model is econometric model and was planned to be done with the statistical tool

SPSS.The data was obtained mainly in the likert scale for this purpose. The various tools andfunctions available on Excel were used for necessary calculations. Bar graphs and pie charts

were generated to make the interpretation of the results. SPSS software was used for the purpose

of factor analysis (dimension reduction).

6.1 Plan of data analysis:

The data analysis done as in the plan given below-

1. At first the filtering of the questionnaire was done.

2. The questionnaires were sorted into the respective groups.

3. coding of the questions were done.

4. All the data was entered into different excel sheets.

47


48/79

5. This data was copied to the SPSS tool all the variable were explained.

6. The other questions related awareness, departments, ranking and current brand were

Analyzed using Micro soft Excel.

7. Results were tabulated and conclusion and recommendations were drawn.

Chapter VII:

RESULTS AND INTERPRETATION:

7.1 STANLEY HAND TOOLS:

7.1.1 Hand Tool Market Share:

The below table & graph gives the market share different companies hold.

NAME OF THE COMPANY NUMBER OF USER Taparia 38Stanley 4Everest 5Snap on 1

Thalami(unbranded) 14Table: 1

FIG: 9

48


49/79

My study reveals from the above table and pie chart that more than sixty percent of the

respondent industries are using Taparia tools, about ten percent are using Everest and Stanley

and more than twenty percent of the market is occupied by the unbranded players. As a

competitor we can tap the branded market in case of tools like socket, hydraulic jack what cost

similar to the market leader taparia. For other tools either we need to curb the price to a

reasonable level or we need to focus more on the niece price in sensitive market where Stanley

product will far better.

7.1.2 Frequency of Buying Hand Tools:

Duration Frequency of hand tools purchasemonthly 3

2-3 months 7

4.6 months 3

6-12 months 11

More than an year 36

Table: 2

FIG: 10

49


50/79

From the above frequency table it is revealed that about twenty eight percent of the industries

purchase hand tools half yearly, around fifty six percent of the industries purchase annually and

nearly sixteen percent in monthly basis. This concludes company should constantly focus on the

market to grab the opportunity. A long term relationship building process throughout the year

can prove to be helpful for the yearly purchase segment. These company generally issue tender

once in a year when they purchase hand tools. Quick follow through in that time followed by a

reasonable and consider worthy quotation can close a deal for Stanley works. Regarding the

other segment the company should put enough marketing effort to make the market much more

aware of the quality aspect of Stanley. Once Stanley become successful to put forth their core

competency to the industry people, immediate effect can be reflected on the market share.

Hand tools usage (product wise):

Hand tools type Percentage of usage(with respect to other

tools)Socket 20Spanner 31Hammer 2Ratchet 12Knives 8

Wrenches 7Other tools 20

Table: 3

50


51/79

FIG: 11

The spanner, socket and ratchet are the most used tools in the market. But if we look at the

product and price range of Stanley then it will be clear to us that they cannot get a good hold on

the spanner market because of the high price. If they are going to get a hold then that will be the

socket market and partially the ratchet market. To convey the superior quality with a reasonable

price what Stanley offer for sockets and for a spatial range of hammers must be conveyed to the

industries by proper marketing effort.

The average cost of procuring the hand tools vary in a range of 5 laky to 70 laky depending on

the business the company is in. More than sixty percent people heard the name of Stanley for thefirst time. So, market communication of Stanley need to be improved. Only twenty five percent

of the people I surveyed upon acknowledged that they have used Stanley products. This data

support that poor communication and the negligible market share goes hand in hand. Once a part

of the picture is improved, the other part gets an immediate boost.

Companies who are using Stanley are very much satisfied with the performance and quality of

the product. Almost all of them have gone for repeat purchase of Stanley hand tools. Most sought

after tools of Stanley are the hammers (compo cast), wide range of sockets and the tool kit box

according to the survey filled up by the company people.

Worth of inventory stockings of dealers:

Amount of inventory stocked by dealers Number of dealer respondedLess than two laths 65-10 laths 310-15 laths 2More than 15 laths 1

Table: 4

51


52/79

FIG: 14

This interpretation clearly shows that fifty percent of the twelve dealers I interviewed were

stocking less than two laths of tools on yearly basis. Reason being as the market of hand tools is just getting shaped up in Kolkata they did not wanted to take risk. Secondly, they were also

worried about the high price of the product, what was a hindrance on the path of swift movement

of Stanley handtools.This posed problem even on the path of catching up new markets. Very few

dealers who are maintaining a consistent relationship with a big client only they are able to

procure hand tools of greater amount.

7.1.4 Source of Information

SOURCE OF INFORMATION

Source of information Number of respondentNews paper 1Magazine 3Local outlet 31Stock list 2Sales representative 18Friends 4Others 1

Table: 5

52


53/79

FIG: 13

Much of the information about the hand tools was obtained from the local outlets. Hence,

Better visibility must be done through acquiring more and more number of dealers every year.

The direct marketing channel through sales force is quite effective with reference to the collected

data. But number of sales people in the field is a serious problem for Stanley works .They should

go for a mass appointment of more and more sales people for a better market presence of the

brand. To increase the visibility the company also should focus for structured PR (public

relation) process through magazines, newsletters, special exhibitions and seminars, as they carry

a meager 12% of the overall pie. Better promotional campaigns and brand awareness

Programs must be carried out at a regular interval to popularize the brand.

7.2.3 AWARENESS OF STANLEY PRODUCTS:

Response Number of respondentsYes 21No 39

Table: 6

Though a chunk of people did hear about the brand but only a hand few of 36 % have used it in

their industry. Rest almost 64 % of the people has never used it for various reasons. In this cases

53


54/79

problem solving approach by the sales force is the best option. So appointing more people in the

sales force can be the initiation of solving this problem.

Satisfaction level of existing hand tools:

(1: Highly dissatisfied, 2: dissatisfied, 3: average, 4: satisfied, 5: Highly satisfied)

Satisfaction level Number of respondent1 22 53 134 185 9

Table: 7

FIG: 14

This result is very important for the future expansion plan of the company. The 20 % bunch of

very satisfied customers is less likely to change to some other brand leaving their regular brand.

But if we can focus on the bunch of average and satisfied customers, what consist of more than70 % of the total respondents can possibly is converted to Stanley customer. To make this

proposition a success the company at the first place should try to educate the customers with the

quality proposition, its core competency. This can also drive the companys growth to a right

direction.

7.1.3 Factor Analysis:

54


55/79

Factor analysis is included in the SPSS package as a data reduction technique. It takes a large set of

variables and looks for a way that the data may be reduced or summarized using a smaller set of factors or

components. It does this by looking for clumps or groups among the intercorrelations of a set of variables.

This is an almost impossible task to do by eye it anything more than a small number of variables. It is

Used extensively by researchers involved in the development and evaluation of tests and scales. The scale

developer starts with a large number of individual scale items and questions and, by using factor analytic

techniques; they can refine and reduce these items to form a smaller number of coherent subscales. Factor

Analysis can also be used to reduce a large number of related variables to a more manageable number.

Prior to using them in other analyses such as multiple regression or multivariate analysis of variance.

There are two main approaches to factor analysisexploratory and confirmatory. Exploratory factor

analysis is often used in the early stages of research to gather information about (explore) the

interrelationships among a set of variables. Confirmatory factor analysis, on the other hand, is a morecomplex and sophisticated set of techniques used later in the research process to test (confirm) specific

hypotheses or theories concerning the structure underlying a set of variables. The term factor analysis

encompasses a variety of different, although related techniques. One of the main distinctions is between

what is termed principal components analysis (PCA) and factor analysis (FA) is if we are interested in a

theoretical solution

soumallya project final(summer internship)

Documents