study of consumer behavior of sanitary ware appliances final presentation
TRANSCRIPT
CONSUMER BEHAVIOR ANALYSIS CONSUMER BEHAVIOR ANALYSIS OF THE PREMIUM BATHROOM OF THE PREMIUM BATHROOM
PRODUCTS PRODUCTS
Institute for Technology & Management, Kharghar, Navi Mumbai2/09/2009
1
A PresentationA PresentationOnOn
Agenda
Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Suggestions Limitations
04/08/23
2
Agenda
Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations
04/08/23
3
Industry Overview
One of the fastest growing country for sanitary ware consumption.
Government policies. (HUDCO, The National Housing Policy )
20 million housing units demand and 115 million reconstruction for improvement.
Introduction of new manufacturing technologies. Strengthening dealers and companies opening own
retail outlet in metros.
04/08/23
4
Industry Overview
Divided into 2 major sectors
Organized Sector – 5 major companies
Unorganized Sector – regional guerillas Cost of Production in India is low.
04/08/23
5
Industry Overview
SANITARYWARE INDUSTRY STATISTICS :
World production: 187 Million pieces
India's Share: 6.7 Million pieces.
World ranking (in production): not in the Top 10 (India A/c
for 3.30%)
Global Industry Growth Rate: 5-7%
Growth Rate (India Domestic Market): 10%-15%
Organized sector:
% Share of Production: 43%
No. of units: 6
Production Capacity: 103300 M.T. per annum
Actual Production: 95000 M.T. per annum
Unorganized sector:
% Share of Production: 57%
Production Capacity: 136700 M.T. per annum
Actual Production: 120000 M.T. per annum
Source: Indian council for ceramic tiles & sanitaryware -2008
04/08/23
6
Agenda
Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations
04/08/23
7
Grohe – Brief Introduction
Friedrich Grohe acquired Berkenhoff & Paschedag, a manufacturer of bathroom fixtures that had been in business since 1911.
Post world war II, it was renamed after the owner. In 1961,founded its first foreign subsidiary, in France The death of company founder Friedrich Grohe in 1983 The conflict over use of Brand name “Grohe” settled in the
early 1990s a world market share of roughly 10 percent in 2001
04/08/23
8
Grohe – Brief Introduction
Late1980s,Grohe had become one of Europe's top manufacturers of kitchen and bathroom fixings.
Sales had climbed to over 700 million Euro and Exports accounted for 70 percent of the total.
In 1991 Friedrich Grohe was transformed into a public stock company under the name Friedrich Grohe AG.
Raised Friedrich Grohe's public recognition received many German marketing award in 1996.In June 1999, Charles R. Grohe, sold their stakes in the company.
04/08/23
9
Awards For It’s Product Designs
04/08/23
10
Grohe – Brief Introduction
04/08/23
11Product-Mix width
Faucets Showers Thermostats Accessories
Bathroom:Allure Rainshower Grohtherm 2000 SkateAria Relexa Grohtherm 3000 SurfAtrio Tempesta Free handerEssence SenaArabesk AquatowerSinofina ClassicTenso MovarioConcetto LineareKitchen:AtrioEssenceMintaK4ZedraAriaAliraEuroplusEurodiscEurostyleEurosmartClassic lineCostaArabesk
Agenda
Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations
04/08/23
12
Internship Objectives
To understand the consumer’s buying behavior of luxury sanitary products.
To prepare a database of potential customers of Grohe products.
04/08/23
13
Agenda
Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations
04/08/23
14
Research Proposal
Sub-Objectives
1. Choice of Appliances is independent of Brand image of product.
2. Aesthetics of product is given priority over other attributes of kitchen & bathroom appliances.
3. Bathrooms are considered important portion of house by the population.
4. People are ready to pay more than 150,000/- INR for new bathroom / kitchen appliances.
5. People always consider new brands for renovation.
6. Brand image of appliance is closely co-related with advertisements effectiveness.
04/08/23
15
Research Proposal
Research methodology
Exploratory research method Method of Sampling
Convenient sampling
Individual Interviews Sample size
Builders/Architect = 96
End consumer = 48
04/08/23
16
Agenda
Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations
04/08/23
17
Observations and Findings
Brand awareness Grohe is week in brand
awareness. Jaquar,Hindware
& Parry’s enjoy highest brand
awareness.
04/08/23
18
Observations and Findings
Source of info.
Hoardings are major source of information for the consumers other than T.V. & Newspapers
04/08/23
19
Observations and Findings
04/08/23
20
Importance of branded appliances
Observations and Findings
Willingness to spend
Majority of respondents are not ready to pay 50,000/-150,000 /- in order to get their dreamy bathrooms.
04/08/23
21
Observations and Findings
Rating for various media ‘Seeing is believing’ is the apparent
message from ratings. Radio/FM
ads are lowest on ratings
04/08/23
22
Architects/Designers/Plumbing Contrator
Observations and Findings
Hypotheses Testing Hypothesis : 1 Choice of Appliances is independent
of different brands available in the market. Hypothesis2. Aesthetics of product is given priority
over other attributes of kitchen & Bathroom appliances.
Hypothesis 3: Bathrooms are considered important portion of house by the population.
Hypothesis 4: People are ready to pay more than 150,000/- INR for new bathroom / kitchen appliances.
04/08/23
23
Observations and Findings
Hypothesis results
Hypothesis 1:- Calculated value is coming inside the limits of acceptance region so null hypothesis is not rejected. Thus the brand image is affecting a consumer’s choice and an important step in product selection.
Hypothesis 2:- Zcal value for “Ease of use” & “Aesthetic” taking as two variables is deep into rejection region, we have enough evidence to reject the null hypothesis that aesthetic is always given priority over other features of the bathroom appliances. We can also conclude that we do not have adequate information to give prioritise to attributes.
04/08/23
24
Observations and Findings
Hypothesis results Hypothesis 3:- Since the Ztab > Zcal ,null hypothesis is rejected
& We can clearly predict bathrooms are not just a portion of a house.
Hypothesis 4:- Since Zcal < Ztab , hence we can conclude that null hypothesis is rejected and hence we can accept the hypothesis that is or the Target consumer ready to pay large sum of moneyfor a new bathroom/kitchen (Master Bathroom)
04/08/23
25
Swot Analysis
STRENGTH:Worldwide market leader in premium bathroom fittings.Presence throughout 130 countries.Strong financials with a turnover of Euro 1010 million.The brand is synonymous to innovation and reliability.Superior design that are environment friendly.
WEAKNESS:Weak distribution network in India.Lack of manufacturing plant in India which further ups the already high price of the products.Lax marketing efforts in a new market like India where huge marketing efforts are to be put in to vie for consumer’s attention.Immensely high priced products for a price sensitive market like India.
OPPORTUNITIES:Booming construction and infrastructure development in South Asian and other developing countries.Higher disposable income with the Indian consumer as compared to earlier era when austerity was the prime virtue as against ostentatiousness of present times.Can introduce some lower cost variants to tap the middle income group market in India.
THREATS:Foreign players like Hans-Grohe have tied up with domestic giants like Jaquar to make use of their distribution channel.Price sensitivity of developing economies can cause the plans and forecasts of a company to go haywire.Aggressive marketing by local players like Jaquar which has a superior reach throughout India
04/08/23
26
Agenda
Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Recommendations Limitations
04/08/23
27
Recommendations
1. Brand Awareness is desired to be improved among the consumers
2. A part payment plan for the Grohe customers is to be introduced
3. The delivery of high technology quality product with lesser glitches is to be assured.
4. An after sales service force is considered necessary to be developed.
5. Search engine marketing of Grohe website is rudimentary.6. Grohe cube virtual bathroom web tool need to be
improvised.7. Implementation of major SCM software.
04/08/23
28
Agenda
Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Recommendations Limitations
04/08/23
29
Limitations
The analysis of potential products is limited . Considerable differences and inherited feature in
consumer tastes, fashions and preferences . Communication. Biased views. Wastage of time. Low sample size might not be implemented in
other cities.
04/08/23
30
.
Reference Books
1. William C. Zikmund - Business Research Methods
2. Kent Black – Business statistics for contemporary decision making
3. Malhotra, Dash – Marketing Research
4. Phillip Kotler, Kevin Keller – Marketing Management (13-edition)
5. Grohe Product Manual given by the company guide
Websites
www.grohe.co.in
www.Tagcrowd.co.in
www.ictas.org
www.adwords.google.co.in
04/08/23
31
04/08/23
32