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IDENTIFICATION AND ENHANCEMENT OF RETAIL NETWORK AND CUSTOMER BASE FOR LORENZO VITRIFIED

TILES PVT. LTDInternship

Project Report

BY

B.K SHARON JOSEPH

MAMTA CHHETRI

A. VINESH KUMAR

D. S KARTHIK

Department of BBA

LOYOLA ACADEMY DEGREE & PGCOLLEGE

(AUTONOMOUS)

A “College with potential for excellence” by UGC

Accredited with Grade ‘A’ by NAAC

Affiliated to Osmania University

LOYOLA ACADEMY DEGREE & PGCOLLEGE

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(AUTONOMOUS)

A “College with potential for excellence” by UGC

Accredited with Grade ‘A’ by NAAC

Affiliated to Osmania University

This is to certify that (Names & Roll Nos.) have submitted a project report on “Identification and enhancement of Retail network and customer base” as a partial fulfillment for the award of BBA degree from Loyola Academy, affiliated to Osmania University, Hyderabad during the academic year 2013-2014.

Project Guide External Examiner

Head, Dept. of BBA PRINCIPAL

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ACKNOWLEDGEMENT

We express our sincere gratitude to the college management, especially the Principal (Name) , and the Vice Principal (Name) for giving us an opportunity to work on this internship project, thereby enriching our knowledge.

We are also thankful to (HOD Name ), Head, and Department of BBA for herinspirational and valuable guidance. We express our sincere thanks to (Guide’s Name) our project guide for her suggestions and guidance in completing the project. We would also like to extend our gratitude to other faculty members without whose help this project work would not have been successfully completed.

We are indebted to Mr. Vaddi Prasad Assistant Manager of Lorenzo Vitrified Tiles Pvt. Ltd. for granting us permission to pursue the internship project in his company and by giving valuable inputs in preparing this project.

We also extend our gratitude to other people who were directly or indirectly involved in helping us in completing the internship project.

Names Of The Students (Roll No.)

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DECLARATION

We the undersigned students of Loyola Academy Degree and PG College (Autonomous) affiliated to Osmania University, hereby declare that the project report entitled “Identification and enhancement of Retail network and customer base of Lorenzo Vitrified Tiles Pvt. Ltd.” has beenprepared and submitted as a partial fulfillment for the award of BBA degree, and is a bonafide work undertaken at Lorenzo Vitrified Tiles Pvt. Ltd.

We further declare that it is an original work done as a part of our academic course and has not been submitted to any other university or institution for the award of any degree/diploma/certificate or published any time before.

Names Of the Students

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INDEX

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S.NO PARTICULARSPAGE NO.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

CHAPTER 1

INTRODUCTION LORENZO VITRIFIED TILES COMPANY PROFILE

CHAPTER 2

REVIEW OF LITERATURE RESEARCH METHODOLOGY

CHAPTER 3

OBJECTIVE 1 : TO IDENTIFY RETAIL NETWORK AND ENHANCE CUSTOMER BASE.

CHAPTER 4

OBJECTIVE 2: TO DETERMINE THE MARKET SIZE

CHAPTER 5

OBJECTIVE 3: TO ENHANCE THE PRODUCT REACH TO THE UNTAPPED AREAS IN THE TWIN CITIES BY SURVEY.

CHAPTER 6

LIMITATIONS OF STUDY

CHAPTER 7

CONCLUSION

CHAPTER 8

SUGGESTIONS

RECOMMENDATIONS

CHAPTER 9

BIBLOGRAPHY

CHAPTER 10

ANNEXURES AND QUESTIONAIRES

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13

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33

40

44

50

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69

73

75

76

78

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CHAPTER 1

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INTRODUCTION ABOUT RETAIL NETWORK AND CUSTOMER BASE

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INTRODUCTION

As the change in demand and supply pattern in the market do not allow any company to fix or work with a set of rules in this speculative era. Each and every company goes for market research to gather information and collects the important data which is needed for the formulation of new strategies and also helps gaining the competitive advantage.

Market research is any organized effort to gather information about markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a distinction, in that marketing research is concerned especially with markets.

Market Research is key factor to get advantage over competition. Market research provides important information to identify and analyze the market need, market size and competition.

It is for discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is completed, it can be used to determine how to market your product.

Questionnaires and focus group discussion surveys are some of the instruments for market research.

For formulating any new strategy for marketing or promotion the important things needed is-

MARKET INFORMATION

Through market information one can know the prices of the different commodities in the market, as well as the supply and demand situation.Information about the markets can be obtained from different sources, varieties and formats, as well as the sources and varieties that have to be making the business work.

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MARKET SEGMENTATION

Market Segmentation is the division of the market or population into subgroups with similar motivations. It is widely used for segmenting on geographic differences, personality differences, demographic differences, techno graphic differences, use of product differences, psychographic differences and gender differences for B2B segmentation filmographies is commonly used.

MARKET TRENDS

Market trends are the upward and downward movement of a market, during a period of the time. The market size is more difficult to estimate if one is starting with something completely new. In this case, you will have to derive the figures from the number of potential customers, or customer segments.

Besides information about the target market, one also needs information about one’s competitors, customers, products, etc. Lastly, you need to measure marketing effectiveness. A few techniques are:

Customer Analysis Choice modeling Competitors analysis

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SCOPE OF THE STUDY

Vitrified tiles come under 'Building Material Industry'. Over the years, Indian Building Material Industry poised to grow at a fast pace of almost 16'70/annum due to boom in real estate and construction industry. Increase in income levels and availability of a range a financing options for housing is enabling rapid growth in housing construction.

In India, particularly in NCR region, growth rate of building material industry is at very high and constantly growing. By this project finding, we have been trying to catch the opportunities ad demand a various tile making organizations for their commercial and residential needs in Hyderabad and Secunderabad region.

Also as marble prices begin to pinch purses in these times a meltdown, tiles are making deeper inroads into urban homes. And they are getting more designer makeovers to suit market demands.

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OBJECTIVE OF THE STUDYMajor objective of this report confines with these facts-

To identify retail network and customer base.

To determine the market size.

To enhancement of the product reach to the untapped areas in the twin cities by survey.

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INTRODUCTION

ABOUT

COMPANY PROFILE

(LORENZO VITRIFIED TILES PVT. LTD)

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GLIMPSE OF LORENZO VIRTIFIED TILES PVT. LTD

LORENZO vitrified tiles; an ISO 9001:2008 certified company was started in the year 2008. Lorenzo is having manufacturing facilities at Morbi, Gujarat, India with a credo of delivering excellence and promising quality confirming to be 15622 specifications. The company has a state of-the-art environment friendly manufacturing unit. The installed capacity of the company is 7500 sq meters and now they are able to produce capacity of 25000 sq meters per day. They have crossed 89 cores turnover in the last financial year and planning to touch 150 cores for next financial year.

Lorenzo having 9 companies owned depots and 700 dealers and sub dealers across India.

At the helm of the management are Mr. J Gadara, Mr.VasantGajera, Mr. M P Patel and Mr.Swintumawani, who have endured to ensure that Lorenzo vitrified tiles Pvt ltd. becomes a name to reckon with.

The company distributing the product through a network of C & F agents, distributors, dealers and sub dealers spread all over the country.

They are equipped with Sacmi kiln, Sacmi press (ph. 6200), and Sacmi dryer and Keda polish line together which can produce large batches simultaneously.

Quality, durability, aesthetics designs and colors make Lorenzo vitrified tiles not just a manufacturer but also promote

“ADD LUXURY TO YOUR LIFESTYLE…”

LORENZO is all geared-up to storm the Floor Tiles Market. Not overlooking the Indian Customer’s preference for style and look, we would introduce the range in a wide array of captivating and contemporary design and colors. To give a better after-fit finish Lorenzo floor tiles are having superb polishing and Nano technology equipped unit.. We have built a reputation for delivering high-end quality floor tiles products to our customers. LORENZO-floor tiles manufacturer is dedicated to achieve highest levels of customer’s satisfaction by continuously improving Quality and product range to deliver high value to customers.

LORENZO has long been known for its product quality and customer service. We are world’s leading vitrified tiles manufacturers situated in morbi – Lorenzo is the most talented vitrified tiles manufacturer of morbi-floor tiles hub of India. Like the tropical storms in the Atlantic Ocean from where we have derived our name from, we at Lorenzo Vitrified Tiles Pvt. Ltd., are here with a storm of passion to bring a revolution in Designing and architecture. We have Granito tiles in various sizes

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like 600 x 600 mm, 800 x 800 mm, 1000 x 1000 mm, 1200 x 1200 mm and 1200 x 1800 mm to give a better after-fit finish.

Lorenzo Marketing Is Done By Three Ways-

Whole Sale Retailing And Project Selling.

VITRIFIED TILES

. Plain Color Series.

. Design Series.

. Matt Series.

. Dark Colors.

. Self-Design Series.

. Wooden Design Series.

. Carpet Series.

. Marble/Italian Series.

. Mirror (Nano) Finish Series.

. Double Charge Tiles.

. Digital Series.

SIZES

600 X 600 MM.

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PRODUCT RANGE

1. Petalite Series

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2. Neptune series

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3. Special colour

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4. HD Digital series

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TECHNOLOGY ASSOCIATES

1. Sacmi (Italy) – 5 Layers Dryer

2. Sacmi (Italy) - Kiln (247 Meters) One of the Largest Kiln

. Sacmi (Italy) - Press (Ph. – 6200)

4. Metco (Spain)

5. Keda (China) – Polishing Line

STANDARD FOLLOWED

Though They Follow The Code No., Is 15622:2006, Is 13630:1993 And Is 13755:1993, But They Also Has Its Internal Norms, Which Are Called As “Lorenzo Norms”. Technical Aspects Covered Are Dimension & Surface Quality, Physical Properties, Chemical Properties And Thermal Properties.

MANUFACTURING PROCESS

Collection of Raw Material

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Ball Mill – Body Preparation

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Spray Drying – Powder

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Hydraulic Pressing – Biscuit Preparation

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Glaze/Screen Print – Design Preparation

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Firing

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Polishing

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RAW MATERIALS USED FOR VITRIFIED TILES

1. Ball Clay 2. China Clay 3. Feldspar 4. Soda 5. Quartz 6. Potash 7. Feldspar 8. Ukraine Clay

LORENZO VITRIFIED CAN USED FOR

1. Domestic Purpose 2. Offices 3. Schools And Colleges 4. Bus Stands 5. Railway Stations 6. Hospitals 7. Air Ports 8. Corridors 9. Halls 10. Bed Rooms 11. Bath Rooms 12. Kitchen13. Gymnasium 14. Shopping Malls 15. Religious Places

Distribution System of Vitrified Tiles

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Vitrified Marketing

The 4Ps of vitrified marketing are like different levers that can be used in different degrees to achieve the same objective.

Product - There is a wide range of designs and sizes to choose from. Introduction of two newcategories-i.e., Vitrified and Concept tiles.

Price - The price range is very vast. Due to capacity expansion supply is increased so price islowered down by 35%. Moreover price war from china has also lowered down prices.

Promotion -Advertising is done in leading Construction magazines and interior design journals.Taking part in international exhibitions is routine

.Place -Wide distribution network in and outside state. Products delivered within feasible timeline of order.

Company

Direct Project

Builder

Contractor

User

Dealer/Wholesaler

Retailer

User

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DISTRIBUTION NETWORK

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FEW PRESTIGIOUS PROJECTS SO FAR SUPPLIED IN ANDHRAPRDESH

1. Supplied To Many More Engineering Colleges, Medical Colleges, Colleges And Schools Across Andhra Pradesh.2. Supplied To Institute For English And Foreign Languages, SV Engineering College, Osmania University.3. DivyaJyothi Skill Development Council (Rajiv Yuvakiranalu)

IT PARK

1. MJR constructions, IT Park, Nanakramguda, Hyderabad.2. Emaar MGF, Gachibowli, Hyderabad.

BANKS

1. Canara Bank. 2. Andhra Bank.3. Bank of India.4. Union Bank of India.

HOTELS AND RESORTS

1. Sri Vijay Krishna Hotels and Resorts, Miyapur, Hyderabad.2. Hotel Swagat, a Group ofSwagat Motels, Habsiguda, Hyderabad.3. Prajay Engineers Syndicate, Celebrity, Villas, Shamirpet, Hyderabad.

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CHAPTER 2

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REVIEW OF LITERATURE

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REVIEW OF LITERATURE

This study is based on the data about Lorenzo Vitrified Tiles Pvt Ltd. for a detailed study of its retail

network and customer base and finally to recognize and determine the position of the company.

Types of data which helped to prepare this report

1. First type is the primary data which was collected personally to be used and studied to

prepare and reach the objectives already mentioned.

2. The secondary data which was already prepared so these data was only used to reach the

aims and objectives of this project. These data has been collected from the marketing

reports of the company.

How the data was collected

The sources of collecting the primary data were through interviews and observation, however the

secondary one was collected from the already available data to the employees of the company and

some of which was published.

A) Personal Interview

Personal Interview method requires a person known as the interviewer asking questions generally

in a face to face contact to the other person or persons.

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In some cases, we had the chance to ask my questions personally from the Head of

Marketing department regarding the information we needed.

1. The beginning and history of the GMP Solutions Pvt Ltd.

2. Numbers of staff working for different departments.

3. The mission & vision of the company.

4. Areas of operations.

5. Other company related information.

B) Printed and Digital Sources

The secondary data we collected was through the study of the various brochures and records

already existed in the company in form of printed files or digital files reserved in the company for

further references. We had chosen these files because of the reliability and suitability of these

information which we were also sure about the accuracy of them.

C) Questionnaires

A form containing a set of questions, especially one addressed to a statistically significant number

of subjects as a way of gathering information for a survey. These questionnaires were distributed to

the staff of the organisation as well as its dealers for the purpose of fulfilling the above mentioned

objectives.

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Books

Retail Management; A Strategic Approach by Barry Berman, Joel R Evans and Mini Mathur

This book was helpful to learn the various meanings and about retail network for completing our objectives.

About the Author - Barry Berman

Barry Berman, PhD is the Walter H. ‘Bud’ Miller Distinguished Professor of Business at Hofstra University’s Zarb School of business Barry's authored or co-authored books on Retail Management: A Strategic Approach; Competing in Tough Times; Marketing in the 21st Century; and Marketing Channels. Barry is President of the American Collegiate Retailing Association . Barry has published in the Journal of Marketing Education, the International Journal of Retail and Distribution Management, and Industrial Marketing Management, on subjects that include customer loyalty program, product proliferation, customer delight, mass customization, yield management pricing, and data mining.

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Retail Management ( Oxford publications) by Chetan Bajaj, RajnishTuli and NidhiVarmaSrivastava

This book was helpful in knowing about the enhancement of retail network and customer base.

About the author Dr. Chetan Bajaj

Chetan Bajaj’s a fellow of the Indian Institute of Management Bangalore. He has over 30 years of experience in academia, industry, and consulting, which includes key positions at PricewaterhouseCoopers and Apollo Tyres. Earlier, he was Professor, MDI, Gurgaon, and then Director, ISB&M and Jain Group of Institutions, Bengaluru

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RESEARCH METHODOLOGY

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Title

To determine the perception about various tiles quality, brand equity, price and customer service.

Title Justification

Title is self-explanatory. The study mainly deals with the quality, brand awareness, price analysis and above all customer experience about the various tile products and categories.

Objective

· To determine the awareness level of different major tile players among the architects. · To determine the customer awareness level, particularly for new users of tiles. · In depth study on the dealer network of various tiles manufacturers.

SIGNIFICANCE OF THE STUDY

Significance for the industry

This is a limited study which takes into consideration the responses of 20 architects, 25 dealers & 150 customers. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. A study like this can attempt to guide the future of the industry based on current trends.

Also the views of the architects and dealers would help in determining the future strategies of the companies and add to the betterment of end user requirement.

Significance for the researcher

To have a firsthand research experience about tiles industry. Various primary and secondary data sources would help in shaping a good notion about the industry trends and its future prospects. Also recommending measures to improve the present scenario of a company would boost up the confidence of the researcher.

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Research Design

Type of Research

Exploratory and descriptive experimental research

Size of sample

10 Architect or Contractors, 20 dealers or Retailers and 15 customers.

Area of study

Twin Cities: Hyderabad and Secunderabad

Sampling procedure

Convenience Sampling

Method

The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were conducted to come to the conclusion.

The method which was adopted by me for this project is to do a market survey and then on the basis of that sampling was done, and data was collected with the help of questionnaire.

The main objectives of the project were:-

To explore the new markets for Lorenzo Vitrified Tiles. To enhance the sale of Lorenzo for the existing dealers. To take the feedback of channel partners and influencers regarding Lorenzo and its products. To know the difficulties which are coming in front of Lorenzo and the solutions for them? To know about the competitors and about their policies.

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There are certain terms used to achieve these objectives as Survey, Sampling, Data, and Questionnaire etc. All the terms are discussed below

SURVEY

Meaning of Survey

Survey is a fact finding study. It is a method of research which involves collection of data directly from a population or a sample at a particular time. It requires expert and imaginative planning, careful analysis, and rational interpretations of the findings. Data is collected by questionnaire. The analysis of data is made by using simple statistical techniques depending upon the objectives of the study.

Characteristics of Survey Method

It is always conducted in a natural setting. It is a field study. It covers a very large population. It seeks responses directly from the respondents.

Purpose of Surveys

Surveys concerned with cause and effect relationship, which can be useful for making predictions.

A survey is designed to make comparison of demographic groups. Many surveys aimed to explain certain phenomena such as, to test the hypothesis, to

test the causal relationship between variables and to assess the influencers or various factors on a given phenomenon.

Advantages of Surveys

Surveys are useful instruments for very fine theories. Survey method facilitates drawing generalization about large population. Survey method is flexible.

Disadvantages of Surveys

Survey methods are very expensive in terms of time and cost. A sample survey is subject of sampling error. Survey method is also not well suited to studies of historical developments.

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SAMPLING

Meaning of Sampling

The process of drawing a sample from large population is called sampling.It is the unit of study. A part of population is known as a sample. The main aim of sampling is to make an inference about an unknown parameter from a measurable sample statistic. The second aim of sampling is to test a statistical hypothesis relating to population. A sample is drawn and the data from the sample informants are analyzed and on the basis of the result the hypothesis may be accepted or rejected.

Characteristics of sampling

A sample must be representative of the population. The validity of sample depends upon its accuracy and precision.

A sample must be adequate in size; in order to be reliable.

A sample must yield precise estimate. Precision is measured by the standard deviation.

A sample must be accurate (Unbiased) which exactly represent the population.

Advantages of Sampling

Sampling reduces the time and cost of research studied.

Sampling saves labour.

Sampling provides much quicker results.

Disadvantages of Sampling

Sampling demands a thorough knowledge of sampling methods, procedure, and an exercise of greater care, otherwise the results obtain may be incorrect or misleading.

A complicated sampling plan may require more labour for coverage of the area.

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Sampling Units

(1) Retailers of Tiles Shops.(2) Architects, Builders and Interior Designers.

Sampling Size

It tells you about the number of people surveyed. In my sampling there were 130 Retailers and 10 Architects for doing the Survey. Project must be according to this sample size.

DATA

Meaning of Data Collection

The search for answers of research question is called collection of data. Data are facts and other relevant material of past and present, serving as basis for study and analysis.

Importance of Data

The data serve as the basis or raw material for analysis. Without an analysis of factual data, no specific inferences can be drawn on the questions. Under study; inferences based on imagination or guess work cannot provide correct answers to research questions. The relevance, adequacy, and reliability of data determine the quality of the findings of study. Data from the basis for testing the hypothesis formulated the study. Data also provide the facts and figure require for constructing measurement scales and tables, which are analysis statistical techniques. Interference on the results of statistical analysis and tests of significance provide the answers of research questions. Thus, the scientific process of measurement, analysis, testing, and inference depends on the availability of the relevant data and their accuracy.

Sources of Data

Data are collected from primary sources are original sources from which the researcher directly collected data; that have not been previously collected. Primary data are firsthand information collected through various methods. One of the methods is questionnaire. Primary data are used as the sole source of information for a research project. Primary data are directly collected by the researcher from their original sources. In this case the researcher can collect the require data precisely according to his research needs. He can collect them when he wants them and in that form he needs them. But the collection of primary data is costly and time consuming.

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Advantages of Primary Data

The most important advantage of primary data is that the available data meet our specific needs.

The available data gives as accurate as desired. Primary data are up-to-date and become obsolete. Primary data gives specific results.

Disadvantages of Data

Primary data are not available or secured quickly and cheaply. Wider geographical area and longer reference period may not be covered with less

cost and time. They are not readymade and readily available.

QUESTIONNAIRE

The tool is referred as a questionnaire when it is sent to a respondent for completion and return.

Characteristics of Questionnaire

o It asks for obtain all the information required for achieving the research objectives.o It contains questions relevant to the study and does not include any irrelevant and

unimportant questions.o It contains questions that can be answered as quickly and easily as possible.o It avoids unwarranted presumptions about the respondents.o It does not contain questions which are beyond the memory span of the respondents.

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CHAPTER 3TO IDENTIFY RETAIL NETWORK

AND ENHANCE CUSTOMER BASE.

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TO IDENTIFY RETAIL NETWORK AND ENHANCE CUSTOMER BASE.

Identification Of Retail Network Model Is Primarily Based On

Location Facilities Merchandise Price Operations Brand Competition

Over the weeks we have identified these 7 critical success factors that best-of-practice retailers possess. Our retail networking plan is designed to address all 7 of the success factors that make Lorenzo vitrified tiles value chain.This provides info, prediction, perception and explanation.

The data was collected using survey forms (questionnaires). This was designed to capture key info about the above mentioned 7 points.

This was also done through observation.

LOCATION FACILITYMERCHAN

-DISEPRICE

OPERAT-IONS

BRANDCOMPETI

-TION

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WAYS TO ENHANCE CUSTOMER BASE

Enhancing the customer base constitutes these key tools

KNOWING TARGET CUSTOMERS

Knowing just the target for business will put one step ahead of competitors. Before this a few questions need to be asked

1. Who is the ideal customer?2. What will make their lives better or more efficient?3. What makes them tick/approve?

By answering these questions we were able to acquire new clients or customers.

FORMULATION OF NETWORK We socialized in the industry events engaging new people and circulating cards among them.

INDUSTRY RESEARCHWe had to understand the latest trends in the area of vitrified tiles

1. Who are the leaders, movers and shakers?2. What has changed in the past few years?3. What is coming up in the area of tiles?

OFFER INCENTIVES

Customers like discounts and free stuff, so this was used to tap new customers

REFERRALS

The best clients were those who were referred through existing customers and clients. They sold high value; this helped to gain new potential customer.

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A survey was conducted to explain the objective clearly.

Do you deal with Lorenzo Vitrified Tiles?

This question is for the calculation or estimation of the exact dealers present in the market of Lorenzo tiles, It also include the number of Retailers present in the market.In Hyderabad there are seven main dealers of Lorenzo and also many Retailers are present.

In Secunderabad there are 2 main dealers of Lorenzo which are serving the whole market.

What are your suggestions for better acceptance of Lorenzo products?

Again it was the question mainly for its dealers because only they can give the right suggestion for Lorenzo. They give ranks to the options of this question. They are as follows: -

1st Rank - More designs and Colors- According to the dealers, the range of Lorenzo tiles is very limited. There should be more designs and colors. It is the habit of customers that they want to see more and more designs and colors in tiles. So if there will be good collection of designs and colors then there will be better acceptance of Lorenzo tiles.

2nd Rank – Competitive Prices- Dealers said that there should becompetitive prices of Lorenzo tiles. As each and every shopkeeper is selling local tiles; which are very cheap. So if Lorenzo do some price cutting then some more customers can come in its range and it can get more acceptance.

3rd Rank – Proper Marketing- All the dealers give 3rdrank to the propermarketing. There is a need of proper marketing for the running products. Marketing is the lifeline of any company. As Lorenzo is working for more than 20 years but still it is lacking behind in the field of Marketing.It is marketing; due to which, Kajaria is at no. 1 position. So Lorenzo has to spend more on marketing on regular basis.

4th Rank – Quality Improvement: - The strength of Lorenzo tiles is its quality. Due to its quality policy, Lorenzo never negotiate with prices. All the dealers are satisfied with its existing quality. So if Lorenzo improves some more quality then it will give more advantage and greater acceptance to Lorenzo tiles

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CHAPTER 4

TO DETERMINE THE MARKET SIZE

TO DETERMINE THE MARKET SIZE

To determine the market size the following steps need to be considered.

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1. DEFINING TARGET MARKET

It is important to understand target market and in order to serve them, otherwise a lot of time and money would be wasted. Market sizing was easier when we knew the exact target group. Our financial planner decided the target group to be huge building firms and also dealers.

2. DETERMINING THE NEEDS OF TARGET MARKET

Here hypothesis was formulated asking the benefits of the products or services that are offered to the customers. What problem does the product solve? To this question we could say that the builders could use large size tiles in order to cover huge spaces in less time.

3. IDENTIFY THE INFORMATION TO ESTIMATE THE SIZE OF MARKET

The identification was done by segregating Builders according to the project Dealers on their capability of paying back on time and also the proximity of projects

to the dealer’s location.

4. IDENTIFY SOURCES TO OBTAIN INFORMATION

Published statistics library and online research Primary research (surveys, focus groups etc.)

5. COLLECT DATA

As the sources of data had been identified it was time to extract data. It is important to understand whether data sources were sufficient and had useful data or whether they provide insufficient data at which point we seemed out to additional sources.

6. ANALYSE THE DATA

The data which had been collected was analyzed by the financial planner as well which will landed us in the next step.

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7. DERIVED AND APPLIED MARKET ESTIMATE

As the data had been complied and analyzed we had to now estimate the market size which was done completely by the financial planner, we then moved on to applying the estimates. Though it was tedious it added value to the planning and marketing efforts which made time, money and effort invested worthwhile. A survey was conducted to explain the objective clearly.

Who is your end Customers?

In the answer, the respondents are mainly selling their tiles to four persons. The table is as follows

TABLE

END CUSTOMERS FREQUENCY PERCENTAGE (%)

Government 8 8

Individuals 100 100

Builders 44 44

Architects 18 18

Engineers 5 5

The Graph has been explained for the above table.

GRAPH

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0

10

20

30

40

50

60

70

80

90

100

8

100

44

18

5

PERCENTAGE

INTERPRETATION

As every dealer (100%) is selling to individuals is 44% respondents are supplying tiles to the Builders also. And only 8% dealers are supplying their tiles to Govt. Departments also. They also supply to the Architects and Engineers.

From whom do you procure tiles?

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Respondents do the purchase either from the company or from its authorized dealer. Datasheet is as follows:-

TABLE

PROCUREMENT FREQUENCY PERCENTAGE (%)

Company 70 70

Authorized dealer 30 30

Total 100 100

The Graph has been explained for the above Table

GRAPH

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Company Authorized dealer

0

10

20

30

40

50

60

70

PERCENTAGE

INTERPRETATION

As 70% respondents used to purchase tiles directly from company or its manufacturing plant. Only 30% respondent’s purchase tiles from the authorized dealer. So the trend says that dealers prefer to purchase tiles directly from the company.

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CHAPTER 5TO ENHANCE THE PRODUCT

REACH TO UNTAPPED AREAS IN THE TWIN CITIES BY DOING A

SURVEY.

TO ENHANCE THE PRODUCT REACH TO UNTAPPED AREAS IN THE TWIN CITIES BY DOING A SURVEY.

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The Questionnaires were prepared for both the retailers and Architects. The data interpretation and data analysis is based on the information collected from the Questionnaires.

DATA ANALYSIS OF RETAILERS

What products do you sell at your shop?As the respondents touched are surely selling tiles. Along with tiles they are selling some more products and the list of that is given below

TABLE

PRODUCTS FREQUENCY PERCENTAGE (%)

Tiles 100 100

Sanitary Wares 92 92

Bathroom Fittings 64 64

Marbles 19 19

Hardware 13 13

Paints 16 16

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GRAPH

Tiles Sanitary Wares Bathroom Marbles Hardwares Paints0

10

20

30

40

50

60

70

80

90

100100

92

64

19

1316

INTERPRETATION

Here in the chart it is clearly showing that 92% dealers are selling sanitary along with tiles. Bathroom fitting is an expensive thing ad selling by 64% respondents. In few quantity marble, hardware and paints are also selling by respondents.

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Since how long are you into Business?

For this question I got very good response and most of dealers are working from 10 years. The data interpretation for this question is as following

TABLE

TIME PERIOD FREQUENCY PERCENTAGE (%)

Below 10 years 52 52

10-20 years 31 31

20-30 years 8 8

30 years and above 9 9

Total 100 100

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Below 10 Years

10-20 Years 20-30 Years 30 and Above0

10

20

30

40

50

6052

31

8 9

GRAPH

PERCENTAGE

INTERPRETATION

As by seeing this column chart we can say that the main strength of today’s market is the shops of below 10 years old. These are the persons who are interested to do work with Lorenzo. These are the respondents who really want to increase their business and these are respondents can also increase business of Lorenzo.

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What is your Monthly off take of tiles?This question was to know the strength of respondents. How much tiles they are selling monthly? The Table for it is as following:-

TABLE

MONTHLY TILES TURN OVER FREQUENCY PERCENTAGE

Below 10 Lakhs 82 82

10-20 lakhs 12 12

20 lakhs and Above 6 6

Total 100 100

GRAPH

Below 10

Lakhs10-20 lakhs

20 lakhs and Above

0

10

20

30

40

50

60

70

80

90

PERCENT...

INTERPRETATION

There were 82% respondents whose monthly tiles selling are below 10 Lakhs. By knowing their turn over capacity we can think about further planning. And only 12% are between 10-20 Lakhs.

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What are the types of tiles that you deal in?In the answer of this question all the dealers are working in only Ceramic and Vitrified tiles. The sizes like 8x12, 12x12, 10x13, 12x18 and 10x16 which comes only in Ceramic. While 24x24, 36x36, 24x36 etc. are the bigger sizes and called as Vitrified tiles. Vitrified tiles are mainly floor tiles.So there is each and every retailers selling Ceramic tiles and approx. 87% are selling Vitrified tiles.

What are the tile companies that deal with?For the answer of this question there were dealers of many companies. The table for this as:

TABLE

COMPANIES FREQUENCY PERCENTAGE (%)

Lorenzo 12 12

Kajaria 9 9

Somany 13 13

Bell 4 4

Others 90 90

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The Graph for this table has been explained further.

LorenzoKajaria

SomanyBell

Others

0

10

20

30

40

50

60

70

80

90

12

9 13

4

90

GRAPH

INTERPRETATION

As there are only 12% respondents are working with Lorenzo from the places visited by us. Percentage of Somany is 13% and for Kajaria’s 9%. As a dealer used to sell local tiles so there is very strong presence of Johnson, Orient and Euro as branded tiles and local tiles there is strong presence of Varmora.

From whom do you procure tiles?

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Respondents do the purchase either from the company or from its authorized dealer. Datasheet is as follows:-

TABLE

PROCUREMENT FREQUENCY PERCENTAGE (%)

Company 70 70

Authorized dealer 30 30

Total 100 100

The Graph has been explained for the above Table

GRAPH

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Company Authorized dealer

0

10

20

30

40

50

60

70

PERCENTAGE

INTERPRETATION

As 70% respondents used to purchase tiles directly from company or its manufacturing plant. Only 30% respondent’s purchase tiles from the authorized dealer. So the trend says that dealers prefer to purchase tiles directly from the company.

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What is your most preferred tiles size?

As every dealer is selling wall and floor tiles so there is also various sizes in both tiles. The list of preferred sizes is as follows:-

Table

WALL TILES SIZE FREQUENCY PERCENTAGE (%)

8x12 100 100

10x13 63 63

12x18 31 31

10x16 20 20

The Graph for the following above table is been explained in the Graphic Format.

GRAPH

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8x12 10x13 12x18 10x160

10

20

30

40

50

60

70

80

90

100

100

63

31

20

PERCENTAGE

FLOOR TILES SIZE FREQUENCY PERCENTAGE (%)

24x24 86 86

12x12 70 70

16x16 43 43

24x36 15 15

GRAPH

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24x24 12x12 16x16 24x360

10

20

30

40

50

60

70

80

90 86

70

43

4.5

PERCENTAGE

INTERPRETATION

So according to this column chart every dealer is selling 8x12 size in wall tiles. Because customers prefer this size. 10x13 is selling by 63% and 12x18 is by 31%. In the floor tiles, Vitrified tiles in 24x24 sizes are selling by 86% respondents. While 12x12 is selling by 70% dealers. 16x16 tiles were sold by 43% respondents. So, 8x12 and 24x24 tiles sizes are main strength for a dealer.

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Are the customers conscious about the brand of tiles?

In the answer of this question I got mixed response. As some customers prefer branded tiles while others like local tiles. So the Datasheet is as follows:-

Table

CONSCIOUS FOR BRAND FREQUENCY PERCENTAGE (%)

Yes 22 22

No 78 78

Total 100 100

The representation for the above table is been explained in the Pie chart Format.

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PIE CHART

22%

78 %

CONSCIOUS FOR BRAND

YES NO

INTERPRETATION

The response of the dealers was the customers don’t see on the quality. Only 22% respondents said that their customers prefer quality tiles. But 78% said that customers have no meaning with quality. 62% of 78% respondents said that their customers see both price and quality and rest 38% of 78% said that their customer see only prices and want least prices.

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How would you rank the tiles companies?

As there were five companies in the Questionnaire to give ranks. So the table is as follows:-

TABLE

InterpretationAs the table is clearly showing the ranks of different tiles

companies. In quality, Bell is at no.2 position and Kajaria is at no.1. Talking about prices, Kajaria

has the most expensive tiles while Bell is at no.2 and Lorenzo is having 3rd rank.

Kajaria tiles are most demanded and also having largest

COMPANIES

RANKS

QUALITY PRICE DEMAND RANGE SERVICES

Orient 2 3 3 3 2

Kajaria 1 2 1 1 2

Lorenzo 2 3 2 1 1

Bell 2 2 3 4 3

Johnson 3 3 4 2 3

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range. Lorenzo tiles are on 2nd rank in demand while Johnson’s range of tiles is 2nd

largest. Bell is at 4th position for range of tiles.

Services are served by Bell with having 3st position. Lorenzo is at 2nd and Kajaria is at 2rd rank. So Lorenzo satisfies its dealers by its services.

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CHAPTER 6LIMITATIONS OF THE

STUDY

LIMITATIONS OF THE STUDY

Primary data are not available or secured quickly and safely.

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They are not ready made or readily available.

Wider geographical area could not be covered in the limited time period.

A complicated sampling plan takes more time for coverage of area.

Survey method was very costly.

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CHAPTER 7CONCLUSION

CONCLUSIONIn conclusion of the project we would say that Lorenzo vitrified tiles has good brand name in the field of vitrified tiles. It is positioned as a special brand and carries a good report with it.

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Lorenzo was the initiators of vitrified tiles in the industry. It is now necessary for them to focus on their new products.

Foe formulating new policies the company has to take a feedback from the dealers. Research surveys are one of the best ways to find this out. This also paves way for easier communication with the dealers and the other retailers. This also helps in finding out what is currently happening in the market. These surveys would make the dealers think that concern is taken oftheir demands. This is thus important as these are the persons who sell the product to the customers.

As the questionnaires were given and collected which paved way to the satisfaction of the dealers and influencers there were good enquires.

SWOT ANALYSIS OF LORENZOSTRENGTH WEAKNESS

-Widespread distribution network with

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dominance in southern market. -Lack of Marketing and Promotional tools

-World class quality Vitrified tiles. -No proper feedback and communicationchannel for the existing dealers.

- Packaging problem faced by some dealers.

-Having a decent brand image . - Lack of designs and varieties in wall tiles.

-Well diversified portfolio of products in - Not inclined towards rural markets , they arefloor tiles. next big markets due to high rate of

-Exclusive floor tiles in market. urbanization.

- Weak institutional customer network.

OPPORTUNITY THREATS

-Having a quality product is great - Due to large number of players in theopportunity for the company to market is getting saturated day by day.

absorb institutional customer base .- After the acquisition with Orient its

- Untapped rural markets where difficult to satisfy the customers about theexclusive product and may be results in loss

small retailer are doing business with of market share.local tiles.

- Can open its showrooms and outlets- Hike in interest rate and inflation result inincrease in price of raw material which may

in the Northern region of India where also hurt the sale of company

other players are doing fair business

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CHAPTER 8

SUGGESTIONS RECOMMENDATIONS

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SUGGESTIONS On the basis of research conducted by using two different questionnaires, it helps in understanding the need of market and also the problem occur in distribution of tiles in the market. Overall study reflects that Lorenzo having a good marketing tactics and Brand image, but due to high competition in urban market its necessary to spread its product reach to rural market where a huge potential is lies.

1. LACK OF PROMOTIONAL PROCEDURES

After the survey of towns in the vicinity of Rajasthan, most of the dealer responded that no representative from Lorenzo Vitrified have come here till now, although they were aware of many competitive brands like kajaria, somany, orient etc. some dealers were partially aware that

Lorenzo is a high quality brand but they didn’t have the complete and proper information pertaining to company’s product range. So the company should start various promotional schemes for enhancing the sale of its products.

Lorenzo Vitrified Tiles can adopt following tools:

Online marketing using social networking sites need to create just a page of Bell ceramics and all the employee and retailers can join that page.

Recruit a team of trained salesman specially for distant areas and towns Print media advertisement during the high growth of industry.

Attractive and informative catalogue of all the products.

Any surprise gift or schemes of dealers after achieving certain target.

2. PACKAGING PROCEDURES

Lorenzo is having different packaging system or different box sizes which may be an uniqueness for company but after the response of dealers that other brands are giving packing of 10 sq. feet and where Bell gives it in 14 sq. feet or 15 sq. feet.

It’s difficult to convince a customer about the large packaging and its related price. Customer refuse to take it just due to print of high price.

Also there is risk of brokerage in the large boxes.

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Most dealers feel that packaging should be of 10 feet instead of 15 feet. The reason behind this is only the positioning or the perception in the minds of the customer for low price. For example- competitor is giving one box of tile at Rs.170 having 10 feet packaging and same box of tile offered by us is at Rs.210 per box having 15 feet packaging. Rates are same but customers hesitate to pay for 15 feet packaging.

The company’s strength is its quality policy. So Lorenzo has to maintain it and tryto improve it constantly.

As from the last many years Bell is selling very few designs in wall tiles , market or existing dealers demand more varieties in Wall tiles

Lorenzo Wall tiles prices are quiet close to floor tiles. So there should be some lesser prices of wall tiles. As every dealer is selling local tiles of Morbi so Lorenzo try to give some economic prices of floor tiles also.

Lorenzo has to increase its product range and designs. No company can sustain for a long time without increasing its range and designs. So Lorenzo Vitrified Tiles will try to do good research on designs.

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RECOMMENDATIONS FOR MARKETING AND PROMOTION TACTICS OF LORENZO

o Lorenzoshould adopt the widest distribution network model to deliver products to the end user in quickest and most effective way. It would also accelerate the sales. It may include company owned showrooms, franchises, multi-product dealers and sub-dealers.

o Distribution network should be clearly segregated towards specific product segments.

o May introduce three dimensional catalogue visual experiences to its customers and also give customer a chance to design product in their own way of choice (customized design specification).

o Lorenzo should set up exclusive showrooms for special products instead of keeping with the regular range.

o As example, the upcoming product FOREVER-A product in NON-SKID tiles segment should have an exclusive place to showcase. It would add to the exclusive ambience of the product.

o More introduction of matching wall and floor tiles.

To grow its institutional business, the Lorenzo Vitrified Tiles should organize more interactions with architects, developers and government agencies at its dealer outlets. This would serve a dual purpose: it would enable the company to acquire an insight into evolving preferences of some of the most prominent and trend- influencing architects; on the other hand, it helped the company cater to their evolving preferences

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CHAPTER 9BIBLOGRAPHY

77

BIBLIOGRAPHY

TEXTBOOKS

Retail Management; A Strategic Approach by Barry Berman, Joel R Evans and Mini Mathur

Retail Management ( Oxford publications) by Chetan Bajaj, RajnishTuli and NidhiVarmaSrivastava

WEBSITES

1. www.Google.com

2. www.lorenzovitrifiedtiles.com

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CHAPTER 10

ANNEXURES AND QUESTIONAIRES

79

QUESTIONNAIRE FOR DEALERS

NAME:____________________________________________________

ADDRESS:__________________________________________________

__________________________________________________

CONTACT NUMBER: (Landline) __________________ (Mobile)__________________

Email Id: _____________________________________________

1. WHAT PRODUCTS DO YOU SELL FROM YOUR SHOW ROOM?

a) Sanitary wares b) Hardware

c) Bathroom fittings d) Cement

e) Tiles f) Paints

g) Marbles h) Steel

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i) Others ________________________________

81

___________

2. SINCE HOW LONG ARE YOU INTO THIS BUSINESS? __________

82

__

3. WHICH ARE THE BRANDS THAT YOU DEAL WITH IN TILES?

a) ____________

83

________b) ___________________________

c) ____________________d) ________________

84

___________

e) ____________________f) ___________________________

4. WHO ARE YOU

85

R END CUSTOMERS?

a) Government b) Individuals

c) Builders

d) Contractors

e) En

86

gineers/Architects

e) Others

5. How you get updated about the products you deal with?

a) Mailers

87

c) Email

e) Others (Please Specify) ___________________________

6. DO

88

YOU DEAL WITH LORENZO VITRIFIED TILES PVT. LTD?

YesNo

IF YES,

89

a) SINCE HOW LONG _______________________

b) AVER

90

AGE OFFTAKE MONTHLY(in Boxes):

Floor Tiles Boxes Wall Tiles Boxes

c) ARE YOU SATISFIED WITH:

91

92

ii) Personal visit Yes No

iii) Availability of material Yes No

7. Are you aware about the new series of wall & floor tiles introduced by Lorenzo Vitrified Tiles Pvt. Limited?

Yes No

8. (A) If yes, which are the products you are aware about:

i) Promotion Yes No

Product Size Design Names

20X20

16x16

12x12

8x12

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(B)If yes, through which source you come to know about the new introductions?

a) Word of mouth b) Company Representative

d) Other source (Please mention the reference) ____________________

9. Are you aware about FOREVER TILES, recently launched floor tiles?

Yes No

10.If yes, through which source you come to know about the new introductions?

a) a)Word of mouth b) Company Representative

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11. Please Give your valuable feedback on latest introduced designs from Lorenzo:

8X12

12. Would you like

95

to get more updates from Lorenzo Vitrified Limited?

Yes No

13. WHAT IS YOUR MOST PREFERRED TILES’ SIZE?

WALL FLOOR8”x12” 12”x12”10”x13” 16”x16”

12”x18” 20”x20”12”x24” 24”x24”Others: Others

96

14. ARE THE CUSTOMERS CONSCIOUS ABOUT THE BRAND OF TILES?

a) Yes

No

15. HOW WOULD Y

97

OU RANK THE FOLLOWING COMPANIES? (Please give r

98

ank from 1 to 5, 1 for most preferred and 5 for le

99

astPreferred)

BrandServices

QualityPrice

Demand

Range

Lorenzo

Orient

Bell

Kajaria

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16. WHAT ARE YOUR SUGGESTIONS FOR BETTER ACCEPTANCE OF LORENZOPRODUCTS?

a) Quality Improvement b) More Designs and colors

c) Competitive Price

101

d) more sizes

e) Others__________________________________________

102

For those who does not deal with Lorenzo Vitrified Tiles Pvt. Limited.

103

17. Are you aware about Lorenzo Vitrified Tiles Pvt. Limited?

YesNo

18.If Yes, How you come to know about Lorenz

104

o Vitrified Tiles Pvt.?

A) ___________________ B) _______________________

C) ____________

105

_______ D) _______________________

19. Would you like to deal with Lorenzo Vitrified tiles?

YesNo

106

20. YOUR VALUED COMMENTS

107

SIGNATURE & SEAL OF THE RESPONDENT:_____________________________

Date: ________________

108