SUMMER TRAINING REPORT

On
“MARKET STUDY ON CONSUMER BEHAVIOUR AND SATISFACTION
IN TILES INDUSTRY”
Submitted to:-
MAHARSHI DAYANAND UNIVERSITY ROHTAK
For
The partial fulfillment of the award of degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
(Session: 2009-11)
SUBMITEDTO:-
SUBMITTEDBY:-
MR. S.B. DUBEY
Rajeev Kumar {Faculty of marketing}
Reg. no._

INSTITUTE OF MANAGEMENT & TECHNOLOGY

(Approved by AICTE, New Delhi & affiliated to M.D. University Rohtak)
TIGAON ROAD NEAR SAI DHAM
FARIDABAD-122002

1
 DECLARATION

I Rajeev Kumar roll No. Class: MBA 3rd Semester of the

Institute of Management & Technology, Faridabad hereby declare that the

Summer Training Report entitled” market study on consumer behavior

and satisfaction in tiles industry” is an original work and the same has

not been submitted to any other institute for award of any other degree. A

seminar presentation of the Training Report was made on ……………. and the

suggestions as approved by the faculty were duly incorporated.

Presentation Incharge

Candidate Signature

S.B. Dubey

Rajeev Kumar

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 Forwarded by

Director/principal of the institute

PREFACE:

Progress is a continuous process. It is relative and absolute. We can’t stop a

certain destination and declare that target has been achieved and we need

not go further. The summer training program is designed to give the future

managers feel of the corporate happenings and work culture. These real life

situations are Entirely different from the stimulated exercise enacted in an

artificial environment inside the classroom and it is precisely because of this

reason that this summer training program is designed, so that the manager

of tomorrow not feel ill in the case when the time comes to shoulder

responsibilities. The summer training is a bridge between the institution and

organization. Summer training program made us to understand how

theoretical knowledge will be applied in the practical field.

It was exactly in this context that I was privileged to join kajaria tiles pvt Ltd.

on the 10thof May 2010, as a summer trainee.kajaria tiles is known not only

for its professional management, but also for its enlightened and progressive

approach towards employee welfare and betterment of the society. The

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experience that I have gathered over the past two months has certainly

provided me with an orientation, which, I believe, will help me shoulder any

assignment successfully in future. During this period the report which I made

was done after a deep, comprehensive and full-fledged study and is based

on my original research and investigation.

ACKNOWLEDGEMENT

I am thankful to kajaria tiles Co. Ltd. for providing me an opportunity to

undertake project in their esteemed organization. I would like to thank my

Trainer Mr. Hitesh restage marketing Manager. Kajaria tiles pvt. Ltd.

Delhi who helped me throughout the project and also encouraged me to take

this project in future course for my career.

Also, I would like to thank Dr. Hariom Sharma, H.O.D MBA for being the

anchor of my internship, and showing me the path on which I have to walk

on. I deeply appreciate every personnel in the company who has provided

his/her tutelage to me in completing my internship at kajaria tiles pvt ltd.

Last but not the least I am also thankful to all the staff members of kajaria

tiles pvt, ltd. to make my project successful and helping me out by giving me

all possible solutions for everything I asked.

RAJEEV KUMAR

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 TABLE OF CONTENTS
Sr.N PRTICULARS Page
o No.
1 PREFACE 3
2 ACKNOWLEDGEMENT 4
3 CHAPTER 1 INTRODUCTION
 Significance of the studies 6
 Conceptualization 7-12

 Focus of the study 13

 Objectives of the study 14

 Review of Literature
4 CHAPTER 2 RESEARCH METHODOLOGY
 Company Profile 15-35

 Research Design 36

 Sample size & Sampling Technique 36-41

42-43
 Data source
44
 Factors Affecting Research Design

5 CHAPTER 3 MICRO ANALYSIS 42-49

• Data Analysis & Interpretation

5
 6 CHAPTER 4 FINDINGS & RECOMMENDATIONS, 50-55
CONCLUSIONS
7 CHAPTER 5 BIBLIOGRAPHY 58-59

8 QUESTIONNAIRE 60-64

INTRODUCTION:

SIGNIFICANCE OF STUDY

This is a limited study which takes into consideration the responses of 30

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.

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 Significance of the study:

I 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 summer training.

CONCEPTULIZATION:

CONSUMER BEHAVIOUR & SATISFACTION:

Before getting into details of consumer behavior & satisfaction, one must go

through certain basic terminologies In general terms both consumer and

customer are considered the same but they are quite different. The term

customer is somewhat different from the term consumer. The term

customer is used to refer to someone who purchases goods and services

from a particular store or company. Thus a customer is defined in terms of a

specific term while a consumer is not Consumer may be referred to any one

engaged in evaluating, acquiring, using or disposing of goods and services

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which he expects will satisfy his needs. So ultimately consumers are that

individual who consumers or uses a product, which may or may not be

purchased by him. So after getting into these terms we need to get into the

details of “consumer behavior & satisfaction”. Consumer behavior

refers to how a consumer behaves or acts or reacts in making a purchase of

goods and services of his choice in different situations. The term consumer

behavior can be defined as, the behavior that consumers display in

searching for purchasing, using, evaluating and disposing of products,

services and ideas which they expect will satisfy their needs. The study of

consumer behavior not only focuses on how and why consumers make

buying decisions, but also focuses on the uses which consumers make of the

goods they buy and their evaluation of these goods after use. If the goods

after use don’t satisfy the consumers, they may feel dissatisfied perhaps

because post-purchase services are not up to their satisfaction, and thus,

this may influence their purchase of the goods and it may also influence the

buying decision of many others who might come in contact with them.

The detailed study of consumer behavior or consumer preferences

focuses on-

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  Who buys products or services?

 How do they buy products or services?

 Where do they buy them?

 How often do they buy them?

 When do they buy them?

 Why do they buy them?

 How often do they use them?

These questions will help in understanding the factors that influence the

decision making process of the consumers. The buyer’s decision making the

process includes the following:-

1. Problem recognition

2. Information search

3. Evaluation of alternatives

4. Purchase decision

5. Post purchase behavior

1. Problem recognition:- first and the foremost step are to identify the

problem i.e. what actually one wants with regard to the product.

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2. Information search: - second step is to search the relevant

information regarding the product which one wants.

3. Evaluation of alternatives:- third step is to evaluate the collected

information i.e. analyze the information.

4. Purchase decision: - in forth step the product is actually purchased.

5. Post purchase behavior:- in fifth step the consumer actually reacts

against the quality, quantity etc received after purchasing the product

i.e. in this stage he reacts on the basis of his getting satisfied after the

purchase of the product.

The buyer’s decision includes the following:-

 Product choice

 Brand choice

 Availability

 Taste choice

 Promotional schemes

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 Purchase amount

Consumer perception:

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How the buyers buy form their preference? Their preferences are

influenced by their past buying experience, friend’s and associate’s

advice, and the marketer’s and competitor’s information and promises.

Though customer preference is a very qualitative term and it is very

difficult to measure. In this study an effort has been made to measure the

customer preference level. The customer is king. Finally 15 years after the

liberalization of India’s economy began. The market place has, suddenly

become tightening competitive. Not only have new players stormed into

the country, there are more brands available than ever before in every

segment of every market. This demands more intimate understanding of

the customer by the “Smart Companies” The dissertation is concerned

with the consumer preferences & satisfaction. Another objective of the

survey is to analyze the brand awareness and brand preference of

customers.

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 Customer satisfaction;

“Satisfaction is a person’s feelings of pleasure or disappointment resulting

from comparing a product’s perceived performance in relation to his or

her expectation. As the definition makes it clear, satisfaction is a function

of perceived performance and expectations. If the performance is falls

short of the expectations. If the performance falls short of the

expectations of the customer, the customer is dissatisfied. If the

performance exceeds the expectations, the customer is highly satisfied or

delighted. Many companies are aiming for high satisfaction because

customers who are just satisfied still find it easy to switch, when a better

offer comes along. Those who are highly satisfied are much less ready to

switch. High satisfaction delight creates an emotional affinity with the

brain, not just a rational preference. The result is high customer loyalty. In

this highly competitive world customers plays a very important role. Thus

if a company wants to survive then it should look forward to the

determinants of the customers satisfaction. Though it is a very subjective

issue that differs from individual to individual yet, identifying some basic

parameters of customer satisfaction is important. Satisfaction is a

person’s feeling of pleasure and disappointment resulting from comparing

a product’s perceived performance in relation to his or her expectations.

It is only the customer delights that marketer aim for.

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 FOCUS OF THE STUDY

The scope of the study covers the consumer behavior & satisfaction that is

influenced by different services of the companies. The study covers the

market of Delhi & Faridabad region. The study will be beneficial for the

service providers and the consumers.

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 OBJECTIVES OF THE STUDY:

Objective is the pre-requisite of any study. All the students are carried out

with an objective in mind, which give direction to the study. As this summer

training report is related to analyze the market and study the consumer

behavior, satisfaction and preferences towards the tiles at kajaria tiles pvt.

Ltd., the various objectives of the study are:-

• To find out whether the promotional activities are able to build

awareness about the products.

• To study whether the presence of competition affect the behavior of

the customers to purchase the particular services.

• To analyze what type of new facilities customers want in the product.

• To know whether advertisements are able to create loyalty.

• To identify about marketing strategies which have affect equally to the

customers?

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 COMPANY PROFILE:

Global Tiles Industry:

There are three major regions in the world, namely, Asia, Latin America and

European Union (EU) that produce and export ceramic tiles in bulk. In 2008,

they had jointly produced more than 87% of the global output. World

production of ceramic tiles was 7565 millionsq.mt in 2008. China was the

largest producer with a total production of 2200 million sq.mt, Spain and

Italy were the 2nd and 3rd largest producers with production of 635million

sq.mt and 589million sq.mt respectively. India ranks at 5th position with

production 270 million sq.mt. Which is around 2.5% of global production?

The ratio between consumption and production has been stable at around 94

percent. Ceramic tile production has been increasing at a cumulative rate of

close to 6 per cent. Asia is the most significant region by production, as well

as consumption, accounting for more than 50 per cent of both. China is the

leading country in the production of ceramic tiles with a share of 33 per cent

at a total production of 2,200 million square meters, followed by Spain and

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Italy. Europe accounts for 30 per cent and USA accounts for 14 per cent of

the total global production of ceramic tiles. In terms of consumption the

pattern remains similar, with Asia accounting for 51 per cent, Europe for 26

per cent and USA accounting for 18 per cent of the total global ceramic tile

consumption.

Global Sanitary ware Industry:

The global sanitary ware industry is estimated to be 187 million pieces and

growing at about 7 per cent Year-to-Year. The main sanitary ware producing

countries in the world are China, Italy, Mexico, Brazil and Spain, which

together account for about 35 per cent of global production India, with a size

of 6.7 million pieces, accounts for about 3.3 per cent of global production.

Penetration of sanitary ware in India-about 30 per cent, is much lower than

even neighboring Asian countries, indicating significant growth potential for

this sector in the Indian market. The Indian sanitary ware market has been

growing at about 10 per cent a year, as compared to the global average

growth of about 7 per cent.

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 INDIAN CERAMICS INDUSTRY:

Ceramic Tiles:

India’s ceramic tile industry emerged in the 1950s. Tiles form the most

significant part of the Indian ceramics industry and consist of floor tiles (46

per cent), vitrified and porcelain tiles (12 per cent) and wall tiles (42 per

cent). The floor tiles segment is growing faster as compared to wall tiles.

Vitrified and porcelain tiles are recent entrants into the ceramic tile industry

and have increased the size of the market considerably. It is expected that

this segment will capture the bulk of the market gradually, replacing the

conventional floor and wall tiles segment. These tiles are light and have the

added advantage of being offered in designer looks as compared to mosaic

tiles, which are heavier and more expensive to transport. Both organized and

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unorganized sectors play a key role in the manufacturing of ceramic tiles in

India. The per capita consumption of ceramic tiles in India is very less as

compared to the other countries in the world. It is as low as 0.15 sq.mtr per

annum.This low per capita consumption shows the likely demand that is

going to arise in the future in India as more and more development takes

place. Ceramic Tiles are furnishing material apart from being utility or

hygiene products. Despite an overall slowdown of the economy this sector

continues to grow at a healthy 12 percent per annum. Growth of the

unorganized sector accounted for 44 percent of the total Production and the

revenue earnings from the organized sector accounted to over Rs150 crore.

India ranks 7th in terms of production in the world and the market share of

India have risen from 1.7 percent to 2.7 percent in terms of ceramic tile

production.

MARKET SIZE OF THE INDIAN CERAMIC INDUSTRY:

The Indian ceramic tile industry is estimated at US$ 0.35 billion. It comprises

of wall tiles, floor tiles and vitrified tiles. The per capita Consumption of

ceramic tiles in India is just 0.15 square meters per Annum, which is quite

low as compared to developed countries. The industry has been experiencing

increased demand, which, in recent years, has matched the installed

capacity. While capacity has also increased significantly, from 120 million

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tons in 2004, to 215 million tons in 2008, the demand has grown nearly two

and a half times in the same period, from 97 Million tons to 207 million

tones. Ceramic tiles are produced by organized, as well as unorganized

players. The share of production of organized players is around 55 per cent.

The organized sector is characterized by the existence of a few large players,

such as H. & R. Johnson, Kajaria Ceramics, Bell Ceramics, SPL, Spartech and

Murudeshwar Ceramics, OCIL and Nifco.

ORGANISED PLAYERS:

Some of the major players of Indian ceramics industry are:

Asian Granite (India) Ltd.

Euro Ceramics Pvt. Ltd.

H. & R. Johnson (India) Ltd.

Kajaria Ceramics Ltd.

NitcoTiles Pvt.Ltd.

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Orient Ceramics and Industries Ltd.

RAK Ceramics India Pvt. Ltd.

SPL Ltd.

PRESENT MARKET SHARE OF TILE PRODUCER COMPANIES IN

NORTHERN INDIA

A BRIEF DESCRIPTION OF MAJOR PLAYERS:

KAJARIA TILES:

It is the largest ceramic floor and wall tile manufacturer in the second most

populous country in the world. It is promoted by Mr. Ashok Kajaria and

Kajaria Export Limited (Group Company) in technical collaboration with

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Todagres, S.A., Spain. It commenced operation in 1988 in Sikandrabad,

(Uttar Pradesh) with an annual capacity of 1 MSM of floor tiles. It possesses

an annual installed capacity of 21 MSM across two facilities at Sikandrabad,

(Uttar Pradesh) and Galipot (Rajasthan). It has been equipped with eight

stock points, eight Kajaria World showrooms, 19 offices-cum-display centers

and 7,000+ dealers and sub-dealers on a pan-India basis. It is the most

prominent Indian ceramic tile brand with a favorable recall the largest

exporter of ceramic tiles in India. It has unmatched product offering (wall,

floor, vitrified, Spanish and Italian tiles). It has brand enhancing customers

like Unhitch, DLF, Parsvnath, Magarpatta, Sobha Developers, DSK, Mantra

Group, Prestige Group, Ansals, Hiranandani, Raheja Developers, Omaxe and

EMAAR-MGF, among others.

NITCO TILES:

A foundation laid on innovation. Since 1953.Going beyond the ordinary and

leading by example is a common tradition practiced at Nitco. No wonder, the

company is renowned and revered for its revolutionary concepts, pioneering

endeavors’ and premium products in the construction industry for over five

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decades. Today, with its rich repertoire in offering unique Floor Tiles, Mosaic,

Wall Tiles and Marble, Nitco has gone to become the most preferred name

and the ideal choice of millions of house-holds and the real estate fraternity.

An avant-garde at the core, the

Company has continued to pioneer ground breaking innovations in all its

offerings.

Ceramic Tiles, Vitrified Tiles, Pavers, Imported Marble, Engineered Marble,

Intarsiasplendours of inlay marble and Mosaic- artistic creations in mosaic

rendered in stone, ceramic and marble, for instance. Winning 13 Capelin

awards for innovation and design is the perfect testament to all of its

achievements.

SOMANY TILES:

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In the Indian tiles sector, somany has achieved a clear leadership position by

wholeheartedly adopting forward thinking and an innovative and futuristic

approach. Whether ceramic glazed tiles, vitrified tiles, sanitary ware or

porcelain floor tiles, Somany prides itself in being at the very forefront of

style and quality. From raw material imported from Italy and Spain, to the

constant endeavor to be the first to introduce new products in India, somany

have been, and will always strive to be a dynamic leader in its field. It began

as a vision of things to come, and is today a trail-blazer that others follow. In

1969 Sheri H L Somany incorporated a company called Somany Pilkington's,

which later became Somany Ceramics Ltd. It was the power of a dream and

the zeal to excel, that drove Sheri H L Somany to forge a path of unparalleled

success for this company. The dynamic leadership team in Somany not only

spans three generations of able leaders, it also brings together their

staggering breadth of experience and wisdom. With Sheri H L Somany at the

helm as Founder, Sheri Shrieking Somany as the CMD and Sheri Abhishek

Somany as the JMD, the company is heading towards an exciting phase of

expansion and growth. This core leadership team along with a large team of

highly dedicated and talented people is continuously working towards

creating more value for all stakeholders. Their commitment to excel in every

sphere and to fuel growth in the core as well as new sectors has truly

created a powerful vitality within the company, both in mind and spirit. In

1971 the very first unit of Somany started production in Kassar, Haryana.

Since then Somany has reached and surpassed many milestones – setting-up

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of second unit in 1981, buyout of all equity shares by Somany's Indian

promoters in 1994; achieving Government recognition for its R&D

Department in 1996 (a first in the tiles industry); getting ISO 9002

certification in 1998; achieving ISO 14001 for environment friendly facilities,

in 1999; ventured in retailing in 2007, joint venture with Keraben under

brand name “Synergy”, got patent for VC technology-a first ever in Indian

Ceramics industry and incorporation of HL Somany group. Somany Global

flagship retail showrooms are currently located in Delhi, Gurgaon, Ludhiana

and Mumbai, Pune and Indore. Many other retail showrooms are about to be

opened in leading centers. These showrooms cater to high-end customers

and offer imported tiles as well as exclusive Aqua ware brand sanitary ware.

A large network of Somany display centers are also spread across the

country. A wide cutting-edge array of designs and material make up the

inspiring Somany range of tiles. Somany strives to bring its customers floor,

wall, vitrified, ceramic, porcelain and innovative tiles that are the very latest

in the world. Somany prides itself in the sheer variety of design and finish,

and constantly looks to bring new and trend-setting ideas into the tile

industry. The futuristic patented VC Shield range of tiles from Somany, are

the world's most durable floor tiles. Created using the breakthrough, 'Veil

craft technology', that creates a special layer on the tiles that keep them

free from abrasion, scratches and stains, these tiles retain the original glaze

and finish for years. No wonder then, that these tiles comprehensively

outperform ordinary ceramic tiles including PEI grade 5 tiles. Venturing into

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the burgeoning sanitary ware sector, Somany has already made major in-

roads into this market. With its range of high quality products and offerings

under the brand name of Aqua ware, Somany is focusing on creating a

niche for itself in this sector, by bringing in and adopting the latest in design,

concept and technology. In the endeavor to bring the very best to

customers, we source our raw material from as far as Italy, Spain, and China

besides Rajasthan, Uttar Pradesh, Madhya Pradesh and other major centers

in the country. Somany has a production capacity of 15.7 million sq met per

annum from its Haryana and Gujarat units. It has always focused on

acquiring and leveraging the latest technologies and know-how. A

commitment to bring to life new ideas and design innovations is driven by

the huge amounts of funds invested in research and development. This has

borne fruit in the form of Somany's achievement of establishing the very first

Government Recognized In-house Research &

Development Centre, Somany has also brought in some ground-breaking

technologies into the Indian market. Their highly advanced Rotocolour

Machine has the capacity to decorate ceramic tiles with glazes, using a

serigraphic decorating system that employs silicon cylinders. This integrated

system that optimizes decoration of tiles enables any kind of random design

and also a marble effect. A truly trend-setting achievement, it has helped

Somany to set new industry benchmarks in quality and production standards

for ceramic tiles. Another exceptional technological advantage has been

achieved with Somany's new Laser Guided Vehicle system. This cutting-edge

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material transportation system has automated the movement of ceramic

materials in the production system. The Laser Guided Vehicle facilitates

optimal and accurate handling, thereby minimizing rejection of in-process

materials during the production of tiles. All of this is a result of Somany's

commitment to bring the best and the latest to its valued stakeholders and

customers in India.

ASIAN TILES:

This company is the result of the dreams of three entrepreneurs,

materialized with the grassroots of passion, experience & dynamism… With

starting a quest for excellence a decade ago, today

Asian tiles have blazed a trail in the tile industry. With humble beginning in

the field of floor tiles, today it has expanded till the horizon, covering almost

each of the aspects of the industry. Supported by vast man power along with

mind power,

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Asian Tiles possesses the strength of over 3000 business associates spread

across the nation. Asian is all set to reach the goal of supplying world class

product, through a network of 18 depots with display centers & ultra modern

plant in the ceramic zone of Sabarkantha, Gujarat, spread over an area of 2,

30,000 Sq. Mtr. and production capacity of two plants is 32300 Sq. Mtr. Per

day of tile. Asian has become India's leading wall tile manufacturer in large

format size, with the biggest size of 300 X 900 mm, where we provide wall

tiles of white body similar to

European tiles, with the promise of extremely accurate size control, to add

brightness and depth to the glaze.

H & R JOHNSONS:

H. & R. Johnson (India) Limited is India's No. 1 tile company offering a wide

range of wall and floor tile products across various segments v.i.z. Wall,

Floor, Vitrified, Exterior and Industrial. The company also has diversified

interests in sanitary ware and bathroom accessories. With a vast portfolio

comprising of 5 well-known brands in India (Johnson, Marionette, Porcelain,

and Endure & Milano) the company provides the most innovative products of

international standards that is coupled with the best of pre and after sales

service.

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 EURO CERAMICS:

Part of “Euro Group” Integral part of the Decorative industry in India.

Promoters:

Mr. Nenshi Shah: Mr. Talakshi Nandu: Mr. Kumar Shah: Mr. Paresh Shah

• Current Business Profile:

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 • Vitrified Ceramic Tiles: 79,971 MTPA.

• Aluminum Extruded Sections : 1800 MTPA

• Calcareous Tiles : 45,000 MTPA

• Sanitary ware : 11,000 MTPA

• Trading in Wall Tiles through a 100% subsidiary

• Technology:

• SACMI (For Vitrified Tiles & Sanitary ware)

• Quality focus:

• Vitrified Tiles: ISO 13006. Applied Consumer Services Inc.

• Florida, U.S.A. VJTI, Mumbai

• Manufacturing facilities : ISO 9001:2000 certified

INDUSTRY STATISTICS:

1. World production: 6900 Million sq.mt

2. India's Share: 340 Million sq.mt..

3. World ranking (in production): 5

4. Per capita consumption: 0.30 sq.mt.

5. Global Industry Growth Rate: 6%

6. Growth Rate (India Domestic

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 Market):15%

. Organized industry turnover (India): Rs 3000 crores

Glazed Wall Tile share: 40%

Glazed Floor Tile share: 46%

Unglazed Vitrified Tile

Share: 8%

Glazed Porcelain Tile Share: 6%

Unorganized Industry Turnover Rs 3500 crores

Glazed Wall Tile share: 57%

Glazed Floor Tile share: 35%

Unglazed Vitrified Tile

Share: 6%

Glazed Porcelain Tile Share: 2%

8. Investments in last 5 years: Rs 2000 crores

9. Organized sector:

Share of Production: 56%

No. of units: 16

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Revenue (excise duty): Rs 300 crores

10. Unorganized sector:

Share of Production: 44%

No. of units: 200 (Approx...) (70% based

In Gujarat region)

Revenue (excise duty): Rs 350 crores per annum or

Less

11. Job Potential: 50,000 direct

500,000 indirect

Export & Import Scenario

Apart from domestic demand, exports of ceramic tiles from India have also

been increasing. From a level of US$ 33.3 million in 2001-02, exports of

ceramic tiles from India have gone up to US$ 58.5 million in 2006-07, at a

CAGR of 12 per cent. India exports tiles to other parts of Asia, Africa and

West Europe. The other main exports of ceramic products consist of chemical

porcelain and insulators, handicraft art ware and stoneware crockery.

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Imports of tiles have gone up rapidly in recent years, to almost match the

level of exports. From around US$ 8.3 million in 2001-02, imports have gone

up to nearly US$ 55 million in 2006-07, at a CAGR of 46 per cent. Rising

imports indicate the rapid growth in domestic demand for tiles, due to boom

in real estate construction.

History of kajaria:

The company was incorporated on 20th December at Hyderabad. It

manufactures glazed and wall & floor tiles. The company obtained the

certificate of commencement of business on 20th January 1986.it was

promoted by shri ashok Kumar kajaria ,his associate and kajaria exports ltd.

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The company entered into a technical collorbation agreement with todagres

Spain for the manufacture of ceramic glazed wall and floor tiles.

Market potential of kajaria:

The industry’s potential appears attractive, following the realty growth in the

housing, retail, IT and BPO sectors. The low per capita consumption projects

a rising demand for ceramic tiles in India as they are used for aesthetic,

besides utility and hygiene reasons. To capitalize on the latent demand, the

industry players have expanded their distribution networks significantly.

Owing to the delicate nature of the product, distribution and logistics costs

form a substantial portion of the total costs and the success of the

distribution chain – marked by delivery promptness, well-equipped dealer

stocks and wide market reach – is critical to the success of retail sales.

Indian economy is poised to grow at 7-8 percent and with growing incomes

and urbanization, demand for houses is slated for growth. The increasing

34
focus on rural areas, by government and corporate, the demand for housing

would also increase in rural areas. The ceramic industry will also benefit from

the above developments. Increasing demand is just one part of the story the

availability of

Finance is the other part. With the availability of loans at low interest rate

and tax incentives have enabled the people.

Price Analysis:

The price of ceramic tiles depends on the various size and measurements of

the tiles. Although we have noticed that tile dealers are not ready to give

price details fairly, somehow we have managed to extract some of the tiles

prices of various players. the mostly used vitrified tile size for living room is

2’ X 2’, for kitchen and for toilet people used to install ceramic tiles of 16’ X

16’ and 12’ X 12’. For dining they used to stick with vitrified tiles of 2’ X 2’

size. Now, in wall tiles segment, the general market price in Ghaziabad starts

for Rs.21/sqft, in floor it is Rs.22/sqft and in vitrified it is Rs.35

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 Research Methodology:

Title: To determine the perception about various tiles’ quality, brand equity,

price and Customer service.

Title Justification:

36
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.

Research Design:

Type of Research: Exploratory and descriptive experimental research

Size of sample: The size of the sample was 30 respondents.

Area of study: Delhi & Faridabad

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.

PROJECT INTRODUCTION;

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At its core, marketing is primarily about human activity, which involves tiles

from an originating area to a destination for pleasure or business purposes.

This seemingly simple phenomenon embraces cultural, economic and social

exchanges. Tiles industry one of the biggest industries in the world in terms

of gross output and value added, capital investment, employment, and tax

contributions. A notable feature of international tiles growth has been the

gradual shift in the preference for destinations, form Europe and North

America to South Asia. India being one of the major South-Asian tiles

destinations, with the diversity of natural attractions and rich tapestry of

cultural heritage woven into a range of tiles products, can certainly expect to

exploit this trend in its favor. There is also a phenomenal explosion of

domestic tiles and the outbound tiles which is an inevitable by-product of the

prosperity that India has achieved during the last decade. In conjunction with

the new tiles policy of, Government of India also adopted a multi-pronged

approach for promotion of tiles, which included new mechanism for

expediting implementation of tiles projects, development of integrated tiles

circuits and rural destinations, special capacity building in the unorganized

hospitality sector and new marketing strategies to

India's tiles industry, be it inbound, outbound or domestic - every segment

has witnessed rapid changes especially in the last five years. India is the

fastest growing tiles economy where tiles have grown at a very healthy 13

per cent per annum in the past four years. In 2006, international inbound

tiles to India peaked at a record 4.4 million arrivals, driven probably by the

38
successful re-positioning of the destination brand through the ‘Incredible

India' marketing campaign. India's domestic tiles market has also shown a

steady upward trend over the past 15 years, as many of the States woke up

to the potential of home-grown tiles to stimulate economic growth and boost

employment. Domestic trips reached an all-time high of 430 million in 2006,

up by 13 per cent on 2005. The average annual growth rate has been more

than 10 per cent since 2000. Many of the States in India are formulating

policies and programmed to cater to the growing demand of inbound tiles.

However there are still infrastructural inadequacies that are constraining the

growth of tiles in India. In order to attract more visitors, India needs to

increase room supply, open further its skies to increase air capacity. Also

tiles development needs to be pursued with a focus on sustainability. This

involves, checking the indiscriminate growth of tiles , and controlling the

associated problems of pollution, environmental and ecological hazard and

cultural degradation.

RESEARCH METHODOLOGY

39
Each and every object requires genuine research study, success of the

project and getting genuine results that all are depends upon a research

method used by the researcher. Research methodology may be understood

as the science of study how research is done significantly & scientifically. It

minimizes the degree of uncertainty. It reduces the probability of making

wrong choices amongst alternatives courses of action. This chapter deals

with the researcher methodology adopted to analyze market and to study

consumer behavior, satisfaction and preferences.

RESEARCH DESIGN:

This study is analytical in nature. Analytical study means I had to analyze the

things, which already exists. We have to analyze the things and interpret the

results. It is an attempt to obtain a complete and accurate description of a

situation. Precise statement of the problem indicates what information is

required.

40
 DATA COLLECTION

DATA COLLECTION:

There are several ways of collecting the appropriate data, which may differ

considerably in context of money costs, time and other resources at the

disposed of the researcher. Broadly data collection methods can be divided

in two categories.

 Primary source

 Secondary source

Primary data:

For collecting primary data a questionnaire for the customers is being

prepared, and that is being used to collect the data from every individual.

Customers are being interviewed with the help of the questionnaire and it

provides very important information for the study. Questionnaire is structure

and the questionnaires are of two types:

41
Secondary data:

 Books

 Journals

 Internet

 Magazines

 Newspapers

 Reports and previous studies

VARIOUS METHODS OF PRIMARY DATA COLLECTION

1. observation method

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Under the observation method, the information is sought by way of

investigator’s own direct observation, without asking from the respondents.

2. Interview method

The interview method of collection data involves presentation of oral-verbal

stimuli and reply in items of oral-verbal Reponses. It can be

a) Personal interview b) telephone interview

3. Questionnaire

In this method, a questionnaire is sent to the person concerned, with a

request to answer the questions and return the questionnaire. It consists

of a number of questions printed or typed in a definite order on a form or

set of forms.

4. through schedules

This method of data collection is very much like the collection of data

through questionnaire, with a little difference, which lies in the fact that

43
schedules are being filled in by the enumerators, who are specially

appointed for the purpose.

PRIMARY METHOD OF DATA COLLECTION USED

In my research I decided to use the questionnaire method. This decision was

made on the basis that, I did not require the restructuring opportunity that

interviews provided. This was because I needed the respondents to respond

to the same set of questions. In this case, a structured questionnaire would

certainly provide me both with more definite answers then a structured or

any other method for that matter.

THE SAMPLE

The sample size of the respondents was 30 and the study was being

conducted in Delhi market& Faridabad.

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AREA OF STUDY

The area in which the research is conducted is the marketing, to study the

consumer behavior and satisfaction.

SAMPLE DESIGN

Sample design that part of which I select for the purpose of investigation. A

sample should exhibit characteristic of the universe. On the basis of sample I

had analyzed the behavior of mass phenomenon.

SAMPLE SIZE:

It refers to a no of items to be selected from the universe, so the sample size

had been taken as 30 respondents,

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 MICRO ANALYSIS

Which factor do you consider the most important to purchase the

tiles?

Consumer’s consideration No. of consumers

Price 09
Brand 15
Scheme 06

46
 PRICE
BRAND
SCHEME

Table shows that 09 respondents considered purchasing services

from its price value, 15 respondents considered to purchase
services from its brand value and 06 respondents by the scheme
given by the company.

Which reference group have you influenced to purchase kajaria

tiles?

Reference group Percentages

Friends 45
Family 11
Advertisement 27
Sales person 17

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 FRIENDS
FAMILY
ADDVERISEMENT
SALES PERSON

Table shows that 45% of respondents have role of friends in their

buying decision 11% of respondents have role of family in their
buying decision, 27% of respondents have role of advertisement in
their buying decision 17% of respondents have role of sales person.

Have you satisfied with the performance or comfort level of kajaria

tiles services?

Satisfaction Level Percentages

Strongly satisfied 25
Satisfied 39
Neutral 28
Dissatisfied 6

48
 Strongly dissatisfied 2

Strongly satisfied
Satisfied
Neutral
Dissatisfied
Strongly dissatisfied

This table shows that how much percentage of respondents are

strongly satisfied, satisfied, neutral, dissatisfied, strongly
dissatisfied by the services they get.

Which promotion strategies do you prefer the most?

Scheme Percentages

Coupon 29
Discount 48
Free gift 24

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 Coupon
Discount
Free Gift

This table shows that 29% of respondents prefer coupons, 48%of

respondents prefer discounts, and 24% of respondents prefer free
gift.

Which factors do you influence to buy the kajaria tiles?

Factor Percentage

Price 19
Variety 56

50
 Promotion schemes 25

Price

Variety

Promotion
schemes

Variety is major factor which influence 56% of consumers to switch

over to other brand. Promotion schemes are next factor to which
influence 25% of the consumers.

How do you aware about the kajaria tiles?

Advertisement Percentage

Magazine 29

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 Newspaper 45

Television 13

Internet 8

Other 5

Magzine
Newspaper
Television
Internet
Other

Table shows that 45% of respondents are influenced by newspaper

advertisement. 29% of respondents are by magazines
advertisement, 13% of respondents are influenced by TV
advertisements.

52
How can you recommend this product to someone else?

Recommended Percentage

Definitely yes 44

Probably yes 45

Definitely no 3

Probably no 8

53
 Definitely yes
Probably yes
Definitely no
Probably no

As per table concerned 44% of the respondent said that they have
recommended to other person.
The same product as they own 45% of the consumer said probably
yes that they will recommend.

54
RECOMMENDATIONS:

MARKETING: Should 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,

and multi-product Dealers and sub-dealers.

Distribution network should be clearly segregated towards specific product

segments.

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).Setting up exclusive

showrooms for special products instead of keeping with the regular range. As

example, the upcoming product ORVIT-a product

In high glaze tiles segment should have an exclusive place to showcase. It

would add to the exclusive ambience of the product more introduction of

matching wall and floor tiles.

To grow its institutional business, the company should organize more

Interactions with customer, 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 customer; on the other hand, it helped the

company cater to their evolving preferences.

55
BRAND:

More focus on packaging and product merchandising.

It may introduce a specific dedicated team to look after the overall brand

equity. They will ensure that all showrooms and dealer display centers were

in sync with the Orient profile. Also they will look after the external packing

material which creates an eye on look-and-feel, resulting in a holistic

branding approach.

More focus on Research and design-development activities to achieve the

cost and product design leadership.

Risks and Concerns: Some of the key risks affecting the Company are

explained below:

1. The instability in the fuel prices due to continuous increase in energy

prices in the international market has significantly put pressure on

margins.

2. General increase in freight has increased the landing cost of certain

raw materials.

56
3. After the imposition of anti dumping duty on Vitrified tile, dumping is

taking place in glazed wall and floor tiles which has put pressure on the

domestic tile manufacturers. The amount of anti dumping duty was

significantly reduced in April 08 by the Govt. However, it is still

prohibitive enough. Therefore, only a few of the Chinese companies

who were exempted from anti dumping duty are supplying to

companies in India.

4. To retain skilled professionals is also a cause for concern. However,

best HR practices are in place to retain the talent.

57
 CONCLUSIONS

The conclusions which are made after conducting the survey regarding the

performance appraisal and development system are as follows.

1. Price and brand name are the two major factors that affect the buying

decision of the consumer.

2. Most of the respondents are taking services of branded companies.

3. Promotional offers also attract the consumers.

58
4. Discount offers also attract the consumers.

5. Most of the respondents are satisfied with the price of the services

they are taking.

SUGGESTIONS

1. Companies should introduce new variety of services so that all age

groups can be attracted.

2. New promotional programs should be introduced.

3. Price should be fixed on the basis of competition.

4. Companies should get the certification from different authorized

bodies.

59
5. Comparative price should be used as a tool to promote products in the

Market.

6. To create the needs of youths & children segment the company should

introduce new strategies to achieve maximum sale.

7. The packaging of the services should be as per the convenience of the

consumers which can be an important factor to influence the buying

behavior.

8. Different promotional schemes like discount & free gift can be used.

9. The company should also try their comparative advantage in the

market on the basis of different strategies to promote sales.

10. Various camps should be organized to promote awareness

among people.

11. Retaining old client with regular follow up.

12. Promotional activities during festive season.

13. Targeting new segments of the market.

60
 14. Collecting personal references.

15. Developing new tie ups.

LIMITATIONS

Every search work has limitations. This study is no exception to that. It is

also admitted here it was a great mental & physical exercise to go along with

project report. Even by doing a lot to attend the maximum aspects of the

concept. It is not possible to touch every bit of it.

The main limitations of the study are as follows:

61
  The first limitation is the availability of time which is caused a great

problem in confirming the study.

 The sample size of the respondents is 30 which were very small.

 As the data is being collected with the help of questionnaire, which

consists of certain questions, that was used to intertwined customers,

they may be biased in their response.

 Requirement of exact information again proved to be a limitation to

the study.

These are the various limitations which I faced during my training study.

The sample size is very less, hence it does not imply for the complete

population.

There was lack of time and resources that prevented from carrying out an in

depth study.

The findings of the survey are based on the subjective opinion of the

respondents and there is no way of assessing truth of the statements.

There is some respondent’s bias which cannot be removed. Some amount of

error exists in the data filling process because of the following reasons:

62
Influence of others Misunderstanding of the concept .Hurried filling of the

questionnaire.

The research is confined to a certain parts of Delhi & Faridabad and does not

necessarily shows a pattern applicable to all of Country.

Some respondents were reluctant to divulge personal information which can

affect the validity of all responses.

In a rapidly changing industry, analysis on one day or in one segment can

change very quickly. The environmental changes are vital to be considered

in order to assimilate the findings.

BIBILOGRAPHY

63
1. Gupta S.P, Statistical Methods, Sultan Chand and Sons Publishers, 34th

edition, pp 378.

2. Kothari C.R. “Research methodology” Prentice Hall of India, 8th edition,

pp 110-112

3. Internet sites:

4. Macmillan Business. ARTHUR MEIDAN, (1996) “Marketing of

financial services.”

5. GUPTA V.K.(2000),” Marketing of financial services” Mohit

publications.

6. SCHIFFMAN & KAUNAK (2000), “CONSUMER BEHAVIOUR,” 7 th

edition, prentice hall International, Inc.

7. HARPER W. BOYD, WESTFALL, STASCH, “Marketing Research,” 7 th

edition, 2000.

www.wikipedia.com

www.google.com

64
 Business line

www.icctas.com

Company websites

Annual reports

Previous summer training projects

Magazines, web-articles and catalogues

For primary data-

Questionnaire

Supervisor’s advice and information

QUESTIONNAIRE

65
Hello Sir,

I am doing a project on consumer behavior and satisfaction. Your

help in this regard will be highly appreciated. I ensure that

information provided by you will be kept confidential and will be

used purely for academic purposes.

Name - Age:

Occupation-

1) Which reference group do you belong?

a) Employee (Pvt. Sector) [ ]

b) Employee (Public Sector [ ]

c) Self – Employed [ ]

d) Student [ ]

e) Others (please specify). [ ]

2) How do you come to know about kajaria tiles? (Please tick).

66
a) Advertisements [ ]

b) Friends and relatives [ ]

c) Direct selling agents [ ]

d) Others (please specify) [ ]

3) Which factor do you consider the most important to purchase the

tiles?

a) Price [ ]

b) Brand [ ]

c) Schemes [ ]

4) Which factor have you influenced to purchase kajaria tiles?

a) Friends [ ]

b) Family [ ]

c) Advertisement [ ]

d) Sales person [ ]

5) Have you satisfied with the performance or comfort level of

kajaria tiles services?

67
a) Strongly satisfied [ ]

b) Satisfied [ ]

c) Neutral [ ]

d) Dissatisfied [ ]

e) Strongly dissatisfied [ ]

6) Which promotion strategies do you prefer the most?

a) Coupon [ ]

b) Discount [ ]

c) Free gift [ ]

7) Which factors do you influence to buy the kajaria tiles?

A) Price [ ]

b) Variety [ ]

c) Promotion schemes [ ]

8) How do you aware about the kajaria tiles?

68
a) Magazine [ ]

b) Newspaper [ ]

c) Television [ ]

d) Internet [ ]

e) Other [ ]

9) How can you recommend this product to someone else?

a) Definitely yes [ ]

b) Probably yes [ ]

c) Definitely no [ ]

d) Probably no [ ]

10) Do you satisfy with kajaria tiles schemes?

a) Yes [ ]

b) No [ ]

11) Do you satisfy with price?

69
a) Yes [ ]

b) No [ ]

RAJEEV

KUMAR

70