KENNY's Format(97 Updated)

A PROJECT REPORT ON Product Segmentation with Reference to Kwality Tubes. Submitted in partial fulfillment of the requirement for the Award of Degree of Bachelor of Business Administration under Tilak Maharashtra University, Pune. Submitted By KENNY KURUVILLA PRN: 07109501047 BATCH: 2011-2012 Under the guidance: IRFAN AJMERI Vikas college of Arts, Science, & Commerce VIKHROLI, MUMBAI

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CertificateThis is to certify that the project titled Product Segmentation with reference to Kwality Tubes is a bonafide work carried out by Mr. KENNY KURUVILLA, A Student of BACHELOR OF BUSINESS ADMINISTRATION Semester 6th Specialization in Marketing Management PRN Number: 071095010472 under Tilak Maharashtra Vidyapeeth, in the year 2012.

Head of the Department

Examiner Internal

Examiner External

Date: Place:

University Seal

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Certificate This is to certify that Mr.Kenny Kuruvilla PRN No 071095010472. Student of BACHELOR OF BUSINESS ADMINISTRATION Semester 6th has undertaken the Project work titled Product Segmentation with Reference to Kwality Tubes. During the academic year 2011-2012 under the guidance of Prof. Irfan Ajmeri submitted to Vikas College in fulfillment of The certificate of BACHELOR OF BUSINESS ADMINISTRATION, Tilak Maharashtra University Pune. This Project work and information presented is true and original to the best of my knowledge and belief.

College Seal

Principal Signature

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GUIDE CERTIFICATEThis is to certify that the project titled Evaluation of Product Segmentation with Reference to Kwality Tubes is a bonafide work carried out by Mr. KENNY KURUVILLA a Student of Bachelor of Business Administration Semester 6th specialization Marketing PRN.07109501047 under Tilak Maharashtra Vidyapeeth, in the year 2012

Place: Mumbai Date: Irfan Ajmeri. Internal Guide.

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ACKNOWLEDGEMENTI express my sincere thanks to Mr. Irfan Ajmeri of Vikas College of Arts, Science & Commerce VIKHROLI, MUMBAI for his valuable suggestions & help to prepare this project. I am extremely grateful to Mr. Vikas Raut, Director of Vikas College of Arts Science & Commerce VIKHROLI, Mumbai for Encouraging and providing Facilities for the Study. Finally, it is my foremost duty to thank all my respondents, who helped me to complete my field work without which this project would not have been possible. Place: Mumbai. Date: KENNY KURUVILLA

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DECLARATIONI hereby declare that this project report entitled Product Segmentation with reference to Kwality Tubes is a record of work carried out by me under the guidance of Prof. Irfan Ajmeri, in partial fulfillment of the requirement for the award to the degree of Bachelor of Business Administration Semester 6th specialization Marketing PRN.07109501047 under Tilak Maharashtra Vidyapeeth, in the year 2012 I also hereby declare that this project report is the result of my own efforts and has not been submitted at any time to any other university or institute for the award of any degree or diploma.

Place: Mumbai. DateKENNY KURUVILLA

CONTENTS6

Sr. No.1. 2.

CHAPTERGENERAL INTRODUCTION (Defining Product Segmentation) INTRODUCTION TO THE PROBLEM Title Of the Project Statement Of the Problem Purpose Of the Study Objective Of the Study Scope Of the Study PROFILE OF KWALITY TUBES THEORETICAL PERSPECTIVE METHODOLOGY DATA ANALYSIS & INTERPRITATION FINDINGS LIMITATIONS CONCLUSION & RECOMMENDATIONS APPENDIX

Page No.

3. 4. 5. 6. 7. 8. 9. 10.

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Chapter 1

General IntroductionWhat Is Product Segmentation?

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Product segmentation is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true Product segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market or Product intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts for the services. The people in a given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. These can be broadly viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups. Examples: Gender Price Interests

Location9

Religion Income Size of Household

While there may be theoretically 'ideal' market segments, in reality every organization engaged in a market will develop different ways of imagining market segments, and create Product segmentation strategies to exploit these segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage.

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Chapter 2

Introduction to the ProblemTitle Of the Project

Marketing Strategy of Product Segmentation with Reference to Kwality Tubes.!

Statement of the Problem Segmentation studies tend to be large and complicated, so its Easy for errors and mistakes to be made. Some of the most11

Common mistakes: Segmenting a segment. For example, someone might want To segment the market for widgets among 18- to 24-yearolds Who live in Vermont and buy brand XYZ. As is evident, The client is asking that of data. It is easy to get lost in this Treasure trove of answers and come up with confusing and Baffling results. Overlooking the basics. The dazzle and glitter of the Advanced, rocket-science multivariate analyses attract Everyones attention. No one ever opens up the crosstabs And looks at the answers to the hundreds of questions asked. Often, hidden in plain view in the plain old crosstabs are Tremendous findings that could form the basis for new or Improved marketing strategies, advertising campaigns, or new products. Rarely does anyone analyze this basic data, however. Targeting people instead of dollars. A market segment might represent a large percentage of the population, but a small part of the market. Always look at the dollar potential of market segments, not just the number of people in the segments.

Purpose Of the Study

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The main purpose of segmenting a product is to allow a market or marketing strategy to focus on the prospects that are most likely to purchase the products or services on offer. If it is done properly it ensures that the best return for the marketing expense is outlaid. There are definite differences and these depend on whether you are selling to individual consumers or to business customers. Category of Need The first thing you can establish is a category of need that your offering satisfies. The following classifications may help. For businesses:

Strategic - your offering is in some way important to the enterprise mission, objectives and operational oversight. For example, a service that helped evaluate capital investment opportunities would fall into this domain of influence. The purchase decision for this category of offering will be made by the prospect's top level executive management. Operations - your offering affects the general operating policies and procedures. Examples might be an employee insurance plan or a corporate wide communications system. This purchase decision will be made by the prospect's top level operations management. Functional - your offering deals with a specific function within the enterprise such as data processing, accounting, human resources, plant maintenance, engineering design, manufacturing, inventory control, etc. This is the most likely domain for a product or service, but you must recognize that the other domains may also get involved if the purchase of the product or service becomes a high profile decision. This purchase decision will be made by the prospect's functional management.

For the individual consumer:13

Social Esteem or Pleasure - your offering satisfies a purely emotional need in the consumer. Examples are a mink coat or a diamond ring. There are some products that are on the boundary between this category and the Functional category such as a Rolex watch (a Timex would satisfy the functional requirement and probably keep time just as well). Functional - your offering meets a functional requirement of the consumer such as a broom, breakfast cereal or lawnmower.

Objective Of the Study.

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The Main Objective of Kwality Tubes is Customer Satisfaction. They strive to delivery error-free, competitive, high quality products & services on time to meet & exceed our customers expectations to have effective segmentation & profiling of customers to enable business get maximize customer value and satisfaction, by offering relevant products and services. Segmentation OBJECTIVES 1. To understand product segmentation and consider why it is used. 2. To examine how companies segment products and markets. 3. To explore different targeting strategies. 4. To learn about the role and process of positioning the product in segmentation Strategies. 5. To consider how marketers can achieve the most from product Segmentation.

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Scope of the Study

Scope on Product Segmentation:-

While defining a product scope may seem like a daunting task, it really comes down to two things; knowing you want to get out of your product, and deciding how youre going to get it. It also helps to know some of the common language used to define market research studies. The premise of market segmentation is that to maximize sales to a large population of customers, it is best to divide it into logical subgroups. The assumption is that by dividing one large, amorphous mass into subgroups, you can fine-tune your product, messaging, support, or distribution channels to meet the specific needs of unique customer groups. Thus, the goal is to use a market segmentation model to improve marketing success and optimize marketing ROI. Segmentation models vary from basic to complex and the approaches to developing and applying them is a topic for an entire book itself. Product segmentation studies are fairly involved. They are often multiphased projects that can get very complex, especially for global organizations. In fact, in my experience, product segmentation studies are among the most complex types of projects and have a higher risk of failure as compared to other studies. Even when completed as planned, many clients find it challenging to truly apply the results.

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Market segmentation can be done with both consumer and business populations. That said, the studies for B2B populations are very different than those for B2C populations. Take this into consideration when selecting potential agencies for this type of project. A firm that has strong experience in consumer segmentation does not necessarily have B2B segmentation expertise.

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Chapter 3

Profile of Kwality Tubes

We have immense pleasure in introducing ourselves to your esteemed organisation as one of the leading largest Stockists and Importers of Ferrous and Non-Ferrous Metals. We have already supplied to various18

projects under Third Party inspection agencies like EIL, UHDE, DNV, BV, H & G, PDIL, TATA, IBR, SGS, Punj|Lloyd, Toyo, ETC. We are also regular suppliers of the below materials to EPC Contractors, Refineries, Fertilisers, Chemicals, Petrochemicals, Cements, Engineering under Government and Private Sectors. The following items in wide range of sizes and grades to suit diverse needs are readily available with us in bulk quantities

A. STAINLESS STEEL TUBES, PIPES SEAMLESS WELDED, PIPE FITTINGS, SHEETS PLATES, FLATS, RODS, WIRES, STRIPS IN THE GRADE OF 304, 304L, 316, 316L, 316TI, 309, 310 & 410.

B.CARBON STEEL SEAMLESS PIPES OF ASTM A -106 GR A, B & C, ASTM A- 333GR, 1 & 6, WITH IBR & NON-IBR.

C. ALLOY STEEL SEAMLESS PIPES OF ASTM A 335 GR. P1, P2, P5, P9, P11, P12, P22 P91 ETC.

D.PIPE FITTINGS LIKE ELBOW, REDUCER, BEND, STUBEND, TEE FLANGES, NUT, BOLT ETC.

E.COPPER, BRASS, ALUMINIUM, ZINC, LEAD, MONEL, NICKEL, INCONEL 600 & 800 AND HASTO ALLOYS NAMELY IN ALL FERROUS & NON FERROUS METALS IN ALL SIZES.19

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COMPANY PROFILE

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Name of the company:

M/s. Kwality Tubes.

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Companys latest address:

P.B. No. 3818, 9 Ratna Sadan, 1st Floor, 105, 5th Kumbharwada Lane, Mumbai 400 004. INDIA.

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Date of incorporation of the Co:

1991.

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Nature of the company:

Partnership.

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Sales Tax Registration No:

VAT TIN 27780292653 V w.e.f. 01-04-96 CST TIN 27780292653 C w.e.f. 01-04-96

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Excise Registration No.

AADFK5452DXD001

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ISO 9001:2008

Certificate No. 91/Q/5436 Valid up to 11-10-2012.

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Nature of Business:

Importer /Stockiest/Supplier.

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Product offered for enlistment:

Carbon Steel, Alloy Steel, & Stainless Steel, Nickel, Monel, Inconel Pipes & pipe Fittings. MR. PARAS JAIN / MR. RAMESH JAIN21

10. Companys key personnel indicating Designation, Phone numbers, fax number, and E-mail address:

Phone: 00 91-22 23891995/96. Fax : 00 91-22 2389 1994. E-mail : [email protected] [email protected]

MOBILE: PARAS JAIN : 98210 31998. RAMESH JAIN: 98690 31998.

11. Name & address of Bank:

YES Bank Limited, A/c. No. 000484100001134 Nariman Point, Mumbai Mumbai 400 004. Bank of Baroda, A/c. No. 03900200000235 C.P. Tank Branch

OUR MAJOR CLIENT LIST.

1. 2. 3. 4. 5. 6. 7.

Nuclear Power Corpn. of India Ltd. Hindustan Petroleum Corpn. Ltd. Bharat Petroleum Corpn. Ltd. Indian Oil Corpn. Ltd. Chennai Petroleum Corpn. Ltd. SAIL, Bhilai Steel Plant, SAIL, Bokaro Steel Plant.

Mumbai 15. VA Tech Escher Wyss Flovel Ltd. 400 004. 16. Tata Projects.17. Cairn Energy. 18. DAELIM INDUSTRIAL CO. LTD.(DIC) 19. Binani Industries Ltd. 20. Bhushan Steel Group 21. Essar Group

8. 9. 10. 11. 12. 13. 14.

Bharat Heavy Electricals Ltd. UHDE India Ltd. Larsen & Toubro Limited. Engineers India Limited Oil & Natural Gas Corpn. Ltd. Cochin Shipyard Ltd. Bhaba Atomic Research Centre (BARC)

22. 23. 24. 25. 26. 27. 28.

Hindustan Paper Corpn. Ltd. Hindustan News Print Ltd. Indian Farmers Fertilisers Co-op Ltd. Chambal Fertilisers & Chem. Ltd. Ispat Industries Ltd. Hindalco Industries Ltd. (Birla Copper) Punj Lloyd Ltd.

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15.

Mangalore Refinery Petrochemicals Ltd (MRPL)

Chapter 4

Theoretical Perspective

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The basic approach to product segmentation is that a company tags each of its active customers with 3 values: Tag #1: Is this product at high risk of canceling the company's service? One of the most common indicators of high-risk customers is a drop off in usage of the company's product. For example, in the credit card industry this could be signaled through a customer's decline in spending on his or her card. Tag #2: Is this product worth selling? This determination boils down to whether the post-segmentation profit generated from the customer is predicted to be greater than the cost incurred to sell the Product. Managing Customers as Investments. Tag #3: What segmentation tactics should be used to place this Product? For customers who are deemed save-worthy, its essential for the company to know which tactics are most likely to be successful. Tactics commonly used range from providing special customer discounts to sending customers communications that reinforce the value proposition of the given service. Process for Segmenting Products. The basic approach to segmenting Products is to utilize historical segmentation data to make predictions about active customers regarding:24

Whether they are at high risk of canceling their service Whether they are profitable to segment. What retention tactics are likely to be most effective

The idea is to match up active customers with customers from historic segmentation data who share similar attributes. Using the theory that birds of a feather flock together, the approach is based on the assumption that active customers will have similar segmentation outcomes as those of their comparable predecessor.

"Positive" Product segmentation Product segmenting is classifying the product into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products & services. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private although industrial product segmentation is quite different from consumer market segmentation, both have similar objectives. All of these methods of segmentation are merely proxies for true segments, which don't always fit into convenient demographic boundaries. Consumer-based product segmentation can be performed on a product specific basis, to provide a close match between specific products and individuals. However, a number of generic market segment systems also exist, e.g. the system provides a broad segmentation of the population of the United States based on the statistical analysis of household and geodemographic data. The process of segmentation is distinct from positioning (designing an appropriate marketing mix for each segment). The overall intent is to25

identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved. Improved segmentation can lead to significantly improved marketing effectiveness. Distinct segments can have different industry structures and thus have higher or lower attractiveness Positioning Once a product segment has been identified (via segmentation), and targeted (in which the viability of servicing the market intended), the segment is then subject to positioning. Positioning involves ascertaining how a product or a company is perceived in the minds of consumers. This part of the segmentation process consists of drawing up a perceptual map, which highlights rival goods within one's industry according to perceived quality and price. After the perceptual map has been devised, a firm would consider the marketing communications mix best suited to the product in question. Price Discrimination Where a monopoly exists, the price of a product is likely to be higher than in a competitive market and the quantity sold less, generating monopoly profits for the seller. These profits can be increased further if the market can be segmented with different prices charged to different segments charging higher prices to those segments willing and able to pay more and charging less to those whose demand is price elastic. The price discriminator might need to create rate fences that will prevent members of a higher price segment from purchasing at the prices available to members of a lower price segment. This behavior is rational on the part of the monopolist, but is often seen by competition authorities as an abuse of a monopoly position, whether or not the monopoly itself is sanctioned. Examples of this exist in the transport industry (a plane or train journey to26

a particular destination at a particular time is a practical monopoly) where business class customers who can afford to pay may be charged prices many times higher than economy class customers for essentially the same service. Product segmentation is a concept in economics and marketing. A product segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true product segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. The people involved in each given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups. Examples:

Gender Price Interests

While there may be theoretically 'ideal' products segments, in reality every organization engaged in a market will develop different ways of imagining product segments, and create Product differentiation strategies to exploit these segments. The product segmentation and corresponding market differentiation strategy can give a firm a temporary commercial advantage.

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Chapter 5

Research Methodology

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There is no single correct way to segment a product. The broad strategic direction of the company, hypothesized segmentation schemes, and/or the capabilities of the organization should drive the particular approach taken. To determine how best to conduct product segmentation, Market Street Research considers a number of segmentation approaches. For example, a segmentation strategy can be based upon frequency of use of a product or service, occasions of use, and/or the benefits consumers derive from a specific product or service. Once the best method is identified, we use the most appropriate marketing research tools to define the segments. The product segmentation approach we use most frequently is to conduct factor analyses to ascertain the underlying structures in the data, then to identify market segments by conducting a discriminated analysis, and finally conduct a variety of tests in order to characterize and describe the individual market segments. Sampling Design: It refers to the technique or the procedure the researcher would adopt in selecting a product. Research always starts with a question or a problem. Its purpose is to question through the approach of scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Marketing research is the function which links the consumer, customer and public to the marketer through information information used to identify and define marketing opportunities and problems generate, refine and evaluate marketing actions, monitor marketing actions and improve understanding of market as a process.29

For my Project, I have decided on Primary data collection method for observing working of Company and approaching Clients directly in the field, interviews and through appointments to know their interest in business with Kwality Tubes.

Secondary Data collection method was used by referring all Engineering websites, Project Magazines and daily newspapers and existing clients of Kwality Tubes for collecting information regarding project under study. Sample Size 150 Sampling Technique Convenience Convenience Sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher. The subjects are selected just because they are easiest to recruit for the study and the researcher did not consider selecting subjects that are representative of the entire population. In all forms of research, it would be ideal to test the entire population, but in most cases, the population is just too large that it is impossible to include every individual. This is the reason why most researchers rely on sampling techniques like convenience sampling, the most common of all sampling techniques. Many researchers prefer this sampling technique because it is fast, inexpensive, easy and the subjects are readily available. I filled the questionnaire with the help of Procurement Managers, Project Managers, and Staffs from Purchase Department of EPC Companies, Oil Refineries, Power & Gas Sectors, Paper & Pulp Companies, Sugar Companies etc

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Research Design A Research design is concerned with turning a research question into a testing project. The best design depends on the research questions. Decisions regarding what, when, how much, by what means concerning and inquiry or a research study constitutes the research design. For this method I make a list of mix questionnaire (having open & closed ended questions) which is designed on the basis of guidelines provided by the faculty. Data Collection: Data Collection is an important aspect of any type of research study. Inaccurate data collection can impact the results of a study and ultimately lead to invalid results. Data collection methods for impact evaluation vary along a continuum. At the one end of this continuum are quantitative methods and at the other end of the continuum are Qualitative methods for data collection. I have collected the Primary data by observing working of Company and approaching Clients directly in the field, interviews and through appointments to know their interest in business with Kwality Tubes. I have collected the Secondary Data by referring all Engineering websites, Project Magazines and daily newspapers and existing clients of Kwality Tubes for collecting information regarding project under study.

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Sampling PlanSampling on Product Segmentation As products and brands continue to proliferate, segmenting your market is more important than ever. Dividing a large group of relatively heterogeneous consumers into a set of smaller, more homogeneous segments makes perfect marketing sense. Employing the right segmentation analysis can impact both product development and communication strategy efforts. Product Segmentation analysis should properly be viewed as a solution. The most important question to be addressed early in the research process is, How do you plan to use the segments? Having a clear understanding of what end results are required, and how these results will be used, will play critical roles in the ultimate success of any segmentation analysis. The three primary challenges to a successful segmentation:

Selecting the optimal variables for use in dividing a population into subgroups, Identifying the best statistical algorithms for the segmentation, and Presenting the results in a usable fashion.

Creating the segmentation model means sorting through demographics, usage behaviors, needs, interests, attitudes and more. Identifying the proper statistical algorithm means choosing from the collection of statistical and heuristic methods for determining segments that have been developed in recent years. And, impactful reports means bringing the results to life with clear, meaningful segment definitions and an action plan for operationalizing your segmentation solution. In business-to-business markets the aim of Product segmentation is to arrive at clusters of like-minded companies so as to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering. There is a very strong pressure to use32

segmentation in business-to-business markets to win a competitive advantage as there is often little to differentiate one product from another. Segmentation therefore links strongly with a strategy to achieve a sustainable differentiated position.

Chapter 6

Data Analysis & Data Interpretation

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PRODUCT OVERVIEW OF KWALITY TUBES

Carbon Steel Pipes & Tubes We have a large scale unit engaged in stocking and importing carbon steel tubes, carbon steel pipes and carbon steel welded pipes, carbon steel welded tubes and electro galvanized steel tubes/pipes. We supply for engineering purpose, ERW pipes for water, gas & sewerage, carbon steel tubes for idlers of belt conveyors, water wells and lancing pipes for various automotive & industrial applications

Applications Carbon Steel is used in the most critical engineering applications and also in certain applications in the automotive sector. In addition, some of the value-added Carbon Steel products include steel for LPG cylinders, API grade, corrosion resistant steel, critical structural application steel, boiler quality, auto grades, precision tubes and medium/high carbon grades, among others.

Carbon Products A53 A106 API5L Grade B/C X42 Seamless Pipe Size Range : 1/8" - 26" Schedules : 20, 30, 40, Standard (STD), Extra Heavy (XH), 80, 100, 120, 140, 160, XXH Grades : ASTM A53 Gr B, ASME SA53 Gr B, API-5L Gr B, ASTM34

A106 Gr B, ASME SA106 Gr B, ASTM A106 Gr C, PSL 1 and PSL2 API5L X-42 X-52 X-60 Seamless Pipe Size Range : 2" - 24" Schedules : Standard (STD), Extra Heavy (XH), 100, 120, 160, XXH Grades : PSL1 and PSL2 A333 (Low Temp) Grade 1/6 Carbon Steel Seamless Pipe Size Range : 1/2" - 24" Schedules : Standard (STD), Extra Heavy (XH), 100, 120, 160, XXH A53 API5L Grade B X-42 X-52 X-60 ERW (Electric Resistance Welded) Pipe Size Ranges : 2" - 24" Schedules : 10, 20, Standard (STD), Extra Heavy (XH) Non-Schedules : .120wall, .156wall, .188wall, .203 wall, .219wall etc. Grades : API-5L Gr B, API-5L Gr X42, API-5L Gr X52, API-5L Gr X60, API-5L Gr X65PSL1 and PSL2 API5L Grade B X-42 X-52 X-60 DSAW/SAW Size Ranges : 26" - 60" Schedules : 20, Std, XH, 30, Grades : API-5L Gr B, API-5L Gr X42, API-5L Gr X52, API-5L Gr X60, API-5L Gr X65PSL1 and PSL2 END-USE APPLICATIONS Oil and Natural Gas Industry: The Primary Customer Petrochemical Industry: Another Major End-Use Market Construction Industry Water Transmission Sewerage Pipelines Building Construction Automotive Industry Agricultural Applications: Mechanization Promoting Growth Telecommunication Sector Industrial Equipment Defense Equipment35

Exercise Equipment Fire Protection 1. In thinking about your most recent experience with Company, was The quality of customer service you received: Excellent Good Average Poor Very poor

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2. Would you say the value of the Product, as compared to its price, is: Excellent Good Average Poor Very poor

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3. Did you contact a company representative (Business Executive)? Yes No

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4. Considering sales, delivery period, payment terms, and cost, how satisfied are you with the Company? 01 to 30 31 to 70 71 to 100

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Chapter 7

Findings

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Findings on Product Segmentation: 1. Segments are too small If the chosen segment is too small then you will not have the proper turnover which in turn will affect the total margins and the viability of the business. 2. Consumers are misinterpreted The right product to the wrong customers. What if your market research says that your customers want a new soap and you come out with a new facial cream? The concept is same, cleanliness. But the concept is completely different. 3. Costing is not taken into consideration Targeting a segment is ok but you also need to know how much you will have to spend to target a particular segment. If it is a Sec A segment and you do not have the budget to be present in the places the Sec A customer visits, then your segmentation strategy is a failure. 4. There are too many brands Along with segmentation, you also need to check out the competition offered in the same segment from other products. Getting into a segment already saturated will mean higher costs and lesser profit margins. 5. Consumer are confused If the consumer himself doesnt know whether he will be interested in a particular product or not, than thats a sign that you need to get out of that segment / product. 6. Product is completely new If a product is completely new than there is no market research to base your segmentation on. You need to market it to the masses and as acceptance increases, only then will you be able to focus on one particular segment.

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Chapter 8

Limitations

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Limitation of the study means those problems and those barriers which precise my field work and stopped me to know more. As the questionnaire was distributed amongst various respondents, few of them were hesitant in answering the questionnaire. Study is only limited to the clients Of Kwality Tubes. Some of the respondents were given enough time to answer the questionnaire but they were still not able to do the required. Some respondents did not respond few questions because they were not sure about the answers as the questionnaire was in the objective form.

The duration of the study allowed by the university is not enough for justification of the report. As the researcher is a student, it is impossible for the researcher to move frequently to the selected company for the study. In this research, primary sources to gather information such as questionnaires and interviews. Here, questionnaire is sent to limited number of the people and the data analysis is made on the basis of research. However, utmost care is taken to collect and incorporate maximum data as possible in this study so as to make it meaningful and useful. Budget available with the researcher is limited and it is sufficient. Company is having confidential data material, hence cannot divulge any detailed information. So in my study most of the data is interpreted as per available data only. Because of availability of less data I didnt43

study more deeply about Kwality Tubes because my study is only limited to Product segmentation. I should not cover the other mechanism or aspects in the company which are readily available with Kwality Tubes.

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Chapter 9

Conclusions and Recommendations

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After analyzing & interpreting the data received from respondents, following conclusions have been drawn: Kwality Tubes play a very important role in the Industrial /Piping Market. 1. Kwality Tubes has a variety of piping products under one roof at a very reasonable market price. 2. Provide better quality to the Clients. 3. Provide attractive delivery period to the Clients. 4. Provides satisfactory customer demand at reasonable rates. 5. Provides excellent good after sales service.

With this the researcher came to the conclusion of the research report. It was a wonderful experience for the researcher working on the topic selected by him. Although it was not an easy task collecting information in the competitive market of Industrial Pipes. But taking up the challenge is very interesting. It is clear from the analysis Kwality Tubes is much better than any other Pipe Company due to its existing Clienteles and can compete with its competitors on the basis of Price, Quality and faster turn around time with excellent customer service.

In the recent years, significant changes have been taking place in the economic, social, industrial and political environment of business in India as well as worldwide. Recent changes in the economics of the world brought by the creation of WTO,46

economic liberalization and trend towards globalization have brought many opportunities and threats for modern organization. For any company to grow:1.) It has to be constantly exploring new opportunities along with the old one. 2.) It should make use of new technologies as and when available. 3.) It should promote young talent and hunt for them in various B-SCHOOLS.

For any product to be successful:1.) Companys relationship with Prospective clients should be good. 2.) The product should have high quality. 3.) The customer should have delighted with the product. 4.) The marketing strategies used by the company to promote its product should be ethical and effective.

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RecommendationsI recommend that Kwality Tubes has tremendous scope as a largest player in the Piping sector with the following Product Segmentation strategy framework. 1.) Direct the appropriate amounts of promotional attention and money to the most potentially profitable segments of his market; 2.) Segment a product line that truly parallels the demands of the market instead of one that bulks in some areas and ignores or scants other potentially quite profitable segments; 3.) Catch the first sign of a major trend in a swiftly changing market and thus give time to prepare to take advantage of it; 4.) Determine the appeals that will be most effective in his companys advertising; and, where several different appeals are significantly effective, quantify the segments of the market responsive to each; 5.) Choose advertising media more wisely and determine the proportion of budget that should be allocated to each medium in the light of anticipated impact; 6.) Correct the timing of advertising and promotional efforts so that they are massed in the weeks, months, and seasons when selling resistance is least and responsiveness is likely to be at its maximum; 7.) Understand otherwise seemingly meaningless demographic market information and apply it in scores of new and effective ways. These advantages hold in the case of both packaged goods and hard goods, and for commercial and industrial products as well as consumer products.

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AppendixCopies of Forms Questionnaire used

Name: . Job Title: . Company: . Address & Contact Details: ..

Q 1 You are using these Industrial Pipes for any purpose? Ans - Yes [ ] No [ ]

Q 2 Did you have any difficulty locating the office of Kwality Tubes? Ans - Yes [ ] No [ ]

Q 3 Do you think Kwality Tubes is a good option to buy all your Piping requirements? Ans Yes [ ] No [ ]

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Q 4 Do Kwality Tubes take a long time to provide you with solution to your requirements? Ans 1. Availability of different grades of Pipes & Tubes under one roof 2. Price Variation. 3. Service Provided by the Company

Q 5 On a scale from 1 5, How much would you rate Kwality Tubes? Ans 1.1 2.2 3.3 4.4 5.5

Q 6 Are you satisfied with the after sales service rendered by Kwality Tubes? Ans Yes [ ] No [ ]

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Bibliography

Marketing Management Koller Philip Research Methodology Kothari C. R. Some information borrowed from www.kwalitytubes.com Some Information derived from the Office of Kwality Tubes in Mumbai Some information obtained due to personal encounter with clients

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