“MARKETING STRATEGY AT KERAKOLL FOR CUSTOMER ACQUISITION AND RETENTION” PROJECT REPORT 2008-10 SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD. OF POST GRADUATE DIPLOMA IN MANAGEMENT POST GRADUATE DIPLOMA IN MANAGEMENT POST GRADUATE DIPLOMA IN MANAGEMENT POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED BY ASHUTOSH SHARMA ROLL NO: 8014 UNDER THE SUPERVISION OF EXTERNAL: MR.RAHUL SHARMA INTERNAL: DR. SIDDHARTH VARMA Department of management INSTITUTE OF MANAGEMENT EDUCATION
MARKETING STRATEGY AT KERAKOLL FOR CUSTOMER ACQUISITION AND RETENTION, PROJECT REPORT 2008-10 SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD. OF POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED BY ASHUTOSH SHARMA ROLL NO: 8014
UNDER THE SUPERVISION OF EXTERNAL: MR.RAHUL SHARMA INTERNAL: DR. SIDDHARTH VARMA
Department of management
INSTITUTE OF MANAGEMENT EDUCATION
DECLARATION
I hereby declare that the project entitled “MARKETING STRATEGY AT KERAKOLL FOR CUSTOMER
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
“MARKETING STRATEGY AT KERAKOLL FOR CUSTOMER ACQUISITION AND RETENTION” PROJECT REPORT 2008-10 SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD. OF POST GRADUATE DIPLOMA IN MANAGEMENTPOST GRADUATE DIPLOMA IN MANAGEMENTPOST GRADUATE DIPLOMA IN MANAGEMENTPOST GRADUATE DIPLOMA IN MANAGEMENT
SUBMITTED BY ASHUTOSH SHARMA ROLL NO: 8014 UNDER THE SUPERVISION OF EXTERNAL: MR.RAHUL SHARMA INTERNAL: DR. SIDDHARTH VARMA Department of management INSTITUTE OF MANAGEMENT EDUCATION
DECLARATION
I hereby declare that the project entitled “MARKETING STRATEGY AT KERAKOLL
FOR CUSTOMER ACQUISITION AND RETENTION ” submitted for the Post
Graduate Diploma in Management is my original work and the Project Report has not
formed the basis for the award of any degree, diploma, associate ship, or other similar
titles.
DATE:
PLACE: SIGNATURE:
INSTITUTE OF MANAGEMENT EDUCATION G.T. Road, Sahibabad, Ghaziabad (U.P.)
DEPARTMENT OF MANAGEMENT
CERTIFICATE
This is to certify that the Project Report entitled “ MARKETING STRATEGY AT KERAKOLL FOR CUSTOMER ACQUISITION AND RETENTION ” submitted by ASHUTOSH SHARMA for the partial fulfillment of the requirements of PGDM (Batch 2008-010), embodies the bonafide work done by him under my supervision.
---------------------------------------- Signature of the guide
ACNOWLEDGEMENT
Perseverance, inspiration and motivation have always played a key role in the success of any venture. A successful and satisfactory completion of any dissertation is the outcome of invaluable aggregate contribution of different person fully in radial direction, explicitly or implicitly.
Whereas vast, varied and valuable reading efforts lead to substantial acquit ion of
knowledge via books and allied information sources, true expertise exclude from collateral practical work and experience.
Not word have ever seemed so inadequate as now when I am endeavoring to
express my gratitude at the culmination of my project, to all those who have made it possible. Even the best efforts are vested without proper guidance and advice.
I am extremely thankful to Dr. D.P. Goyal (Director, IME) for his cooperation,
inspiration, keen supervision and the practical approach he gave to the dissertation. I am also grateful to Dr. Taruna Gautam (Asst. Director IME ), for providing
every support and her cooperation, motivation and a good guidance. I express my special thanks to my external project guide Mr. Rahul Sharma
(R.S.M. Kerakoll India P Ltd.) and Internal Guide Mr. Siddhrath Varma for their constant guidance, keen supervision and for providing every support and all facility incredible help to develop this.
I also pay my special thanks Mr. Kapil Kapoor (Senior Sales Manager, Kerakoll
India P Ltd.) for his helpful hand, kindness and throughout cooperation. I also pay my sincere thanks to Mr. Lalit Tyagi and Miss Simmi Bachani, for their
throughout co-operation. Further by blessing of GOD.I express my deep regards to my parents, my father
Shri Bharat Bhushan Sharma, my mother Smt. Santosh Sharma my sister and thanks to other family member and friends and all of my seniors who have painstakingly stood by me and made it possible through my studies.
Last but not the least I would like to thank all staff members of IME SAHIBABAD
for their kind help and co-operation. Ashutosh Sharma
EXECUTIVE SUMMARY
I started my project on 4th may by observing and understanding the various types of
products and its specifications and knows how to do site mapping and what is needed to do
the product promotion at Rohini Sector-9 Delhi, Corporate office of the KreaKoll india
private limited. There I met to Mr. Rahul Sharma and asked him to give detailed
information about the execution of the work. He has the sample outfits of the whole
products by means of which he gave me the detailed information. Four staffs are working
over there, one is to look after the computer center, and two are involved in the process of
generating sales & one Mr. Rahul Sharma himself, the regional sales manager.
The site mapping team is to do the site map, means to find out the various running
construction, from there the site mapping team collected information like site name,
contractor name, owner name, and architect name even the stage of the site. He then
provides the information to the architect team to do the further proceedings to generate the
sales. The architect team then goes to architect after having the appointment and tell them
about the various products of kerakoll. In the mean while the site mapping team is also
done some product promotion at the place of running sites and by telling about the product
to the contractors and site engineers. Apart from this the retail team is doing its further
effort to go for the retail penetration of the kerakoll products.
First of all I prepared the questionnaire according to work assigned to me. As per research
work, my respondents were site engineers or project managers. Initially I was assigned to
collect the information about the running projects in the Delhi and NCR region. I was also
asked to collect the information about the held up projects and the reasons for their helding
up. On the first day I started with the area of Sahibabad, Mohan nagar and Vashundhara
Ghaziabad. There I come to know about the problems of the customer acquisition &
retention and by means of which the running projects are delayed by so many renounced
construction companies like supertech, green vally, mahalaxmi group etc.
In the next phase of the training new work was assigned to me. I was asked to give the
details of the held up projects and its reason and also the new trends in construction
industry. That time I was little bit familiar to the construction industry. And by this time I
found so many held up projects some due to strategy problem related to acquisition &
retention of customer and some due to some other problems. The new trends in the
construction industry began to spread all over the country, as the people do not have much
and more time so they began to use more sophisticated technology and more advanced
products. Overall the Six weeks session, for me, was the opportunity to manipulate in
practical manner, whatever knowledge & learning I gain in 1st year.
and resilient materials with adhesives. At several places, it also provides special facilities
like they have there own running testing labs where all the tests related product has been
done in front of customer. This strategy is aimed at making Kerakoll a complete product
information & awareness. This also helps Kerakoll to attract the new construction
companies in India wanting to spend some quality time while their new projects have been
70%
55%50%
0%
10% 20% 30% 40% 50% 60% 70% 80%
Cements Adhesives & sealan
Waterproofing system
% of customer who influence what branded material they buys.
started. To target the customer, Kerakoll has priced several products aggressively, keeping
in mind the price sensitivity of this target customer. In addition, facilities like free testing,
valuable suggestions, etc are also provided to attract customer to the come, use & try these
products.
“IGI’s Third Terminal” projects Kerakoll as a place for the whole Construction
standard as well as product quality. When Kerakoll entered in India it was mainly
perceived as targeting the urban upper class project. Today it positions itself as an
affordable place to use without compromising on the quality, service and standard. This
commitment of quality of product and service in time, standard and relaxing atmosphere
has ensured that Kerakoll maintains a positive relationship with the customers.
Customer Perception and Customer Expectation
Customer perception is a key factor affecting a product’s success. Many potentially
revolutionary products have failed simply because of their inability to build a healthy
perception about themselves in the customers’ minds. Kerakoll being an internationally
renowned brand brings with it certain expectations for the customers.
Customers expect it to be an ambient, standard and a little sophisticated brand that respects
their values. The customer’s expect the brand to enhance their self-image. Customer
responses obtained at the, Mumbai outlet confirmed the fact that they connect strongly with
the brand. However, fulfilling some of the customer expectations like a broader product
variety provide Kerakoll a great scope for improvement.
Target Segment What is Kerakoll for customer?
Architects A complete Design & construction help as per product.
Contractors Standard product, quick service without affecting the work schedule
Retailers Hangout with customers, but keep it affordable.
Kerakoll’s Marketing Mix (5 P’s)
After segmenting the market, finding the target segment and positioning itself, each
company needs to come up with an offer. The 5 P’s used by Kerakoll are:
1. Product
2. Place
3. Price
4. Promotion
5. People
Product: How should the company design, manufacture the product so that it
enhances the customer experience?
Product is the physical product or service offered to the consumer. Product includes certain
aspects such as packaging, guarantee, looks etc. This includes both the tangible and the
non-tangible aspects of the product and service.
Kerakoll has intentionally kept its product depth and product width limited. Kerakoll
studied the behaviour of the Indian customer and provided a totally different menu as
compared to its International offering. It dropped professional adhesives, adhesives with
SAS and Self-levelling tectnology from the menu. India is the only country where Kerakoll
serve different menu as per condition. Even the all the product in India are 100% eco-
friendly. Kerakoll continuously innovates its products according to the changing
preferences and standard of its customers.
The recent example is the introduction of the Kerakoll H40 Flex is a professional single
component adhesive with SAS (Shock Absorbing System) technology and high
deformability, suitable for laying of Craftstone products onto most surfaces including brick,
block and fibre-cement sheet.
Kerakoll bring with it a globally reputed brand, world class construction chemical
quality and excellent customer specific product features.
Place: Where should be the product be available and the role of distribution
channels?
The place mainly consists of the distribution channels. It is important so that the product is
available to the customer at the right place, at the right time and in the right quantity.
Nearly Kerakoll’s has the entire running project on the bases of contract.
There is a certain degree of quality and standard that a customer feels each time he dines at
Kerakoll. There are certain value propositions that Kerakoll offer to its customers based
on their needs. Kerakoll offers standard product, good quality and great service. Now
Kerakoll have also started giving 0nline suggestion in Interior Design & construction at
their web portal. There are certain dedicated areas for customer where they can assets
while their construction/project can have some quality time together.
Price: What should be the pricing strategy?
Pricing includes the list price, the discount functions available, the financing options
available etc. It should also take into the consideration the probable reaction from the
competitor to the pricing strategy. This is the most important part of the marketing mix as
this is the only part which generates revenue. All the other three are expenses incurred. The
price must take into consideration the appropriate demand-supply equation.
Kerakoll came up with a very catchy punch line “You can build better” . This was to
attract the middle and high class consumers and the effect can clearly be seen in the
consumer base Kerakoll has now.
Kerakoll has certain value pricing and bundling strategies such as mobile testing labs,
product & construction consultant, service etc to increase overall sales volumes.
Promotion: What is the suitable strategy and channels for promotion of the
product?
The various promotion channels being used by Kerakoll to effectively communicate the
product information are given above. A clear understanding of the customer value helps
decide whether the cost of promotion is worth spending.
There are three main objectives of advertising for Kerakoll are to make people aware of
an item, feel positive about it and remember it. The right message has to be
communicated to the right audience through the right media. Kerakoll does its promotion
through television, hoardings and bus shelters. They use print ads and the television
programmes (costume in F1 race ) are also an important marketing medium for promotion.
Some of the most famous marketing campaigns of Kerakoll’s are:
“The innovative group”
“Substance for your ideas”.
“You can build better”
“Kerakoll: Passion, Ideas and Innovation”.
People: How to converge the benefits of internal and external marketing?
Kerakoll understands the value of both its employees and its customers. It understands the
fact that a happy employee can serve well and result in a happy customer.
Kerakoll continuously does Internal Marketing. This is important as it must precede
external marketing. This includes hiring, training and motivating able employees. This way
they serve customers well and the final result is a happy customer.
The level of importance has changed to be in the following order (the more important
people are at the top):
1. Customers
2. Front line employees
3. Middle level managers
4. Front line managers
The punch line “You can build better” is an attempt to show that the employees are loving
their work at Kerakoll and will love to serve the customers.
The Kerakoll’s Experience
Marketing in a services industry is becoming an increasingly complex challenge. The
paradigms of service marketing demand a passionate understanding of customer
expectations and perceptions, and linking them to product design & delivery as well as
operational planning. This is where Kerakoll’s has excelled due to its ability to successfully
integrate the customer’s perspective in its products and operations in a comprehensive
manner. The revamped menu in India is an example of Kerakoll’s strategy of integrating
the customer’s perspective in its products. And, the operational integration is evident from
Kerakoll’s emphasis on its suppliers as its customers as well as its treatment of its
consumers as co-producers of services.
The ultimate aim of Service Marketing is not just to become a Service Leader but to create
a Service Brand. The Service Delivery Process is the key to achieving this aim of Service
Marketing.
Core Product
Supplementary Process
Service Delivery Process
During the Service Delivery Process, each moment of interaction between the firm and the
customer, called “Moments of Truth”, helps understand the opportunities that a firm has
to win or lose the customer. For example, these “moments of truth” are created for
Kerakoll’s every time then customer came at the, Kerakoll’s meets the customer, every
time an attendant takes down the order from the customer , every time the manager
interacts with the customer, every time the attendant helps the customer guided the
customer towards the construction/project, etc.
Managing these “moments of truth” is a great challenge in Service Marketing especially
due to customer’s involvement as a co-producer of services (e.g. Kerakoll’s self-service
concept where in the customer not only collects the order but also giving them discounts).
However, Kerakoll's has been able to create a great experience for its customers by
understanding the nature of the entire Service Delivery Process and the various stages in
the process that are exposed to the customers. Transparency in the processes at its outlet
has helped Kerakoll’s bring the back office in its outlet at the front so that the customer is
able to know the operations and provide feedback on service design improvements.
Internal Customer Focus is equally important as External Customer Orientation in order to
win these “moments of truth”. Kerakoll’s focus on its People and their service delivery
methods therefore plays a very important role in creating a successful Service Brand. The
quality and the consistency of the service delivered by Kerakoll’s have been greatly
enhanced by the combination of the factors mentioned above. This has helped Kerakoll’s
become Service Leader and a successful Service Brand. This is evident from the fact that
very few of its customers opt for mobile testing labs, while most of them prefer to take
product guidance at the customer care and enjoy the Kerakoll’s experience.
“Moments Of Truth” “Moments Of Truth” “Moments Of Truth” “Moments Of Truth” –––– The Service EncounterThe Service EncounterThe Service EncounterThe Service Encounter
Customer
Service Delivery Points Service Provider
Kerakollizing the Suppliers
Kerakoll’s has changed the nature of not only the service industry but also the construction
chemical industry as well. Kerakoll’s realized that the battle between construction chemical
chains would increasingly be one of efficiency of supply, lower cost production and greater
desire to innovate. It pioneered with innovative and sophisticated product distribution and
packaging systems when the traditional product processors were unwilling or unable to
supply product items that Kerakoll’s demanded. They achieved amazing consistency by
devoting more attention than anyone else to field service and training at store level.
Production was concentrated in huge plants devoted exclusively to Kerakoll’s. Kerakoll’s
also started with tiny suppliers and grew with them displaying great loyalty.
Nowhere is the supplier loyalty more evident than in development of new, improved
products. Some of Kerakoll’s classic product items like etc. are results of supplier
innovation. Interestingly, it took Laticrete(competitor) more than three years before in
finally introduced its own version of construction chemicals. Thus supplier technological
expertise had given Kerakoll’s a product which was not a mere marketing innovation but a
technical one. Kerakoll’s attempted to squeeze labour out of the stores by moving more
preparation back into the processing plant, creating the opportunity to develop unique
products based on suppliers’ processing skills. For the first time, Kerakoll’s suppliers
became the focal point of new product development. This converted the construction
industry’s most fragmented distributed system into more efficient one which helped
Kerakoll’s reduce its inventory and manage costs effectively.
Importance of PLC in Kerakoll’s
The requirements of customers change over time and thus the product offering has to be
changed accordingly. What is the fashion today may be out of market within few weeks.
Thus continuous innovation is required.
To counter these changes Kerakoll has continuously introduced new products and has
phased out the old ones which were at the decline stage of their PLC. The introduction is
timed such that the new product does not cannibalize the product already in the maturity or
growth stage. Thus the secret lies in getting profits with different products in the different
stages of the PLC.
A perfect example of revitalising a product in decline
phase
The professional adhesives have been an important part of the Kerakoll menu worldwide.
But now it was in the stage of decline and was actually not generating proper return. In an
attempt to revitalize it, a new variant was introduced namely SAS Technology. This is
being placed with professional adhesives which has resulted in increase in the sales of
professional adhesives and has elevated it from to the decline stage. This is used to delay
the decline of a well established product which has the potential of generating further
revenue.
Competitors Analysis
Kerakoll’s has been a leading construction outlet in Mumbai. But the outlet understudy has
other competitors eating away into its market share. In addition to its traditional rivals—
Laticrete, Waber, Bal Endure—the firm encounters new challenges. Pidilite competes using
a back-to-basics approach of quickly serving up burgers for time-pressed consumers. On
the higher end, the Laticrete has become potent competitor in the quick service field, taking
away customers from Kerakoll’s. Perhaps in the new environment, fast, convenient service
is no longer enough to distinguish the firm. At this time, a new critical success factor may
be emerging: the need to create a rich, satisfying experience for consumers. This brings us
to service and experience based competition which Kerakoll’s can use for competitive
advantage against Pidilite. Keeping in mind the demographics of the area, Kerakoll’s has
testing labs enabled facility which impresses customers. It is for this overall “Passion, Ideas
& Innovation” experience that customers pay a premium over the other competitors.
Competition also reduces product lifecycle; inducing firms to revise their products
portfolios and to revisit their product market to understand changing needs, expectations
and perception of different market segments. The new SAS Technology would be
introduced in adhesives in professional & high class project. This would open up a whole
new revenue stream for Kerakoll’s by tapping into the construction and big commercial
projects (like-World square mall, etc) by providing a standard and wholesome solution.
This shows how demographic shift can affect the demand for products and services.
Kerakoll’s has anticipated these changes to maintain its competitive edge.
Two Dimensional Perceptual Mapping
SWOT Analysis
The Road Ahead
� Entry to Tier 2 and Tier 3 cities – The main target customer for Kerakoll’s is the
new urban Indian construction/projects. With the customer demographics constantly
changing and tectonic social and cultural shifts being observed in Tier 2 and Tier 3
cities due to globalization, the company is now expanding to Tier 2 cities.
� Rolling out Kerakoll’s innovation technology across all out – In India, the
company has recently launched its entry into the adhesives category. This is now
launched on a pilot testing labs basis on select area. In Mumbai, it available at the
main head office/outlets. The company views this category as a key growth driver
in future.
Awards and Recognitions & milestones
Milestones
1968
Realizing the huge potential to be tapped, Romano Sghedoni started producing tile
adhesive in his garage and founded Kerakoll in Sassuolo, province of Modena, at the heart
of worldwide ceramic industry.
1978
H40 Flex was invented, the world's first single-component SAS (Shock Absorbing System)
technology adhesive. This was a landmark moment for the ceramic industry as it provided a
secure way of fixing single-fired materials and homogeneous slabs in high stress
applications. It was also the first step on the road to success (Kerakoll Ceramic Range).
1990
Kerakoll ventured into the construction industry with high-resistance laying systems for
ceramic tiles and natural stone, leading the way and partnering construction companies
around the world. Single-technology, BME (Low Elastic Modulus) technology was
introduced, revolutionising the concept of special mortars for concrete (Kerakoll
Construction Range).
2000
Kerakoll acquired SLC, a top European company founded in 1963 in Brugine (PD) making
professional laying and finishing systems (screeds, primers, adhesives and paints) for wood
floors, carpeting, rubber and PVC. HP (High Protection) technology, the ultimate in low-
VOC varnishes for parquet, was launched after 4 years of research in Charlotte North
Carolina (Kerakoll parquet range).
2005
Biocalce was born, the world's first green brand and comprehensive range of natural
construction materials (mortars, NHL-based plaster/render and paint coats) for Building
Wellness and Historical Restoration. Building Wellness established itself as the new design
philosophy to safeguard health and improve the quality of life and living comfort.
2006
Kerakoll acquired Rank over, a company founded in 1972 in Zimella (VR) and leading
European business in the formulation, production and development of decorative coatings
for contemporary building and at the cutting edge of the production of natural paint coats
for building restoration.
2007
Kerakoll Design was born, the new cult brand for eco-friendly solid surfaces in
Cementoresina®. Love York, the contemporary home design collection, was unveiled for
the first time at the Milan FuoriSalone.
Kerakoll becomes The Innovative Group with 3 brand divisions:
Kerakoll - Biocalce - Kerakoll Design.
Awards and Recognitions
Number one for people management, speed of innovation, product reputation and high
standards of service. Having customers name us as their partner is a testament of the
quality of our products, services, attention to detail, reliability, efficiency and reputation.
These principles have taken Kerakoll Innovative Group to the very forefront of the
industry for competitiveness and quality of the company's Made in Italy strategy, a
rare accreditation awarded to the small number of elite businesses that continue to generate
value.
2009
At the end of May in Montecarlo during the World Entrepreneur Of The Year
Award Gian Luca Sghedoni, Kerakoll CEO, was named Best Italian Entrepreneur in
the world
2008
Kerakoll CEO Gian Luca Sghedoni was named national winner of the "2008
Entrepreneur of the Year" award, for "having succeeded in taking Kerakoll from the top
of the domestic market to being a top Italian-based business in Europe, before also
becoming a leading European group (Italian at heart) bound for the international arena."
2007
lthe Kerakoll Innovative Group business culture was commended in the 2007 Italian
competition watchdog based on the compared financial results of the top 1,700 businesses
as compiled by Mediobanca;: 1st for competitiveness and quality of strategy in the
chemical industries rankings and 6th in the stability table.
In November 2007, Kerakoll Innovative Group won the “2007 Entrepreneur of the year”
award, organised by the US service firm Ernst & Young. The Group CEO Gian Luca
Sghedoni triumphed in the Innovation category, winning the award for "dedication to
creating innovative products and making constant advances in scientific research, which
translate into newer, higher standards of performance and a competitive advantage capable
of sustaining further growth".
2006
The 2006 Italian competition watchdog saw Kerakoll place 12th overall, 1st for
competitiveness and quality of strategy in the chemical industries standings, and 3rd for
stability, having maintained excellent ratings over the three-year period.
2005
Kerakoll, the only business in the applied chemical sector for the construction industry,
ranked 8th in the 2005 Italian competition watchdog.
2004
Kerakoll ranked 21st in the 2004 Italian competition watchdog.
2003
Kerakoll was the second-most dynamic company in Italy (+38%) for research,
innovation, marketing and internationalization in Mediobanca rankings.
CHAPTER - 3
DESCRIPTIVE WORK OF
SUBTOPICS OF THE
STUDY
Descriptive work of subtopics of the study
The project undertaken was to know the recent trends and the effect of financial crunch on
construction industry to achieve competitive edge over various competitors and to know
about the present market demand and situation to determine the best marketing strategies
for the sales. Basically my research work is divided into three parts:
• Market survey core site mapping.
• Analysis of various held up projects.
• Working procedure.
Market Survey
This was the first part of the project. This part deals in visiting so many running sites in the
NCR region to know the status of that site like stage owner contractor names etc.. The
survey will be helpful in understanding the current market scenario as well as the new
emerging trends in the construction industry. The main purpose lies in interacting with the
project managers and site architects who are the real promoter of the product. The
comments regarding the various products of various brands are gathered and in particular
of Kerakoll and by that we have to do the product promotion of Kerakoll. The positives and
negatives of each brand are noted. The issues such as water proofing leveling an laying of
tiles are to be observed. The basic purpose of market survey was to understand the markets
and the pros and cons of construction industry.
Analysis of Various Brand Preference of Product
This is the second part of the project. This part deals with the knowledge of various
product & consumer preference. The reason of their held up, their restart time etc.. There
may be various reasons of customer acquisition & retention and some personal problem.
Working procedure
Here we have to approach various architects, contractors, owners, project managers, and
various structural consultants etc. we are doing there the product promotion of Kerakoll.
We have to then go to some retailers and also tell them about the Kerakoll product. After
talking with the architects we try to analyze the recent marketing trend and try to establish
the new procedure for the sales and demand forecast. We have to submit Daily report about
each market and full information about each Site in those markets. Questionnaire and
observation method was used for collecting the information.
My own contribution
As far as my contribution is concerned I regularly visit to market, goes to locate different
running sites and found so many sales generating future prospects sites and used to meet
the concerned person’s like project managers, architects and contractors. I also wanted to
meet to the site owners but strange the site owners never come to these sites or may come
rarely.
Then I specially met to the various architects to know about the architectural view about
this topic, about the effect of financial crunch on site slowdowns and the new emerging
trends in the construction industry. My project is about understanding the building
chemical industry and in particularly the awareness of the Kerakoll products in India. This
project is helping me in getting practical experience about marketing research, channel
distribution, sales, and developing new strategies for demand forecasting and the new ideas
for product promotion.
CHAPTER - 4
RESEARCH
METHODOLOGY
Objective of the Study
To identify prospective markets for the company
To understand customer perceptions about the product and expectations from the
company.
To identify the target market for the company.
To carry out competitors’ analysis.
To make recommendations to the company to increase sales and enhance brand
image
.
Type of Research
Exploratory and Descriptive and Causal Research
Exploratory research is a type of research conducted because a problem has not been
clearly defined. Exploratory research helps determine the best research design, data
collection method and selection of subjects. Given its fundamental nature, exploratory
research often concludes that a perceived problem does not actually exist.
It seeks to find out how people get along in the setting under question, what meanings they
give to their actions, and what issues concern them. The goal is to learn 'what is going on
here?'
On the other hand descriptive research is aimed to find the complete description about an
existing problem or phenomenon
Here, during my project, the main focus was to find what is the effect of customer
acquisition & retention and how the market is facing the new emerging trends in the
building industry, and the retailers, contractors and architects are actually thinking about
the Kerakoll products. What are the attributes and reasons other brands are having by
means of which they are defeating Kerakoll products?
Causal research is to associate the cause and effect relationship of two reasons. In my
project I am proving relationship the relationship between site slowdowns and financial
crunch and the association between new emerging trend and financial crunch, by using chi-
square test.
Sampling methods
Process of selecting a sample from a population is called sampling. In sampling, a
representative sample or portion of members of a population or process is selected and then
analyze. Based on sample result called statistics,
Statistical interferences are made about the population characteristic. For example, a
political analyst selects specific or random set of people for interview to estimate the
proportion of the votes that each candidate may get from the population of the voters.
When I started my project, my external guide asked me to do the site mapping, means to
visit the running sites and to collect the information from there and to forward that
information to the next level to perform their tasks. And above all to do the product
promotion there, and find out the stage of the sites and try to correlate the site stage and the
usage of the Kerakoll product in those projects.
Sample area
The sample areas are Ghaziabad including Vashundhara, Ram prashta, Indirapuram and
Sahibabad, Noida (Sec-18, 58, 59, 60 62, 63) and Greater Noida including Surajpur Villege
and Kasna Vilege and different locations of Delhi including East, West, South and Central
Delhi.
Methods of Data Collection
The task of data collection begins after we define the research problem. While deciding
about the methods of data collection to be used for the study, the researcher should keep in
mind two types of data viz. primary and secondary. The primary data are those data which
are collected for the first time and thus it is original in nature. The secondary data on the
other hand are those which have already been collected by someone else and which have
already been passed to the statistical process. The researcher would have to decide which
sought of data he would be using for his study and accordingly he will have to select one or
the other method of data collection. The methods of collecting primary and secondary data
differ since primary data are to be originally collected, while in case of secondary data the
nature of data collection were is merely that of compilation.
Collection of primary data:
There are several methods through which we can collect primary data. Some of these are:
Observation methods:
In observational studies, the investigator doesn’t ask question to seek clarification
on certain issue instead he records the behavior, as it occurs, of an event in which he
is interested. Sometimes mechanical devices are also used to record the desired data.
Interviewing:
Interview can be conducted either face to face or over telephone. Such interviews provide
an opportunity to establish a rapport with the interviewer and help extract valuable
information.
Questionnaire:
It is formalized set of question for extracting information from the target respondent. The
form of the question should correspond to the form of required information. The three
general form of question are dichotomous (yes/no type), multiple choice and open ended.
Here, in this project, I have used structured questionnaire to collect the responses from the
project managers, contractors and architects. The questionnaire has been planned very
carefully and I have tried my best to include every necessary question which are relevant
for the purpose of this study. The questionnaire has three types of questions – dichotomous,
multiple choice and open ended question.
Collection of secondary data:
Secondary data means data that are already available i.e. they refer to the data which have
already been collected and analyzed by someone else. When the researcher utilizes
secondary data, then he has to look into various sources from where he can obtain them. In
this scale he is certainly not confronted with the problems that are usually associated with
the collection of original data. Secondary data may either be published or unpublished.
Usually published data are available in various publications of the central, state, and local
bodies. In technical and trade journals, books magazines, newspaper, reports and
publication of various associations connected with business and industry, banks, stock
exchanges etc.
Most of the secondary data I have used in this project have been collected from various
websites through net. Some of the basic information was provided by the Company
(Kerakoll).
Sample Size
The target sample size is 100 and the research was conducted in almost Delhi and NCR
Region. .This is totally a judgment sampling .The Site selection was totally depending
upon us.
Project period:
From 4th May 2008 to 25st June 2008
CHAPTER 5
Data Analysis
&
Interpretation
DATA ANALYSIS
RESEARCH ON CONSUMER :
Study-I
1. Which is your favourite product at Kerakoll’s?
CONCLUTION:-
In this analysis, I found that most of the likes product which is used in making basic
structure of building, that is P5.
Favourite Product
6%
18%
12%
34%
12%
8%
10%
KERACEM
IDROBUILD H40 FLEX P5
SUPER
EPOXY
OTHERS
2. Is the product line in Kerakoll’s adequate?
CONCLUTION:-
In this analysis, I found that 38% of product line in Kerakoll’s adequate is average.
Is the product line adequate?
28%
34%
38%YES
NO
AVERAGE
3. What is the main problem you faced at Kerakoll’s?
CONCLUTION:-
In this analysis, I found that there is no problem in Kerakoll excepted price of product.
Problems Faced in Kerakoll's
24%
4%
16%
16%
40%
PRICE
DELIVERY TIME Congestion
Other
No Problem
4. Which area do you think needs the most improvement?
CONCLUTION:-
In this analysis, I found that most of the need in improvement of product variety because
customer has problem justify the product on their use.
Improvement Required
10%
6%
30%
24%
20%
10%
Delivery Time
Capaciousness
Product Variety
Prices
Offers anddiscounts
Others
5. What is the first thing that strikes your mind about Kerakoll’s?
CONCLUTION:-
In this analysis, I found that if customer go to the market the first thing strikes in its mind
that is Adhesives.
First Thing about Kerakoll's That Strikes Customer's mind
30%
26%
18%
4%
22%AdhesivesQualityPriceValue for MoneyService
Study-II
Relating to socio economic profile of respondents by Chi-Square test (X2) is presented in
the following tables:-
1. Relationship between consumer preference and Brand name:-
Hypothesis:
There is no significant association between the consumer preference and the brand
preference for construction chemical industry.
Table-1
Type of Construction
Brands Institutional Commercial Residential Industrial Total
Laticrete 9 10 7 6 32
Kerakoll 5 8 6 7 26
Pidlite 6 3 4 5 18
Bal Endure 2 5 2 4 13
Waber 4 2 2 3 11
TOTAL 26 28 21 25 100
INFERENCE:
From the above table the percentage of highly preferred respondents is more in the
commercial. It was followed by the groups Institutional, In medium preference the highest
percentage is in commercial group.
2. Relationship between Income level and brand preference:-
Hypothesis:
There is no significant association between income level and brand preference for
construction chemical industry.
Table-2
Income (Rs/ Month)
Brands Less 50,00,000 50,00,000
To
1,50,00,000
1,50,00,000 &
Above
Total
Laticrete 8 20 10 38
Kerakoll 8 15 2 25
Pidlite 9 3 2 14
Bal Endure 8 2 4 14
Waber 3 5 1 9
TOTAL 36 45 19 100
INFERENCE:
From the above table the percentage of highly preferred respondents is more in the group
above Rs.50, 00,000 To 1,50,00,000. It was followed by the groups Rs1,50,00,000 &
above, In medium preference the highest percentage is in Rs.50,00,000 To 1,50,00,000
group.
CHI-SQUARE TEST:
Chi-square test is applied to test the goodness of fit, to verify the distribution of observed
data with assumed theoretical distribution. Therefore it is a measure to study the divergence
of actual and expected frequencies; Karl Pearson’s has developed a method to test the
difference between the theoretical (hypothesis) & the observed value.
Chi – square test (X2) = (O – E)2 / E
Degrees Of Freedom = V = (R – 1) (C -1)
Were,
‘O’ = Observed Frequency
‘E’ = Expected Frequency
‘R’ = Number of Rows
‘C’ = Number of Columns
For all the chi-square test the table value has taken @ 5% level of significance.
CHI – SQUARE TEST IS CONDUCTED TO EXTENT THE RELATIO NSHIP
BETWEEN
THE CUSTOMER PREFERENCE AND BRAND NAME:
Hypothesis:
Ho: There is no significant relationship between customer preference and brand name.
O E O-E (O-E)2 (O-E)2/E
9 8.32 0.68 0.462 0.056
5 6.76 1.76 3.098 0.458
6 4.68 1.32 1.742 0.372
2 3.38 1.38 1.904 0.563
4 2.86 1.14 1.30 0.455
10 8.96 1.04 1.082 0.121
8 7.28 0.72 0.518 0.071
3 5.04 2.04 4.162 0.826
5 3.64 1.36 1.850 0.508
2 3.08 1.08 1.166 0.379
7 6.72 0.28 0.078 0.012
6 5.46 0.54 0.292 0.053
4 3.78 0.22 0.048 0.013
2 2.73 0.73 0.533 0.195
2 2.31 0.31 0.096 0.042
6 8.00 2.00 4.00 0.500
7 6.50 0.50 0.250 0.038
5 4.50 0.50 0.250 0.056
4 3.25 0.75 0.563 0.173
3 2.75 0.25 0.063 0.023
TOTAL 4.914
Degree of freedom - 12
Table value - 21.026
Calculated value - 4.914
INFERENCE:
Since the calculated value is less than the table value. So the Null hypothesis is accepted.
Hence, there is no significant relationship between Customer preference and Brand name.
CHI – SQUARE TEST IS CONDUCTED TO EXTENT THE RELATIO NSHIP
BETWEEN
THE CUSTOMER INCOME LEVEL AND BRAND PREFERENCE:
Hypothesis:
Ho: There is no significant relationship between customer income level and brand
preference.
O E O-E (O-E)2 (O-E)2/E
8 13.68 5.68 32.26 2.358
8 9.00 -1.00 1 0.111
9 5.04 3.96 15.68 3.111
8 5.04 2.96 8.76 1.738
3 3.24 -0.24 0.058 0.018
20 17.10 2.90 8.410 0.492
15 11.25 3.75 14.063 1.250
3 6.30 -3.30 10.89 1.729
2 6.30 -4.30 18.49 2.935
5 4.05 0.95 0.903 0.223
10 7.22 2.78 7.728 1.070
2 4.75 -2.75 7.563 1.592
2 2.66 -0.66 0.436 0.164
4 2.66 1.34 1.796 0.675
1 1.71 -0.710 0.504 0.295
TOTAL 17.761
Degree of freedom - 8
Table value - 15.507
Calculated value - 17.761
INFERENCE:
Since the calculated value is more than the table value. So the Null hypothesis is rejected.
Hence, there is significant relationship between Income level and Brand preference.
FINDINGS:
Customer Preference:
� The two-way table tells us the high satisfaction is derived by the respondents who use
construction chemical for building commercial sites group.
� Chi-squire test reveals that there is no significant relationship between the Customer
preference and brand name.
Income level Of Customer:
� The two-way table tells us the high preference is derived by the respondents who are
more in the group above Rs.50, 00,000 To 1, 50, 00,000 in a session of project.
� Chi-squire test reveals that there is significant relationship between the Income Level of
customer and Brand preference.
CHAPTER 6
Conclusions, Suggestions
and
Limitations
Conclusion:
After analyzing all things about Kerakoll the leading construction chemical industry in the
World. We can say that its product quality, service, standard, etc are much better than its
competitors as customer point of view and there expectation & perception but Kerakoll has
to more for Indian market, as we know it is a some of biggest market for construction in the
world.
As we know max products of Kerakoll are in premium segments, so it has to do more for
main for middle class market also, because in India more 70% are middle class & there is
great scope for improvement.
At last Kerakoll as a leading name in the consultancy and end-to-end technical support
field construction market & its products are compairless to its any of competitor in sense
of-
1.Product Quality.
2.Service.
3.Product Variety and many more…..
SUGGESTIONS:
Understand the connections between the lifestyle and expenditure characteristics of
customers, their propensity to purchase one product or brand over another, and leverage
this understanding for competitive advantage.
Improve direct marketing response by ensuring they are targeting the right households at
the right time, using the right media with the right message.
Leverage current consumer data to make better strategic decisions about products,
marketing and locations.
Increase customer loyalty and retention with a scientific, data driven approach to analytical.