Study of Consumer Behavior of Sanitary Ware Appliances Final Presentation

CONSUMER BEHAVIOR ANALYSIS CONSUMER BEHAVIOR ANALYSIS OF THE PREMIUM BATHROOM OF THE PREMIUM BATHROOM

PRODUCTS PRODUCTS

Institute for Technology & Management, Kharghar, Navi Mumbai2/09/2009

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A PresentationA PresentationOnOn

Agenda

Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Suggestions Limitations

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Agenda

Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations

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Industry Overview

One of the fastest growing country for sanitary ware consumption.

Government policies. (HUDCO, The National Housing Policy )

20 million housing units demand and 115 million reconstruction for improvement.

Introduction of new manufacturing technologies. Strengthening dealers and companies opening own

retail outlet in metros.

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Industry Overview

Divided into 2 major sectors

Organized Sector – 5 major companies

Unorganized Sector – regional guerillas Cost of Production in India is low.

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Industry Overview

SANITARYWARE INDUSTRY STATISTICS :

World production:  187 Million pieces

India's Share: 6.7 Million pieces.

World ranking (in production): not in the Top 10 (India A/c

for 3.30%)

Global Industry Growth Rate: 5-7%

Growth Rate (India Domestic Market): 10%-15%

Organized sector:

  % Share of Production: 43%

No. of units: 6

  Production Capacity: 103300 M.T. per annum

  Actual Production: 95000 M.T. per annum

Unorganized sector:

  % Share of Production: 57%

  Production Capacity: 136700 M.T. per annum

    Actual Production: 120000 M.T. per annum

Source: Indian council for ceramic tiles & sanitaryware -2008

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Agenda

Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations

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Grohe – Brief Introduction

Friedrich Grohe acquired Berkenhoff & Paschedag, a manufacturer of bathroom fixtures that had been in business since 1911.

Post world war II, it was renamed after the owner. In 1961,founded its first foreign subsidiary, in France The death of company founder Friedrich Grohe in 1983 The conflict over use of Brand name “Grohe” settled in the

early 1990s a world market share of roughly 10 percent in 2001

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Grohe – Brief Introduction

Late1980s,Grohe had become one of Europe's top manufacturers of kitchen and bathroom fixings.

Sales had climbed to over 700 million Euro and Exports accounted for 70 percent of the total.

In 1991 Friedrich Grohe was transformed into a public stock company under the name Friedrich Grohe AG.

Raised Friedrich Grohe's public recognition received many German marketing award in 1996.In June 1999, Charles R. Grohe, sold their stakes in the company.

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Awards For It’s Product Designs

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Grohe – Brief Introduction

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11Product-Mix width

Faucets Showers Thermostats Accessories

Bathroom:Allure Rainshower Grohtherm 2000 SkateAria Relexa Grohtherm 3000 SurfAtrio Tempesta Free handerEssence SenaArabesk AquatowerSinofina ClassicTenso MovarioConcetto LineareKitchen:AtrioEssenceMintaK4ZedraAriaAliraEuroplusEurodiscEurostyleEurosmartClassic lineCostaArabesk

Agenda

Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations

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Internship Objectives

To understand the consumer’s buying behavior of luxury sanitary products.

To prepare a database of potential customers of Grohe products.

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Agenda

Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations

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Research Proposal

Sub-Objectives

 1. Choice of Appliances is independent of Brand image of product.

 2. Aesthetics of product is given priority over other attributes of kitchen & bathroom appliances.

 3. Bathrooms are considered important portion of house by the population.

 4. People are ready to pay more than 150,000/- INR for new bathroom / kitchen appliances.

 5. People always consider new brands for renovation.

 6. Brand image of appliance is closely co-related with advertisements effectiveness.

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Research Proposal

Research methodology

Exploratory research method Method of Sampling

Convenient sampling

Individual Interviews Sample size

Builders/Architect = 96

End consumer = 48

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Agenda

Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Swot Analysis Recommendations Limitations

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Observations and Findings

Brand awareness Grohe is week in brand

awareness. Jaquar,Hindware

& Parry’s enjoy highest brand

awareness.

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Observations and Findings

Source of info.

Hoardings are major source of information for the consumers other than T.V. & Newspapers

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Observations and Findings

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Importance of branded appliances

Observations and Findings

Willingness to spend

Majority of respondents are not ready to pay 50,000/-150,000 /- in order to get their dreamy bathrooms.

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Observations and Findings

Rating for various media ‘Seeing is believing’ is the apparent

message from ratings. Radio/FM

ads are lowest on ratings

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Architects/Designers/Plumbing Contrator

Observations and Findings

Hypotheses Testing Hypothesis : 1 Choice of Appliances is independent

of different brands available in the market. Hypothesis2. Aesthetics of product is given priority

over other attributes of kitchen & Bathroom appliances.

Hypothesis 3: Bathrooms are considered important portion of house by the population.

 Hypothesis 4: People are ready to pay more than 150,000/- INR for new bathroom / kitchen appliances.

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Observations and Findings

Hypothesis results

Hypothesis 1:- Calculated value is coming inside the limits of acceptance region so null hypothesis is not rejected. Thus the brand image is affecting a consumer’s choice and an important step in product selection.

Hypothesis 2:- Zcal value for “Ease of use” & “Aesthetic” taking as two variables is deep into rejection region, we have enough evidence to reject the null hypothesis that aesthetic is always given priority over other features of the bathroom appliances. We can also conclude that we do not have adequate information to give prioritise to attributes.

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Observations and Findings

Hypothesis results Hypothesis 3:- Since the Ztab > Zcal ,null hypothesis is rejected

& We can clearly predict bathrooms are not just a portion of a house.

Hypothesis 4:- Since Zcal < Ztab , hence we can conclude that null hypothesis is rejected and hence we can accept the hypothesis that is or the Target consumer ready to pay large sum of moneyfor a new bathroom/kitchen (Master Bathroom)

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Swot Analysis

 STRENGTH:Worldwide market leader in premium bathroom fittings.Presence throughout 130 countries.Strong financials with a turnover of Euro 1010 million.The brand is synonymous to innovation and reliability.Superior design that are environment friendly.

WEAKNESS:Weak distribution network in India.Lack of manufacturing plant in India which further ups the already high price of the products.Lax marketing efforts in a new market like India where huge marketing efforts are to be put in to vie for consumer’s attention.Immensely high priced products for a price sensitive market like India.

OPPORTUNITIES:Booming construction and infrastructure development in South Asian and other developing countries.Higher disposable income with the Indian consumer as compared to earlier era when austerity was the prime virtue as against ostentatiousness of present times.Can introduce some lower cost variants to tap the middle income group market in India.

 THREATS:Foreign players like Hans-Grohe have tied up with domestic giants like Jaquar to make use of their distribution channel.Price sensitivity of developing economies can cause the plans and forecasts of a company to go haywire.Aggressive marketing by local players like Jaquar which has a superior reach throughout India

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Agenda

Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Recommendations Limitations

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Recommendations

1. Brand Awareness is desired to be improved among the consumers

2. A part payment plan for the Grohe customers is to be introduced

3. The delivery of high technology quality product with lesser glitches is to be assured.

4. An after sales service force is considered necessary to be developed.

5. Search engine marketing of Grohe website is rudimentary.6. Grohe cube virtual bathroom web tool need to be

improvised.7. Implementation of major SCM software.

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Agenda

Industry overview Grohe-brief introduction Internship Objectives Research Proposal Observations Recommendations Limitations

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Limitations

The analysis of potential products is limited . Considerable differences and inherited feature in

consumer tastes, fashions and preferences . Communication. Biased views. Wastage of time. Low sample size might not be implemented in

other cities.

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Reference Books

1. William C. Zikmund - Business Research Methods

2. Kent Black – Business statistics for contemporary decision making 

3. Malhotra, Dash – Marketing Research

4. Phillip Kotler, Kevin Keller – Marketing Management (13-edition)

5. Grohe Product Manual given by the company guide

Websites

www.grohe.co.in

www.Tagcrowd.co.in 

www.ictas.org 

www.adwords.google.co.in

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