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Estimation of market size and potential of fibre cement boards for mumbai market

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  • 1. 1 A PROJECT REPORT ON ESTIMATION OF MARKET SIZE AND POTENTIAL OF FIBRE CEMENT BOARDS FOR MUMBAI MARKET FOR EVEREST INDUSTRIES LTD. SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF TWO YEAR FULL TIME COURSE MASTER IN BUSINESS ADMINISTRATION SUBMITTED BY ANKIT SODANI (2005-2007) BRACTS VISHWAKRMA INSTITUTE OF MANAGEMENT PUNE - 411048
  • 2. 2 CERTIFICATE TO WHOMSOEVER IT MAY CONCERN This is to certify that Mr. ANKIT SODANI, a student of our institute VISHWAKRMA INSTITUTE OF MANAGEMENT has successfully completed the project on ESTIMATION OF MARKET SIZE AND POTENTIAL OF FIBRE CEMENT BOARDS FOR MUMBAI MARKET with specific reference to EVEREST INDUSTRIES LTD. undertaken in EVEREST INDUSTRIES LTD. from 1st June 2006 to 31st July 2006 This is the original study of Mr. ANKIT SODANI. The sources used by him have been acknowledged by in his report. The report is submitted in the partial fulfillment of two years full time course in MASTER IN BUSINESS ADMINISTRATION (2005 2007) as per the guidelines of the Pune University. Prof. Yuvraj Lahoti Dr. Sharad .L. Joshi (PROJECT GUIDE) (DIRECTOR)
  • 3. 3 Preface As a part of M.B.A. it is required to present a project report. For this purpose one has to associate him self / her self with an industrial / commercial period of minimum eight weeks. The project contains a comprehensive treatment of marketing research and its result in theoretical form as well as graphical presentation this will enable its implication for the company, its product, service and the consumer.
  • 4. 4 Acknowledgement It is always a difficult task to acknowledge all those who have been of tremendous help in an academic project of this nature and magnitude nevertheless, I have made a sincere attempt to express my gratitude to all those who have contributed to the successful completion of this project through this project report. As I presents this report on Estimation of Market Size and Potential of Fibre Cement Boards For Mumbai Market In Everest Industries Ltd. West Zone Mumbai. I am aware of the humanity and gratitude towards all the individuals who have so kindly offered me their time, skill, knowledge, advice, and facilities, or guidance. I am extremely grateful to Mr. Rahul Chopra Vice President (Marketing) Everest Industries Ltd. West Zone Mumbai (Company guide) for giving me this opportunity to develop this project and making all the resources available to me with the intention of success of this project. I would also like to thanks Mr. V. P. Singh Manager (Marketing) of Everest Industries Ltd. West Zone Mumbai (Company guide) for his idea, advice, knowledge, and about all his support throughout this project, which was constant source of inspiration. I also take this opportunity to express my deepest gratitude to my Project Guide Prof. Yuvraj Lahoti (College guide) for his constant support, guidance and encouragement. My special thanks to MANAGING DIRECTOR of EVEREST INDUSTRIES LIMITED INDIA for giving me the permission and opportunity to work in his esteem organization for 2 months internship program. Last but not the least I would like to thanks my parents and my all family members, all the employees and all my friends who have always been a strong support during the entire course of my project and without their co-operation the completion of this project would not have been possible. ANKIT SODANI
  • 5. 5 Sr. No. Title Page No. 1. Executive Summary 1 2. Introduction to the Topic 2 3. Reason for Selecting the Topic 3 4. Objective of the Project 4 5. Company Profile 5 6. SWOT Analysis 12 7. Product Profile 13 8. Theoretical Background 16 9. Research Methodology 19 10. Data Analysis 22 11. Observations and Findings 35 12. Limitations 36 13. Conclusion 37 14. Suggestion and Recommendation 38 15. Bibliography 39 16. Annexure 40
  • 6. 6 1. Executive Summary The following report deals with the project undertaken for Everest Industries Ltd. The company is in the manufacturing & marketing of fibre cement roofing & building material products. It manufactures non-asbestos plain boards. It also manufactures corrugate roofing sheets, flat fibre cement boards and E BOARD CLASSIC (designer cement board). Everest is the first company to launch fibre cement boards and designer boards first time in India. Everest is the only company who manufacture quality non-asbestos cement boards in India. The project is the study regarding ESTIMATION OF MARKET SIZE/POTENTIAL OF FIBRE CEMENT BOARDS FOR MUMBAI MARKET . The main objective of this project was determining the market size and potential. The secondary objective was finding market share of Everest Ind. And the competitors in Mumbai for fibre cement board market, potential in project and retail segment, problems and weaknesses of the Everest fibre cement boards and suggestions or recommendation for them. This project was done particularly for fibre cement boards. The above tasks were very challenging quite learning, which completed through an intensive research conducted. A systematic approach was used to achieve the above-mentioned objective. To minimize the error and gather the correct information, survey technique was used and structured questionnaires were prepared for dealers and retailers, which include both close ended and open-ended questions. Personal interviews and observation also proved very useful to collect the right information. For this purpose, a sample area was taken under consideration The project not only deal with the information regarding Everest cement boards but of all other brands in the Mumbai market, the Everest cement boards had some problems and findings, which work obstacles in the success of it in the market. The report also deals with the suggestion and recommendation for them company need to adopt in order to improve the market size and potential of the brand. The margin of error was kept as low as possible but existence of error would have occurred because of limited time span.
  • 7. 7 2. Introduction to the Topic The topic of my summer project is Estimation of market size and potential of fibre Cement Boards for EVEREST INDUSTRIES LTD; is first Indian manufacturing company of fibre cement boards and designer cement boards. In this project, it needs to understand the exact market potential of Fibre cement Boards in Mumbai market and also the existing market share of E-Board .As Everest is a pioneer in Fibre cement building products in India since 1934, always try to be an innovative company and offers various customized products in the market. The main competitors existing in the market are Charminar, Bison boards, swastik, Hilux, and to some extent Plywood & MDF, and also some other small brands. EVEREST is the oldest and first company in this industry in India but its product E BOARD and E BOARD CLASSIC is trying to reflect their image as a Brand and trying to reach at a height where nobody can even imagine. The brand is very popular and oldest in India. EVEREST brand is well known in Mumbai. The project for estimating market size & potential of the brand, market position, size/potential of other brands, reasons for not expected potential of the brands after well known of brand in Mumbai only. Company s weak points and other problem and solution and suggestion for them so that company may be able to know where does the brand stand? and what steps company needs to be taken in order to increase the existing market potential of company, largest market size or share of the brand? So that it may increase expected market share of company. Any company cannot afford to be ignorant in the competitive market if they want their products to be successful.
  • 8. 8 3. Reason for Selecting the Topic The topic for the project as mention earlier was to TOPIC which was not only includes the market size, potential and, market share of the brand but much others information too. I was asked to collect all the information regarding brand and all different flat cement board brands are available in the market, their market share, potential, market size, E BOARD and E BOARD CLASSIC, its weak point or problem and suggestion or recommendation for them. Thus, there was immense work to do be done. This all does include a very intensive Market research. Actually it involves field work as well as deep study of market mix of the brand. An intensive market survey of dealers and retailers were needed to complete. This topic was related to purely market survey and it was real market research. Thus, the topic was interesting, challenging, learning, and very much real. The company was facing the problem of availability, timely delivery / supply, quality, and service, as compared to other brands in the market; the project was a real challenge and so become interesting. As the product was a BUILDING MATERIAL product and BUILDING MATERIAL sector is the most booming, growing and competitive sector at this era. In this sector much more scope of learning and much opportunity. This is the sector, which gives that experience that no any other sector can give. No marketer can survive in the competition in this sector without sound strategy and policy. Therefore the project was challenging as well as learning. I had to study the product market in depth and information regarding brand (E BOARD and E BOARD CLASSIC) not only for us but also about competitors, their strategy, their strengths and company s weaknesses. This all involves a deep market research and thus were quite challenging and knowledge. Thus, the project was great opportunity for me and as I always wanted to have experience of the competitive BUILDING MATERIAL sector, hence I opted for the project.
  • 9. 9 4. Objectives Title of the Project Estimation of Market Size and Potential of Fibre Cement Boards for EVEREST INDUSTRIES LIMITED Objective of the Project 1. Primary Objective The primary objective of the project is to determine the total potential of fibre cement boards for Mumbai market. 2. Secondary Objective 1. To determine the Market Share of E-Board & Competitors 2. To determine the Present Market Position of E-Board 3. To determine the sale in project as well as retail segments 4. To identify the problems or any kind of steps that needs to rectify 5. Suggestions and Recommendations Scope of the Project The project was done for the fibre cement boards. It was completed for the Everest industries ltd Area for the study Mumbai and Thane district Sample size was 210 It covers only west zone information.
  • 10. 10 5. Company Profile EVEREST INDUSTRIES LIMITED About Company Everest Industries Limited is the pioneer of the fibre cement products in the country and is one of the fastest growing building material companies in India. It started operation in 1934 at Kymore in Madhya Pradesh and today has 3 other plants at Nashik in Maharashtra, Podanur in Tamil Nadu, and Kolkata. All the manufacturing units are IS / ISO 9001:2000 certified. The Kymore and Podanur in Tamil Nadu manufacturing units are also accredited with IS / ISO 14001, the global standard for environment management system. The company has an all India presence with a wide distribution network. It has a modern R&D center at Nashik. The company has a wide and well organized sales and distribution network all over the country with a turn over of around RS. 200 crore (RS. 2 billion), the company is going through a phase of consolidating its recently launched new generation products and maintaining the leadership status in fibre cement industry. Everest Industries Limited is not only a manufacturer of corrugated roofing sheets, accessories and cement board but also provide complete solution to your need of industries and commercial roofing, exterior and interiors. Everest Industries Limited pioneered fibre products in Asia and is one of the fastest growing building material company in India. It started its operations in 1934 and today, has ultra modern exporting facilities spread across India. All exporting units are as per IS / ISO certified. We offer a versatile range of fibre cement products covering both roofing as well as boards. Our product range has gained wide acceptance in Asia, Africa, south pacific and Europe.
  • 11. 11 Everest Industries ltd. is committed to retaining leadership in building material through constant product innovation. Everest is also first company in Asia to introduce compressed cement boards E Boards Endura . We have experience in producing over 600 million sq. mt. of roofing and over 15 million sq. ft. of fibre cement boards. Our currently capacity for producing non asbestos fibre cement roofing and boards are 4.6 million sq. ft. and 10 million sq. ft. per annum respectively. All our products conform to International Standards and Manufactured with Latest European Technology. We believe in providing more durable, more efficient, market oriented superior alternatives to traditional building materials. This is achieved by continuous product and process development though strong R&D and technically competent manpower. The combinations of innovative building solutions along with our trained manpower enable us to provide excellent pre and post sales service. E Board range of fibre cement boards is manufactured from a homogenous mixture of Portland cement, treated cellulose fibres finely ground silica and quartz and other select mineral fillers at a state of the art unit using sophisticated, digitally controlled processes. The principal components of the mixture are cement and cellulose fibre. Cement acts as a hydraulic binder and the cellulose fibres interlock with the cement and quartz matrices to add strength to the boards. Absolutely no asbestos is using during the entire process, making our products 100% asbestos free.
  • 12. 12 Company Photo Network The Company has direct sales Offices in each of the metro cities in India supported by Sales representatives and Dealers all over the country. The Company has also exported its highly successful product of fibre cement board, designer board, acostyle and hi tech to the US and to a smaller extent, the Middle East, Netherlands, Italy, Chaina and Germany.
  • 13. 13 NEW DELHI (HEAD OFFICE & NORTH ZONE) MUMBAI (WEST ZONE & REGISTERED OFFICE) EVEREST INDUSTRIES LIMITED EVEREST HOUSE, E 62, GREATER KAILAS, PART I, NEW DELHI 110048 INDIA TEL. 91-11-23432568, 23432568 FAX 91-11-26464006 e-mail info@everestind.com web site www.everestind.com EVEREST INDUSTRIES LTD,ACC LIMITED, RESEARCH AND CONSALTANCYDIRECTORET, CRS COMPLAX,LBS MARG THANE (W) TEL; 91-22-55985914 FAX 91-22-55985913 e-mail wzsales@everestind.com KOLKATA (EAST ZONE) TAMILNADU (SOUTH ZONE) EVEREST HOUSE, 1 TARATOLLA ROADGARDEN RESEARCH, KOLKATA 700024 INDIA TEL 033-24695814 FAX 033-24669920 Email ezsales@everestind.com PODANUR P.O.COIMBATORE 641023 TAMILNADU INDIA TEL 0422-2413816 FAX 0422-2413633 Email szsales@everestind.com The company has identified 19 locations to appoint the sales team. The locations along with the cities included in that location are listed in Table 1. TERRITORY COVERED NORTH SOUTH EAST WEST Delhi Chennai Guwahati Mumbai Chandigarh Coimbtore Kolkata Nagpur Allahabad Bangalore Raipur Pune Indore Hyderabad Bhubhneshwar Ahmedabad Jaipur Jamshedpur Surat
  • 14. 14
  • 15. 15 List Of Competitors and With Chart (Graph) Everest is the current market leader with 36% and the competitor of Everest with market size in Mumbai market is listed below: S.NO. COMPETITORS NAME % OF MARKET SIZE 1 EVEREST 36 2 BISON 33 3 CHARMINAR 17 4 SWASTIK 6 5 SHAKTI 4 6 HILUX 2 7 LOTUS 2 8 TOTAL 100 EXISTING COMPETITORS 36% 33% 17% 6% 4% 2% 2% EVEREST BISON CHARMINAR SWASTIK SHAKTI HILUX LOTUS Interpretation Mumbai market is very competitive market because there is maximum number of competitors and brands are available. In cut throat competition like this, to maintain the market leadership is very difficult task. There is the graphical presentation and list of competitors are available with the market share. Out of 100% market Everest is the current leader of market with share as 36% where as Bison and Charminar are biggest competitors with leading market share of 33% and 17 % respectively. Other companies share remaining pie with respective market share.
  • 16. 16 Organization chart Managing Director Executive Director Vice President (west zone) Confidential Secretary DGM (Roofing) Manager Finance DGM (Boards) Manager (Mkt) (MAH) Manager (Mkt) (GUJ) Accountant Cash Officer MumbaiGujaratMaharashtra ASM Mumbai ASM RoM ASM Gujarat
  • 17. 17 6. SWOT Analysis Strengths 70 years of rich experience Technical expertise Strong Research & Development support Brand name Weakness Non availability in boards Some quality issue lack of systemized after sales service & feedback Opportunity construction industry is rocking As Everest has got good technical expertise, they can enter into the different segment with these products. Threats Strong will of our competitors to enter into our area of expertise. Lot of other brands coming in India. Foreign players are also willing to get into this segment
  • 18. 18 7. Product Profile Product Range Everest Industries Ltd. is the pioneer of the fiber cement product in the country. It is a manufacturing company. It has many numbers of products in its product line. It produces 7 different type of fibre cement product. Board E Board : Multipurpose Cement Boards E Board Classic : Designer Cement Boards E Board Endura : Compressed Cement Boards E Grid : Suspended Ceiling Grid System Acostyle : Mineral Fibre Boards Rapicon : Sandwiched panel for faster construction Roofing Everest :Corrugated Fibre Cement Roofing System Everest Hi Tech :Modern non asbestos fibre cement roofing System with HIPP (High Impact Poly Propylene) technology Others Roofing accessories like Ridges, Gutters, and North Light Curves etc. Refuse Disposal System, Septic tanks and custom made fibre cement About Products E Board - Multipurpose Cement Boards E Board a combination of cement, selected mineral fillers with interlocking cellulose fibres, is manufactured through high pressure steam curing (autoclave) process. This unique composition and manufacturing process enrich E Board with attribute of fire, termite and moisture resistance, dimensional stability and easy workability (easy to cut, saw, nail, screw, drill) thus making it the most preferred and first choice of the architects and interior designers. The versatile E Boards is ideal for false ceilings, Partitioning, Wall Paneling, Doors, Backliners, Pre fab constructions and many other innovative applications.
  • 19. 19 E Boards Classic - Designer Cement Boards E Boards Classic is a designer cement board. It is versatile, ready to install pre Primered, designer cement board for interiors. It is available in a wide range of attractive, self embossed surface texture to choose from. The only one of its kinds, E Board Classic offers a combination of the excellent functions properties of fibre cement and stylish elegant looks. Ideal for a wide range of interior applications in residential, commercial and industrial constructions, E-Board Classic offers exceptional aesthetic appeal. Its strength and flexibility ensure work ability and minimal breakage and wastage. E Board Classic is available in following alternative surface textures: Lake & Hill Occeanic Cascade Electra E Boards Endura - Compressed Cement Boards E Boards Endura is durable strong cement based building boards with a smooth, flat surface. Ideal for wet area flooring, mezzanine flooring, external decking, dry wall partition, permanent shuttering, steel structural encasement, eaves and soffit lining, roof sarking etc Excellent for load bearing external panels A superior choice for durable & aesthetically appealing façade systems E Board Endura accepts all type of paints and surface finishes.
  • 20. 20 E Grid - Suspended Ceiling Grid System E Grid - Suspended Ceiling Grid System is a light weight, pre engineered, pre coated exposed laying system which can be easily and quickly assembled at the site to form an aesthetically appealing and economical suspended ceiling. All E Grid components are compatible with all standard fitting and fixture like air conditioning ducts & diffuser, smoke detectors, fire extinguisher etc. and are also compatible with standard illuminating system to provide a better appearance to the interiors. Everest - Corrugated Fiber Cement Roofing System Roofing Excellence Since 1934 Everest Corrugated Sheets are made from the finest quality of cement and fibre through a specially developed fibre orientation process. They undergo rigorous quality control system standards which are higher than ISI giving you a product of lasting value. Everest Hi Tech - Modern non asbestos fibre cement roofing System with HIPP (High Impact Poly Propylene) technology Everest Hi Tech is a modern non asbestos corrugated roofing system using the specially HIPP technology (High Impact Poly Propylene). It is manufactured in a world class production facility, conforming to all relevant International Standards. ideal for wide range of roofing and cladding solution for factories and warehouses in industries such as petrochemicals, food, pharmaceuticals, automobiles, engineering, metallurgy etc. Excellent roofing and cladding solution for hotels, resorts and villas Acostyle - Mineral Fibre Acoustic Ceiling Tiles Acostyle the latest in fashionable acoustic ceiling tiles from the house of Everest A company internationally known for its high quality and holistic building solutions. With the great look and acoustical quality it will change the way interiors look and sound forever.
  • 21. 21 8. Theoretical Background Marketing Strategy Following a successful concept test, the new product manager will develop a preliminary marketing strategy plan for introducing the new product in the market. The plan consists of three parts. 1. The first part describes the target market s size, structure, and behavior, the planned product positioning; and the sales, market share, and profit goals sought in the first few years: 2. The second part outlines the planned price, distribution strategy, and the marketing budget for the first year. 3. The third part of marketing strategy plan describe the long run sales and profit goals and marketing mix strategy over time: Business Analysis After management develops the products concept and marketing strategy, it can evaluate the proposal s business attractiveness. Management needs to prepare sales, cost, and profit projections to determine whether they satisfy company objectives. If they do, the concept can move to the development stage. As new information comes in, the business analysis will undergo revision and expansions. Estimating Total Sales Total estimated sales are the sum of estimated first time sales, replacement sales, and repeat sales. Such estimation methods depend on whether the product is a one time purchase (such as an engagement ring or retirement home), an infrequently purchase product, or frequently purchased product. For one tome purchase product, sales rise at the beginning, peak and later approach zero as the number of the potential buyers is exhausted. If now buyers keep entire the market the sales will not go to down zero.
  • 22. 22 Infrequently purchase products such as automobiles, toasters, and industrial equipment exhibit replacement cycles dictated by physical wearing out or by obsolescence associated with changing style, features, and performance. Sales forecasting for this product category calls for estimating first time sales and replacement sales separately. Frequently purchase products, such as consumer and industrial nondurable, have product life cycle sales resembling. The number of first time buyer initially increase and decrease as fewer buyer left (assuming a fixed population). Repeat purchases occur soon, providing that the product satisfies some buyers. The sales eventually falls to a plateau representing a level of study repeat purchase volume; by this time the product is no longer a new product. In estimating sales, the manager s first take is to estimate first time purchase of the new product in each period. To estimate replacement sales, management has to research the product survivals age distribution that is, the number of units that fail in year one, two, three and so on. The low and of the distribution indicates when the first replacement sales will take place. The actual timing will be influenced by a variety of factors. Because replacement sales are different to estimate before the product in use, some manufactures base the decision to launch a new product solely on the estimating of the first time sales. For a frequently purchased new product, the seller has to estimate repeat sales as well as first time sales. A high rate of repeat purchasing means the customers are satisfied; sales are likely to stay high even after all first time purchase take place. The seller should note percentage of repeat purchase that takes place in each repeat purchase class: those who rebuy once, twice, three times, and so on. Some products and brands are bought a few times and dropped.
  • 23. 23 Estimating Cost and Profits Costs are estimated by the R&D, manufacturing, marketing and finance department. Companies use other financial measure to evaluate the merit of a new product proposal. The simplest is break even analysis, in which management estimates how many units of the product the company would have to sell to break even with the given price and cost structure. Or the estimate may be in terms of how many years it will take to break even. If management believes sales could easily reach the break even number, it is likely to move the project in to product development. The most complex method of estimating profit is risk analysis. Here three estimates (optimistic, pessimistic, and most likely) are obtained for each uncertain variable affecting profitability under an assumed marketing environment and marketing strategy for the planning period. The computers simulates possible out comes and computers a rate of return profitability distribution showing the range of possible rates of return profitability distribution showing the range of possible rates of returns and their probabilities.
  • 24. 24 9. Research Methodology Meaning: Research means the process of getting knowledge and that can be carried out either arbitrarily or in a systematic fashion. It is a purposive investigation. Research process involves defining the problem, formulating the hypothesis, organizing and evaluating the data, deriving inference and conclusion after careful testing. Definition: According to Bery A careful investigation or inquiry specially through search for new facts in any branch of knowledge Redman and mory defined research as Systematized effort to gain new knowledge For every comprehensive research, a proper research methodology is indispensable and it has to be properly conceived. The methodology adopted by me is as under: Data to be Collected Data includes facts and figures, which are required to be collected to achieve the objective of the project. In order to determine the current market size, potential and market share of E BOARD the information needed to be collect can be classified into following two types- Primary Data The data that is collected at hand and for the first time or to particularly fulfill the objective of the project and happen to be original in nature is known as the primary data. The primary data were collected through stockists, dealers and retailers survey and survey was conducted through interview, observation, and questionnaire prepared for them.
  • 25. 25 Secondary Data Secondary data are that type of data, which are already collected, available, analyzed, or assembled by someone else. And need not to collected from outside. These types of data were a. Company profile b. Product profile c. Competitor knowledge The aforesaid data were collected through Internet and company s financial reports, newspapers, and interior products magazines. Data Collection Method For given project, the primary data was more significant. This type of information gathered through survey technique, which is the most popular and effective technique for correct data collection. The survey was completed with the use of questionnaires and observations. There was questionnaire for survey of dealer, stockiest, and retailers. a) Questionnaire for stockiest, dealers & retailers b) Observations Dealers and retailers as the elements of channel of distribution are the most significant for the success of a building material product; they were taken under consideration as the samples for the survey. The questionnaire is present further in the annexure. Sampling Sample is the small group taken under consideration from the total group. The small group represents the total group, in the project the market segment, which was ask to be studied was Mumbai market but there was a limitation of the project to approach all the stockiest, dealers and retailers of the city. The areas selected for the sample are present further in annexure.
  • 26. 26 Calculation of sample size is based on random sampling technique for the project & contact method is direct survey. Sample Space Mumbai Market Samples Dealers / Sub Dealers & Retailers Sampling Technique Random Sampling Sample Size 90Dealers / 120 Sub Dealers & Retailers Contact method Direct Survey Total Sample Size 210 S. No. Area covered No of outlets covered 1. Dader 20 2. Thane 15 3. Maszid 20 4. Byculla 20 5. Ghatkopar 15 6. Vashi 15 7. Colaba 7 8. Grat road 15 9. Santacruze 12 10. Dahisar 6 11. Andheri 20 12. Chembur 9 13. Malund 13 14. Vile Parle 15 15. Malad 12 16. Ulhas Nagar 7 17. Panvel 6 18. Total 210 Mumbai more than 5000 outlets available but for the study of this particular project, the above mentioned sample outlets were selected because of the constraints like geographical coverage, time frame of the project. Data Evaluation The extensive data collected through the questionnaires was evaluated to arrive at the market size, market potential and the market share of the company. This compilation was put into the charts for getting the information at a glance and easy availability for ready reference.
  • 27. 27 10. DATA ANALYSIS Total sales of cement boards in Mumbai of Everest and other brands (Average monthly sales) TOTAL SALES 36% 33% 17% 6% 4% 2% 2% E BOARD BAISON CHARMINAR SWASTIK HILUX SHAKTI LOTUS BRANDS TOTAL SALES (TONNEGEWISE) MARKET SHARE IN %AGE (TOTAL MKT) E BOARD 325 36 BAISON 300 33 CHARMINAR 150 17 SWASTIK 50 6 HILUX 40 4 SHAKTI 18 2 LOTUS 15 2 TOTAL 898 100
  • 28. 28 Interpretation A total average monthly sale of fibre cement flat sheets in Mumbai market is 898 MT considering the sample size of this particular project. Out of 898 ton Everest is largest seller with 325 ton, subsequently Bison and charminar are next competitors of Everest with 300 & 150ton avg. monthly sales respectively. Remaining 123 tones avg. monthly sales is shared amongst other four companies. Everest sells around 325 MT out of 898 MT & has 36% of market share being the brand is current market leader. Bison captures 33% market share with the sale of 300MT and stands on second position, which is closest competitor of Everest. Charminar has 17% market share with the sale of 150MT, which can be a future threat to both Everest and Bison. Shows that strong competitor of Everest Swastika has 6% market in fibre cement flat boards in Mumbai. Hilux lotus and Shakti have got 4%, 2, and 2% market share respectively from the remaining 8 %.
  • 29. 29 Total sales in retail segments (Average monthly sales) BRANDS SALES (TONNEGEWISE) %AGE MARKET SHARE (RETAIL) BISON 150 32 E BOARD 130 29 CHARMINAR 90 20 SWASTIK 35 8 HILUX 27 6 SHAKTI 13 3 LOTUS 10 2 TOTAL 455 100 RETAIL SALES 32% 29% 20% 8% 6% 3% 2% BISON E - BOARD CHARMINAR SWASTIK HILUX SHAKTI LOTUS Interpretation Total potential in retail segment is around 455 ton, amongst all Bison leads the market by sales of150 ton (32%) followed by Everest with 130 ton (29%) and then Charminar with 90 ton (20 %), remaining 85 ton (19 %.) is shared amongst other 4 competitors.
  • 30. 30 Total sales in project segments (Average monthly sales) PROJECT SALES 44% 34%14% 3% 3% 1% 1% E BOARD BISON CHARMINAR SWASTIK HILUX SHAKTI LOTUS Interpretation Total sales in project segment are around 443 ton. Amongst all E - Board leads the market by sales of 195 ton (44%) followed by Bison with 150 ton (34%) and then Charminar with 60 ton (14 %), remaining 38 ton (8%) is shared amongst other 4 competitors. BRANDS SALES (TONNESWISE) %AGE MARKET SHARE (PROJECT) E BOARD 195 44 BISON 150 34 CHARMINAR 60 14 SWASTIK 15 3 HILUX 13 3 SHAKTI 5 1 LOTUS 5 1 TOTAL 443 100
  • 31. 31 Comparative Total Sales in Retail and Project Segments COMPARATIVE TOTAL SALES IN RETAIL AND PROJECT 130 150 90 35 27 13 10 455 195 150 60 15 13 5 5 443 0 50 100 150 200 250 300 350 400 450 500 EVEREST BISONCHARM INAR SW ASTIK HILUX SHAKTI LOTUS TOTAL BRANDS SALES RETAIL PROJECT Interpretation This is the comparative presentation of total retail and project segment sales. This chart showing that in retail segment competitors have got more market share and in project segment Everest is current market leader.
  • 32. 32 Product Awareness about EBC or Equivalent Boards RESPONSE NO. % OF AWARNESS YES / EBC 170 81 EBC/EQUIVALENT 25 12 NONE 15 7 TOTAL 210 100 PRODUCT AWARENESS 81% 12% 7% YES / EBC EBC / EQUIVALENT NONE Interpretation As far as dealers are concerned out of 210 dealers, 170 dealers are well aware of EBC, which covers 81% of the total dealers surveyed. On the other hand 25 dealers are known to ECB equivalent like DECOCIL (15), NCL (6), SHERA (1) and VISAKA (3). Only 15 dealers were not aware of any of the brands, neither EBC nor any mentioned here.
  • 33. 33 Percentage Analysis of Brand Pull PARTICULARS YES NO TOTAL NO.OF DEALERS 113 97 210 %OF BRAND PULL 54 46 100 RATIO OF BRAND PULL 54% 46% YES NO Interpretation While survey out of 210 dealers sample it was found that the 54% consumers are demanding for a specific brand of fibre cement board, where as 46% consumers does not have demand of particular brands. So that it indicates consumer are more aware about various brands available
  • 34. 34 Brand Pull for Various Brands CONSUMERS BRAND PULL 29% 24% 20% 11% 6% 5% 5% CHARMINAR BISON EVEREST SWASTIK SHAKTI HILUX LOTUS Interpretation The survey revealed that 29% consumers prefer Charminar in comparison to other brands where as 24% consumer prefer Bison and brand pull of consumers is very low for Everest i.e. 20% consumer come to purchase Everest out of 100% (113) sample size. Rest of the four companies shares remaining market share . BRANDS NO.OF CUSTOMERS % AGE OF CUSTOMERS CHARMINAR 32 29 BISON 27 24 EVEREST 23 20 SWASTIK 12 11 SHAKTI 7 6 HILUX 6 5 LOTUS 6 5 TOTAL 113 100
  • 35. 35 Factors Effects on Consumers Buying Behavior Consider In Brands Purchase CONSUMER PREFERENCE FACTOR 41 31 20 7 5 9 0 5 10 15 20 25 30 35 40 45 Q U ALITY PRICE SER VICEAVAILABILITY CR ED ITANY O TH ERS FACTORS VALUE FACTORS Interpretation Out of 113 dealers during the survey it was found that 41 consumers first preference to Quality and want superior quality product, while 31 consumers preference to price and 20 customers want service. Remaining give preference to availability (7%), credit facility (5%), and other prefer well-known products (9%). FACTORS NO.OF CONSUMERS % AGE OF PREFERENCE QUALITY 41 36 PRICE 31 28 SERVICE 20 18 AVAILABILITY 7 6 CREDIT 5 4 ANY OTHERS 9 8 TOTAL 113 100
  • 36. 36 Dealers Recommendation for Particular Brand PARTICULARS YES NO TOTAL NO. OF DEALERS 109 101 210 %AGE OF RECOMANDATION 52 48 100 RATIO OF RECOMMENDATIONS 52% 48% YES NO Interpretation Out of 210 dealers it was found that 109 (52%) dealers recommend specific brands and 101(48%) dealers does not recommend any brand. Ratio of dealer s recommendation is higher over dealers not recommend
  • 37. 37 Analysis of Particular Brand Recommended by Network BRANDS NO. OF DEALERS RECOMMENDING % AGE OF DEALER RCOMMENDATION CHARMINAR 31 29 BISON 24 22 EVEREST 20 18 SWASTIK 13 12 SHAKTI 9 8 HILUX 7 6 LOTUS 5 5 TOTAL 109 100 RECOMMENDATION OF NETWORK FOR PARTICULAR BRAND 29% 22%18% 12% 8% 6% 5% CHARMINAR BISON EVEREST SWASTIK SHAKTI HILUX LOTUS Interpretation Out of 109 samples it was found that 29% dealers recommend Charminar brand, 22% dealers recommend Bison and only 18% dealers recommend Everest. So it clearly shows dealers are least interested with the brands and not happy with brand policy. Remaining around 34 dealers (31%) recommend other brand.
  • 38. 38 Motives of Dealers For Recommending Particular Brand DEALERS MOTIVES FOR RECOMMENDING A BRAND 21% 19% 17% 15% 8% 6% 6% 5% 3% AVAILABILITY SUPPLY MARGIN PRICE QUALITY SERVICE TECHNICAL SUPPORT COMPANY GOODWILL CREDIT FACILITY Interpretation The survey showed that out of 109 samples 21% dealers give first preference to availability 19% give preference to supply. 17% give preference to margin. 15 % give preference to price. 8 % give preference to quality. 6% give preference to service. Remaining 14% give preference to technical support, goodwill of company and the credit facility respectively. REASON NO. OF DEALERS %AGE OF DEALERS AVAILABILITY 24 21 SUPPLY 21 19 MARGIN 18 17 PRICE 16 15 QUALITY 9 8 SERVICE 7 6 TECHNICAL SUPPORT 6 6 COMPANY GOODWILL 5 5 CREDIT FACILITY 3 3 TOTAL 109 100
  • 39. 39 Modes of Advertisement MODE NUMBER OF DEALERS %AGE OF PREFERENCE WALL PANTING 75 37 HOARDINGS 57 27 RADIO 49 23 TELEVISION 13 6 NEWS PAPER 9 4 DIRECT MAIL 7 3 TOTAL 210 100 EFFECTIVE MODE OF SALES PROMOTION 37% 27% 23% 6% 4% 3% WALL PANTING HOARDINGS RADIO TELEVISION NEWS PAPER DIRECT MAIL Interpretation The survey conducted among 210 dealers showed that 75 dealers suggest that company should advertise through wall paintings, where as 57 suggest that advertisements to be on hoarding board and 49 dealers suggest that radio advertisements to be aired and remaining 13% suggested that it should be T.V., Print media and Direct mail as the mode of advertisement.
  • 40. 40 11. Findings Findings of the project are listed below: 1. Availability of material is the great problem of E boards. The fibre cement board industry on overall basis facing lot of shortage because of lot of demand against the short supply. Everest products have very much demand in market but company not able to fulfill the same. 2. Timely delivery of material is also great problem of Everest. Company is not able to deliver the material at right time, at right place, at right quantity. 3. As far as quality concern the quality of E BOARD quality is not so good especially in 4 & 6 mm thickness. 4. Company does not have stock depot or warehouse in Mumbai city or near to city for E - BOARDS. So it takes more time in delivery of retail orders. 5. Everest has 0.4% breakage policy that s why it creates an entry point for the competitors into the E-Board network. 6. Selling price of Everest is more in compare to our competitors. 7. Dealers are not confident enough on E-Board availability. 8. No Hoarding has been placed for E-Boards within the Mumbai Market due to which some Brand visibility issue is their in the Network. 9. Insufficient manpower to handle a large geographical territory in Retail. 10. Margin of the product E Board for dealer is less compared to other substitute products in category. 11. Due to non availability of fast moving item like 4 mm and 6 mm of E-Board, now the network is tending towards other
  • 41. 41 12. Limitations The research project had some limitations that are listed as below. 1. TIME FRAME: The time allotted for the project was two months, was major constraint for the study. 2. GEOGRAPHICAL COVERAGE: This study was limited to Mumbai territory only. 3. CASUAL RESPONSES: It was difficult to obtain data from each respondent concerned. There are always some respondents that refuse to give any information. Sometimes some respondents must have answered casually and did not give correct information. . 4. SAMPLE SIZE: The project was restricted for a particular sample size or the part of network channel. The random sampling technique could have lead to chances of some errors.
  • 42. 42 13. Conclusion E BOARD is a prime product offered by Everest industries limited and in mumbai market it has got a good brand name in projects and retails both. But in last one year due to non availability of material network are little bit confused and that s why some of them had shifted to other brand in retail. The fact and figure itself talk about the market potential of brand and competitors. In mumbai market EIL has got maximum potential and market share with good brand name. Bison and charminar is the strong competitors of brand. Everest is the current market leaders but it facing the some problem of Availability, Timely delivery, service and quality. Company must improve Availability, Timely delivery, service and quality by considering recommendation and findings otherwise brand may loss the market position and competitors may market leaders. Although E Board has got a good name and most of the dealers are willing to deal with E Board only so EIL has to focus towards the points recommended in this project report.
  • 43. 43 14. Recommendations 1. Company should increase the production capacity. 2. Company should bridge the gap between demand and supply with effectiveness measures like establishing Depot in Mumbai for E-Board. 3. Company should focus on quality issue of E-Board 4 & 6 mm and even E- Board Classic 4 & 6 mm as these are the sizes which are fast moving in Mumbai market. 4. Company must improve the logistic management and cost and time effective transport facilities. 5. Company should provide after sales service to consumer by adopting best consumer relationship management. 6. Company should provide timely delivery by six sigma model, like i.e. dabbawala, McDonald, pizza hut. 7. Company should give the maximum benefit to distributors by introducing some kind of lucrative schemes to motivate their network to sell more as well as increasing their profit margins. 8. Company should also think about establishing some hoardings at strategic locations to increase the visibility of the Brand. 9. Wall painting also can be done in outskirt of Mumbai markets. 10. Brand should be advertised on radio, television and print media at local and national level in local language during some festive seasons. 11. Manpower should be designed in such way so that every part of the mumbai can be covered very effectively, that is the way we can increase our retail sale. 12. We should come out with some good policy to take care of the breakages, so that the co. and their dealers get satisfied with the policy. 13. Company should sale the product on the basis of (USP) unique selling proposition. 14. Company should adopt the (JIT) Just in Time model for cost effectiveness and availability, Total Quality Management model (TQM) for quality, and Six (SS) Sigma model for good service i.e. dabbawala, pizza hut, McDonald. 15. Company should take the systemized feedback of consumers and provide after sales service and also customer loyalty program should be organised 16. Company should encourage the sub dealers and retailers also.
  • 44. 44 15. Bibliography BOOKS Marketing Management Philip Kotler. Marketing Management Rajan Saxena. Research Methodology C.R. Kothari. Marketing Research Beri. MAGAZINE AND JOURNALS Inside & Outside. REPORTS Monthly Report of the Company. WEBSITE www.everestind.com www.google.com
  • 45. 45 16. Annexure Questionnaires for dealers Fibre cement boards 1. Do you deal with fibre cement boards? Yes / No 2. How many brand you deal in your business? (Please mention name) a) _____________, b) _____________, c) _______________ d) _____________, e) ______________, f) _______________ 3. Do people come to you asking for a particular brand of fibre cement boards? Yes / No If yes then which brand and reason? 4. Do you recommend any specific brand of fibre cement boards? Yes / No If yes then which one and why do you recommend particular brand? 5. How much is the average monthly sale of fibre cements Boards / equivalent from your business? Dealers Boards Average Inventory Level Retail Project E Boards Charminar Bison Swastika Hilux Shakti Lotus Total 6. Are you aware of designer fibre cement board / equivalent? If yes which brand? a) ______________, b) ______________, c) _____________ d) ______________, e) ______________, f) ______________
  • 46. 46 7. Rating the product on the basis of service / availability? 8. Could you suggest which company has maximum dealers in Mumbai? Ans. 9. Which company does more and effective advertisement and sales promotion activity? Ans. 10. Do you think advertisement increase sales and market share of company? If yes which media is more effective in your view? Wall Painting [ ] Hoarding [ ] Television [ ] Radio [ ] Print media [ ] Direct mail [ ] 11. How many competitors are available in market for FC Boards / Equivalent? S. no. Name Products Rank E Boards Charminar Bison Swastik Hilux Shakti Lotus
  • 47. 47 NOTE:- Name of the firm M/s. .. Address . ... Respondent s name ... Type of business Designation Date & Time .. Phone No. .. Email ____________________________________________
  • 48. 48 Survey Area and Number of Covered Outlets Survey for the whole Mumbai city a sample was selected for this purpose which represents the total group. The area which was the selected and number of outlets covered in particular area are as under S. No. Area covered No of outlets covered 1 Dadar 20 2 Thane 15 3 Maszid 20 4 Byculla 20 5 Ghatkopar 15 6 Vashi 15 7 Colaba 7 8 Grat Road 15 9 Santacruze 12 10 Dahisar 6 11 Andheri 20 12 Chembur 9 13 Malund 13 14 Vile Parle 15 15 Malad 12 16 Ulhas Nagar 7 17 Panvel 6 18 Total 210
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