Marketing consultancy in chair manufacturing
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Marketing consultancy in chair manufacturing Marketing consultancy in chair manufacturing Document Transcript

  • REPORT ON MARKETING CONSULTANCY IN CHAIR MANUFACTURING FOR PROWIZ CONSULTANCY COMPANY SUBMITTED BY THAN SOE M.B.A UNIVERSITY OF PUNE VISHWAKARMA INSTITUTE OF MANAGEMENT (V.I.M), PUNE, 411037 2005-2007
  • ACKNOWLEDGEMENT Preparing a project of this nature is an arduous task and I was fortune enough to get support from large number of persons to whom I shall always remain grateful. I would like to record my gratitude to PROWIZ CONSULTANCY COMPANY for allowing me to undertake this project. I take this opportunity to record a deep sense of gratitude to MR.KARLE Managing Director whose kind supervision; keen interest and valuable suggestions went all the way in successful completion of work. With immense pleasure I would like to express my sincere thanks & gratitude to Pro,faculty member & project guide, for having given me this rare privilege of working under him and completing this project. I am also desirous of placing on record profound indebtedness to Dr.Sharad L.Joshi, Director of Vishwakarma Institute of Management, for his valuable advice &guidance. I would like also to thank all the respondents for giving me their precious time and relevant information and experience I required, without which this project would have been a different story. Last but not the least I am very much thankful to the supporter of my Friends and Family members. Than Soe
  • Declaration I hereby declare that the work presented in this project is original and has not been submitted for any degree or diploma in this or any other University earlier. Also, the work has been carried out during the break between first and second year of the Master of Business Administration course of the University of Pune and was done under professional guidance. Date: Signature:
  • To Whom It May Concern: This is to certify that Mr. Than Soe, Vishwakarma Institute of Management; Pune has been a summer trainee with Prowiz Consultancy Company and has worked for us during the summer project period. During this period he has done a project on the understanding of consumer need with regard to increasing customer satisfaction and sales in the Pune market. At large, his role was defined as developing relevant questionnaire, collection of primary and secondary data analysis and interpretation of the data and giving relevant suggestions and recommendations to the company. He has completed the project successfully and we are satisfied with his work. We would like to wish him all the best for his future endeavors in his professional career. Regards, Mr.karle Managing Director Prowiz Consultancy Company
  • CERTIFICATE This is to certify that the project report titled for PROWIZ CONSULTANCY COMPANY IN PUNE is a bonafide research work carried out by THAN SOE student of Vishwakarma Institute of Management submitted in partial fulfillment of requirements for the degree of Master in Business Administration from University of Pune. He has worked under our guidance and direction. Dr.Sharad L.Joshi Prof. Director Project Guide. Vishwakarma Institute of Management Pune.
  • CONTENT OF THE REPORT CHAPTER-1 INTRODUCTION 1.1 BACKGROUND 1.2 OBJECTIVE AND SCOPE OF THE ASSIGNMENT 1.1 METHODOLOGY 1.2 TIME PERIOD 1.3 FORMAT OF THE REPORT CHAPTER- 2 DIAGNOSTIC STUDY OF PROWIZ COMPANY 2.1 INTRODUCTION 2.2 METHODOLOGY FOR DIAGNOSTIC STUDY 2.3 EXISTING BUSINESS OPERATION OF PROWIZ 2.4 INTERIOR WORK 2.5 COMPETITION PROFILE 2.6 GENERAL MANAGEMENT PRACTICE 2.7 STRENGTH WEAKNESS ANALYSIS (SW) CHAPTER 3 CUSTOMER SURVEY- 3 3.1 INTRODUCTION 3.2 DETAILS OF THE CUSTOMER SURVEY
  • 3.3 METHODOLOGY FO R DATA PRESENTATION 3.4 FINDING FROM THE CUSTOMER SURVEY& CONCLUSIONS 3.5. FUTURE PLANS OF BUYING FURNITURE 3.6 FINDING FROM THE STUDY DISCUSSIONS CHAPTER- 4 ANALYSIS O F DEALER/ ARCHITECTS/ INTERIOR DESIGNERS 4.1 INTRODUCTION 4.2 APPROACH 4.3 METHODOLOGY EMPLOYED 4.4 INSIGHTS OF FURNITURE MARKETS FROM DEALERS/ SHOPKEEPERS 4.5 INSIGHTS FROM INTERIORS DESIGNERS 4.6 INSIGHT ABOUT KNOCKDOWN FURNITURE 4.7 PERCEPTION ABOUT PROWIZ CHAPTER V PROWIZ DIVERSIFICATION PROJECTS 5.1 RESTRUCTURING OF WOODEN FURNITURE INDUSTRY 5.2 IMPLICATION OF RESTRUCTURING FURNITURE
  • 5.3 CONCLUSION CHAPTER-VI SUGGESTIONS FOR FUTURE COURSE OF ACTION 6.1 INTRODUCTION 6.2 SUGGESTIONS FOR FUTURE COURSE OF ACTION CHAPTER I 1.1 INTRODUCTION Prowiz Consultancy Company is located not only in Pune but also in Mumbai, Bang lore and Delhi. The main product of manufacturing and selling of those companies is
  • chairs office chairs, executive chairs, visitor chairs, cafeteria chairs and sofa etc. In order to implement these activities that companies have many workshops and several exclusive showrooms. Among them manufacturing of sizeable and colorful chairs is the main activity of company. The manufacturing is done almost with the help of the semi-skilled n skilled labors in the workshop. Basically the process has a limit to produce and always make the testing of marketing situation on business growth. In manufacturing the different colorful sizeable chairs company used machine based and manual production to get high quality n customer satisfaction. The company s architects and engineers of company create the attractive and modern designs of those products. The raw materials and machine that used in the production are imported from Korea, Malaysia, China and Taiwan. The project of chairs manufacturing under the project will be very high. At the same time modular, knockdown type of furniture is going to be a novelty to the most of the Indian market. This would mean that the accumulated marketing experience of the group is going to be limited as far as marketing the new furniture is concern. 1.2 OBJECTIVES& SCOPE OF THE ASSIGNMENT The objectives of this assignment can be broadly classified under two parts viz- Diagnostic study of prowiz consultancy and market situation study of pune. In market study there are two component namely customer survey and dealer/ interior designer survey. The objectives of them are as follow. Objectives of the diagnostic study are To understand the existing business operation of prowiz consultancy company o To study the range of product manufacturing and production o To understand the business operation system of company o To understand the dealing customer profile in business generation o To understand the marketing operation in detail according to
  • o Product designing and decision o Pricing policy of company o Methods of selling o Distribution of products o Competitors profile in competition o Material used in production o Service after sale To study the marketing organization and marketing information system To understand the perception of new business with reference to be above mentioned marketing operations. MARKET STUDY It was clarified to understand the market study of pune city. The city is suitable for chair marketing because of the following reasons. Prowiz Consultancy Company is not aware of pune market for many years but it is suitable city for chairs manufacturing and selling because of its location. For launching of chair furniture, pune city is cherished with institute, private company, college and business people who need chairs in their homes and workshop. Cost involved in conducting study will be relatively low and It is very easy to make change/ improvements etc in market situation at short time whenever it is necessary. Objective of the study To find out the view and perception of interior designers, engineers architects in manufacturing of different sizeable chairs and sofa. To understand the present chair market situation, its opportunities threats and future plans in implementing of chair market. To know the process of chair buying from the existing and potential customers regarding different types of furniture, time budget styles and designs covering various income groups cultures and localities of pune.
  • To understand in detail from group decision and the decision-making process about chair buying style designs and used raw materials etc. 1.3 METHODOLOGY Methodology applied for each section of the study is illustrated separately in the relevant chapters. 1.4TIME PERIOD This assignment started in JUNE 2006 and was completed in SEP 2006. 1.5 FORMAT OF THE REPORT In this assignment chapter II deal with the diagnostic study, chapter III reported about the customer survey in pune, chapter IV finds out the perception of the dealer/ interior designer of chair manufacturing. Likewise future course of marketing planning are presented in chapter V.
  • CHAPTER II DIAGNOSTIC STUDY OF PROWIZ ORGANIZATION
  • 2.1 INTRODUCTION For running in a long run of business organization, every organization should acquire plentiful of experience. The surveying is always keep in touch with the real market situation and it can make fewer and fewer mistakes .the situation what has worked in previous time might not work in future situation because the customers, environment of the new business and competitors can change and different day by day. So in the process o f strategy formulation the first step is to know one self better and objectively. If the same organization or at least same management ventures into a new business, the management is liable to be suffering from a new blind spot. Diagnostic studies are undertaken to prevent such mistakes. The objective of the diagnostic study of this assignment is to study the strength and weakness of the present prowiz consultancy company with a view to developing and understanding of their relevance to the new project. 2.2 METHODOLOGY FOR DIAGNOSTIC STUDY The diagnostic study was implemented by holding detailed interactive discussion with the management team of prowiz company. From these discussion get the knowledge to understand their present business, the business environment, including competition, the decision making process for their market etc an effort was also made to understand business. means of using technology, production process in industry, product range, quality of product, pricing policy, marketing initiative with competitors, business generation system and show room management Through this fact, can get the strategic capacity and expectations of the group from the new project.
  • During the discussion with the management team of prowiz consultancy company a few relevant records (that were made available) were also studied carefully. These records can give the identification of strength and weakness of prowiz consultancy company from the view point of the new project and which will make producing, manufacturing and selling of various designed chairs items. The study is mostly based on the interactive discussion with the management team of company because company s main target is distribution in whole selling not retailing in market area. In such a situation there is always danger that not gets the chance to know the real feeling of actual customers and individuals. Hence all the documents required for the study were not available but the conclusion based on them is liable to be contested. 2.3EXISTING BUSINESS OPERATION OF PROWIZ CONSULTANCY COMPANY Prowiz Consultancy Company was founded since 2001 in Andheri of Mumbai but at that time it was not well-known and big company. Initially the company undertook production and manufacturing of several designed chairs for chair market and just only retailing in market. However the company undertook the business of manufacturing, exhibition and whole. These four company engaged in the business of chair manufacturing and marketing, showroom and trading of various raw materials require by chair industry artifacts etc.. All the companies have working partners/ directors, managing partner or a managing director. These companies targeted to distribute chair in the chair market among the competitor but initially mumbai is main target for chair marketing and employed 11 staffs and 3 salesmen and the initial financial turnover is 6 lakhs only and retailing products in the market area only. Moreover in 2006, another company like in Bombay is 16 staffs, in pune 4 people, in bungalow 6 people and in Delhi 8 people only. Although not much staffs and big company it make sale targeting anonymously in the marketing area.
  • Warehousing for manufacturing products planned in mumbai and hydra bad. In pune exhibitions for sale and force on sale movement is planned strength. Detail of the staff member and scope of activities of these companies are illustrated as below. Sir no Company place Staff Business activities 1 Mumbai 16 Ware housing 2 Pune 4 Sale target 3 Hydra bad 6 Warehousing 4 Delhi 8 Sale target 2.4 INTERIOR WORK A typical interior work undertaken in an unoccupied house normally incorporates by designing the sitting room and various chairs for drawing room, bedroom, kitchen and various institute and private companies and public companies which need director chairs and other several designed chairs. The supply of the amount of chairs and customer needed design in the factory is direct and some portion is worked upon on the sites. Some design and order of the design is generally done by the customers with or without indirect or direct involvement of an architect or the interior decotator.For the fixed items there is a need to take precise measurements and develop an understanding of the site- specific features. CHARACTERISTICS OF INTERIOR WORK
  • Company has own workshop/factory and the manufacturing of various chairs are undertaken under the super visor and with the help of the skilled and experienced designers. Company utilized qualified production rule and used standardized raw materials and import to produce qualified and standardized several designed chairs. The showroom of the company target to the potential customers and the facilities like architects, designers and other skilled manufacturer and offer the chance to see the display or go through the catalogues, undertake a visit to the factory and showrooms, shortlist and select the designs colors and grain structure etc finalized the order. PRICE AND VOLUME OF BUSINESS Now prowiz consultancy company in pune branch is target to the whole selling and not prefers to the retailing and can calculate the amount of business is on the annual turnover. So the annual turnover of company s headquarter in mumbai is round about 62 crores and it generated successfully in that market situation. In pune branch, the annual turnover is just only 2 crores but now it penetrates to the whole selling market of chairs with force and success to some extent. The production and manufacturing procedure of the company is step by step from harbor which imported needed items for chairs to mumbai site and factory and then transfer to Delhi branch bang lore branch and pune branch. So all loose and fixed items of the chair of 100% is manufactured in mumbai and from Delhi and bang lore to distributors and then transport to the dealers and finally retailing to the customers. In pune branch 0% of loose and fixed item manufacturing and just for showroom and readymade chairs for whole selling to the dealers.
  • For pune branch, it has low annual turnover for product and can t create marketing situation by leap and bound because of these reasons may be. Too long delivery period for customer order not so long marketing period not get customer awareness because of company s sort foundation time just on shopping free Not fixed the cost of chairs and customer s want Most of the business is generated through the word of mouth and references. The schedule of the payment is as follow. Tax structure o -octory tax 4% o - vat tax 12.5% so the tax have to pay on the profit of products is totally16.5%.These taxes are paid on the bill of the company and two month credits for the payment. The schedule of the payments of debtors and customers are mostly one-month credits and sometimes cash down but it depend on the dealers or customers and amount of products. 2.5 COMPETITION PROFILE Production and manufacturing of chair items of prowiz consultancy faces several competitions from show room of the manufacturers and traders, designer and architectures and contractors. Exhibition of several types of consumer durable items including chairs also provide competition.
  • Concern with the interior work, prowiz face competition from architects/interior designers having their own carpenters and other skilled workers. Some of them are from organized sector (partnership or companies).However most of the competition comes from the individual professionals operating in the field. For pune branch it refers to the whole selling and not situated wide chair market in whole city and not make production there so competition from such kind of activities is free and few show room competition. In spite of the stiff competition in various conditions prowiz consultancy companies are doing a good business and reputation of good quality and standardized chairs in the market. 2.6 GENERAL MANAGEMENT PRACTICES PRODUCT DESIGN AND QUALITY POLICY According to the product design and styling, prowiz s have favored not only to the traditional ornamental chairs but also modern straight line or gaudy, fully upholstered chairs. But company prefers to the modern and global design and that will position in the mind of customers and take the target of product positioning among the competitors in the chairs market. Company imported standardized handle, frame and foams and these style must accept in the eye of Indian people and must keep abreast with the global. Although high, medium and low type of chairs but designs and qualities must be qualified and must accept by Indian and up to date today. Sometimes design ideas are generated and come from magazines, catalogues and brain of architects. Also the management team of the company adheres and support to highest quality in raw materials, production, design, finished products, delivery system, site installation and manufacturing practices. These supporting have been involved since the foundation and
  • manufacturing of company and product and it is still matter of routine till now to manufacture standardized chairs. Prowiz company has one kind of advantage in design and production that is the qualified membership or correspond membership make frequent visit to foreign and learn and exposure to international practices and to the technological development and global designs and it take place advancements in the industry. So the product design and qualities of company s product is manufactured on the duty of management in whole. PRICING POLICY Company fixed the price depends on the model and kinds of products but models and prices are subject to change without prior notice. Company get premium pricing as compared to the market trends and so negotiations in pricing always take place. Basically pricing in products is depending on the imported raw material price and fluctuations of Foreign exchange rate. Prowiz make price differentiation in several branch i.e. pricing in Delhi can t be same to the pricing in pune although in the same model. In calculation of pricing VAT tax as applicable and 50% advance for sell product and balance against delivery. So product- wise costing is worked out according to the extent of customization and amount of products. For standard range of products like high items, there is a computerized system of arriving at the costing and for the non standard product like low items the same is arrived at the juncture of transaction. For common time no discount are offered to the customers but in festival and other seasons discount pricing policy utilized by means of 50% discount or replacing other items or guarantee.
  • For example Rs 300 extra for gas life mechanism, guarantee for mechanism 1 year or 2 years and 1 year replacing and something like that. So price structure is set once, which generally is adhered to till the next revision. Prices are negotiated and the business of company is concluded at the transaction of the company. SALES AND DISTRIBUTION In every branch of the company, apart from mumbai site point, most of the transaction always take place from show room and through direct inquires but in headquarter of mumbai, customer can seized their need not only from showroom but by making direct contact to the site point and industry of company. However prowiz can attract the potential and steady flow of customer by means of its reputation and standardized items. Especially, in pune branch. There is no manufacturing but in showroom display every sample of different model chairs and customer can visit and choose for whole selling. The show rooms are decorated artfully and lighting arrangements are excellent. Moreover location of the showroom is situated in crowded down town and it is very easy for customer to visit. Different arrangement of different design chairs is display in showroom and customer can choose their needed design and models in show room. Besides several salesman and polite employee can give the needed information and explain them what they want to know and need. So location of the showroom, arrangement and display art of management impress every visitors and this cause a good deal of publicity. Prowiz company in pune branch effort to the whole selling as main target so management of company was organized separately and make direct contact with private company, public company and institute for whole sell chair market. Management is interest in direct
  • door to door with this organization for large amount of whole selling and these connections decide within the proper time of office. MARKETING ORGANISITATION AND MARKETING INFORMATION SYSTEM In marketing field media and advertising are adequate role but prowiz company doesn t feel the need to advertise. In company, different people in different role take their responsibilities with clear-cut and no hired management for company. As stated earlier that management team takes the responsibilities in marketing such as joining institutes, public companies and private companies directly for whole selling and no middleman. Every day or some other days, it depends on situation, in office time, formal meeting take place in pune office and show room and precise operative decisions are discussed. In these meeting comprehensive sharing of strategic operative and tactical decisions are formulated among the management team. They also formulate how to make market positioning and penetrate among the competitors concern their products. Within company not only formal meeting but also informal and familiar meeting and discussion take place among management team and their staffs. These meeting and discussion oriented marketing situation of the products and can make suggestion frankly and familiarly concern with chairs production and marketing. Moreover customer satisfaction and product or service qualities are included as first role. So for prowiz company, entire business of the company runs like well-oiled machinery where all the members automatically know their responsibilities so relevant developments taking place across different function and business. Management team can
  • get the several ideas from their different roles of staff, they can consider and take decision making for product marketing, and if necessary they use computer aid and computer information. 2.7 STRENGTH WEAKNESS ANALYSIS A strength weakness analysis of prowiz consultancy company in the context of business diversification is illustrated below. STRENGTH o Achieve excellent reputation of standardized and qualified chairs production in Pune. o Due to various successful expansion and diversification project it has great business vision. o Although it is not big and well known company for many years but it can make consistency profit through captive manufacturing facilities, production from qualified raw materials and setting up of high and tidy show room. o Concern with management team it was organized with well educated and experiences members and cohesive family management. All members of the team are young, energetic, and active for marketing of products under the leading of leader.
  • o Company make the initiation in chair marketing with running the business in keeping with the time, various pioneering and trend setting initiative so it has a good sense of business. o Family responsible members are often visited and learn techniques and production in various designs so company can manufacture globalize well- standardized chairs and can keep abreast of global trends. o Good sense of product development in designing, styling, manufacturing and marketing in chair market environments o Other companies apart from pune branch, they contact with dealers and sub- dealer so they can get marketing information and respond from customers through dealer. Moreover in pune branch, working as a manufacturer and distributor it can get sound knowledge of distribution product. o Excellent relation with-Good sense of product development in designing, styling, manufacturing and marketing in chair market environments o Other companies apart from pune branch, they contact with dealers and sub- dealer so they can get marketing information and respond from customers through dealer. Moreover in pune branch, working as a manufacturer and distributor it can get sound knowledge of distribution prompt facilitators of business such as architects/ interior designers, contractors, carpenters etc.. o Good costing system
  • o Excellent show room management and skilled direct whole selling. WEAKNESS Company needs various activities required for sale promotion such as publicity promotional material, event management so lacking of experience /expertise in sales promotion techniques. o Company oriented mass production so in that situation require a good deal of advertising so company lacks the experience/ expertise in advertising. o Company requires proper and suitable information system and documentation. o Although company implements mass production if lacks of mass scale production including logistics, inventory management and personal management etc.. o Company launched chair products in pune market but it is not so long time so present management team is good enough for present business but for new project qualified professional management require but company lack experience in dealing with them. CHAPTER III CUSTOMER SERVICE 3.1 INTRODUCTION
  • Prowiz consultancy company target mainly mass scale production from custom made chair furniture market in the chair market situation. So we can see that the characteristic of their product are going to be machine made, knock down furniture based on steel, nylon, wood, stainless steel and other need raw materials. Moreover the product range of in the initial stage will include various types of chairs such as cafeteria chairs, staff chairs, meeting chairs, auditorium chairs and stadium chairs and sofa etc. Before presenting to this chapter the segment and running routine of the business of prowiz company need to present. The headquarter of the company is situated in Aunderi of mumbai and it is the main office and manufacturing factory or production plant of chair items for chair market. After manufacturing chair items then distribute another branches, which located in the crowded area of cities such as bang lore, Delhi and pune. For bang lore and Delhi branches they distribute chairs in the hands of distributors and ten to the dealers and in the final state distribution were finished in the hand of retailers. So we can see routine of chair items in the market only in that area and for pune branch it target whole selling only and no chance to know the real feeling and making survey to the customers. That branch target to the whole selling but management team n correspond leaders are link each other so we can know other routine and business situation of other branches through the management team and leaders of pune. Thus it is clear that through the proposed product range may be unique and different than the existing products, the generic nature of the product offering is note changed. Products of the company made from several kinds of raw material but there is a great deal of variation in the process of the same furniture type. For example, tiger 1034 chair designs made from same raw materials and same design and same type but price is varied from 3500, 3800 too 4600.|So the finished products are also differentiated on the basis of handle foam and stem, basic of carving, fixing of artifacts for decorative purposes, polishing and styling.
  • Thus a simple sounding item like a seating chair can be made in hundred of varieties and price can be changed depend on their designs. For example style of 2045 with price 1700 to style of 2001 with price of 8800 for an exclusive furnishing, quality of raw materials, excellent polishing and designing. This clearly shows that furniture items as a class of product serve more than functional needs. Moreover the furniture items serve as a psychological needs such as life style, status, mental feeling of peace, comfort and satisfaction etc. Concern with the buying process of buyers actually it is extremely complex and it is seen that no marketer can survive unless it is understood well. When the product base is limited and so is the volume offered for sales, marketer has to understand a small group of customers in order to be successful In pune branch it doesn t concentrate on the mind and feeling and buying process of individuals because it is not long time for chair items in the market n not target for retailing but for other branches, companies have been doing business for long time ago. The groups have excellent understanding of their customers and the influencing middlemen such as architects, interior decorators, carpenters, and contractors..etc. However when the group is planning mass scale production and produce standardized furniture their customer base n opinion and survey is varied in thousands. Yet in order to succeed, these group must understand about these opinion of customer and buying pattern of individuals which will serve and provide for the future development of company the detail of the survey are presented in this chapter with the help of management team and leader in pune branch. 3.2 DETAILS OF THE CUSTOMER SURVEY Because of the budgetary constraints, time factors, communication difficulties and routine of business in pune branch, it cannot get the right chance to view the individual
  • and household. Likewise classification of the exact area and ensuring a representative of all the areas such as Shivajinagar, Bibwewadi, Pimpri and so on are not implemented. But this surveying is based on the connection on the individual household and company so can rely on get sufficient information about the chair market and opinion of customers. Making on the survey of the individual, a lot of deliberations about the profile of the households who will be the most important buyers of the proposed new products. It was agreed that these households would have the following chacteristics. Depend on area of household and business because it can determine the need of chair items and sofa for them. Well-established household of business may need more furniture than established ones. Income and earning of the household may reflect the business of the household and it can consider as a main role. These household and business must be link and situated within the location of the companies market quarter. Ensure to get the detail information, several of reality households meeting all these requirements are interviewed. In this survey the questionnaire was partly structured and partly open the respondents were the survey was on behalf of prowiz consultancy company. They were also informed about the purpose of the survey. When making the interview and question it was decided to use a man and woman team for the household and this was done to ensure better receptivity and trust. All the investigators are well trained in various aspects to ready for making the interview and survey. So data collection stage is very exact and sufficient to know about the opinion of
  • individual and reflection of the people on company. in order to work out the value of the furniture in the households at the present time scale data on all the prices of all furniture items and types was required. This factor was obtained in a disguised approach from some chair dealer and traders from various locations in the city. So survey of traders for current price meets the need of project. 3.3 METHODOLOGY FOR DATA PRESENTATION In making the chair survey the household and business are classified according to their financial income and their class. For example, A1 group is small business or not well known one in the business are or middle class household. A2 group is one kind of business who get succeed in the business to some extent or upper middle class house hold and A3 group represents well known business in the market or upper class households. 3.4 FINDING FROM THE CONSUMER SURVEY AND CONCLUSIONS According to the survey on the customer group, we come to know sofa and chairs item market and how many percentage they used for their household and business. Several households reported about separate chairs use in the drawing room and other rooms and others executive chairs, staff chairs, visitor s chairs, cafeteria chairs and director s chairs were made survey on the business n other companies. In several households, the same chairs were used for dining purpose and drawing room seating purpose. The preferred materials were wood, steel, stainless steel and also aluminum and plastic. Although plastic chairs are so rare to produce in the company but in the part of customers, owing to fewer prices, variety of design and light weights are emerging to be a real competition to wood and steel based chairs. Concern with sofa, Sofa was owned by nearly 60% of the household s surveyed. The ownership increased from small household to large household. For business it starts from small company to large company and its
  • usage depend on their situation of business Wood was the most preferred material and round about 87%. As far as single sofas are concerned the ownership was around 39% overall. Main sofa as well as single sofa is important n useful for business and household. So in conclusion, sofa and chairs have a good potential but in order to made and ready made, more marketing efforts will have to be undertaken than normal. In the buying process of furniture, the buying pattern of customers has a choice between making it as specifications and buying readymade. The data shows that both the buying patterns are quite substantially prevalent. So in the case of dining chairs and sofa (main as well as small) inclination to buy ready made is slightly higher but some customer wan t to make buying made to order to fix their desires. Thus this kind of survey provide to some extent to the customer-buying pattern between made to order and ready-made furniture. Prevailing to the buying process of customers, various chairs including dining chairs and several sitting chairs furniture are made to order is 35 % and ready made furniture items are 62%. In sofa (main items) made to order is 33% and ready made purchase is 56%. Likewise sofa(small items) made to order is 31% and ready made purchase is 69%. Initially company has gone to the ready made market so this information will have to be considered carefully. They will have to understand the advantages offered by made to order items and must counter tem through their marketing strategy in order to be successful. But sofa (small item) made to order is preferred largely by A3 household. . While surveying about the distances traveled while buying furniture items, it can be seen belief of the customers because they believe that the nearest furniture selling shop is not necessarily the best one to supply their desire apart from table in which case they prefer shops near their residence, so they want to make long distance to travel and choose their likes. But for companies and business, they choose their likes in the shop and no need to make long distance for that case initially their companies and business located in the downtown mostly.
  • Most of the customer round about 70% have traveled more than 3km distance to get their like in shop because they said they don t like buying furniture near their residence and they didn t consider any cost and time for their shopping. Distance traveled A1 A2 A3 Purchase items Purchase items Purchase items More than 3km 65 75 85 Less than 3km 35 25 15 It can be seen in the table to know the customer distance traveled for purchase items. So in conclusion in furniture buying process including chairs and sofa for households, short distance s not a major consideration. 3.5 FUTURE PLANS OF BUYING FURNITURE Moreover in the case of A1 households, the number of purchased items was higher than made to order items (average of 4.5 and 3 respectively). However in A2 households and A3 household the proposition of purchased items was progressively less compared to make to order items. For the entire group group of households the difference between them was marginally higher in the favor of purchased items (average of 4.5 and 4 respectively). In conclusion, As the area of households is increased tendency to make to order furniture items is increase but market for ready make items is very much there even among higher area households. While selling and purchasing items, repairing is one part of role in chair furniture. Out of 150 respondents only about 5% need of repairs in chair items. That was happened because of loose joints. But none of them reported any serious problem in requiring
  • major repairs or getting the items repaired once the need arose. So repairing is so rare event and not a major role in manufacturing and selling chair items. By and large no repairs are reported (over 95% of the households) and those who reported repairs did not face any problems fin repairs. For these companies, according to the making survey, buying g process of customer are which prefer in buying readymade furniture are more prefer than made to order furniture. These reasons are listed below. Buying ready made furniture like sofa and various chairs, they can get immediately whenever they want and it is the most important reason for their buying and 55% of the respondents stated that reasons. Another factor is that they can get the exact required quality, color, size n price buying ready-made furniture these factors was stated by 35% of the respondents.. Ready-made furniture is cheaper than made to order furniture it was another reason and it was stated 15% of the respondents. But actually these statement was revealed by A1 group and more than compare with A2 and A3 group. That statement shows that A1 group is more sensible than other groups in price of furniture. Repair required Require repairing 5(5%) Not require repairing 145(95%) Total 150
  • The other reasons were no time to survive did not know trusted carpenter/interior designer known shopkeeper more variety of choices available etc. Were also reported. However their production was not significant. Initially Prowiz Company was going to offer ready-made manufacturing; the reasons that have emerged above can be used as a part of communication strategy. A1 A2 A3 Total No of respondents 35 45 25 100 Reason for buying Required immediately 65% 50% 55% 54% Got exactly as desired 20% 35% 45% 35% Cheaper than making 25% 15% 5% 15% No time to survive, no guarantee of quality 5% - 5% 3% Didn t know carpenter or interior designer - 12% 3% 4% Others (known shopkeepers, more choice, etc) - 6% 3% 4% Although company targeted readymade furniture and customer like buying ready made furniture but in other case made to order furniture is more reasonable n attractive to the buying pattern of customers in sometimes. This variety of reason is listed below according to the opinion of customers. Nearly half of the respondents (50%) who answered this questioned stated that the main thing is required quality is not available for buying ready made furniture. According to the 52% of respondents stated that wanted it to fit into the available space and their desire is the reason for preference over ready-made furniture.
  • Nearly half of the respondents (50%) who answered this questioned stated that the main thing is required quality is not available for buying ready made furniture. Another factor is those consumers want to fit the utilization of available space rather than ready-made furniture items. 16% of correspondents said that quality assurance is main thing n one consideration for the buying of made to order items than ready-made furniture. This perception will have to be corrected through their communication strategy and also through their rigorous product quality. The other factors are ready made furniture costly, raw materials available such as wood and steels etc. and well knowing designer and carpenters are another some of the reasons of these items. Moreover selection of the shop is another important case for buying items in buying process of consumers. According to the survey, 50% of consumers visited and make shopping known or previous determined shop before making shopping items. So the choice of the shop is much earlier and important in buying decision. Several considerations such as previous experience, feedback from friends/relatives, advertising, publicity etc. But 40% of consumer reported visiting more than one shop before deciding on the shop. In conclusion, a good publicity is an important factor in the buying and selection of shop for buying items. Company must be ensured it and otherwise variety choice in the shop, excellent salesmanship and pleasant décor must be paid proper attention.
  • A1 A2 A3 Visited known shops and purchase 53% 49% 35% Visited several shop and purchase 40% 45% 35% See in exhibition and purchase - - 15% Others (advertise and other place) 3% 3% 5% Also 80% of the buying process is concern with their choice, decision of the designers was already made and so prefer made the furniture than ready made. The remaining 20% of the respondents undertook an active search of locating the designers. This suggestion again that good feedback from satisfied a customer is a factor responsible for the choice of the designers. So comparing these two items, there is virtually no difference but quality and price are two major considerations followed by quality and budget, color, style fashion and others. To ensure quality in them the most important factor is trust wither in shopkeeper or in the interior designer. it is followed by the verification of the claims of shopkeepers or designers. These factors area also related to the trust. So one thing creation of trust is the most important consideration when making decision of buying items or owing furniture and company should have to create it among its potential buyers. Another consideration of buying furniture is decision making for buying in the customers. Over 50% of reported that in decision-making all family members are involved decided together. However nearly one third of the household husband or breadwinner or elder males are the sole decision maker for that. Involvement of relative, friends are so rare event and not reported by large number of consumers.
  • Survey on the willingness of consumer for exchange furniture is another factor for customer survey. In furniture item including chairs and sofa are made of raw material such as wood steel stainless steel and nylon etc.. These items can be used for long time but on their hand style will becomes out of date. So most of consumers want to change their old style furniture items with another up to date new ones. But in Indian market there is virtually none exist of secondhand furniture market at a satisfactory level. According to the survey, 5% of the total items are available for exchange with the new furniture provided the exchange is a fair one. So in conclusion, this is good opportunity for the production company to be properly exploited. Manufacturers can device a scheme with dealers dealing in items to open a second market new furniture items can be sold to replace them. Few years back there is no market for second hand cars or two wheelers. Today in Indian we can seen variety of market for them and do exist. We can see in the television market. Hence there is no reason why such an idea will fail in the future items. Company can seriously consider this idea for implementation. 3.6 FINDING FROM THE STUDY DISCUSSIONS As mentioned earlier that buying furniture items is so complex and it has long term life n used by several family members but also relatives, peers, acquaintances and business associates. So most of furniture can full functional needs and psychological needs of buyers. Consumers have variety of choices of basic material style, design, color and aesthetic appeal to select from the furniture market by covering a larger price range. In making study discussion we can find a lot of factor it is concern with the buying process of consumer ad their opinion. These factors can be illustrated as below: Major investment for life time-items can be used for long term and they think it is one kind of investment for their business and household.
  • A well-known shop and feedback from their environment and neighbor is the major consideration for customers in buying. Price and price relationship with the quality of product is another factor for buying process. Comparing wit the foreign items with local item are another consideration for customer and when they buy a new one will compare with foreign one in quality, style, color and other things. Another factor of view on ready made furniture, made to order furniture and knock down furniture are include and must be consider relying on the buying process of customers in marketing. CHAPTER-IV ANALYSIS OF DEALER/ ARCHITECTS/ INTERIOR DESIGNERS CHAPTER IV ANALYSIS OF DEALER /ARCHITECTS/ INTERIOR DESIGNERS
  • 4.1 INTRODUCTIONS In chapter (iv) will illustrate clearly that chair buying/ process is influenced largely by the dealer or shop keepers (in the case of buying readymade chairs) and interior designers (in the case of making custom built chairs). In order to develop these insights of these influences another survey was planed. So one of the major objectives of this chapter is that to develop and know about the insights of the chair market in pune city. The detail of the survey of chair market concern with dealer/ architects and interior designers will discuss in this chapter. 4.2 APPROACH According to the previous chapter, prowix consultancy company in pune branch didn t interest in targeting in retailing but whole selling is main target so direct joining to the institutes, companies and another whole seller and buyers and we can get information from these dealers n other whole buyers. Moreover, for pune branch, it participates as wholesalers under the branch of mumbai headquarter and has accumulated experiences over a considerable period of time and provide a lot of survey under the guidance of management team. To answer the main question from dealer who wishes to buy chair is the people who have already been dealing in selling chairs. So dealers are the main targets for this survey. Also architects and interior designers are another role of people who are involved in manufacturing and producing chairs for market. They have their own experiences and know kedge about how to make chairs for market and customer needs. So we decided to elicit responses from both of these categories. Actually prowiz supply the requirement of residential need and decoration of home and office and institutes directly or through their influencers.
  • Traditionally the relationship between the manufacturer of chairs, on the one hand and the makers of chair as a custom built solution as part of the total interiors, on the other hands has not been very chummy at the best of times. So we can say that interior designers are competitors of ready made chairs items and their opinions and view would surely be very useful. Prowiz has been already specialized in making chairs in marketing. When they made chairs they also use various items for products and choose the appropriate and qualified handle stem and foams. The didn t use just only wood based items and limited their new products to wood based item only. Chairs items are made in other items too. Steel is a major component of making chairs at times nylon and steel are another component of manufacturing chair items. Lately another major component of making chair items is stainless steel and these items have been tried successfully as chair components. Of course much of the hardware consist of metal but that refers to component of every chairs. As an overview, chair made in these materials area also alternatives, ie.competition. Competition also comes in form of custom-built furniture, as state above. Competition emanates also from alternative lifestyles. For chair furniture, it was used widely in urban are in such kind of type such as institutes by using of chairs for classroom, laboratory and multimedia room for students and another items staff chairs, meeting chairs director chairs are used for private and public company in urban area and stadium chairs are used for stadium and others and at least
  • sofa are used for household items and decoration in their sitting room. So in rural area, apart form upper class family it is so rare to use chairs as their decoration of their house. Insight-in a broader sense, converting a life style could also be considered as a means of targeting expanding market. Perception by competing elements has been included in the study to understand the historical trends and the emerging trends of consumer preference, to see if any patterns are discernible. 4.3 METHODOLOGY EMPLOYED Concern with the information obtained through trade and interior designers, there are two set of questioning concern with it. In making question with company management team support as a leading role on behalf of these types and it was decided that the best way of set questions to be augments by explanatory discussions with the interviewees, otherwise management team of company, in order to ensure not only that the person has the understood the meaning of the question, but also that the response makes sense and it can be noted as useful information for survey. Actually making question to the individual architects and interior designers are not serve much purpose knowing after the clients indicated so the schedule for information collection was modified to include the following. o Group of architects and interior designer would be addressed collectively and a detail discussion and it can lead and ensure bring out views of company and production opinion on marketing and information of product manufacturing and selling in market. o Among the group, choosing a few architect s and interior designers for detailed interviewing without resorting to any specific questionnaire so that far more in depth exchanges could entail without bias.
  • So stated in the earlier say that prowiz consultancy company in pune branch is not enough big and targeting in whole selling so we make out discussion and survey with management team on behalf of real practical with these persons and these information we get from team is enough and sufficient for project. Thus we decided to conduct a lot of discussion and interviews with shop owner and management team .The questions were set with reference to the following main consideration of obtaining information. To get the information which make decision concern with the outlets of chairs items regarding consumer orientation. To obtain and get accurate information of estimate total sale n turn over of chair furniture in market To understand the consumer perception from different views while making any buying decision of chairs To know time and priorities of buyers and their choice with respect to buying decisions when they actually purchase for their office or institutes e.g. who like to buy in which qualities and choosing appropriate items for their business. To understand the proper status and business of buying patterns concern with their status of business , private institute, director s opinion and other decoration of home and how they use and apply to this chair furniture in their business and communities. To observe the expectation of buyers from the products they are buying and the relative important they attached to considerations of utilities, price, and comfort of operation, mobility, aesthetics and blending, conformities to business etc. To observe the warrant special attention to any need and supply from company for any significant changes of consumer profiles. To decide on the important criteria that influence people s decision for following buyer segmentation.
  • To assess if customer education is required with regard to knockdown furniture etc. To remain alert to any other possibility for important of company and customer orientation. While collecting and making survey to information, was to be alert to any insights that should reflect on the buyers mind work so to be beneficial of marketing of company s chair product in the long run. 4.4 INSIGHTS OF CHAIR FURNITURE MARKETS FROM DEALERS/ SHOPKEEPERS From the responses, company s main product is manufacturing and production of various chair furniture such as cafeteria chairs; staff chairs, director chairs, auditorium chairs, stadium chairs and sofa so it appears there is almost equal of these furniture items are bought. Buyer decision on chair furniture buying is not very closely related with aesthetics in mind- more as utilitarian decision. With regard to the question on the basic material used in the chair furniture items, every dealer sold various designed chairs but sofa is less because company target whole selling and at one time it can sell numbers of chairs for their business and especially that kind of dealing occurred in the marketing with institutes. So auditorium chairs and stadium are most likely to sell in chair market. Among them. Plastic chairs are most likely to sell because of cost advantage. If consumers can be made aware of comparable (and affordable) prices of the wooden
  • chairs- with the definite and known advantages, they can be weaned away from plastics. Moreover dining chairs with added comfort may be very attractive to buyers. On the question of uses the chairs are apt to more than 80% of those questioned mentioned comfort as the second most important application. In the not too distance past, easy hairs were quite popular With the severe space limitations in modern home and business such as institute and company they are not in use. But a more comfortable design of a dining chair could well double as an easy chair. They could be promoted to that effect. Aesthetics is quickly becoming an important consideration. According to the view of dealers concern with the preference of consumers while making buying decision. Aesthetics is first for their consideration than other two factors such as price and durability. But these factors are influences upon the buying decision of consumers. More than 50% of buyers are included in the one of the first three. Otherwise price and durability are foremost consideration n they make priority these two factors. So flexibility, blending, operational comfort, simplicity etc are criteria that may have to be included in the collective psyche- depending on Prowix Company s strength. Regarding to the individual customer s situation such as their incomes., age , status , survey on their likes and preferences is very difficult for company because initially company didn t target to retailing and but for whole selling so surveying on middle, lower and upper class family cannot be found in this projects. But it will be discuss on the opinion of shopkeepers and whole sell dealer only. Concern with the view of shopkeepers and whole seller, special design of chair furniture is most influence on people buying desire. All business and user prefer globalize and standard design and less prefer in traditional design. So company s promotional literature must bring out this feature of their furniture with force. It is virtually important to educate the special status accorded by the usage of standardized raw material and imported items.
  • The relation ship between floor area of the business or workshop and expenditure is very important factor. A hefty 80% of dealers realized there is some connection between floor are and expenditure made. But dealers and interior designers have their own figures and a very wide range of this perception. In production of chairs items, most of the ready made items are partly made of metal- mostly steel, stainless steel, nylon and aluminum etc.. But in the case of custom-built chair item except for hardware some design of foam wood based or wood components are used. Of course handle, stem are used in these wood materials. But various designed chairs for director chairs and stadium chairs and auditorium chairs are getting to be increasing popular. Sometimes Expect for Diwali or other open season there is very little clientele it was opinion of some dealers. That doest mean that at other time there is less dealing in marketing. But compared to buying from shops, the process of buying chair furniture is fairly spread out through the year. Off-season discount may be a worthwhile marketing strategy of companies for their products. Regard with the displaying of product for company they display various type of their chairs including nylon, steel and aluminum and hydraulic chairs in their own shop. This trend may be gainfully utilized to highlight the mix displaying of chairs items. Sometimes plastic chairs are used for this case and it intend to the substantial reduction in the cost of especially chairs, which made in wood. Moreover shop cater to chosen appropriate price for a given chair furniture for their buyers ad whole buyers. So in some shop, they fixed price for their product it depends on the situation and area of shop and but in some shop it may be different although items are in same qualities, same type and same standard. So concern with the price range for one area is illustrated in one chapter before.
  • 4.5 INSIGHTS FROM INTERIOR DESIGNERS The presentation of the insights from interior designers is illustration without qualification but insights gained from a focus group discussion are also taken into account. Concern with holistic approach in designing, the need and requirement of any business and household are changing and dynamic and they always require newer form and design for theirs. So the prediction of requirement of the any business and people are unlimited. Likewise the production of the company needs to change and maintain necessary items to suit for people s desire. For example, in a company the management team or correspond leader will change their business situation such as designing of their office s sitting room or the pattern of seating arrangement or other decoration etc. .So it may be expanded or contracts. Time change, financial situation change, business grew up and residencies shift so for the production company will have to change according to this situation in design and production. It is the main responsibilities of production designers. But for buying of specific items, the requirement can be more specific and hence the solution more predictable. Moreover making a decision of buying furniture, price becomes a part of any décor only in it s surrounding and it is not easy to give priority though to conformity or blending. A ready made item make look attractive useful and worthwhile for their need and desire etc. and not much existing decor. So piece is important function for the buyer buying process in furniture market. Another factor for buyer is aesthetics and it is a broad concept of buying process. It means that when they approach to a shop to buy chair furniture more reference is available for selection of design etc
  • So when someone buys furniture from a shop, any piece of chair furniture, much consideration concern with aesthetics take a main role for his or hers. Every residence and business has its own peculiarities, angles, floor area, surrounding, surface and are of their business, projections, niches, limitations and potential. So these factors may not be accepted any ready made furniture and have to create any well suit furniture for their limitations, need, and designers are main role to cater to this necessarities. The one view from the interior designers and architects is the connection might exist between the carpet area of any residence or business and the overall expenditure on decoration of their interiors. One aspect is to express any such connection as money spent for investing their business or founding their business and then spent on completing its decoration. Another factor is in terms of directly relating the area with expenditure for buying chair furniture. In some cases, if the business is well known and successful established in their field the designer tends to estimate a higher numerator and in that case price is not much speak for items but design, durability, style and standardized pattern are much more important for their work. So the client or decision of buyer is willing to pay the enhanced price of a established designer for the status it may provide or the assumed advantage of better constancy or the tacit promise of good results. But for the company ready-made chair furniture is manufactured and it is standardized, qualified for every class of people and designing and manufacturing according to the above case is very rare and it is not main target and items for company. Because the ready made furniture is manufactured only in the industry or factory and help in reducing noise in their business or area due to fixing and manufacturing to the desire of buyer or business.
  • Being manufacturing ready-made item for buyer another factor is time spent on getting work done at residence area could be reduced considerably - apart from other nuisance that may cut down drastically there is very little through given by either designers or shops. No one seems to have considered that that is a very effective way to mitigate problems. Yet there is arrangement that the problems are real and bothersome for both buyer and seller. Nowadays, population is so crowded in urban area and ownership house or flat neighbors do constantly bicker and will make complain about the loud and annoying sound of doing their noise. In case if the work is going on in the evening, it may surely disturb their environments and people. Because older person usually take a rest and relax in the evening and children may have to study to their homework in household. So outsider work force is interfering in ones routing and normal life even as a matter of safety consideration. Therefore there is a very strong case for undertaking the work of educating the public on such matter in case if they don t like ready made furniture and not suit for their area and need special items for their limitation but it is so rare case and may be occurred once in a thousand times. But with the changing take place in lifestyle and with continuous social exchange according to the globalization a new customer profile seem less prone to accept any claim on face value or on someone s say so. He may not become more knowledgeable but holes opinions and is not averse to expressing them. This is the factors of ready made furnishing has definite connotation to modern context in chair marketing. Illustrated in the earlier chapters, company manufactured and produced three kinds of chair furniture such as high, middle and low furniture for different customers and buyers although these items have same designs, size and production. For successful business or financially settled business, they prefer high qualities of products and for not well known business or financial established business the middle class qualities and lower class qualities are preferred. Although company produce three level of production depend on the view and design of buyer or customers but qualities and size designs are commonly
  • equal and can seized the desire of customers. But this is need for education. Since prowiz use handle, form and stem to a great extend in production in their future, highlighting its close connection to status could be quite rewarding. This can be very attractive for those upwardly mobile who are ken to up with the Joneses. Another factor is salvaging of old furniture or material. This is great sense of wanting to somehow reuse of the old furniture items that is being replaced. This kind of feeling is commonly occurred in the middle class of business. Therefore those in this group who want to replenish old furniture are tempted to harness the services of designers I the hope that they will somehow do some justice to this need of theirs. Those in the higher income groups also welcome any suggestion to the effect that saving in material costs are possible, although they do not raise such a point on their own. Designers are averse to such salvaging for reasons some of which are apparent. For example, costing of such salvaging results is disputes. There is wide difference in the perceptions of designers and their clients regarding the value added by such salving. So they try to steer clear of repairing work. Otherwise, company based on production depends on machine base and manual requiring special skills. In these both side, the skill and ability of designers are important and necessary for trust and believe in customer mind. This mean that the quality of making product depend on ability, sincerity, consistency, level of skill, aesthetic panache, credibility and mutual respect between customers and designers. In production, design of any items is very concern with the buying process of buyers and these have an aspect of tradition. Before hanging and accepting globalization people accept traditional design in furniture and standing traditions of any design are created over a long period covering generation. So in production chair furniture items, modern design as well as traditional designs creations are knowledge for designers and architects.
  • Yet consumers are also enamored of any thing that promises glamour and a sense of being different. New design can also connote modernity to be able to blend these two effectively can be rewarding. So ethnic pride cannot be taken for granted-although if is a very strong emotion. Moreover illustrated in the earlier chapters, company produces custom built furniture and ready-made furniture among of them ready made furniture is produced around the year but custom-built furniture is produced at the time of customer need and order. Another factor is person like or dislikes are most reveling in the choice of chairs. In showroom chairs are displaying with various colors, size and design so customer can choose make order whatever they like and so these items are suitable for displaying and attracting the desire of buyers. Likewise, sofas are next extent and also being brought increasing more in shop. People use the fact of furniture item making at home as a status symbol and one of the reason for doing so is the perception by clients that is the assured of the quality of raw material used and also that they can have better quality control upon their products and another factor is they can get their needed design. According to some getting furniture made is a status symbol. This opinion of the consumer is the surprising reaction by the shopkeepers in response to the query regarding the nuisance of making furniture at home. But for prowiz company ready-made chair furniture are produced in the industry or factory and cant concentrate making chair furniture at customer s home or outside workshop, but it is so rare for company. According to the opinion o f customer, buying ready-made items might not suit available spaces of their business, location of their work and other projections and different for different business moreover color, size and designs may not be suit for their need. So from business to business, person-to-person ready-made furniture cannot cater to such fancies and this is one reason of many people more prefer furniture done at home to buying.
  • One reason people prefer furniture to be made than buying is the satisfaction of using items designed by them because they can contribute in some way in their creation. Therefore when people buy furniture, they- almost logically- expects to be less expensive. That is to say that people wish to set a price lower for another person s choice. Moreover we can make survey to the buying process of buyer on old furniture and new furniture in shop and showroom. In the showroom of the company many chairs items display and sell to the customer but sometimes it may be left in the showroom as old furniture for long time without selling. Some time some people prefer buying old furniture than new furniture but in other case some people prefer buying new furniture than old furniture. When most of the people buy old furniture, they want to assign a lower price for products. Of course one reason for doing so is mentioned above and yet intrinsically the price of furniture could be in on way inferior in value. In effect for those who are not greatly concerned in having new furniture made under their personal supervision there exists a large variety of ready-made furniture. For this segment of the market certain different approach marketing maybe in order. Still it opens the possibility of buyback, which in turn can help those who are willing to trade their old pieces for new ones. The decision to expand into machined furniture has come not a day too soon. Lately there has been a spurt in the outlets selling imported furniture items, which is based on foreign designs. Surely globalization has had some effect on the minds of people so that they want to fell modern in outlook. The perceived utilitarian approach of some of the foreign furniture may also attract some people. Prowiz has aggressively insists on ethnic designs. This then in their unique selling proposition. Highlighting Indian designs with stress on standardization and attention to quality can be incorporated into their marketing strategy. In the buying process of prowiz company, which target the whole selling so not deal with the individual and cannot make survey who is decision maker between man and woman in a household but surveying on the whole business and institute, the leaders or
  • management team or response person or making discussion within the group members are the decision maker of buying process. An architect who is himself and interior designer felt that there is fairly clear demarcation in the product range for decorators and shops. Chairs and mostly sofa sets he stressed are best left alone by decorators to the shop where he finished products is actually observed and experienced. To him there is no real competition between designers and shops. Each ha its own and separable clientele. 4.6 INSIGHTS ABOUT KNOW KNOCKDOWN FURNITURE Initially the meaning of modular or knockdown is rather unclear, need for understanding of it by people it seems clear that the term itself is little understood by outlet owners. Acknowledging ignorance is not readily forthcoming and perceptions of its vulnerability are widely differing. But on the question of concept of knockdown furniture is getting accept and need to classify and definite. Reactions were part of the all of responses from diverse segment and people. Just as shopkeepers of ready-made furniture were a section so were the architects and other designer of interiors. Dealers have to face talks of various reaction from the buyers or clients and these reaction may be varied between two extremes such as it is not fit for use and yet it is suit for use. From the varying responses it is quite clear that the meaning of knockdown furniture is not clear and prowiz will have to educate people in this site.
  • 4.7 PERCEPTION ABOUT PROWIZ Company manufacture high, medium, low class product for varies person and business for crowded urban area so these are a fine outfit. But they should be cater their best quality output to smaller cities and should be set the reduced prices for essential quality comparable to present range of products. These factors may attract to the financial established companies, business, or household and welcome the chance of improved looks to their business for them. Company concentrate on their product quality control and they didn t deny any responsibilities for their products and make necessary commitments to improve their product qualities. Just as although they have full right of denied responsibilities, they didn t say no and replaced a set of new product instead of it .It is better result for company marketing among the competitors but not suit for a particular application. CHAPTER-V PROWIZ S DIVERSIFICATION PROJECTS
  • CHAPTER V PROWIZ S DIVERSIFICATION PROJECTS 5.1. RESTRUCTURING OF WOODEN FURNITURE INDUSTRY In present pune chair market situation, there are not much amount of chair industry and showroom for individual retailing and whole selling. Among them most of their sale are run in local area. The numbers of national wide or regional wider are far too small and none of them enjoy any significant brand equity. So penetrating with qualified chairs production and positioning in customer mind is very easy to launch for chair product. Albeit the metropolitan cities are dotted with high visibility furniture showrooms including chairs products which source their requirements from captive workshops o r local workshops/ factory level manufacturing o r import them from European countries. The state of affair is now slate to change in favor large capacity machine made standardized furniture items selling in large territories. According to this junction, the destruction of mass production chair product industry is taking roots and the former manufacturers are likely to create entry barriers for next manufacturer. These typical entry barriers will include economic of scale, capital requirement of entry and products differentiation. Prowiz company has already decided in this chair market by consideration to this barriers and market situation. Having decided to enter in this chair market prowiz consultancy has no recourse other than to care fully pursue their growth diversification project if they want to maintain growth in this new business. 5.2 IMPLICATION OF RESTRUCTURING CHAIR INDUSTRY TO PROWIZ PROJECT
  • In mass scale production of the standardized chairs, manufacturing technology changes through the use of computer aided manufacturing and high level automation so it will call for formal and system oriented internal and external producers which are not exactly in consonance with the existing organizational culture of prowiz. Nonetheless in order to be successful prowiz will have to manage such a change successfully. Prowiz manufactures no t only fixed item but also knock down items in industry to standardized chairs which illustrated in strength and weakness of prowiz in earlier chapter, so these type of manufacturing is not done by other large scale manufacturer so far. So prowiz can take a substantive competitive advantage n which can offer unique positioning in customer mind in market and can get the customer pull strategies. Prowiz make and fully exploited through marketing driven and positioning in customer mind in such kind of situation moreover company extend their market efforts to other crowded urban n cities such as mumbai, bang lore, Delhi and pune and can get the interest of customers and keep abreast with the competitors. In later other crowded urban centers in the states and other states will have to be reached and extended. For a manufacturing company, to run business operations, manufacturing strategies is very crucial and adequate role and must put in place correctly. By using and formulating these correct strategies company can produce correct amount of output in right quality at right place and can save time and money. Prowiz formulate these facts of strategies rhythmically and get successful business among the competitors and chair market. Some of the adequate roles of production department are illustrated as below: Planning and scheduling of working time. Technical effects of manufacturing.
  • Design& R&D: tool room management. Product standardization. Inspection and quality control management. Maintenances technique etc. To run a successful business, HRD (human resource development) is necessary and has to be undertaking all personnel works. It is obvious that in managerial state professional workers managers, engineers, designers and functional specialists will be employed together with their administrative and clerical support. Moreover shop floor supervisors, skilled, semiskilled and unskilled technicians/ workers and maintained and inspection personnel must combined and employed together. By giving imparted job specific training to these personnel, HRD can manage and formulate personnel policies for business. In a business marketing and manufacturing are connected together and can t separate each other. So marketing department has to be deal with these facts: The breadth of product line Inventory level of finished products The frequency of model decision/style change Time period in developing, testing and introduction in new products Concern with the product mix in pune branch, there is no dealer not customers in market because for Pune Company it targeted with the whole selling and direct contact with the whole number of chairs customers such as institute private company and public
  • companies not target with the retailing market. so the study has no chance to survey and make the question to the dealers average number of furniture items sold by you per month and also per annum and another question in each of the items answered by you indicate the proportion of total all designed chairs. But according to the word of management and leader of pune branch, annual turnover of mumbai headquarter is round about 62 million and just in pune branch annual turnover is 2 million only because launching chair market in pune is not so far and they are trying to get positioning in the market and among the competitors. But later they hope to extend their market in pune and can seize chair business other than competitors. In aspect of financial management, it will participate as a major role for new project of company. Proper capital structure, cash inflows and out flows, working capital management, credit policies and pricing strategy for raw materials and product aimed at target rate of return will have to be managed effectly. Prowiz has not taken loans from financial institution so far but for the new project they appear to take and have to do so. 5.3 CONCLUSION In conclusion, prowiz new project is sound and excellent schedule for their business. But to get successful business among competitors and market have to apply total integrated management approach and undertake. Family-related managers are keeping away from business and this will require a new mind set. Prowiz will have to be prepared for such a change. So, personnel management, quality management for products and financial management policies must be initiative for new project.
  • CHAPTER-VI SUGGESTION FOR FUTURE COURSE OF PLANNING 6.1 INTRODUCTION After studying prowiz consultancy company and surveying customers, dealers/ interior designers of company it can be seen that prowiz company s conceptualization and strategies for future plan are sound and suitable strategies for pune chair market. There is a tremendous scope for standardized, wood-based, lather-based, traditional and modern styled chair manufacturing. However certain limitation of prowiz consultancy company will have to be overcome in order to be successful in the new venture. 6.2 SUGGESTIONS FOR FUTURE COURSE OF PLANNING Actually our mandate was limited to study pune market with a view to suggest a market plan for the new project. Based on our study we have made a few suggestions for the future course of planning and future necessary strategies to launch in pune market for prowiz consultancy company. Suggestions for future course of planning for prowiz s future market What prowiz will have to do? 1. Formulation of Broad Cooperate Policy& strategy, which will include as follows. Have to plan organization strategy n policy at least 5 years n more. Have to formulate organization structure, division sections, etc Financial, production, materials and human resource related to sub strategies. Marketing strategies (It cannot be obviously prepared in isolation. it has to be simultaneous exercise with other functional strategies.)
  • 2. Marketing plan o Have to decide the marketing plan period o Have to define the sale targeting and positioning o Choose product mix target for selling chair furniture o Pricing decisions for the products at every stage up to customer s reach o Costing of the product up to factory warehouse and deciding the margin for the distribution o Distribution chain decision (channel member required, contract and terms and conditions, transport arrangements, inventories to be maintained, credit policies). Middlemen sale force in personal selling o Advertising (budgets, media planning, copy decisions) and publicity (influencer, media), sale promotion (dealer display, brochures) after sale services and guarantees. Marketing information system designing and implementation. SUGGESTION ON MARKETING STRATEGY FOR PROWIZ S NEW PROJECT Company has a good reputation in other cities although pune branch is not long in penetrating in market so should have to advertise and make publicity heavily to create an image. Advertising will have to be informative as this concept is new. Concern with the price it should be competitive because about 5% or 10% higher price will accept by the customer but more than it is very difficult to accept customers. In showroom demonstration, should be used more effective and attractive ways such as explaining to the customer about pros and cons of furniture, why the new
  • products are different and advantages and usages of items so that should employed polite sell man and explain through advertisement and personal selling. Guarantee is most important case for selling and creating confidence. Similarly, after sale services, if required would have to be offered.
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