1. 1
Summer Training report
On
Consumer Brand Preference of drink ware
and dinnerware
ARC INTERNATIONAL
Submitted in partialfulfillment of Post Graduate
Programme
By
Suruchi Goyal
PGDM 10-12
FT-10-960
IILM GRADUATE SCHOOL OF MANAGEMENT
Greater Noida
2. 2
DECLARATION FORM
I hereby declare that the Project work entitled___________________________
_____________________________________________ (write the title in Block Letters)
submitted by me for the Summer Internship during the Post Graduate Diploma in
Management Program to Institute for Integrated Learning in Management, Greater
Noida is my own original work and has not been submitted earlier either to IILM GSM or to
any other Institution for the fulfillment of the requirement for any course of study. I also
declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this
report from any earlier / other work done by me or others.
Place :
Date : Signature of Student
Name of Student : _____________________________
Address : _____________________________
______________________________
________________________________
3. 3
Acknowledgement
I would like to firstly extend my gratitude to my Company mentor,
Mr. Ajay Dhyani ,Marketing Manager ,Arc International for providing
me the guidance and support to choose a suitable project and also
help me properly analyze and understand the right course of progress
so that I could successfully complete the project.
Secondly, I want to thank my institution and especially
Ms.Vasundhara Tomar, Assistant Manager, Placement who helped me
to find the best organization to enhance my learning and get the best
out of the Summer Internship program.
Lastly, I want to thank all my family and friends to help me with the
survey and the respondents for taking out their valuable time to
answer my queries with enthusiasm.
4. 4
Executive summary
Arc international is the world leader in tableware industry with its headquarters in Arques,
France having its production in France, USA, China, UAE and Spain and distribution in
160 countries. It caters to mainly the business line Consumer Good, Business to Business
and Food Service through its various merger and acquisition like Cardinal International,
Newell Cookware, Pasabache, Rak Glassworks etc.
Arc International has 5 major brands namely Luminarc, Arcoroc, Chef and Sommilier,
Pyrex and Cristal d Arques for the general public. The b2b clients are provided with
customized product like promotional gifts and advertisement according to their needs like
Coco-Cola glasses for Mc Donald.
The project has been carried out to understand the consumer brand preference for the
dinnerware and drink ware in Delhi/NCR region and it has been found that the consumer
still prefer the traditional form of Steel dinner set for their daily use but the rise in income
and lifestyle has led to the increase in the use of glass, opal and melamine dinner set as
well. Again, the drink ware products are also significantly increasing with almost every
household using it.
The concept of retailing and home theme based shopping centers have also made it
possible for the consumer to accessibly reach the desired tableware product with comfort
but the wholesale market still are the most favorable destination for shoppers so it is
important for the companies to set an efficient distribution network to adhere to the needs
of every type of individual.
Despite the fact that the consumer use the tableware products more frequently the brand
awareness of the respondent were very narrow because of lack of brand recall due to in
sufficient advertisement and promotion by the companies. It has also been seen that the
consumer mostly prefer the design before knowing the brand in the dinnerware and drink
ware segment thus making the brand irrelevant and unimportant for their first preference.
Though brand image plays an important role it is up to the retailer to produce the true
image of the brand since most of the consumer is likely to be ignorant about the same. So,
it is necessary to position the brand image and reputation in the consumer so that quality
when delivered and brand loyalty is received in return.
Lastly, the tableware industry has a huge perspective to expand in consumer goods line
since people prefer new and innovative items daily to decorate their homes as well as gift
others. So, a huge market awaits the tableware industry which would likely add up to the
revenue of the company if strategically planned to cater.
5. 5
Table of contents
Chapter Title
1. Tableware Industry
Company Introduction and history: Arc International
Company global Strategy: Merger And Acquisition
The Management Team
Financial Report (2006-2009)
The Arc Brand Gallery
The Green Statement
Success Stories and sustainable development
2. Consumer Brand Preference in Dinnersets and Drink ware
Introduction
Research objective and descriptive summary
Buying trend in dinner set and drink ware
Value for money
Consumer brand Awareness
Market Opportunity–Conclusion and recommendation
3. Appendix
4. References
List of tables
Table 1: Company Strategic objective
Table 2: Company History
Table 3: Arc Internat6ional Sales Revenue region wise
Table 4: Arc Internat6ional Sales Revenue business line wise
Table 5: Supply Chain of Arc International
Table 6: Emission of carbon dioxide per tonne of glass produced
Table 7: Sorting and recycling
6. 6
Table 8: The 3P’s of Marketing Luminarc
Table 9: SWOT analysis of Product feature of Glassware dinner sets
List of graphs
Graph 1: Indian Household Income per annum
Graph 2: Frequency of use of different types of dinner sets
Graph 3: Consumer Buying Behavior
Graph 4: Location preference of consumer
Graph 5: Clockspeed of purchase of dinner sets.
Graph 6: Clockspeed of purchase of glassware items
Graph 7: Preferred Price range of the consumer.
Graph 8: Brand Awareness of dinner set
Graph 9: Brand Awareness of drink ware
Graph 10: Consumer preference of channel of communication
Graph 11 Gift item preferences in glassware
Graph 12: Preferred price range of gift items
7. 7
Introduction
The tableware market in India is estimated to be around *INR 30 Billion in 2007 including
the unorganized market. The organized tableware market which is around 8% of the total
market
The organized tableware ,market is growing at the rate of 15-20% on an average after taking
into consideration the effects of slowdown. .
The tableware industry in India can be segmented based on –
On the basis of use by consumer:
Dinnerware,
Beverage Range
Barware Range
Serving Bowl and Containers
On the basis of Material used for manufacturing
Stainless Steel – with & without Matte Finish
Ceramic – Bone China & Porcelain
Glassware – Transparent glassware & Opalware
The market size of Glassware ,which is at INR 12 billion is the largest in the total tableware
market in 2007-08. Based on the application of tableware - beverage range is the fastest
growing product category growing at around 20-25% p.a. and contributes maximum to the
sales of tableware manufacturers..
Arc International is a privately-owned, French company and the worldwide leader in
Tableware. With a workforce of 19,000 across the world and 5 well-known brands (Luminarc
, Cristal d'Arques Paris , Arcoroc , Pyrex , Chef & Sommelier ), Arc International is active in
over 160 countries. Founded in 1825, ARC INTERNATIONAL remains a family business
after more than 175 years. With its headquarters in Arques,France, the group exports 83% of
its production to 160 countries.
8. 8
To reflect the international nature of its operations, the company replaced its former name,
the Verrerie Cristallerie d’Arques, with ARC INTERNATIONAL in 2000.In addition to its
facilities in France, the group has factories in Spain, Italy, U.S.A. and China. Today,
ARC INTERNATIONAL employs 16,000 people and has an annual turnover of €1.3 billion.
ARC International has been owned by the Durand family since 1916.
Table 1: Company Strategic objective
Table 2:Company History
YEAR ACTIVITY
1825 CREATION OF VERRIERIE
CRISTALERIE d’Arques(former name of
Arc International)
1897 George Durand becomes director
1930-1934 First tank furnace installed at Arques by
Jacques Durand which were started
uninterrupted glass production
1948 Creation of the first Brand Luminarc and
decoration department.
1958 First experiment and development of opal
Glass by the name of Arcopal.
Mission
Offerour customers and consumers innovative and high-
quality products and services.
Vision
Be recognized as the tableware leader in all markets which
have significant growth or value added potential.
Values
• Respectand fosterthe developmentof men and women :
by developing their skills and employability.
• Satisfy consumerand customerexpectations: by being the
leading brand in terms of innovation,quality and service
to customers.
• Ensure the Group's continuity: by choosing to develop
high-profitactivities.
9. 9
Creation of non-household catering brand
Arcoroc was created.
1960 Automation of stem glass production and
production of first stem glass on industrial
scale.
1966 Creation of first sales subsidiary in USA by
name JG Durand
1968 Automated Production of first crystal product
marketed under the brand Cristal d Arques
1980 Production group,Vidrierie Cristalleria De
Lan in Spain joins the group
1982 Creation of Durand Glass Manufacturing
Company In USA
1986 Brand Arcopal replaced by smoked cookware
range Arcuisine
1999 Takeover of Salviti, a traditional glass works
in Italy
1990 Creation of Oscar for food container HIFI jar
1994 pioneered in laser engraving
2000 Changed its name to Arc international and
bought Mikasa, a leading distributor of
tableware in USA
2003 Production site installed in China Arc
Glassware Nanjing
Distribution Companies of Barnett and
Alcester bought
Acquires wholesale Eneriz.
2004 Arc international Middle East created after
becoming Partner with Rak Dubai
Arc Distribution France is created and Fiba is
acquired
Acquisition of distributor Cardinal Group.
2006 Creation of Arc International Cookware after
purchase of Newell cookware Pyrex brand.
Creation of own distribution network through
Salvaiti Boutiques and factory outlet as well
as opening of Arc International Store in
Home theme shopping centre in Paris region
JV with Pasabahce to cater food Service
Sector.
Creation of Kwarx brand.
2007 Arc International Group has concluded the
partial sale of the Salviati brand's activities
10. 10
Global Strategy: Merger and Acquisition
Arc International has been over the century expanded its production to five major countries
with a major distribution to about 160 countries. ARC International is present in five
continents with production sites (France, UK, Spain, USA,Italy, China, UAE) distribution
subsidiaries (France, USA, UK, Spain, Australia, Mexico, Brazil,Japan, Italy), liaison offices
and a network of fully owned retail outlets, Mikasa stores (USA and Canada), outlet stores,
Salviati jewel stores, Arc Decoration and Arc International retail stores.
The first production house in Spain was set up by the joining of Vidrierie
Cristalleria De Lan.
Another partnership with Rak Glass, a glass works company in Emirat of Ras –al
Kimiah help set up Rak Dubai.
Acquisition of Salviata In Venice, Italy
Joint Venture with Pasabahce to form Arc Pasabahce Food Service
Distribution companies of Barnett and Alcester acquired to form Arc
International tableware United Kingdom
Acquired wholesaler Eneriz to form Arc distribution Iberica
Acquiring of distributor Cardinal International Group operation in New jersey which now
serves the North American Food Service and Hospitality Industry exclusively with
four brands Arcoroc,Chef and Sommelier, Elemental and F&D
Formation of AIC after acquisition of Pyrex brand of Newell cookware.
The company has been pro active in expanding its production and distribution
network through a streamlined work force and efficient supply chain consisting of
all intermediate distribution channels to reach the final consumer.
The company also has patented material and processes like Extra Strong
Porcelain® and Maxima® bodies, Opal® and Kwarx® to secure its technological
knowhow.
11. 11
The Arc Brands gallery
Luminarc is the major tableware brand. Attractive to all, it knows no frontiers and is Trans
generational. Its complete range includes plates, cutlery, glasses, dishes and decorative
items
In 1968, Cristal d'Arques Paris made news by automatically manufacturing crystal for the
first time. Its collections of stemware, cocktail and whisky glasses, vases and accessories are
well recognized.
Pyrex, which is specialised in the cookware products segment is now used in all kitchens
from ovens to utensils, from refrigerators to microwave ovens. The brand offers a complete
range of products of different materials (glass, steel, metal, microwave and ceramic
plastics),to meet consumer needs.
Arc International has created the Chef & Sommelier brand, evoking French tradition and
oenology heritage. A brand for connoisseurs, it now includes all the wine and fine dining
product lines, the latter being reserved for professionals of hotel & catering industry.
Arcoroc offers its expertise to professionals. The brand is known for its quality, strength and
functional qualities, covering all commercial and food service needs (hotels, restaurants, local
administrations). Arcoroc offers a complete range of items in different materials: glass,
porcelain dishes and stainless steel cutlery.
13. 13
The Management Team
Besides it has offices in the countries where the products are sold and are distributed through
Importers, distributor and wholesaler within these countries. Its Indian office is located in
Gurgaon from which all the different states are catered.
14. 14
Financial Report
Arc International succeeded in reaching its targets in 2008, in spite of the difficult economic
Climate. With an operating profit of €39 million, up from €10 million in 2007, the Group has
been able to cut back on indebtedness.
YEAR 2006 2007 2008 2009
Sales Revenue €1.4 bn €1.5 bn €1.2 bn €1 bn
Europe 59% 59% 65% 56%
North America 27% 23% 12% 14%
International
Division
14% 18% 23% 30%
Table 3: Arc International Sales Revenue region wise
Arc international mainly operates in three major business lines:
Consumer Goods for general public
Business to business
Food and service sector.
The main business comprises of the consumer goods followed by b2b where Arc provides
promotional gift items for their clients and helps develop business for both the
organizations. The food and service sector is catered by the Cardinal international group
of Arc along with the JV of Pasabahce Arc Pasabahce food Service catering to the
industry.
Turnover 2006(€1.4 bn) 2007(€1.5 bn) 2008(€1.2 bn) 2009(€1bn)
Consumer goods 63% 57% 52% 53%
B2B 20% 25% 27% 27%
Food Service 17% 18% 21% 20%
Table 4: Arc International Sales Revenue business likewise
The company cost structure consists of the several machinery used for production as well
as timely up gradation of the same in order to comply with quality and safety standards.
The company heavily invests in R&D which comprises of nearly 3% of the company
turnover and also continuously invests in:
New materials production,
Industrial process improvements,
15. 15
Environmental impact reduction,
Low energy consumption decorating techniques.
Many safety and health measures programs are carried out by the company to train its
employees as well as CSR programs by Arc Distribution Iberica was strongly committed to a
campaign run by the Spanish confederation of associations caring for people with cerebral
palsy and similar disorders and the Carrefour Solidarity Foundation is also supported by the
company.
The Supply Chain
16. 16
Table 5: Supply Chain of Arc International
The Green Statement
Factory
Improters/Supper
Distributor
Retailer Distributor/Dealer
Own
Store/Multibrand
outlet (Salviata)
Cutomer
17. 17
Conserving resources and preserving the environment is our best gift to future generations.
“Our global teams share a commitment towards the growth and
sustenance of
a beautiful environment.”
Arc has concentrated time and energy on choosing ways to specifically impact the energy
consumption, atmospheric pollution, waste management, and material choices. It has been
seen that European reference document on technologies used in the glass-making world has
ranked Arc International among those companies that are the most respectful of the
environment. They use the ISO 14001 standard to ensure that the organization is set up to
reduce the environmental impact like AERES program (in France) and the PNAQ program
(national plan for allotment of quotas) based on the Kyoto protocol to reduce CO2 emissions
is used.
ARC / Cardinal International is committed to the United Nations Global Compact program on
May 14, 2003 thereafter 20% reduction in the use of water and a 12% reduction in
greenhouse gas emissions has been sustained. They are now recycling 10 times the amount of
plastics that were recycled in 2003 and have reduced the energy consumption by 9% through
recycling glass in the manufacturing process. Materials such as glass, Opal®, Zenix® and
stainless steel can be recycled.
18. 18
It is important to define environmental protection to be actions as priorities and maintain it
throughout the world which has helped Arc survive.
Durand Glass Manufacturing Company, Inc., the North American manufacturing subsidiary
of Arc International, is located in Millville New Jersey Prior to 2005, the glass decorating
process used paints containing lead because of the paint's quality and durability. During this
time they partnered with the NPEP program with a lead reduction goal of 80%. Upon entering
the program in December 2005 their paint inventory contained l3, 804 1bs. of lead. By
December 2009 this was reduced by 94% to 791 lbs. and all the existing paints contain only
trace amounts of Lead. (National Partnership for Environmental Priorities)
Key actions taken by Arc International
Commitments to reduce energy consumption and waste.
Reduction of environmental impact of production and distribution facilities.
Construction of buildings in compliance with High Environmental Quality standards
Awareness-raising on environmental issues for all employees.
Optimization of transport.
The packaging of the company has been designed to use 100% recyclable kraft board
from sustainably managed forests
Anti-corruption businesses should work against corruption in all its forms, including
extortion and bribery.
Year 2006 2007 2008
Europe 1.00 1.02 0.99
North America 1.24 1.18 1.11
International
Division
1.42 1.35 1.21
Table 6: Emission of carbondioxide per tonne of glass produced
Plastics (tones) 2006 2007 2008
Europe 835 864 723
International
Division
- 226 186
Paperboard(Tonne)
Europe 10528 10398 8797
North America 740 816 836
International division 1051 1018 851
Metals(tones)
19. 19
Europe 3200 2173 2969
North America 176 194 183
International
Division
35 58 119
Table 5: Sorting and recycling
The recycling material depends upon the consumption which was limited during 2008 thus
showing decrease in recycled material.
Success Stories and sustainable development
20. 20
Anniversaries
Three of the Group’s leading brands celebrated their anniversaries one after the other in 2008:
Cristal d’Arques celebrated its 40th, Arcoroc its 50th and Luminarc its 60th. What
better proof of Arc International’s staying power and its ability to get its products to achieve
sustainability.
A billion balloon glasses
Arc International produced its billionth balloon glass in 2008, 50 years after the first model
emerged from the Arques factory furnaces. More than one balloon glass a second is sold
somewhere in the world! Having become a standard glass in many countries, it suits most
needs at a very affordable price. Over the years, the resistance and durability of this product
have been enhanced with the introduction of new production techniques.
. In 2008, 9 million additional units were ordered by MC Donald.
Marketing the Technological Know-how
Technology Centre along with Axe 3DRobotics, they have set up two other structures based
on the same model: AGMS (Arc Glass Melting Solutions), for glass melting and furnace
design, employing 120 people, and AEC (Athena Equipment and Construction), employing
100 people at Arques and 60 in China. Two other subsidiaries originally working for
the Group alone, MMV, for moulding and shaping, with 180 employees, and C&P, for board
and plastic, with 110 employees, have now opened up to external customers. Indeed, they see
themselves as suppliers of customised solutions, able to really listen to the customers’ needs
The Clientele
Arc international has clients across 20 sectors world wide with major beverage companies
like Chivas regal, Smirnoff, Havana and fast food sector like MC Donald along with many
breweries, food sector, banking and insurance companies providing them promotional gifts
and advertisement through the products.
Over the 185 years of existence Arc international has positioned as the world leader in the
tableware industry through their innovative designs and production style bringing them the
most recognized organization as their clients and a dedicated team of personnel who are
highly engaged in the development of the organization ensuring sustainability and higher
levels of success.
Research Introduction
21. 21
“Authentic marketing is not the art of selling what you make but knowing what to make. It is
the art of identifying and understanding customer needs and creating solutions that deliver
satisfaction to the customers, profits to the producers and benefits for the stakeholders”
Prof.Philip Kotler
A consumer is the guide of every seller and it is important to carefully and sincerely
understand his needs to be able to sustain in present competitive environment Every product
and service require careful research and observation which provides the roadmap to the seller
to frame all his marketing strategy (The 4 p’s) accordingly.
India accommodates roughly 1/6 population in the world and it is very crucial to understand
the trend and behavior patterns of Indian Consumer in order to succeed in the country which
is ranked in No 2 spot in 2010 Global Manufacturing Competitiveness Index, a collaboration
between Deloitte Touché Tohmatsu (Deloitte) and the U. S. Council on Competitiveness
(Council).
With the changing trends in spending and lifestyle of the approx. 222 million households
where dinner sets and drink ware used in daily basis an estimated figure by a study published
by the National Council for Applied Economic Research (NCAER) in August claims a
remarkable rise of the Indian middle class households with an annual income of at least
$4,000, to around 46.7 million, representing a population of about 200 million individuals. 4
Graph 1: Indian Household Income per annum Source: NCAER
Also every segment of household has seen an increase in disposable income leading to higher
spending capacity and changing lifestyle leading to adoption of newer trends and habit so it is
necessary to identify the business opportunity for dinner sets ,drink ware and decorative
items.
0 50 100 150
less than 1000
1000-4000
above 4000
Total no of household(in
million)
Household Income(in $
per annum)
22. 22
Thus, Indian household being our main target market we undertook the project to identify the
actual trend in the present target segment to mould the future decision accordingly.
Research Objective
The project was undertaken to study the consumer buying habit and preference with respect
to the product offering of the brand Luminarc mainly Glassware and Dinnerware.
Sample Size: 150
The sample would consist of the homemakers from various areas of Delhi which has been
sub divided according to the 4 zones and includes 2 NCR regions. The sample would be
House maker
Sampling frame:
The Delhi region has been sub divided as under:
North Delhi: Rain bagh, Model town, Kamla Nagar, Wazirpur.
East Delhi: Laxmi nagar,Mayur Vihar
West Delhi: Rajouri Garden, Paschim Vihar,Karol Bagh,Connaught Place
South delhi:Lajpat Nagar,Saket,South Extension
NCR region: Noida,Gurgaon
Researchdesign:
The design would consist of mainly the following descriptive designs:
Observation
Survey(Web mails, Telephonic interview(database)and field work(primary research))
Descriptivesummary:
The above design which would be conducted for a period of 20 days which would deduct the
following conclusion:
23. 23
The present level of satisfaction of serviced customers.
The present trend and future potential in the market for glassware and dinnerware.
The awareness of brand and the most preferred brand in the market.
The preferred medium of promotion and distribution channel.
The buying needs of the customer.
Limitationof Study:
The sample size collected may not adequately represent the whole Delhi Households.
Web search maybe conducted by the mailed respondents to make themselves familiar
to the brands.
The telephonic respondents may have intentionally not answered to make the
conversation small.
Unable to understand the questions properly may lead to certain errors.
The research was conducted over a period of 20 days which provided a lot of insights on the
necessary aspects in the present business of the company which are mainly:
24. 24
Table 8: The 3P’s of Marketing Luminarc
Findings
The dinner set market is still following the traditional trend where the home makers still
prefer steel dinner sets for their daily need which is around 54% of the total sample. The glass
dinner sets closely follow with around 31.25% home maker using it in daily basis. It can also
be seen that silverware dinner sets are not preferred in the market due to the high cost and
maintenance involved.
• Design
• Material used and VarietyProduct
• Sensitivity of customer
• Offer and promotion
• Occassion of purchase
Price
• Preferred market Place
Place
25. 25
Graph 2: Frequency of use of different types of dinner sets
Presently, there has been a rising trend in the use of Melamine and Plastic dinner sets because
of unbreakable and microwave resistant feature. It is also observed that homemakers prefer
using plastic utensils because of low handling needs and cost benefit.
Again, it can be seen that Plastic and melamine dinner sets are alternatively preferred with
other types of dinner sets accounting to 46.7% of the total respondent.
The dinner sets of Luminarc come in the category of glass form and are occasionally used
even at present time which is mostly to serve guests and visitors .But presently ,the upgrading
of the lifestyle has lead to use of glassware dinner sets as an alternative to steel ware as it
provides a sense of better presentation and style.
Again, silverware and melamine also fall under the least preferred forms of dinner sets with
80% and 20% rarely using silverware and melamine dinner sets respectively.
Also prefer equally do not use silverware and melamine because of various reasons like cost,
lifestyle, quality and maintenance of product.
Thus, Indian consumer may still prefer steel ware to glassware but the latter seems to
gradually catch up the formers market thus providing a lot of scope for the company to
provide better quality dinner sets at economical range in order to capture a wider market.
0
10
20
30
40
50
60
70
80
90
steel
glass
silverware
melamine
26. 26
Strength
Incorporation of various designs.
Modification in set of pieces
according to requirement.
Various features like chip resistant,
microwave resistant etc feature can be
added.
Opportunity
Customers are attracted to new
variety.
Price can be set accordingly and help
in selling more in sets.
Due to growth in electronic means of
heating would likely have increased
scope.
Changing lifestyle.
Weakness
Non durable or easily breakable.
Expensive and not economical.
Sets consisting of many pieces last for
a very long time thus replishment
clock speed is long
Threat
Steel ware items are coming up with
sets with various designs.
Less expensive alternative like
melamine and plastic are eroding the
market.
Table 9: SWOT analysis of Product feature of Glassware dinner sets
The glassware dinner sets have a lot of inherent feature which are preferred by the buyer such
as chip and microwave resistant and presently unbreakable material is also found in the
market but there are also various material which provides durability and value for money like
steel dinner sets which attract to the customer thereby taking away the market of glassware
dinner sets.
27. 27
The Trend in Dinner set
The best public policy is made when you are listening to people who are going to be
impacted. Then, once policy is determined, you call on them to help you sell it-Elizabeth
Dole
It is very important for every organization to be aware of the preference of their target
consumer to successfully develop and market the product in order to increase the profitability
and sustainability of their product. Every product has unique blends and features which
attract and induce them to buy it. Human buying behavior has always been a matter of study
and research for the market researcher and a lot of variation has been observed in buying
pattern for different products because of their usability. With regards to the dinner sets mainly
the research helped find out the influencing factors while purchasing dinner sets where they
firstly see the design of the dinner sets in the market.. Thus, desings are the most important
factor for a consumer while buying dinner sets and good designs are likely to increase sale for
the company. Again ,the consumer also seem to be brand conscious and rank brand image as
their priority followed by 12% of consumer likely to see the price first before buying the
product.
Graph 3: Consumer Buying Behavior
0
10
20
30
40
50
60
70
80
Always Considered Likely to consider least Consider Do not consider
Design
Availability
Friends Reference
Price
Offer and promotion
brand Image
28. 28
The consumer considers a lot of factors before making the purchase like availability of the
product followed by the price and offer and promotion which help them make the final
choice to purchase the product. So, it is necessary for the company to strengthen these
features to attract more consumers. Again, the consumer seem to be unaffected by the
friends reference for any product so word of mouth form of advertisement seems to
considered the least considered factor influencing the buying behavior of the consumer
for dinner sets.
Considering the above finding, it can be suggested that in order for the company to
expand their consumer base, they should
Provide various new and attractive designs in the dinner sets
Build a brand image through loyalty program, membership offers and
advertisement to highlight the brand as well as build good reputation.
Build a strong supply chain of distributor and dealer so that the product can be
made available to the target consumer at the preferred location.
Market the product with new feature and provide attractive offers and promotion
schemes in the dinner range providing value for money to the consumers.
Considering the above aspects we can see that it is very important for the product to have
a strong supply chain so that it can directly reach the consumer at the most accessible
location so the following research was conducted to determine the favorably shopping
areas of the consumer for the dinner sets in order to help the organization enhance the
supply chain network of the company.
The above figures have been calculated on the basis of partial responses from the samples
since all the features were not necessarily ranked so the figures show the relative
importance of a feature in the total responses actually obtained.
29. 29
Graph 4: Location preference of consumer
As we can see that the consumer mostly prefer to buy the dinner sets from the wholesale
market in the Delhi /NCR region namely Karol Bagh,Gaffar Market,Sadar Bazar,Deputy
ganj,Khan market etc. The main reasons for strong preference of the wholesale market
being :
More choice and variety of different brands,
Range of price and more number of shops available for best price
High level of bargaining is possible as well as trust worthiness from a regular
dealer or wholesaler ensures more value for money.
Secondly the consumer prefer the exclusive shopping centers (Home Centers) as their
shopping location which provide a wide variety of home utility products in the realm of
extra ordinary décor and ambience luring more consumer to shift their purchasing
location. The main advantage of the shopping complex being:
Good ambience attract consumer since it proves hassle free shopping experience.
Provides all range of home products thereby eliminating the need to visit different
shops to buy products used at home.
The present accessibility and fad of visiting malls also has raised the preference to
buy all the products from outlets in the malls.
Though ,some 4% people do not have a particular preference of location whereas the local
Neighbourhood
Market/Local
Market
22%
Wholesalemarket
45%
Malls(Home
Centres)
29%
Nothing Particular
4%
Location Preference
30. 30
market or neighborhood shops providing dinner sets are an important buying location
with 22% people opting for the nearly market since it is:
Easily accessible to the consumer.
Trust worthiness because of regular dealing.
Dinnersets purchased of Low Volume Low Value do not require too much of
consideration.
Thus, it is required for the company to mainly capture all the available wholesale market
along with which a strong distribution network should be built to make the product
available at various exclusive outlets in malls as well as local markets which are easily
accessible to the consumer so that they can ensure maximum reach of the product.
Value for money
31. 31
Consumer want value for their money and since dinner sets are products which are used
daily it is always preferable to purchase a range of economical dinnerset.It has been rather
observed that since the frequency of use of glass dinnersets are very less comparative to
steel. The frequency of purchase or clock speed with to purchase dinnersets is a year for
almost 33% of the respondents followed by the tenure of 2-3 years to purchase dinnersets
because:
Durability of dinner sets so less breakage and exchange.
Frequency of use is less leading to less purchase to avoid over stocking.
The dinner sets are mostly gifted so they do not purchase as use of dinner sets is
not common at home.
Graph 5: Clockspeed of purchase of dinner sets.
Again, we should also consider the glassware range which is the most preferred items for
personal use and gift for the consumer because of the change in lifestyle, social
networking and availability of economical items. It has been observed that the glassware
range are more frequently bought because of the fragility and usage and thus the company
should give more attention to the segment of glassware by providing more variety,
designs and offers in the range of glassware .Considering the same the frequency of
purchase of glassware items is as shown in table 7 where glassware items are mostly
bought every 3 months consisting of varied segments of beverage glasses for coffee,
juices, tea and beer. In the same research it has also been seen that beverage glasses are
among the most gifted items in festivals and marriages thus a lot of scope as a gift item
0-6 month
7%
6-12
month
33%
1-2 year
14%
2-3 year
16%
3-4 year
9%
4-5 year
9%
do not purchase
12%
Clock Speed of purchase of dinnersets
32. 32
arise for glass sets.
Graph 6: Clockspeed of purchase of glassware items
It is also important to consider the price range the customer usually prefer to buy so that it
provides the production and marketing line a fair idea about the breakeven point of sale. The
financial decision being an important aspect in every company a well designed strategy helps
the formulate successful decision leading to profitable business. It has been observed that the
consumer mostly prefer buying product in the range of 1000-3000 in dinner sets of various
pieces combination.So.it is likely that the consumer would foresee worthiness to buy dinner
sets in the range of 1000-3000 depending upon the liking and preference. Also a major part of
the sample also preferred the range of 3000-5000 with 23% homemaker ready to purchase
dinner sets if they like the design but for daily purpose they would prefer the slightly lower
range.
The design and preference of the customers also play an important role for around 5% of the
customer who do not consider price to be an issue and 25% customer prefer to buy product at
higher range of 5000 and above. So, in order attract this niche market it is necessary to create
and market new and innovative designs which would lure this segment to make purchase.
monthly
20%
quaterly
33%
bi-yearly
25%
yearly
14%
1-2 years
8%
Clock speed of purchase of Drinkware
33. 33
Graph 7: Preferred Price range of the consumer.
Thus, like every product various segments of consumer lies in the dinner set and it is
important for the organization to develop different strategy to market and cater to various
segments by:
Providing attractive designs to the niche market consumer who are not sensitive to
price.
Provide value for money for consumer who are sensitive to price and lies in the
middle range since they constitute the major part of the revenue for the organization.
0
20
40
60
80
100
5
41.66666667
23.33333333
25
5
PreferredPrice Range
Depends on liking
5000 and above
3000-5000
1000-3000
0-1000
34. 34
BRAND AWARENESS
“Every advertisement should be thought of as a contribution to the complex symbol which is
a brand image”-David Ogilvy, O&M
“Positioning the brand and regaining trust are all smart things for us to do and those are
the litmus tests for any decisions we make”-John McKinley
As a seller it is very important to understand the consumer psyche and position your product
according to their needs and make them loyal to the brand which would can be measured
from the awareness and brand recall. To understand the brand positioning in the dinner set
and glassware market the survey was carried out which revealed that the sample were not
aware of many brands in the dinner sets which may be due to lack of advertisement and
branding strategy but among the awareness Corelle was the brand 24% of the respondent
recalled followed by brands like PCN, Ektara etc producing melamine dinner sets. Again, La
Opala was also a popularly used brand with 20% homemaker using it followed by Luminarc
with 14% recalling the brand.
Graph 8: Brand Awareness of dinner set
It was also observed that many respondents were not able to recall any brands even though
they use it in a daily basis because of lack of brand awareness due to various extraneous
variables. From a similar research in the market area it has been seen that the advertisement
in various forms like poster, offer and promotion of the brands the respondents were mostly
aware of were more visible then those of brands which were less known.
Corelle
24%
La opala
20%
Luminarc
14%
Bone china
10%
Others
24%
No idea
8%
Brand Awarenessof
dinnerset
35. 35
Graph 9: Brand Awareness of drinkware
In the segment of drink ware the scenario was different since the companies although
followed the same branding strategy for all their product but due to higher availability,
quality product and higher frequency of purchase the respondent were aware of the brands of
drink ware used and frequently purchased and Luminarc being the most preferred brand by
22% of the sample followed by Borosil and Yera brands.
From the above research it can be deduced that:
The products which are frequently purchased have higher brand recall that those less
frequently purchased.
The only way to position a brand by using various forms of promotion strategy to
make the target consumer aware of the brands.
Provide quality and durable product so that the consumer feel connected to the brand
and prefer the brand over others.
Be aware of competitors marketing strategy and work proactively to maintain the
position in the user minds and market.
It is very important to win the trust of the consumer by maintaining the quality and
changing taste and preference as well as adopting strategies according to the changing
environment to avoid the competitors to take away the market share.
Luminarc
22%
Borosil
17%
Yera
17%
Ocean
12%
Treo
10%
Others
22%
Brand awarenessof drinkware
36. 36
It has been seen that some part of the consumers are not still aware of the brands in dinner
sets and no brand loyalty since all the brands have parity product is witnessed so it is
necessary to position the brand altogether differently in the minds of consumer so that the
consumer strongly affiliate the product to a particular brand. The best way to differentiate a
product, a lot of promotional techniques should be used: firstly to develop awareness and
secondly to create loyalty. So, the mostly preferred promotional technique by 32% consumers
is advertisement in television or print media followed by telephone or SMS. Again, billboard
and mall promotions are also preferred means of receiving information respectively by 15%
and 19% respondents who always or mostly prefer these forms of promotion.
An ironical response is seen in the medium telephone where a lot of respondents highly prefer
it as the means of easy communication and equally a majority of 75% respondents who has
provided choices for the most not preferred medium dislike the same for some reasons or the
other.
So, it is important to consider the overall consumer behavior n both the segments before
implementing the promotional strategy.
Lastly, as the product cannot be customized and usually mass marketed the highly preferred
forms like advertisement, billboard and mall promotion should be used to reach and attract a
larger audience.
Graph 10: Consumer preference of channel of communication
Note: The above figures have been calculated on the basis of partial responses from
the samples since all the features were not necessarily ranked so the figures show the
relative importance of a feature in the total responses actually obtained.
0
20
40
60
80
Always Prefered Likely to prefer least preferred not preferred
telephone
advertisement
email
billboard
mall promotion
37. 37
Market opportunity
The dynamic market is full of opportunity and threat where in one hand the market is
overloaded with competition dividing the market share of the company if marketing
strategy are not implemented properly and in the other hand new market open up where
the product are in shortfall and the marketing strategy can be utilized to capture the
emerging trend. Similarly in the area of glassware the products can be used personally
and considered as a favorable gifting item during marriages and festival. It has been
observed that glass sets are the most common gifted items where 26% of the respondent
has either gifted or received glass sets as gifts. Secondly, dinnersets are also considered a
worthy gift items especially during marriages with 22% of the respondent said to have
gifted the same in the marriages of closed ones followed by serving bowl sets and
pudding sets.
Thus, with respect to the trend of celebrating various occasions and festival in grandiose
fashion the trend of gifting is also on the rise and the glassware industry have a variety of
options besides those mentioned above like tea sets, lemon sets ,vases and other
decorative items which can help capture a significant market.
Graph 11: Gift item preference in glassware
Again, it is always important to identify the budget of the consumer in which they prefer
to buy items for gifting and according to the responses received 33% of the consumers
usually prefer gifts in the range of 800-1000. Again, it also depends on the individual to
whom the gift is purchased but in general table summarizes the preferable price range for
gift items. Respondents also prefer gifting in the range of 1000-1500 to closer relatives.
20.58823529
5.882352941
26.47058824
14.70588235
10.29411765
22.05882353
0
5
10
15
20
25
30
serving/Pudding
bowl
lemon sets glass sets tea sets vases and
decorative items
dinner sets
38. 38
Graph 12: Preferred price range of gift items
From the above observation we can deduce that:
Glassware items has a huge market for personal consumption and used as a gift
item.
Glassware gift items can be made available in the price range preferred.
It is necessary to develop the trend of gifting glassware since there are a huge
number of alternative options which can erode the market for glassware.
New and innovative products should be developed for gift purpose like beer mug
,knive stands, various shaped juice set etc which would definitely attract customer.
0
5
10
15
20
25
30
35
200-400 400-600 600-800 800-1000 1000-1500 1500 and
above
6.666666667
15.55555556
20
33.33333333
17.77777778
6.666666667
39. 39
Appendix
Questionnaire for study of Consumer Brand Preference of Glassware and Dinnerware
Name: Gender:
Age: Family income:
Occupation: Locality:
Contact No: E-mail:
1. How frequently the following type of dinnerware material is generally used at home?
Daily Alternatively Occasionally
Rarely Never
Steel
Glass
Silverware
Melamine/Plastic
2. Which brands of dinnerware do you usually use at home?
3. Which brands of glassware do you usually use at home?
4. Which brands of dinnerware are you aware of and generally like to purchase?
5. Which brand of glassware are you aware of and generally like to purchase?
6. How frequently do you purchase dinnerware?
40. 40
7. How frequently do you purchase glassware items?
8. What do you preferably purchase as a gift item in glassware (if any)?
9. How much do you spend on dinnerware for personal use?
10. How much do you spend on glassware for personal use?
11. How much do you generally spend on purchase of gift items?
200-400
400-600
600-800
800-1000
1000-1500
12. Name few places where you generally buy dinnerware and glassware?
13. How would you prefer to be informed about new product and range of dinner ware
items?
Telephone/SMS Advertisement Emails
Billboards Mall promotion
14. Rank by preference the factors that influence your buying behavior?
Design Availability Referral/Friends pressure
Pricing/Value for money Offers and promotion Brand image
15. Do you use Luminarc product, if yes please provide the following information?
Product type:
Feedback/remarks(if any)
