1 Title of the project-TO STUDY THE EXISTING DISTRIBUTION NETWORK OF

HINDWARE SANITARY WARE LIMITED IN NOIDA AND GHAZIABAD AND SUGGEST IMPROVEMENTS IN THE SAME TO INCREASE MARKET SHARE OF THE COMPANY.

ABSTRACT

India, with a size of 6.75 million pieces, accounts for about 3.3% of the total global production. Penetration of Sanitary ware in India is about 30% which is much lower than neighboring Asian countries, indicating signicant growth potential for this sector in Indian market. India, today, is all set to become the biggest manufacturing hub for international sanitary wares brand. Even foreign brands like H&R Johnson, Roca and Kohler have established their operations in India. Hindware India, has the biggest market share in sanitary ware products. For over 47 years, Hindware sanitary ware products have a huge market share because it not only offers a wide range of sanitary ware products but also offers them at a relatively lower price than its competitors. Hindwares range of sanitary ware offers includes wash basins , cisterns , bath tubs , pedestals , etc. The research is done for brand Hindware that is a flagship brand of HSIL (Hindustan sanitaryware industries limited). Project seeks to describe the existing distribution network of Hindware Sanitary Ware Limited in Noida and Ghaziabad and suggests improvements in the same to increase market share of the company.The report begins with a discussion of the hindware sanitaryware market and then analyzes the distribution networks of the company in Noida and Ghaziabad . The report also focuses on suggesting the improvements in the distribution network of Hindware . The research also identifies the important criteria for making a purchase decision.

The research adopts a quantitative methodology by preparing a Semi-structured questionnaire for dealers and sub-dealers and findings are in regard to aspects of marketing and communication as perceived by dealers and sub-dealers of brand Hindware and its major competitors. Besides this, the research explores the perception for advertising and its role in purchase decision. In other words, what is the role of communication and how it influences products and brand

preference.. The location of research is Noida Ghaziabad and nearby areas of Delhi. Purposive sampling was done and sample of 30 dealers and 40 sub-dealers were surveyed. Insights have been obtained about attitude towards buying a particular brand, influence of dealers, users and advertisement. In view of the above findings following recommendations have been made to the company. Some part of study also describes the dealers recommendations, customer preference for a particular brand and drivers for the growth of sanitary ware category Although the company has a good distribution network but it has to focus on timely delivery of the products and better after sales services. The company needs to increase its distribution network by coming up with attractive schemes for the dealers and sub-dealers so that more and more dealers are ready to take up companys dealership or sub-dealership.

CHAPTER 1-INTRODUCTION

CHAPTER 1: INTRODUCTION

1.1 Overview of the industry

In todays world when there is an ever-growing interest in most people to lead an elegant lifestyle, one is often found ready to spend more and more price to make the house look Beautiful and this just doesnt get restricted to just living room but also bathroom. During the last 5-6 years the sanitaryware market in India has grown rapidly, with key players doubling their production capacities. India has emerged as a major bath and sanitaryware market in the Asia-Pacific region. The sanitaryware industry in India is divided in two sectors. The organized sector majorly consisting of 7 companies (M/s. Hindustan Sanitary Industries Limited, M/s. E.I.D. Parry, M/s. Cera Sanitaryware limited, Somany sanitaryware limited , M/s. Jaguar Sanitaryware Limited, M/s. Roca Sanitaryware,M/s Kohler sanitaryware limited), manufacturing sanitaryware for the last 15-20 years and have established their Brand image Unorganized sanitaryware manufacturer comes under small sectors . The Indian sanitaryware market is estimated at around Rs. 2750 crores, characterized by a branded organized sector as well as a large unorganized sector. The industry reported an attractive 25% growth on account of a strong trend in the building and construction industry space riding a favorable environment in Indias housing and infrastructure sector. The market for sanitaryware in India comprises the institutional and individual segment. While institutional customers buy directly from the company and use material in construction projects like apartments, commercial complexes and shopping malls, the individual segment buys from retail outlets for residential applications. Over the last few years, off take has been progressively influenced by Indias evolving demographics triggered by urbanization, nuclear families, rising incomes, higher aspiration levels and affordable mortgage rates. India, with a size of 6.75 million pieces, accounts for about 3.3% of the total global production. Penetration of Sanitaryware in India is about 30% which is much lower than neighboring Asian countries, indicating signicant growth potential for this sector in Indian market. The Indian sanitary ware market has been

growing at about 10% a year, as compared to the global average growth of about 7%. The market size for sanitaryware and bathroom solutions within India is estimated to be over 2750 crores. World Sanitaryware Market by Volume 1.1 Accumulative growth.

Figure 1: Accumulative growth ceramic sanitaryware market, volume 000 units, 2005-20010. Source CSL July 2011 newsletter.

1.2 Company Profile History The Somany Groups flagship company, HSIL was set up in 1962 in collaboration with Twyfords of UK. In India, it soon pioneered Vitreous China Sanitaryware and gave the concept of sanitaryware a new meaning. Now, the "Hindware" brand commands more than a third of the Indian sanitaryware market and is a leader in several categories. Furthermore, amidst sanitaryware brands, its a top export from India.

Business model of HSIL

2.

Business segments and product categories Business Segment High-end customer Middle class segment Mass-market segment Product Category Hindware Italian, Grohe, Keramag Hindware & Hindware art Rassi

Table 1: Business segments and product categories

Milestones

India's 100 Most Valuable Brands by Forbes magazine. Selected Super Brand 2006-2007

Readers digest 2008 award in sanitary ware category. Selected as Business Superbrand India 2008 Reader Digest Trusted Brands Platinum Award 4Ps India's 100 most Valuable Brands IIPM Most Admired 100 companies Mera Brand Indias Most Preferred Brand Elle Deco International Design Award 2008

Strategic Business Units of Hind ware: Sanitary ware Hindware India, has the biggest market share in sanitary ware products. For over 47 years, Hindware sanitary ware products have a huge market share because it not only offers a wide range of sanitary ware products but also offers them at a relatively lower price than its competitors. Hindwares range of sanitary ware offers includes wash basins , cisterns , bath tubs , pedestals , etc. Faucets Hindware offers a stunning range of faucets. It has recently launched a new type of faucets with 3c technology- coating, casting, catridge. Hindware follows the policy of no dripping, no leakage when it comes to faucets . It has launched a new range of faucets recently. The faucets are manufactured with high quality standards polished surface attractive design long lasting performance. Tiles Hindware has the best blend of global trends and superlative technology in tiles through their hindware Italian range. Hindware Italian collection tiles comprise elegant, fine quality glaze vitrified, double charge and full body vitrified tiles made on chroma technology. Available in

innovative colours, designs, sizes and finish- to add panache to the look and feel of every space. The company makes floor tiles and wall tiles. Kitchen Appliances Hindware kitchen ensemble comprises imported Italian collection cooker hoods, a wide range of hobs, cook tops, built in ovens, cooking ranges and microwave ovens. The cooker hood series consists of aesthetically pleasing design in pure staineless steel and tempered glass. Hindware hobs blend and integrate well all kinds of kitchen interiors and finishes. These are available in stainless steel and tempered glass finish.

1.3 Rationale for the study

Noida and Ghaziabad have a great potential market for sanitary ware products. According to the current market scenario all the sanitary ware companies are fighting hard to dominate the market but hindware sanitary ware products have been able to capture a very good market. HSIL has launched many new sanitary ware products in the recent times to increase their market share. The new Italian range by hindware has helped the company in capturing a good market. This study aims at studying the distribution network of HSIL in order to help them increase their market share by suggesting them improvements in the same.

Noida and Ghaziabad have a high demand for sanitary ware products. These market have become all the more important for the company because they have customers for all types of products. Thus it is very important for the company to have a sound relation with their dealers and sub dealers because they are the ones who are responsible for selling the product in these markets. So, it is very important for the company to know the areas of concern for the company in its distribution network and what the dealers and sub dealers think about the companys products if they want to increase their market share in future.

Like in few areas of Noida, the company is facing problems in making timely delivery of the products to the dealers and sub-dealers which in turn is spoiling companys image in the market. Hindware would always want to deliver its products on time to its dealers and sub dealers. Thus, it is very important for the company to know its weaknesses in its distribution network so that it can satisfy its dealers and sub dealers. The report thus focuses on all the problems that the company is facing regarding its distribution network in Noida and Ghaziabad areas. The objective of the study is to know the problems in the distribution channel of hindware in these ares so that the company can increase its market share in these areas. The study also focuses on the comparision of the salient features of Hindware's distribution network with its main competitors and to know the expectations of Hindwares channel partners from the company and to find out the extent to which these expectations are being met, thereby highlighting the areas of dissatisfaction of the channel partners.

1.4 Definitions and key terms

a) Sampling Sampling is concerned with the selection of a subset of individuals from within a population to estimate characteristics of the whole population. When taking a sample from a larger population, it is important to consider how the sample will be drawn. To get a representative sample, the sample must be drawn randomly and encompass the entire population. b) Distribution Channels

The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.

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c) Channel partners

Channel partner is a company that partners with a manufacturer or producer to market and sell the manufacturer's products, services, or technologies. This is usually done through a cobranded relationship. Channel partners may be distributors, vendors, retailers, consultants, systems integrators (SI), technology deployment consultancies, and value-added resellers (VARs) and other such organizations.

d) Dealers

A company or individual, playing in the market at their own expense and on their behalf, that is, investing their own money, selling/buying a currency or other assets on their own. He may be a trader, a shopkeeper, a broker , etc.

e) Research design

Research design is defined as, it is the plan for collecting and utilizing data so that desired information can be obtained. A research design is the determination and statement of the general research approach or strategy adopted for the particular project

There are two types of research design: 1 Qualitative 2 Quantitave

1.5 Theoretical framework

Distribution Channels of Hindware Sanitary ware in India

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Companies are facing many challenges including the operating cost of the distribution networks (Bob Mcintyre, 2009). Adding to that, Distribution has gained enormous importance since it accounts for a large portion of the total cost for a product to the company. Companies can greatly improve their efficiency by creating and maintaining the right Distribution Channel. In recent years, companies have been adding new channels to existing ones according to Rowland T Moriarty and Ursula Moran (1990). This can be accounted for multiple reasons like increasing the customer reach, cutting cost, meeting requirements of different segments and many more. Companies have been adapting to the changing nature of business to stay ahead in competition. Adding new channels gives them an edge over the competitors, especially during the recent turbulent times when the economies worldwide were falling. The need of the hour is to have a sustainable business which can sail through such difficult phase of global recession. India has become a hot spot for business for many countries (Vikram Bhalla, Arindham Bhattacharya, Abheek Singhi, Sharad Verma, 2007) due to its large customer base and increasingdemands. India being the second highest populated country and disposable income has increased in recent years. There is a huge scope for any country to set up its business in India, provided it is able to cope up with issues like poor infrastructure apart from the culture, bureaucracy and other issues. Making a Hybrid Distribution work effectively can be a difficult task (John W. Hayden, 2000).Success lies in understanding and managing the channels rather than to randomly experiment with them. Hybrid Distribution Channels may result in problems of conflict and control according to Gila E. Fruchter (2005). Difference of margin, preference, and other factors leads to dissatisfaction among the channel members and may result in shut down of a channel, thus negating the very purpose of Hybrid Distribution Channels. Thus, companies would need to develop a Distribution network that would suit their nature of business. This would require great amount of thought with respect to channel design.

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CHAPTER 2: LITERATURE REVIEW

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2.1 Marcos Fava NevesProfessor(2009), Business/Distribution Department of tangible goods (like sanitary products), School of Economics.

Research of existing literature reveals some models (sequence of steps) for companies that want to plan distribution channels. None of these models uses strong contributions from transaction cost economics, bringing a possibility to elaborate on a``distribution channels planning model, with these contributions and organizing the steps according to a sequence that would be useful for companies when reviewing the distribution process. This sequence was refined through indepth interviews with companies and distributers.

2.2 Research World, Volume 6 (2009) Research on Distribution Channel Management of sanitary ware products.

This research report has analyzed the distribution channel and the chain of intermediaries, each passing a product down the chain, before it finally reaches the consumer. How it bridges the gap between the producer and the consumer. How Effective channels serve targeted market segments, maximise sales, minimise cost, and help producer companies gain a sustainable competitive advantage in delivering superior value to their customers. This research shows how channel partners (such as dealers, distributors, resellers) play a crucial role in the effective functioning of the channel. Their needs and goals may not always be aligned to those of the producers or the consumers. Channel managers--managers of the producer organisation, responsible for distribution performance--need to design effective distribution channels and work in collaboration with the channel partners, taking any corrective actions based on periodic assessment and monitoring.

2.3 Managing channels of distribution of sanitary products in the age of electronic commerce Kevin L. Webb Department of Marketing, E. Claiborne Robins School of Business, University of Richmond, Richmond, VA 23173, USAReceived 1 May 2000 The emergence of electronic commerce (e-commerce) has created a new business paradigm, one that presents marketers with noteworthy opportunities and challenges. Perhaps the greatest impact is in the area of channel management. The top issue for many business-to-business(B2B) firms today is channel conflict. In this paper, we investigate the effect of introducing the Internet

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channel into an already complex, multichannel distribution system . We describe strategies for proactively managing conflict, both externally with channel partners and internally among responsible for managing the channels. Twelve propositions for research are developed; eight relate directly to the marketing mix and four focus on channel communication and coordination. All of the research propositions offered are mechanisms by which suppliers can influence the level of channel conflict they experience. Dedicated channel management groups, documentation of channel strategies, and superordinate goals are identified as strategies for minimizing unwanted conflict.

2.4 Ubirata Tortato, Roberto Marx (2010), Study on the Configuration of Distribution Channels for Sanitary ware products .

This paper proposes an explanatory model for the configuration of sanitary distribution channels. The study was done using two sources of information: 1) The literature on the distribution of speciality goods and on sanitary ware distribution and 2) Interviews conducted with dealers . The survey allowed the identification of three variables for the proposed model: dealer size, consumer behavior and the environment. The model comprises three possible organizational forms for the distribution business: isolated single brand, single-brand group, and multi-brand group. This study is expected to contribute to a better understanding of the evolution of the sector, as well as to support the analysis of future sanitary distribution trends.

2.5 On the open design of tangible goods Christina Raasch, Cornelius Herstatt, Kerstin Balka Mar 26th, 2009R&D Management, forthcoming on the open design of tangible goods like sanitary products -Christina Raasch, Cornelius Herstatt, Kerstin Balka Open Source Software development has received considerable scholarly attention, much of which is based on the presumption that the open source model holds some lessons of broader applicability. Nonetheless, our knowledge of its deployment outside the software industry is very limited. This paper focuses on the open source development of tangible objects, so-called open design. We propose a generalised definition of open source development. Drawing on 27 exploratory interviews and six comparative case studies selected from a pool of more than 75 projects, we analyse the workings of open design. The analysis reveals that open design is already being implemented in a substantial variety of projects with different organisational and institutional structures.

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2.6 Distribution network consolidations and optimization for sanitary ware market by Phol Sridurongkatum under the supervision of Bruce Arntzen on 7th May,2010.

Redisigning the distribution networks for the companys various supply chains to lower the cost of delivering products to consumers is crucial to companys competitiveness. Redesign includes changing warehouse locations for a specific product to be closer to customers and warehouse consolidation, which requires sharing warehouse space by more than one product type and closing some existing warehouses that are not cost efficient to operate. The objective of this project is to develop a decision tool to help an industrial conglomerate make decisions related the redesign the distribution networks. The data collection was done through collaboration with companys representatives. A mixed integer linear programming model was developed as a tool to solve the optimization problem, which involves moving 9 product types from 21 manufacturing plants, through 22 warehouses and to 26 destination zones. The result from the model provides useful information for the company about which warehouse should be retained , which warehouse should be closed and what would be the new distribution network, in order to minimize total distribution cost while still satisfy the customers demand.

2.7 Channels of Distribution Conceptualisation by John Gattorna, (1978) "Channels of Distribution Conceptualisation: A State-of-the Art Review", European Journal of Marketing, Vol. 12 Iss: 7, pp.469 512

Channels of distribution are basic to the marketing strategies of firms, and have been shown to be a key element in the marketing mix. The author here undertakes a comprehensive review of channels literature, primarily to identify and assess the adequacy of the various mainstream conceptual schemes which have emerged. Economic-based arguments have largely been at the core of channels literature, although these have been partially offset by the concepts of the organisational and behavioural schools. The author concludes that whereas every conceptual approach reviewed has added something to our cumulative knowledge, no single approach has yet reached a point of adequate conceptualisation based on his own basic criteria. As yet channels literature is mainly descriptive, and has virtually no predictive power.

2.8 Designing the Distribution Network in a Supply Chain (sanitary ware products) by Sunil Chopra Kellogg School of Management, Northwestern University 2001 Sheridan Road, Evanston, IL 60208, U.S.A.

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This paper describes a framework for designing the distribution network in a supply chain. Various factors influencing the choice of distribution network are described. We then discuss different choices of distribution networks and their relative strengths and weaknesses. The paper concludes by identifying distribution networks that are best suited for a variety of customer and product characteristics.

2.9 Effectiveness of Distribution Network of sanitary products by M. Sreenivas, Alluri Institute of Management Sciences, India T. Srinivas, Kakatiya University, India.

The intent of this study was to identify factors that influence supply chain efficiency and effectiveness of sanitary ware products. Here, efficiency is defined as the ability of the distribution function to maximize the ending auction price. Effectiveness is defined as the ability of the chosen factor levels to attract bidder customers. Since many of those factors are under the control of the seller, identifying them may help sellers improve the outcome of their sales. The study also lays emphasis on reducing the final cost of the product by improving the efficiency of distribution channel.

2.10 A Bargaining Theory of Distribution Channels (sanitary products) by GANESH IYER and J. MIGUEL VILLAS-BOAS.

A critical factor in channel relationships between manufacturers and retailers is the relative bargaining power of both parties. In this article, the authors develop a framework to examine bargaining between channel members and demonstrate that the bargaining process actually affects the degree of coordination and that two-part tariffs will not be part of the market contract even in a simple one manufacturerone retailer channel. To establish the institutional and theoretical bases for these results, the authors relax the conventional assumption that the product being exchanged is completely specifiable in a contract. They show that the institution of bargaining has force, and it affects channel coordination when the complexity of non specifiability of the product exchange is present. The authors find that greater retailer power promotes channel coordination. Thus, there are conditions in which the presence of a powerful retailer might actually be beneficial to all channel members. The authors recover the standard double-marginalization take-it-or-leave-it offer outcome as a particular case of the bargaining process. They also examine the implications of relative bargaining powers for whether the product is delivered early (i.e., before demand is realized) or late (i.e., delivered to the

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retailer only if there is demand). The authors present the implications for returns policies as well as of renegotiation costs and retail competition.

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CHAPTER 3: RESEARCH METHODS AND PROCEDURES

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3.1 Purpose of Study 3.1.1 Objectives Of Research

The first step in a marketing research project is to define a problem. The objective of the research is to study the distribution network of Hindware Sanitary ware in Noida and Ghaziabad and to suggest improvements in the same to increase market share of the company.

The objectives in the current research are1) To do an in depth study of the distribution network of Hindware in Noida and Ghaziabad market. 2) To compare the salient features of Hindware's distribution network with its main competitors. 3) To assess the expectations of Hindware's channel partners from the company and find out the extent to which these expectations are being met, thereby highlighting the areas of dissatisfaction of the channel partners. 4) To make suitable reccomendations,to improve the distribution network of Hindware for increasing its market share in Noida and Ghaziabad.

3.2 Research Design

A research design is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve the marketing research problem. The type of research used is descriptive because the objective is to determine the minset and problems of sub-dealers and dealers regarding Sanitaryware product. After knowing our survey objectives it was very much clear that this research is leading us to descriptive research. A descriptive research is a type of conclusive research that has the major objective of a description of something, usually market characteristics or functions. In other words it shows what actually exists. The research involves a study on the

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distribution network of hindware sanitary ware available .Hence, considering the above points a descriptive research would be more suitable.

3.2.1 Research Problem The distribution network plays a vital role in the sales of the company because of its penetration capabilities . The distribution network of Hindware Sanitary ware has faced some problems in the recent times. The study aims at analyzing the current distribution network of the company in Noida and Ghaziabad taking factors such as after sales services, competitors, schemes for dealers, etc. and thus providing suggestions for the same. 3.2.2 Scope Of The Project The study was conducted in Noida and Ghaziabad. So, I personally visited most of the markets and met the dealers and sub-dealers of the company. The study included 30 dealers and 40 sub dealers. 3.3 Research Plan The research was started with a well laid research plan and was scheduled properly. The research plan included: 1) Data collection 2) Instruments used

3.3.1 Data Collection Primary research The data collected in the study is through both primary research as well as secondary research conducted in various markets. The data was collected by making personal visits to various showrooms and shops.

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Firstly,the information was collected by making telephone calls to various ealers and sub-dealers and then asking them about the distribution network of hindware and other factors,then some information was collected through internet . Secondly, the data was collected by preparing a questionnaire. The dealers and sub-dealers in Ghaziabad and Noida were visited personally by me . some of the dealers and sub dealers were contacted on phone. Thus,data of 30 dealers and sub-dealers was collected, which was analysed later.

3.3.2 Instruments Used The research instrument consists of software SPSS and excel for analysis of data. Telephonic interviews, e-mails and personal visits were made , which were guided by questionnaire. The questionnaire had questions for dealers and sub-dealers for helping Hindware sanitary ware limited to capture more market in Ghaziabad and Noida.

3.4 Procedures To carry out the process of sampling following steps were followed Telephonic calls, personal visits were made to various dealers and sub-dealers in Ghaziabad and noida A questionnaire was prepared to know the behavior and problems of dealers . Then sampling size was taken to be 30 dealers and 40 sub-dealers as it is not possible to study all dealers and sub-dealers. The sampling technique was decided later after the survey. Non-probability sampling technique was chosen because of nature of research, variation in population.

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3.5 Sample Size As the target population consists of dealers and sub-dealers,thus it was not possible to have a large sample. Sample size of 30 dealers and 40 sub-dealers was thus taken. Also dealers and subdealers were not so keen on giving information on telephones and e-mails,thus the sample size could not be large.

3.6 Participants The target population consists of dealers and sub-dealers who deal with the sanitary products of hindware. They were the key to this study as they helped in studying and analyzing the research and also helped in suggesting improvements in the distribution network of the company as they are directly linked with the company.

3.7 Research Question The research question for this study is to study the distribution network of hindware sanitary ware .This research will also enabled the company to overcome its problems in the distribution chain so that the company can function better and increase its market share in future.

3.8 Data Analysis Various pie charts, bar graphs nd frequency distribution tables are made to have an easy and quick understanding of the study conducted . an overall comparision of the various responses from all dealers and sub-dealers was done and analysed.

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3.9 Limitations: The several limitations of the methodologies adopted are: Secondary data used might not be of recent time . The study was done in a limited area covering only a few dealers and sub-dealers. So, it might not apply at all the places. Questionnaire could not cover all the problems related to distribution channel of the company and thus a lot of areas were left uncovered. The time for study was only 2 months and there was a lot to learn and explore, so some of the areas couldnot be covered in this research.

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CHAPTER 4: DATA ANALYSIS AND FINDINGS

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CHAPTER 4: DATA ANALYSIS AND FINDINGS

4.1 Results of research questions 1. Involvement in dealership with HSIL.

Table:4.1.1 involvement in dealership with HSIL Cumulative Frequency Valid 0 - 4years 4 - 8 years 8 - 12 years more than 12 Total 20 27 15 8 70 Percent 28.6 38.6 21.4 11.4 100.0 Valid Percent 28.6 38.6 21.4 11.4 100.0 Percent 28.6 67.1 88.6 100.0

4.1.1 Dealership with HSIL.

Inference: Above diagram shows that Hindware has a good loyalty rate when it comes to maintaining good relationship with their dealers. Although not many dealers come under the Above 12 category but still a lot of them figure in 4-8 years category which is a healthy sign.

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2.Rate the expansion of HSIL products in last 4 years

4.1.2 Expansion of HSIL products in last 4 years Cumulative Frequency Valid Very Good Good Neutral Poor Total 12 25 24 9 70 Percent 17.1 35.7 34.3 12.9 100.0 Valid Percent 17.1 35.7 34.3 12.9 100.0 Percent 17.1 52.9 87.1 100.0

4.1.2 Expansion of HSIL products in last 4 yrs.

Inference: Dealers think that the company is showing a good expansion rate which is a positive sign for the company because it proves that the company has a bright future ahead and have high chances of having a good market share in future

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3. Quality of HSIL products.

4.1.3 Quality of HSIL products. Cumulative Frequency Valid Very Good Good Satisfactory Poor Total 21 32 12 5 70 Percent 30.0 45.7 17.1 7.1 100.0 Valid Percent 30.0 45.7 17.1 7.1 100.0 Percent 30.0 75.7 92.9 100.0

4.1.3 Quality of HSIL products.

Inference: The dealers and sub-dealers feel that the sanitary products of hindware are of good quality which reflects that the company doesnot compromise on its quality and thus is thinking of dominating the market for a longer time.

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4. Indicate your satisfaction level with HSIL on following variables_

4.1.4.1 COMMISSION

4.1.4.1 Satisfaction level with HSIL : Commission Cumulative Frequency Valid Very Good Good Neutral Poor Very Poor Total 11 21 23 14 1 70 Percent 15.7 30.0 32.9 20.0 1.4 100.0 Valid Percent 15.7 30.0 32.9 20.0 1.4 100.0 Percent 15.7 45.7 78.6 98.6 100.0

4.1.4.1 Satisfaction level with HSIL:Commission.

Inference: Above diagram shows that the dealers are neutral and not so satisfied when it comes to commission. The company needs to work on this aspect in order to keep the dealers happy in future.

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4.1.4.2 AFTER SALE SERVICE

4.1.4.2 Satisfaction level with HSIL:After sales service Cumulative Frequency Valid Very Good Good Neutral Poor Very Poor Total 14 22 19 13 2 70 Percent 20.0 31.4 27.1 18.6 2.9 100.0 Valid Percent 20.0 31.4 27.1 18.6 2.9 100.0 Percent 20.0 51.4 78.6 97.1 100.0

4.1.4.2 Satisfaction level with HSIL:After Sales Services.

Inference: The company has a good after sales service but(18.6%) dealers still think that the company needs to work on its after sales services.

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4.1.4.3 DELIVERY Of Products.

4.1.4.3 Satisfaction level with HSIL:Delivery of Products. Cumulative Frequency Valid Very good Good Neutral Poor Very Poor Total 9 21 20 19 1 70 Percent 12.9 30.0 28.6 27.1 1.4 100.0 Valid Percent 12.9 30.0 28.6 27.1 1.4 100.0 Percent 12.9 42.9 71.4 98.6 100.0

4.1.4.3 Satisfaction level with HSIL:Delivery of Products.

Inference: The company needs to work on its timely delivery as 27.2% of the dealers show their dissatisfaction in this regard . this is a very important aspect of the business and the company needs to solve this problem as soon as possible.

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4.1.4.4 EXCHANGE POLICY

4.1.4.4 Satisfaction level with HSIL:Exchange policy Cumulative Frequency Valid Very Good Good Neutral Poor Very Poor Total 8 22 18 19 3 70 Percent 11.4 31.4 25.7 27.1 4.3 100.0 Valid Percent 11.4 31.4 25.7 27.1 4.3 100.0 Percent 11.4 42.9 68.6 95.7 100.0

4.1.4.4 Satisfaction level with HSIL:Exchange Policy

Inference: This diagram shows that dealers are both satisfied as well as dissatisfied when it comes to companys exchange policy which means that the exchange rate varies from one place to another.

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5.Assess your professional relationship with your suppliers.

4.1.5 Professional relationship with suppliers. Cumulative Frequency Valid Very Good Good Neutral Poor Very Poor Total 10 13 25 18 4 70 Percent 14.3 18.6 35.7 25.7 5.7 100.0 Valid Percent 14.3 18.6 35.7 25.7 5.7 100.0 Percent 14.3 32.9 68.6 94.3 100.0

4.1.5 Professional relationship with suppliers.

Inference: The above diagram shows that not a lot of dealers have given a negative reply when it comes to their professional relation with the company which means that the company maintans healthy relations with their dealers.

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6. Factor that attract you to be the dealer of HSIL products.

4.1.6.1 Promotional schemes.

4.1.6.1 Promotional Scheme Cumulative Frequency Valid yes No Total 21 49 70 Percent 30.0 70.0 100.0 Valid Percent 30.0 70.0 100.0 Percent 30.0 100.0

Inferences-The above diagram shows the promotional scheme of HSIL.70% of the dealers get attracted by the promotional schemes of the company.

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4.1.6.2 Quality of the Products.

4.1.6.2 Quality of products Cumulative Frequency Valid Yes no Total 30 40 70 Percent 42.9 57.1 100.0 Valid Percent 42.9 57.1 100.0 Percent 42.9 100.0

Inference-The above diagram shows that 42.9% of the dealers sell HSIL products because of its quality standard.The company needs to improve in this area in order to be successful in future.

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4.1.6.3

Company Policy

4.1.6.3 Company Policy. Cumulative Frequency Valid yes no Total 5 65 70 Percent 7.1 92.9 100.0 Valid Percent 7.1 92.9 100.0 Percent 7.1 100.0

Inference-More than 90% of the dealers donot like policies of the company.This is a huge percentage and the company must take measures quickly as this is an alarming figure.

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4.1.6.4

Margin on products.

4.1.6.4Margin Cumulative Frequency Valid Yes No Total 14 56 70 Percent 20.0 80.0 100.0 Valid Percent 20.0 80.0 100.0 Percent 20.0 100.0

Inference-The above question shows that most of the dealers are satisfied with the quality of the sanitary products of hindware which is a very good sign for the company while it also shows that the company needs to improve on other aspects.

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4.1.7 The credit period given by HSIL.

4.1.7 Credit period given by HSIL Cumulative Frequency Valid Very Good Good Satisfactory Poor Total 10 20 22 18 70 Percent 14.3 28.6 31.4 25.7 100.0 Valid Percent 14.3 28.6 31.4 25.7 100.0 Percent 14.3 42.9 74.3 100.0

4.1.7 Credit period given by HSIL.

Inference: The company offers a poor credit policy and the company needs to give more credit period to its dealers and sub-dealers so that they can easily repay their money.

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8. Rate the promotional activities of HSIL.

4.1.8 Promotional activities of HSIL. Cumulative Frequency Valid Very Good Good Neutral Poor Very Poor Total 9 23 22 15 1 70 Percent 12.9 32.9 31.4 21.4 1.4 100.0 Valid Percent 12.9 32.9 31.4 21.4 1.4 100.0 Percent 12.9 45.7 77.1 98.6 100.0

4.1.8 Promotional Activities of HSIL.

Inference: The company needs to improve on its promotional activities because in the long run the company will have to come up with better promotional activities if it wants to increase its market share because the company can reach out to its target people only through its promotional activities.

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9. Your views on the price of HSIL products.

4.1.9 Price of HSIL products. Cumulative Frequency Valid Very High High Average Low Total 15 22 24 9 70 Percent 21.4 31.4 34.3 12.9 100.0 Valid Percent 21.4 31.4 34.3 12.9 100.0 Percent 21.4 52.9 87.1 100.0

4.1.9 Price of HSIL products

Inference- The above study shows that the dealers feel that the sanitary products of hindware have a high price. This shows that the company needs to work on reducing its cost of production if it wants to keep its market domination.

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10. Other brands of sanitary ware products you deal in

4.1.10.1 Parryware Cumulative Frequency Valid Yes No Total 10 60 70 Percent 14.3 85.7 100.0 Valid Percent 14.3 85.7 100.0 Percent 14.3 100.0

4.1.10.1 Parryware.

Inference-Only 14.3% dealers deal in Parryware brand which is good news for the company.

4.1.10.2 Cera Cumulative Frequency Valid Yes No Total 22 48 70 Percent 31.4 68.6 100.0 Valid Percent 31.4 68.6 100.0 Percent 31.4 100.0

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4.1.10.2 Cera

Inference- Above diagram shows that cera is an emerging brand and is a huge competition to the company.The company needs to take Cera very seriously.

4.1.10.3 Roca

4.1.10.3 Roca Cumulative Frequency Valid Yes No Total 7 63 70 Percent 10.0 90.0 100.0 Valid Percent 10.0 90.0 100.0 Percent 10.0 100.0

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4.1.10.3 Roca

Inference- The above diagram shows that roca is still not a big threat to the company as not a lot of dealers deal with its products.

4.1.10.4 Kohler.

4.1.10.4 Kohler Frequency Valid Yes No Total 6 64 70 Percent 8.6 91.4 100.0 Valid Percent 8.6 91.4 100.0 Cumulative Percent 8.6 100.0

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4.1.10.4 Kohler.

Inference-Kohler has relatively low market share .The diagram shows that kohler is not a big threat to the company .It has a low market share as compared to other brands.

4.1.10.5Other brands of sanitary ware products you deal in jaguar Cumulative Frequency Valid Yes No Total 25 45 70 Percent 35.7 64.3 100.0 Valid Percent 35.7 64.3 100.0 Percent 35.7 100.0

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4.1.10.5 Jaguar.

Inference-Above diagram shows that jaguar is a big threat to the company as a lot of dealers deal in its products which shows that jaguar products have a huge demand in the market.

4.2 Summary of the findings

From the analysis of the data ,the summary is as follows:

1) The company needs to work on its expansion rate as 12.3% of the dealers still feel that the company is showing a poor expansion rate. The company should take timely feedbacks and should look into this matter so that it can head in the right direction.

2) 27.8% dealers are neutral and 18.6% of the dealers and sub-dealers still feel that the company needs to improve on its after sales service. This is a very important factor if the company is looking for a loyal customer base as most of the customers prefer a good after sales service of the product after purchasing it from the market. 3) Exchange policy of the company has shown an awkward growth with some dealers and subdealers in favour of the companys exchange policy while some opposing the companys current

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exchange policy. The company needs to work on its exchange policy so that it is able to satisfy more and more dealers and sub-dealers and in turn will also be able to satisfy its customers. 4) 25.9% of the dealers and sub-dealers find the credit policy of the company poor .this is a clear indication that the company is not having a good credit policy for its dealers and sub dealers. The company should analyse its credit policy and should make sure that it doesnot put a lot of pressure on its dealers and sub-dealers as these might prove fatal for their professional relation in the long run. 5) Another finding from the above study can be the poor promotional schemes of the company. With 21.4% of the dealers and sub-dealers finding companys promotional activities poor are clear signs that the company needs to work on its current promotional activities in order to increase its market share in future. 6) Channel partner satisfaction level The main issues that can be identified on the basis of inferences from the research are that, a) Delivery is not being done on time b) Display support is quite low as compared to competitors c) Display payments are not done timely Credit period is not being given

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CHAPTER 5: CONCLUSIONS AND RECCOMENDATIONS

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CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Objective wise conclusions are :

a) Objective 1 : To do an in depth study of the distribution network of Hindware in Noida and Ghaziabad market Through the primary data of 30 dealers and 40 sub-dealers in different markets of noida and Ghaziabad ,I have come to the conclusion that : Hindware has a good distribution network in Ghaziabad and noida The products are delivered timely and not a lot of time is wasted on transportation. The company has a depot in Ghaziabad Industrial area and 97% of the products of sanitary ware are dispatched from there to their respective places Hindware has sufficient number of distributer in Ghaziabd and near by areas.

b) Objective 2: To compare the salient features of Hindware's distribution network with its main
competitors. Hindware has relatively better distribution network than cera and jaguar(its main competitor)

c) Objective 3 : To assess the expectations of Hindware's channel partners from the company and find out the extent to which these expectations are being met, thereby highlighting the areas of dissatisfaction of the channel partners. On the basis of the survey of 30 dealers and 40 sub-dealers , I can very easily say that hindware has been able to meet the expectation level of its channel partners. The study also proves that hindwares firm relation with its channel partners is because of its good quality as 45.7% were happy with the quality of hindwares product. Company has a good after sales service and exchange policy but poor credit policy ,so it shows that there is still some scope of improvement .

5.2 Recommendations

1) The company should try and reduce its cost of production so that it has lower price of its sanitary ware products and thus can attract more and more customers.

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2) The company should target distributers by increasing their sales targets . This will help the company in selling more and more products and in return will increase companys market share. 3) Company should offer discounts or should come up with new schemes on its sanitary ware products in order to attract more and more customers. 4) Better promotional activities can help the company to increase its market share . The study proves that the company has a poor promotional policy. 5) Company should offer or come up with special monthly schemes for its dealers and sub-dealers ,this would force them to buy the material in bulk and sell it to the customers.

5.3 Limitations

Study was restricted to Noida and Ghaziabad only. Lack of knowledge and understanding in case of a few dealers.

Since, convenient sampling has been followed; generalizations of populations cannot be done accurately on the basis of this data. Small sample size.Only 30 dealers and 40 sub- dealers were surveyed. The time span of the survey is just 7 days with total working of 58 days.

5.4 Implications for practices New and improved promotional schemes. Company needs to focus on its exchange policy. Better after sales services. Company should make sure timely delivery of the products to its dealers. New ideas for improving the credit policy.

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5.5 Implications for future study

In future, Hindware has to carry out this research for its distribution network. It is not easy to collect data from various dealers and sub dealers for research purpose until you study the entire market function and gain a deep knowledge about the various functions and expectations of the dealers and sub-dealers of a particular area.

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REFERENCES Books: Kotler, Philips principles of marketing (2006) pp-155-162. Business Research Methods, 6th Ed.: Cooper, Donald R; Schindler, Pamela S. Understanding Consumer Decision Making- the Means-End Approach to Marketing and Advertising Strategy edited by: Reynolds, Thomas J; Olson, Jerry PP-67 Malhotra, Naresh Research methodology (2007) pp-142-152 Trochim, M.K. William: Research methods

Websites : http://www.icctas.com Http://www.parryware.com Http://www.Roca.com/news Http://www.press.com Http://www.Rocaindia.com Http://www.hindwarehomes.com http://www.indiainfoline.com http://www.equitymaster.com Http://marketresearch.com Http://BSRIA.com Http://www.kohler.com http://www.financialexpress.com http://www.valuebasedmanagement.net

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Annexure-1 A: Questionnaire

Q1: How long have you been involved in dealership with HSIL? 1. 0-4 years 2. 4-8 years 3. 8-12 years 4. More (please specify) ____________ Q2: How would you rate the expansion of HSIL products in last 4 years? 1. Very Good 2. Good 3. Neutral 4. Poor 5. Very poor Q3: What do you feel about the quality of HSIL products? 1. Very Good 2. Good 3. Satisfactory 4. Poor 5. Very Poor Q4: Indicate ur satisfaction level with HSIL on following variables_
Particular Commission After Sale service Delivery Exchange Policy Very Good Good Neutral Poor Very Poor

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Q5: How would you assess your professional relationship with your suppliers? 1. Very Good 2. Good 3. Neutral 4. Poor 5. Very Poor Q6: Which factor attracts you to be the dealer of HSIL products? 1. Promotional Scheme 2. Quality 3. Company Policy 4. Margin Q7: What do you feel about the credit period given by HSIL? 1. Very Good 2. Good 3. Satisfactory 4. Poor 5. Very Poor Q8: What do you think about the promotional activities given by HSIL? 1. Very Good 2. Good 3. Neutral 4. Poor 5. Very Poor Q9: What do you feel about the price of HSIL products? 1. Very High 2. High 3. Average

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4. Low 5. Very Low Q10: What other brands of sanitary ware products you deal in? 1. Parryware 2. Cera 3. Roca 4. Kohler 5. Jaquar 6. Other : __________ (please specify)

Q11: Which are the areas in which you would want HSIL to improve? _____________________________________________________________________ _____________________________________________________________________

Name of dealer: _____________________________________________________ Product dealt with: __________________________________________________ Name of the shop:___________________________________________________ Email: ____________________________________________________________ Contact number: ___________________________________________________ Thank you for your valuable time

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ANNEXURE- 2 SYNOPSIS REPORT

AMITY UNIVERSITY -----UTTAR PRADESH-----

Amity Business School SUMMER INTERNSHIP EVALUATION

Student Name Enrollment No Programme Company'sName and Address

ASTITVA GAUR A0102211047 MBA - M&S Hindware Ltd.(HSIL) Unit no-301-302,III floor, Park Centra, Gurgaon, Haryana 122002

Industry Guide Name Designation Mr.Sumit Saxena ASST. Manager-Hindware Sanitary-Sales

ContactNumber Ph.(O) : 09310588784 Mobile : 09310588784 Fax:0 E-mail : sumitsaxena@hindware.co.in

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Project Information

1) Project Duration : (56 Days) a) Date of Summer Internship commencement (03/05/2012) a) Date of Summer Internship Completion (28/06/2012)
2) Topic

To study the existing distribution network of Hindware Sanitary Ware Limited in Noida and Ghaziabad and suggest improvements in the same to increase market share of the company.

3) Project Objective

1. To do an in depth study of the distribution network of Hindware in Noida and Ghaziabad market.

2. To compare the salient features of Hindware's distribution network with its main competitors.

3.To assess the expectations of Hindware's channel partners from the company and find out the extent to which these expectations are being met, thereby highlighting the areas of dissatisfaction of the channel partners.

4.To make suitable reccomendations,to improve the distribution network of Hindware for increasing its market share in Noida and Ghaziabad.

4) Methodology to be adopted

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1. Research Problem-India has a huge potential market for sanitary products which has not yet been fully tapped.Hindware has an extensive range of sanitary ware and bath fittings designed for different segments-from premium range of Benelave and Italian collection to more affordable products for the common man.However,they have not been able to penetrate in the market as per their expectation. This study aims at studying the existing distribution network of hindware in Noida and Ghaziabad and find out the possible gaps in the distribution network which may be responsible for less than desired market penetration. Study will also try to assess the expectation of hindware channel partners and the extent to which these expectations are being met by the company, thereby highlighting the areas of dissatisfaction of the channel partners, so that suitable recommendations can be made to improve the distribution network of Hindware in Noida and Ghaziabad.

2. Research Design-Exploratory research will be used to study the existing distribution network of hindware sanitary products. Descriptive research will be used to collect primary data from dealers and sub-dealers in Noida and Ghaziabad to study the functioning of actual distribution network.

3. Data Collection-Primary data for the purpose of research will be collected in a structured questionnaire from dealers and sub-dealers. Secondary data will be sourced from company reports, manuals, trade and industry journals and internet.

4. Sample Design-Non probability convenience/judgmental sampling.

5. Sample Size-The sample size will be approx 30 dealers and 40 sub- dealers.

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6. Sampling Areas-The area of the research will be Ghaziabad, Noida and nearby areas of Delhi.

5) Brief Summary of project(to be duly certified by the industry guide)

It was the year 1960 when Mr. Rajendra K. Somany established Hindustan Twyfords, in with Twyfords Ltd. of UK. With a bent towards innovation coupled with the intention to introduce vitreous ceramics in India, he identified the sanitary ware market as the segment of interest. Hindustan Twyfords was the first in the India to make available vitreous ceramics, offering significant improvement from the prevalent earthenware sanitary products. With strong family support, coupled with technical collaboration from Twyfords, Mr. RK Somany established the Bahadurgarh plant, which commenced production in 1962. Now Hindware have three manufacturing plants in India producing 12000 units of sanitary ware in a day.

The present study aims at studying the existing distribution network of Hindware in Noida and Ghaziabad and suggesting improvements in the same to increase the market share of the company.

In the first stage of the project, a study will be made of the existing distribution network of hindware sanitary products, its implementation and the issues affecting its effectiveness with the help of secondary data available at various sources such as company reports, catalog and interaction with the sales department of the company.

After the above study, market feedback will be collected from dealers and subdealers with the help of a structured questionnaire to find out the areas of concern. The information and data so collected shall be analyzed using appropriate statistical

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tools to arrive at the conclusions of the market survey. Based on these conclusions and the study done in the first part of the project. Suitable recommendations will be made for improving the distribution network of the company with a view to increase its market share.

Signature Signature (Student) (Industry Guide) Signature (Faculty Guide)

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