AProject ReportOn “A Study Customer Satisfaction & Brand Preference of Plywood Furniture Industry in India”
at Spacewood Furnishers Pvt. Ltd. Nagpur
Project Report Submitted in partial fulfillment of Requirement for the award of the degree of Master of Business Administration (MBA)
To University Of Pune
Submitted by Ankush Rajan Upwanshi
MBA (Marketing) (2012-2014)
Under the guidance of
Prof.AsmitaPatwe
MATRIX EDUCATION FOUNDATION MATRIX BUSINESS SCHOOL VADGAON (BK), PUNE-411041
Preface The objective of training is to help the student understand business environment well and equipped themselves with the work culture of companies in the present era.
I,Ankush Rajan Upwanshi take the opportunity to introduce the reader to the outline of my project on “A Study Customer Satisfaction & Brand Preference of Plywood Furniture Industry in India “atSpacewood Furnishers Pvt. Ltd., Nagpur. The 8 weeks period from27th may 2013 to17thJuly 2013give me an in depth exposure in the field of Plywood Furniture Industry.
During my Project my main focus was to get maximum real work life experience which can help me in long run and I am satisfied that I have achieve the target.
DECLARATION I, hereby declare that the Project Report entitled “On Plywood Furniture Industries in India from Spacewood Furnishers Pvt. ltd.” is an original and authentic work done by
me. This project is being submitted in partial fulfillment of the degree of Master of Business Administration from “Matrix Business School”.
The content of this project is based on the information collected by me during my tenure at “Spacewood Furnishers Pvt. ltd.” ltd .” at Nagpur; Maharashtra for 2 months of training 27th may 2013 to 17th July 2013
Place: Pune Date:
Mr. Ankush Rajan Upwanshi Master of Business Administration (Marketing)
The Matrix Educational Foundations
Matrix Business School
CERTIFICATE
This is to certify that“Mr.Ankush “Mr.Ankush Rajan Upwanshi” Upwanshi ”student of Matrix Business School, Pune has completed his field work report at“Spacewood Furnishers Pvt. ltd.” ltd .” at Nagpur; Maharashtra on the topic of “A Study Customer Satisfaction & Brand Preference of Plywood Furniture Industry in India” and has submitted the field work
report in partial fulfillment of MBA-III of the Matrix Business School for the academic year 2012-14
He has worked under the guidance and direction. The said report is based on authentic information
Mrs. AsmitaPatwe Project Guide
Place: Pune Date:
Dr. SatishUbale Director
COMPANY CERTIFICATE
ACKNOWLEDGEMENT A large number of individual contributed to this project. I am thankful to all of them for their help and encouragement. My writing in this project report has also been influenced by a number of website and standard textbooks. As far as possible, they have been fully acknowledged at the appropriate place. I express my gratitude to all of them.
The last 8-weeks with “Spacewood Furnishers Pvt. ltd.” at Nagpur have been full of learning and sense of contribution towards the organization.
First of all I owe my heartfelt gratitude to my mentor Mr. Deepak Bhatt (Manager) for his noble guidance throughout the completion of the Project job intimely and also sparing his valuable time and extending all necessary support for the same.
I express my grateful to Dr. SatishUbale (Director) and Mrs.AsmitaPatwe (ProjectGuide) for their kind approval of the training at “Spacewood Furnishers Pvt. ltd.” at
Nagpur . I convey my thanks to all other staff members of MATRIX BUSINESSSCHOOL for their timely advice.
Mr. Ankush R. Upwanshi
INDEX
Sr. No.
Contents
Page No.
1.
EXECUTIVE SUMMARY
8
2.
OBJECTIVE AND SCOPE OF THE STUDY
9
3.
INTRODUCTION TO INDUSTRY
10
4.
COMPANY PROFILE
16
5.
RESEARCH METHODOLOGY
24
6.
THEORETICAL BACKGROUND
29
7.
DATA ANALYSIS & INTERPRETATION
32
8.
FINDINGS & SUGGESSION
43
9.
CONCLUSION
47
10.
LEARNING EXPERIENCE
49
11.
BIBILOGRAPHY
50
ANNEXTURE
1. EXECUTIVE SUMMARY The Furniture Industry is an important sector in the Indian economy, as it one of the most labour-intensive industries with a potential to contribute to the reduction of unemployment, increase exports and develop the Small, Medium and Micro Enterprises (SMME). The sector has potential to contribute to the geographic spread of economic activity since products can be produced in rural areas with minimal capital requirements.
The furniture industry is located within the manufacturing sector of the economy. Whilst its contribution to GDP is small (0.3% to the national GDP and 1.6% to manufacturing GDP in 2007) compared to other manufacturing industries, the relatively low capital investment required per job, the established resource and manufacturing base makes it an attractive sector. The sector can capitalise on the available opportunities and grow prospects, thus contributing to both employment and economic growth, as prescribed by the National Industry Policy Framework (NIPF).
The global furniture industry has grown by an average of 13% over the years from 2002 to 2006, with exports from the top 10 producing countries accounting for over 66% of global exports. The global players have positioned themselves between manufacturing low cost/low quality and high cost/high quality products. China has eclipsed the traditional world’s largest export countries (Germany, Italy and USA), and by 2006 had become the
largest furniture exporter (with 20% share of global exports) in the world from being the 9th largest in 2000.
The local furniture industry has not kept pace with the growth in worldwide furniture trade and has steadily been losing its share of the global furniture manufacturing, having moved from the 34th largest exporter in 2005 to 43rd in 2006. The escalation of cheap Asian imports, the declining investment in skills development and technological innovation, insignificant research and development funding over the past five years or so has resulted in the declining 2 levels of competitiveness in the industry. This has also contributed to job losses and the reversal from being a net exporter to being a net importer of furniture products. Whilst the largest furniture manufacturers have to some extent managed to hold forth in the
face of increasing imports, the biggest casualties have been the small and medium-sized enterprises.
It remains doubtful if the local industry will ever effectively compete with the Asian imports. However, it is possible to position the local industry as the producer of high value niche furniture products that are globally competitive based on quality and/or differentiated designs. This requires a concerted effort on the part of the public and private sector to develop programmes that address the challenges that constrain the industry from achieving potential growth levels and significantly raise the levels of competitiveness.
This document presents a strategy for the development of the furniture industry. Its objective is to develop key action plans that capitalise on the opportunities for growth that exist in the industry as well as addressing the challenges that constrain the industry from achieving the desired growth levels. These key action plans address the challenges of skills development, SMME development and industry competitiveness.
It is envisaged that successful implementation of this strategy will reposition the industry to take advantage of its inherent advantages and start creating jobs and Growing exports.
This report provides an analysis of the internal as well as external situation of Spacewood Furnishers Pvt. Ltd. in the form of SWOT Analysis and PORTER’S FIVE FORCES Model.
2. OBJECTIVE AND SCOPE OF THE STUDY
Title of the Project
The project report “A Study Customer Satisfaction & Brand Preference of Plywood Furniture Industry in India” has potential of further analysis.
Need for thestudy
Customer satisfaction survey is a systematic process for collecting consumer data, analyzing this data to make it into actionable information, driving the results throughout an organization and implementing satisfaction survey is a management information system that continuously captures the voice of the customer through the assessment of performance from the customers’ point of view.
Objectives of study
The setting of objective is the corer stone of a systematic study. The study will be fruitful one when the basis laid down is a concrete one they represent the desired solution to the problem and help in proper utilization of opportunities.
Objectives
To find out which sales promotion tools will increase the sales.
To know the features that attracts the customer to buy spacewood furniture.
To study the current position of the company.
To study the buying behaviour of consumer for furniture.
To know the level of satisfaction of customers towards the spacewood furniture.
Scope of the study
The data collected gives the clear picture of products in the market, under study in this Research and gives the company an indication about whether it is feasible to move on with the Persisting movements and marketing strategies, then how to go about it and make it Worthwhile for the brand as well as the company and conclude on what should be the mostfavoured deal.
3. INTRODUCTION TO INDUSTRY This project report is based on survey which has been done between periods 27 May 2013 to 15 July 2013 to know about most the furniture used in day to day lifestyle. I have undertaken various areas of Nagpur to analyses customer preferences for daily using furniture’s. The preferences would be based primarily on their perception level, need, liking
and awareness about the brand.
Pioneering the concept of branding for various products and brand building as its core, the company’s track record is impeccable as a profit -making dividend paying company
over the last decade with 61% CAGR growth in bottom-line over the last five years leading to 2011-12.
Spacewood has recently merged its subsidiary, Worthy Plywood, into itself. It is also worth mentioning thatSpacewood Furnishers Industries has recently acquired a Mumbai based laminates brand, New Mika, to enhance its presence in the Western markets. It is worth mentioning that The Spacewood group has recently launched its international arm, SPT Intercontinental PAE Ltd. to market laminates in Asia Pacific Markets.
The “plywood furniture” company r epresents 95% of the total furniture market in the
country.
The leading furniture making areas of India are in Nagpur,Mumbai,Hyderabad and Lucknow.
Exporters are suffering manifold problems while local manufacturers are facing challenges due to heavy imports of the furniture.
Chinese furniture also hit the local industry by 70% and the sales of locally manufactured household furniture have gone down by 30%.
The
prices
of
raw
material
used
in
making
furniture
which
includes
chipboard,timber,foam,polish chemical materials,color paints and hardware have increased.
Timber production on other hand has gone down drastically because of unchecked deforestation.
India’s major buyers of wooden fur niture are the UK, USA and Sri Lanka and gulf countries.
The demand of Indian furniture has been rising constantly.
The global furniture market can be broadly categorised into four categories – domestic furniture, office/corporatefurniture, hotel furniture and furniture parts. Globally,domestic furniture accounts for 65 per cent of theproduction value, whilst corporate/office furniturerepresents 15 per cent, hotel furniture 15 per cent andfurniture parts 5 per cent.According to a World Bank study, the organisedfurniture industry is expected to grow by 20 per cent everyyear. A large part of this growth is expected to come from the rapidly growing consumer markets of Asia, implyingsignificant potential for growth in the Indian furnituresector.
Global Furniture Market
Hotels 20%
Parts 5%
Office 15%
Domestic 60%
PLYWOOD
57 per cent increase in plywood production to 12.86 million square metres; average capacity utilization 77 per cent
Commissioning of a Greenfield unit in Uttarkhand in May 2006 within eight months as opposed to the industry benchmark of 12-16 months
Plywood contributed 48% to the total revenue and 53% to the total PBIT
85% increase in plywood revenue to Rs. 201.98crore
Market Size
Particle Board Rs. 2000 cr
Plywood including Decorative Veneers Rs 7000 cr
Laminates Rs. 3000 cr
Estimated market size 12000 cores
INDIAN FURNITURE INDUSTRY
As of 2006, the Indian furniture market is estimated to be worth US$ 7,922 million. Of this, wooden furniture accounts for US$ 1,358 million. About 11 per cent (US$ 152 million) of this (wooden furniture) is imported and imports are growing at 50 to 60 per cent every year. India was the largest furniture importer in the world in 2004-05, with a 17 per cent share in the furniture imports worldwide. A total of 10, 476 importers shipped furniture to India during this period, mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan. The furniture sector in India makes a marginal contribution to the Gross Domestic Product (GDP), representing about 0.5 per cent of the total GDP. The major part of this industry, approximately 85 per cent is in the unorganised sector. The remaining 15 per cent comprises of large manufacturers, such as, Godrej & Boyce Manufacturing Co. Ltd., BP Ergo, Featherlite, Haworth, Style Spa, Yantra, Renaissance, Millennium Lifestyles, Durian, Kian, Tangent, Furniture Concepts, Furniturewala, Zuari, Truzo, N R Jasani&Company, V3 Engineers, PSL Modular Furniture, etc. The range of indigenous furniture available in India includes both residential and contract system furniture. Manufacturers in India usually use a three-tier selling and distribution structure, comprising
of the distributor, wholesaler and retailer. The market is mainly concentrated in A, B and C category cities (the top 589 cities). A and B type cities together constitute 33 per cent of the total market. With a healthy economy and increased household and institutional spending, the market is growing steadily.
Share of Organised and Unorganised Sectors
Organised 15%
Unorganised 85%
Furniture Industry Composition
As with the global market, home furniture is the largestsegment in the Indian furniture market, accountingfor about 65 per cent of furniture sales. This is followedby, the office furniture segment with a 20 per cent shareand the contract segment, accounting for the remaining15 per cent. The furniture sector in India makes a marginalcontribution to the Gross Domestic Product (GDP),representing about 0.5 per cent of the total GDP. The majorpart of this industry, approximately 85 per cent is in theunorganised sector. The remaining 15 per cent comprises of manufacturers, such as, Godrej & Boyce ManufacturingCo. Ltd., BP Ergo, Featherlite, Haworth, Style Spa, Yantra,Renaissance, Millennium Lifestyles, Durian, Kian, Tangent.
Consumer Segments
Household 29%
Contract 62%
Office 9%
Home furniture
Home furniture in India is available in a wide range, tocater to different customer needs. A typical middle classurban Indian home has five rooms (including kitchen andbathroom). About 25 per cent of the urban populationlive in homes with five rooms or more, while 45 per centlive in houses with three rooms or less. About 16 percent is estimated to live in single-room homes. The typeof furniture used depends on the customer’s affluenceand taste.The rich and upper middle class is typically very attentiveto design and quality, so price is rarely a determining factor.In general, European style furniture is only found in homes ofthe urban upper class. Demand for furniture of international standards is limited to the larger cities. It is also estimatedthat the wealthier classes do not change furniture veryfrequently; the average life of a piece of furniture is about20 years and some craftsmen’s pieces are used for as long as50-70 years. Colonial furniture is still very common
in India,but the trend seems to be declining slowly.
Office Furniture
The office furniture segment caters to the commercial andoffice space. This segment has witnessed rapid growth inrecent years, in line with the growth in the Indian economyand subsequent demand for office space. The thrust on realestate and office construction is expected to sustain in thenear future, indicating continued growth for the furnitureindustry.
Contract segment
The contract segment caters primarily to hotels and itsgrowth is consequently linked to growth in tourism anddevelopment of new hotels.
There are around 1,200 hotels in India in the organisedsector. More than 10 per cent of these are in the 5-star andabove categories (please refer to table below for details).
4. COMPANY PROFILE COMPANY PROFILE
With a sprawling 15 acre manufacturing unit in Nagpur, Spacewood’s integrated facility brings home autonomous technology, viz. short cycle lamination, panel processing, membrane pressing, press shop, powder coating, etc.
Spacewood upholds global standards with state-of-the-art European machinery operating over the most modern manufacturing processes. BIFMA compliant test laboratory fulfills observance with international practices. Independently functioning with in-house design and productdevelopment specialists, Spacewood creates solutions that are future ready, sustainable and world class.
Spacewood is a manufacturer of all products related to interior infrastructure from plywood & boards, flush doors, decorative veneers, decorative laminates to pre lam MDF and particleboard . The company accounts for 25 per cent of organized plywood and
15 per cent of organized laminate market
The company has, over the years, grown as an interior infrastructure solutions provider that currently manufactures a host of renowned brands such as Spacewoodalfa – Waterproof, Durable yet Affordable Spacewood Club Premium Ply, which comes with a life time guarantee.
The company has more than 12 branches across the country with a strong network of over 1,300 dealers, distributors, sub-dealers and retailers. Exports contribute to around 8% of the company’s total turnover. Spacewood exports its laminate products to more than 18
countries such as the US, Australia, Malaysia, Singapore.
What Consumers Buy
The earliest known making of plywood was in 3500 B.C. in ancient Egypt. The Egyptians, the builders of the pyramids, were the first to create wooden articles made from sawn veneers glued together crosswise.
They originally did this because there was a shortage of fine wood. Because of this shortage, thin sheets of high-quality wood were glued over lower-quality wood for a cosmetic effect. It wasn't done for structural benefits as it is today.
Modern plywood - in which the veneer is cut on a rotary lathe from softwood logs - is of relatively recent origin, invented by Immanuel Nobel (the father of the more-famous Alfred Nobel). The first such lathes were set up in the United States in the mid 19th century. Plywood has been one of the most useful and most-used building products for decades. Plywood has become a very common building material in the United States, used to make everything from furniture to houses.
Vision & Mission
Vision
To be one of the top 3 companies in India providing furniture for home, office and allied needs.
Mission
Spacewood strives to achieve the vision by
Offering value solutions to evolving needs of customers
Innovation and continuous up gradation of products and services
Developing passion for understanding furniture and interiors
Efficient management of resources and supply chain
Participation of employees and business associates
In house Quality assurance laboratory confirms to FIRA/ BIFMA/ BIS standards.
Business principles
Compliance with laws and fair business practices
Respect customers, business associates and employees
Care for environment, health and safety
Maintain a clean organization with culture of accountability
Encourage teamwork and respect for individual
Freedom to innovate at work
Company’s clients
Featherlite Godrej BlowPlast
.
Vodafone
Airtel
Barista
Infosys L&T Wipro
MAX Healthcare
SBI ICICI
Spacewood Today
Gross Turnover
123.49Cr.
Net Turnover
105.86Cr.
Net Profit
9.37Cr.
Employees
1700
Manufacturing facilities
2
Sales Offices
13
Authorized Dealers/Distributers
2300
SWOT ANALYSIS OF SPACEWOOD
STRENGTH (S) • Maximum Varity & high quality Of Plywood • Good Employer-employee Relationship • Efficient management • Totally Computerized • CSR by keeping Environment clean • Strategic Location for easy availability Of Raw material
WEAKNESS (W) • Large Structure of organization • Old Machinery • High Fixed Cost • Remote Location of Plants • Logistic Issues
OPPORTUNITIES (O) • Setting up a new plant in central part of India • Exploring new overseas market • Maximize production capacity by replacing old machinery • Decreasing cost by increasing Rail & Water as mode of Transportation • Acquiring some weak and poor Paper manufacturing companies
THREATS (T) • Global Warming • Raw material Unavailability • Increasing Competition • Import of Papers • NGO s Working against cutting down of trees & using of Plywood • Technological advancements such as mobile facilities and internet usages • Strict Govt. Policies, high Taxes and Duties
PORTER’S FIVE FORCES MODEL FOR SPACEWOOD
POTENTIAL ENTRANTS
Threats of New Entrance is LOW
SUPPLIERS POWER
Bargaining power of Supplier is
INDUSTRY RIVALRY
Industry Rivalry is HIGH
BUYERS POWER
Bargaining Power of Buyer is HIGH
SUBSTITUTES
Threat of Substitute is LOW
1. Threat of New Entrants:
ForSpacewood, the threat of new entrants is low because despite of Govt. of India’s persuasion by providing land for plant in low cost and various TAX exemptions it appears no business house is taking interest in establishing new paper manufacturing industry because of low availability of Raw material and high installation cost. Rather the existing players are either taking over some weak industries or adopting some expansion plans and adding to their production Capacity.
2) Industry Rivalry:
Though there are few players in this segment, there is existence of a strong competition because of fluctuation of variable costs and customer’s choices.
3) Supplier’s Power:
The Supplier’s power is very high in paper manufacturing industry because the factors
of product-ion such as Fiber and Bamboo are becoming high cost due to decrease in forest and high civilization. And the machinery is imported from other countries so it is not a quite easy task.
4) Buyer’s Power:
The buyer’s power is also very high because of the import of paper products from
neighboring countries and the companies have to provide various discounts to attract customers.
5) Threat of Substitutes:
The Threat of Substitute is very low because there is hardly any substitute for paper. The demand will always be there for paper and paper by-products.
Certifications
Spacewood regulates its quality control systems through not just adherence to the best standards but ensuring its products surpass expectations at every level. Employing diverse technologies for a flawless finish is an integral part of Spacewood manufacturing. All verticals and ranges across Spacewood undergo stringent quality checks for best results in standardization. No wonder then, Spacewood is certified to be a notch above the rest.
ISO 9001:2008 from Quality International UK for Quality Management System
ISO 14001:2004 for environmental management
ISO 18001:2007 for health and safe environment for entire workforce
BIS certification to use ISI standard mark for boards
FIRA UK Quality certification
In house Quality assurance laboratory confirms to FIRA/ BIFMA/ BIS standards.
Awards
Best SSI award: Govt. of Maharashtra
MIA: CIMC business excellence award
Saarthi entrepreneurship award
Corp excel award 2008: Corporate Excellence
Manufacturing
Spacewood operates its vast, 15 acre, state-of-the-art factory for modular furniture from Nagpur. With wide-scale manufacturing facilitated at the heart of the country, it is easier to integrate processes and spearhead distribution from India’s nerve centre.
Spacewood has not only pioneered the membrane pressing technology in India, but also forayed into the most modern woodworking technologies today. The wood working section comprises ofGerman and Italian CNC routers, automated drilling lines, cutting machines and edge bender. The metal working is equipped with press shop, metal pretreatment and powder coating. Now with backward integration, Spacewood operates as an independent entity by managing short cycle lamination press for production of pre-laminated boards.
From creation till completion,Spacewood has become one of the country’s most comprehensive and widespread manufacturers of modular furniture today.
Future plans
SpacewoodIndustries has picked up controlling stake in two Gujarat-based plywood manufacturing companies, Galaxy Decor and Platinum Veneers.
The board cleared that the company’s proposal is to set up a new laminate producing
unit in Himachal Pradesh as well as a medium density fiber (MDF) board production line within the premises of its existing Uttarakhand plant.
Company’s present force is how directed towards maintaining the pace and we have
plans to expand, diversify and integrate to further our objective and reach new heights.
5.RESEARCH METHODOLOGY Research methodology is the process of the systematic gathering, recording and analysis of data collected by various techniques to access the response and accordingly prepare a report based on which reader opinion toward products can be analyzed.
Research studies evolve through series of steps, each representing the answer to a key of question.
This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research are in order to arrive at finding, which are also dealt with and lead to a logical deduction towards the analysis and result.
Following steps are to be taken to provide useful guidelines regarding the research process.
Research Design
Sampling
Data Collection
RESEARCH DESIGN
The research design is descriptive research. The main characteristics of this method are that the researcher has no control over the variables. He can only report what has happen or what is happening.
Descriptive Research:
Descriptive research refers to a set of method and procedure that describe marketing variables. Descriptive studies portray these variable by answering who, what, why, and how low questions. This type of research studies may describe such thing as consumer ’s attitude, intension, and behaviors, or the number of competitors and their strategies. Descriptive research was selected as research design. It is undertaken when the researcher is interested in knowing the complete information according to its objectives. In the case of our project,
research has to find out what actually inspires a customer to use Furniture daily or what customer perceives about Furniture daily and for this purpose descriptive research was ideal.
SAMPLE SIZE
The sample size was: 100 respondents. I have selected 100 respondents (50 respondents were employees from Different Organization, 45 respondents were dealers and 5 respondents were from logistic member of external agencies) for the purpose of research. The target population represents the internal customers of the company. The population consist of employees and distributors of the company, these all sample population are from professional background.
DATA COLLECTON METHOD/ SOURCES
There are two types of methods used in data collection i.e. primary data and secondary data.
A] Primary Data
Those data which are collected at first hand by the researcher especially for the purpose of the study are known as primary data. The data is collected directly from the person in sample population.
Survey Method
Questionnaire Method
Interview Method
Questionnaire Method
It is the popular method for collection of necessary data from the respondents. I have used survey method for collection of the necessary data from the respondents.
B] Secondary Method
Any data which has been gathered earlier for the other purposes are secondary data in hand of marketers. These data has been collected from company like industrial profile, company profile, are collected from the internet. The secondary data are collected from the
magazines, internet and website of company. Different web sites help in collecting the detailed information.
SAMPLING PLAN
Sample size: 100 respondents Work Area: Nagpur District, Maharashtra Sampling Unit: Employees, Dealers, Logistics members Sample Technique: Stratified random sampling.
Data collection instrument
1.
The Data Collection instrument used was a two page questionnaire
2.
The questions asked were both open and questions and close and questions.
Fieldwork Plan:
Respondents were contacted on all week days. Consumers could only be contacted in evening between 5:30 pm to 8:30 pm. Dealers could only be contacted in the morning between 11:30 am and 2 pm on Thursday and in the evening depending on the availability of the respondents.
6. THEORATICAL BACKGROUND
Satisfaction:
It is no longer enough to satisfy customers. You must delight them. Satisfaction is a person feeling of pleasure or disappointment resulting from comparing the products to comparing products received performance is or (out come) in relation to his or her expectations. As this definition makes clear satisfaction is a function of received performance and expectations. With the performance falls sharp expectations, the customer is dissatisfied. If the performance matches the expectations the customer is satisfied. With the performance exceeds expectations, the customer is highly satisfied or delighted. Mini companies are aiming for high satisfactions because customers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfactions are delight creates an emotional brand with the brand. Not a just rational performance the result is high customer loyalty Xeroxes senior managers believes that a very satisfied or delighted customer is worth tent times as much to the company as a satisfied customer. A very satisfied customer is likely to stay with Xerox many more years and buy more than a satisfied customer. A customer's decision to be loyal or to defect is the some of many small encounters with the company. Consulting form forum corporation says that in order for all this small encounters to add up to customers loyalty, companies need to create a" branded customer experiences" in addition to customer value expectations and satisfactions companies need to monitor their competitors performance in this areas. For example a company was pleased to find the 80% of his customers said they were satisfied.
Then the CEO found out that its leading competitor attends a 90% customer satisfaction score. He was further dismayed when he learned that this competitor was aiming to reach a 95% satisfaction score. For customer-centered companies, customer satisfaction is both goal and marketing tool. Companies that achieve high customer satisfaction ratings make sure that their target market knows it. Although the customer-centered firm seeks to create high customer satisfaction, its main goal is not to maximize customer satisfaction. If the company increases customer satisfaction by lowering its price or increasing its services, the result may be lower profits. The company might be able to increases its profitability by means other than increased satisfaction (for example, by improving manufacturing processes are investing more in r&b (also the company has many stake holders including employers, dealers, suppliers and stock holders. Spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other partners. Ultimately the company must operate on philosophy that it is trying to deliver faction to other stake holders within the constraints of its total resources.
Customer satisfaction service:
Studies show that although customers are dissatisfied with one out of every 4 purchases. Less than 5% of dis-satisfied customers will complain. Most customers will buy less or switch suppliers. Complaint levels are thus not a good measure of customer satisfaction.
Responsive company measure customer satisfaction directly by conducting
periodic service, they sent questionnaires or make telephone calls to a random sample of recent customers. While collecting customer satisfaction data, it is also useful to ask additional questions to measure repurchase intention; this will normally be high if the customer's satisfaction is high. It is also useful to measure the likelihood or willingness to recommend the company and brand to others. A high positive word-of-mouth score indicates that the company is producing high customer satisfaction.
Defining customer satisfaction:
Over 35 years above peter drucker observed that a company’s first task is to create customers. But today's customers face a vast very of product and branch choices, prices and suppliers. We believe that customers estimate which offer will deliver the most value. Customers are very valuable maxi misers, within the bounds of search costs and limited knowledge, mobility and income the form and expectations of value and act on it. Whether are not the offer lives up to value expectations affects both satisfaction and repurchase prop ability. The key to customer retention is customer satisfaction. A highly satisfied customer: 1. stays loyal longer 2. Buys more as the company introduces new products and upgrades existing products. 3. Talks favorably about the company and its products 4. Pays less attention to competing brands and advertising and is less sensitive to price. 5. Offers product or service ideas to the company 6. Costs less to serve than new customers because transactions are reutilized Thus a company would be wise to measure- customer satisfaction regularly. The company could phone recent buyers and inquire how many are very satisfied, satisfied, indifferent, dissatisfied, and very dissatisfied.
100% guarantee
Ah of our products are guaranteed to give 100% satisfaction in every way. Return anything purchased from us at any time if it proves otherwise. We will replace it, refund your purchase price or credit your credit card, as you wish. We do not want you to have anything from l.1. Bean that is not completely satisfactory. A buyer's satisfaction is a function of the product's perceived performance and the buyer's expectations. Recognizing that high satisfaction leads to high customer loyalty, many companies today are aiming for tcs - total customer satisfaction. For such companies, customer satisfaction is both a goal and a marketing tool. Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Today's companies have not choice but to
implement total quality management programs if they are to remain solvent and profitable. Total quality is the key to value creation and customer satisfaction. :
Customer satisfaction:
Today in the customer driven economy, ail firms are engaged in a rat race to attract customers and build) a long term relationship with their loyal customer. The key to customer loyalty is through customer satisfaction. A satisfied customer will act as a spoke person of the company's product, and bring in more buyers. There is the pare to principal or the 80/20 rule, it says 80 % of one thing comes from 20% of another. That is to say a small percentage of loyal customers will lend a large weight to the company's sales. So marketers have to ensure customers value satisfaction. For this they have to ensure. 1. Products are developed to meet customer requirements. 2. Brands are positioned so as to convey distinctiveness. 3. Relationships are built to offer lifetime customer value to enable the customer to experience value satisfaction. All the efforts of the marketers at trying to understand buying motives. Organizing buying behavior and working out suitable promotional strategy to suit the customer behaviour is to ensure customer satisfaction. In today’s competitive environment, where companies are adopting various methods
to whom the prospective customers, marketers have to make all efforts to understand all the complexities which go into the behavior and frame marketing programs suitable to the target market.
Satisfaction Index
As far as customer satisfaction is concerned it is very clear in the market size of Spacewood Furnishers that the customers are very much satisfied with it.
The compliments given by the potential customers and the retailers of Spacewood Furnishers in the market on the scale of:
Variety.
Reliable.
And the most important one is that is quality.
Tangibility.
Every company wants to satisfy their customers because if the customer satisfied by the product of a company then and then only a company can get the good results. Consumer is a first person through which a company comes to know about their product.
5.DATA ANALYSIS AND INTERPRETATION. 1) What is your perception about Plywood prices? a) Costly b) Cheap c) Moderate
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Costly
52
52 %
Moderate
30
30%
Cheap
18
18%
Sales
18
Costly 52
Moderate Cheap
30
Interpretation:
From the above diagram, it shows that 52% respondents believe thatplywood are costly for furnish, whereas 30% respondents believe that plywood is acceptable and remaining 18% respondent believe that plywood are cheap.
2) What are the different types of Plywood you are aware of? a) Less than 2 b) 2 to 4 c) 4 to 6 d) 6 and above
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Less than 2
24
24 %
2 to 4
24
24%
4 to 6
30
30%
6 and above
24
24%
Sales
22%
24% Less than 2
30%
24%
2 to 4 4 to 6 6 and above
Interpretation:
From the above data we can observe only 24% respondents are aware about only less than 2 types of plywood. 30% respondents are aware about 4 to 6 types of plywood available.
3) Which company do you prefer for plywood consumption? a) Spacewood Industries Pvt. ltd. b) Greenply Pvt. Ltd. c) Century ply d) Other
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Spacewood Industries
15
15 %
Greenply Pvt. Ltd.
25
25 %
Century ply
30
30 %
Other
30
30%
Sales
15% 30% Spacewood Industries Pvt. Ltd. Greenply Pvt. Ltd 25%
Century Ply Others
30%
Interpretation :
From the above given figures it is seen that 15% respondent prefers Spacewood Industries Pvt. Ltd.25% respondent prefers Greenply Pvt. Ltd.30% respondents prefer Century Ply30% respondents prefer other brands
4) What are the reasons behind your ranking? a) Brand Name b) Good service c) Good Quality d) Any other reason
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Brand Name
18
18%
Good Service
30
30%
Good Quality
34
34%
Any other reason
18
18%
Sales Any other Reason
18%
Good Quality
34%
Good Service
30%
Brand Name
18% 0%
5%
10%
15%
20%
25%
30%
35%
Interpretation:
From the above data we can observed that18% respondent prefer brand, 30% respondent prefer good service, 34% respondents prefer good quality whereas remaining 18% consider other factors during ranking the plywood industry.
5) Are you aware of Spacewood Industry Pvt. Ltd.? a) Yes b) No
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Yes
57
57 %
No
43
43%
Sales
43%
Yes 57%
No
Interpretation:
From the above figure we can see 57% respondents are aware about Spacewood Industries Pvt. Ltd. whereas other 43% respondents are not aware about Spacewood Industries Pvt. Ltd.
6) Have you ever used plywood of Spacewood Industries Pvt. Ltd.? a) Yes b) No c) OPTION
NO. OF RESPONDENTS
PERCENTAGE
Yes
32
56.14 %
No
25
43.85 %
Sales
44%
yes 56%
No
Interpretation:
As we know that only 57% of total respondents are aware of Spacewood Industries Pvt. Ltd.Out of these, 56% respondents had consumed Spacewood Industries Pvt. Ltd. whereas remaining 44% respondents have not experienced the plywood of Spacewood Industries.
7) How satisfied are you with the variety in products offered by Spacewood? a) Highly Satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly Dissatisfied
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Highly Satisfied
18
31.57 %
Satisfied
25
43.85 %
Neutral
8
14.03 %
Dissatisfied
6
10.52 %
Highly Dissatisfied
0
0%
Sales 0 11% 32%
14%
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
44%
Interpretation :
As we know that only 57% of total respondents are aware of Spacewood Industries Pvt. Ltd. Out of these, 32% respondents are highly satisfied, 44% are satisfied, 14% are neutral, and remaining 11% are dissatisfied.
8) How satisfied are you with the pricing of Spacewood Products? a) Satisfied b) Neutral c) Dissatisfied
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Satisfied
30
52.63 %
Neutral
20
35.08 %
Dissatisfied
7
12.28 %
Sales
12%
Satisfied 53% 35%
Neutral Dissatisfied
Interpretation:
As we know that only 57% of total respondents are aware of Spacewood Industries Pvt. Ltd.Out of these, 53% respondents are satisfied, 35% are neutral and remaining 12% respondents are dissatisfied with the price.
9) How much money do you usually spend in Furniture? a) Less than 1,00,000 b) 1,00,000 to 3,00,000 c) 3,00,000 to 5,00,000 d) Above 5,00,000
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Less than 1,00,000
43
43%
1,00,000 to 3,00,000
27
27%
3,00,000 to 5,00,000
20
20%
Above 5,00,000
10
10%
Sales
10%
20%
43%
Less than 1,00,000 1,00,000 to 3,00,000 3,00,000 to 5,00,000 Above 5,00,000
27%
Interpretation:
From the above figure we can see 43% respondents spend less than Rs. 1, 00,000. 27% respondents spend between range of Rs. 1,00,000 to 3,00,000.20% respondents spend between range of Rs. 3,00,000 to 5,00,000.10% respondents spend above Rs. 5, 00,000.
10) What is the single most important factor for you to choose Furniture’s? a) Ambience/Experience b) Value of money c) For Comfort
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Ambience/Experience
48
48%
Value of Money
32
32%
For Comfort
20
20%
Sales
20%
48%
Ambience/Experience Value of money For Comfort
32%
Interpretation :
From the above figure we can see that 48% respondents consider experience as the main factor, 32% respondents prefer value for money whereas remaining 20% respondents consider comfort as major factors for furniture.
11) How is your experience with Spacewood? a) Excellent b) Good c) Satisfactory d) Poor
OPTION
NO. OF RESPONDENTS
PERCENTAGE
Excellent
47
47%
Good
23
23%
Satisfactory
16
16%
Poor
14
14%
Sales
14%
Excellent 16%
47%
Good Satisfactory Poor
23%
Interpretation:
From the above figure we can see that 47% respondents has an excellent experience with Spacewood, 23 % respondents has good experience whereas 23% and 16% respondents have satisfactory and poor experience respectively.
6. FINDINGS AND SUGGESTIONS
FINDING
Customs examination done is very severe.
o
During customs examination furniture is broken/tom for inspection. As a result all material has to be made again. a huge loss is incurred on the companies.
o
Some companies give money and get their material cleared from the customs. In this process, even the poor quality material reaches foreign buyers and the image of the whole industry is destroyed.
Problem in basic utilities
o
Load – shedding is a major problem.Furthermore; gas rates are on the rise with increase shortage of supply too.
Railway Transportation
o
Indian railway is only used for movement of bonded goods aandits not available for commercial exporters. Railway is one of the cheapest means of transportation in country.
Lack of space is problem
o
Because of small area, less pieces of furniture are produced. There’s 40% loss and as a result all opportunities are lost. If more material is produced, it is wasted because there is no space for its storage.
Lack of Practical implications
o
It seeking to go international need to learn a lot about external and internal environment impacting their organizations.
Lack of skilled labor
o
Since the injunction of contemporary furniture, there is a decline in overall hand carvers in the market.
SUGGESTIONS
1) Company should go for direct mailing exercise to the specifies and trade. 2) Company should create awareness among the people. 3) Company should make a strong relationship with the specifies mainly
Interior Architects and Designers
Contractors & carpenters
Retailers
4) Company should expand their network through Authorized dealers/ Sub-dealers/ Retailers.
OTHER FACTS:
Access to the international markets tends to be a problem
o
As producers may be unfavorably located; far from the main consumption centers and suffer from costly transportation.
Access to raw materials at competitive costs becomes a problem
o
This can become a hindrance to organizing the flow of raw materials from domestic, ontransparent timber markets controlled by various intermediaries, and often leads to timber shortages just when exports are growing.
Access to knowledge and technology is a major problem area.
o
Industries tend to fall behind because of their strong reliance on traditions; e.g. they may be using high-value timber for secondary uses; simply through force of habit and thus gain revenues far below the timber's real potential.
Access to capital is difficult to find at competitive rates
o
Since domestic bank finance is scarce, interest rates are generally high and collateral requirements are strict.
Access to designers is limited
o
The exporters rely on simply selling items “as they are”. copyingnew, peels or producing according to the buyer’s designs.
There are shortages of skilled labor and in-house training
o
(Apprenticeships, on the job training, etc.) is usually considered too much of a burden.
7. CONCLUSION
Spacewood Industry Pvt. Ltd. is an integrated interior infrastructure company leading with leadership in the plywood & Laminates in India. SFPL manufactures product like Plywood, Particle board, Laminate & Decorative veneer commanding more share of 25% in the organized Plywood market & 15% in the organized laminate market. The products are sold under the brand Spaceply,& Green Spacewood in the Plywood segment. SFPL has more than 26 branches across the country with a strong network of over 7100 dealers, distributors, sub-dealers & Retailers. 1) Plywood and laminate industry provides direct and indirect employment to over a million people. 2) Revenue from the Plywood is more than all other products. 3) The producing capacity of Plywood is also more than all other products.(18 million sq. per meter) 4) Consumer also giving a good preference to plywood. 5) Market share of Plywood is also high of SFPL
LEARNING EXPERIENCE
Myexperience of making a Product Profile is wonderful because it gives me a lot of valuable & knowledgeable information. After preparing a product profile I come to know that what researches should be conduct before launching any product in the market. For promoting the sales of any product it is necessary to fulfill the expectations of the consumers related to a particular product and this profile helps me to know how to target the customer or how to reach the customer and how to satisfy them.
It is necessary for every company to expand the market of their product for surviving in a market and for expanding the market “Positioning of the market” is very necessary. This profile also helps me in the same.
In this way I can easily say that “product Profile” is really a wonderful experience for me.
8.BIBLIOGRAPHY
Website Reffered:
www.spacewood.in
www.business.mapsofindia.com REFRENCES BOOKS:
Emotion in Advertising & Promotion, Stuart J. Agres.
CSIL (Centre for Industrial Studies). 2009. World furniture production and trade data for 2008.
Trochim M.K. William, 2006, Research Methods, II edition, Biztantra.
Best W. John, Kahn V. James, 2005, Research in Education, IX edition, Prentice Hall ofIndia Pvt. Ltd.
Marketing Management, 12th edition, Philip Kotler, Kevin Lane Kotler, Published by Prentice Hall, USA
Advertising and Integrated Brand Promotion, 4th Edition, Thomas C. O‟Guin, Christ.
Allen, Richard J. Semenik, Published by Thomson South-Western Publishing house.
Spacewood annual report 2012-13
Company’s Broacher
Company’s Magazine
ANNEXTURE
Questionnaire
Name…………………………………………………………………………………………
E-Mail ID……………………………………… Telephone………………………………… Occupation……………………………………………………………………………………
1) What is your perception about Plywood prices? d) Costly e) Cheap f) Moderate
2)What are the different types of Plywood you are aware of? a) Less than 2 b) 2 to 4 c) 4 to 6 d) 6 and above
3) Which company do you prefer for plywood consumption? e) Spacewood Industries Pvt. ltd. f) Greenply Pvt. Ltd. g) Century ply h) Other
4) What are the reasons behind your ranking? e) Brand Name f) Good service g) Good Quality h) Any other reason
5) Are you aware of Spacewood Industry Pvt. Ltd.? c) Yes d) No
6) Have you ever used plywood of Spacewood Industries Pvt. Ltd.? d) Yes e) No
7) How satisfied are you with the variety in products offered by Spacewood? f) Highly Satisfied g) Satisfied h) Neutral i) Dissatisfied j) Highly Dissatisfied
8) How satisfied are you with the pricing of Spacewood Products? d) Satisfied e) Neutral f) Dissatisfied
9) How much money do you usually spend in Furniture? e) Less than 1,00,000 f) 1,00,000 to 3,00,000 g) 3,00,000 to 5,00,000 h) Above 5,00,000
10) What is the single most important factor for you to choose Furniture’s? d) Ambience/Experience e) Value of money f) For Comfort
11) How is your experience with Spacewood? e) Excellent f) Good g) Satisfactory h) Poor
