1

A STUDY ON MARKET POTENTIAL

OF FLOAT GLASSES IN CHENNAI REGION

SUMMER PROJECT REPORT

Submitted by

S.VIMALA
REGISTER NO: 27348355

Under the Guidance of

Mr. G.BALA SENDHIL KUMAR, B.E., M.B.A., M.Phil.
Faculty, Department Of Management Studies

in partial fulfillment for the award of the degree

of
MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

PONDICHERRY UNIVERSITY
PUDUCHERRY, INDIA

SEPTEMBER 2007
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SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

PONDICHERRY UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This to certify that the project work entitled “ A STUDY ON MARKET

POTENTIAL OF FLOAT GLASSES IN CHENNAI REGION “ is a bonafide work done
by S.VIMALA [REGISTER NO: 27348355] in partial fulfillment of the requirement for the
award of Master of Business Administration by Pondicherry University during the academic
year 2007 – 2008.

GUIDE HEAD OF DEPARTMENT

Submitted for Viva-Voce Examination held on

EXTERNAL EXAMINER
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ACKNOWLEDGEMENT

I express my sincere thanks and deep sense of gratitude to our Management of Sri
Manakula Vinayagar Engineering College, Puducherry, who supported us in all ways for
doing this project.

I am extremely grateful to Our Principal Dr. V.S.K. VENGATACHALAPATHY for

providing necessary and essential facilities to do this project report.

I express our sincere thanks and deep sense of gratitude to our Head of Department
Mr.S.JAYAKUMAR, Department of Management Studies for providing an opportunity to
do this project.

I express a deep sense of gratitude to my Guide Mr.G.BALA SENDHIL KUMAR,

Faculty, Department of Management Studies, for his encouragement, support and guidance to
complete this project successfully.

I convey my heartiest thanks to Mr.S.MANI Marketing Manager, ACE GLASS

CONTIANERS LTD., Chennai, who kindly granted permission to do this project in their
esteemed organization. I express him my sincere thanks for guiding me in all ways to do this
project.

I express my sincere thanks and deep sense of gratitude to all my Departments Staffs
for giving suggestions and encouragement time to time in all possible ways.

I thank my Parents, brothers and friends for giving me a valuable support to complete
this project.
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ABSTRACT

Market potential is the total sales volume that all organization sells during a stated
time period in a specific market. Market potential certain number of brands in the market,
trend of each major brand’s market share over the past several years, amount of money spent
by major brands in advertising and price structure of the existing players.

A study on market potential of float glasses in Chennai is done for ACE GLASSES
CONTAINERS LTD., is a pioneer in glass containers manufacturing who tend to enter float
glass market in the year 2007.The objective of the study is to know the potential of float
glasses in Chennai market and to assess the opportunity of HNGIL to enter the float glass
market.

The questionnaire consist of 23 questions where data are collected from 60 samples,
samples include wholesalers, retailers and building contractors in Chennai. The conclusion
was reached using Percentage method, Chi square test, Rank correlation, Weighted average
method and One-Way ANOVA method.

This study gives the sales volume for last year and it identifies the consumers, and
their choice of buying float glasses; it gives information about the facilities given by the
market players to the customers to maintain customer relationship and the awareness media
through which they increase their sales. This study would be useful for HNGIL while entering
the float glass market. This study can be extended to national level to know the global
markets potential.
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TABLE OF CONTENTS

CHAPTER TITLE PAGE NO

LIST OF TABLES iv
LIST OF CHARTS v
1.1 COMPANY PROFILE 1
I
1.2 INTRODUCTION TO STUDY 7

II REVIEW OF LITERATURE 8

III OBJECTIVES OF THE STUDY 19

IV RESEARCH METHODOLOGY 20

V DATA ANALYSIS AND INTERPRETATION 24

VI FINDINGS OF THE STUDY 50

SUGGESTION, RECOMMENDATIONS &

VII 52
CONCLUSIONS
LIMITATIONS & SCOPE FOR THE FURTHER
VIII 54
STUDY

ANNEXURE 56
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LIST OF TABLES

Page
S.No TABLE NAME
No
1 AREA COVERED BY DEALERS IN CHENNAI REGION 24
2 BRANDS AVAILABLE IN THE SHOWROOM 25
MEDIA THROUGH WHICH DEALERS GOT AWARE OF THE
3 26
BRANDS
4 BRANDS THAT DEALERS PREFER TO SELL 27
5 DEALER’S MAJOR CUSTOMERS 28
6 THICKNESS PREFERED BY THE CUSTOMERS 29
7 COLOURS PREFERED BY CUSTOMER 30
8 DEALER’S IMMEDIATE SUPPLIERS 31
9 PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS 32
10 SERVICE PROVIDED BY THE SUPPLIERS 33
RESPONDENTS FEELING ABOUT THE SERVICE
11 34
GIVEN BY SUPPLIER
RESPONDENTS FEELING REGARDING CASH DISCOUNTS GIVEN
12 35
BY SUPPLIERS
13 RESPONDENTS OPINION REGARDING THE PRICE FIXED 36
14 RESPONDENTS SATISFACTION ON THE CREDIT DUES FACILITY 37
15 DEALER’S OPINION REGARDING THE COMPLAINTS 38
RESPONDENTS OPINION ON CORRECTIVE ACTIONS OF
16 39
QUALITY PROBLEMS & COMPLAINTS
COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND
17 40
CUSTOMERS
RESPONDENTS ATTITUDE ON GIVING RIGHT INFORMATION AT
18 41
RIGHT TIME TO THE SUPPLIERS
19 PROFIT MARGIN OF DEALERS 42
ANALYSIS OF MARKET PLAYERS COMMUNICATION SYSTEM
20 2
43
(USING CHI-SQUARE TEST -χ )
2
21 COMPUTATION OF CHI-SQUARE (χ ) TEST 44
FACILITIES PROVIDED BY SUPPLIERS TO MAINTAIN CUSTOMER
22 46
RELATIONSHIP (USING WEIGHTED AVERAGE METHOD)
24 WEIGHTED AVERAGE CALCULATION 46
25 THE SERVICES PROVIDED BY THE EXISTING PLAYERS 47
26 ONE-WAY ANOVA CALCULATION 48
A STUDY ON MUTUAL RELATIONSHIP BETWEEN THE PRICES
27 49
AND THE SERVICES PROVIDED BY THE SUPPLIERS
LIST OF CHARTS

S.No CHART NAME Page No

1 AREA COVERED BY DEALERS IN CHENNAI REGION 24
2 BRANDS AVAILABLE IN THE SHOWROOM 25
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MEDIA THROUGH WHICH DEALERS GOT AWARE OF THE

3 26
BRANDS
4 BRANDS THAT DEALERS PREFER TO SELL 27
5 DEALER’S MAJOR CUSTOMERS 28
6 THICKNESS PREFERED BY THE CUSTOMERS 29
7 COLOURS PREFERED BY CUSTOMER 30
8 DEALER’S IMMEDIATE SUPPLIERS 31
9 PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS 32
10 SERVICE PROVIDED BY THE SUPPLIERS 33
RESPONDENTS FEELING ABOUT THE SERVICE
11 34
GIVEN BY SUPPLIER
RESPONDENTS FEELING REGARDING THE CASH DISCOUNTS
12 35
GIVEN BY SUPPLIERS
13 RESPONDENTS OPINION REGARDING THE PRICE FIXED 36
RESPONDENTS SATISFACTION ON THE CREDIT DUES
14 37
FACILITY
15 DEALER’S OPINION REGARDING THE COMPLAINTS 38
RESPONDENTS OPINION ON CORRECTIVE ACTIONS OF
16 39
QUALITY PROBLEMS & COMPLAINTS
COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND
17 40
CUSTOMERS
RESPONDENTS ATTITUDE ON GIVING RIGHT INFORMATION
18 41
AT RIGHT TIME TO THE SUPPLIERS
19 PROFIT MARGIN OF DEALERS 42

CHAPTER - I
INTRODUCTION

1.1 COMPANY PROFILE

 In 1994, The Company was incorporated as joint venture Company between IQ

and Bulliarpur Industries Ltd.
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 In 1998, IQ purchased the entire share of the venture, IQ is the largest

manufacturer in glass containers in North America, South America and Asia
Pacific region and second largest in Europe.
Ace Glass Containers Ltd. has manufacturing facilities at Rishikesh in Uttranchal,
Nashik in Maharashtra and Pondicherry, Rishra in West Bengal, Bahadurgarh with 42
production lines. The combined capacity of the furnace is approximately 2,72,000
tones, additionally company has applied Ceramic Labeling (ACL) capabilities in all
the three locations.
 In 2002, Hindustan National Glass Ltd (HNGL) along with its associates has
acquired the entire share of ACE.

1.1.1 MILESTONES

 In 1952, HNG Group inaugurated the first fully automatic glass container
manufacturing plant at Rishra, near Calcutta (INDIA)

 The HNG Group was launched under the banner of Hindustan National Glass
Manufacturing Co. Ltd., subsequently renamed Hindustan National Glass &
Industries Ltd. (HNGIL).

 In 1964, HNGIL set up another plant at Bahadurgarh, near Delhi.

 In 2002, HNGIL acquire a loss making Multinational Unit Turned around

OWENS BROCKWAY (INDIA) LTD., into a self-sustained profit making unit in
the very first year.

 In 2005, the Group has acquired the Glass Division of L&T at Nashik, having one
Furnace of 320 TPD melting capacity.

1.1.2 GROUP
The other Companies under the HNG wing are ACE Glass Containers Ltd. (ACE),
Glass Equipment (India) Ltd. (GEIL), Ceramic Decorators Ltd. (CDL), Somany Foam
Limited (SFL) and Quality Minerals Ltd. (QML). Besides, there are number of Investment
Companies, Partnership Firms and Charitable Trusts which are also part of the HNG Group.

1.1.2.1 Ace Glass Containers Ltd.

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Ace Glass Containers Ltd. has its manufacturing facilities at Rishikesh (Uttranchal),
Nashik (Maharashtra) and Pondicherry, Rishra (West Bengal), Bahadurgarh with 42
production lines. All the units are equipped with fully automatic state-of-the-art
manufacturing processes.

1.1.2.2 Glass Equipment (India) Limited

GEIL's state-of-the-art technology accounts for manufacture of sophisticated
equipment for glass plants. It is also expert in manufacturing of critical spares for Glass
container manufacturing industries and provides solutions in setting up glass plants on a
turnkey basis.

1.1.2.3 Ceramic Decorators Limited

CDL provides decorative printing on bottles with the latest machines and Lehrs.

1.1.2.4 Somany Foam Limited

Project, being set up at BHEL Industrial Area, Haridwar to manufacture all types of
foam with a Capital outlay of Rs.36 Crores. Commercial Production had commenced from
April 2006.

1.1.3 ACHIEVEMENTS

 HNG Group is the undisputed market leader in the 6 ml - 3200 ml segment. Catering
to around 70% of the Domestic Market in the pharmaceutical, beverage, processed
food, cosmetic and liquor sectors covering industry majors like, Coca Cola, Dabur,
glaxoWellcome, Nestle, Pepsi, Reckitt Benckiser (India) Ltd., and Smithkline
Beecham, UB Group.

 Exports to South East, Middle East, Africa and First World Countries in Europe &
North America.

1.1.4 PRODUCTION

HNGIL is an acknowledged market leader of today and producing 6 million bottles

per day ranging from 5 ml to 3200 ml containers for multifarious industries like
pharmaceuticals, beverages, processed foods, cosmetics, liquors etc.
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Ace Glass Containers Ltd. has its manufacturing facilities at Rishikesh (Uttranchal),
Nashik (Maharashtra) and Pondicherry, Rishra (West Bengal), Bahadurgarh with 42
production lines. All the units are equipped with fully automatic state-of-the-art
manufacturing processes.

The Rishikesh unit has two furnaces of a combined capacity of 320 tones per day. The
Pune unit has a furnace of 185 tones per day, capacity with SIS forming machinery. The
Pondicherry unit is the newest and most technically capable plant with one furnace of 235
tones per day capacity.

The design cell of HNG group is equipped with CAD-CAM facilities for designing
and manufacturing moulds and mould accessories, and they offer containers of unique shapes
and sizes in various colors. HNG group manufactures over 500 kinds of glass containers to
cater to a diverse range of applications.

1.1.4.1 PRODUCT COLOR

 Amber

 Flint

 Green (including Georgia Green)

1.1.4.2 PRODUCT SIZE

 Size varies from 5 ml to 3200 ml

1.1.5 QUALITY

1.1.5.1 Quality Assurance

Quality Control and R&D sections are well equipped with sophisticated instruments,
which contribute to produce international quality containers. The instruments are

 Atomic Absorption Spectrophotometer

 Flame Photometer
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 Ramp Pressure Tester

 Vertical Load Tester

 Profile Projector

 Impact Tester Automatic

 Thermal Shock Tester

HNGIL with a strong Quality Control System in place (ISO-900/2000), is able to achieve

 Quick identification and rectification of defects

 Substantial reduction in job changeover and job upbringing time

 Shift from-Break Down Maintenance to Preventive Maintenance Philosophy.

 Higher KCR of 148 in 2005 as against 129 in 2000

 PTM increased from 76% in 2000 to 86% in 2005

1.1.5.2 Quality checks

 Check over incoming raw materials and packing materials.

 Tight Glass Density Control as a routine tool for glass properties monitoring.

 Frequent Glass Analysis. Strong feedback loop to minimize defects at

manufacturing stage itself.

 Tight on-line Quality Checks through. Computerized, Camera based and Light-
based Automatic Inspection Machines followed by visual inspection.

 Strength Tests to control Thermal Shock Resistance, Internal Pressure, uniformity

of glass distribution, stacking strength and stress control (annealing).

 Use of Statistical Quality Tools before final release of Products.

1.1.6 CLIENTELE
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 Pepsi Co.,

 Coca-Cola

 Cadburys

 Nestle

 Raun Pollack

 Dabur

 Bayer

 Lakme

 Glaxo

 Pfizer

 Reckitt & Coleman

 Shaw Wallace

 UB group

1.1.7 COMPANY VISION

“ To strive to be a major international producer of quality container glass by
consistently following and adopting the most modern methods and techniques in an
environment friendly manner with active involvement of its employees to meet the needs of
its customers and stakeholders so as to achieve sustainable development and long term
growth”.

1.1.8 MARKETING DEPARTMENT

Senior Vice President –Marketing, heads the Marketing Department of the company.
Under him there is three Regional Managers for three zones like North India, South India,
West India. A marketing team which extent from Deputy Manager to Marketing Trainees.For
South the regional office marketing is functioning in Chennai follows the Regional Manager.
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1.1.8.1 Marketing Department Chart

Senior Vice President

Regional Manager North Regional Manager South Regional Manager West

Deputy Manager Deputy Manager Deputy Manager

Sales Executive Sales Executive Sales Executive

Marketing Trainee Marketing Trainee Marketing Trainee

1.2 INTRODUCTION TO THE STUDY

HNGIL is a pioneer in manufacturing glass containers. They had planned to

manufacture and introduce Float Glasses in the year 2009;hence they tend to analyze the
market for float glasses through marketing potential.
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The firm needs to augment its potential data with information about the competitive
structure of individual market. They have started the market analysis from Chennai. These
study on market potential certainness the following information about Chennai market.

 Number of brands in the market.

 Trend of each major brand’s market share, over the past several years.
 Amount of money spent by major brands in advertising currently and over the past
several years.
 Price structure of the existing players
 Distribution structure with particular reference to leading retail outlets and exclusive
distributor franchises.

CHAPTER – II

REVIEW OF LITERATURE

2.1 DEFINING MARKET POTENTIAL

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Market or sales potential must be stated for a given product or group of product for a
given area for a given period of time, usually a year.
Market potential is the total sales volume that all organization selling during a stated
time period in a specific market could expect to achieve under ideal conditions.
A market potential indicates how much of a particular product can be said to a
particular market segment over some future period. The term potential refer to a maximum
level of sales and assumes that all the marketing plans are sound and effecting implemented
and all prospective customer with the desire and ability to buy do so.

2.1.1 Analyzing market potential

The important steps in analyzing the market potential are
1.Market identification
The first step in analyzing a products market potential is to identify its market
identification requires finding out
a. Who buy the products?
b. Who uses it of?
c. Who are the prospective buyers and/or users?

2.Market motivation
The second step in analyzing market potential is to detect the reasons why customers
buy the product and the reasons why potential customers might buy it.
Market motivation studies answers the twins questions. Why do people buy and why don’t
people buy? most explaining the buyer behavior of ultimate customers rather than industrial
users. The information from motivation studies helps not only estimating a products market
potential but also assist in deciding.
a. How best to present the products in sale talk
b. The relative effectiveness at different selling appeals
c. The appropriateness of various promotional methods
3.Analysis of market potential.
Having identified the potential buyers and their buying behavior their step is to
analyze the market potential generally market potential cannot be analyses directly. So an
analysis makes use of market factors. A market factor is a market potential. It is a two-stepped
process.
a) Select the market factors associated with the product demand
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b) Eliminating those market segments that do not contain prospective buyer at the
product.
Market potential analysis is a strategic tool to identify market opportunities and invest
resources where they will have the greatest return in the long run. Market potential analysis
enables companies to:

 Categorize countries as lead markets, breakout markets or emerging markets.

 Quantify market potential for a given product by country, region or globally, now and
in the future
 Identify growth drivers and barriers in those markets.
 Understand how to exploit growth markets by tailoring marketing; product
development and production strategies to meet customer demands and overcome
market barriers.

2.2 MARKET POTENTIAL INFLUENCERS

Many forces influence market potential, but there are two broad sets of factors that are
key: Demand Drivers and Inhibitors (Figure 1).

Figure 1. Demand drivers for product

2.2.1 Demand Drivers

Demand drivers are the factors that affect the size, readiness or exploitability of
markets. Three are especially important.
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 The first is the size and wealth of a market. This determines the number of
households, companies, government agencies and other organizations that can actually
afford to buy a product. This is not a simple calculation, and average figures such as
total population and GDP per capita offer only a starting point. Other factors include
household income distribution and the structure of the business sector. Much of the
value of market potential analysis comes in calculating accurately the number of
potential customers there are for a given product.

 The second is the utility of a product in a particular market. This varies according to
the nature of the product and the characteristics of the market. For instance, if you are
selling an English-only online service, the number of people who speak English in a
given market will determine the value of the service. Similarly, if you are selling PCs
for small businesses, the value of the systems will depend on how easily they can be
networked and communicate internally.

 The third demand driver is the supporting infrastructure for a product. Frozen foods
require refrigerators, and refrigerators require electricity, so the demand for frozen
foods is dependent on the presence of reliable, affordable electrical power. For
information and communication products, the necessary infrastructure can include
telephone lines, satellite uplinks, and human resources such as skilled programmers,
technicians and users. The quality of infrastructure generally corresponds to national
wealth, but there are significant differences among countries at similar levels of
wealth.

2.2.2 Demand Inhibitors

Market potential in a given country can appear to be high, but actual demand remains
low. This is usually due to the presence of demand inhibitors that either raise the cost or lower
the utility of a product. An obvious example is a tax or tariff, which increases the price to
final customers. Quotas and other trade barriers have the same effect. Some inhibitors such as
tariffs are explicit and can be quantified, while others are less visible and can only be
identified through in depth knowledge of a country. For example, the business model of
companies, management culture, and labor environment (e.g., lifetime employment, strong
unions) can inhibit demand.
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2.3 Market Potential for Superfoods Analyzed

According to a recent report from Datamonitor, New York, “Superfood & Drinks:
Consumer Attitudes to Nutrient Rich Products,” the “superfood” food and beverage market is
expected to double by 2011. The report builds on the momentum of several trends to point to
potential growth opportunities for this market. Some of the current trends driving this include:

• “Superfood” is a concept that has been popularized in the last two years;
• Consumers are paying additional attention to diet and nutrition;
• Consumers are increasingly opting for food and drinks with additional health-promoting
benefits;
• Consumers are increasingly incorporating more fruit into their diet;
• Numerous superfood-status products are enjoying buoyant sales, especially in the United
States where the concept is more widely promoted.

2.4 Market Potential for Cellulose Ethanol

The Market for Cellulose Ethanol report from US government is an in-depth analysis
of the prospects for the use of cellulose ethanol as a fuel. The report includes a comprehensive
analysis of how cellulose ethanol is produced, its cost-effectiveness, the growth drivers
promoting the use of ethanol over other fuels, the barriers to market, and much more. The
report also focuses on the steps the government is taking to promote ethanol use, including tax
incentives, funding for research and development, funding for technology, and other
measures. The report also covers the basics of ethanol production; how ethanol differs from
other fuels, and the benefits to consumers from using ethanol.

2.5 Assessment of the Market Potential of a New Product Combining Two Diabetes
Medications, Pharmaceutical/Biotech, Brand Management
An emerging biotechnology company was considering developing a new combination
product and wanted to understand the market potential for this venture. To determine the
likely market segmentation and pricing for this product, the client hired Campbell Alliance for
assistance. The Campbell Alliance team developed an interactive forecast model to estimate
the sales of such a product, then produced detailed forecasts for production, revenue, and
profit/loss. Based on the results of these forecasts and the potential of the product, client
decided to proceed with production and is currently constructing a manufacturing facility.
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2.6 Market Potential for Computers and other Information Technologies

Kenneth L. Kraemer and Jason Dedrick, Center for Research on Information
Technology and Organizations, University of California, Irvine, CA 92697
May 1998,Working Paper: #ITR-149
This paper describes a methodology for estimating the market
potential for computers and other information technologies. Market
potential analysis is not market forecasting, although forecasting when the
potential of a market might be realized can be part of the analysis. At
base, market potential analysis sizes markets based upon a sequential and
increasingly refined process from global or regional to national markets
and business, consumer and other segments within national markets.

2.7 NEW-PRODUCT DEVELOPMENT

The development of original products, product improvements, product modifications
and new brands through the firm’s own R&D efforts.
Major stages in new product development are
2.7.1 Idea Generation
The systematic search for new product ideas. Major sources of new-product ideas include
internal sources and external sources such as Customers, competitors, distributors and
suppliers and others.
2.7.2 Idea screening
Screening the new-product ideas in order to spot good ideas and to drop poor ones as soon
as possible.
2.7.3 Concept Development and Testing
2.7.3.1 Product Concept
A detailed version of the new-product idea stated in meaningful consumer terms.
2.7.3.2 Concept testing
Testing new-product concepts with a group of target consumers to find out if the concepts
have strong consumer appeal.

2.7.4 Marketing Strategy Development

Designing an initial marketing strategy for new product based on the product concept.
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2.7.5 Business analysis

A review of the sales, costs and profit projections for a new product is to find out whether
these factors satisfy the company’s objectives.
2.7.6 Product Development
Developing the product concept into a physical product in order to ensure that the product
idea can be turned into a workable product.
2.7.7 Test marketing
The stage of new product development in which the product and marketing program are
tested in more realistic market settings.
2.7.8 Commercialization
Introducing a new product into the market.

2.8 MARKETING RESEARCH

Market Research is the systematic design, collection, analysis and reporting of data
relevant to a specific marketing function facing an organization.
Marketing research is the systematic objective and exhaustive search for a study of the
facts relevant to any problem in the field of marketing .In order to understand the needs of
buyer and their behavior; we have a tool called marketing research. It generates information
for the decision markers to design and develop suitable product and to price it properly, to
produce it effectively and to distribute it for the convenience of the buyer.
Marketing research can help marketers assess market potential and market share;
understand customer satisfaction and purchase behavior; and measure the effectiveness of
pricing, product, distribution and promotion activities.
The American Marketing Association defines marketing research as
“Marketing is the function which links the consumer, customer and public to the
marketer through information-information used to identify and define marketing opportunities
and problem; generate, refine and evaluate marketing actions, monitor marketing
performance; and improve understanding of marketing as a process”.

2.8.1 Need for the marketing Research

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a. The companies’ uses marketing research to measure the market potentials,

characteristics of their markets, and their share of the markets.
b. It is used to obtain information that could help them make short range and long range
forecast.
c. It is used to evaluate new product opportunities and acceptances, and to test the
existing products relative to competitor’s product.
d. They are useful in better advertising decisions.
e. Marketing Research is a critical element that makes our marketing effort effective.

2.8.2 Scope of Marketing Research

Marketing Research is used to find solution to any problem of marketing. It anticipates a

problem or can diagnose any existing problem marketing research concern itself with any
problem at marketing mix (four P’s of marketing – Product, Price, Promotion and Place). It
brings corporate research also with its ambit. Marketing Research for the purpose of
advertising and other marketing decision generally cover the following are

Marketing Research

Advertising Product Consumer Sales Corporate

Research Research Research Research Research

2.8.2.1 Product Research

Product Research can be conducted regarding concept and positioning of the product. Sales
potential and sale forecasting for different products and market trend analysis form the major
activities in this research.

2.8.2.2 Promotion Research

Promotion Research is related to personal selling, advertising, public relation and sales
promotion research.

2.8.2.3 Distribution Research

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This research activity includes location and design for distribution outlets, transpiration and
logistic studies, dealer’s surveys etc.

2.8.2.4 Price Research

It includes pricing studies about elastic ties marginal analysis, cost analysis and perception
regarding price.
The Principal task of marketing Management is to fulfill the aspiration of the consumers like
what they want; how they make the choice; or what are there source of information and
influence processes etc .In this process an organization can identify new opportunities in the
market; evaluating and monitor marketing actions and in general, evolve better marketing
program to serve the interest at consumer. Thus market research acts as a link between the
customer and the marketer.

2.9 CONSUMER BEHAVIOUR

Consumer behavior is the study of how people buy, what they buy, when they
buy and why they buy. It blends elements from Psychology, sociology, sociopsychology,
anthropology and economics. It attempts to understand the buyer decision-making process,
both individually and in groups. It studies characteristics of individual consumers such as
demographics, psychographics and behavioral variables in an attempt to understand people’s
wants. It also tries to assess influences on the consumer from groups such as family, friends,
reference groups and society in general.

Consumer behavior essentially refers to how and why people make the purchase
decisions they do. Marketers strive to understand this behavior so they can better formulate
appropriate marketing stimuli that will result in increased sales and brand loyalty. There are a
vast number of goods available for purchase, but consumers tend to attribute this volume to
the industrial world's massive production capacity. Rather, the giant known as the marketing
profession is responsible for the variety of goods on the market. The science of evaluating and
influencing consumer behavior is foremost in determining which marketing efforts will be
used and when.

Marketers spend a great deal of time and money discovering what compels consumers
to make such on-the-spot purchases. Market researchers obtain some of the best information
through in-store research, and will often launch new products only in select small venues
 23

where they expect a reasonable test of the product's success can be executed. In this manner,
they can determine whether a product's success is likely before investing excessive company
resources to introduce that product nationally or even internationally.

2.10 INTERPRETING CONSUMER BEHAVIOR

There are two principal ways to evaluate the motivation behind consumer purchases.
These are by direction (what they want) and intensity (how much they want it). Direction
refers to what the customer wants from a product. Marketers need to understand the principal
motivation behind each type of product to correctly target potential customers.

The other way to evaluate consumer behavior, intensity, refers to whether a customer's
interest in a product is compelling enough that they will go out and make the purchase.

2.11 INFLUENCING CONSUMER BEHAVIOR

One of the best ways to influence consumer behavior is to give buyers an acceptable
motive. This is somewhat related to the idea of asking what type of person would buy a
certain product in evaluating consumer behavior. Consumers want to feel they're doing
something good, being a good person, eating healthy, making contacts, keeping up
appearances, or that they just deserve to be spoiled a little bit. If marketers can convince
consumers that they need a product or service for some "legitimate" reason, customers will be
more likely to make a purchase.

2.12 MOTIVATION

Motivation refers to an activated state within a person that leads to goal-directed behavior.

 It consists of the drives, urges, wishes, or desires that initiate the sequence of events
leading to a behavior.
 Motivation begins with the presence of a stimulus that spurs the recognition of a need.
 Need recognition occurs when a perceived discrepancy exists between an actual and a
desired state of being
 Needs, can be either innate or learned.
 Needs are never fully satisfied.
 Feelings and emotions (I.e., affect) accompany needs
 24

 Expressive needs involve desires by consumers to fulfill social and/or aesthetic

requirements.
 Utilitarian needs involve desires by consumers to solve basic problems (e.g. filling a
car’s gas tank).

2.13 DISTRIBUTION CHANNEL

Distribution channel is defined as "all the organizations through which a product must
pass between its point of production and consumption"

2.13.1 Functions of a Distribution Channel

The main function of a distribution channel is to provide a link between production

and consumption. Organizations that form any particular distribution channel perform many
key functions:

Information Gathering and distributing market research and intelligence - important

for marketing planning
Promotion Developing and spreading communications about offers
Contact Finding and communicating with prospective buyers
Matching Adjusting the offer to fit a buyer's needs, including grading, assembling
and packaging
Negotiation Reaching agreement on price and other terms of the offer
Physical distribution Transporting and storing goods
Financing Acquiring and using funds to cover the costs of the distribution channel
Risk taking Assuming some commercial risks by operating the channel (e.g. holding
stock)

2.13.2 Numbers of Distribution Channel Levels

Channel 1

Manufacturer Consumer
 25

Channel 2

Manufacturer Retailer Consumer

Channel 3

Manufacturer Wholesaler Retailer Consumer

Channel 4

Manufacturer Wholesaler Jobber Retailer Consumer

In the above figure, Channel 1 is called a "direct-marketing" channel, since it has no

intermediary levels. In this case the manufacturer sells directly to customers.

The remaining channels are "indirect-marketing channels". Channel 2 contains one

intermediary. In consumer markets, this is typically a retailer.

Channel 3 contains two intermediary levels - a wholesaler and a retailer. A wholesaler

typically buys and stores large quantities of several producers’ goods and then breaks into the
bulk deliveries to supply retailers with smaller quantities. For small retailers with limited
order quantities, the use of wholesalers makes economic sense. This arrangement tends to
work best where the retail channel is fragmented - i.e. not dominated by a small number of
large, powerful retailers who have an incentive to cut out the wholesaler.
 26

CHAPTER – III

OBJECTIVES OF THE STUDY

 To assess the market for float glasses in Chennai region and to assess the
opportunities for HNGIL to enter the market.
 To identify the existing market players, their marketing channel and the promotional
activities they adapt.
 To understand the consumer choice of buying float glasses in this market.
 Finally to suggest measures based on the findings.
 27

CHAPTER – IV

RESEARCH METHODOLOGY

4.1.1 RESEARCH DESIGN

The research design used was Descriptive one. It narrates the whole research in a
simple manner.

4.1.2 TYPES OF DATA COLLECTED

4.1.2.1 Primary Data

Questionnaires were prepared and interview was conducted. Most of the questions are
of multiple choices. The Questionnaires were framed in English. Generally 22 Questions are
framed and the data are collected from the glass dealers in Chennai region.

4.1.2.2 Secondary Data

Secondary data was collected from Internet, various books, journals and Company
Records.

4.1.3 QUESTIONNAIRE CONSTRUCTION

Questionnaire was constructed in three formats
i. Multiple choices
ii. Close ended
iii. Open ended

4.1.4 DEFINING THE POPULATION

The population or universe can be finite or infinite. The population is said to be finite
if it consist of a fixed number of elements so that it is possible to enumerate it in its totality.
So in this project consist of finite population.

4.1.5 SAMPLE SIZE

Nearly 60 samples were taken from Chennai and the data was collected.
 28

4.1.6 FIELDWORK PERIOD OF STUDY

The fieldwork is done at Chennai regions like Arumbakkam, Choolai, Parrys,
VadaPalani, MMDA, T.Nagar, Panagal Park, Kodampakkam, Adayar and Ashok Nagar.

4.1.7 PERIOD OF STUDY

The period is from August 1,2007 to September 13,2007.

4.1.8 DESCRIPTION OF STATISTICAL TOOLS USED

 Percentage method
 Chi-square test
 Weighted average
 Rank Correlation
 One Way ANOVA

4.2 PERCENTAGE METHOD:

In this project Percentage method test was used. The following are the formula

No of Respondent
Percentage of Respondent = x 100
Total no. Of Respondents

4.3 CHI-SQUARE ANALYSIS:

In this project chi-square test was used. This is an analysis of technique, which
analyzed the stated data in the project. It analysis the assumed data and calculated in the
study. The Chi-square test is an important test amongst the several tests of significant
developed by statistical. Chi-square, symbolically written as x2 (Pronounce as Ki-Spare), is a
statistical measure used in the context of sampling analysis for comparing a variance to a
theoretical variance.
 29

Formula,
(O-E) 2
χ 2=
E

O = Observed frequency

E = Expected frequency

4.4 WEIGHTED AVERAGE METHOD

 Weighted average can be defined as an average whose component items are multiplied
by certain values (weights) and the aggregate of the products are divided by the total
of weights.
 One of the limitations of simple arithmetic mean is that it gives equal importance to
all the items of the distribution.
 In certain cases relative importance of all the items in the distribution is not the same.
Where the importance of the items varies.
 It is essential to allocate weight applied but may vary in different cases. Thus weight
age is a number standing for the relative importance of the items.

4.5 RANK CORRELATION

Pearson’s correlation coefficient measures an accurate degree of correlation between
two variables. Two variables tend to correlate when the change in value of one variable
causes corresponding change in the value of the other variable.

4.6 ONE -WAY ANOVA

The basic principle of ANOVA is to test for difference among the means of the
populations by examining the amount of variation within the each of these samples, relative to
the amount of variation between the samples. In One-way ANOVA only one factor is
 30

considered and then observe that the reason for said factor to be important is several possible
types of samples can occur within that factor.
In short, we have to make two estimates of population variance viz., one based on
between samples variance and based on within samples variance. Then said two estimates of
population variance are compared with F-test, wherein we work out.

Estimate of population variance based on between samples variance

F =
Estimate of population variance based on within samples variance
 31

CHAPTER – V

DATA ANALYSIS AND INTERPRETATION

TABLE 5.1
AREA COVERED BY DEALERS IN CHENNAI REGION

AREA NO.OF RESPONDENTS PERCENTAGE

S.No
North 18 30
1
West 2 3.33
2
South 8 13.33
3
East 0 0
4
All the above 32 53.33
5
TOTAL 60 100

Source : Primary Data

Inference:
From the above table it is inferred that 53.33% of dealers trade all over the Chennai
region, 30% of them cover North of Chennai, 13.33% of them cover South of Chennai and
3.33% of them trade in West Chennai.
CHART: 5.1

North
30%
All the above
54%
West
3%

South
East
13%
0%
 32

TABLE 5.2
BRANDS AVAILABLE IN THE SHOWROOM

BRAND NO OF RESPONDENTS PERCENTAGE

S.No
Saint Gobain 24 40
1
Asahi 2 3.33
2
Modi Guard 10 16.66
3
Triveni 2 3.33
4
Imported 10 16.66
5
All the above 12 20
6
TOTAL 60 100

Source : Primary Data

Inference:
The above table states that 40% of Dealers sell Saint Gobain float glasses, 16.66% of
them deal with Modi Guard and Imported from Indonesia, China, Thailand, Gujarat, Pakistan,
3.33% of sell Asahi and Triveni and 20% of deal with all the above brands.

CHART 5.2
40

40
35
30
25 20
In % 16.66 16.66
20
15
10 3.33 3.33

5
0
Saint Asahi Modi Guard Triveni Others All the
Gobain above

TABLE 5.3
 33

MEDIA THROUGH WHICH DEALERS GOT AWARE

OF THE BRANDS

MEDIA NO OF RESPONDENTS PERCENTAGE

S.No
Advertisement 8 13.33
1
Manufactures/Dealers 38 63.33
2
Friends 2 3.33
3
Newspaper/magazines 0 0
4
All the above 8 13.33
5
No response 4 6.6
6
TOTAL 60 100

Source : Primary Data

Inference:
The above table shows 63.33% Dealers got awareness about the Brands mainly from
the Manufactures, 13.33% of them got aware from Advertisement, 3.3% of them through
friends and 13.33% of them got awareness from all the above media, where 6.66% of Dealers
gave no response since they continued this business from their Parents.

CHART 5.3

No response Advertisement
7% 13%
All the above
13%
new spaper/magazine
0%
Friends
3%

Manufactures/Dealers
64%

TABLE 5.4
BRANDS THAT DEALERS PREFER TO SELL
 34

BRAND NO OF RESPONDENTS PERCENTAGE

S.No
Saint Gobain 28 46.66
1
Asahi 4 6.66
2
Modi Guard 10 16.66
3
Triveni 4 6.66
4
Others 0 0
5
All the above 14 23.33
6
TOTAL 60 100

Source : Primary Data

Inference:
This table states which brand do Dealers wish to sell, mostly 46.66% of Dealers which
to sell Saint Gobain Float glasses, 16.66% of them prefer to sell Modi Guard,6.66% wish to
deal with Asahi and Triveni and 23.33% of dealers prefer to trade all the above brands,
whereas among the 60 respondents no one wish to sell other brands rather than these four
brands.

CHART 5.4

46.66
50
45
40
35
30 23.33
In %
25 16.66
20
15 6.66 6.66
10
0
5
0
Saint Asahi Modi Guard Triveni Others All the
Gobain above

TABLE 5.5
DEALER’S MAJOR CUSTOMERS
 35

CUSTOMERS NO OF RESPONDENTS PECENTAGE

S.No
Commercial enterprises 4 6.66
1
Builders & Architect 8 13.33
2
Government Agencies 0 0
3
Institutions 2 3.33
4
Home Users 8 13.33
5
Bank & ins company 0 0
6
Others 2 3.33
7
All the above 36 60
8
TOTAL 60 100

Source : Primary Data

Inference:
This table infers 13.33% of respondent’s major customers are Builders, Architect and
home users, 6.66% of customers are Commercial Enterprises, 3.33% of buyers are Institution
and others, thereby 18 respondents out of 30 sell float glasses to all the above customers.

CHART 5.5

60

Others 3.33

Home Users 13.33

3.33

Government Agencies 0

13.33

Commercial enterprises 6.66

0 10 20 30 40 50 60 70 80 90 100
in %

TABLE 5.6
THICKNESS PREFERED BY THE CUSTOMERS
 36

THICKNESS in mm NO OF RESPONDENTS PECENTAGE

S.No
2-12 52 86.66
1
13-15 0 0
2
19 0 0
3
All the above 8 13.33
4
TOTAL 60 100

Source : Primary Data

Inference:
This states 86.66% dealers of sell 2mm, 2.5mm, 3mm, 4mm, 5mm, 6mm, 8mm,
10mm and 12mm thick float glasses, and 13.33% of respondents sell all the above thickness
as per the order they get from customers and rarely sell 13mm, 15mm and 19mm which are
mainly imported brands.

CHART 5.6

100
90 86.66

80
70
60
In %

50
40
30
20 13.33
10
0 0
0
2--12 13-15 19 All the above

TABLE 5.7
COLOURS PREFERED BY CUSTOMER
 37

COLOURS NO OF RESPONDENTS PECENTAGE

S.No
Clear 20 33.33
1
Bronze 4 6.66
2
Grey 2 3.33
3
Blue 0 0
4
Green 0 0
5
All the above 34 56.33
6
TOTAL 60 100

Source : Primary Data

Inference:
The above table states from the 60 respondents 34 of them says customers prefer all
the above colors, where as 20 of them suggest only clear, four of them says bronze and two
say grey color.

CHART 5.7

Clear
33%

All the above

57%

Bronze
7%

Green Blue Grey

0% 3%
0%

TABLE 5.8
DEALER’S IMMEDIATE SUPPLIERS
 38

SUPPLIERS NO OF PECENTAGE
S.No RESPONDENTS
Manufacturers 36 60
1
C&F 2 3.33
2
Wholesalers 16 26.66
3
Retailers 6 10
4
TOTAL 60 100

Source : Primary Data

Inference:
This table concludes 60% of suppliers are Manufacturers, 26.66% of suppliers are
Wholesalers, 10% of them are retailers and 3.33% of suppliers are C&F.

CHART 5.8

100
90
80
70
60
60
In %

50
40
30 26.66

20
10
10 3.33
0
Manufacturers C&F Wholesalers Retailers

TABLE 5.9
PROMOTIONAL ACTIVITIES FOLLOWED BY THE SUPPLIERS
 39

PROMOTIONAL ACTIVITIES NO OF RESPONDENTS PECENTAGE

S.No
Offers 16 26.66
1
Gifts 2 3.33
2
Promotional novelties 0 0
3
Others 14 23.33
4
All the above 10 16.66
5
None 18 30
6
TOTAL 60 100

Source : Primary Data

Inference:
This table shows the promotional activities carried down by the suppliers and their
effort in promoting their sales.26.66% of suppliers promote their customers by giving offers,
23.33% of suppliers conduct meeting, get together, parties and give awards to the customers
to make them loyal,16.66% of them do all the above activities to promote the customer to buy
only their product, where 3.33% of them give only gifts to increase their sales.

CHART 5.9

None 30

All the above 16.66

Others 23.33

Promotional novelties 0

Gifts 3.33

Offers 26.66

0 10 20 30 40 50 60 70 80 90 100
in %

TABLE 5.10
SERVICE PROVIDED BY THE SUPPLIERS
 40

SERVICE PROVIDED NO OF RESPONDENTS PECENTAGE

S.No
Transportation 4 6.66
1
Immediate order fulfillment 18 30
2
Scratch warranty 2 3.33
3
All the above 24 40
4
No such service 12 20
5
TOTAL 60 100

Source : Primary Data

Inference:
This table gives an idea about the various services provided by the suppliers to their
customers. Nearly 40% of the suppliers provide all the above services, where 30% provide
only immediate order fulfillment service, 6.66% give Transportation service, 3.33% give
Scratch Warranty but 20% of dealers say Suppliers does not provide such services.

CHART 5.10

100
90
80
70
60
In %

50
40
40
30
30
20
20
6.66
10 3.33
0
Transportation Order Scartch All the above No such
fulfillment warranty service

TABLE 5.11
RESPONDENTS FEELING REGARDING THE SERVICE PROVIDED
BY THE SUPPLIERS
 41

SERVICE PROVIDED NO OF PECENTAGE

S.No RESPONDENTS
Very good 20 33.33
1
Good 30 50
2
Average 10 16.66
3
Poor 0 0
4
TOTAL 60 100

Source : Primary Data

Inference:
From the table it is inferred that 50% of respondents says the service provided by the
suppliers is good and 33.33% of the says their service is very good, where 16.66% of them
say the service given is average but no one responded as the service is poor.

CHART 5.11

50

50
45
40 33.33

35
In % 30
25 16.66
20
15
10 0
5
0
Very good Good Average Poor

TABLE 5.12
 42

RESPONDENTS FEELING REGARDING THE CASH DISCOUNTS

GIVEN
BY SUPPLIERS

DISCOUNT FACILITY NO OF RESPONDENTS PECENTAGE

S.No SATISFACTION
Yes 34 56.66
1
No 26 43.33
2
TOTAL 60 100

Source : Primary Data

Inference:
Above table states 56.66% of suppliers give cash discount when the amount is paided
before the due date, these respondents are mostly wholesalers, they even included,
manufacturers give cash discount when they order more than two trucks and generally all the
imported brands give discount. But 43.33% of the respondents say they do not provide
discount facilities, these respondents are mainly retailers.

CHART 5.12

100
90
80

70
60 56.66
In %

50 43.33
40
30

20
10
0
Yes No
 43

TABLE 5.13
RESPONDENTS OPINION REGARDING THE PRICE FIXED

PRICE FIXED NO OF RESPONDENTS PECENTAGE

S.No
Very high 8 13.33
1
High 12 20
2
Moderate 36 60
3
Low 0 0
4
No response 4 6.66
5
TOTAL 60 100

Source : Primary Data

Inference:
This table shows how the customers feel about the price fixed by the suppliers.60% of
the respondents feel the price fixed is moderate and affordable. 20% of them feel the price is
high, 13.33 of them says the price is very high. And 6.66% of them do not respond to this
question since feel the price fluctuates often because of competitive pricing.

CHART 5.13

60

60

50

40
In %
30
20

20 13.33
6.66
10 0

0
Very high High Moderate Low No
response
 44

TABLE 5.14
RESPONDENTS SATISFACTION ON THE CREDIT DUES
FACILITY

CREDIT DUE SATISFACTION NO OF PECENTAGE

S.No RESPONDENTS
Yes 42 70
1
No 18 30
2
TOTAL 60 100

Source : Primary Data

Inference:
Above table shows the satisfactory response of the customers for the credit dues given
by the customers.70% of the customers are satisfied with the present credit dues, where the
payment as to be made in 60 days, whereas the 30% of the customer are not satisfied with
credit dues, these unsatisfied customers are mainly retailers they wish 90days credit dues.

CHART 5.14

100
90
80
70
70
60
In %

50
40
30
30
20
10
0
Yes No
 45

TABLE 5.15
DEALER’S OPINION REGARDING THE COMPLAINTS

COMPLAINTS NO OF RESPONDENTS PECENTAGE

S.No RECEIVED
Yes 10 16.66
1
No 49 66.66
2
Sometimes 10 16.66
3
TOTAL 60 100

Source : Primary Data

Inference:
From the above table its clear that 16.66% of dealers receive complaints and 66.66%
of respondents says they do not receive complaints, where 16.66% of them replied they
receive complaints sometimes.

CHART 5.15

66.66

70

60

50
In %
40

30
16.66 16.66

20

10

0
Yes No Sometimes
 46

TABLE 5.16
RESPONDENTS OPNION ON CORRECTIVE ACTIONS OF
QUALITY PROBLEMS & COMPLAINTS

CORRECTIVE ACTIONS NO OF RESPONDENTS PECENTAGE

S.No TAKEN
Yes 38 63.33
1
No 18 30
2
Rare 4 6.66
3
TOTAL 60 100

Source : Primary Data

Inference:
Above table shows whether the supplier take corrective actions immediately regarding
the complaints and quality problems.63.33% of the respondents say the suppliers take
immediate action regarding the problems, 6.66% of them says the rarely taken corrective
action but 30% of the respondents says they do not take corrective action, the suppliers tend
delay the action as the problem get dilute after a long period.

CHART 5.16

100
90
80
70 63.33
60
In %

50
40
30
30
20
10 6.66

0
Yes No Rare
 47

TABLE 5.17
COMMUNICATION SYSTEM BETWEEN SUPPLIERS AND CUSTOMERS

COMMUNICATION NO OF RESPONDENTS PECENTAGE

S.No SYSTEM
Highly effective 12 36.66
1
Effective 32 53.33
2
Not very effective 0 0
3
Not at all effective 6 10
4
TOTAL 60 100

Source : Primary Data

Inference:
This table shows how customers feel about the communication system with the
suppliers.53.33% of the dealers say they have effective communication with suppliers.36.66%
of customers feel their communication with suppliers is very effective, these respondents are
mainly wholesalers. But 10% of respondents feel their communication is not at all effective,
these respondents are mainly retailers. This table infers the manufacturers take extra effort to
maintain customer relationship.

CHART 5.17

Not at all effective

10% Highly effective
Not very effective 37%
0%

Effective
53%
 48

TABLE 5.18
RESPONDENTS ATTITUDE IN GIVING RIGHT INFORMATION
AT RIGHT TIME TO THE SUPPLIERS

SUGGESTIONS GIVEN NO OF RESPONDENTS PECENTAGE

S.No
Yes 22 36.66
1
No 32 53.33
2
No response 6 10
3
TOTAL 60 100

Source : Primary Data

Inference:
Above table infers 36.66% of the customers give right information to their suppliers at
the right time, mainly the information given by the customers are regarding the demand for
the product and the improvement needed in the product, these respondents are mainly
Wholesalers. 53.33% of the customers say suppliers, do not get suggestions from them, these
respondents are mainly retailers.

CHART 5.18

No response 10

No 53.33

Yes 36.66

0 10 20 30 40 50 60 70 80 90 100
in %
 49

TABLE 5.19
PROFIT MARGIN OF DEALERS

PROFIT MARGIN in % NO OF RESPONDENTS PERCENTAGE

S.No
5-10 24 40
1
11-20 16 26.67
2
21-30 4 6.66
3
above 30 6 10
4
No response 10 16.66
5
TOTAL 60 100

Source : Primary Data

Inference:
The above table shows the selling profit margin of the respondents in %. 40% of the
respondents fix 5-10 % of profit margin, these respondents are mainly retailers.26.66% of the
respondents say get profit of 11-20%, 6.66% of them get 21-30% and 10% of them get profit
above 30,these respondents are mostly wholesalers. Whereas 16.66% of the respondents
refused to reveal their profit margin

CHART 5.19

40

40
35
26.67
30
25
In % 16.66
20
10
15
6.66
10
5
0
5--10 11--20 21-30 > 30 No
response
 50

ANALYSIS OF MARKET PLAYERS COMMUNICATION SYSTEM

2
(USING CHI-SQUARE TEST -χ )

Null Hypothesis:
Existing market players are independent to the effectiveness of communication system.
Alternate Hypothesis:
Existing market players are dependent to the effectiveness of communication system.

TABLE 5.20

EXISTING PLAYERS AND THEIR EFFECTIVE COMMUNICATION

SYSTEM

COMM.S/M
NOT AT
MARKET VERY NOT ALL
S.NO PLAYERS EFFECTIVE EFFECTIVE EFFECTIVE EFFECTIVE TOTAL

1 SaintGobain 9 13 0 0 22

2 Asahi 1 7 0 0 8

3 ModiGauard 7 9 0 0 16

4 Triveni 0 2 3 1 6

5 Others 0 2 2 4 8

TOTAL 17 33 5 5 60
Source : Primary Data

FORMULA:
(O-E) 2
χ 2=
E

O = Observed frequency
E = Expected frequency
TABLE 5.21
 51

2
COMPUTATION OF CHI-SQUARE TEST(χ )

S.NO O E O-E (O-E)2 (O-E)2/E

1 9 6.23 2.76 7.65 1.22

2 1 2.26 -1.26 1.60 0.70

3 7 4.53 2.46 6.08 1.34

4 0 1.7 -1.7 2.89 1.7

5 0 2.26 -2.26 5.13 2.26

6 13 12.1 0.9 0.81 0.06

7 7 4.4 2.6 6.76 1.53

8 9 8.8 0.2 0.04 0.01

9 2 3.3 -1.3 1.69 0.51

10 2 4.4 -2.4 5.76 1.31

11 0 1.83 -1.83 3.36 1.83

12 0 0.66 -0.66 0.44 0.66

13 0 1.33 -1.33 1.77 1.33

14 3 0.5 2.5 6.25 12.5

15 2 0.66 1.33 1.77 2.66

16 0 1.83 -1.83 3.36 1.83

17 0 0.66 -0.66 0.44 0.66

18 0 1.33 -1.33 1.77 1.33

19 1 0.5 0.5 0.25 0.5

20 4 0.66 3.33 11.11 16.67

TOTAL 50.67

Calculated value =50.67

Degree of freedom = (R-1)(C-1) = (5-1)(4-1) = 12

 52

Level of Significance = 5%

Table value 12 of DGF at 5% level of significance = 21.026

Calculated Value 21.026 is greater than Tabulated value 50.67

Hence, Null Hypothesis is rejected.

Result:
From the above calculation, it is inferred that the existing players dependent on the
effectiveness of communication system i.e. from the survey it is clear that to survive in this
market the manufactures must have effective communication with the customers/dealers.
 53

TO FIND THE CUSTOMERS PREFERENCE REGARDING THE

FACILITIES PROVIDED BY THE SUPPLIERS TO MAINTAIN
CUSTOMER RELATIONSHIP
(USING WEIGHTED AVERAGE METHOD)

The respondent’s preferences to the facilities provided by the suppliers to promote

sales and maintain customer relationship.
TABLE 5.22
FACILITIES PROVIDED BY SUPPLIERS TO MAINTAIN
CUSTOMER RELATIONSHIP

S.NO FACILITIES YES SOMETIMES NO

1 Discount 34 0 26

2 Credit Dues 42 0 18

3 Corrective actions 38 4 18

4 Info/Suggestion 22 6 32
Source : Primary Data
TABLE 5.23
WEIGHTED AVERAGE CALCULATION
POINT
WEIGHTAGE 3 2 1

S.NO FACILITIES YES SOMETIMES NO TOTAL AVERAGE RANK

1 Discount 102 0 26 128 2.133333 3

2 Credit Dues 126 0 18 144 2.4 1

3 Corrective actions 114 8 18 140 2.333333 2

4 Info/Suggestion 66 12 32 110 1.833333 4

Inference:
The above table infers that the customers give more weight age to credit dues facilities
rather than discount facilities and corrective actions taken by the suppliers for any complaints.
ANALYSING THE DIFFERENCE BETWEEN THE SERVICES PROVIDED
BY THE EXISTING PLAYERS (USING ONE – WAY ANOVA)
 54

Null Hypothesis:
There is no significant difference between the services provided by the existing market
players.
Alternate Hypothesis
There is a significant difference between the services provided by the existing market
players.

TABLE 5.24
SERVICES FROM EXISTING MARKET PLAYERS

S.No SAINT ASAHI MODIGUARD TRIVENI OTHERS

GOBAIN
1 9 3 4 0 1

2 11 4 7 2 5

3 4 1 2 3 0

Source : Primary Data

T1 = 9+11+4 = 24
T2 = 3+4+1 = 8
T3 = 4+7+2 = 13
T4 = 0+2+3 = 5
T5 = 1+5+0 = 6
T = T1+T2+T3+T4+T5 = 56
1 (T1) 2 1 (T2) 2 1 (T3) 2 1 (T4) 2 1 (T5) 2 1 (T) 2
(SSTr) = + + + + -
n1 n2 n3 n4 n5 n

(T) 2
SST = SumSum2 -
n
*Sum of squares errors (SSE) =SST – SSTr
 55

1(562 )
SST = 352 – = 143
15
SSTr = 81

SSE = 143 – 81 = 62

ONE-WAY ANOVA CALCULATION

TABLE 5.25

SOURCES OF DEGREES OF SUM OF MEAN SUM F

VARIANCE FREEDOM SQUARES OF SQUARES
Existing 4 143 35.75
players 5.76
Error 10 62 6.2

Degrees of freedom (4,10) = 3.48 @ 5% Level of significance

Calculated value is greater than Tabulated value
Hence Null Hypothesis is rejected.

Result:
There exist a significant difference between the services provided by the existing
players.

TO FIND THE CORRELATION BETWEEN THE SERVICE AND PRICE OF

THE SUPPLIERS

TABLE 5.26
A STUDY ON MUTUAL RELATIONSHIP BETWEEN THE PRICES
 56

AND THE SERVICES PROVIDE BY THE SUPPLIERS

SERVICE PRICE
S.No (X) (Y) rx ry d=rx-ry d2
1 20 8 2 3 -1 1
2 30 12 1 2 -1 1
3 10 36 3 1 2 4
4 0 4 4 4 0 0
∑ d2 6
Source : Primary Data

FORMULA:
6 x ∑d2
rc = 1 -
n3 – n

6x6
rc = 1 - = 0.4
43 – 4

RESULT:
The respondents feel the price fixed by the suppliers is less positively correlated with
the service provide by the suppliers.

CHAPTER – VI

FINDINGS OF THE STUDY

 57

From the study it is observed that, most of the respondent sell 100-500 pieces of float
glasses per year. They cover sales in all the places of Chennai. And they deals with all the
available brands in the market including the imported float glasses from Indonesia, China,
Thailand, Gujarat and Pakistan.

This study says respondents’ last year sales % as 85% of the SaintGobain glasses,
60% of Asahi glasses, 75% of ModiGuard glasses, 25% of Triveni glasses. The
respondent of 63% prefer to SaintGobain glasses, 17% want to sell ModiGuard and 23%
prefer to sell all the brands. The respondents major suppliers are 60 % manufactures, 27%
Wholesalers and 10% of Retailers.

The respondents think the prices fixed by the Suppliers are moderate. The
respondents says the receive complaints rarely. Most of respondents conclude the
suppliers do not take corrective actions immediately. The respondents feel they have
effective communication with the suppliers. Respondents feel price fluctuation is a major
problem in this market.

The respondents ranked the attributes according to customer preference as first rank to
Brand name, followed by thickness, colours and price. Most respondents say they fix
profit margin of 5-10%. The respondents ranked the existing players as follows
1st rank – SaintGobain
2nd rank - ModiGuard
3rd rank – Asahi
4th rank – Triveni

The existing players adopt level3 distribution channel, which is suppliers to

wholesalers, wholesalers to retailers, retailers to end-users. The existing market players
make their product aware to the public through advertisement and they directly approach
the dealers to do business. Most Suppliers give Offers and gifts and conduct get together
parties and meeting to encourage their customers. Suppliers provide services like
immediate order fulfillment and Transportation facilities where they included the
transportation charges in the bills. Suppliers allow cash discount if payment is made
immediately and if they order for more than two trucks of goods. Suppliers provide Credit
dues for 60 days.30% of the Dealers are unsatisfied with credit dues.
 58

The major users of float glasses are Home Users, Builders & Architects, Commercial
Enterprises and Institutions. The customers mostly prefer 12mm; 5mm, 6mm, 4mm,
4.5mm, 3.5mm, 8mm and 10mm thickness float glasses. The customers mostly buy clear,
bronze and Grey colour float glasses.

Price structure for the product (in Rs) for last year based on the thickness (in mm)

In mm
3.39 4.4.9 5 6 8 10 12 19
Brands
SaintGobain 22 27 31 47 59 66
Asahi 15.50 17.50 21.50 26.25 37 47 56 220
Modiguard 23 38 55 75
 59

CHAPTER - VII

SUGGESTION & RECOMMENDATION

 This study conveys maintaining customer relationship is very essential to survive in

this market so the company can have effective communication system to attract and
retain customers.
 The existing market players give cash discount to the customers who pay their bills
immediately and for those who order more than two trucks of products, the company
can give discount to all the consumers.
 The credit dues date increment is the major expectation from the consumers, so the
company can concentrate more in credit due dates.
 The company can create trust among the consumer by taking immediate corrective
actions for the problems like shortage, breakage and incorrect thickness.
 The company can use advertisement as a tool to make aware of their product to the
public.
 The company can adapt suitable measures to reduce price fluctuation, which is
considered to the major problem in this market.
 60

CONCLUSION

This study on market potential of float glasses in Chennai region infers the
opportunity for HNGIL to enter into the Float glass market in the year 2009. It gives clear
information to company regarding the existing market players and the consumers buying
behavior of float glasses. With the available data the company can take necessary steps to
position its brand in the target market.
 61

CHAPTER – VIII

LIMITATIONS

 The study is made on small population of sample size 60.

 The time duration of the study is less than the expected.
 The few respondents do not reveal their true sales volume, purchase price and selling
price of the glasses.
 Existing market players after sales services is unknown.
 62

SCOPE FOR THE FURTHER STUDY

 The project throws light on the opportunities for any Organization who tends to enter
into the Float Glasses market.
 This study can be basic for market potential analysis.
 This study is done only in Chennai region that can be extended to various other
regions, States and Nations.
 This project will be helpful for the students who do project in the related area.
 63

ANNEXURE-I

QUESTIONNAIRES
DEALER’S NAME:…………………………………..
ADDRESS:…………………………………………….
…………………………………………………………
…………………………………………………………
Contact Ph:………………………..

Tick the appropriate one.

1. Which area / part do you cover in the Chennai region?

a) North b) South c) West d) East e) All the Above

2. What are the different brands of Glass that are available at your showroom?
 Saint Gobain
 Asahi [Asahi India Glass Ltd.]
 Triveni
 Modi Guard
 Others
 Imported glass, (a) Country Name…………………(b) Brand Name……….
 All the above

3. Through which media you got most awareness about?

In no Newspaper All
Manufactures/ No
Advertisement Friends and the
Dealers response
Brands magazines media
Saint Gobain
Asahi
Modi Guard
 64

Triveni
Imported
4. Which is / are the brand of Float Glasses you prefer to sell? Why?
a) Saint Gobain
b) Asahi
c) Modi Guard
d) Triveni
e) Others specify, ………………….
f) All the above

5. What is your last year sales volume in nos?

a) 100-500 b) 501-1000 c) 1001-1500 d) 1501-2000

6. Which brand of Glass sells maximum & if possible what is the % of sales for last year?

Brand name Rank Sales%

Saint Gobain ------ ------

Asahi ------ ------
Modi Guard ------ ------
Triveni ------ ------

7. Who are your major Customers?

a) Commercial enterprises (i.e.) OEM units, Industries and Distributors
b) Builders and Architect
c) Government agencies
d) Institutions
d) Home users
e) Banks and Insurance companies
g) Others ………………….
h) All the above
 65

8. What is the thickness, which most of the customers prefer? Tick the appropriate one.

In mm
2-12 13-15 19 All the above
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported

9. What colour, do most of the customers prefer?

a) Clear b) bronze c) grey d) blue e) green f) All the above
10. Please rank the following attributes of Float Glass, on the basis of importance, which the
customer’s prefer to buy.
(1 is most aware, 5 is least aware)

Attribute Rank
a) Brand name -------
b) Rate -------
c) Thickness -------
d) Colour -------
e) Any other -------

11. Who is / are your immediate suppliers?

a) Manufacturer
b) C & F
c) Whole Sale dealer
d) Retailer
 66

12. Through what way(s) your suppliers motivate you?

Factors
Promotional
Offers Gifts Others All the None
Novelties
Brands above
Saint Gobain
Asahi
Modi Guard
Triveni
Imported

13. What kind of services do suppliers provide?

In nos Immediate
Transportations order Scratch All the No service
Brands fulfillment Warrant above
Saint Gobain
Asahi
Modi Guard
Triveni
Imported

14. How is the service provided?

In nos Very
Good Average Poor
Brands Good
Saint Gobain
Asahi
Modiguard
Triveni
Imported

15. Do your suppliers provide any discount facilities to you?

Factor
Yes No
Brands
 67

Saint Gobain
Asahi
Modi Guard
Triveni
Imported

16. How do you feel about the price fixed by your suppliers?

Factors
Very
High Moderate Low No response
High
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported

17. Are you satisfied with the present credit due date provided by them?

In nos
Yes No
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported

18. Do you receive complaints from Customer regarding the Glass you supply?

Factors
Yes No Sometimes
Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported

If yes,
i) Which brand(s) of Glass receives more complaints?
 68

a. Saint-Gobain
b. Asahi
c. Triveni
d. Modiguard
e. Others
ii) How many complaints do you receive monthly? Tick the appropriate one in all the Brands.

In nos More than

Rare 1- 5 5 -10
Brands 10
Saint Gobain
Asahi
Modi Guard
Triveni
Imported

iii) What type(s) of complaints do you receive from customers?

a) ---------------
b) ---------------

19. Does your supplier immediately take corrective actions regarding the quality problem and
complaints?
Factors
Yes Rare
Brands No
Saint Gobain
Asahi
Modiguard
Triveni
Imported

20. How do you feel about the Communication system between you and your suppliers
regarding the marketing and complaints?
Facto
High Not Very Not at all
rs Effective
Effective Effective effective
Brands
Saint
Gobain
 69

Asahi
Modiguard
Triveni
Imported

21. Do you give information on product features, price, customer expectation, and marketing
demand to your supplier [at right time]?
Factors No
Yes
Brands No response
Saint
Gobain
Asahi
Modiguard
Triveni
Imported
22. Purchase Price of the Brands

In mm 13-
0-1.9 2-2.9 3-3.9 4-4.9 5 6 8 10 12 19 Others
Brands 15
Saint
Gobain
Asahi
Modi Guard
Triveni
Imported

23. Profit margin of customers

Profit margin in % 0-5 % 5-10% 10-15 % 15-20%

Brands
Saint Gobain
Asahi
Modi Guard
Triveni
Imported
 70

23. If any suggestions please feel free to pen it below.

-----------------------------------------------------------------

ANNEXURE – II

BIBILIOGRAPHY

BOOKS:

1. Kothari, C.R., Research Methodology-Methods & Techniques, New Delhi, New Age
International (P) Ltd., Second Edition, 2004.
2. Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons Publishers, Thirty
Fourth Editions, 2005.
3. Philip Kotler, Kevin Lane Keller, Abraham Koshy, Marketing Management, New
Delhi, Twelfth Edition, 2006.

WEBSITES:

1. www.hngil.com
 71

2. www.msn.com/market potential
3. www.wikipedia.com/distribution channel
4. www.tutorial4u.com/consumer behavior