Marketing – Product

Launch
“Corona Tiles”
Brings color to life

Submitted By:
Abhishek Joy Philips - 301
Anjali Isabella - 334
Janardhan Chintada - 312
Rachana. R. - 344
Rikesh Daliya - 325
Shweta Sinha - 346
Subhashini.S.-348

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Table of Contents

Sr.No. Particulars Page No.

01 About the Product 03
02 Features of the Product 04
03 Accreditations for the Company 05
04 How the Product Works 05
05 Indian Ceramic Industry 08
06 Industry Statistics 09
07 Product Life Cycle 10
08 Market Research 12
09 Competition Analysis 16
10 Nicher’s Strategies 18
11 Porter’s Value Chain Model 19
12 Marketing Strategies 20
13 Marketing Mix 21
14 Segmentation, Targeting, Positioning 23
15 SWOT Analysis 25
16 Brand Name, Logo, Punch Line 25
17 Break Even Analysis 26
18 References 27

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About the Product:
The Product is under the Brand name of C- Tiles. The product is color changing or
“thermo chromic” tiles that changes color with respect to the temperature of the
environment. Thus these tiles in an air-conditioned room will have different colors
than in a well heated room while creating a continuous 'color transition'. These tiles
can also change color due to interaction, such as touching, rubbing or even by
breathing on it. They could be used in variety of locations to create different visual
atmospheres depending on the environment. This Product already exists in the
markets of US, but is still under development in India. These color changing tiles are
made out of ceramic and incorporating latest Italian Technology.
The different types of tiles which are available are:

 Wall Tiles
 Floor Tiles
 Vitrified Tiles
 Roof Tiles

The sample of the above mentioned tiles (Source: www.apartmenttheraphy.com)

The product is used for different purposes. They are mainly categorized as follows:
 Kitchen
 Bathroom

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  Office
 Bedroom
 Party Hall
 Roofing, etc

C-Tiles enables a whole new dimension in design with glass and tile elements in
palette-coordinating and ever-changing colorations. virtually any colors may be
formulated to achieve a wide range of visual effects. Desired "activation"
temperatures may be specified, in design ranges from 32°F to 120°F. Results are
waterproof in both opaque and translucent configurations. Color is reactive to all
temperature influences including water, steam, air, radiant and touch. For indoor and
outdoor applications direct exposure to ultraviolet light may be facilitated with
approved UV filtering product. Size, thickness, shape and all required fabrications
may be specified.

Features of the Product:

The various features of this product are mentioned below:
1. These tiles can change colour according to the changes in temperature of the
external environment.
2. The Product is designed and customized according to the needs of the
Customer.
3. C tiles are Hard & durable.
4. Extremely resistant to stains & dirt.
5. Tiles are easy to install & maintain.
6. C tiles can be used to decorate the interiors of residential and commercial
projects.
7. They can endure heavy foot traffic observed by the kitchens and bathrooms.
8. The beauty and texture of these tiles are beyond expectations and they come in
mesmerizing colours and designs that presents a wonderful look to any decor.
9. C Tile’s come with twin advantages of being decorative and useful, making
the customer choice of tiles both stylish and a smart one indeed. Being extremely
versatile, these tiles create a wide range of options for installations and they
provide the best solution for homeowners.

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 10. C tiles - A product with incredible durability, may be the best option
for people who are keen in installing them for refreshed and unique surroundings
for their home.

Accreditations for the company:

• ISO 9001:2000

• ISO 14001

• OHSAS:18001

• SA:8000

The company is conscious of its social responsibilities and committed to improving

the quality of life. It has adopted a formal environment policy. To fulfill this company
has undertaken extensive product reformulation, process modification, equipment
redesign and re-cycling and re-use of materials. For this it was bestowed the ISO
14001 certification. The company was awarded the prestigious OHSAS 18001 for
fulfilling international standards in occupational health and safest management system
specifications.

How the product works?

All products are available in a variety of temperature ranges, allowing customization
to your specific applications. The maximum temperature range for our “Liquid” line
is -30°C (-22°F) to 120°C (248°F). Color change will begin at selected activation
temperature, and continue through three phases within a 6-10° rise in temperature.
Once past the peak in temperature, the base color will then returns and remain
unvarying until the temperature drops.

This product is unique due to its ability to change color and or image through any
kind of change in temperature. Examples are human touch, a change in ambient

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temperature, warm/cold water; anywhere a heat or cold source is present. In addition,
it can be designed in any size, color/colors, and multiple activation temperatures. The
base color can also be color matched to virtually any color imaginable.

Fig 1: The basic layout of the Tile

The tiles are similar to like other tiles but with an inbuilt mechanism. The tile will be
of 0.85 inches in width & 25x25 cms. It is divided into two layers. The basic layout of
a tile is in transparent colour (which is common to every tile).

Fig 2: The layer covered with thermo sensitive material .

The first layer will have black body heat sensitive outer layer i.e. along the edges of
the Tile ,which will be set to the room temperature of 250 C(fixed value) & along it

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a colour pigment is painted (i.e. to the edges ) so that with the minimum heat the
colour will reflect on the transparent tile & thus the tile will look as per that colour .

The 2nd layer will have the heat sensitive layer along the edges so if any change in
temperature i.e. any (+/-) 5 0 C will act as detector & then the colour pigment along
the layer i.e. the outer edge will reflect on the transparent tile & then the tile will look
as per the colour. (The overall tile is covered with transparent colour i.e. protected
with synthetic cover)

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Indian Ceramic Industry

India’s ceramic tile industry emerged in the 1950s. Tiles form the most significant
part of the Indian ceramics industry and consist of floor tiles (46 per cent), vitrified
and porcelain tiles (12 per cent) and wall tiles (42 per cent). The floor tiles segment is
growing faster as compared to wall tiles. Vitrifed and porcelain tiles are recent
entrants into the ceramic tile industry and have increased the size of the market
considerably. It is expected that this segment will capture the bulk of the market
gradually, replacing the conventional floor and wall tiles segment. These tiles are light
and have the added advantage of being offered in designer looks as compared to
mosaic tiles, which are heavier and more expensive to transport. Both organised and
unorganised sectors play a key role in the manufacturing of ceramic tiles in India. The
per capita consumption of ceramic tiles in India is very less as compared to the other
countries in the world.

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Some of the major players of Indian ceramics industry are

 Asian Granito (India) Ltd.

 Euro Ceramics Pvt. Ltd.
 H. & R. Johnson (India) Ltd.
 Kajaria Ceramics Ltd.
 Nitco Tiles Pvt.Ltd.
 Orient Ceramics And Industries Ltd.
 RAK Ceramics India Pvt. Ltd.
 SPL Ltd.

Industry Statistics:

1. World production: 6900 Million sq.mt.

2. India's Share: 340 Million sq.mt..
3. World ranking (in production): 5
4. Per capita consumption: 0.30 sq.mt.
5. Global Industry Growth Rate: 6%
6. Growth Rate (India Domestic Market): 15%
7. Organized industry turnover (India): Rs 3000 crores
Glazed Wall Tile share: 40%
Glazed Floor Tile share: 46%
Unglazed Vitrified Tile share: 8%
Glazed Porcelain Tile Share: 6%
Unorganised Industry Turnover Rs 3500 crores
Glazed Wall Tile share: 57%
Glazed Floor Tile share: 35%
Unglazed Vitrified Tile share: 6%
Glazed Porcelain Tile Share : 2%
8. Investments in last 5 years: Rs 2000 crores
9. Organized sector:
Share of Production: 56%
No. of units: 16

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Revenue (excise duty): Rs 300 crores
10. Unorganized sector:
Share of Production: 44%
evenue (excise duty): Rs 350 crores per annum or less
11. Job Potential: 50,000 direct
500,000 indirect

Product Life Cycle:

We expect the C-Tiles to progress through a sequence of stages from introduction to

growth, maturity, and decline. This sequence is known as the product life cycle and is
associated with changes in the marketing situation, thus impacting the marketing
strategy and the marketing mix.

The product revenue and profits can be plotted as a function of the life-cycle stages as
shown in the graph below:

Product Life cycle:

INTRODUCTION STAGE

In the introduction stage, the firm seeks to build product awareness and develop a
market for the C-tiles. The impact on the marketing mix is as follows:

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 • Product branding and quality level is established, and intellectual property
protection such as patents and trademarks are obtained.
• Pricing may be low penetration pricing to build market share rapidly, or high
skim pricing to recover development costs.
• Distribution is selective until consumers show acceptance of the product.
• Promotion is aimed at innovators and early adopters. Marketing
communications seeks to build product awareness and to educate potential
consumers about the product.

GROWTH STAGE

In the growth stage, the firm seeks to build brand preference and increase market
share.

• Product quality is maintained and additional features and support services may
be added.
• Pricing is maintained as the firm enjoys increasing demand with little
competition.
• Distribution channels are added as demand increases and customers accept the
product.
• Promotion is aimed at a broader audience.

MATURITY STAGE

At maturity, the strong growth in sales diminishes. Competition may appear with
similar products like the ceramic tiles, Vitrified tiles, Mosaic tiles. The primary
objective at this point is to defend market share while maximizing profit.

• Product features may be enhanced to differentiate the product from that of

competitors.
• Pricing may be lower because of the new competition.
• Distribution becomes more intensive and incentives may be offered to
encourage preference over competing products.
• Promotion emphasizes product differentiation.

DECLINE STAGE

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As sales decline, the firm has several options:

• Maintain the product, possibly rejuvenating it by adding new features and

finding new uses.
• Harvest the product - reduce costs and continue to offer it, possibly to a loyal
niche segment.
• Discontinue the product, liquidating remaining inventory or selling it to
another firm that is willing to continue the product.

The marketing mix decisions in the decline phase will depend on the selected strategy.
For example, the product may be changed if it is being rejuvenated, or left unchanged
if it is being harvested or liquidated. The price may be maintained if the product is
harvested, or reduced drastically if liquidated.

In reality C-tiles may not follow such a prescriptive cycle. The length of each stage
varies enormously. The decisions of marketers can change the stage, for example
from maturity to decline by price-cutting. It is not easy to tell which stage the product
is in.

Market Research:
Objective:
· To determine the customer awareness level, particularly for new users of tiles.
· In depth study on the dealer network of various tiles manufacturers.
Type of Research:
Exploratory and descriptive experimental research

Managers need information in order to introduce products and services that create
value in the mind of the customer. But the perception of value is a subjective one, and
what customers value this year may be quite different from what they value next year.
As such, the attributes that create value cannot simply be deduced from common
knowledge. Rather, data must be collected and analyzed. The goal of marketing
research is to provide the facts and direction that managers need to make their more
important marketing decisions.To maximize the benefit of marketing research, those
who use it need to understand the research process and its limitations.

Marketing Research Approach:

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Developing approach consists of assessing market research skills, establishing a
budget, understanding environment and its influencing factors, developing an analysis
model, and formulating hypotheses.

Problem Definition:

Undergoing a marketing research to launch the product c-tiles and to assess whether
the market would accept the product or not.

Research Design:

Cross Sectional studies are used under Descriptive Research. Cross-sectional studies
sample the population to make measurements at a specific point in time.

Research Instrument and Data type:

Primary Data is collected by Questionnaire. Secondary Data is collected from the

internet.

Questionnaire Design:

The questionnaire is an important tool for gathering primary data. Poorly constructed
questions can result in large errors and invalidate the research data, so significant
effort is put into the questionnaire design. The questionnaire is tested thoroughly prior
to conducting the survey.

Sampling Plan:

In general, the sample size decision must be made on a case-by-case basis,

considering the variety of goals to be achieved by a particular study and taking into
account numerous other aspects of the research design. The size of a sample depends
upon the basic characteristics of the population. If there is complete homogeneity, a
sample size of 1 would be sufficient, while a larger sample is obviously required
where the required characteristics display wide heterogeneity.

One of the ways of dealing with heterogeneity is to break the population into sub-
groups or strata, which display homogeneity among the sample units. This is known
as stratified (random) sampling, which is statistically more efficient than simple
random sampling. We need sampling from a larger population, as in, a city, where we
require a complete list of all the households in the city from which we randomly
select a given sample, subject to certain characteristics such as age, income etc.,
which might be set as "quotas". It is also necessary to ensure that the smallest sub-
group or stratum should contain "sufficient" sampling units so that accurate and
reliable estimates can be found of the population stratum.

Questionnaire
1. What kind of flooring and roofing products you market?
a) Vitrified tiles b)Mosaic tiles c) wooden flooring d) roofing tiles

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2. What is the price range in which you provide products
a) 30-70 b) 65-210 c) 250-1400
3. Who are your prominent customers?
a) Architects b) Interior designers c) Building contractors
4. Have you heard of such kind of tiles?
a) yes b) No
5.Are you ready to sell such product?
a) Yes b) No
6. How much do you think a customer be willing to pay for C-tile?
a)100-200 b) 200-350 c)350-500
7. Has any customer asked for such kind of tiles?
a) yes b) no
8. Do you think it will work in India?
a) Yes b) No If no, give reason?----------------------------
9) Rank the features of a tile according to the importance
i) Robustness
ii) color
iii) styles or design
iv) stain resistance

The graphs are plotted based on the information gathered from the
Questionnaire:

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 Kind of tiles
10%

33.33%

Vitrified tiles
Mosaic
Cermaic
Wooden roofing
55% 10%

The graph shows the % of the prominent customers:

prominent customers

Builders &
contractors

Interior
designers prominent customers

Architects

0% 50%

Acceptance of the product (or)

Demand for the product

100% 90%
50% Acceptance of Acceptance of the
0% 5% the product product (or) Demand for
YES (or) Demand the product
NO

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.Contact Method:
Contact methods can be established by developing a Questionnaire. The
corresponding advantages and limitations are as follows.
Advantages
1-Relatively inexpensive
2-No interviewer bias
3- Consistent questions (for all respondents)
4- Large number of respondents can be included
5- Anonymity
6-Respondents can choose the most convenient time to answer
Disadvantages
1- Low response rates (relative to other survey types)
2- Impersonal nature

Competition Analysis:
Porter’s Five Force Competition Model

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  Threat of new entrants:
The Tiles industry in India is in growth stage and this industry has a growing potential
in future which makes it an attractive industry to start business. There are already few
good quality Tiles manufacturers in the country and some unorganized local
manufacturers. The demand for tiles is increasing in the country. Also Government
has not very restricted policies for Tiles industry. So the entry barriers are low in Tiles
industry. So there is a threat of new entrants in the industry for existing firms.

 Threat of Bargaining power of Suppliers:

The raw material which is used for tiles manufacturing is available from the province
of Rajasthan and some areas of Haryana. There are lots of suppliers in the industry. In
the case of C Tiles we are not dependant on single suppliers or few suppliers. we have
a lot of suppliers for purchasing raw material. So the supplier switching cost for C
Tiles is low which reduces the supplier’s bargaining power. C Tiles has a lot of
options for purchasing raw material.

 Threat of Bargaining power of Customers:

In Indian Tiles industry there are few tile manufacturers and some unorganized local
manufacturers. Some foreign companies from China, Italy they exports tiles in Indian
market. So customers have a lot of options for choosing. They can purchase Chinese
tiles as they are cheaper and easily available. So in this case customer’s bargaining
power increases over the manufacturers. They can force the manufacturers to reduce
the prices as they can easily switch from one manufacturer to another manufacturer
when deciding to purchase the tiles. Customer’s switching cost is low and their
bargaining power increases.

 Threat of Rivals:
In Indian Tiles industry there are few manufacturers of tiles. So degree of Rivalry is
not high. Indian Tiles industry is in growing stage. The reason of which is fast market
growth. There is huge demand for tiles in the market. Although the customer’s
switching cost is low but the fast market growth and increased demand allows the

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firm to match their expected sales and they can catch new customers. So we can say
that fast growth in the market decrease the level of degree the rivalry.

 Threats of substitutes:
If the prices of raw material increases or the government increases tax rates so it
directly effect the prices of tiles so in this case threat of substitute like chips and
marble will increase due to their relatively low price difference as prices of tiles will
increase people automatically will move towards marble tiles or chips floors and
threats of substitute will increase.

Nicher’s Strategies are followed.

The company follows niche strategy. “A firm should `stick to its niching’ but not
necessarily to its niche. That is why multiple niching is preferable to single niching.
By developing strength in two or more niches the company increases its chances for
survival.” -Philip Kotler

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  We can avoid larger firms by targeting smaller markets or niches that are of
little or no interest to the larger firms.
 We must create niches, expand the niches and protect them.
 Market niche may be attacked by larger firms once they notice the niches are
successful.

Porter’s Value Chain Model:

Primary activities:

Inbound Logistics: the receiving and warehousing of raw materials and their
distribution to manufacturing as they are required. The raw materials for corona tiles
are supplied by the concerned suppliers.

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Operations: the processes of transforming inputs (raw materials) into finished
products (corona tiles). These tiles are designed with durability and safety in mind.
Throughout the entire manufacturing process every measure is taken to ensure that
these tiles are built with attention and care and consistent quality of the product is
maintained throughout.

Outbound Logistics: Includes the warehousing and distribution of finished goods i.e.
the manufactured tiles.

Marketing & Sales: It’s the identification of customer needs and the effective
generation of sales and promotion.

Marketing Strategies

 Preparing Professional Brochures

A very attractive professional brochure is prepared to target the interior designers and
the building contractors. The major decision makers of our product are these group of
people. The brochure will contain the technical details of the product. Convincing
these groups of people will push our product very easily into the market.

 Having a client list well in advance by participation in Exhibition

we plan to participate in the building fare exhibitions in various cities and towns. This
is where we can exhibit our product and find the range of customers without huge cost
involved into it. This will also collect the information of the list of clients who are
constructing the house in that period.

 Offering Early Bird Offer to Few Clients.

To attract the customers in the various cities after the launch of the product, we intend
to give the early bird offer to our clients. These will also create the word of mouth in
the society which will be encashed from the customers, who come later.

 Providing Customization to the Customers

As said earlier we provide the customization to the customers. We are open for the
customer voice and promise to provide them with the given design and size. This of
course will be done at a premium price than that of the product.

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Marketing Mix the 4 P’s:

 Product:

Corona Tiles is a unique and stylish medium for coverage of floors and walls in the
interior as well as exteriors.

(1) Residential:
It is used in gardens, home lobbies, lounges, drawing and dining, living, bed and bath
rooms.

(2) Commercial:
It is used in offices, showrooms, shops, plazas, shopping malls, hotels, restaurants,
airports, hospitals, sport complexes and swimming pools.

Quality of product:

“C Tiles” are completely homogenized which means that the color the texture and the
veins run throughout the thickness of the body just like the natural stone. Unlike what
is available in the unorganized market in the name of ceramic tiles, the colors, design
of these colors changing C Tiles are not superficial. So from the years of research and
using latest Italian technology Master Granite Tile is a gift for those people for those
who want to upgrade their life style to make their life more beautiful.

Some unique features of C Tiles are:

• Stain Resistance:
It is easy to clean and offers complete chemical resistance due to extremely compact
homogenous superior surface.

• Scratch Resistance:
Its solid and compact body protects tile from scratches.

• 0% Absorption:
No pores throughout the tile thickness, extremely compact. This is even true for areas
that have been subject to abrasion.

• Max Range of Colour and Sizes:

It offers a big list of different sizes ( 3 sizes) and colors (mixtures and glazes of
colors).

• Maximum Strength:
It is pressed by hydraulic pressure with force into compact uniform tile. Dried and
fired at a temperature of 1250C bringing them into one solid and compact body.

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 • Fine Edges:
Cutting of these hard tiles is done by special diamond blades. That makes laying of
tiles very easy and adds beauty to architecture.

 Price:

“C Tiles” are set at relatively high prices for their products as compare to other
players in the tile industry. Prices are set a bit high according to the good quality of
the product. “C Tiles” has a complete range of product line and the prices vary
between different product types.

 Place:

“C Tiles” has a big distribution network in all over the country. They have divided the
local market into different zones. Each zone has its own head office and is responsible
for marketing activities in that zone. “C Tiles” distribute the product through its
dealers in different cities. These dealers work on agreement basis. Each dealer is
given target sales. After achieving a target sales discounts are offered to these dealers.
These dealers only sell “C Tiles” products. However these dealers also sell the
product to the small local retailers which sell multi brands under one roof. These
retailers may have some cheaper brand as well as some imported brands. Now “C
Tiles” has started to establish its own display centers in major cities. These display
centers have not products to sell but just work as to show and provides the
information about the product.

 Promotion:

“C Tiles” use different promotion tools to promote their product. Like Advertising,
Exhibitions and Seminars.

Advertisement:
They use advertisement as a promotion tool. This advertising is done through TV, bill
boards and they also sponsor some sporting activities.

Exhibitions:
“C Tiles” also takes participation in different industrial exhibitions all over the
country. Their representatives give a presentation there and provide the information
about the brand.

Seminars:
“C Tiles” also held some seminars for providing the information. In these seminars
business customers are invited. Like Builders and contractors. In these seminars the
information about the brand is provided to the customers.

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Segmentation Targeting Positioning:

Segmentation:
C Tiles has segmented the target market on the basis of the need of customers. We have
divided the market into low to high end market. But we are mostly focus on high end
market segment. We produce different type of tiles with different price ranges. Especially
for high end market segment they produce high quality products with high prices and for
middle end market segment they produce products with relatively low prices and low
quality as compared to the high end market. So C Tiles produce different quality products
with different prices for different market segments.
Target Market:

Now Tiles have become an essential part for the decoration of our residential and
commercial buildings. So our target market is that people who can afford and who want
to make their lives worth living by using these tiles and who focus on beauty as well as
luxury and style and design. So company main target market is upper middle class and
elite class because lower middle class and poor class customers can not buy tiles.

Intended Positioning:

The positioning which Master Tiles want to produce in the mind of customers is that they
will provide them high quality and stylish products to improve their life style and make
their life easy and beautiful.

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Distribution Network

The distribution channel goes as follows. The Indian market is divided into 4 regions.
The distributors are present at these 4 locations and they transfer the product from the
manufacturer to the dealers. Then finally the dealers take it to the end users.

Manufacturer- region distributor- local dealers- end users.

This distribution strategy is followed all over the country by all the players across
India. This Strategy will help us give a complete set of 600 dealers over a period of
five years.
As of now the launch is primarily carried out in metros and two tier cities for making
it available to the customers.

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SWOT Analysis:
Strengths Opportunities

- Competitive pricing - Less number of competitors.

- Excellent Distribution Network - Emerging Market
- Variety of Designs & Sizes. - Large untapped market.
- Relationship with Intermediaries. - Use of new technology

Weakness Threats

- Limited Market Share - Indirect Competitors

- Limited knowledge of customers - New Entrants
- Low per capita consumption

Brand Name, Logo and Punch line:

Logo:

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Proposed distribution:
Our distribution will be through our established exclusive outlets, franchised outlets
across the country. In later stage we will also sell the product through the electronic
store, super markets and hyper markets.

Proposed promotion:
The free demo will be there in all our outlets. We will use our brand ambassador for
the promotion and launch of the product. The promotional mix will contain the free
demo, TV commercials, radio airing and poster campaign. Other details of the
promotion will be finalized after getting the response from the market research.

Break Even Analysis

The Break Even Analysis of the product is given as follows:

The Payback period is achieved in 3rd year if the production level is kept at same level
for 2012 and 2013.

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References:

www.movingcolor.com

www.google.com

www.tradeindia.com

www.ultraglas.com

www.ustyleit.com

www.wikipedia.org

www.icctas.com

www.inventables.com

www.designboom.com

www.asiangranitoindia.com

www.floorfacts.com

www.hindubusinessline.com

www.ihsglobalinsight.com

www.companiesandmarkets.com

Company websites of Kajaria, N.R.johnson, Orient, Somany, Etc.

Indian Infrastructure Report Q1 2010 & 2009

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