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A Project Report On TOOL CARTE (Tools on Wheels)

Providers among the students of PSG IM

Marketing Management II

Submitted By CV Adheth (10MB01)

S Boopathy (10MB06) J Gokulnath (10MB11) Oscar Basil (10MB24) Saravana Kumar J (10MB32) N Prakash (10MB27)

PSG Institute of Management Coimbatore

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ABSTRACT This project aims to provide a strategic marketing platform for launch of a new product, the Tool Carte towards understanding the existing service providers in the market, and to have a First Hand experience among the students of PSG IM. In particular, it examines the ways in which the factors that influence the placement of a new product to switch over from existing service to another. Factors affecting while launch of a new product is the Reliability and the marketing strategy. Thus it is always a bigger challenge to launch a new product.

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TABLE OF CONTENT
Introduction . 5 Market Analysis . Market Survey and Interpretation Competitor Analysis 6 8 9

SWOT Analysis .. 11 Branding & BEP .. 12 Market Mix 13 Product Price Place Promotion Conclusion .. 14

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A few questions to review

Are you wasting time searching for your tools and spares, which affects your production..??

Do you find your employees wasting time, doing nothing but roaming around the workspace??

Do you purchase repeatedly the same products required for your production??

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INTRODUCTION
Each one of us spends a lot of time and money, searching for things.

Tool carte is a product to store tools of any kind. It is a MS Pipe framed with sheet metal body powder coated with partitions according to the industry.

Users The production units/Manufacturing sectors/Garages are the business units in which TOOLS play a major role. Procurement of these tools is time consuming and sometime difficult to procure which affects the production line thereby causing huge losses in terms of time, finance, distrust.

Here is a product which gives a solution for the above problems. The product is TOOL CARTE.

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MARKET ANALYSIS
City Coimbatore has gained its reputation for being in the Top 20 cities from marketing of New Innovative products market. Coimbatore being The Manchester of South India an industrial belt pioneering in

automobile , textile machinery, wet grinders ,pumps, and a hub of engineering education.

For example, Automobile industry uses spanners and other tools of various sizes. Textile machinery sectors use tools like screws and bolts of various sizes. The wet grinder sector uses fabrication tools. The pumps sector use CNC tools and other tools.

Generally, any sector which manufactures any mechanical product will use tools. Any unit which uses tools can use Tool Carte.

Statistical report of the list of industries: 5200 Companies registered with CODISSIA 500 Companies registered with SIEMA 300 Companies registered with SITARC

Subcontractors: There are innumerable numbers of subcontractors who work for a big company. Taking a count of all of them is not possible.

Companies which a not a member of the above group: in-numerous

The scope for TOOL CARTE goes beyond imagination since this product can be used in all the above sectors. The product in used in different sectors in different ways.

Hence there is an immense potential for this tool carte in Coimbatore city, makes sense in launching this product. Alternatives: Ordinary cupboards:

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There are many local manufacturers of ordinary sheet metal cupboards. These cupboards do not exactly solve the purpose, but still it can be used as a tool to store the tools.

Tool Bags: These are also one of the alternatives. But there are no local players in the market. International players provide these alternatives but the major issue is that big tools and many tools that are used in the factory cannot be stored in the bag

Wooden cupboards: This is a main alternative which should be considered. This is because wood can be altered in any way and can be customized. But one issue which should be considered is the life. The life of the wooden cupboard is very much less than the steel cupboard.

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MARKET SUREVY - DATA ANALYSIS AND INTERPRETATION

When a survey was conducted to know if the operations head of the manufacturing sectors would invest in this tool carte, the following report was obtained. The survey was conducted by face to face Interview.

Yes gives a positive response and is a motivating factor to drive further.. May be is a response which is partly on the yes side. The company has many factors like the financial factors because of which the purchase of tool carte becomes a thinking issue.

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COMPETITOR ANALYSIS
KABBAGE Kabbage is the local player and the present market leader. He is a wholesale tool supplier to majority of the company. Customers come to his place to purchase the tools which they need. So he has an upper hand on getting the customers. He can campaign in own place. Marketing his trolley becomes easy for this reason alone. He was playing a monopoly game for so many years and so his reach in the market is vast. No customization is provided by this company.

STANLEY Stanley is an American company which has its base office in Bangalore. These guys are the world leaders in storage systems. They are too costly for small industries to afford. They keep the position of leaders through innovation and style merged with quality. No customization is provided by this company.

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Other players: There are few players who do not have a manufacturing unit in Coimbatore. They have distributors but people do not prefer them because they are not worth the price for the quality they provide. They also do not provide customization. Kabbage 6 6 8 7 5 32/50 Stanley 9 5 4 9 8 35/50 Others 5 4 4 5 4 22/50 Out of 10 (1-low, 10-high) From the above analysis, the companies which we should worry about are.

Innovation Strategy Market Hold Quality Pricing Total

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SWOT ANALYSIS FOR TOOLS CARTE

Strength: Customization of products Easy mobility Less competition Affordable price Availability No maintenance One life time investment Security Easy installation Erosion resistant Useful for audits Reduce man power

Weakness: No repeated purchase Costlier than substitutes Labour problems Machinery affordability Power problems Threat from new entrants

Opportunities: Global market Can diversify to material handling Can extend the market to other industries like hospitals. Barriers for new entrants Improvise using new techniques Increase industrialization

Threats: Being a new entrant Resistance to change Productivity Competitors Innovative new entrants Recession Robotics

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BRANDING STRATEGY:
The brand TOOL CARTE -Tools on wheels The manufacturers of tool Carte is Gayathri Associates , which strives in manufacturing quality furniture for the past 18 years. Now the company has diversified into manufacturing this tools trolley for the industry sector. The company already has a very good name in the furniture field. Brand vision: The vision of TOOL CARTE is to become the leading tools trolley manufacturer or the market leader in the corresponding field. This should be achieved at least in the geographical area of Coimbatore where the potential is immense. Brand promise: Tool Carte promises the customer complete satisfaction by giving Industry centered products. TOOLS ON WHEELS is the brand logo which means the tools can be easily handled and easily transported from one place to another. Brand Delivery: o One way to fulfil the commitment as told earlier is the customization of the product. We provide customized goods to satisfy the customers. o Timely supply of goods o Trust among the customers o Never compromise in quality Brand Positioning There are already market leaders. So brand positioning plays a major role in positioning ourselves in the market. The pricing is an important factor. We cannot price ourselves in a very low cost. This is because there might be a problem in the years to come. We cannot price ourselves higher than the market leader. So our price should be in the intermediate level. Quality is also important factor to be considered. So the positioning of the brand should be GOOD WORTH THE MONEY

BREAK EVEN ANALYSIS

Machinery Investment: Rs.100000 Human Investment: Rs.50000 Inventory Investment: Rs.200000 Total Investment: Rs.350000 The break even happens when 36 tools trolleys are sold. This break even should be achieved within Five Months.

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MARKETING STRATERGY (Marketing Mix)

Product tool carte is a tangible good that has a mass requirement and is manufactured on a large scale with a specific volume of units. Tool Carte also requires specialized Packing because of sheet metal body and powder coating .To retain its competitiveness in the market, Tool Carte is manufactured in a fixed variant and also customized according to customer/industry requirement and this is one of the strategy followed to differentiate a product from its competitors. Price The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product. The cost of production of the Tool Carte is Rs. 6800/unit Company Overheads is Rs. 680/Distribution expenses is Rs. 250/Marketing Expenses is Rs. 300/Selling price: Rs.9750/- (Standard Tool Carte) And the price of the Standard tool carte is negotiable with quantity In order to provide customized tool carte, to meet the industrys requirements, the rates are negotiated. Promotion A promotional activity represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, personal selling and sales promotion. Advertising: The advertising for tool carte has to be specific as only the industrial or manufacturing sectors can use this product. So advertising in a public forum might bring in only very little enquiries whereas advertising in a magazine like the CODISSIA or the SITARC will give us a considerable amount of enquiries. Participating in Industrial expos like INTEC or IMTEX also is one kind of marketing. Exhibitions are the only place where the customers come to visit the market people. Proper utilization of this expose will generate good leads. Personal Selling: Tool Carte being an industrial oriented product, serving the manufacturing and automobile sector, we have planned for a door to door selling. This serves dual purposes of Promotion and Selling. The door to door selling will be done by 2 people. Sales promotion: The regular customer who gives leads, we provide additional discounts. Maintaining a regular customer relation also promotes the product.

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Place Since it is a start-up business, we are concentrating in the geographical area of Coimbatore and Tiruppur which are industrial hubs.

CONCLUSION Tools Carte, is an product of utmost importance, as it plays a vital role in the Manufacturing Sector where the production line is constant and any delay in any one department can cause delay in the products to be sold in the market, thereby chances of high revenue loss to the companies. By the usage of Tool Carte, the company can save time and the employees can also give their best results, as Tool Carte is all-in-one tools holder with lock n key feature for the security reasons. This is a real time product. The marketing of tools trolley by the above strategy with the price, promotion and branding will hopefully become successful.