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Veena Tripathi Submitted By: Jagrit Nahata Roll- A3906409105 Class Roll E-28
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ACKNOLEDGEMENT
I have deep sense of gratitude towards everyone who supported me, for I have completed my project. I owe a great thank to my faculty guide Ms. Veena Tripathi for giving me support to carry out this project. I would like to thank my industry guide Mr. Shushil Tripathi without whom the completion of this project would not be possible. I would also like to thank my friends who helped me a lot in gathering different information, collecting data and guiding me from time to time in this project. Thank you Jagrit Nahata
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STUDENT DECLARATION
I Jagrit Nahata a student of B.B.A. program at Amity University, hereby declare that I have under gone the summer training at Asahi India Glass Limited under the supervision of Mr. Sushil Tripathi and of Mr.Kanik Agarwal I also declare that the present project is based on the summer training and my project report has not been submitted to any other university or institute. Jagrit Nahata Enrollment no.- A3906409105
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PREFACE
This report presents the research, findings and recommendations resulting from the project, Marketing research of Tools at Sangeeta tools Pvt. Ltd. The objective of this project was to find the market positions of this company. The data provided at the company by the employee was extremely helpful and provided a lot of material for my report.
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TABLE OF CONTENT
Content Page No Introduction SWOT Analysis Spanners Competitiors Pricing Market Segmentation Five Forces Analysis Marketing Technique Promotion Conclusion Bibliography 7 12 14 18 21 27 32 36 38 43 45
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COMPANY INTRODUCTION
BACKGROUND:
Sangeeta Tools Pvt. Ltd is India's leading name in manufacturing Hand Tools since 1985 located at Ludhiana which is around 300 Kms., North West of National Capital New Delhi. The total covered area of the company is 60,000 square Feet out of total 98,000 Square Feet. Latest equipments combined with state of the art technology and above all excellent raw material has helped us to offer trustworthy quality and reasonable rates. Quality, integrity, ethics and commitment have been the mottos of our company all these years and have been our guiding philosophy as an organization. We have identified and chiseled our core strengths, to fulfill newer roles in the changing business environment. Our endeavors- Manpower Training and Research & Development are totally customer centric as we constantly strive to deliver excellence and efficiency to the best of their satisfaction. The company is awarded certificate ISO-9001: 2000 by TUV Rheinland (India) Pvt. Ltd.
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To be always a step ahead of the competition in delivering customer satisfaction. Providing our customers with quality products and efficient delivery. To create and sustain competitive edge over the competition in products and service through quality improvement. We will always strive to honor our social and environmental responsibilities to the fullest.
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CORE VALUES
We will display professionalism , excellence and continually improve every aspect of our work.
We respect individuals.
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Manual Hand Tools: Manual hand tools are the most basic form of equipment. They do not require the speed of powered hand tools or do not have access to power sources but are perfect for operations. These include hoes, screwdrivers, chisels, wedges, drift pins, hammers etc. Pneumatic Hand Tools: Pneumatic hand tools perform the operation task at the push of a lever. They are powered by compressed air. They include chippers, drills, hammers, sanders etc. Power Hand Tools: Tools which are hand held but are powered by electricity. These include chainsaws, high grade motors, electric drills, angle grinders, jigsaw cutters, tappers, fasteners etc.
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S.W.O.T ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies
Their distribution channel is very strong and they provide effective delivery to their customers.
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WEAKNESSES:
Not popular in rural areas Premium pricing
OPPORTUNITIES:
They have a fairly large market waiting to be explored. Global market opportunity
THREATS:
Large number of competitors, Deep Tools Pvt. Ltd. being the major one.
Change in government policy may affect the growth and expansion of the sector and the company. Arrival of new players may shift their policies
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SPANNERS:
Introduction
A wrench or spanner is a tool used to provide grip and mechanical advantage in applying torque to turn objectsusually rotary fasteners, such as nuts and boltsor keep them from turning. In British English, spanner is the standard term. The most common shapes are called open-ended spanner and ring spanner. The term wrench refers to a type of adjustable spanner. In American commerce, such a wrench may be called a spanner wrench to distinguish it from the British sense of spanner. Higher quality wrenches are typically made from chromium-vanadium alloy tool steels and are often drop-forged. They are frequently chrome-plated to resist corrosion and ease cleaning.
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Types of Spanners
Open Ended Spanner The open ended spanner has U-shaped jaws to grip two opposite sides of the nut or bolt. The jaws are inclined at an angle of 15 degree to the handle to support greater flexibility in movement where adequate space is not available for turning the nut. Ring or Box End Spanner The box end spanners are also usually double ended whose ends are in the shape of a ring with 6 or 12 tabs to grip hexagonal nuts or bolts. Eight points spanners are also available to turn square-shaped nuts. Combination Spanner In combination spanner one end is in ring shape while other end has U shape to provide the advantages of both open ended and ring spanner. Both ends are usually of same dimensions. Adjustable Spanner Also known as shifting spanner, it has adjustable jaw which can be fitted well around nuts or bolts of different sizes. These are usually single ended.
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Cold Stamped spanner is the spanner of the highest quality. The price of such a spanner is 40% higher than of the carbon steel spanner. Such sorts of spanners are only exported to countries like U.S.A and England.
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Higher quality wrenches are typically made from chromium-vanadium alloy tool steels and are often drop-forged. They are frequently chrome-plated to resist corrosion and ease cleaning. These spanner are generally Sold in countries like Germany, Russia, Italy, England and U.S.A.
Carbon steel Spanners are Medium or low quality wrenches which is the most demanded type of spanner in the world. Carbon steel spanners are cheap and very effective. A normal carbon steel spanner is 30% less costly than the Chrome Vanadium. Carbon steel spanners are generally exported to countries in Africa, In the Middle-East and in countries of South-East Asia.
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COMPETITORS
clients. A strict control through every stage of our manufacturing process, such as selection of raw material, design, forging, machining and finishing ensures the highest quality standards of our tools. Their qualified staff, their long experience and the capabilities of their management, designers and technical engineers are fully involved at each and every step of production to meet the increasingly demanding needs of our market. We are constantly developing new products which are designed with the most advanced technology to keep up pace with the latest market requirements.
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SAMSAN brand is being Promoted and Manufactured by M/s. Sidh Tools Limited.
Since 1967 Excellent quality, Economical price and Ethical business dealings earned SAMSAN instant acceptability. Holding these values close to heart SAMSAN built the trust brick by brick, In a very short span of time SAMSAN occupies a unique position in the industry & built enduring business bonds with a vast dealer network in India. Company is Awarded with QUALITY MANAGEMENT SYSTEM ISO 9001: 2008 by JAS -ANZ. Adoption of new technologies & faster communication, Wide choice, updated quality, affordable price, streamlined distribution network and an appealing message. For every SAMSAN product to be an excellent Value for Money (VFM) proposition, the company adopts a proactive role to determine level of satisfaction and understand the changing consumer aspirations.
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Chawla Forgings Started In The New Millennium Prospered Under Leadership Of Mr. Harman Chawla. Chawla Forgings Has Got The Reputation Of Being A Company Which Could Produce Intricate Forgings Of Exceptionally High Quality Of Both Finished And Polished Hand Tools. Our Reputation Is Build Upon High Quality And Reliable Support, Based On Advanced Manufacturing Concept, High Technology, Its Seasoned Designer Engineers And Their Dedicated Pursuit In Setting New Quality Standards.
PRICING
Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product. Due to differentiation in the types of spanners, pricing is generally different. Price is influenced by the type of distribution channel used, the type of promotions used, and the quality of the product. Price will usually need to be relatively high if manufacturing is expensive, distribution is exclusive, and the product is supported by extensive advertising and promotional campaigns. An efficient price is a price that is very close to the maximum that customers are prepared to pay. In economic terms, it is a price that shifts most of the consumer surplus to the producer. A good pricing strategy would be the one which could balance between the price floor and the price ceiling.
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Pricing Techniques
Cost-plus pricing is the simplest pricing method and it is the method used in this company. The firm calculates the cost of producing the product and adds on a percentage (profit) to that price to give the selling price. Consumers of these products are price sensitive and due to the stiff competition present they are only willing to buy products at a low price. Therefore low cost of production is very essential to these organizations. Cost plus pricing is a very effective method of getting a loyal base of customers and it provides an ethical advantage over the competitors. Heavy production comes in handy in this sort of pricing as seeks to maximize the number of units sold or the number of customers served in order to decrease longterm costs.
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Pricing of spanners
A Carbon steel Spanner with the size of 6mm-32mm is priced at 8-11 Rs. per piece. It varies due to the quality provided by the producer or the quality required by the consumer.
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With Sidh Tools and Chawala forgings focusing on heavy production of Carbon steel spanners their cost of production is lower than its competitors; therefore they can price their product at a fairly low price.
A Chromium Vanadium (of the same size) which is a good quality spanner is priced at 13-18 Rs. per piece. Again the variation might occur due to either producer or consumer.
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A Cold Stamped spanner (of the same size) which is the highest quality spanner is price at 20-26 Rs. per piece. This kind of spanner is only made in good companies and the market base is smaller than both Carbon steel & chromium Vanadium spanners.
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A company must be financially sound in order to get into this market as there is a requirement for heavy investments.
As the production of spanners is very large, all established companies enjoy a fairly low cost of production. New companies on the other hand tend to spend more on production therefore they cannot compete with the prices of the existing companies.
A company must have a technical advantage in order to gain superiority in the market.
Companies have a degree of authority over the market but that does not mean they could set prices according to them.
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Due to the very vast market and demand for different kinds of spanners, market segmentation has occurred. The smaller companies often focus only on producing The Carbon steel spanner. Due to their production of only one kind, they achieve low cost on production and higher profits.
MARKET SEGMENTATION
Market segmentation is a concept in marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts for the services. The people in a given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. These can be broadly viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups.
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Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products & services. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private. Although industrial market segmentation is quite different from consumer market segmentation, both have similar objectives. All of these methods of segmentation are merely proxies for true segments, which don't always fit into convenient demographic boundaries.
Deep Tools Sidh Tools Sangeeta tools Balwinder Tools chawla forging
Carbon steel Spanners are Medium quality wrenches which is the most demanded type of spanner in the world. Carbon steel spanners are cheap and very effective. A normal carbon steel spanner is 30% less costly than the Chrome Vanadium. Carbon steel spanners are generally exported to countries in Africa, In the Middle-East and in countries of South-East Asia. In order to gain a large part of the market the companies
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have to minimize the production of other spanners and have to focus producing only a single spanner which leads them to minimize costs and maximize profits.
Deep Tools Sidh Tools Sangeeta tools Balwinder Tools chawla forging
Higher quality wrenches are typically made from chromium-vanadium alloy tool steels and are often drop-forged. They are frequently chrome-plated to resist corrosion and ease cleaning.
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These spanner are generally Sold in countries like Germany, Russia, Italy, England and U.S.A. Due to this being a better quality spanner, the bigger players like Deep tools and Sangeeta tools have an advantage due to their technical superiority.
Deep Tools Sidh Tools Sangeeta tools Balwinder Tools chawla forging
A Cold Stamped spanner (of the same size) which is the highest quality spanner is price at 20-26 Rs. per piece. This kind of spanner is only made in good companies and the market base is smaller than both Carbon steel & chromium Vanadium
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spanners. The small producers like Balwinder Tools and Chawla Forging do not produce this item on a regular basis. Whereas bigger producer like Deep tools and Sangeeta Tools tend to thrive in such a Market.
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Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally, requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average.
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Existing Rivalry:
Competition in chrome vanadium and cold stamped by Deep Tools Pvt Ltd. Competition in chrome vanadium by Sidh Tools pvt Ltd.
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Competition only in carbon steel by Balvinder Tools Pvt ltd. Competition only in carbon steel by Chawla Forgings.
Sidh tools have recently started dealing in cold stamped which may cause a problem as uptil now only Deep tools were competing and with another entry the customers have more options to choose from.
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B K Steel Company United Steel rolling Mills Bharat Iron Trading Co.
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polishing, painting, and heating. Stationary power tools for metalworking are usually called machine tools. Here are some prower tool providers:
Recommendations
Increase in production would decrease the cost of production which would yield more profits.
Expand their network abroad as there is still a vast market ready to be tested.
Continuous innovation to expand. Although exports are the main priority to this company
RELATIONSHIP MARKETING
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Relationship marketing is a form of marketing in which emphasis is placed on building longer term relationships with customers rather than on individual transactions. It involves understanding the customers need As they go through their life cycles. It emphasizes providing a range of products and services to existing customers as the need them .It is a philosophy of doing business, a strategic orientation, that focuses on keeping and improving relationships with current customers rather than on acquiring new customers. It is the use of wide range of marketing, sales, communication, and customer care techniques and processes to identify your named individual customers, create a relationship between your company and these companies.
Satisfaction
Relationship marketing relies upon the communication and acquisition of consumer requirements solely from existing customers in a mutually beneficial exchange usually involving permission for contact by the customer through an "opt-in" system. With particular relevance to customer satisfaction the relative price and quality of goods and services produced or sold through a company alongside customer service generally determine the amount of sales relative to that of competing companies. Although groups targeted through relationship marketing may be large, accuracy of communication and overall relevancy to the customer remains higher than that of direct marketing, but has less potential for generating new leads than direct marketing and is limited to Viral marketing for the acquisition of further customers.
Retention
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A key principle of relationship marketing is the retention of customers through varying means and practices to ensure repeated trade from preexisting customers by satisfying requirements above those of competing companies through a mutually beneficial relationship. This technique is now used as a means of counterbalancing new customers and opportunities with current and existing customers as a means of maximizing profit and counteracting the "leaky bucket theory of business" in which new customers gained in older direct marketing oriented businesses were at the expense of or coincided with the loss of older customers. This process of "churning" is less economically viable than retaining all or the majority of customers using both direct and relationship management as lead generation via new customers requires more investment.
PROMOTION
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Promotion is one of the four elements of marketing mix (product, price, promotion, place). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision.
1. Above the line: Promotion in mass media (e.g. TV, radio, newspapers, internet, mobile phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to place the advertisement 2. Below the line: All other promotion, much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, testimonials, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows. 3. Through the line TTL is a neologism describing an existing process, In the TTL approach, a mix of Above the line and Below the line is used to integrate a marketer's efforts and optimize returns from these separate investments. This switch in the TTL approach has shifted its emphasis more towards BTL. The idea remains to optimize the return on marketing budget spent by focusing one's energy on winning smaller yet more crucial BTL battles than ATL wars with well-funded competition. Below the line communications use mediums that are more niche focused. The BTL communication, however, that gives the marketer the ability to tailor their messaging in a more personal manner to the audience. ATL promotions are also difficult to measure well, while BTL promotions are highly measurable, giving marketers valuable insights into their return-on-investment. These insights can then
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be used to inform the next BTL communication to the audience and tailor the messaging based on the feedback received. Below the line communication is a more effective method than the other two for this market. This market consists of companies who directly deal with their customers therefore BTL gives them a good platform to market their goods. Choosing BTL over ATL helps companies save a lot of money which is helpful.
TRADE SHOWS:
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Trade shows are designed to let entrepreneurs meet many potential customers face-toface in a brief period of time inexpensively. It is possible during the course of one trade show to personally meet most of your important clients and suppliers, making shows a good way to establish and reinforce relationships. Because business-tobusiness shows typically do not allow selling on the show floor, generating sales leads is the most common reason exhibitors participate. Norm Hughes, president of Norda Technologies, a software firm in Newton, New Jersey, uses the computer industry's major shows as his primary marketing vehicle for introducing new products, another popular reason for exhibiting.
Common reasons for exhibiting include: Generating sales leads Generating actual sales at the show Enhancing your image and visibility Reaching a specific audience Establishing a presence in the marketplace Improving the effectiveness and efficiency of your marketing efforts Personally meeting your customers, competitors and suppliers Prospecting for new customers Introducing new products and services Demonstrating your product in ways not possible using other marketing channels Recruiting distributors or dealers
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The Canton is a trade fair held in the spring and autumn seasons each year since the spring of 1957 in Canton (Guangzhou), China. The Fair is co-hosted by the Ministry of Commerce of China and People's Government of Guangdong Province, and organized by China Foreign Trade Centre. Its full name since 2007 has been China Import and Export Fair renamed from Chinese Export Commodities Fair, also known as Canton Fair. The Fair is the largest trade fair in China . Among China's largest trade fairs, it has the largest assortment of products, the largest attendance, and the largest number of business deals made at the fair. Like many trade fairs it has several traditions and functions as a comprehensive event of international importance.
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Fifty trading delegations, being composed of thousands of China's best foreign trade corporations (enterprises), take part in the Fair. These include private enterprises, factories, scientific research institutions, wholly foreign-owned enterprises, and foreign trade companies. The 101st fair saw 314 different companies from 36 countries.
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CONCLUSION
The basic conclusion for Sangeeta Tools Pvt. Ltd.. is that the company can make more and more profit only when it can satisfy all its customers, dealers and distributors in order to do that company should agree with all their fair suggestions and make them happy. The Research concluded by me states that Sangeeta tools Pvt. Ltd is exceeding over many companies, however deep Tools are giving them a good competition. The Market share of this company is high and I could only see this company dominating the tool industry in India over the coming years.
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Due to the industry being a B2B industry, it was hard gathering information. As the suppliers were mostly not in Ludhiana and customers being from abroad gathering data was hard. The scale of research could not get very large. As some data is secondary so there is a possibility of wrong information. T
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BIBLIOGRAPHY WEBSITES
www.wikipedia.com www.google.com www.indiamart.com www.sangeetatools.com
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