The project assigned by Godrej & Boyce Mfg. Co. ltd for my summer internship program with them dealing in finding out the market perceptions and demand of Godrej Interio’s Desking and modular solutions in offices in Kolkata and 09’. surroundings for the period Feb. -may By: Rahul chandalia DEMAND ANALYSIS OF GODREJ DESKING AND MODULAR SOLUTIONS For: Godrej & Boyce Mfg Co. Ltd. A REPORT ON DEMAND ANALYSIS OF GODREJ DESKING AND MODULAR SOLUTIONS BY RAHUL CHANDALIA ICFAI BUSINESS SCHOOL For– GODREJ & BOYCE MFG CO. LTD. Under Guidance of Faculty Guide Prof.
Kalyan Shankar Sengupta (Icfai Business School) Company Guide Mr. P. K. Banerjee (Asst. Gen Manager, Interio Division) Godrej & Boyce Mfg. Co. Ltd. DATE- 23rd may 2009 2 Authorization This report is submitted as partial fulfillment of the requirement of MBA program of Icfai Business School. The two year full time MBA Program under Icfai University includes Summer Internship Program of 14 weeks. This training is an important component of education at IBS. The Research has been conducted under the authorization and guidance of Mr. P. K. Banerjee, Asst. General Manager, Interio Division, of Godrej & Boyce Mfg.
Co. LTD. The Authorization certificate has been attached herewith… 3 Certificate of Completion of Internship Program This is to certify that Mr. Rahul Chandalia has successfully completed Summer Internship Programme in Godrej & Boyce Mfg Co. LTD. _____ for a duration of 3 months (February 09 to May 09) under the supervision of Mr. P. K. BANERJEE (Name of the Company Guide) , Asst. General Manager, Godrej Interio (Designation of the Company Guide) ______ _________________________ (Mr. P. K. Banerjee) (Company Guide) ________________________________________________ (Prof. Kalyan Shankar Sengupta) (Faculty Guide) Acknowledgement I would like to take this opportunity to express my heartfelt gratitude towards my project guide Mr. P. K. Banerjee and my faculty guide Prof. Kalyan Shankar Sengupta who have been constant resources of guidance and inspiration during the course of my entire project work. From time to time, they have advised me and kept me focused towards the fulfillment of my project objectives. I would like to thank ICFAI University for availing us of such an enjoyable experience in the industry practically with so many kinds of people. A special vote of thanks to Mr.
Sumit Bhattacharya (Deputy Manager Project-East, Godrej & Boyce Mfg. Co. Ltd. ), Mr. Soutak Thakur (Deputy Manager Projects)and Mr. Arpan Mukherjee (Asst. Manager Sales), who had coordinated brilliantly with me in making my research more informative and useful. In addition a special vote of thanks to the entire INTERIO Division who had helped me and supported me in making my project here informative and enjoyable. They have rendered full help and support to me whenever I needed. I would like this support and warmth to be kept continued with me not only till the end of the project but forever. Executive Summary The project deals with finding out the demand and trend of Godrej’s Modular and Desking solutions in Kolkata and nearby regions for the period feb to may 2009. The project was limited to corporate offices only. The project focused in answering 6 basic questions. Overall demand of Desking and modular’s. Godrej’s current market share in this segment. Strengths and weakness of Godrej Modulars and Desking solutions. Resolve, what factors Godrej Interio needs to ponder on to increase its market share. Analysis of competitors strengths and weakness.
Recommend Godrej Interio based on the above. This all was done by collecting data over 86 respondent companies. Each company official was served with a questionnaire. Te responces of those were stored into excel spreadsheet and then coded into numerical format for analysis. Based on the responces for each question a finding series was prepared. This further went into deciding conclusions over material facts and ultimately producing the report with recommendations. While in the field survey a total of 86 respondents answered to the questionnaire.
Major results were like this1. Most of the consumers procured their furnishings requirements by outsourcing to contractors of developers. Yet a substantial part of market remains untouched by the branded players (more details on page no. 22) 2. A large part of market used some or the other type of Godrej Interio’s products, that may be storage or seating or Modular settings. But any way the brand itself had a good penetration in the market. 3. Godrej was averagely ranked between 3 & 4 on a 5 point scale. Which means that consumers had a goon notion about the company 4.
The factor analysis table resolved that people were greatly unsatisfied with Godrej Interio’s Pricing and Delivery schedule. These two factors must be taken care of. 5. The greatest of godrej was its Quality followed by its Brand name. Yet it was found that Godrej Interio was unable to completely exploit the Brand name. Godrej recently in 2008 had unveiled its new colorful logo with the motto to target the youth. Interio division must extensively try to exploit that brand value. 6 6. A major part f the furniture industry as a whole is in the unbranded SME(small and medium enterprise) segment.
Steps need to be taken to encounter this untapped market. ( please refer page 31 onwards) 7. The advantage of having one of the most innovative products like Technoseries in Godrej’s basket has been nil. People were absolutely unaware of the series and its distinguished features. (refer page 25) 8. A large part of market was not in mood to spend any more in furniture in this slowdown market. So there might not be good business prospects ahead 9. Also Godrej Interio had a good word of mouth with the clients. People were always godrej as an option in making furniture purchases.
This was a positive index to Godrej brand. 10. Some of the major competitors of Godrej in the branded segment were Featherlite, Hayworth, BP Ergo, NR Jasani, Wipro, Methodex, Truzo, Merrifair, Durian, Nextgen, Fortune, Kian, PSL modulars, V3 Engineers, Zuari, Furniture concepts, Furniturewalla, Millenium lifestyles, Style spa, Tangent, Renissiance, Yantra, e. t. c. 11. Godrej has not properly utilized its website, infact godrej Interio need its own website. All other branded competitor operate their websites. Also since this is particularly a B2B segment, online marketing is the best tool. refer page 39) These were major findings of the research. Implementation of recommendations will solely rest with Godrej. All the above mentioned agendas have been deliberately explained in the report ahead. 7 Index Serial no. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Content Authorization Acknowledgement Executive Summary About the Company Product portfolio Introduction to Project Methodology Main Text Field Survey Companies Surveyed Findings & Analysis Competitors data Comments Trend The website advantage Recommendations Page no. 3-4 5 6-7 -10 11 12 13-15 16 18 19-20 21 31 36 37 39 41 44 45 References Annexure 8 About the Company Godrej-the organization Godrej is a brand that touches life’s of millions every day. The company celebrated its centenary in 1997. Getting started in 1897 by SIR Ardeshir Godrej, who initiated with Godrej locks. Later on it went into making Safes and Security equipments of extreme Quality. From there on Godrej got translated into a Multi-Business enterprise. It is now one of the largest privately held industrial corporations in India. The combined sales of Godrej Industries in F.
Y 08’ was over USD 850 million. The current employee strength stands at about 8500 employees. (Source-http:// www. godrej. com) Vision and Mission Vision Preferred provider of value-added Tooling solutions world-wide. Mission We tool our customer’s competitiveness 9 The Godrej Dynasty Mr. Ardeshir Godrej Mr. Pirojsha Godrej Mr. S. P. Godrej Mr. Naoroji Godrej Dr. Burjorji Godrej Mr. J. N. Godrej Mr. Adi Godrej Mr. Nadir Godrej 10 Division and products The company has eight Business divisions that manufacture a wide range of products. They are: Industrial Products Consumer Products Services
Tooling Material Handling Equip Process Equipment Precision Engg. Systems Precision Components & Systems Locks Furniture & Interior Storage Solutions Appliances Prima communication Solutions Construction Tech Services Property development Enviro-tech Services Electrical & Electronics Security Equipments 11 Introduction to the Project Introduction to the project Description of project The project has been assigned to me by Godrej & Boyce Mfg Co. ltd for my summer internship program with them. This project is a part of the Master in Business Administration (MBA) Program under ICFAI University.
The project entails finding out the demand of Godrej’s Modular and Desking solutions in offices around Kolkata region for the period Feb to June 2009’. This demand analysis will be done with the help of a Business Research Questionnaire. The said Questionnaire will cover different attributes measurement techniques which will help me get responses from respondents which in turn will be then normalized using different Quantitative tools. Such normalized results will portray a clear picture of Current Consumer demand and will also help us know the changing business environment.
The project will help me develop Communication Skills, will enhance my marketing abilities, will give me a good exposure of market dynamics and will allow me to use the theory I have learns so far. Introduction to the project Project Focus The modular and Desking Solutions of Godrej comes under Consumer products-Furniture and Interior Division. Apart from Desking & modular solutions there are also Seating, Storage and Interiors Solutions provided by Godrej. Godrej also work as Turn Key Consultants for office Interiors, solving all interiors related needs of consumers under one roof.
Our focus in this report will be limited only towards the OPOS-Modular and Desking Solutions of Godrej in offices. Modular and Desking Solutions- Modular Furniture’s comes in breakdown or knockdown format which means that the whole work station is broken into several parts which can be assembled as per the needs of the consumers. While catering to such needs the space utilization, design of office, furnishing requirements e. t. c such factors are considered. Godrej is one of the best dealers in Modular and Desking solutions. With more and more penetration of IT and allied services in India, the need of modular settings has risen.
This is because this sector uses most of the OPOS and modular solutions. And Desking solution as we know is a must need for every office. 12 More over now-a-days even small offices are shifting to OPOS designs as these provide better space utility and are less costly than concrete divisions. All the more these settings are even easier to modify and also gives a trendy creating a congenial work environment. Some advantages of OPOS solutions: Flexible set up. Better sharing and utilization of resources. High level of customization. Easy modification. Less costly.
Objectives of the Project The primary objective of the project was to find out the demand of Godrej’s Modular and desking solutions in offices in Kolkata and surrounding areas during the period Feb-June 09’. Secondary to the primary objective the project will help us evaluate – The changing business environment. Understanding consumer preferences. Define Godrej’s consumer segments. Recommend changes in key areas to improve its consumer base and market share. Methodology Step 1- Collection of data from market. Step 2- Storage of the collected Data. Step 3- Analysis of data collected so far. Step 4- Preparation of project report. 3 Step 1 elaborate The data collection process was done with the help of a well designed Questionnaire. The Questionnaire was designed taking considerations of Survey time Respondent willingness Project objective The Questionnaire uses different types of Questions needed to conduct a research. I had used the following type of QuestionsLead in Questions (Q no. 1) Qualifying Questions (Q no. 2 &3) Warm up Questions (Q no. 4&5) Specific Questions and (Q no. 6-15) Demographic Questions (Demographic profile) The set of Warm up and Specific Questions uses different attitude measurement scales to capture the consumer responses.
These attitude measurement scales assign numbers or symbols to some attributes of an object. Thus scaling involves developing a continuum based on which measured objects are located. I had used a few attitude measurement scales likePictorial Scale Rank order scale Constant sum scale Paired comparison scale, e. t. c. The questionnaire has been kept short so as to grip respondent’s interest and curtail biasness arising out of disinterest. A copy of the Questionnaire has been attached with this report. After the questionnaire is prepared the next part is how to get samples/responses?
Responses will be collected in the following mannerSource- all responses will be collected from primary sources. In this case the primary sources will be the, Facility managers / Project managers / Administrative managers. Architects / Designers / Builders / Interior decorators. Apart from the primary data, secondary data over the company’s past performances will be collected through company’s website, journals, editorials e. t. c. Mode of communication – The managers are contacted personally either by visiting the office or over the phone.
After that an appointment is fixed to have a tete-a-tete with the respective person. 14 Sample- An estimated sample count of 100 has been suggested by my faculty guide. (A copy of the questionnaire has ben attached at the end of the report) Step 2 elaborate The collected data was stored safely and intact so as to allow minimum deviation of results. While in interview process all data were scripted in a hand note book, which later on were transferred into excel sheets. Excel transformation helped best usage of quantitative tools to analyze data.
Also tabular presentation in excel allows viewer a clear vies and better judgment. As per the suggestions on my project guide the data was collected for the first two months of the project. This allowed me to collect data over a good number of samples. More will be the number of samples, better will be the analysis. Step 3 elaborate The analysis part is purely done under guidance of my project guide and faculty guide. This analysis part entailed best usage of the data collected so far so as to produce best results. Different quantitative tools were used to calculate the median of responses.
These were then normalized and with usage of various tools congeal attributes were defined. With focusing on such attributes the company can change their expansion plans accordingly and get a strong hold on its consumers. Step 4 elaborate Based on the findings of the analysis, the report is encrypted by me in an expressive and simple manner. Better presentations of results are as necessary as is the core task. More expressive is the presentation, more interested will be the readers in getting the essence of the project. This ultimately will serve the purpose of the project. 15 Main Text
Modular or Open Plan Office Systems Modular furniture’s come in breakdown or knockdown format which means that the whole furniture system say a work station is broken down into several parts which can be broken down into several parts which can again be assembled as per the needs of the client, space allocation, design of office e. t. c. i. e. customers of modular furniture’s can customize the product. Godrej & Boyce MFG Co. LTD was the pioneer in introducing the concept of Modular furniture in India in 1982 but it did not go ahead with it as the market demand for such modern age equipment was low.
But in the past few years, with the growth of IT and Services industry in India, a massive boom in the demand for such modular furniture increased at tremendous pace because of the concept of teamwork, groups, 16 huddles, meetings, which rose in specially from the IT, ITes sector. Also the skyrocketing real estate prices have forced organizations like banks, large corporate, to ponder on resource sharing. These concepts gave rise to the idea of workstations which would be allocated in bays where each team can be separately allocated but at the same time there can be optimal utilization of resources.
The modular systems were a perfect solution to it where customization is the main advantage as it can optimize allocation of space. The workstations can have various types of arrangements, alignments, and nature of tiles, add on trays, pentagonal for keyboards, white boards, glass partition, e. t. c. The workshop is made of MDF or PLB i. e. Medium Density Fibre or Prelaminated Particle Board Some Advantages of Modular Systems in Corporate offices: 1. Flexible and provides optimum allocation of space. 2. Sharing of Resources: Common panel, white board or worktop shared by two or more employees. . Highly improved wire management system: There are two level wire carriers which enable data and power separation. Facilities mounting of switches has got open fascia for easy maintenance and has got external wire manager for additional wire management. 4. Ease of assembly, move and relocate. 5. Need based customization. 17 6. Field Survey In accordance to the requirement of the project, data has been collected from various offices of all types of companies, firms and organizations. For this personal visits had been made to all the offices with the Questionnaire.
With the help of the Questionnaire data had been collected successfully from 86 respondents. The number of respondents are approximately (1/3) of the total number of offices visited. All the visits cannot be made successful because of various reasons like1. Non availability of the Facility Managers. 2. Wrong sample chosen by me. Wrong sample arrive in cases wherea. b. c. d. If the organization is too small. If the place is a manufacturing unit and not an office. If the number of employees are too small in number, e. g. below 40nos. If the organization does not require Modular and Desking solutions at all. e. g. athological laboratories, Jewelers showrooms e. t. c e. If the relevant Furnishing Decisions are taken centrally from some other office, not in Kolkata. e. g ICICI bank f. If the furnishing requirements are met directly by the Building/Apartment management or the Landlord himself. Thus because of the aforesaid reasons all efforts does not remain fruit full and thus a mere success rate of 33% remains in Data collection procedure. The entire group of the current samples has answered almost all the Questions in the Questionnaire and the same had been stored. 18 The names of the Companies surveyed are as follows: D networks AB consultants Acclairis Acme consultants Adriance group Airtel Allahabad bank-Ns road Andre Yule and co. Apeejay Group Axis Bank- Rishra branch B. R. G. D Ingot Pvt. Ltd. Bhansali Group Birla Sunlife Bishwanath Electrical Lamp Work BNKe. Solutions Pvt. Ltd. BNP Paribas Bank Brick by Brick Central bank -camac street Cheviot Group Coal India Datacaft Design Consultants DK Trading Dynamic Equities Genpact Globsyn network GNG Exports Golden Head group Greenco Biologicals Pvt. Ltd Guin and Sett Habicon India HDFC bank – Dalhousie ICICI Bank- Brabourne road branch ICICI Bank -Rishra branch ICICI Lombard General Insurance Co. Ltd.
ICICI Prudential Indian bank Infinity Infotech Kankei Marketing Services Karvat Group Kotak Mahindra La-o-Pala Life Style Decor Lovely Group M. C. Bhandari & co. Madhukar Food India Pvt Ltd. Magma Fincorp Ltd. Mckloyd Russel India ltd. Modern Design Group Novell NPE Ontrack Systems ltd Oriental bank of commerce P. Mitra & Associates Pantaloons Partha Das & Associates Pooja Designers Power House Price Waterhouse Coopers Punjab & Sind bank R. Singh & Associates Rajat Group Ramco Systems Ravi Pugalia & Associates Reliance capital SEN Group-LQ Polyesestor Singhania Agarwal & co. SK International South City Builders SPA Capital Services Ltd.
Space matrix Spanco BPO State bank of india Structural waterprofing Co. Tamilnadu Merchantile BankBrabourne road branch Tata Consultancy Services The Designers Times of India UCO bank United bank of India 19 United India Insurance Company V. Rungta & Associates Venky Hi-Tech Rolling mills Pvt. Ltd. Vikram india ltd. VSNl Wilson Engineering ____________________________________________________________ _____________________________________________ 20 Results and Analysis Based on the data collected and conversion of those into meaningful graphs and charts the analysis had been done.
We will ponder on all the questions of the questionnaire one at a time. Respondents Analysis Till date the Questionnaire was served before approximately 238 companies. But data can be collected from only 86 respondents. Total = 238 Respondents = 86(36%) Non-Respondents = 152(64%) Respondents Analysis 86 152 Respondents Non-Respondents Thus we see that there is a just approximately 36% chance of getting a response. References play a pivotal role in getting better number of samples for a research. One key to that is to ask for reference at the end of each interview from the interviewee.
More often than not this helps. 21 Furnishings Procurements Analysis The first Question of the survey asked how do they procure their furnishings requirement. The question was an closed ended one with options as Internally and Outsourcing. Where internally meant that the organizations do not hire professional interior developers or architects to make their furniture. They rather built on their own Again Outsourcing would mean that the organization the complete or part of its furnishings requirements to architects or interior decorators or contractors.
Of the total number of respondents 16 said that they procure their furniture requirements internally and the remaining 35 either procured through contracting or were served by the Buildings Facility Management Department. Procure Internally- 23 (27%) Procure by outsourcing- 63 (73%) Total- 86 70 60 50 40 30 20 10 0 Int Ext Out of the total sample size, 27% organizations do develop their interiors by self. One of the main reasons for such practice that came afloat was the cost involved in outsourcing. Of the 23, (27%%) respondents who preferred internally, most of these were either small or medium sized organizations. 2 Godrej Brand penetration The second question of the survey was “Do you use any of Godrej Furniture solutions? ”. The question was intended to see how many are currently the users of some or the other products of Godrej Interio. This shows the knowhow of the brand itself, which will let us know how much people are familier with the Godrej Interio brand. The reason being that if customers had used a product of a particular brand earlier and are satisfied with the product, then he/she will have the same expectations with the other product of that brand umbrella.
Also deep market penetration help a brand to introduce new products easily. An example can be of Maggi fast food. Where Maggi was basically serving vermicellis in market, but when it introduces its “Maggi Tomato ketchup” it was readily accepted by the customers. One reason being customers knowhow for the Maggi brand. This is where Brand helps. 12 No 74 Yes Thus from the above we find that out of total 86 samples the users are distributed in the given fashion. Total = 86 Users = 74 (86%) Non-Users = 12 (14%) 23 Total Current Users – product wise Users 40 30 20 10 0 15 20 31 19 9 0
Out of the total, here we see that the seating segment has maximum=m penetration in the market with appx 36% share of the Branded furniture market. This is just followed by Desking with 19%. We may say from this that even in the current segment a large part of market is with the competitors which Godrej must look in for. Again we see that the market share for Technoseries is NIL. This means that there are no users of Godrej’s Technoseries. It is worth mentioning that Godrej Interio is the only company which possesses a Hi-tech product like this. This Godrej should take due emphasis on properly marketing its ‘Technoseries’ series. 4 Godrej market ratings Respondents were asked to mark what expression comes on their face with the name on Godrej Interio. There were five facial expressions from very say to very happy. Each of these were allocated points from 1 to 5- 1 being lowest, for very sad expression. This pictorial scale denotes how much a brand is liked by the consumers. Since Modulars and Desking solutions are wholly an B2B segment, here the brand perception in the mind of Facility managers or Admin heads or Contractors play a pivotal role in bringing new customers. 6 4 2 0 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 5 4 3 2 1 0 1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 The result of the survey has been transformed into a 5 point graph where we see that the graph line seldom touches the ‘2’ mark. The line is continuously between ‘3’ and ‘4’ mark. This indicates are fairly hapy with the brand and have a good perception of the brand. 25 Factor Rating Here we listed down five furniture attributes and each attribute was ranked on a five point scale. Each respondent ranked each attribute based on his usage experience with godrej. This sort of scale shows us the attributes of our products which consumers are unhappy with.
This helps us ponder on that particular attribute and make required changes, if possible. 100 90 80 Highly Satisfied 6 11 23 Satisfied 14 28 Neutral 6 14 43 Unsatisfied 14 14 15 Highly Unsatisfied 3 20 28 70 60 50 40 30 20 10 34 17 17 12 26 21 17 14 Customer Relationship 0 12 10 11 Quality Quality Price Pricing Delivery Schdule Range Of Design Delivery Sch Designs Cust. Relationship Here the company should take care of the top two colours of each bar. As these colors denote ‘unsatisfied & Highly unsatisfied’ ranks. We can see that the top two colors spread maximum in Price bar and the Designs bar.
Which means that there is a need to revise the Prices and Design portfolio of our products. Also consumers say that when thay are paying premium prices why should they compromise with Delivery Schedules and Aftersale services. Thus due emphasis shoule be given to these attributes. 26 The Godrej Advantage Next we used a multiple choice question where 7 different reasons of choosing Godrej were stated. Respondents were asked to tick one of the 7 which would be his reason of going with Godrej. This type of scale shows us our strengths. The attribute which gains maximum points is the strength of our products. 5 40 35 30 25 20 15 10 5 0 42 27 8 3 4 0 0 Brand name Quaity Design Price Cust. Relation Delivery Payment Here we see that Quality is the strength of Godrej. Next to Quality People choose Godrej Interio for its Brand Name. It would be worth mentioning that since these are the strengths of Godrej Interio, it needs to take due care of these factors. In the era of evolution constant innovation and repositioning of products is necessary. 27 Paired Comparison Scale Next we used a Paired comparison scale, wherein a stastical method is used to find out the factor preference of consumers.
This scale is like a second level of factor preference test. Here a specialized scale is used wherein two factors are compared with each other. 70 60 62 49 53 63 50 40 30 20 10 21 17 16 8 7 0 Price/Quality Quality/Space Price/Delivery Price/Payment utility All Equal Let us try to depict the results of this in the form of a mathematical equation:Where Quality > Price Quality > Space Utility Price>Delivery Schedule Price > Payment terms If we see the above equations collectively we may allot the given ranks to these factors1. Quality 2. Price 3. Space Utility & Delivery & Payment terms (i. equally important) This analysis is based on the consumer preferences in respect to Modular and Desking Solutions. Thus we may say that whenever a Consumer is in the process of buying a Modular or Desking solution there is more than 50% probability of his choosing the brand with Best Quality. The statement above can be sufficiently supported if we prepare a Hypothesis based on the given factors and the respective responses. The last stand alone bar in the graph above shows that for 16 (18. 6%) respondents al factors are equally important. 28 Quality 56. 90% Payment 9% 79. 06% Price 1% Delivery 19. 76% SpaceUtility Based on the paired comparison scale responses the above Multi Factor Radar has been prepared. Each pole of the radar signifies 100%. The centroid symbolizes 0% Legends mentioned are the compared factors. Percentage value beside each legend is the percentage score of respective factors. With this we understand that Quality is the best important factor next to Price. The remaining three factors are less important for our analysis. But, the Hypothesis Study in the previous page states Quality as Primary factoe whereas the Radar says Price as the primary factor.
This dilemma can be stated as the jargon of Mathematics and Research. Since we used different methods on the same data, the results are different. This is because both analysis tools are totally different in them and are based on different theories. However on a whole we may term Price and Quality as the most important factors which play pivotal roles in consumer buying patterns. 29 The market of Branded Furniture Segment IT/ITES Banks Telecom PSU’s State Govt. Educational Inst. SME’s Railways Corporate Total Desking 3. 3 2 0. 5 2. 5 3 5 1 3. 5 1. 5 22. 2 OPOS 30 1 1 4 3 0 1 3. 5 2 46 Godrej’s Share 5. 5 8 30
From the above table we see that the entire branded market of Desks and Modulars is worth 22crores and 46 crores respectively. Of this godrej have a market share of 5. 5 crs and 8 crs respectively. If we plot this into pie graph we have the following result- Market Share(Desking) Market Share (OPOS) 17% 83% Godrej, 8crs Others, 38crs 24% 76% Godrej, 5. 5 crs Others, 17. 5 crs Here we see that Godrej has a share of 24% in the desk market and 17% in the OPOS market. The remaining 76% and 83% is occupied by other branded segment competitors collectively. If we see this ‘others’ block we may find a list of competitors.
Renissiance Millenium Lifestyle Kian Tangent Furniture Concepts Furniturewalla Zuari Truzo Calcutta Furniture PSL Modulars V3 Engineers BP Ergo Featherlite Wipro Methodex Haywarth Merrifair Durian Nextgen NR Jessani Blowplast Yantra Style Spa Fortune 31 Purchasing Pattern This reveals the way Modular and Desking solutions are purchased. Out of the total market this reveals how many customers purchase Branded Furniture. Economical 23% Branded 27% Moderate 50% Before we analyze this let us understand that the market of Branded Furniture itself is very small and around 15% only.
Major part of the furniture market is with the unbranded segment i. e. 85%. Out of this 15% we have done an analysis. This says that around 73%(50+23) of Branded market is with the SME (small and medium enterprises) segment. This is because most of the small and medium organizations seldom come to branded furniture makers because of the cost factor. If we look otherwise then this 73% can be huge potential market which can be accessed if a new range of low cost series be launched under the Godrej umbrella. 32 Satisfied with the Current office decor
When asked about the current satisfaction level with regards to office decor, only 7 respondents said that they are not satisfied. This meant that only 8% people are unsatisfied with their current setup. This shows a very small opening towards new business prospects. 7 Satisfied Unsatisfied 79 33 Are you planning for replacement? When asked about the replacement planning, only 4 (4. 6%) said that they are planning to replace their furniture set up. 4 Yes 82 NO There are reasons for such negative replies. 1. Given the current market scenario with Slowdown clouds floating above head, IT and Banking industry had put a pause on expansion plans. . Also people were reluctant to say yes to these questions as because the survey was being conducted from Godrej Interio (which is one of the leading players in office furniture segment) 34 Would you like to Godrej in your next purchase? This question was asked to know whether the consumers are still interested in buying Modulars and Desks from Godrej Interio or whether thay seek Godrej Interio as a viable option to trade with. 19 67 Yes No If we relate this to the ‘Godrej Market rating’ i. e. Q No. 4 we may say that here the consumer sentiments towards matches and they have high status for Godrej Interio.
Here also 67 of the 86 respondents said that they would go for godrej while making their next purchase planning. This means that around 78% of the market still keeps Godrej as an option in office furniture segment. 35 Some Comments about Godrej “Godrej has a Brand name and when I hear the name og Godrej- Godrej refrigerator and steel almirah comes to mind first” – Raajat chaturvedi Spa Capital Services Ltd. “To me Godrej means LOCKS’’ -MR. Rajesh B. R. G. D Ingot Pvt. Ltd. “If we pay the premium price we also expect quality of service- please ponder” -Sushil Bhimrajka Magma Fincorp limited This desk I had bought from Godrej, but its twice as costly as from any other competitor” -Bappa bose Golden Head Group I also do contracting with Featherlite, Stylespa and a few other imported brands, but godrej I find a little costly -Pooja Pooja designers Price is no more a factor. As and when we decide to go for a branded player we take premium prices for granted. What matters after that is the Quality of furniture. -Mr. S. P. Barua Andre Yule & Co. 36 Trend The market of Modular furniture is definitely on an inclining trend and it’s definitely the call of the market today. he total furniture industry in india is expected to be around 5-6 billion euro. Within this, the wooden furniture itself accounts for 750 million Euros. Of this the imported furniture market is currently worth 80 million euro and growing at a strong pace each year. The furniture sector in India makes a marginal contribution to the GDP, representing about 0. 5-0. 6% of total GDP. A major part of this industry is in the unbranded-local segment with carpenters and contractors. Which comprise about 80-87% or the entire furniture market. Godrej Interio along with the other Branded competitors are playing in the small 15% of the furniture market.
Office Furniture As per a study the Indian software and services export sector earned revenues of around 13. 46 billion Euros registering a Y-o-y growth of 28. 56%in the year 07-08. But the last year has been a debacle. With slowdown in US economy, the IT and ITes market has recorded single digit growth figures. Companies are steep in cost cuttings, everywhere layoff fear is streaming. Because of this newer recruitments are less both in Banking and IT sector (both of which are the major consumers of OPOS systems). Thus Modular market in the past year has also shown a downward trend.
Demand of offices In india demand for office has grown from estimated 3. 9 million sq. ft in 1988 to over 16 million sq. ft in 2004-05. Cumulative demand of office space in india during 05-08 was expected to be in excess of 85 mllion sq. ft. This represented an annual growth rate of 14. 5% over the years. The continous growth of IT ans ITes industry despite the Satyam case and the Slowdown fever has contributed to the industry significantly, not only in terms of Foreign exchanges and employment but also in development of quality commercial and office spaces in metros and beyond.
Sector –V of Kolkata and Cyberabad in Hyderabad city are real life examples of extraordinary office luxury. This definitely opens the flood gates to a brighter future ahead for the furniture market as a whole. 37 The Website Advantage Godrej & Boyce Mfg Co. Ltd. has its own website, within which all the products from tools to Electronic services are displayed. Godrej interio, being a big division, must have a website of its own. All other branded players have maintained their websites and also keep updating those regularly. The current website, www. Godrej. com, is not sufficient enough to meet the needs of godrej interio’s marketing.
Since modulars and desks a almost an B2B segment, online marketing is an absolute necessity. Organizational heads of Facility managers have very less time to move in to offices or showrooms. They want everything at their desks. For this no better tool than a website is available. If we look at the websites of other competitors we will find the following features- Sample Windows- by clicking on a particular OPOS type, that picture opens up in a seperate larger window for better viewing. Display Space- Self website will allow it to display all its products efficiently and expressively.
Material Details – every buyer wants to know what type of material is going to be used to make his furniture. What will be the width of the panel, What will be the space of each station What will be the color combination How will it look like after installation What will be the accessories provided How will the plug points be installed e. t. c These details we find in the website of other competitors but not with godrej. Aself website wil allow godrej to make a point on all such queries. Colors and Textures- Buyers are definitely keen to know about the colour combination and type of texture being used in their furnitures.
There are no such options in godrej website which entails viewer to change the colour or select the texture of the furniture. If we look at www. brfcolors. com we will find how important colors are in selecting furniture. This website allows a viewer to change the color and texture of furniture and review it. 38 Accessories for Modulars- there is a large list of modular accessories displayed on the websites of European and Italian designers likeFile trays Stationery trays CPU holder Processor trays Whiteboard trays Keyboard stands e. t. Infact a separate page is there on the website which allows the user to navigate through the range of accessories. But there are no such options even in www. godrej. com Customization- Websites like www. millife. com allows viewer to customize their furniture online itself. This helps the viewer in making various combinations as per his need and then decide which one suits him best. Detailed texts- Websites like www. featherliteindia. com givs a detailed text below each desk and modular online. Such texts include the material detail and installations data about that piece of furniture.
Such details are absolutely necessary as this may change the buyers decision. Cart facility- some websites have cart facilities. When the viewer is surfing through the website, he chooses all the products he is interested in. all those products directly gets added to the cart. At the end of the surfing the viewer can open the cart and see the details of each product selected by him. Weblinks- this is a concept where a weblink is created on the website of the parent company. This weblink diverts the viewer to navigate directly to hi required page. At www. psllimited. com/eurocousticproducts. spx a web link named as www. pslmodular. com has been created. The company PSL Limited is basically a hardware company. But this company offers Modular solutions also. So for the ease of navigation of modular customers it has created aweblink on its website which directly takes the viewer to the modular section. This is most important from the point of godrej. Since Godrej & Boyce is the parent company and has a website with varied portfolio of products from tools to electronic services. It is advisable to create a link at the home page itself for the modular section.
This will help buyers get directly into business rather than the painstaking job of searching. 39 Online Payment- Websites like www. spacify. com have tie ups with online payment gateways like Paypal e. t. c. This allows customers to pay bills online. Even this website allows viewer to get an estimated cost of the selected piece of furniture choosen by him. Even the viewer can change the texture and again re calculate the estimate. Such facilities are an absolute necessary in todays date. ‘People Buy what they see’ The above statement is absolutely true.
In todays date with less time, Admin heads are always busy in some work. In such a scenario if a company wants to portray a distinguished image to such a busy manager, there is no other way than a well designed website. A well designed website itself speaks about the brand and the image of the company. A well known saying ‘ first impression is the last impression’ well fits in this context, because the website is what peoples see at the first instance. 40 Recommendations Godrej & Boyce Mfg. Co. Ltd. Is a decade old organization and the name of Godrej itself speaks about it.
After visiting the actual market and getting in depth into a research over Godrej Interio in Kolkata I would like to put forward some meaningfull suggestions I think that these suggestions will help godrej increase its market share by a significant margin and also may get more brand loyal customers into its basket. Quality As though Godrej is known for its quality yet a constant improvement in quality is necessary. The market today is highly competitive and Godrej need not leave any stone unturned to grab a big chunk of this. Delivery Schedules It was found that consumers were not happy with the delivery pattern of Godrej.
Where such big brands are associated, commitment and fulfillment of orders within due dates are a complete necessity. Due care should be taken of delivery pattern. Implementation of EOQ models as a part of inventory management tool may help Godrej serve its customers on time. Also since consumers are paying a premium price for the Modulars, they definitely want on time delivery. If such does not happens there is high risk of loosing brand loyal consumers. Instant Solutions Godrej is not too fast in pulling up new consumers. At BP Ergo instant designs are made as per customer requirements through AutoCAD.
Also break up prices along with other details are served. This is one of the necessary tools to put a good impression on potential customers. This helps customers have a positive insight over the organization and also assures them of proper service. After Sales Services As per the feedback, it was found that Godrej lacks in impromptu solutions on complains. There should be highly motivated teams specially to amend complains as fast as possible. This keeps the image of the organization high in the eyes of users. 41 Customer Support Cell Almost every big organization today have a customer support cell.
There isn’t any such in Godrej. As today most of the IT & ITes companies are the users of modulars systems, it shouls be noted that these organizations work 24 hours in shifts. In that case a customer support cell or an online complain registration portal must be established. This will entail consumers to contact Godrej any time of the day, also godrej will be in close contact to its customers. Targeting the SME As we had seen that a large part of the furniture industry is still untapped. Local vendore are the toughest competitors in this untapped market, as they offer economical pricing.
Godrej should take a step forward and release some economical series of modulars and desks in market. These will help godrej play into a newer and totally untapped segment. Also the brand image of godrej will help much in this newer segment. Bringing down the prices of existing products might be risky because this might cause an unrest in the mind of current users who had bought at premium prices. Also this might erode away the brands Premium image in the market. So it would be better to launch a completely new Economical series for the SME segment. Marketing Proper marketing of OPOS is necessary.
As this segment is a totally B2B segment, good marketing tools like Online marketing, Business journals, Executive forums, e. t. c. would be the best place to market. Marketing of the other segment like kitchen, home is still better than the office segment. As such we see that Technoseries series is completely unknown to customers. So proper steps must be taken to introduce godrej’s OPOS and Technoseries to corporates. Brand Advantage Very recently the Godrej brand as a whole was revamped in 2008. In 2008 the new logo of godrej in green, pink and a tinge of blue was introduced. Also a new Television commercial was launched at the same time.
This unveiling was termed as targeting the youth in terms of Sir Adi Godrej. Thus with this new image Godrej must try to exploit the brand name to the fullest. Godrej undoubtedly is the leader in the furniture division but is not doing well in the OPOS segment. Other branded competitor like BP Ergo, Featherlite and Hayworth are moving ahead of Godrej. Here the brand name will help godrej stretch its legs far and ahead in Indian markets 42 Employee and Organizational Culture Organizations like Microsoft have been seen providing fanciful work space and luxurious work schedules to their employees.
Such facilities are also displayed to the common masses also. (Microsoft has arranged a large A/C Volvo bus with TV screens on each seat for the conveyance of its staffs. Wipro in its advertisements shows the large and picturesque campus with cheer work environment) Such revelations create a good public image of an organization and help them seek brighter and talented human resources. Which in turn leads to overall organizational efficiency. At the very first instance of the Godrej Kolkata office, it seems like a age old public sector company.
There is a need to restate the office setup with brighter colors and motivational leadership slogans in alleys and on walls. Godrej Kolkata office has an open door policy, which boosts staff morale very much and keeps them interested and enthusiast. Such office culture is rarely seen where there is only a virtual barrier between superiors and subordinates. Such organizational culture allows one to work hard. It builds up good relation in the organization itself. But there are no cafeterias or canteen for employees at godrej. Such facilities are a minimal requirement in any large office. 43 References 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 2. 13. 14. 15. 16. Www. godrej. com www. google. com www. featherliteindia. com www. millife. com www. fortunedoor. com www. nrjasani. com www. spacify. com www. efgoffice. co. uk www. brfcolors. com www. a-lab. no www. onewayfurniture. com www. pslmodular. com www. V3-india. com Marketing Management, edition 10, prentice hall: Philip Kotler Business Research methods- ICMR Business world- weekly magazine 44 Annexures 45 Market Demand Analysis of Godrej Modular & Desking Solutions and Seating solutions in offices. Dear, Sir/Madam, I am conducting a field survey to analyze the demand of Godrej Modular & Desking and Seating solutions.
I would be obliged if you may answer few of my research Questions and allow me to gain sheer knowledge from your experience. – – ———————————————————————————————————— – 1. How do you procure your furnishings requirements? Internally Outsourcing 2. Do you use any of the office furniture solution provided by Godrej Interio? Yes No 3. Of the given, which ones do you use and from which brand? Type of furniture solution Desking Solutions OPOS-Modular Seating Solutions Storage Solutions Interiors Technoseries Others……………………
Others……………………. Is that from Godrej Is that from others (specify) 4. What expression comes on your face when you hear about Godrej Interio. a. b. c. d. e. 46 5. Please rank Godrej Interio based on the following factors. Highly Satisfied Quality Pricing Delivery Schedule Range of designs Customer relationship Satisfied Neutral Unsatisfied Highly Unsatisfied 6. What are/were the main reasons of your choosing Godrej. (mark multiple options if applicable) Brand name Range of designs Quality Price Customer Relationship Delivery pattern Payment terms 7.
Given below are some characteristics of Desking & Modular and Seating solutions. Please give each characteristic some point’s base on your preference so that the total adds up to 100. The higher points allocated to a characteristics, the higher is its importance to you. Life of furniture Customization of furniture Price of furniture Appearances of furniture Space utility of the Furniture Faster delivery of furniture Range of Designs Warranty Payment terms 100 Total 47 8. Please select one item each from the following pairs that is most important to you for selecting Furniture.
Attribute 1 Price of Furniture Quality Price of Furniture Customization Payment terms Attribute 2 Quality Space utility Delivery Schedule Delivery Schedule Price of furniture Your preference 9. Which Type of Furniture companies do you look in for when you go for Purchasing Office Furniture? Branded Standard but unbranded Economical 10. Are you aware of Godrej Interio’s Technoseries, Technology embedded Furniture solution? Yes No 11. Are you satisfied with your existing Office decor? Yes No 12. Are you planning for replacing your existing Modular and/or Seating pattern? Yes No 13.
Would you go for Godrej Interio the next time you purchase furniture? Yes No 14. What other Brands would you consider when you next purchase furniture? ……………………. ……………………. ……………………. ……………………. 48 15. Any suggestions you would like to offer to help Godrej Interio serve you better? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… Demography Name of the organizationName of Facility managerOffice AreaCityEmail/Website addressTelephone No. Core activityNo. of EmployeesAverage age groupDo you wish the results of this study to be sent to you? Yes No Thank you for your kind cooperation and valuable time. 49 50