Index

Sr. NO. Topic

1 General Information
2 Marketing Yesterday & Today
3 Marketing Mix
4 Mnuafacturing
5 New Product Development
6 Marketing Strategy
7 SWOT Analysis
8 Conclusion
9 Bibiliography
Project At Glance

Name of the company : Airson Ceramic Industries

Topic Of Project : Market Research For Dealer

Project Prepared By : Bhojani Nikunj L.

Project Undergone at : Airson Ceramic Industries

Project Guided : Mr. Dhaval S. Baga

Miss. Mital Menpara

Address : 8-A National Highway,

Opp. G.E.B. Feeder,
Lalpar (Gujarat) India.

Academic year : 2008-2009

Submitted to : Saurashtra university, Rajkot

 Growth of
Ceramic
Industries
Industry highlights

o Ceramic tiles are furnishing materials apart from being utility or

hygiene products-despite an overall slowdown of the economy this
sector continues to grow at a healthy 12% per annum.

o Investments in the last 5 years have aggregated over Rs. 2000

crores and production during 2003-04 stood at approx. 200
million sq mts.

o Growth of the unorganized sector accounted for 44% of total

production. Which bears testimony of the attractive returns from
this industry.

o Revenue earning industry-excise mops up over rs.150 crores

annually from the organized sector itself
Current Situation
in
Tiles Company
Indian tiles industries has been passing towards the
phase of rapid dimensional changes along with unhealthy competition.
On the other hand there has been and moreover has to face intense
competition in china. The whole of the tiles industry has been facing
new challenge prompted structural change.

The year 2005 may to be a hot and cold year for tiles
industry. Ceramic wall tiles and floor tiles. Bath tub, vitrified floor
tiles and sanitary ware industries may have to face lots of difficulties.
A situation of a fierce price war may in the sanitary industries. As a
result most of manufacturers will have to compromise with the equal I
type of product. The year 2005 is expected to witness to huge demand
for high quality products. The companies of organize and unorganized
sector will face neck competition in the market.

Currently the companies of the unorganized sector was

snatching the shares of the organized sector companies but now the
companies of the unorganized sector will try there best
to compare the market share of each other among themselves by
fierce price war. Companies of the organized sector will have to
face fierce competition in the current year.

Introduction to

Airson Ceramic
Industries.

Innovation is a key to success and at Airson Ceramic

Industries as almost a passion to translate innovative ideas into reality.
Airson Ceramic Industries was established in the year 2007, at that
time the construction was started and in 2007 production was started.
At the basic level, the first years the total export of the company was
35 to 40% of the total production.

Airson ceramic Industries are developed to ultimate

perfection and quality through state of the art machinery. And hard
work of motivated team of experienced technocrafts made it possible
that beauty and quality finely blend together. The plant of the
company is base do not the best technology to deliver best quality
product and perfect customer satisfaction is the foremost objective of
company. The company export its product in international market too.
Airson Ceramic Industries company is most popular all over country
now. The company have a massive dealer network through the country
and product are available with good services.

Since - quality is a cost affair, every care has been taken

to I ensure that each tile rill out the unit is perfect to the tiniest detail.
Airson Ceramic Industries floor tiles which combines durability with
colour, design and comfort ability. More over each tiles has perfectly
straight, sharpe edge which gives your home excellent look and extra
strength. Each piece receives individual attention to insure the
quality . the company is among the most prestigious and renowned.
The man\in aim of company is to accept the customer satisfaction.

Airson Ceramic Industries are highly durable, strain

resistant maintenance free and available in variety of color and design,
besides regular sizes, the co. has also include,
like 4 x 4, 6 x 6, 8 x 8,
12 x 12, 16 x 16, 24 x 24.

In this product range, however the sheer beauty, finishing

and feel of the wall will simply amaze you. That what sets it a class
apart. After all it is a product from the company that climbed higher
with its innovative approach and unmatched quality Product.
 Marketing
Yesterday &
Today
Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and
services to create exchange that satisfy individual and organization
goal.

Traditional, much importance was given to product rather than

needs and wants of consumers. Marketing manager go on design their
product without giving through to he needs and wants of consumer.
They were trying to sell their product at any cost. Consumers were
bombarded with advertisement; in all calls, telephone calls, etc.

The aim was to earn profit through high sales volume.

Moreover, marketing was considered as buying and selling the
product.
 But now, time has changed, Marketing is considered to be
much more; the focused is given to the needs and wants to
consumers. Products are designed according to the specification of
consumers. Consumers satisfaction is given much importance. The
aim to earn profit through customer satisfaction. Moreover, marketing
function has also widened. Marketing includes back warding and
forwarding development, marketing research, advertising, and many
more. In forwarding functioning it includes post truncation research,
after sales service, disposal of the product, <*> use of the product,
etc. Nowadays ways of advertising is also changing. Traditional
mostly used media was television. Now people started using internet
as media of advertising. More and more number of people is turning
to development to website and net advertising.

Recently new P is introducing in marketing. First there were 5

Ps. Now there are 8 Ps. Last year New P adds is product portfolio
management. Nowadays more importance is also given to marketing
research also knows the latent needs of consumers.

Thus, Marketing yesterday and today is totaling different. One

has to adapt the change to survive in this market.
Marketing Mix

Marketing mix is the various marketing tools that marketer use

to sell its products. There are 4 Ps of marketing Mix.

4. Products of Marketing

Product Price Promotion Place

A list of the relevant market forces and the element of the

marketing mix would be helpful in analyzing marketing problems.
The main aim of all marketing activities is profitability. The
marketing manger should therefore devise such a marketing mix that
will give the optimum profit for the product he has to market.
By blending this marketer make a proper plan of action to push
its products in the market.

Definition:
According to Phillip Kotler, Marketing Mix is the set of
marketing tools that the firm uses to pursue its marketing objectives
in the target market.
Element/Tools Of
Marketing Mix
The most basic marketing mix tool is product the firm tangible
offer to the market, which includes the product quality, design,
features, branding, and packing. As part of its product offering,
providing after sales services, such support services can provide a
competitive advantage in the globally competitive market place
Product Mix includes following things:
Product Variety
Quality
Brand name
Service
Design
Packaging
Warranties
Feature
Sizes
Capacity
Returns
Readability.
Airson Ceramic Industries has good product mix. It has long
variety of product, with different readability and size of good quality
of product which is given next. As far are service is concern,
company has given that responsibility to the dealer to give the best
quality service.
Manufacturing
Process
 The manufacturing process of ceramic tiles is not difficult. The
basic raw materials are clay and powder. This industry use the clay
directly from Morvi and another places and this kind of clay, industry
can directly use for production So there is no need for blunzer which
mixing the clay is mixed up with water and make them hard.

After becoming them hard. It is sent for crush ing because

with out it this clay can not be used for the production. After
crushing the clay which was mixed with water it sent for the press
machine. The output of this machine is three same piece at a time and
size. So we can say in one minute this machine give total 36 green
tiles.

After completing this process it convents into green tiles which

we can say basic frame of the tiles. Then it sent for heating in the
furnace to make hard and it will convert into biscuit tiles. This is the
hard form of tiles before the actual use. Then all this tiles are
sent for glaze lines by the roller. In the glaze line process main work
is to give proper color, design and proper glaze as per the
requirements and design this biscuit tiles are sent for press.

After completing this process of the glaze, color and design,

this all tiles are sent for the furnace (Tunnel kiln) for the final product
by the rolling machine. In this kiln six tiles can enter at a time. This
process remains, remains continue, like at once six tiles enters with
the distance of one or two inches. For the heating, the temperature
remains 1050 to 1100 C. After the heating it can convert into final
product. After that each products quality sorting done manually and if
there is any defect it will remove. At the end of the process it sent for
packing as per the requirements of the customers.
 Features of
FloorTiles
This type of tiles are known as bathroom. Tiles which have
excellent colors and designs. The main advantages of tiles is water
absorption, easy cleaning and resistance.

This type of tiles are known as shower tiles. It is hard than

bathroom tiles. The main advantage is that it holds the underground
pipelines hardly and another advantages are same as bathroom tiles.

This type of tiles are known as bath tub tiles. It is limited upto
the of bath tub. The main advantages are protection of wall from
water and another rubbish.

This type of tiles are used in swimming pools. This type of

tiles are rough. The advantages are same as above three.

This kind of tiles are generally used in kitchens. There are also
various colors and designs and main advantage is protection of the
color of wall from the heat of gas.
 New Product
Development
The typical new product development process followed by
Airson Ceramic Industries is as follows:

The following stages are involved in NPD process.

1 IDEA GENERATION:
New Products are born from ideas. Before searching ideas, top
management should define the products and markets and should also
state the objectives for NPD.
Sources of new product ideas:
Customers:
Loyal customers often recognize the need for improvement in
the product before companies can do. Companies can identify
customers need through complaint letters, forced group discussion,
etc. and can made changes accordingly.

Employees, Engineers:
Company must develop a culture so that employees are
encouraged to give new ideas. They should also develop an incentive
scheme for those who give best ideas.

Competitors:
Company can purchase the competitors product to see the
functioning and accordingly they can develop new product.

Other Sources:
Pattern attorneys, university, advertising, agencies, marketing
research firms, university, business publication and so on.
2. IDEA GENERATION TECHNIQUE

Attribute Listing:
It is listing an existing products attributes and then modifying
each attributes in the search for an improved product.

Forced Relationship:
In this several objects are considered in relation to one another
to create a new product.

Morphological Analysis:
It is identifying the structural dimensions of a problem and
examining the relationships among them.

Need and Problem Identification:

Here customers needs and problems are identified.

Brainstorming:
It is a group activity to stimulate the flow of ideas by
discussing a specified problem. Here rule is-
We want as many ideas as possible and remember no
evaluation.
3. IDEA SCREENING:
In this stage new ideas are evaluated to determining the
promising ones. The purpose of ideas screening is to drop poor ideas
as early as possible because product development cost rises
substantially at each successive stage.

The committee should avoid two types of errors:

Drop error: It occurs when committee drop an idea which is good.
Go error: It occurs when committee go with an idea which is poor.

Most of the company uses product idea rating device while

screening the idea price performance, quality, customer satisfaction,
matches with company resources, strategies, objectives, etc. Then
idea is matched with this certain criteria and if it does not match then
idea is dropped.
4. CONCEPT DEVELOPMENT AND TESTING:

Philip Kotler says,

Attractive ideas must be refined into testable product

concepts.

Consumers do not buy product ideas but product concept.

Product Idea : A possible product that the company might

offer to the market.
Product Concept : An elaborated version of ideas expressed in
consumer meaningful terms.
Product Image : A particular picture in the minds of
customer.

Concept Development:
A product idea can be turned into a several product concept.

Concept Positioning:
Each concept is required to be positioned so that it helps to
understand the product competition in relation to cost, time
preparation, quality, etc. These comparisons can be used to
communicate the product concept to the market.
The major competitors of Airson Ceramic Industries are:
Deco
Salon
Seron
Others
Airson Ceramic Industries are positioned against them as
SCALE OF HIGH QUALITY AT REASONABLE PRICE
Concept Testing:
Concept testing calls for testing this concept with an
appropriate group of target consumers. The concept may be presented
symbolically or physically. Consumers are presented with an
elaborated version of each concept and they are asked to react to each
concept.
If company have undertake proper concept development and
concept testing then it can avoid any problem that arises in the market
place later on in the initially stage only.
5. MARKETING STRATEGY DEVELOPMENT:
The new product manager will have to develop a preliminary
marketing strategy statement for introducing this product into the
market. This strategy will be refined in the subsequent stages.

This marketing strategy plan consists of 3 parts.

First part describes:
Target market, structure, behavior, sales, market share, profit
goals sought in the first few years.

Second part describes:

Products planned price, distribution strategy and the marketing
budget for the first year.
The Airson Ceramic Industries will be offered with lower
price .
Third part describes:
Long run sales and profit goals and marketing mix strategy
over time.
6. BUSINESS ANALISYS:
Once the product concept and marketing strategy are
developing management evaluate the business attractiveness of the
proposal. Management evaluates the sales, cost and profit to
determine whether they satisfy the companys objectives. If they do
them the proposal move into next stage.

Estimating Total Sales:

Management needs to estimate whether sales will be high
enough to yield a satisfactory profit.
Total Sales = First time scale + Replacement sales + Repeat Sales.
Sales estimation depends on whether a product is one time
purchased infrequently purchased or frequently purchased produced.
Scale is one time purchased product. Here number of first
buyer initially less and then decrease as few buyers are left. Repeat
sales will soon occur provided that it satisfies some buyers. The
repeat sales curve eventually falls and become steady because by this
time, the product is longer a new product.

Estimating First time scale:

The first task is to estimate the first time sales of a new product
in each period.
Estimating Replacement Sales:
To estimate replacement sales, management has to research the
product survival age distribution. The low end of distribution
indicates when the first replacement sales will take place. Since,
replacement sales are difficult to measure before actual launch, most
of company base their actual decision solely on their estimate of first
time sales.

Estimating Repeat Sale:

For a frequently purchased product one has to estimate the
repeat sales. A high rate of repeat purchase indicates that the
consumers are satisfied with the product.

Estimating Costs & Profits:

After sales forecasting management have to estimate the costs
and profits of this venture. The costs are estimate by the R & D,
manufacturing department, marketing and finance department
together.
7. PRODUCT DEVELOPMENT:
I the product pass, the business test, it moves to R&D to be
developed into a physical product. Up to now it exist in the form of
word description, a drawing, or a prototype. At the stage the company
will determine whether the product idea can be translated into a
technically and commercially feasible product.

The R&D department will develop one or more prototype. The

company hopes to find a prototype that satisfies customer
requirement; it performs safely and can be produced with the
budgeted manufacturing costs.

Developing and manufacturing a successful prototype can take

days, months or even years. Lab scientists must not only design the
products required functional characteristics but also they should
know how to communicate its aspects.
At this stage various decisions like:

Product Engineering

Branding

Packaging

Patenting

Formulating the communication programs etc.

When prototype is ready they go through functional and

consumer test.

Functional tests are conducted under laboratory and field

condition to make sure that the product performs safely and

effectively.

Consumer testing can take variety of forms from brining

consumers into a laboratory to giving them samples to use in their

business.

Consumers are given prototype to taste and their suggestions

are taken to make further changes in the product and to improve their

product. In short, Airson Ceramic Industries undergone consumer

test.

The final prototype of Airson Ceramic Industries scale was

available at 33% of a retail price of other scales of company toppings.

8. TEST MARKETING:

After management is satisfied with the products functional

performance, the product is ready to be dressed up with a brand

name, packaging, and preliminary marketing programs.

The purpose of market testing is to learn how consumer and

dealers react to handling, using and repurchasing the actual product

and how large the market is?

The amount of test marketing is influenced by investment cost,

risk factors, time pressure and research cost, so, not all the companies

choose the route of market testing.

 TECHNIQUES OF TEST MARKETING

CONSUMER GOODS INDUSTRIAL GOODS

1. Sales wave research 1. Product use test

2. Simulated test marketing 2. Trade show

3. Controlled test marketing 3. Distributors & dealers display

4. Test Marketing 4. Controlled test marketing

Airson Ceramic Industries scale is a consumer good. Technique

used by Airson Ceramic Industries for test marketing is Test Market.

It is a technique where company usually selects few representative

cities in which the company sales force will try to sell the product

with full exposure of advertising, promotion campaign, etc.

Airson Ceramic Industries selected cities like Morbi,

Ahmedabad, Surat, Baroda, etc. for test marketing with a discount of

rupees.
This method gives several benefits like:

More reliable forecast of future sales.

Company may deliver fault that escaped in product

development stage.

Limitation of this method:

There is difficulty in converting National media plans into

local equivalent.

There is problem of obtaining a set of market that reasonably

represents the country as a whole.

 9. COMMERCIALISATION:

Market testing gives idea to management whether to launch the

product or not. If company goes for product launch it calls for high

investment because to launch a new product into the national market

requires heavy spending on advertisement and promotion in the first

year.

Commercialization involves the following aspects:

When (Timings):

In launching a new product company has to think whether it is

a right time to launch the new product. The company faces 3 choices

First entry

Parallel entry

Late entry

Airson Ceramic Industries scale was launched on July 2008 to

grab the expanding market of scale range.

 Where:

The company must decide whether too launch the product in

single locality, region, national market or the international market.

Financial sound company may launch their product into full national

market. While small company first select one cities and slowly they

into other cities and they distribute in whole nation.

Airson Ceramic Industries scale was initially launched in

Surat, Ahmedabad, and Baroda and then they enter other cities and

now it is available in the whole nation.

To Whom:

The company must target its distribution and promotion to the

best prospect groups. Companies best prospect group is one:

Who are early adopters?

Who are heavy users?

Who would be opinion leaders?

Who could be reached at a low cost?

Airson Ceramic Industries scale target market is low budget

customer, ruff users, etc.

 How:

The company must develop action plan for introducing the

new product into the markets.

Airson Ceramic Industries scale was launched at a discount of

15% initially and now no discount is given to customers.

Thus, the entire process of new product development was

completed in around 1 or 1.5 year.

Adopters of Airson Ceramic Industries scale are in the trial and

adoption stage.

Main factors which affect the adoption of Airson Ceramic

Industries scale are:

Beliefs of customers

Traditional habits
 Marketing
Strategy
The product life cycle is an important concept that provides

insight into a products competitive dynamic.

Product life cycle is an attempt to recognize the distinct stages

in the sales history of the product. By identifying the stage of product

life cycle company can formulate better marketing plans and

strategies.

Most of the product life cycle portrays typical bellshaped curve

or S-shaped product life cycle, which is as follows:

Marketing Strategy
There are other forms of product life cycle also. They are:

Cycle-Recycle pattern

Scalloped pattern

Style pattern

Fashion pattern

Fad pattern
STAGE OF PRODUCT LIFE CYCLE

The different stages of product life cycle are:

1. Introduction Stage:

This stage starts when the product is newly launched. In this

stage profit are negative or low. Main objective of the markets is to

create product awareness. So, promotional expenditure are at their

highest ratio to sales.

Marketing Strategies:

Considering price and promotion marketing can pursue one of

the strategies in the introduction stage:

PROMOTION

HIGH LOW

Rapid skimming strategy Slow skimming strategy

Rapid penetration strategy Slow penetration strategy
 Airson Ceramic Industriess some products are in the

introduction stage. As far as its marketing strategies are concerned it

is as follows:

Price: It is priced very reasonably i.e. 33% of a retail price of

other scale of company.

Distribution: It is distributed through their distribution Gold

chain. They are given free training, advertising allowance; they

were given 10 t0 15% of margin.

Quality: It is placed as high quality product.

Promotion: They spend heavily on promotion to compete with

scale companys like Sansui, Atoc, AND, etc.

In short, as far as marketing strategies in introduction stage is

concerned Airson Ceramic Industries follows Rapid Penetration

Strategy.
2. GROWTH STAGE:

This stage is marked by rapid climb in the sales. Prices remain

where they are or fall, promotional expenditure is maintain or raised,

sales increases, profit also increases.

Marketing Strategies:

The company uses several strategies to sustain market growth

as long as possible. The company uses strategies like:

Add new features to the product

Enter new segment

Improve product quality

Lower the price of the product, etc.

In this stage company spends heavily on product improvement,

promotion and distribution but they forgo current profit in the hope of

making it in the future.

 Airson Ceramic Industries most of the product series are in

growth stage like Gold, Silver, Diamond, Industrial, retailer etc.

To sustain their market growth Airson Ceramic

Industries is:

Adding new features to their product.

Developing new varieties of existing product

Trying to enter new market segment by introducing new

product.

3. MATURITY STAGE:

At this stage the product rate or growth will down. This stage

lasts longer than the previous stages. Maturity stage can be divided

into 3 phase:

Growth Maturity

Stable Maturity

Decaying Maturity
Marketing Strategies:

In this stage company feels they can do very little. But

marketers can consider strategies of:

Marketing modification strategies:

The company should try to expand their market either by

increasing the number brand users or by increasing usage rater

per users.

Product modification:

They can also increase their sales either by improving the

quality, features or style.

Marketing mix modification:

They can also stimulate sales by modify prices, distribution,

advertising, sales promotion, services, personal selling

strategies.
 Airson Ceramic Industries scale of Gold series is in the

maturity stage. To increase the sale they are:

Trying to enter new segment by introducing with high

accuracy and high capacity.

Trying to increase more usage per occasion by

advertisement.

Introducing sale promotion scheme like gifts, discount,

contest, etc.

Improve their quality of product.

4. DECLINE STAGE:

In this stage sales of the product decline. Due to fall in sales

production decreases, price cuts and profit erosion. Some firms

withdraw from the market, while some withdraw form the smaller

segment.

Marketing Strategies:

Identifying weak product

Determining the marketing strategies

Drop decision

No products of Airson Ceramic Industries are in the decline

stage.

Competitors:

Sansui

ATCO

AND

OTHERS
Strengt Weaknes
h s

Opportuni Threa
ty t
SWOT Analysis
STRENGTH:

The main strength is that. The company is fully capable

to expand the finance resources by many ways even though the bank
finance is limited.
Now a days company is using the foreign machinery for
the production so that the level of wastage will be reduced.

WEAKNESS:

The main weakness for the company is the competition

from large scale industry affect the companys sale as well as its
market share.

OPPORTUNITY:

The company has opportunity to get best row material

like oil and enough for the production process for the government. So
this opportunity will have help in increase the profit level and
production level of the firm.

THREAT:

The companys main threat is that the governments

import policy is very liberal so it will directly affect to the sale of
company even in the domestic market like easy rule of import tiles
from other countries like China
 Conclusion
By taking the information of Airson Ceramic
Industries. we can conclude here that the position of the company is
on the top level in the context of floor tiles market because of the new
technology and proper location. As we know that export of wall tiles
are on increasing stage. The company can easily maintain stable
position with the comparison of MNCS if there will be proper quality
and proper quality control method.

And by analyzing various dealers, we can conclude here

that, the brand Airson Ceramic Industries. is well known as majority
of dealers are dealing with this brand because of the good quality and
comfortable price and complete information of the product to the
dealers.
 Bibliography

The book: Sanitation view

The book: Production Management

And many web sites were reffered for the

knowledge of past and present and future situation of ceramic industry
market.