Managing the Sales and marketing

1. Executive Summary

Businesses and ventures have stepped out of their local reach and nature, and have
had a truly global makeover. Every business owner or manager today aims to reach out to the
global audience with their offerings, and thereby increase their domain of working. In this
pursuit of developing as a global brand, the most crucial aid is marketing their offerings to the
target people across the globe. It includes Reaching to the users by marketing our products in a
way that need for that offering can be felt. It includes offering to their doorsteps with proper
channel of distribution. To achieve Success Company needs to have a disciplined network of
their distributors and strong sales force which can work in a direction to achieve organization’s
mission and vision.

In B2B Scenario Company need to understand different organizational structures so that it

becomes easier for the sales person to perform various sales and marketing related tasks. Sales
person should also maintain good relations with the distributor so that there can have
transparency in terms of quality and price with the customer company which further helps in
building good relations. The presented project report aims to bring about the current scenario of
Hand tools sector in India and Stanley Works India Pvt. Ltd. as a part of that sector followed
with role of sales person in the company which includes:

1. Distribution channel management.

2. Understanding different organizational structures.

3. Finding Business potential for STANLEY WORKS.

4. Customer relation management.

5. Other sales related roles.

In India there are number of companies operating who have a continuous requirement for Hand
tools to facilitate their regular operations. With increasing number of companies coming to India
and existing companies broadening their operations there will be a rise in requirement for Hand
tools in India which will make given sector to grow further. Various industries who feel the need
for hand tools are Aviation industry, Automobile industry, Agriculture sector, etc.

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2. Introduction

2.1 Industry Overview

Hand tools are type of non-power tools which are designed by experts following certain industry
standards such that they are used by experts as well as in Do-It-Yourself (DIY) projects, like
home repairs, general maintenance, woodworking, manufacturing, etc. Because of globalization
and rapid development the hand tool industry is facing new challenges related to worldwide
business invention and use of electronic business. Every single manufacturer, irrespective of its
size is having a close watch at the movements in its business environment, in order to adjust
activities accordingly. The industry is such that continuous innovations are always on track and
the products are designed keeping in mind the standard and the comfort of the end user.

2.1.1 Characteristics of the Industry

1. A Labor Intensive Industry: It is considered to be a source of employment, this

industry is considered to be basically labor intensive in nature, whose development is
considered to be of great importance for a self-reliant industrial structure. The
manufacturers of hand tools produce a comprehensive range of hand tools.

2. Energy Intensive Industry: Being a labor intensive industry, this industry is also an
energy intensive one. Recent study has found that companies are following various
energy efficient processes and technologies that can yield in energy savings.

3. Effective Contributor to the Economy: Hand tools industry has contributed to

economy in terms of development and technology up-gradation.

2.1.2 Factors to consider for the Growth of Hand Tool Industry

Hand tool industry is in growth stage. Developed countries like EU, USA have already been

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manufacturing and exporting hand tools since a long time. Developing countries like India,
China are coming up. Some factors that are to be considered for the overall development of the
industry are as follows:

1. Manufacturing centers should be equipped with the latest hand tool manufacturing
technology.

2. For small, medium scale entrepreneurs in the developing areas, credit should be made
available to them at lower rates of interest.

3. This industry is usually a part of hand and power tool industry as a whole. Hence, steps
should be taken to build up a Hand Tool Industrial Estate, exclusively for the Hand Tools
Units, in all countries.

4. Labor laws of all countries dealing with hand tools should be made more investor
friendly, especially for small entrepreneurs.

2.1.3 Driving Forces for Hand Tool Development

Use of Hand tools was there since long time and there has been continuous and innovative
change in pattern of Hand tools with respect to time. Many factors lead to development of Hand
tools.

1. Workers Safety and Health: This is a very important consideration in today's designing
of hand tools. Hand tools should be designed in such a way so that they reduce wear and
tear on the operator. Today, designers are coming up with more comfortable grips,
reducing the weight of the object, and making hand tools adjustable to different body
types.

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2. Chemicals: When tools are designed, manufacturers consider performance and the
environment. Besides considering health and cleaning factors, hand tools are also
produced nowadays using less chemicals, using less environmentally damaging products
which are not harmful to the human body and which becomes an environment friendly
product.

3. Cleaning: One of the driving forces for change in hand tool has always been to make
cleaning easier. For proper functioning and durability of hand tools, it is necessary keep
them clean after usage.

4. Hand Tools Standards: With the rapid advancement and expansion in the global trade,
standardization of various products is very necessary. The standards given to various
products help in expanding international trade which in turn bridges the quality gap
between the manufacturers, suppliers and buyers of different nations.

2.1.4 Consumption Patterns of Hand Tools

This depends on the following factors:

1. Price sensitivity
2. Supply chain dynamics
3. Rationalization
4. Product quality, design and safety
5. Service
6. Environmental factors

2.1.5 Companies Which Requires Hand Tools

1. Automotive

2. automobile

3. Electronic

4. Electrical

5. Tyre manufacture

6. Earth movers

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7. Tractors

8. Presses

9. Service center's

10. Defense

11. Etc.

2.2 Global View of Hand Tools Market

The worldwide hand tools and accessories market is dominated by North America and Europe,
followed by Japan. Notwithstanding of its low profile, hand tools and hardware sector is one of
the most consistently profitable industries across the world. Comparatively the industry is small
in terms of sales volume in comparison to other industries.

The global hand tools and accessories sector was expected to grow at around 4.6% annually over
the period 2001-2010 to touch US$19.9 billion by 2010. Europe and North America between
them share over 64% of the global hand tools and accessories market. Asia-Pacific region
(barring Japan) is likely to provide the highest growth opportunity over the period this period,
with a CAGR lingering around 9%, followed by Europe at 4.9%. Mechanics' service tools
segment constitutes the largest sector of global hand tools and accessories market with an
approximated share of 56.7% in 2007. The market of edge tools market is likely to grow fastest
with a CAGR of about 5.2% during the period of 2001-2010.

South East Asia constitutes a market with potential for exports from the saw manufacturers of
US and Japan. Indonesia is looked at as a significant market for the tool industry, as the country
has decided to restrict lumber exports and prepare its own lumber industry that would necessitate
large quantities of saws.

Germany is a prominent exporter of precision tools, which include hand tools, power tools,
grinding tools, molds, machine tools, and measuring instruments. In this market segment,
Germany is followed by Japan, the US, Asia-Pacific and France.

According to IBISWORLD industry report:

This industry is expected to remain in the decline phase of its life cycle over the foreseeable
future, but demand and revenue will pick up after a rough period during the recession. Renewed
construction, housing starts and consumer buying will contribute to this growth. Key input prices
will grow too, however, so operators will need to increase prices to maintain profit margins.
Import and power tool competition will continue to hamper demand.

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Key Industry Statistics (includes Hand Tools and Cutlery Manufacturing):

Key industry figures Year 2009

Industry revenue *9076.5 $ million
Revenue growth *-10.7 %
Industry gross product *5600.2 $ million
Exports *1879.2 $ million
Imports *4161.6 $ million
Total Wages *2335.3 $ million

Source: http://www.ibisworld.com/industry/default.aspx?indid=617#

(Hand Tools is having a Share of 35-40 % in given Statistics)

Global Presence of Stanley Works

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Source: Stanley’s annual report, 2009

Construction and Do-It-Yourself for Stanley Works

Source: Stanley’s annual report, 2009

2.3 Hand Tools Market of India

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The hand tools industry showed a 20-25 per cent growth in the '70s, and then jumped to 30-35
per cent in the '80s and early '90s. But since '97, there's been a downward side because of lack of
initiative in developing new and quality products with little attention to pricing is rendering
manufacturers uncompetitive. There has been an average growth of 17% per annum of the hand
tool market in India during yr. 2001-02.

Year Growth rate (%)

70’s 20-25%
80’s 30-35%
90’s 30-35%
2000 17%
2010 15-16%

Source: http://www.accessmylibrary.com/coms2/summary_0286-26430158_ITM

Now, India has a competitive advantage in the hand tool industry compared to other countries
because of easy availability of raw materials, entrepreneurship skills and skilled labor at
competitive wages. The hand tool industry as a whole is witnessing a shift of manufacturing base
from traditional manufacturing countries in Europe and Taiwan to the developing world and this
is a good sign for India to benefit.

At present hand tools sector is growing at a rate of 15-16%. An estimate says to this the premium
segment contributes 4-5%, while the mid segment comprises 45-55% of the overall market. With
global economic climate looking up and exports showing steady growth over the last few
months, the SME hand tool export sector in Punjab, which accounts for 70-80% of the total hand
tool exports from India, expect to bounce back in the next financial year.

"Steady business enquiries are flowing in from overseas buyers for export of hand tool products
made by Punjab SME tool manufacturers. Although it is still lower in quantum than what the
exporters received before the onset of the global economic slowdown, the present situation looks
better". Innovating products as well as diversifying hand tool product basket is likely to help
SME hand tool exporters and manufacturers to reach out to more buyers and get back the
momentum that they enjoyed during the years preceding the global financial crisis.

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2.4 Company Overview

The Stanley Works, The 166 year old company is a worldwide manufacturer and marketer of
tools, hardware and specialty hardware products for home improvement, consumer, industrial
and professional use. The company stills bears not only Frederick Stanley's name but also the
spirit and passion that drove him to succeed where others failed. The Stanley Works is
positioned to meet tomorrow's competitive challenges and continue as a leading worldwide
manufacturer and marketer. Stanley’s businesses are diversified in terms of products, geographic
spread and channels of distribution. They moved effectively to expand their products into new
market areas such as the Far East and Eastern Europe. Today, the Stanley name is known around
the world as a reliable guarantee of quality and value.

"The secret of this company's success is an open one -- all who will may avail themselves of it,
and all who do so will succeed -- one word tells it all and that one word is – Excellence.”

The Stanley Fulfillment System (SFS), created to encompass and improve upon Stanley’s long
tradition of operations excellence, is the heart of our business operations. It’s a continuous
improvement program focused 100% on the needs of our customers and a comprehensive
business system that guides the way they work every day. SFS is at once their blueprint for
success and roadmap for continued growth.

At the heart of SFS are three simple, customer-facing goals:

• Improve Service
• Increase Quality
• Reduce Costs

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Service, quality and costs have always been strengths at The Stanley Works. SFS is STANLEY’s
commitment to making them even stronger.

In 1843, an enterprise businessman named Frederick Trent Stanley

established a little shop in New Britain, to manufacture door bolts and
other hardware from wrought iron. Mr. Stanley was the first Mayor in
town; he brought New Britain rail service, gas lighting and a reservoir-
fed water supply.

In 1930, Stanley invented the tape rules. Stanley tools have built nearly every home, school,
church and hospital in America. Stanley Air tools build nearly every car and truck made in North
America. Millions pass through Stanley Automatic Doors each day.

With products sold in more than 130 countries, the Stanley® brand is recognized worldwide.
From crisis comes opportunity, the chance to emerge better than ever before. By remaining
committed to their guiding principles and transforming a legacy established over a century ago.

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Today’s Stanley is lean, flexible, diverse, and focused on long term growth. Today’s Stanley is
ready for tomorrow.

2.4.1 Products and Services

The Company’s operations are classified into three business segments:

1. Construction & DIY

2. Industrial

3. Security

All segments have significant international operations in developed countries, but do not have
large investments that would be subject to expropriation risk in developing countries.
Fluctuations in foreign currency exchange rates affect the U.S. dollar translation of international
operations in each segment.

Construction and Do-It-Yourself

The Construction & Do-It-Yourself (“CDIY”) segment manufactures and markets hand tools,
consumer mechanics tools, storage systems, and pneumatic tools and fasteners. These products
are sold to professional end users as well as consumers, and are distributed primarily through
retailers and distributors (including home centers, mass merchants, hardware stores, and retail
lumber yards). Hand tools include measuring and leveling tools, planes, hammers, demolition
tools, knives and blades, screwdrivers, saws, chisels and consumer tackers. Consumer mechanics
tools include wrenches and sockets. Storage systems include plastic and metal tool boxes and
storage units. Pneumatic tools and fasteners include nail guns, staplers, nails and staples that are
used for construction, remodeling, furniture making, pallet manufacturing and other applications
involving the attachment of wooden materials.

Industrial

The Industrial segment manufactures and markets: professional and automotive mechanics tools
and storage systems; hydraulic tools and accessories; plumbing, heating and air conditioning
tools; assembly tools and systems; and specialty tools. These products are sold to industrial
customers and distributed primarily through third party distributors as well as through direct
sales forces.
Professional and automotive mechanics tools and storage systems include wrenches, sockets,
electronic diagnostic tools, tool boxes and high-density industrial storage and retrieval systems.

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Hydraulic tools and accessories include hand-held hydraulic tools and mounted hydraulic tools

used by scrap yards, contractors, utilities, railroads and public works as well as mounted
demolition hammers and compactors designed to work on skid steer loaders, mini-excavators,
backhoes and large excavators. Plumbing, heating and air conditioning tools include pipe
wrenches, pliers, press fitting tools, and tubing cutters. Assembly tools and systems include
electric and pneumatic assembly tools; these are high performance precision tools, controllers
and systems for tightening threaded fasteners used chiefly by vehicle manufacturers. Specialty
tools are used for assembling, repairing and testing electronic equipment.

Security

The Security segment is a provider of access and security solutions primarily for retailers,
educational, financial and healthcare institutions, as well as commercial, governmental and
industrial customers. The Company provides an extensive suite of mechanical and electronic
security products and systems, and a variety of security services. These include security
integration systems, software, related installation, maintenance, monitoring services, automatic
doors, door closers, exit devices, healthcare storage and supply chain solutions, patient
protection products, hardware (includes hinges, gate hardware, cabinet pulls, hooks, braces and
shelf brackets) and locking mechanisms. Security products are sold primarily on a direct sales
basis and, in certain instances, through third party distributors.

2.4.2 Awards and Recognition

A steady stream of new and innovative products is the lifeblood of

this company. In 2007, Stanley introduced more than 100 new
products, many of which have won awards for great distinctions. The
company itself has been triumphant in winning numerous awards
throughout the years for packaging, design innovation,
communication and advertising. Most recently, Stanley won 4 Golden
Hammer Awards in 2007 and also won two IDEA awards in the 2007
International Design Excellence Competition.

Stanley was the recipient of the following four awards at the 2007 Golden Hammer Awards
Ceremony:

Year 2009:

1. Installation Company of the year award.

2. Best sales broacher.

3. The Sammy Awards.

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Year 2008:

1. The innovator of the year award.

2. The Business to Business communication award.

Year 2007:

1. The Vendor of the Year Award.

2. The Innovator of the Year Award for overall new product development in all
categories.
3. The Gold Golden Hammer Award for the Hand Tools category.
4. The Business to Consumer Communications Award for the Alien commercial.

Year 2006:

1. The Gold Golden Hammer Award for the Hand Tools category.
2. The Business to Consumer Communications Award for the Stanley® Sharpshooter®
Staple Gun World's Weakest Man campaign.
3. The innovator of the year award.

Both the Gold Golden Hammer for the Hand Tools category and the Business to Consumer
Communications awards are the highest awards in their category. For the Innovator of the Year
award, Stanley was voted number one in new product innovation across all 36 product
categories.

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2.4.3 Acquisitions

1. 1937: Stanley Works entered the UK market with the acquisition of J.A Chapman of
Sheffield.

2. 1984: Stanley Works purchased Proto from Ingersoll Rand and it becomes Stanley
Proto.

3. 1986: Stanley Works acquired Bostitch from Textron.

4. 1990: Stanley Works acquired Goldblatt and ZAG Industries.

5. 1992: Stanley Works purchased the Chatsworth, California-based Monarch Mirror

Door Co. Inc.

6. 2000: Stanley Works acquired Blick of Swindon, England.

7. 2002: In October, Stanley Works acquired Best Access Systems of Indianapolis.

8. 2004: the acquisition of ISR Solutions, Inc was announced.

9. 2005: In January, the acquisition of Security Group, Inc. An additional acquisition of

Precision Hardware was made in 2005.

10. 2006: Stanley furthered its corporate assets in the security market by acquiring HSM
Electronic Protection Systems.

11. 2007: Stanley acquired OSI Security of Chula Vista, California.

12. 2008: Stanley announced the acquisition of Sonitrol followed with acquisition of Xmark
Corporation.

13. 2009: Stanley announced a merger with Black & Decker.

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2.5 Stanley Works in India

Stanley India, a fully owned subsidiary of Stanley Works, U.S. having its headquarters in Delhi,
started its operations in the year 2007. They import their own products manufactured in different
countries and sell those in Indian Market with the help of its extensive chain of distributors &
dealers. In the past one year, Stanley has been able to appoint more than 200 + distributors all
over India.

All the products of Stanley are categorized into 3 segments: Hand Tools, Hardware, Assembly
technology and Hydraulics. In India, Stanley has launched nearly 2400 products, and is in the
process of launching more. Presently, Stanley India is focusing on Industrial Tools and
Hardware business in India.

The Indian operations of Stanley involved:

1. Laser Products

2. Hardware

3. Hand Tools

4. Proto

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2.5.1 Geographical reach in India

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-Stanley Head Office

-Stanley India Warehouse

-Proto Distributor

-Hardware Distributor

-Stanley Hand Tools Distributor

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2.5.2 Stanley India Organization Structure

Kuldeep
Bharadwaj GM

Finance HR and Sales & AM- material

Assistance Admin. Officer marketing Sales planner OFC
manager manager

Finance Finance Warehouse Customer Demand

executive executive officer care planner

2.5.3 Stanley India Sales and Marketing Org. Chart

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2.5.4 Competitors for Stanley Works

The major competitors for Stanley in India are:

1.Taparia
2.Everest
3.Eastern
4.Jalani
5.Vanley
6.TVS
7.Snap on
8.Makita

Apart from these six brands there are other brands too like Tonichi, Godrej, Gudor, Ingersoll
Rand which gives tough competition to Stanley tools in the market.

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3. Project Profile

Given profile included working as a Sales officer (Domestic) for the company in a given
territory in which we have to report to our domestic sales manager.

This project report essentially is “Managing the Sales and Marketing for Stanley Works”.
The principal essence of such study is to understand the role of a sales officer in terms of
generating sales as well as managing the distribution network for the company. It would
essentially deal with understanding the daily tasks that are performed by the sales officer which
includes pre calling, getting an appointment, giving presentation, generating enquiry and closing
sales.

It Includes

1. Performing Sales and marketing activities for Industrial sales in assigned territory.
2. Try and help locating new clients within the assigned territory.
3. Compile and analyze sales statistics and study the market potential for STANLEY hand
tools.
4. To submit the business potential report and organizational chart.
5. All major industries are to be covered to see scope for hand tools.
6. Build business through Direct Industrial customers by meeting in Purchase department,
Manufacturing department, Maintenance department, Logistics department, Project
Engineers and shop floor teams who are Tool users.
7. Provide solution to customer and make presentation about effective use of product and to
communicate about product features and benefits.
8. Monitoring Competitors activities and marketing.
9. Gathering information about the requirement in different companies by visiting them.
10. Trying to impress upon Corporate Clients in Pitch presentations and to generate business
from Industrial sector.
11. Building customer relationship.

After instating a brief erudition on the preliminary part, as to how the process goes the role of the
sales person doesn’t end here rather it includes further follow up or entertaining the customer
even after the sales is made in the company.

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Data and Databases

It requires analyzing and working upon different sampling data and sampling techniques.
Different sampling data includes both primary as well as secondary data followed with different
data gathering tech. involving interviewing the client during presentation as well as following
the Snowball Sampling Technique and Judgmental Sampling Technique to find out other
data sources.

Different Sampling Techniques

1. Snowball Sampling Technique: It is a technique used in order finds other departments

within the company which are in requirement for given product.

2. Judgmental Sampling Technique: By analyzing the scenario and experience in the field
it is analyzed upon which sampling data or which data source is right in order to get the
primary data.

Different Data Types

1. Internal Secondary Data: Locating the potential companies from the data available with
the company and finding the contact details of the right person in that potential company.

2. External Secondary Data: Finding the new potential companies and contact information
of the respective person in that company.

3. Primary Data: It is of more use for STANLLEY WORKS as it will help in mapping the
current requirement for the industry (It included both internal and external primary data).

Data Collection Method

Interviewing: It is the major method for collection of primary data where to get the insights of
the company interviewing that person is required. Interviewing the person is done at the time of
giving presentation.

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3.1 Methodology:

It involves meeting different industry persons and giving presentation about our product and
company to them so to commence number of steps in order to meet the task successively. As
there are number of departments in different companies so from pre presentation to getting the
requirements we need to follow different methodologies.

Different methodologies involve:

1. Making telephonic calls in order to gather information about different operating

departments in an organization and doing Telephonic Marketing.
2. Getting an appointment from the person who looks in the matter of Hand tools purchase
in that department.
3. Asking for their requirements and the kind of tools they are interested in followed with
that in other departments also while giving presentation i.e. Interviewing (Annex: 3).
4. Collecting primary and secondary data in order to find out the potential for the company.
5. Meeting distributor to know about the latest requirement in different companies.
6. Discussing about the quality of products STANLEY have in comparison with that of
other brands (Brands Comparison).
7. Personal Selling.
8. Try and getting the requirements from the given department followed with forwarding it
to the distributor for preparation of quotation.
9. Being in continuous touch with the respective person to maintain customer relations
(CRM).
10. Coordinating with other sales officer in the same region in order to have maximum
efficiency in work.

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4. Objective of Study

Primary Objective

1. Understanding the process involve in sales in B2B scenario.

2. Understanding the distribution channel management of STANLEY WORKS.

3. Trying to find out the potential for Stanley Hand tools market in existing market of Vadodara
. region, Gujarat.

4. To understand the nature of purchase in industrial buying.

Secondary Objective

1. Understanding different organizational structures.

2. Understanding Customer relation management better.

3. Learning the corporate culture of working.

4.1 Marketing Objective

This project mainly focuses on Managing the Sales and Marketing for Stanley Works, so as
to understand the given objective a profile of sales officer is chosen whose primary job is to do
the marketing of our company to potential clients and by interaction with them business potential
for the company can be estimated. By this project an attempt was made to find out what is
required behind managing the sales and marketing for any company.

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5. Observations

5.1 Ongoing Data and Sales Activities

In the span of two months it has been observed that the company‘s activities regarding sales are
undertaken via three steps which includes Data collection, Telemarketers’ call and appointment
procure, sales call. Also the company has two formats to do so i.e. either using the primary data
accessed by interviewing company people or by getting it from the secondary data maintained by
STANLEY itself. In some cases the distributor plays a vital role in providing the information
about the company, its type and kind of requirement which exist in various potential companies.

5.1.1 Approaching the Potential Client:

This is the approach which is conventionally used by the company’s sales officer and is also the
most productive. It involves 3 steps wherein the company personnel work together to enroll new
members.

The conventional method through the 3 steps is as mentioned hereunder:

1. Data Collection: The Company uses the secondary data availed by external secondary
source at the initial stage and at the later part by continuous interaction with company
people they start generating primary data for further proceedings.

2. Appointment Procures: The data collected is used by the sales officer who calls up
company person to get appointment and making that person aware about our brand at
initial stage. Later they for an appointment so that they can visit them and give them a
presentation regarding the company products.

3. Sales Call: This is the final step wherein the consultants visit the potential clients and
give them a detailed presentation about the products and guide them regarding the
product they should choose and will best suite them.

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Sales Activity Involves

5.2 Distribution Channel Management

Role of sales officer while managing distribution channel management involves being a mediator
for client and distributor as well as company and distributor. It includes informing distributor
about the particular stock to be maintained as well as informing client about which product can
have some other replacement. On the other hand when it comes to company he/she can be a right
person to judge the performance of distributor and report it to the company.

Sales officer brings in the inquiry from the potential client and forward it to the distributor and at
the later part he is the person who gets the quotation made by the distributor and make it avail it
to the customer.

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5.3 Different Organizational Structures

Different organizations have different organizational structures which involves different

department controlled by one superior department or so. In order to make an effective sales call
it is required to understand the organizational structure of the client so that awareness about the
company and their products can be made to the right person in the client’s company. Sometimes
it can be observed that in order to have an effective sales call we need to meet no. of persons in
the same department or meeting some person in some head department controlling other sub
departments.

5.4 Way of Purchase

In B2B scenario way of purchase is complete different with that in B2C purchase. It is observed
that at the initial stage the price of the product is not revealed and once the sales officer gets
some inquiry for some products, it is forwarded to the distributor and the quotation is submitted
back to the client which makes the client to decide upon the idea of purchase later keeping in
mind the worth of the quotation.

5.5 Post Purchase Behavior

The role of sales officer doesn’t ends once the sale is made to the client because it is required to
keep good relations with the client in order to have any purchase in future from the same client.
It includes keeping a continuous track of the performance of the product delivered to the client
and guiding upon the right way of using the given delivered product effectively.

5.6 Corporate Culture of Working

It requires lot of dedication, Self-motivating, less egoistic and having a good communication
skill.

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6. Analysis

6.1 Potential for Stanley works

The analysis is made on the basis of companies visited during the period of two months of
internship. This two months of internship included visit to 17 different companies including
various big names like Bombardier, Birla copper, blue star, Indian Air force, etc. On the basis of
the potential of the company and the future investments coming up in Vadodara, Gujarat analysis
is made in terms of business potential for Stanley Works and the future plans to be adopted.

No. of Companies visited 17

Aware of Stanley works 11
Companies shown interest in Stanley 13
products
Annexure:
1

This clearly shows that the marketing policies of Stanley are good in terms of making its
presence felt by other companies in such a short period of time. Stanley requires further
enhancing their marketing in order to make their presence felt in market by every company.

Given stats reveals that trend is changing showing that companies are interested in using branded
tools which deliver precision work, good quality being ready to pay for quality product.

By analyzing the potential of the companies visited during two months of internship it can be
observed that business potential for Stanley works within this band of company is good which
includes tapping into different kind of industries like chemical, glass, defense services,
manufacturing, etc.

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Year Investment
1988-97 37467 crores
1998-07 52819 crores
Till 2010 66000 crores
Source: Industries Commissioner 2007-08, Govt. of Gujarat

Given analysis of data suggest that Gujarat has proven to be the industrial hub of investment so
with coming up of new industrial setups the growth in potential for Stanley Works is expected at
a greater extent in future.

As per the factor analysis (Annex: 2) made for the company visited it is clearly observed that the
Scope for maximum sale of hand tools for Stanley Works is in industries which are into
manufacturing and having manufacturing plants like Bombardier, Birla copper followed with
that in defense sector with minimum in chemical industries where hand tools are required for the
purpose of maintenance only.

With new manufacturing plants coming up at places near Vadodara the requirement for hand
tools in this region is expected to increase by 30-40 %

When any organization is into manufacturing or having several departments having individual
needs for tools the purchasing in such company is decentralized where as in case of various
organizations like Indian Air force the purchasing for tools is centralized. While interviewing it
was found from the data collected that the requirement for hand tools is growing in all the
industries in comparison with that of previous year. SO the scope for increasing the market share
is more for Stanley.

No. of Companies Visited Inquiry Generated

17 3

It suggest that even in the mid of the financial year few companies are having need for tools. At
present the no. of companies requiring hand tools are less but by seeing the market potential it is
analyzed that by strong promotional activities and follow up the percentage of companies
generating inquiry can be increased which is very less at current stage.

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Analyzing statistics available for Agriculture related to use of Hand tools

Percentage of farmer households accessing information through this source for tools

Source Percentage
Other farmers 16.7 %
Dealers 10.83%
Radio 10.74 %
Source: National sample survey organization, Report No. 499(59/33/2), 59th round

Percentage of farmer households accessing information through ‘other progressive farmers’ for
tools

Region Percentage
A.P. 34 %
Gujarat 30 %
West Bengal 25 %
Source: National sample survey organization, Report No. 499(59/33/2), 59th round

Percentage of farmer households accessing information through ‘input dealers’ for tools

Region Percentage
West Bengal 36 %
A.P. 30 %
Gujarat 24 %
Source: National sample survey organization, Report No. 499(59/33/2), 59th round

Percentage of farmer households accessing information through ‘Radio’ for tools

Region Percentage
J&K 36 %
Kerala 31 %
Assam 29 %
Source: National sample survey organization, Report No. 499(59/33/2), 59th round

It can be analyzed that good percentage of farmers are using different data sources to know about
different and new hand tools so by using such data sources at a greater extent the mind share of
Stanley can be increased when it comes to hand tools required in Agriculture sector.

In Gujarat Information gathered from dealers and progressive farmers is quite acceptable so It
can be a good source of making others aware of STANLEY tools in agriculture sector. With
increase in emphasis on agriculture in Gujarat the scope for Stanley is widened.

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6.2 SWOT analysis (Indian market)

Strength

1. Strong Brand name

2. Wide category of tools

3. No. of brands in Stanley’s umbrella

4. Following ANSI and DIN standards

5. Strong distribution network

6. Dedicated sales force

Weakness

1. High price

2. No manufacturing setup in India

3. Poor inventory management

Opportunities

1. Westernization of Indian culture ( use of tool kits in home)

2. Growth in hand tools dependent industries

Threats

7. Local brands

8. Duplicity of Stanley products

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7. Findings

During the internship process at Stanley works, the major point that i could notice is that a test
marketing nature is followed by the company in India. This is much visible to outsiders because
the company involves only a few permanent officers and all others are interns in the
organization. This nature of the company made me so eager to know more on this strategy. Thus
a close talk was done with my internship guide at the company through which i could identify
that the organization is only served by few people that too everyone young. This means that
company is trying to use the skills of the young people to make a better brand awareness as fast
as possible.

Also the major objective of the company Stanley works in India is to introduce their power tools
and make a competition with the major power tools supplier in India. For that purpose they have
used their hand tools portfolio to make a better brand awareness. On a better result on this test
the company is going to introduce their power tools and other higher quality hand tools in the
market of India.

With the wide range of brands in the umbrella of Stanley works like Facom and Proto company
is trying to meet the needs of high precision tools required in industries by supplying products of
brands available in their umbrella. With over 200+ distributor spread across all over India they
are managing their supply of hand tools in industry market.

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Note: It was found that while tapping some new customer more discounts is given during their
first purchase in order to make that client use their products. Once the client starts using their
products from next time the discount rate is decreased.

8. Recommendations and Conclusion

Based on my experience and research conducted, I have identified that the major issue
concerning us is that the brand Stanley is their visibility in comparison to competitors in the
followed with few flaws in their inventory management. I have the following
recommendations which I have divided as short term and long term implementation to face the
current situation.

8.1 Short Term

1. Newsletters: By creating our own email newsletter, we could send out industry news and
tips to suspects in our market. Since we will be on your prospects' minds more often than our
competition, eventually, our sales leads will turn into actual sales. Articles about latest trends
in tools industry, helpful solutions and how Stanley plays a helpful role.

2. Customer Feedback: It’s important to get feedbacks from our existing customers on a
regular basis. This can be done by asking them how is their product performing, and if any
problems, be ready to offer a solution. This way we build a good relationship with our existing
customers. Small questionnaires through e-mails, or visits to the plant to see if customer is
satisfied.

3. Create a Marketing Calendar and maintain it consistently: Scheduling marketing

activities that take place weekly, bi monthly, monthly and quarterly will help us to avoid
sudden planning or having ineffective seminars. And, by doing so, marketing will become

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easier since it becomes a regular part of our business life. Regular seminars, for example once
a month or once in two months, every 2nd Saturday. This will help the industry relate brand
Stanley with an info provider and just another company trying to sell its expensive products.
Plus it will be like a ritual followed by Stanley and keep the employees motivated and on their
feet.

4. Leaf Lets & Brochures: Equip the sales man with enough amounts of product catalog,
brochures and leaflets which he can leave at customers place.

5. Freebies: Provide customers with freebies like table calendar or year book, which the
customer uses and Stanley stays at top of mind recall.

8.2 Long Term

1. Internet Marketing: Pay per click, Social networking sites, blogs, links, search engine
optimization. These are inexpensive ways to make the Stanley brand visible, which we have
not used yet. Sites like Facebook, LinkedIn etc are being used extensively by the biggest of
companies, so what is stopping us from capitalizing the huge potential of such cost-free
marketing. This will also help spread brand awareness before Stanley plans to increase its
operations in India.

2. Increase the number of Sales Team: Presently the sales team for Karnataka operations
has only two dealers and one BDE, hence this BDE has a hurricane task to cover the entire
state which is highly impossible. Thus Stanley should increase strength of its sales team.

3. Build a Referral Team: Good referral team involves existing satisfied customers, vendors,
distributors, some retailers, auxiliary services like service personnel who can suggest usage of
Stanley Tools for better performance and less break down maintenance and other technical
issues.

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4. Local Office Setup: A well-organized local office setup is recommended to streamline the
operations. The local employees, distributors and dealers will have a common place to have
their periodic meetings, which will ensure identifying loopholes, potential business areas and
strategizing further steps at regular intervals.

5. Inventory Management: Asking sales officer about which type of hand tools in industry
have more usage so that the situation of getting out of stock for particular hand tools can be
avoided.

6. Information Sources: Making farmers aware of different hand tools and STANLEY by
using different information sources like radio, dealers as there is a huge scope for hand tools in
Agriculture sector also.

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Interview questions

1. Are you aware of STANLEY WORKS?

2. What kind of tools you require?
3. Which company tools you are using for the past 1 year?
4. What are the other departments in your company requiring hand tools?
5. What kind of requirement you have?
6. By what time your company will be having next requirement.

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Business potential report format

Company Information Sheet

1. Company name:

2. Address:

3. Phone no:

4. Email id:

5. Nature of Business:

6. Annual Turnover(FY2009):

7. Hand tools Purchase( FY2009) : Products:

8. Name of Key Executives

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Sr No Depart Name Designation Contact No E Mail ID

1. Purchase

2 Maintenance

3 Production

4 Vendor
Development

5 Quality

9. Major Supplier of Hand tools (I):

10. Major Supplier of Hand tools (II):

11. Products explained:

12. Quotations cited for:

13. Major Competitors :

14. Scope for Stanley Hand Tools:

15. Future action plan for the company:

Date: Signatures:

Place: Name:

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