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“MARKET STUDY ON PRODUCT LINE EXTENSIONS

AND CONSUMER PROMOTIONS STRATEGY FOR
TTK PRESTIGE”

Report by
Neeta Padaki (Roll No 6090)

Work carried at MAA BOZELL, Bangalore

Submitted in partial fulfillment of the requirement of Summer

Internship Programme

Under the supervision Of Akshar Peerbhoy

SDM Institute for Management Development Mysore, Karnataka, India

(June 2007)

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Certificate

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EXECUTIVE SUMMARY

T i t l e : “MARKET STUDY ON PRODUCT LINE EXTENSIONS AND

CONSUMER PROMOTIONS FOR TTK PRESTIGE

Supervisor: Akshar Peerbhoy

Project undertaken by: Neeta padaki
Roll No: 6090
The project is on TTK Prestige (Client of Maa Bozell) product line extensions and various
promotional tools used to attract the customers to the store. The analysis is done keeping in
mind the internal and external aspects of Prestige smart kitchen outlets (which turned out to
be a defining moment in the brand's life). External analysis was conducted by distributing
the questionnaire to the people especially to house wives to get an insight for the
requirement of prestige products. Internal analysis was done within the retail outlets by
interacting with the owners of the outlets and also the company details available on the net.

The analysis seeks to answer the questions like, if TTK prestige would come up with
extensions of its product line which would include all the kitchen ware product items will
the customers buy them? Would there be same amount of patronage as is seen in the case
of pressure cookers? What are the promotional tools that prestige should adopt to attract the
consumers to the store?
In a nutshell the project aims at providing a complete solution to the entire kitchenware
needs in detail.
Signature of Student Signature of the supervisor

Neeta Padaki Mr. Akshar Peerbhoy

Strategic planner- national
MAA Bozell Communications Ltd

Bangalore.
Date: 15/06/2007

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ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my
guide Akshar Peerbhoy and Prof.Malathi Sriram for their exemplary guidance, monitoring
and constant encouragement throughout the course of this Thesis work. The blessing, help
and guidance given by them time to time shall carry me a long way in my journey of life on
which I am about to embark.

Sincere appreciation is extended to Shri M N Raj and Shri Easo Maa Bozell India Ltd for
their immense help during the course of this work. In those moments, when things used to
turn dark, his presence had a soothing effect.

I am grateful to the retail outlet owners of prestige smart kitchen situated in Bangalore for
providing me help in search of the thesis.

I record with appreciation the help rendered by all the respondents who filled the
questionnaire.

My several well-wishers helped me directly or indirectly; I virtually fall short of words to

express my gratefulness to them. Therefore I am leaving this acknowledgement incomplete
in their reminiscence.

Neeta Padaki

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Part A Index/Table of Contents

1. .
Title
_____
Page
No
Certificate…………….
……………………………
……...………….i
Executive
Summary…………………
……………………………
…ii
Acknowledgements……
……………………………
……………….iii

Introduction to the
Study………………………
…………………….1
Objective of the
study………………………
………………………...1
Methodology……………
……………………………
………………..2 Scope of
study………………………
……………………………
……2 Limitations of the
study………………………
………………………2

Part B
1. Industry
Profile……………………
……………………………
…... 3
2. Company Profile –
MAA Bozell
Communications…………
………4
3. Company Profile -
TTK Prestige
Limited……………………
……. 8
4. Product Profile
……………………………
………………………….9
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Part C
5. Theoretical
Construct………………
……………………………
…17

Part D
6. Analysis and
Interpretation…………
…………………………….
18

Part E
12. Findings…………………………………………………………….
13. Recommendations………………………………………………….
14. Conclusion………………………………………………………….

Annexure…………………………………………………………
References…………………………………………………………

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PART A
Introduction to the Study:

The project is an initiative by Maa Bozell whose client is Prestige, to understand in detail
about the various aspects of Prestige smart kitchen. This project mainly focuses on current
demand for prestige products in the market and extension of its product line in order to
capture the market completely in the kitchenware sector also the various tools that should
be adopted by prestige outlets to attract the customers to the store.

kitchenware industry is highly fragmented market and making the companies presence felt
in the market is indeed very challenging. Prestige wants to capture the market by providing
all the kitchenware items available to the consumers. Prestige has already made a beginning
by the brand prestige smart kitchen which includes items like Cooker, Hobs, Toaster, Glass
tables, Mixer grinder, Chimneys, Microwaves, Knife sets, Pressure Handi, Kitchen tools,
Pressure kadai, Barbeque, Cookware, Irons, Rice cookers, Kettles, Food processor,
Sandwich toasters, Oven toaster griller, Pop up toasters. In the near future prestige wants to
come up with many more items like pepper and salt box, plates, spoons, glass, jugs, roti
maker etc.

Hence the project gives an idea regarding all the aspects relating to the PSK products and
various promotional tools by identifying the necessary objectives in the course of the study.

Objective of the study:

¾ To find out the need for the product line extensions for TTK
prestige products
¾ To find out what attracts the consumers to the store
¾ To identify the type of customers who visit the PSK outlets
¾ To measure effectiveness of various promotional vehicles used by
TTK Prestige.
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¾ To measure product performance across various category.

¾ To identify the satisfaction level of customers.

Methodology:
The research design adopted for the project is descriptive research. The main objective of
the project is to find out the customer want for other kitchenware products apart from the
existing ones. A qualitative study is being done to find out the same. The survey was
conducted only in Bangalore region. The time taken to complete the project was
approximately two weeks. The tools used in the primary data collection are
¾ Questionnaire was distributed to the customers
¾ Non-interventional tool such as observation was used in the project to
observe the customer and staff in the outlet.
¾ In-depth interview conducted with one of the dealer and Prestige smart
kitchen owner.
¾ Secondary data is being used like the internet.

Scope of the study:

The project covers details about the various products and promotional tools
activities used by] TTK Prestige.
The study is restricted to Indian continent and precisely in Bangalore situated
in Karnataka.
The report could be further made used for developing the communication
strategy for the PSK outlets.

Limitations of the study:

The response got from the survey cannot be used to conclude the study because
the survey was conducted only in Bangalore city and the number of respondents
was very less.
Time and money was a constraint in doing a study of the PSK outlets across
India
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PartB: Industry Profile

The kitchenware industry in India:
India is one of the huge markets for crockery and kitchenware comprising of many Indian
manufacturers, exporters and suppliers. These vendors are scattered all over India, catering
to the requirements of a very large diversified market.

Kitchenware is simply described as any tool that is used for food preparation or cooking.
Kitchenware also include a number of kitchen requirements, such as tea coffee accessories,
steaming and smoking utensils, etc. Kitchenware includes various types of pans and pots
which are used for various cooking purposes Some of these toll is a must have for every
kitchen as they make cooking more fun, less tedious and less time consuming. An endless
number of kitchen tools are coming into the marketplace. These tools are available in
several materials depending on the purpose it is made for.

India being such a culturally rich and diverse country has a special place for beautiful and
utilitarian pottery & kitchenware. It is a bustling market for the same, especially in the
auspicious season of Deepawali, a festival that marks the gift exchanging of the level,
matched only by a festival like Christmas internationally. An approximately 10 crore
rupees per month worth of Pottery, Kitchenware & Glassware is sold specially during the
season of Deepawali making India a very lucrative market for such a business for
everyone.

The Indian cookware industry continues to respond to consumer demand for quality,
durability, style and attention to health concerns. Multi-versatile cookware that functions
as bakeware, serveware and dinnerware is becoming increasingly popular as the casual
entertaining trend continues. Indian crockery market is very much fragmented and
dominated by unorganized sector. The market is estimated to be around 43000 MT of
which the unorganized sector is commanding around 60 % share. Crockery market consists
of pottery, kitchenware and tableware.

Kitchenware and crockery can be segregated into cookware, cutlery sets, fast cooking
equipment, multipurpose steam cooking equipment, quality stainless steel equipments,
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trouble free kitchen equipment, consumer durables, mixers -n- grinders, nonstick cookware
range, pressure cookers, pans and tavas, bone china crockery sets and dinnerware. Over the
years, the demand for crockery has increased with rising income levels, double-income
families, changing lifestyles, availability of credit, increasing consumer awareness and
introduction of new models. Most of the segments in this sector are characterized by
intense competition, emergence of new companies, introduction of state-of-the-art models,
and price discounts and exchange schemes. The biggest attraction for companies is the
growing Indian middle class. This market is characterized with low penetration levels.
Domestic companies compete on the basis of their well-acknowledged brands, an extensive
distribution network and their familiarity with the local market conditions. While
kitchenware made of steel has been around for many years, crockery and bone china are
beginning to make their presence felt in Indian households.

Company profile:
Maa Bozell Communications ltd:
MAA Communications Bozell Limited is an offspring of Marketing Advertising
Associates (P) Limited, in the business of nurturing brands for more than 40years. It was
incorporated in 1961 and was one of the first Indian advertising agencies. The original
company was promoted by the late Ayaz Peerbhoy, the first Indian General Manager of J.
Walter Thompson and went on to head Everest as its Managing Director and thus founded
MAA Private Limited in 1960. MAA South Private Limited started in 1981 and MAA
Communications in 1986. The company was subsequently renamed as MAA
Communications Bozell Limited, after Bozell picked up a 20% stake in February 1
994.MAA also started a division called MAA Wellness, which specialise in health care
communication.

Maa Bozell is one of the oldest, most respected advertising agencies in the country. It has
created and nurtured some of the leading brands. It is Acknowledged as a pioneering and
path breaking agency the first to enter into an international affiliation (with Bozell
Communications Worldwide – part of Interpublic Group, the second largest agency
network in the world) Maa Bozell is the,
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¾ The first agency with the vision to diversify into integrated communication
solutions - PR, Direct Marketing, Retail and Interactive

¾ The first agency to start a healthcare advertising division

¾ The first agency to set up a south-specific vertical - Dakshin

¾ It Ranks No 12 in All India of communication companies

¾ Turnover of Rs 175 Crore

VISION
To be known as an agency that earns success and respect by managing quality to
continuously add value to business relationships.

MISSION
The focus of our business is our client’s business- we will, always provide them with
innovative, relevant and consistently superior communication services to give our
clients/their brands a competitive edge to make them market leaders.
To manage the quality of our services so that we prosper as a business and in doing so
ensure the prosperity of our shareholders, our employees and our suppliers.

Branches

MAA Bozell has branches in all major metro-cities in India. Following are the six
branches:

New Delhi
Mumbai
Bangalore
Chennai
Cochin
Coimbatore
Hyderabad
the top 10 agencies in the country and has the following centralized departments:
man Resources
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ance
ormation Technology
Departments

All the branches has the following common departments:

Client Servicing
Creative
Media Operations
Studio
Production

Bangalore is the head office and is the only agency that is head quartered in South India

Group companies

¾ MAA Bozell - Advertising Agency

¾ Corporate Voice Shandwick - Public Relations
¾ Sabre Marketing Services Pvt. Ltd.e - Direct Marketing
¾ RAMMS India Pvt. Ltd. - Retail Marketing Services
¾ TAG Media Network Pvt. Ltd. – In Store Television
¾ Sirius Communications - Below the Line Solutions

MAA Communications BOZELL- Clients

¾ Mantri Developers
¾ Syndicate Bank
¾ N Ranga Rao & Sons (Cycle/ Lia Agarbathies)
¾ TTK Prestige
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¾ Java Green
¾ Logix Microsystems
¾ Andaman and Nicobar Tourism
¾ Fowler Westrup
¾ Valdel retail (Family mart/Daily’s/Centra)
¾ Hero Honda (South)
¾ Maruti Co ltd
¾ Tata Motors (South)
¾ Manipal hospital
¾ Alcon Laboratories India Limited
¾ Coromandel Fertilizers
¾ Tecumseh India Pvt Ltd
¾ ICICI Car Loans

As the Indian advertising industry grows rapidly, advertisers are increasingly demanding a
multitude of additional services like direct marketing, public relations, merchandising,
brand Consultancy, media buying and production / printing from their agencies. This saves
advertisers time and resources in trying to deal with 8-10 different organization. While
most agencies have started providing these services by forming separate departments
within the same organization, MAA has decided to float separate companies for each of the
functions (keeping MAA as a pure advertising agency).

One advantage of forming separate companies is that these companies can tie up with
international companies (beyond Bozell) having expertise in the respective fields. Thus,
while providing all services under one roof, MAA can also claim to have specialized
expertise in different areas while pitching for new accounts.
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TTK Prestige - Company profile:

TTK Prestige Limited, the flagship company of the Chennai based TTK group is India's
largest manufacturer and marketer of the most comprehensive range of kitchenware. After
gaining leadership in the organized market in the Cooker segment in India, the company
has repositioned itself from being a kitchenware & small appliances company to being
India's only total kitchen solutions provider by entering into the Modular Kitchen segment.
The Company brought in the Direct Retail concept by establishing exclusive franchisee
showrooms under the name Prestige Smart Kitchen. TTK has launched 72 Smart Kitchens
till date and the number is expected to increase to 150 by March 2007. It has also ventured
into the nascent Modular Kitchen segment with its launch in June 2005 in its Bangalore
outlets. This new initiative is expected to contribute to the topline and profits, as margins in
direct retailing are higher than those in traditional dealer sales. Nearly 55% of the products
sold in these outlets come from products other than Pressure Cooker. Direct retail sales
contribute 10% to the top line. The market size of the Pressure Cooker segment is Rs500
crores and is growing at 6-7% a year. This segment is shared amongst organized national
branded players, regional brands and unorganized players, with the latter two accounting
for nearly half of the market. TTK Prestige has a 40% market share in value terms, in the
branded pressure-cooker category, and is a dominant player in the industry. The other
products offered by them include gas stoves, mixer grinders, modular kitchens, rice
cookers, and non stick cookwares.
TTK has the largest distribution system and the largest service system network in India. It
has 20 branch locations and has a strong distribution network of 4,00,000 retail outlets
through dealers. The Company has entered into an agreement with Bharat Petroleum
Corporation Ltd, whereby the latter’s dealers are encouraged to source TTK products. It
has also tied up with Big Bazaar to sell its products. Such initiatives will help tap urban,
semi-urban and rural markets. It is the only company in the industry to have exclusive
brand outlets and it has presence in all retail formats.
The Company faces competition from regional brands and the unorganized sector, from
time to time, with their extremely low-priced products. In the Pressure Cooker segment,
TTK is the market leader and faces competition from Hawkins and from few other regional
players. In the Non-Stick Cookware Segment, the Company has the highest
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market share of 48% in the organized segment, and its competitors include Teflon and
Nirali, among others.
In the Gas Stove segment, TTK is a small player, with a market share of below 10% in the
organized category, and faces competition from established players like Sunflame, and
Butterfly. The changing lifestyle, double income family structures, rising income levels and
preference for the safe and branded products will be sales drivers for the company. Its foray
into retail will also drive future growth, as there is a good recall and high regard for its
"prestige" brand, which signifies quality and safety.

Vision of the company: To make TTK prestige the No1 small appliance company in India
through customer centric innovation.

Key Concerns:

The company is experiencing turnaround and runs a risk of not successfully

completing the whole process of restructuring.

The company faces competition from the unorganized sector.

The liquidity of the stock on the markets is not very good.

The company operates in only kitchen appliances segment.

Product Profile

1 Pressure Cookers:
1.1 Deluxe Aluminum Pressure Cooker:

• Comes with a first time 2-in-1 safety device called PI (Pressure Indicator). The device
will rise while there is pressure inside the cooker and will come down when there is
no pressure thus indicating that it is now safe to open the vessel. It also fuses at high
pressure thereby serving the dual purpose of a Metallic Safety Plug.
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Deluxe Pressure Cooker uses best quality virgin aluminium with stronger lugs and
thick base to give cooker a safe and long life.

Available on various sizes for all families. Sizes from 2-5 litres, suitable for a
family of 4 members and sizes from 6-12 litres suitable for large families. It also
enables customers to cook with separators. Moreover, it has been designed to give
user more body capacity as compared to normal outer lid pressure cooker.
Prestige Deluxe enables "Separator Cooking", a more hygienic form of cooking to
retain the nutritional value and taste of food while enabling user to cook 3 dishes at
a time.

ISI certified. It conforms to international quality standard.

1.2 Deluxe Stainless steel Pressure Cooker:

Deluxe Stainless Steel cookers with an all steel exterior, only from Prestige,
employs the unique "cladding technology" which ensures equal heat distribution and
protection against the occasional dry heating. This has been designed to perform
under the tough conditions of the Indian kitchen.

The Prestige Permalife Gasket comes from GE Bayer Silicones. They are world
leaders in Silicone Elastomer technology for which Prestige has an exclusive tie-up.

Has the unique aluminum PI (Pressure Indicator) which rises while there is pressure
inside the cooker and will come down when there is no pressure, thus indicating
that it is now safe to open the vessel. It also fuses at high pressure thereby serving
the purpose of Metallic Safety Plug.

Stainless Steel offers everlasting dazzling looks, long durability and easy cleaning.

Also available as Pressure Pans to take care of the different kinds of cooking that
user does. Helps user to fry, deep fry, sauté and pressure-cook.

2 Prestige Ultimate:
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Prestige Ultimate, will save money & effort while providing maximum value for money.
User will love the convenience of having to use just one pressure cooker for all needs. It is
ideal for large volume cooking in canteens and hotels.

3 Pressure Handi:

3.1 Deluxe Pressure Handi

Comes in a never-before unique shape of handi, it also pressure cooks. The unique
shape brings out the rich aroma of the various spices and adds a distinct flavor.

Retains the taste of traditional delicacies cooked over a slow fire coupled with the
speed of pressure-cooking.

Makes lip smacking soups when used as an open vessel.

Available in stainless steel, hammertone and hard anodised finish for dazzling looks
and elegance.

The pressure handi is an ideal cook-and-serve vessel with the unique finish
maintaining it's new look for years.

4. Non-Sick Cookware:

4.1. Omega Select Non - Stick Cookware

The unique Teflon Select 3 layer metal spoon friendly coating that is 3 times more
durable than ordinary coating ensures that customers’ non-stick goes on and on.

India's only metal spoon friendly cookware so those users never have to think about
whether to use wooden spatulas or metal spoons. Omega Select uses the latest
technological breakthrough from Dupont, the worldwide leaders in non-stick
technology.
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Fully assembled riveted handles that do not come loose even after continuous usage
thus eliminating the problem of handles coming loose. Now user can flip those
dosas faster than ever.
Range includes Kadais (Shallow frying of all types of vegetables, fried rice, Indian
sweets like carrot halwa etc.) Handis (for all ethnic dishes and curries, biryanis,
pulavs etc.) Fry Pan (cutlet, fried eggs, light garnishes, fried vegetables etc.) Omni
Tawas and Concave Tawas (dosas, Omlettes, fried eggs, parathas and pancakes) and
Appachetty (appams) to take care of diversified cooking needs.

Economy pricing so that customer gets the best technology at competitive prices.

4.2. Premium Non - Stick Cookware

Spirals at the base for fast and even distribution of heat.

The non-stick Teflon extra coating from Dupont for easy release makes cooking
more enjoyable than ever.

Provides easier cleaning, as the surface does not stick.

Food grade non-stick coating for 100% safe consumption.

Provides family with healthier cooking, as it needs lesser oil.

Wide range of products available for different kinds of food preparations and
cooking including Fry Pan, Sauce Pan, Sauté Pan, Tawa, Kadai etc.

Available in various assorted packs making it ideal for gifting during marriages,
parties, festivals etc.

Also available are ethnic products like Appachetty, Paniyarakkal that combine the
flavor of old delicacies with the convenience of modern technology.

4.3. Non - Stick Sets

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Twin Pack (small), Twin Pack (large), Build your Kitchen (With Die Cast Tawa), Build
Your Kitchen (with Omni Tawa), Build Your Kitchen (with Concave Tawa), Kitchen In A
Box (with Handi), Build Your Kitchen (Omega Select), Classique, Exquisite.

5. Electronic appliances:

5.1 Marathon Mixer Grinder

Mixie with 10 features combined together to make mixie usage ten times easier.

First ever instalock mechanism which enables user to fix the jar in any position.

8-way nylon coupler, which helps to reduce vibrations.

Water drain facility for easy cleaning after use.

550W high speed motor that grinds faster and saves on electricity.
Gives special advantage of 3 distinctly different speeds from 12,500-18,500 rpm to
suit all grinding needs.

CE-certified motor, for the first time in India. 5.2.

Delight Rice Cooker

Surround warm technology provides customer the specific benefit of providing soft
cooked rice even after keeping it on warm mode for more than 3-4 hours, which in
case of other rice cookers, turns hard. This is accomplished by providing heating
coils under warm mode all around the body and the lid of the rice cooker, which
ensures uniform heating from all sides.

Delight Rice Cooker can perform a variety of functions apart from cooking rice,
such as making soups, idlis, desserts, steaming vegetables and a lot more.

Stand alone steamer basket can be used with water in the non-stick pan for steaming
vegetables and gives nutritious, steamed vegetables with taste
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Comes with a stunning look which is the latest in international rice cooker styling
thus providing customer with the convenience of easy cleaning and maintenance.

5.3. Swift Hand Blender:

Intelligent Tilt Cut-off (ITC) mechanism - a unique safety feature.

Imported Light Weight PMDC Motor for low noise and vibrations.

Optional attachment - wet and dry grinder / chopper.

Multipurpose single blade for all blending needs.

Light weight with accessories - Blending Jar and Wall Bracket.

5.4. Centrifugal Juicer

Multipurpose action helps to extract juice from a variety of fruits and vegetables.

Specially angled blade and sieve help to extract more juice from the same fruit or
vegetable.

Powerful motor that can run continuously for 5 minutes. Straight to glass design
helps to collect the juice easily.

Compact shape makes it handy. Detachable pulp container to collect fruit or

vegetable pulp making it convenient to clean.

5.5. Atta Kneader

Makes Atta in soft dough for chapatti in one minute.

Can be used for a variety of functions like churning butter, beating eggs, mixing
baby food and batter for cakes and pastries.

5.6. Fun Drink Maker

Ideal for making flavored aerated drinks for children at home.

Can be poured straight into the glass for consumption.

More gas in the cylinder so user can make more than 100 glasses of any drink.
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Can also be used for making soda at a very economical cost.

Cylinders can be easily refilled in the market.

Available in single and double cylinder.

6. Gas Stoves:

6.1. Stainless steel Gas Stove:

Tri-pin high speed brass burner for faster cooking making sure users are not stuck
in the kitchen. Tri-pin helps in placing even a small vessel on the burner.

Taller legs for easier cleaning ensuring that user don't have to remove the gas stove
from it's place every time user clean it.

ISI approved burners conform to the efficiency norms of the Indian Standards.

Folded edges coupled with taller legs ensure that cleaning the stove is safe and
convenient and does not hurt fingers.

6.2. Royale Gas Tables:

Futuristic design for unparalleled looks making it the centerpiece of the kitchen.

Never before spill-proof design ensures that Royale always remains clean and
sparkling.

Unique universal type gas connector, which can be rotated left or right to suit
kitchen fittings.

Comes with optional glass lid made of toughened glass and is equipped with
stainless steel brackets that can be easily fitted.

Provides the flexibility of having a stunning gas table while eliminating

complication and headache of designing and fitting a customized hob.

Available in Stainless Steel and Auto Ignition to suit the needs of the kitchen.
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Wide range of models in 2,3,4 and 5 burners to suit the number of vessels being
cooked simultaneously.

Unique edge-guard adds to the elegance while giving user safety when cleaning the
stove.

ISI Certified.

3,4 and 5 burner models come with large 100 ltrs/hr. burner for faster cooking.

7. Kitchen Tools:

7.1. Life Time Collection

Uses superior grade stainless steel of 3.2 mm thickness.

Every piece has been finely crafted out of a single piece of steel.

Helps in various kitchen operations through the assortment of tools available.

Ensures that user don't have to search for different tools every time, as it comes
with a revolving rack.

Ideal to gift to new housewives, for family functions, social gatherings etc.

Suitable for professional cooking.

7.2. True - Edge Kitchen knifes

Comfortable molded handles for a better grip. Doesn't slip.

The surface finish protects the knife from corroding and is resistant to vegetable
acids thus ensuring longer life. Keeps it ever sparkling.

The tempered stainless steel gives stronger cutting edge. Makes cutting, a hygienic
and smooth, quick and efficient job. Also reduces wrist action strain.

Deep serrations add depth to the cutting edge.

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Available in Paring Knife (ideal for fruits and small vegetables), Vegetable Knife
(ideal for soft vegetables like tomatoes etc.), Utility Knife (all purpose knife),
Cooks Knife (ideal for large vegetables, greens etc.), Chef's Knife (ideal for large
vegetables, meat etc.) and Peeler (for all vegetables / fruit peeling operations).

Available with a wooden block designed to look good in the kitchen place.

Also available in a attractive 3, 4 piece and a 5 piece set which is a comprehensive set of
all the 5 knifes and a peeler packed in an attractive and utilitarian wooden storage block.

PARTC:

Theoretical Construct:

Prestige Smart Kitchen is an authorized exclusive franchise based retail outlet initiated by
TTK Prestige. Therefore the theoretical construct will be on franchise form of retail outlet.

One firm (the franchiser) licenses a number of outlets (franchisees) to market products or
services and engage in business development by using the trade names, trademarks, service
marks, Know-how, and methods of doing business of the franchiser .In contrast to product
franchising, the focus here is on how the business is run. The franchiser’s primary
compensation comes in the form of royalties or fees.

The main reason why a company would opt for an authorized franchise system is because
the supplier of products in the current scenario TTK Prestige would like to have control
over the marketing of products. Some of the key features of authorized franchise system
are that the outlet should satisfy some minimum criteria before establishing the outlet.
These conditions can be minimum amount of space that should be available, initial cash
outlay in the form of royalty etc to the supplier and other general conditions such as good
footfalls in the location where the outlet is proposed to be setup.

Franchise systems facilitate the flow of critical market information between franchiser and
franchisees so that consumer preferences, complaints and purchasing intentions can
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more quickly be reflected in marketing and production planning. Franchise system provides
needed investment incentives by making substantial sales, services and management
assistance readily available to potential franchisees; by harmonizing interdependent
investment decisions making through realignments of business risks and by mitigating
opportunities for the exploitation of invested capital by free rider franchisees. Therefore
franchise system is becoming more and more popular in the current complex business
environment.

PARTD:

Analysis and Interpretation:

The research was conducted basically for women as there has been a transition of Indian
women from housewife to a world beater today. The insight derived from the women
especially would give a better understanding for the study. The people approaching the
store were both male and female hence the input was taken from both the sexes although
most of the feedback was considered from the females and the outlet owners. The data was
captured on a 100 point scale. The trust and legacy that the brand carries in the market is
legendary. The salience of the brand is proved by its effortless extension into the entire
kitchen space.

Age Group:
The age group of 25 and below purchasing the products was very low as most of them were
not married. For the age group of 26-35 years was 32.25%, 3 6-45 years was 47.54% and
finally in the age group of 45 years and above it was 20.2 1%.

Income level:
The customers from the upper upper class were 18.18% and from upper middle class were
the highest at 29% and the middle middle class category was at 22.32% and the lower
middle class at 8.7% where as lower upper class at 13.6% and finally the middle upper
class was at 8.2%.
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Frequency of visit to prestige outlets:

Most of the customers who visited the outlet were when ever the need arises and on special
occasion. The influence of TV commercials on various promotions was also one of the
reasons for visit.

Offers availed by the customers:

Most of the customers approaching the store for the offers were for “Anything for anything
offer” this offer is very popular at the prestige outlet and is being continued for more than a
year now. The next most liked offer is the Free gifts given on purchase of the product.
Apart from these even the Re1 and discount offers are also being preferred.

Products that are of high demand are:

Cookers
Gasket
Pressure Kadai
Pressure Handi
Cookware

Products that are sold very less are:

Hobs
Glass tables
Chimneys
Barbeque
Iron box
Knife
Soda Maker
Rice cooker
Food Processor
Modular kitchen.

Parameters that influence the customers to the store in the order of preference are:
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1.Price
2.Guarantee
3.Quality
4.Brand
5.Looks

Staff conduct at the outlets:

Most of the customers found the staff to be very good in terms of selling the products at the
outlets. But in case of Modular Kitchen, which costs around 1 lakh the staff required more
training in selling such products.

Products that should be introduced by prestige are:

Kitchen utencils
Refrigerator
Dish washer
Salt & Pepper bottles
Storage
~ Boxes
Coconut
~ scrapper etc.
Promotional strategy:
¾ Customers are attracted to the store by various means. The most appealing way
is by television. Prestige has to emphasize almost all its product lines on the TV
commercials not only the pressure cookers, and try to convey the message to the
audience that it is offering all the products that are available for the kitchen.
¾ Banners outside the Multi brand outlets (MBO) could be displayed for
consumer awareness.
¾ Kiosks could be considered in the outlets where by all the products of prestige
are displayed it was observed that some of the MBO in Bangalore like Viveks, VGP
etc didn’t have most of the prestige products at their outlets.
¾ Cooking a meal for rural India:
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The potential of rural India is well documented and brands that crack this market
are those who will make their investors and shareholders happy. And within the
category of pressure cookers the reality is that 90 per cent of urban India already
owns a pressure cooker whilst barely 22 percent of rural India owns a pressure
cooker.

Whilst the urban market will gain from upgrading, additional pressure cookers and
emergence of new households is the great opportunity in rural India. and TTK seems
to have a model in place for this vast market. The outlet in rural markets is a scaled-
down version of its urban counterpart which will stock other TTK products as well
in addition to the kitchenware range. The business model is unique as it involves
NGOs and self-help groups. The initial investment will be by the company while the
management will be by NGOs.

¾ Prestige Strategic Model:

The vision here is to extend the prestige brand towards total kitchen solutions.
Brand extensions require more than just products. It requires a holistic strategy that
includes innovation in distribution, pricing and of course promotions. In order to
differentiate on every element of the prestige market mix there are retail outlets
under the name Prestige smart kitchen giving it a very competitive edge in the
market, an ability to launch products successfully and above all have a direct
contact with the end consumer. The other benefit is that it helps in ensuring the
objective of being present in all retail formats is met, since the trade is forced to
stock prestige now that business could go away to prestige smart kitchen.

Various promotional tools used at Prestige which are a huge success are mentioned
below also additional tools have been mentioned as a suggestion

Already existing at Prestige:

1. Anything for anything offer: This offer is being carried on in Prestige since 6 months
and is definitely a success. Customers feel secured while purchasing
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because they always know that they can go back and exchange the product. This
offer also enabled the customer to get rid of her old products for an attractive
Prestige product of any category.

2. Re 1 shopping festival: On buying any Prestige product, the consumer can pick up
another Prestige product by paying just Re. 1 in addition.

3. Bundeling: Here certain products are combined and the price of the bundled
product is reduced. For example on buying 6 pieces of handi & kadai there is a
reduction in price which otherwise would have been expensive if the products
were bought single piece.

4. Free: This offer implies for certain products which would where in another
product would be given free of cost. For example with the auto ignition stove a
mixer grinder is given free of cost. If the customers do not want the product that
is given free by returning a discount of 10% on the product purchased is given.

Additional tools that could be introduced are:

1. Marriage pack: As in most of the Indian marriages the girl is being gifted with
all the kitchen needs Prestige could come up with a gift pack which would include
all the kitchenware needs.

2. Loyalty card: A card could be given to the customers who purchase

products above certain price. This card would be like a membership card
and would provide discounts based on the products purchased. This would
enforce the customers to buy again from prestige.

3. Service free mela: Service free mela could be conducted for a short
period where the customers would get their products serviced when
they visit the store they would have a look at other products and would
generally end up purchasing.
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4. Free Vouchers: These could be given to the employees in corporate field by having
a tie up with the company’s where by a gift voucher would contain a price level at
which the employee can shop for prestige products. By doing so the person would
have a look at all the products and end up buying more.

Product line extension strategy:

As it is observed that the people generally are not very particular when it comes to
brand in most of the kitchenware products. The advertisement should emphasize
that prestige has all the kitchenware needs. As prestige has already made a very
good name for itself in the Pressure cooker segment establishing itself into other
products should not be much of a problem provided the products are of good
quality. By making use of the promotion tools mentioned earlier would definitely
cause for an increase in the purchase of the prestige products over other products
available in the market.

Prestige has already made its presence by providing the concept of Modular
kitchen in the minds of consumers but now it has to look forward in developing
another strategy which would be on complete kitchenware needs. Although
developing this kind of strategy take time it would definitely make Prestige the
most successful in the Kitchenware industry.

Concept of Modular Kitchen in Indian scenario:

Almost all over the world, in most homes, both husband and wife go out to work
either out of necessity or out of choice and as such time spent in the kitchen is
minimal giving rise to a demand for a well designed and convenient kitchen.
Modular kitchens can very well fulfill this demand. With modular kitchens gaining
popularity more manufacturers will jump into the field and the increased
competition will result in prices becoming more affordable. TTK Prestige Ltd had
launched the new range of products "Modular Kitchens" during the month of June
05 which are being sold through the Company's exclusive outlets "Prestige Smart
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Kitchens". The initial response is very encouraging. TTK is ready to explore its
relationship with Wallmart and K Mart for modular kitchen.

Advantages of a modular kitchen are:

They look good.

Optimize space.

Are made of durable material.

Selection of different materials for different uses is a difficult decision to make

which is easily solved by a modular kitchen.

A modular kitchen takes care of things like exhaust hoods/chimneys which

otherwise is ignored.

Replacement/repairs are easy.

Kitchen work/equipment/utensils get proper definition, role and place to function.

Person gets motivated to work in such kitchens

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PartE:
Findings from the research:

1.Awareness about many products offered by the PSK Outlets is low.

2.Commission for the outlet on sales is not progressive i.e. more sales results in
lesser commission, which is causing dissatisfaction to the owners of the outlets.
3.Many of the outlets face stock out of products due to poor order processing by the
company.
4.Some of the outlets had problem with defective products supplied by the
company although it was exchanged later.
5.In the field of Kitchenware and crockery the customers are largely unaware of the
brand. They enter the shop with an intention to buy the product and not a brand.
They ask for a product and also mention the price ranges and depending upon this
information the seller pushes the product.
6.Most of the customers approach the store when the need arises there is no fixed
frequency pattern followed.
7.Any offer that would make the product available at a lesser rate and an exchange
guarantee is liked by the customers.
8.Bundleling of products is generally not liked by the people.
9.The attribute that people attach to prestige products is of good quality hence the
products have to be made available to them of very good quality.
10.The product availability at MBO and small outlets is very less and also all the
products are not available. This would create dissatisfaction from the customers
point of view.
11.People would not mind purchasing all the kitchen ware items of Prestige
provided they are of good quality, competitive price and warranty.
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Recommendations:

1.Stock should arrive to the outlet in not more that 2 days or at maximum 3days.
2.Customers should be trained how to use the products as it is observed that most of
the damages take place by mishandling the products.
3.More advertisement to create more awareness about the offers and the products
4.Attractive Offers and schemes
5.Train the staff to sell Modular Kitchen, as the current staff does not process
sufficient skill to sell a product, which costs more than Rs1,00,000.
6.The MBO and small outlets should have all the varieties of products of prestige.
7.Although the staff conduct is good. They should be trained once a year to keep
serving the customers at its best.
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Conclusion:

TTK prestige has created a brand for itself in the mind of the people who use kitchenware
items. The initial punch line on prestige which said ‘Jo apni biwi se kare pyaar tho prestige
se kaise kare inkar’ has created many customers who patronage prestige. When it comes to
Pressure cookers prestige has made phenomenal mark. Apart from the pressure cookers
importance should be given on other products also by making the products available at
good quality, price and promotion will definitely make a huge difference in amount of sales
of the products. Emphasis should be given on the research and development team to come
up with new products having good quality, competitive price and design.

The study conducted indicates that all products from the Prestige stable will have
interesting innovations to make the consumer's life easier. The stress is on comfort,
convenience and speed, all at a value-for-money proposition. The modern woman of today,
with her busy schedule, is looking for convenience products, which are also smart. The
range of smart products from Prestige is targeted at this modern woman. The brand
statement will therefore be 'ARE YOU READY FOR A SMARTER KITCHEN',
conveying the contemporary, smart, new products from the house of Prestige.

The market for kitchenware in India is promising and TTK Prestige can definitely
capitalize on these opportunities not just by leveraging on the brand image what it is
currently doing but also by keeping up its promise for all the products it would offer which
would lead to a complete kitchenware solution.
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A nn exu re I
~ Questionnaire

Prestige Smart Kitchen

1.Your Age: a. ~ 25 years b. 26 to 35years c. 36 to 45 years d. >45 years

2.Gender : Male / Female

3.Working: Yes / No
4.Occupation:
5.Frequency of visit to prestige outlets:
a)Once in a month (c) During special occasion
b)Once in a year (d) When need arises
6.Which are the offers that you have availed so far
a)Anything for anything
b)Re 1 shopping festival
c)Free (Buy a stove and get a mixer grinder free)
d)Discount
7. Which are the offers that attract you the most from the list
above? ................................................................
8. Would you prefer the products to be available in Bundle? Yes / No
9. How satisfied are you with the usage of prestige products?
a) Not satisfied (b)Satisfied (c)Neutral (d)Very satisfied (e)Extremely satisfied
10. How did you get to know about Prestige?
a)T.V
b)Radio
c)Family & friends
d)Billboards
e)Newspaper.

11.Rate the following in a scale of 1 to 5 in the order of preference: (

1 being very important and 5 being least importance)
 Poor
Excellent a)Very Good )Cooker
Good ( k ) Hobs
Fair

Toaster ( l ) Glass tables

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Mixer grinder ( m ) Chimneys
Microwaves
a)Price ( n ) Knife sets
Pressure Handi
b)Quality ( o ) Kitchen tools
Pressure kadai ( p) Barbeque
c)Guarantee
g) d)looks ( style,
)Cookware
colour etc)( q ) Irons
Ricee)Brand
cookers ( r ) Kettles
Food processor ( s ) Sandwich toasters
Oven toaster griller ( t ) Pop up toasters
12. Staff Conduct at the outlets:

13.The appeal of the outlet from

outside and inside: Attractive
Different Sophisticated
Modern Traditional

14.Simple

15.Tick the items purchased by

you at Prestige?

15.Do you think Prestige has to

come up with more kitchen ware
Items? Y/N
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16.Name the products you think
Prestige has to introduce in the
near future:
……………………………………
……………………………………
…………………
……………………………………
……………………………………
…………………
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……………………………………………………………………………………………
……………………………………………………………………

17. Any problems faced by you so far with the prestige products please specify:

……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………

18. Recommendations: ……………………………………………………………………

……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
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References

1. Malhotra, K, Naresh, 2005, “ Marketing Research, An Applied Orientation,”

Prentice-Hall of India Private Limited, New Delhi, 4t h Edition.
2. Financial daily from the Hindu group of publications Tuesday, Jun 21, 2005
http://www.blonnet.com/2005/06/2 1 /stories/2005062 1025 80200.htm
3.http://deadpresident.blogspot.com/2005/08/ttk-prestige-new-retail-kid-on-
block.html