REPORT ON

MARKETING CONSULTANCY IN CHAIR MANUFACTURING

FOR

PROWIZ CONSULTANCY COMPANY

SUBMITTED BY

THAN SOE

M.B.A

UNIVERSITY OF PUNE

VISHWAKARMA INSTITUTE OF MANAGEMENT (V.I.M),

PUNE, 411037

2005-2007

ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I was fortune enough to get

support from large number of persons to whom I shall always remain grateful.

I would like to record my gratitude to PROWIZ CONSULTANCY COMPANY for

allowing me to undertake this project.

I take this opportunity to record a deep sense of gratitude to MR.KARLE Managing

Director whose kind supervision; keen interest and valuable suggestions went all the way

in successful completion of work.

With immense pleasure I would like to express my sincere thanks & gratitude to

Pro,faculty member & project guide, for having given me this rare privilege of working

under him and completing this project.

I am also desirous of placing on record profound indebtedness to Dr.Sharad L.Joshi,

Director of Vishwakarma Institute of Management, for his valuable advice &guidance.

I would like also to thank all the respondents for giving me their precious time and

relevant information and experience I required, without which this project would have

been a different story.

Last but not the least I am very much thankful to the supporter of my Friends and Family

members.

Than Soe

Declaration

I hereby declare that the work presented in this project is original and has not been

submitted for any degree or diploma in this or any other University earlier. Also, the

work has been carried out during the break between first and second year of the Master of

Business Administration course of the University of Pune and was done under

professional guidance.

Date:

Signature:

To Whom It May Concern:

This is to certify that Mr. Than Soe, Vishwakarma Institute of Management; Pune has

been a summer trainee with Prowiz Consultancy Company and has worked for us during

the summer project period.

During this period he has done a project on the understanding of consumer need with

regard to increasing customer satisfaction and sales in the Pune market.

At large, his role was defined as developing relevant questionnaire, collection of primary

and secondary data analysis and interpretation of the data and giving relevant suggestions

and recommendations to the company.

He has completed the project successfully and we are satisfied with his work. We would

like to wish him all the best for his future endeavors in his professional career.

Regards,

Mr.karle

Managing Director

Prowiz Consultancy Company

CERTIFICATE

This is to certify that the project report titled for PROWIZ CONSULTANCY

COMPANY IN PUNE is a bonafide research work carried out by THAN SOE student of

Vishwakarma Institute of Management submitted in partial fulfillment of requirements

for the degree of Master in Business Administration from University of Pune.

He has worked under our guidance and direction.

Dr.Sharad L.Joshi Prof.

Director Project Guide.

Vishwakarma Institute of Management

Pune.

CONTENT OF THE REPORT

CHAPTER-1

INTRODUCTION

1.1 BACKGROUND

1.2 OBJECTIVE AND SCOPE OF THE ASSIGNMENT

1.1 METHODOLOGY

1.2 TIME PERIOD

1.3 FORMAT OF THE REPORT

CHAPTER- 2

DIAGNOSTIC STUDY OF PROWIZ COMPANY

2.1 INTRODUCTION

2.2 METHODOLOGY FOR DIAGNOSTIC STUDY

2.3 EXISTING BUSINESS OPERATION OF PROWIZ

2.4 INTERIOR WORK

2.5 COMPETITION PROFILE

2.6 GENERAL MANAGEMENT PRACTICE

2.7 STRENGTH WEAKNESS ANALYSIS (SW) CHAPTER 3

CUSTOMER SURVEY- 3

3.1 INTRODUCTION

3.2 DETAILS OF THE CUSTOMER SURVEY

3.3 METHODOLOGY FO R DATA PRESENTATION

3.4 FINDING FROM THE CUSTOMER SURVEY& CONCLUSIONS

3.5. FUTURE PLANS OF BUYING FURNITURE

3.6 FINDING FROM THE STUDY DISCUSSIONS

CHAPTER- 4

ANALYSIS O F DEALER/ ARCHITECTS/ INTERIOR DESIGNERS

4.1 INTRODUCTION

4.2 APPROACH

4.3 METHODOLOGY EMPLOYED

4.4 INSIGHTS OF FURNITURE MARKETS FROM DEALERS/ SHOPKEEPERS

4.5 INSIGHTS FROM INTERIORS DESIGNERS

4.6 INSIGHT ABOUT KNOCKDOWN FURNITURE

4.7 PERCEPTION ABOUT PROWIZ

CHAPTER V

PROWIZ DIVERSIFICATION PROJECTS

5.1 RESTRUCTURING OF WOODEN FURNITURE INDUSTRY

5.2 IMPLICATION OF RESTRUCTURING FURNITURE

5.3 CONCLUSION

CHAPTER-VI

SUGGESTIONS FOR FUTURE COURSE OF ACTION

6.1 INTRODUCTION

6.2 SUGGESTIONS FOR FUTURE COURSE OF ACTION

CHAPTER I

1.1 INTRODUCTION

Prowiz Consultancy Company is located not only in Pune but also in Mumbai, Bang

lore and Delhi. The main product of manufacturing and selling of those companies is

chairs office chairs, executive chairs, visitor chairs, cafeteria chairs and sofa etc. In

order to implement these activities that companies have many workshops and several

exclusive showrooms.

Among them manufacturing of sizeable and colorful chairs is the main activity of

company. The manufacturing is done almost with the help of the semi-skilled n skilled

labors in the workshop. Basically the process has a limit to produce and always make the

testing of marketing situation on business growth.

In manufacturing the different colorful sizeable chairs company used machine based

and manual production to get high quality n customer satisfaction. The company s

architects and engineers of company create the attractive and modern designs of those

products. The raw materials and machine that used in the production are imported from

Korea, Malaysia, China and Taiwan.

The project of chairs manufacturing under the project will be very high. At the same

time modular, knockdown type of furniture is going to be a novelty to the most of the

Indian market. This would mean that the accumulated marketing experience of the group

is going to be limited as far as marketing the new furniture is concern.

1.2 OBJECTIVES& SCOPE OF THE ASSIGNMENT

The objectives of this assignment can be broadly classified under two parts viz-

Diagnostic study of prowiz consultancy and market situation study of pune. In market

study there are two component namely customer survey and dealer/ interior designer

survey. The objectives of them are as follow.

Objectives of the diagnostic study are

To understand the existing business operation of prowiz consultancy company

o To study the range of product manufacturing and production

o To understand the business operation system of company

o To understand the dealing customer profile in business generation

o To understand the marketing operation in detail according to

o Product designing and decision

o Pricing policy of company

o Methods of selling

o Distribution of products

o Competitors profile in competition

o Material used in production

o Service after sale

To study the marketing organization and marketing information system

To understand the perception of new business with reference to be above

mentioned marketing operations.

MARKET STUDY

It was clarified to understand the market study of pune city. The city is suitable for chair

marketing because of the following reasons.

Prowiz Consultancy Company is not aware of pune market for many years but it

is suitable city for chairs manufacturing and selling because of its location.

For launching of chair furniture, pune city is cherished with institute, private

company, college and business people who need chairs in their homes and

workshop.

Cost involved in conducting study will be relatively low and

It is very easy to make change/ improvements etc in market situation at short time

whenever it is necessary.

Objective of the study

To find out the view and perception of interior designers, engineers architects in

manufacturing of different sizeable chairs and sofa.

To understand the present chair market situation, its opportunities threats and

future plans in implementing of chair market.

To know the process of chair buying from the existing and potential customers

regarding different types of furniture, time budget styles and designs covering

various income groups cultures and localities of pune.

To understand in detail from group decision and the decision-making process

about chair buying style designs and used raw materials etc.

1.3 METHODOLOGY

Methodology applied for each section of the study is illustrated separately in the relevant

chapters.

1.4TIME PERIOD

This assignment started in JUNE 2006 and was completed in SEP 2006.

1.5 FORMAT OF THE REPORT

In this assignment chapter II deal with the diagnostic study, chapter III reported about

the customer survey in pune, chapter IV finds out the perception of the dealer/ interior

designer of chair manufacturing. Likewise future course of marketing planning are

presented in chapter V.

CHAPTER II

DIAGNOSTIC STUDY OF PROWIZ ORGANIZATION

2.1 INTRODUCTION

For running in a long run of business organization, every organization should acquire

plentiful of experience. The surveying is always keep in touch with the real market

situation and it can make fewer and fewer mistakes .the situation what has worked in

previous time might not work in future situation because the customers, environment of

the new business and competitors can change and different day by day. So in the process

o f strategy formulation the first step is to know one self better and objectively. If the

same organization or at least same management ventures into a new business, the

management is liable to be suffering from a new blind spot. Diagnostic studies are

undertaken to prevent such mistakes.

The objective of the diagnostic study of this assignment is to study the strength and

weakness of the present prowiz consultancy company with a view to developing and

understanding of their relevance to the new project.

2.2 METHODOLOGY FOR DIAGNOSTIC STUDY

The diagnostic study was implemented by holding detailed interactive discussion with the

management team of prowiz company. From these discussion get the knowledge to

understand their present business, the business environment, including competition, the

decision making process for their market etc an effort was also made to understand

business.

means of using technology, production process in industry, product range, quality of

product, pricing policy, marketing initiative with competitors, business generation system

and show room management Through this fact, can get the strategic capacity and

expectations of the group from the new project.

During the discussion with the management team of prowiz consultancy company a few

relevant records (that were made available) were also studied carefully. These records

can give the identification of strength and weakness of prowiz consultancy company from

the view point of the new project and which will make producing, manufacturing and

selling of various designed chairs items.

The study is mostly based on the interactive discussion with the management team of

company because company s main target is distribution in whole selling not retailing in

market area. In such a situation there is always danger that not gets the chance to know

the real feeling of actual customers and individuals. Hence all the documents required for

the study were not available but the conclusion based on them is liable to be contested.

2.3EXISTING BUSINESS OPERATION OF PROWIZ CONSULTANCY COMPANY

Prowiz Consultancy Company was founded since 2001 in Andheri of Mumbai but at

that time it was not well-known and big company. Initially the company undertook

production and manufacturing of several designed chairs for chair market and just only

retailing in market. However the company undertook the business of manufacturing,

exhibition and whole.

These four company engaged in the business of chair manufacturing and marketing,

showroom and trading of various raw materials require by chair industry artifacts etc..

All the companies have working partners/ directors, managing partner or a managing

director.

These companies targeted to distribute chair in the chair market among the competitor

but initially mumbai is main target for chair marketing and employed 11 staffs and 3

salesmen and the initial financial turnover is 6 lakhs only and retailing products in the

market area only. Moreover in 2006, another company like in Bombay is 16 staffs, in

pune 4 people, in bungalow 6 people and in Delhi 8 people only. Although not much

staffs and big company it make sale targeting anonymously in the marketing area.

Warehousing for manufacturing products planned in mumbai and hydra bad. In pune

exhibitions for sale and force on sale movement is planned strength.

Detail of the staff member and scope of activities of these companies are illustrated as

below.

Sir no Company place Staff Business activities 1 Mumbai 16 Ware housing 2 Pune 4 Sale target 3 Hydra bad 6 Warehousing 4 Delhi 8 Sale target

2.4 INTERIOR WORK

A typical interior work undertaken in an unoccupied house normally

incorporates by designing the sitting room and various chairs for drawing room,

bedroom, kitchen and various institute and private companies and public companies

which need director chairs and other several designed chairs.

The supply of the amount of chairs and customer needed design in the factory is

direct and some portion is worked upon on the sites. Some design and order of the

design is generally done by the customers with or without indirect or direct

involvement of an architect or the interior decotator.For the fixed items there is a

need to take precise measurements and develop an understanding of the site- specific

features.

CHARACTERISTICS OF INTERIOR WORK

Company has own workshop/factory and the manufacturing of various chairs

are undertaken under the super visor and with the help of the skilled and

experienced designers.

Company utilized qualified production rule and used standardized raw

materials and import to produce qualified and standardized several designed

chairs.

The showroom of the company target to the potential customers and the

facilities like architects, designers and other skilled manufacturer and offer

the chance to see the display or go through the catalogues, undertake a visit

to the factory and showrooms, shortlist and select the designs colors and

grain structure etc finalized the order.

PRICE AND VOLUME OF BUSINESS

Now prowiz consultancy company in pune branch is target to the whole selling and

not prefers to the retailing and can calculate the amount of business is on the annual

turnover. So the annual turnover of company s headquarter in mumbai is round about 62

crores and it generated successfully in that market situation. In pune branch, the annual

turnover is just only 2 crores but now it penetrates to the whole selling market of chairs

with force and success to some extent.

The production and manufacturing procedure of the company is step by step from

harbor which imported needed items for chairs to mumbai site and factory and then

transfer to Delhi branch bang lore branch and pune branch. So all loose and fixed items

of the chair of 100% is manufactured in mumbai and from Delhi and bang lore to

distributors and then transport to the dealers and finally retailing to the customers. In

pune branch 0% of loose and fixed item manufacturing and just for showroom and

readymade chairs for whole selling to the dealers.

For pune branch, it has low annual turnover for product and can t create marketing

situation by leap and bound because of these reasons may be.

Too long delivery period for customer order

not so long marketing period

not get customer awareness because of company s sort foundation time

just on shopping free

Not fixed the cost of chairs and customer s want

Most of the business is generated through the word of mouth and references.

The schedule of the payment is as follow.

Tax structure

o -octory tax 4%

o - vat tax 12.5%

so the tax have to pay on the profit of products is totally16.5%.These taxes are paid on

the bill of the company and two month credits for the payment.

The schedule of the payments of debtors and customers are mostly one-month credits and

sometimes cash down but it depend on the dealers or customers and amount of products.

2.5 COMPETITION PROFILE Production and manufacturing of chair items of prowiz consultancy faces several

competitions from show room of the manufacturers and traders, designer and

architectures and contractors. Exhibition of several types of consumer durable items

including chairs also provide competition.

Concern with the interior work, prowiz face competition from architects/interior

designers having their own carpenters and other skilled workers. Some of them are from

organized sector (partnership or companies).However most of the competition comes

from the individual professionals operating in the field.

For pune branch it refers to the whole selling and not situated wide chair market in whole

city and not make production there so competition from such kind of activities is free and

few show room competition.

In spite of the stiff competition in various conditions prowiz consultancy companies are

doing a good business and reputation of good quality and standardized chairs in the

market.

2.6 GENERAL MANAGEMENT PRACTICES

PRODUCT DESIGN AND QUALITY POLICY

According to the product design and styling, prowiz s have favored not only to the

traditional ornamental chairs but also modern straight line or gaudy, fully upholstered

chairs. But company prefers to the modern and global design and that will position in the

mind of customers and take the target of product positioning among the competitors in

the chairs market.

Company imported standardized handle, frame and foams and these style must accept in

the eye of Indian people and must keep abreast with the global. Although high, medium

and low type of chairs but designs and qualities must be qualified and must accept by

Indian and up to date today. Sometimes design ideas are generated and come from

magazines, catalogues and brain of architects.

Also the management team of the company adheres and support to highest quality in raw

materials, production, design, finished products, delivery system, site installation and

manufacturing practices. These supporting have been involved since the foundation and

manufacturing of company and product and it is still matter of routine till now to

manufacture standardized chairs.

Prowiz company has one kind of advantage in design and production that is the qualified

membership or correspond membership make frequent visit to foreign and learn and

exposure to international practices and to the technological development and global

designs and it take place advancements in the industry. So the product design and

qualities of company s product is manufactured on the duty of management in whole.

PRICING POLICY

Company fixed the price depends on the model and kinds of products but models and

prices are subject to change without prior notice. Company get premium pricing as

compared to the market trends and so negotiations in pricing always take place. Basically

pricing in products is depending on the imported raw material price and fluctuations of

Foreign exchange rate.

Prowiz make price differentiation in several branch i.e. pricing in Delhi can t be same to

the pricing in pune although in the same model. In calculation of pricing VAT tax as

applicable and 50% advance for sell product and balance against delivery. So product-

wise costing is worked out according to the extent of customization and amount of

products.

For standard range of products like high items, there is a computerized system of arriving

at the costing and for the non standard product like low items the same is arrived at the

juncture of transaction. For common time no discount are offered to the customers but in

festival and other seasons discount pricing policy utilized by means of 50% discount or

replacing other items or guarantee.

For example Rs 300 extra for gas life mechanism, guarantee for mechanism 1 year or 2

years and 1 year replacing and something like that. So price structure is set once, which

generally is adhered to till the next revision. Prices are negotiated and the business of

company is concluded at the transaction of the company.

SALES AND DISTRIBUTION

In every branch of the company, apart from mumbai site point, most of the transaction

always take place from show room and through direct inquires but in headquarter of

mumbai, customer can seized their need not only from showroom but by making direct

contact to the site point and industry of company. However prowiz can attract the

potential and steady flow of customer by means of its reputation and standardized items.

Especially, in pune branch. There is no manufacturing but in showroom display every

sample of different model chairs and customer can visit and choose for whole selling.

The show rooms are decorated artfully and lighting arrangements are excellent. Moreover

location of the showroom is situated in crowded down town and it is very easy for

customer to visit.

Different arrangement of different design chairs is display in showroom and customer can

choose their needed design and models in show room. Besides several salesman and

polite employee can give the needed information and explain them what they want to

know and need. So location of the showroom, arrangement and display art of

management impress every visitors and this cause a good deal of publicity.

Prowiz company in pune branch effort to the whole selling as main target so management

of company was organized separately and make direct contact with private company,

public company and institute for whole sell chair market. Management is interest in direct

door to door with this organization for large amount of whole selling and these

connections decide within the proper time of office.

MARKETING ORGANISITATION AND MARKETING INFORMATION SYSTEM

In marketing field media and advertising are adequate role but prowiz company doesn t

feel the need to advertise. In company, different people in different role take their

responsibilities with clear-cut and no hired management for company. As stated earlier

that management team takes the responsibilities in marketing such as joining institutes,

public companies and private companies directly for whole selling and no middleman.

Every day or some other days, it depends on situation, in office time, formal meeting take

place in pune office and show room and precise operative decisions are discussed. In

these meeting comprehensive sharing of strategic operative and tactical decisions are

formulated among the management team. They also formulate how to make market

positioning and penetrate among the competitors concern their products.

Within company not only formal meeting but also informal and familiar meeting and

discussion take place among management team and their staffs. These meeting and

discussion oriented marketing situation of the products and can make suggestion frankly

and familiarly concern with chairs production and marketing. Moreover customer

satisfaction and product or service qualities are included as first role.

So for prowiz company, entire business of the company runs like well-oiled machinery

where all the members automatically know their responsibilities so relevant

developments taking place across different function and business. Management team can

get the several ideas from their different roles of staff, they can consider and take

decision making for product marketing, and if necessary they use computer aid and

computer information.

2.7 STRENGTH WEAKNESS ANALYSIS

A strength weakness analysis of prowiz consultancy company in the context of business

diversification is illustrated below.

STRENGTH

o Achieve excellent reputation of standardized and qualified chairs

production in Pune.

o Due to various successful expansion and diversification project it has great

business vision.

o Although it is not big and well known company for many years but it can

make consistency profit through captive manufacturing facilities,

production from qualified raw materials and setting up of high and tidy

show room.

o Concern with management team it was organized with well educated and

experiences members and cohesive family management. All members of

the team are young, energetic, and active for marketing of products under

the leading of leader.

o Company make the initiation in chair marketing with running the business

in keeping with the time, various pioneering and trend setting initiative so

it has a good sense of business.

o Family responsible members are often visited and learn techniques and

production in various designs so company can manufacture globalize well-

standardized chairs and can keep abreast of global trends.

o Good sense of product development in designing, styling, manufacturing

and marketing in chair market environments

o Other companies apart from pune branch, they contact with dealers and

sub- dealer so they can get marketing information and respond from

customers through dealer. Moreover in pune branch, working as a

manufacturer and distributor it can get sound knowledge of distribution

product.

o Excellent relation with-Good sense of product development in designing,

styling, manufacturing and marketing in chair market environments

o Other companies apart from pune branch, they contact with dealers and

sub- dealer so they can get marketing information and respond from

customers through dealer. Moreover in pune branch, working as a

manufacturer and distributor it can get sound knowledge of distribution

prompt facilitators of business such as architects/ interior designers,

contractors, carpenters etc..

o Good costing system

o Excellent show room management and skilled direct whole selling.

WEAKNESS

Company needs various activities required for sale promotion such as publicity

promotional material, event management so lacking of experience /expertise in sales

promotion techniques.

o Company oriented mass production so in that situation require a good deal

of advertising so company lacks the experience/ expertise in advertising.

o Company requires proper and suitable information system and

documentation.

o Although company implements mass production if lacks of mass scale

production including logistics, inventory management and personal

management etc..

o Company launched chair products in pune market but it is not so long time

so present management team is good enough for present business but for

new project qualified professional management require but company lack

experience in dealing with them.

CHAPTER III

CUSTOMER SERVICE

3.1 INTRODUCTION

Prowiz consultancy company target mainly mass scale production from custom made

chair furniture market in the chair market situation. So we can see that the characteristic

of their product are going to be machine made, knock down furniture based on steel,

nylon, wood, stainless steel and other need raw materials. Moreover the product range of

in the initial stage will include various types of chairs such as cafeteria chairs, staff

chairs, meeting chairs, auditorium chairs and stadium chairs and sofa etc.

Before presenting to this chapter the segment and running routine of the business of

prowiz company need to present. The headquarter of the company is situated in Aunderi

of mumbai and it is the main office and manufacturing factory or production plant of

chair items for chair market. After manufacturing chair items then distribute another

branches, which located in the crowded area of cities such as bang lore, Delhi and pune.

For bang lore and Delhi branches they distribute chairs in the hands of distributors and

ten to the dealers and in the final state distribution were finished in the hand of retailers.

So we can see routine of chair items in the market only in that area and for pune branch it

target whole selling only and no chance to know the real feeling and making survey to the

customers. That branch target to the whole selling but management team n correspond

leaders are link each other so we can know other routine and business situation of other

branches through the management team and leaders of pune.

Thus it is clear that through the proposed product range may be unique and different than

the existing products, the generic nature of the product offering is note changed. Products

of the company made from several kinds of raw material but there is a great deal of

variation in the process of the same furniture type. For example, tiger 1034 chair designs

made from same raw materials and same design and same type but price is varied from

3500, 3800 too 4600.|So the finished products are also differentiated on the basis of

handle foam and stem, basic of carving, fixing of artifacts for decorative purposes,

polishing and styling.

Thus a simple sounding item like a seating chair can be made in hundred of varieties and

price can be changed depend on their designs. For example style of 2045 with price 1700

to style of 2001 with price of 8800 for an exclusive furnishing, quality of raw materials,

excellent polishing and designing. This clearly shows that furniture items as a class of

product serve more than functional needs.

Moreover the furniture items serve as a psychological needs such as life style, status,

mental feeling of peace, comfort and satisfaction etc. Concern with the buying process of

buyers actually it is extremely complex and it is seen that no marketer can survive unless

it is understood well.

When the product base is limited and so is the volume offered for sales, marketer has to

understand a small group of customers in order to be successful In pune branch it doesn t

concentrate on the mind and feeling and buying process of individuals because it is not

long time for chair items in the market n not target for retailing but for other branches,

companies have been doing business for long time ago. The groups have excellent

understanding of their customers and the influencing middlemen such as architects,

interior decorators, carpenters, and contractors..etc.

However when the group is planning mass scale production and produce standardized

furniture their customer base n opinion and survey is varied in thousands. Yet in order to

succeed, these group must understand about these opinion of customer and buying pattern

of individuals which will serve and provide for the future development of company the

detail of the survey are presented in this chapter with the help of management team and

leader in pune branch.

3.2 DETAILS OF THE CUSTOMER SURVEY

Because of the budgetary constraints, time factors, communication difficulties and

routine of business in pune branch, it cannot get the right chance to view the individual

and household. Likewise classification of the exact area and ensuring a representative of

all the areas such as Shivajinagar, Bibwewadi, Pimpri and so on are not implemented.

But this surveying is based on the connection on the individual household and company

so can rely on get sufficient information about the chair market and opinion of customers.

Making on the survey of the individual, a lot of deliberations about the profile of the

households who will be the most important buyers of the proposed new products. It was

agreed that these households would have the following chacteristics.

Depend on area of household and business because it can determine the need of

chair items and sofa for them.

Well-established household of business may need more furniture than established

ones.

Income and earning of the household may reflect the business of the household

and it can consider as a main role.

These household and business must be link and situated within the location of the

companies market quarter.

Ensure to get the detail information, several of reality households meeting all

these requirements are interviewed.

In this survey the questionnaire was partly structured and partly open the respondents

were the survey was on behalf of prowiz consultancy company. They were also informed

about the purpose of the survey.

When making the interview and question it was decided to use a man and woman team

for the household and this was done to ensure better receptivity and trust. All the

investigators are well trained in various aspects to ready for making the interview and

survey. So data collection stage is very exact and sufficient to know about the opinion of

individual and reflection of the people on company. in order to work out the value of the

furniture in the households at the present time scale data on all the prices of all furniture

items and types was required. This factor was obtained in a disguised approach from

some chair dealer and traders from various locations in the city. So survey of traders for

current price meets the need of project.

3.3 METHODOLOGY FOR DATA PRESENTATION

In making the chair survey the household and business are classified according to their

financial income and their class. For example, A1 group is small business or not well

known one in the business are or middle class household. A2 group is one kind of

business who get succeed in the business to some extent or upper middle class house hold

and A3 group represents well known business in the market or upper class households.

3.4 FINDING FROM THE CONSUMER SURVEY AND CONCLUSIONS

According to the survey on the customer group, we come to know sofa and chairs item

market and how many percentage they used for their household and business. Several

households reported about separate chairs use in the drawing room and other rooms and

others executive chairs, staff chairs, visitor s chairs, cafeteria chairs and director s chairs

were made survey on the business n other companies. In several households, the same

chairs were used for dining purpose and drawing room seating purpose. The preferred

materials were wood, steel, stainless steel and also aluminum and plastic.

Although plastic chairs are so rare to produce in the company but in the part of

customers, owing to fewer prices, variety of design and light weights are emerging to be

a real competition to wood and steel based chairs. Concern with sofa, Sofa was owned by

nearly 60% of the household s surveyed. The ownership increased from small household

to large household. For business it starts from small company to large company and its

usage depend on their situation of business Wood was the most preferred material and

round about 87%. As far as single sofas are concerned the ownership was around 39%

overall. Main sofa as well as single sofa is important n useful for business and household.

So in conclusion, sofa and chairs have a good potential but in order to made and ready

made, more marketing efforts will have to be undertaken than normal.

In the buying process of furniture, the buying pattern of customers has a choice between

making it as specifications and buying readymade. The data shows that both the buying

patterns are quite substantially prevalent. So in the case of dining chairs and sofa (main as

well as small) inclination to buy ready made is slightly higher but some customer wan t to

make buying made to order to fix their desires. Thus this kind of survey provide to some

extent to the customer-buying pattern between made to order and ready-made furniture.

Prevailing to the buying process of customers, various chairs including dining chairs and

several sitting chairs furniture are made to order is 35 % and ready made furniture items

are 62%. In sofa (main items) made to order is 33% and ready made purchase is 56%.

Likewise sofa(small items) made to order is 31% and ready made purchase is 69%.

Initially company has gone to the ready made market so this information will have to be

considered carefully. They will have to understand the advantages offered by made to

order items and must counter tem through their marketing strategy in order to be

successful. But sofa (small item) made to order is preferred largely by A3 household.

. While surveying about the distances traveled while buying furniture items, it can be

seen belief of the customers because they believe that the nearest furniture selling shop is

not necessarily the best one to supply their desire apart from table in which case they

prefer shops near their residence, so they want to make long distance to travel and choose

their likes. But for companies and business, they choose their likes in the shop and no

need to make long distance for that case initially their companies and business located in

the downtown mostly.

Most of the customer round about 70% have traveled more than 3km distance to get their

like in shop because they said they don t like buying furniture near their residence and

they didn t consider any cost and time for their shopping.

Distance

traveled

A1 A2 A3

Purchase items Purchase items Purchase items

More than 3km 65 75 85

Less than 3km 35 25 15

It can be seen in the table to know the customer distance traveled for purchase items. So

in conclusion in furniture buying process including chairs and sofa for households, short

distance s not a major consideration.

3.5 FUTURE PLANS OF BUYING FURNITURE

Moreover in the case of A1 households, the number of purchased items was higher than

made to order items (average of 4.5 and 3 respectively). However in A2 households and

A3 household the proposition of purchased items was progressively less compared to

make to order items. For the entire group group of households the difference between

them was marginally higher in the favor of purchased items (average of 4.5 and 4

respectively). In conclusion, As the area of households is increased tendency to make to

order furniture items is increase but market for ready make items is very much there even

among higher area households.

While selling and purchasing items, repairing is one part of role in chair furniture. Out of

150 respondents only about 5% need of repairs in chair items. That was happened

because of loose joints. But none of them reported any serious problem in requiring

major repairs or getting the items repaired once the need arose. So repairing is so rare

event and not a major role in manufacturing and selling chair items. By and large no

repairs are reported (over 95% of the households) and those who reported repairs did not

face any problems fin repairs.

For these companies, according to the making survey, buying g process of customer are

which prefer in buying readymade furniture are more prefer than made to order furniture.

These reasons are listed below.

Buying ready made furniture like sofa and various chairs, they can get

immediately whenever they want and it is the most important reason for their

buying and 55% of the respondents stated that reasons.

Another factor is that they can get the exact required quality, color, size n price

buying ready-made furniture these factors was stated by 35% of the respondents..

Ready-made furniture is cheaper than made to order furniture it was another

reason and it was stated 15% of the respondents. But actually these statement was

revealed by A1 group and more than compare with A2 and A3 group.

That statement shows that A1 group is more sensible than other groups in price of

furniture.

Repair required

Require repairing 5(5%)

Not require repairing 145(95%)

Total 150

The other reasons were no time to survive did not know trusted carpenter/interior

designer known shopkeeper more variety of choices available etc. Were also

reported. However their production was not significant.

Initially Prowiz Company was going to offer ready-made manufacturing; the reasons that

have emerged above can be used as a part of communication strategy.

A1 A2 A3 Total

No of respondents 35 45 25 100

Reason for buying

Required immediately 65% 50% 55% 54%

Got exactly as desired 20% 35% 45% 35%

Cheaper than making 25% 15% 5% 15%

No time to survive, no guarantee of quality 5% - 5% 3%

Didn t know carpenter or interior designer - 12% 3% 4%

Others (known shopkeepers, more choice, etc) - 6% 3% 4%

Although company targeted readymade furniture and customer like buying ready made

furniture but in other case made to order furniture is more reasonable n attractive to the

buying pattern of customers in sometimes. This variety of reason is listed below

according to the opinion of customers.

Nearly half of the respondents (50%) who answered this questioned stated that the

main thing is required quality is not available for buying ready made furniture.

According to the 52% of respondents stated that wanted it to fit into the available

space and their desire is the reason for preference over ready-made furniture.

Nearly half of the respondents (50%) who answered this questioned stated that the

main thing is required quality is not available for buying ready made furniture.

Another factor is those consumers want to fit the utilization of available space

rather than ready-made furniture items.

16% of correspondents said that quality assurance is main thing n one

consideration for the buying of made to order items than ready-made furniture.

This perception will have to be corrected through their communication strategy

and also through their rigorous product quality.

The other factors are ready made furniture costly, raw materials available such as

wood and steels etc. and well knowing designer and carpenters are another some

of the reasons of these items.

Moreover selection of the shop is another important case for buying items in buying

process of consumers. According to the survey, 50% of consumers visited and make

shopping known or previous determined shop before making shopping items. So the

choice of the shop is much earlier and important in buying decision. Several

considerations such as previous experience, feedback from friends/relatives, advertising,

publicity etc. But 40% of consumer reported visiting more than one shop before deciding

on the shop. In conclusion, a good publicity is an important factor in the buying and

selection of shop for buying items. Company must be ensured it and otherwise variety

choice in the shop, excellent salesmanship and pleasant décor must be paid proper

attention.

A1 A2 A3

Visited known

shops and purchase

53% 49% 35%

Visited several shop

and purchase

40% 45% 35%

See in exhibition

and purchase

- - 15%

Others (advertise

and other place)

3% 3% 5%

Also 80% of the buying process is concern with their choice, decision of the designers

was already made and so prefer made the furniture than ready made. The remaining 20%

of the respondents undertook an active search of locating the designers. This suggestion

again that good feedback from satisfied a customer is a factor responsible for the choice

of the designers.

So comparing these two items, there is virtually no difference but quality and price are

two major considerations followed by quality and budget, color, style fashion and others.

To ensure quality in them the most important factor is trust wither in shopkeeper or in

the interior designer. it is followed by the verification of the claims of shopkeepers or

designers. These factors area also related to the trust. So one thing creation of trust is the

most important consideration when making decision of buying items or owing furniture

and company should have to create it among its potential buyers.

Another consideration of buying furniture is decision making for buying in the

customers. Over 50% of reported that in decision-making all family members are

involved decided together. However nearly one third of the household husband or

breadwinner or elder males are the sole decision maker for that. Involvement of relative,

friends are so rare event and not reported by large number of consumers.

Survey on the willingness of consumer for exchange furniture is another factor for

customer survey. In furniture item including chairs and sofa are made of raw material

such as wood steel stainless steel and nylon etc.. These items can be used for long time

but on their hand style will becomes out of date. So most of consumers want to change

their old style furniture items with another up to date new ones. But in Indian market

there is virtually none exist of secondhand furniture market at a satisfactory level.

According to the survey, 5% of the total items are available for exchange with the new

furniture provided the exchange is a fair one.

So in conclusion, this is good opportunity for the production company to be properly

exploited. Manufacturers can device a scheme with dealers dealing in items to open a

second market new furniture items can be sold to replace them. Few years back there is

no market for second hand cars or two wheelers. Today in Indian we can seen variety of

market for them and do exist. We can see in the television market. Hence there is no

reason why such an idea will fail in the future items. Company can seriously consider this

idea for implementation.

3.6 FINDING FROM THE STUDY DISCUSSIONS

As mentioned earlier that buying furniture items is so complex and it has long term life n

used by several family members but also relatives, peers, acquaintances and business

associates. So most of furniture can full functional needs and psychological needs of

buyers. Consumers have variety of choices of basic material style, design, color and

aesthetic appeal to select from the furniture market by covering a larger price range.

In making study discussion we can find a lot of factor it is concern with the buying

process of consumer ad their opinion. These factors can be illustrated as below:

Major investment for life time-items can be used for long term and they think it is

one kind of investment for their business and household.

A well-known shop and feedback from their environment and neighbor is the

major consideration for customers in buying.

Price and price relationship with the quality of product is another factor for

buying process.

Comparing wit the foreign items with local item are another consideration for

customer and when they buy a new one will compare with foreign one in quality,

style, color and other things.

Another factor of view on ready made furniture, made to order furniture and

knock down furniture are include and must be consider relying on the buying

process of customers in marketing.

CHAPTER-IV

ANALYSIS OF DEALER/ ARCHITECTS/ INTERIOR

DESIGNERS

CHAPTER IV

ANALYSIS OF DEALER /ARCHITECTS/ INTERIOR DESIGNERS

4.1 INTRODUCTIONS

In chapter (iv) will illustrate clearly that chair buying/ process is influenced largely by the

dealer or shop keepers (in the case of buying readymade chairs) and interior designers (in

the case of making custom built chairs). In order to develop these insights of these

influences another survey was planed. So one of the major objectives of this chapter is

that to develop and know about the insights of the chair market in pune city. The detail of

the survey of chair market concern with dealer/ architects and interior designers will

discuss in this chapter.

4.2 APPROACH

According to the previous chapter, prowix consultancy company in pune branch didn t

interest in targeting in retailing but whole selling is main target so direct joining to the

institutes, companies and another whole seller and buyers and we can get information

from these dealers n other whole buyers. Moreover, for pune branch, it participates as

wholesalers under the branch of mumbai headquarter and has accumulated experiences

over a considerable period of time and provide a lot of survey under the guidance of

management team.

To answer the main question from dealer who wishes to buy chair is the people who

have already been dealing in selling chairs. So dealers are the main targets for this

survey. Also architects and interior designers are another role of people who are involved

in manufacturing and producing chairs for market. They have their own experiences and

know kedge about how to make chairs for market and customer needs. So we decided to

elicit responses from both of these categories.

Actually prowiz supply the requirement of residential need and decoration of home and

office and institutes directly or through their influencers.

Traditionally the relationship between the manufacturer of chairs, on the one hand and

the makers of chair as a custom built solution as part of the total interiors, on the other

hands has not been very chummy at the best of times. So we can say that interior

designers are competitors of ready made chairs items and their opinions and view would

surely be very useful.

Prowiz has been already specialized in making chairs in marketing. When they made

chairs they also use various items for products and choose the appropriate and qualified

handle stem and foams. The didn t use just only wood based items and limited their new

products to wood based item only. Chairs items are made in other items too. Steel is a

major component of making chairs at times nylon and steel are another component of

manufacturing chair items.

Lately another major component of making chair items is stainless steel and these items

have been tried successfully as chair components. Of course much of the hardware

consist of metal but that refers to component of every chairs. As an overview, chair made

in these materials area also alternatives, ie.competition. Competition also comes in form

of custom-built furniture, as state above. Competition emanates also from alternative

lifestyles.

For chair furniture, it was used widely in urban are in such kind of type such as institutes

by using of chairs for classroom, laboratory and multimedia room for students and

another items staff chairs, meeting chairs director chairs are used for private and public

company in urban area and stadium chairs are used for stadium and others and at least

sofa are used for household items and decoration in their sitting room. So in rural area,

apart form upper class family it is so rare to use chairs as their decoration of their house.

Insight-in a broader sense, converting a life style could also be considered as a means of

targeting expanding market. Perception by competing elements has been included in the

study to understand the historical trends and the emerging trends of consumer preference,

to see if any patterns are discernible.

4.3 METHODOLOGY EMPLOYED

Concern with the information obtained through trade and interior designers, there are two

set of questioning concern with it. In making question with company management team

support as a leading role on behalf of these types and it was decided that the best way of

set questions to be augments by explanatory discussions with the interviewees, otherwise

management team of company, in order to ensure not only that the person has the

understood the meaning of the question, but also that the response makes sense and it can

be noted as useful information for survey.

Actually making question to the individual architects and interior designers are not serve

much purpose knowing after the clients indicated so the schedule for information

collection was modified to include the following.

o Group of architects and interior designer would be addressed collectively and a

detail discussion and it can lead and ensure bring out views of company and

production opinion on marketing and information of product manufacturing and

selling in market.

o Among the group, choosing a few architect s and interior designers for detailed

interviewing without resorting to any specific questionnaire so that far more in

depth exchanges could entail without bias.

So stated in the earlier say that prowiz consultancy company in pune branch is not

enough big and targeting in whole selling so we make out discussion and survey with

management team on behalf of real practical with these persons and these information we

get from team is enough and sufficient for project.

Thus we decided to conduct a lot of discussion and interviews with shop owner and

management team .The questions were set with reference to the following main

consideration of obtaining information.

To get the information which make decision concern with the outlets of chairs

items regarding consumer orientation.

To obtain and get accurate information of estimate total sale n turn over of chair

furniture in market

To understand the consumer perception from different views while making any

buying decision of chairs

To know time and priorities of buyers and their choice with respect to buying

decisions when they actually purchase for their office or institutes e.g. who like

to buy in which qualities and choosing appropriate items for their business.

To understand the proper status and business of buying patterns concern with their

status of business , private institute, director s opinion and other decoration of

home and how they use and apply to this chair furniture in their business and

communities.

To observe the expectation of buyers from the products they are buying and the

relative important they attached to considerations of utilities, price, and comfort

of operation, mobility, aesthetics and blending, conformities to business etc.

To observe the warrant special attention to any need and supply from company

for any significant changes of consumer profiles.

To decide on the important criteria that influence people s decision for following

buyer segmentation.

To assess if customer education is required with regard to knockdown furniture

etc.

To remain alert to any other possibility for important of company and customer

orientation.

While collecting and making survey to information, was to be alert to any insights that

should reflect on the buyers mind work so to be beneficial of marketing of company s

chair product in the long run.

4.4 INSIGHTS OF CHAIR FURNITURE MARKETS FROM DEALERS/

SHOPKEEPERS

From the responses, company s main product is manufacturing and production of

various chair furniture such as cafeteria chairs; staff chairs, director chairs, auditorium

chairs, stadium chairs and sofa so it appears there is almost equal of these furniture items

are bought. Buyer decision on chair furniture buying is not very closely related with

aesthetics in mind- more as utilitarian decision.

With regard to the question on the basic material used in the chair furniture items, every

dealer sold various designed chairs but sofa is less because company target whole selling

and at one time it can sell numbers of chairs for their business and especially that kind of

dealing occurred in the marketing with institutes. So auditorium chairs and stadium are

most likely to sell in chair market.

Among them. Plastic chairs are most likely to sell because of cost advantage. If

consumers can be made aware of comparable (and affordable) prices of the wooden

chairs- with the definite and known advantages, they can be weaned away from plastics.

Moreover dining chairs with added comfort may be very attractive to buyers.

On the question of uses the chairs are apt to more than 80% of those questioned

mentioned comfort as the second most important application. In the not too distance past,

easy hairs were quite popular With the severe space limitations in modern home and

business such as institute and company they are not in use. But a more comfortable

design of a dining chair could well double as an easy chair. They could be promoted to

that effect.

Aesthetics is quickly becoming an important consideration. According to the view of

dealers concern with the preference of consumers while making buying decision.

Aesthetics is first for their consideration than other two factors such as price and

durability. But these factors are influences upon the buying decision of consumers. More

than 50% of buyers are included in the one of the first three. Otherwise price and

durability are foremost consideration n they make priority these two factors. So

flexibility, blending, operational comfort, simplicity etc are criteria that may have to be

included in the collective psyche- depending on Prowix Company s strength.

Regarding to the individual customer s situation such as their incomes., age , status ,

survey on their likes and preferences is very difficult for company because initially

company didn t target to retailing and but for whole selling so surveying on middle,

lower and upper class family cannot be found in this projects. But it will be discuss on the

opinion of shopkeepers and whole sell dealer only.

Concern with the view of shopkeepers and whole seller, special design of chair furniture

is most influence on people buying desire. All business and user prefer globalize and

standard design and less prefer in traditional design. So company s promotional literature

must bring out this feature of their furniture with force. It is virtually important to educate

the special status accorded by the usage of standardized raw material and imported items.

The relation ship between floor area of the business or workshop and expenditure is very

important factor. A hefty 80% of dealers realized there is some connection between floor

are and expenditure made. But dealers and interior designers have their own figures and a

very wide range of this perception.

In production of chairs items, most of the ready made items are partly made of metal-

mostly steel, stainless steel, nylon and aluminum etc.. But in the case of custom-built

chair item except for hardware some design of foam wood based or wood components are

used. Of course handle, stem are used in these wood materials. But various designed

chairs for director chairs and stadium chairs and auditorium chairs are getting to be

increasing popular.

Sometimes Expect for Diwali or other open season there is very little clientele it was

opinion of some dealers. That doest mean that at other time there is less dealing in

marketing. But compared to buying from shops, the process of buying chair furniture is

fairly spread out through the year. Off-season discount may be a worthwhile marketing

strategy of companies for their products.

Regard with the displaying of product for company they display various type of their

chairs including nylon, steel and aluminum and hydraulic chairs in their own shop. This

trend may be gainfully utilized to highlight the mix displaying of chairs items. Sometimes

plastic chairs are used for this case and it intend to the substantial reduction in the cost of

especially chairs, which made in wood.

Moreover shop cater to chosen appropriate price for a given chair furniture for their

buyers ad whole buyers. So in some shop, they fixed price for their product it depends on

the situation and area of shop and but in some shop it may be different although items are

in same qualities, same type and same standard. So concern with the price range for one

area is illustrated in one chapter before.

4.5 INSIGHTS FROM INTERIOR DESIGNERS

The presentation of the insights from interior designers is illustration without

qualification but insights gained from a focus group discussion are also taken into

account.

Concern with holistic approach in designing, the need and requirement of any business

and household are changing and dynamic and they always require newer form and design

for theirs. So the prediction of requirement of the any business and people are unlimited.

Likewise the production of the company needs to change and maintain necessary items to

suit for people s desire. For example, in a company the management team or correspond

leader will change their business situation such as designing of their office s sitting room

or the pattern of seating arrangement or other decoration etc. .So it may be expanded or

contracts. Time change, financial situation change, business grew up and residencies shift

so for the production company will have to change according to this situation in design

and production. It is the main responsibilities of production designers. But for buying of

specific items, the requirement can be more specific and hence the solution more

predictable.

Moreover making a decision of buying furniture, price becomes a part of any décor only

in it s surrounding and it is not easy to give priority though to conformity or blending. A

ready made item make look attractive useful and worthwhile for their need and desire etc.

and not much existing decor. So piece is important function for the buyer buying process

in furniture market. Another factor for buyer is aesthetics and it is a broad concept of

buying process. It means that when they approach to a shop to buy chair furniture more

reference is available for selection of design etc

So when someone buys furniture from a shop, any piece of chair furniture, much

consideration concern with aesthetics take a main role for his or hers. Every residence

and business has its own peculiarities, angles, floor area, surrounding, surface and are of

their business, projections, niches, limitations and potential. So these factors may not be

accepted any ready made furniture and have to create any well suit furniture for their

limitations, need, and designers are main role to cater to this necessarities.

The one view from the interior designers and architects is the connection might exist

between the carpet area of any residence or business and the overall expenditure on

decoration of their interiors. One aspect is to express any such connection as money spent

for investing their business or founding their business and then spent on completing its

decoration. Another factor is in terms of directly relating the area with expenditure for

buying chair furniture.

In some cases, if the business is well known and successful established in their field the

designer tends to estimate a higher numerator and in that case price is not much speak for

items but design, durability, style and standardized pattern are much more important for

their work. So the client or decision of buyer is willing to pay the enhanced price of a

established designer for the status it may provide or the assumed advantage of better

constancy or the tacit promise of good results.

But for the company ready-made chair furniture is manufactured and it is standardized,

qualified for every class of people and designing and manufacturing according to the

above case is very rare and it is not main target and items for company. Because the

ready made furniture is manufactured only in the industry or factory and help in reducing

noise in their business or area due to fixing and manufacturing to the desire of buyer or

business.

Being manufacturing ready-made item for buyer another factor is time spent on getting

work done at residence area could be reduced considerably - apart from other nuisance

that may cut down drastically there is very little through given by either designers or

shops. No one seems to have considered that that is a very effective way to mitigate

problems. Yet there is arrangement that the problems are real and bothersome for both

buyer and seller.

Nowadays, population is so crowded in urban area and ownership house or flat neighbors

do constantly bicker and will make complain about the loud and annoying sound of doing

their noise. In case if the work is going on in the evening, it may surely disturb their

environments and people. Because older person usually take a rest and relax in the

evening and children may have to study to their homework in household. So outsider

work force is interfering in ones routing and normal life even as a matter of safety

consideration. Therefore there is a very strong case for undertaking the work of educating

the public on such matter in case if they don t like ready made furniture and not suit for

their area and need special items for their limitation but it is so rare case and may be

occurred once in a thousand times.

But with the changing take place in lifestyle and with continuous social exchange

according to the globalization a new customer profile seem less prone to accept any claim

on face value or on someone s say so. He may not become more knowledgeable but

holes opinions and is not averse to expressing them. This is the factors of ready made

furnishing has definite connotation to modern context in chair marketing.

Illustrated in the earlier chapters, company manufactured and produced three kinds of

chair furniture such as high, middle and low furniture for different customers and buyers

although these items have same designs, size and production. For successful business or

financially settled business, they prefer high qualities of products and for not well known

business or financial established business the middle class qualities and lower class

qualities are preferred. Although company produce three level of production depend on

the view and design of buyer or customers but qualities and size designs are commonly

equal and can seized the desire of customers. But this is need for education. Since prowiz

use handle, form and stem to a great extend in production in their future, highlighting its

close connection to status could be quite rewarding. This can be very attractive for those

upwardly mobile who are ken to up with the Joneses.

Another factor is salvaging of old furniture or material. This is great sense of wanting to

somehow reuse of the old furniture items that is being replaced. This kind of feeling is

commonly occurred in the middle class of business. Therefore those in this group who

want to replenish old furniture are tempted to harness the services of designers I the hope

that they will somehow do some justice to this need of theirs.

Those in the higher income groups also welcome any suggestion to the effect that saving

in material costs are possible, although they do not raise such a point on their own.

Designers are averse to such salvaging for reasons some of which are apparent. For

example, costing of such salvaging results is disputes. There is wide difference in the

perceptions of designers and their clients regarding the value added by such salving. So

they try to steer clear of repairing work.

Otherwise, company based on production depends on machine base and manual requiring

special skills. In these both side, the skill and ability of designers are important and

necessary for trust and believe in customer mind. This mean that the quality of making

product depend on ability, sincerity, consistency, level of skill, aesthetic panache,

credibility and mutual respect between customers and designers.

In production, design of any items is very concern with the buying process of buyers and

these have an aspect of tradition. Before hanging and accepting globalization people

accept traditional design in furniture and standing traditions of any design are created

over a long period covering generation. So in production chair furniture items, modern

design as well as traditional designs creations are knowledge for designers and architects.

Yet consumers are also enamored of any thing that promises glamour and a sense of

being different. New design can also connote modernity to be able to blend these two

effectively can be rewarding. So ethnic pride cannot be taken for granted-although if is a

very strong emotion. Moreover illustrated in the earlier chapters, company produces

custom built furniture and ready-made furniture among of them ready made furniture is

produced around the year but custom-built furniture is produced at the time of customer

need and order.

Another factor is person like or dislikes are most reveling in the choice of chairs. In

showroom chairs are displaying with various colors, size and design so customer can

choose make order whatever they like and so these items are suitable for displaying and

attracting the desire of buyers. Likewise, sofas are next extent and also being brought

increasing more in shop.

People use the fact of furniture item making at home as a status symbol and one of the

reason for doing so is the perception by clients that is the assured of the quality of raw

material used and also that they can have better quality control upon their products and

another factor is they can get their needed design. According to some getting furniture

made is a status symbol. This opinion of the consumer is the surprising reaction by the

shopkeepers in response to the query regarding the nuisance of making furniture at home.

But for prowiz company ready-made chair furniture are produced in the industry or

factory and cant concentrate making chair furniture at customer s home or outside

workshop, but it is so rare for company.

According to the opinion o f customer, buying ready-made items might not suit available

spaces of their business, location of their work and other projections and different for

different business moreover color, size and designs may not be suit for their need. So

from business to business, person-to-person ready-made furniture cannot cater to such

fancies and this is one reason of many people more prefer furniture done at home to

buying.

One reason people prefer furniture to be made than buying is the satisfaction of using

items designed by them because they can contribute in some way in their creation.

Therefore when people buy furniture, they- almost logically- expects to be less

expensive. That is to say that people wish to set a price lower for another person s choice.

Moreover we can make survey to the buying process of buyer on old furniture and new

furniture in shop and showroom.

In the showroom of the company many chairs items display and sell to the customer but

sometimes it may be left in the showroom as old furniture for long time without selling.

Some time some people prefer buying old furniture than new furniture but in other case

some people prefer buying new furniture than old furniture.

When most of the people buy old furniture, they want to assign a lower price for

products. Of course one reason for doing so is mentioned above and yet intrinsically the

price of furniture could be in on way inferior in value. In effect for those who are not

greatly concerned in having new furniture made under their personal supervision there

exists a large variety of ready-made furniture. For this segment of the market certain

different approach marketing maybe in order. Still it opens the possibility of buyback,

which in turn can help those who are willing to trade their old pieces for new ones.

The decision to expand into machined furniture has come not a day too soon. Lately there

has been a spurt in the outlets selling imported furniture items, which is based on foreign

designs. Surely globalization has had some effect on the minds of people so that they

want to fell modern in outlook. The perceived utilitarian approach of some of the foreign

furniture may also attract some people. Prowiz has aggressively insists on ethnic designs.

This then in their unique selling proposition. Highlighting Indian designs with stress on

standardization and attention to quality can be incorporated into their marketing strategy.

In the buying process of prowiz company, which target the whole selling so not deal with

the individual and cannot make survey who is decision maker between man and woman

in a household but surveying on the whole business and institute, the leaders or

management team or response person or making discussion within the group members

are the decision maker of buying process.

An architect who is himself and interior designer felt that there is fairly clear demarcation

in the product range for decorators and shops. Chairs and mostly sofa sets he stressed are

best left alone by decorators to the shop where he finished products is actually observed

and experienced. To him there is no real competition between designers and shops. Each

ha its own and separable clientele.

4.6 INSIGHTS ABOUT KNOW KNOCKDOWN FURNITURE

Initially the meaning of modular or knockdown is rather unclear, need for understanding

of it by people it seems clear that the term itself is little understood by outlet owners.

Acknowledging ignorance is not readily forthcoming and perceptions of its vulnerability

are widely differing. But on the question of concept of knockdown furniture is getting

accept and need to classify and definite.

Reactions were part of the all of responses from diverse segment and people. Just as

shopkeepers of ready-made furniture were a section so were the architects and other

designer of interiors. Dealers have to face talks of various reaction from the buyers or

clients and these reaction may be varied between two extremes such as it is not fit for use

and yet it is suit for use. From the varying responses it is quite clear that the meaning of

knockdown furniture is not clear and prowiz will have to educate people in this site.

4.7 PERCEPTION ABOUT PROWIZ

Company manufacture high, medium, low class product for varies person and business

for crowded urban area so these are a fine outfit. But they should be cater their best

quality output to smaller cities and should be set the reduced prices for essential quality

comparable to present range of products. These factors may attract to the financial

established companies, business, or household and welcome the chance of improved

looks to their business for them.

Company concentrate on their product quality control and they didn t deny any

responsibilities for their products and make necessary commitments to improve their

product qualities. Just as although they have full right of denied responsibilities, they

didn t say no and replaced a set of new product instead of it .It is better result for

company marketing among the competitors but not suit for a particular application.

CHAPTER-V

PROWIZ S DIVERSIFICATION PROJECTS

CHAPTER V

PROWIZ S DIVERSIFICATION PROJECTS

5.1. RESTRUCTURING OF WOODEN FURNITURE INDUSTRY In present pune chair market situation, there are not much amount of chair industry and

showroom for individual retailing and whole selling. Among them most of their sale are

run in local area. The numbers of national wide or regional wider are far too small and

none of them enjoy any significant brand equity. So penetrating with qualified chairs

production and positioning in customer mind is very easy to launch for chair product.

Albeit the metropolitan cities are dotted with high visibility furniture showrooms

including chairs products which source their requirements from captive workshops o r

local workshops/ factory level manufacturing o r import them from European countries.

The state of affair is now slate to change in favor large capacity machine made

standardized furniture items selling in large territories.

According to this junction, the destruction of mass production chair product industry is

taking roots and the former manufacturers are likely to create entry barriers for next

manufacturer. These typical entry barriers will include economic of scale, capital

requirement of entry and products differentiation. Prowiz company has already decided in

this chair market by consideration to this barriers and market situation.

Having decided to enter in this chair market prowiz consultancy has no recourse other

than to care fully pursue their growth diversification project if they want to maintain

growth in this new business.

5.2 IMPLICATION OF RESTRUCTURING CHAIR INDUSTRY TO PROWIZ

PROJECT

In mass scale production of the standardized chairs, manufacturing technology changes

through the use of computer aided manufacturing and high level automation so it will call

for formal and system oriented internal and external producers which are not exactly in

consonance with the existing organizational culture of prowiz. Nonetheless in order to be

successful prowiz will have to manage such a change successfully.

Prowiz manufactures no t only fixed item but also knock down items in industry to

standardized chairs which illustrated in strength and weakness of prowiz in earlier

chapter, so these type of manufacturing is not done by other large scale manufacturer so

far. So prowiz can take a substantive competitive advantage n which can offer unique

positioning in customer mind in market and can get the customer pull strategies.

Prowiz make and fully exploited through marketing driven and positioning in customer

mind in such kind of situation moreover company extend their market efforts to other

crowded urban n cities such as mumbai, bang lore, Delhi and pune and can get the

interest of customers and keep abreast with the competitors. In later other crowded urban

centers in the states and other states will have to be reached and extended.

For a manufacturing company, to run business operations, manufacturing strategies is

very crucial and adequate role and must put in place correctly. By using and formulating

these correct strategies company can produce correct amount of output in right quality at

right place and can save time and money. Prowiz formulate these facts of strategies

rhythmically and get successful business among the competitors and chair market.

Some of the adequate roles of production department are illustrated as below:

Planning and scheduling of working time.

Technical effects of manufacturing.

Design& R&D: tool room management.

Product standardization.

Inspection and quality control management.

Maintenances technique etc.

To run a successful business, HRD (human resource development) is necessary and has

to be undertaking all personnel works. It is obvious that in managerial state professional

workers managers, engineers, designers and functional specialists will be employed

together with their administrative and clerical support. Moreover shop floor supervisors,

skilled, semiskilled and unskilled technicians/ workers and maintained and inspection

personnel must combined and employed together. By giving imparted job specific

training to these personnel, HRD can manage and formulate personnel policies for

business.

In a business marketing and manufacturing are connected together and can t separate

each other. So marketing department has to be deal with these facts:

The breadth of product line

Inventory level of finished products

The frequency of model decision/style change

Time period in developing, testing and introduction in new products

Concern with the product mix in pune branch, there is no dealer not customers in market

because for Pune Company it targeted with the whole selling and direct contact with the

whole number of chairs customers such as institute private company and public

companies not target with the retailing market. so the study has no chance to survey and

make the question to the dealers average number of furniture items sold by you per

month and also per annum and another question in each of the items answered by you

indicate the proportion of total all designed chairs.

But according to the word of management and leader of pune branch, annual turnover of

mumbai headquarter is round about 62 million and just in pune branch annual turnover is

2 million only because launching chair market in pune is not so far and they are trying to

get positioning in the market and among the competitors. But later they hope to extend

their market in pune and can seize chair business other than competitors.

In aspect of financial management, it will participate as a major role for new project of

company. Proper capital structure, cash inflows and out flows, working capital

management, credit policies and pricing strategy for raw materials and product aimed at

target rate of return will have to be managed effectly. Prowiz has not taken loans from

financial institution so far but for the new project they appear to take and have to do so.

5.3 CONCLUSION

In conclusion, prowiz new project is sound and excellent schedule for their business. But

to get successful business among competitors and market have to apply total integrated

management approach and undertake. Family-related managers are keeping away from

business and this will require a new mind set. Prowiz will have to be prepared for such a

change. So, personnel management, quality management for products and financial

management policies must be initiative for new project.

CHAPTER-VI

SUGGESTION FOR FUTURE COURSE OF PLANNING

6.1 INTRODUCTION

After studying prowiz consultancy company and surveying customers, dealers/ interior

designers of company it can be seen that prowiz company s conceptualization and

strategies for future plan are sound and suitable strategies for pune chair market. There is

a tremendous scope for standardized, wood-based, lather-based, traditional and modern

styled chair manufacturing. However certain limitation of prowiz consultancy company

will have to be overcome in order to be successful in the new venture.

6.2 SUGGESTIONS FOR FUTURE COURSE OF PLANNING

Actually our mandate was limited to study pune market with a view to suggest a market

plan for the new project. Based on our study we have made a few suggestions for the

future course of planning and future necessary strategies to launch in pune market for

prowiz consultancy company.

Suggestions for future course of planning for prowiz s future market

What prowiz will have to do?

1. Formulation of Broad Cooperate Policy& strategy, which will include as follows.

Have to plan organization strategy n policy at least 5 years n more.

Have to formulate organization structure, division sections, etc

Financial, production, materials and human resource related to sub strategies.

Marketing strategies

(It cannot be obviously prepared in isolation. it has to be simultaneous exercise with other

functional strategies.)

2. Marketing plan

o Have to decide the marketing plan period

o Have to define the sale targeting and positioning

o Choose product mix target for selling chair furniture

o Pricing decisions for the products at every stage up to customer s reach

o Costing of the product up to factory warehouse and deciding the margin

for the distribution

o Distribution chain decision (channel member required, contract and terms

and conditions, transport arrangements, inventories to be maintained,

credit policies).

Middlemen sale force in personal selling

o Advertising (budgets, media planning, copy decisions) and publicity

(influencer, media), sale promotion (dealer display, brochures) after sale

services and guarantees.

Marketing information system designing and implementation.

SUGGESTION ON MARKETING STRATEGY FOR PROWIZ S NEW PROJECT

Company has a good reputation in other cities although pune branch is not long in

penetrating in market so should have to advertise and make publicity heavily to

create an image.

Advertising will have to be informative as this concept is new.

Concern with the price it should be competitive because about 5% or 10% higher

price will accept by the customer but more than it is very difficult to accept

customers.

In showroom demonstration, should be used more effective and attractive ways

such as explaining to the customer about pros and cons of furniture, why the new

products are different and advantages and usages of items so that should

employed polite sell man and explain through advertisement and personal selling.

Guarantee is most important case for selling and creating confidence. Similarly,

after sale services, if required would have to be offered.

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