Asahi India Glass Project by DEEPAK SINGH Aaa

8/3/2019 Asahi India Glass Project by DEEPAK SINGH Aaa

1/57

See More, See Clear

1 | S u m m e r P r o j e c t R e p o r t

Abstract

Asahi India Glass Ltd. (AIS) is the largest integrated glass company in India, manufacturing a

wide range of international quality automotive safety glass, float glass, architectural processed

glass and glass products.

AIS is jointly promoted by the Labroo family, Asahi Glass Co. Ltd., Japan and Maruti Suzuki

India Ltd. AIS have the following three Strategic Business Units (SBUs):

Automotive Glass UnitAIS Auto Glass

Float Glass UnitAIS Float Glass

AIS Glass Solutions LtdAIS Glass Solutions

The Indian Glass Industry is still at nascent stage and it is rapidly developing. The glass industry

is very organized. The business environment is getting more competitive by the entry of new

players beside the three major companies as Saint Gobain, AIS and Modiguard.

Problem statement

The impact of advertisement on the demand of commodity product specifically Glass is to find

out. India is the only country where glass as commodity product is being advertised on TV. But

their effectiveness in impacting consumers mind for using more glass is not clear. How the ad

affects the market share and perception of the glass in the mind of consumers is to be figured out.

Scope of the Study

The study will be conducted in India with limited scope of A and B class cities where 80%

(building material) commodities are sold. Primary focus of the study will be on Glass. The mostof the survey is limited to Mumbai and nearby city around it.


2/57

See More, See Clear


The Research Problem

The research problem is to find out the impact of advertisement on demand of commodity

product specifically glass.

Research Objective

Based on the problem statement, the research objectives are:

To find out whether consumers are really involved in Glass buying decision if yes then to

what extent?

To find out, Are consumers really aware of any Glass or cement Co, brand or Glassproducts?

To find out Does advertising has any impact in the minds of consumers?

Can the advertising be measured or connected with a equation to the top and bottom line

of the company.

Research is going to be descriptive as well as applied in order to achieve the desired objectives.

The null hypothesis and the research hypothesis has been developed keeping assumption that the

research will be specifically for the commodity product glass and keeping all the factors

affecting the glass busying constant other than advertisements.

The null hypothesis and alternate hypothesis is prepared to prove the research objectives.

After the research study we should be able to judge the above hypothesis by accepting or

rejecting it. The result will tell us about the effectiveness of the advertisement on glass

(commodity product) and should also explain the awareness on the different glass brands.

The Research Design

Research is going to be descriptive as well as applied in order to achieve the desired

objectives. Most of the objectives will be derived from the primary data after the survey. Focus


3/57

See More, See Clear


group, stratified sampling technique in A and B class cities particularly Mumbai and its nearby

cities will be surveyed.

Research approach

In this study, both sample survey and statistical approaches will be applied to collect data and

establish the relationships between variables of interest.

Sources of data

Both secondary (documents and records) and primary (a sample survey of customers and

channel partners in this case) data sources will be used in this work.

Research instrument

The structured questionnaire will be used for the survey. The SPSS tool is being used for the

analysis purpose. The complete research study will be done in 8 weeks parts.


4/57

See More, See Clear


Industry Overview

Float Glass Industry in India

India with more than one billion people, one sixth of the worlds total population has become an

attractive destination for investment in Glass Industry for some time, it contributes around (6 %)

one sixteenth of the worlds total Gross Domestic Product. It is one of the largest economies of

the world that had a middle-class consumer market in excess of 300 million people. With

increasing purchasing power and development of service sector, India is definitely on the radar

of all the glass manufacturing companies

Float glass Industry in India is relatively new; the first float glass plant was established as

recently as 15 years back. In this period India has emerged an important player in float glass

production and today there are six float lines in operation and five new lines are at different

stages of completion. It goes without saying that the rapid increase in demand during the late

1990s due to construction activities, in addition to provoking a cutback in exports, charmed some

international firms which now are the major producers of float glass in the country.

India had been using sheet and lower quality float glass through ages. Secondary processing was

negligible with the majority of glass being installed in basic, monolithic form such as casting

glasses. Until 1992, only sheet glass was being manufactured in the country, with a limited

quantity of float glass being imported. In 1993, the first float glass plant was set. Since then new

varieties of float and sheet glass capacities have been added. Against decades of old practice of

casting glass in sheets over plain surfaces, the technology of float glass had brought about a

significant change in the production and use of glass. The switch from low quality sheet glass

with limited range and thickness to the sophisticated float glass took place in just a decade.

Totally, the flat glass industry grew by about 90% between 2000 and 2007, resulting in a

compound annual growth rate of 11%. The per capita consumption of glass, which was 0.41 kg

in 1999, reached 0.80% kg in 2007. The demand for flat glass in India has increased at an

average rate of 12 percent to 15 percent each year for the past five years. Respective market


5/57

See More, See Clear


share of float and sheet glass is 89 percent and 11 percent. However, the greater proportion of

sheet and lower-quality float capacity will gradually phase out and be replaced with high-quality

float. The two main consuming sectors of flat glass in India are the construction and automotive

industries, both of which have been experiencing hyper growth for the last five years.

User Segments

Eighty-three percent of the glass produced is used in the construction industry, 15 percent in the

automotive industry and 2 percent in miscellaneous industries such as furniture and photo

frames. The automobile industry, four-wheelers, has registered 18.6 percent growth between

January and November 2007. The construction sector is growing around 12 percent per annum.

India exports about 13,000 tons of glass per month to the Middle East, African countries, Europe

and South America. The rapid increase in the demand for flat glass in the domestic market has

resulted in a cutback in exports by as much as 60 percent in the last couple of years.

Major Producers

The major producers of float glass in India are three foreign joint ventures and an Indian

company:

Asahi India Glass Ltd Taloja, Maharashtra, Roorkee, UP; Asahi Indias two plants produce 500

tons and 750 tons per day. Asahi India Glass Ltd. It started operations in December 1994. It

started off as a joint venture between the Tatas and Asahis of Japan. With the exit of the Asahis

in 2003, it was taken over by Asahi India Safety, the automotive glass manufacturing company.

The merged entity is known as Asahi India Glass Ltd. The company started a new float plant

with a 750-ton capacity on Jan. 1, 2007 at Uttaranchal in North India.

Saint-Gobain Glass India Ltd., Sriperumbudur, Tamil Nadu; Saint-Gobains two plants produce

550 tons and 700 tons per day. It started operations in 2000 and is Indias largest capacity float

plant.It is a 100 percent subsidiary of the Saint-Gobain Group

Gujarat Guardian Ltd., Ankleshwar, Gujarat, Gujarat Guardian, the first company to set up float

glass plant in India produces 550 tons per day; It is a joint venture between Guardian Industries

International Corp. of the United States and Indias Modi Group.


6/57

See More, See Clear


Current Scenario

The domestic glass industry and trade has been progressing at a consistent impressive rate of

growth of 12-13% per annum during the last nine years. However this progress has come to a

rude halt in the fourth quarter of the current financial year 2010-2011 and the rate of growth has

turned negative. During the last financial year 2009-10 all the three float glass manufacturing

Triveni Glass in Allahabad produces 200 tons of float glass per day. Its a mini float plant based

on Chinese float-glass technology.

Current capacity versus demand in India

An excess capacity of raw glass in the industry was experienced in the beginning of 2006. This

excess capacity could become larger in the years to come if current investment plans see the light

of day. In 2007, the excess capacity was four times that of 2006, and in 2008 it could be six

times that of 2006. This is assuming demand continues to grow at the current double-digit pace.

It is interesting to note that the cumulative profit of flat-glass manufacturers in India is still in the

red.

Future Prospectus

The construction and automotive industries are the most important consuming sectors, almost 80

million square feet of land in India is earmarked for shopping malls, taking into consideration

Special Economic Zones and Corporate offices, there is an immense opportunity in Indian Glass

industry. Nowadays, taking climate, safety, sound attenuation, energy conservation and

aesthetics into consideration, builders are opting for more glass in their construction. The glass

revolution is also taking place in the automotive industry which is predicted to grow at more than

15% till 2012. Anyway, it isnt all roses for Indian glass industry, problems like the overcapacity

of raw glass (and a projected surplus of processed glass); Chinese competition (in spite of anti-

dumping duties) and the lack of codes of standards threaten Indian glass industry. As far as

overcapacity concerned, analysts say that the supply will far exceed demand at least until 2009.

Excess capacity, increased competition and the development of a regulatory framework are the

real future challenges for the Indian glass industry.


7/57

See More, See Clear


companies operating in the country SGG, GGL and AIS had combined sales of 2043 tonnes

per day of float glass on an average. However , during the fourth quarter ( January- March ) of

the current financial year 2010-2011 this has slide to 1885 tonnes per day on an average having a

negative growth rate of -8.38%.

Year MT/Day %Growth

2002-03 886 2.66

2003-04 980 10.6

2004-05 1106 12.85

2005-06 1310 18.44

2006-07 1427 8.93

2007-08 1402 14.22

2008-09 1695 20.89

2009-10 2043 20.46

2010-11 ( Jan-Mar) 1885 -8.38

Table 1 : Domestic Float Glass Sales

The float glass sales trend shows that from past nine years sales was increasing continuously, but

due to economic slowdown and recessionary condition it has decreased in the beginning of 2010-11 turning into negative growth rate in the sales .


8/57

See More, See Clear


Figure 1: Domestic Float Glass Sales

Figure 2 : Sales Growth of Float Glass

The total capacity of including all the major float glass companies in India comes 4650 tonnes

per day. Out of which the three major companies like Saint-Gobain Glass India Ltd. has 1400

0

500

1000

1500

2000

2500

Sales

Domestic Float Glass Sales(MT/Day)

-10

-5

0

5

10

15

20

25

-10, -8.38

%SalesGrowth

%Growth

Sales Growth of Float Glass(in

percentage)


9/57

See More, See Clear


tonnes per day, Asahi India Glass Ltd. with 1200 tonnes per day and Gujarat Guardian Ltd. with

550 tonnes per day. The other three companies Gold Plus Float Glass Industry Ltd., H.N.G Float

Glass Ltd. and Gold Plus Float Glass Industry Ltd. have corresponding capacity of 550, 550 and

400 tonnes per day.

Total Capacity ( in tonnes per day)

Manufacturers Capacity( in tonnes per day)

Gujarat Guardian Ltd. 550

Asahi India Glass Ltd. 1200

Saint-Gobain Glass India Ltd. 1400

Gold Plus Float Glass Industry Ltd. 400

Sejal Architectural Glass Ltd. 550

H.N.G Float Glass Ltd. 550

Total Capacity 4650

Domestic Sales on an average/day 1885

Export sales on an average/day 350

Domestic + Exports 2235

Extra Supplies or Stocks 2415

Table 2 : Total Capacity


10/57

See More, See Clear


Figure 3 : Company wise capacity of production

So far as the concern of export sale, SGG and AIS are the performing extremely well by

recording export sales of more than 700 tonnes per day on an average while the export figure for

GGL is negligible as its production capacity is limited to 500 TPD. The total capacity gets

absorbed mostly in domestic market with 1885 mostly whereas export sales per day are 350

TPD. The extra supplies or stocks are 2415 tonnes per day.

Break-up of Capacity ( in tonnes per day)

Total Capacity 4650

Domestic Sales on an average/day 1885

Export sales on an average/day 350

Extra Supplies or Stocks 2415

Table 3 : Break-up of Capacity

550, 12%

1200, 26%

1400, 30%

400, 8%

550,

12%

550, 12%

Capacity( in tonnes per day)

Gujarat Guardian Ltd.

Asahi India Glass Ltd.

Saint-Gobain Glass

India Ltd.

Gold Plus Float Glass

Industry Ltd.

Sejal Architectural

Glass Ltd.

H.N.G Float Glass Ltd.


11/57

See More, See Clear


Figure 4 : Break-up of Capacity

Market Share

The SGG has the highest market share of 38.89%, whereas AIS stands second with 31.52 %

market share. The GGL has 23.23% market share and the Gold plus float glass Industry Ltd.

covers 6.37% market share.

41%

7%

52%

Break-up of Capacity( in tonnes per day)

Domestic Sales on an

average/day

Export sales on an

average/day

Extra Supplies or Stocks

Float Glass : Market Share ( Domestic Market )

Manufacturers Market Share

Saint-Gobain Glass India Ltd. 38.89%

Asahi India Glass Ltd. 31.51%

Gujarat Guardian Ltd. 23.23%

Gold Plus Float Glass Industry Ltd. 6.37%


12/57

See More, See Clear


Table 4 : Market Share

Figure 5 : Domestic Market Share

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Saint-Gobain

Glass India

Ltd.

Asahi India

Glass Ltd.

Gujarat

Guardian Ltd.

Gold Plus

Float Glass

Industry Ltd.

Market Share 38.89% 31.51% 23.23% 6.37%

38.89%

31.51%

23.23%

6.37%

%M

arketShare

Float Glass :Market Share ( Domestic Market )


13/57

See More, See Clear


Company Profile

AIS is the largest integrated glass company in India, manufacturing a wide range of international

quality automotive safety glass, float glass, architectural processed glass and glass products.

AIS has a strong strategic position in the Indian glass industry. AIS is a leader in auto glass and

architectural processed glass segments and has prominent position in Float glass market.

AIS is jointly promoted by the Labroo family, Asahi Glass Co. Ltd., Japan and Maruti Suzuki

India Ltd. The promoters jointly hold 55.24% of paid up equity capital of AIS, with remaining

44.76% held by public.

Being a widely held listed public company with close to 62,000 shareholders, AIS remains

committed to maintain the highest standards of corporate governance and shareholder

accountability. The equity shares of AIS are listed on the Bombay Stock Exchange (BSE) and

National Stock Exchange (NSE) in India.

AIS is transforming itself from being a manufacturer of world-class glass and glass products to a

solutions provider by moving up the value chain of auto glass and architectural glass and

providing design, products and services that make glass more versatile and user-friendly.

AIS have the following three Strategic Business Units (SBUs):

Automotive Glass UnitAIS Auto Glass

Float Glass UnitAIS Float Glass

AIS Glass Solutions LtdAIS Glass Solutions

AIS Auto Glass is India's largest manufacturer of world class automotive safety glass and is, in

fact, one of the largest in the field in Asia. It meets over 80% automotive glass requirement of

the Indian passenger car industry.

AIS Float Glass is the leading manufacturer of international quality float glass in the country.

Prior to its merger with AIS, it was known as Floatglass India Ltd.


14/57


15/57

See More, See Clear


Mission

AISs Mission is JIKKO Execution for Excellence

With major investments in place, the time is now to reap the benefits by execution for excellence

Guiding principles

All actions of AIS are driven by the following guiding principles:

Creation of value for Shareholders

Customer Satisfaction

Respect for Environment

Use of Facts

Continuous Improvement

Strengthening of Systems

Upgradation of Human Potential through education and training

Social Consciousness

Collaborators

Asahi Glass Co., Ltd., Japan

Asahi Glass Co. Ltd, Japan, was established in 1907. Today, it is one of the leading glass

producers of the world. AGC has a global network of over 350 subsidiaries and affiliates in

Japan and 20 and above other countries. The groups operations comprise of flat glass,

automotive glass, and have recently diversified into display glass, chemicals, electronics and

energy.

AGC has evolved as a top multinational glass manufacturer with a leading share of the global

market in most key glass products. AGC group is the largest glass manufacturer of the world

with 12% global market share in the flat glass segment and 30% global market share in the

automotive glass segment. It has further captured the top share in CRT glass, TFT display glass

and PDP glass in the display field as well.


16/57

See More, See Clear


For the year 2007, the AGC Group has recorded net sales of 1681 billions of yen, and with

Operating Net Income of 69 billions of yen.

SBUS

AIS Auto Glass

OVERVIEW

AIS Auto Glass is the most reputed and trusted supplier in Indian automotive glass industry

having over 21 years of technological expertise and is the largest manufacturer of world-class

automotive safety glass in India.

AIS Auto Glass has been awarded the prestigious Deming Application Prize, 2007, certifying the

outstanding performance improvements achieved by it through application of Total Quality

Management (TQM).

Today, AIS Auto Glass has a body of knowledge to be able to deliver cutting edge auto glass

solutions and value addition to its customers, most of whom are global and demanding players.

AIS Auto Glass is overwhelmingly the first choice supplier for most automotive manufacturers

in India. Hence, AIS Auto Glass is either the sole or a leading supplier of auto glass to most

passenger car manufacturers in India, supplying about 80% of their auto glass requirement. Apart

from supplying to OEMs in India, AIS Auto Glass has significant presence in the domestic after-

market with a market share of 43%. It also exports auto glass to the after-markets in Europe and

Pakistan.

AIS Auto Glass has state-of-the-art plants located at Rewari-Haryana, Roorkee-Uttrakhand

(North India) and Chennai- Tamil Nadu (South India) with a combined capacity to produce 2.81

million car sets per annum.


17/57

See More, See Clear


Product Range

AIS Auto Glass is India's largest manufacturer of automotive safety glass. The unit

manufactures the full range of automotive safety glass, which includes:

Laminated Windshield

Tempered Glass for Side and Backlites

Silver Printed Defogger Glass

Antenna Printed Backlites

Black Ceramic Printed Flush Fitting Glass

Encapsulated Fixed Glass

Solar Control Glass

IR Cut Glass

UV Cut Glass

Reflective (PET) Windshield

Water Repellant Glass

Glass Antenna

Extruded Windshield

Clients

AIS Auto Glass : Share of Business

Customer SOB (%)

Maruti Suzuki India Ltd. 100

International Cars and Motors 100

Reva Motors 100

Honda Motors 100

Ford India 99

Toyota Kirloskar Motors 99


18/57

See More, See Clear


Fiat India 83

Hyundai Motors 72

General Motors 67

Volvo India 57

Mahindra & Mahindra 52

TATA Motors 24

Piaggio 22

Hindustan Motors 17

Eicher Motors 13

Swaraj Mazda 5

Force Motors 1

Market Position

Sole supplier to almost the entire Indian passenger car industry, with a current market

share in excess of 80 %.

Significant presence in the after-market with a market share of over 43%.

Exporting auto glass to after-market in Europe and Pakistan.


19/57

See More, See Clear


AIS Glass Solution

AIS Glass Solutions is the face of the architectural glass processing business of AIS. As a

separate business unit, AIS Glass Solutions focuses on offering innovative architectural glass

solutions to customers.

AIS Glass Solutions aims at raising per capita consumption of glass in the country to bring it at

par with the other developed countries in the world. It disseminates knowledge for increased

awareness of the use and application of architectural glass through innovative offerings.

AIS Glass Solutions has been supplying a wide range of high quality architectural processed

glass, comprising of toughened glass, laminated glass, insulated glass units and value added glass

products. It also caters to the project segment, meeting glass and related requirements of

construction projects.

Its product portfolio includes:

AIS Strong glass - impact resistant glass.

AIS Security glass - burglar resistant glass.

AIS Acoustic glass - sound resistant glass.

Glass products like shower enclosures, tabletops, shelves.

The state-of-the-art architectural glass processing facilities are located at Taloja (West India),

Chennai (South India), Rewari and Roorkee (North India). The Roorkee facility is the largest

architectural glass processing facility in the country.


20/57

See More, See Clear


AIS Float Glass

OVERVIEW

AIS Float Glass is a premier manufacturer of international quality float glass and value-added

glass like reflective glass and mirror.

AIS Float Glass has state-of-the-art glass manufacturing plants located at Taloja near Mumbai

(West India) and Roorkee (North India) with a total production capacity of 1,200 tons per day

(TPD). Its newly commissioned unit at IGP Roorkee has manufacturing facilities for float glass,

superior quality heat reflective glass and new generation environment friendly mirror.

PRODUCT RANGE

AIS Float Glass offers a diversified product range of float glass in thickness of 2 mm - 12

mm in different shades and tints of clear, green, grey, bronze and blue in varying sizes. Its

product portfolio includes world-class range of international quality Supersilver heat-

reflective glass, the worlds finest quality "Environment Friendly" copper & lead free

premium AIS Mirrors, AIS Dcor lacquered glass & AIS Krystal Frosted glass for interior

applications.


21/57

See More, See Clear



22/57

See More, See Clear


Application Of AIS Glass

With its wide product range and its status as the undisputed quality leader, AIS Glass is

the natural choice in most of the application segments:

Window Glazing: AIS Float Glasss superior strength, high optical clarity, distortion

free, smooth surface and bigger sizes give design flexibility, making it the natural choice

for all window glazing applications.

Curtain walls: Availability of AIS Tinted Float & AIS Heat Reflective Glass in various

shapes and sizes enable you to design the latest in curtain walls. Besides modern

expression, it reduces the overall dead weight of the building, allows faster construction

and requires less expensive maintenance. The heat-absorbing / heat-reflective

characteristic reduces the air-conditioning load substantially, thus saving precious energy.

Partition Walls: Due to its inherent strength and availability in large sizes, AIS Float

Glass can be extensively used for partitions. Glass partitions add to the aesthetics of the

room and give a feeling of spaciousness.

Doors: AIS Float Glass is extensively used in doors and entrances, exuding beauty and

elegance.

Shop-Fronts: Brilliantly clear and transparent shop-fronts made of Float Glass provide a

distinct image to a showroom.

Decorations: Modern expression, transparency, easy maintenance and non-

inflammability of AIS Float Glass makes it an indispensable material for display cabinets

Shop, partitioning, screening and designing modern and high-class Showrooms and

Shopping Malls.

Furniture: AIS Float Glass, due to its versatility, is ideal for furniture, tabletops, shelves,

cabinets, showcases and sliding doors of large almirahs and cupboards etc.


23/57

See More, See Clear


Balustrades: The use of AIS Float Glass in balustrades gives a graceful effect to the

staircases.

Mirrors: AIS Float Glass gives perfect reflected images when mirrored. Also AIS

Mirrors, are world-class quality mirrors, being copper & lead free and corrosion resistant.

Automobile Safety Glass: AIS Float Glass Unit is the single largest supplier to the OEM

segment. Its European Green glass is used extensively in almost all premium cars.

Special Applications: AIS Float Glass can be further processed to be used for skylights,

atriums, museums, art galleries, aquariums, lifts, dance floors etc.

MARKET POSITION

AIS Float Glass enjoys 38.89 % market share in the Indian float glass market.

CLIENTS

The diversified product portfolio of AIS Float Glass includes float glass in varying sizes,

shapes and thickness. AIS's quality products make it the preferred choice of a wide range

of clients including

Automotive Safety Glass Manufacturers

Processors

Dealers and Retailers

Architects

Interior Decorators

Builders

Aluminium Fabricators

Carpenters

Furniture Manufacturers


24/57

See More, See Clear


Advantages of Float Glass over its Counterparts

Quality

Owing to the greater degree of quality control in the furnace conditions, the final productis free from body defects such as waves, stones etc. The reason for this lies in the process itself:

the molten glass is formed on a bed of molten tin, improving the accuracy of glass immensely.

In the other processes, the molten ribbon of glass is drawn out mechanically between rollers,

making it vulnerable to variations in thickness. Thus the float process offers better quality.

Control

Because the product passes horizontally from one chamber to another, a greater degree of

inspection and quality control can be exercised unlike the other process where the glass is pulledup against the force of gravity.

Variety

The float glass can be manufactured with thickness upto 19mm, to be used for applications such

as tabletops; furniture etc.This is not possible in sheet glass, as the glass would become brittle at

such high thickness.

Household Consumers

With glass finding applications in an array of arenas, the client base of AIS Float Glass is

an ever-expanding one.


25/57


26/57

See More, See Clear


Uniqueness

The average American is exposed to approximately 3,000 advertising messages per day.

That means everything from the logo on your watch, to product placement in television andmovies, down to traditional commercials and print ads. And all this static is in addition to

children, family, job and various other aspects of everyday life that are constantly vying for

attention. To break through all of the clutter, a brand has to stand out, has to be memorable it

has to be unique.

Relevance

This attribute seems like a no-brainer, but it is an important check-off. If a brand is

positioned in a way that has no bearing in the life of the audience, then how can the audience be

expected to develop an affinity for the brand?

Credibility

Things can be true, but not necessarily believable. For instance, Kia brand automobiles

could spend hundreds of millions of dollars on the development of a luxury car that rivals BMW

in every aspect. However, it is a good bet that such an endeavor would fail. At the very least, Kia

could only command a fraction of the retail price of BMWs. The Kia brand has successfully

positioned itself as a low-cost automobile maker. People would simply not believe the company

had produced a car that was on par with BMW. The lessons heredont let your business stray

from your brand. Once credibility in your brand is lost, it is near impossible to regain it. Just see

Arthur Andersen, WorldCom or Enron.

Sustainability

This factor represents the most significant difference between advertising and pure

branding. An advertising campaign is finite, while a brand should theoretically be credible and

relevant forever. The core values inherent in a brand should reflect core human values. For

example, Nike's core value is achievement. McDonald's core value is convenience. Citibanks

core value is financial security. These values will be as relevant as in 2055 as they are in 2005,

which gives the brand consistency, staying power, and the ability to build consumer loyalty.


27/57

See More, See Clear


Advertising remains one of the cornerstones of marketing communications. However,

determining its impact on a firms performance continues to be a difficult proposition for many

marketing and advertising managers. Although firms in the USA spent over $230 billion on

advertising in 2001 (Coen, 2002), a clear link Between advertising expenditures and financial

performance remains somewhat Uncertain in many cases. One common belief is that advertising

creativity is an Essential element of advertising success (El-Murad and West, 2004; Smith and

Yang, 2004) and may lead to an improved financial performance, that is, as firms focus more

resources and develop more creative advertising, they will realize marginal benefits in the form

of higher sales, an increased market share and higher future earnings. While seemingly

reasonable, this particular belief fails to provide much more than an anecdotal basis for

determining the effects of advertising on a firms bottom line. While providing some useful

insights, these mostly academic studies typically failed to take into consideration the myriad of

other variables that also affect advertising effectiveness (e.g. differentiating message, repetition

and recall).


28/57

See More, See Clear


The Research Problem

The research problem is to find out the impact of advertisement on demand of commodity

product specifically glass.

Research Objective

Based on the problem statement, the research objectives are:

Primary objectives

The following objectives have been identified:

To find out whether consumers are really involved in Glass buying decision if yes then to

what extent?

To find out, Are consumers really aware of any Glass or cement Co, brand or Glass

products?

To find out Does advertising has any impact in the minds of consumers?

Can the advertising be measured or connected with a equation to the top and bottom line

of the company.

To find out, what attributes consumers are looking for in a glass or cement brand? Can

any value addition be done in a brand through TV advertising?

To find out whether TV advertising can help in building brands for commanding

premium or more market shares in commodity products?

Secondary objective

To find out the advertisement effectiveness on demand of glass.

Null hypothesis

1. There is no relationship between awareness of glass brand and income category.

2. End Consumers buying decision is greatly influenced by TV advertising and they tend to

think that it is a better Quality product.


29/57

See More, See Clear


3. End Consumers are aware of all the glass brands available in the market and they tend to

ask for a particular brand.

4. The end consumers decision to choose any brand is not affected, if they get impressed by

advertisement.

Alternative hypothesis

1. There is relationship between awareness of glass brand and income category.

2. End Consumers buying decision is not greatly influenced by TV advertising and they

dont tend to think that it is a better Quality product.

3. End Consumers are not aware of all the glass brands available in the market and theydont tend to ask for a particular brand.

4. The end consumers decision to choose any brand is affected, if they get impressed by

advertisement.

Scope of The Study

The study will be conducted in India with limited scope of A and B class cities where 80%

(building material) commodities are sold. Primary focus of the study will be on Glass. The most

of the survey is limited to Mumbai and nearby city around it.

Research Design

Research is going to be descriptive as well as applied in order to achieve the desired

objectives. The null hypothesis and the research hypothesis has been developed keeping

assumption that the research will be specifically for the commodity product glass and keeping all

the factors affecting the glass buying constant other than advertisements.

Research Methodology

In this study, both sample survey and statistical approaches will be applied to collect data and

establish the relationships between variables of interest. Sources of data: Both secondary

(Documents and Records of the company, Annual report) and primary (a sample SURVEY of


30/57

See More, See Clear


customers and channel partners (Builders, Dealers, Retailers, Architect) data sources will be used

in this work.

Sample sizeSample size is going to be decided once strata of samples are decided in different cities.

ss =

Z 2 * (p) * (1-p)

c 2

Where:

Z = Z value (e.g. 1.96 for 95% confidence level)

p = percentage picking a choice, expressed as decimal((.5 used for sample size needed)

c = confidence interval, expressed as decimal (e.g., .04 = 4)


31/57

See More, See Clear


Research Instrument

The questionnaire is divided into three categories as Category 1, Category 2, and Category 3.

Category 1 for House owner (End Consumer)

Category 2 for Architect, Retailer and Dealer

Category 3 for Builder

The questionnaire has different sets of question taking the objectives into consideration.

The first part having 5 questions for finding customer involvement in the buying process of

glass and in other commodity products.

The second part contains questions relating to customers thinking towards glass and its

usage/application.

The third partcontains 10 questions to know about the customers emotional reactions towards

advertisements.

The fourth part 5 questions, which measures the different medium affecting customersreactions towards the brand awareness and their influence on buying process.

The fifth part has 3 questions, which measure the perception of different brand of glass in the

mind of customers on different parameters such as the product quality to check the various

attributes he is looking for in a brand and the customer s overall satisfaction with the brand.

All the statements of these five parts have been framed on a five-point Likert scale ranging from

strongly agree to strongly disagree etc.

It also has ordinal scale and Nominal scale based question based on a binary (Yes /No) response

format.

Few open ended questions are also asked to know about the specific liking towards ads.


32/57

See More, See Clear


Tool of Data Analysis (SPSS)

The SPSS software has been used as tool for the data analysis. The following tests were

performed on the testing of hypothesis and for understanding the analysis.

1. Chi-square test

2. Correlation

3. Regression

4. Cross-Tabulation

5. Descriptive analysis

6. Discriminant analysis

7. Frequency distribution

Results and Conclusion

All the graphs having count on Y-axis and variables/parameters on X-axis have the value in

percentage of the respondents on the graph as label. They Y-axis corresponds to count and the

label on the graphs corresponds to the percentage of the respondents out of the total sample

size.

Hypothesis 1: There is no relationship between awareness of glass brand and income category.

The Chi-square test is performed to check the fit between the awareness of glass brand

and the income category. For this cross-tabulation function is used.

Aware of any glass brand * Family annual income Crosstabulation

Count

Family annual income

Total3-5 lakh 5-7 lakh Above 8 lakh

Aware ofany glassbrand

Yes 0 65 12 77

No 8 9 22 39

Total 8 74 34 116


33/57

See More, See Clear


Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 45.785(a) 2 .000Likelihood Ratio 49.199 2 .000

Linear-by-LinearAssociation

3.396 1 .065

N of Valid Cases116

a 1 cells (16.7%) have expected count less than 5. The minimum expected count is 2.69.

Figure 6: Awareness of Glass brands

As the Chi-square tests shows the significant value < 0.05. Hence the null hypothesis is rejected.

Hence, the awareness of brand is directly related to the family income category. From graph we

see those High income categories (> 8 lakh) are well aware of brand whereas the middle income

level is not aware of glass brand specifically.

Yes No

Aware of any glass brand

0

10

20

30

40

50

60

70

Count

6.9%

56.03%

7.76%10.34%

18.97%

Family annual

income

3-5 lakh

5-7 lakh

Above 8 lakh


34/57


35/57

See More, See Clear


As the approx. sig. value is quite high, so the null hypothesis is rejected. Here the

correlation between the advertisement of glass and the perception of better quality comes out to

be positive but as the value is only 0.091, which is very less. Hence there is such perception withrespect to commodity product like glass in the mind on end consumers even after watching TV

ads.

From the graph it is clear that the maximum people, who have seen the ads, disagree to

this fact.

Hypothesis 3: End Consumers are aware of all the glass brands available in the market and they

tend to ask for a particular brand.

The Correlation and cross tabulation technique is use to find the relationship between the

awareness of glass brands available in the market and their tendency to ask for aparticular brand of the glass.

Aware of any glass brand * Ask for particular brand Crosstabulation

Count

Ask for particular brand

TotalYes No

Aware ofany glassbrand

Yes 18 50 68

No 0 11 11

Total 18 61 79

Symmetric Measures

Value

Asymp.Std.

Error(a)Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .218 .041 1.965 .053(c)

Ordinal by Ordinal SpearmanCorrelation

.218 .041 1.965 .053(c)

N of Valid Cases 79

a Not assuming the null hypothesis.b Using the asymptotic standard error assuming the null hypothesis.c Based on normal approximation.


36/57

See More, See Clear


Figure 8: Awareness Vs Particular brand

As the sig. value is more than 0.05 level hence the null hypothesis is rejected. Here the

correlation value is positive 0.218, which is very less. Hence there is no high correlation between

the chosen parameters, so one has no such great effect on the other. Therefore, even if the end

consumers are aware of the glass brands they dont generally ask for it, in case of commodity

product like glass generally.

Hypothesis 4:The end consumers decision to choose any brand is not affected, if they get

impressed by advertisement.

The Bivariate correlation technique is used between the decision to choose any brand

and the impressed by ad variable.

Correlations

Yes No

Aware of any glass brand

0

10

20

30

40

50

Count

22.78%

63.29%

13.92%

Ask for particular

brand

Yes

No


37/57

See More, See Clear


Decision tochoose any

brandImressed by

ad

Decision to choose

any brand

Pearson Correlation 1 .567(**)

Sig. (2-tailed) . .000N 71 70

Imressed by ad Pearson Correlation .567(**) 1

Sig. (2-tailed) .000 .

N 70 89

** Correlation is significant at the 0.01 level (2-tailed).

As the Pearson correlation between the two variables is .567 and sig. is 0.000, hence the nullhypothesis is rejected. The variables are positively correlated and the value of correlation 0.567is pretty good. Hence if the end consumers get impressed by ad there is likely chance for them tothose that particular brand.

Findings

1.

The most of the consumers(78.3 %) dont go for buying the commodity productslike glass, steel etc.

Figure 9: Whether go for buying

21.7

78.3

Yes

No

Whether go for buying


38/57

See More, See Clear


Maximum numbers of people have not bought the glass (58.33%), hence theirinvolvement in the process is very low.

Figure 10: Purchase of glass

For the maximum percentage (64.2%) of end consumers the brand carries somewhatimportant. Hence this potential segment of consumers can be tapped in coming futures ifthe brand awareness among them is increased through the communication channel.

Importance of brand

Frequency Percent Valid PercentCumulative

Percent

Valid Not important 23 19.2 19.2 19.2

Somewhatimportant

77 64.2 64.2 83.3

Important 20 16.7 16.7 100.0

Total 120 100.0 100.0

Yes No

Bought glass in past or planning to buy

0

10

20

30

40

50

60

Percent

41.67

58.33


39/57

See More, See Clear


Yes No

Whether go for buying

0

10

20

30

40

50

60

Co

unt

20.83%

45.83%

0.83%

32.5%

Aware of any

glass brand

Yes

No

Figure 11: Importance of brand

The end consumers are aware of brand of glass are high with 66.7%, but the rest of the

consumers are not brand conscious. Hence the companies need to increase the awareness

among them.

Whether go for buying * Aware of any glass

brand Crosstabulation

Count

Aware of any

glass brandTotalYes No

Whether goforbuying

Yes 25 1 26No

55 39 94

Total 80 40 120

Correlations

Whether go

for buying

Aware of any

glass brandWhether go for buying Pearson Correlation 1 .329(**)

Sig. (2-tailed) . .000

N 120 120

Aware of any glassbrand

Pearson Correlation .329(**) 1

Sig. (2-tailed) .000 .

N 120 120

** Correlation is significant at the 0.01 level (2-tailed).

Not important Somewhat important Important

Imporatnce of brand

0

10

20

30

40

5060

70

Percent

19.2

64.2

16.7

Figure 12: Awareness Vs whether go for buying


40/57

See More, See Clear


From the correlation value we find that the both awareness of brand and whether they go for

buying have positive correlation but its not high enough to affect each other.

The time taken by the maximum end consumers ( 74.6%) at the retail counter is 0-15

minutes, hence it shows that they take very less time to decide upon choosing any glass

brand. Their involvement is low.

Time taken before choosing glass(at retail counter)

Frequency Percent Valid PercentCumulative

Percent

Valid 0-15minutes

53 44.2 74.6 74.6

16-30minutes

11 9.2 15.5 90.1

31-60minutes

7 5.8 9.9 100.0

Total 71 59.2 100.0Missing System 49 40.8Total 120 100.0

Figure 13: Time Taken at Retail Counter

Conclusion: Hence end consumers are not directly involved in the purchase of glass.

0-15 minutes 16-30 minutes 31-60 minutes

Time taken before choosing glass(at retail counter)

0

20

40

60

80

Percent

74.6

15.59.9


41/57

See More, See Clear


2. Most of the end consumers (77.2%) do not ask for a particular brand while purchasing glass.Out of which mostly customers (77.5%) ask for recommendations mostly, very few customerstake the decision to choose any brand on their own.

Figure 14: Preference for particular brand

Figure 15: Decision to choose any brand

Yes No

Ask for particular brand

0

20

40

60

80

Percent

22.8

77.2

On your own Ask for recommendationssometimes

Ask for recommendationsmostly

Decision to choose any brand

0

20

40

60

80

Percent

14.1 8.5

77.5


42/57

See More, See Clear


Most of the end consumer is influenced by carpenter, then retailer and lastly fromarchitects.

Influencer of recommendation * Specification by type and brand of glass Crosstabulation

Count

Specification by type and brand of glass

TotalBoth brandand type Only brand Only type Nothing

Influencer ofrecommendation

Architect 16 0 2 0 18

Retailer 12 2 8 2 24

Carpenter 24 0 8 3 35

Total 52 2 18 5 77

Conclusion

The most of the end consumers are influenced by carpenter and retailer. But high income endconsumers contact architect for recommendation.


43/57

See More, See Clear


Figure 16: Influencer of Recommendation

The regression equation can be established based on the parameters seen by the customers whilebuying glass.

Here the Ready to pay if influence by ad is the dependent variable , the independentvariables are colour, reputation of manufacturer, advertisement, brand name , statussymbol.

The regression holds true because the sig. value is


44/57

See More, See Clear


Recommendations

1. The commodity market has very less involvement of the end consumers in the buying

process , hence thee company should push dealers and retailers through different schemes

, gifts and by giving them awards of Best Retailer of the Year and Best Dealer of theYear awards. The visibility at the retail counter should be increased by giving them pad,

cutting tools to carpenters via retailers having AIS inscribed on it.

2. The companies can provide booklet containing samples of glass to carpenter to push theirproducts and increase their brand awareness. They can organize some kind of training onnew design to carpenters. They should distribute danglers to retailers shop and shouldprovide enough booklets, pad to them. They can also distribute calendar to retailers,carpenters and ultimately to house owners through this channel to increase their brandawareness and to push their sales.

3. The company should add more emotional, familiar and attractive to catch the attention,hence they should go for viral marketing and buzz marketing. They can put their videoson You tube to increase the awareness. The company should project their positioning

statement See More, See Clearin their advertising media.

4. The company can direct its advertisements through different channels towards thesefunctional benefits of glass. They should organize meets with retailers, should educateabout these functional benefits of glass. They should organize exhibition where they caninvite builders, architects and exhibit these benefits of glass to increase the awareness and

in long term sales.

5. The ad influence is very unsure in nature. There is no high effect on purchase of that incase of commodity product like glass. Hence the probability seems good, hence thecompany should increase the awareness among the consumers because the lessdifferentiation between the products with respect to customers. Hence the other mode ofcommunications like PR, sponsorships to events will be good method to create theawareness.

6. The advertisements activities should be targeted on the middle segment. The awareness

can be increased by involving into the PR activities and through tie-ups with the social

society/community like BMC and CARE to increase the awareness level among the

middle income category.


45/57

See More, See Clear


7. They can also have the tie-ups with the known builders and architects to advertise their

brands on their websites. The awareness can also be increased among the channel

partners through regular mailers about their products and through greetings during

festivals. The company should use hoardings/billboards at the different festival and

important occasions to increase awareness of their products and brands.


46/57

See More, See Clear


BIBLIGRAPHY

Books

Philip Kotler, Kevin Lane Keller, Abraham Koshy and Mithileshwar Jha (13th Edition),

Marketing Management, Pearson Education.

Neil J. Salkind ( 3rd Edition), Statistics for people who ( think they) hate statistics, Sage

publications.

Keller, Kevin L. (1987), Memory Factors in Advertising: The Effect of Advertising Retrieval

Clues on Brand Evaluation, Journal of Consumer Research, 14 (December), pp.31633.

Website

www.wikipedia.org

www.managementparadise.com

www.asahiindia.com

Newspaper

The Times Of India

Business Standard
http://www.wikipedia.org/http://www.wikipedia.org/http://www.managementparadise.com/http://www.managementparadise.com/http://www.asahiindia.com/http://www.asahiindia.com/http://www.asahiindia.com/http://www.managementparadise.com/http://www.wikipedia.org/


47/57

See More, See Clear


Annexure-1

Questionnaire

Good Morning / Good Evening,

I, Deepak Kumar Singh am a student of MBA(IIP) Marketing from Global school of

Management Science. I am conducting a survey for understanding the effectiveness of

advertisements on demand of commodity products (Glass). I shall be grateful; if you could spare

some time to answer the questions that I have.

I would like to assure you that all the answers given by you will be kept confidential and will be

aggregated to draw the results. Thanking you in advance.

1. What is your occupation out of the following two categories? Please tick mark.

Category I

House owner (End consumer)

Category II

Architect Retailer Dealer

Category III

Builder

Please fill the questionnaire according to the instructions given below:-

Category I Go to SECTION I

Category II Go to SECTION II

Category II Go to SECTION III


48/57

See More, See Clear


SECTION I

1. Do you go for buying products like cement, Glass and steel or any such commodity product?

Yes No

2. How important is the brand for buying such products for you?

1- Not Important at all , 2- Not Important, 3- Somewhat Important , 4- Important, 5- Very

Important

Not Important at all 1 2 3 4 5 Very Important

3. Are you aware of any glass brand available in the market?

Yes No

If yes, Please specify the names.

.

4. Have you bought glass in the past or planning to buy in next one year?

Yes No

If Yes, then continue, else go to Question 5.

a. Do you ask for a particular brand while buying glass, cement or such commodity

product?

Yes No

b. How do you decide to choose any brand of such kind of products?

On your own Ask for recommendation sometimes

Ask for recommendation mostly


49/57

See More, See Clear


c. How do they generally recommend, if nothing is asked from your end? Please mark

according to the specification with respect to type and brand told to you by the

following people.

Influencer

Specify

Architect Carpenter Retailers Builder Dealer

Both brand and

type

Only brand

Only type

Nothing

d. How much time do you take before buying the glass at the retail counter?

0-15 minutes

16-30 minutes

31-60 minutes

More than one hour

5. What do you think about the usage/application of glass for the following purpose?

Please select a phrase that best describes your view how Strongly you feel about the

dimension.

5 - Strongly Agree, 4- Agree, 3- Have no opinion, 2- Disagree, 1- Strongly Disagree

Maintains Safety Strongly Agree 5 4 3 2 1 Strongly Disagree

Maintains Privacy Strongly Agree 5 4 3 2 1 Strongly Disagree

Sound control Strongly Agree 5 4 3 2 1 Strongly Disagree


50/57

See More, See Clear


Saves electricity Strongly Agree 5 4 3 2 1 Strongly Disagree

6. Whom did you/ will you consult before buying glass?

Retailers Architect Carpenter

Builder Dealer

7. How frequently do you watch television? Please indicate out of the following options. Choose

one of the following option.

Very often (Daily) Often (3-4 days a week) Occasionally (1-2 days a

week)

Rarely (Once in a week) Never

8. Have you seen any advertisement regarding the glass in the TV?

Yes No

If Yes, then continue, else go to Question 17.

9. Which companys ad comes to your mind first when you think of glass?

10.What was the Ad about?

..

11.Did it impress you? What do you remember of the advertising? INTERVIEWR TO NOTE

DOWN VERBATIM.

Yes No

12.What did you like in the advertisements?

Message Entertainment Music Concept

Celebrity Emotion Fun


51/57

See More, See Clear


If anything else, please specify

13.Which ad do you remember among the following Ads of different brands of glass?

Kid in shower Ad China man Ad Shoaib Akhtar Ad

Small boy Ad Lady throwing water Ad Kids playing

with a ball

14. What did you like in the advertisement?

.

15. What do you/will you think about the glass, if you see any advertisements on TV?


dimensions.

5 - Strongly Agree, 4- Agree, 3- Have no opinion, 2- Disagree, 1- Strongly Disagree

Trustworthy brand Strongly Agree 5 4 3 2 1 Strongly Disagree

Better Quality Strongly Agree 5 4 3 2 1 Strongly Disagree

Preferred brand Strongly Agree 5 4 3 2 1 Strongly Disagree

16.How likely is it that the ad will influence you to undertake your action? Choose among the

following

Definitely Probably Not Sure Probably Not Definitely Not

17. If you are influenced by Ad, Will you be ready to pay extra for a branded glass? Please

select any one option showing the extent that you can pay extra in percentage.

Yes No,

If yes, then continue, else go to Question 21


52/57

See More, See Clear


1-5% more 5-10% more 10-15% more 10% and above

18. Through which medium you came to know about the following brands of glass? Please tick

mark.

Asahi Saint

Gobain

Modiguard Others

Ad on TV

Ad in magazine

Ad on radio

Hoarding/ Billboards

Meets

Saw display in shop

Relatives and friends

Mails/Internet

Actual user Experience

Sales people

19.What is the likelihood of purchasing the advertised brand of commodity products like glass,

cement?

More Often Less often Remain the same

20.Do you feel that you will ask for a particular brand after seeing the ad?

Definitely Probably Dont Know

Probably Not Definitely Not


53/57

See More, See Clear


21. Personal Details:

What is your family annual income?

0-2 lakh per annum 3-5 lakh per annum

5-7 lakh per annum Above 8 lakh per annum

Age: Upto 19 20-25 26-34 35-45 45+

Gender: Male Female


54/57

See More, See Clear


Section II- RETAILER/DEALER

1. Which BRANDS of Float Glass do you store and sell?

SGG & GGL SGG & AIS AIS & GGL All the brands Others

2. Which brand of Float Glass do you sell the most (the brand of Float Glass brand that is

sold most often), from your shop. Please rank them from 1-4 where 1- Highest selling and

4- Lowest selling.

Modiguard Saint Gobain AIS Imported

3. Which companys float glass is mostly preferred in the market? Please rankthem priority

wise in terms of demand in the market(From 1 to 4) where 1- Highest Priority and 4-

Lowest Priority.

Saint-Gobain Glass India Ltd. Gujarat Guardian Ltd (Modiguard)

Asahi India Glass Ltd. Imported

4. Do you think that the consumers are brand conscious while buying glass?


statement.

5- Strongly Agree, 4- Agree, 3- Have no opinion, 2- Disagree, 1- Strongly Disagree

Strongly Agree 5 4 3 2 1 Strongly Disagree

5. Do they ask any particular brand when they come to you?

Yes No

6. How often do they ask for your recommendation?

Very often Often Occasionally Rarely Never

7. What do you recommend to consumers when they come to you?

Both Brand and Type Only Brand Only Type Nothing


55/57


56/57

See More, See Clear


11. Do you feel that the consumers can pay extra if they are influenced by ad?


12.How much extra they can pay?

1-5% more 5-10% more 10-15% more 10% and above

13. Will you recommend the brands which you have used earlier?

Definitely Probably Dont know

Probably Not Definitely Not

12. Have you seen the advertisement of any glass company?

Yes No

Please specify the

names

If No, go to Question 17

13. What do you remember about the Ad?

.

14. How did you find the advertisement?

Unique Yes No

Relevant Yes No

Appealing Yes No

Increased interest Yes No

Emotional Yes No


57/57

See More, See ClearInformative about product Yes No

Familiar Yes No

Irritating Yes No

15.How likely is it that the ad will influence the consumers to undertake their action?
