PART-I

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HISTORY OF COMPANY

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HISTORY OF THE COMPANY

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 Unit – AIS Auto Glass

Float Glass Unit – AIS Float Glass

AIS Glass Solutions Ltd – AIS 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.

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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.

Literature survey

This is the most researched topic and various methods were adopted to check the

effectiveness of advertising by different researchers. But that previous research has not

specifically measured the impacts of advertising and brand value, and their joint effect,

on firm performance for the glass kind of commodity product. We could not find the

study which talks the likeable attributes in commodity products like glass. What exactly

customers are looking for in a glass? By examining the effects of advertising and brand

value, our work contributes to the existing literature.

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?

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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.

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

and its nearby cities will be surveyed.

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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.

Recommendations

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

buying process , hence the 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 the Year” 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.

1. The companies can provide booklet containing samples of glass to carpenter to

push their products and increase their brand awareness. They can organize some

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kind of training on new design to carpenters. They should distribute danglers,

calendars to retailers shop.

2. They can put their videos on “You tube “to increase the awareness. The company

should project their positioning statement “See More, See Clear “in their

advertising media.

3. The company can direct its advertisements through different channels towards

these functional benefits of glass. They should organize meets and exhibition with

retailers, The mode of communications like PR, sponsorships to events will be

good method to create the awareness.

4. The advertisements activities should be targeted on the middle segment. The

awareness can be increased by through tie-ups with the social society/community

like BMC and CARE to increase the awareness level among the middle income

category.

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

their brands on their websites. Different festivals should be targeted for the

awareness.

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Industry Overview

Float Glass Industry in India

India with more than one billion people, one sixth of the world’s total population has

become an attractive destination for investment in Glass Industry for some time, it

contributes around (6 %) one sixteenth of the world’s 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

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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 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:

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Asahi India Glass Ltd Taloja, Maharashtra, Roorkee, UP; Asahi India’s 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-Gobain’s two plants

produce 550 tons and 700 tons per day. It started operations in 2000 and is India’s

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 India’s Modi Group.

Triveni Glass in Allahabad produces 200 tons of float glass per day. It’s a mini float

plant based on Chinese float-glass technology.

New Entrants

Other than these four established players, a few domestic companies too are venturing in

Float glass production; there float lines are at various stages of completion. All the three

new players are related to glass industry.

Gold Plus Glass Limited- Gold Plus glass is a New Delhi based glass processor, and has

a significant market share in processing glass industry, announced that it’s Roorkie

based latest float glass manufacturing plant of Gold Plus, would start production in June,

2008. The furnace may be fired on any suitable day in June; 2008.The estimated cost of

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this project is approximately Rs.400 Crores in the first phase. The capacity of this float

glass production line would be 460tonnes per day. This float glass production line will

produce clear and green tinted glass from 2 to 19mm thickness. Most of the machineries

for this plant are from Europe and America and Yaohua Glass Group of China.

Sejal Glass – another prominent manufacturer of value added glass, based in Mumbai

( Western Coast) has ambitious plans to set up a Float Line. The factory site is at

Bharuch, for which the construction has already begun and production will commence

from March 2009. The plant will undertake manufacturing of Clear and Tinted Glass

HNG Float glass - Hindustan National Glass company, the leading manufacturer of

container glass in India, made the announcement of setting its float glass plant in Dec.

2007, in Halol, Gujarat. Capacity of this line will be 600 Ton/day and is expected to be

on stream by middle of 2009. In its press release the company stated that equipments

would be sourced from European suppliers.

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

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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

isn’t 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.

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 2008-2009 and

the rate of growth has turned negative. During the last financial year 2007-08 all the three

float glass manufacturing 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 2008-2009 this has slide to

1885 tonnes per day on an average having a negative growth rate of -8.38%( Glass Yug

magazine, January Edition- 2009).

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Year MT/Day %Growth

2000-01 886 2.66

2001-02 980 10.6

2002-03 1106 12.85

2003-04 1310 18.44

2004-05 1427 8.93

2005-06 1402 14.22

2006-07 1695 20.89

2007-08 2043 20.46

2008-09 ( 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 2008-09 turning into negative growth rate in the sales .

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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

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Ltd. has 1400 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

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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

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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.

Table 4 : Market Share

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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%

Figure 5 : Domestic Market Share

Introduction

Can Advertising Contribute?

On the heels of what seems to be a never-ending series of attacks on advertising,

two new studies purport to reveal more evidence of its diminishing impact. For several

years, respected industry leaders have been assailing both advertisers and their agencies

for lack of performance. Some experts, such as Sergio Zyman, former advertising head at

Coca-Cola, claim that ad agencies have abandoned their basic responsibility to sell the

brands they're paid to advertise. Others, including noted author Al Ries, have gone even

further, contending that advertising's business building capabilities now pale in

comparison to the "buzz" public relations can generate. (See "Is Advertising Dead?"

Adding fuel to this fire are two recently released studies. The first, by Yankelovich

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Partners, maintains that the effectiveness of ad campaigns has been declining markedly.

It cites as evidence the apparent growth in consumers' negative perceptions of

advertising. According to Yankelovich, about 6 in 10 U.S. consumers report that they

now feel more negatively about advertising than they used to. Furthermore, they claim to

"avoid buying products that overwhelm them with advertising and marketing."

The second study, recently released by Deutsche Bank, is based on a more wide

ranging analysis of sales and marketing spending data. It concludes that TV advertising

delivers, in most cases, a negligible return on investment (ROI) for mature package-

goods brands. According to the Deutsche Bank data, only 3 of 18 major brands

competing in established product categories (ranging from beer to detergent and from

snacks to toothpaste) could demonstrate financial returns that exceeded the company's

investments. In the other 15 cases, the companies were simply spending more money

than they were making. No bang for the buck Reports such as these have caused

consternation among advertisers and the agencies they've enlisted to create and deliver

sales-building and business-enhancing messages. Wall Street analysts and company

boards are increasingly expecting and demanding accountability for marketing

expenditures. If, as the Deutsche Bank data contend, major advertisers such as Coca-

Cola, Heinz, and Colgate are realizing no tangible business benefits from their

expenditures, then ad money will likely be reallocated to other, higher-return uses. The

dilemma, of course, is to identify what those alternatives might be. According to the

Deutsche Bank report, the solution is not an increase in trade-promotion spending, as this

tactic also falls short when it comes to ROI. So where are companies to turn? What are

these studies telling today's brand marketers? Perhaps, as some have suggested, the

solution is simply "better advertising." The argument is that the money is squandered --

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not because all Advertising is wasteful, but because too many companies have been lured

into creating ad campaigns that just don't work. Either marketers are employing the

wrong media mix (for example, relying on expensive and inefficient TV commercials), or

they're relying on the wrong selling strategies (such as creating messages that have little

or no potential impact). Does a company's advertising just need to "work harder"? Or is

the real problem that today's advertisers are heading in the wrong direction, and as a

result, are making no apparent progress toward meeting their ROI challenge? It appears

that far too many companies operate under an incomplete or erroneous model of how

advertising can best contribute to building a healthier brand. Consequently, they fail to

hold their ads -- and their ad agencies -- accountable for the end results they should be

delivering.

Consider the Yankelovich study, which apparently equates "liking" advertising

with its impact. The study suggests that if people say they're feeling increasingly negative

toward advertising, then that means that advertising has increasingly less impact. This

argument would imply that the solution for enhancing the return on advertising

expenditures would be to make the ads more entertaining and fun to watch, hear, or read.

But should that be the goal? Is advertising's real purpose to entertain -- or to sell? As

experts from David Ogilvy to Sergio Zyman have pointed out, advertising's objective is

not to be "fun to watch." Entertaining consumers is not the reason companies invest

billions of dollars in ads. Customer acquisition or customer retention? What should

advertising's goal be? What are the appropriate objectives for today's marketers to

pursue? These are the questions that marketers must answer as they rethink their targets

and reexamine their strategies. Some time ago, companies began shifting their emphasis

from customer acquisition to customer retention. That's because myriad published studies

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have emphasized what has now become a management mantra: It costs a lot less to keep

a customer than it does to acquire a new one. (See "The Constant Customer" and

"Maximizing Return" in See Also.) Yet the goals that many companies set for their

advertising have remained essentially the same as they were decades ago, when brands

were being launched and the aim was to attract new customers. What are these stated

objectives? What do today's marketers demand of their ad agencies? They want agencies

to build brand and advertising awareness, increase consumers' positive attitudes toward

identifiable purchase motivators, and boost the number of customers who state a positive

intention to buy the brand.

But these measures all derive from a time past, when package-goods companies

were defining what marketing was all about (the "Four Ps" of product, place, promotion,

and price) and focusing on building brand share for frequently purchased, low-

involvement consumer products. And they were pursuing these goals through advertising

that was designed and executed to increase the brand's profile and make it more "top of

mind." But those outcomes are not the hallmarks of increased customer retention. Rather,

they are indicators of the potential for customer acquisition. As several Gallup

Organization studies have pointed out, the health of a company's customer relationships

is reflected in the nature and depth of the emotional connections that have been forged

between the brand and the customer. (“Beyond Customer Loyalty”) Brand awareness is

an insensitive and even inappropriate indicator of the strength of a company's customer

relationships.

However, that may be exactly why the Deutsche Bank study has concluded that

advertising typically doesn't work for mature brands in mature categories. What should

the role of advertising be for brands such as Coke and Heinz? Should their ads focus on

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increasing the awareness of these already-familiar names? Or should they seek to deepen

and extend brand relationships by enhancing the engagement of their current customers?

The problem with attacking the issue of advertising that reportedly doesn't work is that

too many companies are still defining what works according to an outmoded customer

acquisition model. They are looking at what it takes to generate trial, and that's a mistake.

In a world that's now strongly focused on customer retention, advertising must be

designed, crafted, and held accountable for its ability to enhance the customer

relationship, not just initiate it. This means that company marketers -- at least those who

are marketing established brands -- must rethink not just what they're spending, but what

they're doing, what they're saying, and how they're monitoring their progress. Unless

advertisers and their agencies reexamine where they're heading and reconsider what

they're striving to achieve, marketers will continue to read bleak and scary reports about

advertising's lack of impact and effectiveness. Ad expenditures, already clearly in

jeopardy, will decline. And the real promise and potential of advertising will, sadly,

continue to be left unrealized.

Marketers are too willing to concede that their products have reached commodity

status. That's a major reason why advertising effectiveness has suffered mightily. Here's

the problem: When companies treat their brands the same as their competitors', they no

longer focus on attributes of the brand itself as reasons to buy it. Instead, they talk about

the people who buy the product, or they make fun of the advertising -- anything to keep

from admitting that their product purportedly has no real advantage over the next guy's.

So, when advertising is forced to get away from concentrating on what makes it most

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effective and efficient -- tangible and meaningful product benefits -- the result is likely to

be disappointing.

It's amazing how sophisticated marketers make this mistake. The contention is that they

are selling their products short; that their products have advantages that can be exploited

by great advertising if only their custodians would look harder for the hidden gems

buried deep within the product -- or maybe just under the surface.

Although the agency is only too happy to oblige, the client is clearly the place to

lay the blame. After all, if the top guys at Miller Brewing Co. had insisted that their

agencies dig out and exploit attributes of their beers, instead of the weird people who

drink their beers, they would be gainfully employed today.

The agencies, of course, were glad to be let off the hook. It's hard work to come

up with an advantage that can give a product an edge and convey that advantage in a

meaningful, creative and entertaining way. How much easier to ignore the product

altogether and focus on the lifestyles of the consumers who use the product. That way,

you can say anything you want.It's easy to go down the road that says most products are

the same. You see that most often when companies are floundering.

Kellogg Co. is a sad case in point. Its troubles started when the cereal companies

drastically lowered the prices on their products, giving consumers the impression that

they were all the same. (Kodak did the same thing with its film.)

When that line of thinking takes hold, management starts looking for non-

product-related things to talk about. So now, the head marketing guy at Kellogg concedes

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that, because "the functional benefits are the same" from brand to brand, Kellogg is intent

on creating a personality for each brand -- and a relationship with its consumers.

If the "functional benefits" of a brand are all the same, how can the brand's

personality be distinct, other than by fabricating it out of whole cloth? A brand's

uniqueness comes out of its real and tangible product advantages.

“The moral of the story is that few consumer products are commodities unless

their owners concede that they are”. And because so many companies today are making

that concession, smart marketers have a terrific new weapon at their disposal.

Marketing is at the top of the list because this is the area where rigorous financial

evaluations have not been used extensively to justify the expenditures within a firm.

Manufacturing costs have been reduced from 50 per cent to 30 per cent, and general

management costs have also declined as a proportion of the total corporate costs from 30

per cent to 20 per cent, but in contrast to manufacturing and general management costs,

marketing costs have increased significantly from only 20 per cent of the total corporate

costs 50 years ago to 50 per cent today. In spite of the huge marketing expenditures,

managers frequently do not have concrete measures or knowledge of what is obtained in

return from a significant investment in marketing. Moreover, many have doubted that

definite quantitative measurements of marketing effectiveness could ever be made

Problem Formulation

The impact of advertisement on the demand of commodity product specifically

Glass is to be find out. India is the only country where glass as commodity product is

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being advertised on TV. The huge amounts of investment in ads are happening in the

industry. But their effectiveness in impacting consumers mind for using more glass is not

clear. Do the advertisements help the company in commanding more market share, has

become the main issue. The connection of ad to the top and bottom line of the company is

not yet established clearly for the commodity product such as glass. The perception of

consumers towards glass is still very traditional as that of fragile nature etc. The

relationship between glass buying behavior and the awareness towards the brand among

the commodity glass market is to be figured out. All these issues are the rationale behind

choosing this research study.

Literature Review

RIEDESEL (2002) COMMENTS that the modeling of company sales and income as a

function of three types of media spending using Data Envelopment Analysis (DEA) by

Luo and Donthu (2001) is questionable. He acknowledges that the relationship between

media spending and company sales may be reciprocal, but the impact of sales on media

spending is more direct than vice versa. First, there are numerous marketing,

management science, econometrics, and advertising studies that have established the

causal relationship from media spending to sales volume ( Aaker and Carman, 1982;

Feinberg, 2001; Mesak, 1999; Simon and Arndt, 1980; Stewart, 1989). Danaher and Rust

(1994) theoretically propose that optimal level of media spending can be achieved by

maximizing the advertising productivity/efficiency. Following this school of research, we

believe that the amount spent on different media such as broadcasting, print, and outdoor

can be treated as DEA inputs, while sales and income as DEA outputs.

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Second, while some firms may be using a fixed percentage of previous sales as

current media spending budget, the approach is ad hoc and not supported by science. One

hopes that many firms are actually setting advertising budget based on future sales goals.

However, irrespective of how advertising budgets are set, advertising expenditure may or

may not be efficient (given level of advertising may produce different levels of sales) and

DEA can be used to investigate this.

It is not the setting of the budget that creates sales but the spending of the budget.

If sales fall below or above projected levels, real-time changes have to be made in

spending. DEA can be used to model such contemporaneous spending/sales data.

Finally, a pure empiricist may argue that DEA is a correlation technique used to analyze

the relationship between two sets of variables.

In conclusion, advertising theory dictates that media spending be treated as inputs and

sales be treated as outputs. Media spending should reflect sales goals. Irrespective of how

advertising budgets are arrived at, inefficiencies exist in advertising and that inefficiency

can be benchmarked using DEA. ( Mehir Kumar Baidya and Partha Basu Measurement

and Analysis for Marketing 2008) did one study with the aim to check the impact of

individual marketing efforts (advertising, sales force , promotion, distribution and price)

on sales and overall customer satisfaction for a brand by taking into consideration both

the financial and non financial aspects of the measurement. The return on- investment

(ROI) has been calculated for each effort on the basis of sales The findings suggest that

all the marketing efforts have significant positive impact on sales except price. Moreover,

all the marketing efforts have significant positive effects on overall customer satisfaction

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for the brand. Furthermore, among all the marketing efforts the adjusted ROI is the

highest for sales force. These results will assist the managers in allocating the resources

to different marketing efforts in a better manner, so as to improve the effectiveness of

marketing expenditures.

Stone and Duffy , and Basu and Batra used the judgmental and mathematical

(ADSPLIT) models to frame the relationship between sales and advertising expenditures.

Both studies used response function to allocate marketing budget to advertising as well as

to different brands.

Effects of sales promotion : (Bawa and Shoemaker) performed a study to identify the

influence of sales promotion activities on customers ’ brand choice behaviour. The

authors found that sales promotion activities have short-term and long term positive

effects on the brand choice behaviour of customers. In the same direction, Jones made an

attempt to examine the short term and long-term impact of sales promotion activities on

sales by a multivariate technique Regression model estimation indicates that the short-

term effect is more prominent than the long-term.

The author found that the effect of a low price on attracting buyers depends on the

level of advertising. The high advertising plan produces sales 50 per cent above the low

plan at the base price. At the middle price it was 34 per cent, and at the highest price with

the high advertising level it was only 11 per cent.( Effectiveness of marketing

expenditures © 2008 Palgrave Macmillan Ltd 0967-3237 Vol. 16, 3, 181–188 Journal of

Targeting, Measurement and Analysis for Marketing 183).

Customer Satisfaction Studies: Anderson analysed a database matching the CSI

with ROI, and the productivity of each company covered by the Swedish Customer

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Satisfaction Barometer (SCSB) from 1989 to 1992. Regression model estimation

indicates that the coefficient for the direct relationship between the customer satisfaction

and ROI is positive and significant. Similarly, Ittner and Larcker 12 extend this study by

using stock price as a dependent variable and CSI as an independent variable. The

authors found that the estimated regression coefficient is 7.36. This shows that customer

satisfaction has a positive impact on shareholder value.

Advertising remains one of the cornerstones of marketing communications.

However, determining its impact on a firm’s 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 firm’s bottom line. In addition, while positive returns are

expected, this type of unsubstantiated claim has become unacceptable as more marketing

managers are being asked to validate the links between traditional marketing variables

and financial performance (Jedidi et al., 1998).

Although the search for the true value of advertising has led to the completion of

numerous experimental and econometric studies, evaluating the effectiveness of specific

28

advertising campaigns continues to be problematic for practitioners and academics alike.

For the most part, past studies have tended to focus on a handful of ‘executable devices

such as the use of humor, sex, and celebrity presenters’ (Stewart and Furse, 2000, p. 85).

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). Exceptions to these

fairly limited studies are practitioner studies that rely on an experimental design and use

single-source data (e.g. Eskin, 1985; Lodish et al., 1995). Such studies are able to

estimate advertising performance by tracking the actual purchasing behaviour of a sample

of consumers (via retail scan cards). However, while providing useful insights, many of

these experiments were not well documented in terms of methodology (Stewart and

Furse, 2000) and were very expensive, technically difficult to conduct and relied heavily

on the ability for tracking exact consumer purchasing patterns carefully. While both

categories of studies have helped to extend our general understanding of how advertising

affects firms’ performances, more research is needed.

Consequently, a number of empirical studies have recently been conducted in

order to extend our understanding of the links between specific aspects of a firm’s

advertising function and various financial performance measures (e.g. market share,

profitability and stock price). While market share and profitability continue to demand

attention as managers attempt to link their decisions to financial outcomes directly, many

researchers have opted for a more unique approach and have begun to examine the

impact of specific marketing and advertising decisions on expected future earnings (as

manifested in higher or lower abnormal stock returns). Specifically, researchers have

explored the links between stock price and the use of celebrity endorsers (e.g. Ohanian,

29

1991; Agrawal and Kamakura, 1995; Mathur et al., 1997; Farrell et al., 2000), corporate

sponsorship and the marketing of sporting events (e.g. Miyazaki and Morgan, 2001;

Tomkovick et al., 2001), changing a company’s name (Horsky and Swyngedouw, 1987)

and changing a firm’s advertising slogan (Mathur and Mathur, 1996). However, while

some progress has been made in this area, more research is needed.

Managerial relevance. Jointly examining weight and content effects on market

response can be extremely appealing to brand managers who try to strike a balance

between copy and weight and may ultimately help them achieve higher advertising

efficiencies. The results of MacInnis et al. are encouraging, since they suggest that media

expenditures are not a waste of money when combined with the appropriate type of copy

appeal (in their case emotional) in mature markets. Similarly, the implications of the

study by Chandy et al. [3] may help managers in copy-changing decisions depending on

the maturity of the market they compete. The approach suggested in Reference [7] can be

used when advertising appeals are ambiguous and need to be inferred by examining their

effects on response.

Long-term effects and hysteresis

Although the long-term effectiveness of advertising has long been a popular

subject of academic research with the Koyck model being the main methodological tool

(e.g. Reference [8]), in recent years new paradigms in the study of long-term advertising

effects have emerged. Most notably, Dekimpe and Hanssens [9, 10] proposed the use of

‘persistence modelling’ to study long-term advertising effects. Applying vector auto-

regressive (VAR) models to data from evolving markets, Dekimpe and Hanssens

essentially redefine what should be considered as ‘long term’ and contrast it with the

more traditional Koyck modelling approach. Koyck models may be applied to stationary

30

markets but their advertising effects cannot be permanent (and thus really ‘long term’),

because market performance in these markets reverts to its mean. In evolutionary

markets, however, market performance can exhibit permanent increases and if such

increases can be attributed to advertising spending then advertising effects may be

considered long term.

More specifically, Dekimpe and Hanssens [9] estimated a VAR model using home-

improvement chain sales and advertising data.

A relevant, but not identical, approach to measuring long-term effectiveness of

advertising is to examine whether it causes hysteresis, a concept introduced in the

marketing literature by Simon [12]. Hysteresis suggests that a temporary increase in

advertising expenditures can lead to a permanent increase in market performance (sales).

The critical assumption in the econometric modelling of hysteresis is that there is not a

one-to-one relationship between advertising and market performance, since decreasing

advertising to its previous level would not affect sales but increasing advertising from the

same level would. In other words the ‘sales path’ is different for decreases from, than for

increases to any level of advertising spending. Hanssens and Ouyang [13] empirically

examined hysteresis in the computer printer market. They distinguish between full

hysteresis, where temporary changes in advertising cause permanent changes in sales

without needing additional spending to maintain the new high sales levels, and partial

hysteresis, where some maintenance advertising is needed. Their empirical results

provided evidence for partial hysteresis caused by print media advertising.

The studies by Mela et al. [14] and Jedidi et al. [15] offer an alternative approach

to studying long-term advertising effects. The first study looks at the effects of quarterly

advertising expenditures on quarterly price sensitivities, while the second examines the

31

cumulative effects of advertising on choice and quantity and their short-term pricing and

promotion sensitivities.

Advertising effects on stability of performance

While recent research has addressed the issue of advertising effects in

evolutionary markets, the question remains whether advertising has a significant impact

on mature markets. The results reported in Reference [5] are encouraging as they suggest

that increased advertising effort can increase sales in mature markets. However, the

‘maintenance’ role of advertising in mature markets (see Reference [33]) should also be

investigated. In other words, whether advertising contributes to the stability of a brand’s

performance, since many markets especially for frequently purchased goods are mature

The issue may be of greater importance for big brands that would like to maintain

leadership in a market but it could also be important for smaller ‘niche’ brands that enjoy

a healthy profit margin and are satisfied with their market position. There are two

possible approaches to modelling advertising effects on stability of performance. One is

to examine the effects of advertising on the variance in the performance (sales or share)

of a brand across time. If advertising is expected to increase performance stability, it

should decrease variance in performance. To make comparisons meaningful across } It

should also be acknowledged that recent research has started examining the effects of

advertising/marketing expenditures on financial metrics (see for example Reference

[29]). kFor example, P&G, Unilever and GM are the top three media spenders

worldwide. Although they do introduce new products annually, they also support a lot of

mature brands.(Copyright # 2005 John Wiley & Sons, Ltd. Appl. Stochastic Models Bus.

Ind., 2005; 21:351–361 358 D. VAKRATSAS)

32

The specification of advertising effects on the variance of performance should

follow from the specification of advertising effects on the mean performance (e.g.

Reference [34]), which may complicate matters. Furthermore, showing that advertising

contributes to lower variance in performance may not easily convince managers to

continue investing in advertising since performance variance is not explicitly linked to

profitability.

An alternative approach to evaluate advertising’s ‘maintenance’ role would be to

look fordifferential effects of increases and decreases in advertising. In other words, a

mature brand’s performance may be resistant to advertising increases (due to ‘ceiling’

effects) but may be sensitive (declining) to advertising decreases (due to lack of critical

support). The implication then would be that although advertising does not lead to

increased performance, it helps maintain it as declining advertising spending would result

in deterioration of brand performance. This is conceptually the opposite of hysteresis,

where brand performance is resistant to advertising decreases, as it focuses on losses in

performance as a result of lower advertising investment. Both approaches to measuring

maintenance effects need sufficient variability in the data in order to produce reliable

results (see Reference [35]), which may be difficult to attain as such studies should be

carried in mature markets where managers may not change status quo advertising

practices.

Europe shows that advertising recall is lower in countries with higher levels of

television advertising. Specifically, yfield and Nazaroff (2003) report that in Denmark,

where there are only 80 average television exposures per week per person, the Millward

Brown awareness index is 150 (compared with the U.K. benchmark of 100).1 However,

in Italy, where there are 300 average exposures per week per person, the awareness index

33

drops to only 50. Thus, an effect of increasing advertising levels is to decrease the recall

of all advertisements. In addition, academic studies have found lower ad recall and

recognition in the presence of too much advertising from competitors (Burke and Srull

1988; D’Souza and Rao 1995; Keller 1987, 1991). Increasing advertising content on

television also increases ad avoidance behavior (Danaher 1995; Lafayette 2004), such as

channel switching or time-shift viewing with a personal video recorder (Green 2003).

A commonly used term to describe the presence of high levels of advertising is

“clutter.” For television, clutter is the combination of commercials and other nonprogram

material,such as program promotions and public service announcements. The increase in

clutter over the past 40 years is due to both an increase in nonprogram time and an

increase in the number of 15-second commercials (Brown and Rothschild 1993; Kent

1995). The topic of increasing advertising clutter is one of the most publicized issues in

the advertising trade literature and continues to be one of the greatest concerns facing the

advertising industry (Chunovic 2003; Lafayette 2004). Kent (1993) makes a distinction

between competitive and noncompetitive clutter. Competitive clutter, which is also called

“competitive interference” (Burke and Srull 1988; Kent and Allen 1994), is clutter that

arises from advertisements delivered by competing brands (within a category) at or near

the same time and place as those for a focal brand.Kent (1993, 1995) finds that

competitive clutter has a more harmful effect on ad recall than noncompetitive clutter. In

this study, we focus on competitive clutter.

Most previous research on brand advertising interference has been conducted in

laboratory settings, in which participants are exposed only to commercials and no

editorial material (Burke and Srull 1988; Keller 1991; Kent and Allen 1994), resulting in

limited external validity. Other studies of this topic have used unfamiliar brands, which

34

Kent and Allen (1994) show are more prone to interference effects. Finally, previous

marketing studies have examined the effect of competitive interference on recall,

recognition, or brand evaluations rather than the all-important effect on sales (East 2003,

p. 19).

Advertising response models with managerial impact: an agenda for the future Faculty of

Management, McGill University, 1001 Sherbrooke St. W, Montreal, QC H3A 1G5,

Canada ALBA, Athens, Greece.This paper discusses recent advances in advertising

response models and identifies new opportunities for managerially relevant research.

First, it establishes that recent research has shifted attention from topics such as duration

of advertising effects in mature markets and short-term advertising elasticities to issues

such as combined effects of ad content and weight and effectiveness in evolving markets.

Then, motivated from recent trends in advertising practice, it presents a research agenda

consisting of four main topics: (1) new media and forms of advertising (e.g. product

placement), (2) media synergies, (3) advertising productivity and (4) advertising effects

on performance stability. Copyright # 2005 John Wiley & Sons, Ltd. This paper has two

main objectives. The first is to discuss new research findings (of the last ten years) in

advertising response research, their implications for managers and their importance for

broadening the scope of advertising research. The second objective is to propose an

agenda consisting of four new areas of research: non-traditional media, media synergies,

advertising productivity and advertising’s role in performance stability. The choice of

these four issues was based on their practical relevance and the lack of sufficient

academic research to consider them resolved. The discussion of the proposed research

agenda includes suggestions for potential methodological approaches, data requirements

and measurement. Given the focus of the paper on advertising response models, the

35

discussion mainly concerns empirical econometric studies that use market-based

performance measures (e.g. sales, share).

Marketing managers are under increasing pressure to justify marketing spending.

The issue of quantifying the returns to marketing activities in financial terms is one of the

greatest challenges facing marketing and brand managers today. For example, Rust and

colleagues (2004, p. 76) note that marketers have not been held accountable for showing

how marketing adds to shareholder value and that “this lack of accountability has

undermined marketers’ credibility, threatened the standing of the marketing function

within the firm, and even threatened marketing’s existence as a distinct capability within

the firm.”

Brand-The initial framework, developed in the 1990s, was based on four pillars:

differentiation, relevance, esteem, and knowledge (Agres and Dubitsky 1996).

Implications from this model have helped shape thinking on various brand issues. For

example, Aaker (1996, Chap. 10) uses the BAV model as one of the key inputs into

formulating his “brand equity ten” and has continued to make use of the framework to

highlight the crucial role of differentiation in brand building (Aaker 2004, p. 136; Aaker

and Joachimsthaler 2000, p. 263). Y&R recently modified its framework and introduced

a fifth pillar called “brand energy.”1 The measure is based on the Y&R survey questions

reflecting the degree to which the brand is viewed as (1) innovative and (2) dynamic.

The Pillars of the Initial Y&R BAV Model

36

Researchers have repeatedly established that the brand beliefs generated by an

advertisement affect consumer perception of the physical product during subsequent trial

(e.g., Deighton and Schindler 1988; Kempf and Laczniak 2001; Kempf and Smith 1998;

Marks and Kamins 1988; Olson and Dover 1979; Smith 1993). However, those studies

have typically exposed consumers to the physical product shortly after exposing them to

advertising. It is therefore likely that in the marketplace a more extensive time lag occurs

between both exposures with beliefs decaying over time and that effects exist from

perceived product physical attributes on specific post experience brand beliefs in such

cases (Kempf and Smith 1998).

Advertisement Effectiveness

The role of advertisement is to

Give your customer the reason to keep buying from you

Attract Must -Have customers to try your products

Increase the sales and profits (Core customers are company’s most loyal

customers who are willing to pay a fair price for a product or service. Must-

Have customers are people who could become the core customers, but they

currently do business with the competition.

Advertisement effectiveness can be checked a process call “Plus Over Normal”. To

determine the Plus over Normal results every ad is benchmarked against the normal

business baseline. The lift from the ad is sales can then be evaluated.

There are only three measures of advertising effectiveness:

37

Did core customers increase their spending with the company after seeing my

advertising?

Did any Must-Have customers start doing business with the company after seeing

the advertising?

Did the ads generate a net profit?

The Effects of Advertising and Brand Value on Future Operating and Market

Performance

Li Li Eng and Hean Tat Keh

This paper examines the joint effects of advertising and brand value on the firm’s future

operating and market performance. We operationalize future operating and market

performance as future accounting returns and future stock returns, respectively. Our

results show that both advertising and brand value improve future accounting returns at

the firm level. The impact of advertising and brand value on future stock returns is

minimal. We find that spending on advertising results in better brand sales and brand

profitability. Brand value is also a good predictor of brand performance. Thus, we

conclude that advertising and brand value benefit the brand and the firm through

improved accounting performance. In this paper, we investigate the impact of advertising

and brand value on future operating and market performance. Key intangible assets such

as brand value (or brand equity), product differentiation, and goodwill are the outcomes

of investment in advertising. It is generally believed that advertising contributes to the

creation of brand value (Chaudhuri 2002; Chu and Keh 2006; Kimelman 1993; Sheinin

and Biehal 1999). Mizik and Jacobson (2003) argue that brand-based advertising can

38

create a comparative advantage for firms through its ability to differentiate the firm’s

product. The brand can be a formidable barrier to imitation, as brand equity is difficult for

competitors to copy, becoming an effective entry deterrence strategy. Industry observers

and analysts note that many companies continue to emphasize brand-building activities.

For example, Samsung has been rated by Interbrand, a brand-consulting firm, as the

fastest-growing brand over the past few years (“Yun Jong Yong” 2004). The CEO of

Samsung, Yun Jong Yong, has been instrumental in driving the creation of its brand

value, claiming, “Our future will depend on our brand equity.”

While brand value creation is generally regarded as a “good thing,” we need to

have more concrete measures of brand value appropriation (i.e., extracting profits from

brand value). Merely knowing the effect of brand value on purchase intent (Cobb-

Walgren, Ruble, and Donthu 1995) is inadequate; Chaudhuri (2002) proposes a stylized

model of how brand reputation affects the advertising–brand equity link. Using survey

data, the models brand reputation as a mediator on the effect of brand advertising, brand

familiarity, and brand uniqueness on brand equity outcomes. His results suggest that

advertising directly or indirectly affects brand equity measured as brand sales, market

share, and relative price.

Second, firms spend large amounts annually on advertising and brand value

creation with the expectation of reaping returns in the future. As such, it is important to

examine not only the contemporaneous effect of advertising or brand value on firm

performance, According to Low and Mohr: “To be sure, advertising is vital to brand

equity. However, advertising, per se, is not a sacred cow that should necessarily be part

of every year’s marketing allocation. Monies should be allocated to advertising only if it

39

has a clearly defined role within that year’s strategy for meeting a brand’s goals” (1999,

p. 72). They reached this conclusion via a qualitative study using 21 in-depth interviews.

Our review of the literature indicates that previous research has not specifically measured

the impacts of advertising and brand value, and their joint effect, on firm performance.

By examining the effects of advertising and brand value, our work contributes to the

existing literature.

There have been numerous studies, however, on the individual effect of

advertising on the persistence of profits (e.g., Mueller 1990), implying that excess returns

erode more slowly for firms that advertise heavily. For example, Chauvin and Hirschey

(1993) provide evidence that advertising expense has a positive influence on the market

value of the firm. They suggest that spending on advertising can be viewed as a form of

investment in intangible assets with positive effects on future cash flows. When Erickson

and Jacobson (1992) control for the endogeneity between discretionary expenditures and

profitability, however, they find that advertising generates substantially lower accounting

and stock market returns than indicated in previous research. In a recent study, Chu and

Keh (2006) investigate the effects of advertising, promotion, and R&D expenses on brand

value creation. They find that these lagged expenses yield diminishing returns to brand

value.

40

Gaps in The Literature

1. In my limited literature survey it has come to my notice that lot of work has been

done on the packaged goods or consumer durables but unfortunately ,we could

not find any study done on the commodity products related to brand preference or

advertising effectiveness. Even if something has been done and we missed out

still we feel it is an unexplored area in India, and behavior pattern can’t be

compared with any western country. It is interesting to note that no where in the

world glass is branded or advertised, it is only in India which was started by an

American company in 1994.

2. We could not find the study which talks the likeable attributes in commodity

products like glass. What exactly customers are looking for in a glass?

3. Lot of efforts have been put in by the various researchers to establish a linkages

between advertising and key performance indicators of the company but no

conclusive equation could be found out , mine also will be one more attempt for

commodity products .

4. We could not find any work on the commodities, what kind of adv copy is

suitable to influence the consumers when there is no differentiator available.

41

COMPANY PROFILE

42

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.

43

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

Automotive Glass Unit – AIS Auto Glass

Float Glass Unit – AIS Float Glass

AIS Glass Solutions Ltd – AIS 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.

AIS Glass Solutions is a value addition in the architectural glass business of AIS,

addressing the following segments:

Architectural Processing and Glass solutions

Product and Knowledge development

Glass Services – Sales & Marketing

The market and technology leader in the Indian Glass Industry, AIS continues to add to

its customer base and service offerings, while maintaining and enhancing product quality

Its ongoing efforts, to provide high quality products and reliable and excellent service to

its customers, are the key factors for AIS’s sustained success and leadership position in

the Indian glass industry.

44

AIS recorded gross sales and operating profits of Rs. 11742 millions and Rs.

2046 millions respectively for the year ended 31st March, 2008.

Vision and Mission

Vision

AIS’s Vision is to “SEE MORE”

This byline captures AIS’s culture:

It describes AIS products and services which delight its customers by helping

them see more in comfort, safety & security.

It expresses AIS’s corporate culture of merit and transparency.

It defines the quality of AIS’s people to want to see, learn, and do more, in depth

and detail to transcend the ordinary.

Mission

AIS’s 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

45

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 group’s 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.

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.

46

SBU’S

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.

47

In the present era of cut throat competition there is a very little scope left out for

the companies to create differentiation in the products to compete, hence need to start

brand building exercise by way of creating perceived images of superiority over the

competition . This starts with the various kind of activities to be undertaken by the

companies to create brand , among them one way is advertising. Indian commodity

market ( in the building material segment )such as cement, steel, aluminum, Glass has

adopted various methods to enhance the demand for their products, they have

simultaneously invested sizeable amount of money in advertising to sell their products

and increase their market share. VARIOUS consultants and advertising agencies were

hired to create a difference but, “have they been successful in their efforts to create

demand or make any kind of impact on the demand or sale due to advertising or mass

media campaigns. Lots of subjective discussions (simply based on individual feelings and

selected market researches to show the positive impact, which can easily be contradicted

by any other agency or market research) have taken place and actually not yielded any

results or tangible benefits which can distinctively be observed or verified. Whenever

organizations try to establish a relationship between the advertising and the Top line,

bottom line then efforts are put in to de link it so that it goes to the expenses part rather

than become a part of the cost. There is a need to re-examine and evaluate the impact of

advertising on the demand of commodity products and see what exactly consumers are

looking for. Once companies understand that branding is a necessary (and profitable) part

of doing business, the next logical question is — how do you brand?

Tactically speaking, there are numerous ways to go about branding. The look and

feel of the communications, the balance of advertising versus public relations versus

grassroots, the media used, etc., all reflect tactical aspects of the branding process.

48

However, these are only vehicles used to brand, and do not inherently lend themselves to

developing a brand, per se. To ensure a good, successful brand is the methodology used

to develop and/or refine the brand in the first place. In other words, just like a building, a

good brand starts with a strong foundation. Sound branding practice begins with

addressing five key attributes present in any effective brand: uniqueness, relevance,

credibility, sustainabiiity, and practicality.

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 and movies, 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

49

BMW. The lessons here — don’t 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. Citibank’s 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.

Advertising remains one of the cornerstones of marketing communications.

However, determining its impact on a firm’s 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 firm’s bottom line. While providing some useful insights,

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

50

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

repetition and recall).

51

PRODUCTS AND SERVICES

52

PRODUCTS AND SERVICES

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

53

  International Cars and Motors   100

  Reva Motors   100

  Honda Motors   100

  Ford India    99

  Toyota Kirloskar Motors    99

  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

54

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.

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.

55

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.

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 world’s finest quality "Environment

Friendly" copper & lead free premium AIS Mirrors, AIS Décor lacquered glass &

AIS Krystal Frosted glass for interior applications.

56

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 Glass’s 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.

57

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.

58

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

59

Architects

Interior Decorators

Builders

Aluminium Fabricators

Carpenters

Furniture Manufacturers

Household Consumers

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

Glass is an ever-expanding one.

Advantages of Float Glass over its Counterparts

Fuel Efficiency

The fuel efficiency is enhanced significantly in a float glass plant. Whereas in a

sheet glass plant, the best fuel efficiency is limited to 0.3 MT of furnace oil per tonne of

glass, in the float process, 0.18 to 0.20 MT of furnace oil is required to melt 1 tonne of

glass.

Quality

Owing to the greater degree of quality control in the furnace conditions, the final

product is 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.

60

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 pulled up 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.

Advantages of Float Glass over its Counterparts

Fuel Efficiency

The fuel efficiency is enhanced significantly in a float glass plant. Whereas in a

sheet glass plant, the best fuel efficiency is limited to 0.3 MT of furnace oil per tonne of

glass, in the float process, 0.18 to 0.20 MT of furnace oil is required to melt 1 tonne of

glass.

Quality

Owing to the greater degree of quality control in the furnace conditions, the final

product is 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.

61

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 pulled up 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.

62

PART-II

63

INTRODUCTION TO THE TOPIC

64

INTRODUCTION TO THE TOPIC

Customer Satisfaction Studies: Anderson analysed a database matching the CSI

with ROI, and the productivity of each company covered by the Swedish Customer

Satisfaction Barometer (SCSB) from 1989 to 1992. Regression model estimation

indicates that the coefficient for the direct relationship between the customer satisfaction

and ROI is positive and significant. Similarly, Ittner and Larcker 12 extend this study by

using stock price as a dependent variable and CSI as an independent variable. The

authors found that the estimated regression coefficient is 7.36. This shows that customer

satisfaction has a positive impact on shareholder value.

Advertising remains one of the cornerstones of marketing communications.

However, determining its impact on a firm’s 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 2013 (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 firm’s bottom line. In addition, while positive returns are

expected, this type of unsubstantiated claim has become unacceptable as more marketing

65

managers are being asked to validate the links between traditional marketing variables

and financial performance (Jedidi et al., 1998).

Although the search for the true value of advertising has led to the completion of

numerous experimental and econometric studies, evaluating the effectiveness of specific

advertising campaigns continues to be problematic for practitioners and academics alike.

For the most part, past studies have tended to focus on a handful of ‘executable devices

such as the use of humor, sex, and celebrity presenters’ (Stewart and Furse, 2000, p. 85).

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). Exceptions to these

fairly limited studies are practitioner studies that rely on an experimental design and use

single-source data (e.g. Eskin, 1985; Lodish et al., 1995). Such studies are able to

estimate advertising performance by tracking the actual purchasing behaviour of a sample

of consumers (via retail scan cards). However, while providing useful insights, many of

these experiments were not well documented in terms of methodology (Stewart and

Furse, 2000) and were very expensive, technically difficult to conduct and relied heavily

on the ability for tracking exact consumer purchasing patterns carefully. While both

categories of studies have helped to extend our general understanding of how advertising

affects firms’ performances, more research is needed.

Consequently, a number of empirical studies have recently been conducted in

order to extend our understanding of the links between specific aspects of a firm’s

advertising function and various financial performance measures (e.g. market share,

profitability and stock price). While market share and profitability continue to demand

66

attention as managers attempt to link their decisions to financial outcomes directly, many

researchers have opted for a more unique approach and have begun to examine the

impact of specific marketing and advertising decisions on expected future earnings (as

manifested in higher or lower abnormal stock returns). Specifically, researchers have

explored the links between stock price and the use of celebrity endorsers (e.g. Ohanian,

1991; Agrawal and Kamakura, 1995; Mathur et al., 1997; Farrell et al., 2000), corporate

sponsorship and the marketing of sporting events (e.g. Miyazaki and Morgan, 2001;

Tomkovick et al., 2001), changing a company’s name (Horsky and Swyngedouw, 1987)

and changing a firm’s advertising slogan (Mathur and Mathur, 1996). However, while

some progress has been made in this area, more research is needed.

67

OBJECTIVES

68

OBJECTIVE OF THE STUDY

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?

69

RESEARCH METHODOLOGY

70

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem involving a

study of various steps that are generally adopted by a researcher in studying his research

problem.

1- Problem Definition

In the first step research is formulating a research problem. It is said “A problem well

defined is half-solved.”

Problem under the study was finding out the comparative study of Asahi brand

preference, packaging and quantity.

2- Research Design

“Research design is the plan, structure and strategy of investigation conceived so as to

obtain answer to research question and to control variance.”

3- Field Work

The project report covered mostly the isolated area of Banda and surrounding area of

them this work has done following area has been covered:

Noida

4- Data Analysis and Interpretation

71

The data are first edited and collected and tabulated for the purpose of analyzed the data

which we collected. In has been described in the next chapter.

72

Research Design

A research design is simply the framework or plan for a study, used as a guide in

collection and analyzing data.

A research design is the arrangement of condition for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in

procedure.

Thus a research design ensure that the study-

1- Will be relevant to the problem

2- Will use economical procedures

Types of Research design

1- Exploratory Research

All marketing research project must start with exploratory research because. In a

research first we formulate the problem. The major emphasis in on the discovery of ideas

and insight.

An overall “Rigid” Exploratory research design has been used focusing attention on:

Formulating a problem

Establishing priorities

Gathering information

Increasing the analyst’s familiarity

Clarifying concepts

73

2- Descriptive Research

In a descriptive research means describe the problem of research and find the solution.

An overall “Rigid” Exploratory research design has been used focusing attention on:

Describe the characteristics

Estimate the proportion of people in a specified population

To make specific prediction

To determine whether certain variable are associated

Data Collection Method

There are two type of data collection method:-

1. Primary Data Collection Method

By primary data are meant those which are original, that is, those in which little or no

grouping has been, the instance being recorded or itemist as encountered, they are

essentially raw material.

Primary Source of Data Collection

Collection of data by means of well framed questionnaire.

Direct interaction with the retailers.

Direct interaction with dealers and distributors.

74

2. Secondary Data Collection Method

Secondary data those already in existence and which have been collected for some other

purpose than the answering of the question at hand.

Secondary Source of Data Collection

Catalogues of company are studied in order to have a complete knowledge about

the different brands available in the market.

Different magazines and news papers are studied to collect the information about

present scenario of cold drink market.

Download the information available on the web-site of the companies.

The information is also obtained from the previous report of the companies.

In this project primary data collection method has been used. In which a question has

been drafted which included 10 question to make a survey on retailer preference and

acceptance toward the soft drink company’s.

Sampling Method

Sample

Sample is the small part of the any population which is considered for the observation or

the study.

75

Sampling

Sampling is the process to get the sample for the large population. Population can be

defined as the large collection of data, i.e.- commodity, census, time etc.

Type of sampling

1- Non probability sampling

A sampling in which units of the sample are selected on the basis of personal judgment or

convince. Non probability sampling is also called non-random.

It has following types

Quota sampling

Convince sampling

Judgment sampling

2- Probability sampling

A probability sampling is chooser in such a way that each member of the universe has a

known change of being selected.

It has following type

Simple random sampling

Systematic random sampling

Stratified random sampling

Cluster random sampling

76

Hence in this project work Probability sampling design i.e. Random sampling was

adopted as a definite plan for obtaining a sample from the population. The selection

technique was a Stratified random sampling a restricted probability sampling

77

ANALYSIS & INTERPRETATION OF

DATA COLLECTED

78

ANALYSIS & INTERPRETATION OF DATA COLLECTED

1. The most of the consumers(78.3 %) don’t go for buying the commodity

products like glass, steel etc.

21.7

78.3

Yes

No

Whether go for buying

Figure 6: Whether go for buying

79

Maximum numbers of people have not bought the glass (58.33%), hence

their involvement in the process is very low.

Yes No

Bought glass in past or planning to buy

0

10

20

30

40

50

60P

erce

nt

41.67

58.33

Figure 7: Purchase of glass

80

For the maximum percentage (64.2%) of end consumers the brand carries

somewhat important. Hence this potential segment of consumers can be

tapped in coming futures if the brand awareness among them is increased

through the communication channel.

Importance of brand

Frequency Percent Valid PercentCumulative

PercentValid Not important 23 19.2 19.2 19.2

Somewhat important

77 64.2 64.2 83.3

Important 20 16.7 16.7 100.0

Total 120 100.0 100.0

Not important Somewhat important Important

Imporatnce of brand

0

10

20

30

40

50

60

70

Per

cen

t

19.2

64.2

16.7

Figure 8: Importance of brand

81

Yes No

Whether go for buying

0

10

20

30

40

50

60

Co

un

t20.83%

45.83%

0.83%

32.5%

Aware of any

glass brand

Yes

No

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 brand

TotalYes NoWhether go for buying

Yes 25 1 26No

55 39 94

Total 80 40 120

Correlations

Whether go for buying

Aware of any glass brand

Whether go for buying Pearson Correlation 1 .329(**)Sig. (2-tailed) . .000N 120 120

Aware of any glass brand

Pearson Correlation .329(**) 1Sig. (2-tailed) .000 .N 120 120

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

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.

82

Figure 9: Awareness Vs whether go for buying

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

PercentValid 0-15

minutes53 44.2 74.6 74.6

16-30 minutes

11 9.2 15.5 90.1

31-60 minutes

7 5.8 9.9 100.0

Total 71 59.2 100.0Missing System 49 40.8Total 120 100.0

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

Time taken before choosing glass(at retail counter)

0

20

40

60

80

Pe

rce

nt

74.6

15.59.9

Figure 10: Time Taken at Retail Counter

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

83

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 customers take the decision to choose any

brand on their own.

Yes No

Ask for particular brand

0

20

40

60

80

Perc

en

t

22.8

77.2

Figure 11: Preference for particular brand

On your own Ask for recommendations sometimes

Ask for recommendations mostly

Decision to choose any brand

0

20

40

60

80

Per

cen

t

14.18.5

77.5

Figure 12: Decision to choose any brand

84

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

from architects.

Influencer of recommendation * Specification by type and brand of glass

Crosstabulation

Count

Specification by type and brand of glass

Total

Both

brand and

type

Only

brand

Only

type Nothing

Influencer of

recommendat

ion

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

end consumers contact architect for recommendation.

85

Architect Retailer Carpenter

Influencer of recommendation

0

5

10

15

20

25

Co

un

t

20.78%

15.58%

31.17%

2.6%2.6%

10.39% 10.39%

2.6% 3.9%

Specification by

type and brand of

glass

Both brand and type

Only brand

Only type

Nothing

Figure 13: Influencer of Recommendation

Suggestions

The companies can provide booklet containing samples of glass to carpenter to push their

products and increase their brand awareness. They can organize some kind of training on

new design to carpenters. They should distribute danglers to retailers shop and should

provide enough booklets, pad to them. They can also distribute calendar to retailers,

carpenters and ultimately to house owners through this channel to increase their brand

awareness and to push their sales.

86

The ad recall of China man ad of SGG is highest, followed by their ad of

lady throwing water. The AIS ad is very less remembered by the end

consumers. Hence to have the recall in the mind of consumers and for the ad

to be effective, they can target the social networking site which will be very

cost effective.

China man ad Shoaib Akhtar ad Lady throwing water ad

Remember the ad

0

20

40

60

80

Per

cen

tag

e

78.3

8.4 13.3

Figure 14: Ad recall

87

The people are not sure about the influence of ad in taking their action. But

the 30% people choose, probably. Hence the ad influence on the action of

end consumers is very minimal in taking their action. Hence the awareness

among the end consumers should be increased by different channels. Their

unsure nature can be converted to sale by pushing retailers and carpenters

recommendation.

Yes No

Have seen the ad of glass

0

10

20

30

40

50

60

co

un

t

30.0%

23.33%

44.17%

1.67% 0.83%

Ad influences

to undertake

action

Probably

Not Sure

Definately Not

Figure 15: Ad influence on action

Ref:

The ad influence is very unsure in nature. There is no high effect on purchase of that in

case of commodity product like glass. Hence the probability seems good, hence the

company should increase the awareness among the consumers because the less

differentiation between the products with respect to customers. Hence the other mode of

communications like PR, sponsorships to events will be good method to create the

awareness.

88

FINDINGS

89

FINDINGS

The brand awareness of SGG across all different advertisement communication

channels is the highest. Their awareness across end consumers is the highest.

Whereas their reach to builders, architect through meets and sales people is the

highest. The shop display at retail center is maximum

The AIS in brand awareness across along all the channels is low. Their awareness

across the consumer is very low. The dealer and retailer awareness toward the

brand should be increased through more meets and interaction with the sales

people.

The GGL has the highest awareness through the word of mouth because of long

presence and being the pioneer in the industry.

The AIS can also target Radio to increase its brand awareness. They can also have

the tie-ups with the known builders and architects to advertise their site on their

respective websites.

The awareness can also be increased among the channel partners through regular

mailers about their products and through greetings.

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

important occasions to increase awareness.

90

CONCLUSION

91

CONCLUSION

After analyzing the data collected from various sources following can be concluded :

1.The company can direct its advertisements through different channels towards these

functional benefits of glass. They should organize meets with retailers, should

educate about these functional benefits of glass. They should organize exhibition

where they can invite builders, architects and exhibit these benefits of glass to

increase the awareness and in long term sales.

2.The ad influence is very unsure in nature. There is no high effect on purchase of

that in case of commodity product like glass. Hence the probability seems good,

hence the company should increase the awareness among the consumers because

the less differentiation between the products with respect to customers. Hence the

other mode of communications like PR, sponsorships to events will be good

method to create the awareness.

3.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.

92

4. 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.

93

LIMITATIONS

94

LIMITATIONS

The employees were busy with their daily schedule and it was very much difficult for

them to give time.

Personal biasness of various employees may have supplied wrong data.

Time and money was also an important constraint.

95

RECOMMENDATIONS

96

SUGGESTION & 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 the Year” 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 their products and increase their brand awareness. They can organize some

kind of training on new design to carpenters. They should distribute danglers to

retailers shop and should provide enough booklets, pad to them. They can also

distribute calendar to retailers, carpenters and ultimately to house owners through

this channel to increase their brand awareness 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 videos on “You tube “to increase the awareness. The company should

project their positioning statement “See More, See Clear “in their advertising

media.

97

BIBLIOGRAPHY

98

BIBLIOGRAPHY

MAGZINES:

The Economics Times

The Business Today

The Hindustan Times

SITES

www.asahi.com

www.pepsiworld.com

www.google.com

www.wikipedia.com

www.ask.com

99

QUESTIONNAIRE

100

QUESTIONNAIRE

NAME _______________________________________

AGE (a) 10-25 (b) 26-40 (c) 41 and above

SEX (a) Male (b) Female

INCOME (a) Up to 2 lakhs (b) 2-5 lakhs (c) 5 lakhs and above (d) N.A.

PROFESSION (a) Service (b) Business (c) Student (d) Any other

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

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

101

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

102

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

103

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

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

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9. Which company’s 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

If anything else, please specify

………………………………………………………………………………………………

……………………………………………………………

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