Project Report on
“A study on segmentation, targeting and positioning strategies of Kosmo products at Spacewood Furnishers Pvt.ltd.Nagpur”
Submitted to
SHRI RAMDEOBABA COLLEGE OF ENGINEERING AND MANAGEMENT,
Nagpur In partial fulfillment of the Requirements for the Degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
2014
In specialization
Marketing
Submitted by Project Guide
SHRI RAMDEOBABA COLLEGE OF ENGINEERING AND MANAGEMENT, NAGPUR
CERTIFICATE
This is to certify that the project report be titled “A Study on segmentation, targeting and positioning strategies of Kosmo products at Spacewood Furnishers Pvt.Ltd.Nagpur”is bonafide work of Mr.Abhishek Shukla, student of M.B.A (session 2012-2014), Department of Management Technology, SHRI RAMDEOBABA COLLEGE OF ENGINEERING AND MANAGEMENT, NAGPUR, in partial fulfillment of course in Master of Business Administration (MBA).
Dr. (Mrs.) N.V. Shah Dr.Abhijeet Agashe Dr. V.SDeshpande HOD Project guide Principal
DEPARTMENT OF MANAGEMENT TECHNOLOGY
SHRI RAMDEOBABA COLLEGE OF ENGINEERING AND MANAGEMENT,
DECLARATION
This is to certify that the project report titled “A study on segmentation, targeting and positioning strategies of Kosmo products at Spacewood Furnishers Pvt.Ltd.Nagpur” that is being submitted by me in partial fulfillment of requirement of Master of Business administration (MBA) course semester IV is a bonafide record work exclusively carried out by me.
Place
Date:
ACKNOWLEDGEMENT
I am very indebted to the Director of Department Prof.and the Head of Department , and the faculties of the Department of Management Technology, Ramdeobaba College of Engineering and Management for giving me valuable suggestions in carrying out this project.
I would like to acknowledge the insightful and constructive comments received from for his guidance and constant supervision as well as for providing necessary information regarding the project and also for his support in completing the project.
I also want to thank all the faculty member of department of management technology for their co-operation and valuable suggestions.
INDIAN FURNITURE INDUSTRY India is a land of wonderful and marvelous artistic work of wood which is being appreciated worldwide. The rich Indian handicraft and beautiful traditional attributes of art and design have established a reputation of Indian Furniture Industry in the nation and worldwide to be appreciated by people. There are exceptional designs, rich, compact, and luxurious trends and, not the least, the supreme quality have given elegance to the furniture segment in the traditional as well as modern aspect. Indian Furniture Industry is considered as a "non organized" sector, with handicraft production accounts for about 85% of the furniture production in India. The furniture sector only makes a marginal contribution to the formation of GDP, representing just a small percentage. In the year 2000, India ranked 48th among furniture exporters and 49th among importers. This was due to the high import duty applied, and on the other hand, from the low technological level of Indian companies and the local tastes and traditions that influence the style of the products offered, making them difficult to export. | During 2005, data for index of industrial production, as many as 14 of the 17 industry groups have shown positive growth as compared to the the previous years. However, Wood Products; Furniture and Fixtures have shown a negative growth of 16.7%. Today in India Wood Products, Furniture and Fixtures carry a weight of 27.01 % in the total manufacturing sector. This category has however shown a decline in recent some years. The visible consumption of furniture in India is estimated to be 15 USD per year per inhabitant but this average hides wide variation in populations and in cities. India has a favorable outlook to sell furniture and one expects the furniture industry to grow further in the coming years. Size of the Industry | The Indian furniture industry is estimated at around Rs 35,000 crore (Rs 350 billion). Eighty-five per cent of this falls into the unorganized sector | Geographical distribution | All the metropolititan cities | Output per annum | The market of wooden furniture solely owns the share of nearly Rs 60 crore | Percentage in world market | India was the biggest furniture importer in 2004-05, with a 17 % share in furniture imports worldwide. |
Furniture Industry comprises * Living Room Furniture * Bedroom Furniture * Kitchen Furniture * Drawing Room Furniture * Dining Room Furniture * Entryway FurnitureMarket Capitalization | | |
The Indian wooden furniture industry is able to generate approximately a turnover of Rs 3,500 crore annually. The market of wooden furniture solely owns the share of nearly Rs 60 crore. And as per one of the survey done recently, the industry is expected to grow by 20 percent in coming times.
Total contribution to the economy/ sales
Indian Furniture Industry is estimated to be more than Rs. 60,000 cr. The industry is dominated by unorganized sector, which constitutes 90% of the total Indian market. The organized furniture market is at 10% and growing at about 35% CAGR. Furniture segment comprises 65% of the home market & 35% of Institutions. The entire Home decor category spends, furniture accounts about 68% of the share while remaining 32% comprises of furnishings and home improvement. Imported furniture constitutes to 85% of the total organized furniture industry in the country. India imports furniture from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia and Philippines.
Latest developments in industry
* Indian share of the wooden furniture market is around Rs 60 crore (Rs 600 million). * The world home furniture market is worth Rs 20,000 crore (Rs 200 billion). During the past three years, it grew by 20 % a year. According to a World Bank study, the organized furniture industry is expected to grow by 20 % a year and India, Russia and Brazil will witness a boom. * Indian range of indigenous furniture includes both residential and contract system furniture, with an increased concentration in office and kitchen furniture. * Indian manufacturers generally use a three-tier selling and distribution structure, comprising the distributor, wholesaler and retailer. * India was the biggest furniture importer in 2004-05, with a 17 % share in furniture imports worldwide. A total of 10,476 importers shipped furniture to India during this period. * The current imports are mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, the Philippines and Japan. * The furniture market in India is mainly concentrated in A, B and C cities.
It has been estimated that the top 784 urban centres contribute 41% to the total consumer furniture market. A and B type cities together contribute 33% of the total market
Company Profile
Spacewood Furnishers Pvt. Ltd was incorporated in 1994 by young enterprising engineers Kirit Joshi and Vivek Deshpande as a Component Manufacturing Business in Nagpur. In 1998 Spacewood pioneered the Membrane Press Technology in India and diversified into modular kitchen manufacturing. Today Spacewood is the largest manufacturer of complete Home, Office and Kitchen Furniture by Capacity and Value.
Spacewood was started in 1994 as a Component Manufacture Business. Within a span of 15 years
Spacewood has become a 130 crore company and expanded its business across India covering all major cities and globally present in Middle East and Africa. Spacewood employees about 400 people including 100 engineers and officers, and the operations are being professionally run by a core team of 12 Managers.
The State of the art captive plant spreads over 3 lac square feet. The plant is equipped with latest German technology offering world class facilities. CNC routers and Membrane press technology manufacture everything from pre-laminated boards to ready furniture components.
With a sprawling 15 acre manufacturing unit in Nagpur, Spacewood’s integrated facility brings home autonomous technology, viz. short cycle lamination, panel processing, membrane pressing, press shop, powder coating, etc.
Spacewood upholds global standards with state-of-the-art European machinery operating over the most modern manufacturing processes. BIFMA compliant test laboratory fulfills observance with international practices. Independently functioning with in-house design and product development specialists, Spacewood creates solutions that are future ready, sustainable and world class To be one of the top 3 companies in India providing furniture for home, office and allied needs.
Spacewood operates its vast, 15 acre, state-of-the-art factory for modular furniture from Nagpur. With wide-scale manufacturing facilitated at the heart of the country, it is easier to integrate processes and spearhead distribution from India’s nerve centre.
Spacewood has not only pioneered the membrane pressing technology in India, but also forayed into the most modern woodworking technologies today. The wood working section comprises of German and Italian CNC routers, automated drilling lines, cutting machines and edge bander. The metal working is equipped with press shop, metal pre-treatment and powder coating. Now with backward integration, Spacewood operates as an independent entity by managing short cycle lamination press for production of pre-laminated boards.
From creation till completion, Spacewood has become one of the country’s most comprehensive and widespread manufacturers of modular furniture today.
Modern Living is targeted to premium Class customers Prices of these products are high as compared to kosmo
Kosmo products comes in affordable range basically targeted to the economical Class customers
Mission
Spacewood strives to achieve the vision by * | * Offering value solutions to evolving needs of customers | * | * Innovation and continuous upgradation of products and services | * | * Developing passion for understanding furniture and interiors | * | * Efficient management of resources and supply chain | * | * Participation of employees and business associates | * | * In house Quality assurance laboratory confirms to FIRA/ BIFMA/ BIS standards. |
Business principles | * Compliance with laws and fair business practices | | * Respect customers, business associates and employees | | * Care for environment, health and safety | | * Maintain a clean organization with culture of accountability | | * Encourage teamwork and respect for individual | | * Freedom to innovate at work |
Competitor analysis
Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats.
MAJOR PLAYERS
FURNITURE RETAIL CHAINS
Local big furniture retailers:
1. Sunder furniture
2. Bharat furniture
3. Ambience
4. Eros
INDIAN CONSUMER BEHAVIOR wrt FURNITURE * Value for money * Durability is important * High involvement purchase
Transfer to a new city/home
Reasons to buy furniture
Wedding
When need arises
Child grows up
Consumer behavior wrt furniture
(High value furniture)
Consumer behavior wrt furniture
(Low value furniture) * Dressing table * Purchased much more frequently
Tables-coffee table/side table * study table/centre table * Wall units * Storage unit
Buying behavior * Furniture shopping is a family affair. * Quality is important * People go to the shop, feel the product and buy based on quality and instinct
Research Methodology
Objectives: To analyze the expectations of the customers To know the opinion of customers about Kosmo brand To study post purchase behavior of customers towards Kosmo products Scope: Demographics –all age groups in Nagpur have been taken Demographical factors- male/ Female Sample size have been restricted to 100 Data collection Method
Primary Data: Data which are collected fresh and for the first time and thus happens to be original in character. Primary data are gathered for specific purpose.
Secondary data: Data that are collected from primary data i.e. they are already exists where .for the purpose of our study we collected both the data
For the purpose of this study data collected:
Primary data through: Questionnaire method
Secondary data through:
Magazines, corporate journals, books & web site
