PowerPoint Presentation

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Tex Corp. Ltd. has been in the field of Zippers manufacturing since quite a long time and has gained enough expertise with the consistent efforts over quality & quantity manufacturing.

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MARKETING RESEARCH

The function that links the consumer, customer, and public to the marketer through information.

Marketing Research plays a very significant role in identifying the needs of customers and meeting them in best possible way.

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Marketing Research is of use to the following:-ProducersTo know about product potential in the market vis--vis the total product;New Products;Various brands;Pricing;Market Structures and selection of product strategy, etc.Business and GovernmentMarketing Research helps businesses and government in focusing attention on the complex nature of problems faced by them. For example:Determination of Gross National Product; Price, and per capita income;Expenditure levels and budgeting;Agricultural Pricing;The economic policies of Government; andOperational and planning problems of business and industry

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The Marketing Research Process

1. Define the problem. Make sure that you really 'need' to know something. The problem then becomes the focus of the research. For example, why are sales falling?

2. How will you collect the data that you will analyse to solve your problem? Do we conduct a telephone survey, or do we arrange a focus group?

3. Select a sampling method. Do we us a random sample, stratified sample, or cluster sample?

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6. How will we analyse any data collected? What software will we use? What degree of accuracy is required?

5. Decide upon a budget and a timeframe.

6. Go back and speak to the managers or clients requesting the research. Make sure that you agree on the problem. If you gain approval, then move on to step seven.

7. Go ahead and collect the data.

8. Conduct the analysis of the data.

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9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or analytic mistakes.

10. Write your final report. This will contain charts, tables, and diagrams that will communicate the results of the research, and hopefully lead to a solution to your problem. Watch out for errors in interpretation.

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RESEARCH OBJECTIVES

Tex Corp Ltd., with its existing set-up of die-casting and electroplating, is in a position to manufacture various types of metal components and therefore, is exploring to develop it, as an additional business line. An elaborated market research was therefore, undertaken to decide a suitable entry strategy.

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Major Objective:To Propose Marketing Strategy for Tex Corp Ltd. to enter Metal Component Market.Minor Objectives:To study Metal Components Industry Overview.

To study Metal Components Market Potential and Growth.

To study Customers Expectation (Quality, Service, Price, Lead Time).

To Propose Characteristics of Products (Quality, Price, Service).

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Scope of study:

The study gives a clear picture of the market scenario of Delhi NCR region, for metal components.10

Research methodology The arrangement of condition for collection and analysis of data in a manner that aims to combine the relevance to the research purpose with economy in procedure.

Sample Size:The data was collected through filling up the questionnaires, getting data from Manufacturers & Buyers and market survey. The sample size taken for the study is 41 for the Buyers and 8 for the Manufacturers.

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Data Collection:

Primary Data:The first hand information bearing on any research is the one which has been collected by the researcher. The data here is collected through:A structured questionnaire

Personal interview of both Manufacturers and Consumers.ObservationSecondary Data:The data which has already been collected, complied and presented earlier by any agency may be used for purpose of investigation. The data collected through:Various Government and non Government agencies and other sources available on internet.

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Limitations Of The Study:

Research is based on the collection of data from both primary and secondary sources.

There may be a possibility of biasness on the part of some respondents, but very much care has been taken to make this report unbiased.

Some respondents might not give the correct information due to their lack of interest and shortage of time.

Time constraint.All the information, which is taken, is biased on primary and secondary data that has its own limitations.

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DATA ANALYSISPRODUCT

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Estimated production capacities:

Based on the data from Council for Leather Exports, the total market capacity is:ItemsCapacity (Per Month)Leather Footwear75750000 pairsNon-leather footwear88000000 pairsLeather Garments1333333 piecesLeather Goods5250000 pieces

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Estimation of the market size

Based on the data collected through market research, the estimated market size is :

Sample Size: 41 manufactures (appx. 10% of total market)S no.Metal ComponentsAverage Monthly Consumption1Buckle20,11,533 Pieces2D Ring14,38,866 Pieces3O Ring3,44,666 Pieces4Dog Hook3,34,600 Pieces5Button1,62,03,266 Pieces6Rivet1,76,61,333 Pieces7Eyelet1,69,46,333 Pieces8Triangle63,000 Pieces9Adjuster4,90,000 Pieces10Square3,00,000 Pieces

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Total market potential can be estimated to be:

S no.Metal ComponentsAverage Monthly ConsumptionAverageprice (Rs.)Totalcomponentvalue (Rs.)1Buckle20,11,533 Pieces153,01,72,9952D Ring14,38,866 Pieces81,15,10,9283O Ring3,44,666 Pieces827,57,3284Dog Hook3,34,600 Pieces1240,15,2005Button1,62,03,266 Pieces2.54,05,08,1656Rivet1,76,61,333 Pieces0.2544,15,3337Eyelet1,69,46,333 Pieces11,69,46,3338Triangle63,000 Pieces63,78,0009Adjuster4,90,000 Pieces734,30,00010Square3,00,000 Pieces721,00,000Total Potential of metal components Market (Sample Size: 41 manufactures (appx. 10% of total market)11,62,34,282

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Type of Metal Components Used:D-RingO-RingBuckleDog HookSnap HookRivetsEyeletsButtonsAdjustersSquare TriangleBadgesPendant

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LogoConnecterReducerCD- RingTD-RingBelt Buckle PinDouble C-LinkDouble D-LinkBelt AdjusterSuspender Buckle.

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FinishesNickel BrassSatin NickelAntique BrassBlack NickelMirror NickelNickel Free NickelAntique silverCopperAntique Copper

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Buffed NickelEpoxy PaintedReal GoldBlack CopperCromeTinNaturalWhite Bronze

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Maximum Preferred FinishesBased on the primary data, the most preferred finishes for the overall apparel & accessories industry are:Scale of 0-40 22

With the shift towards Leather/Non leather shoe industry, the trend and use of preferred finishes, changes. The most preferred finish in shoe industry are:Scale of 0-8

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Sizes

Metal ComponentsSize1Buckle8mm,10 mm,12 mm,15 mm, 20 mm,25 mm, 30 mm,38 mm2D-Ring20 mm, 25 mm,30 mm,38 mm,40 mm,50 mm3O-Ring20 mm, 25 mm,30 mm,38 mm,40 mm,50 mm4Dog Hooks10-50 mm5Triangle20 mm, 25 mm,30 mm,38 mm,40 mm,50 mm6Adjusters 18 mm, 25 mm,32 mm,38 mm7Eyelets 8 mm, 12 mm,15 mm, 40 mm8Rivets3 mm- 9 mm9ButtonsCustomized

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Buckle:Scale: 0-32

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The Scenario changes as focused towards shoe industry:Scale: 0-8

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Price Comparison

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PROMOTIONFactors Effecting Buyers Decision:

The Buyers were asked to scale their priority on a scale of 1-8 while purchasing metal components. The priorities were:

QualityPriceDeliveryServiceCustomizationAvailabilityRSL/Heavy MetalsQuality Standard

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Based on the research, the factors effecting buyers decision were:Scale: 40-320 30

When we take the buyers who purchase only from local market, the factors effecting the buying decision were:Scale: 20-36031

GapsParameters Where Metal Component Manufacturers are LaggingScale: 0-40 32

FINDINGS

Metal component market can broadly be divided into 2 categories-

Market AMarket BConsumptionPurely Export OrientedExport & Domestic consumptionSupplierChina, Taiwan , Hong KongAligarh, Sadar Bazaar, GovindpuriFinishSuper Fine Mirror FinishFine FinishRSL ComplianceRSL Compliance followed strictlyRSL Compliance followed up to some extentLead Time28-35 Days15-28 Days

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RECOMMENDATIONPRODUCT RECOMMENDATIONS:Buckle in size 30 mm should be developed.The Thickness of wire should be developed to match the competitors.12 mm & 18 mm pin buckle should be developed to tackle shoe manufacturing industry.To be a long run player in metal component market & to hold the maximum market share, Tex has to increase the product range and product line such as Dog Hook, Adjuster, Badges, Squares and that too in different sizes & finishes. (The preferred sizes for Dog Hook & Adjusters are given in chapter 5).

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To be among the preferences of the buyers, Tex has to develop products according to their demand. To enter into market A, Tex has to improve its quality standards, follow RSL norms very strictly and should have expertise in super fine crystal mirror finish.RSL compliance is a must in upcoming scenario. Product should not fail in corrosion resistance test.

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PRICING RECOMMENDATIONS:

The price of TEX compared to competitors of Market B (Siroski Noida, Goyal Groups Agra, DMJP Sadar, Vishal Fittings Sadar, SPM Govindpuri, Ansun & Metalware) is comparatively low.The price of TEX should be near to its competitor Ansun .

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RECOMMENDATIONS REGARDING COMPETITORS:As the global scenario of export is increasing, Tex has got a lead in producing Nickel free & Lead free metal component through its die cast facility.Tex can have an edge over competitors (Metalware, Siroski, Metal Craft, and Ansun) with lesser lead time.To be among the preferences of the buyers, Tex has to develop products according to their demand.With the prevailing capacity, TEX is in a good position to enter Market B Segment. In most of the cases, TEX fulfills the quality & finish requirements and demands of Market B Segment.

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As Most of the buyers are located in NCR Region, thus, the buyers will prefer a local supplier for their metallic component inventory to cut down the delivery time giving TEX an upper hand.As TEX is already a nominated zipper supplier for many international brands, it has a distinct advantage to get quick nominations.

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OTHER RECOMMENDATIONS:Tex should focus on Footwear manufacturing Industry as the growth rate is more in comparison to Leather garment & Leather goods manufacturing. (Refer- Figure 5a and 5b).

Sales Executive should be sent to buyers with complete samples catalogues and soft copies for product promotional purpose.

To enter into market A, Tex has to improve its quality standards, follow RSL norms very strictly and should have expertise in super fine crystal mirror finish.

Start of bulk deliveries in 7-8 working days is OK with customers.

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Following is the list of companies where Tex Corp. can approach at this initial stage for entering Metal component market:-Excelsior Crafts, FaridabadAdigear International, Mayapuri Industrial Area, New DelhiRoshan Minar International, New DelhiAccessory Archade, Janakpuri, New DelhiBharat Enterprises, Gurgaon.Simran Impex, Okhla, New Delhi.Fashion House, Okhla, New Delhi.Atlantic Leather Line, Okhla, New Delhi.Drishti Apparels, IMT Manesar.Gulati Export House, Gurgaon.Anaemica Art Center, Daryaganj, New Delhi.Orion Conmerx Pvt. Ltd., Gurgaon.Brumario Leather Co. Pvt. Ltd., Gurgaon.Jai Footwear Pvt. Ltd, Anand Parbat, New Delhi.Relaxo Footwear Ltd, Indralok, New Delhi.

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CONCLUSION

On the basis of the overall study done, Tex Corp. Ltd. has got an opportunity to enter into the new business line of Metal Components Tex, and should capitalize its current status of being an MNC.41

Thank You

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