vivek sip report

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ShaYona institute of business

Management

A

Study on

MARKET POTENTIALOF ALUMINIUM PRODUCTS IN

AHMEDABAD

At

JSK INDUSTRIES PVT. LTD.


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A

Comprehensive Project Report

On

Submitted By:

VIVEK JAIN

(Enrollment No:138200592075)

MBA Program: 20132015

In partial fulfillment of the requirements for Summer Internship Program

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted to:-

Gujarat Technological University (GTU), Ahmedabad

MARKET POTENTIAL OF ALUMINIUM PRODUCTS IN AHMEDABAD

At

JSK INDUSTRIES PVT. LTD.


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Declaration

The project report entitled MARKET POTENTIAL OF ALUMINIUM PRODUCTS IN

AHMEDABAD at JSK INDUSTRIES PVT LTD. has been submitted to Gujarat

Technological University, Ahmedabad in partial fulfillment for the award of degree of Master

of Business Administration. I undersigned hereby declare that this report has been completed

by me under the guidance of Mr. Jayesh Jain (Deputy Manager-Marketing) at Jsk

Industries Pvt. Ltd) and Professor Rakesh Sarvaiya (Faculty Member, Shayona

Institute of Business Management, Ahmedabad).

Name of the Student with Signature: Vivek Jain

( )

GTUs Enrollment No.:138200592075

Date: 25thJuly, 2014

Place: Ahmedabad


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Certificate

This is to certify that the project titledMARKET POTENTIAL OF ALUMINIUMPRODUCTS

IN AHMEDABADIs a work done by VIVEK JAIN student of Shayona Institute of

Business Management (SIBM).The student has successfully completed this project under my

guidance.

I am sure that the experience gained during the project work will enable (him) to take similar

challenging projects in future.

(Name of faculty guide)

(Faculty Guide)

Date:

Place: Ahmedabad

Dr. B. K. Nirmal

(HODMBA Programme)


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Acknowledgement

Research is an excellent tool for learning and exploration. No classroom routine can

substitute which is possible while working in real situations. Application of theoretical

knowledge to practical situations is the bonanzas of research.

We really wish to express my gratitude toward all those who have been helpful to us directly

or indirectly during the initiation & development of this project. We would also like to thanks

to Mr. Jayesh Jain Deputy Manager in JSK Industries Pvt.Ltd. who allowed us to

conduct the survey, and who was always there to help and guide us when we needed help.

We are thankful to them for their encouraging and valuable support. Working under them

was an extremely knowledgeable and enriching experience for us. We are very thankful to

them for all the value addition and enhancement done to us.

I am also thankful to our faculty member Mr. Rakesh Sarwaiya Sir and our respected Director

Dr. B.K. Nirmal Sir (Shoyana Institute of Business Management) for giving me guidance to

complete the report successfully. I sincerely acknowledge each and every individual who has

helped me directly and indirectly in preparing this report.

Completing this training successfully was not possible without help of above mentioned

persons. I am highly satisfied working with this organization and once again I am thankful to

the organization.

Thank you.


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Preface

As a part of the course curriculum the second year M.B.A students are required prepared a

comprehensive project. For this project we are require to do an analysis on any particular

industry by gathering and analyzing primary and secondary data. Preparing this report has

helped us relate the management subjects taught in the classrooms to their practical

application.

The preparation of this project is mainly based on the facts and findings noted through the

primary data collected by us from the visits of companys websites and from various written

and published documents.

The objective of the report is to understand Consumer Preferences towards the Aluminium

Products in Ahmedabad. The scope of our project is limited to consumer preferences and

views only.

In spite of our best efforts, there may be errors of omission and commissions in the project

for which we as both take full responsibility.


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Executive summery

Here the study is focused on consumer preferences towards the Aluminum products. The

study is to know about the future, the preferences of features and the impact of the industryon economy and consumers inner needs for variety.

This research work is related to customers and market research study, titled

MARKET POTENTIAL OF ALUMINUM PRODUCTS in the area of Ahmadabad.

The research addresses the factors influencing the customers and their decisions to buy a

particular aluminium product. The survey includes a sample of major customers via a

questionnaire. They answered question about their preference of aluminium products over the

products of steel or iron, the factors influencing their purchase decisions, brand preference as

well as the brand image to the customers which are to be considered by a company beforestarting of a project.

The major empirical findings are:

The Indian aluminium industry sector in the previous decade experienced substantialsuccess among the other industries.

The Indian aluminium industry is developing fast and the advancement in itstechnologies is boosting the growth even faster.

The industry has a bright future as it can become one of the largest players in the

global aluminium market as in India the consumption is fairly low.

The industry may use the surplus production to cater the international need foraluminium which is used all over the world for several applications such as aircraft

manufacturing, automobile manufacturing, utensils, etc.

India has the fifth largest bauxite reserves with deposits of about 3bn tones or 5% ofworld deposits

India's share in world aluminium capacity rests at about 3%.

During the course of this research work, I was provided with an opportunity tointeract with the numbers of people to receive their responses for questionnaire gave a

glimpse of the behaviours of people and how a research should proceed to elicit the

responses comfortably.

The experience gathered during this research study will help me to understand thealuminium sector and the customers' perception and preference of aluminium

products.


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Table of Content

Chapter No. Contents Page no

1 Introduction

11

2 Industry Profile

17

3 SWOT ANALYSIS OF JSK INDUSTRIES PVT. LTD.

26

4 Organizational Buying 28

5 Literature Review38

6 Research Methodology43

6.1 Research Topic44

6.2 Research Objectives44

6.3 Research Questions45

6.4 Limitations of the study46

7 Data analysis 47

8 Finding59

9 Suggestion61

10 Conclusions

63

11 Bibliography 65

12 Annexure

68


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Chapter 1Introduction

Introduction

The Bayer was invented and patented in 1887 by Austrian scientist Karl Josef Bayer.

Two to three tonnes of bauxite are required to produce one tonne of alumina.

90% of the global alumina supply of around 90 million tonnes is used in aluminium

production.

Alumina refineries tend to be located close to bauxite mines and/or ports for efficient

transport of raw materials and of the final product.


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Alumina is used for the production of aluminium metals, through the

HallHroult electrochemical smelting process.

It is also used in applications such as industrial and medical, ceramics, sandpapers, pigments,

cosmetics and pharmaceuticals.

The Bayer Process is the most economic means of obtaining alumina from bauxite. Other

processes for obtaining alumina from metal ores are also in use in some refineries,

particularly in China and Russia, although these make up a relatively small percentage of

global production.

The process stages are:

1. Milling

The bauxite is washed and crushed, reducing the particle size and increasing the availablesurface area for the digestion stage. Lime and "spent liquor" (caustic soda returned from the

precipitation stage) are added at the mills to make pumpable slurry.

2. DesilicationBauxites that have high levels of silica (SiO2) go through a process to remove this impurity.

Silica can cause problems with scale formation and quality of the final product.

3. DigestionA hot caustic soda (NaOH) solution is used to dissolve the aluminium-bearing minerals in

the bauxite (gibbsite, bhmite and diaspore) to form a sodium aluminate supersaturated

solution or pregnant liquor.

Gibbsite:

Al (OH)3+ Na++ OH- Al(OH)4

-+ Na+

Bhmite and Diaspore:

AlO (OH) + Na++ OH-+ H2O Al(OH)4-+ Na+

Conditions within the digester (caustic concentration, temperature and pressure) are set

according to the properties of the bauxite ore. Ores with high gibbsite content can be

processed at 140C, while bhmitic bauxites require temperatures between 200 and 280C.The pressure is not important for the process as such, but is defined by the steam saturation

pressure of the process. At 240C the pressure is approximately 3.5 MPa.

Although higher temperatures are often theoretically advantageous, there are several

potential disadvantages, including the possibility of oxides other than alumina dissolving

into the caustic liquor.

4. Clarification/Settling:-

The first stage of clarification is to separate the solids (bauxite residue) from the pregnantliquor (sodium aluminate remains in solution) via sedimentation. Chemical additives


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(flocculants) are added to assist the sedimentation process. The bauxite residue sinks to the

bottom of the settling tanks, then is transferred to the washing tanks, where it undergoes a

series of washing stages to recover the caustic soda (which is reused in the digestion

process).

Further separation of the pregnant liquor from the bauxite residue is performed utilizing aseries of security filters. The purpose of the security filters is to ensure that the final product

is not contaminated with impurities present in the residue.

Depending on the requirements of the residue storage facility, further thickening, filtration

and/or neutralisation stages are employed prior to it being pumped to the bauxite residue

disposal area.

5. PrecipitationIn this stage, the alumina is recovered by crystallisation from the pregnant liquor, which is

supersaturated in sodium aluminate.

The crystalisation process is driven by progressive cooling of the pregnant liquor, resulting

in the formation of small crystals of aluminium trihydroxite (Al (OH)3, commonly known as

hydrate), which then grow and agglomerate to form larger crystals. The precipitation

reaction is the reverse of the gibbsite dissolution reaction in the digestion stage:

Al(OH)4-+ Na+ Al(OH)3+ Na

++ OH-

6. EvaporationThe spent liquor is heated through a series of heat exchangers and subsequently cooled in a

series of flash tanks. The condensate formed in the heaters is re-used in the process, forinstance as boiler feed water or for washing bauxite residue. The remaining caustic soda is

washed and recycled back into the digestion process.

7. ClassificationThe gibbsite crystals formed in precipitation are classified into size ranges. This is normally

done using cyclones or gravity classification tanks (a series of thickeners utilising the same

principles as settlers / washers on the clarification stage). The coarse size crystals are

destined for calcination after being separated from spent liquor utilising vacuum filtration,

where the solids are washed with hot water.

The fine crystals, after being washed to remove organic impurities, are returned to theprecipitation stage as fine seed to be agglomerated.

8. Calcination


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The filter cake is fed into calciners where they are roasted at temperatures of up to 1100C to

drive off free moisture and chemically-connected water, producing alumina solids. There are

different calcination technologies in use, including gas suspension calciners, fluidised bed

calciners and rotary kilns.

The following equation describes the calcination reaction:

2Al (OH)3 Al2O3+ 3H2O

Alumina, a white powder, is the product of this step and the final product of the Bayer

Process, ready for shipment to aluminium smelters or the chemical industry.

Global society faces a great challenge to shift human economic activity and lifestyles on to a

sustainable path in the 21st century, including meeting threats from climate change. The

story of the aluminium industry over the decades ahead must be one of how it is part of the

solution for a sustainable future. The metal aluminium has a vital role to play in successfully

addressing this sustainability challenge.

Aluminium is the third most abundant element in the earth's crust and constitutes 7.3% by

mass. The existence of was first established in 1808 but there were a few historical mentions

of aluminium use. The aluminium metal was extracted from the ore after many years of

research. It was possible only in the year 1854 to develop a viable commercial production

process of aluminium. Primary aluminium is the hot molten metal that is produced in the

smelter. Secondary aluminium is the finished goods made from primary aluminium.

Aluminium is a young material, and in the little more than a century since its first commercial

production, it has become the worlds second most used metal after steel. The demand for

aluminium products is increasing year by year, so why is aluminium a metal in such demandand what is its role in the lives of future generations?

Why Aluminium?

Modern life is full of advantages brought about by the use of aluminium. Some of the

major benefits of this unique metal are:

StrengthPure aluminium is soft enough to carve but mixed with small amounts of other metal to form

alloys, it can provide the strength of steel, with only one-third of the weight.

Durability

Aluminium sprayed on a polymer forms a thin insulating sheet.Flexibility

Its combination of properties ensure aluminium and its alloys can be easily shaped by any of

the main industrial metalworking processes - rolling, extrusion, forging and casting.

Impermeability

Aluminium has excellent barrier function which makes it ideal for food and drink packaging

and containers. It keeps out air, light and microorganisms while preserving the contents

inside.


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Chapter 2

Company Profile

AN EMERGING NAME IN THE POWER SECTOR

JSK Industries Pvt. Ltd. is a leading Aluminium Conductor manufacturer specializing in:

Power Transmission & Distribution Conductors

Aluminium Wire Rods

Aluminium Alloys, and,

EC and De-oxi Flipped Coils

Established in 1965, the Company carries out its manufacturing activities in facilities in its

state-of-the-art, ISO 9001:2008certifiedmanufacturing facility at Silvassa. A technology-

driven engineering organization, JSK Industries Pvt. Ltd. is well-diversified and ranksamongst the largest private sector aluminium conductor manufacturing companies in the

India. The Company is known for initiating new processes, products and materials.

A strong customer-focused approach and a constant quest for quality has enabled the

company to attain and sustain leadership position in all lines of business. Companyclient

list includes all the leading names in the power sector. The company is a responsible

corporate citizen with abiding belief in human engineering.

JSK Industries Pvt. Ltd. also registered as Trading Firm in Mumbai and Ahmedabad.

Company has dealership of Nalco for Aluminium Flat Rolled Products, Ingots & Wire Rods

and dealing with Balco, Hindalco, Virgo and Metenere etc.

Jsk Industries Pvt. Ltd. Head office and Branch Office Address:-

Mumbai head office:-

JSK Industries Pvt. Ltd.

9, A. K. Naik Marg, CST,

Mumbai400 001, Maharashtra.

Ahmedabad Branch office:-

JSK Industries Pvt. Ltd.
http://www.jskindia.in/corporate-profile/manufacturing-facility-capacity.htmhttp://www.jskindia.in/clientele/clientele.htmhttp://www.jskindia.in/clientele/clientele.htmhttp://www.jskindia.in/clientele/clientele.htmhttp://www.jskindia.in/clientele/clientele.htmhttp://www.jskindia.in/corporate-profile/manufacturing-facility-capacity.htm


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Mr. Jayesh Jain (Deputy ManagerMarketing)

002, Kanchandeep, Satellite Road,

Nehrunagar, Ahmedabad - 380015, India.

Company specializes in stock of all kinds of aluminium in various alloys from 1xxx to 7xxx

series. Aluminium products range is as following: - 1. Aluminium plates 2. Aluminium plain

sheets 3. Aluminium Cheuqered sheets 4. Aluminium industrial troughed & circular

corrugated sheets 5. Aluminium coils 6. Aluminium foils 7. Aluminium ingots 8. Industrial

extrusions :- like flat bar/bus bar, rods, square bar, square tube, round tube, channel, angle,

equal leg, angles, rectangular tubes etc.

Aluminium Products range are as following:-

1. Aluminium Plates:-

2.Aluminium Plain Sheets:-

Alloy 1xxx, 2xxx, 3xxx, 4xxx, 5xxx, 6xxx

Width Range 800-1540 mm

Standard (Trimmed) 915, 1220, 1400 and 1500 mm

Standard (Untrimmed) 1270, 1540 mm

Thickness 6-200mm for 1xxx

10-200mm for 3xxx,4xxx

25-200mm for 5xxx

8-20 mm for 2xxx, 6xxx (stretched)

Weight Depends on dimensions

Temper F / M, O, H1, H111, H112, T4, T6

Finish Mill Finish


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Alloy 1xxx, 2xxx, 3xxx, 4xxx, 5xxx, 6xxx, 8xxx

Width Range 800-1500 mm

Standard 915, 1000, 1159, 1220, 1300, 1321, 1500 mm

Length Range 1830-4350 mm

Standard 2440, 2540, 2745, 3000, 3050 mm

Thickness 0.56-4.00 mm (length & width for sheets having thickness of

over 4.00 mm is subject to confirmation)

Weight Depends on dimensions

Temper O, H1, H2, H3, H4, T4, T6

Finish Mill Finish

3. Aluminium Cheuqered Sheets:-

Width Standard- 813, 915, 1220, 1500 mm

Length Range - 1830-4350 mm

Thickness 0.7-5 mm

Alloy Special, 3105

Temper M


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4. Aluminium Industrial Troughed & Circular Corrugated Sheets:-

1. Corrugated (Industrial Troughed ) Sheets

Width of corrugated Sheet 795mm & 920mm

Length of Sheet 1830mm -4000mm

However Standard Lengths are 1830mm, 2135mm, 2440mm, 2745mm, 3050mm,3355mm, 3660mm & 3965mm

Depth of Corrugation 38mm

No. of Corrugation 6/125mm for 795mm width, 7/125mm for 920mm width

Width of corrugation 125mm

Alloy 19000 (1100/1200), 31000 (3003), Temper H4 (H18)

Thickness 0.5-1.63mm

However standard thicknesses are 1.63mm, 1.42mm, 1.22mm, 0.91mm, 0.71mm,

0.56mm & 0.50mm

Dimensional Tolerances Width +/- 10mm, Length +/- 6mm

2. Circular Corrugated Sheets

Width of corrugated Sheet 660mm, 800mm, 813mm & 1100mm

Length of Sheet 1830mm -4000mm

However Standard Lengths are 1830mm, 2135mm, 2440mm, 2745mm, 3050mm,

3355mm, 3660mm & 3965mm

Depth of Corrugation 19mm

No. of Corrugation 8/76.2mm for 660mm width, 10/76.2mm for 813mm width,

10/75mm for 800mm width, 14/75mm for 1100mm width

Width of corrugation 75mm & 76.2mm

Alloy 19000 (1100/1200), 31000 (3003), Temper H4 (H18)Thickness 0.4-1.63mm

However standard thicknesses are 1.63mm, 1.42mm, 1.22mm, 0.91mm, 0.71mm,

0.56mm & 0.50mm

Dimensional Tolerances Width +/- 10mm, Length +/- 6mm

5. Aluminium Coils:-


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7. Aluminium Ingots:-

8. Industrial Extrusions:-like Flatbar/ Busbar, Rods, Square Bar, Square Tube,

Round Tube, Channel, Angle, Equal Leg, Angles, Rectangular Tubes etc.

Jsk Industries Pvt. Ltd.

Vision:


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To strengthen our position as a premium aluminium company, sustaining domestic

Leadership and global competitiveness through innovation, quality and value added

Growth.

Mission:

To pursue the creation of value for our customers, shareholders, employees andSociety at large.

Values:

Integrity

Honesty in every action

CommitmentOn the foundation of integrity, doing whatever it takes to deliver, as promised.

Passion

Missionary zeal arising out of an emotional engagement with work

SeamlessnessThinking and working together across functional silos, hierarchy levels, businesses

and geographies.

Speed

Responding to stakeholders with a sense of urgency

Competitors of Jsk Industries Pvt. Ltd.:-

- Primacy Systems Pvt. Ltd.

- Hement J. Parikh- Kiran Metals

- Gujarat Metals- Jagdish Aluminium Ltd.

- Marudhar Industries

Suppliers of Jsk Industries Pvt. Ltd.:-

- National Aluminium Co. Ltd. (Nalco)

- Bharat Aluminium Co. Ltd. (Balco)- Hindalco Industries Ltd.- Jindal Aluminium Ltd.

- Metenere Ltd.

- Virgo Aluminium Ltd.

INDIAN ALUMINIUM INDUSTRY:-


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Indian Aluminium Industry is one of the leading industries in the Indian economy. The

growth of the aluminium

Industry in India would be sustained by the diversification and exploration of new horizons

for the industry.

India has huge deposits of natural resources in form of minerals like copper, chromites, iron

ore, manganese, bauxite gold, etc.

The India aluminium industry falls under the category of non iron based which include the

production of copper, tin, brass, lead, zinc, aluminium and manganese.

The main operations of the India aluminium industry is mining of ores, refining of the ore,

casting, alloying, sheet and rolling into foils. At present, Hindalco and Nalco are one of the

most economical in the production of the aluminium in the world.

For the sustenance of the growth the aluminium industry in India has to develop research and

development units to assist the production and improve on the quality measures to keep a

stringent quality control.

The India aluminium industry sector in the previous decade experienced substantial success

among the other industries. The India aluminium industry is developing fast and the

advancement in its technologies is boosting the growth even faster.

The utilization of both international and domestic resources was significant in the rapid

development of the India aluminium industry. This rapid development has made the India

aluminium industry prominent among the investors.

The India aluminium industry has a bright future as it can become one of the

largest players in the global aluminium market as in India the consumption is fairly low, the

industry may use the surplus production to cater the international need for aluminium which

is used all over the world for several applications such as aircraft manufacturing, automobile

manufacturing, utensils, etc.

The Companies under the India Aluminium Industry:-

Hindalco (Hindalco Industries Ltd.)Nalco (National Aluminium Co. Ltd.)

Balco (Bharat Aluminium Co. Ltd.)

Jindal Aluminium Ltd.

Metenere Ltd.

Virgo Aluminium Ltd.

Manaksia Ltd. Etc


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Chapter 3

SWOT ANALYSISSTRENGTHS:-

Strong Brand Recognition

Internet Sales

Superior Research and Development Team

Strong Financial Position

Strong sense of culture in the Working Environment

Successful Experience being Competitive

Cost leadership

Prestigious Client Base

Customer Loyalty

Diversified Business

Product Innovation Capabilities

Technological excel.

Good Corporate Image

WEAKNESSES:-

Crane Facilities not available in warehouse for material handing Poor Transport Facilities

OPPORTUNITIES:-

Growth of core sector industries

Rapid integration with global economy

Booming construction business in Gujarat

Growing e-commerces business.

Increasing urbanization

THREATS:-

Entry of global players

Take over possibilities

Political threats

The impact of foreign currency fluctuation and interest rates.

Loss of sales to substitutes


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Chapter.4

Organizational Buying

CONSUMER BUYER BEHAVIOUR:-

Consumers are individuals who buy products and services for personal consumption.

Sometimes it is difficult to classify a product as either a consumer or an organisational good.

for example, sell to consumers for personal consumption and to organisations for use incarrying out their activities (e.g. to provide transport for a Sales Executive). For both types of

buyer, an understanding of customers can only be obtained by answering the following five

questions:

1. Who is important in the buying decision?

2.How do they buy?

3. What are their choice criteria?

4. Where do they buy?

5. When do they buy?

This chapter addresses the first three of these questions since they are often the most difficult

to answer.

Who buys?

Many consumer purchases are individual. When purchasing a Mars bar a person may make

an impulse purchase upon seeing an array of confectionery at a newsagentscounter.

However, decision-making can also be made by a buying centre, such as a household. In this

situation a number of individuals may interact to influence the Purchase decision.

Each person may assume a role in the decision-making process. Blackwell, Miniard and

Engel describe five roles. Each may be taken by husband, wife, children or other members ofthe household:

1. Initiator: The person who begins the process of considering a purchase. Informationmay be gathered by this person to help the decision.

2. Influencer:The person who attempts to persuade others in the group concerning theoutcome of the decision. Influencers typically gather information and attempt to

impose their choice criteria on the decision.

3. Decider: The individual with the power and/or financial authority to make the

ultimate choice regarding which product to buy.


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4. Buyer: The person who conducts the transaction: who calls the supplier, visits thestore, makes the payment and effects delivery.

5. User: The actual consumer/user of the product. One person may assume multiple

roles in the buying centre. In a toy purchase, for example, a child may be the initiator andattempt to influence their parents who are the deciders. The child may be influencedby a

sibling to buy a different brand. The buyer may be one of the parents, who visits the store to

purchase the toy and brings it back to the home. Finally, both children may be users of the

toy. Although the purchase was for one person, marketers have four opportunitiestwo

children and two parentsto affect the outcome of the purchase decision.

Consumer and organisational buyer behaviour81

The marketing implications of understanding who buys lie within the areas of marketing

communications and segmentation. Identifying the roles played within the buying centre is a

prerequisite for targeting persuasive communications. As the previous discussion has

demonstrated, the person who actually uses or consumes

The product may not be the most influential member of the buying centre, nor may they be

the decision-maker. Even when they do play the predominant role, communication to other

members of the buying centre can make sense when their knowledge and opinions may act as

persuasive forces during the decision-making process.

The second implication is that the changing role and influences within the family buying

centre are providing new opportunities to creatively segment hitherto stable markets (e.g.

cars).

The consumer decision-making processhow they buy

Behavioural scientists regard the consumer decision-making process as a problem solving

or need-satisfaction process. Thus, an electronic calculator may be bought in order to solve a

probleminaccuracy or slowness in arithmeticwhich itself defines the needfast and

accurate calculations. In order to define which calculator to buy, a consumer may pass

through a series of steps, 3 as illustrated in Figure 3.1.

Figure 3.1 the consumer decision-making process

Needs

In the case of the calculator, the needs (stimulated by problem identification) are essentially

functional. In this situation the salesperson would be advised, after identifying the buyers

needs, to demonstrate the speed and accuracy of the calculators they are selling. Successful

selling may involve identifying needs in more detail; for example,

are special features required or does the buyer only have to perform a standard, basic set of

calculations, implying a less elaborate and cheaper calculator? For other products need

satisfaction may be emotional orpsychological.

Evaluation of alternatives and selection of the best solution

Evaluation may be thought of as a system, as depicted in Figure 3.2.


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1. Evaluative (choice) criteri a:

These are the dimensions used by consumers to compare or

evaluate products or brands. In the car example, the relevant evaluative criteria

may be fuel economy, purchase price and reliability.

2. Beliefs:These are the degrees to which, in the consumers mind, a product possesses

various characteristics, e.g. roominess.

3. Attitudes:These are the degrees of liking or disliking a product and are in

turn dependent on the evaluative criteria used to judge the products and the beliefs about

the product measured by those criteria. Thus beliefs imply knowledge,

84

4. Intentions:These measure the probability that attitudes will be acted upon.

The assumption is that favourable attitudes will increase purchase intentions, i.e. the

probability that the consumer will buy. Given this system, it makes sense for a salesperson tofind out from a prospect the evaluative criteria being used to judge alternative products. For

example, a stereo system salesperson will attempt to find out whether a potential buyer is

evaluating alternative stereo units primarily in terms of external design or sound quality.

Further, it can be effective to try to change evaluative criteria.

Post-purchase evaluation of decision:-

The art of effective marketing is to create customer satisfaction. Most businesses rely on

repeat purchasing, which implies that customers must gain satisfaction from their purchases

(otherwise this will not occur). Festinger5 introduced the notion of cognitivedissonance

partly to explain the anxiety felt by many buyers of expensive items shortly after purchase.

The classic case of this is the car buyer who assiduously reads car advertisements after

having bought the car in an effort to dispel the anxiety caused by not being sure that they

have made the correct purchase.

Choice criteria:-

Are the various features (and benefits) a customer uses when evaluating

products and services. They provide the grounds for deciding to purchase one brand or

another. Different members of the buying centre may use different choice criteria.

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Chapter 5-

Literature ReviewConsumer Preference:-

A just released customer research study, titledMarket Potential of aluminium products in

Ahmedabad throws a light on customers face a complex set of choices with respect to the

selection of aluminium products and as well as a particular brand or company.

In this research we collected information about present and future prospects of the Indian

Aluminium Industry and beliefs and view points of the customers.

Our respondents locate aluminium products much more than any other products such as iron,

steels, copper or any other alloys. But they mention that the cost associated investing in

aluminium products is much more than these classes.

The potential importance of aluminium is immediately evidenced from many of the

questionnaire's result. In many question, we observe significant response in Don't know

response.

Considered aged person from middle class background seeking a stable lifelong job. The

income factor should be properly defined before targeting.

The key fact is the ability is the uses of aluminium in different products. According to theresearch, the aluminium products tried to capture the maximum share in the market through

its various features such as light weight, easily portable and good resale.

Customer satisfactionis a term frequently used inmarketing.It is a measure of how

products and services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its .services (ratings)

exceeds specifiedsatisfaction goals." In a survey of nearly 200 senior marketing managers,71 percent responded that they found a customer satisfaction metric very useful in managing

and monitoring their businesses.

It is seen as akey performance indicator within business and is often part of aBalanced

Scorecard.In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of

business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They focus

employees on the importance of fulfilling customers expectations. Furthermore, when theseratings dip, they warn of problems that can affect sales and profitability. . . . These metrics
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quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-

mouth marketing, which is both free and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or service

has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction.

When customers have high expectations and the reality falls short, they will be disappointed

and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for

example, might receive a lower satisfaction rating than a budget moteleven though its

facilities and service would be deemed superior in 'absolute' terms."

The importance of customer satisfaction diminishes when a firm has increasedbargaining

power.For example,cell phoneplan providers, such asAT&T andVerizon,participate in an

industry that is anoligopoly,where only a few suppliers of a certain product or service exist.

As such, many cell phone plan contracts have a lot offine print with provisions that they

would never get away if there were, say, a hundred cell phone plan providers, because

customer satisfaction would be far too low, and customers would easily have the option of

leaving for a better contract offer.

The consumers decision to purchase or not to purchase a product or service is an important

moment for most marketers. It can signify whether a marketing strategy has been wise,

insightful, and effective, or whether it was poorly planned and missed the mark. Thus,

marketers are particularly interested in the consumers decision-making process. For a

consumer to make a decision, more than one alternative must be available. (The decision not

to buy is also an alternative.)

Theories of consumer decision making vary, depending on the researchers assumptions

about the nature of human kind. The various models of consumers (economic view, passive

view, cognitive view, and emotional view) depict consumers and their decision-making

processes in distinctly different ways.

An overview consumer decision-making model ties together the psychological, social, and

cultural concepts examined in Parts II and III into an easily understood framework. This

decision model has three sets of variables: input variables, process variables, and output

variables.

Routinized Response Behavior:-

1. At this level, consumers have some experience with the product category and a well-established set of criteria with which to evaluate the brands they are considering.
http://en.wikipedia.org/wiki/Bargaining_powerhttp://en.wikipedia.org/wiki/Bargaining_powerhttp://en.wikipedia.org/wiki/Cell_phonehttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Verizonhttp://en.wikipedia.org/wiki/Oligopolyhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Fine_printhttp://en.wikipedia.org/wiki/Oligopolyhttp://en.wikipedia.org/wiki/Verizonhttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Cell_phonehttp://en.wikipedia.org/wiki/Bargaining_powerhttp://en.wikipedia.org/wiki/Bargaining_power


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a) They may search for a small amount of additional information.

2. Just how extensive a consumers problem-solving task is depends on how well

established his or her criteria for selection are, how much information he or she has about

each brand being considered, and how narrow the set of brands is from which the choice

will be made.

3. Routinized response behavior implies little need for additional information.

Opinion leadership is the process by which one person (the opinion leader) informally

influences the actions or attitudes of others who may be opinion seekers or merely opinion

recipients. Opinion receivers perceive the opinion leader as a highly credible, objective

source of product information who can help reduce their search time and perceived risk.

Opinion leaders, in turn, are motivated to give information or advice to others in part because

doing so enhances their own status and self-image and because such advice tends to reduce

any postpurchase dissonance that they may have. Other motives include product involvement,

other involvement, and message involvement.

Market researchers identify opinion leaders by such methods as self-designation, key

informants, the sociometric method, and the objective method. Studies of opinion leadership

indicate that this phenomenon tends to be product-specific; that is, individuals specialize in

a product or product category in which they are highly interested. An opinion leader for one

product category may be an opinion receiver for another.

Generally, opinion leaders are gregarious, self-confident, innovative people who like to talk.Additionally, they may feel differentiated from others and choose to act differently (or public

individuation). They acquire information about their areas of interest through avid readership

of special-interest magazines and by means of new-product trials. Their interests often

overlap adjacent product areas; thus, their opinion leadership may extend into related areas.

The market maven is an intensive case of such a person. These consumers possess a wide

range of information about many different types of products, retail outlets, and other

dimensions of markets. They both initiate discussions with other consumers and respond to

requests for market information over a wide range of products and services. Market mavens

are also distinguishable from other opinion leaders because their influence stems not so much

from product experience but from a more general knowledge or market expertise that leads

them to an early awareness of a wide array of new products and services.

The opinion leadership process usually takes place among friends, neighbors, and work

associates who have frequent physical proximity and, thus, have ample opportunity to hold

informal product-related conversations. These conversations usually occur naturally in the

context of the product-category usage.


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The two-step flow of communication theory highlights the role of interpersonal influence in

the transmission of information from the mass media to the population at large. This theory

provides the foundation for a revised multistep flow of communication model, which takes

into account the fact that information and influence often are two-way processes and that

opinion leaders both influence and are influenced by opinion receivers.

Marketers recognize the strategic value of segmenting their audiences into opinion leaders

and opinion receivers for their product categories. When marketers can direct their

promotional efforts to the more influential segments of their markets, these individuals will

transmit this information to those who seek product advice. Marketers try to both simulate

and stimulate opinion leadership. They have also found that they can create opinion leaders

for their products by taking socially involved or influential people and deliberately increasing

their enthusiasm for a product category.

The diffusion process and the adoption process are two closely related concepts concerned

with the acceptance of new products by consumers. The diffusion process is a macro process

that focuses on the spread of an innovation (a new product, service, or idea) from its source to

the consuming public. The adoption process is a micro process that examines the stages

through which an individual consumer passes when making a decision to accept or reject a

new product.

The definition of the term innovation can be firm-oriented (new to the firm), product-oriented

(a continuous innovation, a dynamically continuous innovation, or a discontinuous

innovation), market-oriented (how long the product has been on the market or an arbitrary

percentage of the potential target market that has purchased it), or consumer oriented (new to

the consumer). Market-oriented definitions of innovation are most useful to consumer

researchers in the study of the diffusion and adoption of new products.

Five product characteristics influence the consumers acceptance of a new product: relative

advantage, compatibility, complexity, trialability, and observability (or communicability).

Diffusion researchers are concerned with two aspects of communicationthe channel

through which word of a new product is spread to the consuming public and the types of

messages that influence the adoption or rejection of new products. Diffusion is always

examined in the context of a specific social system, such as a target market, a community, a

region, or even a nation.


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Chapter 5-

Research Methodology

Research Topic:

MARKET POTENTIAL OF ALUMINIUM PRODUCTS IN

AHMEDABAD

Research Problem

Seek the general perception of consumer towards Aluminium products

Research objective:-

1 Find out the attributes that affects the satisfaction level of Ahmedabad consumer

2 To study consumer preference towards Aluminium product.

Research Design

A descriptive research design was used to conduct the research. This is due to the fact

that the customer

Requirements and their views about the multiple uses of aluminium products were

considered.

DATA SOURCE PRIMARY

RESEARCH APPROACH DESCRIPTIVE

RESEARCH INSTRUMENT STRUCTURED QUESTIONNAIRE

SAMPLING UNIT 100

DATA COLLECTION METHOD PERSONAL INTERVIEWSources of data collection

Primary data collection

Secondary data collection


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Primary data collection:

Primary data is collected with the help of interview administered questionnaires by

conducting survey for Aluminium products in Ahmedabad .

Secondary data collection:

We were got information with help of articles and website of the company and some

information given by company Customer using aluminium in Ahmedabad City=1000

(Odhav, vatva GIDC, Naroda, Rakhiyal,)

Putting all values above in the formulae given: Sample Size= 196

(So, Sample size has been taken here for convenience=200)

(Source: www.samplesurvey.com)

SAMPLE DESIGN

The sampling design used was Convenience sampling, which is a non-probability

sampling method. The convenience factors were the availability and approachability of

the respondents.

SAMPLE UNIT - Consumers thoseare buy Aluminum products.

SAMPLE SIZE - 200 consumers.

TARGET AREA - Population using Aluminum in Ahmedabad City=1000 (Odhav, vatvaGIDC, Naroda, rakhiyal)

NEED OF RESEARCH

Verify and test the existing facts and theories

Find solutions to problems

Develop new tools, concepts and theories

Extension of knowledge


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SCOPE OF THE STUDY:

The scope of the study includes the customers who are using Jsk Industries Pvt Ltd.'s

products and those who are using competitive products.

The scope of the study is not limited only to assessing the market potential aluminium sheet,

coil products but to create awareness regarding multiple use of aluminium products.

Study is based only on Ahmedabad region

LIMITATIONS OF THE RESEARCH

The study is restricted in the scope owing to the following limitations :

Since the research was based only on the Ahmedabad market conditions, the sameresults cannot be generalized over the whole target market of Jsk Industries pvt. Ltd.

The customers in other states are a major population that contributes to a large portion ofaluminium coil & sheet sales.

The research had a time constraint. As the topic is very vast and so does its constraintsthat make the report tough one to cover all area The research had to be limited with justa questionnaire, which does not help bring out the major issues that are being addressed

by an interview.

The study is limited to a particular geographical area that is Ahmedabad.

The information and data collected and analyzed is restricted to the researchers

knowledge and ability.

The answers that I have got from the Consumer cannot be considered as totally

perfect because of various personal and other limitations.


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2.What type of aluminium product do you use?

Scale Respondents

Rolled Products like

Sheet, Coil, Plate,

Chequered Sheet etc

100

Industrial Extrusions like

Busbar, Rod, Pipe, Channel

etc.

10

Ingot 35

Wires / Conductors 5

If any other, specify 10

Total 160

Interpretation:

From the response of the question it is concluded that;

Flat rolled product&ingot ad influences a lot for Aluminium product buying decisions as

50% & Ingot 26% effective tools for promoting Aluminium products

100

10

35

5 10

200

0

50

100

150

200

250

Influencers

respondnt


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3.For given aluminium Flat Rolled Product, which type of product will you use?

sheet 35

coil 25

Plate 20

Cheuqered sheet 15

Other 5

Total 100

Interpretation:

It is extracted that:

Sheet & plate are dominating brands having 34% & 28.5% market covered according to

the response got.

0

20

40

60

80

100

120

140

160

180

200

sheet coil plate chaqured

sheet

Other Total

3525 20 15

5

200Responding


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4. Which of the manufacturing companies are you aware of?

Scale Respondents

Hindalco 37%

Balco 25%

Nalco 23%

Jindal 10%

Metenere 5%

Total 100

Interpretation:

From above response it can be said that;37% customers aware from Hindalco and 25% aware from Balco & 23% aware from

Nalco.

23

37

25

10

5


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5.Which of the distributors/suppliers of flat rolled products are you aware of?

Product Respondent

Jsk IndustriesPvt.Ltd.

40

Primacy Systems Pvt.

Ltd.

5

Kiran Metals 10

Gujarat Metals 10

Hement J. Parikh 25

Any other Suppliers,

Specify....

10

TOTAL 100

Interpretation:

It can be said that consumer preferences as 40% respondents of aware Jsk Industries Pvt. Ltd.

01020304050607080

90

100

40

5 10 10

25

10

100

series 2


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6. What are the major factors that influence your purchase decisions?

Scale Rate

Quality 35%

Price 5%

Brand 20%

Availability 10%

Services 30%

Total 100

Interpretation:

It can be said that for Aluminium products price sensitivity does not affect that much as

now days people are more attracted towards quality, Services, Brand & availability of

material.

0

10

20

30

40

50

60

70

80

90

100

QualityPrice

BrandAvailability

Services

Total

35

520

10

30

100


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7. Are you satisfied with your exiting supplier of aluminium flat rolled products?

YES 78

No 22Total 100

Interpretation:

It can be interpreted that;

78% people will be satisfied with exit supplier of Aluminum Flate rolled product.

78

22

YES

NO


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8. If you are told to replace your existing supplier, would you go for JSK Industries

Pvt. Ltd.?

Scale Respondents

Yes 35%

No 65%

Total 100

Interpretation:

The above chart shows that 65% decisions are affected with the use of Aluminum

products used in the Customer while No change In property purchase decision.

35

65

100

0

20

40

60

80

100

120

Yes No Total

Respondent


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9.Are the prices of aluminium flat rolled products of JSK Industries Pvt. Ltd. Competitive?

Scale Respondents

Yes 65%

No 35%

Total 100

Interpretation:

The above chart shows that if customers are satisfied with the products; they would

recommend it.

65

35

0

Respondents

Yes

No


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10. Which feature do you like about JSK Industries Pvt.Ltd. products?

Interpretation:

Most of the respondents are our common

0

20

40

60

80

100

120

Availability of

material

Good Relation service provide Total

Respondents

Scale Respondents

Availability of

material

40

Good Relation 25

Service provide 35

TOTEL 100


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FINDING

1. Hindalco & Balco are dominating brands having 34% & 28.5% market covered

according to the response got.

2. 60% of respondents are satisfied with the quality of the Aluminium products; presently

they are using.

3. 45% respondents wish to buy Aluminium products on the basis of design.

4. It can be said that for Aluminium products price sensitivity does not affect that much as

now days people are more attracted towards variety

5. 78% respondents may purchase unknown brands; it shows their Quality & service.


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SUGGESTIONS

So many giants and creative entrepreneurs are there in this industry who

already knows demand of the customers.

But according to findings of this research they should invest in research of design

of the products as consumers are variety seeking in this category.

Price sensitivity is less so Quality & Service can be charged higher.

Quality & service are the main keys.

Most of the users recommend their usage in this category so it can be encashed.


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Conclusion

Creativity & Innovativeness in the design can be main power for the

manufacturers. In this field price sensitivity is less so Life Style products with

higher standard can be produced and marketed.

Quality is the dominating aspect which influences consumer to purchase

Aluminium product, but prompt availability of other brands and aggressive

promotional activities by others influences the consumer towards them and

also leads to increase sales


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Bibliography

1. Leon G. Schiffman, Havard Hansen, Leslie, Lazar Kanuk, Consumer Behavior,

2008, Pearson Publication.

2. C. R. Kothari, Research Methodology, 2004, new Age International Publishers.

3. Philip Kotler, Kevin Lane Keller, Abraham Koshy, MithileshwarJha, Marketing

Management, 2009, Pearson Publication

4. Ramaswamy V.S., Namakumari S. "Marketing Management" 30edition 2006 Macmillan

Publications. P. No. 311,312

5. Kumar Arun, Minakshi N. "Marketing Management" Vikash publication I" edition

2006 P. No 213, 214

Following sources have been undertaken while competing summer training, here is a

glimpse:

WEB: -

REFERENCES:

I used different sources for completing this project mostly I took a very good help from

Internet and I also use our collage library and books amiable in market.

I took information from dif ferent si tes and they are:

http://www.google.co.in/

http://www.indiamart.in/

http://en.aluminium.org

www.jskindia.in

www.balcoindia.in

MAGAZINES & PUBLICATIONS:

1. Business World

2. India Today
http://www.google.co.in/http://www.indiamart.in/http://www.indiamart.in/http://en.aluminium.org/http://en.aluminium.org/http://en.aluminium.org/http://www.indiamart.in/http://www.google.co.in/


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Annexure

Dear Sir ,

I am management student from college of SIBM, AHMEDABAD and it is affiliated to

Gujarat Technological University. I am doing project on Market Research and for that

purpose I would like to have some information from you. This information would be kept

strongly confidential and will be used only for academic purpose.

A Questionnaire which was prepared as per the market survey requirement essential in

the course of summer training title MARKET POTENTIAL OF ALUMINIUM

PRODUCTS IN AHMEDABADis as under:

Name of the correspondent: -

Mr./Mrs./Ms._______________________________________________

Address: -__________________________________________________

__________________________________________________________

Contact No.: _________________________

E-mail: _____________________________

Research Content:-

Are you a customer of aluminium products?Ans: a) Yes

b) No.

What type of aluminium product do you use?Ans: a) Flat Rolled Products like Sheet, Coil, Plate, Cheuqered Sheet etc.

b) Industrial Extrusions like Busbar, Rod, Pipe, Channel etc.

c) Ingot

d) Wires / Conductors

e) If any other, specify .........


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For given aluminium Flat Rolled Product, which type of product will you use?Ans: a) Sheet

b) Coil

c) Plate

d) Cheuqered Sheete) If any other, specify.

Which of the manufacturing companies are you aware of?Ans: a) Hindalco

b) Balco

c) Nalco

d) Jindal

e) Metenere

f) Virgo

f) Any other, specify

For a particular aluminium flat rolled product, which company do you prefer?Ans: a) Hindalco

b) Balco

c) Nalco

d) Jindal

e) Metenere

f) Virgo

g) Any other, specify

Which of the distributors/suppliers of flat rolled products are you aware of?Ans. a) Jsk Industries Pvt. Ltd.

b) Primacy Systems Pvt. Ltd.

c) Hement J. Parikh

d) Kiran Metals

e) Choudhary Metals

f) Amar Aluminium

g) Any other Suppliers, Specify.........................

What are the major factors that influence your purchase decisions?Ans: a) Quality

b) Pricec) Brand

d) Availability

e) Services

f) Other

Are you satisfied with your exiting supplier of aluminium flat rolled products?Ans: a) Yes

b) No. Specify the reasons..


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If you are told to replace your existing supplier, would you go for JSK Industries Pvt.Ltd.?

Ans: a) Yes

b) No

Are the products of the other companies competent to the products of the JSKIndustries Pvt. Ltd.?

Ans: a) Yes

b) No

Are the prices of aluminium flat rolled products of JSK Industries Pvt. Ltd.Competitive?

Ans: a) Yes

b) No

Which feature do you like about JSK Industries Pvt.Ltd. products?Ans:

Please Specify:

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

Write your recommendations for JSK Industries Pvt. Ltd. Company for the productsyou require presently or about your future specifications.

Ans:

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

***Thank You***

vivek sip report

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