1

BUSINESS FAMILIARISATION REPORT

An internship report submitted in partial fulfilment of

the requirements for the award of

MASTER’S DEGREE

IN

BUSINESS ADMINISTRATION

University of Mysore, Mysore.

Submitted By:

SIDDHARTH ARYA

3rd

SEM MBA,

REG. NO.11MB6685

Under the Guidance of

Prof: Dipti Prohit, MBA

(Faculty co-ordinator)

IZee Business School, Bangalore

Electronic City, Phase 2, Near Infosys Campus, Opp. HCL,

Bangalore-100

IZee Business School, Bangalore

(Affiliated to University of Mysore)

Mysore-570009

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IZee Business School, Bangalore

CERTIFICATE

This is to certify that Siddharth Arya, student of 3rd

semester

MBA has carried out the “Business Familiarization Report At “Celes’tile

Ltd” as per his/ her curriculum activity and under the norms of obtaining

a post Graduation degree in MASTER OF BUSINESS

ADMINISTRATION from University of Mysore during the year 2011-

13.

Place: Bangalore Prof. Sherin V.Bovas

Date: Director

3

IZee Business School, Bangalore

(Affiliated to University of Mysore)

Mysore-570009

Department of Master of Business Administration

CERTIFICATE

This is to certify that Siddharth Arya, student of 3rd

semester MBA has carried out the “Business Familiarization Report At

“Celes’tile Ltd.” as per his/her curriculum activity and under the norms

of obtaining a post Graduation degree in MASTER OF BUSINESS

ADMINISTRATION from University of Mysore during the year 2011-

13.

Place: Bangalore Prof: Dipti Prohit

Date: ( faculty co-ordinator )

4

DECLARATION

We hereby declare that this internship report at “Celes’tile Ltd. ”

was undertaken by me for the partial fulfilment of our M.B.A Degree

under the guidance & supervision of (Prof: Dipti Prohit , MBA)

Dept. of M.B.A, IZee Business School, Bangalore and, we further

declare that I have not submitted this Internship report to any other

university.

Place- Bangalore Siddharth Arya

Date- Reg. No. 11MB6685

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Acknowledgement

On this moment of completing my industry internship program I would

like to thank, Chairman Mr Ilyas Ahmed, Director Prof. Sherin Bovas,

IZee Business School for their support in giving me the opportunity to

pursue the internship programme at Celes’tile Ltd.

I would like to thank my faculty guide Prof: Dipti Prohit for giving me

valuable feedback on regular basis to improve my work.

My sincere thanks goes to my industry guide Head- HR Ms Kavita and

the entire team of Celes’tile, who had helped me in all aspects during

the course of internship.

Siddharth Arya

Reg. No.11MB6685

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Table of Contents

CHAPTER

No.

INDEX

PAGE NO.

1 Industry Profile 11-14

2 Company Profile 15-24

3 Study Of Functional

Departments

Production Management

Human Resource

Management

Total Quality Management

Inventory Management

Operations Management

Marketing Management

25-39

4 Job Profile 40-44

5 SWOT analysis 45-46

6 Summary Of Findings &

Recommendation / Suggestions.

47-51

7 Conclusion 52-53

8 Bibliography 54-55

7

Executive

Summary

8

Executive Summary:

Celes’tile is one of the leading market player in the ceramic tile

industry and having a pan India presence with two manufacturing facilities which are

running 24X7 hours and cater the demand of customers across the county.

Doing a project with Celes’tile is one of great experience which comes with a

good learning phase in my life. The project titled as “Organisation Study of

Celes’tile Ltd” was really the best experience of my life.

The main objective of the project was to discover those markets which were Untapped

and also increase the product reach to the remote areas customers. I have to grab this

opportunity in those markets for Celes’tile. I have to also know that how the products

of Celes’tile are running in the market.

This project helps in determining the main dealers and Retailers, also the study

reflect that the company now at the stage of exponential phase with launch of some

good products. The information helps in maintaining a good customer relationship

with the existing clients and customers.

A proper survey was conducted for this by using two different standard

Questionnaires separate for retailers and institutional customers and it was really

successful or result oriented. In the survey many Retailers as well as Architects or

contractors were touched with a proper questionnaire which was prepared to find out

the relevant information with the subject given.

One of the major aspect of this project is that its conducted just after the Merger of

Celes’tile Ltd and Karishma limited which results in the increase of Financial and

Operational Efficiency for both Leading players in the market. The Acquisition results

in the advantage for the Celes’tile ceramics.

So my personal experience and learning in this project starts with convincing the

retailers and other customers about the correct information about the merger and

company products which helps the company to increase its loyal customer base.

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The overall study in this project concludes that Celes’tile Ceramics having a good

brand image in terms of quality and services in this huge competition. The company

having the same policies for its all dealers and delight them with its regular services

and feedback.

There are some recommendations and suggestions on the basis of my study in this

report to make this growth at higher pace. There are also some graphical and tabular

representation of the data which helps in understanding the market scenario for the

company.

This study also facilitates the marketing and promotional strategies for the company

and also increase its product reach in the overall country.

Preface

The word "Ceramic" has originated from the Greek word, "Keramos", which means

pottery. It also relates to an ancient Sanskrit word whose root meaning is “to burn,”

but it is predominantly used to indicate "burnt stuff". Almost 10,000 years later, with

the establishment of settled communities, tiles were manufactured in Mesopotamia

and India. The first instance of functional pottery vessels being used for storing water

and food is thought to be around 9,000 or 10,000 BC. Clay bricks were also made

around the same time.

The ceramics industry in India came into existence about a century ago and has

matured over time to form an industrial base. From traditional pottery making, the

industry has evolved to find its place in the market for sophisticated insulators,

electronic and electrical items. Over the years, the industry has been modernizing

through new innovations in product profile, quality and design to emerge as a modern,

world-class industry, ready to take on global competition.

Though there are a number of large companies in the ceramics sector, small and

medium enterprises (SMEs) account for more than 50 per cent of the total market in

India, offering a wide range of articles including crockery, art ware, sanitary ware,

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ceramic tiles, refractory and stoneware pipes among others. Most of the players are

grouped together in clusters.

Over the last two decades, the technical ceramics segment has recorded an impressive

growth propelled by the demand for high-alumina ceramics, cuttings tools and

structural ceramics from the industry. Overall, the Indian ceramics industry has

emerged as a major manufacturer and supplier in the global market.

Scope of the Study

Ceramic tile comes under „Building Material Industry‟. Over the years, Indian

Building Material Industry poised to grow at a fast pace of almost 16%/annum due to

boom in real estate and construction industry. Increase in income levels and

availability of a range of financing options for housing is enabling rapid growth in

housing construction.

In India, particularly in Bangalore region, growth rate of building material industry is

at very high and constantly growing. By this project finding, we have been trying to

catch the opportunities and demand of various tile making organizations for their

commercial and residential needs in White field and Electronic City.

Also as marble prices begin to pinch purses in these times of meltdown, tiles are

making deeper inroads into urban homes. And they are getting more designer

makeovers to suit market demands.

Objective Of The Study: Major objective of this report confines with these

facts-

To know the nitty-gritty of Ceramic tile industry as much possible.

Identify the retail network customer base for Celes’tile.

Enhancement of the product reach to the remote areas by doing survey.

Determine the market size and potential of all the organise and unorganized

players.

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INDUSTRY

OVERVIEW

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INTRODUCTION As the change in demand and supply pattern in the market do not allow any company

to fix or work with a set of rules in this speculative era. Each and every company goes

for market research to gather information and collects the important data which is

needed for the formulation of new strategies and also helps in gaining the competitive

advantage.

Market research is any organized effort to gather information about markets or

customers. It is a very important component of business strategy. The term is

commonly interchanged with marketing research; however, expert practitioners may

wish to draw a distinction, in that marketing research is concerned specifically about

marketing processes, while market research is concerned specifically with markets.

Market Research is a key factor to get advantage over competitors. Market research

provides important information to identify and analyse the market need, market size

and competition. It is for discovering what people want, need, or believe. It can also

involve discovering how they act. Once that research is completed, it can be used to

determine how to market your product. Questionnaires and focus group discussion

surveys are some of the instruments for market research. For formulating any new

strategy for marketing or promotion the important things needed is-

Market information

Through Market information one can know the prices of the different

commodities in the market, as well as the supply and demand situation. Information

about the markets can be obtained from different sources, varieties and formats, as

well as the sources and varieties that have to be obtained to make the business work.

Market segmentation

Market segmentation is the division of the market or population into

subgroups with similar motivations. It is widely used for segmenting on geographic

differences, personality differences, demographic differences, techno graphic

differences, use of product differences, psychographic differences and gender

differences. For B2B segmentation firm graphics is commonly used

Market trends

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Market trends are the upward or downward movement of a market, during

a period of time. The market size is more difficult to estimate if one is starting with

something completely new. In this case, you will have to derive the figures from the

number of potential customers, or customer segments

Besides information about the target market, one also needs information about one's

competitors, customers, products, etc. Lastly, you need to measure marketing

effectiveness.

A few techniques are: -

Customer analysis

Choice modelling

Competitor analysis

Risk analysis

Product research

Advertising the research

Marketing mix modelling

This project include all the key parameters needed to study a market and gathering

information by using tools of market research like questionnaire or direct interview.

In this project I visited many retailers who are using Celes’tile products and also

others who are not using its products, I also visit some institutional customer group

which include Architectures, Builders, Contractors etc. Data collection is done by

using two different types of questionnaires. This project was to find out those areas

which were previously not in touch of Celes’tile. To find out those places where

Celes’tile can get start up for Business. To make some more sound presence in the

Ceramic Tiles Market. The major markets covered in this are study are – and some

outskirts of city.

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INDIAN CERAMICS INDUSTRY

Ceramic Tiles

India’s ceramic tile industry emerged in the 1950s. Tiles form the most significant

part of the Indian ceramics industry and consist of floor tiles (46 per cent), vitrified

and porcelain tiles (12 per cent) and wall tiles (42 per cent). The floor tiles segment is

growing faster as compared to wall tiles. Vitrified and porcelain tiles are recent

entrants into the ceramic tile industry and have increased the size of the market

considerably. It is expected that this segment will capture the bulk of the market

gradually, replacing the conventional floor and wall tiles segment. These tiles are light

and have the added advantage of being offered in designer looks as compared to

mosaic tiles, which are heavier and more expensive to transport. Both organized and

unorganized sectors play a key role in the manufacturing of ceramic tiles in India. The

per capita consumption of ceramic tiles in India is very less as compared to the other

countries in the world. It is as low as 0.15 sq.mtr per annum. This low per capita

consumption shows the likely demand that is going to arise in the future in India as

more and more development takes place. Ceramic Tiles are furnishing material apart

from being utility or hygiene products. Despite an overall slowdown of the economy

this sector continues to grow at a healthy 12 percent per annum. Growth of the

unorganized sector accounted for 44 percent of the total Production and the revenue

earnings from the organized sector accounted to over Rs150 crore. India ranks 7th in

terms of production in the world and market share of India have risen from 1.7

percent to 2.7 percent in terms of ceramic tile production.

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Company

&

Product Profile

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2. COMPANY OVERVIEW

2.1 INTRODUCTION

S.K. Marketing Tiles and Tapz had a modest beginning in April 1999, as a tiles

distributor for AP at Padmarao Nagar, Secunderabad. The enterprise was conceived,

established and gradually developed by Mr Vinay Agarwal into a major

establishment, achieving the accomplishment of being the largest tiles showroom in

Andhra Pradesh today. Over the last eleven years, the company has developed and

marketed a wide range of products, all founded on the same basic philosophy of

learning and developing – through concept play.

Offering a plethora of products and services in the sector, today we stand

huge, yet humbled by the trust of a vast clientele who include some of the

topmost businesses and personalities of India.

The emergence of ideas and creative expression that “Good Tile Designs

enrich the beauty of the house” is S K Marketing’s Philosophy. We have

emphasized the importance of high quality throughout our presence, ensuring that

customers return to us over and again.

Tiles design is an ever-changing world and therefore our company’s product

development department works systematically with the evolution of nouvelle themes

and product lines based on research among architects, customers and housing

conditions. Added to this, a combination of systematization, the ability to solve

complex problems, and orienting our structure to increasing demands upon new

designing concepts, has held our approach high in the market. It is for this reason, that

the S K Marketing system is frequently cited

by many leading organizations and publications within the industry.

Quality Policy: - “Our commitment to total customer satisfaction is

by consistently providing innovative and quality products through

team efforts”

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Accomplishments

Received two consecutive awards, as the "Best Tiles

Showroom," from the Indian Institute of Interior Design (IIID), for the last two years

i.e., 2008 - 2009, 2009-2010, has been a feather in our cap, demonstrating a reflection

of our professionalism.

Growth at Glance

1999 - S K Marketing Tiles & Tapz started at Padmarao

Nagar, Secunderabad as a distribution centre with network covering entire Andhra

Pradesh.2004 - Started a retail showroom of 2000 sqft "Celes'tile "2008 – Expanded

the retail showroom to 10000 sqft dealing in premium products imported from Italy,

Spain, Turkey, China, etc.2010 - Started a new 5000 sqft showroom in Bangalore

"Celes'tile "2011 – Moved to 16,000 sqft warehouse on a one acre plot at

Shamshabad, in Hyderabad.2012 - Started a new 12000 sqft showroom in Vijaywada

second capital of Andhra Pradesh. " Celes'tile ".

2.2 Mission and vision of Celes’tile.

Mission statement:

To open new stores at Chennai by 2012, Pune by 2013,

Coimbatore by 2014 and Cochin by 2015.

The Pioneer tile company, focussed to Launch Its IPO By 2015 With the

authorized capital Of Rs 100 crore.

Vision statement:

PROCESS, PRODUCT, PLACE, PEOPLE, PROFIT. We

focus on process (making/creating) through constant emphasis on quality and

engineering, which we will combine with careful attention to our customer's needs so

as always to deliver superior value of product. We honour the places where we

display /use our products by endeavouring to become the first name in industry

ecology, a company that cherishes nature and restore the environment, thereby

maximizing customer satisfaction. CELES'TILE will lead by example and validate by

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results, including profits, leaving the world a better place than when we began, and

we will be restorative through the power of our influence in the world.

2.3 About the product

1. Wall and Floor Tiles-

Ceramic tiles:

Ceramic with a water absorption rate of more than 10% after

firing it at temperatures between 950 - 1150°C is known as earthenware.

Earthenware is easy to work and easy to decorate. Because it is so porous

though, it should only be used indoors to prevent weathering caused by frost.

Earthenware is mainly used as glazed wall tiles.

Porcelain tiles:

Porcelain tiles are ceramic tiles with a water

absorption rate of less than 0.5 percent that are used to cover floors and

walls. They can either be unglazed or glazed. Large-scale production

of porcelain tile is undertaken in many countries, with the major producers

being China, Italy, Spain and Turkey. There are also countries undertaking

small-scale production, such as Australia and strong growth in Brazil.

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Vitrified tiles:

Vitrified tile is a tile is produced using verification and

has very low porosity (and water absorption), making it stain-resistant and

strong.[1]

It is an alternative to marble and granite flooring.

Designer tiles:

Design as per the customer requirement. Like- Kids photo,

God photo or any other design.

Interior Tiles: Natural Stones, Metals

Natural stone is a geographical list of stone used for

decorative purposes in construction and monumental sculpture; currently

or historically produced in various countries. In addition hard stone

carving uses many types of gemstones. Uses for natural stone include

architectural stone (construction, flooring, cladding, counter tops, curbing,

etc.), raw block and monument stone for the funerary trade

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External Elevation Tiles-Concrete And Natural Stones

Concrete is widely used for making architectural

structures, foundations, brick/block walls, pavements, bridges/overpasses,

motorways/roads, runways, parking structures, dams, pools/reservoirs,

pipes, footings for gates, fences and poles and even boats.

2. Expensive Glass Mosaic Tiles:

Mosaic is the art of creating images with an assemblage of

small pieces of coloured glass, stone, or other materials. It may be a technique

of decorative art, an aspect of interior decoration, or of cultural and spiritual

significance as in a cathedral. Small pieces, normally roughly quadratic, of stone or

glass of different colours, known as tesserae, are used to create a pattern or picture

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3. Wall Papers:

Wallpaper is a kind of material used to cover and decorate the

interior walls of homes, offices, and other buildings; it is one aspect of interior

decoration.

4. Wooden Flooring:

Wood flooring is any product manufactured from timber that is

designed for use as flooring, either structural or aesthetic. Wood is a common choice

as a flooring material due to its environmental profile, durability, and

restorability. Bamboo flooring is often considered a form of wood flooring, although

it is made from a grass (bamboo) rather than a timber.

5. Sanitary Ware: The segmentation of the sanitary ware market in this survey is based on the type

of material used. The product groups are:

Plastic sanitary ware: baths, sinks and lavatory products made from

plastic.

Ceramic sanitary ware: baths, sinks and lavatory products made from

porcelain, china and other ceramic material.

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Iron or steel sanitary ware: baths, sinks and other sanitary ware made

from cast iron, stainless steel and other types of iron.

6. Glass Basins:

Glass Basins: is a bowl-shaped plumbing fixture used for

washing hands, for dishwashing or other purposes. Sinks generally have taps (faucets)

that supply hot and cold water and may include a spray feature to be used for faster

rinsing. They also include a drain to remove used water; this drain may itself include a

strainer and/or shut-off device and an overflow-prevention device. Sinks may also

have an integrated soap dispenser.

7. Shower Panels:

A shower (or shower-bath, walk-in shower, steam shower) is a place in

which a person bathes under a spray of water.[1]

A shower uses less water than a bath:

80 litres on average for a shower compared to 150 litres for a bath.

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8. Mirrors:

A mirror is an object that reflects light or sound in a way that

preserves much of its original quality subsequent to its contact with the mirror. Some

mirrors also filter out some wavelengths, while preserving other wavelengths in the

reflection. Mirrors are commonly used for personal grooming or admiring oneself

decoration, and architecture.

9. Designer Kitchen Sinks:

A sink is a bowl-shaped fixture that is used for

washing hands or small objects. In American plumbing parlance, a bathroom

sink is known as a lavatory. Sinks generally have taps (faucets) that supply hot

and cold water and may include a spray feature to be used for faster rinsing.

They also include a drain to remove used water; this drain may itself include a

strainer and/or shut-off device and an overflow-prevention device. Sinks may

also have an integrated soap dispenser

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Celes’tile Group of company and Branches:

1. CELES'TILE

No,2005, 1st floor,100ft Road, Indira Nagar , HAL 2nd Stage, Bangalore - 560038

2. CELES'TILE

Head. Office : 304/305 Beside Hotel Green Bawarchi,Harini Plaza , Kamalapuri

Colony, Jubilee Hills, Hyderabad - 500033

3. CELES'TILE

54-15-5A ,Srinivasa Nagar, Bank Colony, Vijayawada - 520008

4. KARISHMA STUDIO

842, Udyog Vihar, Phase V,Behind Trident Hotel Gurgaon, Haryana.

5. KARISHMA

469, shiv Market, Vazir pur, Ashok Vihar,Delhi-110052.

6. KARISHMA WESTEND: Raja Garden, New Delhi

7. KARISHMA EAST : F 70 Main Road, Jagatpuri. New Delhi.

8. SURAT

Bonzovi mart. LG 1 sarela shopping centre, ghod dod road. Surat, Gujarat.

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FUNCTIONAL

DEPARTMENTS

26

STUDY OF FUNCTIONAL DEPARTMENTS

1. PRODUCTION MANAGEMENT

It may be defined as:

• The performance of the management activities with regards to selecting,

designing, operating, Controlling and updating production system.

• It is the processes of effectively planning, coordinating and controlling the

production, that is the operations of that part of an enterprise, it means to say

that production and operations. Management is responsible for the actual

transformation of raw materials into finished products.

OBJECTIVE OF PRODUCTION MANAGEMENT:

The objective of Production Management is to produce the desired product or

specified product by specified methods so that the optimal utilization of available

resources is met with. Hence the production management is responsible to produce

the desired product, which has marketability at the cheapest price by proper planning,

the manpower, material and processes. Production management must see that it will

deliver right goods of right quantity at right place and at right price.

Function of Production Management Department:

The functions of Production Management depend upon the size

of the firm. In small firms the production Manager may have to look after production

planning and control along with Personnel,6 Production and Operations Management

Marketing, Finance and Purchase functions. In medium sized firms, there may be

separate managers for Personnel, marketing and Finance functions. But the production

planning and control and Purchase and stores may be under the control of Production

management department. In large sized firms the activities of Production

Management is confined to the management of production activities only.

They are:

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Materials: The selection of materials for the product. Production manager

must have sound Knowledge of materials and their properties, so that he can

select appropriate materials for his product. Research on materials is necessary

to find alternatives to satisfy the changing needs of the design in the product

and availability of material resumes.

Methods: Finding the best method for the process, to search for the

methods to suit the available resources, identifying the sequence of process are

some of the activities of Production Management.

Machines and Equipment: Selection of suitable machinery for the

process desired, designing the maintenance policy and design of layout of

machines are taken care of by the Production

Management department:

Estimating: To fix up the Production targets and delivery dates and to keep

the production costs at minimum, production management department does a

thorough estimation of Production times and production costs. In competitive

situation this will help the management to decide what should be done in

arresting the costs at desired level.

Loading and Scheduling: The Production Management department has

to draw the time table for various production activities, specifying when to

start and when to finish the process required. It also has to draw the timings of

materials movement and plan the activities of manpower. The scheduling is to

be done keeping in mind the loads on hand and capacities of facilities

available.

Routing: This is the most important function of Production Management

department. The Routing consists of fixing the flow lines for various raw

materials, components etc., from the stores to the packing of finished product,

so that all concerned knows what exactly is happening on the shop floor.

Despatching: The Production Management department has to prepare

various documents such as Job Cards, Route sheets, Move Cards, Inspection

Cards for each and every component of the product. These are prepared in a

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set of five copies. These documents are to be released from Production

Management department to give green signal for starting the production. The

activities of the shop floor will follow the instructions given in these

documents. Activity of releasing the document is known as dispatching.

Expediting or Follow up: Once the documents are dispatched, the

management wants to know whether the activities are being carried out as per

the plans or not. Expediting engineers go round the production floor along

with the plans, compare the actual with the plan and feedback the progress of

the work to the management. This will help the management to evaluate the

plans.

Inspection: Here inspection is generally concerned with the inspection

activities during production, but a separate quality control department does the

quality inspection, which is not under the control of Production Management.

This is true because, if the quality inspection is given to production

Management, then there is a chance of qualifying the defective products also.

For example Teaching and examining of students is given to the same person,

then there is a possibility of passing Production and Operations Management 7

all the students in the first grade.

Evaluation: The Production department must evaluate itself and its

contribution in fulfilling the corporate objectives and the departmental

objectives. This is necessary for setting up the standards for future. Whatever

may be the size of the firm; Production management department alone must do

Routing, Scheduling, Loading, Dispatching and expediting.

Combination Layout:

A combination of process and product layouts combines the

advantages of both types of layouts. A combination layout is possible where an item

is being made in different types and sizes. Here machinery is arranged in a process

layout but the process grouping is then arranged in a sequence to manufacture various

types and sizes of products. It is to be noted that the sequence of operations remains

same with the variety of products and size.

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3. HRM:

The Human Resources (HR) is a process of examining policies, procedures,

documentation, systems, and practices with respect to an organization’s HR functions.

The purpose of the audit is to reveal the strengths and weaknesses in the human

resources system, and any issues needing resolution. It works best when the focus is

on analysing and improving the HR function in the organization. The audit itself is a

diagnostic tool, not a prescriptive instrument. It will help you identify what you are

missing or need to improve, but it can’t tell you what you need to do to address these

issues. It is most useful when an organization is ready to act on the findings, and to

evolve its HR function to a level where its full potential to support the organization’s

mission and objectives can be realized.

HHRR PPoolliicciieess::

Celes’tile” treats all its employees with honesty and respect, identifying each

employee as an individual.

It is our belief that an open and honest relationship among employees and

managers is the most productive and efficient manner in which to handle

professional relations.

We also pride ourselves in continuing to employ a professional atmosphere in

which we are responsive of our employees need and concerns.

Compensation & Benefit:

Salaries is normally made on the 05th

of each calendar month. Salaries

will be auto-paid into the designated bank accounts of employees

through HDFC bank.

Salary comprises Basic Pay, Conveyance, HRA & Special Allowance.

Incentives applicable to Marketing Staff based on Performance.

Leave Applicable after Probation of 6 months:

Casual Leave – 12

Sick Leave – 12

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The employee shall fill up a leave application form authorized by his/her immediate

supervisor

& Department Head five working days before proceeding on Casual Leave.

In case employee is on sick leave, medical certificate need to be submitted on

resuming office.

Training:

The Company believes individual talents of its staff and the

development of a strong sense of teamwork are core factors for business

success. An analysis of each individual’s training and development needs will

take place each year following the performance review and an individual

competency development plan will be developed subject to management’s

approval.

External Seminar & Courses:

Employees may be nominated to attend public seminars to complement the in-

house corporate training. These kinds of training are useful for upgrading the

skills or knowledge required for specific job functions

Transfer & Mobility:

It is the philosophy of the Group that employees may progress in their careers

through transfer or mobility across departments, companies, business divisions

or geographic locations.

Performance Appraisal:

Performance Review:

The performance review process is conducted on a

quarterly basis. Employees will be assessed based on their respective Goal

Setting submitted for the year. Immediate supervisors will complete a

performance evaluation form for employees.

The amount of the increment is determined by the following factors:

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individual performance;

industry norm;

business performance of the Company; and

any other relevant factors, including but not limited to the need to retain

and motivate employees and reasonable forecast of the business.

Required Paper

Personal Records:

- Resume.

- 2 References.

- Passing Certificate (10th

/ 12th

/ Graduation / Post Graduation).

- Last 3 months Salary Slip.

- Experience Letter.

- Relieving Letter.

- 2 Photographs.

- Address & ID Proof.

All the documents shall be submitted within 3 days of joining.

Office Rules, Conduct and Discipline:

Dress Code:

Employee is to be dressed appropriately for the type of

business. Please refer to the do's and don’ts in the employees Handbook which

will be provided to you soon.

Office Cleanliness:

The Company attaches considerable importance to the

cleanliness of the office. Employees should keep their surroundings in best possible

housekeeping and see that at the end of the working day, their workstations are left

clean and tidy.

E- Mails:

No business mails should be sent through personal e-mail I.D’s.

Attendance:

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Employees must register on biometric software on a day to day basis each

time you walk in and out of the office.

Office Hours:

The Company’s office hours All Employees are expected to be regular and

punctual in attendance. If an Employee is unable to report for work on time for

any reason, he/she shall notify Human Resource previous day or one hour prior to

reporting to duty, whichever is earlier.

▪ Lunch Hours:

Employees are allowed a half hour lunch break. Lunch breaks are generally

taken between the hours of 1.00pm and 2.00pm.

Health and Safety

First Aid

A first-aid kit is available in the pantry. Medication from the first-aid kit is

supplied for the convenience of employees and shall be applied by employees in

accordance with their own health condition and medication requirement at their own

risk. The Company accepts no responsibility or liability arising from the use of the

first-aid kit.

▪ Smoking

Smoking inside the office premises is strictly prohibited. The company aims to

create a healthy, comfortable, and productive work environment. Therefore, the

company is very careful to protect employees from second hand smoke.

It is the responsibility of all to support and initiate this effort at work.

3. INVENTORY CONTROL OR MANAGEMENT:

Meaning of Inventory:

Inventory generally refers to the materials in stock. It is also called the idle

resource of an enterprise. Inventories represent those items which are either stocked

for sale or they are in the process of manufacturing or they are in the form of

materials, which are yet to be utilised.

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The interval between receiving the purchased parts and transforming them into

final products varies from industries to industries depending upon the cycle time of

manufacture

Reasons for Keeping Inventories:

1. To stabilise production: The demand for an item fluctuates because of the

number of factors, e.g., seasonality, production schedule etc. The inventories (raw

materials and components) should be made available to the production as per the

demand failing which results in stock out and the production stoppage takes place for

want of materials.

2. To take advantage of price discounts: Usually the manufacturers offer

discount for bulk buying and to gain this price advantage the materials are bought in

bulk even though it is not required immediately. Thus, inventory is maintained to gain

economy in purchasing.

3. To meet the demand during the replenishment period: The lead time

for procurement of materials depends upon many factors like location of the source,

demand supply condition, etc. So inventory is maintained to meet the demand during

the procurement (replenishment).

4. To prevent loss of orders (sales): In this competitive scenario, one has to

meet the delivery schedules at 100 per cent service level, means they cannot afford to

miss the delivery schedule which may result in loss of sales. To avoid the

organizations have to maintain inventory.

5. To keep pace with changing market conditions: The organizations have

to anticipate the changing market sentiments and they have to stock materials in

anticipation of non-availability of materials or sudden increase in prices.

Meaning of Inventory Control:

Inventory control is a planned approach of determining what to order, when to

order and how much to order and how much to stock so that costs associated with

buying and storing are optimal without interrupting production and sales. Inventory

control basically deals with two problems: (i) When should an order be placed?

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(Order level), and (ii) How much should be ordered? (Order quantity).These questions

are answered by the use of inventory models.

Objectives of Inventory Control

1. To ensure adequate supply of products to customer and avoid shortages as far as

possible.

2. Efficient purchasing, storing, consumption and accounting for materials is an

important objective.

3. To maintain timely record of inventories of all the items and to maintain the stock

within the desired limits.

4. To provide a reserve stock for variations in lead times of delivery of materials.

5. To provide a scientific base for both short-term and long-term planning of

materials.

Benefits of Inventory Control

It is an established fact that through the practice of scientific inventory control,

following are the benefits of inventory control:

1. Improvement in customer’s relationship because of the timely delivery of goods

and service.

2. Smooth and uninterrupted production and, hence, no stock out.

3. Economy in purchasing.

4. Eliminates the possibility of duplicate ordering.

Techniques of Inventory Control

In any organization, depending on the type of business, inventory is

maintained. When the number of items in inventory is large and then large amount of

money is needed to create such inventory, it becomes the concern of the management

to have a proper control over its ordering, procurement, maintenance and

consumption. The control can be for order quality and order frequency.

The different techniques of inventory control are:

ABC analysis: In this analysis, the classification of existing inventory is based on

annual consumption and the annual value of the items. Hence we obtain the quantity

of inventory item consumed during the year and multiply it by unit cost to obtain

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annual usage cost. The items are then arranged in the descending order of such annual

usage cost. The analysis is carried out by drawing a graph based on the cumulative

number of items and cumulative usage of consumption cost. Classification is done as

follows:

Once ABC classification has been achieved, the policy control can be formulated as

follows:

A-Item: Very tight control, the items being of high value. The control need be

exercised at higher level of authority.

B-Item: Moderate control, the items being of moderate value. The control need be

exercised at middle level of authority.

C-Item: The items being of low value, the control can be exercised at gross root

level of authority, i.e., by respective user department managers.

HML analysis: In this analysis, the classification of existing inventory is based on

unit price of the items. They are classified as high price, medium price and low cost

items.

VED analysis: In this analysis, the classification of existing inventory is based on

criticality of the items. They are classified as vital, essential and desirable items. It is

mainly used in spare parts inventory.

FSN analysis: In this analysis, the classification of existing inventory is based

consumption of the items. They are classified as fast moving, slow moving and non-

moving items.

SDE analysis: In this analysis, the classification of existing inventory is based on

the items.

GOLF analysis: In this analysis, the classification of existing inventory is based

sources of the items. They are classified as Government supply, ordinarily available,

local availability and foreign source of supply items.

SOS analysis: In this analysis, the classification of existing inventory is based

nature of supply of items. They are classified as seasonal and off-seasonal items.

Just in time production (JIT):

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Just in time is a ‘pull’ system of production, so actual orders provide a signal

for when a product should be manufactured. Demand-pull enables a firm to produce

only what is required, in the correct quantity and at the correct time.

This means that stock levels of raw materials, components, work in progress

and finished goods can be kept to a minimum. This requires a carefully planned

scheduling and flow of resources through the production process. Modern

manufacturing firms use sophisticated production scheduling software to plan

production for each period of time, which includes ordering the correct stock.

Information is exchanged with suppliers and customers through EDI (Electronic Data

Interchange) to help ensure that every detail is correct.

Supplies are delivered right to the production line only when they are needed.

For example, a car manufacturing plant might receive exactly the right number and

type of tyres for one day’s production, and the supplier would be expected to deliver

them to the correct loading bay on the production line within a very narrow time slot.

Advantages of JIT:

Lower stock holding means a reduction in storage space which saves rent and

insurance costs

As stock is only obtained when it is needed, less working capital is tied up in

stock

There is less likelihood of stock perishing, becoming obsolete or out of date

Less time is spent on checking and re-working the product of others as the

emphasis is on getting the work right first time.

Disadvantages of JIT:

There is little room for mistakes as minimal stock is kept for re-working faulty

product

Production is very reliant on suppliers and if stock is not delivered on time, the

whole production schedule can be delayed

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There is no spare finished product available to meet unexpected orders,

because all product is made to meet actual orders – however, JIT is a very

responsive method of production.

4. Marketing Management:

Marketing (Management) is the process of planning and executing the conception,

pricing, promotion, and distribution of ideas, goods, and services to create exchanges

that satisfy individual and organizational goals.

Within marketing planning, marketers must make decisions on target markets, market

positioning, product development, pricing, distribution channels, physical distribution,

communication, and promotion.

Marketing work in the customer market is formally carried out by sales managers,

salespeople, advertising and promotion manages, marketing researchers, customer

service managers, product and brand managers, market and industry managers, and

the marketing vice-president.

1) Today’s marketing is all about creating customer value and building profitable

relationships. It starts with understanding your customer needs and wants, deciding

which target markets that you can best serve, and developing a compelling value

proposition by which to attract, keep, and grow your targeted customers.

2) Marketing is about identifying and meeting human and social needs. One of the

shortest good definitions of marketing is “meeting needs profitably.”

3) Marketing management takes place when at least one party to a potential exchange

thinks about the means of achieving desired responses from other parties.

Thus we see marketing management as the art and science of choosing target markets

and getting, keeping, and growing customers through creating, delivering, and

communicating superior customer value.

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4) In the marketing process, companies work to understand consumers, create

customer value, and build strong customer relationships.

The steps are:

1. Understand the marketplace and customer needs and wants.

2. Design a customer-driven marketing strategy.

3. Construct a marketing program that delivers superior value.

4. Build profitable relationships and create customer delight.

5. Capture value from customers to create profits and customer quality.

In the final step, companies reap the rewards of capturing

value from consumers in the form of sales, profits, and long-term customer equity.

Exchange is the act of obtaining a desired object from someone by offering something

in return.

6. Marketing management is defined as the art and science of choosing target

markets and building profitable relationships with them.

The marketing manager must answer two important questions:

What customers will we serve (what’s our target market)?

How can we serve these customers best (what’s our value proposition)?

8. The value proposition is the set of benefits or values a company promises to

deliver to customers to satisfy their needs.

9. Under the marketing concept, customer focus and value are the paths to sales and

profits.

10. The marketing mix is the set of tools (four Ps) the firm uses to implement its

marketing strategy. It includes product, price, promotion, and place.

11. Customer Relationship Management: CRM

The overall process of building and maintaining profitable

customer relationships by delivering superior customer value and satisfaction

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12 The key to building lasting customer relationships is to create superior customer

value and satisfaction.

13. Customer satisfaction depends on the product’s perceived performance relative

to a buyer’s expectations.

14. Basic Relationships are often used by a company with many low-margin

customers. For example, Procter & Gamble does not phone or call on all of its Tide

consumers to get to know them personally. Instead, P&G creates relationships

through brand-building advertising, sales promotions, and its Web site.

15. Many companies now target fewer, more profitable customers using selective

relationship management to relate more deeply and interactively to carefully selected

customers through blogs, Websites, online communities and social networks

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JOB

PROFILE

41

Job Profile: Relationship Manager.

1. Research on target market segment:

Marketing segmentation is about using market research

to know all you can about your customers. The purpose is not just to sell products and

services that you have, but to also inform research and development. Customers

generally appreciate marketing that is directed to them, designed for them, and that

efficiently presents the information they need to make purchase decisions. Learn some

techniques for conducting market segmentation. The more that is known about a

target market, the easier it becomes to differentiate a product. When a market

researcher knows what is valued by a consumer group, she knows how to market the

product or how to style the advertising to appeal to that group.

Market Segmentation

Market segmentation can be established by exploring and analyzing many different

characteristics about potential consumers. It is helpful to think of market segmentation

utilizing several tiers of categorical characteristics.

Tier One includes the most common attribute groups: Demographic, socioeconomic,

and product usage.

Demographic -- This category includes attributes related age, city or

region of residence, gender, race and ethnicity, and composition of

household. While these are all important attributes, the relationship

between these characteristics and consumer behaviour may be quite

small.

Socioeconomic -- This category includes attributes related to household

income, level of educational attainment, occupation, neighbourhood of

residence, and membership in various associations. These characteristics

tend to be more refined in terms of relationship to consumer behaviour,

particularly as a reflection of lifestyle, brand preference, array of services

used, and price sensitivity.

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Brand affinity / Product usage -- Consumers who exhibit brand affinity

or actual product usage are segmented on the basis of their behaviour.

That this is true, makes brand affinity and product usage one of the

strongest categories to use for developing market segments.

Tier Two are really just extensions of the Tier One attribute group. Tier Two

attributes are derived at by drilling deeper into Tier One attributes.

Psychographics -- This category includes attributes related to specific

lifestyles, hobbies, personality, attitudes, opinion, and even voting behaviour.

The relationship between these psychographic characteristics and consumer

behaviour is fairly strong and can provide an effective avenue of

communication with potential consumers.

Generation -- This category includes attributes related to a cohort group.

Segmentation by generation addresses similarities in people who are born in

the same time period. These generation cohorts tend to exhibit an orientation

to life that has been (or is) strongly influenced by the economical,

technological/scientific, political, educational, and political experiences they

have shared.

Geography -- This category includes attributes that are related to the

geographical area in which consumers reside and work. Consumers in this

category may be similar along a number of important dimensions, such

as political orientation, religious affiliation, and options for transportation and

shopping. These consumers may share an affinity for regional cooking or

show strong preferences for certain kinds of apparel.

Benefits sought -- This category of attributes is related to the benefits that

consumers seek when they shop for products and services. The benefits that

consumers seek can vary widely depending on what they are in the market to

buy. Brand loyalty, brand affinity, and consumer brand attitude cannot be

measured collectively.

2. Product knowledge and training. Effective product knowledge

training prepares employees, customers and partners to describe product

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features and benefits. Depending on the target audience, participants learn to

sell to potential buyers, troubleshoot problems with existing customers or

provide feedback to development teams on usage and satisfaction. Companies

typically maintain a website to allow participants to register for training

courses, sign up for newsletters, download reference materials and participate

in communities. By offering different formats, such as lectures, seminars,

workshops, webinars and self-paced alternatives, companies provide product

knowledge training suited to the learning style of every busy professional

3. Tools to understand market strategy for competition:-

It is appropriate in identifying competitive forces, which

affect business in any given environment. These five forces are the threat of

companies from same segment, threat of new entrants in the segment, threat from

substitute products, threat from the increase in consumer’s bargaining power and

threat from supplier’s bargaining power. If in the same segment there are too many

players, if the segment is reaching saturation, if no further scope of expansion than to

continue operation is difficult for the company.

Many companies were caught napping with respect to competition coming from the

internet. Companies after going through the process of identifying competition, also

need to do in-depth analyze in terms of nature, strategy, strength, weakness and

operation pattern. Companies following similar strategy need to group existing player

in a matrix of product offering.

To deal with competition companies need to design an intelligence system.

Companies need to identify parameters which will help in analyzing the

competition. The information from system is helpful in designing marketing

strategies. Marketing strategy evolve depending on company position in the market.

Market leaders, market challenger, market follower and niche players are four types

of position strategy companies follow.

Dealing with competition is not an easy task and it requires dedicated resources of

manpower, system and budget. Any lapse from company would result in decrease of

market share and profit.

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4. Field survey to analyze competitors:

Get information about the competitors from the other TILE vendors in

the neighboring places

Analyze the rates and preparation of perfect proposal with minimized

cost for the the client friendly and increase the sales for the company

Lead generation also been done in this process which helped me

understand the marketing field.

5. Visited and delivered presentations to Architects, Client,

Retailer & builder about Company and product.

Archtiects Name: THOMAS ASSOCIATES

Sandip Khosla (Khosla Association)

Arun Kumar (IMBAL CONSTRUCTION)

RSP Design Consultant (India) Pvt Ltd

Builder: SHRI VANDANA BUILD Ltd.(HSR Layout)

EAPL GROUP

SLV Builder& Developers

Concord Group (Mr. Delvi)

PROSPECT GROUP (K. Sarath Babu)

Patel REALITY SMONDOVILLE NEOTOWN

(Ashok Kumar)

The RITZ – CARLTON Hotel

6. Observation and Analysis Client requirements.

7. Client follow- ups.

Through Phone call

Through Mail

Through Direct meeting

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SWOT

ANALYSIS

46

Strengths:

World class quality Ceramic tiles.

After merger with Karisma get the operational strength and Pan India comp.

Having a decent brand image.

Well diversified portfolio of products in floor tiles. -Exclusive floor tiles in

market.

Weaknesses

Lack of Marketing and Promotional tools.

No proper feedback and communication channel for the existing customer.

Lack of designs and varieties in wall tiles.

Not inclined towards rural markets, they are next big markets due to high rate

of urbanization.

Weak institutional customer network.

Gap in demand and supply

Opportunities

Having a quality product is great opportunity for the company to absorb

institutional customer base.

Growth in tile industry

Revival of production of ceramic tiles

More showrooms for wide reach

Threats

Small and medium size industries mushrooming in various parts of the

Country

Dumping of cheaper tiles from foreign Companies

frequent increase in cost of power and fuel.

continuous falling in prices due to cutthroat competition

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FINDINGS

&

RECOMMENDATION

48

On the basis of research conducted by using two different questionnaire, it helps in

understanding the need of market and also the problem occur in distribution of tiles in

the market. Overall study reflects that Celes’tile having a good marketing tactics and

Brand image, but due to high competition in urban market its necessary to spread its

product reach to rural market where a huge potential is lies.

1. LACK OF PROMOTIONAL PROCEDURES-

After the survey of towns in the vicinity of Rajasthan,

most of the dealer responded that no representative from Celes’tile have come here till

now, although they were aware of many competitive brands like kajaria, somany,

orient etc. some dealers were partially aware that Celes’tile is a high quality brand but

they didn’t have the complete and proper information pertaining to company’s

product range. So the company should start various promotional schemes for

enhancing the sale of its products.

Celes’tile can adopt following tools:

Online marketing using social networking sites need to create just a page of

Celes’tile ceramics and all the employee and retailers can join that page.

Recruit a team of trained salesman specially for distant areas and towns

Print media advertisement during the high growth of industry.

Attractive and informative catalogue of all the products.

Any surprise gift or schemes of dealers after achieving certain target.

2.Merger of Celes’tile and Karisma ceramic limited:

After the merger of Karisma and Celes’tile, there is

lots of misconception in the mind of retailers and other customers about the

manufacturing and operational activity of Celes’tile. My focus was to give the correct

information about the Merger and convince them about the strength of Both

companies in all over India. Need to convince all dealers and retailers about the

correct information about Celes’tile and Karisma merger and what are the benefits of

this merger also try to convey the Orient dealers that they should also sell products of

Celes’tile with same interest.

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4. PACKAGING PROCEDURES- `

Celes’tile is having different packaging system or different box sizes

which may be an uniqueness for company but after the response of dealers that other

brands are giving packing of 10 sq. feet and where Celes’tile gives it in 14 sq. feet or

15 sq. feet. It’s difficult to convince a customer about the large packaging and its

related price. Customer refuse to take it just due to print of high price. Also there is

risk of brokerage in the large boxes. Most dealers feel that packaging should be of 10

feet instead of 15 feet. The reason behind this is only the positioning or the perception

in the minds of the customer for low price. For example- competitor is giving one box

of tile at Rs.170 having 10 feet packaging and same box of tile offered by us is at

Rs.210 per box having 15 feet packaging. Rates are same but customers hesitate to

pay for 15 feet packaging.

4. The company’s strength is its quality policy. So Celes’tile has to maintain it and try

to improve it constantly. As from the last many years Celes’tile is selling very few

designs in wall tiles, market or existing dealers demand more varieties in Wall tiles.

Celes’tile wall tiles prices are quiet close to floor tiles. So there should be some lesser

prices of wall tiles. As every dealer is selling local tiles of Morvi so Celes’tile try to

give some economic prices of floor tiles also.

Celes’tile has to increase its product range and designs. No company can sustain for a

long time without increasing its range and designs. So Celes’tile try to do good

research on designs.

Recommendations for Marketing and Promotion tactics of

Celes’tile:

Celes’tile Should adopt the widest distribution network model to deliver

products to the end user in quickest and most effective way. It would also

accelerate the sales. It may include company owned showrooms, franchises,

multi-product dealers and sub-dealers.

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Distribution network should be clearly segregated towards specific product

segments.

May introduce three dimensional catalogue visual experiences to its customers

and also give customer a chance to design product in their own way of choice

(customized design specification).

Celes’tile should Set up exclusive showrooms for special products instead of

keeping with the regular range.

As example, the upcoming product FOREVER-a product in NON-SKID tiles

segment should have an exclusive place to showcase. It would add to the

exclusive ambience of the product.

More introduction of matching wall and floor tiles.

To grow its institutional business, the Celes’tile should organize more

interactions with architects, developers and government agencies at its dealer

outlets. This would serve a dual purpose: it would enable the company to

acquire an insight into evolving preferences of some of the most prominent

and trend- influencing architects; on the other hand, it helped the company

cater to their evolving preferences

Risks and Concerns:

Some of the key risks affecting the Company are explained below:

1. The instability in the fuel prices due to continuous increase in energy prices in the

international market has significantly put pressure on margins.

2. After the Merger of Acquisition by the Orient it’s important for the company to

retain its market share and more emphasis on promotion .there is risk of loss of

market share due to wrong information in the market.

3. The market is getting saturated day by day due to large number of players in

ceramic industry, there is need of brand loyalty by customers therefore company need

a customer relationship management approach to retain the existing customers.

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4. To retain skilled professionals is also a cause for concern. However, best HR

practices are in place to retain the talent and reduce the attrition.

5. Due to high inflation and tightening of credit by RBI, finance costs may be

adversely affected in the coming year.

SUGGESTION:

1 .More exclusive outlet should be opened.

2. Price should be less.

3. The Celes’tile outlet should be made more attractive.

4. Discounts and offers should be given to regular Celes’tile customer.

5. Increase more promotional activities for Celes’tile products.

6. It should have more parking facility at Celes’tile outlet.

7. It should have brand ambassador for Celes’tile products.

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CONCLUSION

53

Conclusion A study was conducted on the topic “A study on consumer

behaviour towards Celes’tile among customers in Bangalore city”

in Bangalore city. Questionnaire is the tool used for collecting

primary data with sample size of 70. Convenience sampling

techniques was used to collect data. On the basis of the study

conducted, it is concluded that the most preferred tiles of Celes’tile

is more design and due to quality. The pricing followed by

Celes’tile is expensive when compared to the other competitors in

the market.

Thus the customer are satisfied with the usage of Celes’tile and

would recommend friends and relatives to purchase Raymond

product in future.

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BIBLIOGRAPHY

55

Bibliography

Company websites http://www.celestile.com/

http.wikipedia.co.in

google.com

Books referred:

Marketing Management: Philip Kotler