A PROJECT REPORT

ON

CHANNEL OF DISTRIBUTION

BY

AHMED ALTAF BACHAV

BBA (2010-2011)

IN PARTIAL FULFILLMENT OF
Bachelor of Business Administration

1
 UNIVERSITY OF PUNE

SMT. KASHIBAI NAVALE COLLEGE OF COMMERCE

LETTERHEAD WITH CONTENTS AS UNDER.

CERTIFICATE
This is to certify that Mr.______________________________________

Of S.K.N.C.C college has successfully completed the project work

title______________________________________ in partial fulfillment of
requirement for the award of Bachelor of Business Administration
prescribed by the University of Pune.

This project is the record of authentic work carried out during the academic
year 2010-2011.

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Subject Teacher Principal
DECLERATION

I, Mr.________________________________ hereby declare that this

project is the record of authentic work carried out by me during the
academic year 2010-2011 and has not been submitted to any other
university or institute towards the award of any degree.

3
 Signature of student

AKNOWLAGEDMENT

Apart from the efforts of me, the success of any project depends largely on the encouragement
and guidelines of many others. I take this opportunity to express my gratitude to the people
who have been instrumental in the successful completion of this project.

I would like to show my greatest appreciation to Prof. Dr. Dharmadhikari N. S. and Mrs.
Bokil Aparna. I can’t say thank you enough for their tremendous support and help. I feel
motivated and encouraged every time I attend their meeting. Without their encouragement and
guidance this project would not have materialized.

The guidance and support received from all the members of kerakool contributed and who are
contributing to this project, was vital for the success of the project. I am grateful for their
constant support and help.

Ahmed Altaf Bachav

4
 EXECLUIVE SUMMERY

I started my project on 2nd of January by understanding the various types of

products and its specification and know how to do site mapping and what is
needed to do product promotion at Mangalmurti complex,305-
B,117/A,Next to Big Bazar,sinhgad Rd,pune, Corporate office of Kerakoll
India Pvt. Ltd. There I met to Mr.sandeep and ask him to give detail
information about the execution of the work.he has the sample outfits of
the whole products by mens of which he gave me the detail
information.four staff are working over there one is to look after the
computer center,and two are involved in the process of generating sales
and one Mr.sandeep himself,the regional sales manager.

The site mapping team is to do the site map, means to find out the various
running construction, from there the site mapping team collect information
like site name, contractor name, owner name, and architect name even the
stage of the site. He then provides the information to the architect team to
do further proceedings to generate the sales. The architect team then goes
to architect after having the appointment and tell them about the various
products of kerakoll. In the mean while the site mapping team also done
some product promotion at the place of running sites and by telling about
the prodict to the contractors and site engineers. Apart from this the retail

5
team is doing its further effort to go for the retail penetration of the
kerakoll product.

First of all I prepard the questionnaire to work assigned to me. As per

research work ,My respondents are infrastructureal product shop keeper,
arichitect or project manager. Initially I was assigned to collect the
information about the running project in the Pune. I was also asked to
collect the information about the held up projects and the reasons for their
helding up. On the first day i started with the area of swargate and market
yard. There I come to know about the coustomer acquction.

CONTENTS

CHAPTER 1- INTRODUCTION

Introduction to the company

Company overview

Mission vision

value

worldwide

Kerakoll product.

Scope of study

Need of study

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 Literature Review.

CHAPTER 2-SUBJECT TOPIC

Marketing strategies

Segmentation, Targeting and Positioning

Kerakoll Marketing Mix (5 P’s)

Distribution Strategies.

CHAPTER 3-DESCRIPTIVE WORK OF SUBTOPICS OF THE STUDY.

Descriptive Work of subtopic

My Own Contribution

CHAPTER 4- RESEARCH METHODOLOGY

Objective of the study

Type of Research

Method Of Data Collection

CHAPTER 5- DATA ANALYSIS AND INTERPRETATION

Data analysis

Data Interpretation

CHAPTER 6- CONCLUSION AND LIMITATIONS

Conclusion

limitations

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8
Chapter 1

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 Introduction
Kerakoll, an international leader in applied chemistry for bulding industry,
was found in 1968 in sassuolo, Italy in the heart of worldwide ceramic
industry. At just 29 years of old, Romano sghedoni founded kerakoll in
1968 in sassuolo,Modena. Today the company is world leader in product
and service for sustainable architecture, historical restoration and
interior design.The first single component adhesives for ceramic design
and product in his garage, were the result of his passion for construction
and chemistry, combine with a huge love of engineering.

His insight and amazing determination drove him in a continual pursuit

of innovation, inventing one new product after another, each one with
uniue technology and ease of professional application to make laying
homogenous tiles and natural stone easy, whatever the circumstances.

The constant growth that followed enable the company to extend its
operation into the restoration sector, where it turn it attention to
tackling waterproofing problems, the deterioration of concrete mistakenly
considered indestructible, and the restoration of building plagued by damp.

Sghedoni also applied his innovative approach to building a motivated

team with a shared mission, vivion and values. The strong corporate
culture that resulted led to the foundation of kerakoll global service in
1990, establishing kerakoll as leading name in the consultancy and end-to-
end technical support field.

His children Fabio, Gian Luca and Emilia assure the business
continues to be guided by the same sghedoni name and dedication ,
together they have championed the internationalization process, building

10
an international team, and adopting an increasingly global approach and
innovative way of adding value to brand .

In September 2000 and April 2006,kerakoll increased its respective

stack in Slc Rinaldi and Rankover , both leading European
manufactures of adhesives and varnishes for the hardwood floor , and
decorative coating for the construction industry.

Kerakoll employee more than 1,100 people with an average age of 35

throughout its 15 branches in Europe, USA, Asia and Australia,it export
almost 40% of its product to more than 100 different countries and
supplies 20,000 builders merchant and 5,000 wood flooring centers
worldwide, serving the nigh on 2,000,000 building professionals who
choose kerakoll product every year.

From the outset, the pillar of kerakoll vivion has always been to make the
difference through innovation. This belie led first to launch of Biocalce
and Building wellness in April 2005, i.e. the new take on sustainable
building in which the focus is to safeguard health and improve the uality of
life, and kerakoll Design in February2007, the new eco-friendly solid
surface in cementoresian that are particular favorite with architects, design
engineers and interior designers.

Product, service and specific knoe-how formed the basic of kerakoll’s rise to
become The Innovative Group , the only company to provide a global
offering for contemporary architecture, building wellness, Histrocial
restoration and interio design.

Over the year, the group has achieved acclaim for its rapid and steady
growth,proof of which can be seen in revenue which have risen from about

11
11 million Euro in 1990 to 285 Euro in 2006.Kerakoll has 910 employees,
16 operating companies,9 manufacturing plants in Italy and abroad,3
research center , 1 training institute and 1 technical center.

With the gradual internationalization of the business, 35% of group revenue

are now generated throughout foreign sales, thanks to company presence
in 14 countries:

• Manufacturing plant in spain, Poland and Greece.

• Sales network in united kingdom , france, Croatia, Portugal, Sweden,
singapor, USA, India and Hungary based on local partnership or
commercial companies.

Innovation and research have always been the driving factors behind
kerakoll expansion. Investment in these area account for about 5.5% of
annual turnover and translate into continuous product improvement in line
with market reuirment, as well as the development of new product/services
which have broken new ground in buildings practices.

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Kerakoll product are used in most important construction sites in Italy and
around the world. To name but few of architectural project signed by
internationally acclaimed architects who chose kerakoll as their
technological partner:

• “Citta della Musica By Renzo Piano In Rome,

• European court of Human Right by Richard Rogers in Strasbourg,
• World Trade Center by WJ Atkins & Partners in Bahrain,
• Queen sofia Palace of Arts by Santiago calatrava in Valencia.

Company overview

Kerakoll India private limited, 100% subsidiary company of kerakoll

S.P.A.- Italy,

Kerakoll being 40 years old company has presence in india to cater

the need of industry growing professional in construction field. Kerakoll
having plant,offices and coustomer worldwide is one of the world’s biggest
chemical companies for the building industry.kerakoll International
currently doing turnover more then 400 million US$ with major
international division manufacturing proffisional laying system for tiles and
stone,wood & parute and also specialised in other building chemical
products and solution for the restoration of historical building. Currently

13
kerakoll operating 9 plants worldwide with production over 5000 tones a
day, 2 R & D center & 1 technical center along with more than 900
employees around the globe. Our company can considerd international in
true sens of the world. We manufacture more than 500 ‘specialty’ products
for building proffisionals all over the world.kerakoll having full set-up and
it’s head office in Mumbai and warehouse and having full profissional
working team available in technical and sales department to provide best
pre snd after technical-sales service support to its coustomer at South East
Asia continent.with kerakoll expertise of 40 years in this field, certainly it
can satisfy customer need for challenging and rapid growing construction
requirment .

In 1978, kerakoll set the pace in the Italian ceramic industry bu inventing
H40 flex, the world’s first ever single- component adhesive that finally
provide a safe solution to securing single-fired and homogeneous tiles in all
domistic and commercial applicatons with no technical restriction.

To promote and spread a better quality of building,Kerakoll sees technical

refresher courses and vocational as key tool, proof of which is the fact that
in the four year period from 2003 to 2006, the company invested 3.2% of
it’s turnover in these areas.

With 2500 s.m. of teaching worksite and 30 specialized trainers, the

kerakoll technical center held 3,256 courses in five year period from 2002
to 2006, qualifying some 120,000 building professional around the world.

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 NEED OF STUDY

Now a day due to MARKETING STRATEGY AT COMPANY FOR COUSTOMER

ACQUISTION AND RETENTION, the construction industry facing so many
problems and slow running construction project. The company want to
know the reason behind this site slowdown. Thus this study enable the
company to know about the reason of the site slowdown and new emerging

15
recent trend in the construction industry. The company wants to know
about the current market condition and by mean of that it can generate
more and more sales. It want to get into big market of India and have
bigger share in this market. To become major player, company has to
concentrate on sales and sales should be increase by creating effective
demand and by going to the recent industry trends. Effective demand will
come mainly from middle and high income consumer in urban area. The
growth of disposable incomes, change in family structure, more women
joining the work force are the main reasons that lead to have a single
apartment and thus it encourage the construction of the new housing
society, Malls, big hospital and this is the reasons that big name and
industries are being involve in this industry.

The need of the study is to discover the major recent trends affecting the
construction adhesives and chemicals market also to understand
consumers consumption and expenditure patterns and to understand the
future direction of this market . The need of study is to know about Market
forces, customers retention, competitor’s price, product, and place and also
to know about the strength, weakness,opportunites and threats of kerakoll,
and for this systematic and logical analysis is to be done which provide
solution to the various problem and will help to analysis various isses in
construction Industry.

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 SCOPE OF THE STUDY

Complection of the project could help marketing team to develop

marketing strategies as per market condition and demand. Also it will
help to understand the current market scenario and essence of
marketing in stiff compition and this present scenario of coustomer
acuisition & retention. Being a student of management we can draw
the relevent suggestion to the organisition.
The company can take decision according to the suggestion and it
will provide better exprince to the students for their bright career.

My study wiil help me to:

To identify prospective market for the company.
To understand customer pereption about and expections
from the company.
To identify the target market for the company.
To carry out competitors analysis.
To make recommendation to the company to increase sales
and enhance brand image.

Literature Review

Before starting the project I wanted to make every possible

arrangement for the success of study . initially I took help from my
17
guides and did literature survey. I took help from some of the course
books like Marketing Research, Research methodology and Marketing
management.

I started my project with certain presumptions like pidilite and kwality

wall’s would have good market share and being the most prominent
player in building material segment, kerakoll’s products also would
have effective demand among the customers. Although these two
players have significance presence in the region, but comparatively
kerakoll’s is better somehow.

Mission & Vision.

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To represent GreenBuilding, the new low environmental impact approach to
building that safeguards the health and wellbeing of people
We think, develop and produce innovative solutions that focus on the
environment and on improving both health and quality of life by using eco-
friendly and naturally breathable building materials that avoid the most
common illnesses caused by indoor pollution.

Our vision is to interpret GreenBuilding as a new way of building that is

kind on the environment, promoting higher quality homes around the world
and helping people to live better.

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 Value.

The Kerakoll business culture to create value over time

Kerakoll is determined to improve its performance in all ways, firm in the belief that to
create value over time you have to first create a firm business culture.

Business culture in Kerakoll means being committed to recognizing and reclaiming the
value of key experiences and practices of the past, and at the same time being

20
constantly willing to go out on a limb.

Research and innovation only make sense in such a context, where progress goes
hand-in-hand with restoration, preservation and reclaiming the heritage of the
company’s past.

The Kerakoll mission is to meet the needs of its consumers with a constant supply of
new and original ideas, remaining ever faithful to a business culture always ready to
consider the ideas of all its members.

When it comes to knowledge assets, people are a key resource for

Kerakoll along with the values, expectations, hopes, ideas and originality they bring
with them.

This belief is the cornerstone of the Kerakoll business ethos, and the five pillars of this
approach represent our modus operandi in both life and work.

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Innovative
People in Kerakoll, both men and women alike, have ideas and
initiative, and are creative beings applyinginnovation and
invention to all that they do, inspired by change and excited by
experimentation.

Only inquiring minds of this kind can produce the unique and
original discoveries that are the founding pillars of the Kerakoll The
GreenBuilding Company.

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 Responsible.

Responsible
Kerakoll people are careful and responsible, both trustworthy
and correct in their dealings with consumers, colleagues and
stakeholders in order to promote a new development model
bringing economic growth, wellbeing, quality of life and a safe
environment.

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 Dynamic.

Dynamic
Kerakoll people are enthusiastic, and truly passionate about
excellence and leadership. They are both pragmatic and fast-
thinking in making decisions, and flexible and capable in
adapting to change.

The aim is to improve one day at a time, consolidating relations

with customers and with key stakeholders.

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 True

True
Kerakoll people have a young, flexible outlook, and are open,
honest and genuine. In their work they are down-to-earth,
humble and driven by a simple entrepreneurial spirit which
enables them to be inventive and to pursue their creations with a
team-oriented approach.

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 Aware

WorldwideFinance

Aware
Kerakoll people listen to the market, firm in the belief that the
best ideas always come from stakeholders; a line of contact is
always maintained with the market in order to understand needs
and turn them into solutions capable of generating only the best
results.

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 Milestone.

Milestones
1968

Realizing the huge potential to be tapped, Romano Sghedoni

started producing tile adhesive in his garage and founded

27
Kerakoll in Sassuolo, province of Modena, at the heart of
worldwide ceramic industry.
1978

H40 Flex was invented, the world’s first single-component SAS

(Shock Absorbing System) technology adhesive. This was a
landmark moment for the ceramic industry as it provided a
secure way of fixing single-fired materials and homogeneous
slabs in high stress applications. It was also the first step on the
road to success.
1990

Kerakoll ventured into the construction industry with high-

resistance laying systems for ceramic tiles and natural stone,
leading the way and partnering construction companies around
the world. Single-technology, BME (Low Elastic Modulus)
technology was introduced, revolutionising the concept of special
mortars for concrete.
2000

Investment in Green Technology R&D rose from 15% to 50%.

Kerakoll acquired its stake in SLC and launched an industrial
reorganization to change from a chemical company to an
ecofriendly company. The guidelines are: in the first 5 years, cut
back on solvents used by 60%; develop new ecological and
water-based products; low VOC emission-certified products.
2003

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Invention of Keratech, the next generation in eco-compatible self-
levelling products with HDE technology. For the first time,
hypoallergenic cements with low chromium salt content are used,
and are certified as having the lowest levels of volatile organic
compound emissions in their category.
2004

Kerakoll welcomes MIGRA, an eco-friendly company specializing

in the recovery of the mineral residues resulting from marble
processing in the quarries at Carrara (Italy).
The recycled mineral used in Kerakoll products comes from
residues of other production processes, and is not extracted from
new raw materials, thereby converting the large amount of
energy generally required for the disposal of waste products into
a useful resource that protects our ecosystem. Two hundred
thousand tons of inert mineral are recycled every year.
2005

Biocalce was introduced, the first BIO range of NHL-based

mortars, plasters and paints that let buildings breath. There is a
rising awareness among the general public of the risk to our
health that the air inside our houses and Sick Building Syndrome
pose.

Kerakoll Campus opened, Europe’s finest and most expert

training academy in the development of a green culture for the
building industry.
2006

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Kerakoll acquired Rankover, a company founded in 1972 in
Zimella (Verona) and a leading European business in the
formulation, production and development of decorative eco-
coatings for sustainable building and at the cutting edge of the
production of natural paint coats for historical restoration.

Joint scientific projects commenced with the European

Commission’s Joint Research Centre to identify the main indoor
pollutants with relation to breathability and dilution of Kerakoll’s
BIO range of natural materials.
2007

Kerakoll Design was born, the new home design brand behind
Cementoresina, the revolutionary, low environmental impact
compound for joint-free surfaces that are perfect in eco-
sustainable design.
The first Kerakoll Design Gallery showroom opened in the heart
of Milan’s design district.
2008

Construction began on the Kerakoll GreenLab, the futuristic

Research Centre that encompasses nine advanced Green
Technology development labs where 100 new green building
researchers will be employed.
Designed and built entirely with GreenBuilding materials and
technology, the Kerakoll GreenLab is one of the first examples in
Europe of an industrial building with low-environmental impact,
extreme living comfort, and high energy efficiency.
2009

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The launch of Nanoflex, the first waterproof eco-membrane
certified to have low VOC emissions. Nanoflex is a friend of the
environment, as it is the first eco-technology designed product to
reduce CO2 emissions into the atmosphere. Designed using
more than 30% recycled materials, and itself recyclable as an
inert material at the end of its life, Nanoflex represents the best
of low environmental impact technology.
The laboratory for microbiology and environmental health at
CSTB, the French Scientific and Technical Centre for Building,
confirmed the natural antibacterial action of Kerakoll natural
hydraulic lime.
2010

Kerakoll becomes The GreenBuilding Company, the leading

world manufacturer of GreenBuilding solutions, boasting a
technological supremacy famous around the globe. With over
1,700 eco-friendly items and production of over 950,000
tons/year, Kerakoll is the leading manufacturer of green
materials for designing, building, and living in harmony with the
environment and in healthy spaces.

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 Award

Mission & VisionThe GreenBuilding CompanyValuesMilestonesAwardsSocial

ResponsibilityWorldwideFinance

Awards
Kerakoll ranked number one in its field for

32
 competitiveness
Number one for people management, speed of innovation,
product reputation and high standards of service.

Having customers name us as their partner is a testament of the

quality of our products, services, attention to detail, reliability,
efficiency and reputation.

These principles have taken Kerakoll to the very forefront of the

industry for competitiveness and quality of the company’s
Made in Italy strategy, a rare accreditation awarded to the small
number of elite businesses that continue to generate value.

Social Responsibility

Social Responsibility
Integrated policy for total quality, wellbeing and
protection of the environment
We pride ourselves on our quality, we are guided by our
commitment to society and the health of people, and tireless

33
in our promotion of environmental sustainability.
Focus on the environmental sustainability of a home as it relates
to the health of its inhabitants: this is the core philosophy that
underlies Kerakoll GreenBuilding. The pillars of healthy housing
are indoor air quality, advanced environmental and energy
standards, and healthy spaces that exist in harmony with nature.
Kerakoll’s personal approach aims to integrate the many aspects
of GreenBuilding into everyday life, in keeping with the growing
environmental sensibility of every individual.
We believe that:
our mission is to make technology more sustainable and to
develop an associated model of development: the true aim of
any business should be to develop projects of low environment
impact but of huge technological innovation.
Kerakoll’s commitment in this direction can be seen in everyday
things, in business, and in our awareness of consumer needs in
order to satisfy current requirements without jeopardizing the
wellbeing of future generations. This is not just an economic
mission, but also one of corporate social responsibility which
guides and unites everyone here at Kerakoll.
That’s why at Kerakoll we see business and social responsibility
as going hand in hand, which means we make it our business to
improve the quality of life of people and the environment they live
in.

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Worldwide

35
Worldwide
Taking Made in Italy excellence around the world
In its 40 years in the industry, Kerakoll has been so successful that it has gone
from being top of the domestic market to a top Italian-based business in
Europe, before also becoming a leading European group (and Italian at heart)
bound for the international arena.
Worldwide

Kerakoll Worldwide
Find on the map

International expansion and an ever more global approach have

certainly not eroded the longstanding Kerakoll identity. The
company has remained faithful to the values that saw it rise to
1st place in the production of GreenBuilding solutions around the
world with more than 1,700 items that are 100% eco-friendly.
Innovation, respect for the environment, concern for health and
living comfort, and a pure wholesome approach are the defining
tenets of Kerakoll.
The international dimension of the company also
emerges in the makeup of our management team
In global markets, the majority of managers are selected locally,
which explains why you’ll find local experts heading up our

36
 branches in USA, India, UK, Portugal, Germany and Hungary.
Our intense investment policy and 12 branch operations around
the world have enabled us to continue to grow and consolidate
our position, the aim being to keep in close range of our markets.
Over the years, Kerakoll has carved out an extremely competitive
position for the company in its benchmark markets, managing to
take our standards of customer service to new levels by making
sure our full product range is constantly in stock in the local
market.
Large amounts of money were also invested in 2009 to improve
our technical support service, our intention being to offer a
standardized global support service by qualified Kerakoll
Worldwide Global Service experts onsite within 24 hours of the
call-out.
Kerakoll Worldwide Global Service
400 GreenBuilding Consultants
Highly professional team whose skills and knowledge are in
constant development
Onsite Technical Support
Expert site visits
Technical Consultancy Service
Call Centre with 40 experts providing real-time assistance
Online technical support
24/7 web assistance
Special quick call-out service
Expert assistance onsite within 24 hours of the call

Kerakoll Products

Kerakoll has a wide variety of products which are categorized into three main
categories. These are:

1. PREPERATION OF THE SUBSTRATE- It includes

37
 • Professional , high resistance binders, leveling and self leveling
products.
• Professional products for substrate preparation.
• Professional waterproofing products for substrate.

1. LAYING CRAMIC TILES AND NATURAL STONES- It includes

• Professional adhesives.
• Professional adhesives with SAS technology.
• High performance professional adhesives.

1. GROUTING AND ELASTIC JOINTS- It includes

• High chemical and mechanical resistance professional.

• Professional elastic sealants.
• Laying accessories for ceramic tiles and natural stones.

Detail of products :

PREPERATION OF THE SUBSTRATE

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 • Professional, high resistance binders, leveling and self leveling
products.

 KERACHEM
 KERATECH R 30
 KERALEVEL
 KERALEVEL LR
 KERABUILD FINITURA
 RASOBUILD LBF

• Professional products for substrate preparation.

 KERAGRIP
 PRIMER A

• Professional waterproofing products for substrate.

39
  IDROBUILD
 IDROBUILD RETE
 IDROBUILD GIUNTOFLX 120
 IDROBUILD GIUNTOFLX 160
 KERABUILD EPOADESIVO
 IDROBUILD OSMOCEM
 IDROBUILD SI

LAYING CRAMIC TILES AND NATURAL STONES

• Professional adhesives.

 SUPER
 EXTRA
 TACK

• Professional adhesives with SAS technology.

 H40 FLEX
 H40 TENAX

• High performance professional adhesives.

40
  SUPERFLEX
 ELASTIK
 TOP LATEX

GROUTING AND ELASTIC JOINTS

• High chemical and mechanical resistance professional grouts.

 FUGABELLA 2-12
 FUGBELLA PORCELENA 0-5
 FUGAFLEX
 DELTA PLUS
 FUGABELLA EPOXY
• Professional elastic sealants.

 SIGIBUILD
 SIGIBUILD PU
 SIGIBUILD PU 40

• Laying accessories for ceramic tiles and natural stones.

 SIGIBUILD JOINT
 SIGIBUILD FR
 TROWELS
 SPACERS

41
Future prospects.

Basically Kerakoll is focusing on its supply system and to increase its market share as
this company is new in India. Though the company is an internationally named brand
but for India is the first time that a company is launches applied chemistry for building
industry. Efforts are on to ensure greater availability of Kerakoll products at
pushcarts and small outlets.

MARKETING STRATEGIES.

Focused Approach

Kerakoll wants to get into bigger market and have bigger shares in those market. The

cooperative is also expanding its product portfolio further to match rival offerings. For

the first 10 years of its existence, it only work for applied chemistry for the building

industry. It was in 1978 that it came up with sup reflex Adhesives, and now a day

kerakoll has a wide variety of products. So while the product portfolio has been

growing , kerakoll has plans for reach out to newer markets- but the strategy here is

more product-specific. Initially kerakoll entered into delhi market but now it is

expanding its market like in Rajasthan and Haryana. Their objective of getting into

newer location is not to make kerakoll larger , but to ensure that there is a larger

viable distribution network and coustomer brand of kerakoll.

42
 PRODUCT DIFFERENTIATION

Kerakoll’s idea is not just to enter new market, but to do well in those market-

which means bigger market shares in the different product categories in whichever

market it is present. The drivers will be value created through quality of the offering as

well as innovation in product. This will, of course, be backed by relevant marketing

and promotion campaigns. Kerakoll is bringing in mass Indian flavors which are

building up in terms of absolute percentage of contribution. There attempt is to make

the quality products in building industry as familiar as possible so as to increase

quality building. Likewise in case of adhesives, it invented H40 Flex the world’s first

ever single component adhesive.

SMART MARKETING

43
On the marketing front, kerakoll is trying to take its product , campaigns and

communication to a higher platform. For instance, in the case of grouting and elastic

joints, the campaigns do not talk about the obvious benefits but rather it target hotels

and hospitals and are created around idea such as “The country needs you, you can

build better”. As far as other products is concerned like professional adhesives and

leveling products, since the adhesives are the most frequent selling product of

kerakoll the company is giving more attention at this product. While kerakoll has been

carring out various programs to encourage the sales of its product. Clearly, kerakoll

has aggressive plans. But, strong regional brands ant other co-opratives will continue

to give it tough competition.

SEGMENTATION, TARFETING AND POSITIONING

Kerakoll uses demographic segmentation with age as the parameter. The main target
segment are Retailers, Architectures and Contractors.

% of customer who influence what branded material

They buys.

As shown above, customer reign supreme in purchase related to cement

products. So to attract customer kerakoll to give max attention in this
section, by which customer more attract their product. For this, they have
keracem a special cement with professional, superior-technology, high-
resistance hydraulic binder for screeds and heat-radiant slabs, with normal
seeting and rapid drying, compensated shrinkage and high thermal

44
conductivity; sutiable for laying ceramic tiles, homogeneous tiles, natural
stone, paruet and resilient materials with adhesives. At several places, it
also provides special facilities like they have there own running testing labs
where all the tests related product has been done in front of customer.
This strategy is aimed at making kerakoll a complete product information &
awareness. This also helps kerakoll to attract the new construction
companies in India wating to spend some quality time while their new
projects have been started. To target the customer, kerakoll has priced
several product aggressively, keeping in mind the price sensitivity of this
target customer. In addition, facilities like free testing, valuable
suggestions , etc are also provided to attract customer to the come, use &
try these products.

“IGI’s Third Terminal” project kerakoll as a place for the whole

construction standard as well as product quality. When kerakoll entered in
India it was mainly perceived as targeting the urban upper class project.
Today it positions itself as an affordable place to use without compromising
on the quality , service and standard. This commitment of quality of
product and service in time, standard and relaxing atmosphere has
ensured that kerakoll maintain a positive relationship with the customers.

Customer Perception and customer

Expectation
Customer perception is a key factor affecting a product’s success. Many
potentially revolutionary product have failed simply because of their
inability to built a healthy perception about themselves in the customers
mind. Kerakoll being an internationally renowned brand brings with it
certain expectations for the customers.

Target Segment What is kerakoll for customer?

Architects A complete Design & construction help as per
product
Contractors Standard product, Quick service without affecting
the work schedule.
Retailers Hangout with customers, but keep it affordable.

45
Customers expect it to be an ambient, standard and a little sophisticated
brand that respected their values. The customer’s expect the brand to
enchance their self-image. Customer responses obtained at the , Mumbai
outlet confirmed the fact that they connect strongly with the brand.
However , fulfilling some of the customer expections like a broader product
variety provide Kerakoll a great scope for improvement.

KERAKOLL’S MARKETING MIX (5 P’s)

After segmenting the market , finding the target segment and positioning
itself, each company needs to come up with an offer. The 5P’s used by
kerakoll are:

1. Product
2. Place
3. Price
4. Promotion
5. People

46
Product : How should the company design, manufacture the

product so that it enhances the customer experience?

47
Product is the physical product or service offered to the customer. Product
includes certain aspects such as Packing, guarantee, looks etc. This
includes both the tangible and the non-tangible aspects of the product and
service.

Kerakoll has intentionally kept its product depth and product width
limited.Kerakoll studies the behaviour of the Indian customer and provide a
totally different menu as compared to its international offering. It dropped
profissional adhesives, adhesives with SAS and self- leavelling tectnology
from the menu. India is the only country where Kerakoll serve different
menu as per condition. Even the all product in India are 100% friendly.
Kerakoll continously innovates its product according to the changing
prefernce and standard of its customers.
The recent example is the introduction of the Kerakoll H40 Flex is a
professional single component adhesive with SAS (shock Absorbing
system) technology and high deformability, sutiable for laying of craftstone
products onto most surfaces including brick, block and fibre-cement sheet.

Kerakoll bring with a globally reputed brand, World class construction

chemical quality and excellent customer specific product features.

PLACE : Where should be the product be avaliable and the role of

distribution channels?
The place mainly consist of the distribution channel. It is important so that
the product is avaliable to customer at the right place, at the right time
and in the right quantity.
Neraly Kerakoll’s has the entire running project on the bases of contarct.

48
There is certain degree of quality and standard that a customer feels each
time he dines at Kerakoll.There are certain Value propositions that
kerakoll offer to its customer based on their needs. Kerakoll offers
Standard product, good quality and great service. Now Kerakoll has
also started giving online suggestion in Interior Design &
construction at their web portal.There are certain dedicated area for
customer where they can assets while their construction/project can have
some quality time together.

PRICE : what should be the pricing strategy?

are expenses incured. The price must take into consideration the
appropriate deman
Pricing includes the list price, the discount function available , the
financing options available etc. It should also take into the probable
recation from the competitor to the pricing strategy. This is the most
important part of the marketing mix as this is the part which generates
revenue. All the other three demand-supply euation.
Kerakoll came up with a very catchy punch line “You can build
better”. This was to attract the middle and high class consumer and
the effect can clearly be seen in the consumer base Kerakoll has now.
Kerakoll has certain Value pricing and bundling strategies such
as mobile testing labs, product & construction consultant,
service etc to increase overall sales volumes.

PROMOTION : What is the suitable strategy and channel for

promotion of the product?
`

49
The various promotion channel being used by Kerakoll to effectively
communicate the product information are the given above. A clear
under sting of the customer value helps decide whether the cost of
Marketing
promotion is worth spending.
Communication
There are three main objective of advertising for kerakoll are to make
Mix
people aware of an item , feel positive about it and remember it. The
right message has to be communicated to the right audience through
the right media. Kerakoll does its promotion through television ,
hoardings and bus shelters. They use print ads the television
programmes (costume in F1 race) are also an important marketing
medium for promotion.

Some of the most famous marketing campaigns of kerakoll’s are

:
“The innovative group”
“Substance for your ideas”
“You can build better”
“Kerakoll: Passion, Ideas and innovation”.

People : How to converge the benefits of internal and

external marketing?

50
Kerakoll understand the value of both its employee and its customers.
It understand the fact that a happy employee can serve well and
result in a happy customer.
Kerakoll continuously does Internal Marketing. This Is important as
it must precede external marketing. This includes hiring, training and
motivating able employees. This way they serve customer well and
the final result is a happy customer.
The level of importance has change to be in the following order (the
more important people are at the top) ;
1. Customers
2. Front line employee
3. Middle level manager
4. Front line manager
The punch line “ You can built better” is an attempt to show that the
employees are loving their work at kerakoll and will love to serve the
customers.

Distribution strategy means.

A channel of distribution or trade channel is the path or route along

which goods move from producers to ultimate consumers or industrial

users. In otherwords, it is the distribution network through which a

producer puts his product in the hands of actual users. The channel of

distribution includes the original producer, the final buyer and any

middlemen-either wholesaler or retailer. The term middleman refers to

any institution or individual in the channel which either acquires title

51
to the goods or negotiates or sells in the capacity of an agent or

broker. But facilitating agencies who perform or assist in marketing

function are not included as middlemen in the channel of distribution.

This is because they neither acquire title to the goods nor negotiate

purchase or sale. Such facilitating agencies include banks, railways,

roadways, warehouses, insurance companies, advertising agencies, etc.

What channel of distribution Kerakoll will use?

Two types of channel of distribution methods are available. Indirect distribution involves
distributing your product by the use of an intermediary for example a manufacturer selling
to a wholesaler and then on to the retailer.. Direct distribution involves distributing direct
from a manufacturer to the consumer For example Dell Computers providing directly to its
target custmers. The advantage of direct distribution is that it gives a manufacturer
complete control over their product.

52
Above indirect distribution (left) and direct distribution (right). 1
3. Selective Distribution: A small number of retail outlets are chosen to
distribute the product. Selective distribution is common with products such as computers,
televisions household appliances, where consumers are willing to shop around and where
manufacturers want a large geographical spread.
If a manufacturer decides to adopt an exclusive or selective strategy they should select a
intermediary which has experience of handling similar products, credible and is known by
the target audience.

Kerakoll Distribution Channel

1.
Kerakoll

53
Whole saler

Retailer

Architects/ contractors(Customer)

Clients(Consumer)
Explain This as I had explained u.
2nd type of channel.
Kerakoll

Builder(Consumer)
Product distribution (or place) is one of the four elements
of the marketing mix. An organization or set of organizations
(go-betweens) involved in the process of making a product or
service available for use or consumption by a consumer or
business user.
The other three parts of the marketing
mix are product, pricing, and promotion.
54
The distribution channel
Distribution is also a very important component of Logistics &
Supply chain management. Distribution in supply chain
management refers to the distribution of a good from one
business to another. It can be factory to supplier, supplier to
retailer, or retailer to end customer. It is defined as a chain of
intermediaries, each passing the product down the chain to
the next organization, before it finally reaches the consumer
or end-user. This process is known as the 'distribution chain'
or the 'channel.' Each of the elements in these chains will
have their own specific needs, which the producer must take
into account, along with those of the all-important end-user.
Channels
A number of alternate 'channels' of distribution may be
available:
 Distributor, who sells to retailers,
 Retailer (also called dealer or reseller), who sells to end
customers
 Advertisement typically used for consumption goods
Distribution channels may not be restricted to physical
products alice from producer to consumer in certain sectors,
since both direct and indirect channels may be used. Hotels,
for example, may sell their services (typically rooms) directly
or through travel agents, tour operators, airlines, tourist
boards, centralized reservation systems, etc. process of
transfer the products or services from Producer to Customer
or end user.
There have also been some innovations in the distribution of
services. For example, there has been an increase
in franchising and in rental services - the latter offering
55
anything from televisions through tools. There has also been
some evidence of service integration, with services linking
together, particularly in the travel and tourism sectors. For
example, links now exist between airlines, hotels and car
rental services. In addition, there has been a significant
increase in retail outlets for the service sector. Outlets such as
estate agencies and building society offices are crowding
out traditional grocers from major shopping areas.
Channel decisions
Channel Sales is nothing but a chain for to market a product
through different sources.
 Channel strategy
 Gravity & Gravity
 Push and Pull strategy
 Product (or service)
 Cost
 Consumer location
]Managerial concerns

The channel decision is very important. In theory at least,

there is a form of trade-off: the cost of using intermediaries to
achieve wider distribution is supposedly lower. Indeed, most
consumer goods manufacturers could never justify the cost of
selling direct to their consumers, except by mail order. Many
suppliers seem to assume that once their product has been
sold into the channel, into the beginning of the distribution
chain, their job is finished. Yet that distribution chain is merely
assuming a part of the supplier's responsibility; and, if they
have any aspirations to be market-oriented, their job should
really be extended to managing all the processes involved in
that chain, until the product or service arrives with the end-

56
user. This may involve a number of decisions on the part of
the supplier:
 Channel membership
 Channel motivation
 Monitoring and managing channels

]Type of marketing channel

1. Intensive distribution - Where the majority of resellers
stock the 'product' (with convenience products, for
example, and particularly the brand leaders in
consumer goods markets) price competition may be
evident.
2. Selective distribution - This is the normal pattern (in both
consumer and industrial markets) where 'suitable'
resellers stock the product.
3. Exclusive distribution - Only specially selected resellers
or authorized dealers (typically only one per
geographical area) are allowed to sell the 'product'.
Channel motivation
It is difficult enough to motivate direct employees to provide
the necessary sales and service support. Motivating the
owners and employees of the independent organizations in a
distribution chain requires even greater effort. There are many
devices for achieving such motivation. Perhaps the most usual
is `incentive': the supplier offers a better margin, to tempt the
owners in the channel to push the product rather than its
competitors; or a compensation is offered to the distributors'
sales personnel, so that they are tempted to push the product.
Julian Dent defines this incentive as a Channel Value
Proposition or business case, with which the supplier sells the
channel member on the commercial merits of doing business

57
together. He describes this as selling business models not
products.
Monitoring and managing channels
In much the same way that the organization's own sales and
distribution activities need to be monitored and managed, so
will those of the distribution chain.
In practice, many organizations use a mix of different
channels; in particular, they may complement a direct
salesforce, calling on the larger accounts, with agents,
covering the smaller customers and prospects. These
channels show marketing strategies of an organization.
Effective management of distribution channel requires making
and implementing decision in these areas.

Using the marketing mix

to freshen The luxurious perfumery at The Galeries Lafayette Department

store in Paris only sells premium brands
An exclusive brand of jewellery uses the best materials but comes at
a high price. Such designer brands can only be bought at exclusive stores
and are promoted using personal selling sales assistants. By contrast,
cheap and cheerful jewellery for the mass market is best sold in
supermarkets and can be promoted using television adverts.

58
Market research findings are important in developing the overall marketing
mix for a given product. By identifying specific customer needs a business
can adjust thefeatures, appearance, price anddistribution method for a
target market segment.
New technologies and changing fashion means goods and services have a
limited product life cycle. Ideally, the marketing mix is adjusted to take
account of each stage. For example, the life of a product can be extended
by changingpackaging a tired brand and so boost sales.

Market stalls generally sell inexpensive items

There is no single right marketing mix that works for all businesses at all
times. The combination of product, price promotion and place chosen by a
business will depend on its size, competition, the nature of the product and
its objectives.
The overall marketing mix is the business’marketing strategy and is
judged a success if it meets the marketing department’sobjectives, eg
increase annual sales by 5%.

59
IMPORTANCE OF PLC IN KERAKOLL

The reuirements of customer change over time and thus the product
offering has to be changed accordingly. What is the fashion today may
be out of market within few weeks. Thus continuous innovation is
reuired.

60
To counter these changes kerakoll has continuously introduced new
product and has phased out the old ones which were at the decline stage
of their PLC. The introduction is the timed such that the new product does
not cannibalize the product already in the maturity or growth stage. Thus
the secret lies in getting profit with different in the different stages of the
PLC.

A perfect example of revitalizing a product in

decline phase

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The professional adhesives have been an important part of the kerakoll
menu worldwide. But now it was in the stage of decline and was actually
not generating proper return. In an attempt to revitalize it, a new variant
was introduced namely SAS Technology. This is being placed with
professional adhesives which has resulted in increase in the sales of
professional adhesives and has elevated it from to the decline stage. This is
used to delay the decline of a well established product which has the
potential of generating further revenue.
`

SWOT Analysis
62
63
CHAPTER- 3

DESCRIPTIVE WORK
OF SUBTOPIC OF THE
STUDY
The project undertaken was to know the recent trend and the effect of
financial crunch on construction industry to achive competitive edge over
various competitors and to know about the present market demand and
situation to determine the best marketing strategies for the sales.
Basically my research work is divided into three parts:

• Market survey core site mapping.

• Analysis of various held up projects.
• Working procedure.

Market survey

This was the first part of the project. This part deals in visiting so many
running sites in the NCR region to know the status of that site like stage
owner contractor names etc. The survey will be helpful in understanding
the current market scenario as well as the new emerging trends in the
construction industry. The main purpose lies in interacting with the
project managers and site architects who are the real promoter of the
product. The comments regarding the various product of the various
brand are gathered and in particular of kerakoll and by that we have to
do the product promotion of kerakoll. The positives and negatives of
each brand are noted. The issues such as water proofing leveling an

64
laying of tiles are to be observed. The basic purpose of market survey
was to understand the market and the pros and cons of construction
industry.

Analysis of Various Brand Preference of Product

This part deals with the knowledge of various product & consumer
preference.
The reason of their held up, their restart time etc.. there may be various
reasons of customer acquisition & retention and some personal problem.

Working Procedure

Here we have to approach various architects, contractors, owners, project

mangers, and various structural consultants etc. we are doing there the product
promotion of kerakoll. We have to then go to some retailers and also tell them
about the kerakoll product. After taking wit the architects we try to analyze the
recent marketing trend and try to establish the new procedure for the sales and
demand forcast. We have to submit Daily report about each market and full
information about each site in those markets. Questionnaire and observation
method was used for collecting the information.

My Own Contribution

As far as my contribution is concerned I regularly visit to market, goes to locate

different running sites and found so many sales generating future prospects sites
and used to meet the concerned person’s like project manager, architects and
contractors. I also wanted to meet to the site owners but strange the site owners
never come to these sites or may come rarely.

Then I specially met to the various architects to know about the architectural view
about this topic, about the effect of financial crunch on the site slowdowns and the
new emerging trends in the construction industry. This project is helping me in
getting practical experience about marketing research, channel distribution ,sales
and developing new strategies for demand forecasting and the new ideas for
product promotion.

65
CHAPTER – 4

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

To identify prospective market for the company

To understand customer perceptions about the product and expectation from

the company.

To identify the target market for the company.

To carry out competitors analysis.

To make recommendations to the company to increase sales and enhance

brand image.

66
Type of Research

Exploratory and Descriptive and causal Research

Exploratory research is a type of research conduct because a problem has not

been clearly defined. Exploratory research helps determine the best research
design, data collection method and selection of subjects. Given its fundamental
nature, exploratory research often concludes that a perceived problem does not
actually exist.

It seeks to find out how many people get along in the setting under question , what
meaning they give to their actions, and what issues concern them. The goal is to
learn what is going on here?

On the other hand descriptive research is aimed to find the complete description
about an existing problem or phenomenon

Here, during my project, the main focus was to find what is the effect of customer
acquisition & retention and how the market is facing the new emerging trends in the
building industry, and the retailers, contractors and architects are actually thinking
about the kerakoll products. What are the attributes and reasons other brands are
having by means of which they are defeating kerakoll product?

67
Causal research is to associate the cause and relationship of two reasons. In my
project I am proving relationship between site slowdowns and financial crunch and
the association between new emerging trend and financial crunch, by using chi-
square test.

Methods of Data Collection

The task of data collection begins after we define the research problem. While
deciding about the methods of data collection to be used for the study, the
researcher should keep in mind two type of data viz. primary and secondary. The
primary data are those data which are collected for the first time and thus it is
original in nature. The secondary data on the other hand are those which have
already been collected by someone else and which have already been passed to
the statistical process. The research would have to decide which sought of data he
would be using for his study and accordingly he will have to select one or the other
method of data collection. The methods of collecting primary and secondary data
differ since primary data are to be originally collected, while in case of secondary
data the nature of data collection were is merely that of compilation.

Collection of primary data:

There are several methods through which we can collect primary data. Some of
these are:

Observation methods :

In observational studies, the investigator doesn’t ask question to seek clarification

on certain issue instead he record the behavior, as it occurs, of an event in which

68
he is interested. Sometime mechanical devices are also used to record the desired
data.

Interviewing :

Interviewing can be conduct either face to face or over telephone. Such interviews
provide an opportunity to establish a rapport with the interviewer and help extract
valuable information.

Questionnaire :

It is formalized set of question for extracting information from the target respondent.
The form of the question should correspond to the form of required information. The
three general form of question are dichotomous 9yes/no type), multiple choice and
open ended.

Here, in this project , I have used structured question to collect the responses from
the project manager, contractors and architects. The questionnaire has been
planned very carefully and I have tried my best to include every necessary question
which are relevant for the purpose of this study. The questionnaire has three type of
questions- dichotomous, multiple choice and open ended questions.

Collection of secondary data :

Secondary data means data that are already available i.e. they refer to the data
which have already collected and analyzed by someone else. When the researcher
utilized secondary data, then he has to look into various sources from where he can
obtain them. In this scale he is certainly not confronted with the problems that are
usually associated with the collection of original data. Secondary data may either
be published or unpublished. Usually published data are available in various
publication of the central, state, and local bodies. In technical and trade journals,
books magazines, newspaper, report and publication of the various associations
connected with business and industry, bank, stock exchanges etc.

69
Most of secondary data I have used in this project have been collected from various
websites through net and some from kerakoll. Some of the basic information was
provided by company (kerakoll).

CHAPTER – 5

Data Analysis

&

Interpretation

DATA ANALYSIS

RESEARCH ON CONSUMER :

Study – 1

 Which is your favorite product at kerakoll

70
CONCLUTION :-

In this analysis , I found that most of the likes product which is used in making basic
structure of building, that is P5.

71
2. Is the product line in kerakoll’s adequate?

CONCLUTION:-
In this analysis, I found that 38% of product line in kerakoll’s adequate is average.

72
3. What is the main problem you faced at kerakoll’s?

CONCLUTION:-
In this analysis, I found that is no problem in kerakoll excepted price of product.

73
1. What is the first thing that strikes your mind about kerakoll’s?

CONCLUTION :-

74
 In this analysis , I found that if customer go to the market the first thing strikes
in its mind that is Adhesives

Study – 2
Relating to socio economic profile of respondents by chi-suare test (X2) is
presented in the following tables:-

1. Relationship between consumer preference and Brand

name:-

Hypothesis:

There is no significant association between the consumer preference and the brand
preference for construction chemical industry.

Table-1

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INFERENCE :

From the above table the percentage of highly preferred respondents is more in the
commercial. It was followed by the group institutional, In medium preference the
highest percentage is in commercial group.

2. Relationship between Income level and brand preference :-

Hypothesis :-

There is no significant association between income level and brand preference for
construction chemical industry.

Table – 2

76
INFERENCE :
From this above table the percentage of highly preferred respondents is more in the
group above Rs.50,00,000 To 1,50,00,000. It was followed by the group Rs

1,50,00,000 & above, In medium preference the highest percentage is in Rs

50,00,000 To 1,50,00,000 group.

77
78
CHAPTER –
6
CONCLUSION
AND
LIMITATION

79
Conclusion :

After analyzing all things about kerakoll the leading construction chemical industry in
the world. We can say that its product quality , service , standard ,etc are much better
than its competitors as customer point of view and there expectation & perception but
construction in the world.

As we know max product of kerakoll are in premium segments, so it has to do more

for main for middle class market also, because in India more70% are middle class &
there is great scope for improvement.

At last kerakoll as a leading name in the consultancy and end-to-end technical support
field construction market & its product are compairless to its any of competitor in
sense of-

1. product quality
2. service
3. product variety and many more…….

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81