A STUDY ON THE BUSINESS BUYING BEHAVIOUR WITH SPECIAL REFERENCE TO KERALA MINERALS AND METALS LIMITED

A PROJECT REPORT IN PARTIAL FULLFILLMINET OF THE REQUIREMENT OF THE MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

LOLEK EJ (EJAKMBA 019)

UNDER THE GUIDANCE OF

MRS JYOTHIS RACHEL, M.COM, MBA

Assistant Professor

ELIJAH INSTITUTE OF MANAGEMENT STUDIES THRISSUR

AUGUST 2011

ELIJAH INSTITUTE OF MANGEMENT STUDIES PONGANAMKAD, KURICHIKARA P.O THRISSUR-6800028

CERTIFICATE

This is to certify that the project entitled A STUDY ON THE BUSINESS BUYING BEHAVIOUR WITHT SPECIAL REFERENCE TO KERALA MINERALS AND METALS LIMITED CHAVARA, KOLLAM submitted in partial fulfillment of the requirements for the award of degree of Master of Business Administration of University of Calicut is a bonafide record of the work carried out by Mr. Lolek EJ, Reg. no. EJAKMBA 019.

Date Place

PRINCIPAL DR.V.A.SONNY

ELIJAH INSTITUTE OF MANGEMENT STUDIES PONGANAMKAD, KURICHIKARA P.O THRISSUR-6800028

CERTIFICATE FROM THE GUIDE

This is to certify that the project entitled A STUDY ON THE BUSINESS BUYING
BEHAVIOUR WITH REGARD TO THE KERALA MINERALS AND METALS LIMITED CHAVARA KOLLAM submitted in the partial fulfillment of the

requirements for the award of degree of Master of Business Administration of University of Calicut was carried out by Mr.Lolek EJ, Reg. no. EJAKMBA 019 under my guidance.

Place: Date:

Mrs. JYOTHIS RACHEL Faculty guide

DECLARATION
I Lolek EJ, student of Elijah Institute of Management Studies, hereby declare that the PROJECT REPORT entitled A STUDY ON THE BUSINESS BUYING BEHAVIOUR WITH SPECIAL REFRENCE TO THE KERALA MINERALS AND METALS LIMITED CHAVARA KOLLAM is submitted to University of Calicut in partial fulfillment of the requirement for the award of the Degree of Master of Business Administration is a record of original project work done by the able guidance of MRS Jyothis Rachel (faculty guide)

The empirical findings in this report are based on the data collected by myself from KERALA MINERALS AND METALS LIMITED. While preparing this report, I have not copied from any other report. I also declare that this report will gives us clear vision about the business buying behavior of each client towards the company.

Place: Thrissur Date:

LOLEK EJ EJAKMBA 019

ACKNOWLEDGEMENT
First and foremost let me sincerely thank ALMIGTHY for the great opportunity and blessings that he has showered up on me for the successful and timely completion of my project work.

I wish to express my hearty gratitude to our respected principal, DR.V.Sonny for permitting me to take up this project work.

I great fully thank Mrs. Jyothis Rachel professor of Elijah Institute of Management Studies, for the patient support and guidance.

I render my whole hearted thanks to all the other respected faculties of the management department for their assistance and cooperation given to me in regard to this work.

I am extremely indebted to the Marketing Manager as well as Mr. Jerry (Asst. marketing manager) who guide me for the valuable help rendered to me by providing the necessary information, materials and cooperation for the preparation of this project work.

I thank my family members for their valuable and inseparable support in completion of this project. Once again I take this opportunity to convey thanks to each and every person who helped me directly and indirectly in the successful completion of this project.

TABLE OF CONTENTS
CHAPTER -1 1.1 1.2 1.3 1.4 1.5 1.6 Introduction Research Problem Scope of the Study Objectives of the Study Research Methodology Limitations of the Study CHAPTER -2 2 2.2 2.3 2.4 Literature Review Buying situations in the industrial marketing Different buying roles involved in the business buying process Review of past studies CHAPTER -3 3.1 3.2 3.3 3.4 3.5 Industry Profile Company Profile Department Profile Product Profile Organization Structure CHAPTER -4 4 Data Analysis CHAPTER -5 5.1 5.2 5.3 5.4 Summary Major Findings Suggestions Conclusion 46 46 47 47 34-45 15-18 18-24 24-28 29-32 33 5 6-7 7-12 12-14 Page no: 1 1 1 2 2-4 4

5.5

Scope for further study

47

Bibliography

LIST OF TABLES
2.1.1 2.3.2 Buy grid model 2.3.3 Nature of the organization 4.1 Materials sourced from companies 4.2 Customer category 4.3 Grades which are sold 4.4 Satisfaction with the product 4.5 General terms of purchase 4.6 How often do you buy the products 4.7 Quantity bought by a customer at a time 4.8 How do you feel delivery of product 4.9 Are you satisfied with the availability of product 4.10 Awareness of the ISO certification 4.11 If so is there any improvement 4.11.1 Ratings of factors which affect the buying behavior 4.12 35 34 34 33 32 31 30 29 28 27 26 25 24 10 Difference between consumer and business buying behavior Steps in Business buying process 4 8

II

LIST OF CHARTS
3.3.1.2 3.5 Nature of the organization 4.1 Materials sourced from companies 4.2 Customer category 4.3 Grades which are sold 4.4 Satisfaction with the product 4.5 General terms of purchase 4.6 How often do you buy the products 4.7 Quantity bought by a customer at a time 4.8 How do you feel delivery of product 4.9 Are you satisfied with the availability of product 4.10 Awareness of the ISO certification 4.11 Is there any improvement 4.11.1 Ratings of factors which affect the buying behavior 4.12 35 34 34 33 32 31 30 29 28 27 26 25 24 Marketing department structure Organization structure 16 23

III

ABSTRACT
A marketing firm must ascertain the nature of customers' buying behavior if it is to market its product properly. In order to entice and persuade a consumer to buy a product, marketers try to determine the behavioral process of how a given product is purchased. The job of marketer is to meet and satisfy target customers needs and wants but knowing customer" is not a simple task. Understanding the buying behavior of the target market for its company products is the essential task for the marketing department. So the marketing department plays the key role in any company like KMML As the competition is high in the markets each company has to understand its potential and they should know the factors which influence the buyers in the market situation. And this work helps to understand the various buying situations as well how the changes in social, political, and economical changes affects a buyer. As KMML is one of the leading players in titanium products it is essential to understand the structure of the company as well as the various departments. This study helps to know more about KMML as well as it gives a clear idea about the buying behavior of the stockiest which depend mainly on Kerala Minerals and Metals ltd Chavara. The companies various promotion strategies and the stockiest satisfaction is been critically analyzed. The data of the project Business buying behavior is collected through questionnaires which was sent to various stockiest. Charts and tables are created by using the response of the questionnaires. The study is conducted by using the various information obtained from the company. The technique used for data collection is sapling. Almost 50 respondents were taken as sample unit. The collected datas are analyzed and interpreted for findings and suggestions were framed in response to the findings

IV

CHAPTER -1

1.1 1.2

Introduction Research Problem

1.3

Scope of the Study

1.4

Objectives of the Study

1.5

Research Methodology

1.6

Limitations of the Study

1.1 Introduction
At the most basic level, marketers want to know how business buyers will respond to various marketing stimuli. As with consumer buying, the marketing stimuli for business buying consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces in the environment: economic, technological, political, cultural, and competitive. These stimuli enter the organization and are turned into buyer responses: product or service choice; supplier choice; order quantities; and delivery, service, and payment terms. In order to design good marketing mix strategies, the marketer must understand what happens within the organization to turn stimuli into purchase responses. Within the organization, buying activity consists of two major parts: the buying center, made up of all the people involved in the buying decision, and the buying decision process. The model shows that the buying center and the buying decision process are influenced by internal organizational, interpersonal, and individual factors as well as by external environmental factors. Business buying behavior refers to the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. It also includes the retailing and wholesaling of firms that acquire goods for the purpose of reselling or renting them to others at a profit.

1.2 Research Problem

Whether the Socio political changes as well as the competitive changes will affect the buyers or not? (Factors which affect the buying decision process)

1.3 Scope of the Study

The very importance of the need of this study comes from the fact the individual consumer behavior differ from the buying behavior of its business counterpart. So for a company dealing with these intermediate business buyers has to cautious enough to understand the variations between the two. In this case a better understanding of the business buyers behavior will give the company a better chance in increasing the efficiency of it marketing activities.

1.4 Objectives of the Study Primary objective

To discuss the different types of buying situations involved in the organizational buying

Secondary objective
To understand about the buying roles and their importance in industrial marketing

To analyze the factors that influences the organization buying process

To study and understand the major influencing factors on the business buyers in KMML

1.5 Research Methodology

According to Clifford Woody, research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions to determine whether they fit the formulated hypothesis. A methodology may be understood to mean as all those methods and techniques that are adopted for collecting information and data. These steps include the selection of a research problem, the presentation of the problem, the formulation of hypothesis, conceptual clarity and methodology, survey of literature and documentation, bibliography, data collection, testing of hypothesis, interpretation, presentation and report writing. In view of the research objectives, the research methodology adopted during the research process is described below.

1.5.1 Research Design:

A research design is the arrangement of condition for collection and analysis of data in manner that aims to combine relevance of the research purpose with economy in procedure. It constitutes the blueprint for the collection, measurement and analysis of data. The design includes an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data. The design may be specific presentation of the various steps in the process of research. Descriptive design was taken for the study.

1.5.2 Data Collection:

Data used for the research has been collected from primary and secondary sources

1.5.3 Primary Sources:

Primary data are generated when a particular problem in hand is investigated by the researcher through personnel interview, surveys; questionnaire-Data was collected through formal interview with officers and staffs.

1.5.4 Secondary Sources:

Secondary data on the other hand includes those data which are collected from some earlier research work and are applicable in the study the researcher has presently worked in. Data was obtained from company records, HR Manual, and websites. The research methods mainly used here are mail surveys as well as telephone surveys. Here the low costs of a mail survey allows the collection of data with a boarder cross industry within a region. Secondly this is a study in a B2B context, and due to the limited time that managerial respondents can offer, a mail survey approach is appropriate since it allows respondents to participate in the study at a time of their choosing. Although mail surveys are criticized as having low response rates which can create non response bias, this can, to some extent, be overcome by pre-set quotas as well as careful data collection procedures. 3

1.5.5 Sample Size

50 consumers of the company

1.6

Limitations of the study

Difficulty of reaching out to the customers as they are in different states.

Questionnaires is send over emails

Customers are of different language so communication problem

CHAPTER -2

Literature Review

2.2

Buying situations in the industrial marketing

2.3

Different buying roles involved in the business buying process

2.4

Review of past studies

2.1 Literature Review

Business organizations not only sell they also buy vast quantities of raw materials, manufactured components, plants and equipment, supplies and business services. Over 13 million business, institutional, and government organizations in the United States alone-plus millions more in other countries-represent a huge, lucrative buying market for goods and services purchased from both domestic and international suppliers. Business buyers purchase goods and services to achieve specific goals, such as making money reducing operation costs, and satisfying social or legal obligations. Any market in which customer buys the product for other than personal consumption is called business market. This market includes organizational buying, institutional buying and government buying. This market consist very few buyers but they purchase in a very big quantity. These customers are usually found in the industrial towns, tech parks and industrial area. The demand for the product in this market is derived i.e. depend upon the final consumption of the product and service. For example, demand for car engines will depend on how many consumers will purchase the car. If the number of people who purchase car declines in a particular month then demand for the engines also goes down. This shows how engine companies are depending on the final consumption. The fluctuation in the market is inelastic. The product is purchases only after thorough examination. Therefore it includes more than one member in the purchasing department. This has resulted in the complex buying behavior.

2.1.1 Difference between consumer and business buyer behavior

Characteristics Demand No of customers Location Nature of buy No of buying roles Negotiations Promotion Consumer market Direct Large Dispersed Personal Few Easy Advertising
Table 1 5

Business market Derived Few Concentrated Profession Many Complex Personal selling

2.2 BUYING SITUATIONS IN THE INDUSTRIAL MARKETING

Buying situations varies to the large extent in the industrial marketing compared to the consumer markets. The negotiation process and vendor evaluation stages will not be there if company wants to purchase the material from the existing suppliers. It means for each situations buying process changes. Therefore in this section we are discussing the different situation involved in the business buying. Industrial marketing usually involves three different types of buying situations. They are a) b) c) New task Straight re-buy and Modified re-buy

1)

New task: the stage in which an organization is purchasing a major product for the first

time. Therefore company will be having more number of people involved in the decision making. In this situation seller try to meet all the buying participants of the organization and convince them. This will be resulted in higher uncertainty and cost for the seller.

2)

Straight re-buy: in this situation organization follow routine step of informing sellers

about their requirements and supply specifications. This is the easiest situation in the organization buying. This provides lot of flexibility to both buyers and sellers. Company already has the list of suppliers, it gets the information from the floor about their requirements and the same is conveyed to the supplier. After the advent of ERP software things have become simpler and easier.

3)

Modified re-buy: in this stage buyer wants either product modification, price

modification, terms modification or suppliers modifications. For example, a company x is buying Rs100,000 worth of iron materials from company y every month. Company would like to reduce the cost of iron ore. It starts the negotiation with their suppliers on the new terms and conditions.

2.2.1 BUYING ROLES IN THE INDUSTRIAL MARKETING

The number of people involved in the decision making is more in the industrial marketing. Therefore many business organizations constitute the buying centre or buying committee. The characteristics of buying centre are listed below. 1. Several individuals can occupy a given role (e.g., many users/influencers) and one

individual can occupy multiple roles. 2. The buying centre may include people outside the organization such as government

officials, consultants, technical advisors and other members of the marketing channel. 3. Different members of the buying centre have different influences, for e.g. the engineering

department may be concerned with actual performance of the product, whereas production may be more interested in ease of use and reliability of supply. 4. Members of buying centre have different personal motivations, perceptions and preferences which in turn are dependent on age, income, education, job position, personality, attitudes toward risk and culture

2.3 Different buying roles involved in the business buying process are
a) Users are people who actually use the product. For example, lathe machine is used by the shop floor employee. This person can tell the specification clearly than any other person. b) Influencers are people who provide the information required to evaluate the vendor and

his products. Example: technical personnel. c) Buyers: purchasing persons who put the specification for vendors. These people also

evaluate the vendor and select him. d) e) Deciders: these people give final consent on the chosen suppliers. A gatekeeper acts as filtering agents between buying committee and sellers. For example,

a technical person may see the vendor quotations and filter it before it goes to buying committees. f) The negotiation process and vendor evaluation stages will not be there if company wants

to purchase the same material from the existing suppliers. It means for each situations buying process changed. Therefore in this section we are discussing the different situation involved in the business buying. Industrial marketing usually involves three different types of buying situations they are: 7

g) h)

New task: The stage in which an organization is purchasing a major product for first time Straight re-buy: Organization follow routine step of informing sellers about their

requirements and supply specifications. i) Modified re-buy: In this stage buyer wants either product modification price modification, terms modification or suppliers modification.

2.3.1 Factors that influences on business buyers

a)

Economic developments: Purchasing of materials depend upon the countrys economic

conditions. If the economy is growing rapidly usually the consumption also grows proportionately then company should source materials accordingly. The economic health of the nation provides image for the organization too.

b)

Supply conditions: Raw materials required should be matched with the demand

condition of the company. If there is an irregular or seasonal demand exists then company should adjust their supplies. Any shortage of the raw materials will force the company to go out of the company.

c)

Political and Legal environment: The unstable government will have unpredictable

policies. Any change in the government policy will have direct or indirect impact on the company. For example, an engineering firm work towards better environment standards in their products assuming that all automobile companies adhere to the international regulations but the government decided to post pone the regulation standard implementation for 1-2 years the entire material manufactured and raw materials will have extra holding and inventory costs.

d)

Competitive environment: Business buying is very complex. The numbers of buyers are

very few. Any technology change adopted by the competitor should be carefully observed. If the company not able to identify the competitors move survival will become difficult.

e)

Culture and Customs: Every country has its own culture. One should not sell beef

products in India, in same way business buying is also influenced by the culture and customs. For example, most of the products produced in Japan are of small size to suit their customers. Any company buying products in Japan should always keep these things in mind. 8

f)

Organizational objectives: Purchasing objectives are derived from the organization

objectives. For example, and organization objective is to reduce the overall cost of 20%. Its purchasing objectives take this as benchmark and try to reduce the cost by 20%. Sometimes they will be forced to cancel the negotiation with a major supplier who may provide value to the organization in the future to meet the current cost projection.

g)

Organizational Policies and Procedures: Companies policies like centralization versus

decentralization of buying and selling will have direct impact on the companys production.

h)

Organization structure and Systems: Lesser the hierarchy more will be the flexibility

in the organization. Companies with more number of hierarchies will have plenty of problems to be addressed.

i)

Interpersonal factors: Business buying will have different outcome on the basis of

authority, status, empathy and persuasiveness that customer and organization posses. j) Individual factors: Age, education, job position, personality risk attitudes of individual

will determine the buying behavior of each role and in turn these changes will have direct impact on the organization buying.

2.3.2 Steps in Business buying process

Table: 2
Problem recognition Need description Product specification Supplier search

Proposal solicitation

Supplier selection

Order routine specification

Performance review

Stage 1: Problem recognition Problem can be identified from either internal stimuli or external stimuli. Company would like to launch new product hence it searches for the suppliers who can supply the material and equipments required for the new product. 9

External stimuli like trade show, conference also helps the company to identify the problem. Stage 2: Need description: after finalizing the problem, companies will define need description. The need description includes

1. 2. 3.

Characteristics and quantity of the needed item For the complex products team assessment is required. The required items are assessed on the basis of reliability, durability, price, and other

attributes needed in the item. Stage 3: Product specification: Organizations develop detailed product specification with value analysis. In the value analysis company analyzes the components and their production process. Here emphasis is given to find the alternative methods of producing the components and finding the optimum method that suits the company. Stage 4: Supplier search The buyer now tries to identify the most appropriate suppliers. The buyer can examine trade directories, do a computer search, phone other companies for recommendations, watch trade advertisements, and attend trade shows. The suppliers task is to get listed in major business directories, develop a strong advertising and promotion program, and build a good reputation in the marketplace. Suppliers who lack the required production capacity or suffer from a poor reputation will be rejected. Those who qualify may be visited to examine their manufacturing facilities and meet their personnel. Qualified suppliers are shortlisted for further process. Stage 5: Proposal solicitation The buyer will now invite qualified suppliers to submit proposals. Some suppliers will send only a catalogue or a sales representative. Where the item is complex or expensive, the buyer requires a detailed written proposal from each qualified supplier. The buyer will invite qualified suppliers to make formal presentations. Thus business marketers must be skilled in researching, writing and presenting proposals. Their proposals should be marketing documents, not just technical document. Their oral presentations should inspire confidence. They should position their companys capabilities and resources so that they stand but from the competition. 10

Stage 6: Supplier selection This stage is also known as vendor selection. During this stage companies will prepare the checklist. Weight ages are assigned against each checklist point and evaluated. Some of the important attributes those commonly found in the vendor evaluations are a) b) c) d) e) f) g) h) Quality Delivery Communications Competitive prices Servicing Technical advice Performance history Reputation

Stage 7: Order routine specifications: The buyer now negotiates the final order with the chosen suppliers, listing the technical specifications; the quantity needed, the expected time of deliver, return policies, warranties and so on. In case of MRO items (maintenance, repair and operating items), buyers are increasingly moving towards blanket contracts rather than periodic purchase orders. Writing a new purchase order each time stock is needed, is expensive. Nor does the buyer want to write fewer and larger purchase orders because that means carrying more inventories. A blanket contract establishes a long-term relationship where the supplier promises to re-supply the buyer as needed on agreed price terms over a specified period of time. The stock is held by the seller, hence the name stockless purchase plan. The buyers computer automatically sends an order to the seller when stock is needed. This locks the supplier with buyer and makes it difficult for out-suppliers to break in unless the buyer and makes it difficult for out-suppliers to break in unless the buyer becomes dissatisfied with the in-suppliers prices, quality or service. Stage 8: Performance review In this stage organization review the performance of the suppliers. This will help it to decide whether to continue with existing suppliers or should search for the new vendor. These eight stages are very much essential for new task but not necessary for straight re-buy or modified re-buy. To know which stages are important in the new task, a straight re-buy or modified re-buy we will study by Buy-Grid model. 11

2.3.3 Buy grid model

Buy grid model is developed to understand the business buying process in three different business buying situations Buying process 1. Problem recognition 2. General need description 3. Product New task Table: 3 Modified re-buy Straight re-buy

specification 4. 5. Supplier search Proposal solicitation 6. 7. Supplier selection Order routine specification 8. Performance review

2.4 Review of past studies

Business buying process in a Garment Manufacturing Unit for a Retail Chain Demand Analysis by Cathy Parker for the partial fulfillment of her degree Most demand in the organization buying is derived demand so the companys most purchase depends upon orders procured by the organization. To fulfill the orders the company purchase raw materials, semi-finished goods, components, and services as input to the production of other goods and services (fashion.net).As the marketing department brings new order and does the demand forecasting it process the information to the operations department. The operations department makes the design and process the buying requirement to the purchase department. The purchase department categorizes the purchases into three categories 12

1.

Order Specific Purchases As the order is received the purchase department looks for the particular design related fabric. In accordance with the design apart from the fabric the operations department requires accessories and other add on. Re-orders In the operations department the designers make rough design for making patterns and samples on pattern making papers. So apart from the order related purchases the department requires stationary items used in the designing and design development process. Operational machinery purchase As the operations keep going there is machine depreciation and mechanical faults. So the operation department has to refer those to the technological department. The technology department will analyze the problem with the machinery and purchases goods like oil and spare parts to maintain smooth functioning of the processes.

2.

3.

These are the three basic purchase needs in the company related to the core of the business operation. But the business involves lots of other aspects like unhindered and fluent information flow between departments. To enable such flow the company has to invest in office stationary and communication system. Office stationary is used by all departments so the purchase department purchase stationary for the whole organization from one supplier and keep on reordering it as per the need arises.

Business buying department is a lot different than consumer buying decision as it is a demand driven market with less price inelasticity. The market structure and duration of decision is also different. Business purchases involves more buyers in the decision making process and the purchasing efforts are undertaken by professional buyers which makes the whole process complex. While as mostly consumer buying behavior is one time deal business buying is a continuous endeavor to build long term relationships. As we found out while researching out business buying with garment manufacturer that it is more often than not taken by a committee in an organization rather than an individual. The whole decision making process starts from the recognition of need to general need description to product specification to supplier search to proposal solicitation to supplier selection to order routine specification and finally to performance review in influenced by various decision making units.

13

Fostering Client-Agency Relationships: A Business buying Behavior Perspective by Dr.J.David Lichtenthal (Baruch College) and Dr.David Shani (kean college of New Jersey) Account acquisition and retention is an ongoing problem facing advertising agencies. Literature in this area has focused on the criteria used in agency selection, the factors fostering continuity and the forces prompting the break up of client-agency relationships. However, this classic industrial service relationship has not been examined from a business-to-business buying behavior perspective. A study was conducted with top agency account acquisition personnel that determined the set of forces affecting organizational buying behavior has applicability to business services transactions. Directions for future research are noted and managerial implication for business-to-business new account acquisition and selling are also provided.

While researchers have focused on issues relating to agency selection and loyalty in client-agency relationships, they have primarily done so by studying specific organizational or individual level factors. However, many factors likely influence the client-agency relationship. For example. client industry norms and practices and the various roles within client firms are instances of factors that are neither organizational nor individual. What we need is a more comprehensive set of factors that also includes a broader range and variety of environmental and social forces affecting client-agency relations.

14

CHAPTER -3

3.1

Industry Profile

3.2

Company Profile

3.3

Department Profile

3.4

Product Profile

3.5

Organization Structure

3.1 Industry Profile

The use of Titanium Dioxide is very vast and it has been produced in various parts of the world at different levels, which include multinational companies as well as small scale companies. It is estimated that worlds total installed capacity for Titanium Dioxide industry is 90-91%. The higher demand in global market attracts various firms to enter into the Titanium Dioxide manufacturing.

3.1.1World Scenario
The credit of recognizing the existence of Titanium goes to Rev. William George who found traces of black magnetic sand unfamiliar to him in Manacine Parish (UK) and he called it Manacine. But it was M.K.H Lapalast who discovered Titanium. He examined Rutile and identified it as an oxide of metal and named it as Titanium after Titan of Greek Mythology in the year 1775. The first commercial product of titanium was an alloy additive to steel, when Ferro alloys were developed in USA in the year 1906. A decade after Titanium Dioxide pigment was produced on a commercial scale. The use of titanium minerals in welding electrode coating gained acceptance in the mid thirties while titanium metal has been of commercial importance since 1948. Titanium dioxide is far more stable than any other pigment. Its perfect non toxicity & chemical inertness make it an ideal choice as a white pigment. The light scattering property of finely divided Titanium Dioxide is unmatched by any other known material.

The chemical is available in two crystalline forms, viz. Anatase and Rutile, which are of much commercial significance. The relatively softer Anatase is the right material for delustering artificial fibers. In TTP Ltd. The Anatase grade is produced by the conventional sulphate technology.

Titanium Dioxide is the whitest of white pigments and has replaced other less effective pigments such as Zinc Oxide, Lithopone etc. This is because of the unique combination of its superior properties of a high refractive index, low specific gravity, high hiding power and opacity, and non-toxicity. It also has high tinting strength and dispersion properties as well as chemical stability. 15

Titanium Dioxide is produced in TTP in the ANATASE form and marketed as AJANTOX. Anatase grade possesses excellent water dispersion properties and gives a clear tone in all ranges of application. Travancore Titanium Products Limited has recently launched a Rutile Grade Titanium dioxide pigment viz., TTP RD-01. This product was developed in the year 2002 indigenously through the Sulphate route. TTP markets this product without surface treatment at a very competitive price. The top 5 producers of the world now control 78% of the global capacity. They are

The titanium dioxide market is unique in that while it is a product approaching 100 years old. There are still no functional alternatives that provide the same value in use of customers. The industry has gone through a metamorphosis in the past decade.

Titanium Dioxide enjoys a large market by any measure. Historically the market has grown in volume at 3.5% annually to reach close to $8 billion in production value today. In the last decade the demand has slowly downed to 3% and it is expected in the next decade growth will be in the range if 2.5% - 3.5%. Looking over the next 20 years, at least some new Titanium Dioxide pigment will be made through most of the industrial capacity will come from expansion.

3.1.2 National Scenario

The Indian reserves of ilmenite are expected to be around 6, 00,000 units/year and most important sources are South Kerala and Tamil Nadu. Beach reserves are also seen in Ratnagiri (Maharashtra), Ganjan (Orissa) and Sreekakulam (Andhra Pradesh). The reserves in Kerala and Tamil Nadu are about 20 million tonnes. This information throws light into the possibilities of new manufacturers and competition in Titanium Dioxide industry in the Indian market. The demand for the new manufacturers will be more, with the increased demand for the paints, plastics, rubber etc 16

3.1.2.1 Titanium Dioxide consumption growth in India

The Indian paint industry has recorded growth of around 8% during the previous years. The Indian paint industry is expected to expand to almost 1.6 and 1.75 million metric tonnes by the year 2005. The current per capita consumption of paints at around 5 kg as compared to between 15 kg and 20 kg in the developed countries, which leaves considerable potential in the overall demand for paint in India. Projected demand of Titanium Dioxide in India is based on 8% growth. Currently there are four units in India engaged in the manufacturing of Titanium Dioxide pigment (Rutile & Anatase) with a total combined capacity of 44560 metric tonnes per annum. These units are: Kollam.

KMML is the only unit producing Rutile grade Titanium Dioxide pigment in India with an installed capacity of 30,000 tonnes per annum.

This information throws light into the possibilities of new manufacturers and competition in Titanium Dioxide industry in the Indian Market. The demand for the new manufacturers will be more, with the increased demand for the paints, plastics, rubber etc.

3.1.3 State Scenario

At present in Kerala, TTP and the KMML are the only two manufacturers of which produces Titanium Dioxide pigment. Indian Rare Earth Limited (IRE) a government of India undertaking has a mineral separation unit in Chavara, which separates minerals from the beach sands. IRE also operates two mineral separation units, which are located from the beach sands. IRE also operates two mineral separation units, which are located in Manavalakurichi in Tamil Nadu and Chattarpur in Orissa.

17

Travancore Titanium Products was started by His Highness Chitra Thirunal in 1946 and Titanium Dioxide was produced using the Sulphide Procure Technology. Later the KMML situated at Chavara came into existence and started producing Titanium Dioxide with the help of HCL acid process technology.

3.2 Company Profile

India is the second largest growing economy in the world. This is equally applicable to Titanium Dioxide Industry. With worlds best quality mineral deposits, growth potential, India is a destination under focus and it is time to look at Titanium Dioxide industry scenario. Kerala Minerals And Metals Limited, a fully owned Kerala Government Enterprise, is the worlds first fully integrated Ti02 Plant. Since its inception KMML has made an indelible mark in the fields of mining, mineral processing and manufacturing. With the state of art factories at Sankaramangalam and Kovilthotham, KMML has won national acclaim for its impressive performance. KMML is Indias first and only manufacturer of rutile grade Ti02 by chloride route. The companys products are marked under the brand name KEMOX. KMML produces the pigments like KEMOX RC 822, RC800 PG, RC 800, RX 802, RC 813, RC 822 and RC 808. The products range includes ilmenite, rutile leucoxene and silmanite which are the basic raw materials for variety of industrial use.The present global demand of Titanium dioxide is about fifty million tonnes which is produced by 75 companies around the world. Of this 229 million tones of Titanium Dioxide is produced by Chloride route bye 26 companies; remaining 21 million tonnes are produced by 45 companies through the process of sulphate process. And KMML is the worlds first fully integrated Titanium Dioxide plant. Another major advantage of this plant is that it is the only integrated plant located at the raw material site in the world.

The history of the beaches of Sankarmangalam and nearby areas is inextricably intertwined with the history of the precious beaches and KMML. Precious, as was discovered in 1909 by the German scientist Dr. Schomberg who found traces of monazite in the sand flakes on the imported coir from Sankaramangalam. The beaches with a wealth of rare earth minerals.

18

By 1932, a visionary private entrepreneur established the F. X. Perira and Sons (Travancore) Pvt. Ltd, the forerunner to KMML. During the course of time, KMML changed hands three times over. In 1956 it was taken over by the state government and was placed under the control of the industries department. The unit was subsequently converted as a limited company in 1972 by the name of The Kerala Minerals and Metals Ltd.with the following broad objectives.

1.Optimum utilisation of mineral wealth found along the sea coast of Kollam-Alappuzha Districts. 2.Large scale generation of employment in the state in general.

3.Overall growth and development of the local area in particular and the state in general. The construction of Titanium Dioxide Pigment using chloride technology started in 1979. The same was commissioned in 1984 as the first and only integrated Titanium Dioxide Plant in the world. Today, with over 2000 employees and a range of products, KMML has become part and parcel of local and international life.

3.2.1 Growth of the company

1974 Letter of Indent for the production of 48,000 tonnes of Titanium Dioxide Pigment through Chloride process technology. Collaboration agreement with: Benelite Corporation of America, USA Synthetic Rutile Plant. Woodall Duckham, U.K Acid Regeneration Plant Kerr McGee Chemical Corporation, USA Titanium Dioxide Pigment (Chloride process) 1979 Construction of plants started at Sankaramangalam, Chavara, Kollam

19

1983 R&D recognition for KMML laboratory by DSIR. 1984 Commissioned the first fully integrated Titanium Dioxide Pigment Plant in the world. Launched for the first time in India, Rutile grade Titanium Dioxide Pigment under Trade Name: KEMOX RC-822. 1992 Launched another grade of Titanium Dioxide Pigment KEMOX RC-800. 1992 Launched Plastic Grade Pigment KEMOX RC-800 PG. 1992 1992 Won the First National Award for in-house R&D efforts in Industry for Technology Absorption under TAAS programme by DSIR 1997 A new grade of pigment for the new water based paint application was introduced KEMOX RC-813. 1998 Launched another improved grade pigment KEMOX RC-822SG (Renamed as KEMOX RC-802) 1998 Commercial production of Iron Oxide Bricks from the waste Iron Oxide an innovative development by in-house R&D.

20

1998 Supported Combustion Process was successfully commissioned in one of the streams in the Oxidation Plant. This In-house developed process is a significant break through which enables KMML to improve productivity of the plant and for further capacity enhancement. 1999 Bypass system in both streams and support combustion in other streams was also commissioned. 1999 Erected and commissioned one more Chlorinator in Chlorination section. 2003 New modern Lime Preparation Plant (LPP) for effluent neutralization was commissioned. 2004 Commissioned new DM Plant and added two more digesters in IBP. 2004 Commissioned a new product packaging machine, modern energy efficient filter and drier system, DCS system in Unit-400. 2005 World class quality management systems like ISO 14001 and OSHAS-1800 implemented 2006 Capacity enhancement to 40,000MT 2006 Foundation stone laid for Titanium sponge plant 21

2007 Commissioned Recovery cyclone 2008 Commissioned new ETP sludge and Oxide pond 2009 Development of Nano Titanium Dioxide particles in laboratory scale. 2010 Commissioned the Enhahced Zircon Recovery plant at MS Unit. 2011 Indias first commercial titanium oxy chloride pilot plant commissioned on 16/6/2011 2011 Indias first commercial plant for synthesis of nano titanium dioxide commissioned on 19/7/2011 2011 Commissioned the Siliminite Recovery Sysytem at MS Unit 2011 Started the sale of Siliminite. --on 18th August 2011 2011 Birth of First Batch of Titanium Sponge on 06.09.2011

22

3.2.2 Achievements of the company

GLOBAL RECOGNITIONS

International Gold Medal Award for Quality & Efficiency from UK in 2003 APCJ Award from Asia Pacific Coating Forum for the Best International Marketing Campaign - May 2003 STANDING TALL

Award for R&D efforts in Industry FACT MKK Nair Memorial Productivity Award Energy Conservation Award FACT MKK Nair Memorial Productivity Award FACT MKK Nair Memorial Productivity Award Energy Conservation Award CAPEXIL Award for best export performance

1992 1993 - 1994 1999 1999 - 2000 2000 - 2001 2001 2003, 2005 2004 &

Award for best revenue Performance- Govt. of India (National)

2003 & 2004

Special Awards for Exports from Chemicals and Allied Export Promotion Council (CAPEXIL) - 3rd time consecutively.

23

3.2.3

Directory board of KMML

Shri. T. Balakrishnan. IAS(Retd) Chairman KMML, Chavara - P.O, Kollam, Kerala

Shri.Alkesh Kumar Sharma. IAS Managing Director KMML, Chavara - P.O, Kollam, Kerala Tel: +91 476 2687117 (O)

Shri. Director

Sanjay

Garg,

IAS Shri. Director Special

Elias

George,

IAS

Secretary,Finance(Expenditure), Finance Govt.of Thiruvananthapuram.

Commissioner, House,

Department, Keral Kerala, New Delhi.

3.3 Department Profile

A business organization has to perform a number of activities in order to run itself; in functional form of departmentalization an organization groups functions or activities into primary departments. The application of functional form of departmentalization means grouping activities into departments of production, marketing, human resource development and finance. The various departments of KMML are Marketing Department Personnel Department Finance Department 24

Material Department Fire and Safety Department Maintenance Department Project Department Data processing Department Research and Development Department Utility Department

3.3.1 Marketing Department

The main objective of the marketing department is to promote distribute sell and serve the products of the organization. The activities of the marketing department include sales management, sales analysis, market research and intelligence, advertising, new product development, product pricing and customer service.

3.3.1.1 Marketing Network of the Company

The marketing network of KMML is spread worldwide. KMML exports to the developed and developing nations and has earned a two star rating as an exporting house. The web of over 30 offices servicing 50 odd nations is the backbone of the marketing network. KMMLs products are supplied to industries all over the globe, including countries like China, Korea UK, Philippines, South Africa, Turkey, Mauritius, Dubai and Sri Lanka. At KMML, customer is the king. A team of motivated marketing experts, who make it their business to find out your views, highlights our customer consciousness. Maintaining close contacts, they are perfectly aware of the customers needs and are instrumental in offering world-class services and prompt attention to your every requirement.

Major customers in the domestic market are served directly by the company. KMML has an all India network of 28 stockiest to meet requirements of our customers. 25

3.3.1.2 Marketing Department Structure

PEON STENO GENERAL MANAGER

STENO

A.G.M (MARKETING)

MANAGER MARKETING

DY MANAGER (MARKETING)

MARKETING OFFICE ASST. ADMINISTRATIVE OFFICE

STENO

STENO

STENO

STENO

Chart: 1

3.3.2 Personnel Department

Human Resource Management is defined as the set of activities, programs, and functions that are designed to maximize both organizational as well as employee effectiveness. It comprises of the functions and the principles that are applied to retaining, training, developing, and compensating the employees in the organization. Personnel department is concerned with people dimensions in the organization. There are around 2000 employees working in the company. Deputy General Manager (P&A) is the head of the department. Regular training and refreshment courses are the part of the company life. The courses which include quality consciousness and safety awareness contribute to personality development. 26

3.3.3 Production Department

KMML maintains a high standard of perfection by achieving technical excellence in very phase of production catering to strict guideline. KMML provides a wide range of products to quality conscious customers. This department undertakes activities and decisions regarding the production work. Deputy General Manager (P&M) controls the activities of this department.

3.3.4 Finance Department

Finance system ensures adequate organizational financing at a low cost so as to maximize returns. It consists of major functions such as granting credit to customers, collection process, cash management, financing capital and soon.

3.3.5 Materials Department

The materials department has three sections Purchase department Stores department Stores control Materials record

3.3.6 Fire and Safety Department

Fire and safety department has a very important role to play; they are responsible for perverting accidents that occur to production plant during the operation. This department is primarily responsible for creating safety awareness among employees and also to produce and distribute safety equipments.

27

3.3.7 Maintenance Department

The maintenance department is in charge of electrical, mechanical, civil, instrumentation sections. It is headed by the joint general manager, for the smooth running of machines and uninterrupted supply of power. The maintenance department is also responsible for inspection of valves and prevention of leakage of acids and poisonous gases. This department is also responsible for installation of new machinery.

3.3.8 Project Department

The project department is engaged in the formulation of future projects and conducting feasibility study for the management. They make plans for the expansion of the company and also make way for launching of new products.

3.3.9 Data Processing Department

This department is under the control of Assistant GM. MIS is under the control of this department. There are personal computers in the company. Sixty of them are connected to IBM main server. KMML issued an Oracle based DBMS. The data base is fed to the system by each department which is required to generate various MIS to the management.

3.3.10 Utility Department

The department is under the control of Assistant GM. The utility consists of stream, compressed air and water. Two boilers having a capacity of 33 tons per hour supply the steam. The compressed air for the plant and instruments are supplied as a pressure of 8kg/cm 2. Production of oxygen is also under the supervision of this department.

28

3.4 Product Profile

KMML always maintains high standards of perfection, achieving technical excellence in every phase of production. Catering to strict guidelines, KMML offers a wide range of products for quality conscious customers. Our products go into the manufacture of a variety of products used in everyday life. Dress materials, facial creams, tablets, newsprints, wood paints, emulsions, enamels, plastics, tooth paste, rubber products, cosmetics, and printing ink All contain titanium dioxide. Believe it, you need our products to brighten your life.

Titanium Pigment(Rutile)

Dioxide

KEMOX RC 800 KEMOX RC 802 KEMOX RC 808 KEMOX RC 822 KEMOX RC 800 PG KEMOX RC 813

Titanium Tetra Chloride Ilmenite Rutile Leucoxene Zircon Sillimenite Monazite

29

3.4.1 Process done in Company

The Kerala Minerals and Metals Ltd (KMML) is the worlds first fully integrated Titanium Dioxide Plant. KMML is also Indias first and only manufacturer of Rutile Grade Titanium dioxide by chloride process.

The Process in Brief: Titanium dioxide (TiO2), also referred to as Titania, is a substance as old as the earth itself. Titanium dioxide is readily mined in its purest form from beach sand. The beaches of Sankarmangalam and nearby areas in Kollam are inextricably intertwined with the history of this substance and KMML. Dr. Schomberg, a German Scientist, discovered in 1909 traces of monazite in the sand flakes on the imported coir from Sankaramangalam. The beaches with a wealth of rare earth minerals became the centre of scientific attraction. KMML is the worlds first fully integrated Titanium dioxide plant. Established in 1932 as F. X. Perira and Sons (Travancore) Pvt. Ltd., by a visionary private entrepreneur, it was taken over by the State Government in 1956, and became a public limited company in 1972 in the name The Kerala Minerals and Metals Ltd. (KMML). Titanium Dioxide is essentially harvested from sea. The Mineral Separation Unit (MS Unit) of KMML is engaged in the separation of Ilmenite, Rutile, Leucoxone, Monazite, Silliminite etc from the beach sand. The MS Unit employs Gravitational, Magnetic & High Tension Electrostatic Techniques for separation of minerals from the sand. Raw Ilmenite is chemically processed to remove impurities such as iron, leaving the pure, white pigment available for use. KMML is Indias first and only manufacturer of Rutile Grade Titanium dioxide by chloride process. The chloride process produces TiO2 products by reacting titanium ores with chlorine gas.

30

The chlorides of impurity metals are removed from Titanium Tetra Chloride (TiCl4) through various processes to complete the recovery of TiCl4. It is further purified by distillation to obtain pure Titanium Tetra Chloride in the liquid form which is stored in storage vessels. Titanium Tetra Chloride is vaporized, pre heated and oxidized with oxygen in the Oxidation Plant to produce raw Titanium Dioxide at a high temperature. Beneficiated Ilmenite (BI) is the raw material for the Pigment Production Plant. BI from Ilmenite Beneficiation Plant is chlorinated in the Chlorination Plant to produce Titanium Tetra Chloride (Tickle). Chlorine reacts with Titanium Dioxide and other metallic oxide impurities in BI in the presence of petroleum coke at a temperature of 9000C in a fluidised bed chlorinator to produce chlorides of Titanium and other impurity metals. The raw Titanium Dioxide is then classified and surface treated with various chemicals, filtered and washed to remove the salts, sent to the dryer and then to the microniser, in the Pigment Surface Treatment & Finishing Plant. The Titanium Dioxide pigment (in powder form) is subsequently packed. The plant uses recycling and regeneration methods at various levels of processing, including acid regeneration, which ensures negligent pollution. Responsible harvesting from the seas reaffirms our commitment to the environment.

3.4.2 Applications of the Products

KEMOX RC 822 from KMML is a multiple application pigment, which is in great demand in the world market. We also produce other grades of Titanium Dioxide pigments like RC 800 PG, RC 800, RC 802, RC 813, RC 822 and RC 808. Minerals like Zircon and Monazite are used in the development of Nuclear Technology. We manufacture Iron oxide bricks from the waste Iron Oxide, which is used for building purpose.

The KMML Titanium pigments are reputed for their high degree of gloss, tint retention capacities and ease of dispersion.

31

Following are some of the major / common applications of the products that we manufacture:

TITANIUM DIOXIDE PIGMENT (RUTILE) Paints Printing Inks Plastic Paper Rubber Textiles Ceramics TITANIUM TETRA CHLORIDE Titanium Dioxide Pigment Titanium Dioxide Pigment Titanium salts Butyl Titanate Titanium Oxychlorides ILMENAITE Synthetic Rutile Titanium Tetra Chloride Ferro Titanium alloys Welding electronics Titanium Dioxide pigment Titanium salts SILLIMANITE High temperature refractory Ceramic industry 32

LEUCOXENE Welding electrodes Titanium Dioxide pigment Titanium Tetra Chloride Titanium Compounds MONAZITE Rare earth industry Nuclear technology RUTILE Welding electrodes Titanium compounds Titanium Dioxide Pigment Titanium metal/sponge Titanium Tetra Chloride ZIRCON Ceramics Foundries Refractories Zirconium Chemicals Zirconium metals Nuclear technology IRON OXIDE BRICKS As building Material

3.5 Organization Structure

Chart: 2 33

CHAPTER -4

Data Analysis And Interpretation

4. Data Interpretation and Analysis

4.1 Nature of the organization

Table: 4.1

Organizations

No of responses

Percentage

Co-operative Public Private Partnership Total

8 2 29 11 50

16% 4% 58% 22% 100%

nature of the organization

co-operative public private partnership

Chart: 4.1 Interpretation The consumers of KMML consist of 8 co operatives, 2 public companies, 11 partnership companies and 29 private companies. 34

4.2 Materials sourced by companies from KMML for years

Below 5 years-14 companies Table: 4.2 Range Below 5 years Between 5-10 years Above 10 years Total Between 5-10 years-31 companies Above 10 years-5 companies Number of responses 14 31 5 50 percentage 28% 62% 10% 100%

35 30 25 20 15 10 5 0 for 5 years between 5 to 10 years above 10 years

Chart: 4.2 Interpretation 14 consumers of KMML started buying goods since last 5 years onwards 31 companies belongs to the years in between 5 to 10 and above 10 there remains only 5 customers. 35

4.3 Customer category

Table: 4.3 Category Major customer Stockist Other category Total Responses 14 27 9 50 Percentage 28% 54% 18% 100%

30

25

20

15

10

0 major customer stockist other category

Chart: 4.3 Interpretation The customers of the KMML can be divided into 3 they are major customer which are 14 in numbers, the stockiest of the company is 27 in number and rest belongs to the common category which is 9 in number 36

4.4 Grades which are mostly sold

Table: 4.4

Grades Used Rc822 Rc808 Rc800pg Rc800 Rc804 Rcc813 Rc802 Total

Responses 16 12 8 5 4 1 4 50

Percentage 32% 24% 16% 10% 8% 2% 8% 100%

18 16 14 12 10 8 6 4 2 0 RC822 RC808 RC802 RC800PG RC800 RC804 RCC 813

Chart: 4.4 Interpretation The mostly used grades are RC 822 (16) RC808 (12) RC 802 (4) RC 800PG (8) RC 800 (5) RC 804 (4) RCC 813 (1)
37

4.5 Satisfaction with the product

Table: 4.5

Level Highly satisfied Satisfied Dissatisfied Total

Rate 20 27 3 50

Percentage 40% 54% 6% 100%

Series 1

Chart: 4.5 Interpretation Out of 50 customers 20 are highly satisfied, 27 are quite satisfied and 3 are dissatisfied with the products of KMML

38

4.6 General terms of purchase

Table: 4.6 Terms of purchase Cash Through the bank Credit Total Responses 18 6 26 50 Percentage 36% 12% 52% 100%

30

25

20

15

10

0 cash credit through the bank

Chart: 4.6

Interpretation Out of 50 customers 18 customers buy the products of KMML rendering direct cash 26 does it by credit and rest 6 buy through bank dealings

39

4.7 How often do you buy products

Table: 4.7

How often Twice in month Once in month More than twice Total

Responses 9 39 2 50

Percentage 18% 78% 4% 100%

45 40 35 30 25 20 15 10 5 0 once in month twice in month more than twice

Chart: 4.7

Interpretation Out of 50 customers 9 companies buys products twice in a month 39 companies buy only once in a month and 2 companies buy more than twice in a month.

40

4.8 Quantity bought by a consumer at a time

Table: 4.8 Tonnes brought 50ton to 1000kg 1ton to 100ton 100ton to 1000ton 1000 and above Total Responses 4 15 28 3 50 Percentage 8% 30% 56% 6% 100%

30

25

20

15

10

0 50-1000kg 1 ton-100ton 100to1000ton 1000 above

Chart: 4.8

Interpretation Out of 50 customers 4 companies consumes between 50 1000 kg at a time, 15 customers consumes 1ton to 100 ton at a time, 28 customers consumes 100 to 1000 tons at a time and 3 customers consume 1000 or above at a time.

41

4.9 How do you feel delivery of product

Table: 4.9

Rate Satisfied Highly satisfied Highly dissatisfied Dissatisfied Total

Responses 38 5 2 5 50

Percentage 76% 10% 4% 10% 100%

40 35 30 25 20 15 10 5 0 satisfied highly satisfied highly dissatisfied dissatisfied

Chart: 4.9

Interpretation 38 customers out of 50 are satisfied with the delivery of the product and 5 are highly satisfied and 2 are highly dissatisfied and 5 are dissatisfied with the delivery of the products.

42

4.10

Are you satisfied with the availability of product

Table: 4.10

Rate Satisfied Highly satisfied Highly dissatisfied Dissatisfied Total

Responses 31 15 3 1 50

Percentage 62% 30% 6% 2% 100%

35 30 25 20 15 10 5 0 satisfied highly satisfied highly dissatisfied dissatisfied

Chart: 4.10

Interpretation 31 customers out of 50 are satisfied with the availability of the product and 15 are highly satisfied and 3 are highly dissatisfied and 1 is dissatisfied with the availability of the products.

43

4.11

Awareness about the ISO 9001 certification

Table: 4.11

Ratings Yes No Total

Responses 21 29 50

Percentage 42% 58% 100%

4.11.1 If so is there any improvement after the certification

Table: 4.11.1

Ratings Yes No Total

Responses 15 35 50

Percentage 30% 70% 100%

40 35 30 25 20 15 10 5 0 known customer21 unknown customer Series 1 if so improvement yes no improvement no

Chart: 4.11

Interpretation 42% customers are aware of the ISO certification and 68 are not aware and out of 42% customer 30% say that there is an improvement after certification and others say no improvement.
44

4.12

Rating of factors affecting the buying behaviour

Table: 4.12

strongly Nature economic developments supply conditions political developments regulatory changes agree 30 21 39 19 agree 6 11 5 8 neutral 5 7 2 13 disagree 4 8 5 7

strongly disagree 5 2

competitive developments culture and customs objectives and policies of org organization structure characteristics and feelings of buyer
45 40 35 30 25 20

26 17 38 31

10 6 8 1

8 19 2 11

4 4 2 5

2 4

11

29

agree 15 10 5 0 strongly agree neutral disagree strongly disagree

Chart: 4.12 45

CHAPTER -5

5.1

Summary

5.2

Major Findings

5.3

Suggestions

5.4 5.5

Conclusion Scope for further research

5.1 Summary

The buyers of KMML constitute from various parts of the country as well as from outside the nation. Thus the geographical influences that the each buyer faces are quite different. The factors that mainly affect the buyers are the socio political changes as well as the competitive changes. In the current situation of global slowdown and dynamic changes the buyers psychology also changes in the buyers behavior. Being a nearly monopolistic player in India KMML may go to complacency towards the dynamic business buyers psyche, which can prove dangerous to the companys current position and can lead to competitive advances from the foreign competitors. This is the company which provides world class product and services. One of the most important positive parts from the side of this company is that of the payment system. A bulk customer is given a credit based payment to the company (45 days free of interest base). And certain discount terms are included for the promotion of the customers which include a customer which buys more than 500 tones will get each reduction of 7000 on each kg and it will be credited on the customers bank account on the next month first.

5.2 Findings

Stockiest are happy with the credit system which is prevailing Top players in the paint industry enjoys more benefit Moreover almost all the customers of the company are satisfied with the policies Stockiest are satisfied with the delivery and also the availability of the products Kmml has a high reputation among the stockiest The marketing techniques used for promotion of products is highly effective Overall the stockiest are happy with the dealings of the company

46

5.3 Suggestions
Company should go for more advertisement for their products Company should promote local players and should give them special concern Should maintain the quality, packaging, delivery of goods in the present condition The communication should be made strong in order to maintain the stockiest with the company Stockiest should give promotional activities other than credit and reduction Products awareness should be given to the local players also

5.4 Conclusion
The company offers best services to the stockiest as well as the customers in all fields. Most of the stockiest and customers are satisfied by the services and facilities offered by KMML. This satisfaction can be concluded by the response of stockiest in the questionnaires. Day by day KMML is improving his reputation in the market. KMML continues to occupy an important place among the public sector undertaking in the country. The higher demand in global market attracts various firms to enter into the Titanium Dioxide manufacturing. In short the customer promotion method as well as the handling of each dealer will make the company to progress a lot and surely it will the most important player in the world.

5.5 Scope for further research

As the behavior of stockiest varies according to the socio economical and political changes there is a wide scope for further study. there is a scope to analyze how the political changes affects the business buying behavior as well as a study can be done on how the social changes can affect the buyer

47

BIBLIOGRAPHY

BIBLIOGRAPHY BOOKS
1. Kothri C R research methodology (2nd revised edition 2007), New age international publishers-New Delhi -110 022 (pp 955-112,184-192) 2. Kotler Philip marketing management, eleventh edition: New Delhi, 2004, Prentice hall of India P ltd, New Delhi 3. Ramaswamy V.S, S Namakumari marketing management,3rd edition, Macmillan India Ltd.,

ONLINE SOURCES
www.kmml.org
http://en.wikipedia.org/wiki/Marketing#Buying_behaviour http://www.slideshare.net/mehmetcihangir/business-markets-and-business-buyer-behaviorpresentation http://tutor2u.net/business/marketing/buying_introduction.asp

APPENDIX

Questionnaire
1) Please write the name and nature of your organization a) Co-operative b) public c) private d) partnership

2) For how many years the materials is sourced from KMML by your company?

a) Below 5 years

b) 5 to 10 years

c) above 10 years

3) Which customer category you belong to? a) Major customer b) stockiest 4) Which grades of Tio2 is mostly purchased by you? a) RC822 b) RC808 c) RC802 RC800 f) RC804 g) RCC 813

c) other category

d) RC800PG

e)

5) Are you satisfied with the pricing policy followed by KMML a) Highly satisfied b) satisfied c) dissatisfied 6) What is your general terms of purchasing a) Cash b) through bank 7) How often do you buy the products a) Twice in month b) once in month 8) How much quantity you buy at a time a) 50-1000 kg b) 1-100 tones above 9) How do you feel about delivery of product a) Highly satisfied b) satisfied dissatisfied

d) highly dissatisfied

c) credit

c) more than twice

c)100-1000

d)1000 tone

c) dissatisfied

d) highly

10) How do you feel about availability of product b) Highly satisfied b) satisfied c) dissatisfied d) highly dissatisfied 11) Are you aware of ISO-9OO1-9OO2 certificate of KMML a) Yes b) No a) If so is there any improvement in KMML products after getting ISO certificate a) Yes b) No

VI

Rate the following questions based on the given points 1234Strongly agree Agree Neutral Disagree

5- Strongly disagree 12) The Economic developments highly influences the buying behavior

13) The supply conditions play a leading role in buying behavior

14) The political developments affect the buying behavior

15) The regulatory changes influences the buying behavior

16) The competitive developments changes the buying pattern

17) The culture and customs of the countries affect the buying behavior

18) The objectives and policies of the organization play an intrinsic part in buying behavior

19) An organizations structure is one of the most important factor which influences the buying behavior 20) Characteristics and feelings of the buyer affects the buying

VII