Soumallya Project Final(Summer Internship)

A STUDY TO FIND UNDERLYING FACTORS BEHIND HAND TOOLS PURCHASE & POTENTIAL OF STANLEYWORKS IN KOLKATA HANDTOOLS MARKET

Table of Contents SERIAL NUMBER 1 2 3 4 5 6 7 8 9

CONTENTS Executive summary Company profile Literature review Methodology of study Statement of objective Research Data analysis Results and interpretation Finding and

PAGE NUMBER 7 8 16 25 42 42 48 49 69

10 11

recommendation Bibliography & references Annexure

73 74

1

List of Figures Serial number 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Content of figure Stanley works SFS Growth story Consumer tools Industrial tools Golden hammer award Brands acquired by Stanley Geographical reach in India Market share Frequency of purchase Usage of hand tools Worth of inventory procured Source of information Satisfaction level

Page no. 8 9 10 10 11 13 14 15 49 50 52 53 54 55

15

Scree plot

63

List of tables Serial no. 1

Content Hand tools market share

Page number 49 2

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Frequency of Hand tools Usage of hand tools Worth of inventory Source of information Awareness about the product Satisfaction level Descriptive statistics Correlation matrix 1 Correlation matrix 2 KMO Barttlet Table 1 KMO Barttlet Table 2 Anti image matrix Total variance explained 1 Total variance explained 2 Communalities Rotated component matrix Reliability analysis table 1 Reliability analysis table 2

50 51 53 54 55 55 58 58 59 59 60 61 62 63 64,65 65 67,68 69

EXECUTIVE SUMMARY

3

Stanley works India pvt. Ltd is a subsidiary of United States based multinational organization Stanley works ltd engaged in manufacturing & marketing of hand tools, electronic tools, masonry tools, residential entry door hardware, consumer residential hardware, consumer mechanics tools, and pneumatic precision assembly tools. Indian operation started in late 2007 to take advantage of robust industrial growth & emerging market space. Company is in its nascent stage, the processes are yet to be in place & operations are not focused to the fullest extent. Company is experiencing challenges in areas like increasing market share, inventory management, larger lead time in shipment, encountering competitors and locating potential in the market (Kolkata). Two months duration of summer internship process was dedicated to generate sales for the company and to study the factors playing crucial role behind hand tools purchase. Thus finding out shortcomings of Stanley works and recommending suitable solution to its problems. The methodology involved data collection through questionnaire preparation and analyzing those data by excel graphs (pie chart) and factor analysis by SPSS software to reach a suitable conclusion. On the basis of these observations, certain recommendations are submitted at the end of this report. Some important one’s are- use of e-marketing, having a marketing calendar and sticking to it, starting of newsletters and having a regional office ,plan for an acquisition and tagging up with an automobile company amongst others. If accepted, a few of these suggestions can result in a low-cost solution to the brand awareness problems we face and harness more sales in the coming years to give Stanley an opportunity to expand it’s business in this region.

Chapter I 4

INTRODUCTION: 1.1: Company Overview: The Stanley Works, a 166 year old company is a worldwide manufacturer and marketer of tools, hardware and specialty hardware products for home improvement, consumer, industrial and professional use. The company stills bears not only Frederick Stanley's name but also the spirit and passion that drove him to succeed where others failed .The Stanley Works is positioned to meet tomorrow's competitive challenges and continue as a leading worldwide manufacturer and marketer. Our businesses are Diversified in terms of products, geographic spread and channels of distribution. We have moved effectively to expand our products into new market areas such as the Far East and Eastern Europe.

FIG: 1 Today, the Stanley name is known around the world as a reliable, guarantee of quality and value."The secret of this company's success is an open one -- all who will may avail themselves of it, and all who do so will succeed -- one word tells it all and that one word is – Excellence. The Stanley Fulfillment System (SFS), created to encompass and improve upon Stanley’s long Tradition of operations excellence is the heart of our business operations. It’s a continuous Improvement program focused 100% on the needs of our customers and a comprehensive business system that guides the way we work every day. SFS is at once our blueprint for success and our roadmap for continued growth. At the heart of SFS are three simple, customer friendly goals: 1. Improve Service 2. Increase Quality 3. Reduce Costs 5

Service, quality and costs have always been strengths at The Stanley Works. SFS is our Commitment to making them even stronger.

FIG: 2

1.2: Growth: In 1843, an enterprising businessman named Frederick Trent Stanley established a little shop in New Britain, Connecticut to manufacture door bolts and other hardware from wrought iron. Mr. Stanley was the first Mayor in town; he brought New Britain rail service, gas lighting and a reservoir-fed water supply. In 1930, Stanley invented the tape rules. Stanley tools have built nearly every home, school, church and hospital in maraca. Stanley Air tools build nearly every car and truck made in North America. Millions pass through Stanley Automatic Doors each day. With products sold in more than 130 countries, the Stanley® brand is recognized worldwide. From crisis comes OPPORTUNITY. The chance to emerge BETTER than ever before. By remaining committed to our guiding PRINCIPLES and Transforming a LEGACY established over a century ago. Today’s Stanley is lean, flexible, diverse, and focused on long term GROWTH. Today’s Stanley is READY for tomorrow.

6

FIG: 3 1.3: Stanley Platforms: A) Consumer Tools. A world leader in the design, development and delivery of tools, Stanley brings to market the strongest and most innovative tools available. With thousands of products on the market and hundreds introduced each year, Stanley develops the tools consumers need to get the job done.

7

FIG: 4

Product categories: Industrial hand tools and tool boxes, professional and industrial mechanics tools, electronic diagnostic tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and crushers.

FIG: 5

B) Security Solutions: An industry powerhouse with a global footprint, Stanley Security Solutions builds on Stanley’s development of the first automatic door with integrated solutions that provide wall-to-wall security, including doors, hardware, software and service. Stanley’s Security Solutions protect buildings, airports and institutions all over the world.

8

Key Brands: Best® Access, Black®, co rush™, Frisco Bay™, HSM Electronic Protection Services, Integrator.com™,

ISR™

Solutions,

Sergeant

&

Greenleaf™,

Safe

masters®,

Senior

Technologies™,Stanley® Access Technologies, Stanley® Hardware The Stanley Security Solutions Product Group offers a wide array of electronic security products, Mechanical security products, integration software, and installation and support services for a diverse set of industrial, institutional, and commercial facility applications. Electronic security, access and safety products manufactured and tested to the industry’s highest standards for functionality and long life. Applications include schools, banks, retail stores, hospitals, government agencies, manufacturing facilities, colleges and universities, and utilities, to name a few. Mechanical security products include patented keying, customized master key systems and quality door and lock hardware. These combine to supply customers with mechanical access control that is costeffective and efficient. C) Industrial Tools: With our powerful professional tools, Stanley’s Industrial Tools Group delivers big tools for big jobs. Recognized as leaders in Industrial Tools, our family of brands builds everything from cars and trucks to roofs and floors. Key Brands Stanley®, Proto®, Husky®, Vida®, ZAG®, MAC®, Jensen®, Contact East®, Bo stitch®, Taro®, Robotics®, LaBounty®, Innerspace® Product categories: Industrial hand tools and tool boxes, professional and industrial mechanics tools, electronic diagnostic tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and crushers. 1.4: Awards & Recognition: A steady stream of new and innovative products is the lifeblood of this company. In 2007, Stanley introduced more than 100 new products, many of which have won awards for great distinctions. The 9

company itself has been triumphant in winning numerous awards throughout the years for packaging, design innovation, communication and advertising. Most recently, Stanley won 4 Golden Hammer Awards in 2007 and also won two IDEA awards in the 2007 International Design Excellence Competition.2007 Golden Hammer Awards Presented by Home Channel News, Stanley was the recipient of the following four awards at the 2007 Golden Hammer Awards Ceremony:  The Vendor of the Year Award.  The Innovator of the Year Award for overall new product development in all categories.  The Gold Golden Hammer Award for the Hand Tools category.  The Business to Consumer Communications Award for the Alien commercial featuring the Stanley® MaxLife™ 369™ Tripod Flashlight.2006 Golden Hammer wards Stanley was the only multiple award winner at the 22nd Annual Golden Hammer wards Ceremony, presented by Home Channel News. The awards, based on votes from retailers and buyers, were handed out at a ceremony in Las Vegas at the 2006 National Hardware Show. Stanley won:  The Gold Golden Hammer Award for the Hand Tools category.  The Business to Consumer Communications Award for the Stanley® Sharpshooter® Staple Gun World's Weakest Man campaign. The Innovator of the Year Award for overall new product development in all categories.

FIG: 6

Both the Gold Golden Hammer for the Hand Tools category and the Business to consumer Communications awards are the highest awards in their category. For the Innovator of the Year award, Stanley was voted number one in new product innovation across all 36 product categories. 1.5: Brands Acquired:

10

Our innovative Consumer and Industrial products help people utilize their skills, express their creativity and realize their visions on work sites around the globe. Brand names include Stanley®,FatMax®, Husky®, Goldblatt®, Bostitch®, Jensen®, Mac®, Proto®, La Bounty®, Vidmar®,CST®, David White® and ZAG®. Our Security Solutions brands include Stanley®, Best®,Blick® and Frisco Bay®.

FIG: 7

1.6: The India Story: Stanley India, a fully owned subsidiary of Stanley Works, U.S. having its head quarters in Delhi, started its operations in the year 2007. They import their own products manufactured in different countries and 11

sell those in Indian Market with the help of its extensive chain of distributors & dealers. In the past one year, Stanley has been able to appoint more than 170 + distributors all over India. All the products of Stanley are categorized into 3 segments: Hand Tools, Hardware, Assembly technology and Hydraulics. In India, Stanley has launched nearly 2400 products, and is in the process of launching more. Presently, Stanley India is focusing on Industrial Tools and Hardware business in India. Some of the valued customers of Stanley India are Tata Motors, Aortal, Nokia, Mahindra,DMRC, etc. The Indian operations of Stanley is involved the · Laser Products · Hardware · Hand Tools · Proto Geographical Reach in India:

12

FIG: 8 Stanley Head Office (Delhi-blue) Stanley India Warehouse (near gorgon-yellow) Proto Distributor (green box) Hardware Distributor (yellow box) Stanley Hand Tools Distributor (red dots)

Chapter II: 13

LITERATURE SUPPORT: A) Introduction to Hand Tools: The most popular product category is hand tools. The tools, which are operated by hands, are known as hand tools. Hand tool products include a broad category of hand tools. Hand tool products are broadly used in all type of industries. Today technology has become highly advanced but still the importance of hand tools products cannot be ignored. In fact hand tool products are the backbone of all the industries; no matter how advanced are the machines and technology used there. No industrial process can be executed without using hand tools. As machine can never replace importance of mankind the same way automatic tools can never take place of hand tools. The use of hand tools is must in every kind of industrial job but sometimes it is not promptly noticeable. Even if the entire process is executed by automatic tolls and machine, then too hand tools are required for additional jobs like packing, finishing etc. Furthermore the Efficient working of machine is also dependant on hand tools. Hand tools are essentially required For repair and lubrications of machines. Apart from this they are widely used for home repairs, garages, electrical appliances etc. A kit full Of primary hand tools products may be easily found at any home. Hand tools are used to execute Very complex as well as simple tasks. Screwdriver is such a common hand tool product, which is The part of every engineer’s tool kit as well as in every household. Spanners, screwdrivers, pliers, Clamps, riveters, wrenches etc., are used for tightening and riveting the various screws etc. Hand tool products are designed to carry easily. That’s why every vehicle has its own set of hand Tool products. It can be used in time of any breaking of machine where one does not find any help. Hand tool is a savior in time of need. A kit of hand tools products is like a first-aid box for Machinery.

2.1: Hand tools Market: 2.1.1: Indian hand tools market: India has a competitive advantage in the hand tool industry compared to other countries because Of easy availability of raw materials, entrepreneurship skills and skilled labor at competitive 14

Wages. The hand tool industry as a whole is witnessing a shift of manufacturing base from Traditional manufacturing countries in Europe and Taiwan to the developing world and this is a Good sign for India to benefit. There has been an average growth of 17% per annum of the hand Tool market in India for the last 7 years. Estimated No. of Units in India 2500 SSI Units

 95%

Large Units

7

Estimated number of workers  25000 Major Manufacturing regions Jallandhar/Nagpur 2.1.2: US hand tool market: The U.S. hand tool industry is estimated to be a $6.2 billion. Hand tool demand, including power tool in the United States is expected to rise 3.1% annually through 2011, reaching $14.3 billion, according to a recently released report. There are more than 1,000 firms active in the U.S. hand and power tools industry, ranging from small, privately owned firms to major corporations like Stanley Works, Black & Decker, Bosch, Danaher and Snap-on etc. In fact these major companies accounted for nearly 55% of the total sales in 2006. 2.2: Characteristics of the industry: A labor Intensive Industry: A source of employment to many, hand tools industry is basically labor intensive in nature, whose development is of great importance for a competitive as well as a self-reliant industrial structure. The manufacturers of hand tools produce a comprehensive range of hand tools, right from carpentry and plumbing tools to striking and cutting tools. Energy intensive industry: Apart from being a labor intensive industry, this industry is also an energy intensive one. It is estimated in a recent study that in most economies adoption of energy efficient processes and technologies can yield in energy savings of up to 30 to 50%. Effective contributor to the economy: Adding positively to the income of a country, hand tools industry has contributed to economy in terms of development and technology up gradation.

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2.3: Consumption patterns of hand tools: This depends on the following factors: •

Price

•

Supply chain dynamics

•

Product quality, design and safety

•

Service

•

Environmental factors

2.4: Driving forces for hand tool development: Hand tools were in use since a long time and there has been a great change in the designs of Hand tools from time to time. There were many factors that led to hand tool development. 2.4.1: Workers safety & health: This is a very important consideration in today's designing of hand tools. Hand tools should be designed in such a way so that they reduce wear and tear on the operator. Ergonomics hand tools have become very popular, driven by an increased emphasis on worker safety and health. Workers nowadays prefer tools, which reduce stress on the body and at the same time reduce employee time loss due to job-related disabilities. Today, designers are coming up with more comfortable grips, reducing the weight of the object, and making hand tools adjustable to different body types. 2.4.2: Chemicals: When tools are designed, manufacturers consider ergonomics, performance and the environment. Besides considering health and cleaning factors, hand tools are also produced nowadays using less chemicals, using less environmentally damaging products which are not harmful to the human body and which becomes an environment friendly product. 2.4.3: Cleaning: One of the driving forces for change in hand tool has always been to make cleaning easier. For proper functioning and durability of hand tools, it is necessary keep them clean after usage. In most cases, the latest designs go for flexible handles which can be removed and cleaned separately as both the handle and the tool blade are of different materials. 16

2.4.4: Hand Tools Standards: With the rapid advancement and expansion in the global trade, standardization of various products is very necessary. The standards given to various products help in expanding international trade which in turn bridges the quality gap between the manufacturers, suppliers and buyers of different nations. In hand tools as well, standards play a vital role. Standards are required in hand tools for the following reasons: •

They provide performance requirements.

•

They provide safety requirements.

•

Standards are available for all types of hand tools like pliers, screwdrivers, wrenches,

•

Striking tools, torque instruments etc.

•

These standards also include the various tests that are required to determine

•

Conformance with the safety and performance requirements.

B) Introduction to Stanley Assembly Technology: Stanley Assembly Technologies, an operating group of The Stanley Works was founded in 1963. Originally called Stanley Air Tools, the group was renamed in 2002 to reflect the emphasis on technology to deliver solutions of high value to customers. Assembly Technologies headquarters are located in Highland Heights, Ohio, a suburb of Cleveland. The Stanley Works is global corporation, headquartered in New Britain, Connecticut and has manufacturing and distribution in all world areas. An application center is located in Troy, Michigan. Locations in Europe include the U.K., France, Germany and Italy. Assembly Technologies Product Group provides solutions to the global assembly market, including the motor vehicle industry. Core solutions include high-performance DC electric and pneumatic tightening tools and controllers, conventional pneumatic articulating arms, torque tubes and Intelligent Assist Devices for ergonomic material handling. Tightening torque capacity ranges from 0.5 to 2000 Nm and above. Tool geometries include straight, pistol, angle, hold & drive, crowfoot and tube nut outputs. Different levels of torque control, fit assembly requirements ranging from the most critical, such as safety related vehicle components to non-critical. 17

Network systems enable plant-wide real-time assembly monitoring including statistical charting, trace analysis, remote tool configuration and hardware diagnostics. With Robotics products, Stanley Assembly Technologies leads the growing global market for Intelligent Assist Devices (IADs). Engineered to dramatically improve the productivity, quality and ergonomic safety of assembly operations, IADs are computer controlled, servo powered lift assist devices that assist workers in lifting and manipulating heavy and awkward parts. A highly skilled direct sales force works directly with major customers and supports distributors in all world areas. Assembly Technologies sales engineers and distributors are qualified to analyze customer applications and propose the ideal selection of assembly and material Handling components. Technical Service employees support customers from Assembly Technologies offices and regional locations. Other services offered by Stanley Assembly Technologies are: •

Field service

•

Training for customers’ support personnel

•

Design consultation for special systems

•

Maintenance programs

•

Telephone support,

•

Spare parts and repair,

Equipment calibration and tool system certification include: •

Auto and Light Truck Assembly

•

Auto Parts and Components

•

Large Truck Assembly

•

Construction and Farm Machinery

•

Recreational Vehicles

2.5: Products: 1) Thread Fastening: i. Torque Equipment ii. Standard Nut Runners iii. Small QPM Tools 2) Engineered Systems: 18

i. Articulating Arm ii. Fixtured Tools 3) Material Handling: i. Trolley ii. Lift 2.6: Intelligent Assist Devices (IADs): IADs are a new generation of computer controlled, servo powered assist devices that allow seamless collaboration of a human operator with computer controlled machinery, delivering superior speed and precision in material handling. IADs are analogous to power steering for material handling. Providing an improved method for moving heavy or difficult to handle loads, these systems are poised to revolutionize the ergonomic handling industry, bringing unprecedented levels of productivity, quality and ergonomic safety to manual processes. 2.7: Engineered System Applications: A two spindle DC electric has adjustable bolt centers that can automatically change the tightening torque level for each center’s dimension. Tool Positioning System for Cylinder Head Bolts a Stanley Tool Positioning System uses a single QPM DC electric tool to sequentially tighten 26 cylinder head bolts. This is a lower cost alternative to an additional multiple spindle system. The tool is mounted on an articulating arm with a PLC that monitors the tool position and tool parameter settings. Wheel Bearing End Play Tool A special wheel bearing end play tool automates the tapered bearing assembly operation. Four Spindle Blocker Beam a four spindle fixture multiple enables fastening of the 8 bolts for the blocker beam in two operations. Shear Bolt Tool: Assembly of tension control fasteners that have an integral controlled shear section for installation without the use of torque-controlled nut runners.

2.8: Threaded Fastening Applications:

19

QPM Door Strap Secure A QPM E12PB-17 pistol DC electric tool secures the door check strap that prevents motor vehicle door from opening past 60 degrees.QPM Instrument Panel to Firewall Secure QPM pistol DC electric tool for securing the automobile instrument panel to the firewall. Adaptive Tightening Control (ATC) is a patented algorithm developed exclusively by Stanley Assembly Technologies and is a standard feature of all QPM Assembly Systems. ATC automatically manages speed and power to the motor of DC electric nut runners based on dynamic feedback during the course of each and every rundown. If a single application consists of a mix of hard and soft joints with the same fastener drive type and target torque, other tools must be set for the middle of the road (i.e. tolerate some overshoot on the hard joint and increased cycle time on the soft joint). With ATC, each joint type is sensed during that particular. BENEFITS OF ATC: •

Dynamic loads Improve Quality: accurately tightens a wide variety of joints.

•

Improve Productivity: optimize speed of tools on a wide variety of joints.

•

Improve Ergonomics: no sudden speed changes from downshifting.

•

Reduce Acquisition Cost: tools can be used on any assembly within their torque range.

•

Reduce Installation Cost: tools don't need to "learn" the job before use in production.

•

Reduce Maintenance Cost: smooth torque and speed transition minimizes on gearing.

MY learning and experience in the training:

Being a fresher it was my first work experience with an industry. So as far as the learning part goes it was really enriching in all sense. My work was based on the B2B marketing. On the path of promoting our product we had to meet general manager and assistant manager of different division in companies, for e.g. purchase, maintenance, production etc. Overall it was an experience & learning based on interaction with all these people in the tenure of the two months. The whole learning process can be divided in two parts. Initial learning and getting acquainted with the market knowledge and understanding how market functions in case of B2B hand tools selling. INITIAL LEARNING PHASE:

20

This phase continued to initial fifteen days of my project. In this period I learnt about the distribution chain being followed in Stanley. The chain wasStanley manufacturing hub (England, Taiwan, United States, China etc.) Transport hand tools to Stanley warehouse in Gurgaon Supplying the tools to the dealers place (overall India) Supply to the customers on the basis of purchase order being generated Stanley used to acquire their product from different countries. As they have acquired companies like Proto, Facom, Britool in different countries, their manufacturing hub is also widely distributed in different places. Depending on the brand the product is being supplied from different places. From the manufacturing hub they are dispatching the tools to the warehouse in Gurgaon, India. From that hub they are supplying hand tools to different dealers all over India. Those dealers in different cities are responsible for supplying tools to the customers once the purchase order is being generated. According to the company policy the dealers have to buy the tools from the company paying money on instant cash basis. Stanley does not do business on credit basis. The risk completely depends on the dealer and their capabilities to collect the payment from the customers. Stanley India is controlled from a single hub, set up in Delhi. They do not have any permanent office in other cities in India. Stanley has appointed sales officer for all particular zones in India. These people either themselves or by the help of some other zonal sales officer control the sales process. All the responsibility for profitability and business development in a particular zone depends on the sales officer. This is the initial structure the company is following. I got a wide understanding of this structure in the initial days. I also got to deal with our dealers regarding the data collection and proper understanding the process being followed locally in Kolkata. This initial learning process was started by an orientation program in Delhi. In that three day long process we were made aware of the product line of Stanley and the patented technologies Stanley is using like maxi drive ,dynagrip etc. Then we were given an idea of the competitors of Stanley works in pan India basis. We were also made aware of the HR policies being followed in Stanley works. The next phase was grueling and filled with worthy experience. I was exposed to the hard realities of market in Kolkata, where ninety nine percent of people are price sensitive. Stanley’s core competency is quality. So there was a clear trade off in Kolkata market. The job was to project quality criteria in a manner to the customer thus they get convinced to experience the product at least once. Stanley products have very high recall value. Not only convincing the customers but me also focused on active data 21

collection part from the customers in this phase. I learnt negotiation skills, style of pitching for the product, style of opening & closing a deal and following up to carry forward the relationship to close many more deals in future. These learning were not only very crucial to me but also as I am opting for marketing major, this will be useful throughout my life as the first ever experience. In this phase I did close a deal of twenty eight thousand in Marathon electrical. This particular company was converted to a complete Stanley customer in all the divisions. I also got success in companies like ONGC, Garden reach Shipyard, EMT Megaton, Titular Wagon Limited, FOJ, Tractor India Limited etc. All these places either I generated a successful enquiry or I have made a channel for Stanley hand tool’s entry. This gave me a lot of confidence to go ahead in my marketing career. The most valuable learning was definitely the relation building exercise. I did make some valuable relationships in the industry and I also maintained a good relationship with the dealers and the regional sales officer in Kolkata. Biggest hindrance on the path of relationship building was the short span of the internship process. Overall this whole internship was a very valuable experience to me what will definitely direct me towards the correct path ahead in my life in marketing career.

Chapter III

22

METHODOLOGY OF STUDY: The project was executed in such a way that it was complete to the maximum extent covering all the aspects and thus arriving at a suitable conclusion to meet the objective of the project. Few Recommendations were also suggested to the company, which can help the organization to grow Further and penetrate faster into the new markets. Also an S.W.O.T analysis & competition analysis were attached to the report to make company aware of their competition, strengths and opportunities as well as threats and weakness. 3.1: Reach of the Project: The study was conducted covering the two major industrial regions in Kolkata and the places around Kolkata. The reach of the project consisted of various industries and dealers located in these above mentioned areas. 3.2: Research Plan: The research was started with a well laid orientation program at Delhi. It was followed by a research plan and weekly schedule once we started our work right here in Kolkata. The research plan included the following important stages. 1) Data Sourcing or collection 2) Research Approaches towards the objective 3) Research Instruments used in the study 4) Sampling Plan for the research 3.2.1: Data Sourcing or collection: Primary Research: Most of the data in this project was through primary research conducted in Industries by me while performing the B2B selling process. It was done completely through personal interviews, though a prepared questionnaire was used as guide line and which was later filled summarized. Secondary Research: Latest information available on internet about various industries and dealers and about the hand tools market and it’s functioning in and around Kolkata. This valuable data was also used apart from the data got through primary research, so as to have a good study of the hand tools market in Kolkata and around industries. 3.2.2: Research Approaches towards the objective: Approaching Customers/Industries: 23

1. Getting permission to enter an industry would complete almost 50% of your job as it would give the platform to know about their operations. This gives the intern an exposure to the very key processes done in an industry like production, logistics, finance and maintenance. 2. Get the details of the persons as many as possible in the industry through personal interview method with the help from the questionnaire. Spend maximum time in the industry, so that you would know what is their work environment i.e., whether they are using quality products, how much of their operations are being done by contractors, what is their hand tools purchase quantity and frequency of purchase, etc. These are very important parameter for the objective verification. 3. Also try to find out how the process of purchase takes place, which is different for Different companies, even sometimes between departments of a same company. Closing the sale: •

This is very important for both the parties to build the relation, to run the business in a flow and also for oneself as this give the motivation and adds more value to your work.

•

To reach to this stage, one must be clear how much work he need to put in, which operates as a funnel like, if u want to reach or market x sales at least you need to meet 10x customers.

•

The time in which you would achieve this should also be planned in the similar way.

3.2.3: Research Instruments used in the study: The research instrument was both qualitative and quantitative and hence consisted of personal Interviews, which were guided by self, prepared Questionnaires. Each of the questionnaire consisted of 17 questions on an average. The questions were both open ended and closed ended. The closed ended questions were a diverse type consisting of single choices, multiple choices, like scales and rating scales. The method of questionnaire preparation consist of few steps, The design of a questionnaire will depend on whether the researcher wishes to collect exploratory information (i.e. qualitative information for the purposes of better understanding or the generation of hypotheses on a subject) or quantitative information (to test specific hypotheses that have previously been generated).

24

There are no hard-and-fast rules about how to design a questionnaire, but there are a number of points that can be borne in mind: 1. A well-designed questionnaire should meet the research objectives. Here the objective was to find out potential for Stanley works in hand tools market in and around Kolkata and also have a check on the logistics and consumer behavior in the hand tools market. Our questionnaire was prepared with a clear focus to reach near to these objectives. Should obtain the most complete and accurate information possible. The questionnaire designer needs to ensure that respondents fully understand the questions and are not likely to refuse to answer, lie to the interviewer or try to conceal their attitudes. A good questionnaire is organized and worded to encourage respondents to provide accurate, unbiased and complete information. 2. A well-designed questionnaire should make it easy for respondents to give the necessary information and for the interviewer to record the answer and it should be arranged so that sound analysis and interpretation are possible. 3. It would keep the interview brief and to the point and be so arranged that the respondent(s) remain interested throughout the interview. There are nine steps involved in the development of a questionnaire: 1.

Decide

2.

Define

3.

Choose

the

the

information

the method(s)

of

required.

target reaching

respondents.

your

target

respondents.

4.

Decide

on

question

content.

5.

Develop

the

question

wording.

6. 7. 8.

Put

questions Check

into the

Pre-test

a length

meaningful of the

order the

and

format.

questionnaire. questionnaire.

9. Develop the final survey form. Deciding on the information required

25

The first step is to decide what are the things we need to know from the respondent in order to meet the survey's objectives. If we have already an idea about the kind of information to be collected, but additional help can be obtained from secondary data. Further, a small number of preliminary informal interviews with target respondents will give a glimpse of reality that may help clarify ideas about what information is required. Define the target respondents We must define the population about which wishes to generalize from the sample data to be collected. In marketing research, researchers often have to decide whether they should cover only existing users of the generic product type or whether to also include non-users. Secondly, we have to draw up a sampling frame. Thirdly, in designing the questionnaire we must take into account factors such as the age, education, etc. of the target respondents. Here in case of project the sample audience was the people in the industry I was meeting with. These were the people who were attached with the process of procuring the hand tools in their respective industry. So they were the correct people to approach for this kind of work. By profession they were managers of different section of their respective company. Choose the method(s) of reaching target respondents The method of contact will influence not only the questions the researcher is able to ask but the phrasing of those questions. The main methods available in survey research are:  Personal  group  mailed

interviews or

focus

interviews questionnaires

 telephone interviews. Within this region the first two mentioned are used much more extensively than the second pair. However, each has its advantages and disadvantages. A general rule is that the more sensitive or personal the information, the more personal the form of data collection should be. Here in case of my project the data collection process was clearly a personal interview type. While visiting the companies I have interviewed several people in those companies to reach to the answers of the 26

questions been asked by me. In a couple of cases I have taken the help in terms of telephonic interview.

Decide on question content There are only two occasions when seemingly "redundant" questions might be included:  Opening questions that are easy to answer and which are not perceived as being threatening, or are perceived as being interesting, can greatly assist in gaining the respondent's involvement in the survey and help to establish a rapport.  Dummy questions can disguise the purpose of the survey and/or the sponsorship of a study. 3.3.4: Sampling Plan for the research: The industries to be visited were based on their type of industry like ship building industry, steel Plants, electrical and electronic firm, oil refineries and any other major industries. The sample for studying the companies was chosen to be sixty, which should have the mixture of all types of companies. 3.3: Collection of Data and Analysis: Various Pie-charts and bar-graphs are made to have an easy and quick understanding of the study Conducted. Initially all the questionnaires were analyzed individually, and then finally an overall Comparison of the various responses from all the company respondents were done and analyzed. We have also done study through the SPSS software, what have helped me to get a clear idea of the important parameters for Stanley works in the Kolkata market. From the ten factors we have chosen initially we have got totally six characters what were of importance to Stanley .Other than the SPSS-factor analysis I have also done S.W.O.T analysis .What is very helpful for the company to understand their condition in the Kolkata market, this study also can show the company the future road of success for it, what is very important to proceed to a secure future. Another important part of the whole study was the competition analysis. This can give a stand where the company is today if we compare it with its competitor.

27

3.4: Findings & Recommendations: Finally, the various findings from the study were listed out along with certain invaluable Recommendations for STANLEY, to help them generate and tap the new markets. These recommendations can also help the company to stress particularly on the factors where they should focus for future success. 3.5: Competition analysis: The hand tools market in Kolkata: Hand tools are an integral part of the production and maintenance part of most of the industries who are involved in some type of production. Kolkata industrial area which include central Kolkata region along with Howrah, Budge and Hooghly district suburbs, is growing at a rate of 5.4 percent in this present financial year. Keeping pace with the growth the hand tools market in Kolkata is also growing at six percent per anum.The overall hand tools market worth 150 cry approx is versed with branded and un branded competition. Price being the main factor what play the role in the Kolkata market, unbranded players play the key role here occupying almost thirty percent of the market. Rest hundred and five core market is open to the branded players like Taparia,Everest,Snap on ,Stanley etc.Taparia being the market leader enjoys a major share of around sixty percent of the branded market in Kolkata, followed by other hand tools brand. Stanley is facing fierce competition in the Kolkata region not only from the branded but also from the unbranded players. Being a new entrant in the market Stanley is facing a few key issues. They areVery low brand awareness in the market. Branded players who make claims on superior quality are not able to impress customers sufficiently to ensure sales. Another key issue is lack of market research. Appropriate market research on size of the market, growth both historic and future growth and key buying influences, can give a company the right inputs and feedback to improve its market share .It could also help the company in discovering and accessing new markets and can help in developing winning marketing strategies.

Here we have analyzed the strength of a few key competitors and the areas where they score over Stanley works. Analyzing the competitor:

28

 Among the key competitors present in the Kolkata hand tools market Tap aria is the most successful player. They are doing business for more than sixty years in India based on their manufacturing facilities in India as well as in China. The Core competency of Taparia is price. Maintaining a minimum quality framework (ISO 9000, they sell their products at very reasonable prices. This key factor has helped in establishing many Indian and overseas companies as their loyal customers. They are successfully maintaining a satisfied customer base in Kolkata. A large dealer & distributor base in the hub of the hand tools market (bare- bazaar) in Kolkata has helped them to be a speedy and efficient supplier of hand tools. This effective and well coordinated distribution chain has also helped them with openings in new industries. All of this has enabled Taparia to become and continue to be the market leader not only in Kolkata but all over India. While they may not have spent substantial sums on advertising and promotion, their products at extremely competitive prices and an excellent distribution network has been responsible for their premier position in the Kolkata region and their leadership in the rest of the country. Taparia according to me have an edge over Stanley in the following aspects – Customers in Kolkata industrial belt, most of the cases preferred price parameter over the quality. This tendency is not only seen in case of hand tools but in overall functioning process of the industries. So naturally price being the core competency Tap aria is playing down Stanley successfully. Secondly focusing on the delivery time, Stanley‘s average delivery time is about twenty days. Some time even more than that. This is not only a potential threat to the business development process but also for maintaining the existing market. Taparia score over Stanley supplying on an average of ten days time. 3.As the volume of delivery is high as well as the margins & commissions ,the dealers are more interested to deal with Taparia rather than dealing with Stanley .As in case of Stanley, volume of hand tools being supplied are very less. Even the profit margin also remains significantly low. 4. The payment policy in Stanley does not have a credit payment system. The dealer needs to pay the money before the company supply the material to them. But once the customer’s turn comes, they mostly work on a credit basis (six months at a minimum).This can create a shortage of fund for investment for the dealer. In case of tap aria, the company also runs the business on credit basis. So dealers feel much comfort in working with them. 5. Considering Stanley the time taken to close a deal by their sales force takes quite a long time. But if we look at the tap aria, their customer base being very strong time to close a deal is pretty less for them. This gives them added advantage to look for new market around the industrial area. 29

6. Taparia has a permanent office in Kolkata. Their Kolkata operation is based on a strong management team. But Stanley does not have an office in Kolkata. This can pose a problem in case of co -ordination and controlling the smooth functioning of the company. There are few places where Stanley gets an edge over their competitors. LikeThe product range for Stanley works is very wide. Taparia cannot compete with Stanley on this point. Quality of Stanley hand tools is far better than Taparia. So in places like military base , aerospace application and export companies straight away goes for a Stanley product .This gives Stanley an advantage over their competitors in a couple of places. Companies regulated by the state mostly are not worried of fund. So these companies mostly prefer high quality products, like Stanley. Few American companies like caterpillar generally use Stanley hand tools. They follow the same trend in India as well.  Moving to the next competitor which also plays on the core competency quality- Snap on. Snapon Incorporated is a leading global innovator, manufacturer and marketer of tools, diagnostics, and equipment, software and service solutions for professional users. Products and services include hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as customers in industry, government, agriculture, aviation and natural resources. Products and services are sold through the company's franchisee, company-direct, distributor and Internet channels. Founded in 1920, Snap-on is a $2.8 billion, S&P 500 Company headquartered in Kenosha, Wisconsin. When it comes for their core competency then they generally focus onNON-NEGOTIABLE

PRODUCT

AND

WORKPLACE

SAFETY:

As a permanent and priority agenda item at all operational meetings, safety comes first in our company. Our products are engineered for safe operation and we initiate and maintain a safe workplace. We diligently comply with the company's safety program, and are committed to safeguarding natural resources and our global environment. UNCOMPROMISING

QUALITY:

In the eyes of the customer, Snap-on's products and services have a reputation for being high quality. We 30

are accountable for ensuring quality is built into everything we do. Superior performance and quality ensures future trust and confidence in our brands. PASSIONATE

CUSTOMER

CARE:

Our customers come first. We believe that every interaction – internally and externally – is a customer interaction that demands professionalism and respect. We believe we can make a difference in the lives of our customers. We believe understanding our customers and listening to their unique needs ensures we deliver customer-focused products and services.

FEARLESS

INNOVATION:

At Snap-on, innovation is essential to create solutions aimed at increasing end-user productivity and profitability. We develop and use breakthrough ideas to create solutions that bring real value to the customer and deliver enhanced financial returns to the company.

RAPID

CONTINUOUS

IMPROVEMENT:

We are constantly striving for rapid continuous improvement; we are never satisfied. We are energized by change, and continuously thinking ahead and anticipating how we can better serve our customers. We are always examining how we can do it better, and engage constructively with those associated with the company to gain additional knowledge and learn from past mistakes.

Snap on offer a range of hand tools and power tools as well. As their product range covers every nuke and corner with respect to variety available in hand tools, a company can ever need to work in the field, gives them an added advantage in the field of product offering. Now if we go for an analysis of the advantage the company is having over the Stanley we can see, Being other old & experienced players in hand tools market snap on also gets a trust advantage as well as Stanley in the Kolkata market. Snap on is also an American company, so the advantage of being brand America what Stanley gets is also applicable equally to snap on. If the quality is considered then snap on is also having an edge over Stanley. Snap on produce their hand tools only in U.S and germany.This gives a quality assurance over the china made Stanley products. 31

In India, at the Bangalore and Delhi market snap on is having a loyal customer base. This belt is almost imp-penetrable.

Though Snap on have advantages over Stanley but they fell short to many areas, First and foremost, looking at the distribution network, snap on supply their product only from Japan to all Asian countries. This leads to an average delivery time of months or more than that most of the instances. What is completely unacceptable in most of the industries. On this issue Stanley scores over them with a far more reasonable delivery time. Snap on hardly exist in most of the Indian cities. This cost them an opportunity of getting a share in the hand tools market pan India basis, like other international players. They lack proper sales force in India. Completely depending on internet marketing have cost them potential opportunities in India. Focusing on the sensitive issue of price, Stanley will get an advantage being far cheaper than Snap on. Snap on do not have any fixed dealer network. They depend on different dealers on a contract basis. With a stable dealer base in all over India Stanley gets an edge over snap on. Snap on generally deal online. But most of the companies in Kolkata are not very much interested in intern ate dealing. This poses a serious problem for snap on. Lastly, snap on depends on a loyal customer base of few companies who deal with only snap on hand tools. Other than those customers, snap on do not have any steady expanding market. This have brought their growth in Indian market at a hault.Stanley is potentially catching on this opportunity by expanding their presence in new market every year significantly.

 Then we can focus on Everest India hand Tools Company. This is another India based hand tools company what basically play over the low cost factor in market. This company is also having a good customer base in pan India basis. They have diminished their quality in yearly basis in the last decades, to focus on the price competency of the brand. In return they have paid serious price by losing their market share significantly to Taparia. Given the situation where new and potential entrants like Tata tools are coming in the business their chance of revival is less. Still they are 32

able to play in a niece market quite successfully. As I have focused on a limited number of companies in Kolkata, I have got only one Everest customer. So it’s not very worthy to consider Everest as a potential competitor based on my focus in the Kolkata market.

3.6:S.W.O.T analysis of Stanley works: Being a developing nation what is growing at a rate of more than seven this year market in India for hand tools is also booming. With increasing overall pie the number of competitors is also increasing. As growth is the most important word for the survival of any company in the market S.W.O.T analysis is having an immense relevance in this study. Talking about the S.W.O.T analysis of Stanley, which manufacture hand tools in large volume and wide range, we need to consider various factors like•

Competition

•

Hand tools market in India

•

Product quality

•

Technological aspect of product

•

Market viability

•

Acceptability in market

•

Market perception about handholds

•

Brand value of Stanley

•

Market share of Stanley worldwide and in India

•

Users response of the product

First of all let’s focus on the strength of Stanley works. 33

STRENGTH:  Most significant strength of Stanley is their product quality. It’s very important if we consider the problem solving approach of sales. Proper projection of this core competency in the market will prove to be very profitable for the company.  Ease of work, based on the longer size, what is responsible for the less torque requirement while working is a very important customer friendly side of Stanley product.  Advance technologies in the product line are also very important. Dynagrip technology, what is made for the soft gripping, gives comfort for the workers while working more efficiently. Other than this there are technologies like maxi drive what gives the product a very comfortable life what can prove to be one time investment for the industries. Apart from these there is five degree range technology what makes the work smoothen.  The nickel chrome alloy gives the product very good finishing what is very important once the products goes to the floor for use. This prevents corrosion and increases the product life significantly.  Availability of wide range of products is also one of the most significant parts of Stanley what gives the industry people to opt for a very high amount of purchase at a significant discount rate.  Very high recall value of the products is also another big advantage of Stanley.  Well diverse storage item also gives a good protection against pilferage. This adds lots of value to much industry as pilferage is one of the biggest challenges the industry people are facing today.  With an ever changing need of the market Stanley R&D have evolved with low price ranged spanner and other tools which will give enormous boost to the Stanley hand tools market.  Acquisition is the most significant strategy what Stanley has taken for the expansion purpose. They have acquired a series of companies named Facom,Proto,Britool,Mac tools,Vidmar,Zag,Fat max,Bostitch etc.Through this they have not only increased their range but they also gained an edge by killing competition. They have acquired the

34

companies in Germany, USA, and Russia and in much other country. By instantly catching upon the market Stanley has improved their market share worldwide.  Another important strength of Stanley is their distribution network. If we see the world wide picture then we can very easily estimate the main reason of Stanley’s success in U.S. and Europe is their distribution network. Though they are in nascent stage of building this net work in India.  To run a successful company we need happy and dedicated people in the company.HR policy of Stanley works is one of the best among the MNC’s.So satisfied employee and sales people deliver maximum effort behind the success of the company.  The Indian division of Stanley is mainly comprises of a bunch of young management graduates. This gives a lot of thrust to the working of the company.Aggresive marketing is one of the strength of Stanley works.  In India Stanley is supplying products from china, what is very much cost effective and easy to procure the inventory.  Customization is strength of Stanley. If the company orders in a bulk and different tolls then Stanley make a special tool box for them to supply those kits. This makes the company more customers friendly.  In industry the amount of requirement is huge and the field is also very diverse. As Stanley have experimented with all the aspect of a production or maintenance unit of particular type of company that makes it easier for them to understand which tool to order where.  It’s more than three hundred years old company. So a company surviving well for so many years does have lots to say to the market. This makes a good image in the mind of customers.  Not only the age but also its American origin also gives a lot of value to the brand.  ANSI and DSN are two of the toughest standard to pass through. Stanley maintains these standards so the quality of the product is unquestionable. WEAKNESS: 35

Though there are so many positive things about the company still the progress of the company is stalled on some major issues. They are First and foremost is the price of the product. It’s unreasonably high in comparison with other players in Indian market. This high price have cost them a lot of market share. Even if they plan for higher margin in few customers that is also going to be tough with increasing competition. In business everybody is very much price conscious these days. As the raw material price is inflating day by day so all the company is opting for a price cut. One of the most effected part of these cost cutting is definitely the hand tools sector. So if Stanley wants to survive in India in future definitely they have to slash price. But instead of slashing price they are increasing price as per the international market.  Increase in price can be devastating in Indian market what is very much pricing sensitive. Here very less people actually care about quality of the tools. They mostly depend on use and through tools. So in this market a high price tool can be an odd man out.  Even in the high end market where Stanley fights with their brands like Proto and Facom, they are facing severe competition from other established US brands like snap on.  As far the quality is concerned the market leader Taparia also maintains a minimum level of standard. So it’s not very easy ground to fight out.  Taparia the competition brand is doing business in Indian market for more than sixty years. Stanley has just entered the market. As taparia have a good hold in the market and mostly loyal customers they are getting an edge over Stanley everywhere.  Now if we focus on the inventory problems, we can see throughout India they have a severe problem of inventory management. They have only one warehouse in whole India. So even for showing a sample the dealer have to get it from the main warehouse what takes tremendous time. This is another big reason for loosing customer. Sometime the customer waits

36

for the whole month. In twenty first century world whatever is slow will be wiped out for sure. Stanley should mind this gap very seriously.  The company doesn’t even give any free sample to the customers. Many of them ask for sample to the dealers and to the marketing people. As we don’t have any free sample with us, many time the customer deny waiting and they move on with some other brand.  The product catalogue many times contains such items what is not available with the Stanley warehouse. In that case sometimes we lose customer even just before losing the deal. This can be very costly as bad word of mouth against the company.  At least two out of ten cases Stanley product fails to match the criteria asked by the customer. As a result the customers walk away with some other brand.  Stanley does not have an office in most of the places they are doing business. This not only cause inconvenience to the sales people but also cause uneasy situation in front of customer as they always ask “why such a big MNC can’t even afford a office when they want to do business”.  All three dealers are located in the same area of Kolkata. This is very inconvenient for people who are located in different part of Kolkata and if they want to communicate with the dealer.  None of the dealer sales only Stanley hand tools. They all have dealership of many other brands. So many times the lead generated by the sales people of Stanley in some industry gets fulfilled by other competitor’s product.  The dealers have severe competition among themselves. Rather than cooperating many times they try to acquire each other’s order. This can cause further inconvenience.  Communication is another very big problem for the people in the market. The sales people are overloaded. Such as the whole Kolkata region is 37

dependent on one single sales officer. Company may save some money not recruiting more people but this can cost the company some serious business.  The regional sales officers are also overloaded. They have so many states to control; sometimes they are not able to stay even one week in a particular state.  Company have only one HR employee to run the whole organization in India and the situation is ridiculous. This signifies may be Stanley is not at all serious about doing business in India.  At last, among the basic 4 P’s of marketing all three of place, promotion and price is going terribly wrong for Stanley. So if they can run their business by the factors playing crucial role in Indian market Indian market situation will improve. Otherwise like many other company they will also quit India after few more years. Opportunities: If we look at the market in general we will there are lots of opportunities for hand tools market. Because of few reasons Indian market is growing 8-10% in 2010, what is even better than China by now. This can clearly state that given a growth situation there will be new factory, new set up to match the production rise. So there will be higher requirement of hand tools as well.  Hand tools market in India is also growing in a significant 17% rate. This is also a very optimistic scenario for a hand tools company.  Other than these the price sensitivity in government companies is going down day by day. This market is mostly dominated by the commission paid by the companies. This can prove to be an opportunity for Stanley works.  Almost all the existing companies are expanding. From FMCG to automobile manufacturer everybody is touching their threshold in case of production. So they going to need a lot of hand tools. 38

 Stanley is having a very wide range of hand tools what is rare in the competitor’s product line. This gives Stanley an opportunity to sell more hand tools in bulk what can prove to be cheap for customers.  Many companies are slowly focusing more and more on the quality of the product to cut short monthly purchase. This gives great opportunity for company like Stanley whose core competency lies in Quality.  Quick acquiring of the company like Black and Dakar will give the company a good ground on the Indian market.  Stanley is coming out with a low cost spanner range. This will add lots of value to the company profile. Later times if they come out with a low cost substitute for almost all the product that can prove to be a master stroke on behalf of the company to increase the market share.  In few places like Army, Coca cola, Marathon electrical have become regular customer of Stanley. This has helped Stanley to get a good hold on the market referring these steady customers widely.  Being an American company and market leader in USA, it always gets an advantage when it comes to hand tools sales in another American company.  Stanley R&D is very strong so that also gives them an edge over the other players.  Stanley works being a centuries old company already has a good name in market. These links once cultivated properly adds lots of value to the company profile.  Stanley works is a deep pocketed company. So keeping a pace with the requirements they can invest a lot to increase the market share. THREATS:  Taparia, the market leader is very strong when it comes to price. This is the field where Stanley looses most amounts of the points.  Other companies like Everest are also going very fast, keeping pace with the competition is the most important where Stanley is lagging. 39

 Though Stanley is scoring more in the quality conscious market, but that is a niece market. It will not increase the market share of Stanley significantly.  Various foreign companies like snap on are also entering Indian market very fast. This is posing even a greater threat to Stanley.  World economy is still going through a tumultuous stage. So a costly brand like Stanley is facing severe threat from the current situation in the world economy.  As an American brand the Russian and the German companies most of the time doesn’t entertain Stanley. This also has caused a big problem as there are a number of Russian companies still working in India.  Poaching is a big threat for Stanley. As the other Indian players are continuously trying to poach Stanley sales people, this fact can pose a threat to the company.  As Stanley follow ANSI and DSN standard what is not so famous in India, people many times ask for some known certification like ISO standards.  Operational inefficiency is at its top now days in Stanley. They take more than a week to just send a sample from Delhi warehouse. This fact must be seriously monitored.

Chapter IV: 40

STATEMENT OF OBJECTIVE: 4.1 PRIMARY OBJECTIVES  To assess the scope for the business development & maintaining a presence in the

Kolkata hand tools market of Stanley Hand Tools &Stanley Assembly Technology.  To position Stanley as a brand in Kolkata market by focusing on S.W.O.T analysis and competition analysis.  To determine the factors playing crucial role for Stanley in the Kolkata market. 4.2 SCONDARY OBJECTIVE  To find the potential for Stanley Hand Tools in the existing market.  To find the hand tools purchaser’s needs and the expectation on hand tools.  To find the feedback about Stanley Assembly Technologies and take corrective action thereby ensuring better business development.  To identify potential customers and new plants where business development can truly happen

Chapter V: RESEARCH: 5.1 RESEARCH DESIGN FLOW CHART: Two types of information are required for doing Multi Dimensional Scaling. The first type of Informational requirement pertains to those that are requires to measure the dependent variable This in this case is customer’s intention to buy. The second type of information required pertains to the independent variable. The independent Variables being considered in this case are price, brand, quality, durability, reliability, discount, Warranty, availability, breakage and comfort.

41

This research was Multiple Cross- Sectional in nature as: Data collection was done only once from only one sample of the population (Purchasers and end users). The research involved very less of secondary data then the primary data. This was due to the fact that the accuracy of the research was to be kept high. Moreover, the research was done on the currency basis i.e. it was done for the current situation to make the project more relevant with the current market situation. 5.2 SCOPEOF SYUDY The study provided an insight into the important factors for Stanley hand tools from the purview of the customers. This is also focused on its applications, hand tools usage, expectations and attitude towards hand tools like socket, spanners, pliers and screw drivers & many more. This study will help to find out the feedback of Stanley hand tools with regards to price, brand, quality, durability, reliability, availability, and comfort. Positioning Stanley among the competitors and leading it towards a better growth path in the Kolkata market is another important focus of this study. 5.3 LIMITATIONS IN THE STUDY: No research would be a fool proof, 100% error free with the time, money constraints and within the limited resources. My research study was no exception. I too had my own set of problems in terms of price, availability and with the fact that I was a first timer in this field.  The first limitation could be the fact that Expert opinion. Depth interview and all the Descriptive study was conducted on a sample size of sixty. In this case the main problem is the response varies depending on mood, situation & authority of the responder. Though these techniques were conducted to unearth it still could be limited.  Next limitation would be the fact that the sample size of sixty. More the sample size more

detailed study would betas the number of the industries is very limited where we can approach for the Stanley hand tools; this limited our reach further more.  The sample taken for creating the model included people from various industries in

Kolkata and around industries. This poses a great problem of limiting the view to a handful of factors. As all these people are working under same circumstances under specific regulation posed by west Bengal government in the particular Kolkata market, the kind of problem people here facing can never represent people of India. 42

 The conclusions made are based on the data collected from the sample size. So the conclusion are based how truthfully the people entered the data.  Being a summer intern I was not entertained in many industries in serious manner. This

did made serious problem in the research work.  Company infrastructure in Kolkata is miserable. Neither they have an office nor do they

have a permanent dealer dedicated completely to Stanley. These factors posed potential problem to the working.  Marketing effort by Stanley is almost nil. This has created a vacuum in the Market. To

remove that huge marketing effort is required.  Number in the sales force is very less. So a lot of potential industry in and around

Kolkata was left out. This was a potential loss to the research process.  A solid database about the company would have made our work very easy. But as there

were no such database available at the back office in Delhi this factor made our work much more difficult. These were some of the limitations identified during the course of my research proceedings. 5.4 STEPS INVOLVED: The following steps were followed to attain the objective. 5.4.1Literature study: There is no specific study, which was done on identifying hand tools purchasers purchase behaviour.Also there was no previous study regarding to the market potential of any hand tools company in Kolkata hand tools market. So the study of literature was based on the basic hand tools market in India. 5.4.2Expert opinion Expert opinion is the process where an expert in the related field is interviewed to get information

43

That can be used in the study. In this case distributors, dealers, sales officers, marketing manager of Stanley for East and purchase, maintenance & production managers of industries which use hand tools are considered as an expert. 5.4.3: Descriptive study The descriptive research design used in this case is survey method and personal interview. Personal interview with various industry purchases, maintenance & production managers made me find some of the factors and ideas by observation, hearing their experience and interacting with them. 5.4.4 Scaling technique The scaling technique used in the questionnaire was like scale, open, closed ended and ranking Scale. The Likert scale is commonly used in survey research. It is often used to measure respondents' attitudes by asking the extent to which they agree or disagree with a particular question or statement. A typical scale might be "strongly agree, agree, not sure/undecided, disagree, and strongly disagree." On the surface, survey data using the Likert scale may seem easy to analyze, but there are important issues for a data analyst to consider. All the questions in the main questionnaire were extracting answers by this scale. This was Maintained throughout the questionnaire to keep the reliability and validity in control. The likert Scale technique is widely used to determine the level of agreement or disagreement of an issue in the questionnaire. And another set of likert scaling were used to determine the most important and least important of an issue in a questionnaire. The first step in the process is Get the data ready for analysis by coding the responses. For example, let's say I have a survey that asks respondents whether they agree or disagree with a set of positions in a political party's platform. Each position is one survey question, and the scale uses the following responses: The scale was designed with five response categories as shown below. 1---Strongly disagree 2---Disagree 44

3---Neutral (Neither disagrees nor agrees) 4---Agree 5---Strongly agree 1---Most important 2---Important 3---Neutral (Neither important nor unimportant) 4---Less important 5---Least important

We need to remember to differentiate between ordinal and interval data, as the two types require different analytical approaches. If the data are ordinal, we can say that one score is higher than another. We cannot say how much higher, as we can with interval data, which tell the distance between two points. Here is the pitfall with the Likert scale: many researchers treat it as an interval scale. This assumes that the differences between each response are equal in distance. The truth is that the Likert scale does not tell that. As with most statistical analyses, begin analyzing Likert scale data with descriptive statistics. Adding a response of "strongly agree" (5) to two responses of "disagree" (2) would give us a mean of 4.But, there are other measures of central tendency we can use besides the mean. With Likert scale data, the best measure to use is the mode, or the most frequent response. This makes the survey results much easier for the analysis and interpretation purpose. We can display the distribution of responses in a graphic, such as a bar chart, with one bar for each response category. After descriptive methods, any good statistical analysis proceeds next to inferential techniques, which test hypotheses posed by project. There are many approaches available, and the best one depends on the nature of study and the questions or hypothesis I am trying to find out. A popular approach is to analyze responses using analysis of variance techniques, such as the Mann Whitney or Kreskas Wallis test. This can also be analyzed by the SPSS software, using the factor analysis or the dimension reduction techniques. We can simplify the survey data further by combining the four response categories (e.g., strongly agree, agree, disagree, and strongly disagree) into two nominal categories, such as 45

agree/disagree, accept/reject, etc.). This offers other analysis possibilities. The chi square test is one approach for analyzing the data in this way. The questionnaire when framed was carefully done to avoid complex words. In circumstances where such words could not be avoided, explanations were given for the respondents to understand easy. The ambiguous words or sentences were also avoided. Each section of the questionnaire had an initial explanation of how to answer the questions. An example was also given for easy understanding of filling the questionnaire. Important instructions were highlighted in bold letters to improve the vision and for a quicker understanding of the instructions by the respondent. The respondent didn’t have any problem in understanding the questionnaire and answering it. 5.4.5: Designing questionnaire Based on the results obtained from the descriptive study and using scaling method the final Questionnaire was prepared and administered to the respondents. 5.4.6: Deciding the sample size The sampling technique used for the research was more of a stratified random sampling. This is Because of the customers who were all possible to meet were selected. The sampling was done as mentioned above due the lack of time to get data. As the market research was done to B2B market the sample size was taken as sixty. The data was collected from purchase managers and end users. Certain care was taken to avoid errors of history as the consumers were all contacted at the place of location. The other errors were either avoided or even though present it was cancelled out due to the presence of the same with other brands. 5.4.7: Data collection

46

Data was collected from both purchase managers and end users using stratified random sampling. While undergoing the internship process I went to each of them and conducted a depth interview, which took nearly ten minutes. The sample was about sixty potential customers for Stanley hand tools. The data for the questionnaire was collected directly and through e-mail from purchaser mangers and end users. The data was collected from all the industries I visited in and around Kolkata. Using the data collected in the process I was able to come out with factor analysis to see whether the factors are really related to the buying decision. 5.4.8: Analysis of the data collected All the data collected was fed into a database created in Microsoft Excel especially for this purpose. The various tools and functions available on excel were used for necessary calculation. Bar graphs and pie charts were generated to make the interpretation of the results easier. SPSS software was used for the purpose factor analysis.

Chapter VI: DATA ANALYSIS: Data analysis model is econometric model and was planned to be done with the statistical tool SPSS.The data was obtained mainly in the likert scale for this purpose. The various tools and functions available on Excel were used for necessary calculations. Bar graphs and pie charts were generated to make the interpretation of the results. SPSS software was used for the purpose of factor analysis (dimension reduction). 6.1 Plan of data analysis: The data analysis done as in the plan given below1. At first the filtering of the questionnaire was done. 2. The questionnaires were sorted into the respective groups. 3. coding of the questions were done. 4. All the data was entered into different excel sheets. 47

5. This data was copied to the SPSS tool all the variable were explained. 6. The other questions related awareness, departments, ranking and current brand were Analyzed using Micro soft Excel. 7. Results were tabulated and conclusion and recommendations were drawn.

Chapter VII: RESULTS AND INTERPRETATION: 7.1 STANLEY HAND TOOLS: 7.1.1 Hand Tool Market Share: The below table & graph gives the market share different companies hold. NAME OF THE COMPANY Taparia Stanley Everest Snap on Thalami(unbranded)

NUMBER OF USER 38 4 5 1 14 Table: 1

FIG: 9

48

My study reveals from the above table and pie chart that more than sixty percent of the respondent industries are using Taparia tools, about ten percent are using Everest and Stanley and more than twenty percent of the market is occupied by the unbranded players. As a competitor we can tap the branded market in case of tools like socket, hydraulic jack what cost similar to the market leader taparia. For other tools either we need to curb the price to a reasonable level or we need to focus more on the niece price in sensitive market where Stanley product will far better. 7.1.2 Frequency of Buying Hand Tools: Duration monthly

Frequency of hand tools purchase 3

2-3 months

7

4.6

3

months

6-12 months

11

More than an year

36 Table: 2

FIG: 10

49

From the above frequency table it is revealed that about twenty eight percent of the industries purchase hand tools half yearly, around fifty six percent of the industries purchase annually and nearly sixteen percent in monthly basis. This concludes company should constantly focus on the market to grab the opportunity. A long term relationship building process throughout the year can prove to be helpful for the yearly purchase segment. These company generally issue tender once in a year when they purchase hand tools. Quick follow through in that time followed by a reasonable and consider worthy quotation can close a deal for Stanley works. Regarding the other segment the company should put enough marketing effort to make the market much more aware of the quality aspect of Stanley. Once Stanley become successful to put forth their core competency to the industry people, immediate effect can be reflected on the market share. Hand tools usage (product wise): Hand tools type

Percentage of usage(with respect to other

Socket Spanner Hammer Ratchet Knives Wrenches Other tools

tools) 20 31 2 12 8 7 20 Table: 3

50

FIG: 11

The spanner, socket and ratchet are the most used tools in the market. But if we look at the product and price range of Stanley then it will be clear to us that they cannot get a good hold on the spanner market because of the high price. If they are going to get a hold then that will be the socket market and partially the ratchet market. To convey the superior quality with a reasonable price what Stanley offer for sockets and for a spatial range of hammers must be conveyed to the industries by proper marketing effort. The average cost of procuring the hand tools vary in a range of 5 laky to 70 laky depending on the business the company is in. More than sixty percent people heard the name of Stanley for the first time. So, market communication of Stanley need to be improved. Only twenty five percent of the people I surveyed upon acknowledged that they have used Stanley products. This data support that poor communication and the negligible market share goes hand in hand. Once a part of the picture is improved, the other part gets an immediate boost. Companies who are using Stanley are very much satisfied with the performance and quality of the product. Almost all of them have gone for repeat purchase of Stanley hand tools. Most sought after tools of Stanley are the hammers (compo cast), wide range of sockets and the tool kit box according to the survey filled up by the company people. Worth of inventory stockings of dealers: Amount of inventory stocked by dealers Less than two laths

5-10 laths 10-15 laths More than 15 laths

Number of dealer responded 6 3 2 1 Table: 4

51

FIG: 14

This interpretation clearly shows that fifty percent of the twelve dealers I interviewed were stocking less than two laths of tools on yearly basis. Reason being as the market of hand tools is just getting shaped up in Kolkata they did not wanted to take risk. Secondly, they were also worried about the high price of the product, what was a hindrance on the path of swift movement of Stanley handtools.This posed problem even on the path of catching up new markets. Very few dealers who are maintaining a consistent relationship with a big client only they are able to procure hand tools of greater amount. 7.1.4 Source of Information SOURCE OF INFORMATION Source of information News paper Magazine Local outlet Stock list Sales representative Friends Others

Number of respondent 1 3 31 2 18 4 1 Table: 5

52

FIG: 13

Much of the information about the hand tools was obtained from the local outlets. Hence, Better visibility must be done through acquiring more and more number of dealers every year. The direct marketing channel through sales force is quite effective with reference to the collected data. But number of sales people in the field is a serious problem for Stanley works .They should go for a mass appointment of more and more sales people for a better market presence of the brand. To increase the visibility the company also should focus for structured PR (public relation) process through magazines, newsletters, special exhibitions and seminars, as they carry a meager 12% of the overall pie. Better promotional campaigns and brand awareness Programs must be carried out at a regular interval to popularize the brand. 7.2.3 AWARENESS OF STANLEY PRODUCTS: Response Yes No

Number of respondents 21 39 Table: 6

Though a chunk of people did hear about the brand but only a hand few of 36 % have used it in their industry. Rest almost 64 % of the people has never used it for various reasons. In this cases 53

problem solving approach by the sales force is the best option. So appointing more people in the sales force can be the initiation of solving this problem. Satisfaction level of existing hand tools: (1: Highly dissatisfied, 2: dissatisfied, 3: average, 4: satisfied, 5: Highly satisfied)

Satisfaction level 1 2 3 4 5

Number of respondent 2 5 13 18 9 Table: 7

FIG: 14

This result is very important for the future expansion plan of the company. The 20 % bunch of very satisfied customers is less likely to change to some other brand leaving their regular brand. But if we can focus on the bunch of average and satisfied customers, what consist of more than 70 % of the total respondents can possibly is converted to Stanley customer. To make this proposition a success the company at the first place should try to educate the customers with the quality proposition, its core competency. This can also drive the company’s growth to a right direction. 7.1.3 Factor Analysis: 54

Factor analysis is included in the SPSS package as a data reduction technique. It takes a large set of variables and looks for a way that the data may be reduced or summarized using a smaller set of factors or components. It does this by looking for clumps or groups among the intercorrelations of a set of variables. This is an almost impossible task to do by eye it anything more than a small number of variables. It is Used extensively by researchers involved in the development and evaluation of tests and scales. The scale developer starts with a large number of individual scale items and questions and, by using factor analytic techniques; they can refine and reduce these items to form a smaller number of coherent subscales. Factor Analysis can also be used to reduce a large number of related variables to a more manageable number. Prior to using them in other analyses such as multiple regression or multivariate analysis of variance. There are two main approaches to factor analysis—exploratory and confirmatory. Exploratory factor analysis is often used in the early stages of research to gather information about (explore) the interrelationships among a set of variables. Confirmatory factor analysis, on the other hand, is a more complex and sophisticated set of techniques used later in the research process to test (confirm) specific hypotheses or theories concerning the structure underlying a set of variables. The term ‘factor analysis’ encompasses a variety of different, although related techniques. One of the main distinctions is between what is termed principal components analysis (PCA) and factor analysis (FA) is if we are interested in a theoretical solution uncontaminated by unique and error variability, FA is the best fit for that situation. If on the other hand we want an empirical summary of the data set, PCA is the better choice.

Steps involved in factor analysis: There are three main steps in conducting factor analysis-

Step 1: Assessment of the suitability of the data for factor analysis: There are two main issues to consider in determining whether a particular data set is suitable for factor analysis: sample size, and the strength of the relationship among the variables (or items). Two statistical Measures are also generated by SPSS to help assess the factorability of the data: Bartlett’s test of puerility (Bartlett, 1954), and the Kaiser-Meyer-Olin (KMO) measure of sampling adequacy (Kaiser, 1970, 1974). The Bartlett’s test of sphericity should be significant (p 5: 1. With 470 cases and 10 variables, the ratio of cases to variables is 47:1, what is far exceeding the minimum requirement. So this proves that the data is far acceptable for the analysis. 56

Correlation matrix: Correlation Matrix

Correlation

Quality

Durability

Availability

Maintenance

Quality

1.000

.528

-.222

.052

Price worthiness

.528

1.000

-.054

.087

Availability

-.222

-.054

1.000

.389

Maintenance

.052

.087

.389

1.000

Reliability

.559

.397

-.155

-.022

Performance

.382

.170

.031

.170

Table: 9 Correlation Matrix

Correlation

Reliability

Performance

Quality

.559

.382

Price worthiness

.397

.170

Availability

-.155

.031

Maintenance

-.022

.170

Reliability

1.000

.665

Performance

.665

1.000

Table: 10 Principal component analysis method requires most of value in the correlation matrix to be greater than the .3 range. Here in the result matrix leaving only a few values aside rests all the values is satisfying the criteria. KMO and Bartlett's Test:

57

KMO and Bartlett's Test Kaiser-Meyer-Olin Measure of .576 Sampling Adequacy. Bartlett's Test of Sphericity

Approx. Chi-Square

189.773

Do

55

Sig.

.000

Table: 11 Kaiser-Mayer-Olin A measure of whether your distribution of values is adequate for conducting factor analysis. A measure >.9 is marvelous, >.8 is meritorious, >.7 is middling, >.6 is mediocre, >.5 is Miserable and unacceptable. In this case it is miserable and not fit for the factor analysis process. This shows that the data needs to be modified in a way thus it get the correct fit for the factor analysis process. Bartlett’s test of Sphericity This is a measure of the cumulative normality of researcher’s set of distribution. It also Tests whether the correlation matrix is an identity matrix. A significance value