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Analysis of Nilkamal
Summer Internship Report
Submitted In Partial Fulfillment of the Requirements
For The Award of the Degree Of
B0029
MBA 3rd Semester
Guided by
ISAAC JAYANT
Assistant Professor
August 2014
Submitted to:
SCHOOL OF MANAGEMENT AND RESEARCH,
ITM-UNIVERSITY RAIPUR, CHHATTISGARH, INDIA
This is to declare that this report has been written by me. No part of the report is
plagiarized from other sources. All information included from other sources has
been duly acknowledged. I aver that if any part of the report is found to be
plagiarized, I shall take full responsibility for it.
____________________
ALTAF AHMED
B0029
Place:
Date:
Certificate By Institute
______________________________
Mr. Isaac Jayant
Place:
Date:
__________________________________
Dr. Monika Sethi
_____________________________________
Place:
Date:
Acknowledgement
It is great opportunity for me to convey my heartful regards to those who help
me to make this report purpose full.
I would like to convey my never ending gratitude towards our respected HOD
Dr Monika Sethi
I would like to convey my deep sense of veneration towards Mr. Isaac Jayant
who is my research mentor and my project mentor Mr. Vivek Srivastava
Regional Manager, Nilkamal furniture & Mr. Amit Sharma, Nilkamal furniture,
who helped me in selecting the topics for the project.
I would also like to thank to all my teachers and faculty members and I wish to
thank all my seniors friends and general people who help me to make my
research successful.
Preface
The research report program is designed to give the impact to a candidate
who would be the manager of the future. it gives idea about the corporate
happing and markets position. The real life position is entirely different from
stimulate exercise enacted in an article environment inside the class room. It is
because of the reason that the research report programmed is designed so that
the manager of tomorrow does not feel odd when the time comes to should the
responsibility.
The experience that I have gathered during my research report has certainly
provide me a remarkable experience, which I believe that will help me to
shoulder any assignment successfully in future.
By going through the research one can find my work more informative &
interesting by knowing the various view point of the respondent. The finding
and interpretation gives a clear picture about the streamlining the sale and
distribution. Of course every study has some limitation, which is mention on
the last.
Table of Content
CHAPTER NO.
I
II
III
TITLE
PAGE NO.
Introduction
Company Profile
Review Of Literature
12
IV
Research Methodology
4.1 Introduction
4.2 Research objective
4.4 Sample and data collection
4.5 Stastical treatment of data
VI
SWOT Analysis
VII
New Prospects
VIII
Limitations
IX
Conclusion
XI
References / Bibliography
APPENDICES
- Questionnaire
Chapter I
INTRODUCTION
CORPORATE WORLD
Nilkamal's mission is to 'provide value through convenience' to its consumers.
We aim at attaining a firm grip on the market through value initiatives directed
towards our stakeholders. Since inception, Nilkamal has traveled in only one
direction upwards. There has been no looking back and the company has
persevered to attain market leadership in this industry. In the first year of
production itself, the company witnesses a profit of more than Rs. 5 crores. The
compounded growth has been 30% annually and today the annual profits have
reached Rs. 12 crores and 37 lakhs. Through our years we have proven this
track record.
Chapter II
Company Profile
Directors
Under his guidance, @HOME has grown in a short span of time to provide quality
furniture, accessories, design solutions, professional guidance, interest free loans,
etc
PLANT LOCATION
Nilkamal has business presences in over 30 locations all over the country and
manufacturing facilities in all four corners of the region.
West India
capacity of 6200 metric tons Per Annum catering to Moulded Furniture & Material
Handling Chairs business.
Chapter III
Literature Review
COMPETITOR
Nilkamal faces competition in the field of plastics products manufacturing
mainly from two competitors: Prince
Supreme
Prince
leaflets. This reduces the lead time in big way resulting in fastest delivery to
clients.
Starting their exports in 1976 today Prince Product find their way to over 50
countries from South America, USA, Africa, and Gulf to Fiji island in the east.
They are rapidly developing the domestic market s with networks of 150
distributors, dealer, stockiest already in place. Their focus is also concentrated
on institutional selling. their client include among other of Uniliver (India) Pvt.
Ltd. , P&G, Nirma, Godrej, Colgate , Palmolive, Boost India , Pepsi, Coca
Cola, Reliance Industries and etc.
Today PRINCE with its unique monogram enjoys a high brand image globally.
PRINCE has been certified by DNV certification B.V. under accreditation of
the Dutch Council for Accreditation (RvA) as a Quality Management System
Standard for design, manufacturing, development and marketing of all the
products. They are the only ISO 9001/2000 certified house ware company in
India.
SUPREME
SUCCESS STORY
To describe Nilkamal plastics evolution from a small family owned plastics
button maker to India leading listed company in molded plastics furniture is a
simplistic way of describing its success story. So we will throw in the fact that
the Rs. 400 crore company, which is also into material handling product, is
the world's largest manufacturer of plastic furniture, has establish its presence
beyond . India shores, It operates out of neighboring markets like Bangladesh
and Sri Lanka (where it is No I Brand) and enjoy and impressive markets
shares of close to 27% in India.
And it's the last bie that most significant, considering that the molded plastic
business has been a commoditized one, dominated by a large number of local
players and only a handful of known brands such as VIP Modem, Supreme,
Prince and Cello.
Manish Parakh Director of Nilkamal plastics attributes the company success to
regular investment in two key areas Research & Development and brand
building. In its early day, the fully molded plastic chair was a novelty an
exciting alternative to the heavy and unglamorous looking wood and mortal
chairs."People were shifting from steel and wood to plastic as they were light,
durable, inexpensive" say Parakh. That they also gave a wide choice of eye
catching colors and design helped. But there was a hitch while plastic furniture
was doing very well in the institutional segment, such as offices, restaurant and
in the outdoor public places, the idea did not find enough acceptances in the
home segment.The reason was that consumers did not see plastic furniture as
belonging to the living room, and bough it mostly for outdoor use. Nilkamal
introduced innovative design and color that went beyond the plain vanilla look,
such as decorative chairs and wood and granite finish. "We had to look for
designs which fit indoors" says Parakh. The industry also got a shot in the arm
with Reliance's Hamnagar plant coming up in 1990, and the supply of
polypropylene, one of the key ingredients, overshot demand for the first time.
With input cost down, molded furniture become a lot more affordable. Volumes
went up but. Bought its own share of problem, such as high cost of
transportation through it weights less, Plastic furniture occupies a lot space.
The solution was to decentralize manufacturing, through regional plants, to
reduce freight costs. The first plant come up at Sinner in Maharashtra in 1991,
and was followed by other in Silvassa, Pondicherry, Noida and West Bengal.
The multi location strategy also helped counter local players, who were more
nimble footed and aggressive and often copied design and models, tweaking
them slightly to avoid design patent issues. Simultaneously, the distribution
network was ramped up and today, Nilkamal has an impressive 27 branches
across the country, with 430 direct distributors over 15,000 dealers and a 100
storage sales team. The distributor's selection process is rigorous and every
prospective partner is required to come down to the company and here
headquarters for a familiarization trip at their own expense. Once in Mumbai,
they are losted by the company and over a period of two day's are taken
through an orientation program that covers various departments like marketing
sales, account and quality. "We want them to understand the culture of the
company before the join". Say's Parekh. "By tee time they leave they have met
all the people on the way up. This way they feel part of the company from day
one. The international business is also picking speed, and its Croma brand
launched in Bangladesh last year , is the second largest in that market. In Sri
Lanka, where operation were launched in 1999 the Nilkamal brand is already
the market leader, with over 75% market share. These say's Parekh time is
divided between the existing business and the home division, a new retail chain
of home famishing furniture and accessories. The first store has been recently
launched in Pune and will be followed up with two more in Mumbai.
But the core business is where the action is, with input cost on the rise again.
Parakh say's local supplier resorting to using reprocessed material. Which is
lower quality that fresh or (virgin material). In fact's Nilkamal latest
commercial featuring actor Sanjat Suri address the issue. According to Parakh
over the next few years the companies trust is going to be on penetration and
distribution especially in upcountry markers. He plans to take Nilkamal
markets share to 35% through classic designs and value added products like
cushioned sopha set designed chairs plastic cupboards and molded cabinets. A
new experiment card Nilkamal home ideas is also underway in urban markets.
Where in distributors are been supported in setting up stores next to their
offices were the entire ranges of Nilkamal furniture is displayed, Clearly
Parakh sees plenty offering for growth. Particularly in the chairs business,
which makes up for 80% of the plastic industry? "Wherever there are two
lakes, a chair can be placed" he says.
Chapter IV
Research Methodology
Problem Defining
Identification of new prospect and SWOT analysis of Nilkamal chairs.
To know the markets share of Nilkamal chairs.
To find out the satisfaction level of Nilkarnal chairs user.
Know the new prospects of Nilkamal chairs.
To have a comparative analysis of Nilkamal chairs of its competitor.
To conduct a SWOT analysis of Nilkamal and its competitor.
Response
Yes
No
No. of respondent
102
64
Percentage (%)
61.44
38.55
Graph
120
100
80
yes
no
60
40
20
0
No. of Respondant
Percentage
Pie-Chart
No. of Respondant
yes
no
Interpretation
The given chart and table show the no. of respondents who use plastics
chairs. It was found that 61.44% of the respondents like to use plastics chairs
and 38.55% of respondents do not like to use plastics chairs. Those respondents
who not using chairs are using metal chair, wooden chair, and etc.
Name of Company
Nilkamal
Prince
Supreme
Syntax
other
No. of User
60
42
22
09
05
Percentage (%)
43.47
30.43
15.94
6.52
3.62
70
60
50
40
No. of User
Percentage (%)
30
20
10
0
Nilkamal
Prince
Supreme
Syntax
Pie-Chart
other
No. of User
Nilkamal
Prince
Supreme
Syntax
other
Interpretation:
The given table and charts shows the brand preference of respondents in
plastic chairs. It was found that 43.47% of total respondents Prefer Nilkamal
which is at the top and the second preference of respondents is prince with
30.43% and third Supreme with 15.94.
No. of respondents
71
4
12
Percentage %
85.54 %
4.80 %
14.45 %
Graph
80
70
60
50
No. of respondents
Percentage %
40
30
20
10
0
Less than 100
Between 100-500
Pie-Chart
No. of respondents
Interpretation
The given table & charts shows that the total no. of chairs used by
respondents. It was found that our 85.54% respondents majority of them are
using less than 100 chairs, 4.81 % of them use between 100 to 500chairs and
14.45% of them use more than 500 chairs. Thus the majority of fever users are
more than the more users in the city of Raipur
No. of respondents
0
0
0
102
Percentage %
00
0
0
100%
Graph
120
100
80
No of Respondents
Percentage
60
40
20
0
monthly
quarterly
halfyearly
yearly
Pie Chart
No. of respondents
Monthly
Quarterly
Half Yearly
Yearly
Interpretation:
The given table and charts shows how frequently the respondent purchases the
chairs. It was found that chairs out of 100% respondent majority of them prefer
yearly purchase of chairs. None of the total respondent purchases the chairs
monthly or quarterly and half yearly
Response
Brand Image
Quality
Price
Others
No. of respondents
11
29
39
4
Percentage %
13.25%
34.93%
46.98%
4.8%
Graph
45
40
35
30
25
No. of respondents
Percentage %
20
15
10
5
0
Brand Image
Quality
Price
Others
Pie-Chart
No. of respondents
Brand Image
Quality
Price
Others
Interpretation:
The given table and charts shows the basis for the purchase the chairs.
It was found that majority of people is 46.95% prefer price based purchase
chairs. The second basis goes for quality with 34.93% and third 13.25 % and
4.8% is brand image and other basis purchase of chairs.
Response
Yes
No
No. of respondents
90
12
Percentage %
88.23%
11.76%
Graph
100
90
80
70
60
No. of Respodents
Percentage
50
40
30
20
10
0
yes
no
Pie-Chart
No of Respondents
yes
no
Interpretation
The given table & chart shows the effect of price of chairs on buying behavior
of customer. It was found that the outcome was a single response. Among 100
% of respondents 88.2% of them supported that the price of the chairs has an
affect buying behavior.
No. of respondents
59
24
Percentage %
71.08%
28.92%
Graph
70
60
50
40
Yes
No
30
20
10
0
No. of respondents
Percentage %
Pie-Chart
No. of respondents
Yes
No
Interpretation
The given table and charts shows that the satisfaction level of the customer
with performance of chairs. It was found that the majority of the respondent i.e.
71.08% of the total respondent is satisfied with the performance of their chairs.
While only 28.92% of the consumer were not satisfied with the performance of
their chairs.
No. of respondents
13
22
Percentage %
15.66%
26.50%
48
0
57.83%
0%
Graph
60
50
40
30
20
10
0
No. of respondents
Percentage %
Pie-Chart
No. of respondents
By Distributor
By Agent of Company
By Friends
Advertisement
Interpretation
The given table and charts shows the source of awareness of consumer
about the chairs. It was found that 57.83% of total respondent get aware about
the different model of chairs through friends, 26.50% of them get aware
through agent of the company and 15.66% aware by distributor. Advertisement
of chairs does not exist in the market that is why they dont play any role to
aware people. Thus there is more need of advertisement of chairs and chairs.
No. of Response
160
6
Percentage %
96.38%
3.61%
Graph
180
160
140
120
100
yes
no
80
60
40
20
0
No. of Respondents
Percentage
Pie-Chart
No. of Respondents
yes
no
Interpretation
The given table and charts shows the need of Advertisement and sales
promotion scheme for chairs. It was found that the majority of 96.38%
respondents are agreeing that is need of more advertisement and sales
promotion scheme for chairs.
Chapter V
Majority of users of chairs i.e. 43.47% of total user prefer Nilkamal chairs.
The second and third preference of prince & Supreme chairs with 30.43% and
15.94%.
Majority of user i.e. 85.54% of total are minor user of chairs, they use less
chairs.
More need of Advertisement and Sales promotion schemes of chairs.
Chapter VI
SWOT Analysis
Strength
uses.
Wide range of model. Satisfying customers need.
Innovative model and colours of Nilkamal product.
Effective and Efficient management and workforce.
Extensive market research through research agent.
Long lasting goodwill of the company
It has well qualified staff with proper attention towards the need of the
consumer.
Weakness
Nilkamal chairs have high prices as compared its competitors (Prince&
Supreme),
Nilkamal concentrates only big user of chairs & chairs and miner
concentrates less user of chairs & chairs.
Nilkamal is not able to properly communicate its various models, new
Opportunity
manufactured.
Small trolley can be manufactured for home and departmental store.
Nilkamal can manufacture folding chairs in order to save floor space when
not in use.
New opportunities are arising due industrialization and globalization.
Threat
The competitors of Nilkamal mainly Supreme and Prince can tend to
eat into the market share of Nilkamal with their much lower rates.
According to some chairs user their quality is also comparable to the
Nilkamal chairs.
In such a scenario Nilkamal will have to reduce the price of its chairs
otherwise it might lose its precious customers to it s Competitors.
Chapter VII
New Prospects
New Prospects
1. Rubber Industry
2. Refinery Industry
3. Plastic Glass Industry
4. Storage
Chapter VIII
Limitations
LIMITATIONS
Chapter IX
Conclusion
Conclusion
Chapter X
Suggestion &
Recommendation
Chapter XI
Bibliography
Appendices
Questionnaire
(b) Prince
(c) Supreme
(d) others