You are on page 1of 103

PART-I

HISTORY OF COMPANY

HISTORY OF THE COMPANY


Asahi India Glass Ltd. (AIS) is the largest integrated glass company in India,
manufacturing a wide range of international quality automotive safety glass, float
glass, architectural processed glass and glass products.
AIS is jointly promoted by the Labroo family, Asahi Glass Co. Ltd., Japan and Maruti
Suzuki India Ltd. AIS have the following three Strategic Business Units (SBUs):

Automotive Glass Unit AIS Auto Glass

Float Glass Unit AIS Float Glass

AIS Glass Solutions Ltd AIS Glass Solutions

The Indian Glass Industry is still at nascent stage and it is rapidly developing. The glass
industry is very organized. The business environment is getting more competitive by the
entry of new players beside the three major companies as Saint Gobain, AIS and
Modiguard.
Problem statement
The impact of advertisement on the demand of commodity product specifically Glass is
to find out. India is the only country where glass as commodity product is being
advertised on TV. But their effectiveness in impacting consumers mind for using more
glass is not clear. How the ad affects the market share and perception of the glass in the
mind of consumers is to be figured out.

Scope of the Study


The study will be conducted in India with limited scope of A and B class cities where
80% (building material) commodities are sold. Primary focus of the study will be on
Glass. The most of the survey is limited to Mumbai and nearby city around it.
Literature survey
This is the most researched topic and various methods were adopted to check the
effectiveness of advertising by different researchers. But that previous research has not
specically measured the impacts of advertising and brand value, and their joint effect, on
rm performance for the glass kind of commodity product. We could not find the study
which talks the likeable attributes in commodity products like glass. What exactly
customers are looking for in a glass? By examining the effects of advertising and brand
value, our work contributes to the existing literature.
The Research Problem
The research problem is to find out the impact of advertisement on demand of commodity
product specifically glass.
Research Objective
Based on the problem statement, the research objectives are:

To find out whether consumers are really involved in Glass buying decision if yes
then to what extent?

To find out, Are consumers really aware of any Glass or cement Co, brand or
Glass products?

To find out Does advertising has any impact in the minds of consumers?

Can the advertising be measured or connected with a equation to the top and
bottom line of the company.

Research is going to be descriptive as well as applied in order to achieve the desired


objectives. The null hypothesis and the research hypothesis has been developed keeping
assumption that the research will be specifically for the commodity product glass and
keeping all the factors affecting the glass busying constant other than advertisements.
The null hypothesis and alternate hypothesis is prepared to prove the research objectives.
After the research study we should be able to judge the above hypothesis by accepting or
rejecting it. The result will tell us about the effectiveness of the advertisement on glass
(commodity product) and should also explain the awareness on the different glass brands.
The Research Design
Research is going to be descriptive as well as applied in order to achieve the desired
objectives. Most of the objectives will be derived from the primary data after the survey.
Focus group, stratified sampling technique in A and B class cities particularly Mumbai
and its nearby cities will be surveyed.

Research approach
In this study, both sample survey and statistical approaches will be applied to collect data
and establish the relationships between variables of interest.
Sources of data
Both secondary (documents and records) and primary (a sample survey of customers and
channel partners in this case) data sources will be used in this work.
Research instrument
The structured questionnaire will be used for the survey. The SPSS tool is being used
for the analysis purpose. The complete research study will be done in 8 weeks
parts.
Recommendations

The commodity market has very less involvement of the end consumers in the
buying process , hence the company should push dealers and retailers through
different schemes , gifts and by giving them awards of Best Retailer of the Year
and Best Dealer of the Year awards. The visibility at the retail counter should
be increased by giving them pad, cutting tools to carpenters via retailers having
AIS inscribed on it.

1. The companies can provide booklet containing samples of glass to carpenter to


push their products and increase their brand awareness. They can organize some

kind of training on new design to carpenters. They should distribute danglers,


calendars to retailers shop.
2.

They can put their videos on You tube to increase the awareness. The company
should project their positioning statement See More, See Clear in their
advertising media.

3. The company can direct its advertisements through different channels towards
these functional benefits of glass. They should organize meets and exhibition with
retailers, The mode of communications like PR, sponsorships to events will be
good method to create the awareness.
4. The advertisements activities should be targeted on the middle segment. The
awareness can be increased by through tie-ups with the social society/community
like BMC and CARE to increase the awareness level among the middle income
category.
5. They can also have the tie-ups with the known builders and architects to advertise
their brands on their websites. Different festivals should be targeted for the
awareness.

Industry Overview
Float Glass Industry in India
India with more than one billion people, one sixth of the worlds total population has
become an attractive destination for investment in Glass Industry for some time, it
contributes around (6 %) one sixteenth of the worlds total Gross Domestic Product. It is
one of the largest economies of the world that had a middle-class consumer market in
excess of 300 million people. With increasing purchasing power and development of
service sector, India is definitely on the radar of all the glass manufacturing companies.
Float glass Industry in India is relatively new; the first float glass plant was established
as recently as 15 years back. In this period India has emerged an important player in float
glass production and today there are six float lines in operation and five new lines are at
different stages of completion. It goes without saying that the rapid increase in demand
during the late 1990s due to construction activities, in addition to provoking a cutback in
exports, charmed some international firms which now are the major producers of float
glass in the country.
India had been using sheet and lower quality float glass through ages. Secondary
processing was negligible with the majority of glass being installed in basic, monolithic
form such as casting glasses. Until 1992, only sheet glass was being manufactured in the
country, with a limited quantity of float glass being imported. In 1993, the first float
glass plant was set. Since then new varieties of float and sheet glass capacities have been
added. Against decades of old practice of casting glass in sheets over plain surfaces, the
technology of float glass had brought about a significant change in the production and
use of glass. The switch from low quality sheet glass with limited range and thickness to
8

the sophisticated float glass took place in just a decade.


Totally, the flat glass industry grew by about 90% between 2000 and 2007, resulting in a
compound annual growth rate of 11%. The per capita consumption of glass, which was
0.41 kg in 1999, reached 0.80% kg in 2007. The demand for flat glass in India has
increased at an average rate of 12 percent to 15 percent each year for the past five years.
Respective market share of float and sheet glass is 89 percent and 11 percent. However,
the greater proportion of sheet and lower-quality float capacity will gradually phase out
and be replaced with high-quality float. The two main consuming sectors of flat glass in
India are the construction and automotive industries, both of which have been
experiencing hyper growth for the last five years.
User Segments
Eighty-three percent of the glass produced is used in the construction industry, 15
percent in the automotive industry and 2 percent in miscellaneous industries such as
furniture and photo frames. The automobile industry, four-wheelers, has registered 18.6
percent growth between January and November 2007. The construction sector is growing
around 12 percent per annum. India exports about 13,000 tons of glass per month to the
Middle East, African countries, Europe and South America. The rapid increase in the
demand for flat glass in the domestic market has resulted in a cutback in exports by as
much as 60 percent in the last couple of years.
Major Producers
The major producers of float glass in India are three foreign joint ventures and an Indian
company:

Asahi India Glass Ltd Taloja, Maharashtra, Roorkee, UP; Asahi Indias two plants
produce 500 tons and 750 tons per day. Asahi India Glass Ltd. It started operations in
December 1994. It started off as a joint venture between the Tatas and Asahis of Japan.
With the exit of the Asahis in 2003, it was taken over by Asahi India Safety, the
automotive glass manufacturing company. The merged entity is known as Asahi India
Glass Ltd. The company started a new float plant with a 750-ton capacity on Jan. 1, 2007
at Uttaranchal in North India.
Saint-Gobain Glass India Ltd., Sriperumbudur, Tamil Nadu; Saint-Gobains two plants
produce 550 tons and 700 tons per day. It started operations in 2000 and is Indias largest
capacity float plant.It is a 100 percent subsidiary of the Saint-Gobain Group
Gujarat Guardian Ltd., Ankleshwar, Gujarat, Gujarat Guardian, the first company to set
up float glass plant in India produces 550 tons per day; It is a joint venture between
Guardian Industries International Corp. of the United States and Indias Modi Group.
Triveni Glass in Allahabad produces 200 tons of float glass per day. Its a mini float plant
based on Chinese float-glass technology.
New Entrants
Other than these four established players, a few domestic companies too are venturing in
Float glass production; there float lines are at various stages of completion. All the three
new players are related to glass industry.
Gold Plus Glass Limited- Gold Plus glass is a New Delhi based glass processor, and has
a significant market share in processing glass industry, announced that its Roorkie based
latest float glass manufacturing plant of Gold Plus, would start production in June, 2008.
The furnace may be fired on any suitable day in June; 2008.The estimated cost of this
10

project is approximately Rs.400 Crores in the first phase. The capacity of this float glass
production line would be 460tonnes per day. This float glass production line will produce
clear and green tinted glass from 2 to 19mm thickness. Most of the machineries for this
plant are from Europe and America and Yaohua Glass Group of China.
Sejal Glass another prominent manufacturer of value added glass, based in Mumbai
( Western Coast) has ambitious plans to set up a Float Line. The factory site is at
Bharuch, for which the construction has already begun and production will commence
from March 2009. The plant will undertake manufacturing of Clear and Tinted Glass
HNG Float glass - Hindustan National Glass company, the leading manufacturer of
container glass in India, made the announcement of setting its float glass plant in Dec.
2007, in Halol, Gujarat. Capacity of this line will be 600 Ton/day and is expected to be
on stream by middle of 2009. In its press release the company stated that equipments
would be sourced from European suppliers.
Current capacity versus demand in India
An excess capacity of raw glass in the industry was experienced in the beginning of
2006. This excess capacity could become larger in the years to come if current
investment plans see the light of day. In 2007, the excess capacity was four times that of
2006, and in 2008 it could be six times that of 2006. This is assuming demand continues
to grow at the current double-digit pace. It is interesting to note that the cumulative profit
of flat-glass manufacturers in India is still in the red.
Future Prospectus
The construction and automotive industries are the most important consuming sectors,

11

almost 80 million square feet of land in India is earmarked for shopping malls, taking
into consideration Special Economic Zones and Corporate offices, there is an immense
opportunity in Indian Glass industry. Nowadays, taking climate, safety, sound
attenuation, energy conservation and aesthetics into consideration, builders are opting for
more glass in their construction. The glass revolution is also taking place in the
automotive industry which is predicted to grow at more than 15% till 2012. Anyway, it
isnt all roses for Indian glass industry, problems like the overcapacity of raw glass (and
a projected surplus of processed glass); Chinese competition (in spite of anti-dumping
duties) and the lack of codes of standards threaten Indian glass industry. As far as
overcapacity concerned, analysts say that the supply will far exceed demand at least until
2009. Excess capacity, increased competition and the development of a regulatory
framework are the real future challenges for the Indian glass industry.
Current Scenario
The domestic glass industry and trade has been progressing at a consistent impressive
rate of growth of 12-13% per annum during the last nine years. However this progress
has come to a rude halt in the fourth quarter of the current financial year 2008-2009 and
the rate of growth has turned negative. During the last financial year 2007-08 all the three
float glass manufacturing companies operating in the country SGG, GGL and AIS had
combined sales of 2043 tonnes per day of float glass on an average. However , during the
fourth quarter ( January- March ) of the current financial year 2008-2009 this has slide to
1885 tonnes per day on an average having a negative growth rate of -8.38%( Glass Yug
magazine, January Edition- 2009).

12

Year

MT/Day

%Growth

2000-01

886

2.66

2001-02

980

10.6

2002-03

1106

12.85

2003-04

1310

18.44

2004-05

1427

8.93

2005-06

1402

14.22

2006-07

1695

20.89

2007-08

2043

20.46

2008-09 ( Jan-Mar)
1885
Table 1 : Domestic Float Glass Sales

-8.38

The float glass sales trend shows that from past nine years sales was increasing
continuously, but due to economic slowdown and recessionary condition it has decreased
in the beginning of 2008-09 turning into negative growth rate in the sales .

Figure 1: Domestic Float Glass Sales


13

Figure 2 : Sales Growth of Float Glass


The total capacity of including all the major float glass companies in India comes 4650
tonnes per day. Out of which the three major companies like Saint-Gobain Glass India
Ltd. has 1400 tonnes per day, Asahi India Glass Ltd. with 1200 tonnes per day and
Gujarat Guardian Ltd. with 550 tonnes per day. The other three companies Gold Plus
Float Glass Industry Ltd., H.N.G Float Glass Ltd. and Gold Plus Float Glass Industry Ltd.
have corresponding capacity of 550, 550 and 400 tonnes per day.
Total Capacity ( in tonnes per day)
Manufacturers
Gujarat Guardian Ltd.
Asahi India Glass Ltd.
Saint-Gobain Glass India Ltd.
Gold Plus Float Glass Industry Ltd.
Sejal Architectural Glass Ltd.
H.N.G Float Glass Ltd.
Total Capacity
Domestic Sales on an average/day
Export sales on an average/day
Domestic + Exports
Extra Supplies or Stocks

Capacity( in tonnes per day)


550
1200
1400
400
550
550
4650
1885
350
2235
2415
14

Table 2 : Total Capacity

Figure 3 : Company wise capacity of production


So far as the concern of export sale, SGG and AIS are the performing extremely well by
recording export sales of more than 700 tonnes per day on an average while the export
figure for GGL is negligible as its production capacity is limited to 500 TPD. The total
capacity gets absorbed mostly in domestic market with 1885 mostly whereas export sales
per day are 350 TPD. The extra supplies or stocks are 2415 tonnes per day.

Break-up of Capacity ( in tonnes per day)


Total Capacity
Domestic Sales on an average/day
Export sales on an average/day
Extra Supplies or Stocks
Table 3 : Break-up of Capacity

15

4650
1885
350
2415

Figure 4 : Break-up of Capacity


Market Share
The SGG has the highest market share of 38.89%, whereas AIS stands second with 31.52
% market share. The GGL has 23.23% market share and the Gold plus float glass
Industry Ltd. covers 6.37% market share.

Float Glass : Market Share ( Domestic Market )


Manufacturers
Market Share
Saint-Gobain Glass India Ltd.
38.89%
Asahi India Glass Ltd.
31.51%
Gujarat Guardian Ltd.
23.23%
Gold Plus Float Glass Industry Ltd.
6.37%

Table 4 : Market Share

16

Figure 5 : Domestic Market Share

Introduction
Can Advertising Contribute?
On the heels of what seems to be a never-ending series of attacks on advertising,
two new studies purport to reveal more evidence of its diminishing impact. For several
years, respected industry leaders have been assailing both advertisers and their agencies
for lack of performance. Some experts, such as Sergio Zyman, former advertising head at
Coca-Cola, claim that ad agencies have abandoned their basic responsibility to sell the
brands they're paid to advertise. Others, including noted author Al Ries, have gone even
further, contending that advertising's business building capabilities now pale in
comparison to the "buzz" public relations can generate. (See "Is Advertising Dead?"

17

Adding fuel to this fire are two recently released studies. The first, by Yankelovich
Partners, maintains that the effectiveness of ad campaigns has been declining markedly. It
cites as evidence the apparent growth in consumers' negative perceptions of advertising.
According to Yankelovich, about 6 in 10 U.S. consumers report that they now feel more
negatively about advertising than they used to. Furthermore, they claim to "avoid buying
products that overwhelm them with advertising and marketing."
The second study, recently released by Deutsche Bank, is based on a more wide
ranging analysis of sales and marketing spending data. It concludes that TV advertising
delivers, in most cases, a negligible return on investment (ROI) for mature packagegoods brands. According to the Deutsche Bank data, only 3 of 18 major brands
competing in established product categories (ranging from beer to detergent and from
snacks to toothpaste) could demonstrate financial returns that exceeded the company's
investments. In the other 15 cases, the companies were simply spending more money
than they were making. No bang for the buck Reports such as these have caused
consternation among advertisers and the agencies they've enlisted to create and deliver
sales-building and business-enhancing messages. Wall Street analysts and company
boards are increasingly expecting and demanding accountability for marketing
expenditures. If, as the Deutsche Bank data contend, major advertisers such as CocaCola, Heinz, and Colgate are realizing no tangible business benefits from their
expenditures, then ad money will likely be reallocated to other, higher-return uses. The
dilemma, of course, is to identify what those alternatives might be. According to the
Deutsche Bank report, the solution is not an increase in trade-promotion spending, as this
tactic also falls short when it comes to ROI. So where are companies to turn? What are
these studies telling today's brand marketers? Perhaps, as some have suggested, the
18

solution is simply "better advertising." The argument is that the money is squandered -not because all Advertising is wasteful, but because too many companies have been lured
into creating ad campaigns that just don't work. Either marketers are employing the
wrong media mix (for example, relying on expensive and inefficient TV commercials), or
they're relying on the wrong selling strategies (such as creating messages that have little
or no potential impact). Does a company's advertising just need to "work harder"? Or is
the real problem that today's advertisers are heading in the wrong direction, and as a
result, are making no apparent progress toward meeting their ROI challenge? It appears
that far too many companies operate under an incomplete or erroneous model of how
advertising can best contribute to building a healthier brand. Consequently, they fail to
hold their ads -- and their ad agencies -- accountable for the end results they should be
delivering.
Consider the Yankelovich study, which apparently equates "liking" advertising
with its impact. The study suggests that if people say they're feeling increasingly negative
toward advertising, then that means that advertising has increasingly less impact. This
argument would imply that the solution for enhancing the return on advertising
expenditures would be to make the ads more entertaining and fun to watch, hear, or read.
But should that be the goal? Is advertising's real purpose to entertain -- or to sell? As
experts from David Ogilvy to Sergio Zyman have pointed out, advertising's objective is
not to be "fun to watch." Entertaining consumers is not the reason companies invest
billions of dollars in ads. Customer acquisition or customer retention? What should
advertising's goal be? What are the appropriate objectives for today's marketers to
pursue? These are the questions that marketers must answer as they rethink their targets
and reexamine their strategies. Some time ago, companies began shifting their emphasis
19

from customer acquisition to customer retention. That's because myriad published studies
have emphasized what has now become a management mantra: It costs a lot less to keep
a customer than it does to acquire a new one. (See "The Constant Customer" and
"Maximizing Return" in See Also.) Yet the goals that many companies set for their
advertising have remained essentially the same as they were decades ago, when brands
were being launched and the aim was to attract new customers. What are these stated
objectives? What do today's marketers demand of their ad agencies? They want agencies
to build brand and advertising awareness, increase consumers' positive attitudes toward
identifiable purchase motivators, and boost the number of customers who state a positive
intention to buy the brand.
But these measures all derive from a time past, when package-goods companies
were defining what marketing was all about (the "Four Ps" of product, place, promotion,
and price) and focusing on building brand share for frequently purchased, lowinvolvement consumer products. And they were pursuing these goals through advertising
that was designed and executed to increase the brand's profile and make it more "top of
mind." But those outcomes are not the hallmarks of increased customer retention. Rather,
they are indicators of the potential for customer acquisition. As several Gallup
Organization studies have pointed out, the health of a company's customer relationships
is reflected in the nature and depth of the emotional connections that have been forged
between the brand and the customer. (Beyond Customer Loyalty) Brand awareness is
an insensitive and even inappropriate indicator of the strength of a company's customer
relationships.
However, that may be exactly why the Deutsche Bank study has concluded that
advertising typically doesn't work for mature brands in mature categories. What should
20

the role of advertising be for brands such as Coke and Heinz? Should their ads focus on
increasing the awareness of these already-familiar names? Or should they seek to deepen
and extend brand relationships by enhancing the engagement of their current customers?
The problem with attacking the issue of advertising that reportedly doesn't work is that
too many companies are still defining what works according to an outmoded customer
acquisition model. They are looking at what it takes to generate trial, and that's a mistake.
In a world that's now strongly focused on customer retention, advertising must be
designed, crafted, and held accountable for its ability to enhance the customer
relationship, not just initiate it. This means that company marketers -- at least those who
are marketing established brands -- must rethink not just what they're spending, but what
they're doing, what they're saying, and how they're monitoring their progress. Unless
advertisers and their agencies reexamine where they're heading and reconsider what
they're striving to achieve, marketers will continue to read bleak and scary reports about
advertising's lack of impact and effectiveness. Ad expenditures, already clearly in
jeopardy, will decline. And the real promise and potential of advertising will, sadly,
continue to be left unrealized.
Marketers are too willing to concede that their products have reached commodity
status. That's a major reason why advertising effectiveness has suffered mightily. Here's
the problem: When companies treat their brands the same as their competitors', they no
longer focus on attributes of the brand itself as reasons to buy it. Instead, they talk about
the people who buy the product, or they make fun of the advertising -- anything to keep
from admitting that their product purportedly has no real advantage over the next guy's.
So, when advertising is forced to get away from concentrating on what makes it most
21

effective and efficient -- tangible and meaningful product benefits -- the result is likely to
be disappointing.
It's amazing how sophisticated marketers make this mistake. The contention is that they
are selling their products short; that their products have advantages that can be exploited
by great advertising if only their custodians would look harder for the hidden gems
buried deep within the product -- or maybe just under the surface.
Although the agency is only too happy to oblige, the client is clearly the place to
lay the blame. After all, if the top guys at Miller Brewing Co. had insisted that their
agencies dig out and exploit attributes of their beers, instead of the weird people who
drink their beers, they would be gainfully employed today.
The agencies, of course, were glad to be let off the hook. It's hard work to come
up with an advantage that can give a product an edge and convey that advantage in a
meaningful, creative and entertaining way. How much easier to ignore the product
altogether and focus on the lifestyles of the consumers who use the product. That way,
you can say anything you want.It's easy to go down the road that says most products are
the same. You see that most often when companies are floundering.
Kellogg Co. is a sad case in point. Its troubles started when the cereal companies
drastically lowered the prices on their products, giving consumers the impression that
they were all the same. (Kodak did the same thing with its film.)
When that line of thinking takes hold, management starts looking for nonproduct-related things to talk about. So now, the head marketing guy at Kellogg concedes
22

that, because "the functional benefits are the same" from brand to brand, Kellogg is intent
on creating a personality for each brand -- and a relationship with its consumers.
If the "functional benefits" of a brand are all the same, how can the brand's
personality be distinct, other than by fabricating it out of whole cloth? A brand's
uniqueness comes out of its real and tangible product advantages.
The moral of the story is that few consumer products are commodities unless
their owners concede that they are. And because so many companies today are making
that concession, smart marketers have a terrific new weapon at their disposal.
Marketing is at the top of the list because this is the area where rigorous financial
evaluations have not been used extensively to justify the expenditures within a firm.
Manufacturing costs have been reduced from 50 per cent to 30 per cent, and general
management costs have also declined as a proportion of the total corporate costs from 30
per cent to 20 per cent, but in contrast to manufacturing and general management costs,
marketing costs have increased significantly from only 20 per cent of the total corporate
costs 50 years ago to 50 per cent today. In spite of the huge marketing expenditures,
managers frequently do not have concrete measures or knowledge of what is obtained in
return from a significant investment in marketing. Moreover, many have doubted that
definite quantitative measurements of marketing effectiveness could ever be made
Problem Formulation
The impact of advertisement on the demand of commodity product specifically
Glass is to be find out. India is the only country where glass as commodity product is
23

being advertised on TV. The huge amounts of investment in ads are happening in the
industry. But their effectiveness in impacting consumers mind for using more glass is not
clear. Do the advertisements help the company in commanding more market share, has
become the main issue. The connection of ad to the top and bottom line of the company is
not yet established clearly for the commodity product such as glass. The perception of
consumers towards glass is still very traditional as that of fragile nature etc. The
relationship between glass buying behavior and the awareness towards the brand among
the commodity glass market is to be figured out. All these issues are the rationale behind
choosing this research study.
Literature Review
RIEDESEL (2002) COMMENTS that the modeling of company sales and income as a
function of three types of media spending using Data Envelopment Analysis (DEA) by
Luo and Donthu (2001) is questionable. He acknowledges that the relationship between
media spending and company sales may be reciprocal, but the impact of sales on media
spending is more direct than vice versa. First, there are numerous marketing,
management science, econometrics, and advertising studies that have established the
causal relationship from media spending to sales volume ( Aaker and Carman, 1982;
Feinberg, 2001; Mesak, 1999; Simon and Arndt, 1980; Stewart, 1989). Danaher and Rust
(1994) theoretically propose that optimal level of media spending can be achieved by
maximizing the advertising productivity/efficiency. Following this school of research, we
believe that the amount spent on different media such as broadcasting, print, and outdoor
can be treated as DEA inputs, while sales and income as DEA outputs.

24

Second, while some firms may be using a fixed percentage of previous sales as
current media spending budget, the approach is ad hoc and not supported by science. One
hopes that many firms are actually setting advertising budget based on future sales goals.
However, irrespective of how advertising budgets are set, advertising expenditure may or
may not be efficient (given level of advertising may produce different levels of sales) and
DEA can be used to investigate this.
It is not the setting of the budget that creates sales but the spending of the budget.
If sales fall below or above projected levels, real-time changes have to be made in
spending. DEA can be used to model such contemporaneous spending/sales data.
Finally, a pure empiricist may argue that DEA is a correlation technique used to analyze
the relationship between two sets of variables.
In conclusion, advertising theory dictates that media spending be treated as inputs and
sales be treated as outputs. Media spending should reflect sales goals. Irrespective of how
advertising budgets are arrived at, inefficiencies exist in advertising and that inefficiency
can be benchmarked using DEA. ( Mehir Kumar Baidya and Partha Basu Measurement
and Analysis for Marketing 2008) did one study with the aim to check the impact of
individual marketing efforts (advertising, sales force , promotion, distribution and price)
on sales and overall customer satisfaction for a brand by taking into consideration both
the financial and non financial aspects of the measurement. The return on- investment
(ROI) has been calculated for each effort on the basis of sales The findings suggest that
all the marketing efforts have significant positive impact on sales except price. Moreover,
all the marketing efforts have significant positive effects on overall customer satisfaction
25

for the brand. Furthermore, among all the marketing efforts the adjusted ROI is the
highest for sales force. These results will assist the managers in allocating the resources
to different marketing efforts in a better manner, so as to improve the effectiveness of
marketing expenditures.
Stone and Duffy , and Basu and Batra used the judgmental and mathematical
(ADSPLIT) models to frame the relationship between sales and advertising expenditures.
Both studies used response function to allocate marketing budget to advertising as well as
to different brands.
Effects of sales promotion : (Bawa and Shoemaker) performed a study to identify the
influence of sales promotion activities on customers brand choice behaviour. The
authors found that sales promotion activities have short-term and long term positive
effects on the brand choice behaviour of customers. In the same direction, Jones made an
attempt to examine the short term and long-term impact of sales promotion activities on
sales by a multivariate technique Regression model estimation indicates that the shortterm effect is more prominent than the long-term.
The author found that the effect of a low price on attracting buyers depends on the
level of advertising. The high advertising plan produces sales 50 per cent above the low
plan at the base price. At the middle price it was 34 per cent, and at the highest price with
the high advertising level it was only 11 per cent.( Effectiveness of marketing
expenditures 2008 Palgrave Macmillan Ltd 0967-3237 Vol. 16, 3, 181188 Journal of
Targeting, Measurement and Analysis for Marketing 183).
Customer Satisfaction Studies: Anderson analysed a database matching the CSI
with ROI, and the productivity of each company covered by the Swedish Customer
26

Satisfaction Barometer (SCSB) from 1989 to 1992. Regression model estimation


indicates that the coefficient for the direct relationship between the customer satisfaction
and ROI is positive and significant. Similarly, Ittner and Larcker 12 extend this study by
using stock price as a dependent variable and CSI as an independent variable. The authors
found that the estimated regression coefficient is 7.36. This shows that customer
satisfaction has a positive impact on shareholder value.
Advertising remains one of the cornerstones of marketing communications.
However, determining its impact on a firms performance continues to be a difficult
proposition for many marketing and advertising managers. Although firms in the USA
spent over $230 billion on advertising in 2001 (Coen, 2002), a clear link between
advertising expenditures and financial performance remains somewhat uncertain in many
cases. One common belief is that advertising creativity is an essential element of
advertising success (El-Murad and West, 2004; Smith and Yang, 2004) and may lead to
an improved financial performance, that is, as firms focus more resources and develop
more creative advertising, they will realize marginal benefits in the form of higher sales,
an increased market share and higher future earnings. While seemingly reasonable, this
particular belief fails to provide much more than an anecdotal basis for determining the
effects of advertising on a firms bottom line. In addition, while positive returns are
expected, this type of unsubstantiated claim has become unacceptable as more marketing
managers are being asked to validate the links between traditional marketing variables
and financial performance (Jedidi et al., 1998).

Although the search for the true value of advertising has led to the completion of
numerous experimental and econometric studies, evaluating the effectiveness of specific
27

advertising campaigns continues to be problematic for practitioners and academics alike.


For the most part, past studies have tended to focus on a handful of executable devices
such as the use of humor, sex, and celebrity presenters (Stewart and Furse, 2000, p. 85).
While providing some useful insights, these mostly academic studies typically failed to
take into consideration the myriad of other variables that also affect advertising
effectiveness (e.g. differentiating message, repetition and recall). Exceptions to these
fairly limited studies are practitioner studies that rely on an experimental design and use
single-source data (e.g. Eskin, 1985; Lodish et al., 1995). Such studies are able to
estimate advertising performance by tracking the actual purchasing behaviour of a sample
of consumers (via retail scan cards). However, while providing useful insights, many of
these experiments were not well documented in terms of methodology (Stewart and
Furse, 2000) and were very expensive, technically difficult to conduct and relied heavily
on the ability for tracking exact consumer purchasing patterns carefully. While both
categories of studies have helped to extend our general understanding of how advertising
affects firms performances, more research is needed.
Consequently, a number of empirical studies have recently been conducted in
order to extend our understanding of the links between specific aspects of a firms
advertising function and various financial performance measures (e.g. market share,
profitability and stock price). While market share and profitability continue to demand
attention as managers attempt to link their decisions to financial outcomes directly, many
researchers have opted for a more unique approach and have begun to examine the
impact of specific marketing and advertising decisions on expected future earnings (as
manifested in higher or lower abnormal stock returns). Specifically, researchers have
explored the links between stock price and the use of celebrity endorsers (e.g. Ohanian,
28

1991; Agrawal and Kamakura, 1995; Mathur et al., 1997; Farrell et al., 2000), corporate
sponsorship and the marketing of sporting events (e.g. Miyazaki and Morgan, 2001;
Tomkovick et al., 2001), changing a companys name (Horsky and Swyngedouw, 1987)
and changing a firms advertising slogan (Mathur and Mathur, 1996). However, while
some progress has been made in this area, more research is needed.
Managerial relevance. Jointly examining weight and content effects on market
response can be extremely appealing to brand managers who try to strike a balance
between copy and weight and may ultimately help them achieve higher advertising
efficiencies. The results of MacInnis et al. are encouraging, since they suggest that media
expenditures are not a waste of money when combined with the appropriate type of copy
appeal (in their case emotional) in mature markets. Similarly, the implications of the
study by Chandy et al. [3] may help managers in copy-changing decisions depending on
the maturity of the market they compete. The approach suggested in Reference [7] can be
used when advertising appeals are ambiguous and need to be inferred by examining their
effects on response.
Long-term effects and hysteresis
Although the long-term effectiveness of advertising has long been a popular
subject of academic research with the Koyck model being the main methodological tool
(e.g. Reference [8]), in recent years new paradigms in the study of long-term advertising
effects have emerged. Most notably, Dekimpe and Hanssens [9, 10] proposed the use of
persistence modelling to study long-term advertising effects. Applying vector autoregressive (VAR) models to data from evolving markets, Dekimpe and Hanssens
essentially redefine what should be considered as long term and contrast it with the
more traditional Koyck modelling approach. Koyck models may be applied to stationary
29

markets but their advertising effects cannot be permanent (and thus really long term),
because market performance in these markets reverts to its mean. In evolutionary
markets, however, market performance can exhibit permanent increases and if such
increases can be attributed to advertising spending then advertising effects may be
considered long term.
More specifically, Dekimpe and Hanssens [9] estimated a VAR model using homeimprovement chain sales and advertising data.
A relevant, but not identical, approach to measuring long-term effectiveness of
advertising is to examine whether it causes hysteresis, a concept introduced in the
marketing literature by Simon [12]. Hysteresis suggests that a temporary increase in
advertising expenditures can lead to a permanent increase in market performance (sales).
The critical assumption in the econometric modelling of hysteresis is that there is not a
one-to-one relationship between advertising and market performance, since decreasing
advertising to its previous level would not affect sales but increasing advertising from the
same level would. In other words the sales path is different for decreases from, than for
increases to any level of advertising spending. Hanssens and Ouyang [13] empirically
examined hysteresis in the computer printer market. They distinguish between full
hysteresis, where temporary changes in advertising cause permanent changes in sales
without needing additional spending to maintain the new high sales levels, and partial
hysteresis, where some maintenance advertising is needed. Their empirical results
provided evidence for partial hysteresis caused by print media advertising.
The studies by Mela et al. [14] and Jedidi et al. [15] offer an alternative approach
to studying long-term advertising effects. The first study looks at the effects of quarterly
advertising expenditures on quarterly price sensitivities, while the second examines the
30

cumulative effects of advertising on choice and quantity and their short-term pricing and
promotion sensitivities.
Advertising effects on stability of performance
While recent research has addressed the issue of advertising effects in
evolutionary markets, the question remains whether advertising has a significant impact
on mature markets. The results reported in Reference [5] are encouraging as they suggest
that increased advertising effort can increase sales in mature markets. However, the
maintenance role of advertising in mature markets (see Reference [33]) should also be
investigated. In other words, whether advertising contributes to the stability of a brands
performance, since many markets especially for frequently purchased goods are mature
The issue may be of greater importance for big brands that would like to maintain
leadership in a market but it could also be important for smaller niche brands that enjoy
a healthy profit margin and are satisfied with their market position. There are two
possible approaches to modelling advertising effects on stability of performance. One is
to examine the effects of advertising on the variance in the performance (sales or share)
of a brand across time. If advertising is expected to increase performance stability, it
should decrease variance in performance. To make comparisons meaningful across } It
should also be acknowledged that recent research has started examining the effects of
advertising/marketing expenditures on financial metrics (see for example Reference
[29]). kFor example, P&G, Unilever and GM are the top three media spenders
worldwide. Although they do introduce new products annually, they also support a lot of
mature brands.(Copyright # 2005 John Wiley & Sons, Ltd. Appl. Stochastic Models Bus.
Ind., 2005; 21:351361 358 D. VAKRATSAS)

31

The specification of advertising effects on the variance of performance should


follow from the specification of advertising effects on the mean performance (e.g.
Reference [34]), which may complicate matters. Furthermore, showing that advertising
contributes to lower variance in performance may not easily convince managers to
continue investing in advertising since performance variance is not explicitly linked to
profitability.
An alternative approach to evaluate advertisings maintenance role would be to
look fordifferential effects of increases and decreases in advertising. In other words, a
mature brands performance may be resistant to advertising increases (due to ceiling
effects) but may be sensitive (declining) to advertising decreases (due to lack of critical
support). The implication then would be that although advertising does not lead to
increased performance, it helps maintain it as declining advertising spending would result
in deterioration of brand performance. This is conceptually the opposite of hysteresis,
where brand performance is resistant to advertising decreases, as it focuses on losses in
performance as a result of lower advertising investment. Both approaches to measuring
maintenance effects need sufficient variability in the data in order to produce reliable
results (see Reference [35]), which may be difficult to attain as such studies should be
carried in mature markets where managers may not change status quo advertising
practices.
Europe shows that advertising recall is lower in countries with higher levels of
television advertising. Specifically, yfield and Nazaroff (2003) report that in Denmark,
where there are only 80 average television exposures per week per person, the Millward
Brown awareness index is 150 (compared with the U.K. benchmark of 100).1 However,
in Italy, where there are 300 average exposures per week per person, the awareness index
32

drops to only 50. Thus, an effect of increasing advertising levels is to decrease the recall
of all advertisements. In addition, academic studies have found lower ad recall and
recognition in the presence of too much advertising from competitors (Burke and Srull
1988; DSouza and Rao 1995; Keller 1987, 1991). Increasing advertising content on
television also increases ad avoidance behavior (Danaher 1995; Lafayette 2004), such as
channel switching or time-shift viewing with a personal video recorder (Green 2003).
A commonly used term to describe the presence of high levels of advertising is
clutter. For television, clutter is the combination of commercials and other nonprogram
material,such as program promotions and public service announcements. The increase in
clutter over the past 40 years is due to both an increase in nonprogram time and an
increase in the number of 15-second commercials (Brown and Rothschild 1993; Kent
1995). The topic of increasing advertising clutter is one of the most publicized issues in
the advertising trade literature and continues to be one of the greatest concerns facing the
advertising industry (Chunovic 2003; Lafayette 2004). Kent (1993) makes a distinction
between competitive and noncompetitive clutter. Competitive clutter, which is also called
competitive interference (Burke and Srull 1988; Kent and Allen 1994), is clutter that
arises from advertisements delivered by competing brands (within a category) at or near
the same time and place as those for a focal brand.Kent (1993, 1995) finds that
competitive clutter has a more harmful effect on ad recall than noncompetitive clutter. In
this study, we focus on competitive clutter.
Most previous research on brand advertising interference has been conducted in
laboratory settings, in which participants are exposed only to commercials and no
editorial material (Burke and Srull 1988; Keller 1991; Kent and Allen 1994), resulting in
limited external validity. Other studies of this topic have used unfamiliar brands, which
33

Kent and Allen (1994) show are more prone to interference effects. Finally, previous
marketing studies have examined the effect of competitive interference on recall,
recognition, or brand evaluations rather than the all-important effect on sales (East 2003,
p. 19).
Advertising response models with managerial impact: an agenda for the future Faculty of
Management, McGill University, 1001 Sherbrooke St. W, Montreal, QC H3A 1G5,
Canada ALBA, Athens, Greece.This paper discusses recent advances in advertising
response models and identies new opportunities for managerially relevant research.
First, it establishes that recent research has shifted attention from topics such as duration
of advertising eects in mature markets and short-term advertising elasticities to issues
such as combined eects of ad content and weight and eectiveness in evolving markets.
Then, motivated from recent trends in advertising practice, it presents a research agenda
consisting of four main topics: (1) new media and forms of advertising (e.g. product
placement), (2) media synergies, (3) advertising productivity and (4) advertising eects
on performance stability. Copyright # 2005 John Wiley & Sons, Ltd. This paper has two
main objectives. The rst is to discuss new research ndings (of the last ten years) in
advertising response research, their implications for managers and their importance for
broadening the scope of advertising research. The second objective is to propose an
agenda consisting of four new areas of research: non-traditional media, media synergies,
advertising productivity and advertisings role in performance stability. The choice of
these four issues was based on their practical relevance and the lack of sucient
academic research to consider them resolved. The discussion of the proposed research
agenda includes suggestions for potential methodological approaches, data requirements
and measurement. Given the focus of the paper on advertising response models, the
34

discussion mainly concerns empirical econometric studies that use market-based


performance measures (e.g. sales, share).

Marketing managers are under increasing pressure to justify marketing spending.


The issue of quantifying the returns to marketing activities in financial terms is one of the
greatest challenges facing marketing and brand managers today. For example, Rust and
colleagues (2004, p. 76) note that marketers have not been held accountable for showing
how marketing adds to shareholder value and that this lack of accountability has
undermined marketers credibility, threatened the standing of the marketing function
within the firm, and even threatened marketings existence as a distinct capability within
the firm.
Brand-The initial framework, developed in the 1990s, was based on four pillars:
differentiation, relevance, esteem, and knowledge (Agres and Dubitsky 1996).
Implications from this model have helped shape thinking on various brand issues. For
example, Aaker (1996, Chap. 10) uses the BAV model as one of the key inputs into
formulating his brand equity ten and has continued to make use of the framework to
highlight the crucial role of differentiation in brand building (Aaker 2004, p. 136; Aaker
and Joachimsthaler 2000, p. 263). Y&R recently modified its framework and introduced a
fifth pillar called brand energy.1 The measure is based on the Y&R survey questions
reflecting the degree to which the brand is viewed as (1) innovative and (2) dynamic.

The Pillars of the Initial Y&R BAV Model

35

Researchers have repeatedly established that the brand beliefs generated by an


advertisement affect consumer perception of the physical product during subsequent trial
(e.g., Deighton and Schindler 1988; Kempf and Laczniak 2001; Kempf and Smith 1998;
Marks and Kamins 1988; Olson and Dover 1979; Smith 1993). However, those studies
have typically exposed consumers to the physical product shortly after exposing them to
advertising. It is therefore likely that in the marketplace a more extensive time lag occurs
between both exposures with beliefs decaying over time and that effects exist from
perceived product physical attributes on specic post experience brand beliefs in such
cases (Kempf and Smith 1998).
Advertisement Effectiveness

The role of advertisement is to


Give your customer the reason to keep buying from you
Attract Must -Have customers to try your products
Increase the sales and profits (Core customers are companys most loyal
customers who are willing to pay a fair price for a product or service. MustHave customers are people who could become the core customers, but they
currently do business with the competition.
Advertisement effectiveness can be checked a process call Plus Over Normal. To
determine the Plus over Normal results every ad is benchmarked against the normal
business baseline. The lift from the ad is sales can then be evaluated.
There are only three measures of advertising effectiveness:
Did core customers increase their spending with the company after seeing my
advertising?
36

Did any Must-Have customers start doing business with the company after seeing
the advertising?
Did the ads generate a net profit?

The Effects of Advertising and Brand Value on Future Operating and Market
Performance
Li Li Eng and Hean Tat Keh
This paper examines the joint effects of advertising and brand value on the rms future
operating and market performance. We operationalize future operating and market
performance as future accounting returns and future stock returns, respectively. Our
results show that both advertising and brand value improve future accounting returns at
the rm level. The impact of advertising and brand value on future stock returns is
minimal. We nd that spending on advertising results in better brand sales and brand
protability. Brand value is also a good predictor of brand performance. Thus, we
conclude that advertising and brand value benet the brand and the rm through
improved accounting performance. In this paper, we investigate the impact of advertising
and brand value on future operating and market performance. Key intangible assets such
as brand value (or brand equity), product differentiation, and goodwill are the outcomes
of investment in advertising. It is generally believed that advertising contributes to the
creation of brand value (Chaudhuri 2002; Chu and Keh 2006; Kimelman 1993; Sheinin
and Biehal 1999). Mizik and Jacobson (2003) argue that brand-based advertising can
create a comparative advantage for rms through its ability to differentiate the rms
product. The brand can be a formidable barrier to imitation, as brand equity is difcult for
37

competitors to copy, becoming an effective entry deterrence strategy. Industry observers


and analysts note that many companies continue to emphasize brand-building activities.
For example, Samsung has been rated by Interbrand, a brand-consulting rm, as the
fastest-growing brand over the past few years (Yun Jong Yong 2004). The CEO of
Samsung, Yun Jong Yong, has been instrumental in driving the creation of its brand
value, claiming, Our future will depend on our brand equity.
While brand value creation is generally regarded as a good thing, we need to
have more concrete measures of brand value appropriation (i.e., extracting prots from
brand value). Merely knowing the effect of brand value on purchase intent (CobbWalgren, Ruble, and Donthu 1995) is inadequate; Chaudhuri (2002) proposes a stylized
model of how brand reputation affects the advertisingbrand equity link. Using survey
data, the models brand reputation as a mediator on the effect of brand advertising, brand
familiarity, and brand uniqueness on brand equity outcomes. His results suggest that
advertising directly or indirectly affects brand equity measured as brand sales, market
share, and relative price.

Second, rms spend large amounts annually on advertising and brand value
creation with the expectation of reaping returns in the future. As such, it is important to
examine not only the contemporaneous effect of advertising or brand value on rm
performance, According to Low and Mohr: To be sure, advertising is vital to brand
equity. However, advertising, per se, is not a sacred cow that should necessarily be part of
every years marketing allocation. Monies should be allocated to advertising only if it has
a clearly dened role within that years strategy for meeting a brands goals (1999, p.
72). They reached this conclusion via a qualitative study using 21 in-depth interviews.
38

Our review of the literature indicates that previous research has not specically measured
the impacts of advertising and brand value, and their joint effect, on rm performance. By
examining the effects of advertising and brand value, our work contributes to the existing
literature.
There have been numerous studies, however, on the individual effect of
advertising on the persistence of prots (e.g., Mueller 1990), implying that excess returns
erode more slowly for rms that advertise heavily. For example, Chauvin and Hirschey
(1993) provide evidence that advertising expense has a positive inuence on the market
value of the rm. They suggest that spending on advertising can be viewed as a form of
investment in intangible assets with positive effects on future cash ows. When Erickson
and Jacobson (1992) control for the endogeneity between discretionary expenditures and
protability, however, they nd that advertising generates substantially lower accounting
and stock market returns than indicated in previous research. In a recent study, Chu and
Keh (2006) investigate the effects of advertising, promotion, and R&D expenses on brand
value creation. They nd that these lagged expenses yield diminishing returns to brand
value.

39

Gaps in The Literature


1. In my limited literature survey it has come to my notice that lot of work has been
done on the packaged goods or consumer durables but unfortunately ,we could
not find any study done on the commodity products related to brand preference or
advertising effectiveness. Even if something has been done and we missed out
still we feel it is an unexplored area in India, and behavior pattern cant be
compared with any western country. It is interesting to note that no where in the
world glass is branded or advertised, it is only in India which was started by an
American company in 1994.
2. We could not find the study which talks the likeable attributes in commodity
products like glass. What exactly customers are looking for in a glass?
3. Lot of efforts have been put in by the various researchers to establish a linkages
between advertising and key performance indicators of the company but no
conclusive equation could be found out , mine also will be one more attempt for
commodity products .
4.

We could not find any work on the commodities, what kind of adv copy is
suitable to influence the consumers when there is no differentiator available.

40

COMPANY PROFILE

41

COMPANY PROFILE

AIS is the largest integrated glass company in India, manufacturing a wide range of
international quality automotive safety glass, float glass, architectural processed glass and
glass products.
AIS has a strong strategic position in the Indian glass industry. AIS is a leader in auto
glass and architectural processed glass segments and has prominent position in Float
glass market.
AIS is jointly promoted by the Labroo family, Asahi Glass Co. Ltd., Japan and Maruti
Suzuki India Ltd. The promoters jointly hold 55.24% of paid up equity capital of AIS,
with remaining 44.76% held by public.
Being a widely held listed public company with close to 62,000 shareholders, AIS
remains committed to maintain the highest standards of corporate governance and
shareholder accountability. The equity shares of AIS are listed on the Bombay Stock
Exchange (BSE) and National Stock Exchange (NSE) in India.
AIS is transforming itself from being a manufacturer of world-class glass and glass
products to a solutions provider by moving up the value chain of auto glass and
architectural glass and providing design, products and services that make glass more
versatile and user-friendly.

42

AIS have the following three Strategic Business Units (SBUs):

Automotive Glass Unit AIS Auto Glass

Float Glass Unit AIS Float Glass

AIS Glass Solutions Ltd AIS Glass Solutions

AIS Auto Glass is India's largest manufacturer of world class automotive safety glass and
is, in fact, one of the largest in the field in Asia. It meets over 80% automotive glass
requirement of the Indian passenger car industry.
AIS Float Glass is the leading manufacturer of international quality float glass in the
country. Prior to its merger with AIS, it was known as Floatglass India Ltd.
AIS Glass Solutions is a value addition in the architectural glass business of AIS,
addressing the following segments:

Architectural Processing and Glass solutions


Product and Knowledge development
Glass Services Sales & Marketing

The market and technology leader in the Indian Glass Industry, AIS continues to add to
its customer base and service offerings, while maintaining and enhancing product quality
Its ongoing efforts, to provide high quality products and reliable and excellent service to
its customers, are the key factors for AISs sustained success and leadership position in
the Indian glass industry.

43

AIS recorded gross sales and operating profits of Rs. 11742 millions and Rs.
2046 millions respectively for the year ended 31st March, 2008.
Vision and Mission
Vision
AISs Vision is to SEE MORE
This byline captures AISs culture:

It describes AIS products and services which delight its customers by helping

them see more in comfort, safety & security.


It expresses AISs corporate culture of merit and transparency.
It defines the quality of AISs people to want to see, learn, and do more, in depth
and detail to transcend the ordinary.

Mission
AISs Mission is JIKKO Execution for Excellence
With major investments in place, the time is now to reap the benefits by execution for
excellence
Guiding principles
All actions of AIS are driven by the following guiding principles:

Creation of value for Shareholders


Customer Satisfaction
Respect for Environment
Use of Facts
Continuous Improvement
Strengthening of Systems
Upgradation of Human Potential through education and training
Social Consciousness

44

Collaborators
Asahi Glass Co., Ltd., Japan
Asahi Glass Co. Ltd, Japan, was established in 1907. Today, it is one of the leading glass
producers of the world. AGC has a global network of over 350 subsidiaries and affiliates
in Japan and 20 and above other countries. The groups operations comprise of flat glass,
automotive glass, and have recently diversified into display glass, chemicals, electronics
and energy.
AGC has evolved as a top multinational glass manufacturer with a leading share of the
global market in most key glass products. AGC group is the largest glass manufacturer
of the world with 12% global market share in the flat glass segment and 30% global
market share in the automotive glass segment. It has further captured the top share in
CRT glass, TFT display glass and PDP glass in the display field as well.
For the year 2007, the AGC Group has recorded net sales of 1681 billions of yen, and
with Operating Net Income of 69 billions of yen.
SBUS
AIS Auto Glass
OVERVIEW
AIS Auto Glass is the most reputed and trusted supplier in Indian automotive glass
industry having over 21 years of technological expertise and is the largest manufacturer
of world-class automotive safety glass in India.
45

AIS Auto Glass has been awarded the prestigious Deming Application Prize, 2007,
certifying the outstanding performance improvements achieved by it through application
of Total Quality Management (TQM).
Today, AIS Auto Glass has a body of knowledge to be able to deliver cutting edge auto
glass solutions and value addition to its customers, most of whom are global and
demanding players.
AIS Auto Glass is overwhelmingly the first choice supplier for most automotive
manufacturers in India. Hence, AIS Auto Glass is either the sole or a leading supplier of
auto glass to most passenger car manufacturers in India, supplying about 80% of their
auto glass requirement. Apart from supplying to OEMs in India, AIS Auto Glass has
significant presence in the domestic after-market with a market share of 43%. It also
exports auto glass to the after-markets in Europe and Pakistan.
AIS Auto Glass has state-of-the-art plants located at Rewari-Haryana, RoorkeeUttrakhand (North India) and Chennai- Tamil Nadu (South India) with a combined
capacity to produce 2.81 million car sets per annum.
In the present era of cut throat competition there is a very little scope left out for
the companies to create differentiation in the products to compete, hence need to start
brand building exercise by way of creating perceived images of superiority over the
competition . This starts with the various kind of activities to be undertaken by the
companies to create brand , among them one way is advertising. Indian commodity
market ( in the building material segment )such as cement, steel, aluminum, Glass has

46

adopted various methods to enhance the demand for their products, they have
simultaneously invested sizeable amount of money in advertising to sell their products
and increase their market share. VARIOUS consultants and advertising agencies were
hired to create a difference but, have they been successful in their efforts to create
demand or make any kind of impact on the demand or sale due to advertising or mass
media campaigns. Lots of subjective discussions (simply based on individual feelings and
selected market researches to show the positive impact, which can easily be contradicted
by any other agency or market research) have taken place and actually not yielded any
results or tangible benefits which can distinctively be observed or verified. Whenever
organizations try to establish a relationship between the advertising and the Top line,
bottom line then efforts are put in to de link it so that it goes to the expenses part rather
than become a part of the cost. There is a need to re-examine and evaluate the impact of
advertising on the demand of commodity products and see what exactly consumers are
looking for. Once companies understand that branding is a necessary (and profitable) part
of doing business, the next logical question is how do you brand?
Tactically speaking, there are numerous ways to go about branding. The look and
feel of the communications, the balance of advertising versus public relations versus
grassroots, the media used, etc., all reflect tactical aspects of the branding process.
However, these are only vehicles used to brand, and do not inherently lend themselves to
developing a brand, per se. To ensure a good, successful brand is the methodology used
to develop and/or refine the brand in the first place. In other words, just like a building, a
good brand starts with a strong foundation. Sound branding practice begins with
addressing five key attributes present in any effective brand: uniqueness, relevance,
credibility, sustainabiiity, and practicality.
47

Uniqueness
The average American is exposed to approximately 3,000 advertising messages
per day. That means everything from the logo on your watch, to product placement in
television and movies, down to traditional commercials and print ads. And all this static is
in addition to children, family, job and various other aspects of everyday life that are
constantly vying for attention. To break through all of the clutter, a brand has to stand out,
has to be memorable it has to be unique.
Relevance
This attribute seems like a no-brainer, but it is an important check-off. If a brand
is positioned in a way that has no bearing in the life of the audience, then how can the
audience be expected to develop an affinity for the brand?
Credibility
Things can be true, but not necessarily believable. For instance, Kia brand
automobiles could spend hundreds of millions of dollars on the development of a luxury
car that rivals BMW in every aspect. However, it is a good bet that such an endeavor
would fail. At the very least, Kia could only command a fraction of the retail price of
BMWs. The Kia brand has successfully positioned itself as a low-cost automobile maker.
People would simply not believe the company had produced a car that was on par with
BMW. The lessons here dont let your business stray from your brand. Once
credibility in your brand is lost, it is near impossible to regain it. Just see Arthur
Andersen, WorldCom or Enron.
Sustainability
This factor represents the most significant difference between advertising and
pure branding. An advertising campaign is finite, while a brand should theoretically be
48

credible and relevant forever. The core values inherent in a brand should reflect core
human values. For example, Nike's core value is achievement. McDonald's core value is
convenience. Citibanks core value is financial security. These values will be as relevant
as in 2055 as they are in 2005, which gives the brand consistency, staying power, and the
ability to build consumer loyalty.
Advertising remains one of the cornerstones of marketing communications.
However, determining its impact on a firms performance continues to be a difficult
proposition for many marketing and advertising managers. Although firms in the USA
spent over $230 billion on advertising in 2001 (Coen, 2002), a clear link Between
advertising expenditures and financial performance remains somewhat Uncertain

in

many cases. One common belief is that advertising creativity is an Essential element of
advertising success (El-Murad and West, 2004; Smith and Yang, 2004) and may lead to
an improved financial performance, that is, as firms focus more resources and develop
more creative advertising, they will realize marginal benefits in the form of higher sales,
an increased market share and higher future earnings. While seemingly reasonable, this
particular belief fails to provide much more than an anecdotal basis for determining the
effects of advertising on a firms bottom line. While providing some useful insights,
these mostly academic studies typically failed to take into consideration the myriad of
other variables that also affect advertising effectiveness (e.g. differentiating message,
repetition and recall).

49

50

PRODUCTS AND SERVICES

PRODUCTS AND SERVICES

AIS Auto Glass is India's largest manufacturer of automotive safety glass. The unit
manufactures the full range of automotive safety glass, which includes:

Laminated Windshield

Tempered Glass for Side and Backlites


51

Silver Printed Defogger Glass

Antenna Printed Backlites

Black Ceramic Printed Flush Fitting Glass

Encapsulated Fixed Glass

Solar Control Glass

IR Cut Glass

UV Cut Glass

Reflective (PET) Windshield

Water Repellant Glass

Glass Antenna

Extruded Windshield

Clients
AIS Auto Glass : Share of Business
Customer

SOB (%)

Maruti Suzuki India Ltd.

100

International Cars and Motors

100

Reva Motors

100

Honda Motors

100

Ford India

99

Toyota Kirloskar Motors

99

Fiat India

83

Hyundai Motors

72

General Motors

67

Volvo India

57

Mahindra & Mahindra

52

52

TATA Motors

24

Piaggio

22

Hindustan Motors

17

Eicher Motors

13

Swaraj Mazda

Force Motors

Market Position

Sole supplier to almost the entire Indian passenger car industry, with a current
market share in excess of 80 %.

Significant presence in the after-market with a market share of over 43%.

Exporting auto glass to after-market in Europe and Pakistan.

AIS Glass Solution


AIS Glass Solutions is the face of the architectural glass processing business of AIS. As a
separate business unit, AIS Glass Solutions focuses on offering innovative architectural
glass solutions to customers.
AIS Glass Solutions aims at raising per capita consumption of glass in the country to
bring it at par with the other developed countries in the world. It disseminates knowledge
for increased awareness of the use and application of architectural glass through
innovative offerings.
AIS Glass Solutions has been supplying a wide range of high quality architectural
processed glass, comprising of toughened glass, laminated glass, insulated glass units and

53

value added glass products. It also caters to the project segment, meeting glass and
related requirements of construction projects.
Its product portfolio includes:

AIS Strong glass - impact resistant glass.

AIS Security glass - burglar resistant glass.

AIS Acoustic glass - sound resistant glass.

Glass products like shower enclosures, tabletops, shelves.

The state-of-the-art architectural glass processing facilities are located at Taloja (West
India), Chennai (South India), Rewari and Roorkee (North India). The Roorkee facility is
the largest architectural glass processing facility in the country.
AIS Float Glass
OVERVIEW
AIS Float Glass is a premier manufacturer of international quality float glass and valueadded glass like reflective glass and mirror.
AIS Float Glass has state-of-the-art glass manufacturing plants located at Taloja near
Mumbai (West India) and Roorkee (North India) with a total production capacity of 1,200
tons per day (TPD). Its newly commissioned unit at IGP Roorkee has manufacturing
facilities for float glass, superior quality heat reflective glass and new generation
environment friendly mirror.

54

PRODUCT RANGE
AIS Float Glass offers a diversified product range of float glass in thickness of 2 mm
- 12 mm in different shades and tints of clear, green, grey, bronze and blue in varying
sizes. Its product portfolio includes world-class range of international quality
Supersilver heat-reflective glass, the worlds finest quality "Environment Friendly"
copper & lead free premium AIS Mirrors, AIS Dcor lacquered glass & AIS Krystal
Frosted glass for interior applications.

Application Of AIS Glass


55

With its wide product range and its status as the undisputed quality leader, AIS
Glass is the natural choice in most of the application segments:
Window Glazing: AIS Float Glasss superior strength, high optical clarity,
distortion free, smooth surface and bigger sizes give design flexibility, making it
the natural choice for all window glazing applications.
Curtain walls: Availability of AIS Tinted Float & AIS Heat Reflective Glass in
various shapes and sizes enable you to design the latest in curtain walls. Besides
modern expression, it reduces the overall dead weight of the building, allows
faster construction and requires less expensive maintenance. The heat-absorbing /
heat-reflective characteristic reduces the air-conditioning load substantially, thus
saving precious energy.
Partition Walls: Due to its inherent strength and availability in large sizes, AIS
Float Glass can be extensively used for partitions. Glass partitions add to the
aesthetics of the room and give a feeling of spaciousness.
Doors: AIS Float Glass is extensively used in doors and entrances, exuding
beauty and elegance.
Shop-Fronts: Brilliantly clear and transparent shop-fronts made of Float Glass
provide a distinct image to a showroom.

56

Decorations: Modern expression, transparency, easy maintenance and noninflammability of AIS Float Glass makes it an indispensable material for display
cabinets
Shop, partitioning, screening and designing modern and high-class Showrooms
and Shopping Malls.
Furniture: AIS Float Glass, due to its versatility, is ideal for furniture, tabletops,
shelves, cabinets, showcases and sliding doors of large almirahs and cupboards
etc.
Balustrades: The use of AIS Float Glass in balustrades gives a graceful effect to
the staircases.
Mirrors: AIS Float Glass gives perfect reflected images when mirrored. Also AIS
Mirrors, are world-class quality mirrors, being copper & lead free and corrosion
resistant.
Automobile Safety Glass: AIS Float Glass Unit is the single largest supplier to
the OEM segment. Its European Green glass is used extensively in almost all
premium cars.
Special Applications: AIS Float Glass can be further processed to be used for
skylights, atriums, museums, art galleries, aquariums, lifts, dance floors etc.
MARKET POSITION

57

AIS Float Glass enjoys 38.89 % market share in the Indian float glass market.
CLIENTS
The diversified product portfolio of AIS Float Glass includes float glass in varying
sizes, shapes and thickness. AIS's quality products make it the preferred choice of a
wide range of clients including

Automotive Safety Glass Manufacturers

Processors

Dealers and Retailers

Architects

Interior Decorators

Builders

Aluminium Fabricators

Carpenters

Furniture Manufacturers

Household Consumers

With glass finding applications in an array of arenas, the client base of AIS Float
Glass is an ever-expanding one.

Advantages of Float Glass over its Counterparts


Fuel Efficiency
The fuel efficiency is enhanced significantly in a float glass plant. Whereas in a
sheet glass plant, the best fuel efficiency is limited to 0.3 MT of furnace oil per tonne of
58

glass, in the float process, 0.18 to 0.20 MT of furnace oil is required to melt 1 tonne of
glass.
Quality
Owing to the greater degree of quality control in the furnace conditions, the final
product is free from body defects such as waves, stones etc. The reason for this lies in the
process itself: the molten glass is formed on a bed of molten tin, improving the accuracy
of glass immensely. In the other processes, the molten ribbon of glass is drawn out
mechanically between rollers, making it vulnerable to variations in thickness. Thus the
float process offers better quality.
Control
Because the product passes horizontally from one chamber to another, a greater
degree of inspection and quality control can be exercised unlike the other process where
the glass is pulled up against the force of gravity.
Variety
The float glass can be manufactured with thickness upto 19mm, to be used for
applications such as tabletops; furniture etc.This is not possible in sheet glass, as the glass
would become brittle at such high thickness.
Advantages of Float Glass over its Counterparts
Fuel Efficiency
The fuel efficiency is enhanced significantly in a float glass plant. Whereas in a
sheet glass plant, the best fuel efficiency is limited to 0.3 MT of furnace oil per tonne of
glass, in the float process, 0.18 to 0.20 MT of furnace oil is required to melt 1 tonne of
glass.
Quality
59

Owing to the greater degree of quality control in the furnace conditions, the final
product is free from body defects such as waves, stones etc. The reason for this lies in the
process itself: the molten glass is formed on a bed of molten tin, improving the accuracy
of glass immensely. In the other processes, the molten ribbon of glass is drawn out
mechanically between rollers, making it vulnerable to variations in thickness. Thus the
float process offers better quality.

60

Control
Because the product passes horizontally from one chamber to another, a greater
degree of inspection and quality control can be exercised unlike the other process where
the glass is pulled up against the force of gravity.
Variety
The float glass can be manufactured with thickness upto 19mm, to be used for
applications such as tabletops; furniture etc.This is not possible in sheet glass, as the glass
would become brittle at such high thickness.

61

PART-II

62

INTRODUCTION TO THE TOPIC

63

INTRODUCTION TO THE TOPIC

Customer Satisfaction Studies: Anderson analysed a database matching the CSI


with ROI, and the productivity of each company covered by the Swedish Customer
Satisfaction Barometer (SCSB) from 1989 to 1992. Regression model estimation
indicates that the coefficient for the direct relationship between the customer satisfaction
and ROI is positive and significant. Similarly, Ittner and Larcker 12 extend this study by
using stock price as a dependent variable and CSI as an independent variable. The authors
found that the estimated regression coefficient is 7.36. This shows that customer
satisfaction has a positive impact on shareholder value.
Advertising remains one of the cornerstones of marketing communications.
However, determining its impact on a firms performance continues to be a difficult
proposition for many marketing and advertising managers. Although firms in the USA
spent over $230 billion on advertising in 2013 (Coen, 2002), a clear link between
advertising expenditures and financial performance remains somewhat uncertain in many
cases. One common belief is that advertising creativity is an essential element of
advertising success (El-Murad and West, 2004; Smith and Yang, 2004) and may lead to
an improved financial performance, that is, as firms focus more resources and develop
more creative advertising, they will realize marginal benefits in the form of higher sales,
an increased market share and higher future earnings. While seemingly reasonable, this
particular belief fails to provide much more than an anecdotal basis for determining the
effects of advertising on a firms bottom line. In addition, while positive returns are
expected, this type of unsubstantiated claim has become unacceptable as more marketing

64

managers are being asked to validate the links between traditional marketing variables
and financial performance (Jedidi et al., 1998).

Although the search for the true value of advertising has led to the completion of
numerous experimental and econometric studies, evaluating the effectiveness of specific
advertising campaigns continues to be problematic for practitioners and academics alike.
For the most part, past studies have tended to focus on a handful of executable devices
such as the use of humor, sex, and celebrity presenters (Stewart and Furse, 2000, p. 85).
While providing some useful insights, these mostly academic studies typically failed to
take into consideration the myriad of other variables that also affect advertising
effectiveness (e.g. differentiating message, repetition and recall). Exceptions to these
fairly limited studies are practitioner studies that rely on an experimental design and use
single-source data (e.g. Eskin, 1985; Lodish et al., 1995). Such studies are able to
estimate advertising performance by tracking the actual purchasing behaviour of a sample
of consumers (via retail scan cards). However, while providing useful insights, many of
these experiments were not well documented in terms of methodology (Stewart and
Furse, 2000) and were very expensive, technically difficult to conduct and relied heavily
on the ability for tracking exact consumer purchasing patterns carefully. While both
categories of studies have helped to extend our general understanding of how advertising
affects firms performances, more research is needed.
Consequently, a number of empirical studies have recently been conducted in
order to extend our understanding of the links between specific aspects of a firms
advertising function and various financial performance measures (e.g. market share,
profitability and stock price). While market share and profitability continue to demand
65

attention as managers attempt to link their decisions to financial outcomes directly, many
researchers have opted for a more unique approach and have begun to examine the
impact of specific marketing and advertising decisions on expected future earnings (as
manifested in higher or lower abnormal stock returns). Specifically, researchers have
explored the links between stock price and the use of celebrity endorsers (e.g. Ohanian,
1991; Agrawal and Kamakura, 1995; Mathur et al., 1997; Farrell et al., 2000), corporate
sponsorship and the marketing of sporting events (e.g. Miyazaki and Morgan, 2001;
Tomkovick et al., 2001), changing a companys name (Horsky and Swyngedouw, 1987)
and changing a firms advertising slogan (Mathur and Mathur, 1996). However, while
some progress has been made in this area, more research is needed.

66

OBJECTIVES

67

OBJECTIVE OF THE STUDY

The following objectives have been identified:

To find out whether consumers are really involved in Glass buying decision if yes
then to what extent?

To find out, Are consumers really aware of any Glass or cement Co, brand or
Glass products?

To find out Does advertising has any impact in the minds of consumers?

Can the advertising be measured or connected with a equation to the top and
bottom line of the company.

To find out, what attributes consumers are looking for in a glass or cement brand?
Can any value addition be done in a brand through TV advertising?

To find out whether TV advertising can help in building brands for commanding
premium or more market shares in commodity products?

68

RESEARCH METHODOLOGY

69

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem involving a
study of various steps that are generally adopted by a researcher in studying his research
problem.

1-

Problem Definition

In the first step research is formulating a research problem. It is said A problem well
defined is half-solved.
Problem under the study was finding out the comparative study of Asahi brand
preference, packaging and quantity.

2- Research Design
Research design is the plan, structure and strategy of investigation conceived so as to
obtain answer to research question and to control variance.

3- Field Work
The project report covered mostly the isolated area of Banda and surrounding area of
them this work has done following area has been covered:
Noida

4- Data Analysis and Interpretation


The data are first edited and collected and tabulated for the purpose of analyzed the data
which we collected. In has been described in the next chapter.
70

Research Design
A research design is simply the framework or plan for a study, used as a guide in
collection and analyzing data.
A research design is the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure.
Thus a research design ensure that the study-

1- Will be relevant to the problem


2- Will use economical procedures

Types of Research design


1-

Exploratory Research
All marketing research project must start with exploratory research because. In a

research first we formulate the problem. The major emphasis in on the discovery of ideas
and insight.

An overall Rigid Exploratory research design has been used focusing attention on:

Formulating a problem

Establishing priorities

Gathering information

Increasing the analysts familiarity

71

Clarifying concepts

2- Descriptive Research
In a descriptive research means describe the problem of research and find the solution.
An overall Rigid Exploratory research design has been used focusing attention on:

Describe the characteristics

Estimate the proportion of people in a specified population

To make specific prediction

To determine whether certain variable are associated

Data Collection Method


There are two type of data collection method:1.

Primary Data Collection Method

By primary data are meant those which are original, that is, those in which little or no
grouping has been, the instance being recorded or itemist as encountered, they are
essentially raw material.

Primary Source of Data Collection

Collection of data by means of well framed questionnaire.

Direct interaction with the retailers.

Direct interaction with dealers and distributors.

72

2. Secondary Data Collection Method


Secondary data those already in existence and which have been collected for some other
purpose than the answering of the question at hand.

Secondary Source of Data Collection

Catalogues of company are studied in order to have a complete knowledge about


the different brands available in the market.

Different magazines and news papers are studied to collect the information about
present scenario of cold drink market.

Download the information available on the web-site of the companies.

The information is also obtained from the previous report of the companies.

In this project primary data collection method has been used. In which a question has
been drafted which included 10 question to make a survey on retailer preference and
acceptance toward the soft drink companys.

Sampling Method
Sample
Sample is the small part of the any population which is considered for the observation or
the study.

73

Sampling
Sampling is the process to get the sample for the large population. Population can be
defined as the large collection of data, i.e.- commodity, census, time etc.

Type of sampling
1- Non probability sampling
A sampling in which units of the sample are selected on the basis of personal judgment or
convince. Non probability sampling is also called non-random.

It has following types

Quota sampling

Convince sampling

Judgment sampling

2-

Probability sampling

A probability sampling is chooser in such a way that each member of the universe has a
known change of being selected.

It has following type

Simple random sampling

Systematic random sampling

74

Stratified random sampling

Cluster random sampling

Hence in this project work Probability sampling design i.e. Random sampling was
adopted as a definite plan for obtaining a sample from the population. The selection
technique was a Stratified random sampling a restricted probability sampling

75

ANALYSIS & INTERPRETATION OF


DATA COLLECTED

76

ANALYSIS & INTERPRETATION OF DATA COLLECTED


1.
The most of the consumers(78.3 %) dont go for buying the commodity
products like glass, steel etc.
7
.3
8
2
.7 N
1
o
Y
s
e

W
h
e
rg
th
o
fo
rb
in
y
u
g

Figure 6: Whether go for buying

77

Maximum numbers of people have not bought the glass (58.33%), hence
their involvement in the process is very low.

Figure 7: Purchase of glass

78

For the maximum percentage (64.2%) of end consumers the brand carries
somewhat important. Hence this potential segment of consumers can be
tapped in coming futures if the brand awareness among them is increased
through the communication channel.

Importance of brand

Frequency
Valid

Not important
Somewhat
important
Important

P
e
rc
n
t

Im
p
o
a
o
fpob
rrtana
d
n
otim
N
ortan
p
or
S
etn
m
hc
w
te
a
im
Im
p
rta
1o
.7n
6
0
1
2
3
0
4
5
6
019.264.2
7

Total

Percent

Valid Percent

Cumulative
Percent

23

19.2

19.2

19.2

77

64.2

64.2

83.3

20

16.7

16.7

100.0

120

100.0

100.0

Figure 8: Importance of brand

79

The end consumers are aware of brand of glass are high with 66.7%, but the
rest of the consumers are not brand conscious. Hence the companies need to
increase the awareness among them.
Whether go for buying * Aware of any glass
brand Crosstabulation
Count

Wheth
er go
for
buying
Total

Yes
No

Aware of any
glass brand
Yes
No
25
1

Total
26

55

39

94

80

40

120

Correlations

Figure 9: Awareness Vs whether go for buying

Whether go for buying

Pearson Correlation
Sig. (2-tailed)
N
Aware of any glass
Pearson Correlation
brand
Sig. (2-tailed)
N
** Correlation is significant at the 0.01 level (2-tailed).

Whether go
for buying
1
.
120
.329(**)
.000
120

Aware of any
glass brand
.329(**)
.000
120
1
.
120

From the correlation value we find that the both awareness of brand and whether
they go for buying have positive correlation but its not high enough to affect each
other.

80

The time taken by the maximum end consumers ( 74.6%) at the retail
counter is 0-15 minutes, hence it shows that they take very less time to decide
upon choosing any glass brand. Their involvement is low.

Time taken before choosing glass(at retail counter)


P
ercnt

T
im
e
k
ta
n
e
b
fteo
e
re
c
o
h
s
in
la
(a
tre
ta
il9.m
o
c
n
u
r)
te
0
5
-1
m
u
in
s
1
-3
6
m
0
in
ts
u
s
e
1
3
0
-6
u
in
s
te
0
.g
5
0
2
.61
4
7
0
4
0
6
0
8

Frequency
Valid

Missing
Total

0-15
minutes
16-30
minutes
31-60
minutes
Total
System

Percent

Valid Percent

Cumulative
Percent

53

44.2

74.6

74.6

11

9.2

15.5

90.1

5.8

9.9

100.0

71
49
120

59.2
40.8
100.0

100.0

Figure 10: Time Taken at Retail Counter


Conclusion: Hence end consumers are not directly involved in the purchase of glass.

81

Most of the end consumers (77.2%) do not ask for a particular brand while
purchasing glass. Out of which mostly customers (77.5%) ask for
recommendations mostly, very few customers take the decision to choose any
brand on their own.
Percnt

s
k
fo
rp
a
tic
u
la
rb
n
d
e
Y
s
o
N
0A
2
.8
0
2
0
4
.2
6
0 7
8

P
e
rc
n
t

e
c
is
o
h
o
e
b
ra
d
m
ti.5s
sa
sm
tlyn
yo
n
u
nD
sn
A
kfotrc
cso
e
e
d
n
tion
a
sy
n
sn
A
kfo
re
cm
o
e
da
tion
s
0O
8m
1r4
.w
20
0
4
.5
7
6
80
0

Figure 11: Preference for particular brand

Figure 12: Decision to choose any brand


82

Most of the end consumer is influenced by carpenter, then retailer and lastly
from architects.
Influencer of recommendation * Specification by type and brand of glass
Crosstabulation

Count
Specification by type and brand of glass
Both

Influencer of Architect
Retailer
recommendat Carpenter
ion
Total

brand and Only

Only

type
16
12

brand
0
2

type
2
8

Nothing
0
2

Total
18
24

24

35

52

18

77

Conclusion
The most of the end consumers are influenced by carpenter and retailer. But high income
end consumers contact architect for recommendation.

83

Figure 13: Influencer of Recommendation


Suggestions

The companies can provide booklet containing samples of glass to carpenter to push their
products and increase their brand awareness. They can organize some kind of training on
new design to carpenters. They should distribute danglers to retailers shop and should
provide enough booklets, pad to them. They can also distribute calendar to retailers,
carpenters and ultimately to house owners through this channel to increase their brand
awareness and to push their sales.

84

The ad recall of China man ad of SGG is highest, followed by their ad of


lady throwing water. The AIS ad is very less remembered by the end
consumers. Hence to have the recall in the mind of consumers and for the ad
to be effective, they can target the social networking site which will be very
cost effective.
e
P
rcn
ta
g
e

R
e
m
rrth
e
d
dn
ina
h
n
d
S
o
h
ibA
a
k8.4b
ta
h
da
a
L
yw
d
re
th
ia
w
g
0C
.o
3
1
20
4
0
.m
8
7
3a
6
8

Figure 14: Ad recall

85

The people are not sure about the influence of ad in taking their action. But
the 30% people choose, probably. Hence the ad influence on the action of
end consumers is very minimal in taking their action. Hence the awareness
among the end consumers should be increased by different channels. Their
unsure nature can be converted to sale by pushing retailers and carpenters
coun
t

H
a
v
e
s
n
e
th
e
a
f1g
o
la
s
e
Y
s
o
N
7
.6
%
0
%
3
.8
0
1
3
2
.d
%
3
.%
0
2
0
3
.1
%
7
N
te
D
fn
in
te
4
S
rs
u
P
ro
a
b
ly
0
5
o
tA
u
tk
e
64
d
ic
flu

recommendation.

Figure 15: Ad influence on action


Ref:
The ad influence is very unsure in nature. There is no high effect on purchase of that in
case of commodity product like glass. Hence the probability seems good, hence the
company should increase the awareness among the consumers because the less
differentiation between the products with respect to customers. Hence the other mode of
communications like PR, sponsorships to events will be good method to create the
awareness.

86

FINDINGS

87

FINDINGS
The brand awareness of SGG across all different advertisement communication
channels is the highest. Their awareness across end consumers is the highest.
Whereas their reach to builders, architect through meets and sales people is the
highest. The shop display at retail center is maximum
The AIS in brand awareness across along all the channels is low. Their awareness
across the consumer is very low. The dealer and retailer awareness toward the
brand should be increased through more meets and interaction with the sales
people.
The GGL has the highest awareness through the word of mouth because of long
presence and being the pioneer in the industry.
The AIS can also target Radio to increase its brand awareness. They can also have
the tie-ups with the known builders and architects to advertise their site on their
respective websites.
The awareness can also be increased among the channel partners through regular
mailers about their products and through greetings.
The company should use hoardings/billboards at the different festival and
important occasions to increase awareness.

88

CONCLUSION

89

CONCLUSION

After analyzing the data collected from various sources following can be concluded :
1.The company can direct its advertisements through different channels towards these
functional benefits of glass. They should organize meets with retailers, should
educate about these functional benefits of glass. They should organize exhibition
where they can invite builders, architects and exhibit these benefits of glass to
increase the awareness and in long term sales.
2.The ad influence is very unsure in nature. There is no high effect on purchase of
that in case of commodity product like glass. Hence the probability seems good,
hence the company should increase the awareness among the consumers because
the less differentiation between the products with respect to customers. Hence the
other mode of communications like PR, sponsorships to events will be good
method to create the awareness.
3.The advertisements activities should be targeted on the middle segment. The
awareness can be increased by involving into the PR activities and through tie-ups
with the social society/community like BMC and CARE to increase the awareness
level among the middle income category.

90

4. They can also have the tie-ups with the known builders and architects to advertise
their brands on their websites. The awareness can also be increased among the
channel partners through regular mailers about their products and through
greetings during festivals. The company should use hoardings/billboards at the
different festival and important occasions to increase awareness of their products
and brands.

91

LIMITATIONS

92

LIMITATIONS
The employees were busy with their daily schedule and it was very much difficult for
them to give time.
Personal biasness of various employees may have supplied wrong data.
Time and money was also an important constraint.

93

RECOMMENDATIONS

SUGGESTION & RECOMMENDATIONS

94

1. The commodity market has very less involvement of the end consumers in the
buying process , hence thee company should push dealers and retailers through
different schemes , gifts and by giving them awards of Best Retailer of the Year
and Best Dealer of the Year awards. The visibility at the retail counter should
be increased by giving them pad, cutting tools to carpenters via retailers having
AIS inscribed on it.
2. The companies can provide booklet containing samples of glass to carpenter to
push their products and increase their brand awareness. They can organize some
kind of training on new design to carpenters. They should distribute danglers to
retailers shop and should provide enough booklets, pad to them. They can also
distribute calendar to retailers, carpenters and ultimately to house owners through
this channel to increase their brand awareness and to push their sales.
3. The company should add more emotional, familiar and attractive to catch the
attention, hence they should go for viral marketing and buzz marketing. They can
put their videos on You tube to increase the awareness. The company should
project their positioning statement See More, See Clear in their advertising
media.

95

BIBLIOGRAPHY

96

BIBLIOGRAPHY
MAGZINES:
The Economics Times
The Business Today
The Hindustan Times

SITES
www.asahi.com
www.pepsiworld.com
www.google.com
www.wikipedia.com
www.ask.com

97

QUESTIONNAIRE

98

QUESTIONNAIRE
NAME

_______________________________________

AGE

(a) 10-25

(b) 26-40

SEX

(a) Male

(b) Female

INCOME

(a) Up to 2 lakhs (b) 2-5 lakhs

PROFESSION (a) Service

1.

(c) 41 and above

(b) Business

(c) 5 lakhs and above


(c) Student

(d) N.A.

(d) Any other

What is your occupation out of the following two categories? Please tick mark.
Category I
House owner (End consumer)
Category II
Architect

Retailer

Dealer

Category III
Builder

1. Do you go for buying products like cement, Glass and steel or any such
commodity product?
Yes
2.

No

How important is the brand for buying such products for you?

1- Not Important at all , 2- Not Important, 3- Somewhat Important , 4Important, 5- Very Important
Not Important at all

3. Are you aware of any glass brand available in the market?


99

Very Important

Yes

No

If yes, Please specify the names.

.
4. Have you bought glass in the past or planning to buy in next one year?
Yes

No

If Yes, then continue, else go to Question 5.


a. Do you ask for a particular brand while buying glass, cement or such
commodity product?
Yes

No

b. How do you decide to choose any brand of such kind of products?


On your own

Ask for recommendation sometimes

Ask for recommendation mostly

100

c. How do they generally recommend, if nothing is asked from your end?


Please mark according to the specification with respect to type and brand
told to you by the following people.
Influencer

Architect

Carpenter

Retailers

Builder

Dealer

Specify
Both brand
and type
Only brand
Only type
Nothing

d. How much time do you take before buying the glass at the retail counter?
0-15 minutes
16-30 minutes
31-60 minutes
More than one hour
5. What do you think about the usage/application of glass for the following purpose?
Please select a phrase that best describes your view how Strongly you feel about
the dimension.
5 - Strongly Agree, 4- Agree, 3- Have no opinion, 2- Disagree, 1- Strongly Disagree
Maintains Safety

Strongly Agree

Strongly Disagree

101

Maintains Privacy

Strongly Agree

Strongly Disagree
Sound control

Strongly Agree

Strongly Disagree
Saves electricity

Strongly Agree

Strongly Disagree
6.

Whom did you/ will you consult before buying glass?


Retailers

Architect

Carpenter
Builder

Dealer

7. How frequently do you watch television? Please indicate out of the following
options. Choose one of the following option.
Very often (Daily)

Often (3-4 days a week)

Occasionally (1-

2 days a week)
Rarely (Once in a week)
8.

Never

Have you seen any advertisement regarding the glass in the TV?
Yes

No

9. Which companys ad comes to your mind first when you think of glass?

102

10. What was the Ad about?

..
11. Did it impress you? What do you remember of the advertising? INTERVIEWR TO
NOTE DOWN VERBATIM.
Yes

No

12. What did you like in the advertisements?


Message
Celebrity

Entertainment
Emotion

Music

Concept

Fun

If anything else, please specify

103

You might also like