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Topic
Title page
Certificate from Company
Declaration
Acknowledgement
Table of Contents
List of Abbreviations and Nomenclature

CHAPTER I : INTRODUCTION

1.1 - Overview
About the Company
1.1.2 - Growth rate
value chain
Competition analysis
SWOT analysis
Porter 5 forces analysis of the CPVC pipe Industry
1.2 Identified Problem
1.2.1 Need for Study
1.2.2 Objectives and scope
1.2.3 Research : Deliverables Expected
2
3
4
5

CHAPTER II : LITERATURE SURVEY


2.1 Review of Literature
2.2 Research Gap
CHAPTER III : RESEARCH METHODOLOGY
3.1 Type of Project, Target Respondents & Tools for Analysis
3.2 Assumptions, Constraints and Limitations
CHAPTER IV : DATA ANALYSIS & INTERPRETATION
4.1 Data Analysis & Interpretation
4.2 Disussion & Inferences
CHAPTER V : CONCLUSION

CHAPTER VI : SUMMER INTERNSHIP LEARNING CURVES (SILC)


6
TABLE OF CONTENT

Page No

1. INTRODUCTION
OVERVIEW
Lubrizol Advance Materials Limited is theworld largest manufacturer of CPVC resins and
compound used to manufacture CPVC pipes and fittings. Lubrizols Flowguard CPVC pipes
have been there in the United States since 50 years and in the Indian market for the past 15
years. Lubrizol produces and sells CPVC compounds to licensed manufacturers of FlowGuard
pipe & fittings. In India, Lubrizol is in Joint Venture with Astral Polytechnik Limited and
Ashirwad pipes. Both Licensee of Lubrizol with Astral having license to manufacture more
products. Lubrizol India Advance Materials Limited promotes the CPVC Technology in India.
It conducts Brand awareness campaigns for both its licensee Astral Polytechnik Limited and
Ashirwad pipes.
I had the privilege of working with Lubrizol India Advance Materials Limited in one of its
widely executed campaign across India held between May June 2015.
As a summer Trainee I was entrusted upon the role of market research and retail mapping and
later of conducting brand awareness and engagement for the plumber community. Since, A
plumber is an opinion leader in the decision of buying CPVC pipes and someone who does all
our plumbing work. The campaign was aimed at educating plumbers about the basic of CPVC
installations and spreading brand awareness. Thus, creating a plumber database and
establishing a direct connection between the plumbers and the company. Since, it was a retail
activation project we targeted the plumbers who do household plumbing work and buy CPVC
pipes and fittings from a retail outlet.
The campaign was highly successful in attracting a good number of plumbers in the events
conducted. More than 2000 plumbers attended the events conducted across more than 15
suburbs across Mumbai. Similar events were conducted across different cities in India. Thus,
the company achieved its objective of spreading Brand awareness and creating more
brandloyal customers who will generate more sales revenue for the company.

1.1.1 ABOUT THE COMPANY


The Lubrizol Corporation is one of the world's leading suppliers of specialty chemicals. A
pioneer in the field of lubricant additives, Lubrizol is the world leader in this $7 billion
industry. The firm makes a wide range of additives for lubricating oil and fuel used in various
engines, as well as additives for automatic transmission oils and industrial oils. Lubrizol
generates approximately 56 percent of its revenues from its lubricant additives business. After
more than 75 years concentrating mainly on lubricant additives, Lubrizol transformed itself
through the June 2004, $1.93 billion acquisition of Noveon International, Inc. The Noveon
operations provided the core for Lubrizol's specialty chemicals segment, which produces a
wide range of performance chemicals, such as ingredients for personal care, pharmaceutical,
food, and beverage products; emulsions and additives for coatings and inks; and specialty
plastics and materials. The company maintains facilities in 27 countries, including
manufacturing plants in 20 countries and laboratories in 11 countries, and it sells its products
in more than 100 nations around the world. Just a little under half of Lubrizol's revenues are
derived in North America, 27 percent in Europe, 18 percent in the Asia-Pacific and Middle
East regions, and 6 percent in Latin America.
EARLY HISTORY
The company was founded in 1928 by the Smith brothers (Kelvin, Kent, and Vincent), Alex
Nason and his father Frank Nason, and a friend of the brothers, Thomas W. James. The three
Smith brothers had all worked at Dow Chemical, a company their father, a professor of
chemistry, had helped to establish.
From its beginning the growth of Lubrizol, originally known as The Graphite Oil Products
Company, was tied to the expansion of the petroleum and automobile industries. By working
closely with manufacturers, or, in the case of shortsighted automobile makers, by staying one
step ahead, Lubrizol was able to carve out an unassailable niche for itself. The company's first
product, a suspension of graphite in oil called Lubri-Graph, was formulated to prevent car
springs from creaking.

After this initial success, the young men addressed a more serious problem. Early automobile
engines were lubricated with mineral oil, which meant that the engines overheated frequently,
and that their pistons would stick because of the heat or accumulated sludge. When this
happened the driver had to pull over and wait for the engine to cool. In the early 1930s the
chemists at Graphite Oil discovered that by adding chlorine to lubricants the problem of
overheating was alleviated. This new product, and in 1934 later the whole company, was
named Lubrizol, although no one knew what the "zol" stood for (the hyphen was dropped in
1943). Soon auto repair shops and car dealers were ordering the strangely named oil, along
with specialty lubricants tailor-made for specific models of engines.
In 1935 Alex Nason traveled to Detroit to promote his small company, but General Motors
Corporation (GM) scoffed at the idea of adding chemicals to oil in order to increase engine
performance. At the time, GM's diesel engines became so clogged with impurities that they
had to be stripped and cleaned every 500 hours. Eventually the auto manufacturer was
convinced of the value of gasoline and lubricant additives, and added Lubrizol products to its
list of recommended products for car care.

GOING PUBLIC: 1960


In the 1960s Lubrizol continued to watch its revenues steadily increase. In 1960 it became a
public company, and by taking advantage of the stock options that the company offered many
employees became rich. The company had a good relationship with its employees, in part
because salaries were generous and employees were eligible for profit sharing, including those
on the shop floor.

COMPANY PERSPECTIVES
A pioneer in the science of lubricant additives, The Lubrizol Corporation was transformed by
the 2004 acquisition of Noveon International, Inc., a supplier of advanced chemical
ingredients for consumer and industrial applications. The combined forces of these businesses
resulted in a new specialty chemical company defined by complementary technologies,
comprehensive market knowledge and global reach.
Lubrizol's approach to management was distinctive. Job descriptions were flexible, and
employees had a high degree of autonomy in deciding what tasks they should do and in what
manner. The company's success had always depended on staying at the forefront of research
on additives, and technicians historically comprised a high percentage of Lubrizol's
workforce. Upper management was also saturated with chemists, although in the 1970s a
prominent lawyer joined their ranks. The ordinarily mild-mannered Lubrizol was extremely
combative in guarding its patent rights.
Unlike many chemical companies, Lubrizol applauded the country's growing concern with
pollution. Lead-free gas and catalytic converters opened up a new demand for lubricants to
replace the lubricating action of leaded fuel. Any change in engine design was beneficial for
Lubrizol because a new design required new additives, and the company was well-equipped to
meet the latest demands before its competitors were able to.

Details about the Industry


Lubrizol Advanced Materials is a leading global producer of advanced specialty polymers,
polymer-based additives and chemical additives used in everyday consumer and industrial
applications. As an innovation leader, we leverage our core polymer and surface active
chemistries and formulations to create proprietary, high-performance materials for our
customers in a wide range of industries.
Product Lines
Engineered Polymers
Lubrizol draws upon decades of innovation, combining
thermoplastic polyurethanes (TPUs), copolyesters and
conductive polymers technologies to provide one of the broadest
product portfolios of engineered polymers available today. From
industrial and transportation applications to those in the sports
and recreation and electronics industries, our products bridge the
gap between flexible rubber and rigid plastics with numerous
physical property combinations, making them extremely
adaptable for a variety of end-use applications.
Personal and Home Care
We develop, manufacture and market a broad range
of specialty chemicals for skin care, hair care, bath
and shower, surface care and fabric care. Our
innovative ingredients and additives modify physical
properties, enhance functional performance and
deliver aesthetic benefits to drive key product claims
and performance benefits that consumers notice.

Performance Coatings
Lubrizol offers a comprehensive portfolio of
resins and additives, surface modifiers,
hyperdispersants and plastic additives to help
enhance the performance, functionality and
durability of our customers products. We offer
a wide range of technologies, including highperformance polymers and additives for
specialty paper, inks and graphic arts, and paint
and textile coating applications.

LifeScience Polymers
We combine advanced polymer solutions
and unmatched support services to be a
leader in the medical and healthcare
industry, equip our customers for success
and ultimately improve lives. We work
in collaboration with our customers to
develop functional polymer solutions for
various applications, including dermal
treatments, oral care and medical
devices.Unique products such as
antimicrobial and bio-absorbable polymers
enable us to create high-value solutions in
fastgrowing markets

CPVC Piping Systems


The Lubrizol Corporation is the world leader in chlorinated polyvinyl chloride (CPVC)
resins and compounds that are trusted in various applications, including plumbing, fire
sprinkler systems and industrial piping but the benefits reach far beyond building and
construction. Across various industries, manufacturers rely on Lubrizols CPVC materials as
cost-effective solutions for their high-performance application needs.
Products and Applications
Lubrizols unparalleled level of experience, proven performance, track record of innovation,
product diversity and commitment to customer support make us the number-one choice for a
variety of CPVC needs:

FlowGuard Pipe and Fittings

Pipe and fittings for residential and commercial water distribution systems.

BlazeMaster Fire Sprinkler Systems

Fire sprinkler systems for multifamily, commercial and residential applications.


Corzan Industrial Systems

Piping systems for corrosive and high-temperature applications, as well as for water
distribution systems.
TempRite CPVC

Specialty CPVC compounds used for a wide variety of applications.

1.1.2

THE INDIAN PIPE INDUSTRY

Pipe Industry in India

G.I pipes
PVC pipes
CPVC

Fig 1.1 The Indian Pipe Industry segmentation

The Indian plumbing industry is estimated at ~Rs. 17,000 cr and is growing at ~15% CAGR.
~41% of the Indian market is for GI pipes, ~53% of the market is for PVC pipes and ~4% of
the market is for CPVC pipes.
CPVC is still a very underrated product in India due to preconceived notions of the Indian
public. In reality CPVC pipes are as good as GI/PVC pipes and in some aspects (such as life,
fire resistance and corrosion proof) even better. GI pipes are steel pipes coated with zinc. PVC
pipes are made of plastic and vinyl. CPVC pipes are made of CPVC resin, which is a valueadd of PVC.

According to the latest Freedonia report, world plastic pipe demand is forecast to increase
~7.3% annually to 20.3 million metrictons in 2015. Increases in global construction activity
and process manufacturing output will support growth.
More than two-thirds of all plastic pipe demand generated during the 2010-2015 period is
expected to be attributable to the Asia/Pacific region.
A GROWING INDUSTRY
The plumbing sector is a growing one. According to the Global Construction 2020 Report
prepared by Global Construction Perspectives & Oxford Economics and sponsored by PWC,
US $ 97.7 trillion would be spent on construction globally in the next ten years. The report
further says that current spending of $ 7.2 trillion per year would grow by 67% to 12 trillion
per year by 2020, with half the amount being spent by three countries China, India & USA.
Real estate is one of the fastest growing sectors of the Indian economy and contributes about 5
per cent to India's gross domestic product (GDP). Foreign direct investment (FDI) up to 100
per cent is allowed with government permission for developing townships and settlements and
in the hotel and tourism sector through the automatic route. The Government of India (GOI)
has raised the housing loan limit to US$ 52,080 for priority sector lending and US$ 833
million has been allocated for rural housing fund (RHF) in FY13 budget. The real estate sector
is playing a significant role in the rising demand for plumbing products.
VALUE CHAIN

Lubrizol
Additives

Lubrizol
Advance
Material

Business segments of Lubrizol Corporation

Lubrizol
Oilfields

Plumbing
systems

Fire protection
Systems

Industrial
systems

Fig 1.1.2 VALUE CHAIN OF LUBRIZOL ADVANCE MATERIAL INDIA LIMITED

Plumbing systems
Lubrizol is the world largest manufacturer of CPVC resins and compound. Lubrizol produces
and sells CPVC compounds to licensed manufacturers of FlowGuard pipe & fittings. In
India, Lubrizol is in a joint venture with Astral Polytechnik Limited and Ashirwad pipes. It
sells CPVC compounds to these companies who manufacture FlowGuard pipe & fittings.
FlowGuard pipe & fittings are made from a specialty plastic known chemically as
chlorinated polyvinylchloride (CPVC), which offers increased product toughness year round
and simplified installation using readily available, inexpensive tools.FowGuard pipe & fittings
utilize solvent cemented joints, proven with more than 50 years of successful CPVC service
history, and are available from " to 12" (dependent on manufacturer) and produced
according to a wide range of international standards.
FlowGuard CPVC Benefits
Main benefits of a FlowGuard CPVC plumbing pipe and fittings system:

Quiet operation

Uncompromised water quality (no piping corrosion or copper contamination)

Energy efficiency

Reduced condensation

Simplified installation

Hot and cold water compatibility

Fire Protection systems


Lubrizol advance material India Limited is also into Fire protection sytem and sprinklers.
Lubrizols Blazemaster fire sprinkler systems is one such example.
BlazeMaster fire sprinkler systems meet and exceed global performance and manufacturing
standards for CPVC fire sprinkler systems - making it the most specified non-metallic option
in the world. BlazeMaster fire sprinkler systems are:

Specially engineered for fire sprinkler applications

Listed for use in light hazard applications as defined by NFPA 13/13R/13D

Immune to the effects of pitting and corrosion

Excellent flame and smoke characteristics

Lower installation costs when compared to metallic systems


In India, Astral Polytechnik Limited is the only licensee of Lubrizol to manufacture
BlazeMaster fire sprinkler systems.

Industrial Systems
With metallic piping systems, piping corrosion is an ongoing problem that can lead to
process leaks, flow restrictions and, ultimately, premature failures.

But Lubrizols Corzan and Corzan HP industrial piping systems are made from a noncorrosive, durable chlorinated polyvinyl chloride (CPVC) technology that makes them
chemically inert to most mineral acids, bases and salts, as well as aliphatic hydrocarbons
found in industrial applications, including mineral processing, chemical processing, water
systems, wastewater treatment.
For both new systems and maintenance, Corzan industrial systems offer a tremendous value
versus metallic and non-metallic options even at elevated temperatures at pressure up to 200
F (93 C). Additionally, over the long-term, Corzan CPVC technologies can result in a
significantly lower total installed cost than most other piping alternatives due to stable
material costs, a longer service life resulting from the product's natural chemical resistance,
lower maintenance costs, reduced downtime and a fast and easy installation process requiring
no electricity.
In India, Astral Polytechnik Limited is the only licensee of Lubrizol to manufacture Corzan
and Corzan HP industrial piping systems

COMPETITON ANALYSIS
Astral polytechnic Limited is the first licensee of Lubrizol in India and has access to four of
Lubrizols products (Flowguard, Corzan, Aquatek and Blazemaster). APTLs competitors in
India, Ashirvad Pipes (Bangalore) have licenses only for one of Lubrizols products i.e.
Flowguard. Being Lubrizols first licensee and only licensee with access to multiple products
gives APTL a significant advantage over its competitors as it makes several of APTLs
markets largely monopolies.
Moreover, it makes Astral polytechnic Limited the market leader and price setter in the
industry. APTL took two price hikes in FY12 and one in April 2012 and is expected to have
taken another hike in June 2012. The additional products also make expansion (by capacity
and geography) feasible for APTL, which might not be the case with APTLs competitors.

Fig 1.1.3 Astral Polytechnik Growth FY2012 14

GROWTH DRIVERS AND CHALLENGERS

Fig 1.1.4 Growth Drivers and Challengers

SWOT ANALYSIS
Strength :
The biggest strength of Flowguard CPVC is its superior quality. Flowguard plus is
National Sanitary Foundation (NSF), USA certified.
Flowguard plus is the pioneer and innovator of CPVC pipes. It has been in the
market for the past 50 years and has survived the test of time by continous research
and innovation on the product.
The pressure bearing capability of Flowguard plus pipes is greater than any other
product available in the market.
Flowguard plus has a very good Brand image as against the local brands and this has
helped tremendously in increasing the sales revenue for Astral Polytechnik and
Ashirwad pipes.

Weakness :
The Indian consumer has always been miser. Flowguard Plus with all its quality and
imported raw materials comes at a greater price compared to the local CPVC brands.
The are no fixed distributors of Flowguard Plus for both the manufacturers and
hence this creates an opportunity for the competitors to establish their brands.
Opportunities :
Flowguard Plus is a well known and widely used brand. This presents an opportunity
for the manufacturers to further push their products through effective distribution
network.
The CPVC pipes are slowly replacing the G.I pipes and with the boom in the real
estate industry the demand for CPVC will further be on the rise and it presents and
opportunity for CPVC manufacturers to cash in the fast growing Indian economy.
Flowguard Plus can use the dissatisfaction prevalent among the CPVC consumers
against local brand to its advantage by providing superior quality products.
Threats :
The biggest Threat for Flowguard Plus is the tendency of retailers and the customers
to switch over to different brands due to lack of transparency in price and offers,
unavailability, lower prices of other brands, greater margin and quick availability of
other brands
The ad-campaigns. Innovation, Brand image and more transparent distribution network
of other pipe companies.
Other competitors and new brands emerging in the market are some of the threats for
for Flowguard Plus pipes and fittings.

Industry analysis - Michael Porter 5 Forces Model.

Bargaining
power of
Buyers

Threat of
New
Entrants

Industry
Rivalry

Threat of
Substitutes

Bargaini
ng
power of
Suppliers
Fig 1.1.5 Michael Porters 5 Forces Model

Porter five forces analysis is a framework to analyze the level of competition within an
industry and business strategy development. It draws upon industrial organization (IO)
economics to derive five forces that determine the competitive intensity and therefore
attractiveness of an Industry. Attractiveness in this context refers to the overall industry
profitability.
Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute
products or services, the threat of established rivals, and the threat of new entrants; and two
forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power
of customers.

Threat of new entrants


Profitable markets that yield high returns will attract new firms. This results in many new
entrants, which eventually will decrease profitability for all firms in the industry. Unless the
entry of new firms can be blocked by incumbents (which in business refers to the largest
company in a certain industry), the abnormal profit rate will trend towards zero
The following factors can have an effect on how much of a threat new entrants may pose:
1. The existence of Barriers to entry - Since, the entry barriers are low there is a threat
of new players entering into the market.
2.

Government policy - With the Make in India campaign the government is trying to
reduce the existing barriers for the ease of doing business which will encourage new
entrants in the pipe industry to go for CPVC pipe manufacturing.

3. Capital requirements - Cost required to set up a CPVC pipe manufacturing plant is


high and can go upto 100s of croores and hence, the threat of new entrants is severely
reduced. This is the primary reason why many existing companies have adopted a
cautious approach in setting up CPVC manufacturing plants.
4. Absolute cost The absolute cost for CPVC is on the higher side compared to PVC
pipes due to limited suppliers and hence, the threat of new entrants gets reduced as the
existing PVC pipes manufacturers might not want to enter the market.

Threat of substitute products


The existence of products outside of the realm of the common product boundaries increases
the propensity of customers to switch to alternatives. In this case, PVC might be considered a
substitute for CPVC. Increased marketing for PVC "shrink the pie" for CPVC pipes. whereas
increased CPVC advertising would likely "grow the pie of Flowguard plus CPVC pipes,
albeit giving Flowguard plus a larger slice at other brands expense.

Potential factors:

Buyer propensity to substitute

Relative price performance of substitute

Buyer switching costs

Perceived level of product differentiation

Number of substitute products available in the market

Ease of substitution

Substandard product

Quality depreciation

Availability of close substitute

Bargaining power of customers (buyers)


The bargaining power of customers is also described as the market of outputs: the ability of
customers to put the firm under pressure, which also affects the customer's sensitivity to price
changes. Firms can take measures to reduce buyer power, such as implementing a loyalty
program. Flowguard Plus brand awareness program is thus aimed at creating a loyal base of
buyers (plumbers).The buyer power is high if the buyer has many alternatives. The buyer
power is low if they act independently. In this case, the buyer power is not that high can be
considered as negligible as the existing local brands are not of the same quality and also lack
of availability of other brands. This has also reduced the bargaining power of the buyers as
they do not have other alternative brands to go for.

Potential factors:

Buyer concentration to firm concentration ratio is low and hence there is no severe
threat from the buyers

Degree of dependency upon existing channels of distribution

Bargaining leverage, particularly in industries with high fixed costs

Buyer switching costs relative to firm switching costs

Buyer information availability

Force down prices

Availability of existing substitute products

Buyer price sensitivity

Differential advantage (uniqueness) of industry products

RFM (customer value) Analysis

The total amount of trading

Bargaining power of suppliers

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw
materials has a source of advantage when there are few sources available. Lubrizol being the
supplier for CPVC resins and compounds for its licensee Astral and Ashirwad has high
bargaining power and refuse to work with the firm or charge excessively high prices for its
unique resources. Hence, the threat from suppliers is high in the CPVC industry and affects
the overall cost of the product as well as the profitability of the company.

Potential factors are:

Supplier switching costs relative to firm switching costs

Degree of differentiation of inputs

Impact of inputs on cost or differentiation

Presence of substitute inputs

Strength of distribution channel

Supplier concentration to firm concentration ratio

Employee solidarity (e.g. labor unions)

Supplier competition: the ability to forward vertically integrate and cut out the buyer.

Intensity of competitive rivalry


For most industries the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry and the CPVC pipe industry is no different. There is an intense
competition between the two major manufacturers of CPVC pipes, i.e Astral Polytechnik

Limited and Ashirwad pipes both competing for the same brand. Both the companies are at an
advantage due to the following factors which determines the intensity of competitive rivalry :
Potential factors:

Sustainable competitive advantage through innovation

Level of advertising expense

Powerful competitive strategy

Firm concentration ratio

Degree of transparency

1.2 Identified Problem

1.2.1 Need for Study


The retail sector presents a huge opportunity for CPVC pipe manufacturers as in a
developing economy and with the boom in the real estate there is a huge demand for
CPVC and to tap this opportunity it is essential to make Flowguard CPVC pipes
and fitting available across all retail outlets. This can be achieved by superior
distribution network
The retailers and the plumbers are the major influencers for a consumer while
buying a CPVC products.
The study aims to find out all possible retail outlets dealing in plumbing materials
and trying to establish a direct relation between the retailer and the company.
This is achieved by finding out what are the products being sold by the retailer and
the demand of the market through a series of questionnaire.
Generally, it is found that for all their household plumbing related work people tend
to go to their nearest hardware or plumbing shop and ask for a plumber. This
plumbers are the one who do household plumbing works and are opinion makers for
the consumers which are generally not aware of many pipe brands and as such it is
essential to create a brand engagement among this particular target group.
The plumbers workforce in india is largely unorganized and untrained, hence to
avoid defects in installation of CPVC the plumbers needs to be educated and briefed
about the techniques and the best practices of CPVC installations.
Also, there is a vast majority of consumers who have reservations on the use of
CPVC pipes for domestic household water supply due to certain misconceptions and

lack of awareness. Hence, changing the perception about CPVC pipes.


To study the brand awareness of Flowguard CPVC products.
To increase market penetration by creating brand awareness and retail activation
To find out the possible customers for flowguard pipes.
To increase brand engagement with opinion makers (plumbers) to build a long term
emotional connection between the brand and the customer

1.2.2 OBJECTIVES AND SCOPE

To study the brand awareness of Flowguard CPVC products.


To increase market penetration by creating brand awareness and retail activation
To find out the possible customers for flowguard pipes.
To increase brand engagement with opinion makers (plumbers) to build a long term

emotional connection between the brand and the customer


To develop a long term emotional connect between the brand and the consumers.
To make the plumbers brand loyal and developing brand stickiness.
To address the issues faced by the plumbers and resolving their queries.
To spread awareness about Flowguard joints and fittings and making them

understand the benefits of using them to increase the efficiency of their work.
Making the plumbers understand of how proper installation of CPVC pipes could
increase the durability of CPVC pipes.
Classification of retail outlets based on size and the products offered.
Developing a retail database to seek more business avenues and increasing market
penetration.
Developing a plumber database for conducting future plumber meets and training
programs.

1.2.3 Research: Deliverables expected

The research aims to understand the perception of CPVC from a plumbers point
of view.

The research seeks to understand the impact of brand awareness events


conducted by Lubrizol for its licensee Astral and Ashirwad on the plumber
community.
It aims to understand the take aways by the plumbers from the event and
whether the events have in some way managed to resolve their queries.
The events also seeks to understand the problems their consumers have
encountered after installation of CPVC pipes.
The research seeks to understand if the events conducted by the company have
been successful in its objective of creating brand loyalty and brand awareness.
The research seeks to understand the grievances of the plumbers and resolving
them.
It also presents an opportunity to interact with the plumbers and ways to conduct
better events.

Chapter 2: Literature Survey


2.1 Review of Literature
Why to use CPVC pipes ?
The boom in the building and construction industry, especially in the housing and commercial
building sector has fueled high demand for cost effective, reliable, quality piping and
plumbing systems. The choice of piping systems for water utilities is based on overall long
term value. They must deliver on factors like long term costs, reliability, versatility,
environmental effect, drinking water safety and public health. CPVC Piping systems are the

ideal choice, because they are corrosion resistant, durable, smooth, friction free, resistant to
bacterial growth and environment friendly, besides a host of other user friendly features.
CPVC Pipes - Manifold Benefits
CPVC Pipes provides several critical advantages like:
Aesthetic, extremely easy, cost effective to handle and install
CPVC pipes are lightweight, which means low shipping costs along with faster, safer and
easier handling, cutting and installation, reducing overall labour costs. Installation is easy by
fast cold welding, which is cost effective as no electric/heat source is required. Simple cutter,
chamfering tool and CPVC solvent are the only requirements for 100% leak proof jointing.
Excellent resistance to chemicals, corrosion and abrasion
Does not breakdown ever under harshest water conditions and aggressive service conditions
like low pH water, coastal salt air exposure and corrosive soils. It can even be buried directly
under concrete slabs with no chemical interaction with concrete.
Most suitable for carrying drinking water
Retards bacterial growth, which keeps the water quality healthy and very good. They are
suitable even for aggressive water pH levels of less than 6.5. CPVC Pipes meant for carrying
water should have NSF certification according to ANSI/NSF Standard 61/ program policy 45
(RVCM levels in these pipes are so low as to be undetectable).
Smooth Internal Surface
Absence of scaling, pitting and leaching leads to smooth and full bore flow and low water
noise. It maintains full water carrying capacity because of no scale buildup, avoiding water
pressure loss.
Energy efficient, lower thermal conductivity and insulation cost
It is self insulating with lower thermal conductivity, which greatly reduces heat and therefore
requires low insulation levels and cost.
Excellent performance in tough conditions
These piping systems are tough, rigid and strong with higher pressure bearing capacity. It
requires less hangers and supports with minimum offsets/looping.

High flexibility virtually eliminates water hammers


No water hammer arrestors required under normal conditions as intensity of water hammer is
approximately one third that of copper or steel pipe.
Extremely fire resistant
It has integral flame retarding property with very high Limiting Oxygen Index (LOI) of
60.Thus in air these pipes cannot be the ignition source of fire or support or sustain
combustion. It does not increase fire load, has low smoke generation and low flame spread
without flaming drips.
Completely leak proof
The cold welding using CPVC solvent is fast and simple, ensuring leak free installation for the
entire life span of the piping system.
Cost - effective, durable with excellent long term reliability
CPVC pipes have high impact strength and durability. It has low initial cost and lower
maintenance costs as against competitive materials.
Ideal for home plumbing systems
The CPVC system is four times quieter than copper plumbing systems, reducing not only the
sound of running water, but also the pounding noise of the water hammer. Its thermoplastic
properties provide excellent insulation to virtually eliminate sweating and condensation. It
keeps hot water hotter and cold water colder than copper plumbing. There is minimal energy
loss through pipe walls, saving money on heating and cooling.
Less subject to job site thefts as compared to copper or metal pipes.
Relative price stability over a long time.
Eco friendly as its production is very energy efficient.
Wide Range of Applications
The excellent qualities of CPVC Pipes make them ideal for
Hot and cold water distribution in residential, industrial and public projects.
Carrying drinking water and food liquids
Water and waste water treatment systems
Transportation of chemical and hot corrosive fluids, which includes a wide variety of

inorganic acids, bases used in chemical processing


Use in industries like metal finishing, plating and treatment, pulp and paper, air pollution
control, mining, aerospace, textile, food and beverage processing, fine sprinkler piping and
municipal projects.
Use as high tension cable protection pipe for electric net improvement (Large dia. CPVC
Pipes).
Solar heating, central heating and radiant floor heating application

CPVC v/s COPPER ?


In plumbing circles, there is a longstanding debate between copper and chlorinated
polyvinyl chloride (CPVC) piping. Copper has been used in North American
plumbing applications for more than 70 years, while CPVC has been installed
successfully for nearly 50 years.
Why is copper still so popular? Since it is metallic, many facilities professionals assume that it
is stronger and longer lasting. There is a universal acceptance of copper, and contractors have
been installing it for so long that there is an inherent comfort level with continuing to do so.
Some contractors and building owners also like the fact that copper is recyclable. With rising
copper prices, however, this recyclability can also work to the building owner's disadvantage
due to copper theft from jobsites. CPVC piping systems are not subject to jobsite theft since
they have little scrap value.

Profit margins are being squeezed by the dramatic increase in copper prices, which have
nearly doubled since the end of 2004 due to a surge in global demand from quickly
industrializing countries such as China and India. There has also been a boost in less-thanfavorable publicity regarding premature copper-pipe failures manifested as pinhole leaks
caused by corrosion arising from aggressive (although still potable) water conditions or
aggressive soil. Because of these issues, many facilities professionals have sought out other
technologies, such as CPVC piping.
CPVC pipe and fittings offer installers a viable alternative to copper. Since CPVC is nonmetallic, it will never pit, scale, or corrode. Unlike copper, CPVC piping systems will
maintain drinking-water quality even if the pH of the potable water source falls below 6.5 (pH
measures the relative acidity of water; the pH of natural potable water should be between 6.5
and 8.5). CPVC is also approved for potable-water conveyance by all major building codes.
Unlike copper, CPVC offers stable pricing that is unaffected by market fluctuations or
international supply and demand. Building owners typically experience significant labor
savings with CPVC due to its quick and easy installation. A solvent cement-bonding system
eliminates the need for welding or soldering and creates a reliable joint that can be pressuretested within minutes.
Being non-metallic, CPVC is faced with the challenge of overcoming the perception that it is
cheap and, therefore, less reliable. For some facilities professionals, there is concern about
using an unfamiliar product, especially with regard to its ability to handle water at high
pressures, but copper tube-size CPVC is rated for a continuous working pressure of 100 psi at
180 degrees F. (making it appropriate for use in hot- and cold-water distribution systems,
including potable water distribution, corrosive fluid handling, and fire suppression).
A number of other advantages make CPVC an attractive choice:

Corrosion resistance: Depending on water and soil conditions, copper can fail due
to corrosion or pinhole leaks; CPVC is 100-percent corrosion resistant. Since there is no
corrosion, scale build-up is inhibited.

Energy efficiency: CPVC is more energy efficient than copper due to its improved
thermal insulation properties, which also help to reduce condensation. Its insulating
characteristics can signify long-term savings for building owners, keeping water hot for a
longer period of time than metal tubing.

Noise reduction: CPVC minimizes water-flow noise and virtually eliminates water
hammer.

2.2 Research Gap


Hypothesis Statements :

Brand awareness
Null Hypothesis (Ho) - Flowguard CPVC pipes is a well known brand in the retail market.
Alternate Hypothesis (H1) - Flowguard CPVC pipes is a not a well known brand in the
retail market.
Perception of CPVC pipes
Null Hypothesis (Ho) Plumbers have a good perception about Flowguard CPVC pipes

Alternate Hypothesis (H1) - Plumbers carry a negative perception about Flowguard CPVC
pipes.

Perceived Quality
Null Hypothesis (Ho) Plumbers do not encounter problems such as leakage or breakage
after installation of Flowguard CPVC pipes .
Alternate Hypothesis (H1) - Plumbers encounter problems such as leakage or breakage after
installation of Flowguard CPVC pipes .

CHAPTER 3. RESEARCH METHODOLOGY


Research Design :
This is an exploratory and descriptive research for the purpose of understanding the impact of
Brand awareness programs of Flowguards CPVC pipes and the perception of CPVC pipes
among the plumbers .
SAMPLING DESIGN:
Sampling Units : Plumbers
Sampling Method : Stratified Random Sampling.
Sample size : 100
Sampling area : The plumbers from Vile parle, Bandra and Vashi were intervierwed.
DATA COLLECTION:

SECONDARY DATA COLLECTION:


Secondary data was collected through various sources:
1. www.lubrizol.co.in
2. The Indian Pipe Industry Daedal research
3. www.building.com
PRIMARY DATA: Primary data was collected by personally interviewing plumbers who
attended our events across different location in Mumbai with the help of structured
questionnaire comprising of both open ended and closed ended questions.

3.3 Assumptions, Constraints and Limitations


Assumptions :
1. It is assumed that the interviewed plumbers represent the plumber community as a whole
and the views expressed by them are considered to be generalized and common.
2. The information provided by the plumbers is true and based on their years of experience.
3. It is assumed that the information provided is constant and is same for different cities across
India

Constraints and Limitations

1. The study has confined to urban areas as it assumed that the rural areas will also echo the
same views as that being said by the urban consumers. Hence the entire findings are limited
and refer to urban consumers only.
2. Geographical coverage, as only three areas have been taken from Mumbai, India. It is not
sure whether the findings will apply to the whole country.

Research Tool:
1) Structured Questionnaire (Refer to Annexure)
2) Ms- Excel: A series of tables were obtained from the compiled data in totality using
automated excel sheet to perform the necessary calculations.

Chapter 4 :Data Analysis and Interpretation

Q. How long have you been in the plumbing profession?

more than 10 years; 18% 0-2 years; 21%


7-10 years; 12%

2 -5 years; 14%
5-7 years; 35%

Analysis of surveyed Plumbers as per their experience

Interpretation : Almost 65 % of the plumbers are into this profession for more than 5 years
and are well versed with Flowguard CPVC pipes and fittings and are well versed with the
Brand. This figure also indicates that many flowguard users are experienced plumbers and
most of them are Brand loyal and have been using it for quite some time.

Q. Are you aware of CPVC pipes and fittings and its range ?

YES

NO

Analysis of Brand awareness of Flowguard CPVC pipes and fittings

Null Hypothesis (Ho) - Flowguard CPVC pipes is a well known brand in the retail market.
Alternate Hypothesis (H1) - Flowguard CPVC pipes is a not a well known brand in the
retail market.
Interpretation : More than 86 % plumbers are aware of Flowguard CPVC pipes and its
range. This shows that Flowguard is a well known and amongst the top brand in the country
for CPVC pipes. Also, it has to be noted that many of the plumbers are aware of the company
behind the Flowguard pipes , i.e, Astral Polytechnik and Ashirwad which indirectly proves
that they use Flowguard pipes.
Hence, we accept the Null Hypothesis (Ho) - Flowguard CPVC pipes is a well known
brand in the retail market

Q3. Which Brand of CPVC pipes do you use?

25
20
15

Byculla
Wadala
Sion Koliwada

10

Chembur
5

Chembur
Sion Koliwada

0
Astral

Wadala
Ashirvad

Prince

Byculla
Superme

Area-wise analysis of different brand of CPVC pipes as per their usage

Interpretation : As seen from the image, Flowguard Plus Astral pipes have more
consumers in Mumbai followed by Bhayander,Mira Road,Dahisar and Borivali, while astral
pipes are more in demand in Borivali while local players like Prince and Supreme have low
market share as majority of the market is dominated by Flowguard plus manufacturers.

Q. Why would you choose Flowguard Plus CPVC pipes over other brands ?

70
60
50
40
30
20
10
0

Perception of plumbers with respect to different traits in the Brand.

Interpretation : Plumbers choose quality as the most important factor for using Flowguard
Plus CPVC pipes over other brands. Brand Image, durability and greater resistance to
corrosions and abrasions were some of the other factors listed by plumbers while choosing
Flowguard over other brands of CPVC. Also, it has to be noted that majority of the plumbers
use Flowguard plus because of its Brand image.
Hence, we reject the alternate hypothesis and accept the Null Hypothesis (Ho) - Plumbers
have a good perception about Flowguard CPVC pipes

Q. What is your average usage of CPVC pipe in a month ?

100%
90%
80%
70%
60%

More then 30,000 Rs

50%

10,000 - 30,000 Rs
5,000 - 10,000 Rs

40%

2,000 - 5,000 Rs

30%

less than 2,000 Rs

20%
10%
0%

Bandra

Vileparle

Vashi

Areas covered
Area-wise average usage of CPVC pipes by a plumber in a month (Figures in INR) .

Interpretation : Navi Mumbai has the highest number of plumber who have a usage of more
than Rs 30,000 followed by Vile parle and Bandra. Also, it has to be noted that bandra has
more customers in the range of 10 - 30,00 INR followed by Vile parle and vashi. This can also
be attributed to the fact that in areas like navi Mumbai have many real estate projects are
being carried out and hence the demand is particularly high in this region.

Q. Have you encountered any defects with Flowguard Plus CPVC pipes ?

40
35
30
32

25

No. of respondents 20

No,Never

24

Very rarely

15

Sometimes
Yes, always

14

10
5
0

Bandra

Vileparle

Vashi

Areas covered

Null Hypothesis (Ho) Plumbers do not encounter problems such as leakage or breakage
after installation of Flowguard CPVC pipes .
Alternate Hypothesis (H1) - Plumbers encounter problems such as leakage or breakage after
installation of Flowguard CPVC pipes .
Interpretation : Flowguard Plus CPVC pipes rarely have defects in the products as they go
through a strict quality check and are certified by the National Sanitary Foundation, USA.
Hence, it can be interpreted that Flowguard Plus pipes have long durability since they rarely
have defects and can last for many years.
Hence, we reject the alternate Hypothesis and accept the Null Hypothesis (Ho) -Plumbers do
not encounter problems such as leakage or breakage after installation of Flowguard CPVC
pipes

What would you prefer Flowguard Plus CPVC pipes over G.I?

Durability; 40

Better water quality; 60

Easy to install ; 42

Cheaper; 50

Greater resistance to corrosion; 39

Null Hypothesis (Ho) Plumbers have a good perception about Flowguard CPVC pipes
Alternate Hypothesis (H1) - Plumbers carry a negative perception about Flowguard CPVC
pipes.

Interpretation : Almost 60 % plumbers said CPVC pipes provide better water quality as
against G.I pipes while almost 40% people agree that it is easy to install, durabale and provide
greater resistance to corrosion. Almost half of the people interviewed choose CPVC pipes
because it is easy to install and use.

Chapter 5: Conclusions

5.1 Summary of the Findings :


Almost 65 % of the plumbers are into this profession for more than 5 years and are well
versed with+ the Brand. This figure also indicates that many flowguard users are experienced
plumbers and most of them are Brand loyal and have been using it for quite some time.
More than 86 % plumbers are aware of Flowguard CPVC pipes and its range. This shows
that Flowguard is a well known and amongst the top brand in the country for CPVC pipes.
Also, it has to be noted that many of the plumbers are aware of the company behind the
Flowguard pipes , i.e, Astral Polytechnik and Ashirwad which indirectly proves that they
use Flowguard pipes.
Hence, we accept the Null Hypothesis (Ho) - Flowguard CPVC pipes is a well known
brand in the retail market
Plumbers choose quality as the most important factor for using Flowguard Plus CPVC pipes
over other brands. Brand Image, durability and greater resistance to corrosions and abrasions
were some of the other factors listed by plumbers while choosing Flowguard over other
brands of CPVC. Also, it has to be noted that majority of the plumbers use Flowguard plus
because of its Brand image.
Almost 60 % plumbers said CPVC pipes provide better water quality as against G.I pipes
while almost 40% people agree that it is easy to install, durabale and provide greater resistance
to corrosion. Almost half of the people interviewed choose CPVC pipes because it is easy to
install and use.
Hence, we reject the alternate hypothesis and accept the Null Hypothesis (Ho) - Plumbers
have a good perception about Flowguard CPVC pipes
Flowguard Plus CPVC pipes rarely have defects in the products as they go through a strict
quality check and are certified by the National Sanitary Foundation, USA. Hence, it can be

interpreted that Flowguard Plus pipes have long durability since they rarely have defects and
can last for many years.
Hence, we reject the alternate Hypothesis and accept the Null Hypothesis (Ho) -Plumbers do
not encounter problems such as leakage or breakage after installation of Flowguard CPVC
pipes

5.2 Suggestions and Recommendations


There should be fixed dealers of Flowguard CPVC pipes in each area and that the
company should ensure that the reatailers are aware of the dealers in that particular
area.
The biggest Threat for Flowguard Plus is the tendency of retailers and the customers
to switch over to different brands due to lack of transparency in price and offers,
unavailability, lower prices of other brands, greater margin and quick availability of
other brands. Hence, Flowguard Plus should ensure that there is a transparency in
prize
Flowguard Plus should ensure that the retailer receive a good margin from the
product and remain loyal to the brand. As a retailer has the power to influence and
change the decision of consumer. Hence, the company should establish a relationship
with the retailers through rewards and recognition over the sales of the product.
The company should run an ad campaign on a wider scale and create a Brand image.
Also, it has to be noted that the company has already established itself as a brand. It
should continue its BTL activities to develop and maintain its Brand image.
The company should also conduct campaigns to change the perceptions of CPVC
among users by creating informative ads on television, display ads etc.
Plumbers who are long time and heavy users of the brand demand more better
treatment by the company. The company should acknowledge them through events
and rewards.
Such events should be conducted more often in order to develop a relationship
between the consumers and the company.

5.3 Conclusion

Flowguard is a well known and amongst the top brand in the country for CPVC
pipes. Also, it has to be noted that many of the plumbers are aware of the company
behind the Flowguard pipes , i.e, Astral Polytechnik and Ashirwad which
indirectly proves that they use Flowguard pipes. Hence, it can be concluded that the
Brand awareness of Flowguard pipes is very good and it has established itself among
the premier brands in CPVC technology.
The biggest Threat for Flowguard Plus is the tendency of retailers and the customers
to switch over to different brands due to lack of transparency in price and offers,
unavailability, lower prices of other brands, greater margin and quick availability of
other brands. Hence, Flowguard Plus should ensure that there is a transparency in
prize
Flowguard Plus CPVC pipes rarely have defects in the products as they go through a
strict quality check and are certified by the National Sanitary Foundation, USA.
Hence, it can be interpreted that Flowguard Plus pipes have long durability since
they rarely have defects and can last for many years.
Plumbers choose quality as the most important factor for using Flowguard Plus
CPVC pipes over other brands. Brand Image, durability and greater resistance to
corrosions and abrasions were some of the other factors listed by plumbers while
choosing Flowguard over other brands of CPVC. Also, it has to be noted that
majority of the plumbers use Flowguard plus because of its Brand image. Hence, the
campaigns conducted by Lubrizol have been successful in creating awareness and
brand image.

Chapter 6: SILC details (Summer Internship Learning Curve details)


Sr.No
1

Main Report :
Task assigned for internship: ( Min : 5 Bullet point )

a
b
c
d
e
f
g

Retail Market Mapping


Creating retail database
Getting Plumber Nominations from Retailer
Market Research
Gift Distribution
Conducting brand awareness program at different places
Managing events

2
a
b

Research objective:
Retail market mapping of differnet location of Mumbai
Creating retail database

Increasing Brand awareness of Flowguard CPVC pipes by conducting mass events


for the plumbers who are associated with a retail outlet to increase Brand
engagement and retail market activation

Sr.No
1
2

4
5

6
7

Learning
Objective
Retail
Mapping

Method / Activity
To Map retail outlets by
visiting differnet locations

Learning from the


activity
Use of google maps
for mapping

Duration
1 week

Creating and
managing database

Creating MULS AND Beat


Plan

working in excel

3-5 days

Collecting data
from retailers

Getting plumber nominations


and identifying venue for
conducting events.

communication and
dealing with retailers

2-3
weeks

Retailer
information and
market research

asking questions to retailers in


the form of questionnaire

market research

2 weeks

Managing and
conducting
marketing events

Mangaing and handling the


registration desk and
performing other tasks as
assigned on the event day

event management

2- 3
weeks

Data compilation

compiling all the data in the


given format

data interpretation

2-3 days