Measuring The Changing Dimensions of Furniture Industry

Submitted by

Swayam Sarthak Samantray

Regd. No:1471091032

Session: 2018-19

Project Report submitted in partial fulfilment for the degree of

B-Tech Dual Degree(Management)

Under the guidance of

Mr. Umma Shankar Mishra

Institute of Business and Computer Studies
Siksha ‘O’ Anusandhan

Institute of Technical Education and Research

Faculty of Engineering and Technology
Siksha ‘O’ Anusandhan University
Mr. Umma Shankar Mishra

Professor/ Asst. Professor / Lecturer

IBCS, SOA University

This is to certify that Mr. / Ms SWAYAM SARTHAK SAMANTRAY having

Regd. No 1471091032 has done this research project work on
“Measuring The Changing Dimensions of Furniture Industry”and
submitted the report in partial fulfilment for the degree of DDM
{B.Tech(M.E.) and MBA} to ITER, SOA University, Bhubaneswar under
my supervision and guidance.

His / her report is the record of original work done by him / her. To
the best of my knowledge, no part of the content of this report has been
submitted for any degree by him / her or anybody else to any other
University or Institution.

Date : - / / 2019

Place : - Bhubaneswar (Prof………………….)

Project Guide

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 Declaration

I, Mr./Ms Swayam Sarthak Samantray hereby declare that the project

report submitted by me entitled, “Measuring The Changing Dimensions

of Furniture Industry” in the partial fulfilment for the degree of DDM

{B.Tech(M.E.) and MBA} to ITER, SOA University, Bhubaneswar, is the

record of original work done by me. No part of the content of this report

has been submitted to any institution / university for the award of any other

degree. Previous works in this field have been duly acknowledged as and

when they have been referred.

Date : - / /2019

Place : - Bhubaneswar (Name & Signature of the Student)

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 Acknowledgements
With heart full of obligation, I acknowledge the following personality, those
who have immensely contributed for my project work and without them I would
not have been able to reach the shore of the ocean.

It is a matter of great pleasure to express my sincere thanks and deep sense of

gratitude to my guide and mentor Mr. Akhtar Hussain, Regional Manager
Marketing and Sales, Hettich India Pvt. Ltd., Mumbai., for his day to day brilliant
guidance, valuable constructive suggestions and valid criticisms wherever
required, for successful completion of this work.

I also express my deep sense of gratitude and indebtedness to my internal guide

Mr. Umma Shankar and Prof. Jyoti Ranjan Das, Associate Dean, IBCS, SOA
University for his continuous inspiration and supervision of my work.

I am especially thankful to Mr. Prassana Tyagi, All India Sales Manager,

Hettich India Pvt. Ltd. who have been a great support and who have worked
actively and have provided all the support to make this project happen.

I would further like to extend my gratefulness to Mr. Uma Shankar Mishra for
his kind guidance that helped me in completing the project. Further I thank Dr.
Sidhya Brat Dash, Head of Training and Placement, IBCS for being so supportive
and approachable that helped me in due course of this project greatly.

I am obliged to all the employees of Hettich India Pvt. Ltd. with whom I had
pleasure of working during this project.

I am extremely grateful to Mr. Rajesh Chawla, VC,PR, Sales and Marketing,

Hettich India Pvt. Ltd. and for showing all the faith in me and providing me with
this opportunity to carry out this work at Hettich India Pvt. Ltd. Each of the

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member of the Department of Marketing and Sales, has provided me with
extensive personal and professional and taught me a great deal about the corporate
life, its work culture and few of marketing skills. I would especially like to thank
Mr Om Prakash. As my teacher and mentor, he has taught me more than I could
ever give him credit for here.

I thank my fellow mates, Sourav Suman Pattnaik, Akash Kumar Mahala and
Pragnyashree Mishra who have extended all the help and support where ever and
whenever I have needed. Many thanks go in particular to Dr. Saadhana Senapati,
who helped me with the project report to a great extent. Her experience has been
an incredible asset to me which helped me in completing this project.

Nobody has been more important to me in the pursuit of this project than the
members of my family. I would like to thank my parents, whose love and guidance
are with me in whatever I pursue. They are the ultimate role models.

Swayam Sarthak Samantray

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 Abstract

This paper presents a model for measuring the changing dimensions of

furniture industry and its markets. Just like the other industries, furniture
industry has been evolving ever since and has entered a revolutionary phase in
the past few years with the introduction of modular furniture to the market. The
market has swiftly shifted itself since then. The onsite work has been replaced
with the onsite assembly, inconvenience has been replaced with convenience of
transportation and installation is now nothing but simple as never before. The
study tries to find out how the trends have grown for such furniture and tries to
compare and contrast between the demand for both such furniture types. The
paper aims to provide with conclusive data and analysis of the current and future
trends of the furniture market and change in the same that has occurred in past
few years. The study provides with facts and figures that further opens a window
for further research on the topic that has been achieved through a
comprehensive mathematical approach. Propositions have been defined and
discussed to help facilitate research and provide guidelines for industrial
marketing managers, trainees and sales force/sales people working in the
industry of furniture to be specific.

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 List of Tables and Figures

Table 2.1: ( “ Aaker’s 10 models of CBBE”) ............................................................. 31

Table 2.3: ( “Direct approach for CBBE”)................................................................ 39
Table 3.1: (“ Size of Indian Steel Market”)................................................................. 54
Table 3.2: (“Indian Steel Exports”).............................................................................. 59

..........................................................................................................................................................
Figure 1-1: (“Aaker’s Brand Equity Model”)........................................................... 15
Figure 2-1: (“ Farquhar’s Conceptualisation of Brand Equity”)........................... 28
Figure 2-2: (“ Aakers’s Brand Equity Model”)........................................................ 30
Figure 2-3: (“Roots of CBBE Conceptualisation”).................................................. 33
Figure 4-1: (“Number of dealers in different cities considered for studies”)........ 65
Figure 4-2: (“Average Lifting of Stock in Different Cities Considered”).............. 66
Figure 4-3: (“Customer Preference between primary and secondary brands”).. 67
Figure 4-4: (“Brand Preference of Customers”)..................................................... 68
Figure 4-5: (“Factors Influencing Customer Preference”).................................... 69
Figure 4-6: (“Factors Influencing Customer Buying Behaviour”)....................... 70
Figure 4-7: (“Effectiveness of Various Marketing Strategies”)............................ 71
Figure 4-8: (“Aggressiveness in Branding V/S Customer Brand Preference”).. 77
Figure 4-9: (“ Establishing the Importance of Brand Equity”)............................ 79
Figure 4-10: (“ Contribution of factors in Determining Brand Equity”)............ 80
Figure 5-1: (“Brand Equity for a Brand”)............................................................... 84

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 Table of Contents
Subject Items Page No.

Chapter-I (Introduction)
 The Prologue………………………………………………………………….…… 12

 Relevance of the Study…………………………………………………………… 16

 Research Problem (Broad Statement, Dimensions and Research Questions) 16

 Objectives…………………………………………………………………………... 17

 Methods of Study…………………………………………………………………… 18
A. Sample Design
B. Methods of Data Collection

Chapter-II (Literature Review)

 Conceptual Study……………………………………………………………………. 22

 Empirical Evidences………………………………………………………………… 23
A. International Study
B. Indian Study
Chapter-III (Company and Product Profile)
 Concerned Industry Scenario…………………………………………………………… 50

 Current Profile of the Company / Jindal Steel and Power: An Overview………… 59

 Brief Profile of Products / services of the above said company ………………… 61

Chapter-IV (Data Analysis and Interpretation)

 Demographic Analysis (Frequency Tables, Cross Tabulations)……………………. 65
 Descriptive Statistical Analysis………………………………………………………… 72
 Inferential Statistical Analysis................................................................................ 76

Chapter-V (Summary and Conclusion)

 Major Findings………………………………………………………………………….. 83

 Managerial Implications……………………………………………………………….. 86

 Conclusion……………………………………………………………………………… 90

Annexure

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 CHAPTER - 1

Introduction

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 CHAPTER -1
INTRODUCTION

1.1: The Prologue

Each and every business in the market is guided by a set of rules and
regulations on which the entire business base is established. These sets of rules
and policies have been called as the dimensions of business and are responsible
to determine the size, the market prospects, profitability and most importantly
the feasibility of a business. The four dimensions that have been defined by the
American Marketing Association are as follows:-

Figure 1-1
(Dimensions of a business/ Industry)

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 a: Strategy
b: Operations
c: Marketing
d: Finances
Though these are distinct dimensions but are heavily interrelated. The financial
picture of a business/industry often guides the operational decisions and
operational decisions are often based upon the business strategies that would
not have otherwise been seen.

1.1.1: Dimensions : A broader View

Business dimensions are the invisible forces that not only push a business to go
on but also keep it bound within the feasibility constraints. As discussed above
the factors i.e. Strategy, Operations, marketing and finances play decisive role in
determining the prospects of a business. These factors however depend heavily
on the market and the external environment in which a market operates and
adjust the boundaries accordingly.

 Strategy: It is the first step to any business and represents the overall
design or the blue print on which the business is established. It further
describes the course of action a business aims or intends to follow to
achieve the desired results.

 Operations: This parameter represents the implementation of various

strategies of the business and their efficiencies. The step follows the
strategy and reflects the overall working of the organisation.

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  Marketing: Marketing refers to the tools used to deliver the message of a
brand. Marketing will continually change and evolve, just as the products
and services offered will continue to change and evolve. Marketing will be
directly and specifically geared towards sectors of the target audience, all
while supporting the core values of a brand. Marketing is vast and wide. It
can be heartfelt, funny, or serious.

 Finances: Finance not only decides upon the scale of an industry or a

business in a particular industry but is the driving factor for the overall
business. A perfect strategy with a perfectly implemented operation is still
useless if it is not backed up by a strong financial base of support.

Various factors often tend to change these dimensions thus putting an

impounding impact on the business environment for a particular industry.
Nearly same effects have been seen in the furniture industry with the growth
of modular culture in Indian furniture market. Not only that such changes also
provided an ideal environment for the growth and nourishment of
OEM(Original Equipment Manufacturer) concept in the furniture industry
which was previously done by “On The Site” manufacturing work.

1.1.2: Dimensions : A Changing frame of reference

The most popular forms of Indian furniture includes kitchen, bedroom and
the office furniture out of which the popular items of furniture export are a
variety of cabinets, cupboards, beds, chairs, tables and partitions. According to
various studies carried out, the common results that come into the picture is that
with the increase in the standard of living of the people, the demand for the
furniture has gone up since 2000. The age structure of India's population is also
favourable. A staggering 44 per cent of the population is in the under-19 age
bracket, with their literacy rate pegged at over 75 per cent. Going forward, the

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working population (19-60 year olds) is expected to increase from 485 million to
615 million by 2010 with an educational base of 21 million professionals and 90
million graduates/post graduates. The household mix is also changing fast. By
2006-07, the consuming class will form around 46 per cent of the total
households as compared to around 17 per cent during 1995-96, according to an
NCAER report. The combination of these fundamental factors of age and
household mix, led to the emergence of a huge consumer base for various
products and services. With the entire economy booming, the size of the market
for the furniture has gone up along with which the size and the boundaries of
the furniture industry in India has expanded to brink thus highlighting the need
of reshuffling the strategy, revamping the marketing opportunities, updating the
operational ways and thus forecasting the need of financial base for the same.
The change in the taste for furniture in the mind of the customer and their lean
towards the modular furniture/ modular home concept has challenged the
traditional hard wood furniture and carpentry practice at the same has increased
the size of the market and the figures of the sales considerably. Introduction and
adaptation of the modular home culture has not only made the furniture
industry more organised and efficient, but has also opened the windows for
imports and exports of furniture to and from the national and international
markets. Such restructure in the dimensions of the furniture industry has given
a “Green” for the private players to enter the view and organise the entire
market by floating standardised furniture products thus further shaking the
traditional unorganised sector i.e. the furniture sector.

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1.2: Relevance of the study
The study is relevant from both application perspective of management as
well as from academic point of view. The furniture market is experiencing a steep
growth in competition among different brands challenging the traditional
carpentry . consumers, under such circumstances are greatly driven by the
overall marketing and growth in the market for a particular brand or a product.
Literature points out that active analysis of market growth and growth rates
based on the figures of the Change in dimensions of the industry can have an
overwhelming effect on the entire industry in the long run.
This study will help the marketers identify the dimensions of market growth
which are affected by various kinds of factors and business strategies of leading
furniture manufacturing brands. This knowledge might be useful for marketers
in judiciously implementing marketing plans, especially Sales Promotions, both
in the long as well as short term perspective.
For academicians, the study will give more insight into the dimensions of
Furniture Industry and its chemistry with marketing mix, growth rate of the
market and its overall impact on the industry. It will help to get an over view of
how an unorganised market is influenced by changes in the marketing
environment and introduction of organised firm policies, dealers and customers
playing in a market.

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1.3: Research Problem
a) Are there any effects of the newly introduced modular culture in the
existing traditional furniture industry involving on-site carpentry?

b) How has the market responded to the introduction of standardised

furniture?
c) How has the size of the market been affected by the modular culture? Has
it grown or has there been a downfall?

d) How have the dimensions of the furniture market and industry changed
with the evolution of the furniture from carpentry based to standardised
modular form?

These are the major problems addressed in the study. The research problem
can be summarised as a study of the differential effect of the modular furniture
and the changing choice of the customer on the dimensions of the industry i.e.
the firm strategies, the operations, the finances and the marketing of the various
players in the industry. The paper would conduct on study to statistically depict
the change in the factors mentioned above.

1.4: Objectives
The study was an attempt to find out the effect of various effects of the
changing external environment and product choice . The product categories
under study were mainly the Solid Wood Furniture and the Standardised
Modular Furniture. The study was carried out by comparing the various aspects
of quality, price, marketing strategies, and policies of the wooden furniture
brands and the Original Equipment Manufacturers (OEM). The brands which
were mainly considered here are Godrej Interio, Hettich, Hafele, Blum, Dorma,

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Nolte and Poggen Pohl. Out of the above mentioned brands, Godrej, Nolte and
Poggen Pohl are considered as the primary or the premium brands while Hettich,
Hafele, Blum and Dorma are considered to be the secondary and more
dependant on the Local OEMs to manufacture their furniture . The study
revolves more of around the Primary Brands which are the steel giants and are
also involved in the furniture markets beyond the geographical boundaries of
the nation. The study had the following specific objectives:

a) Are there any effects of the newly introduced modular culture in the
existing traditional furniture industry involving on-site carpentry?

b) How has the market responded to the introduction of standardised

furniture?
c) How has the size of the market been affected by the modular culture? Has
it grown or has there been a downfall?

d) How have the dimensions of the furniture market and industry changed
with the evolution of the furniture from carpentry based to standardised
modular form?

1.4.1: Study Hypothesis

Based on the review of literature and past studies, the following hypotheses
have been formulated to successfully formulating a mathematical expression to
relate the changing dimensions of furniture industry.

Hypothesis-I: Dimensions of an industry or a business can never be zero.

Each dimension has a significant effect on the business.

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 Hypothesis-II: Dimensions of an Industry of a particular product/service
does not depend on a particular factor solely.

Hypothesis III: Marketing strategies of the brands considered during the

study remains constant during the interval of study.

Hypothesis IV: The entire study holds good for the furniture market in
Gujrat, Maharashtra, Madhya Pradesh and Goa.

1.5: Methods of study

The study conducted is based mainly on methods of statistical data collection

and analysis techniques. The data considered here was collected through a set
of questionnaires which is a primary method of data collection. The
questionnaires were used to conduct a sample survey from a set of forty two
dealers. They were provided with the questionnaires, their responses were
recorded and the data collected was analysed, summarised and organised for
any further use.
The questionnaires consisted of four sections i.e. Section A, Section B, Section
C and Section D. The framing of the entire set of questions was done to
formulate a common relationship between the furniture industry and its
relationship between the dimensions of the industry i.e. strategy, Operations,
marketing and finance. The questionnaires consisted of questions regarding the
marketing strategies of furniture manufacturing brands. The first section of the
questionnaires prepared i.e. “Section A” consisted of questions aiming to find
out the basics of the particular dealer, average sales from the counter, number
of customers the counter deals on a regular basis and seeks information about
the average preference of customers from the primary and secondary furniture
brands and the types of customers. The questions from this section are more of
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objective in nature. The second section i.e. “Section B” focuses more on the
marketing strategies and seeks to find out the effectiveness of various branding
strategies with respect to ATL and BTL. It seeks the information about the
dependence of various primary and secondary brands on various marketing
strategies . This section also seeks the relationship that the leading furniture
manufacturing brands maintain with their respective dealers and their role in
determining the brand equity of a particular brand in a certain market scenario.
The third Section or “Section C” demand the response of the respondent on his
personal views and mainly consists of subjective questions.

The statistical tool of “t test” was used to measure the effect of brand
awareness, brand loyalty, Customer perceptions and perceived quality. ANOVA
tests were done to find out the magnitude of the changes in the dimensions of
the furniture industry . Correlations, Reliability analysis and Factor analysis were
also performed. Since the Factor analysis results were not statistically
significant, the results were not reported in the study. Summary statistics were
computed and reported in the study. Often businesses have the requirement of
predicting certain factors, such as revenue, growth rate, costs, etc. These are
usually used in case of new product launch, change in strategy, investment
needs, expansion projects, etc. In such cases, predictive mathematical
models are used that analyse historical data and use probability distribution as
input for predicting the future values. Regression analysis is one of the most
commonly used techniques for predictive models.

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 CHAPTER - 2

Literature Review

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 CHAPTER -2
Literature Review

2.1: Conceptual Study

Changing dimensions of business have been a cause of concern for the market
researchers. A key decision is the choice between traditional “On-site” carpentry
or standardised branded products. In order to meet the challenges faced by
competitors marketer and researcher have identified the role of business
dimensions In an industry. This chapter reviews concepts and theories by
researchers that are highly related to the area of this study. This chapter provides
a critical analysis of the views and insights of various researchers on the subject
area. The chapter starts by explaining the basics of the study, being Dimensions
of Furniture industry in India and then further reviews different factors that
affect these dimensions .
Some of the world’s most trusted furniture brands have been around for over
150 years. These brands that have won consumer hearts for over a hundred
years (and have yielded rich profits for their parent companies) including Godrej,
Poggen Pohl, Nolte etc. In India too, brands such as Godrej, Tata and Cello are
over a century old. However these companies have been struggling to tackle the
age old mastery in the solid wood carpentry that has been dominating the
furniture market since time immemorial.
The furniture industry had been dominated by an unprofessional and
customised industry of solid wood carpentry which had been carried out on an
“On the site” manufacturing . The industry has been unorganised and non-
standardised until the modular furniture culture grabbed popularity among the
customers as the taste of customers changed over the period of time.

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2.2: Empirical Evidences
Many evidences have been provided through extensive experimentation and
research works for conceptualising various dimensions of the concept of
“Measuring the Change in Dimensions of Furniture Industry in India” which
consists of work from within and across the world.

2.2.1: Indian Study

Studies on demand, supply and price aspects of furniture are very few in India.
An assessment of the growing stock of wood in the dumps of Kerala and annual
availability was made for the year 1970 by Chandrasekharan. A rough estimate
of the demand for pulpwood in Kerala and supply from forests for the year 1982
was made by Arunakaran. The pioneering work on the wood economy of Kerala
covering sector-wise demand for furniture and furniture and supply from forests
as well as non-forest sources has been carried out for the reference year 1987-
88 by the author3 and published as 'demand and supply of wood in Kerala and
their future trends'. In the above
1- Chandrasekharan, C. (1973). op.cit.
2- Karunakaran, C. K. (1982). Demand versus supply of important raw
materials from forests in Kerala State (Draft). Kerala Forest Department,
Thiruvananthapuram.
3- Krishnankutty, C. N. (1990). Demand and supply of wood in Kerala and
their future trends. KFRI Research Report 67, Kerala Forest Research
Instutute, Peechi.

In above study, the demand for construction furniture, industrial wood and
fuel by different sectors in Kerala was estimated and the various sources of
supply were identified. There are also some studies which had been done during
the last few years in India. Examples are, availability of plywood logs from forests,
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household fuelwood consumption and its variation among villages located in
different geographical regions, rural energy and use-pattern in Southern demand
and supply of rubberwood in 1ndia7. Studies on demand and supply of wood in
other states in India reported in the literature are very few. The wood-balance
study conducted by the conducted by the West Bengal Forest artemins one
among them. Most of these studies dealt with demand and supply of wood,
which include industrial wood and fuel, in a particular year.

i) Kerala Forest Research Institute (1977). Availability of wood raw

material for plywood industry (Kerala - Karnataka Region). KFRI
Research Report

ii) Kerala Forest Research Institute (1978). Availability of wood raw

material for plywood industry (North-Eastern Region). KFRI Research

iii) Thampi, K. B. (1983). Pattern of furniture consumption in rural

Kerala : A study of selected villages. M.Phi1. Dissertation. Centre for
Development Studies, Thiruvananthapuram.

Southern Kerala. Government of Kerala, Thiruvananthapuram. Haridasan, V.

and Sreenivasan, K. G. (1985). Rubberwood: A study of supply and demand in
India. Rubber Board Bulletin, 20(4), 19-21. West Bengal Forest Department
(1987). Wood balance study : West Bengal. Office of the Chief Conservator of
Forests, Calcutta.

There are some studies on furniture prices. In a study by Krishnan Kuttygal.,

furniture prices up to the year 1981-82 were analysed for certain furnitures in
Kerala. Furniture price movements in different periods in Kerala were examined
in another study by Krishnan Kuttygal updating the data till 1984-85. There are
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some studies on furniture prices in other states in India. They primarily dealt
with price variation between different size classes or short-term fluctuation of
firewood prices12. Another study by Sagar and Sahendrae a mined the inter-
market price variation of sal furniture in Orissa and projected the prices using
regression model based on 10 years annual data.

2.2.2: International Study

Most of the studies in this area have been done abroad. The relevant studies
are grouped into studies on (i) furniture demand, supply and market and (ii)
furniture price and forecasting, and reviewed in the following two sub-sections.

A large number of studies have been done abroad on this topic. McKillop et
estimated demand function for plywood, taking quantity of plywood demanded
as regress and number of housing started, industrial production index, hourly
wage rate of carpenters, plywood and building board prices lagged by one year
as regressors in United States. In an econometric study for US hardwood
furniture, Luppoldls estimated the model taking the quantity demanded as a
function of the lagged rates of interest, a time trend, lagged prices of hardwood
furniture, wooden furniture and hardboard and lagged wage rates in the
furniture industry, using data for the period from 1960 to 1979. Adams and lack
well estimated US furniture and plywood demand taking the quantity demanded
in construction as a function of total US housing started and the ratio of past
plywood prices to past furniture prices, using data for the period from 1949 to
1969.
A long-term domestic demand function for Bangladesh was estimated by
McKillop and sarkar17 with quantity of furniture demanded as a function of real
price of furniture based furniture, population and a time trend, using annual

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data from 1960 to 1982 and predicted the demand for furniture to the year
2025.

1. Mckillop, W. L. M., Stuart, T. W. and Geissles, P. J. (1980). Competition

between wood products and substitute structural products: An
econometric analysis. For. Sci., 26(1): 134-148.

2. lS Luppold, W. (1984). An econometric study of the U.S. hardwood

furniture market. For. Sci., 30(4): 1027-1038.

3. Adams, F. G. and Blackwell, J. (1973). An econometric model of the US

forest products industry. For. Sci., 19(1): 82-96.

4. McKillop, W. and Sarkar, A. (1992). Normative supply modelling and forest

policy analysis in a developing economy. J. of world forest resource
management.

In a global study, Buongiorno estimated income and price elasticities of

demand for sawnwood and furniture panels, using data from 1963 to 1973 from
43 countries in a combined cross sectional time series analysis.

Japanese demand for US and Canadian furniture using quarterly data for the
period from1950 to 1970. Grebere estimated an econometric model to analyse
furniture supply in Virginia using inventory data from the U.S. Forest Service. The
long-term supply response of the regulated forest developed by Clawson was
applied by Hyde Pacific North-West region of the United States. Hyde estimated
long-run supply curves based upon the selection of a management regime that
maximised the present net worth of stumpage returns. Greber and developed a
furniture market model. They estimated product demand functions for
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pulpwood, hardwood saw - logs and softwood saw - logs, using market data for
the period from 1960 to 1979. Hultkrantz and Bronsson made an econometric
study on the supply of roundwood from private forest lands in Sweden, using
data from 1961 to 1984. Mori investigated the supply and demand relationship,
using time series data relating to the Japanese furniture market for the period
from 1960 to 1979. Chou and Buongiorno estimated own price and cross-price
elasticities of US demand for imported plywood, using monthly imports for the
period from 1974 to 1979. Brannlund et presented an econometric analysis of
the sawn furniture and pulpwood market in Sweden based on time-series data,
covering the period from 1953 to 1981. Other works done on the same field is
as follows.

1. Adams, D. M. and Haynes, R. W. (1980). The 1980 softwood furniture

assessment market model: Structure, projections and policy simulations.
For. Sci. Monograph, 22:64p.

2. Huang, F. M. and Buongiorno, J. (1986). Market value of furniture when

some
offerings are not sold: Implications for appraisal and demand analysis. For.
Sci., 32(4):845-854.

3. Frazier, G. D. (1967). The relationship between Forest Service furniture

sales behavior and the structure of the Californian pine furniture industry.
Ph.D. Thesis, Yale Univ., New Haven, Conn.

4. Adams, D. M. and Haynes, R. W. (1989). A model of national forest

furniture
supply and stumpage markets in the Western United States. For. Sci., 35(2):
40 1-424.
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5. Barnett, H. J. and Morse, C. (1963). op. cit.

6. Nomura, I. and Yikutake, K. (1981). op. cit.

7. Brazee, R. and Mendelsohn, R. (1988). Furniture harvesting with
fluctuating
prices. For. Sci., 34(2): 359-372.

8. Hardie, L. W., Daberkow, J. N. and McConnell, K. E. (1984). A furniture

harvesting model with variable rotation lengths. For. Sci., 30(2): 5 11-523.

9. Chang, S. J. (1981). Determination of the optimal growing stock and cutting

Cycle for an uneven-aged stand. For. Sci., 27(4): 739-744.

10. Clements, S. E., Leuschner, W. A., Hoganson, H. and Wisdom, H. W. (1988).

11.A local roundwood supply and price assessment model. Can.J.For.Res.,

8:1563-1569.

12. Holland, I. I. (1960). An explanation of changing furniture consumption

and
Prices. For. Sci., 6(1): 171-192.

13.Box, G. E. P. and Jenkins, G. M. (1976). Time Series Analysis, Forecasting

and Control. (2nd ed.) San Francisco: Holden-Day.

14. Cheng, C. C. and Jen, J. A. (1980). Studies on the fluctuation and

prediction of furniture prices in Taiwan. Taiwan Forestry Research Institute

26 | P a g e
 Bulletin 338. Taipei, Taiwan.

15. Oliveira, R. A., Buongiorno, J. and Kmiotek, A. M. (1977). Time series

forecasting models of furniture cash, futures and basis prices. For. Sci.,
23(2) -268-280.

2.2.3: A few more Quotes

 Han, et al. (2009) examine the direction of change in the global furniture
trade by looking at the Revealed Comparative Advantage (RCA)‘ 21 of
selected countries. Almost all the middle to low-income countries
exhibited an increasing RCA trend. In contrast, the downward trend was
most marked in nations with high-income except for Canada. With regard
to individual performance, Italy, Poland, Malaysia, Indonesia, and Vietnam
showed an extremely strong comparative advantage; China and Canada
displayed a strong comparative advantage; Germany a moderate
comparative advantage; and USA lost its competitive edge with global
producers, exhibiting an overall disadvantage over the period. Han, et al.
(2009) conclude that the global market which was once 80 percent
dominated by the high income countries, is now dwindling to 50 percent,
and significantly replaced by the medium and low income countries. High-
income countries such as the USA, Italy, Germany, and Canada showed a
declining trend in market share, while some medium- and lower-income
countries have emerged as potentially significant new sources of furniture
exports to the international market. Among them, China has exhibited an
impressive expansion in exports. The figure 2.1 exhibits the above
arguments to the par.

27 | P a g e
 Table 2-1
(Four Clusters of Furniture Industry Across the W0rld,Kapilnski and Readman,2005)

 In summary, the current trend of global trade in furniture is characterised

as increasing penetration by developing countries, and decreasing and
converging unit prices. The trend toward a common and falling global
price is due to either falling barriers to entry and new entrants, or
increasing efficiency and falling costs, or both (Kaplinsky, et al., 2002).
28 | P a g e
 Another important development in the global furniture trade is the rise of
the Chinese furniture industry. Buoyed by a strong domestic economy and
construction sector along with a booming export business, furniture
manufacturing has grown rapidly - with a doubling of production in the
second half of the 1990s, and subsequent double-digit annual growth
(Robb & Xie, 2003). Today, as in other low-tech industries such as clothing
and footwear, China is currently the world‘s biggest exporter. As Drayse
(2010) observes:

“The key to rising furniture imports is the explosive growth of a Chinese

furniture industry combining rock-bottom wages (between 50 and 75 cents per
hour) with sophisticated technology in massive, state of-the-art factories.
Furniture ‗mega-plants‘ employ thousands of workers who live in company-
owned dormitories. Dynamic furniture manufacturing agglomerations have
emerged in coastal China, based on a convergence of Chinese labour and foreign
capital. The shift of Taiwanese furniture capital and knowhow across the strait has
been especially important. (p. 9)”

RCA is an index that compares the export share of a given commodity or sector
in a country with the export share of that commodity or sector in the world
market. The country is considered to be specialised in a sector if the RCA is above
1. If RCA >2.5, it shows that the country is extremely strong comparative
advantage; 1.25<RCA<2.5 means a strong comparative advantage; 0.8<RCA<1.25
means a moderate comparative advantage; RCA<0.8 means a weak comparative
advantage; and RCA<0 means a comparative disadvantage Han, et al. (2009).
Figure 2.2 depicts the above discussion.

29 | P a g e
 Table 2-2
(RCA of wooden furniture for few countries ,Han.et al,2009)

 Maskell, Eskelinen, Hannibalsson, Malmberg & Vatne (1998) describe the

furniture value chain as an industrial system which ranges from the
transformation of the raw material (timber, metal, plastic, rattan, etc) and
semi-finished products (boards, etc) to final products (bed, chair, etc.), and
still further to the marketing, sales and distribution of the products to
consumers. Its basic inputs – moderately skilled workforce, raw materials
and machinery – are generally accessible anywhere and to anybody.

 According to Gereffi (1999), buyer-driven commodities commonly involve

large retails, markets, with branded manufacturers playing the pivotal role
in setting up decentralised production networks in a variety of exporting
countries. What is interesting about the buyer-driven chain is that their
profits are derived not from scale, volume, and technological advances as

30 | P a g e
 in producer-driven chains, but rather from the unique combination of
high-value research, design, sales, marketing, and financial services that
allow the retailers, designers, and marketers to act as strategic brokers in
linking overseas factories and traders with evolving product niches in their
main consumer markets.

 Scott (2006) asserts that one of the noteworthy features of the modern
economy is the emergence of many different kinds of low-technology, and
labour-intensive industries as engines of growth. Among these sectors are
the furniture, clothing and footwear industries. These industries are often
marked by low wages, unskilled workers, and sweatshop conditions.
However, they provide employment opportunities and target fashion-
oriented segments produced by other sectors. Based on a survey of 1,234
small firms and micro firms in the Netherlands, Jong and Marsili (2006)
propose a more diverse pattern of innovation in small firms than in
Pavitt‘s taxonomy. Their results indicate that the innovativeness of all
supplier-dominated firms are low in all dimensions, namely in terms of
input (financial, time and employment), formal planning and
management attitude. Innovation mainly consists of process innovation,
and is essentially a response to proposals from suppliers. In the same vein,
Kautonen (1996) asserts that for supplier-dominated sectors like the
furniture industry, the process of innovation is primarily a process of
diffusion of best-practice capital goods and of innovative intermediate
inputs, while in-house R&D expenditures and other endogenously
generated opportunities are rather limited.

31 | P a g e
 According to Malerba & Orsenigo (1997), the differences in the structure
of innovative activities may be related to a fundamental distinction
between Schumpeter Mark I and Schumpeter Mark II technologies. The
pattern of innovation activity for Schumpeter Mark I is characterised by
‗creative destruction‘ with technological ease of entry and a major role
played by entrepreneurs and new firms in innovative activities; whereas
Schumpeter Mark II suggests that the pattern of innovative activities is
characterised by ‗creative accumulation‘ with the prevalence of large
established firms and the presence of relevant barriers to entry for new
innovators. In the case of the furniture industry, a cross-country
comparison of the Schumpeterian patterns of innovation by Malerba &
Orsenigo (1997) on Germany, France, the UK, Italy, Japan and the USA
showed that the furniture industry is consistently in the Schumpeter Mark
I camp. In other words, the patterns of innovative activity in the furniture
industry Pavitt‘s (1984) pioneering work suggests that the taxonomy of
sectoral patterns of technical change can be addressed in three categories,
namely supplier dominated, production intensive (scale intensive and
specialised suppliers), and science-based. These different trajectories can
in turn be explained by sectoral differences in terms of three
characteristics, namely sources of technology, users‘ needs, and the
means of appropriating benefits. The wood sector, together with textiles,
lumber, paper, mill products, printing and publishing, and construction are
classified as supplier dominated sectors. Most innovation comes from the
suppliers of equipment and materials, although in some cases large
customers and government-financed research and extension services also
make a contribution. A relatively high proportion of the innovative
activities in these sectors are directly related to process innovation.
According to Vega-Jurado, Gutiérrez-Gracia & Fernández-de-Lucio (2009),

32 | P a g e
 technological knowledge in supplier dominated sectors is mainly
embodied in the machinery, equipment, and capital assets 81

 Ratnasingam (2004) views the value in furniture as a matter of perception

as it is sold based on perceived value, rather than actual value. This
suggests that the creation of value-added furniture is not about using high
quality materials or state-of-the-art technologies, but rather it is about
expressing a lifestyle in a creative and innovative manner. The artistic part
of the piece of furniture drives its value, while the scientific part assists in
the consistent production of the piece.

 A comprehensive overview of the growing literature on regional clustering

competitive advantage, which spans over the development of cluster

concept to innovation systems, has been provided by Gupta &
Subramanian (2008). Their literature on the sequential development of
Grand Rapids office furniture cluster in the USA suggest that there are
basically three streams of spatial agglomeration literature, namely the
economics of geography, the linkages of diamond, and the innovation
systems. The economics of geography underlines the gains from co-
location, the linkages of diamond emphasises the gains from mutually
reinforcing cluster of linkages, and the innovation systems looks at the
networking relationships that generate innovation.

 Mytelka & Farinelli (2000) claim that the innovation systems approaches
have broken ranks with the traditional view of innovation as a process of
radical change at the frontier of an industry. Innovation systems
approaches recognise that innovation extends beyond formal R&D
activities to include continuous improvement in product design and
quality, changes in organisation and management routines, creative
33 | P a g e
 marketing and modifications to production process that bring costs down,
increase efficiency and ensure environmental sustainability. It is important
to note that to emphasise innovation in this sense is not to deny the role
that R&D can play in generating new knowledge. Rather the point is to
avoid overemphasis on R&D and to encourage policymakers to take a
broader perspective on the opportunities for learning and innovation in
SMEs and the so-called traditional industries than they have done in the
past.

34 | P a g e
 CHAPTER - 3

Industry and Product Profile

35 | P a g e
 CHAPTER -3
Industry and Product Profile

3.1: Concerned Industry Scenario

Indian furniture industry is considered as a non organised sector with
handicraft production making about 85% of the furniture production in India.
The Furniture sector makes only a marginal contribution to the GDP representing
just a small percentage. In the year 2000, India ranked 48th among the furniture
exporters and 49th among the importers. During 2005-2006 data for industrial
production index, 14 of the 17 industry group showed growth while the furniture
and wood product sector had a negative growth of 19.7%. Today in india, wood
products and furniture make 27.01% of the total manufacturing sector. The
visible furniture consumption in India is estimated to be 15 USD per person per
year and is expected to reach a whooping 76 USD by 2029.

It has been estimated that the world furniture market is worth INR 200000 Cr.
And it grew by 20% in just past three years. Indian demand for the living room
furniture has enjoyed steady growth over the years. Indian Furniture industry is
highly unorganised sector yet manages an annual turn over of INR 3,500 Crore
while the market for wooden furniture solely is responsible for a turnover of INR
600 Crore.

Indian Furniture industry is dominated by unorganised sectors which

constitutes of the 90% of the total Indian furniture industry, The organised sector
is just about 10% and has grown by 36% since 2010.

The market is expected to expand at a CAGR of 12.91% during the forecast

period of 2016-2023. India furniture market growth is driven by various
attributes such as rising trend for modular and state of the art furniture among
36 | P a g e
the population living in urban cities, growing urbanization in Indian states,
rising demand for durable and hybrid seating furniture. Moreover, the rising
growth of wood industry in India further compensates the price of furniture.
On the back of these factors the furniture industry is expected to propel in
India. Further, the rising trend of online and mobile shopping in India is
envisioned to bolster the demand for furniture through online channels.

Various furniture companies such as Pepperfry, Urban ladder and others are
creating huge demand from these online channels. Apart from this, the
demand for low cost plastic furniture is also increasing in commercial sector.
The ease of business doing policies in India gives rise to new businesses across
the country. In addition, these increasing numbers of small and medium
businesses further boost the demand for low cost plastic furniture products.
This factor is believed to foster the growth of India furniture market over the
forecast period.

Rapid urbanization in India and growing demand for modular and compact
furniture is expected to positively impact the growth of furniture market in
near future. Further, growing urbanization in Indian states such as Gujarat,
Maharashtra, Tamil Nadu and others is supporting the culture of housing
societies. Moreover, the corporate sector in India is uplifting on the back of
ease of doing business reforms introduced by the government. These factors
are believed to bolster the growth of India furniture market.

Further, growth of real estate sector in India is anticipated to boost the

demand for modular furniture in urban areas in India. Apart from this, rising
investment in retail sector by various national and international entities is
anticipated to foster the growth of furniture market in India. Moreover, the
technological advancements such as availability of high speed internet
37 | P a g e
 networks such as 4G and spiked absorption of smart gadgets is boosting the
e-retail sector in India. These advancements further provide ease to the
customers to buy furniture through online channels. In addition, the rising
number of smartphone users across the country and online shopping is
encouraging the furniture industry players to introduce their products through
online channels. The players such as Pepperfry, Urban ladder and others are
generating significant revenue through online platforms.

Apart from this, 100 percent FDI policy for townships and settlements
development project is attracting more foreign investors in the real estate
sector which increase the quality of residential apartments. Further, rising
demand for high-end and western style furniture is envisioned to bolster the
growth of India furniture market by the end of 2024.

3.1.1: Furniture Industry - Industry Structure

The global furniture market can be broadly categorised into four categories -
domestic furniture, office/corporate furniture, hotel furniture and furniture
parts. Globally, domestic furniture accounts for 65 per cent of the production
value, whilst corporate/office furniture represents 15 per cent, hotel furniture
15 per cent and furniture parts 5 per cent. According to a World Bank study, the
organised furniture industry is expected to grow by 20 per cent every year. A
large part of this growth is expected to come from the rapidly growing consumer
markets of Asia, implying significant potential for growth in the Indian furniture
sector. Figure 3.1 depicts the composition of global furniture market

38 | P a g e
 Figure 3-1
(Composition of Global Furniture Market, KPMG analysis for IBEF)

As of 2006, the Indian furniture market is estimated to be worth US$ 7,922

million. Of this, wooden furniture accounts for US$ 1,358 million. About 11 per
cent (US$ 152 million) of this (wooden furniture) is imported and imports are
growing at 50 to 60 per cent every year. India was the largest furniture importer
in the world in 2004-05, with a 17 per cent share in the furniture imports
worldwide. A total of 10, 476 importers shipped furniture to India during this
period, mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia,
Philippines and Japan.

39 | P a g e
 Figure 3-2
(Share of Organised/Unorganised segment in furniture Market, KPMG analysis for IBEF)

The furniture sector in India makes a marginal contribution to the Gross

Domestic Product (GDP), representing about 0.5 per cent of the total GDP. The
major part of this industry, approximately 85 per cent is in the unorganised
sector. The remaining 15 per cent comprises of large manufacturers, such as,
Godrej & Boyce Manufacturing Co. Ltd., BP Ergo, Featherlite, Haworth, Style Spa,
Yantra, Renaissance, Millennium Lifestyles, Durian, Kian, Tangent, ffurniture
Concepts, Furniturewala, Zuari, Truzo, N R Jasani & Company, V3 Engineers, PSL
Modular Furniture, etc. The range of indigenous furniture available in India,
includes both residential and contract system furniture. Manufacturers in India
usually use a three-tier selling and distribution structure, comprising of the

40 | P a g e
distributor, wholesaler and retailer. The market is mainly concentrated in A, B
and C category cities (the top 589 cities). A and B type cities together constitute
33 per cent of the total market. With a healthy economy and increased
household and institutional spending, the market is growing steadily.

3.1.2: The working and road ahead

Furniture manufacturing is driven by the designs chosen, the inputs which

come from in-house designers and market feedback. Manufacturers consider
several aspects related to the customer (demography, lifestyle, motivation and
aspiration, needs and preferences), raw material (type, quantity and availability)
and internal capability (expertise, quantity and availability of labour, production
process complexity and delivery time) for developing different designs, which in
turn, determine the furniture’s functionality, look and feel and value. Furniture
produced in India falls into two broad categories, depending on the end user;
domestic furniture meant for home use and commercial furniture meant for the
office and hospitality sectors. Domestic furniture represents almost two-thirds
of the total output. The key success factors for each category vary.
Manufacturers in the domestic sector typically try to differentiate on the basis
of design variety and price, while in the commercial space, having a strong and
reliable brand is important.

 IMPORTS: Furniture imports in India have been growing at nearly 64

percent CAGR, over the 5-year period from 2001 to 2006.A key driver is
the increasing demand for furniture, fuelled by the boom in housing and
commercial construction. Increasing income levels and influence of global
lifestyle European furniture manufacturing companies have been the first
entrants, with their premium products (mainly veneered) in India. They
were led by the K K Birla joint venture, Gautier, with Groupe Seribo of

41 | P a g e
 France. Furniture imports from other Asian countries have come in much
later. Barring a few, such as, Renaissance Home, Interior Espania, Pinnacle
Saporiti and Gautier, most of the imported furniture dealers sell their
products either under their own brand name or without any branding. In
recent times, import of cheaper furniture from South East Asian countries
has been increasing.

 DISTRIBUTION: Indian furniture companies operate both, through direct

selling in the market and distributors. Companies with a large local
customer base normally sell directly, without involving distributors. The
larger companies typically have their own commercial offices and
showrooms in all the larger cities in India. Many organisations prefer,
however, to operate via organised outlets. For projects of large volume,
companies typically sell directly to the customer - the primary customer is
often the ‘specifier’ (architects, builders or project managers) or building
owners/lessees who are responsible for fitting out buildings and offices.
Armed with the choice of local and imported products, these purchasers
exert significant influence on the sector.

3.1.3: State Policies and Future Mapping

Based on the growing demand for the furniture, Indian government has been
continuously trying to boom the sector as well as the traditional carpentry with
its various schemes and training programmes.

 In the past few years, more than 3000 woodworking business units in
the organized sector have been developed in India. And the numbers are
increasing every year.

42 | P a g e
  As per a study conducted by the World Bank, India’s organized furniture
industry will keep growing at 20% per annum till 2020. It was forecasted
that the online home décor market will grow at a CAGR of 50.42% in
revenue over the period 2015-20 whereas the Luxury Furniture Market
would grow at 4.1% CAGR in the same period. It is important to note here
that India is currently ranked at 14th position in the world furniture
market.

 Woodworking industry is easy to start and does not require high

investments. The woodworking business owner needs to set up a
manufacturing unit, buy tools and machinery and employ necessary
skilled staff to make the woodworking products. Also required are few
licenses and registrations depending on the number of employees hired
at the manufacturing unit, the size of the business and the type of
business.

 Programmes like RPL 4 has been a great step towards the self sufficiency
of traditional carpenters that not only recognises the pre acquired
knowledge but also provides them with certification from the
government. The initiative from the private sector in collaboration with
Skill India Program and Department of Woodwork India, has provided
training to the carpenters to sharpen up their skill and a certificate based
on an online test . It also provides them with an accidental insurance of
up to 1 Lakh and a kit.

64%

3.2: Furniture Products: An Overview

As with the global market, home furniture is the largest segment in the Indian
furniture market, accounting for about 65 per cent of furniture sales. This is
followed by, the office furniture segment with a 20 per cent share and the
contract segment, accounting for the remaining 15 per cent.

43 | P a g e
 Home furniture:
Home furniture in India is available in a wide range, to cater to different
customer needs. A typical middle class urban Indian home has five rooms
(including kitchen and bathroom). About 25 per cent of the urban population
live in homes with five rooms or more, while 45 per cent live in houses with
three rooms or less. About 16 per cent is estimated to live in single-room
homes. The type of furniture used depends on the customer’s affluence and
taste. The rich and upper middle class is typically very attentive to design and
quality, so price is rarely a determining factor. In general, European style
furniture is only found in homes of the urban upper class. Demand for
furniture of international standards is limited to the larger cities. It is also
estimated that the wealthier classes do not change furniture very frequently;
the average life of a piece of furniture is about 20 years and some craftsmen’s
pieces are used for as long as 50-70 years. Colonial furniture is still very
common in India, but the trend seems to be declining slowly.

 Office Furniture
The office furniture segment caters to the commercial and office space. This
segment has witnessed rapid growth in recent years, in line with the growth
in the Indian economy and subsequent demand for office space. The thrust
on real estate and office construction is expected to sustain in the near future,
indicating continued growth for the furniture industry.

The furniture industry is not very organised as have already been

mentioned above. This entire system is not just limited to manufacturing of
room furniture but follows a far more complicated hierarchy. Figure 3.3
provides a brief idea of the entire process.

44 | P a g e
 Figure 3-3
(Structure of Indian furniture Market, Indian Small Industry: An outlook,2009)

The product profile of the Indian furniture industry is not limited to a

particular art form or to a particular style. The age old industry, though
unorganised to a great extent has been an integral part of Indian home making.
Furnitures have been a symbol of modern lifestyle and has been expanding in
terms of the style and forms with the introduction of modular culture and
western furniture.

45 | P a g e
 CHAPTER - 4

Data Analysis and Interpretation

46 | P a g e
 CHAPTER - 4
Data Analysis and Interpretation

4.1: Demographic Analysis

In order to collect the set of primary data to establish a set of relationship
between the furniture industry and its dimensions and the effects of changing
dimensions on the industry, a market survey was conducted which included
authorised dealers of furniture, OEMs and the traders across Mumbai and Pune.
A total of forty two dealers and a distributor were visited in due course of data
collection and organisation. The set of primary data was collected using
questionnaires which were put forward to the dealers and their responses were
recorded.

4.1.1: Location Details

Of all the dealers, 35 dealers visited were from Mumbai, 12 dealers from Pune
and 5 dealers were from Nasik. The location of the dealers visited for the purpose
of sample survey, market research and data collection have been depicted
bellow in the figure 4-1.

Numer of Dealers Considered for Data Collection Across Different cities

Nasik

Pune

Mumbai

0 10 20 30 40
Mumbai Pune Nasik
Numer of Dealers Considered for
Data Collection Across Different 35 12 5
cities

Figure: 4-1
(Number of dealers across different cities selected for data collection)

47 | P a g e
 When it comes to the furniture, one of the most important players in the
industry come in form of OEM or the Original Equipment Manufacturers. Of all
the dealers, 25 OEMs visited were from Mumbai, 6 OEMs from Pune and 2 OEMs
were from Nasik. The location of the OEMs visited for the purpose of sample
survey, market research and data collection have been depicted bellow in the
figure 4-2.

Numer of OEMs Considered for Data Collection Across Different cities

Nasik

Pune

Mumbai

0 5 10 15 20 25 30
Mumbai Pune Nasik
Numer of OEMs Considered for
Data Collection Across Different 25 6 2
cities

Figure: 4-2
(Number of OEMs across different cities selected for data collection)

4.1.2: Sales Details

According to the data provided the total number of dealers across these three
cities turns up to be around fifty hundred; however the dealers were selected at
random and visited for the purpose of data collection i.e. sample survey or
market research. The dealers were selected across Mumbai, Pune and Nasik on
the basis of average lifting of stock timber and the furniture fitting items i.e.
average sales in these markets. These three cities make the largest market for
furniture and furniture fittings in the western belt with average lifting of 22 Cr. a

48 | P a g e
month. The average lifting of stock for these three cities has been depicted in
figure 4-2.

Average lifting of stock for the markets considered in

"Crores"
14
12
10
8
6
4
2
0
Mumbai Pune Nasik
Average lifting of stock for the
markets considered in 11.6 8 4
"Crores"

Figure: 4-2

(Average monthly lifting of stock across different cities selected for data collection)

4.1.3: Dealership Details

It was found that out of the total sample size of fifty two dealers, majority of
them had dealership of more than one brand. Further it was found that the
dealers usually come across 15-20 customers on an average daily. Study
exhibited presence of over 12 furniture brands in the market, however only 4
premium brands, also known as the primary brands which include Godrej,
Pepperfry, Godrej Interio and Ikia dominate the market. The dealers considered
here were also found to have been dealing with either any one of modular
furniture or both modular and solid-wood furniture. The dealers considered here
further either deal with either any one or more than one of the above mentioned
companies. Figure 4-3 depicts a clear picture of the composition of the dealers
in terms of their respective dealings.

49 | P a g e
 Dealers dealing with both solid-wood furniture
and modular furniture of multiple brands

Solid Wood
Furniture Dealers

Modular
Modular Furniture Furniture
dealer, Multiple dealer for
Brands exclusive
brand

Figure: 4-3

(Composition of stock for the dealers of Furniture)

4.1.4: OEM Composition Details

It was found that out of the total sample size of 33 dealers, majority of them
had a dealing with more than one brand. Further it was found that the OEMs
usually come across 20-30 customers on an average every month. Study
exhibited presence of over 5 furniture fittings, more than 2 plywood and 5 other
addon brands in the market, however only 4 premium brands, also known as the
primary brands of furniture fittings which include , Hettich, Hafele, Blum and
Greenwood dominate the market. The OEM’s considered here were Dealt with

50 | P a g e
either one or more brands and do not deal with solid wood furniture. Figure 4-4
depicts a clear picture of the composition of the dealers in terms of their
respective dealings.

Composition of stock for OEMs

Single Brand, 7,
21%

Multiple Brands,
26, 79%

Multiple Brands Single Brand

Figure: 4-4

(Composition of stock for the OEMs of Furniture)

From the figure 4-4 it can be clearly seen that about 79% of the total OEMs deal
with the furniture fittings of multiple brands while rest of minimal amount of
OEMs deal with single brand for the fittings and addons.

4.1.5: Customer Preference Details (Dealer)

It was of the par importance to determine the kind of brand customers prefer
while purchasing a furniture or if they prefer the solid wood carpentry over the
modular furniture. With reference to the responses obtained against the
questionnaire put before the dealers, we found out that out of all 52 dealers, 37
dealers mentioned that customers prefer modular furniture, of which 25 prefer
primary brands over secondary brands or over solid wood works. The findings to

51 | P a g e
what customers prefer among primary and secondary brands have been
depicted in figure 4-3 bellow:-

Customer Preference of Furniture

25

20
25
15
15
10
12
5

0
Solid Wood Furniture Modular Furniture

Primary Brand Secondary Brand

Figure: 4-5

(Customer preference between Primary and Secondary Furniture brands)

As can be seen from figure, about 28.8% customers only go for solid wood
carpentry where as a whooping 72% customers like to go for modular furniture
of which 68% people prefer the primary furniture over secondary brands.

4.1.6: Customer Preferences

One question which constantly came into the screen during the study was
regarding the preference of customers. The four aspects determining what a
customer buys are mainly price, quality, ease of assembly, mobility and the
multiple site manufacturing. Figure 4-6 bellow depicts the weightage of the
above mentioned factors in determining the customer preferences.

52 | P a g e
 Factors Influencing Customer Preference

45
40
35
42 40
30 33
25 29
20 24 27 24
21 22
15 23
10
5
0
Price Quality Ease of assembly Mobility Multipile site
Manufacturing

Dealer's POV OEM POV

Figure: 4-6

(Factors Influencing Customer Preference)

The above figure clearly depicts the factors that drives the preference of the
customers where it clearly shows that maximum customers prefer the modular
furniture for its offer of ease of assembly and ability of multiple site manufacture
to its customers. The shifting trend in furniture preference is clearly visible in the
above data which shows that the bulk of customer mass prefers the modular
furniture for its ease of assembly and multiple site construction ability. The
relationship between the change in the lifestyle of the people on the Indian
furniture industry is visible from the above depiction. The demand difference is
clearly visible on the basis of ease of assembly and mobility of the furniture. On
one hand the customer’s look forward for mobile and maintenance free
furniture has driven a huge mass towards the modular furniture and away from
traditional solid wood carpentered furniture that offers neither a mobile
furniture nor a maintenance free furniture.

53 | P a g e
4.2: Descriptive Statistical Analysis
The questions put through and set of questionnaire before the dealers consulted
consisted of questions of every time from subjective to the objective types. The
questions framed were meant to extract information about various aspects of
the market and the furniture industry that is driven by the demands of market .
The questions also aimed at solving the purpose of the study i.e. relating the
outcome from the respondents to the figures and facts to relate and conclude
on the changes in the dimensions of the furniture market namely finance,
marketing, planning and operations. The findings from the study have been
studied bellow extensively.

4.2.1: Respondents Details

The study was carried out across three districts of Maharashtra market i.e.
markets of Mumbai, Pune and Nasik and reached 52 dealers and 33 Original
Equipment Manufacturers(OEMs) also knows as the home makers who became
the respondents for the questionnaire. The furniture markets of Mumbai, Pune
and Nasik were selected because these markets make up a bulk of entire sales
of the furniture industry in the Western Belt of India with an average sales figure
of 22 crores each month which is the 18% of total monthly sales of furniture
across India. The dealers varied widely from the ones with an average lifting of 5
lakhs to those with average lifting of 30 lakhs; from the ones dealing with
furniture since past few years to the oldest ones in the business since 32 years.
At the same time the OEMs varied from those with a single counter and average
business of 30lakhs to those of registered MNCs that manufacture about 1700
kitchens daily on a global basis. The dealers and MNCs’ were selected from the
sales documents that was provided by the company consisting of the list of 3000
dealers and about 640 OEMs across these three cities. The respondents however
were selected at random for sample survey.

54 | P a g e
 It was found that the average number of customers turning up in these
counters for modular furniture mostly ranges from 10-15 thus resulting in an
average of 15 customers to a counter every day. The study also led to the finding
that almost all the respondents consulted dealt with more than one modular
furniture brands .

4.2.2: Customer Preferences

The customers of furniture range from those building their own houses; also
known as the end users; to the contractors and the engineers planning for mega
projects like offices, societies and malls. The preferences of various customers
too vary greatly. Several information about the customer preferences including
the preferences among primary and secondary brands, the brands they prefer
among the primary and the secondary brands, the factors that influences their
buying behaviour and the factors that drive their brands preferences.

 To the questions meant to determine the preference of the customers

between modular furniture or solid wood carpentered furniture, it was
found that about 71% of the customers prefer the modular furniture while
only over 21% prefer the secondary brands as depicted in the figure 4-6.
People preferring the modular furniture prefer primary brands usually are
the end users who build their own houses and are not much concerned of
the price but want the assurance on product quality and mobility along
with an option of clean work site and multiple site manufacturing.

 One question which constantly came into the screen during the study was
regarding the preference of customers. The four aspects determining what
a customer buys are mainly price, quality, ease of assembly, mobility and
the multiple site manufacturing. Figure 4-6 above depicts the weightage of
the above mentioned factors in determining the customer preferences.
55 | P a g e
 The above figure clearly depicts the factors that drives the preference of
the customers where it clearly shows that maximum customers prefer the
modular furniture for its offer of ease of assembly and ability of multiple
site manufacture to its customers. The shifting trend in furniture
preference is clearly visible in the above data which shows that the bulk of
customer mass prefers the modular furniture for its ease of assembly and
multiple site construction ability. The relationship between the change in
the lifestyle of the people on the Indian furniture industry is visible from
the above depiction. The demand difference is clearly visible on the basis
of ease of assembly and mobility of the furniture. On one hand the
customer’s look forward for mobile and maintenance free furniture has
driven a huge mass towards the modular furniture and away from
traditional solid wood carpentered furniture that offers neither a mobile
furniture nor a maintenance free furniture.

 The study showed that four factors indeed are responsible for driving a
customer’s decisions while preferring furniture of a particular brand. It was
found that a customer’s decisions regarding purchasing the furniture of a
particular brand is influenced by factors like price, ease of assembly, ability
to multiple site work, quality and mobility of furniture. These factors have
differentiated effects on different kinds of customer. However from the
study it was found that ease of assembly and ability to facilitate multiple
site work leads where 62% of the total customer population go for the
product of the brand which provide modular furniture the customers think
is trustworthy as a solid work carpentered furniture. Figure 4-6 depicts the
clear image which further elaborates the fact that with 33.3%, the overall
population of the customers has shifted to a modular culture and looks for
a furniture solution that offers a range of customisation and the best
solution to their requirement, though a section of customers still sticks to
56 | P a g e
 the traditional carpentry that still is widely unorganised and indiscipline at
the same time is far away from providing a standardised range of furniture.
It is still dependant on the individual expertise of the carpenter.

4.2.3: Furniture Value Chain

The Indian furniture industry covers the entire gamut of activities, from
sourcing, manufacturing and distribution, to sales and after sales. In the Indian
context, players are actively engaged in each of these activities. Various types of
raw materials are used for furniture making in India. The key raw materials
include wood, metal and plastic, with bamboo and cane also being used in some
cases. Wood accounts for nearly 65 per cent of all furniture made in India. This
includes several types of indigenous wood, as well as imported wood. India
imports wood from various South East Asian countries such as Indonesia,
Malaysia and Myanmar. It also imports MDF (Medium Density Fibreboard)
boards.

Figure: 4-7

(Organised Sector Furniture Value Chain)

57 | P a g e
4.3: Inferential Statistical Analysis
The entire study was meant to obtain the data from various players in the
furniture industry and conclude if there has been any change in the furniture
industry in the past frame of time. We also had an objective to relate the overall
market conditions to the dimensions and their effects on the industry as a whole.
The inferences drawn are as follows.
 To the questions meant to determine the preference of the customers
between modular furniture or solid wood carpentered furniture, it was
found that about 71% of the customers prefer the modular furniture while
only over 21% prefer the secondary brands as depicted in the figure 4-6.
People preferring the modular furniture prefer primary brands usually are
the end users who build their own houses and are not much concerned of
the price but want the assurance on product quality and mobility along
with an option of clean work site and multiple site manufacturing.

 One question which constantly came into the screen during the study was
regarding the preference of customers. The four aspects determining what
a customer buys are mainly price, quality, ease of assembly, mobility and
the multiple site manufacturing. Figure 4-6 above depicts the weightage of
the above mentioned factors in determining the customer preferences.

 The above figure clearly depicts the factors that drives the preference of
the customers where it clearly shows that maximum customers prefer the
modular furniture for its offer of ease of assembly and ability of multiple
site manufacture to its customers. The shifting trend in furniture
preference is clearly visible in the above data which shows that the bulk of
customer mass prefers the modular furniture for its ease of assembly and
multiple site construction ability. The relationship between the change in
the lifestyle of the people on the Indian furniture industry is visible from
58 | P a g e
 the above depiction. The demand difference is clearly visible on the basis
of ease of assembly and mobility of the furniture. On one hand the
customer’s look forward for mobile and maintenance free furniture has
driven a huge mass towards the modular furniture and away from
traditional solid wood carpentered furniture that offers neither a mobile
furniture nor a maintenance free furniture.

 The study showed that four factors indeed are responsible for driving a
customer’s decisions while preferring furniture of a particular brand. It was
found that a customer’s decisions regarding purchasing the furniture of a
particular brand is influenced by factors like price, ease of assembly, ability
to multiple site work, quality and mobility of furniture. These factors have
differentiated effects on different kinds of customer. However from the
study it was found that ease of assembly and ability to facilitate multiple
site work leads where 62% of the total customer population go for the
product of the brand which provide modular furniture the customers think
is trustworthy as a solid work carpentered furniture. Figure 4-6 depicts the
clear image which further elaborates the fact that with 33.3%, the overall
population of the customers has shifted to a modular culture and looks for
a furniture solution that offers a range of customisation and the best
solution to their requirement, though a section of customers still sticks to
the traditional carpentry that still is widely unorganised and indiscipline at
the same time is far away from providing a standardised range of furniture.
It is still dependant on the individual expertise of the carpenter.

The entire set of data collected from the responses of the questionnaire has
been summed up bellow:-

59 | P a g e
 90%
79%
80%
66.67%
70%

60%

50%
Increase in market size
40%
Increase in sell of Furniture
30%

20%
16% 14.20%
10%

0%
Modular Furniture Solid Wood Furniture

Figure 4-8

(Growth in furniture market v/s Growth in Sales of the furniture{2017-2018})

Figure 4-8 suggests a contradicting theory which says that the demand for
furniture has gone up since 2017 on an overall basis. The overall market marked
in terms of the number of dealers, OEMS and customers has grown up by 16%
for the solid-wood furniture and that for the modular furniture has grown up by
a whooping 79%. However what contradicts the data is the figure of sales
recorded during the same period. The sales on the other hand has just increased
by a 14.20% in case of Solid-wood furniture but has grown by 66.7% when
modular furniture is considered. The figure bellow depicts the conclusion that
can be drawn from the above data when compared to the data of previous year.

60 | P a g e
 Furniture Industry Overview
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2015 2016 2017

Modular Furniture sales Solid-wood Furniture Sales

Market Size Linear (Market Size)

Figure 4-9

(Growth/ Decline Trends in Furniture Industry{2015-2017})

From the above, figure 4-9, we can clearly see that the market for furniture has
experienced a steady growth especially since 2016 and so has the sales of
modular furniture while the trends of solid wood furniture and on side carpentry
has been on a steep fall in recent years which clearly goes to show that the
customers have been driven towards modular furniture more than that of the
conventional ones which can be seen by contrasting growing trends of modular
furniture to that of the conventional furniture while overall growth of the market
is clearly visible.

4.3.1: Relating market/Industry to its dimensions

From the market study, we come to know that the dimensions of any industry
is dependent on factors like:

61 | P a g e
  Strategy
 Operations
 Marketing
 Finance

Considering the entire market as a closed figure, we can certainly tell that all
these dimensions determine the size and shape of the market. Any change in the
external or internal conditions of the market can result in changes in any of the
above mentioned dimensions and ultimately distort the shape and size of the
market. A graphical representation of the above picture can be seen bellow.

STRATEGY

OEMs, Vendors, Merchants and

other Logistics/ Distribution
Chain Partners Firm, Institue, Organisation

Marketing
Operations

Market/Industry

External Influence/ Forces

Customers
(Ceilings, Caps, Laws,
(End/ Secondary/Tertiary)
Regulations)

Finance

Figure 4-10

(Pictorial representation of the market and Dimensions of market/industry)

62 | P a g e
 The figure above depicts the market in a shape of a perfect square with the
perimeter bound by the dimensions having equal weightage. It further depicts
the players of the market that also affects the entire industry. It can be clearly
seen that any change to the dimensions will affect all the constituent players of
the market thus distorting the shape and size of the market. At the same time it
can be said that any internal change in the market brought by any of the
constituent players can affect the dimensions of the market and change the
market shape and size again.

63 | P a g e
 CHAPTER - 5

Summary and Conclusion

64 | P a g e
 CHAPTER -5
Summary and Conclusion

Furniture manufacturing is driven by the designs chosen, the inputs which

come from in-house designers and market feedback. Manufacturers consider
several aspects related to the customer (demography, lifestyle, motivation and
aspiration, needs and preferences), raw material (type, quantity and availability)
and internal capability (expertise, quantity and availability of labour, production
process complexity and delivery time) for developing different designs, which in
turn, determine the furniture’s functionality, look and feel and value. Furniture
produced in India falls into two broad categories, depending on the end user;
domestic furniture meant for home use and commercial furniture meant for the
office and hospitality sectors. Domestic furniture represents almost two-thirds
of the total output. The key success factors for each category vary.
Manufacturers in the domestic sector typically try to differentiate on the basis
of design variety and price, while in the commercial space, having a strong and
reliable brand is important

5.1: Major Findings

 Retailers:- There are a large number of furniture retailers and franchises

spread across the country. While the majority of retailers are small in size
and scale, large retailers usually operate in urban markets. One-stop
shopping chains for home building solutions have come up in large cities,
such as Arcus in Gurgaon and KSS Home Pro in Bangalore. Another
development has been the emergence of specialty furniture chains, such
as, Usha Shriram Furniture Industries, OCL, Pace Furniture, Indoors and
Renaissance Home. With the rapidly growing and transforming retail
sector, it is expected that the large retailers will continue to expand their
presence, leading to consolidation in furniture retailing in urban markets.

65 | P a g e
 Consumer and Key influencers: The decision making process in buying
home furniture is largely influenced by the owner and the family at large.
For commercial establishments, interior designers and architects are
frequently consulted, for selecting all aspects related to interiors, including
furniture. Upwardly mobile Indians are increasingly buying differently
styled foreign furniture and frequently employ interior designers, to
suggest/choose the right furniture. A major factor that has propelled the
growth in the imported furniture market is the increasing exposure of
Indians to global trends and lifestyles. Such exposure, coupled with
increased disposable incomes, has caused more and more urban middle
class consumers to hire the services of interior decorators, for doing up
their houses. To sum it up,

• While decorating a new house: The buying decision is left

to a builder/architect/interior decorator or the owner

• While renovating a house: The buying decision is made by

an interior designer or by the owner

• While furnishing a commercial complex: The buying decision Is

made by the builder/architect/interior designer.

 Changing consumer demographics:- Income levels in India have been

growing rapidly over the past decade and this trend is expected to
continue. This has led to an increase in the number of middle class and
affluent households- the number of households of the rich and consuming
segment has more than doubled between 1995 and 2005. Average
household income in urban areas has grown at a CAGR of 5 per cent over
the past decade. By 2010, the higher income earning group (>US$ 2,000)
is expected to constitute 48 per cent of the total earning population in
India. Coupled with this is the increased propensity to spend on lifestyle
and consumer products, driven by trends like increasing number of double
income families, increased ease of financing for consumer durables and
increased exposure to global products. All these factors have had a positive
impact on the furniture sector and are expected to drive demand for
furniture in the future.

 Key demand drivers:- Steady growth in the Indian economy and the
consequent rise in living standards, have been key influencers on demand
generation in the Indian furniture industry. The three key drivers that have
had a significant impact on the sector are:

66 | P a g e
 1. Changing consumer demographics
2. Real estate/housing boom
3. Tourism and hospitality industry growth

5.1: Relating the findings

To carry out this project, a total of 52 dealers and about 33 OEMs were taken
into consideration and were visited in order to collect the primary data. The City
of Mumbai, Pune and Nasik were taken into consideration for the study for these
happen to be the cities with highest numbers in terms of lifting of products in
crores.

 It was found that about 21% of the OEMs dealt with modular furniture or
furniture fittings of a single company however a majority of the OEMs i.e.
71% deal with furniture or fittings of multiple brands.
 It was found that 28.8% customers only go for solid wood carpentry where
as a whopping 72% customers like to go for modular furniture of which
68% people prefer the primary furniture over secondary brands.
 It was convincing from the data collected to conclude that the customers
today move more towards the modular furniture in search of “Ease of
assembly”, “ Multiple site manufacturing” and price which is best offered
by the modular furniture.
 At last we can say that the market for the furniture industry has grown. The
industry has itself grown and the trends are on rise however the sale of
solidwood furniture has experienced a steep fall after the introduction of
modular culture which has grown by a considerable 79% in recent time
frame.

67 | P a g e
5.2: Formulating the findings

In the figure 4-10 we depicted the entire market in the form of area of a square
having the dimensions of the strategy, operations, marketing and finance, each
having equal weightage or unit. We know that area of a rectangle

Area of a rectangle= Length * Breadth

Or
Al = l*b

We also know that the perimeter of a rectangle

Perimeter of a rectangle= 2(l+b)

Where :
l = length
b= breadth
Considering each dimension of the market having same weightage on the
market, we can consider the market as a square.

Area of the square= Length* Length

Or
A s= l 2

Here the

Market Size= As=Al

68 | P a g e
From the above study we know that the dimensions of the furniture industry has
changed in the recent years with the introduction of the modular culture. This
has also affected the size and shape of the market. When there is any change
from within such as change in demand from the customer, it forces the industry
to change its strategy and operations, allocate finance accordingly and formulate
marketing strategies to nullify the effect and gain competitive advantage. That
leads to increase in overall dimensions of the market and ultimately the size of
the market. Similarly all other constituent players will have to undergo certain
changes to meet the requirement of the market and thus the overall shape is
restored.

According to the American Marketing Association, The market volume can be

determined by:

Market Volume= Market Value/Average value (1)

Or
Mv = m/v

Having known the current volume the market, we can find the dimension value
by :
Mv = l3 or I = (Mv)1/3

For market is considered in the shape of the square.

Market Size = I2

69 | P a g e
Let
Size of the market in year Y1= A1
Size of the market in year Y2=A2
Dimension of market in year Y1= l1
Dimension of market in year Y2=l2

Change in size of the market = A2-A1

Change in dimension of the market= l2-l1

5.2: Managerial Implications

As the growth in the furniture industry is clearly visible, there can be certain
implications for the managerial level. Furniture has always been a major part of
the Indian families and culture. The trends clearly show that there has been an
inclination of the customers towards the modular furniture for the increase in
sales of the modular furniture has grown at par with the industry itself. The
furniture introduced by the modular culture offers many advantages of multiple
site manufacturing, ease of transport which does make a count when it comes
to the importance of nuclear time age. The type of furniture has also taken care
of customisation advantage. The research carried out from the prospective of
the OEMs and the dealers highlighted the requirements of the customer and the
contrast that is offered by the modular furniture or the solid wood works.
Few dealers still deal with the solid-wood furniture which can be carried out
in near future however the trends suggest that the sales of such furniture would
not encourage much. Under such situation the companies providing the
furniture fittings as well as the modular furniture manufacturers get an entire
open window to establish themselves in the industry for the market has not yet

70 | P a g e
reached its saturation point. At the same time the dealers can be benefited by
moving from exclusive solid-wood furniture dealership to a side dealership of
modular furniture that would simply multiply the amount of profit per year. The
growth of the industry as a whole is overwhelmingly high and that provides a
whole range of opportunities to grow with it.

5.2.1: Limitations and Scope For Further Studies

The limitations of this study discussed in this section also suggest the possible
opportunities for future research. The study has potentially significant value in
the area of research and implications for marketing modular furniture in
emerging markets and its framework will provide a basis for future research on
consumer behavior related to furniture brands. Internationally, research
recognizes that in today‘s society, the dimensions of furniture industry
represents a global trend that is observed in many product and service
categories . The study also empirically tests the causal effects between branding
strategies and brand equity and is the first of its kind in TMT Bar market. The
change in the customer needs over the time and the way market responds to it.
Study finds that the construct of dimensions of a market or industry has a similar
understanding across the nation and the consumers in Mumbai, Pune and Nasik
do not perceive various factors of brand equity differently. Hence, researchers
and practitioners can refer to other similar studies in the area along with this
study to further their knowledge and understanding. The findings observed from
this research suggest several useful research directions. The model in the study
was tested in the context of the furniture. Therefore caution should be taken in
generalizing these findings to other product or service categories of products or
service settings. Further replication of the study would require appropriate
empirical testing. This can be seen as an opportunity for future research and the
theoretical framework developed and tested in this study can be further

71 | P a g e
explored empirically for other products and also in different cultural settings of
developed and emerging markets. This study does not explore the antecedents
of the dimensions of furniture industry, which can be explored in future research
in the area, wherein researchers can also focus on studying antecedents of
marketing strategies and their effect on furniture industry and its dimensional
changes. Future studies can focus on examining different motives in the modular
furniture and other furniture product context. The study was conducted in few
cities of the western belt of India, which is in a nascent stage as far as the
furniture market is concerned, hence the effects observed may be specific only
for emerging market contexts and their generalization to developing markets
would require specific empirical testing the major theoretical contributions of
this study. From an academic point of view, this study examined brand
experience construct and its measures in the furniture market context, which
otherwise has been tested in the case of consumer products and service industry
contexts. With support from existing literature, we conclude that the external
and internal forces recognize and decide the size and shape of a market or an
industry guided by the discussed dimensions and consumption process due to
the essential nature of furniture products. However the dimensions of furniture
industry’s context has not been explored empirically in any known study in the
past. This study applies and tests and measures the change in dimensions of
furniture market context and provides empirical evidence for the same. The
theoretical framework developed in this study explains the effect of branding
strategies and marketing methods on the customer mindset which can be used
by other researchers in the future. This theoretical framework was developed
after review of extant marketing literature and was found to be significant
conceptually and statistically. This model could be employed in future studies
examining specific brands or even other categories of furniture products.

72 | P a g e
 5.3: Conclusion
The study meets the objectives of the research and presents supporting
empirical findings. The theoretical gaps identified are addressed by the study and
consequently it offers to expand the body of knowledge in consumer behavior
and its impact on the dimensions of furniture industry operating in an market
and will serve as a reference point for future research endeavors. The study also
offers recommendations for future research and for furniture brand companies
and marketing practitioners that may be of strategic importance for them while
operating in the dynamic and evolving a furniture consumer setting. The primary
aim of this research was to investigate the concept and the flexibility of market
dimensions and its role in influencing the market shape and size. A theoretical
model was developed on the basis of eextensive literature review. Based on this
review the hypotheses were developed and investigated in order to determine
the effect of changing time and customer reqi. This chapter summarizes the
results of the study, lists out the contributions and implications of the study,
recognizes limitations and provides rrecommendations’ for future research.

73 | P a g e
 Annexure

74 | P a g e
 Annexure

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(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=10&cad=rja&uact=
8&ved=0ahUKEwiSzei33o_cAhUJ5o8KHQwhCzkQFgiEATAJ&url=https%3A%2F%2Fww
w.researchgate.net%2Fpublication%2F228137441_Evaluate_the_Factors_Affecting_Brand_
Equity_from_the_Perspective_of_Customers_Using_Aaker%2527s_Model&usg=AOvVaw1
XqWMJcW6R1UWR8BWSzLfk)

 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&cad=rja&u
act=8&ved=0ahUKEwiSzei33o_cAhUJ5o8KHQwhCzkQFghjMAY&url=https%3A%
2F%2Fwww.mindtools.com%2Fpages%2Farticle%2Fkeller-brand-equity-
model.htm&usg=AOvVaw2Gf4jzI_fcuUT4WXltOrzh

 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&u
act=8&ved=0ahUKEwiSzei33o_cAhUJ5o8KHQwhCzkQFghaMAU&url=http%3A%2
F%2Fciteseerx.ist.psu.edu%2Fviewdoc%2Fdownload%3Fdoi%3D10.1.1.687.5281%2
6rep%3Drep1%26type%3Dpdf&usg=AOvVaw16Z1V3lQM5PgHgpTc-XpJw

 https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&u
act=8&ved=0ahUKEwiSzei33o_cAhUJ5o8KHQwhCzkQFghTMAQ&url=https%3A
%2F%2Fwww.ssrn.com%2Fabstract%3D1944550&usg=AOvVaw0__infxQxkjUHyM
3OQsMgi

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 Sample Questionnaire
QUESTIONNAIRE RESPONSE FORM

NAME OF THE
DEALER:_____________________________________________
LOCATION OF THE
DEALER:_______________________________________________________
DATE: _ _ /_ _/ 2018

1- How many customers usually turn up to purchase tmt bars in a day

and ur average sales per day?

____________________________________________________

2- What kinds of customers turn up more usually?

 Those who build their own house

 Commercial builders and real estate firms
 Contractors

3- Are Local Brands more preferred by the customers or the premium

brands?
 Local brands
 Premium brands

5- Which brands do customers prefer among premium brands?

 TATA Steel
 Jindal Steel
 SAIL
 Other

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 6- What kind of customer usually prefers the above mentioned brand?
 Those who build their own house
 Commercial builders and real estate firms
 Contractors

8- What selection criteria do commercial builders and real estate firms

follow while purchasing tmt bars?
 physical attributes
 promotion
 pricing
 brand equity
 9-What influences buying behaviour of customers making their own
houses more? Rank the following (Customer experience, Retailers push
Advertisements, Peer suggestions)
1:__________________________
2:__________________________
3: __________________________
4: __________________________

10-What influences buying behaviour of customers making their own

houses more?
 Customer experience
 Retailers push
 Advertisements
 Peer suggestions

6- Are customers on an average price oriented or brand oriented? Rank

them.
1:__________________
2:__________________
3:__________________
4:__________________

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7- What kind of customers are usually brand oriented?
 Those who build their own house
 Commercial builders and real estate firms
 Contractors
 other

8- What kind of customers are usually price oriented?

 Those who build their own house
 Commercial builders and real estate firms
 Contractors
 other

9- What kind of customers are usually quality oriented?

 Those who build their own house
 Commercial builders and real estate firms
 Contractors
 other

10- What kind of customers just go for any brand?

 Those who build their own house
 Commercial builders and real estate firms
 Contractors
 other

SECTION-B

1- Which companies usually persuade aggressive branding strategies?

 Primary
 Secondary

2- What kind of branding strategies do primary prefer more often?

 ATL
 BTL

3- What kind of branding strategies do secondary brands prefer more

often?
 ATL
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 BTL

4- Do the branding strategies of primary brands change more often?

 Yes
 No

5- Do the branding strategies of secondary brands change more often?

 Yes
 No

6- What kind of brand tries to carry out branding through maintaining

good relationship with dealer?
 Primary
 Secondary

7- What kind of branding is more effective? Rank the best branding

methods among (ATL , BTL, Salesman’s Push)

1:__________________________
2:__________________________
3:__________________________

8- What kind of branding is more effective?

 Shop hoardings
 Glow sign boards
 Wall paintings
 Highway hoardings
 Shutter Painting
 Jindal Hat
 Nukker Naatak
 Mobile van
 Auto branding
 Bill boards

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9- What kind of brands maintains a good relation with the dealers and
customers usually? Rank the best brands available in the market (
TATA, PANTHER, SAIL, RINL, SCAN, SMC)
1: _________________
2: _________________
3: _________________
4: _________________
5: _________________

10- Do customers get influenced by the POP materials. Suggest

some effective POP materials
 Yes
 No

SECTION-C
1- Which firm has the best branding in the region? Rank the best
brands available in the market ( TATA, PANTHER, SAIL, RINL,
SCAN, SMC)

1: ____________________________
2: ____________________________
3:_____________________________
4:_____________________________
5:_____________________________

2- What kind of branding does this brand focuses on?

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3- How does it maintain the relationship with its dealers?

4- What kind of incentives and rewards does this brand offer?

5- What different branding strategy does this firm follow from its fellow
competitors?

6- What strategies its competitors follow which this brand does not but
should follow as well?

7- Do you insist upon any customer to purchase the product of a

particular brand? Rank the best brands available in the market (
TATA, PANTHER, SAIL, RINL, SCAN, SMC)

1: ______________________________
2:_______________________________
3:_______________________________
4:_______________________________
5:_______________________________

8- What kind of people usually look for suggestions from the dealers?
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 9- How many people do you succeed in convincing them to purchase the
product of a particular brand?

SECTION-D
Suggest some branding techniques that a particular firm may follow to
turn up more customers.

2- What kind of ATL branding is more eye-catching for a

customer?? Rank them( TV ads, News Paper adds, Movie adds,
Others)

1: ________________________________________
2: ________________________________________
3:________________________________________
4:________________________________________

4- What kind of BTL activities influences customers more? Rank them (

Bill boards, GSB , Highway hoardings, wall paintings, Auto branding
,Mobile Van, Shutter painting)

1: ________________________
2: _________________________
3:_________________________
4: _________________________

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 5: _________________________
6: _________________________
7: _________________________

5- According to you, what is the percentage that should be assigned to

the following factors determining brand equity according to their
influence on the buying behavior of customer? ( Brand Loyalty,
Brand Awareness, Perceived Quality , Customer perception)

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