Cera Sanitaryware Ltd

CERA SANITARYWARE LTD COMPANY BACKGROUND Cera Sanitaryware Limited (Cera), a Gujarat-based company, was established in 1980. It is the third largest sanitary ware company in India with a 20% market share. Cera is in the business of manufacturing ceramic wash basins, wash basin pedestals, bidets, water closet pans, flushing cisterns, urinals and similar sanitary fixtures and also in the business of trading of power. Its sanitaryware manufacturing plant is located at Kadi in Gujarat. With a production capacity of 2. million (mn) pieces per annum (25,000 tonnes per annum), it is India’s largest sanitaryware plant. It also has wind farms located at Jamnagar and Kutch in Gujarat. PRODUCT PROFILE †¢ Sanitaryware o Premium Collection o Regular Collection o Senator Collection o Wall Hung Basin †¢ Glass Basins †¢ Shower Range †¢ Whirlpool & Bath Tubs †¢ Pozzi Ginori COMPETITORS [pic] INDUSTRY HIGHLIGHTS [pic] PORTER’S FIVE FORCES CONCLUSION Based on Appe ndice 1 The  sanitaryware  manufacturers  in  the  unorganized  sector  continue to enjoy duty exemptions, which is not conducive for  healthy competition.CSL faces a lot of competition from the unorganized sector in Gujarat which is a cause for concern to the company. After studying the Model, we can conclude that Sanitaryware  business completely depends on the development and booming of the Housing and Retail Sector. Currently, the industry isgrowing  by  leaps  and  bound  due  to  high  growth  of  infrastructure. In near future, the great phase of consolidation will start. Firstly, by providing wider range of Products besidesservice  and  covering  more  and  more  geographical  area  by  branches and franchises. SWOT ANALYSIS Based on Appendice 2Recommendations †¢ Need to give full knowledge about product use to customers through advertisement in magazines, newspaper or TV. channel. †¢ Need to make some improve ment in products to satisfy its customer. †¢ There should be all information regarding product use, installation, product features, and emergency repair of product in User Manual. †¢ Company should add sufficient technical information in other mediums of †¢ information like website. So customer can use alternate way for †¢ information. †¢ Company should provide technical expert employee for every specific area.Those can personally solve the problem of customer. †¢ If company is not providing service to its customer timely. Then there should be provision of compensation to its customer PRODUCT MIX [pic] Cera’s product mix  Ã‚  and new marketing strategies: Cera has a mix of products that would cater to all needs of consumer. Cera has top end products like the Senator Collection, the Shower Temples with Jacuzzi features in them. Cera also has the Premium Collection focused at middle end users and the Regular collection which includes the Indian E WCs as well as European EWCs for the lower end customers.In Bath Fittings, the Single Lever Bath fittings are for the elite, followed by the Quarter turn and the half turn fittings meant for  people looking for more economical range. 7P’S Product: Product of the company as is defined in company’s introductory chapter is a sanitaryware product having mainly  extraordinary features like twin flush water saving product, soft close seat cover, shower temple product. This product talks about giving a spa foot massage and inbuilt Jacuzzi unit which give experience artificial water waves and facility like radio and telecalling with six body jetspray.Price: Prices  of  the  product  and  services  offered  are  competitivecompared to our competitors products and also provide value for money to the customers. Because as we talked  in  the  earlier  Ã‚  paragraph that features provided in the products are very uniqueand are having low cost so finally company becomes best cost  provider in the  market. Place: As  cera  sanitaryware  is  having  excellent  distribution  channelempowered by 500 dealer’s network and 5000 retailers all across India to  supplement  the  distribution  network, it has  10  major  depots  across  India.It  has  7  zonal  sales  &  service  offices,supported by another 28 sales offices, 7 bath studios strategicallylocated in major cities across India. To capitalize on the growth market for premium products, Cera has entered into an exclusivemarketing  agreement  with  Italy's  luxury  brand  Pozzi-Ginori  tomarket its designer sanitaryware in India. Promotion: Cera sanitaryware ltd. has always been proactive in promotional activities for increasing thebrand awareness among the consumer so the company has promotional scheme directedtowards consumer as well as its partner (dealer). Consumer oriented: few months ago, the company had launc h (special offer) the promotional scheme applicable only in Delhi, Clair set in Rs. 3999/- for only one month. †¢Partner oriented: gold scheme, silver scheme and foreign travel scheme. People: In ceramic industry as goods are produced and prompt service is given to the people i. e. employees need to be highly trained and qualified. So requires good qualified and expertise employees to this competitive industry. Cera sanitary ware has achieved a good sense of the same by employing highly qualified employees like M. B. A. nd other Marketing specialized. Physical Evidence: Cera sanitary ware is providing catalogs to their customers as a physical evidence of  purchasing the product. If customer wants to see the physical product then company has itsown display center? Cera bath studio? in metro cities of India. Process: This last step of marketing mix of  Cera sanitary ware includes following points to be done for making the product available to the  customers. †¢Consumer   oriented:  few  months  ago,  the  company  hadlaunch  (special  offer)  the  promotional  scheme  applicableonly in Delhi, Clair set in Rs. 3999/- for only one month. Partner  oriented:  gold  scheme,  silver  scheme  and  foreigntravel scheme. Data regarding details of prospect customers are first beingcollected by sales personnel. †¢These personnel then make calling and getting appointmentsfrom prospects to explain product and services. †¢Ã‚  Next  step  includes  meeting  and  explaining  product  andservices. †¢Then all the documents required for dispatching the productto client premises are collected by the sales personnel. †¢These all documents are then submitted to Head Office at Ahmedabad. †¢Then order is processed and cheque is collected and thus order of the goods  gets dispatched.STP of SENATOR COLLECTION Segmentation: The segmentation of SERA products has been done as follows: †¢ Hig h End Segment †¢ Lower and Upper Middle Segment †¢ Mass Market Segment These segments are keeping in mind the income levels, taste and preferences. Targeting: For the Senator Collection CERA has targeted the high end segment with unique feature like shower temples, Jacuzzi and sensor technologies. Positioning: It has positioned the senator collection as a premium brand and effectively did so through its TVC ad campaign. Appendice 2: Portes Five Forces Model Rivalry Among Existing Players:There are about 20-25 organized players and high percentage of unprganized players whose market share is very high. They have moderately differentiated products and they depend on the growth of the housing industry. Bargaining Power of buyer: The buyer has a wide range of products to choose from and information about the products is easily available. The switching cost is very low. Thus CERA needs to increase its awareness as bargaining power of buyer is very high Bargaining power of Suppl ier CERA is moderately dependant on its suppliers as there is limited number of suppliers in the marketThreat of new entrants The industry entry is difficult due to high cost of set up and manpower, non availability if materials. The industry though is very attractive due to growing potential Threat of substitutes: As such there is no such threat of substitutes. Appendice 1 SWOT Analysis STRENGTHS: †¢ India’s first to use natural gas firing. Direct connection of natural gas from GAIL has certainly helped CERA in better margins. However, this is only one of the several advantages. CERA has captive power plant using natural gas. CERA also has wind turbines.Thus CERA is not dependent on government electricity board for its power requirements. Others will take a long time to catch up. Further, CERA is getting natural gas on very cheap rate directly from the ONGC oil fields, which will continue to be cheap, wherein others are getting imported LNG which is three times costlier than what Cera is getting. †¢ India’s first to launch twin flushtechnology ; 4 liters flush WC. We have twin flush models that on an average consume only 4 liters of water, against the others which can use up to 6 liters every flush. That quantifies to 50% of water saving.With water scarcity in urban areas, there are a lot of initiatives that have already been taken by Metros like Mumbai. Others will have to soon follow in order to save water. †¢ Wide product range. Capitalizing on a strong brand image and an evolving market for bathroom products, CSL expanded its product range to other related products like shower panels, shower cubicles, shower temples, bath tubes, whirlpools, bath fittings etc. , which makes it a total bathroom solutions provider. †¢ Huge distribution network. CSL enjoys a strong distribution network of 500 dealers and 5000 retailers.To supplement the distribution network, the company has several depots and zonal offices across India. This will help the company in increasing its market share. WEAKNESSES. †¢ The company has only one manufacturing plant at Kadi, Gujarat. While its nearest competitors HSIL and parry ware has more than one manufacturing plant strategically located across different parts of India to bridge the gap between demand and supply. †¢ Large unorganized existence. †¢ Low R;D for product innovation. OPPORTUNITIES †¢ Rising domestic demand for tile, sanitary ware and table ware.

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