Aludecor survey report

Shailesh J. Mehta School of Management IIT Bombay

MARKET RESEARCH FOR

“ALUMINIUM COMPOSITE PANEL”

Submitted to: Aludecor Lamination Pvt. Ltd.

Mentor: Mr. Ashok Kumar Paul Head - BIM Aludecor Lamination Pvt. Ltd.

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Submitted By: Rathod Nitesh Kumar SJMSOM, IIT Bombay Class of 2014-16

ACKNOWLEDGEMENT

First of all I would like to take this opportunity to thank Shailesh J. Mehta School of Management, IIT Bombay for having summer internship as a part of academic curriculum. I would like to convey my sincere thanks to Mr. Ashok Kumar Paul, Head - BIM, Aludecor Lamination Pvt. Ltd., my project guide and mentor for supporting me in the project work. I would also like to thank Prof. Ashish Pandey, Course Co-coordinator and Prof. Arti Kalro, SJMSOM, IIT Bombay for their valuable guidance in preparing this project. I would also like to thank the entire Aludecor lamination Pvt. Ltd. Team and my friends who have helped and encouraged me throughout the working of the project.

RATHOD NITESH KUMAR

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EXECUTIVE SUMMARY The objective of this project is to do an in depth analysis of the market size of the Aluminium Composite Panel and developing strategies to determine how Aludecor could go and position itself in the market. For this, I had to understand the customer requirements, pricing constraints, responses and competitors of the market and strategies to beat them. This will help us an idea on how exactly it could introduce an ACP in Indian Market and particularly in Hyderabad region. This survey in Hyderabad had given me an understanding about the client behaviour in regards to different feature of the product

The second step was to collect the information of all the possible buyer of the product and all the information of the clients

Then, I had to study research methodologies and designing questioners about the product and my respected mentor has guided me in framing the questions. These questions mainly appeal to those who are interested in purchasing the product in future ventures

I have taken interview of about 16 industrial experts/ Clients those who are currently using that product.

The final part of the project was to analysing the data which I have received by taking the interview of the experts on that field. On the basis of the analysis I have presented the finding and recommend different strategies for implementing the product on full scale.

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INDEX Chapter 1: Introduction 1.1 Overview of the Industry

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1.2 Overview of the Company

5

Chapter 2: Research Design and Methodology 2.1 Objective and Scope of the Study

7

2.2 Research Methodology

7

2.3 Sample Design

8

2.4 Data Collection Method

9

Chapter 3: Data Analysis and Interpretation 3.1 Purchase Decision Based Analysis

10

3.2 Application Based Analysis

15

3.3 Manufacturing Initiative Based Analysis

18

Chapter 4: Finding and Limitation 4.1 Findings

19

4.2 Limitations

20

Chapter 5: Recommendation

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Chapter 6: Bibliography and Appendix 5.1 Bibliography

22

5.2 Appendix

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CHAPTER 1: INTRODUCTION

Overview of the Industry: Construction Industry is the second main economic activity in India, after agriculture. The Indian construction industry is an essential part of the economy. The construction industry contributes more than 8% share of the Indian GDP. It generates employment to more than 35 million people. Indian market of construction records 8% CAGR consistently over the past few years due to FDI and favourable economic environment. Due to high urbanisation process in the country, construction industry enjoys annual growth of 10% over 2007-12.

Indian market of real estate activities records 14% CAGR consistently over the past few years due to rising living standards and expanding middle class. The Indian construction industry has boomed since the government liberalised the industry in March 2005. This led to massive investment in the sector creating an unprecedented rise in real estate prices. Since the global economic crisis of 2008-2009, growth in the sector has slowed with the consequent slowdown in Indian real economy. However, growth in the sector remains strong and as a result, real estate prices remain elevated, presenting challenges for the sector

Moreover, the Aluminium Composite Panels usage for building facades, ceiling walls, column covers, cladding etc., had been always in demand because of its beautiful looking outlook and also aluminium is such a metal which can be recycled later and can be used as business. Hence, there is an immense scope in developing this market at a new level in India. Hence, in building infrastructure, real estate, housing and construction of projects it has ACP panels have immense scope to deeply penetrate in the industry.

Company Overview: Aludecor Lamination Pvt. Ltd. the Flagship Company of the HMB group incorporated in 2004. Aludecor provides the opportunity to embellish the building’s exterior and interior. It can be used in the design and development of wide range of building facades, individual signage, building interior, column cover, ceiling, furniture, elevators, escalators etc.

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Resting on the rich credentials of its parent organisation, Aludecor has set new parameters in the national market of Aluminium Composite Panels (ACP) and coated coils. Aludecor has set new standards of quality. Aludecor’s ACP panels consist of six different brands which are built according to different environment conditions and its requirements. BRAND NAME

MASTERWORK

DESCRIPTION

It is manufactured from 100% virgin extrusion grade polyethylene. It has a property for better adherence with paint and high flexibility

FIREWALL

It has pvdf/Lumiflon resin based coating which has superior resistance to fading ad weathering. It is Aludecor’s new range of fire retardant panels.

SELECT

This brand gives the value for money to the customer having the superior quality material yet at a reasonable price

REACH

It is made from a combination of virgin first grade recycled polyethylene which provide high strength

COPPER

It is produced with copper at the top, aluminium coil at the bottom and a low density polyethylene core in the middle. It is used in health sector

ZINC

It absorbs all the pollution from outside as it has the anti pollution property

SWOT Analysis: Strength 

Very reputed brand for its product quality at a considerable price



Wide variety of brands available according to the requirement of the clients



Rated as one of the bet brands in terms of performance committed

Weakness 

Logistic cost might have to add up because the plant location



Doesn’t have diversity in the product portfolio i.e. only manufacture ACP

Opportunity 

Rising investment and FDI inflows in construction sector



Change in the perception of the customer to make classic architectural building

Threat

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

It’s a complete red ocean situation i.e., lot of competitors existing in the market



Some clients have shifted to brands like fundermax, sherabond etc.,

CHAPTER 2: RESEARCH DESIGN AND METHODOLOGY

Objective and Scope of Study: Objective of Study: 

To understand the purchasing decision criteria or the purchasing behaviour of customer of Aluminium composite panel



To understand the customer preference of the attribute of the product while purchasing or choosing a brand



To know the detail study of factors affecting the consumer behaviour



To know about the competitors involved in the market and strategies which can be used for better positioning of the product



To understand the customer perspective regarding any additional feature which can be added to the product

Scope of Study: 

The buying behavior of the customers while purchasing the Aluminum Composite Panels could be understood by this report



Various factors could be found out which affect the purchasing decision



This report provides an understanding about the mindset of people, what are the expectations of the consumer and up to how much level these expectations met



This Report will be helpful for Companies to understand the consumer behavior and could be helpful in satisfying the customers in a better manner



Customization of the product could be done based on the customer response and the mistakes could be identified

Research Methodology: The research methodology is to gain an insight into consumer behavior. In order to understand this I have chosen exploratory research with a small and non-representative sample.

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Both Quantitative and Qualitative research have been used to achieve the objective. Some open ended question were also part of my questioners to understand in selecting a brand for purchase. 

The sources of the data used in this project are both primary and secondary



A questionnaire was prepared to record the response of the client while choosing an ACP brand.



The survey has been done to collect primary data from Architects, Project Management Consultant, Façade Consultants, and fabricators from various companies.



To understand the facade building industry and competition secondary data has been collected.



Microsoft Excel has been used to analyse the primary data collected through questionnaire.

Sample Design A definite plan for obtaining a sample from a given population is sample design. It refers to the technique to the procedure adopted in selecting items for the sampling designs are as below:

Sample Size: The sample size is relatively small as I had to book appointment and meet in personal which would consume time and effort. The list of companies and the contact persons for interview have been gathered by secondary research. I have taken a total of 17 interviews in this survey in the Hyderabad city.

Sampling Frame: The decision makers in each of the companies in my survey were identified who were directly involved/influence the purchase of ACP. I visited each of those companies and met the concerned person in their offices or at any meeting points either through prior appointment or on the spot request.

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Data Collection Method I employed both primary and secondary data collection required for further analysis. Primary Data: 

After taking the appointment, one to one interview would be carried out at their offices with the help of questionnaire and also further insights are noted down if any and if time permits



Information was gathered based on various parameters as listed in the questionnaire.

Secondary Data: 

It is gathered for understanding the variety of brands offered by Aludecor. Its price and quality is compared with the competitors. Market size of the product is also calculated from secondary data.

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CHAPTER 3: DATA ANALYSIS AND INTERPRETATION

3.1 Purchase Decision Based Analysis A total of 17 responses were collected from the interviews taken of the architects, fabricators, management consultants, builders, etc., who are directly involved in making the purchasing decision. The fabricators are categorized in the grade of A, B and C based on the project in the hand and the use of Aluminium Composite Panel.

19%

6%

25%

A B C

50%

NA

Graph 1.a Fabricators based on their grades

Interpretation 

Majority of the fabricators belong to “B Grade” which comprise of 50% and “A Grade” fabricator are 25% and “C Grade” are 19%.

Product Quality

16

14 12 10

yes

8 6

no

4

na

2 0 Paint quality Aluminium alloy grade

Smooth cutting

Bending flexibility

Flatness

Graph 2.a Features assessment of the product

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Diagonal Dimension

Percentage Influence on product quality 7 6 5 4 no of respondents

3 2

1 0 100

75

50

30

20

10

NA

Graph 2.b Percentage of quality influence to select ACP

Interpretation 

The preferences of the customer while purchasing decision is done for the product attribute are shown in the graph. While all the features are equally important, customer mostly prefers very good product flatness. Customer prefer good paint quality and aluminium alloy grade but they are of the perspective they can’t judge it just by merely looking at it. Some alternative method must be implemented.



Second graph shows the percentage influence of the features of the first graph in which 6 respondents consider 100%, 3 respondents consider 75% and 50% each and 30% influence have only 1 respondent while buying Aluminium composite panel

Risk Factor Analysis 16 14 12

Non performance of quality

10 8

delivery date

6 Shade variance of batches

4 2

0 yes

no

Graph 3.a Risk Factor Assessment 11

Interpretation 

Risk assessment could be done by considering three main factors. They are non performance of quality, failure of committed delivery date and shade variances of the batches. From the graph, we could see that non performance of the quality and shade variance of batches are considered as very high risk by the fabricators and failure in committed delivery date is something very usual and can cope up with it.

RISK CONSIDERATION IN SUPPLY OF MATERIAL

supply of material 12% 44% 7 days 44%

14 days 21 days

Graph 3.b Supply of Material (in days)

Interpretation 

44% of the customers prefer the delivery to be done within 7 days and another 44 % of the customers think that it is okay even if it is 14 days and only 12% of the customers are okay with the delivery period of the supply material to be 21 days.



Hence, from the above graphs , we could conclude that the supply material could be delivered on an average of 14 days maximum

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Product Price Analysis 60

80% 70%

50

60%

40

50%

30 20

43%

Importance to price

50%

40%

Willingness to pay high

75%

30% 20%

10

25%

10% 7%

0 yes

no

0%

na

yes

Graph 4.a Level of importance to price

no

Graph 4.b Willingness to pay high

8 7

6 5 4

percentage of Influence of price on buying behaviour

7

3 2

4 3

1

2

0 100%

75%

50%

0 30%

0 20%

10%

Graph 4.c Percentage of influence of price on buying behaviour

Interpretation 

Graph 4.a shows that 43% of the customers believe that price is the only factor while deciding to purchase the product



Graph 4.b shows that 75% of the people are willing to pay higher price if the product quality is better and supply is at par



Graph 4.c shows that price is a very important factor for purchasing decision to be made because the client’s influence on the price of the product is 50% and above

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Sales Representative Analysis 75%

80% 70%

56%

60% 43%

50%

yes

40%

25%

30%

no

20% 10% 0% Influence of sales representative

trust on sales representative

Graph 5.a Sales Representative Influence

Interpretation 

From the graph, we can see 56% of the clients believe that the sales representative will not influence their decision on buying Aluminium Composite Panel



75% of the clients say that they can’t trust the sales representative about the promise that they make to deliver on behalf of the company

Rating of the Brands 10 9 8 7

5

6

4

5

3 2

4

1

3

NA

2 1 0 Alucobond

Aludecor

Timex Bond

Eurobond

Alstrong

Graph 5.b Performance Ratings of Brands 14

Alstone

Interpretation 

It can be clearly understood that Alucobond is consistently rated as the best brand and Aludecor is the next best brand among these brands by the clients

3.2 Application Based Analysis 0 100

12%

75 25%

50

57%

30 N.A 6.25%

Graph 6.a Packing influence

Interpretation 

57% of the clients believe that the packing of the sheets do not help the application process of ACP much.

Diagonal Dimension Ascertainment Problem Diagonal dimension of an ACP gives an idea of ascertainment of the material after installing it in the desired position. We can understand how stable and rigidly an ACP fixed to it course without bending downward

Reasons of Diagonal Dimension 19%

12% ACP Quality

Wrong Fabrication Both 69%

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Interpretation: 

69% of the clients believe that diagonal dimension ascertainment problem happens due to wrong fabrication only and 12 % believe that it happens due to the quality of ACP and 19% believe that it happens because of both 3

3 2.5 2

2

22

2

5 4

1.5

3 1

1

11

111

2

1

1 0.5 0

0 Alucobond

Aludecor

Timex Bond

Eurobond

Alstrong

Alstone

Graph 6.c Rating of brands on basis of Diagonal Dimension

Interpretation  Alucobond, Aludecor have received good ratings than the other brands. (rating of 5 represents excellent and 1 represents poor)

Routing of ACP Routing of an ACP is nothing but having a smooth surface after cutting an ACP by a blade. ACP sheet can be rated on the basis of number of sheets a blade can cut. Quality of ACP is proportional to the number of sheets routed through a single blade

Routing of ACP 20%

20%

10 sheets 15 sheets 25sheets

20% 40%

16

40 sheets

Interpretation  40% of the clients believe that 15 sheets can be routed with a single blade, 20% believe that only 10 sheets can be routed with a single blade



Rest of them believe that we can route 25 or more sheets with the help of a single blade

Effects of cracking of Paints

Cracking of Paints

Affect on workmanship

Poor Quality of Paint

13% 37%

50%

6%

Poor Quality of Alloy grade NA

44%

Partly very Badly

50%

not at all

Interpretation  50% of the clients believe that cracking of paint happens due to poor quality of alloy grade while 37% believe that the cracking of paint happens due to poor quality of paint

 50% of the clients have said that the paint cracking affects workmanship very badly while 44% of them have said that it affects workmanship partly. Rest of them said that it does not affect workmanship at all

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3.3 Manufacturing Initiative Based Analysis

Interpretation of Open Ended Questions I have included few open ended questions in the questionnaire in order to know the perspective of the customer in improving ACP brand so that it could save cost, time, reduce wastage, improve the quality of workmanship etc., Some of their view points were: 

To improve the quality of workmanship, international standards of training the manpower and certifying them on those basis could be helpful



Many fabricators were asking for free site delivery would be motivate them to go for that particular ACP.



There was a viewpoint from a fabricator that Aludecor and Eurobond maintain fake thickness promises. That could be checked once



To save time many recommended that the alloy thickness must be maintained properly and LDPE core must be smooth and lighter. It must be gum free after the sticker being removed



To save cost, as it purely depends on aluminium price but still we could consider set up manufacturing units at different locations as the logistics cost is also high



To reduce wastage, different and appropriate sizes of the panels must be manufactured like sizes 6,7,8,9.

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CHAPTER 4: FINDINGS AND LIMITATIONS After the thorough inspection survey of the market in the Hyderabad, the purchasing behaviour of the customer could be known. This will tell us exactly if there is any dearth or any improvement required in the consumption and features of the product.

4.1 Findings 

The people who were interviewed for my survey were mostly the fabricators. There were only one or two who were consultants or architects. So, the buying behaviour pattern is gathered from the data collected accurately of the core sales team



Customers think failure of committed delivery date could be managed if there is proper batch to batch shade variances and the performance of the quality of the sheet is good



Lead time should be properly maintained as per the contractual basis



Many viewpoints of the respondents were that the people in the city like Hyderabad are very much price sensitive. Though the willingness to pay a higher price if the quality is good exists among them, many of them were very hesitant saying that it purely depends on the consumer’s budget allocation



Many of the respondents were well aware and experts in the field of ACP so they do not require a sales person nor they trust on the sales person much



Alucobond is the current market leader right now. Also, Aludecor and Timex bond are well received



Many of them agree to the point that sheets sent loosely is perfectly fine unless and until there is no damage occurred to the corners

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

Diagonal dimension problem is occurred mostly because of wrong fabrication. Very few view points were that it may occur even because of the poor quality of the ACP



Almost Half of them have agreed that the cracking of paint happens because of the poor quality of the alloy grade

4.2 Limitations  It was difficult to conduct taking more appointments and interviews within the stipulated time span of 60 days

 Few respondents were not fully aware of the functional knowledge of ACP or have not used all the brands mentioned in the questionnaire. So they could not answer few of the questions

 Interviews were taken only in the Hyderabad city and only with those who were willing to be interviewed

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CHAPTER 5: RECOMMENDATION In the market survey that i have conducted there are many players in the market right now in the field of ACP along with the other brands like Reno Bond (U.S), Alu Bond (U.S), Alco Panel (South Korea), Alpolic (Japan) etc., who are also leading in the market . It’s completely a red ocean scenario out there. But, according to the survey and the given brands Alucobond and Alstrong are widely used by the customers as one is for the quality factor and the other is for the price factor respectively. Aludecor is treated as a very good quality product but it has not penetrated into the market so much as it could be the market leader. To become the market leader and reach its target, it can address the view points and concerns raised by the respondents and thus, beating the competition and stand tall. Few points: 

Batch to batch shade variance is very important on the basis of which customer rejects an ACP brand. So, this has be highly taken care of by Aludecor



Availing different sizes of the panels could be helpful to them



Marketing of the product and its USP(Unique selling proposition) must be done extensively as per the viewpoint of the respondents



Personal consultation, building relationships and maintaining them is very crucial in this type of business. Because, the greater the bonding between the buyer and the seller, higher is the probability that he will get the business from the same dealer again



As the market for the ACP is growing at a rapid pace, it could set up manufacturing units at different locations so that they could save up on logistics a lot

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CHAPTER 6: REFERENCE AND APPENDIX

6.1 References:  Marketing Management, Kotler Philip, Eleventh Edition  Euromonitor International  www.aludecor.com  www.slideshare.net

6.2 Appendix: Questionnaires used for interviewing customer QUESTIONAIRE (PART I) Subject: Purchase Decision Relevant Input: Product Quality Related

What are the features in the product you look at to select an ACP brand finally? 1. Paint Quality

Yes/No

2. Aluminium Alloy Grade

Yes/No

3. Smooth Routing on ACP Sheet

Yes/No

4. Bending Flexibility

Yes/No

5. Product Flatness

Yes/No

6. Product Diagonal Dimension

Yes/No

What % of above quality Influence you to select a brand of ACP 100%

75%

50%

30%

20%

10%

When you buy ACP sheet what are the risk factors you consider? 1. Non Performance of Quality

Yes/No

2. Failure of committed delivery date

Yes/No

3. Batch to batch shade variance of ACP sheet

Yes/No

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Supply of Material: For a minimum quantity of 1000 sqm & above what would be the minimum acceptable delivery period 7 Days

14 Days

21 Days

Product Price: 1. Do you assume/believe price is the only factor to select an ACP brand?

Yes/No

2. If the product quality is better and supply is at par, will that influence you to pay higher price? Yes/No 3. Any other factor that influence to decide your purchase price of ACP brand

What % of product price influence you to select a brand of ACP 100%

75%

50%

30%

20%

10%

Trust on company sales representative/ Person: 1. Do you require a sales personnel to help you decide/ select an ACP brand? Yes/No 2. Do you trust sales personnel what he promise on behalf of the company?

Yes/No

3. Does the Performance committed by a particular ACP brand honour their promises made to customers (Please Rate the brand) Alucobond _

Aludecor__

Timex bond__

Eurobond__

Alstrong__

Alstone__

What % of role played by Sales representative influence you to decide on selecting an ACP Brand? 100%

75%

50%

30%

20%

10%

(PART II) QUESTIONNAIRE Does Packing influence you to selecting an ACP brand? What kind of packing do you recommend? 1. 3-5 sheet in one bundle wrapped with Strip?

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Yes/No

2. Loose sheet sent through local Van/ Tempo/Other Vehicle

Yes/No

3. Small bundle with corner cap wrapped with plastic

Yes/No

4. 3-5 sheet wrapped with polyethylene cover and stitched all around

Yes/No

What % of packing of sheet help you in application process of ACP? 100%

75%

50%

30%

20%

10%

Dimension of ACP sheet: 1. Is diagonal dimension of ACP are ascertained post installation?

Yes/No

2. What may be the reason of above problem in ACP Wrong fabrication __

ACP Quality__

3. How does this above problem affect your fabrication workmanship? Partly__

Very badly__

Not at all__

4. What are the ACP brand you had come across with such problem during fabrication work at site? Aludecor__

Alucobond__

Timex Bond__

Eurobond__

Alstrong__

Alstone__

Routing of ACP sheet: How do you judge the Quality of ACP Sheet while routing the same? 1. Smooth cutting of LDPE of the ACP Sheets?

Yes/No

2. Rough surface of Aluminium Skin after router is used on the sheet?

Yes/No

3. What is the number of Blade used for routing Hard LDPE? 5 Sheet__

10 Sheets__

15 Sheets__

25 sheets__

30 Sheets__

40 Sheets__

Please rate an ACP Brand where you have faced Routing Problems? Alucobond__

Aludecor__

Timex Bond__

Eurobond__

Alstrong__

How this above problem affect your fabrication workmanship? 24

Alstone__

Partly__

Very badly__

Not at all__

What action do you take when Routing problem arise at site, while installing ACP Sheets? Does this affect your Installation process and time?

Cracking of Paints: Have you noticed Paint Cracking while bending the ACP Sheets? Does this happen due to Poor quality of paint used__

Poor quality of alloy grade__

Does the above problem affect your application workmanship? Partly__

Very Badly__

Not at all__

Please rate an ACP Brand where you have come across with such Problem? Alucobond__

Aludecor__

Timex Bond__

Eurobond__

Alstrong__

Alstone__

Aluminium Skin Cracking: • Have you ever experienced a hare crack on the Aluminium surface while bending ACP Sheet? Yes/No • What may be the reason of this problem in ACP Sheets? Quality of Aluminium Alloy__

Quality of LDPE___

• Please rate an ACP Brand where you have faced such Problems? Alucobond__ Aludecor__ Timex Bond__ Eurobond__ • Does the above problem affect your application workmanship? Partly__

25

Very Badly__

Not at all__

Alstrong__

Alstone__

(PART III) QUESTIONNAIRE Subject: Manufacturing Initiative: 1. What should be the features to be added to save your time using ACP Sheet in a project? 2. What should be the features to be added to save your cost using ACP Sheet in a project? 3. What should be the features to be added to reduce your wastage using ACP Sheet in a project? 4. What kind of help you expect from ACP Manufacturer to support you in quality of workmanship during fabrication? 5. What do you expect from an ACP Manufacturer to add product features so that, the product gets multiple / wide applications. 6. Any other inputs you want to share which a ACP Manufacturer should improve to become a perfect choice of customer? ------------------------------------------------------------------------------------------------------

Name & Address of the Interviewed person: Interviewed By

26

27

Alucobond__ Aludecor__ Timex Bond__ Eurobond__ Alstrong__ Alstone__ Aluminium Skin Cracking: Sheet? Yes/No

Quality of Aluminium Alloy__ Quality of LDPE___

Alucobond__ Aludecor__ Timex Bond__ Eurobond__ Alstrong__ Alstone__ e problem affect your application workmanship? Partly__ Very Badly__ Not at all__ (PART III) QUESTIONER Subject: Manufacturing Initiative: 1. What should be the features to be added to save your time using ACP Sheet in a project? 2. What should be the features to be added to save your cost using ACP Sheet in a project? 3. What should be the features to be added to reduce your wastage using ACP Sheet in a project? 4. What kind of help you expect from ACP Manufacturer to support you in quality of workmanship during fabrication?

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5. What do you expect from an ACP Manufacturer to add product features so that, the product gets multiple / wide applications. 6. Any other inputs you want to share which a ACP Manufacturer should improve to become a perfect choice of customer? -----------------------------------------------------------------------------------------------------Name & Address of the Interviewed person: Interviewed By

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