Metal Component Market Research Delhi NCR

1. 1

2. Tex Corp. Ltd. has been in the field of Zippers
manufacturing since quite a long time and has gained
enough expertise with the consistent efforts over quality
& quantity manufacturing.
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3. MARKETING RESEARCH
• The function that links the consumer, customer, and
public to the marketer through information.
• Marketing Research plays a very significant role in
identifying the needs of customers and meeting them
in best possible way.
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4. Marketing Research is of use to the following:-
• Producers
– To know about product potential in the market vis-à-vis the total
product;
– New Products;
– Various brands;
– Pricing;
– Market Structures and selection of product strategy, etc.
• Business and Government
• Marketing Research helps businesses and government in focusing
attention on the complex nature of problems faced by them. For
example:
– Determination of Gross National Product; Price, and per capita
income;
– Expenditure levels and budgeting;
– Agricultural Pricing;
– The economic policies of Government; and
– Operational and planning problems of business and industry 4

5. The Marketing Research Process
• 1. Define the problem. Make sure that you really 'need' to
know something. The problem then becomes the focus of the
research. For example, why are sales falling?
• 2. How will you collect the data that you will analyse to solve
your problem? Do we conduct a telephone survey, or do we
arrange a focus group?
• 3. Select a sampling method. Do we us a random sample,
stratified sample, or cluster sample?
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6. • 6. How will we analyse any data collected? What software will we
use? What degree of accuracy is required?
• 5. Decide upon a budget and a timeframe.
• 6. Go back and speak to the managers or clients requesting the
research. Make sure that you agree on the problem. If you gain
approval, then move on to step seven.
• 7. Go ahead and collect the data.
• 8. Conduct the analysis of the data.
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7. • 9. Check for errors. It is not uncommon to find errors in
sampling, data collection method, or analytic mistakes.
• 10. Write your final report. This will contain charts, tables, and
diagrams that will communicate the results of the research, and
hopefully lead to a solution to your problem. Watch out for
errors in interpretation.
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8. RESEARCH OBJECTIVES
• Tex Corp Ltd., with its existing set-up of die-casting and
electroplating, is in a position to manufacture various types of
metal components and therefore, is exploring to develop it, as
an additional business line. An elaborated market research
was therefore, undertaken to decide a suitable entry strategy.
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9. Major Objective:
• To Propose Marketing Strategy for Tex Corp Ltd. to enter
Metal Component Market.
•
Minor Objectives:
• To study Metal Components’ Industry Overview.
• To study Metal Components’ Market Potential and
Growth.
• To study Customers Expectation (Quality, Service, Price,
Lead Time).
• To Propose Characteristics of Products (Quality, Price,
Service).
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10. Scope of study:
The study gives a clear picture of the market scenario of
Delhi NCR region, for metal components.
10

11. Research methodology
• The arrangement of condition for collection and
analysis of data in a manner that aims to combine the
relevance to the research purpose with economy in
procedure.
Sample Size:
• The data was collected through filling up the
questionnaires, getting data from Manufacturers &
Buyers and market survey. The sample size taken for
the study is 41 for the Buyers and 8 for the
Manufacturers.
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12. Data Collection:
Primary Data:
• The first hand information bearing on any research is the one which has
been collected by the researcher. The data here is collected through:
• A structured questionnaire
• Personal interview of both Manufacturers and Consumers.
• Observation
Secondary Data:
• The data which has already been collected, complied and presented earlier
by any agency may be used for purpose of investigation. The data collected
through:
• Various Government and non Government agencies and other sources
available on internet.
12

13. Limitations Of The Study:
• Research is based on the collection of data from both primary
and secondary sources.
• There may be a possibility of biasness on the part of some
respondents, but very much care has been taken to make this
report unbiased.
• Some respondents might not give the correct information due to
their lack of interest and shortage of time.
• Time constraint.
• All the information, which is taken, is biased on primary and
secondary data that has its own limitations. 13

14. DATAANALYSIS
• PRODUCT
Saddlery & Harness 2.45%
Finished Leather 18.39%
Footwear 44.33%
Leather Garments 12.60%
Leather Goods 22.23%
% Share Of Leather Products in Export Performance (2009-10)
14

15. Estimated production capacities:
• Based on the data from Council for Leather Exports, the total
market capacity is:
Items Capacity (Per Month)
Leather Footwear 75750000 pairs
Non-leather footwear 88000000 pairs
Leather Garments 1333333 pieces
Leather Goods 5250000 pieces
15

16. Estimation of the market size
• Based on the data collected through market research, the estimated
market size is :
• Sample Size: 41 manufactures (appx. 10% of total market)
S no. Metal Components Average Monthly Consumption
1 Buckle 20,11,533 Pieces
2 D Ring 14,38,866 Pieces
3 O Ring 3,44,666 Pieces
4 Dog Hook 3,34,600 Pieces
5 Button 1,62,03,266 Pieces
6 Rivet 1,76,61,333 Pieces
7 Eyelet 1,69,46,333 Pieces
8 Triangle 63,000 Pieces
9 Adjuster 4,90,000 Pieces
10 Square 3,00,000 Pieces
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17. Total market potential can be estimated to be:
S no. Metal Components Average Monthly
Consumption
Average
price (Rs.)
Total
component
value (Rs.)
1 Buckle 20,11,533 Pieces 15 3,01,72,995
2 D Ring 14,38,866 Pieces 8 1,15,10,928
3 O Ring 3,44,666 Pieces 8 27,57,328
4 Dog Hook 3,34,600 Pieces 12 40,15,200
5 Button 1,62,03,266 Pieces 2.5 4,05,08,165
6 Rivet 1,76,61,333 Pieces 0.25 44,15,333
7 Eyelet 1,69,46,333 Pieces 1 1,69,46,333
8 Triangle 63,000 Pieces 6 3,78,000
9 Adjuster 4,90,000 Pieces 7 34,30,000
10 Square 3,00,000 Pieces 7 21,00,000
Total Potential of metal components Market (Sample Size: 41
manufactures (appx. 10% of total market)
11,62,34,282
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18. Type of Metal Components Used:
• D-Ring
• O-Ring
• Buckle
• Dog Hook
• Snap Hook
• Rivets
• Eyelets
• Buttons
• Adjusters
• Square
• Triangle
• Badges
• Pendant
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19. • Logo
• Connecter
• Reducer
• CD- Ring
• TD-Ring
• Belt Buckle Pin
• Double C-Link
• Double D-Link
• Belt Adjuster
• Suspender Buckle.
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20. Finishes
• Nickel
• Brass
• Satin Nickel
• Antique Brass
• Black Nickel
• Mirror Nickel
• Nickel Free Nickel
• Antique silver
• Copper
• Antique Copper
20

21. • Buffed Nickel
• Epoxy Painted
• Real Gold
• Black Copper
• Crome
• Tin
• Natural
• White Bronze
21

22. Maximum Preferred Finishes
• Based on the primary data, the most preferred finishes for the
overall apparel & accessories industry are:
• Scale of 0-40
31
21
15
9
20
1
4
Antique
Brass
Gun Metal Golden Antique
Silver
Silver Antique
Copper
Copper
Maximum Preferred Finish
Maximum Preferred Finish
22

23. • With the shift towards Leather/Non leather shoe industry, the
trend and use of preferred finishes, changes. The most
preferred finish in shoe industry are:
• Scale of 0-8
3 3
5
6
1 1
Gun Metal Antique
Brass
Golden Silver Copper Antique
Silver
Preferred Finishes (Shoe Industry)
Preferred Finish (Shoe Industry)
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24. Sizes
Metal Components Size
1 Buckle 8mm,10 mm,12 mm,15 mm, 20
mm,25 mm, 30 mm,38 mm
2 D-Ring 20 mm, 25 mm,30 mm,38 mm,40
mm,50 mm
3 O-Ring 20 mm, 25 mm,30 mm,38 mm,40
mm,50 mm
4 Dog Hooks 10-50 mm
5 Triangle 20 mm, 25 mm,30 mm,38 mm,40
mm,50 mm
6 Adjusters 18 mm, 25 mm,32 mm,38 mm
7 Eyelets 8 mm, 12 mm,15 mm, 40 mm
8 Rivets 3 mm- 9 mm
9 Buttons Customized
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25. Buckle:
• Scale: 0-32
7
14
1 1
25
1
27
3 2
5
20mm 25mm 26mm 28mm 30mm 32mm 38mm 40mm 42mm 50mm
Most Preffered Sizes-BUCKLE (apperel& bag
Industry)
Most Preffered Sizes-BUCKLE (apperel& bag Industry)
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26. The Scenario changes as focused towards shoe industry:
• Scale: 0-8
1
7
6
1
3
5
1
8mm 10mm 12mm 14mm 15mm 18mm 20mm
Most Preffered Sizes-BUCKLE (Shoe Industry)
Most Preffered Sizes-BUCKLE (Shoe Industry)
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27. Price Comparison
9.4
9.6
9.8
10
10.2
10.4
10.6
10.8
11
11.2
Tex Ansun
Rs.
D Ring 45mm Antique Brass
D ring 45mm Price in INR
D ring 45mm Price in INR
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28. 0
5
10
15
Tex Ansun Metal Ware
Rs.
D Ring 38mm Antique Brass
Price of D ring 38mm
Price of D ring 38mm
0
2
4
6
Tex 26mm Ansun 25mm Vishal 25mm
Rs.
D Ring Antique Brass
D Ring Price comparision
Buckle Price comparision
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29. PROMOTION
Factors Effecting Buyers Decision:
The Buyers were asked to scale their priority on a scale of 1-
8 while purchasing metal components. The priorities were:
• Quality
• Price
• Delivery
• Service
• Customization
• Availability
• RSL/Heavy Metals
• Quality Standard
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30. Based on the research, the factors effecting buyers decision were:
• Scale: 40-320
295
205 212
75
132
193
138
120
Basis of Influence in Buying Decision(Overall)
Basis of Influence in Buying Decision(Overall)
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31. • When we take the buyers who purchase only from local
market, the factors effecting the buying decision were:
• Scale: 20-360
142 143
101
42
89
100
57
45
Basis of Influence in Buying Decision (Sadar Bazar & Local
Market)
Basis of Influence in Buying Decision (Sadar Bazar)
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32. Gaps
• Parameters Where Metal Component Manufacturers are
Lagging
• Scale: 0-40
32
16
25
17
30
11
Product Range Product
quality
Lead Time Customization Price Quality
Standard
Parameters where the Manufacturers are Lagging Behind (
According to Buyers)
Parameters where the Manufacturers are Lagging Behind ( According to
Buyers)
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33. FINDINGS
• Metal component market can broadly be divided into 2
categories-
Market A Market B
Consumption Purely Export Oriented Export & Domestic
consumption
Supplier China, Taiwan , Hong
Kong
Aligarh, Sadar Bazaar,
Govindpuri
Finish Super Fine Mirror Finish Fine Finish
RSL Compliance RSL Compliance followed
strictly
RSL Compliance followed
up to some extent
Lead Time 28-35 Days 15-28 Days 33

34. RECOMMENDATION
• PRODUCT RECOMMENDATIONS:
• Buckle in size 30 mm should be developed.
• The Thickness of wire should be developed to match the competitors.
• 12 mm & 18 mm pin buckle should be developed to tackle shoe
manufacturing industry.
• To be a long run player in metal component market & to hold the
maximum market share, Tex has to increase the product range and
product line such as Dog Hook, Adjuster, Badges, Squares and that too
in different sizes & finishes. (The preferred sizes for Dog Hook &
Adjusters are given in chapter 5).
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35. • To be among the preferences of the buyers, Tex has to develop
products according to their demand.
• To enter into market A, Tex has to improve its quality
standards, follow RSL norms very strictly and should have
expertise in super fine crystal mirror finish.
• RSL compliance is a must in upcoming scenario. Product
should not fail in corrosion resistance test.
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36. PRICING RECOMMENDATIONS:
• The price of TEX compared to competitors of Market B
(Siroski Noida, Goyal Groups Agra, DMJP Sadar, Vishal
Fittings Sadar, SPM Govindpuri, Ansun & Metalware) is
comparatively low.
•
• The price of TEX should be near to its competitor Ansun .
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37. • RECOMMENDATIONS REGARDING
COMPETITORS:
• As the global scenario of export is increasing, Tex has got
a lead in producing Nickel free & Lead free metal
component through its die cast facility.
• Tex can have an edge over competitors (Metalware,
Siroski, Metal Craft, and Ansun) with lesser lead time.
• To be among the preferences of the buyers, Tex has to
develop products according to their demand.
• With the prevailing capacity, TEX is in a good position to
enter Market B Segment. In most of the cases, TEX
fulfills the quality & finish requirements and demands of
Market B Segment.
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38. • As Most of the buyers are located in NCR Region, thus, the
buyers will prefer a local supplier for their metallic component
inventory to cut down the delivery time giving TEX an upper
hand.
• As TEX is already a nominated zipper supplier for many
international brands, it has a distinct advantage to get quick
nominations.
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39. OTHER RECOMMENDATIONS:
• Tex should focus on Footwear manufacturing Industry as
the growth rate is more in comparison to Leather garment
& Leather goods manufacturing. (Refer- Figure 5a and
5b).
• Sales Executive should be sent to buyers with complete
samples catalogues and soft copies for product
promotional purpose.
• To enter into market A, Tex has to improve its quality
standards, follow RSL norms very strictly and should
have expertise in super fine crystal mirror finish.
• Start of bulk deliveries in 7-8 working days is OK with
customers. 39

40. Following is the list of companies where Tex Corp. can approach at
this initial stage for entering Metal component market:-
• Excelsior Crafts, Faridabad
• Adigear International, Mayapuri Industrial Area, New Delhi
• Roshan Minar International, New Delhi
• Accessory Archade, Janakpuri, New Delhi
• Bharat Enterprises, Gurgaon.
• Simran Impex, Okhla, New Delhi.
• Fashion House, Okhla, New Delhi.
• Atlantic Leather Line, Okhla, New Delhi.
• Drishti Apparels, IMT Manesar.
• Gulati Export House, Gurgaon.
• Anaemica Art Center, Daryaganj, New Delhi.
• Orion Conmerx Pvt. Ltd., Gurgaon.
• Brumario Leather Co. Pvt. Ltd., Gurgaon.
• Jai Footwear Pvt. Ltd, Anand Parbat, New Delhi.
• Relaxo Footwear Ltd, Indralok, New Delhi.
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41. CONCLUSION
On the basis of the overall study done, Tex Corp. Ltd. has got an
opportunity to enter into the new business line of Metal
Components Tex, and should capitalize its current status of being
an MNC.
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42. Thank You
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