8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 1/26

 

ACKNOWLEDGEMENTS 

The successful completion of any task would be incomplete without the mention of people

who made it possible, whose constant guidance and encouragement crown all efforts with

 success.

 First of all I would like to thank the “GROHE India Pvt Ltd.” Company for giving me the

approval to do this project in the organization. I grateful thankful to Mr. Renu M isra (Managing

 Director) who has given this opportunity to study the organization in totality, which provided me

with the immense managerial, and production knowledge, which is used by their organization for

the moral support, encouragement and generous assistance. 

 I am thankful to Mr. Ravi Mamdapur (Regional Sales Manager) who has guided me to

take up this project and for all the hospitality that he has given me which has enabled to

complete my project on time. 

 I also thank the staff and workers who have co-operated with me in successfully

completing my project by providing valuable information and knowledge about the functioning

of the organization. 

I am very much thankful to Mr. Suni l Desai  Principal of people tree College of

 Business Administration Belgaum, for the support and encouragement to finish this report. I

thank my faculty guide Ms. Seneca Kalghatkar for coordinating the project work and giving me

the guidance. I am thankful to many individuals in the company for the encouragement and

 professional assistance.

KUBER RAIBAGI

5TH

 SEMISTER, BBA.

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 2/26

DECLARATION

I hereby declare that this project work is the result of my original work. The findings and

conclusion is based on the information collected by me during the study. I am solely responsible

for any errors in the work.

Date: Mrs. KUBER RAIBAGI

Place: Belgaum Registration No:

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 3/26

Abstract

This project is based on “problem solving”. As a part of course requirement the

students „Bachelor of business administration has to take up a project for a month.

The basic purpose of the project is to enable the students to expose the working of

any organization and manager, to relate the concept learned by the students to the working of the

organization, to understand the practical aspect of working of organization.

It aimed to diagnose the cause of company’s problems and to formulate programs for

improvement.

This project is on the study of ‘GROHE INDIA PVT LTD‟ The project is done based

on the information, manuals etc, given by the ‘Grohe India Pvt Ltd‟ 

The report initiates with brief introduction of company it covers many aspects of

‘Grohe India Pvt Ltd‟like Company profiles, scope, limitations etc. Finally this project report is

on “Consumer behavior of luxury sanitary ware” of „Grohe India Pvt Ltd‟ ends suggestions

and conclusion.

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 4/26

EXECUTIVE SUMMARY

This project deals with the behavior of end consumer of luxury sanitary ware. Today faucets &

showers are no more just the requirements for consumer, but a luxury commodity. India is agrowing market touching world standards in sanitary market. With advent of local guerilla in

sanitary market, competition for new entrants is tough in lower segment. Since upper middle

class income group in south asian countries like India is growing very rapidly, the consumption

of luxury items will also increase at a faster pace. Indian sanitary ware industry is worth

$700million.

We have focused on the brand awareness among builders, contractors, architects and end

consumers and tried to sneak into those factors which they look for a while buying any sanitary

 products. We also found out what are those cues and parameters which are prompting a

consumer from awareness to consideration. During this we also made some viral advertisement

to create awareness among Indian buyers. Since internet today, is the most cost effective &

extensive reach for consideration set. And we also studied distribution channel for the GROHE

India Pvt Ltd. Our area is Hubli, Karnataka. Hubli is the growing city in India with more than

150 running projects.

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 5/26

 

Contents

1.  Introduction

2.  Grohe A brief history

3.  4 P’s of Grohe

4.  Internship objective and task

5.  Research proposal

6.  Observation

7.  PCWS analysis of Indian sanitary ware market

8.  Suggestions

9. 

Appendicies

I.  Questionaire

II.  Research Calculations

III.  Refrence

IV.  Glossary

V.  Index

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 6/26

COMPANY PROFILE

 Name of the unit:- GROHE INDIA PVT LTD.

Location of the unit 14th Floor, Building no5, Tower A

DLF Cyber City, Phase III

Gurgaon –  122001

India Phone: ++91 124 493 3000

Call us toll free at 1 800 102 4475

Fax: ++91 124 493 3001

Website: http://www.grohe.co.in

Constitution:- Subsidiary company.

 Name of the managing

Director:- Mr. Renu Misra

Activities: - Manufacturing of faucets & shower(bathroom appliance)

Industry sector:- construction/infrastructure

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 7/26

INTRODUCTION OF THE COMPANY

GROHE India Pvt Ltd is a fully subsidiary of Friedrich Grohe AG of Germany. Grohe has

generated into the Indian market in 2005. It has mulled a joint venture with Indian sanitary giantHindustan Sanitary India Ltd. (HSIL). HSIL better known as Hindware has helped German

incumbents to use its experience. Grohe in india is targeting niche market of luxury highly

sophisticated and technologically advanced sanitary ware market which if experts are believed,

is increasing at a faster pace. Marketing mix of Grohe was interesting to study because it has

 product ranging from 2000 to 20000 INR. Also it distribution channel is very effective and

considered best in industry.

• 

Grohe India Pvt. Ltd. (GIPL) is a wholly owned subsidiary of Grohe, Germany

• 

Has completed three years of direct operations in India

•  Grohe recently launched its first Indian ‘GroheTechnology Centre’ in Bangalore in

 November 2009.

VISION MISSION & GOAL

•  Global vision is to become the market leader in every country they are present in by the

year 2015.

•  As experts in water technology, it has mission to develop superior showers with

outstanding features.

•  GROHE’s Goal is to see its place at the forefront of the industry in the coming year and

the coming decades.

•  It is companies objective to strike a perfect balance between perfect experience and

environment.

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 8/26

HISTORY OF THE COMPANY

Grohe AG is Europe's largest manufacturer of sanitary fittings, including kitchen and

 bathroom faucets/taps, and shower systems. Grohe has a worldwide market share of roughly

eight percent in this product segment. The Grohe corporate centre is located in

Dusseldorf, Germany, and it has offices in many parts of the world, including a US headquartersin Bloomingdale, IL. Grohe has six production sites, with locations in Portugal, Thailand, and

Canada, along with three in Germany. The company has 9,000 employees, 3,400 of them

working at its Chinese subsidiary Joyou.

1911 UNTIL 1990: FAMILY-OWNED

The company started as a ferric hardware factory in 1911 under the name Berkenhoff &Paschedag, located in Hemer, Germany; it was taken over by Friedrich Grohe in 1936, whofocused on sanitary faucets only. Before that, Friedrich used to work for his father'scompany Hansgrohe, founded in 1901. The first order from outside of Germany came in 1938. In1948, the company was renamed to Friedrich Grohe Armaturenfabrik. In 1961, by which timethe company had purchased a factory in Lahr/Schwarzwald, the company set up its firstsubsidiary abroad in France. A year later in 1962, Grohe acquired exclusive rights to producethe Moen Mixing Faucet, which mixes hot and cold water with a single lever. 

In 1968, Friedrich Grohe sold a 51% stake in the company to International Telephone &

Telegraph (ITT). During the '70s, Grohe openedsubsidiaries in the US, UK, Holland and

Belgium and introduced the ergonomic hand shower series Relexa.1982 saw the beginning of

 production at the new factory in Hemer-Edelburg. Friedrich Grohe died in 1983; in the following

year, his heirs bought back the part of the company which had been sold to ITT. In 1989, therewere some additions to the Lahr production site and a new logistics dept was opened at Hemer-

Edelburg.

1990S AND 2000S: INVOLVEMENT OF INVESTORS

In 1991, the company bought two other producers of faucets: Herzberger Armaturen GmbH from

the Brandenburg region andArmaturenfabrik H. D. Eichelberg & Co.

GmbH at Iserlohn in Westphalia. Grohe was also restructured as a public limited company. By

taking over the DAL group in 1994, the company acquired a production site in Porta Westfalica, Westphalia; at the same time, the company also acquired Tempress Ltd. of  Mississauga in

Ontario (Canada). At the Hemer site, new technology and factory control facilities were opened;

in 1996 saw the company expand to Portugal and Thailand. A new design centre followed at the

Hemer site in 1997.

In 1998, a group of investors working with BC Partners bought all available Grohe shares and

delisted the company in the following year, making the Grohe Holding GmbH company, owned

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 9/26

 by BC partners, into the majority owner of Grohe AG in 1999. BC partners sold the company to

a consortium of investors from the Texas Pacific Group and CSFB Private Equity (a subsidiary

of the Swiss Credit Suissebanking group) five years later in 2004.

In 2005, Franz Müntefering, chairman of the then ruling German Social Democratic party (SPD),

sparked a debate on capitalism by designating foreign private equity firms as "locusts".He made

TPG-owned Grohe his main example. The "locust" metaphor remained popular in German

 politics and media for years while the German government cited Grohe as an example for a

successful turnaround only three years later.

The company’s sales and profit figures had been stagnating for years, leading to a programme of

savings as of 2005. Around 500 production jobs were cut at sites in Germany and the Herzberg

factory was closed; the sites in Thailand and Portugal were expanded considerably. Through

2008, investments totalling 130 million euros were made in Germany in the area of production

technology and logistics.

PRESENT HISTORY

In 2012, Grohe AG’s revenues increased by 21 percent to 1,405 million euros; operating

 profits improved by 18 percent to reach 273 million euros, representing a return on revenue of

19.4 percent. Grohe is currently Europe’s biggest manufacturer of sanitary fittings and has eight

 percent of the worldwide market.The German market makes up roughly 15 percent of overall

sales. Currently, Grohe AG is owned almost 100% by Grohe Holding GmbH (there are still some

minority shareholders from the period in which Grohe AG was listed on the stock market).

Grohe Holding GmbH is owned by investors.

June 2010 saw a ruling against the European sanitary fittings industry by the  European

Commission. The Commission found that European manufacturers had operated a cartel between

1992 and 2002 and imposed a collective fine of 622 million euros. Grohe’s share of the fine

amounted to 54.8 million euros.The current Grohe board of directors, which took up business

after the period under investigation, introduced awareness programmes about competition law

and operates a zero-tolerance policy towards price-fixing.

In early 2011, Grohe acquired a majority stake in the leading Chinese sanitary fittings

 producer Joyou, making a successful public takeover bid. The aim of this takeover is above all tostrengthen Grohe’s sales infrastructure on the fast-growing Asian market. Grohe currently holds

a 72 percent stake in Joyou.

In May 2013, David Haines, chairman of Grohe, confirmed that, although the company is

examining all options for ending investor involvement, no concrete plans had yet been made.

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 10/26

Capital market experts estimate that Grohe would currently be valued at up to four billion euros

if it were to return to the stock market.

In September 2013, it was announced that Grohe had received the largest ever investment from a

Japanese company in the country. The firm is now almost entirely owned by the Japanese

 building materials company Lixil and Development Bank of Japan, after a €3 billion deal for

87.5 percent of the firm.

GROHE IN U.S

In 1975, Grohe opened a small office just outside Chicago and its representative, Urell, Inc. in

Massachusetts, began supplying European-style kitchen and bathroom fixtures to American

tradesman and retailers. The new venture was incorporated a year later as Grohe America,

Inc. and moved into a small warehouse-office complex. In order to keep pace with its rapid

growth, the company regularly upsized its premises: a section of a larger warehouse facility in

1978; a whole warehouse in Wood Dale in 1986, finally settling into today’s custom-built 90,000

square foot facility in Bloomingdale, Illinois, in 1993.[5] 

Sales figures doubled year after year as Grohe introduced a series of products such as

the Ladylux of 1983 –  the first pull-out spray kitchen faucet, including detachable hand-sprayand

snap-on accessories (also the first hand-spray with a filter for drinking water), on the US market

 –  or the Europlus of 1989, another pull-out spray faucet. In the early 1990s, Grohe introduced a

new designer finish "white" which increased sales dramatically for the next 7 years. Introductionof clear powder-coating in the 1980s resulted in the advent of polished brass and other finishes

with superior adhesion, solving a major problem in the industry. In the late 1990s, Grohe

replaced the powder-coated first generation of these products with stainless steel versions.

1979 saw the launch of the Grohmix thermostat line, able to regulate water temperature to within

one degree Fahrenheit of accuracy. As of 1980, Grohe also implemented water-temperature

regulation technology in its successful range of custom showers which is still a strong seller in

the marketplace due to its unique design.

These shower systems saw Grohe America take the step of advertising directly to consumers. For

commercial customers, Grohe introduced a new product line in 1989, following it up with a

showroom marketing program for wholesalers. In 1996, Grohe America launched its first

television advertisement campaign and started offering a limited lifetime warranty as of 1997. By

the mid-1990s, Grohe America was selling fixtures with a value of $38 million annually, with a

market share of 1.7 percent.

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 11/26

Grohe opened a 15,000 square-feet showroom for professional partners and visitors on Fifth

Avenue, New York in September 2011.[13] In February 2012, Grohe announced its US

headquarters will move from Bloomingdale, Illinois to New York City. 

Grohe Group S.A R.L. is the ultimate parent company of the group. The following shows astructure chart oh the group showing the company, its subsidiaries and the two parent companiesof the main operating entities –  Grohe AG and the publicly traded Joyou AG.

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 12/26

ORGANIZATION STRUCTURE

General Manager

Factory ManagerOffice Manager

Production Department

Marketing Department

Finance Department

R & D Department

Designing Department

H.R. Department

Maintenance Department

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 13/26

OBJECTIVE OF THE STUDY

1.  To understand the consumers buying behavior of luxury sanitary products.

2.  To prepare the database of future customers of grohe products.

3.  To do a competitors analysis of grohe India.

4.  To study supply chain flow of grohe India.

5.  To develop an advertisement for grohe India.

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 14/26

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 15/26

ANALYSIS AND INTERPRETAION OF THE CASE

The study is highly dependents upon the ratio analyses where the relationship between various

assets and liabilities are analyzed and plans and policies are executed.

The methodology adopted for this study is as follows:

Data source

Primary data:  I had visited the project workplace and studied the various aspect in

management systems by personal observation, discussion with the contractors, architects,

 plumbers and engineers of the various projects.

Secondary data: the relevant information for secondary data was collected from various

sources like various records maintained, through the company’s different manuals and

 procedures & through the survey.

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 16/26

RESEARCH METHODOLOGY

Sample size: As the company problem is consumer buying behavior the sample size will be 25.

The questionnaire were submitted to 5o consumers out of which the sample size 25. The 25

samples are been picked/selected randomly.

Statistical tools and techniques:

  Pie chart

  Doughnut graph

  Bar graph

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 17/26

 

INTERPRETATION

1. 

Your income group (per annum) for end consumers only.

a)  5-10lakhs

 b)  10-15lakhs

c)  15-20lakhs

d)  Above 20lakhs

In the above graph the income group of the consumers which is highest rated is between 5-

10lakhs and rest all are constant and the entire graphs also states that there is a constant income

group in Belgaum city the graph also states that the income of consumer also plays a importantrole in the buying behavior.

28%

24%24%

24%

5-10lakhs

10-15lakhs

15-20lakhs

above 20lakhs

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 18/26

 

2.  What appliance do you use/prefer to fit in your bathroom/kitchen?

a)  Jaguar

 b) 

Parry warec)  Kohler

d)  Others

In the above graph the brand which consumers prefer much can be understood here 52% of

consumers go for local brand and as usual 12% jaguar and 12% for parry ware and 24% of the

consumers for kohler brand.

12%

12%

24%

52%

ab

c

d

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 19/26

 

3.  Does product brand of appliance affect your choice?

a)  Yes

 b)  May be

c)   Not at all

The analysis in this graph was done on does brand choice affect their buying behavior and 56%

of consumers stated that no brand doesn’t affect their choice while buying. Whereas only 28%

consumers are affected by brand go on brand while making a choice.

28%

16%

56%

yes

may be

not at all

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 20/26

4.  What importance does bathroom have in your home?

a)  Very important

 b)  Important

c)   Not much important

d) 

Doesn’t matter

In above graph 48% consumers stated that the bathroom plays very important role their house as

and 40% stated that its important 8% not much important & 4% doesn’t matter. 

48%

40%

8% 4%

very importantimportant

not much important

doesn’t matter

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 21/26

5.  Are you satisfied with bathroom/ kitchen appliance? (Grohe brand).

a)  Satisfied

 b)   Neutral

c)  Dissatisfied

The above question was asked to only 15 consumers which were existing customer who were

using grohe brand appliance. Out which 47% are satisfied with grohe and 33% rated it as neutral

and 20% consumers were dissatisfied.

47%

33%

20%

satified

neutral

dissatisfied

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 22/26

6.  How do you rate advertisements from the following sources?(1 for low 5 for high)

7.  How much are you affected by the advertisement for your choice?

3

4

6

7

3

6 6

4

3

5

7 7

5

4 44

3 3

5

7

5 5

7

6 6

0

1

2

3

4

5

6

7

8

Print media Tv advertisement Mall media Fm/radio

advertisement

Billboards

1

2

3

4

5

S.no Sources

1 Print media (Newspapers, Magazines

etc)2 TV Advertisement

3 Mall Media

4 FM/Radio Advertisement

5 Billboards

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 23/26

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 24/26

 

a)  Daily

 b)  Twice a week

c)  Weekly

d)  Fortnightly

As internet is playing important role in today’s world and is one of the powerful media for

advertisement this question was asked how much consumers are been using internet in their day

to day life. In the above graph 53% of consumers use internet daily where as 27% consumers use

twice a week and so on.

53%

27%

15%

5%

daily

twice a week

weekly

fortnightly

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 25/26

9.  Do you think of changing your the appliances during renovation?

a)  Yes

 b)   No

In the following chart 72% of consumers stated that they think of changing their appliance while

renovating their bathroom/kitchen and 28% think that it’s not necessary to change.

72%

28%

yes

no

8/10/2019 Report GROHE

http://slidepdf.com/reader/full/report-grohe 26/26

10. How much are you willing to spend on bathroom/kitchen appliances?

a)  50000-1lakh

 b)  1-1.5lakhs

c)  1.5- 2lakhs

d) 

2- 2.5lakhs

In the above chart the 45% consumers think of spending 1.5to 2 lakhs on bathroom and kitchen

appliances & 27% are willing to pay 1-1.5lakhs.

23%

27%

45%

5%

50000-1lakh1-1.5lakhs

1.5-2lakhs

2-2.5lakhs