Market Potential of ROOTS 2012-13 office chairs

Market survey report

TABLE OF CONTENTS

INTRODUCTION SAMPLES:COIMBATORE-BANGALORE-COCHIN-CHENNAI

DETAILED REPORT(AREA WISE) CURRENT DETAILS OF CHAIRS 1. NO OF CHAIRS 2. BRAND WISE CLASSIFICATION 3. PRICE OF CHAIRS 4. COMFORT LEVEL EXPERIENCED 5. WARRANTY DETAILS 6. ANNUAL MAINTENANCE CONTRACT

PURCHASE DETAILS 1. FURNITURE PURCHASED FROM WHOM 2. BRAND CONSCIOUSNESS 3. ERGONOMIC FACTORS 4. MODE OF PURCHASE 5. FACTORS CONSIDERED DURING PURCHASE 6. REPURCHASE AND REPLACEMENT

EXPECTATIONS OF COMPANIES

1. P R I C E W I L L I N G T O P A Y

2. FACTORS COMSIDERED FOR SELECTION OF SUPPLEIRS PROBLEMS FACED WITH CHAIRS.

INTRODUCTION Talking about office furniture we can observe there will be chairs, tables and other stationeries and equipments inside an office room. Different types of chairs been used in offices are Executive chairs, Conference chairs, Staff chairs, Visitor chairs, Workstation chairs and Waiting chairs. These chairs are been selected on the basis of some factors like Price, Features, Comfort and Aesthetics and then followed by the quality of the suppliers and the services like Warranty, Annual Maintenance Contracts (AMC), Delivery Speed, After Sale Service etc. To find out the market potential of this office chairs we conducted a market survey. The survey was been conducted at Corporate offices, Hospitals, Colleges, Hotels Dealers and Distributors and other customers in Coimbatore, Chennai, Bangalore and Cochin. We basically collected details about the Brands of chairs used and the current types and details of chairs used in the organization and the expected features and factors from a chair in the Company.

A questionnaire containing around 18 questions were prepared for the survey and the data collection was done through direct face to face interview and through Mailed questionnaires

SAMPLES COIMBATORE List of Companies Interviewed:1. A i r c e l L t d

2. A-1 Chips and Exports (India) Pvt. Ltd 3. Cameron

4. C B a y S y s t e m s 5. G i l b a r c o ( V e e d e r - R o o t ) L & T

6. Hansen Transmissions 7. Pace Micro Technology(India) Pvt. Ltd 8. Tata Consultancy Services(TCS) 9. 365Media List of Hospitals Interviewed:1. G a n g a H o s p i t a l

2. GEM Hospital & Research Centre (P) Ltd

3. K o v a i M e d i c a l C e n t e r a n d H o s p i t a l L t d

List of Colleges Interviewed:1. INFO Institute of engineering 2. PSG Institute of Management

3. GRG Trust 4. PSG College of Technology List of Retailers/Distributors/Manufacturers Interviewed:1. Royal Agencies
2. S r i S a k t h i F u r n i t u r e M a r t

3. Elite Furniture Mart 4. Newman Agency 5. Godrej 6. Aavishkaar 7. Featherlite 8. Indroyal

COIMBATORE - REPORT IN DETAIL

CURRENT DETAILS OF CHAIRS

NUMBER OF CHAIRS
ORGANIZAT ION Airtel A 1 Chips CAMERON C Bay Systems Gilbarco Veeder(L&T) Hansen 30 300 750 EXECUTI VE 40 VISITO RS 200 ALL TYPE 300 20

150

500

Pace TCS 365 Media Ganga Hospital Gem Hospital KHCH INFO Institute PSGIM PSG Krishnamma l PSG Tech

17 240 200

100 100 50 1500

40

200

2000 300

1500 1000

100 160 350

200

2000

BRAND WISE CLASSIFICATION The below Bar Chart explains which brand is preferred much by the customers in Coimbatore. * Others Vector, Bharathi Equipments, Infinity Modules, Maruthi, Newman Agencies, Imported furnitures.

PRICE OF CHAIRS PRICE 500-1000 1000-2000 2000-3000 3000+

Airtel A 1 Chips CAMERON C Bay Systems Gilbarco Veeder(L&T) rHansen Pace TCS 365 Media Ganga Hospital Gem Hospital KHCH INFO Institute PSGIM PSG Krishnammal PSG Tech

CBay L&T

PSGIM

365 Media KMCH INFO

Airtel A 1 Chips CAMERON Hansen Pace TCS Ganga GEM GRG PSG Tech

COMFORT LEVEL EXPERIENCED BY THE EMPLOYEES IN THE ORGANIZATION

Most of the companies are satisfied with the office furnitures been used in their organization and among the companies interviewed we can see that companies like Pace and Cameron considers the chair quality as excellent. Companies like Hansen, CBay, A-1Chips, KMCH, GEM, Ganga, PSG Tech, INFO, L&T, TCS, Aircel, 365Media considers the quality of chairs as good and PSGIM and GRG considers it to be only average. 6% of the companies considers the chairs to be Excellent, 81% considers it as Good and the remaining 13% as Average. WARRANTY DETAILS

Most of the companies receives a warranty of 1 to 2 years for the chairs and some receive upto 5 years of warranty for the chairs.

Expected warranty by companies in Coimbatore is given below:-

ANNUAL MAINTENANCE CONTRACT This is the contract signed by the furniture supplier to take care of the repairs and maintenance of the furniture. Among the companies in Coimbatore only few companies like Hansen

Transmission, PSG Tech, INFO and TCS have signed this with the suppliers and some provides this on the basis of the requirements of the company

80% of the companies interviewed in Coimbatore have signed an Annual maintenance contract with the suppliers of furniture and 20% doesnt get this benefit.

PURCHASE DETAILS FURNITURES PURCHASE

Most of the companies purchases the furniture directly from the manufacturers and some purchases it from the Distributors. We can see from the above chart that around 88% purchase from Manufacturers and 13% from Distributors and Rarely from the Retailers. BRAND CONSCIOUSNESS

From the companies interviewed we can find that around 69% of the companies are brand conscious while purchasing chairs and 31% are not. ERGONOMIC FACTOR

Among the companies selected we can see that around 88% of the firms look afer the ergonomic factors (Comfort, Features, Aesthetics) of the furniture during purchase and 13% doesnt give much importants to this.

MODE OF PURCHASE 13% of the companies prefer cash on delivery and 80% prefer credit purchase and the remaining 7% prefer installment basis for purchasing the furnitures

FACTORS CONSIDERED DURING PURCHASE OF CHAIRS

From the above pie chart we can conclude that most of the companies see the aesthetics and features of the chairs and then the price and then finallycomfort. Of the customers 34% of them give importance to aesthetics and 27% of customers

give importants to features. 26% considers price and remaining 14% considers comfort obtained from the chair.

REPURCHASE AND REPLACEMENT OF CHAIRS

REPURCHAS E 3 YEARS ONCE IN A YR 5 YRS ONCE NIL 6 MONTHS NIL NIL 5 YEARS ONCE NIL 2005 NIL AFTER 5 - 10 YEARS 3 MONTHS BACK NIL NIL 2-3 YEARS 8 YEARS BEFORE YEARLY REPLACEME NT 2008

ORGANIZATIO N Airtel A 1 Chips CAMERON C Bay Systems Gilbarco Veeder(L&T) Hansen Pace TCS 365 Media Ganga Hospital Gem Hospital KHCH INFO Institute PSGIM PSG Krishnammal PSG Tech

EXPECTATION OF THE COMPANIES PRICES WILLING TO PAY FOR THE CHAIRS

WORKSTATIO N 2000

ORGANIZATIO N Airtel

EXECUTIVE 5000

VISITORS 8000

A 1 Chips CAMERON C Bay Systems Gilbarco Veeder(L&T) Hansen Pace TCS 365 Media Ganga Hospital Gem Hospital KHCH INFO Institute PSGIM PSG Krishnammal PSG Tech

3000+ 20000 6000-6500 2000-3000 3000+

500

500

1000 3000+ 3000+

20000 3000 3000+ 3500 7000-9000 3000-4000 2500-3000 2500-3000 6000 5000 1000-1500 3000 1000 1000 1400 300 3000 1500 200 2000

FACTORS CONSIDERED FOR SELECTION OF SUPPLIERS From the above table and pie chart we can find that most of the customers select their suppliers on the basis of Delivery speed, Brand Equity, Reliability and After Sale Service. PROBLEMS FACED WITH CHAIRS IN THE ORGANIZATIONS
ORGANIZATIO N Airtel A 1 Chips CAMERON WHEELS, HYDRAULIC, UPHOLSTERY NIL NIL

C Bay Systems Gilbarco Veeder(L&T) Hansen Pace TCS 365 Media Ganga Hospital Gem Hospital KHCH INFO Institute PSGIM PSG Krishnammal PSG Tech

WHEELS(CASTERS),HYDRAULIC PUMP, BASE WEIGHT BALANCING WHEELS, HYDRAULIC PUMP NIL NIL GENERAL SERVICES NIL

HANDLE PROBLEM, PVC CHAIR TOP PROBLEM, LEG BENDING, WHEELS, STEA LOCK TYPE BUSH AVAILABILITY HANDLE PROBLEM, BACK REST, HEIGHT ADJUSTMENT WHEELS NIL REAPIRS N MAINTENANCE BACK REST UPHOLSTERY, WHEELS

BANGALORE List of Companies Interviewed: 1. Amagi 2. Allscripts 3. Bosch 4. Continental 5. Flextronics 6. Mahindra Satyam 7. Siemens 8. SGS 9. 24/7

Other organizations Interviewed:

1. M a n i p a l H o s p i t a l

2. IIM Bangalore BANGALORE - REPORT IN DETAIL

CURRENT DETAILS OF CHAIRS

NUMBER OF CHAIRS
ORGANIZATION EXECUTIVE VISITORS ALL TYPE

Amalgi Allscripts Bosch Continental Flextronics Mahindra Satyam Siemens SGS 24/7 Manipal Hospital IIM Bangalore 90% 10% 5000 1000 475 5 4500

80

1200 30 5000

600 3000 600700

BRAND WISE CLASSIFICATION

The below Bar Chart explains which brand is preferred much by the customers in Bangalore. * Others Euro furniture, Pan Furniture, Garnier, Godrej.

PRICE OF CHAIRS PRICE Amalgi Allscripts Bosch Continental Flextronics Mahindra Satyam Siemens SGS 24/7 Manipal Hospital IIM Bangalore 500-1000 1000-2000 2000-3000 Manipal 3000+ Allscripts Bosch Continental Siemens 24/7 Amagi

COMFORT LEVEL EXPERIENCED BY THE EMPLOYEES IN THE ORGANIZATION

Most of the companies are not satisfied with the office furnitures been used in their organization and among the companies interviewed we can see that companies like Amagi

and SGS considers it as excellent and continental considers it average. Companies like Allscripts, Bosch, Flextronics, Mahindra Satyam, Siemens, 24/7 and Manipal Hospital considers the chairs used as good. 27% of the companies considers the chairs to be Excellent, 64% considers it as Good and the remaining 9% as Average. WARRANTY DETAILS Most of the companies receives a warranty of 2 to 5 years for the chairs and some receive less than 2 years of warranty for the chairs.

Expected warranty by companies in Bangalore is given below:-

ANNUAL MAINTENANCE CONTRACT This is the contract signed by the furniture supplier to take care of the repairs and maintenance of the furniture. Among the

companies in Bangalore only few companies like Allscripts, Bosch, Continental, Flextronics, Siemens and SGS have signed this contract with their furniture suppliers.

55% of the companies interviewed in Bangalore have signed an Annual maintenance contract with the suppliers of furniture and remaining 45% interviewed doesnt get this benefit. PURCHASE DETAILS FURNITURES PURCHASE

Most of the companies purchases the furniture directly from the Manufacturers and some purchases it from the Distributors. We can see from the above chart that around 67% purchase from Manufacturers and 33% from Distributors and Rarely from the Retailers. BRAND CONSCIOUSNESS

From the companies interviewed we can find that around 73% of the companies are brand conscious while purchasing chairs and 27% are not.

ERGONOMIC FACTOR

Among the companies selected we can see that around 82% of the firms look afer the ergonomic factors of the furniture during purchase and 18% doesnt give much importants to this. MODE OF PURCHASE From the Companies and Institutions interviewed in Bangalore we can conclude that all the Corporate their prefer to purchase the furniture on Credit basis. FACTORS CONSIDERED DURING PURCHASE OF CHAIRS

From the above pie chart we can conclude that most of the companies see the aesthetics and features of the chairs and then the price and then finally comfort. Of the customers 32% of them give importance to aesthetics and 26% of

customers give importants to features. 25% considers price and remaining 17% considers comfort obtained from the chair.

REPURCHASE AND REPLACEMENT OF CHAIRS

ORGANIZATION Amagi Allscripts Bosch Continental Flextronics Mahindra Satyam Siemens SGS 24/7. Manipal IIM Bangalore

REPURCHAS REPLACEME E NT EVERY 1 TO 2 MONTHS 2 YEARS 2006 ONCE IN 3 YEARS 5 YEARS 10 YEARS 5 YEARS ONCE NIL 8 YEARS BACK 2-3 YEARS 5 YEARS BEFORE 2 YEARS BEFORE 2 YEARS

EXPECTATION OF THE COMPANIES PRICES WILLING TO PAY FOR THE CHAIRS ORGANIZAT ION Amagi Allscripts Bosch Continental Flextronics Mahindra Satyam Siemens SGS 24/7. Manipal IIM Bangalore EXECUTI VISITO VE RS 10000 4000-5000 3000+ 200$ 3000+ 5000 5000 WORKSTATI ON

3000 80-100$ FACTORS CONSIDERED FOR SELECTION OF SUPPLIERS

From the above table and pie chart we can find that most of the customers select their suppliers on the basis of Brand Equity, Reliability,After Sale Service and Delivery speed. PROBLEMS FACED WITH CHAIRS IN THE ORGANIZATIONS
ORGANIZATIO N Amagi Allscripts Bosch Continental Flextronics Mahindra Satyam Siemens SGS 24/7. Manipal IIM Bangalore PROBLEMS WITH CHAIRS WHEELS, HYDRAULIC PUMP NIL CASTOR WHEELS,ARM REST, MECHANISMS WHEELS,SQUEALING NOISER, BROKEN CHAIRS NIL BACK REST, WHEELS HYDRAULIC HYDRAULIC, PUSH BACK HYDRAULIC PUMP, WHEELS, BACKREST, HANDLES, UPHOLSTERY WHEELS, HYDRAULIC PUMP,BASE, EXPANSION OF PLATES WHEELS, BASE, HYDRAULIC PUMP

COCHIN

List of Companies Interviewed:

1. C h e r i a n V a r k e y

2. Data Devices
3. K i t e x L t d

4. S e v a n a G r o u p s

List of Manufacturers and Distributors

1. A b b h i s h e k D e c o r s 2. T h o m s o n F u r n i t u r e s

3. Indroyal 4. Damro COCHIN - REPORT IN DETAIL

CURRENT DETAILS OF CHAIRS

NUMBER OF CHAIRS
EXECUTIVE VISITORS ALL TYPE

ORGANIZATION

Cherian Varkey Data Devices Kitex Ltd Sevana Groups

20

36 16

300

60 250-300

BRAND WISE CLASSIFICATION The below Bar Chart explains which brand is preferred much by the customers in Cochin.

*Others Regal and Royal Furnitures and most of the companies use furniture manufactured by Godrej or Damro. PRICE OF CHAIRS

PRICE

5001000

1000-2000

2000-3000

3000+

Cherian varkey Data Devices Kitex Ltd Sevana Groups

Sevana

CVC Data Devices Kitex

COMFORT LEVEL EXPERIENCED BY THE EMPLOYEES IN THE ORGANIZATION All the companies are satisfied with the chairs been used in their Organization and rated its comfort level as Good WARRANTY DETAILS All the companies receives a warranty of 1 to 2 years for the chairs and none of them have signed a Annual Maintenance contract for the Furnitures. Expected warranty by companies in Cochin is given below:-

PURCHASE DETAILS

FURNITURES PURCHASE

From the above pie chart we can find that the companies purchase furniture from the Distributors and Manufacturers and rarely from the Retailers. BRAND CONSCIOUSNESS

From the companies interviewed we can find that around 75% of the companies are brand conscious while purchasing chairs and 25% are not. ERGONOMIC FACTOR

Among the companies selected we can see that some give importance to the ergonomic features of a chair and some do not consider that.

MODE OF PURCHASE From the Companies interviewed in Cochin we can conclude that for some of the Corporate their preferred mode of purchase for furniture is Cash basis and others Credit basis. FACTORS CONSIDERED DURING PURCHASE OF CHAIRS

From the above pie chart we can conclude that most of the companies see the aesthetics and features of the chairs and then the price and then finally comfort. Of the customers 35% of them give importance to aesthetics and 28% of

customers give importants to features. 23% considers price and remaining 15% considers comfort obtained from the chair.

REPURCHASE AND REPLACEMENT OF CHAIRS

REPLACEMEN ORGANIZATION Cherian Varkey Data Devices Kitex Ltd Sevana Groups REPURCHASE NIL 3 YEARS 3-5 YEARS 3-4YRS Jan-11 T

EXPECTATION OF THE COMPANIES PRICES WILLING TO PAY FOR THE CHAIRS

ORGANIZATION Cherian Varkey Data Devices 500 -1000 1000-2000 Sevana 2000-3000 3000 + CVC Data Devices Kitex Ltd Sevana Groups Kitex Ltd

FACTORS CONSIDERED FOR SELECTION OF SUPPLIERS

From the above pie chart we can find that most of the customers select their suppliers on the basis of Brand Equity, Reliability,Delivery Speed and After Sale Service. PROBLEMS FACED WITH CHAIRS IN THE ORGANIZATIONS

ORGANIZATIO N Cherian Varkey

PROBLEMS

WHEELS, HANDREST ARM REST DAMAGE, WHEELS DAMAGE, HYDRAULIC

Data Devices Kitex Ltd Sevana Groups

PUMP WHEEL, BACKREST, FABRIC, HEIGHT ADJUSTMENTS REPAIRS

CHENNAI List of Companies Interviewed: 1. Alcatel 2. ExcelaCom CHENNAI REPORT IN DETAIL

CURRENT

DETAILS OF CHAIRS

NUMBER OF CHAIRS
ORGANIZATI ON Alcatel ExcelaCom 1000 550 EXECUTIVE VISITORS ALL TYPE

The Brands of chairs used by these companies are Hayward and Technik Group a Singapore based Company. PRICE OF CHAIRS

ORGANIZATI ON Alcatel ExcelaCom

500-1000

1000-3000

3000+

Alcatel ExcelaCom

COMFORT LEVEL EXPERIENCED BY THE EMPLOYEES IN THE ORGANIZATION

Of the two companies interviewed we can find that the employees of Alcatel consider the chairs in their organization as Excellent and ExcelaCom as Good. WARRANTY DETAILS

Most of the Companies in Chennai receives a Warranty of 1-5 years for the furnitures and Alcatel receives a warranty of 5 years and ExcelaCom 1 year and both companies expects to receive a warranty of 2-5 years for the office chairs. PURCHASE DETAILS

FURNITURES PURCHASE

The chairs are purchased directly from the manufacturers and not through Retailers or Distributors.

BRAND CONSCIOUSNESS

We can see that the customers are brand Conscious and also considers the Ergonomic styles and features of the chairs before purchase. MODE OF PURCHASE The Companies prefer basically Cash Purchase. FACTORS CONSIDERED DURING PURCHASE OF CHAIRS

From the above pie diagram we can find that the customers give more importance to Price and Aesthetics during purchasing a chair and then to Features and Comfort. 35% each for price and aesthetics and 15 % each for features and comfort

REPURCHASE AND REPLACEMENT OF CHAIRS

ORGANIZATI ON Alcatel ExcelaCom NIL 5 YEARS REPURCHASE REPLACEMEN T

EXPECTATION OF THE COMPANIES

PRICES WILLING TO PAY FOR THE CHAIRS

ORGANIZATI ON Alcatel ExcelaCom 4500 4000-4500 3000 EXECUTIVE VISITORS WORKSTATIO N

FACTORS CONSIDERED FOR SELECTION OF SUPPLIERS

From the two companies interviewed we can see that most of them give importance to Brand Equity and then to Delivery Speed and to After Sale Service and Reliability.

PROBLEMS FACED WITH CHAIRS IN THE ORGANIZATIONS

ORGANIZATI ON Alcatel ExcelaCom GAS LIFT ISSUE,SOUNDS,WHEELS,FOAM. HYDRAULIC SYSTEM PROBLEMS

CONCLUSION