A STUDY TO FIND UNDERLYING FACTORS

BEHIND HAND TOOLS PURCHASE & POTENTIAL

OF STANLEYWORKS IN KOLKATA HANDTOOLS
MARKET

Table of Contents

SERIAL NUMBER CONTENTS PAGE NUMBER

1 Executive summary 7
2 Company profile 8
3 Literature review 16
4 Methodology of study 25
5 Statement of objective 42
6 Research 42
7 Data analysis 48
8 Results and interpretation 49
9 Finding and 69

recommendation
10 Bibliography & references 73
11 Annexure 74

1
 List of Figures

Serial number Content of figure Page no.

1 Stanley works 8
2 SFS 9
3 Growth story 10
4 Consumer tools 10
5 Industrial tools 11
6 Golden hammer award 13
7 Brands acquired by Stanley 14
8 Geographical reach in India 15
9 Market share 49
10 Frequency of purchase 50
11 Usage of hand tools 52
12 Worth of inventory procured 53
13 Source of information 54
14 Satisfaction level 55

15 Scree plot 63

List of tables

Serial no. Content Page number

1 Hand tools market share 49

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2 Frequency of Hand tools 50
3 Usage of hand tools 51
4 Worth of inventory 53
5 Source of information 54
6 Awareness about the product 55
7 Satisfaction level 55
8 Descriptive statistics 58
9 Correlation matrix 1 58
10 Correlation matrix 2 59
11 KMO Barttlet Table 1 59
12 KMO Barttlet Table 2 60
13 Anti image matrix 61
14 Total variance explained 1 62
15 Total variance explained 2 63
16 Communalities 64,65
17 Rotated component matrix 65
18 Reliability analysis table 1 67,68
19 Reliability analysis table 2 69

EXECUTIVE SUMMARY

3
Stanley works India pvt. Ltd is a subsidiary of United States based multinational organization
Stanley works ltd engaged in manufacturing & marketing of hand tools, electronic tools,
masonry tools, residential entry door hardware, consumer residential hardware, consumer
mechanics tools, and pneumatic precision assembly tools. Indian operation started in late 2007 to
take advantage of robust industrial growth & emerging market space. Company is in its nascent
stage, the processes are yet to be in place & operations are not focused to the fullest extent.
Company is experiencing challenges in areas like increasing market share, inventory
management, larger lead time in shipment, encountering competitors and locating potential in the
market (Kolkata).

Two months duration of summer internship process was dedicated to generate sales for the
company and to study the factors playing crucial role behind hand tools purchase. Thus finding
out shortcomings of Stanley works and recommending suitable solution to its problems.

The methodology involved data collection through questionnaire preparation and analyzing those
data by excel graphs (pie chart) and factor analysis by SPSS software to reach a suitable
conclusion.

On the basis of these observations, certain recommendations are submitted at the end of this
report. Some important one’s are- use of e-marketing, having a marketing calendar and sticking
to it, starting of newsletters and having a regional office ,plan for an acquisition and tagging up
with an automobile company amongst others.

If accepted, a few of these suggestions can result in a low-cost solution to the brand awareness
problems we face and harness more sales in the coming years to give Stanley an opportunity to
expand it’s business in this region.

Chapter I

4
INTRODUCTION:
1.1: Company Overview:

The Stanley Works, a 166 year old company is a worldwide manufacturer and marketer of tools,
hardware and specialty hardware products for home improvement, consumer, industrial and professional
use. The company stills bears not only Frederick Stanley's name but also the spirit and passion that drove
him to succeed where others failed .The Stanley Works is positioned to meet tomorrow's competitive
challenges and continue as a leading worldwide manufacturer and marketer. Our businesses are
Diversified in terms of products, geographic spread and channels of distribution. We have moved
effectively to expand our products into new market areas such as the Far East and Eastern Europe.

FIG: 1

Today, the Stanley name is known around the world as a reliable, guarantee of quality and value."The
secret of this company's success is an open one -- all who will may avail themselves of it, and all who do
so will succeed -- one word tells it all and that one word is – Excellence.
The Stanley Fulfillment System (SFS), created to encompass and improve upon Stanley’s long
Tradition of operations excellence is the heart of our business operations. It’s a continuous
Improvement program focused 100% on the needs of our customers and a comprehensive business
system that guides the way we work every day. SFS is at once our blueprint for success and our roadmap
for continued growth.
At the heart of SFS are three simple, customer friendly goals:
1. Improve Service
2. Increase Quality
3. Reduce Costs

5
Service, quality and costs have always been strengths at The Stanley Works. SFS is our
Commitment to making them even stronger.

FIG: 2

1.2: Growth:

In 1843, an enterprising businessman named Frederick Trent Stanley established a little shop in New
Britain, Connecticut to manufacture door bolts and other hardware from wrought iron. Mr. Stanley was
the first Mayor in town; he brought New Britain rail service, gas lighting and a reservoir-fed water
supply. In 1930, Stanley invented the tape rules. Stanley tools have built nearly every home, school,
church and hospital in maraca. Stanley Air tools build nearly every car and truck made in North America.
Millions pass through Stanley Automatic Doors each day.

With products sold in more than 130 countries, the Stanley® brand is recognized worldwide. From crisis
comes OPPORTUNITY. The chance to emerge BETTER than ever before. By remaining committed to
our guiding PRINCIPLES and Transforming a LEGACY established over a century ago. Today’s Stanley
is lean, flexible, diverse, and focused on long term GROWTH. Today’s Stanley is READY for tomorrow.

6
 FIG: 3

1.3: Stanley Platforms:

A) Consumer Tools.
A world leader in the design, development and delivery of tools, Stanley brings to market the strongest
and most innovative tools available. With thousands of products on the market and hundreds introduced
each year, Stanley develops the tools consumers need to get the job done.

7
 FIG: 4

Product categories:

Industrial hand tools and tool boxes, professional and industrial mechanics tools, electronic diagnostic
tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and crushers.

FIG: 5

B) Security Solutions:

An industry powerhouse with a global footprint, Stanley Security Solutions builds on Stanley’s
development of the first automatic door with integrated solutions that provide wall-to-wall security,
including doors, hardware, software and service. Stanley’s Security Solutions protect buildings, airports
and institutions all over the world.

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Key Brands:

Best® Access, Black®, co rush™, Frisco Bay™, HSM Electronic Protection Services,
Integrator.com™, ISR™ Solutions, Sergeant & Greenleaf™, Safe masters®, Senior
Technologies™,Stanley® Access Technologies, Stanley® Hardware The Stanley Security Solutions
Product Group offers a wide array of electronic security products,
Mechanical security products, integration software, and installation and support services for a diverse set
of industrial, institutional, and commercial facility applications.

Electronic security, access and safety products manufactured and tested to the industry’s highest
standards for functionality and long life. Applications include schools, banks, retail stores, hospitals,
government agencies, manufacturing facilities, colleges and universities, and utilities, to name a few.

Mechanical security products include patented keying, customized master key systems and quality door
and lock hardware. These combine to supply customers with mechanical access control that is cost-
effective and efficient.
C) Industrial Tools:

With our powerful professional tools, Stanley’s Industrial Tools Group delivers big tools for big jobs.
Recognized as leaders in Industrial Tools, our family of brands builds everything from cars and trucks to
roofs and floors.

Key Brands
Stanley®, Proto®, Husky®, Vida®, ZAG®, MAC®, Jensen®, Contact East®, Bo stitch®,
Taro®, Robotics®, LaBounty®, Innerspace®

Product categories:
Industrial hand tools and tool boxes, professional and industrial mechanics tools, electronic diagnostic
tools, pneumatic fastening tools and fasteners, hydraulic tools, shearers, breakers and crushers.

1.4: Awards & Recognition:

A steady stream of new and innovative products is the lifeblood of this company. In 2007, Stanley
introduced more than 100 new products, many of which have won awards for great distinctions. The

9
company itself has been triumphant in winning numerous awards throughout the years for packaging,
design innovation, communication and advertising. Most recently, Stanley won 4 Golden Hammer
Awards in 2007 and also won two IDEA awards in the 2007 International Design Excellence
Competition.2007 Golden Hammer Awards Presented by Home Channel News, Stanley was the recipient
of the following four awards at the 2007 Golden Hammer Awards Ceremony:
 The Vendor of the Year Award.
 The Innovator of the Year Award for overall new product development in all categories.
 The Gold Golden Hammer Award for the Hand Tools category.
 The Business to Consumer Communications Award for the Alien commercial featuring the Stanley®
MaxLife™ 369™ Tripod Flashlight.2006 Golden Hammer wards
Stanley was the only multiple award winner at the 22nd Annual Golden Hammer wards
Ceremony, presented by Home Channel News. The awards, based on votes from retailers and buyers,
were handed out at a ceremony in Las Vegas at the 2006 National Hardware Show. Stanley won:

 The Gold Golden Hammer Award for the Hand Tools category.
 The Business to Consumer Communications Award for the Stanley® Sharpshooter® Staple
Gun World's Weakest Man campaign.
The Innovator of the Year Award for overall new product development in all categories.

FIG: 6

Both the Gold Golden Hammer for the Hand Tools category and the Business to consumer
Communications awards are the highest awards in their category. For the Innovator of the Year award,
Stanley was voted number one in new product innovation across all 36 product categories.

1.5: Brands Acquired:

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Our innovative Consumer and Industrial products help people utilize their skills, express their creativity
and realize their visions on work sites around the globe. Brand names include Stanley®,FatMax®,
Husky®, Goldblatt®, Bostitch®, Jensen®, Mac®, Proto®, La Bounty®, Vidmar®,CST®, David White®
and ZAG®. Our Security Solutions brands include Stanley®, Best®,Blick® and Frisco Bay®.

FIG: 7

1.6: The India Story:

Stanley India, a fully owned subsidiary of Stanley Works, U.S. having its head quarters in Delhi, started
its operations in the year 2007. They import their own products manufactured in different countries and

11
sell those in Indian Market with the help of its extensive chain of distributors & dealers. In the past one
year, Stanley has been able to appoint more than 170 + distributors all over India.

All the products of Stanley are categorized into 3 segments: Hand Tools, Hardware, Assembly technology
and Hydraulics. In India, Stanley has launched nearly 2400 products, and is in the process of launching
more. Presently, Stanley India is focusing on Industrial Tools and Hardware business in India. Some of
the valued customers of Stanley India are Tata Motors, Aortal, Nokia, Mahindra,DMRC, etc.

The Indian operations of Stanley is involved the

· Laser Products
· Hardware
· Hand Tools
· Proto

Geographical Reach in India:

12
 FIG: 8
Stanley Head Office (Delhi-blue)
Stanley India Warehouse (near gorgon-yellow)
Proto Distributor (green box)
Hardware Distributor (yellow box)
Stanley Hand Tools Distributor (red dots)

Chapter II:

13
LITERATURE SUPPORT:

A) Introduction to Hand Tools:

The most popular product category is hand tools. The tools, which are operated by hands, are known as
hand tools. Hand tool products include a broad category of hand tools. Hand tool products are broadly
used in all type of industries. Today technology has become highly advanced but still the importance of
hand tools products cannot be ignored. In fact hand tool products are the backbone of all the industries; no
matter how advanced are the machines and technology used there. No industrial process can be executed
without using hand tools. As machine can never replace importance of mankind the same way automatic
tools can never take place of hand tools. The use of hand tools is must in every kind of industrial job but
sometimes it is not promptly noticeable. Even if the entire process is executed by automatic tolls and
machine, then too hand tools are required for additional jobs like packing, finishing etc. Furthermore the
Efficient working of machine is also dependant on hand tools. Hand tools are essentially required
For repair and lubrications of machines.

Apart from this they are widely used for home repairs, garages, electrical appliances etc. A kit full
Of primary hand tools products may be easily found at any home. Hand tools are used to execute
Very complex as well as simple tasks. Screwdriver is such a common hand tool product, which is
The part of every engineer’s tool kit as well as in every household. Spanners, screwdrivers, pliers,
Clamps, riveters, wrenches etc., are used for tightening and riveting the various screws etc.
Hand tool products are designed to carry easily. That’s why every vehicle has its own set of hand
Tool products. It can be used in time of any breaking of machine where one does not find any help.
Hand tool is a savior in time of need. A kit of hand tools products is like a first-aid box for
Machinery.

2.1: Hand tools Market:

2.1.1: Indian hand tools market:

India has a competitive advantage in the hand tool industry compared to other countries because
Of easy availability of raw materials, entrepreneurship skills and skilled labor at competitive

14
Wages. The hand tool industry as a whole is witnessing a shift of manufacturing base from
Traditional manufacturing countries in Europe and Taiwan to the developing world and this is a
Good sign for India to benefit. There has been an average growth of 17% per annum of the hand
Tool market in India for the last 7 years.

Estimated No. of Units in India 2500

SSI Units  95%
Large Units 7
Estimated number of workers  25000
Major Manufacturing regions Jallandhar/Nagpur

2.1.2: US hand tool market:

The U.S. hand tool industry is estimated to be a $6.2 billion. Hand tool demand, including power tool in
the United States is expected to rise 3.1% annually through 2011, reaching $14.3 billion, according to a
recently released report. There are more than 1,000 firms active in the U.S. hand and power tools
industry, ranging from small, privately owned firms to major corporations like Stanley Works, Black &
Decker, Bosch, Danaher and Snap-on etc. In fact these major companies accounted for nearly 55% of the
total sales in 2006.

2.2: Characteristics of the industry:

A labor Intensive Industry:

A source of employment to many, hand tools industry is basically labor intensive in nature, whose
development is of great importance for a competitive as well as a self-reliant industrial structure. The
manufacturers of hand tools produce a comprehensive range of hand tools, right from carpentry and
plumbing tools to striking and cutting tools.

Energy intensive industry: Apart from being a labor intensive industry, this industry is also an energy
intensive one. It is estimated in a recent study that in most economies adoption of energy efficient
processes and technologies can yield in energy savings of up to 30 to 50%. Effective contributor to the
economy: Adding positively to the income of a country, hand tools industry has contributed to economy
in terms of development and technology up gradation.

15
2.3: Consumption patterns of hand tools:
This depends on the following factors:
• Price
• Supply chain dynamics
• Product quality, design and safety
• Service
• Environmental factors

2.4: Driving forces for hand tool development:

Hand tools were in use since a long time and there has been a great change in the designs of
Hand tools from time to time. There were many factors that led to hand tool development.

2.4.1: Workers safety & health:

This is a very important consideration in today's designing of hand tools. Hand tools should be designed
in such a way so that they reduce wear and tear on the operator. Ergonomics hand tools have become very
popular, driven by an increased emphasis on worker safety and health. Workers nowadays prefer tools,
which reduce stress on the body and at the same time reduce employee time loss due to job-related
disabilities. Today, designers are coming up with more comfortable grips, reducing the weight of the
object, and making hand tools adjustable to different body types.

2.4.2: Chemicals:
When tools are designed, manufacturers consider ergonomics, performance and the environment. Besides
considering health and cleaning factors, hand tools are also produced nowadays using less chemicals,
using less environmentally damaging products which are not harmful to the human body and which
becomes an environment friendly product.

2.4.3: Cleaning:

One of the driving forces for change in hand tool has always been to make cleaning easier. For proper
functioning and durability of hand tools, it is necessary keep them clean after usage. In most cases, the
latest designs go for flexible handles which can be removed and cleaned separately as both the handle and
the tool blade are of different materials.

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2.4.4: Hand Tools Standards:

With the rapid advancement and expansion in the global trade, standardization of various products is very
necessary. The standards given to various products help in expanding international trade which in turn
bridges the quality gap between the manufacturers, suppliers and buyers of different nations. In hand tools
as well, standards play a vital role.

Standards are required in hand tools for the following reasons:

• They provide performance requirements.

• They provide safety requirements.
• Standards are available for all types of hand tools like pliers, screwdrivers, wrenches,
• Striking tools, torque instruments etc.
• These standards also include the various tests that are required to determine
• Conformance with the safety and performance requirements.

B) Introduction to Stanley Assembly Technology:

Stanley Assembly Technologies, an operating group of The Stanley Works was founded in 1963.
Originally called Stanley Air Tools, the group was renamed in 2002 to reflect the emphasis on technology
to deliver solutions of high value to customers. Assembly Technologies headquarters are located in
Highland Heights, Ohio, a suburb of Cleveland. The Stanley Works is global corporation, headquartered
in New Britain, Connecticut and has manufacturing and distribution in all world areas. An application
center is located in Troy, Michigan. Locations in Europe include the U.K., France, Germany and Italy.
Assembly Technologies Product Group provides solutions to the global assembly market, including the
motor vehicle industry. Core solutions include high-performance DC electric and pneumatic tightening
tools and controllers, conventional pneumatic articulating arms, torque tubes and Intelligent Assist
Devices for ergonomic material handling.

Tightening torque capacity ranges from 0.5 to 2000 Nm and above. Tool geometries include straight,
pistol, angle, hold & drive, crowfoot and tube nut outputs. Different levels of torque control, fit assembly
requirements ranging from the most critical, such as safety related vehicle components to non-critical.

17
Network systems enable plant-wide real-time assembly monitoring including statistical charting, trace
analysis, remote tool configuration and hardware diagnostics. With Robotics products, Stanley Assembly
Technologies leads the growing global market for Intelligent Assist Devices (IADs). Engineered to
dramatically improve the productivity, quality and ergonomic safety of assembly operations, IADs are
computer controlled, servo powered lift assist devices that assist workers in lifting and manipulating
heavy and awkward parts. A highly skilled direct sales force works directly with major customers and
supports distributors in all world areas. Assembly Technologies sales engineers and distributors are
qualified to analyze customer applications and propose the ideal selection of assembly and material
Handling components. Technical Service employees support customers from Assembly Technologies
offices and regional locations. Other services offered by Stanley Assembly Technologies are:

• Field service
• Training for customers’ support personnel
• Design consultation for special systems
• Maintenance programs
• Telephone support,
• Spare parts and repair,
Equipment calibration and tool system certification include:

• Auto and Light Truck Assembly

• Auto Parts and Components
• Large Truck Assembly
• Construction and Farm Machinery
• Recreational Vehicles

2.5: Products:

1) Thread Fastening:

i. Torque Equipment
ii. Standard Nut Runners
iii. Small QPM Tools
2) Engineered Systems:

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i. Articulating Arm
ii. Fixtured Tools
3) Material Handling:

i. Trolley
ii. Lift

2.6: Intelligent Assist Devices (IADs): IADs are a new generation of computer controlled, servo
powered assist devices that allow seamless collaboration of a human operator with computer controlled
machinery, delivering superior speed and precision in material handling. IADs are analogous to power
steering for material handling. Providing an improved method for moving heavy or difficult to handle
loads, these systems are poised to revolutionize the ergonomic handling industry, bringing unprecedented
levels of productivity, quality and ergonomic safety to manual processes.

2.7: Engineered System Applications:

A two spindle DC electric has adjustable bolt centers that can automatically change the tightening torque
level for each center’s dimension. Tool Positioning System for Cylinder Head Bolts a Stanley Tool
Positioning System uses a single QPM DC electric tool to sequentially tighten 26 cylinder head bolts.
This is a lower cost alternative to an additional multiple spindle system. The tool is mounted on an
articulating arm with a PLC that monitors the tool position and tool parameter settings. Wheel Bearing
End Play Tool A special wheel bearing end play tool automates the tapered bearing assembly operation.
Four Spindle Blocker Beam a four spindle fixture multiple enables fastening of the 8 bolts for the blocker
beam in two operations.

Shear Bolt Tool:

Assembly of tension control fasteners that have an integral controlled shear section for installation
without the use of torque-controlled nut runners.

2.8: Threaded Fastening Applications:

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QPM Door Strap Secure A QPM E12PB-17 pistol DC electric tool secures the door check strap that
prevents motor vehicle door from opening past 60 degrees.QPM Instrument Panel to Firewall Secure
QPM pistol DC electric tool for securing the automobile instrument panel to the firewall. Adaptive
Tightening Control (ATC) is a patented algorithm developed exclusively by Stanley Assembly
Technologies and is a standard feature of all QPM Assembly Systems. ATC automatically manages speed
and power to the motor of DC electric nut runners based on dynamic feedback during the course of each
and every rundown. If a single application consists of a mix of hard and soft joints with the same fastener
drive type and target torque, other tools must be set for the middle of the road (i.e. tolerate some
overshoot on the hard joint and increased cycle time on the soft joint). With ATC, each joint type is
sensed during that particular.

BENEFITS OF ATC:

• Dynamic loads Improve Quality: accurately tightens a wide variety of joints.

• Improve Productivity: optimize speed of tools on a wide variety of joints.
• Improve Ergonomics: no sudden speed changes from downshifting.
• Reduce Acquisition Cost: tools can be used on any assembly within their torque range.
• Reduce Installation Cost: tools don't need to "learn" the job before use in production.
• Reduce Maintenance Cost: smooth torque and speed transition minimizes on gearing.

MY learning and experience in the training:

Being a fresher it was my first work experience with an industry. So as far as the learning part goes it was
really enriching in all sense. My work was based on the B2B marketing. On the path of promoting our
product we had to meet general manager and assistant manager of different division in companies, for e.g.
purchase, maintenance, production etc. Overall it was an experience & learning based on interaction with
all these people in the tenure of the two months.

The whole learning process can be divided in two parts. Initial learning and getting acquainted with the
market knowledge and understanding how market functions in case of B2B hand tools selling.

INITIAL LEARNING PHASE:

20
This phase continued to initial fifteen days of my project. In this period I learnt about the distribution
chain being followed in Stanley. The chain was-

Stanley manufacturing hub (England, Taiwan, United States, China etc.)

Transport hand tools to Stanley warehouse in Gurgaon

Supplying the tools to the dealers place (overall India)

Supply to the customers on the basis of purchase order being generated

Stanley used to acquire their product from different countries. As they have acquired companies like
Proto, Facom, Britool in different countries, their manufacturing hub is also widely distributed in different
places. Depending on the brand the product is being supplied from different places. From the
manufacturing hub they are dispatching the tools to the warehouse in Gurgaon, India. From that hub they
are supplying hand tools to different dealers all over India. Those dealers in different cities are
responsible for supplying tools to the customers once the purchase order is being generated. According to
the company policy the dealers have to buy the tools from the company paying money on instant cash
basis. Stanley does not do business on credit basis. The risk completely depends on the dealer and their
capabilities to collect the payment from the customers. Stanley India is controlled from a single hub, set
up in Delhi. They do not have any permanent office in other cities in India. Stanley has appointed sales
officer for all particular zones in India. These people either themselves or by the help of some other zonal
sales officer control the sales process. All the responsibility for profitability and business development in
a particular zone depends on the sales officer. This is the initial structure the company is following. I got a
wide understanding of this structure in the initial days. I also got to deal with our dealers regarding the
data collection and proper understanding the process being followed locally in Kolkata.

This initial learning process was started by an orientation program in Delhi. In that three day long process
we were made aware of the product line of Stanley and the patented technologies Stanley is using like
maxi drive ,dynagrip etc. Then we were given an idea of the competitors of Stanley works in pan India
basis. We were also made aware of the HR policies being followed in Stanley works.

The next phase was grueling and filled with worthy experience. I was exposed to the hard realities of
market in Kolkata, where ninety nine percent of people are price sensitive. Stanley’s core competency is
quality. So there was a clear trade off in Kolkata market. The job was to project quality criteria in a
manner to the customer thus they get convinced to experience the product at least once. Stanley products
have very high recall value. Not only convincing the customers but me also focused on active data

21
collection part from the customers in this phase. I learnt negotiation skills, style of pitching for the
product, style of opening & closing a deal and following up to carry forward the relationship to close
many more deals in future. These learning were not only very crucial to me but also as I am opting for
marketing major, this will be useful throughout my life as the first ever experience.

In this phase I did close a deal of twenty eight thousand in Marathon electrical. This particular company
was converted to a complete Stanley customer in all the divisions. I also got success in companies like
ONGC, Garden reach Shipyard, EMT Megaton, Titular Wagon Limited, FOJ, Tractor India Limited etc.
All these places either I generated a successful enquiry or I have made a channel for Stanley hand tool’s
entry. This gave me a lot of confidence to go ahead in my marketing career. The most valuable learning
was definitely the relation building exercise. I did make some valuable relationships in the industry and I
also maintained a good relationship with the dealers and the regional sales officer in Kolkata. Biggest
hindrance on the path of relationship building was the short span of the internship process.

Overall this whole internship was a very valuable experience to me what will definitely direct me towards
the correct path ahead in my life in marketing career.

Chapter III

22
METHODOLOGY OF STUDY:
The project was executed in such a way that it was complete to the maximum extent covering all
the aspects and thus arriving at a suitable conclusion to meet the objective of the project. Few
Recommendations were also suggested to the company, which can help the organization to grow
Further and penetrate faster into the new markets. Also an S.W.O.T analysis & competition
analysis were attached to the report to make company aware of their competition, strengths and
opportunities as well as threats and weakness.
3.1: Reach of the Project:
The study was conducted covering the two major industrial regions in Kolkata and the places
around Kolkata. The reach of the project consisted of various industries and dealers located in
these above mentioned areas.
3.2: Research Plan:
The research was started with a well laid orientation program at Delhi. It was followed by a
research plan and weekly schedule once we started our work right here in Kolkata. The research
plan included the following important stages.
1) Data Sourcing or collection
2) Research Approaches towards the objective
3) Research Instruments used in the study
4) Sampling Plan for the research
3.2.1: Data Sourcing or collection:
Primary Research: Most of the data in this project was through primary research conducted in
Industries by me while performing the B2B selling process. It was done completely through
personal interviews, though a prepared questionnaire was used as guide line and which was later
filled summarized.
Secondary Research: Latest information available on internet about various industries and
dealers and about the hand tools market and it’s functioning in and around Kolkata. This
valuable data was also used apart from the data got through primary research, so as to have a
good study of the hand tools market in Kolkata and around industries.
3.2.2: Research Approaches towards the objective:
Approaching Customers/Industries:

23
1. Getting permission to enter an industry would complete almost 50% of your job as it would
give the platform to know about their operations. This gives the intern an exposure to the very
key processes done in an industry like production, logistics, finance and maintenance.
2. Get the details of the persons as many as possible in the industry through personal interview
method with the help from the questionnaire. Spend maximum time in the industry, so that you
would know what is their work environment i.e., whether they are using quality products, how
much of their operations are being done by contractors, what is their hand tools purchase
quantity and frequency of purchase, etc. These are very important parameter for the objective
verification.
3. Also try to find out how the process of purchase takes place, which is different for
Different companies, even sometimes between departments of a same company.
Closing the sale:
• This is very important for both the parties to build the relation, to run the business in a
flow and also for oneself as this give the motivation and adds more value to your work.
• To reach to this stage, one must be clear how much work he need to put in, which
operates as a funnel like, if u want to reach or market x sales at least you need to meet
10x customers.
• The time in which you would achieve this should also be planned in the similar way.

3.2.3: Research Instruments used in the study:

The research instrument was both qualitative and quantitative and hence consisted of personal
Interviews, which were guided by self, prepared Questionnaires. Each of the questionnaire
consisted of 17 questions on an average. The questions were both open ended and closed ended.
The closed ended questions were a diverse type consisting of single choices, multiple choices,
like scales and rating scales. The method of questionnaire preparation consist of few steps, The
design of a questionnaire will depend on whether the researcher wishes to collect exploratory
information (i.e. qualitative information for the purposes of better understanding or the
generation of hypotheses on a subject) or quantitative information (to test specific hypotheses
that have previously been generated).

24
There are no hard-and-fast rules about how to design a questionnaire, but there are a number of
points that can be borne in mind:

1. A well-designed questionnaire should meet the research objectives. Here the objective was to
find out potential for Stanley works in hand tools market in and around Kolkata and also have a
check on the logistics and consumer behavior in the hand tools market. Our questionnaire was
prepared with a clear focus to reach near to these objectives. Should obtain the most complete
and accurate information possible. The questionnaire designer needs to ensure that respondents
fully understand the questions and are not likely to refuse to answer, lie to the interviewer or try
to conceal their attitudes. A good questionnaire is organized and worded to encourage
respondents to provide accurate, unbiased and complete information.

2. A well-designed questionnaire should make it easy for respondents to give the necessary
information and for the interviewer to record the answer and it should be arranged so that sound
analysis and interpretation are possible.

3. It would keep the interview brief and to the point and be so arranged that the respondent(s)
remain interested throughout the interview.

There are nine steps involved in the development of a questionnaire:

1. Decide the information required.

2. Define the target respondents.
3. Choose the method(s) of reaching your target respondents.
4. Decide on question content.
5. Develop the question wording.
6. Put questions into a meaningful order and format.
7. Check the length of the questionnaire.
8. Pre-test the questionnaire.
9. Develop the final survey form.

Deciding on the information required

25
The first step is to decide what are the things we need to know from the respondent in order to
meet the survey's objectives. If we have already an idea about the kind of information to be
collected, but additional help can be obtained from secondary data. Further, a small number of
preliminary informal interviews with target respondents will give a glimpse of reality that may
help clarify ideas about what information is required.

Define the target respondents

We must define the population about which wishes to generalize from the sample data to be
collected. In marketing research, researchers often have to decide whether they should cover
only existing users of the generic product type or whether to also include non-users. Secondly,
we have to draw up a sampling frame. Thirdly, in designing the questionnaire we must take into
account factors such as the age, education, etc. of the target respondents. Here in case of project
the sample audience was the people in the industry I was meeting with. These were the people
who were attached with the process of procuring the hand tools in their respective industry. So
they were the correct people to approach for this kind of work. By profession they were
managers of different section of their respective company.

Choose the method(s) of reaching target respondents

The method of contact will influence not only the questions the researcher is able to ask but the
phrasing of those questions. The main methods available in survey research are:

 Personal interviews
 group or focus interviews
 mailed questionnaires
 telephone interviews.

Within this region the first two mentioned are used much more extensively than the second pair.
However, each has its advantages and disadvantages. A general rule is that the more sensitive or
personal the information, the more personal the form of data collection should be. Here in case of
my project the data collection process was clearly a personal interview type. While visiting the
companies I have interviewed several people in those companies to reach to the answers of the

26
questions been asked by me. In a couple of cases I have taken the help in terms of telephonic
interview.

Decide on question content

There are only two occasions when seemingly "redundant" questions might be included:

 Opening questions that are easy to answer and which are not perceived as being threatening,
or are perceived as being interesting, can greatly assist in gaining the respondent's involvement
in the survey and help to establish a rapport.

 Dummy questions can disguise the purpose of the survey and/or the sponsorship of a study.

3.3.4: Sampling Plan for the research:

The industries to be visited were based on their type of industry like ship building industry, steel
Plants, electrical and electronic firm, oil refineries and any other major industries. The sample
for studying the companies was chosen to be sixty, which should have the mixture of all types of
companies.

3.3: Collection of Data and Analysis:

Various Pie-charts and bar-graphs are made to have an easy and quick understanding of the study
Conducted. Initially all the questionnaires were analyzed individually, and then finally an overall
Comparison of the various responses from all the company respondents were done and analyzed.
We have also done study through the SPSS software, what have helped me to get a clear idea of
the important parameters for Stanley works in the Kolkata market. From the ten factors we have
chosen initially we have got totally six characters what were of importance to Stanley .Other than
the SPSS-factor analysis I have also done S.W.O.T analysis .What is very helpful for the
company to understand their condition in the Kolkata market, this study also can show the
company the future road of success for it, what is very important to proceed to a secure future.
Another important part of the whole study was the competition analysis. This can give a stand
where the company is today if we compare it with its competitor.

27
3.4: Findings & Recommendations:
Finally, the various findings from the study were listed out along with certain invaluable
Recommendations for STANLEY, to help them generate and tap the new markets. These
recommendations can also help the company to stress particularly on the factors where they
should focus for future success.
3.5: Competition analysis:
The hand tools market in Kolkata:

Hand tools are an integral part of the production and maintenance part of most of the industries who are
involved in some type of production. Kolkata industrial area which include central Kolkata region along
with Howrah, Budge and Hooghly district suburbs, is growing at a rate of 5.4 percent in this present
financial year. Keeping pace with the growth the hand tools market in Kolkata is also growing at six
percent per anum.The overall hand tools market worth 150 cry approx is versed with branded and un
branded competition. Price being the main factor what play the role in the Kolkata market, unbranded
players play the key role here occupying almost thirty percent of the market. Rest hundred and five core
market is open to the branded players like Taparia,Everest,Snap on ,Stanley etc.Taparia being the market
leader enjoys a major share of around sixty percent of the branded market in Kolkata, followed by other
hand tools brand.

Stanley is facing fierce competition in the Kolkata region not only from the branded but also from the
unbranded players. Being a new entrant in the market Stanley is facing a few key issues. They are-

Very low brand awareness in the market. Branded players who make claims on superior quality are not
able to impress customers sufficiently to ensure sales.

Another key issue is lack of market research. Appropriate market research on size of the market, growth
both historic and future growth and key buying influences, can give a company the right inputs and
feedback to improve its market share .It could also help the company in discovering and accessing new
markets and can help in developing winning marketing strategies.

Here we have analyzed the strength of a few key competitors and the areas where they score over Stanley
works.

Analyzing the competitor:

28
  Among the key competitors present in the Kolkata hand tools market Tap aria is the most
successful player. They are doing business for more than sixty years in India based on their
manufacturing facilities in India as well as in China. The Core competency of Taparia is price.
Maintaining a minimum quality framework (ISO 9000, they sell their products at very reasonable
prices. This key factor has helped in establishing many Indian and overseas companies as their
loyal customers. They are successfully maintaining a satisfied customer base in Kolkata. A large
dealer & distributor base in the hub of the hand tools market (bare- bazaar) in Kolkata has helped
them to be a speedy and efficient supplier of hand tools. This effective and well coordinated
distribution chain has also helped them with openings in new industries. All of this has enabled
Taparia to become and continue to be the market leader not only in Kolkata but all over India.
While they may not have spent substantial sums on advertising and promotion, their products at
extremely competitive prices and an excellent distribution network has been responsible for their
premier position in the Kolkata region and their leadership in the rest of the country.

Taparia according to me have an edge over Stanley in the following aspects –

Customers in Kolkata industrial belt, most of the cases preferred price parameter over the quality. This
tendency is not only seen in case of hand tools but in overall functioning process of the industries. So
naturally price being the core competency Tap aria is playing down Stanley successfully.

Secondly focusing on the delivery time, Stanley‘s average delivery time is about twenty days. Some time
even more than that. This is not only a potential threat to the business development process but also for
maintaining the existing market. Taparia score over Stanley supplying on an average of ten days time.

3.As the volume of delivery is high as well as the margins & commissions ,the dealers are more interested
to deal with Taparia rather than dealing with Stanley .As in case of Stanley, volume of hand tools being
supplied are very less. Even the profit margin also remains significantly low.

4. The payment policy in Stanley does not have a credit payment system. The dealer needs to pay the
money before the company supply the material to them. But once the customer’s turn comes, they mostly
work on a credit basis (six months at a minimum).This can create a shortage of fund for investment for
the dealer. In case of tap aria, the company also runs the business on credit basis. So dealers feel much
comfort in working with them.

5. Considering Stanley the time taken to close a deal by their sales force takes quite a long time. But if we
look at the tap aria, their customer base being very strong time to close a deal is pretty less for them. This
gives them added advantage to look for new market around the industrial area.

29
6. Taparia has a permanent office in Kolkata. Their Kolkata operation is based on a strong management
team. But Stanley does not have an office in Kolkata. This can pose a problem in case of co -ordination
and controlling the smooth functioning of the company.

There are few places where Stanley gets an edge over their competitors. Like-

The product range for Stanley works is very wide. Taparia cannot compete with Stanley on this point.

Quality of Stanley hand tools is far better than Taparia. So in places like military base , aerospace
application and export companies straight away goes for a Stanley product .This gives Stanley an
advantage over their competitors in a couple of places.

Companies regulated by the state mostly are not worried of fund. So these companies mostly prefer high
quality products, like Stanley.

Few American companies like caterpillar generally use Stanley hand tools. They follow the same trend in
India as well.

 Moving to the next competitor which also plays on the core competency quality- Snap on. Snap-
on Incorporated is a leading global innovator, manufacturer and marketer of tools, diagnostics,
and equipment, software and service solutions for professional users. Products and services
include hand and power tools, tool storage, diagnostics software, information and management
systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as
customers in industry, government, agriculture, aviation and natural resources. Products and
services are sold through the company's franchisee, company-direct, distributor and Internet
channels. Founded in 1920, Snap-on is a $2.8 billion, S&P 500 Company headquartered in
Kenosha, Wisconsin.

When it comes for their core competency then they generally focus on-

NON-NEGOTIABLE PRODUCT AND WORKPLACE SAFETY:

As a permanent and priority agenda item at all operational meetings, safety comes first in our company.
Our products are engineered for safe operation and we initiate and maintain a safe workplace. We
diligently comply with the company's safety program, and are committed to safeguarding natural
resources and our global environment.

UNCOMPROMISING QUALITY:
In the eyes of the customer, Snap-on's products and services have a reputation for being high quality. We

30
are accountable for ensuring quality is built into everything we do. Superior performance and quality
ensures future trust and confidence in our brands.

PASSIONATE CUSTOMER CARE:

Our customers come first. We believe that every interaction – internally and externally – is a customer
interaction that demands professionalism and respect. We believe we can make a difference in the lives of
our customers. We believe understanding our customers and listening to their unique needs ensures we
deliver customer-focused products and services.

FEARLESS INNOVATION:
At Snap-on, innovation is essential to create solutions aimed at increasing end-user productivity and
profitability. We develop and use breakthrough ideas to create solutions that bring real value to the
customer and deliver enhanced financial returns to the company.

RAPID CONTINUOUS IMPROVEMENT:

We are constantly striving for rapid continuous improvement; we are never satisfied. We are energized by
change, and continuously thinking ahead and anticipating how we can better serve our customers. We are
always examining how we can do it better, and engage constructively with those associated with the
company to gain additional knowledge and learn from past mistakes.

Snap on offer a range of hand tools and power tools as well. As their product range covers every nuke and
corner with respect to variety available in hand tools, a company can ever need to work in the field, gives
them an added advantage in the field of product offering. Now if we go for an analysis of the advantage
the company is having over the Stanley we can see,

Being other old & experienced players in hand tools market snap on also gets a trust advantage as well as
Stanley in the Kolkata market.

Snap on is also an American company, so the advantage of being brand America what Stanley gets is also
applicable equally to snap on.

If the quality is considered then snap on is also having an edge over Stanley. Snap on produce their hand
tools only in U.S and germany.This gives a quality assurance over the china made Stanley products.

31
In India, at the Bangalore and Delhi market snap on is having a loyal customer base. This belt is almost
imp-penetrable.

Though Snap on have advantages over Stanley but they fell short to many areas,

First and foremost, looking at the distribution network, snap on supply their product only from Japan to
all Asian countries. This leads to an average delivery time of months or more than that most of the
instances. What is completely unacceptable in most of the industries. On this issue Stanley scores over
them with a far more reasonable delivery time.

Snap on hardly exist in most of the Indian cities. This cost them an opportunity of getting a share in the
hand tools market pan India basis, like other international players.

They lack proper sales force in India. Completely depending on internet marketing have cost them
potential opportunities in India.

Focusing on the sensitive issue of price, Stanley will get an advantage being far cheaper than Snap on.

Snap on do not have any fixed dealer network. They depend on different dealers on a contract basis. With
a stable dealer base in all over India Stanley gets an edge over snap on.

Snap on generally deal online. But most of the companies in Kolkata are not very much interested in
intern ate dealing. This poses a serious problem for snap on.

Lastly, snap on depends on a loyal customer base of few companies who deal with only snap on hand
tools. Other than those customers, snap on do not have any steady expanding market. This have brought
their growth in Indian market at a hault.Stanley is potentially catching on this opportunity by expanding
their presence in new market every year significantly.

 Then we can focus on Everest India hand Tools Company. This is another India based hand tools
company what basically play over the low cost factor in market. This company is also having a
good customer base in pan India basis. They have diminished their quality in yearly basis in the
last decades, to focus on the price competency of the brand. In return they have paid serious price
by losing their market share significantly to Taparia. Given the situation where new and potential
entrants like Tata tools are coming in the business their chance of revival is less. Still they are

32
 able to play in a niece market quite successfully. As I have focused on a limited number of
companies in Kolkata, I have got only one Everest customer. So it’s not very worthy to consider
Everest as a potential competitor based on my focus in the Kolkata market.

3.6:S.W.O.T analysis of Stanley works:

Being a developing nation what is growing at a rate of more than seven this year market in India for hand
tools is also booming. With increasing overall pie the number of competitors is also increasing. As
growth is the most important word for the survival of any company in the market S.W.O.T analysis is
having an immense relevance in this study. Talking about the S.W.O.T analysis of Stanley, which
manufacture hand tools in large volume and wide range, we need to consider various factors like-

• Competition

• Hand tools market in India

• Product quality

• Technological aspect of product

• Market viability

• Acceptability in market

• Market perception about handholds

• Brand value of Stanley

• Market share of Stanley worldwide and in India

• Users response of the product

First of all let’s focus on the strength of Stanley works.

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STRENGTH:

 Most significant strength of Stanley is their product quality. It’s very important if we
consider the problem solving approach of sales. Proper projection of this core
competency in the market will prove to be very profitable for the company.

 Ease of work, based on the longer size, what is responsible for the less torque
requirement while working is a very important customer friendly side of Stanley product.

 Advance technologies in the product line are also very important. Dynagrip technology,
what is made for the soft gripping, gives comfort for the workers while working more
efficiently. Other than this there are technologies like maxi drive what gives the product a
very comfortable life what can prove to be one time investment for the industries. Apart
from these there is five degree range technology what makes the work smoothen.

 The nickel chrome alloy gives the product very good finishing what is very important
once the products goes to the floor for use. This prevents corrosion and increases the
product life significantly.

 Availability of wide range of products is also one of the most significant parts of Stanley
what gives the industry people to opt for a very high amount of purchase at a significant
discount rate.

 Very high recall value of the products is also another big advantage of Stanley.

 Well diverse storage item also gives a good protection against pilferage. This adds lots of
value to much industry as pilferage is one of the biggest challenges the industry people
are facing today.

 With an ever changing need of the market Stanley R&D have evolved with low price
ranged spanner and other tools which will give enormous boost to the Stanley hand tools
market.

 Acquisition is the most significant strategy what Stanley has taken for the expansion
purpose. They have acquired a series of companies named Facom,Proto,Britool,Mac
tools,Vidmar,Zag,Fat max,Bostitch etc.Through this they have not only increased their
range but they also gained an edge by killing competition. They have acquired the

34
 companies in Germany, USA, and Russia and in much other country. By instantly
catching upon the market Stanley has improved their market share worldwide.

 Another important strength of Stanley is their distribution network. If we see the world
wide picture then we can very easily estimate the main reason of Stanley’s success in
U.S. and Europe is their distribution network. Though they are in nascent stage of
building this net work in India.

 To run a successful company we need happy and dedicated people in the company.HR
policy of Stanley works is one of the best among the MNC’s.So satisfied employee and
sales people deliver maximum effort behind the success of the company.

 The Indian division of Stanley is mainly comprises of a bunch of young management

graduates. This gives a lot of thrust to the working of the company.Aggresive marketing
is one of the strength of Stanley works.

 In India Stanley is supplying products from china, what is very much cost effective and
easy to procure the inventory.

 Customization is strength of Stanley. If the company orders in a bulk and different tolls
then Stanley make a special tool box for them to supply those kits. This makes the
company more customers friendly.

 In industry the amount of requirement is huge and the field is also very diverse. As
Stanley have experimented with all the aspect of a production or maintenance unit of
particular type of company that makes it easier for them to understand which tool to order
where.

 It’s more than three hundred years old company. So a company surviving well for so
many years does have lots to say to the market. This makes a good image in the mind of
customers.

 Not only the age but also its American origin also gives a lot of value to the brand.

 ANSI and DSN are two of the toughest standard to pass through. Stanley maintains these
standards so the quality of the product is unquestionable.

WEAKNESS:

35
Though there are so many positive things about the company still the progress of
the company is stalled on some major issues. They are-

 First and foremost is the price of the product. It’s unreasonably high in
comparison with other players in Indian market. This high price have
cost them a lot of market share. Even if they plan for higher margin in
few customers that is also going to be tough with increasing competition.
In business everybody is very much price conscious these days. As the
raw material price is inflating day by day so all the company is opting for
a price cut. One of the most effected part of these cost cutting is
definitely the hand tools sector. So if Stanley wants to survive in India in
future definitely they have to slash price. But instead of slashing price
they are increasing price as per the international market.

 Increase in price can be devastating in Indian market what is very much

pricing sensitive. Here very less people actually care about quality of the
tools. They mostly depend on use and through tools. So in this market a
high price tool can be an odd man out.

 Even in the high end market where Stanley fights with their brands like
Proto and Facom, they are facing severe competition from other
established US brands like snap on.

 As far the quality is concerned the market leader Taparia also maintains a
minimum level of standard. So it’s not very easy ground to fight out.

 Taparia the competition brand is doing business in Indian market for

more than sixty years. Stanley has just entered the market. As taparia
have a good hold in the market and mostly loyal customers they are
getting an edge over Stanley everywhere.

 Now if we focus on the inventory problems, we can see throughout India

they have a severe problem of inventory management. They have only
one warehouse in whole India. So even for showing a sample the dealer
have to get it from the main warehouse what takes tremendous time. This
is another big reason for loosing customer. Sometime the customer waits

36
 for the whole month. In twenty first century world whatever is slow will
be wiped out for sure. Stanley should mind this gap very seriously.

 The company doesn’t even give any free sample to the customers. Many
of them ask for sample to the dealers and to the marketing people. As we
don’t have any free sample with us, many time the customer deny
waiting and they move on with some other brand.

 The product catalogue many times contains such items what is not
available with the Stanley warehouse. In that case sometimes we lose
customer even just before losing the deal. This can be very costly as bad
word of mouth against the company.

 At least two out of ten cases Stanley product fails to match the criteria
asked by the customer. As a result the customers walk away with some
other brand.

 Stanley does not have an office in most of the places they are doing
business. This not only cause inconvenience to the sales people but also
cause uneasy situation in front of customer as they always ask “why such
a big MNC can’t even afford a office when they want to do business”.

 All three dealers are located in the same area of Kolkata. This is very
inconvenient for people who are located in different part of Kolkata and
if they want to communicate with the dealer.

 None of the dealer sales only Stanley hand tools. They all have
dealership of many other brands. So many times the lead generated by
the sales people of Stanley in some industry gets fulfilled by other
competitor’s product.

 The dealers have severe competition among themselves. Rather than co-
operating many times they try to acquire each other’s order. This can
cause further inconvenience.

 Communication is another very big problem for the people in the market.
The sales people are overloaded. Such as the whole Kolkata region is

37
 dependent on one single sales officer. Company may save some money
not recruiting more people but this can cost the company some serious
business.

 The regional sales officers are also overloaded. They have so many states
to control; sometimes they are not able to stay even one week in a
particular state.

 Company have only one HR employee to run the whole organization in

India and the situation is ridiculous. This signifies may be Stanley is not
at all serious about doing business in India.

 At last, among the basic 4 P’s of marketing all three of place, promotion
and price is going terribly wrong for Stanley. So if they can run their
business by the factors playing crucial role in Indian market Indian
market situation will improve. Otherwise like many other company they
will also quit India after few more years.

Opportunities:

If we look at the market in general we will there are lots of opportunities for hand tools market. Because
of few reasons-

 Indian market is growing 8-10% in 2010, what is even better than China by now.
This can clearly state that given a growth situation there will be new factory, new set
up to match the production rise. So there will be higher requirement of hand tools as
well.

 Hand tools market in India is also growing in a significant 17% rate. This is also
a very optimistic scenario for a hand tools company.

 Other than these the price sensitivity in government companies is going down
day by day. This market is mostly dominated by the commission paid by the
companies. This can prove to be an opportunity for Stanley works.

 Almost all the existing companies are expanding. From FMCG to automobile
manufacturer everybody is touching their threshold in case of production. So they
going to need a lot of hand tools.

38
  Stanley is having a very wide range of hand tools what is rare in the competitor’s
product line. This gives Stanley an opportunity to sell more hand tools in bulk what
can prove to be cheap for customers.

 Many companies are slowly focusing more and more on the quality of the
product to cut short monthly purchase. This gives great opportunity for company like
Stanley whose core competency lies in Quality.

 Quick acquiring of the company like Black and Dakar will give the company a
good ground on the Indian market.

 Stanley is coming out with a low cost spanner range. This will add lots of value
to the company profile. Later times if they come out with a low cost substitute for
almost all the product that can prove to be a master stroke on behalf of the company
to increase the market share.

 In few places like Army, Coca cola, Marathon electrical have become regular
customer of Stanley. This has helped Stanley to get a good hold on the market
referring these steady customers widely.

 Being an American company and market leader in USA, it always gets an

advantage when it comes to hand tools sales in another American company.

 Stanley R&D is very strong so that also gives them an edge over the other
players.

 Stanley works being a centuries old company already has a good name in market.
These links once cultivated properly adds lots of value to the company profile.

 Stanley works is a deep pocketed company. So keeping a pace with the

requirements they can invest a lot to increase the market share.

THREATS:

 Taparia, the market leader is very strong when it comes to price. This is
the field where Stanley looses most amounts of the points.

 Other companies like Everest are also going very fast, keeping pace with
the competition is the most important where Stanley is lagging.

39
  Though Stanley is scoring more in the quality conscious market, but that
is a niece market. It will not increase the market share of Stanley
significantly.

 Various foreign companies like snap on are also entering Indian market
very fast. This is posing even a greater threat to Stanley.

 World economy is still going through a tumultuous stage. So a costly

brand like Stanley is facing severe threat from the current situation in the
world economy.

 As an American brand the Russian and the German companies most of

the time doesn’t entertain Stanley. This also has caused a big problem as
there are a number of Russian companies still working in India.

 Poaching is a big threat for Stanley. As the other Indian players are
continuously trying to poach Stanley sales people, this fact can pose a
threat to the company.

 As Stanley follow ANSI and DSN standard what is not so famous in

India, people many times ask for some known certification like ISO
standards.

 Operational inefficiency is at its top now days in Stanley. They take

more than a week to just send a sample from Delhi warehouse. This fact
must be seriously monitored.

Chapter IV:
40
STATEMENT OF OBJECTIVE:

4.1 PRIMARY OBJECTIVES

 To assess the scope for the business development & maintaining a presence in the
Kolkata hand tools market of Stanley Hand Tools &Stanley Assembly Technology.
 To position Stanley as a brand in Kolkata market by focusing on S.W.O.T analysis and
competition analysis.
 To determine the factors playing crucial role for Stanley in the Kolkata market.

4.2 SCONDARY OBJECTIVE

 To find the potential for Stanley Hand Tools in the existing market.
 To find the hand tools purchaser’s needs and the expectation on hand tools.
 To find the feedback about Stanley Assembly Technologies and take corrective action
thereby ensuring better business development.
 To identify potential customers and new plants where business development can truly
happen

Chapter V:
RESEARCH:

5.1 RESEARCH DESIGN FLOW CHART:

Two types of information are required for doing Multi Dimensional Scaling. The first type of
Informational requirement pertains to those that are requires to measure the dependent variable
This in this case is customer’s intention to buy.
The second type of information required pertains to the independent variable. The independent
Variables being considered in this case are price, brand, quality, durability, reliability, discount,
Warranty, availability, breakage and comfort.

41
This research was Multiple Cross- Sectional in nature as: Data collection was done only once
from only one sample of the population (Purchasers and end users). The research involved very
less of secondary data then the primary data. This was due to the fact that the accuracy of the
research was to be kept high. Moreover, the research was done on the currency basis i.e. it was
done for the current situation to make the project more relevant with the current market situation.

5.2 SCOPEOF SYUDY

The study provided an insight into the important factors for Stanley hand tools from the purview
of the customers. This is also focused on its applications, hand tools usage, expectations and
attitude towards hand tools like socket, spanners, pliers and screw drivers & many more. This
study will help to find out the feedback of Stanley hand tools with regards to price, brand,
quality, durability, reliability, availability, and comfort. Positioning Stanley among the
competitors and leading it towards a better growth path in the Kolkata market is another
important focus of this study.

5.3 LIMITATIONS IN THE STUDY:

No research would be a fool proof, 100% error free with the time, money constraints and within
the limited resources. My research study was no exception. I too had my own set of problems in
terms of price, availability and with the fact that I was a first timer in this field.
 The first limitation could be the fact that Expert opinion. Depth interview and all the
Descriptive study was conducted on a sample size of sixty. In this case the main problem is the
response varies depending on mood, situation & authority of the responder. Though these
techniques were conducted to unearth it still could be limited.
 Next limitation would be the fact that the sample size of sixty. More the sample size more
detailed study would betas the number of the industries is very limited where we can
approach for the Stanley hand tools; this limited our reach further more.
 The sample taken for creating the model included people from various industries in
Kolkata and around industries. This poses a great problem of limiting the view to a
handful of factors. As all these people are working under same circumstances under
specific regulation posed by west Bengal government in the particular Kolkata market,
the kind of problem people here facing can never represent people of India.

42
  The conclusions made are based on the data collected from the sample size. So the
conclusion are based how truthfully the people entered the data.
 Being a summer intern I was not entertained in many industries in serious manner. This
did made serious problem in the research work.
 Company infrastructure in Kolkata is miserable. Neither they have an office nor do they
have a permanent dealer dedicated completely to Stanley. These factors posed potential
problem to the working.
 Marketing effort by Stanley is almost nil. This has created a vacuum in the Market. To
remove that huge marketing effort is required.
 Number in the sales force is very less. So a lot of potential industry in and around
Kolkata was left out. This was a potential loss to the research process.
 A solid database about the company would have made our work very easy. But as there
were no such database available at the back office in Delhi this factor made our work
much more difficult.

These were some of the limitations identified during the course of my research proceedings.

5.4 STEPS INVOLVED:

The following steps were followed to attain the objective.

5.4.1Literature study:
There is no specific study, which was done on identifying hand tools purchasers purchase
behaviour.Also there was no previous study regarding to the market potential of any hand tools
company in Kolkata hand tools market. So the study of literature was based on the basic hand
tools market in India.

5.4.2Expert opinion
Expert opinion is the process where an expert in the related field is interviewed to get
information

43
That can be used in the study. In this case distributors, dealers, sales officers, marketing manager
of Stanley for East and purchase, maintenance & production managers of industries which use
hand tools are considered as an expert.

5.4.3: Descriptive study

The descriptive research design used in this case is survey method and personal interview.
Personal interview with various industry purchases, maintenance & production managers made
me find some of the factors and ideas by observation, hearing their experience and interacting
with them.

5.4.4 Scaling technique

The scaling technique used in the questionnaire was like scale, open, closed ended and ranking
Scale. The Likert scale is commonly used in survey research. It is often used to measure
respondents' attitudes by asking the extent to which they agree or disagree with a particular
question or statement. A typical scale might be "strongly agree, agree, not sure/undecided,
disagree, and strongly disagree." On the surface, survey data using the Likert scale may seem
easy to analyze, but there are important issues for a data analyst to consider.

All the questions in the main questionnaire were extracting answers by this scale. This was
Maintained throughout the questionnaire to keep the reliability and validity in control. The likert

Scale technique is widely used to determine the level of agreement or disagreement of an issue in
the questionnaire. And another set of likert scaling were used to determine the most important
and least important of an issue in a questionnaire. The first step in the process is Get the data
ready for analysis by coding the responses. For example, let's say I have a survey that asks
respondents whether they agree or disagree with a set of positions in a political party's platform.
Each position is one survey question, and the scale uses the following responses: The scale was
designed with five response categories as shown below.

1---Strongly disagree
2---Disagree

44
3---Neutral (Neither disagrees nor agrees)
4---Agree
5---Strongly agree

1---Most important
2---Important
3---Neutral (Neither important nor unimportant)
4---Less important
5---Least important

We need to remember to differentiate between ordinal and interval data, as the two types require
different analytical approaches. If the data are ordinal, we can say that one score is higher than
another. We cannot say how much higher, as we can with interval data, which tell the distance
between two points. Here is the pitfall with the Likert scale: many researchers treat it as an
interval scale. This assumes that the differences between each response are equal in distance. The
truth is that the Likert scale does not tell that. As with most statistical analyses, begin analyzing
Likert scale data with descriptive statistics. Adding a response of "strongly agree" (5) to two
responses of "disagree" (2) would give us a mean of 4.But, there are other measures of central
tendency we can use besides the mean. With Likert scale data, the best measure to use is the
mode, or the most frequent response. This makes the survey results much easier for the analysis
and interpretation purpose. We can display the distribution of responses in a graphic, such as a
bar chart, with one bar for each response category.

After descriptive methods, any good statistical analysis proceeds next to inferential techniques,
which test hypotheses posed by project. There are many approaches available, and the best one
depends on the nature of study and the questions or hypothesis I am trying to find out. A popular
approach is to analyze responses using analysis of variance techniques, such as the Mann
Whitney or Kreskas Wallis test. This can also be analyzed by the SPSS software, using the factor
analysis or the dimension reduction techniques.

We can simplify the survey data further by combining the four response categories (e.g., strongly
agree, agree, disagree, and strongly disagree) into two nominal categories, such as

45
agree/disagree, accept/reject, etc.). This offers other analysis possibilities. The chi square test is
one approach for analyzing the data in this way.

The questionnaire when framed was carefully done to avoid complex words. In circumstances
where such words could not be avoided, explanations were given for the respondents to
understand easy. The ambiguous words or sentences were also avoided. Each section of the
questionnaire had an initial explanation of how to answer the questions. An example was also
given for easy understanding of filling the questionnaire. Important instructions were highlighted
in bold letters to improve the vision and for a quicker understanding of the instructions by the
respondent. The respondent didn’t have any problem in understanding the questionnaire and
answering it.

5.4.5: Designing questionnaire

Based on the results obtained from the descriptive study and using scaling method the final
Questionnaire was prepared and administered to the respondents.

5.4.6: Deciding the sample size

The sampling technique used for the research was more of a stratified random sampling. This is
Because of the customers who were all possible to meet were selected. The sampling was done
as mentioned above due the lack of time to get data.
As the market research was done to B2B market the sample size was taken as sixty. The data was
collected from purchase managers and end users. Certain care was taken to avoid errors of
history as the consumers were all contacted at the place of location. The other errors were either
avoided or even though present it was cancelled out due to the presence of the same with other
brands.

5.4.7: Data collection

46
Data was collected from both purchase managers and end users using stratified random
sampling. While undergoing the internship process I went to each of them and conducted a depth
interview, which took nearly ten minutes. The sample was about sixty potential customers for
Stanley hand tools. The data for the questionnaire was collected directly and through e-mail from
purchaser mangers and end users. The data was collected from all the industries I visited in and
around Kolkata. Using the data collected in the process I was able to come out with factor
analysis to see whether the factors are really related to the buying decision.
5.4.8: Analysis of the data collected

All the data collected was fed into a database created in Microsoft Excel especially for this
purpose. The various tools and functions available on excel were used for necessary calculation.
Bar graphs and pie charts were generated to make the interpretation of the results easier. SPSS
software was used for the purpose factor analysis.

Chapter VI:
DATA ANALYSIS:
Data analysis model is econometric model and was planned to be done with the statistical tool
SPSS.The data was obtained mainly in the likert scale for this purpose. The various tools and
functions available on Excel were used for necessary calculations. Bar graphs and pie charts
were generated to make the interpretation of the results. SPSS software was used for the purpose
of factor analysis (dimension reduction).

6.1 Plan of data analysis:

The data analysis done as in the plan given below-

1. At first the filtering of the questionnaire was done.

2. The questionnaires were sorted into the respective groups.
3. coding of the questions were done.
4. All the data was entered into different excel sheets.

47
5. This data was copied to the SPSS tool all the variable were explained.
6. The other questions related awareness, departments, ranking and current brand were
Analyzed using Micro soft Excel.
7. Results were tabulated and conclusion and recommendations were drawn.

Chapter VII:
RESULTS AND INTERPRETATION:

7.1 STANLEY HAND TOOLS:

7.1.1 Hand Tool Market Share:

The below table & graph gives the market share different companies hold.

NAME OF THE COMPANY NUMBER OF USER

Taparia 38
Stanley 4
Everest 5
Snap on 1
Thalami(unbranded) 14
Table: 1

FIG: 9

48
My study reveals from the above table and pie chart that more than sixty percent of the
respondent industries are using Taparia tools, about ten percent are using Everest and Stanley
and more than twenty percent of the market is occupied by the unbranded players. As a
competitor we can tap the branded market in case of tools like socket, hydraulic jack what cost
similar to the market leader taparia. For other tools either we need to curb the price to a
reasonable level or we need to focus more on the niece price in sensitive market where Stanley
product will far better.

7.1.2 Frequency of Buying Hand Tools:

Duration Frequency of hand tools purchase
monthly 3

2-3 months 7

4.6 months 3

6-12 months 11

More than an year 36

Table: 2

FIG: 10

49
From the above frequency table it is revealed that about twenty eight percent of the industries
purchase hand tools half yearly, around fifty six percent of the industries purchase annually and
nearly sixteen percent in monthly basis. This concludes company should constantly focus on the
market to grab the opportunity. A long term relationship building process throughout the year
can prove to be helpful for the yearly purchase segment. These company generally issue tender
once in a year when they purchase hand tools. Quick follow through in that time followed by a
reasonable and consider worthy quotation can close a deal for Stanley works. Regarding the
other segment the company should put enough marketing effort to make the market much more
aware of the quality aspect of Stanley. Once Stanley become successful to put forth their core
competency to the industry people, immediate effect can be reflected on the market share.

Hand tools usage (product wise):

Hand tools type Percentage of usage(with respect to other

tools)
Socket 20
Spanner 31
Hammer 2
Ratchet 12
Knives 8
Wrenches 7
Other tools 20

Table: 3

50
 FIG: 11

The spanner, socket and ratchet are the most used tools in the market. But if we look at the
product and price range of Stanley then it will be clear to us that they cannot get a good hold on
the spanner market because of the high price. If they are going to get a hold then that will be the
socket market and partially the ratchet market. To convey the superior quality with a reasonable
price what Stanley offer for sockets and for a spatial range of hammers must be conveyed to the
industries by proper marketing effort.

The average cost of procuring the hand tools vary in a range of 5 laky to 70 laky depending on
the business the company is in. More than sixty percent people heard the name of Stanley for the
first time. So, market communication of Stanley need to be improved. Only twenty five percent
of the people I surveyed upon acknowledged that they have used Stanley products. This data
support that poor communication and the negligible market share goes hand in hand. Once a part
of the picture is improved, the other part gets an immediate boost.

Companies who are using Stanley are very much satisfied with the performance and quality of
the product. Almost all of them have gone for repeat purchase of Stanley hand tools. Most sought
after tools of Stanley are the hammers (compo cast), wide range of sockets and the tool kit box
according to the survey filled up by the company people.

Worth of inventory stockings of dealers:

Amount of inventory stocked by dealers Number of dealer responded

Less than two laths 6
5-10 laths 3
10-15 laths 2
More than 15 laths 1
Table: 4

51
 FIG: 14

This interpretation clearly shows that fifty percent of the twelve dealers I interviewed were
stocking less than two laths of tools on yearly basis. Reason being as the market of hand tools is
just getting shaped up in Kolkata they did not wanted to take risk. Secondly, they were also
worried about the high price of the product, what was a hindrance on the path of swift movement
of Stanley handtools.This posed problem even on the path of catching up new markets. Very few
dealers who are maintaining a consistent relationship with a big client only they are able to
procure hand tools of greater amount.

7.1.4 Source of Information

SOURCE OF INFORMATION
Source of information Number of respondent
News paper 1
Magazine 3
Local outlet 31
Stock list 2
Sales representative 18
Friends 4
Others 1
Table: 5

52
 FIG: 13

Much of the information about the hand tools was obtained from the local outlets. Hence,
Better visibility must be done through acquiring more and more number of dealers every year.
The direct marketing channel through sales force is quite effective with reference to the collected
data. But number of sales people in the field is a serious problem for Stanley works .They should
go for a mass appointment of more and more sales people for a better market presence of the
brand. To increase the visibility the company also should focus for structured PR (public
relation) process through magazines, newsletters, special exhibitions and seminars, as they carry
a meager 12% of the overall pie. Better promotional campaigns and brand awareness
Programs must be carried out at a regular interval to popularize the brand.

7.2.3 AWARENESS OF STANLEY PRODUCTS:

Response Number of respondents

Yes 21
No 39
Table: 6
Though a chunk of people did hear about the brand but only a hand few of 36 % have used it in
their industry. Rest almost 64 % of the people has never used it for various reasons. In this cases

53
problem solving approach by the sales force is the best option. So appointing more people in the
sales force can be the initiation of solving this problem.

Satisfaction level of existing hand tools:

(1: Highly dissatisfied, 2: dissatisfied, 3: average, 4: satisfied, 5: Highly satisfied)

Satisfaction level Number of respondent

1 2
2 5
3 13
4 18
5 9
Table: 7

FIG: 14

This result is very important for the future expansion plan of the company. The 20 % bunch of
very satisfied customers is less likely to change to some other brand leaving their regular brand.
But if we can focus on the bunch of average and satisfied customers, what consist of more than
70 % of the total respondents can possibly is converted to Stanley customer. To make this
proposition a success the company at the first place should try to educate the customers with the
quality proposition, its core competency. This can also drive the company’s growth to a right
direction.
7.1.3 Factor Analysis:

54
Factor analysis is included in the SPSS package as a data reduction technique. It takes a large set of
variables and looks for a way that the data may be reduced or summarized using a smaller set of factors or
components. It does this by looking for clumps or groups among the intercorrelations of a set of variables.
This is an almost impossible task to do by eye it anything more than a small number of variables. It is
Used extensively by researchers involved in the development and evaluation of tests and scales. The scale
developer starts with a large number of individual scale items and questions and, by using factor analytic
techniques; they can refine and reduce these items to form a smaller number of coherent subscales. Factor
Analysis can also be used to reduce a large number of related variables to a more manageable number.
Prior to using them in other analyses such as multiple regression or multivariate analysis of variance.
There are two main approaches to factor analysis—exploratory and confirmatory. Exploratory factor
analysis is often used in the early stages of research to gather information about (explore) the
interrelationships among a set of variables. Confirmatory factor analysis, on the other hand, is a more
complex and sophisticated set of techniques used later in the research process to test (confirm) specific
hypotheses or theories concerning the structure underlying a set of variables. The term ‘factor analysis’
encompasses a variety of different, although related techniques. One of the main distinctions is between
what is termed principal components analysis (PCA) and factor analysis (FA) is if we are interested in a
theoretical solution uncontaminated by unique and error variability, FA is the best fit for that situation. If
on the other hand we want an empirical summary of the data set, PCA is the better choice.

Steps involved in factor analysis:

There are three main steps in conducting factor analysis-

Step 1: Assessment of the suitability of the data for factor analysis:

There are two main issues to consider in determining whether a particular data set is suitable for factor
analysis: sample size, and the strength of the relationship among the variables (or items). Two statistical
Measures are also generated by SPSS to help assess the factorability of the data: Bartlett’s test of puerility
(Bartlett, 1954), and the Kaiser-Meyer-Olin (KMO) measure of sampling adequacy (Kaiser, 1970, 1974).
The Bartlett’s test of sphericity should be significant (p<.05) for the factor analysis to be considered
appropriate. The KMO index ranges from 0 to 1, with .6 suggested as the minimum value
For a good factor analysis.

Step 2: Factor extraction:

55
Factor extraction involves determining the smallest number of factors that can be used to best represent
the interrelations among the set of variables. There are a variety of approaches that can be used to identify
(extract) the number of underlying factors or dimensions. There are a number of techniques that can be
used to assist in the decision concerning the number of factors to retain:
• Kaiser’s criterion;
• Screed test; and
• Parallel analysis.

Step 3: Factor rotation and interpretation:

Once the number of factors has been determined, the next step is to try to interpret them. To assist in this
process the factors are ‘rotated’. This does not change the underlying solution—rather; it presents the
pattern of loadings in a manner that is easier to interpret. Unfortunately, SPSS does not label or
Interpret each of the factors for you. It just shows you which variables ‘clump together’. From your
understanding of the content of the variables.

Analysis of collected data through SPSS:

Descriptive statistics:
Descriptive Statistics

Mean Std. Deviation Analysis N

Quality 5.83 .761 47

Price worthiness 5.70 .954 47

Availability 1.81 .711 47

Maintenance 4.43 .773 47

Reliability 5.53 .830 47

Performance 5.85 .659 47

Table: 8
From the total 470 data we had in the excel sheet SPSS has chosen twenty five here for final
analysis. This is because of the exclude cases pair wise option. The ratio of cases to variables in
PCA should be > 5: 1. With 470 cases and 10 variables, the ratio of cases to variables is 47:1,
what is far exceeding the minimum requirement. So this proves that the data is far acceptable for
the analysis.

56
Correlation matrix:
Correlation Matrix

Quality Durability Availability Maintenance

Correlation Quality 1.000 .528 -.222 .052

Price worthiness .528 1.000 -.054 .087

Availability -.222 -.054 1.000 .389

Maintenance .052 .087 .389 1.000

Reliability .559 .397 -.155 -.022

Performance .382 .170 .031 .170

Table: 9

Correlation Matrix

Reliability Performance

Correlation Quality .559 .382

Price worthiness .397 .170

Availability -.155 .031

Maintenance -.022 .170

Reliability 1.000 .665

Performance .665 1.000

Table: 10

Principal component analysis method requires most of value in the correlation matrix to be
greater than the .3 range. Here in the result matrix leaving only a few values aside rests all the
values is satisfying the criteria.

KMO and Bartlett's Test:

57
KMO and Bartlett's Test

Kaiser-Meyer-Olin Measure of .576

Sampling Adequacy.

Bartlett's Test of Sphericity Approx. Chi-Square 189.773

Do 55

Sig. .000

Table: 11
Kaiser-Mayer-Olin
A measure of whether your distribution of values is adequate for conducting factor analysis. A
measure >.9 is marvelous, >.8 is meritorious, >.7 is middling, >.6 is mediocre, >.5 is Miserable
and unacceptable. In this case it is miserable and not fit for the factor analysis process. This
shows that the data needs to be modified in a way thus it get the correct fit for the factor analysis
process.
Bartlett’s test of Sphericity
This is a measure of the cumulative normality of researcher’s set of distribution. It also
Tests whether the correlation matrix is an identity matrix. A significance value <.05 indicates
that
These data do not produce an identity matrix and are thus approximately multivariate normal and
Acceptable for the factor analysis. In this case it is <.05, so this data is acceptable for the factor
Analysis.
KMO and Bartlett's Test

Kaiser-Meyer-Olin Measure of .612

Sampling Adequacy.

Bartlett's Test of Sphericity Approx. Chi-Square 71.936

do 15

Sig. .000

Table: 12

58
To improve the value of Kaiser-Meyer-Olin test we have removed the factors what were overloading
the components. So as a result the data has improved and is showing a result of .612, what is well
enough to run the factor analysis. Though the value of Bartlett’s sphericity have not changed.

Anti image matrix:

Anti-image Matrices

Quality Durability Availability Maintenance

Anti-image Covariance Quality .543 -.247 .146 -.066

Price worthiness -.247 .675 -.054 -.064

Availability .146 -.054 .778 -.293

Maintenance -.066 -.064 -.293 .791

Reliability -.131 -.122 .048 .096

Performance -.049 .110 -.068 -.127

Anti-image Correlation Quality .716a -.408 .225 -.101

Price worthiness -.408 .638a -.074 -.087

Availability .225 -.074 .516a -.373

Maintenance -.101 -.087 -.373 .457a

Reliability -.279 -.233 .086 .170

Performance -.093 .189 -.109 -.202

a. Measures of Sampling Adequacy(MSA)

Table:13

There are two anti-image matrices: the anti-image covariance matrix and the anti-image
Correlation matrix. We are interested in the anti-image correlation matrix. Principal
Component analysis requires that the Kaiser-Meyer-Olkin Measure of Sampling Adequacy
(MSA) be greater than 0.50 for each individual variable as well as the set of variables. Here all
the MSA values are more than .5 threshold limit. So the SPSS result is very much valid.

59
Number of factor to extract (latent root creation):

Total Variance Explained

Initial Eigen values Extraction Sums of Squared Loadings

Compon
ent Total % of Variance Cumulative % Total % of Variance Cumulative %

1 3.744 34.039 34.039 3.744 34.039 34.039

2 1.680 15.274 49.313 1.680 15.274 49.313

3 1.222 11.110 60.424 1.222 11.110 60.424

4 1.096 9.965 70.388 1.096 9.965 70.388

5 .878 7.981 78.369

6 .690 6.270 84.639

7 .593 5.394 90.033

8 .464 4.215 94.248

9 .331 3.005 97.253

10 .175 1.591 98.843

11 .127 1.157 100.000

Extraction Method: Principal Component Analysis.

Table: 14
In this initial result there are four Eigen values what are greater than one. So there should have
been four components in the factor analysis. But in that case two of the component has not
shown any major factor loading into them. So, those factors which were not showing any proper
loading characteristics in the components were removed completely. Then the whole processes
of the factor analysis were repeated for the second time.

60
Total Variance Explained

Initial Eigen values Extraction Sums of Squared Loadings

Compon
ent Total % of Variance Cumulative % Total % of Variance Cumulative %

1 2.409 40.150 40.150 2.409 40.150 40.150

2 1.434 23.902 64.052 1.434 23.902 64.052

3 .912 15.194 79.246

4 .599 9.982 89.229

5 .389 6.475 95.704

6 .258 4.296 100.000

Extraction Method: Principal Component Analysis.

Table: 15

Total Variance Explained

In this result we can see number of components has come down to two with a very clear loading
of components. This result will help us to group important characteristics together that will
further help us to improve the interpretation of the result. Component one is explaining around
forty percent of varienceand the component two is explaining around sixty four percent variance.

Scree plot:

61
 FIG: 15

This clearly signifies only the two top values are satisfying the criteria of being more than one.

Evaluating communalities:
Communalities

Initial Extraction

Quality 1.000 .679

Price worthiness 1.000 .524

Availability 1.000 .711

Maintenance 1.000 .695

Reliability 1.000 .753

Performance 1.000 .581

Extraction Method: Principal Component

Analysis.

Table: 16

62
Communalities represent the proportion of the variance in the original variables that is accounted
for by the factor solution. The factor solution should explain at least half of each original
variable's variance, so the communality value for each variable should be 0.50 or higher. All
results are matching up with the expected performance in the following output. We have six
factors here. So, communalities requirements were met by six of them. Initially from the ten
factors we have come down to only six factors. This have been done to reduce the overloading
and to solve the problem of complex structure. Other than these six factors, other factors like
compactness, customizability, ease of use, price worthiness and design were removed on the
basis of complex structure formation as they were loading in more than one component.

Component matrix:
Rotated Component Matrix

Component

1 2

Quality .812 -.142

Price worthiness .651 -.012

Availability -.163 .827

Maintenance .133 .823

Reliability .864 -.080

Performance .729 .221

• Extraction Method: Principal

Component Analysis.

• Rotation Method: Varian with

Kaiser Normalization.

Table: 17
From the component matrix we can clearly see that the factors loaded in the first component are-
 Price worthiness
 Reliability
 Performance

63
  Quality

These factors are all related to the use of hand tools directly. So, these factors can be named as
the use related factors (URF).These URF’s are very important regarding repeat purchase of the
product. As hand tools are an integral part of the daily production as well as maintenance process
these parameters can act as the platform of brand building. Especially price worthiness is a major
concern when it comes to Stanley works. Much more reasonable pricing is required to survive in
the market. So, Stanley must retain its focus to maintain and improve upon these factors. The
other component factors are-
 Availability
 Maintenance

Both of these factors depend mostly on the dealer, the company (availability) and end customers
(maintenance).So monitoring these factors is much tougher. To keep customer satisfied on time
delivery has got a lot of importance. Equally, the ease of maintenance of the product also can
affect the brand positively.

The factors what were rated most badly in the survey –

 Durability
 Ease of use
 Compactness

These factors are crucial when it comes to the future market projection for the company. This
can also negatively affect the company’s future growth, reputation & sales volume. To get hold
on the ease of use and compactness Factors Company should work harder back in the R&D.
These few steps can improve future performance of Stanley.

Reliability measurement (chroneback’s alpha):

It is important to determine whether the scales are reliable or not. There are a number of different
aspects to reliability. One of the main issues concerns the scale’s internal consistency. This refers

64
to the degree to which the items that make up the scale hang together. It is also important to
notice whether they are all measuring the same underlying construct or not. One of the most
commonly used indicators of internal consistency is Cranach’s alpha coefficient. Ideally, the
Cranach alpha coefficient of a scale should be above .7. Cranach alpha values are, however,
quite sensitive to the number of items in the scale. With short scales (scales with fewer than ten
items), it is common to find quite low Cranach values (.5). In this case it may be more
appropriate to report the mean intertie correlation for the items.
Results for chroneback alpha (Component one):

Case Processing Summary

N %

Cases Valid 47 100.0

Excluded 0 .0

Total 47 100.0

a. List wise deletion based on all variables in the procedure.

Reliability Statistics

Cranach’s Alpha N of Items

.756 4

Item Statistics

Mean Std. Deviation N

Quality 5.83 .761 47

Durability 5.70 .954 47

Reliability 5.53 .830 47

Performance 5.85 .659 47

65
Item-Total Statistics

Scale Mean if Item Scale Variance if Corrected Item- Cranach’s Alpha if

Deleted Item Deleted Total Correlation Item Deleted

Quality 17.09 3.601 .642 .653

Durability 17.21 3.519 .449 .774

Reliability 17.38 3.285 .685 .622

Performance 17.06 4.278 .486 .737

Table: 18
Coming to the interpretation of the reliability analysis first thing should be done is to check that the
number of items is correct or not. Here the number completely matches with the actual elements in the
components, which are four in number.
• In terms of reliability the most important figure is the Alpha value. This is Cranach’s alpha coefficient,
which in this case is .756. This value is above .7, so the scale can be considered reliable with our sample.
• The other information of interest is the column marked Corrected Item-Total Correlation. These
figures give an indication of the degree to which each item correlates with the total score. Low values
(less than .3) indicate that the item is measuring something different from the scale as a whole. If
Scale’s overall Cranach alpha is too low then we may need to consider removing items with low item-
total correlations. In the column headed Alpha if Item Deleted, the impact of removing each item from
The scale is given. Comparing these values with the final alpha value obtained we can determine the final
alpha of the scale. If any of the values in this column is higher than the final alpha value, we may want to
consider removing that item from the scale. For established, well validated scales, we normally consider
doing this only if the alpha value was lower than .7.
Now if we look at the results of the component two thins-

66
Case Processing Summary

N %

Cases Valid 47 100.0

Excluded 0 .0

Total 47 100.0

a. List wise deletion based on all variables in

the procedure.

Reliability Statistics

Cranach’s Alpha N of Items

.758 2

Table: 19

Here also the alpha value is quite high as .758 which perfectly supports the reliability of the
scale. The number of items in the component is two what is aligned with the communality result
of factor analysis. We can infer from the reliability discussion that the scale we have prepared for
further study is perfectly reliable to draw future plans for the company.

Chapter VIII:
FINDINGS & RECOMMENDATIONS:

Based on my experience and research conducted, I have identified that –

1. Factors which are most important for hand tools purchase were quality, price worthiness,
reliability, availability, performance and maintenance.
2. The data analysis also has shown significant market potential for Stanley if they correctly
strategize their approach. Data also supported a good growth of Stanley in a price
insensitive niche market.
The brand Stanley is least visible in the industry compared to our competitors. Even if it is
visible at few places, they have failed to put forth their core competency ‘quality’ forward. I

67
have the following recommendations which I have divided as short term and long term
implementation to face the current situation.
Short Term:
1. Newsletters: By creating our own email newsletter, we could send out industry news and tips
to existing and prospective customers in our market. Since we will be on your prospects' minds
more often than our competition, eventually, our sales leads will turn into actual sales. Articles
about latest trends in tools industry, helpful solutions and how Stanley plays a helpful role can
seriously be proved an important addition in the overall effort.
2. Customer feedback: It’s important to get feedbacks from our existing customers on a regular
Basis. This can be done by asking them how their product is performing, and whether they are
facing any problems and always be ready to offer a solution. This way we build a good
relationship with our existing customers. Small questionnaires through e-mails or visits to the
plant to see if customer is satisfied can also prove to be fruitful.
3. Create a marketing calendar and keep it consistently: Scheduling marketing activities that
Take place weekly, bi-monthly, monthly and quarterly will help us to avoid sudden planning or
Having ineffective seminars. By doing so, marketing will become easier since it becomes a
Regular part of our business life. Regular seminars, for example once a month or once in two
months, every 2nd Saturday can possibly be arranged. This will help the industry to relate with
the brand Stanley with an information provider and segregate it out from just another company
trying to sell its expensive products. Plus it will be like a ritual followed by Stanley and keep the
employees motivated and on their feet.
4. Leaf Lets & Brochures: Equip the sales persons with enough amounts of product catalog,
brochures and leaflets which he can leave at customers place. On this particular point I have seen
a big communication gap between the company and the sales force.
5. Freebies: Provide customers with freebies like table calendar or year book, which the
customer uses and Stanley stays at top of mind recall. This also adds its bit in the relationship
building process between the customer and the Stanley sales people.
6. Free samples: Stanley can provide their customers with free samples. As the core competency
is Quality, the company should give a free experience ride with the Stanley tools. This will not
only make customer aware of their quality but also will generate leads what can in turn convert
into sales.

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7. Improving communication: Communication is a shadowy region for Stanley works. Sales
force in different states is not very well connected to the hub. They lag proper direction to work,
proper feeding of market information and backend support to carry forward the work. This can
seriously affect the outcome.
8. Monitoring the sales force: Random planning and trial may not result in increasing the sales
for company. The sales force in every state must be well monitored and directed to a focused
approach to a particular set of industry. Sharing the purchase order generated in one state at a
particular industry can prove to be fruitful in other states too.
9. Market research team: A well developed market research team can be formed which will
research the potential for the company in every state. This data can be shared with the concerned
sales people who can effectively plan the further proceedings in that state.

Long Term:
1. Dealer & distribution network: In Kolkata market the company does not have even one
dedicated dealer or distributor of their product. All the dealers of the company also deal with
many other brands. So generally when Stanley sales people gets a lead but the quotation proves
to be weak, they push through other brands for their profit. This not only biting away Stanley’s
probable market share but also hindering its chance to grow. So the company is in the need of a
dedicated dealer in Kolkata.
2. Permanent office: A well organized local office setup is recommended to streamline the
Operations. The local employees, distributors and dealers will have a common place to have their
Periodic meetings, which will ensure identifying loopholes, potential business areas and
strategizing, further steps at regular intervals.
3. Internet Marketing: Pay per click, Social networking sites, blogs, links, search engine
Optimization. These are inexpensive ways to make the Stanley brand visible, which we have not
used yet. Sites like Face book, LinkedIn etc are being used extensively by the biggest of
companies, so what is stopping Stanley from capitalizing the huge potential of such cost-free
marketing. This will also help spread brand awareness before Stanley plans to increase its
operations in India.
2. Increase the number of Sales Team: Presently the sales team for Kolkata operations has
only three dealers and one BDR (business developing representative); hence this BDE has a

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hurricane task to cover the entire state which is highly impossible. Thus Stanley should increase
strength of its sales team.
3. Build a referral team: Good referral team involves existing satisfied customers, vendors,
Distributors, some retailers, auxiliary services like service personnel who can suggest usage of
Stanley Tools for better performance and less break down maintenance and other technical
issues.
4. Improved supply time: Average supply time for Stanley is around 20 days. This is pretty
high for the industries where the people need the tools only within few days of order. This fact is
snatching many orders from Stanley in this region. Still there is no sign of improvement from the
side of company or the dealers. So it is high time for Stanley to streamline the operation.
5. Policy makeover: As Stanley is having completely no credit policy, the dealers much time
fear to stock item in bulk. The whole responsibility goes only on the shoulders of the dealer.
They sometimes do face the cash crunch. To address this issue the company should focus on half
credit and half spot pay policy.
6. Reasonable pricing: Among the 4 P’s of marketing Indian market is most sensitive to this
one. The price of few hand tools is pretty high. This play as an active hindrance to increase the
market share of Stanley. Retaining this price Stanley only can do business in a particular niece
market. In the future time any potential competitor coming up with same standard of quality and
cheaper price can through Stanley out of the hand tools market.
7.Tag with other companies: Stanley can make a tag with leading auto mobile players, where
they can supply hand tools centrally(like Toyota).This will give the company a stable market
with a ever increasing requirement as the automobile market is also growing very fast in India.
8. Acquisition: Stanley can go for an acquisition in Indian market. As the manufacturing hub is
in Other Asian and European countries and what have to be exported in India, this increase the
cost for the product significantly. Once they have an Indian manufacturing hub they can go for
hand tools production at far cheaper rate. This will increase market acceptability of the product
to manifold.

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Chapter IX:
BIBILOGRAPHY:

– www.stanleytools.com
– www.infoengineers.com
– www.industrialtools.in
– www.wikipedia.com
– www.agelessmarketing.com
– www.marketingprofs.com
– www.hand-tools-manufacturers.com/handtools-publications.html
– http://www.hti.org/0410HTIStandards.htm
– http://www.hand-tool-manufacturers.com/suppliers/
– JÖNKÖPING INTERNAT IONA L B U S I N E S SCHOOL
– http://www.learnmarketing.co.uk/consumer.htm
– Company Manual

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Chapter X:
ANNEXURE:

The Questionnaire for the customers

Personal Information:

Name of Customer: ....................................................................................

Address: ...................................................................................................

................................................................................................................

................................................................................................................

................................................................................................................

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Contact Details: .........................................................................................

Questionnaire:

1. Which company(s) hand tools do you generally use? Please tick against the names. More than one answer
is acceptable.

 Taparia

 Eastman

 Zambia

 Everest

 Bronchus

 Others
In case of others please specify:

2. Do you use hand tools of local make (exclusive of the above listed brands)?

 Never

 Sometimes

 Most of the times

3. Please tick against the Hand tools that you frequently use:

 Sockets

 Ratchets

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  Pliers

 Wrenches

 Hammers

 Others

In case of others please specify: .........................................

.........................................................................................

4. How often do you procure hand tools? Please tick against the same:

 monthly

 2-3 months

 4-6 months

 6-12 months

 More than an year

5. Rate your Satisfaction level while using your existing hand tools. Please tick (√) on the required number.

(1: Highly dissatisfied, 2: dissatisfied, 3: average, 4: satisfied, 5: Highly satisfied)

1 2 3 4 5

6. How do you generally collect information about the available hand tools?

 General Newspaper

 Magazines

 From local dealing outlets

 From the stockiest

 From the on-field sales representatives

74
  From surrounding friends

 Others

In case of others please specify: .........................................

7. What is the average cost of procurement of hand tools in a year? Please tick against the correct option:

 Less than 1 lace

 1-3 laces

 3-5 laces

 5-10 laces

 More than 10 laces

8. Have you heard about Stanley Products?

 Yes

 No

9. Do you use Stanley Products?

 Yes

 No

10. If yes what are the products of Stanley do you use? Please tick from the following:

 Tool kits

 Storage Kits

 Sockets

 Ratchets

75
  Pliers

 Wrenches

 Hammers

 Others

In case of others please specify: .........................................

.........................................................................................

11. Have you heard about the following brands in the Stanley Works portfolio? Please tick against the
same

 Stanley®,
 Proto®,
 Vida®,
 ZAG®,
 MAC®,
 Jensen®,
 Contact East®,
 Bo stitch®,
 Taro®,
 Robotics®,
 LaBounty®,
 Innerspace®

12. How would you rate the existing hand tools that you use in terms of the following parameters? Please
tick (√) on the required boxes.

(1: very poor, 2: poor, 3: satisfactory, 4: good, 5: very good)

Rating
1 2 3 4 5
Parameter

Quality

Durability

76
 Ease of use

Price worthiness

Availability

Maintenance

Reliability

Performance

Design

Functionality

Ease in
customization
Compact
Structure

13. What are your views about Stanley products?

.........................................................................................

.........................................................................................

.........................................................................................

.........................................................................................

The Questionnaire for the dealers

Personal Information:

Name of Dealer: ....................................................................................

Address: ...................................................................................................

77
................................................................................................................

................................................................................................................

................................................................................................................

Contact Details: .........................................................................................

Questionnaire:

1. Do you stock Stanley products?

 Yes

 No

2. If yes, what is the worth of inventory of Stanley products that you keep?

 Less than 2 laces

 2-5 laces

 5-10 laces

 More than 10 laces

3. If you stock Stanley, for how long have you been stocking the products?

 Less than 6 months

 6-12 months

 1-2 years

 More than 2 years

4. How do you rate the inventory turnover of Stanley products?

(1: Highly dissatisfied, 2: dissatisfied, 3: average, 4: satisfied, 5: Highly satisfied)

1 2 3 4 5

78
5. Which other company(s) hand tools do you stock? Please tick against the names. More than one answer is
acceptable.

 Taparia

 Eastman

 Zambia

 Everest

 Bronchus

 Others
In case of others please specify:

6. How important is price as a consideration while stocking Stanley Products?

(1: indifferent, 2: not important, 3: average, 4: important, 5: Very important)

1 2 3 4 5

7. What are your views about Stanley products?

...................................................................................................

...................................................................................................

...................................................................................................

...................................................................................................

...................................................................................................

79