AN EMPERICAL STUDY ON THE SALES OF TILES (CERAMIC INDUSTRY)

EFFECTED BY OTHER SUBSTITUTES

*DR.M.EHSAN MALIK, M.MUDASSAR GHAFOUR, NOKHAIZ ALI

ABSTRACT

Our study presents sale of tiles (ceramic industry) effected by other substitutes. The study
investigates whether the substitutes are affecting the sale of tiles or not. These study
inquiries on basis of the different factors. After determine the factors give suggestions to
the managers that how they can increase the sales. The Research also investigates the
relationship among the sales of specific tiles with the other Substitutes. The study is
invariably conducted in Non-Contrived settings. As being research students we focused on
a cross sectional analysis between National market and other substitutes. Samples of
different organizations and industries are executives, employees, students, general public,
distributors, and retailers. After Elimination of missing data, the sample consisted of 92
respondents. The paper provides an overview of Resources-Based View (RBV) theories
along with detail discussion. It also selected five independent variables i-e color variation,
size variation and China tiles. Data was analyzed through SPSS software. This present the
initial findings of data collected. The study shows that the industry is not working
efficiently. It is up to the management reduces the cost of tiles. Improve their quality
because study proves that the prices are high and the quality is low due to which people are
moving toward other substitutes especially China tiles.

Keywords: Resources Based View (RBV).Substitutes of tiles, Color Variations in tiles,

Size Variations in Tiles and Elimination.
__________________________________
* Dr M Ehsan Malik (Director General) University of the Punjab Gujranwala Campus
* Muhammad Mudassar Ghafoor (Incharge Business Administration Department) University of the Punjab Gujranwala Campus
* Nokhaiz Ali (Student of BBA) University of the Punjab Gujranwala Campus
INTRODUCTION

In today’s environment an empirical study on sale of tiles is truly a research interest.

Factors that influencing the sales of tiles like perfect competition, variety of sizes, types,
colors, quality of tiles, technology etc are important to be consider here. The relative
impact of these factors will vary from customer to customer and area to area. Price
determination is also play an important role in target market, due to China tiles. This study
reported here, examines the relatives impact of substitutes. Despite a lot of development, it
appears that Pakistan is lagging behind. This may be due to Pakistan is slow adopter of new
technology; this can be attributed to lake of management, lake of training and perhaps lake
of policies.
Opportunities for developing and adopting better technologies provide a
possible solution for this raising problem of declining sale. Estimates on the extends of
inefficiency can help to decide whether to improve efficiency or to develop new
technologies to raise tiles productivity which may enhance sales in a better way. There is
lot of organizations but we selected only two of them i-e Sonex and Master Tiles. Because,
these organizations have strong organizational culture, large number of employees, large
area of work. These are the main variables which related to our research first three
variables are independent (1) size variation. Size variation can affect the sale; it may not
affect the sale (2) color variation. Variety of color is important factor to increase the sale
volume. (3) China Tile It can also affect the sale (4) creative synergy (5) new technology.

Review of Literature

It is a transfer of goods for a price in money paid or promised (rudra sai baba,dictionary of
commerce and management). Item sold or the number of items sold (P.H.Collin,dictionary
of banking and finance, third edition). The development and the use of techniques to
inform customers about the value of a company’s product in order to persuade them to bye
them(Gareth R.Jones,2007 introduction to business).It is the transformation of the goods
and services from one Party to another party for the sake-of profit (M.A.Ghani,principle of
ac-counting Eight edditions,2007), Knowledge, Tools, Equipment and work techniques
used by an organization in delivering its product or service(Bartol teinmatthews martin
,management enhance edition). Every thing from phones and copiers to computers,
medical imaging devices, personal digital assistant and various software programs that
make business processes more efficient and productive(Nickels, mettugh, mcttugh,
understanding business seventh edition) The knowledge, tools, techniques and activities
used to transform the o-organization’s inputs into outputs.(Richard L.Daft,Dorothy
Marcic, understanding Manage-ment forth edition) The sum total of knowledge of ways of
doing things(Koontz Harold,-Robert M.Fulmer,A practical introduction to business 1978
revised edition). A processed used by a firm to transform input resources into output
googds and services(Robert.J.Hughes,Jack R,Kapoor,1976) Ability of the whole to equal
more then the sum of its part(Bartol teinmatthews martin, management enhance edition).
The condition that exit’s when the organizations part interact to produced a joint effect
that is greater then the sum of the part a-acting alone(Richard L.Daft,Dorothy Marcic,
understanding management forth edition). Sit-uation in which the economic value of
separate, related business under one ownership and management is greater then the
business is worth separately (angelo Kinicki,Brian K.Williams,Management third
edition2008). That aspect of things that is caused by differing qualities of the light
reflecting or omitted by them, definable in terms of the observer or the light variety of
expression(Kiren,R.S1997). The extent or degree to which something varies in color
known as color variation (Kirin, R.S1998). The physical dimensions,
propotions,magnitude or extent of an object character, value , or status with reference to
relative importance or the capacity to meet giving requirement (Mass,J.B1979). The extent
or degree to which something physically varies known as size variation (David
Mcguinty,President of NR-TEE).

Objective of study

Objective of study is to determine the factors which are playing vital role in Influences
sales or whether technologies could increase the efficiency regarding to sales. After
determine the factors give suggestions to the managers that how they can increase the sales.
Theoretical Framework

Sales

Conversion of input into output known as Sales. With the help of sales a business can earns
profit. In the current position of business sales play an important role because without it no
firm can survive. Our major variable is Sale. In this study we have taken sales as dependent
variable which is influences by the different independent variables. Item sold or the number
of items sold (P.H.Collin,dictionary of banking and finance, third edition).

Color variation

In one of the major factors color variation are highly influences sales of tiles ceramic
industry. We can say that color variation is the changing extend or degree to which
something varies while that aspect of thing that is caused by differing qualities of the light
reflected or emitted by them, Definable in the terms of the observer or of the light variety
of expression. The extent or degree to which something varies in color known as color
variation (Kirin, R.S1998).

Size variation

The physical dimensions, portions, Magnitude or extent of an object corrector, value or

status with the reference to relative importance or the capacity to meet giver requirement.
The extent or degree to which the size of something varies is known as size variation it is
also our independent variable which highly influences to the sales. The extent or degree to
which something physically varies known as size variation (David Mcguinty,President of
NR-TEE).
Technology

Another variable in theoretical framework is the technology which also effecting sales.
The knowledge, tools, techniques and activities used to transform the organizations nputs
into outputs. Technology play vital role in the economic of the every sector prevailing in
the industry. ) The sum total of knowledge of ways of doing things (Koontz Harold,-
Robert M.Fulmer,A practical introduction to business 1978 revised edition).

China Tiles

Our major factor is the China tiles on which we are focusing under our study whether it
influences or not the entire market of Pakistan.

General Hypotheses

Based on the above information, our study is designed to test the following hypotheses: (1)
Is variation in color influence the sales? (2) Is variation in color not influence the Sales? (3)
Is Variation in size effect the sales? (4) Is Variation in size not effect the Sales? (5) Is
Substitutes especially China tiles highly influences the sales? (6) Is Substitutes especially
China tiles highly not influences the sales?

Method

Organization Selection:

Since there have not been prior study that formally links sales with different type of
substitutes influence. For analysis of our study and its implications there are many
organizations on which we can gather data but here, we mainly focused on two
organizations which are highly competent in Gujranwala ceramic industry (Master,,Sonex)
we focus on the master and sonex because of their latest technologies, high Employment
opportunities, international trade, efficient management and for their competitive abilities.
We are observing from last two years that their dominancy in the national market are
decreasing behind this what reasons are taking place.

Research Instrument

The instrument that is used by us is Questionnaire. We used Questionnaire as a primary

source of gathering information from the respondents who are related to our study. As a
general research another scale portrayed in the form of a comment question(in which
every one have write to give his own opinion which he likes to give and we see that every
comments are different from the each other in the regard of usage experience and age.) In
our questionnaire we applied at most all types of scales.
The instruments comprised three set of scales. The first is the Nominal
scales and second is the Ordinal scales. In the former scale respondent can be grouped in
the two categories Male and Female and the later ranked order the categories in some
meaning full way. In the interval scale respondent are asked likely hood (1) Strongly agree,
(2) Agree, (3) Neutral,(4) Disagree and (5).Strongly disagree) English was employed all the
questionnaire.

Study Setting and Time Horizon

The study is invariably conducted in Non-Contrived settings. We conducted study to

establish cause-and-effect relationship using the same natural environment in which
employees are normally performed their duties. As being a research students we focused on
a cross sectional analysis between National market and other substitutes.

Sample

Our study related population is 120 from which we collected sample of 92 peoples in which
under Graduate program students, Business owners, Whole sellers, Retailers or persons
who have knowledge or idea about tiles are included. After elimination of 8 respondents
from which we gain missing data our sample remains 92 from 100.

Reliability of Measures

Our questionnaire was pretested by Research Supervisor. The measurement scale in this
study for its internal consistency by investigating inter-item correlation matrix and a
number of reliability coefficients (Cronbach’s alpha; Cronbach, 1946). Basic guideline For
individual correlations in the inter-item correlation matrix may vary. The acceptance level
can go as low as 0.70 or 0.60(Robinson, 1991). All the measures used in this study have
Cronbach’s alpha above 0.60 indicating acceptance reliability.

Analysis
The measurements shows result which are as following:

Case Summary

Dependent vs. Sample Mean Std. Deviation

Independent
Sales * Preference 92 1.0543 .2279

Sales * Construction 92 1.0543 .2279

Sales * Color 92 1.0543 .2279

Variation
Sales * Size Variation 92 1.0543 .2279

Sales * Performance 92 1.0543 .2279

Sales * Dominancy 92 1.0543 .2279

This the over all summary of variable’s Mean and Standard deviation with respect to
Sample.
 Sales * Preference

Preference Mean N Std. Deviation

Better Quality 1.0435 69 .2054

Brand Name 1.0000 3 .0000
Low Price 1.1000 20 .3078
Total 1.0543 92 .2279

Preference
80

60

40
Frequency

20

0
Better Quality Brand Name Low Price

Preference

The result shows that people are giving preference to China tiles for its better quality and
due to some extent of low price.

Sales * Construction

Construction Mean N Std. Deviation

Houses 1.0000 10 .0000

Offices 1.0000 9 .0000
Every Type 1.0694 72 .2560
Not Suitable 1.0000 1 .
Total 1.0543 92 .2279
 Construction
80

60

40

Frequency
20

0
Houses Ofiices Every Type Not Suitable

Construction

The result shows that for which type of construction China tiles are suitable and Graph
reflect for every construction China tiles are suitable.

Sales * Color Variation

Color Variation Mean N Std. Deviation

Yes 1.0625 64 .2440

No 1.0357 28 .1890
Total 1.0543 92 .2279

Color Variation
70

60

50

40

30
Frequency

20

10

0
Yes No

Color Variation

The result shows that maximum people can switch over from one brand to another due to
color variation
 Sales * Size Variation

Size Variation Mean N Std. Deviation

Yes 1.0204 49 .1429
No 1.0930 43 .2939
Total 1.0543 92 .2279

Size Variation
50

40

30

20
Frequency

10

0
Yes No

Size Variation

The result shows that normally people can switch over from one brand to another due to
size variation

Sales * Performance

Performance Mean N Std. Deviation

All Right 1.0476 42 .2155

Excellent 1.0600 50 .2399
Total 1.0543 92 .2279
 Performance
60

50

40

30

20
Frequency

10

0
All Right Excellent

Performance

The result shows that at what scale people are rating about performance of China tiles.

Sales * Dominancy

Dominancy Mean N Std. Deviation

Strongly Agree 1.0000 12 .0000
Agree 1.0385 26 .1961
Neutral 1.0690 29 .2579
Disagree 1.0952 21 .3008
Strongly Disagree 1.0000 4 .0000

Total 1.0543 92 .2279

Dominancy
40

30

20
Frequency

10

0
Stongly Agree Nuteral Stongly Disagree
Agree Disagree

Dominancy

The result shows that is tile industry reduce the dominancy of imported brands maximum
people said that neither agree nor disagree
Discussion

This study has achieved its objective of providing the relationship between Sales and Size
Variation, Color Variation, China tiles. The two are negatively affecting the sales of tiles in
ceramic industry, one is the china tile. Examining the tiles of China the result came that it
has better quality and low prices. Further, the China tiles available in every sizes having
laser cutting in all types of colors which are not available in Gujranwala ceramic
industry(Master, Sonex). So this is the reason that the people moved towards to the China
tiles and other imported brands and hence the sale of ceramic industry are declining.
In terms of strength of sales within a country, the result clearly indicated
that their sales are highly influenced by the factors on which we formulated our general
hypotheses. Second is the cost of raw material which we analyzed during our research.
While having the educated employees, latest machinery, new technology, qualified staff the
sales are decreasing highly influence due to the cost of raw material. The prices of raw
material are very high so that’s why the prices of their tiles are also very high.
Managerial Implication

Findings

The study shows that the industry is not working efficiently so that’s why the sales are
decreasing from last 3 years. It is up to the management reduces the cost of tiles and
reduced the prices of tiles. Improve their quality which is very important because study
proves that the prices are high and the quality is low due to which people are moving
toward other substitutes especially China tiles. Further more, we also find the cutting of
tiles is not same, every block of tile consisting different sizes which creating problem for
the constructors. Manager should try to adopt method of laser cutting so that’s why
desirable results and goals can be achieved.
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My Group Members:

Farhan Saif, Umair Aziz, Shaker Baber, Anwar-ul-Haq