Market Situation Analysis Hand Tools And Investment Casting Marketing Essay

Investing casting is a extremely various procedure, used to fabricate parts runing from turbocharger wheels to golf club caputs, from electronic boxes to hip replacing implants. The industry, though to a great extent dependent on aerospace and defense mechanism mercantile establishments, has expanded to run into a widening scope of applications. Investing casting expanded greatly worldwide during the 1980s in peculiar, to run into turning demands for aircraft engine and airframe parts. Today, investing casting is a taking portion of the foundry industry, with investing castings now accounting for 15 % by value of all dramatis personae metal production. The present International market for manus tools and investing casting face the issues of:

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Casts have to be consistent within close dimensional bounds.

Casts have to be produced in high thaw point metals.

There have to be high criterions of metallurgical quality.

Costss have to be lower than for alternate techniques.

Hand tools in the universe market can be clearly divided into two types: ( a ) Developed Markets ( B ) Developing Markets. The point of differentiation is that the former are produced non by order, are subscribing to advanced methods of production and are cost effectual. The latter are different in these parametric quantities, and so enjoy small monopoly in the international market. SOLSONS is an exclusion in that, in malice of holding all the above mentioned short approachs, it enjoys 70 % universe market portion in the premium wrench section in manus tools. The followers will be top precedence for any manus tools maker:

Renewed building after recession will be major beginning of demand

Consumer demand will be the Panacea for the worsening manus tools industry

Self-do kits and retail would be a moneymaking market for companies to resuscitate concern

Reduce overall Costss so as to drive incursion and ingestion

SOLSONS tools claim to fame is that they are manufactured “ First clip in the universe ” under International enrollment of patents, designs, right of first publications and hallmark. They have won many international awards for their tools. The R & A ; D squad at SOLSONS spends considerable clip on planing the biotechnologies of the tool so that it entreaties to the daily client. The wrenchs produced by them are chiefly for B2C gross revenues in the US.

Design Audited account:

To set about the Design Audit of the house, we have loosely eight countries to concentrate on:

Merchandise

Selling

Management and Decision Making

Distribution and Client Servicing

Production Procedure and Resource Utilization

Merchandizing

Workplace and HR

Communicationss

The premier consideration for the audit will be ( a ) Simplicity ( B ) Sustainability ( degree Celsius ) International criterions.

Evaluations will therefore be as: Excellent ( 5 ) , Satisfactory ( 3 ) and Basic ( 1 )

Merchandise:

SOLSONS Industrial Wrench/Spanner:

Rack and Pinion design: Is acquiring out dated and is rapidly acquiring replaced by angular designs, so as to guarantee clasp over uneven surfaces. The present design is suited for curving surfaces like those of a bolt, but non over undulating surfaces

More force produces more clasp: This is palling to utilize during physically demanding operations, as more the force, more the clasp. Thus easiness of usage demands to be taken into history even in utmost state of affairss

Rivet of unstained steel: the steel used for the stud, the most important portion of the tool, is made of chromium steel steel which does non give greater flexibleness for rotary motion compared to super metals.

SOLSONS Pipe Wrench

Shorter grip: makes it hard to use more force per unit area, for more hard operations. Less ergonomic sensitiveness in the design leads to greater hurting to the manus

Rivet of unstained steel: the steel used for the stud, the most important portion of the tool, is made of chromium steel steel which does non give greater flexibleness for rotary motion compared to super metals.

Therefore it is less easy to utilize, even though it may be one of the best long lasting tools of its sort available. Besides given the alteration in terrain of use, it is less adaptative. So on the audit graduated table:

( a ) Simplicity: Satisfactory ( 3 )

( B ) Sustainability: Excellent ( 5 )

( degree Celsius ) International criterions: Satisfactory ( 3 )

We do non hold any illustrations of castings, as they are customised and therefore non generalised.

Production Procedure:

SOLSONS has loosely labor-intensive theoretical account of production, with the age old perfected technique of Lost Wax as the mechanism of casting and production. Even for the production of manus tools, the technique is labour intensive. The concluding phases are important for the coating of the merchandise, and they are all worker-driven

Wax injection is done manually which consequences in serious hazards to the workers

Ceramic shell doing for the mold is once more a manual exercising, invariably blowing ceramic slurry due to managing in unfastened environment

The liquefied metal is poured into the dramatis personaes in an unfastened environment, without any high temperature screen, as is found in standard furnaces, therefore exposing the workers to high hazards of accident and exposure to heat

The concluding grinding is done manually, therefore doing it hard to do preciseness equipments, as the latter require the same size to be made every clip

Besides a major concern is the low batch size end product and utmost clip slowdown. SOLSONS produces merely on order, and in batches of a few 1000s, with a lead clip for projecting and sample creative activity of 6 hebdomads and a complete batch production of 6 hebdomads, therefore doing it a extremely inefficient procedure of production. The companies who may desire to hold the parts shipped to them instantly may happen themselves in a clip slowdown, and therefore may even travel in hunt of surrogate providers.

Therefore on the parametric quantities of the audit, Production fares as:

Simplicity- Basic ( 1 )

Sustainability- Basic ( 1 )

International standards- Basic ( 1 )

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Selling:

SOLSONS is a B2B company soon. So its mark group is merely commercial purchasers like makers of cars, house clasp equipment, national conveyance governments ( Indian Railways ) , building companies etc. The company does non concentrate on selling to the retail consumer, even if they may be purchasing the merchandises.

In a B2B scenario, selling is different in the sense that most of the selling is in the signifier of:

Company Websites

Pitchs and Presentations

International and National Trade carnivals and Pavillions

Promotions on the Internet, with fake operation

Presence in limited and extremely targeted channels like Infomercials for illustration

These stairss are traditionally taken by organisations who wish to merely “ Market ” in the rigorous sense of the term and who wish to be around their clients merely, and non make a general Brand Image of quality and dependability in the manus tool industry.

SOLSONS has an impressive web site which is extremely synergistic and which serves as the gross revenues and order point. The site is easy to voyage and is a well-designed B2B site with easy order and payment options, with offline networking.

B2B gross revenues are by and large characterised by the followers:

Presence in B2B Platforms of exchange like Design Workshops and Exhibitions

Presence in B2B battle platforms like Social Media

Training and Customizing pitches for the clients in the B2B Segment.

Invention and leading in the section

SOLSONS has no presence in the Social Media, where most of the B2B action takes topographic point presents, and is besides non active in the B2B platforms for thought exchange. It is a company which sells in the USA, its largest market, chiefly through its web site, and uses selective promotional infomercial channels like QTV in USA. Thus SOLSONS is passing more on traditional media, which is expensive and unmeasurable, compared to the virtually free societal media platform, where relationship edifice is the cardinal word and word of mouth rapidly additions acceptance among possible clients.

Therefore SOLSONS should ideally be using more advanced media platforms, where the participants are. SOLSONS challengers are all in the Social Media and Relationship Marketing domain.

Therefore on the graduated table of the audit:

( a ) Simplicity- Satisfactory ( 3 )

( B ) Sustainability- Satisfactory ( 3 )

( degree Celsius ) International Standards- Basic ( 1 )

Gross saless and Distribution:

SOLSONS being a B2B Brand, is available on the company web site and by offline channels for arrangement of orders and testing of samples. SOLSON industries and distributes on its ain at least to the retail clients, till the degree of the retail merchant, therefore making off with the demand for a stockist, warehouse ( other than company ‘s ) and extinguishing all mediators. Distribution is a dearly-won matter, if a company ‘s nucleus competence is non distribution but gross revenues.

Therefore SOLSONS equipments are really dearly-won compared to local offerings. To compare a wrench costs Rs 50 compared to a SOLSONS which costs Rs 1400. Thus the cost can be reduced if SOLSONS follows a logical and efficient distribution system.

SOLSONS should follow two options: ( a ) Either leave distribution to competent bureaus and enhance incursion ( B ) Start store of its ain in the signifier of sole company owned mercantile establishments. But SOLSONS is a little company, so the latter will non be practical.

Therefore on the audit graduated table:

( a ) Simplicity- NA

( B ) Sustainability- Basic ( 1 )

( degree Celsius ) International Standards- Basic ( 1 )

Selling:

SOLSONS has its presence felt in outstanding trade carnivals and exhibitions, which have drawn acclamation and acknowledgment worldwide, from bureaus like the German TUV which accredited its merchandises with an ISO 9000: 2001, 1st Prize in National Hardware Show, Chicago USA, Award from the WIPO in Switzerland etc.

It has near to 20 patents to its recognition in merchandise invention. All these believable accomplishments are clearly leveraged in its selling. The Packaging is one which has won International acclamation for its simple, hardy and eco friendly packaging, without the usage of bubble wrap, and plastic overexploitation, therefore looking to be hardy and heavy.

The manner in which the wrench is packaged besides adds to the entreaty of the tools. The wrenchs are semi-packed ; the caput of the tool is in a crystalline screen with a bolt attached to the caput, and the grip is free. This allows the client to grip the grip of the wrench and acquire a feel of the full tool. The client can travel around the clasp and see how easy it is to utilize the wrench. The packaging design has won international acclamation for its simple, hardy and eco friendly nature. The packaging reflects all the belongingss that SOLSONS stands for: Dependability, Functional Nature and Sturdiness.

So the audit would be like:

( a ) Simplicity- Satisfactory ( 3 )

( B ) Sustainability- Satisfactory ( 3 )

( degree Celsius ) International Standards- Satisfactory ( 3 )

Management and Decision Making:

SOLSONS is a household tally concern, and is a closely held company, so that it does n’t hold any stockholders and plants by its Promoters. The proprietors of the company are into other sectors of concern every bit good, so this is non the lone focal point.

Decisions are taken at the direction degree, with one representative from the Workers Union. The Board of Directors includes 15 full clip members with 14 of them being kiping members ( i.e. members who come merely for the meetings and are non portion of the day-to-day working ) . This makes it a extremely unrepresentative working system which is reflected in the day-to-day working every bit good.

The determination devising is top to bottom and workers have no room in the determination procedure. This can be seen in a figure of cases including the company make up one’s minding to set about orders for other makers, without confer withing the workers.

So on the audit graduated table:

( a ) Simplicity- NA

( B ) Sustainability- Basic ( 1 )

( degree Celsius ) International standards- Basic ( 1 )

Workplace and HR:

The workplace adheres to basic safety norms like protection from fire, ceramics etc. It besides has certified machinery and richly broad workplace. But the Basic layout of the organisation ‘s disposal floor is against rules of perfect HR direction.

There is a deficiency of interaction with the workers force, as the General Manager ‘s and other cabins are far off from the Workers Workplace and Rooms. There is minimum interaction and most of the yearss, the General Manager does non see the mill workplace.

Therefore on the graduated table of the audit:

( a ) Simplicity- Satisfactory ( 3 )

( B ) Sustainability- Basic ( 1 )

( degree Celsius ) International Standards- Basic ( 1 )

Communicationss:

The chief purpose of SOLSONS is to come out with extremely advanced designs that are good to look at and are easy to utilize. This is their chief merchandising point. They play on the design portion as their chief selling tool. There are elaborate descriptions and images of the wrenchs on the web sites, informercials particularly in the US and their booklets. SOLSONS tools use bluish everyplace, whether it is the coloring material of the grips of their tools, to their packaging along with the web site and logo design.

SOLSONS tools designs are what entreaties to the client, and this is what allows them to bear down a premium monetary value from it. On sing the mill nevertheless, for tools that are so high on design, the mill and the production procedure was really dissatisfactory. The procedure is chiefly labour intensive. In fact the criterion of production does non fit up to international criterions like their tools do. The web site through which SOLSONS sells its tools is instead impressive, as it has a elaborate description of all the tools, including the packaging design along with a white paper on each of the tools foregrounding the designing of the tool. Each tool comes along with the cast of all the International awards and enfranchisements it has received. Even the booklet focuses on the design facet of the tools.

On the parametric quantities of the audit, Communication fares as:

( a ) Simplicity – Basic ( 1 )

( B ) Sustainability – Basic ( 1 )

( degree Celsius ) International Standards – Basic ( 1 )

Component

Simplicity

Sustainability

International Standards

Mark

Merchandise

3

5

3

1.8

Selling

3

3

1

1.18

Management and Decision Making

0

1

1

0.33

Distribution and Client Servicing

1

1

1

0.5

Trading

3

3

3

1.5

Production Procedure

1

1

1

0.5

Workplace and HR

3

1

1

0.83

Communicationss

1

1

1

0.5

7.54

Calculation of mark:

Recommended Design Strategy

SOLSONS is based on the nucleus belief of “ Endurance ” , “ Versatility ” , “ Stamina ” and “ Comfort ” . Thus these nucleus messages should be reflected in its design scheme every bit good.

Merchandise:

The Rack and Pinion theoretical account should be replaced by designs of International criterions. Continuous invention in design should go on at SOLSONS if they have to sell internationally.

Biotechnologies should be considered while planing the theoretical account. This would intend lesser energy spent on utilizing the tool. This would besides intend that more strenuous work can be done easy with the aid of ergonomic design

The Handle for illustration can be made from stuff other than gum elastic, for case with strengthened nylon, so that there is more endurance, clasp and shock-proof. The grip needs to be with a soft stuff so as to be tough and comfy at the same clip: the properties that SOLSONS stands for.

Production Procedure:

Wastage due to the usage of Lost Wax technique demands to be addressed. A whole new replacing of the production technique may non be possible for SOLSONS.

“ Merely in Time ” is the technique to be adopted by SOLSONS for its production procedure. This is to intend that the customization should be pushed for a ulterior phase, so that more common parts can be used to do a diverse set of finished orders. This will ensue in a batch of nest eggs in footings of Production clip. Thus the Production lead clip can be reduced from 6 hebdomads presently to possibly 2 hebdomads.

Selling:

SOLSONS needs to be current and up to day of the month with the B2B Marketing section. The present trust on paid channels which are inefficient can be replaced by holding a better thought out marketing scheme in topographic point

Gross saless and Distribution:

SOLSONS has no Retail distribution system, so that in it needs to put up a partnership with Distributors who are in congruity to its Brand Image.

For illustration, in the USA, it can spouse with “ Home Town ” , which has a similar proposition of “ Reliability ” and “ Comfort ” as the Brand Identity.

Therefore with an ideal spouse, SOLSONS will be able to come in into retail distribution, and will be able to gain greater acceptance by partnering with the right sort of spouses.

Management and Decision Making:

The Top Down determination devising procedure has to be replaced with a mix of both Top Down and Bottom Up designs. This will beef up the policy of “ Reliability ” as the face of the company even in its Internal Stigmatization

Internal Branding needs precedence. The Employees need to be given SOLSONS Branded uniforms and must hold the SOLSONS Logo on it.

Other Employee Branding methods besides need to be adopted

Workplace and HR:

The Company ‘s Vision and Mission Statement needs to be clearly displayed, and company stigmatization must be done in the Premisess of the mill and disposal.

The mill is unusually clean, but non green. The message of “ Endurance ” and “ Sustainability ” semen from holding a Green Workplace. This should be achieved

The Office infinite can be redesigned with minor accommodations as this may be economical and easy to prosecute and plan

The Company must take a breath and populate what it stands for merely so will the Stakeholders ( anybody associated with SOLSONS ) , could acquire a sense of the committedness that the company has.

This besides means that Visitors and even Clients can hold a close position of the workers and their work civilization, factors that can potentially act upon B2B concern

Therefore, the above mentioned recommendations are practical and easy implementable. These are extremely effectual and will function to hike SOLSONS image in the B2B section.

Communicationss:

SOLSONS needs to concentrate on other non-traditional methods besides the informercials and booklets. They need to increase their presence on the cyberspace. Even though they have an online shop, they need to farther work on their communicating. There should be print ads in India in concern magazines, besides occasional print ads could be given in the National dailies. We besides found out that when we search for wrenchs in Google, SOLSONS does n’t demo up. SOLSONS should put in some exercisings to construct their trade name over the cyberspace. They besides need to travel in for Search engine optimisation ( SEO ) so that whenever wrenchs are searched for, SOLSONS is one of the top hits. SOLSONS needs to subscribe up for Google Ad-words to increase its on-line advertisement.

Challenges in Execution:

Economic: SOLSONS may non hold adequate financess to deviate into a redesigning of the Office floor. This may intend that the workplace may stay non-interactive. This may besides intend that the Employee Branding may be hard and may non travel good with the employees. But it can still be achieved.

Resistance from Management: Sing altering the direction determination doing procedure, and besides sing sharing the conference room with the workers, since this is a household owned concern.

Others: Challenges like workers opposition, precedence etc may besides hold to be addressed.

Overall Thought Procedure:

At the last minute, we had to alter the company we ‘d chosen from Transtadia to SOLSONS since our contact individual at that place could n’t acquire us an assignment on clip. As a consequence we picked another Indian company which had a prima design repute and was a market leader in the international sphere. A batch of work was done in a really short span of clip. SOLSONS being an equipment maker, and none of us holding any anterior experience in this sector ; we all took up the duty to research on the company together. We started out by reading up about the company on the cyberspace followed by a mill visit. We visited their works in Ahmedabad maintaining in head the assorted design facets of the company.

Once we ‘d seen the company we were able to brainstorm and come up with different maps of the house in which design rules were incorporated. After we decided on the 8 maps ( Product, Marketing, Management, Production, Distribution, Merchandise, HR and Communication ) on which the design audit was done, we picked 3 parametric quantities with which they could be evaluated. These were the simpleness and sustainability of the design facets and whether it met international criterions. Further these parametric quantities were rated on a graduated table of 1 to 5 as Basic ( 1 ) , Satisfactory ( 3 ) and Excellent ( 5 ) since we merely wanted to demo the extent of its pertinence and non mensurate its exact degree of discrepancy.

Each of us worked on two facets of the company, conveying out what we ‘d expected to see in that peculiar field and how world differed. We besides came up with a few recommendations which seemed executable for SOLSONS to take up in the following 3 to 5 old ages. Working on this assignment showed us how much design has become an built-in portion to the success of any company. In future, while working on any trade name we believe that we will be able to better appreciate the importance of design and the important function it plays.

Relevance of Design in India

Design, as we ‘ve come to recognize, can be an improbably effectual tool for happening solutions to jobs by using it to a assortment of different verticals within organisations, and is something that should be inherently a portion of the idea procedure and strategic programs of the organisation, if it is to construct a successful trade name.

Contrary to popular belief, design is n’t needfully a procedure that has to be enormous sums of money in order to do an impact, which is where it starts off being of important importance to India, a state where more than 70 % of the population is employed in the field of agribusiness, yet which contributes less than 30 % to the state ‘s GDP. This, harmonizing to most high economic experts and agricultural scientists, is chiefly due to the labour-intensive attack to farming within the state, coupled with deficiency of modern seeds, fertilisers and pesticides and a long concatenation of jobbers who drive up consumer monetary values and short-change the already underprivileged husbandmans. This is clearly a ill designed procedure, which could be improved through the design of better seeds, fertilisers and pesticides, through better designed communicating schemes to convert husbandmans to follow these schemes, and through planing a better system of trading and supply concatenation direction to assist both the husbandman and the concluding client addition more value. All of which can be accomplished at really sensible costs.

But this position would still be looking at design devising alterations harmonizing to western criterions and methods of change-creation. The existent challenge for India lies in the creative activity of cultural, autochthonal design solutions to jobs through a thorough apprehension of the civilization, perchance after holding faced the job first-hand. A great illustration of this sort of thought is bio-gas cookers, fueled by compost from farm animal, which redefined the life of the rural Indian adult female who antecedently had to invariably inhale the toxic exhausts of wood fume as she cooked over a wood fire. This engineering delivers eco-friendly, economical fuel and besides acts as an agent of societal alteration, bettering the life style and wellness of the small town adult females.

One of the most active people in the pursuit for making societal alteration at the grassroots level through invention and design is Anil Gupta, an IIM professor and laminitis of the Honeybee Network, a crucible of like-minded persons, pioneers, husbandmans, bookmans, academicians, policy shapers, enterprisers and non-governmental organisations ( NGOs ) . The name of the administration derives inspiration from the natural behavior of Apis melliferas, who extract nectar from flowers, while at the same time pollenating them. Both the Apis mellifera and the flower terminal up profiting from this common exchange. Besides, the Apis mellifera does n’t maintain the honey for itself ; it deposits it in the hive for the benefit of the community of bees. Similarly, this administration aims to make a common exchange between the cognition holder and the web, giving the cognition holder acknowledgment, support and a portion of the returns derived from any pecuniary benefits derived from the cognition. This strategic vision of the administration, modelled on a natural phenomenon, is a great case of design-led thought.

Mr Gupta believes that there is a great crunch in resources amongst the hapless, but mental resources are non in deficit. He believes that the job is that these mental resources are non being utilized to their upper limit. He cites the illustration of the National Rural Employment Guarantee Act, which promises a lower limit of 100 yearss a labor a twelvemonth to the hapless, work which he believes involves physical labor such as delving roads and interrupting rocks, without valuing the heads of these people. He besides says that hapless people may non hold many demands, but they do hold their ain unique demands, and they are non willing to digest sub-standard solutions to those demands, which is why we believe it is indispensable that these solutions are designed indigenously to carry through those demands.

What truly convinced us about his statement are the illustrations of superb innovations that have been developed indigenously, at a low cost, to serve the specific demands of the hapless rural population. For illustration, Sheikh Jahangir of Jalgaon, Maharashtra, has developed a flour bomber, modified from a scooter, and goes door-to-door anchoring little sums of flour for homemakers, something which the bigger flour Millss would n’t make unless there were large measures to crunch. He ‘s besides developed a washing machine along similar lines, which provides convenience to many rural adult females, at a really low cost ( less than one rupee per pail of apparels ) .

Even though these merchandises may be autochthonal and low-priced, it is imperative that they remain high on quality as there is enormous range for such autochthonal design to be used in similar conditions abroad. For illustration, a tree-climbing setup invented by Appachan, a coconut climber in Kerala has been purchased by a phytologist in an America in order to assist her mount the top-most ranges of trees in woods she visits across the universe so that she can acquire even better samples for her work.

Even though there may be enormous sums of creativeness and design-thinking amongst the people in rural India, there ‘s really small of it that urban India is exposed to. Besides a few cultural picture, pots and apparels, we extremely underestimate the power of creativeness that the heads of rural India could hold upon us. For illustration, an clever amphibian rhythm developed in India that can be used to go across a lake has unhappily been ignored by assorted lake yachting governments in India. Even fliping it to assorted State Governments as a tool to be deployed during inundation alleviation steps has non been successful. This is because the province authorities ‘s organisational construction and design, a relic from the Victorian epoch, is highly inefficient due to over-staffing, corruptness and convoluted procedures for merely about everything.

The other obstruction that these discoverers face is the deficiency of investing from corporate India, which is once more a map of the inefficient design for the Indian corporate sector. They all seem to demand scalability of a merchandise if they are to put in it, yet they do n’t gain that there may be other theoretical accounts except scalability that can be implemented, or possibly they can unambiguously tweak the scalability theoretical account to accommodate rural Indian conditions, yet no 1 seems to be ready to take up the challenge. The deficiency of disposition to plan a concern theoretical account that benefits both their caissons every bit good as of the cognition holder and the community seems to be rather confusing. And this is aching rural India in its quest to bridge the spread in income between itself and urban India, which threatens to gyrate out of control, a byproduct of the inefficiency of the design of democracy ( or its strength, depending upon one ‘s position ) . In a state with an already unstable political design dwelling of volatile elements like alliance political relations, separationist provinces and the menace of a all-out civil war against the Naxalites, it is imperative that stairss be taken to guarantee that the spread between rural and urban India is bridged, and design can be a really effectual tool in bridging this spread.

As MICAns, we believe understanding and believing design will be an highly effectual accomplishment for us to possess, no affair what field we choose to prosecute in life. As with most MBA pupils, a considerable per centum of us will be bitten by the entrepreneurial bug some clip in life, and our cognition of design direction and strategic design will assist us believe in such a manner from the clip the first concern program is drawn out, and is bound to play an of import function, whether consciously or non, in determining the fate of our future ventures. For those who take up occupations, whether in the corporate universe or within the authorities, believing about how to optimize the design construction of the administration, its individuality, its procedures etc. is an effectual manner to cut down disbursals, create greater value for consumers and increase its eco-friendliness. At the terminal of the twenty-four hours, it ‘s of import to retrieve that every object is made up of the same energy affair. What separates us from others, both animate and inanimate, is our molecular construction. Simply put, its design that makes us what we are.