PROJECT REPORT

ON
VALENTINE KITCHEN

COURSE : GROUP 5:
MARKETING MANAGEMENT SUSHANT AHUJA (190103155)
RACHIT TANEJA (190103106)

SAKSHAM AGGARWAL (190101099)

KANAV KAUSHAL. (190103064)

SOURAV KAR (190103148)
DEVANSHI KAJARIA (190102015)
 TABLE OF CONTENTS
Table of Contents

TABLE OF CONTENTS…………………………………………………………………i

LIST OF FIGURES……………………………………………………………………...vii
ABSTRACT……………………………………………………………………………..v

CHAPTER 1: INTRODUCTION……………………………………………………….3
1.1 MARKETING STRATEGIES………………………………………………3
1.2.PURPOSE OF THE STUDY…………………………………………………4
1.3 ABOUT THE INDUSTRY……………………………………………………..5-
6
1.4 DETAILS OF THE BUSINESS…………………………………………………….7
CHAPTER 2: METHODOLOGY………………………………………………..4
2.1 DATA COLLECTION………………………………………………………4

2.2 DATA ANALYSIS…………………………………………………4

CHAPTER 3: MARKET REVIEW…………………………………………………….

3.1 SEGMENTATION….……………………………………………....12
3.2 TARGETING……………………………………………………..12-13

CHAPTER 4: COMPANY ANALYSIS……………………………….

4.1 SWOT ANALYSIS OF THE COMPANY……………………………. 14

4.2 PORTERS FIVE FORCES……………….…………………………………….15

4.3 COMPETITOR ANALYSIS……………………………………………..16

CHAPTER 5: RECOMMENDATIONS AND

DISCUSSION………………………………………17
5.1 RESULT & DISCUSSIONS……………………………………….
5.2 CONCLUSIONS……………………………………………………17
5.3 KEY RECOMMENDATIONS FOR THE
BUSINESS…………………………………………………..18
REFERENCES………………………………………………..19
 CHAPTER 1

1.1 Introduction

1.1.1 Promotional Marketing

In marketing, promotion refers to any type of marketing communication used to inform or

persuade target audiences of the relative merits of a product, service, brand or issue. The aim of
promotion is to increase awareness, create interest, generate sales or create brand loyalty. It is
one of the basic elements of the market mix, which includes the four Ps, i.e., product, price,
place, and promotion.

Promotion is also one of the elements in the promotional mix or promotional plan. These
are personal selling, advertising, sales promotion, direct marketing publicity and may also
include event marketing, exhibitions and trade shows. A promotional plan specifies how much
attention to pay to each of the elements in the promotional mix, and what proportion of the
budget should be allocated to each element.

Promotion covers the methods of communication that a marketer uses to provide information
about its product. Information can be both verbal and visual.

Promotion is carried out for 4 reasons mainly:

1. To present information to consumer
2. To increase demand
3. To differentiate the product
4. To tackle competition
Promotional marketing is the use of any special offer intended to raise a customer's interest and
influence a purchase, and to make a particular product or company stand out among its
competitors.
Promotional materials can exist as a part of direct marketing, like mail or email materials that
include coupons. They can also include contests that encourage participation with a company, or
product samples that offer something free to customers to generate their interest in the product.
Promotions are also common during live interactions between customers and salespeople,
encouraging the purchase of additional products.

Any company that can offer its customers some additional benefit on top of their normal
purchase can use promotional marketing techniques.

Retail and service providers that operate out of storefronts use promotional marketing strategies
to increase the amount of business they receive. Consider a TV commercial for a pizza restaurant
that advertises a lunch deal offering a free drink with the purchase of two slices of pizza. The
promotion calls attention to the “extra” element of the free drink, which the restaurant owners
hope will encourage people to visit their restaurant who otherwise wouldn't.

1.1.2 Promotional Marketing Strategies

Promotional marketing campaigns should always keep a particular purpose in mind. Some
promotions exist to bring new customers to a company, while others focus on ensuring repeat
business from existing customers. Regardless of who the target is, a company should have a clear
goal that it can measure before starting a new promotional campaign.

Companies must first determine their target customers and how best to reach them. Different
kinds of customers respond well to different kinds of promotions. Perhaps a company's average
customer is likely to use a coupon, or maybe an in-store promotion would be more effective.

The purpose of this report is to promote the modular kitchen products manufacture by Valentine
Kitchen. The report will deal with promotion strategies adopted the company and thus
competition analysis done for the product in order to lay down a basis for the product / increase
sales and capture more market for the product.
1.2 Purpose of study

The aim of this report is to evaluate the promotion strategies adopted and competition analysis to
be performed to support the promotion of the various modular kitchen designs.

This study help build a strategy so as to how to deal with the competitors present in the market
and thereby serves a purpose to increase sales of the company

Due to absence of any coherent study in this regard , it became even more imperative to conduct
a study on the same and find results of it.
1.4 About The Industry

The kitchen industry sector stands at around USD 3.2 billion. With increasing emergence of
nuclear families, rising disposable income and better affordability, this industry is expected to
grow at the rate of 40% per annum. Modular kitchen forms the core of the kitchen segment.
Modular Kitchens are based on functional practicality and the onset of Modular Kitchen in the
furniture market of India have spelt a consciousness that even kitchens can have a style statement
and at the same time be comfortable and elegant.

Kitchen market in India has tremendous growth potential. Indian readymade kitchens currently
selling about 10,000 units per month in the country. It is expected to grow 10 times in the next
three to four years. Market has been witnessing a growth rate of 50% YoY. It is largely
unorganized with the presence of local and small players. Unorganized market includes
carpenters making self-designed kitchens based upon the requirements of the households.
Modular kitchens are customized based on the requirements of the consumer. Based on the need
of the consumer, it can be set up with various accessories like chimney, burner etc. Modular
kitchen accounts for 40% of the furniture and fittings industry. Products in this market are
largely focused towards establishments in urban India.

The price can range of modular kitchen furniture is INR 50,000 to 2 million depending on the
style, material used, accessories, appliances and gadgets that the customer goes for and the space
availability. Almost 70 % the players in the industry are making modular kitchens in this price
range.
KEY DRIVERS

 Increase in disposable income of the individuals

Growth in real estate sector has increased the importance of kitchen furniture in recent
days.

 Growth in organized retail paved way for many foreign organization start-ups in the
country
Rising quality consciousness among Indian customers.
Changing perspectives on home aesthetics

 Increase in the share of women employment leading to increased purchase decision with
regard to kitchen furniture
1.5 Valentine Kitchen

Details of the Business

 Was established in 2009 by Mr. Rajeev Goel
 Initial investment was ₹ 10 lakhs
 Products: Wooden fittings, accessories (of brand hertic and hafele) for kitchen and wardrobes
 Staff: There is a staff of 15 people
 Competition: Not a very competitive market as there are only two or three more players in the market
 Target Customers: Upper class and upper middle class with customers all over Uttar Pradesh
 Marketing Strategy: On ground marketing with follow-ups at the construction sites along advertisement
on papers
 USP: High end finished products, imported materials from China and Taiwan and
customer service

Why Valentine Kitchen?

 With increasing number of households in India, catalyzed by increased number of housing projects,
modular kitchen and high-end furniture is expected to grow at a very high level.
 According to Technavio, the yearly growth in Modular Kitchen market was around 50 percent in last five
years.
 Both high-end furniture and modular kitchen are indication of a change in consumers’ view on home
aesthetics. Being a highly fragmented industry, it’s currently less explored and there is enough opportunity
to grow for small players.
 CHAPTER 2

2.1 Methodology

The project had multiple objectives:

 To lay out consumer’s needs ,want & demands

 To carry out data analysis
 Segmentation & Targeting of the market
 Consumer behaviour and perception towards the product
 To carry out a competitors analysis
 To examine the promotion led by the company
 To assess the
 To carry out a promotion exercise
This required visiting many areas of Ghaziabad region.
Simultaneously all of these people were interviewed in an unstructured way in order to gain
knowledge of competitive product , per sq ft. requirement of the modular design , price theywere
getting the product currently.

2.1.2 Data collection

CONSUMER: Needs , wants , demand & value
Need – the basic need is to have a place where one can , prepare , cook and store
food.storage of other kitchen items like utensils, crockery, electrical appliances
Want – It can be fulfilled by modular kitchen designs such as U-shaped , L –
shaped & parallel designs which provide enough storage spaces for kitchen
products

Demand – The demand is for durable and exquisite modular kitchen offered by
Valentine Kitchen to its customers.
Value – Rich look & feel , lifetime warranty with good finish at affordable price
with complete customization offered by valentine kitchen

Primary research:
Data was collected by by rolling out a google form as well as conducting a survey.
Information was gathered on the lines of
 The age of the person
 The kitchen they would prefer
 Were they satisfied with the product
 For how long had they been using the product
 If yes then how was their experience
 What were the reasons for buying that kind of kitchen
Secondary data was collected by internet where knowledge about the business was gained and
their capacity.
2.3 DATA ANALYSIS
2.3.1 CONSUMER PERCEPTION & BEHAVIOUR

 Most consumers aged 25-45+ were involved in deciding on what kind of kitchen they
preferred
 Major requirements of customers rich look & feel , convenience ,durability.
 Customers looking to build new house particularly newly wedded couples often look for
modular kitchen designs
 The most preferred design is U-SHAPED design since it takes up less space so that they
can accommodate other electronic appliances.
 Valentine kitchen is one of the prominent places at RDC , an eye catching board setup
tends to attract customers
 Budget is the major constraint as modular designs start at around rs 45000 approximately.
 People mostly visit in the evenings on weekends, accompanying their spouse especially
women.
 Decision taken mostly by women as they are thought to be in charge of kitchen.
 CHAPTER 3

3.1Marketing Strategies
3.1.1 Segmentation & targeting

Consumers

sub -Urban Urban people

Residents around
middle to high
middle class the area (Raj nagar
class
+ Kavi nagar)

newly wedded
interior designers Romantic couples
couples

house rebuilders architects

 The modular kitchen business is a fragmented market with an estimated size of about Rs
2,500 crore.
 There is a plethora of small manufacturers making some components such as shelves, baskets
or panels and about a 1,000 players providing modular kitchens.
 But overall about 85 per cent is dominated by the unorganised sector and about 15 per cent
by the organised.
The organised segment is fast growing in India with a wide range in high end brands — products in
the ticket size from Rs 3 lakh to Rs 50 lakh for a kitchen — accounting for about 10 per cent of the
organised segment.

3.1.2 Environmental factors

Demographics
Population age mix – couples aged 25-45+,living in urban and semi urban areas are the primary
customers
Life stage -Newly wed couples often look for building modern kitchen especially modular kitchen
which is a new trend
Household patterns – customers perceive company’s product as a premium product with best-in-class
quality.

Political-legal
Policy changes regarding manufacturing or import of natural stones & metals can greatly affect the
business. The market is heavily dependent on it ,any change in rules and regulations might hamper
the market.

Economic
The company is situated at the heart of RDC, which is one of the most prominent areas in Ghaziabad
Also being a premium product , most customers are from middle-to-high & high class categories.
The market potential is huge at around 260$ million ,hence business has enormous scope for growth.

Socio-cultural
Married couples are the most engaging customers due to the product’s appeal and premiumness.
They prefer modular kitchen to geel modernized.

Natural
Modular items can get affected in seasons of heavy rainfall , where the items can experience loss of
colour and looks. Also wooden items are more prone to termites in monsoon leading to loss of
inventory.
 CHAPTER 4

4.1 COMPANY ANALYSIS

4.1.1SWOT Analysis of Valentine Kitchen

Maintains good relationship

with clients Only way of generating
Aluminium base system revenue i.e kitchen selling
makes kitchen more Targeting only walk-in &
durable referrals.

Strength Weakness

Opportuni
ThreatsUnorganised sector offering
ties low prices
Architects & interior can be
Lack of brand conciousness
targeted
in the market
Very few organized players
4.1.2 Porters five force model

 New Market entrants: New entrants enter the market regularly but only few survive due
to volatile market conditions. Another problem is scarcity of skilled labour
 Threat of substitutes: Substitute are the traditional kitchen& kitchen made by carpenters.
Market share of unorganized group very high as compared to organized sector about
85% is unorganized.
 Bargaining power of consumers: High purchasing power of individual .it also has high
switching costs as market is open to do any kind of work available.
 Bargaining power of suppliers: The industry has large number of organized and
unorganized players.it is a very balanced market-neither player have much power on
buyers.
 Competitive rivalry: There is a plethora of small manufacturers making some
components such as shelves, baskets or panels and about a 1,000 players providing
modular kitchens

4.1.3 COMPETITOR ANALYSIS

COMPETITORS VALENTINE HAFELE AP INTERIOR
KITCHEN DESIGN MODULAR
STUDIO
DEALS IN Only modular Kitchen designs, Only modular
kitchen designs & also kitchen designs
chimneys,stove
,bathroom
fittings.
SALES 10 lacs/month 18 lacs/month 12.5 lac/month
CUSTOMIZATION Customization as Customization no customization,
per customer’s available as per only branded
convenience design booklet products
FOOTFALLS 10-15 25-30 20 customers/day
customers/day customers/day
TYPE Manufactures own Manufactures as Only imported
products well as import products
products
 CHAPTER 5

5.1 Result & discussions:

 Major competitor is A P INTERIOR MODULAR KITCHEN, which leads in the
area
 The competitors have robust network and good brand recall
 The imported products are preferred by the consumers
 Focus on intense advertising by the competitors have increase market penetration

5.2 Conclusions
 Valentine kitchen products are far superior in quality offering lifetime warranty

 Many competitors have failed to retain their customers owing to quality

 Customization is the differentiating factor for valentine kitchen which can help it
penetrate the market.

5.3 Key suggestions & Recommendations

• Focusing on visibility and presence in the market.

• Partnering with small time builders to generate revenue even at reduced margin.
• Better labor management to improve efficiency.
• Persistence is the key to good sales and increase in revenue. In the modular kitchen
industry people only lack persistence and hence fail.
• Intense follow-ups are required. The modular industry depends on follow ups since
customers don’t buy the products on first visit.
 REFERENCES

o https://www.thehindu.com/life-and-style/homes-and-gardens/seeking-modular-
kitchens/article23991905.ece
 https://www.globenewswire.com/news-release/2019/05/09/1820484/0/en/The-Indian-
Modular-Kitchen-Market-Stood-at-206-Million-in-2018-and-is-Projected-to-Grow-at-a-
CAGR-of-Over-27-During-2019-2024.html

o https://blog.euromonitor.com/kitchen-products-renovation-appliance/
o https://www.indianretailer.com/magazine/2015/february/Modular-Kitchen-
Cooking-up-a-growth-story.m93-1-3/
o https://economictimes.indiatimes.com/north/modular-kitchen-industry-is-a-
booming-business-in-gurgaon/articleshow/12032930.cms?from=mdr