Shree Cement Marketing

A Project Study Report On Training Undertaken at

Title Comparative Analysis of Shree Ultra Red Oxide Cement with other Brands in Jodhpur Region

Submitted in partial fulfillment for the Award of degree of

Master of Business Administration

Submitted By: To: Vaibhav Achtani Purhoit MBA Part 3rd VIM

Submitted Pr.G.N. Director,

CERTIFCATE

PREFACE The present project is undertaken as a part of my Internship with the Shree Cement Ltd. The internship constitutes a very important part of the course curriculum as it gives the students a chance to learn and incorporate in them the ways of working in the corporate environment. The project undertaken herein deals with one of the most important constituents of company which is quality and quantitative analysis. The increasing emphasis on branding has resulted in immense pressure and competition among the producers and as a result of which retailer has been found to important mediator to increase the market share and sale of the product. Due to this, Companies are eager to measure the satisfaction level of the retailers towards their brands. To find out the factors those are responsible to increase the satisfaction level of the retailer. The most important task to retain the retailer with brand name and they do not discuss the scheme/policy with competitors. The project aims at attaining information, to find the number of the retailers that are not satisfied with brand and most important the reason behind there dissatisfaction level in means of quality.

ACKNOWLEDGMENT I wish to thank GOD the Almighty for bestowing on me his blessings and for giving me the opportunity to undergo the project with this prestigious organization. He has given me good sense and understanding which has helped me in doing my work with at most dedication and hard work. I express my sincere thanks to my project guide, Prof. G.N. Purohit, Director, Of Vyas Institute of Management for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I express a deep sense of gratitude to honorable Shri Gopal Tripathi, Training Incharge, SCL for providing me an opportunity to work with Shree Cement Ltd. I would also like to thank All faculty member of Vyas Institute Of Management and the supporting staff for their help and cooperation throughout our project. I wish my sincere thanks to the Customers, Retailers, who provide their valuable time from their busy schedule and took interest in my questionnaire.

Place : Jodhpur Date: 15 Sept. 2009

Vaibhav Achtani

MBA Part 3rd

EXECUTIVE SUMMARY This project deals with the assessment of satisfaction level of the retailers towards the Shree Cement Brand in terms of quality and quantity, and factor that are responsible for the satisfaction level. We have focused our research on Shree Cement due to the slow growth rate instead of having huge market possibility. With the help of Questionnaire we have analyzed each and every factor that is responsible for the satisfaction level of the retailer toward Shree Cement. Study also included the market demand for the cement, market share, competition analysis to know the exact position of cement in the market. We have focused toward retailer scheme and its impact on the retailer and sale promotion of the cement. Most important factor that are responsible are profitability margin , problem related to quality, problem related to the monetary coupon , problem related to the disbursement amount all these factor really hampering the retailers relationship with the company. We have also discussed

the

challenges

in

front

of

the

company

and

its

recommendation. We planned to target the retailers and dealers to collect data regarding position of shree ultra red oxide cement that : 1. What are weaknesses in the marketing strategies of company? 2. How many satisfied retailers are there in jodhpur region? 3. What factors must be adopted to enhance retail market. 4. What are the promotional activities adopted by company?

TABLE OF CONTENTS

S.no. No.

Topic

Page

1. THE INDIAN CEMENT INDUSTRY The Indian Cement Industry date back to 1914, with first unit was set up at Porbandar with a capacity 1000 tones. Currently the Indian Cement Industry with a total capacity of around 213 million tones (excluding mini plants) in FY 08-09, has surpassed developed nations like USA and Japan and has emerged as the second largest market after China. Although consolidation has taken place in the Indian Cement Industry with the top 5 players almost 50% of the capacity, the remaining 50% of the capacity remains pretty fragmented. India’s average consumption is still low and the process of catching up with international averages will drive future growth. Infrastructure spending (particularly on roads, ports and airports), a spurt in housing construction and expansion in corporate production facilities is likely to spur growth in this area. South-East Asia and the Middle East are potential export markets. Low cost technology and extensive restructuring have made some of the Indian cement companies the most efficient across global majors. Despite some consolidation, the industry remains somewhat fragmented and merger and acquisition possibilities are strong. Investment norms including guidelines for foreign direct investment (FDI) are investorfriendly. All these factors present a strong case for investing in Indian market.

1.1 THE CEMENT INDUSTRY STRUCTURE Presently the total installed capacity of Indian Cement Industry is more than 200 million tones per annum, with a production around 184 million tones. The whole cement industry can be divided into Major cement plants and Mini cement plants. MAJOR CEMENT PLANTS:  Plants: 140  Typical installed capacity  Per plant: Above 1.5 mntpa  Total installed capacity : 195 mntpa  Production 08-09: 178 mntpa  All India reach through multiple plants  Export to Bangladesh, Nepal, Sri Lanka, UAE and Mauritius

 Strong Marketing network, tie-ups with customers, contractors  Wide spread distribution network  Sales primarily through the dealer channel MINI CEMENT PLANTS: 

Nearly 300 plants located in Gujarat, Rajasthan, MP mainly



Typical installed capacity



Installed capacity around 9 mntpa



Production around : 6 mntpa



Mini plants were meant to tap scattered limestone reserves



Most of the plants use vertical kiln technology



Production cost / tonne – Rs 1,000 to Rs 1,400



Presence of these plants limited to the state

1.2 INDUSTRY CURRENT SCENARIO SECTOR OUTLOOK Indian Cement Industry is set to increase production capacity by 28.3 mt in FY09E, 41.4 mt in FY10E and 18.9 mt in FY11E. This will take the aggregate installed capacity to ~288 mt. In FY08, 21 mt of capacity was added. The Industry planned this massive capacity expansion of 108 mt because they had never seen such a good run till FY2006. During this period, the capacity utilization rate of the Industry reached an all time high level of ~99% in FY08. In the period FY05 to FY08, cement demand grew at a CAGR of 10.5% and average retail price increased by a whopping 41% to Rs 230 per bag. Cement manufacturers made huge profits and the Industry average per tonne of operating profits crossed Rs 1100. Driven by theses profitability levels, average RoCE level of the Industry crossed the 25% mark.

Figure 02: Capacity addition in Cement production Cement Industry is set to add ~89 mn tonnes of capacity between FY09FY11E, which accounts for ~48% of FY08 installed capacity. We expect ~21 mt of capacity addition in Q4FY09, followed by 41 mt of additional capacity in FY10 and 18.9 mt in FY11. Of the new capacities, ~ 41 mt (~50%) is expected to be commissioned in the South, followed by 13.3 mt (~16.4%) in the North and 13 mt (16.1%) in the East.

SHARE OF CAPACITY ADDITION (REGION-WISE AND TOP 5 GROUPS)

Figure 03: share of capacity addition region wise

Figure 03: share of capacity addition Company wise

1.3 ANTICIPATED GROWTH IN CEMENT DEMAND Housing construction accounts for around 60-65% of the total cement demand and the balance comes from infrastructure sectors including roads, railways, ports and power, among others. The demand for cement is directly linked to economic activity and has a high correlation with GDP growth. Infrastructure investments and construction activities, which are the major drivers of cement demand, are also key components of GDP. Further, rural housing, which is a determinant of cement demand, depends on agricultural productivity, which again is a key component of GDP. Historical data of last 12 yrs shows that cement demand in India has increased at the rate of 1.27x the growth rate of GDP. It is expected that cement consumption growth would shrink over the next two years due to uncertain economic conditions and slowdown in real estate

construction activities. Cement demand will consequently grow by 8.7%, 7.6% and 8.9% in FY09, FY10 and FY11 respectively. CAPACITY UTILIZATION (%) 120% 100%

86.1%

91.5%

97.0%

FY05

FY06

FY07

98.7%

87.6%

84.5%

79.5%

FY09E

FY10E

FY11E

80% 60% 40% 20% 0% FY08

Table 03: Capacity Utilization (%)

1.4 TYPES OF CEMENT Cements are of two basic types – grey cement and white cement. Grey cement is used only for construction purposes while white cement can be put to a variety of uses. It is used for mosaic terrazzo flooring and certain cements paints. It is used as a primer for paints besides has a variety of architectural uses. The cost of white cement is approximately three times that of grey cement. White cement is more expensive because its production cost is more and excise duty on white cement is also higher. Shree Cement does not manufacture white cement at present.

CEMENT

GREY

WHITE

PORTLAND POZZOLONA

ORDINARY PORTLAND

The types of cement in India have increased over the years with the advancement in research, development, and technology. The Indian cement industry is witnessing a boom as a result of which the production of

different

kinds

of

cement

in

India

ha s

also

increased.

By a fair estimate, there are around 11 different types of cement that are being produced in India. The production of all these cement varieties is according to the specifications of the BIS.

1.5 CEMENT MANUFACTURING RAW MATERIAL PREPARATION Limestone of differing chemical composition is freely available in the quarries. This limestone is carefully blended before being crushed. Red mineral is added to the limestone at the crushing stage to provide consistent chemical composition of the raw materials. Once these materials have been crushed and subjected to online chemical analysis they are blended in a homogenized stockpile. A bucket wheel reclaimer is used to recover and further blend this raw material mix before transfer to the raw material grinding mills. Transport belt conveyor transfers the blended raw materials to ball mills where it is ground. The chemical analysis is again checked to ensure excellent quality control of the product. The resulting ground and dried raw meal is sent to a homogenizing and storage silo for further blending before being burnt in the kilns. Fig 1: Limestone Extraction

Fig 3: Kiln

FUELS

The heat required to produce temperatures of 1,800°C at the flame is supplied by ground and dried petroleum coke and/or fuel oil. The Petcoke is imported via the companies' internal wharf, stored and then ground in dedicated mills. Careful control of the mills ensures optimum fineness of the Petcoke and excellent combustion conditions within the kilns system.

Fig 2: Inside of Kiln

BURNING The raw meal is fed into the top of a pre-heater tower equipped with four cyclone stages. As it falls, the meal is heated up by the rising hot gases and reaches 800°C. At this temperature, the meal dehydrates and partially decarbonizes. The meal then enters a sloping rotary kiln, which is heated by a 1,800°C flame, which completes the burning process of the meal. The meal is heated to a temperature of at least 1,450°C. At this temperature the chemical changes required to produce cement clinker are achieved. The dry process kiln is shorter than the wet Fig 3: Central Control Room process kiln and is the most fuel-efficient method of cement production available.

COOLER UNITS The clinker discharging from the kiln is cooled by air to a temperature of 70°C above ambient temperature and heat is recovered for the process to improve fuel efficiency. Some of the air from the cooler is de-dusted and supplied to the coal grinding Plant. The remaining air is used as preheated secondary air for the main combustion burner in the kiln. Clinker is

Fig 4: Cement Plant

analyzed to ensure consistent product quality as it leaves the cooler. Metal conveyors transport the clinker to closed storage areas.

FILTERS Dedicated electrostatic precipitators dedust the air and gases used in the Clinker Production Line Process. In this way, 99.9% of the dust is collected before venting to the atmosphere. All dust collected is returned to the process.

CONSTITUENTS Different types of cement are produced by mixing and weighing proportionally the following constituents: •

Clinker

•

Gypsum

•

Limestone addition

•

Blast Furnace Slag

Fig5: Cement manufacturing from the quarrying of limestone to the bagging of cement.

1.6 FUTURE OF CEMENT INDUSTRY Demand drivers Infrastructure & construction sector the major demand drivers. Some demand determinants     

Economic growth Industrial activity Real estate business Construction activity Investments in the core sector

Future •

Signs of a revival 

growth in the housing sector



central road fund established for national highways and railway over bridges to provide the necessary impetus



•

expansion plans, greenfield projects on the anvil

Capacity likely to be 286.9 mn. tonnes by 2009 - 2014 

By 2009 - 3.9 mn tonnes addition expected



2010-2011 - 10 mn tonnes



2012 - 2013 - 8 mn tonnes

•

Demand - supply balance expected in the next 12 - 15 months

•

Higher capacity utilisation likely in the future

•

Encouraging trend in demand due to pick-up in rural housing demand and industrial revival

•

Industry likely to grow at 8-10% in the next few years

CHAPTER 2 COMPANY PROFILE

Shree Cement Ltd. is an energy conscious & environment friendly business organization. Having Nine Directors on its board under the chairmanship of Shri.B.G. Bangur, the policy decisions are taken under the guidance of Shri. H.M. Bangur, Managing Director. Shri. M.K.Singhi, Executive Director of the Company, is looking after all day-to-day affairs. The company is managed by qualified professionals with broad vision who are committed to maintain high standards of quality & leadership to serve the customers to their fullest satisfaction. The board consists of eminent persons with considerable professional expertise in industry and field such as banking, law, marketing & finance.

Location Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the Delhi-Ahmedabad highway. Amongst the plants in the state it is nearest from its marketing centers. Bangur Cement Unit (III,IV,V & Vi) is lacated at RAS,28 Km from Beawar in pali Dist. Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to Delhi. Regd. Office & Works: Shree Cement Ltd. Bangur Nagar, Post Box No. 33 Beawar 305901 Rajasthan India Corp.Office: 21, Strand Road, Calcutta- 700001.

Success Driver PEOPLE AS PROGRESS DRIVERS Shree believes that what is present in the minds of people is more valuable than the assets on the shop floor. All the company’s initiatives are directed to leverage the value of this growing asset.

TEAMWORK Shree leverages effective team working to generate a sustainable improvement.

LEADERS AT EVERY LEVEL Shree believes in creating leaders -not just at the organizational apex but at every level, resulting in a strong sense of emotional ownership.

CULTURE OF INNOVATION Shree believes that what is good can be made better -across the organization.

CUSTOMER FOCUS Shree is committed to deliver a superior quality of cement at attractively affordable prices.

SHAREHOLDER VALUE Shree is focused on the enhancement of value through a number of strategic and business initiatives that generate larger and a better quality of earnings.

COMMUNITY AND ENVIRONMENT

Shree’s community concern extends from direct assistance to safe and dependable operations for its members and the environment.

Markets classification Markets

States

Primary

Rajasthan

Secondary Tertiary

Delhi, Punjab, JK, Haryana, Western U.P. and Uttaranchal Gujarat, M.P. and Central U.P.

Markets Each cement manufacturer has a primary and secondary market. The former is one, which is the closest to the production centre where it fetches the best realizations while the latter is usually at a distance where realizations

are

lower.

In an industry where consumer loyalties change every rupee, Shree’s biggest achievement was that it built an emotional bond with its stakeholders.

This transpired as a result of a number of initiatives: •

The company positioned its brands around longer life (durability), emphasizing product longevity.

•

The company innovated the launch of corrosion resistant grade like Red Oxide Cement, winning innovations in a staid industry.

•

Shree put its products deeper within most territories. Besides, it invested in logistics to reach retail shelves faster. As a result, Shree’s products moved quicker off retail shelves: every 0.65 seconds in 2001-02 and every 0.58 seconds in 2002-03. As the company’s primary customers - dealers - accelerated the rotation of their working capital, they maximized their return on capital, ensuring brand loyalty.

•

Shree accelerated footholds through a stronger Rs 3 cr advertising campaign for its Red Oxide brand in the regional print and electronic medium in 2002-03.

•

Shree educated its principal users - the masons and architects.

Marketing presence Over the last three years, Shree considerably strengthened its marketing presence. Since the company is based in Rajasthan, the state is the company’s principal market. Rajasthan is India’s largest cement producing state and Shree’s is the largest single location plant in northern India. The company’s northernmost positioning within Rajasthan makes it the closest among all Rajasthan manufacturers to Delhi, Haryana and some parts of Punjab, a significant cost edge. The company enjoys a market share of about 11 per cent in north India.

Challenges Due to the nature of the product - bulky, low priced - it became increasingly difficult to sell the product across a large territory. Besides, higher realizations in distant territories did not mean that the gain would accrue to the company since the incremental freight would neutralize the price advantage. As a result, it became important to arrive at a median between realizations and distribution costs and earn a comfortable margin.

ERP implementation Network that delivers online, real-time access to information and processes. Towards this end, the company is adopting the Oracle eBusiness

Suite

ERP

with

Tata

Consultancy

Services

as

the

implementation partner. Imbibing the best practices of companies worldwide, this ERP suite will impact all processes of the company, right from procurement, through operations, to sales and distribution. It involves a complete re-engineering of business processes to make them more high-performing and tuned towards the global order.

Progressive Management Shree Cement supplemented its attractively low capital investment per tone with one of the lowest manufacturing costs in the Indian cement industry. Starting with 6 lac tones per annum of cement in 1985, the capacity was upgraded to 7.6 lac tones in 1993. Second plant with installed capacity of 1.24 million tones per annum was commissioned in 1997, in record time of 18 months, raising total capacity to 2.0 MTPA. Even during recession in the industry, it was possible for it to enhance capacity further to 2.6 MTPA due to its strategic location and better brand image and is the largest single location plant in North India. The company's installed capacity accounted for 15 percent of Rajsthan's total capacity in 2002-03 and 2.5 percent of Indian's production in 2002-03. Cement production increased 3.42% from 2.747 million tones in 2002-03 to 2.841 million tones in 2003-04. Once again, the low cost was the result of scores of initiatives across all levels within the company. Some resulting in small savings. Some in big. But each primarily driven by the belief that what was being done could be done better.

Cooler fans were configured to a higher capacity so that heat could recuperate better. A better raw mix helped Shree reduce the proportion of high cost limestone and saved the company Rs 0.44 cr.

Jo soche woh paave Shree has invested wisely in its people assets over the last few years to sustain a culture of excellence through the following initiatives: •

The company incentivised ownership through the ‘Jo soche woh paave’ scheme.

•

The company trained and multi-skilled so that members could deepen and extend their competencies across the house keeping, maintenance, risk management, team building and environment, health and safety functions.

Jo soche woh paave also deals with some really simple solutions. Like the inevitable 8.30 am traffic jam of employee vehicles - 60 cars and 300 two-wheelers - at the factory gate. This posed an accident risk. I suggested that another gate be opened for car entry only. This suggestion was accepted and the result is a safer factory and a bigger time

saving

today."

- Girish Singhal (Dy. Manager, Taxation)

CREATING LEADERS AT EVERY LEVEL Shree Cement emphasises that creating leaders not just at the organisational apex but at every level results in strong sense of emotional ownership. Thus the employees are delegated with responsibility and authority to adopt one Electric motor and related equipment for keeping watch and care resulting in energy conservation, thus generating multiple CEO's in the Energy Management System.

RECOGNITION AND REWARD SCHEME The management believes in the self-actualisation of its employees by injecting the concept of Human resource Development in all its policies and strategies. By recognition and reward the employees are motivated to give their best in the interests of the organization in particular and for the society in general. So many schemes of recognition and rewards are given to boost the morale and motivate the employees. According to Managing Director of the company, morale management is considered to be more challenging than material management. According to him it is important to keep walking around and congratulating the teams for their small victories. Efforts and their success stories are disclosed to all in special functions so that other employees may take inspiration from them. Employees are rewarded for doing exemplary work in the field of reducing/ eliminating breakdown, in-house development, better house keeping, and reduction in raw material, fuel, power and wastage. Cash awards and Certificates of honour have been given in a function. For example a scrapper chain of reclaimer II is to be replaced which takes 80 hours. The team completed this task in minimum possible time with the result that the reclaimer was put into operation in just 36.5 hours. The team was rewarded with a cash amount of Rs. 11,000/- and certificate of honour.

RAS CEMENT PROJECT Shree Cement Limited is setting up a new green field Project at Village Ras, Tehsil

Jaitaran,

District

Pali

of

Rajasthan. The capacity of the plant is 3000 Ton Per Day of clinker production with an approximate investment of about Rs. 300 Crores. The company has already engaged eminent Consultant for the same and all the major orders has been placed so as to achieve the ambitious target to commission the plant by August 2005 which is fifteen months from the date of first order placement i.e. May, 2004. The main plant & machineries would be supplied by KHD Humboldt Wedag AG Germany

&

GEBR

Pfeiffer

AG

-

Germany. The plant will be based on the latest Technology available and maximum Automation would be done to keep the minimum manpower. The company is having sufficient mining lease at Ras to cater its production requirements for the upcoming 50 years.

Trust Comes From Quality At Shree Cement Limited Shree Ultra Cement - BIS specification Shree Ultra 43 Grade

Cement - 43 Grade

Fineness (m2 / kg)

225

355

Soundness

-

-

Le chatelier expansion Max 1.0

.084

(mm) Auto-clave

expansion Max. 0.8

.075

(%) Setting Time (Mins)

-

-

Initial

Min. 30

115

Final

Max. 600

176

Compressive Strength -

-

(MPa) 3 days

Min 23

38

7 days

Min33

50

28 day

Min. 43

63.5

TUFF Cemento 3556 IS

Specification 3556

43 Grade Fineness

Min.330

406

Min.30

110

Min.600

175

Specific Surface (m2 / kg) Setting Time(Minutes.) (a)Intial (b)final

Soundness

Test Max. 10

1.0

(a)Le-Chatelier Method (mm) (a)AutoClave(%)

Max. 0.800

0.068

Compressive

Min.16

39

Min.22

49

Strength

(MPa)

(a)3 days(Min.) (b)7 days(Min.)

Shree Ultra Cement 53 BIS

Shree

Grade

Specification

Cement

53 Grade

Grade

225

385

Fineness (m2 / kg) Soundness

Le chatelier expansion Max. 10

1.0

(mm) Auto-clave

expansion Max. 0.8

0.606

(%) Setting Time (Mins) Initial

Min. 30

111

Final

Max. 600

166

3 days

27

41.3

7 days

37

54.7

28 days

53

67.6

Compressive

Strength

(MPa)

Ultra 53-

Shree Cement expects good run in North India Live News : CNBC -TV18 12/13/2004 11:13:00 AM

-

Cement prices are expected to firm up in the coming months, on the back of nearly 8%-9% growth in demand. Rajasthan-based Shree Cement is confident of achieving a good growth in both its top and bottom line.

-

MK Singhi, ED, Shree Cement, told CNBC-TV18, "Supply is now almost matching demand, and it looks like in the next three

months, till March, demand will definitely be more than supply, and that will mean the market will be ready to give a better price. The present price is still less than the price in March 2004, so that gives an indication that the prices will go up to some extent, and that will be a good time for the cement industry, especially in North India. Till November, the growth in demand is about 8%, and it should remain so for the next four months also, the way the manufacturing sactor is showing growth in North India. Since no new capacities are coming up, the prices should be good in North India."

Shree Cement sells 90% of its product in North India, where demand is strongest, with up to 10% going to Uttar Pradesh. Its present capacity is 2.8 million tonnes, but it does not have a share in the export market at all. It enjoys up to 11% of the market share in North India. The company enjoys a low power cost, due to the 36 MW captive power plant at its disposal, and has the lowest variable cost per tonne in India. Because of its proximity to the northern parts of India, Shree also has a relatively low freight cost, which results in a higher realisation. It's captive limestone reserves are estimated at over 400 million tonnes. In the second quarter results, that were declared recently, Shree recorded a 19% year-on-year jump in net sales, up from Rs 117.43 crore to Rs 140.08 crore. Singhi expects the company's topline growth to continue, going forward, on the back of strong demand. "For Shree Cement, our sales should be higher by more than 12%, and our growth in volume should be up by 5%. That augurs well, and gives good numbers in comparison to last year. The performance of the first six months was also good," he said. In Q2, the company's net profit climbed year-on-year 479%, from Rs 2.93 crore (Rs 29.3 million) to Rs 17 crore (Rs 170 million), while its operating

profit was up 70%, from Rs 23.04 crore (Rs 230.4 million) to Rs 39.19 crore (Rs 391.9 million). Operating margins soared 836 basis points, from 19.62% to 27.98%. With a 1.2 million tonne capacity greenfield cement plant planned by next December, margins will also improve. He said, "Our margins are quite comfortable, and will be better with the new plant coming up. We are funding the plant at the moment with internal accruals of Rs 100-200 crore (Rs 10-20 billion), and that will not bother the operating parameters of our existing plant. Our optimisation in logistic costs and energy management should also make our operating margins better." However, there are concerns that a rise in coal prices and freight charges could dent the company's profitability. Pet coke prices are up by more than 50% from last year, and Shree is totally dependent on pet coke for its kiln and captive power plant.

Source: moneycontrol.com

Shree Cement A Pilliar Of Strength

3. Research Methodology

3.1. Title of the Study : “Comparative Analysis of Shree Ultra Red Oxide Cement with other Brands in Jodhpur Region.”

3.2. Duration of the Project :

During the Summer internship

programme with Shree Cement Ltd, from 27th May 2009 to 6th July 2009.

3.3. Objective of Study: The study basically across attention towards the market share of the Shree Cement and factor responsible for measuring the satisfaction level of the retailers such as: 1. Impact of scheme offered by the company. 2. To know the effectiveness of the shree cement Product. 3. Profit margin for the retailer associated with cement as compare to the other brand products. 4. To know the pricing strategy of the shree cement as compare to the competitors. 5. Consumption level of shree cement as compare to the other products. 6. To know the level of the quality associated with the shree cement.

3.4. Type of Research :

The project guide ask me to

analyze the Comparative position of Shree red oxide cement in western Rajasthan. He suggested to visit to Retailers to know the market demand and awareness of the quality toward the cement as compare to the other product such as Binani, JK Lakshmi etc. The first two weeks of training, visited the different places like Retailers, Dealers, Complex, Mall and ICH

(individual construction house) and knows the views of the contractor, builders and individuals house owner toward our product.

During initial period of training visited 135 places: Number of Retailers

:

135

This show the rapid growth in construction at Jodhpur and huge market scope for the cement. Finally, Project guide (Shri Gopal Tripathi) ask me do survey on “COMPARAIVE RESEARCH” OF SHREE ULTRA RED OXIDE CEMENT WHIT OTHER BRANDS AMONG RETAILAIRS.

3.4.1. DATA SOURCE Research included gathering both Primary and Secondary data. Primary data is the first hand data, which are selected a fresh and thus happen to be original in character. Primary Data was crucial to know various retailers views about cement and to calculate the choice of this brand in regards to other brands. Secondary data are those which has been collected by some one else and which already have been passed through statistical process. Secondary data has been taken from internet, newspaper, magazines and companies web sites.

3.5. Sample Size: Number of Retailers and dealer

:

135

3.6 Limitation of Study 1. Research work was carried out in one Distt of Rajasthan (JODHPUR) only the finding may not be applicable to the other parts of the country because of social and cultural differences. 2. The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population.

3. Shortage of time is also reason for incomprehensiveness. 4. The views of the people are biased therefore it doesn’t reflect true picture.

4. Facts and Finding From the present study which is based on survey the following facts are come out, there is some factors which influence sale of two wheeler.

4.1. Factors Influence Sale of cement:    

Features: Price: Availability: Quality:

4.2. Findings: Surprising result are that 90% builder and contractor are aware of our product and Builder are impressed with its quality, finishing, and Strength. But 75 % builder and contractor decision are based on their contractor and retailer suggestions.

BINANI IS TOP SELLING BRAND IN JHALAMAND ARES Reasons -

Cement readily available in different area Brand Name, Value Dark Color, Setting time less Customer demand due to good advertising

Shree IS TOP SELLING BRAND IN SURSAGAR ARES Reasons :

-

Contractor Choice Customer Preference Cement readily available in different area Brand Name, Value Dark Color, Setting time less Customer demand due to good advertising

BINANI And JK LAKSHMI IS TOP SELLING BRAND IN LALSAGAR ARES Reasons -

Contractor Choice Customer Preference Cement readily available in different area Brand Name, Value Dark Color, Setting time less Customer demand due to good advertising

Binani Is Top Selling Brand IN Madhuban Badni / Kudi Housing Board Areas Reasons : -

Cement readily available in different area Brand Name, Value Dark Color, Setting time less Customer demand due to good advertising

JK LAKSHMI, SHREE IS TOP SELLING BRAND IN RATANADA ARES Reasons -

Contractor Choice Customer Preference Cement readily available in different area Brand Name, Value Dark Color, Setting time less Customer demand due to good advertising

Bangur Is Top Selling Brand IN Chopasni Housing Board Areas Reasons: -

Contractor Choice Customer Preference Cement readily available in different area Brand Name, Value Dark Color, Setting time less Customer demand due to good advertising

Binani Is Top Selling Brand in Jodhpur. Reasons :-

Cement readily available in different area, Contractor Choice Brand Name, Value, Customer Preference Dark Color, Setting time less Customer demand due to good advertising

5. Analysis and Interpretation Analysis and Interpretation work is very important work of any research study. For the present study we have done a survey of 135 Retailer in Jodhpur Region (Rajasthan). The main objective of the study is Comparative Analysis of Shree Ultra Red Oxide Cement with other Brands in Jodhpur Region. For this purpose some question are asked to retailer about the brands of cement in which they are dealing. The question wise analysis is given below with diagrammatic presentation.

Q.1. Which brands are available in your retail store?

70 60 50 40 30 20 10 0

Binani JK laxm i Birla Ultratech Am buja Bangur Shree ultra Tuff cem ento Chetak

Comparative Research in Quantity Q.2. How much quantity is sold by you of different brands ?

2000 1800 1600 1400 1200 1000 800 600 400 200 0

Binani JK Laxshmi Birla Bangur Ambuja Shree Tuff Cemento Ultra Tech Chetak M/Ton

Comparative Research on Price Q.3. What is the Price of different Brands ?

234 233 232 JK Laxmi 234 Binani 230 Birla 230 Ultra tech 234 Ambuja 234 Bangur 228 Tuff 228 Shree 228 JK Nim 230

231 230 229 228 227 226 225

Price/Bag

Comparative Research on Quality Q.4. Which brand product is most preferred by you in terms of quality ?

70 60 50 40 30 20 10 0

Binani JK laxmi Birla Ultratech Ambuja Bangur Shree Ultra Tuff cemento JK Nimbahera

Comparative Research on Marketing Strategies Q.5. Which brand have most effective marketing strategies ?

30 25

Binani JK laxm i Birla

20

Ultratech

15

Am buja

10

Bangur

5 0

Shree ultra Tuff cem ento Chetak

Comparative Research on Schemes Q.6. Which of the following offer given by company satisfy you most ?

80

Bonus

0

Gifts

20

Special Scheme/Offer

40

International Tour

60

Bonus Gifts Special Scheme/Offer International Tour

Comparative Research on Customers Preference Q.7. Which of the following is mostly considered by customers while buying cement ?

70%

Quality

60%

Price

50% 40% 30% 20% 10% 0%

Advertisment Retailers Suggestion Contractors Choice Availability

1 6. SWOT Analysis SWOT ANALYSIS FOR SHREE CEMENT LTD STRENGTHS  Focused strategy  Lowest cost producer of cement in north India  A secure source of raw materials  High penetration in government projects  Largest single plant capacity in India  Shree power plant, which is producing electricity enough for RAS plant WEAKNESS  Less dealer incentives as compared to its competitors  Color of the cement has not been perceived greatly, green color was most preferred  Poor advertising and brand promotion OPPORTUNITIES

 Real Estate demand improvement will lead to increased demand  International expansion  Reduction in custom duties  Government’s thrust on infrastructure and tax incentives on housing loans THREATS  Mostly concentrated in the northern region  Increased competition from domestic as well as international players  Chances of decrease in demand because of slowdown in the economy  Supply demand mismatch may decrease the profits of the company

2 3 4 5

7. Conclusion

-

Binani Cement is available in most of the retail store.

-

Binani is the top selling brand in jodhpur region.

-

Shree Ultra Red Oxide Cement Stands at Sixth position in Retail Market.

-

Price of Shree Ultra Red Oxide cement is Low as compared

to other brands. -

Retailers mostly prefer the Bonus schemes.

-

Customers mostly prefer the brand which is suggested to them by retailers.

8.

Recommendation and Suggestions

-Company should increase number retailers in Jodhpur Region

-Company should pay more attention toward marketing strategies.

-Company should pay attention towards retail market.

-Company should provide effective bonus scheme.

-Company should increase the quality.

9. Appendix QUESTIONNAIRE (RETAILERS) Measuring satisfaction level of Retailers with Shree Cement brand via-a-via other brands We would like to know your views about Shree Cement Product, could you help us by answering these few questions. PERSONAL INFORMATION

NAME RETAIL STORE ADDRESS CONTACT NO. Ques1. Which of the following type of brand available in your retail store? Branded Product Shree Cement

(

)

Ambuja

(

)

Bangaur

(

)

JK Lakshmi

(

)

Ultratech

(

)

Binani

(

)

Tuff Cemento

(

)

JK Nimbahera

(

)

Non-Branded Product ___________________________________________________________ ___________________________________________________________ Ques 2. How much quantity is sold by you of different brands ? Brand Name Retail Price

Quantity

W/s Price

1. 2. 3. 4. Ques3. What is the Price of different Brands ?

Ques4. Which brand product is most preferred by you in terms of quality?

Ques5. Which brand have most effective marketing strategies?

Ques6. Which of the following offer given by company satisfy you most ?

Bonus Gift Special offer International tour

Ques7. Which of the following is mostly considered by customers while buying cement Quality Price Advertising Retailer suggestion Contactor Choice Availability

Place: Date:

(Signature )

DATA SHEETS STUDY

-

OF

RESEARCH

DATA SHEET - JHALAMAND LOCATION – JHALAMAND

• • Brands

Figure in Metric Tons Data as per survey of 8 different area in Jhalamand I

II

III

IV

V

VI

VII

VIII

M/Ton

Avg.W/s Price

Avg. R/ Price

Binani

800

-

100

-

50

20

35

-

1005

220-225

223230

JK Lakshmi

800

-

100

11

-

50

-

-

961

225-230

231234

Birla

600

-

100

-

-

-

-

-

700

220-224

225230

Ultra

-

40

-

-

-

-

35

-

75

225-230

230234

Ambuja

-

-

100

-

-

15

-

-

115

226-230

231234

Bangaur

-

-

-

11

50

10

50

150

271

218-222

225228

Tuff Cemento

-

-

-

15

50

-

-

-

65

217-221

224228

DATA SHEET - SURSAGAR LOCATION – SURSAGAR

• • Brands

Figure in Metric Tons Data as per survey of 3 different area in Sursagar I

II

III

M/Ton

Avg.W/s Price

Avg. R/ Price

Binani

25

30

15

70

220-225

223-230

Shree

-

-

94

94

217-221

225-228

Ambuja

-

30

30

60

226-230

231-234

Bangaur

-

72

-

72

218-222

225-228

Tuff Cemento

35

10

-

45

217-221

224-228

DATA SHEET - LALSAGAR

LOCATION – LAL SAGAR • • Brands

Figure in Metric Tons Data as per survey of 8 different area in LAL SAGAR I

II

III

IV

V

VI

VII

VIII

M/Ton

Avg.W/s Price

Avg. R/ Price

Binani

25

75

100

50

-

30

75

15

370

200-203

200-207

JK Lakshmi

-

-

-

50

20

30

25

225

350

200-205

205-210

Birla

-

-

-

-

-

-

-

215

215

200-205

205-207

Ambuja

-

-

90

50

-

50

-

-

190

200-207

205-210

Tuff Cemento

-

-

-

60

50

30

-

-

140

200-205

205-210

DATA SHEET – MADHUBAN BASNI / KUDI HOUSING BOARD LOCATION – MADHUBAN BASNI / KUDI HOUSING BOARD • • Brands

Figure in Metric Tons Data as per survey of 8 different area in Madhuban Badni / Kudi Housing Board I II III IV V VI VII VIII M/Ton Avg.W/s Avg. Price R/ Price

Binani JK Lakshmi

35 10

10

35

15

40

35

30

200

200-203

200-207

15

20

10

40

10

10

115

200-205

205-210

15

45

200-205

205-207

10

200-204

205-207

10

180

200-207

205-210

10

130

200-205

205-210

140

200-205

205-210

Birla

30

Bangur Ambuja

10 20

Shree

10 10

Tuff Cemento Ultra Chetak Kamdhenu

140 95 50

15

70

10

15 20

15 50

70

110

75

125 10

5

15

DATA SHEET - RATANADA

LOCATION – RATANADA • • Brands

Figure in Metric Tons Data as per survey of 3 different area in RATANADA I

II

III

M/Ton

Avg.W/s Price

Avg. R/ Price

Binani

25

JK Lakshmi Birla Shree

50

25

50

200-203

200-207

25

25

200-205

205-210

25

25

200-205

205-207

50

200-205

205-210

DATA SHEET – CHOPASNI HOUSING BOARD

LOCATION – CHOPASNI HOUSING BOARD • • Brands

Figure in Metric Tons Data as per survey of 5 different area in Chopasni Housing Board

I

II

III

IV

V

M/Ton

Avg.W/s Price

Avg. R/ Price

Binani

50

130

200-203

200-207

300

351

200-205

205-210

50

45

695

200-204

205-207

Ambuja

100

40

140

200-207

205-210

Ultra

25

25

170

200-207

205-210

JK Lakshmi Bangur

40

40

51 600

60

60

OVER ALL DATA SHEET •

CHOPASNI

RATANADA

MADHUBAN

LAL SAGAR

SURSAGAR

JHALAMAND

Brands

Figure in Metric Tons

M/Ton

Avg.

Avg.

W/s Price

R/ Price

Binani

1005

70

370

200

50

130

1825

200-203

200-207

JK Lakshmi

961

-

350

115

25

351

1802

200-205

205-210

Birla

700

-

215

45

25

-

985

200-205

205-207

Bangaur

75

72

-

10

-

695

852

200-204

205-207

Ambuja

115

60

190

180

-

140

675

200-207

205-210

Shree

271

94

95

35

50

-

545

200-205

205-210

Tuff Cemento

65

45

140

140

-

390

200-205

205-210

Ultra

-

-

110

-

170

280

200-205

205-210

Chetek

-

-

125

-

125

200-205

205-210

Kamdhenu

-

-

15

-

15

200-205

205-210

-

-

BIBLIOGRAPHY

www.shreecement.com literature provided by company

www.icrm.com www. et-website-cement.pdf Retailer scheme (2008-2009) and retailer database provided by the company.

Articles from economics times : “Cement companies hit hard by export ban” by Papiya Pattanayak”. “More cement from the pak to help tame price line” by Amiti Sen. “Shree Cement appoints advisors to spruce up performance” by Kausik Datta & Rajesh Unnikrishnan.