Summer Training

A Summer Training Project Report On

The Study of Cement Market at Jhunjhunu (Shree Cement Ltd.) INCLUDEPICTURE "../../Photo%20Gallery/0%5b1%5d.jpg" \* MERGEFORMAT

Submitted to: Shri N. Bajwa Sr.GM (Mktg.) Shree Cement Ltd, Jaipur

Submitted By: ANILKUMARKHICHAR M.B.A. 2008-2010

G.D.MEMORIAL COLLEGE of MANAGEMENT & Technology, JODHPUR

Preface

Classroom teaching helps the student by making conceptual base clear, but on the job training is a way, which helps the students to get the applied knowledge of the concept. Normally the students are not aware of the actual requirement of practical field, keeping in view this fact; a system of summer training has been established to make the students acquainted of actual difficulties that are to be faced in the demanding corporate sector. Summer training at Shree Cement Ltd., has given me a great experience. I was required to prepare a training report on the topic “The Study of Cement Market at Jhunjhunu”. The managers of marketing department helped me a lot to prepare this report.

Acknowledgement I would like to thank Shree Cement Ltd., Jhunjhunu for providing me with an opportunity to work on my summer project.

I would like to thank my project guides Mr. Anil Kumar Tiwari and Mr. Vinod Kumawat for providing me continuous guidance & support and for their valuable inputs during the course of my project.

The staff at Shree Cement was very co-operative and helped me a lot by providing required information whenever I needed it.

I am thankful to my Faculty Guide Mr. Om Parkash Kasera for their continuous support and guidance.

And finally I would like to thank the entire faculty at G.D.memorial college of management $technology jodhpur for equipping me to carry out this study.

Anil kumar khichar (2008 -10)

Contents 1) Overview of Cement Industry

2) Introduction of Company

3) Project Title

4) Objective of Study

5) Scope of Objective

6) Research Methodology

7) Analysis of the Study

8) Findings

9) Suggestions and Recommendations

10) Questionnaire

11) Bibliography

1. OVERVIEW OF CEMENT INDUSTRY

1.1 HISTORY OF CEMENT INDUSRIES: The history of cement is the voyage of civilization from primitive caves of prehistoric times to the skyscraper of the modern age. It is said that the use of cement is old as the knowledge of fire to man. Egyptians utilized gypsum plaster as cementing material as early as 3000BC, building monuments.

However, it was in the 1824, roughly a period of 60-80 years after the discovery of hydraulic properties of limestone, Joseph Aspdin patented his product, which was called “Portland Cement”. The plants manufacturing Portland cement out side England were commissioned in Belgium and Germany in 1855. The interest that evoked in the technology of cement resulted in the development of rotary kilns in 1886. Modern cement is the outcome of the combined researches and development efforts of chemists, technologists & architects as well. The cement technology is an offshoot of the overall development in other industries, technology, constructional activities and knowledge aided by the availability of raw material.

1.2 INTRODUCTION TO THE INDUSTRY: In the beginning, man lived in thatched houses but later as his horizon of knowledge expanded he could produce a wonderful material for construction known as cement. In the year 1756 Jhon Smeaton, an English engineer, erected eddy stone lighthouse in English Channel that paved the start of the industry. Various types of cement, roman cement and pozzolona cement also came into existence. India too contributed to the production. In 1918 the Indian cement industry had an overall capacity of 84000 tones per year. At the time of independence there were 23 factories in all with a capacity of 1.5 million tones per annum. The major costs incurred come under the head of transport and energy consumption consisting of power and fuel. The cost of production per tone of cement usually ranges between Rs.120 to 1399. The profitability will depend upon operational and logistical efficiency. A good image will help to command a good premium. This is evidenced

by the premium brands like Shree Ultra Cement, Ultratech Cement, Ambuja Cement and Birla Chetak Samrat Cement. Some multinational companies like Lafarge and Blue Circle Victor have recently evinced interest in shifting more of their business towards Asis, especially to India. Infact, One deal of take-over has already materialized in which Lafarge took over the cement business of TISCO and influencing factors may make the situation a trend. It seems imminent that more of them would take place in the time to follow, since acquisition is always a more preferred route then expansion/green field instllation. According to survey by ICRA top 10 companies account for 59% of the cement production in the country. The cement industry is dominated by private sector according for 915 of the capacity and 9% of the production, while public sector accounts for the rest. This has put the cement organization is shambles due to privatization of public sector and upcoming production.

1.3 THE BEGINNING OF CEMENT INDUSTRIES IN INDIA: “The first true Portland cement manufactured in India was made inculcate from chalk, imported as ballast in sailing ships and mud from Hoogli River.” But systematically, cement was manufactured in 1904 in Madras by the South India industries ltd.(established in 1879). It used sea-shale and clay as raw material and had the working capacity of 30 tones per day. Though its life span was short yet it gave impetus to the growth of cement. Industry and by 1912-13 the Indian cement co. limited was established at Porbandar (Gujrat) with a production capacity of 100 tonnes per day. The

manufacturing of cement commenced in 1904. But the first bag of cement was packed by the Indian cement company ltd. Porbandar (Gujrat) in October. After some time, two more cement companies Katni Cement & Industrial Co. Ltd. Began production at Katni (M.P.) and Lakheri (Rajasthan) respectively. The industries got some stimulus during the First World War and that companies produced 8500 tones of cement per year. The total capacity of all the nine factories in 1924 was still 5, 59,800 tones only. For long, companies faced severe competition in the prevailing demand. This resulted in the formation of cement manufacturers association (CMA) in 1923 whose function was to regulate cement prices. Subsequently, to popularize cement, concrete association In India was established in 1927 to educate masses in the use of cement. Simultaneously, cement marketing arrangement was also made and the use of ‘Cement Marketing Company’ was established in 1930 that agreed to sell cement of ACC and Dalmia group on quota basis. The growth of industry took rapid strides during 1926-36, though the CMA solved most of the problems, yet the consolidation takes needed the Herculean efforts. F.E. Dinshaw (a leading industrialist) took control ten out of eleven units of ACC (excepting sone valley). The object of amalgamation was not to attain a monopolistic position, but to make and deliver cement as cheap as possible. The objectives were materialized and cement was made available at then lowest possible price. The Industry acquired greater efficiency, rendering the CMA superfluous. ‘The cement making company of India’ becomes a subsidiary of ACC in 1936. The ACC Limited was established on 1st August 1936 with it’s

headquarter at Bombay. This Lured Dalmia Jain group to enter the field with five factories. Meanwhile, many new companies were set up. The Assam Bengal Company set up it’s factory at Chatak (Bengal) and the Kalyanpur line & cement works at Banjari (Bihar) and Mysore Iron & Steel Co. Ltd. A public sector undertaking established it’s factory at Bhadravati (Mysore). Similarly, Andhra Cement Company was floated to set up a factory at Vijaywara (Andhra Pradesh). By 1947, there were 23 cement factories in India with a total production capacity of 2.2 million tones, but owing to partition, 81.5% of the rated capacity along with production 1.79 million tones went with India while the remaining was shared by Pakistan. 1.3.1 FIRST FIVE-YEAR PLAN (1951-56) (PERIOD OF RAPID GROWTH): In the beginning of the first five-year plan, there were 22 factories with a production capacity of 3.2 million tones while actual production was 2.69 million tones only. The target set for the first five-year plan was 5.02 million tones. Therefore, capacity enhancement was main objective of this plan. 1.3.2 SECOND FIVE-YEAR PLAN (1956-61): Due to the rising demand at end of the first five year plan period, Government imposed a sort of control by issuing an order under section 18(g) of the industries (Development and Regulation) Act, 1951 making it necessary for all cement producers to sell their total production to State Trading Corporation of India for distribution to consumer at uniform prices fixed by the government from time to time on destination basis.

Here too, the emphasis was on fixation of price. During the first five-year plan period Jaipur, too had entered the field but was incorporated as a private limited company in November 1955. A notable feature of this period was that the existing plant, or plant established a new, had larger capacity. 1.3.3 THIRD FIVE-YEAR PLAN: This plan marked for industrial growth led the government to anticipate a heavy shortage of cement and to meet this challenges expansion programme were undertaken. The principle objectives were: i)

To make survey for the prospection and providing Cement grade limestone in the country.

ii)

To set up units in public sector to achieve plan targets.

iii)

To support all the ancillary and subsidiary activities connected with Cement and make efforts for its growth and development.

The achievements of the third five year plan were lower as compared to second and first five year plans. 1.3.4 POLICY OF 1980: The National highway projects, new railway lines, bridges, irrigation canals and dams reshaped the country and projected a new face of the industrialist’s scenario. The Government of India had to decide start a partial decontrol of cement industry and subsequently to fuller decontrol of it. The new policy granted cement manufacturers a profit of about 12% on their investment so that

rapid increase in cement production can take place to bridge the gap of demand and production capacity. At that time this gap was bridged by the imports of cement. In 1972 Cement project of which was commissioned on December 1974 was completed The first stage achieved production of 900 tones per day with 4 stage suspension preheated dry process kiln plants of FLS design equipped with electrostatic precipitator and the conditioning tower for the kiln and raw mill circuit. The second stage of the plant had 4-stage suspension preheated kiln of 1200 tones per day capacity. It commenced production in 1979. Besides, these concessions new licenses were issued for expansion or establishment of new units.

1.4 MAJOR DEPARTMENTS OF THE COMPANY o Mines o Production o Engineering o Electrical & Instrumentation o Thermal Power Plant o Diesel Power House o Environment & Safety o Store & Raw Material o Building

o Purchase o Accounts o Information Systems o Personal & Welfare o Time Office o General Administrative o HRD o Legal o Sales & Marketing o ISO 9001:2000 Cell

o Security

2. INTRODUCTION OF COMPANY 2.1 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.

2.2 VISION To register a strong consumer surplus through a superior cement quality at affordable prices.

2.3 MISSION o To sustain its reputation as the most efficient cement manufacturer in the world. o To strengthen realizations through intelligent brand building. o To drive down costs through innovative plant practices. o To increase the awareness of superior product quality through a realistic and convincing communication process with consumers.

2.4 PHILOSOPHY Let noble thoughts come to us from all over the world. – Rig-Veda

2.5 BUSINESS ETHICS o Enforce good corporate governance practices. o Inculcate integrity of conduct. o Ensure transparency and credibility in communication. o Remain accountable to all stakeholders. o Encourage socially responsible behavior.

2.6 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.

2.7 CODE OF CONDUCT ON CORPORATE GOVERNANCE PHILOSOPHY Shree Cement Ltd is a professionally managed company. The company always believes in complete transparency and discharge of the fiduciary responsibilities, which has been assumed by Directors as well as by the Senior Management Executives and/or Staff. Therefore in order to ensure the continuity thereof though, not written but otherwise ingrained, the Board of Directors has approved of the

following Code of Conduct for all Directors as well as for the Senior Management Executive and/or personnel and other employees. All the Directors as well as Senior Management Executive and/or Personnel owe to the Company as well as to the shareholders: i) "Fiduciary duty" ii) “Duty of skill and care” iii) “Social responsibility” With the above objects in mind the following code of conduct has been evolved and it is expected that all Directors as well as Senior Management Executives and/or personnel will adhere to it. FIDUCIARY DUTIES All Directors as well as Senior Management Executives and/or personnel while dealing on behalf of the company will exercise the power conferred upon him / them and fulfill his / their duties honestly and in the best interest of the company. DUTY TO EXERCISE POWER FOR PROPER PURPOSES The Board from time to time shall determine the powers to be exercised by the Directors as well as the Senior Management Executives and/or Personnel and all such powers shall be exercised reasonably. CONFLICT OF INTEREST None of the Directors and/or Senior Management Executives and/or personnel will put himself in a position where there is potential conflict of interest between personal interest and his duty to the company. None of the Directors and/or Senior Management Executive and/or personnel will exploit an opportunity arising while associated with the Company for his personal gain either directly or indirectly. SECRET PROFITS The Director as well as Senior Management Executives and/or personnel while discharging their duties in a fiduciary capacity is precluded from making any personal profit from an opportunity which may arise being a Director and / or

Senior Management Executive of the Company and should always ensure that he is acting for and on behalf and for the good of the Company. DUTY OF SKILL AND CARE Since all the Directors as well as Senior Management Executives and / or personnel are acting in a fiduciary capacity and for the benefit of the company, being advocates of the business of the Company, none of them will do anything which is in conflict with the interest of the company. ATTENTION TO BUSINESS All Directors as well as Senior Management Executives and/or personnel will give proper attention to the business of the company. SECRECY AND CONFIDENTIALITY None of the Directors as well as Senior Management Executives and/or personnel while associated or working for the company will be entitled to disclose either directly or indirectly or make use of the confidential information which may come in their possession while acting on behalf of the company and shall not divulge the financial status and position of the company to any person or persons. INTERNAL TRADING None of the Directors as well as Senior Management Executives and/or personnel will directly or indirectly in the name of his family members and/or associates will indulge in any internal trading of the company’s shares and stocks. RISK AND PROPER PROCESS The Senior Management personnel and/or employees are expected to keep the Directors fully informed about the effect of the policies adopted by the company from time to time and also regarding the risk connected with such policies. Senior Management personnel and/or staff who have been entrusted with specific duties for ensuring compliance of statutory requirements including the rules and regulations shall forthwith comply with the same and keep the Board of directors fully informed about such compliance or non-compliance.

Senior Management personnel will from time to time provide or cause to be provided a true and faithful account of the company’s working and effectiveness of the procedures adopted by the company from time to time. All Directors as well as Senior Management Executives and/or personnel are aware that while working with the company they have a social responsibility as well and therefore from time to time will devote such time for the upliftment of the downtrodden, poor and needy persons in the locality.

2.8 PLANT LOCATION

Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the DelhiAhmedabad highway. Amongst the plants in the state it is nearest from its marketing centers. Bangur Cement Unit (III, IV, V & VI) is located at RAS, 28 Km from Beawar in Pali Dist. Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to Delhi.

Registered Office & Works: Shree Cement Ltd. Bangur Nagar, Post Box No. 33, Beawar 305901 Rajasthan India

Corporate Office: 21, Strand Road, Calcutta- 700001

2.9 MARKETING

Over the last few years, there has been a remarkable shift at Shree: from a Production-centric to a customer-obsessed organization

• Marketing Presence • Markets 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 northern-most 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.

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 produced a 53 grade product at a 43 grade price - better quality at a lower price. The company positioned its brands around longer life (durability), emphasizing product longevity. The company innovated the launch of corrosion resistant grade like Red Oxide, 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 200203. Shree educated its principal users - the masons and architects.

Markets classification Markets

States

Primary

Rajasthan

Secondary

Delhi, Punjab, JK, Haryana, Western U.P. and Uttaranchal

Tertiary

Gujarat, M.P. and Central U.P.

Rajasthan Highlights, 2002-3 • •

Increase in market share. Stronger dealer network.

• • • •

Deeper rural penetration. Increased promotional activity. Stronger customer service. The successful launch of Red Oxide cement.

Performance The Company sold 8.07 lac tonnes in 2002-03 (4.39 lac tonnes in 2001-02 -nine months) in Rajasthan (29.60 per cent of the company’s sales). It sold 44,978 tonnes and 22,264 tonnes per month in the trade and non-trade segments respectively. Trade sales in 2002-03 were higher than the monthly average of 33,069 tonnes in 2001-02. Network Shree’s dealer network in Rajasthan increased to 371 in 2002-03 and translated into enhanced sales and Rajasthan protected realizations. The company appointed more field officers who serviced customers at regular intervals. Rajasthan had nine business centers, which provided timely services for better customer satisfaction. The company conducted meetings with masons to garner a better response. Competition Though competition was severe from Vikram, Ambuja, JK, BCW and Binani, Shree was able to enhance its market share within the state from 11.01 per cent in 2001-02 to 13.12 per cent in 2002-03. Even though low priced alternatives were available, Shree’s 53 grade sold more than the other grades. Dealer performance Shree serviced the dealer with regular service, prompt solutions and a better return on the invested capital. Sundry debtor declined to four days in the trade segment and 32 days in the institutional segment. Old out standings were recovered. Outlook The Company expects to service the dealer network, enhance volumes, focus on unmapped areas and reduce costs. It expects to focus on Red Oxide brand through stronger awareness building.

Shree cement's Business Centers

Delhi

Delhi

Haryana

Gurgaon, Hissar, Karnal

Punjab

Chandigarh, Bhatinda, Jalandhar, Ludhiana

Rajasthan

Ajmer, Alwar, Jaipur, Jhunjhunu, Jodhpur, Kota, Pali, Sri Ganganagar, Udaipur

Uttar Pardesh

Ghaziabad, Agra, Muzaffar Nagar

JOB PROFILE MARKETING o Stockiest Network o Retailer Network o Order Collection o Payment Collection o Motivated to Stockiest o Outstanding Control o Consumer Satisfaction o Stockiest Monthly Sales Ledger Verification o Site Visits with Stockiest & Retailers o Pricing o Market Activities of Competitors

2.10 PEOPLE

• Jo Soche Woh Paave • Creating Leaders at Every Level • Recognition and Reward Scheme • Nomination to Vishwakarma Rashtriya Puraskar • Multiskill Development Training Programme • Ascent Programme • The Company’s People Achievements

2.11 INNOVATION Innovative & Cost Conscious Management • Leadership in the use of alternative waste fuel First cement plant in India to maximise substitution of imported coal by petcoke (petroleum industry waste) thereby increasing profitability and saving natural resources. • Initiatives for Global Warming reduction Pioneered in the application of innovative Electro Static Precipitator technology in DG power generation to save fuel and combat pollution, and replaced HSD by LDO. • Achieved unity power factor . In electrical distribution system to reduce maximum demand, and transmission / distribution losses • Partial utilization of waste heat . For 3 MW power generation.

• Initiator in the use of pet coke for power generation in India 36MW captive thermal power plant under commissioning to generate quality power for the Plant, avoids transmission and distribution losses, and provides surplus power to Rajasthan. SAVINGS: Rs 496.46 million pa • Development of DD Cones In house development of Deduiling Cones for cyclones resulting in reduction in pressure drop, higher outputs and lower energy consumption. • Single Roller press for two Ball Mills Capacity enhancement & utilization of CM-2 Roller press for capacity increase and energy saving in CM-1 ---Energy Saving - 2.02 kWh / T cement

2.12 BOARD OF DIRECTORS Shri B.G. Bangur

-

Executive Chairman

Shri H.M. Bangur

-

Managing Director

-

Executive Director

Shri R.L. Gaggar Shri O.P. Setia Shri R.S.Agarwal Shri S.K. Somany Dr. Abid Hussain Dr. Y.K. Alagh Shri M.K. Singhi

2.13 MILESTONES

Milestones in 2007 - 08 2007-08

Best Employer Award for Rajasthan for the year 2007

2007-08

Golden Peacock Award for Excellence in Corporate Governance in manufacturing sector.

2007-08

Second prize for National Energy Conservation by Bureau of Energy Efficiency in cement sector for the year 2007.

2007-08

National awards for Excellence in Water Management as “Water efficient Unit” by CII, 2007.

2007-08

NCCBM award for Best Improvement Electrical Energy Performance during year 2005-06.

2007-08 NCCBM award for Best Improvement in Thermal Energy Performance during year 2006-07.

2007-08

NCCBM award for Best environmental excellence in plant operation during 2006-07.

2007-08

NCCBM award for 2nd Best Quality excellence during year 2006-07.

2007-08

India Manufacturing Excellence award by Frost and Sullivan for the year 2007.

2007-08

9th Golden Peacock Award for Environment Management Award 2007.

2007-08

Greentech Environmental Excellence Award 2007.

2007-08

Launch of Tuff Cemento 3556 in March 2007

2007-08

Kush khera Grinding Unit (KKGU)-I Commenced its Production from July 2007.

2007-08 Kush khera Grinding Unit (KKGU)-II Commenced its Production from December 2007.

2007-08 Unit - V at RAS. August 2007.

3. PROJECT TITLE “The Study of Cement Market at Jhunjhunu” 4. OBJECTIVES OF THE STUDY The main objective of the project was as follows:• To find out the market position and brand image of Shree Cement at Jhunjhunu. • To study the behavior of consumers. • Getting an insight of the management support and services provided to the dealers and retailers. It was done with the help of questioner, survey and current information of the company and taking into consideration the current market scenario of the cement industry at Jhunjhunu.

5. SCOPE OF THE STUDY

The research had been conducted in Jhunjhunu in the month July-August 2008.The researcher contacted dealers, retailers, masons and common people in different areas of Jhunjhunu city for fieldwork. The researcher not only partially fulfilled his requirement of MBA degree program but also learned a lot in the field of marketing research. The researcher has got an opportunity of implementing his theoretical knowledge of management curriculum in practical life.

6. RESEARCH METHODOLOGY The researcher divided the Jhunjhunu city in different areas and then conducted the research, covering all the segments available in the designated area. The research was designed to know about the current cement market scenario at Jhunjhunu and dealer’s & retailer’s perception about the cement they sell and also know about the perception of consumer’s about the cement they use for construction.

Type of Research

-

Descriptive

Type of Data

-

Primary

Method of Data collection

-

Survey

Research Instrument

-

Structured Schedule

Sampling Method

-

Quota Sampling

Sample Size

-

100

Sampling Unit

-

Dealers / Retailers (30), Consumer (70)

DATA COLLECTION There are two types of data required for this project: •

Primary Data

•

Secondary Data

PRIMARY DATA The primary data has been collected by survey method using the questionnaire. The questionnaire is consisting of 7 questions for dealers & retailers and 7 questions for consumer, well thought as well as directly related to the topic. The question of questionnaire is closed ended. This is the most economical, efficient & effective way of collecting primary data. It yields a wide range of information on various characters like attitude, opinion, motive & behaviors. SECONDARY DATA 1. Fact sheets of Shree Cement Limited 2. Internet

LIMITATIONS 1. Limited experience of the researcher in the field of research may cause some errors. 2. Lack of proper response from some of the retailers. 3. Time and money limit were also major constraints for market survey.

7. ANALYSIS OF THE STUDY 7.1 DATA ANALYSIS THROUGH GRAPHS 7.1.1 FOR DEALERS/ RETAILERS

1 . W h a t d o y o u th in k a b o u t th e b ra n d im a g e o f fo llo w in g b ra n d s ? 8 7

7

7

6 5

5

5 G ood

4

A ve ra g e B e lo w A ve ra g e

3 2 1

1

1

1

1 1 1

0 0 0 0 0 0 Inferences: Ambuja A m All b u jathe dealers B irla C hofe ta kS h re ecement U lt ra thinks U lt ra t ethat c h brand O t image h e r of Ambuja cement is good. 87.5% dealers of Ultratech cement appreciate brand image as good while 83% dealers of Birla Chetak & Shree Ultra each also appreciate brand image as good.

2 .W h a t d o y o u t h in k a b o u t c o m p a n y 's s e r v ic e ? 9 8

8 7

7 6

6 5

5

G ood A ve ra g e

4

B e lo w A ve ra g e

3 2

2 1

1 0

0 0

1 0

0 0

0 0

0

Inferences: A m100% b u ja dealers B ir la of C hAmbuja, e t aSk h reShree e U ltUltra r aU lt& ra Ultratech t e c h Ocement t h e r appreciate company’s services as good. While, 83% dealers of Birla Chetak appreciate it as good.

3 . W h ic h a d v e rtis e m e n t s tra te g y d o y o u s u g g e s t to th e c o m p a n y to b e a d o p te d ?

(d) H o ard in g s 8 2 7%

(e) O th er (a) A d s . O n T.V . 0 5 0% 17 %

(c ) W a ll P a inting s 11 36 %

(b ) A ds . In N ew s P ap er 6 2 0%

(a ) A ds . O n T.V . (b ) A ds . In N e w s P a pe r (c ) W all P ainting s (d ) H oa rdin g s (e ) O the r

Inferences: 36% dealers suggest to the company for adopting wall painting advertisement strategy. Most people think that every passer by either he is in a car or on a motor bike, on cycle or on foot his eyes are sure to catch a glimpse of advertisement through painting on wall on the road sides of any building that is what which make it popular. 27%, 20% & 17% dealers suggest to the companies for adopting hoardings, adverting in news paper & advertisement on TV respectively.

4. H o w o fte n marke tin g office r v isit you r sh op ? 6

5

4 o r Mo re 5

4 o r Mo re 5

4 o r Mo re 5 0 -3 4 o r Mo re 4 4

4

0 -3 3

3

2

1

0

0 -3 4 o r Mo re

0 -3 2 0 -3 1

0 -3 1 4 o r Mo re 0

Inferences: that the marketing officer Am Most b u ja of the B irladealers C h e ta (63%) k S h resaid e U ltra U ltra te ch Oth e rof their company visit there shop 4 or more times in a month. On the other hand rest of the dealers (37%) said that the marketing officer of their company visit there shop less than 4 times in a month.

5 . W h a t d o y o u th in k a b o u t c o m p a n y ’s c u r r e n t m a r k e t p 9 8

8 7 6

6

6 5

5

G ood A ve ra g e

4

B e lo w A ve ra g e

3 2 1 0

1

1 0

1 1 1 0

0 0

0 0

Inferences: of the dealers & UUltratech the A m All b u ja B irla C h eoft aShree kS h re eUltra U lt ra lt ra t e c hcement O t happreciate er current market policies of their company as good. While, 87% dealers of Ambuja & 83% dealers of Birla Chetak cement appreciate the current market policies of their company as good.

6. Are yo u satisfie d w ith sale s p ro m o tio n e ffo rts o f co m p an y? 9 8 7

Ye s 8 Ye s 7 Ye s 6

6

Ye s 6

5

Ye s No

4 3

Ye s 2

2 1 0

No 1 No 0

No 0

No 0

No 0

Inferences: of the Bdealers Shree AmAll b u ja irla C hof e taAmbuja, k S h re eBirla U ltraChetak, U ltra te ch Ultra & O thUltratech er cement are satisfied with sales promotion efforts of their companies. But they want more sales promotion from company.

7 . W h a t d o y o u th in k a b o u t th e m a rg in y o u re c e iv e d ? 7 6

6

6 5

5

5

4

G ood A ve ra g e B e lo w A ve ra g e

3 2

2 1

1

1 0

2

1 0

1 0

0

0

0 Inferences: theC dealers are satisfied that they A m bMost u ja of B irla h e ta k S h(74%) re e U ltra U ltra te c h with Othe th e margin r receive. While, 23% dealers said that they are receiving average margin. Rest 3% dealers said that they are receiving below average margin & they want to become the dealer of other companies.

7.1.2 For Consumer

1 . W h ic h b r a n d o f c e m e n t y o u p r e f e r t o u s e ?

( e ) O th e r 5 7% ( d ) U ltr a te c h 20 28% ( c ) S h r e e U ltr a 13 19%

( a ) A m b u ja 18 26%

( a ) A m b u ja ( b ) B ir la C h e ta k ( c ) S h r e e U ltr a

( b ) B ir la C h e ta k 14 20%

( d ) U ltr a te c h ( e ) O th e r

Inferences: 28% respondents prefer Ultratech cement. While, 26% prefer Ambuja cement. 20%, 19% & 7% respondents prefer Birla Chetak, Shree Ultra & Other cement respectively.

2 . W h y d o y o u p re fe r th is b ra n d ?

(d ) A va ila b ility (e ) O th e r (a ) B ra n d Im a g e 0 13 12 0% 19% 17%

(a ) B ra n d Im a g e (b ) P ric e

(c ) Q u a lity 27 38%

(b ) P ric e 18 26%

(c ) Q u a lity (d ) A va ila b ility (e ) O th e r

Inferences: 38% People concern quality while purchase cement. While, 26% people concern price. 19% & 17% people concern availability & brand image respectively.

3. W h ich g rad e o f ce me nt yo u p re fe r th e most?

(c ) R E D O XID E 13 19% (b) 43 Grade 5 7%

(a) 53 Grade (b) 43 Grade (a) 53 G rade 52 74%

(c ) R E D -O XID E

Inferences: The 53 Grade of cement is widely accepted as 74% respondent favored this opinion. 19 % respondent favored for Red-Oxide. While, 43 Grade is less accepted by the consumer, only 7% customers use it.

4. Are you satisfied with the result?

(b) No 27 39%

(a) Yes

(a) Yes 43 61%

(b) No

Inferences: 61% people are satisfied with the result of cement they use. But 39% people are dissatisfied with the results.

5. If dissatisfied. What is the reason of it?

(b) High Price 4 15%

(c ) Other 0 0%

(a) Low Quality (b) High Price

(c ) Other (a) Low Quality 23 85% Inferences: Out of 27 respondents 23 respondents were dissatisfied with the result due to lower quality and rest 4 respondents were dissatisfied because of higher price of the cement they used.

6. What type of advertisement attract you the most? (e) Other 0% (a) Ads. on T.V. 13%

(d) Hoardings 31%

b) Ads. in News Paper 19%

(a) Ads. on T.V. b) Ads. in News Paper (c) Wall Painting (d) Hoardings

(c) Wall Painting 37%

(e) Other

Inferences: 37% respondents thinks that wall painting attract them most. While, hoardings attract 31% respondents. Advertisements in News paper & Advertisement on T.V. attracts19% & 13% respondents respectively.

7. Are you satisfied with the service of dealer / retailer? (b) No 11 16% (a) Yes (b) No (a) Yes 59 84%

Inferences: 84 % respondents are satisfied with the service of dealer/ retailer. But, 16% respondents are dissatisfied with the service of dealer/ retailer.

7.2 SWOT ANALYSIS

S) STRENGTH • Good quality. • Good brand Image in the market. W) WEAKNESS • Less advertising • Dealer network is less than other companies. O) OPPORTUNITIES • Exposure of quality, which is already good but not much displayed in the market. • Road projects, infrastructure developments, and rural housing work are on the anvil in near future, hence the sale may increase. T) THREATS • The advertising policies of other companies. • Price fluctuation.

8. FINDINGS

According to the survey conducted, the researcher finds the following points: • Quality matters a lot while consumer buying cement. • Consumer mostly uses 53-Grade of cement. • Some people say that quality of 53-Grade is not so very well. • Shree Ultra has good brand image in the market and most of the dealers and retailers are satisfied with it. • Contractors give emphasis on commission and gifts. So, commission should increase and gift items like company diaries, company pens, company bags, lunch boxes and walkmans etc. given to contractors on regular time gaps for increase sale. • Lack of advertising of Shree Cement in comparison of Ultratech, Ambuja and Birla Chetak Samrat in Jhunjhunu. • There is not much dissatisfaction regarding market rates but the dealers and retailers demands for more margins.

9. SUGGESTIONS AND RECOMMONDATIONS

• Dealers and retailers must be regularly visited and for that Marketing Staff must be immediately increased. • Aggressive marketing must be followed in the market rather than lagging behind the competitors. • Technical service staff must be dealer/retailer/consumer problems.

increased

in

order

to

satisfy

• Ad media/print material must be substantially increased which is at present is far less than the competitors. • Dealer’s margins must be increased so that they are motivated to become our constant dealer. • Marketing policies and strategies needs a major change to push the sales because due to loose marketing policies, many potential dealers and retailers are shifting towards the competitors in last one year. • Proper flow of information in the market should be ensured i.e. from company to the target market. • The promotion material circulated by the company should also have mention of such dealers and retailers. • Company should concentrate more on the contractors and masons, as they are the strong influencers in the decisions making of the consumers. • More emphasis should be given on building the relationships with the customer. •

Value added services is considered to be an important part of the whole concept and should be taken more seriously as it has been observed that either the services are not available or if does, than is not handled in the proper way. 10.

QUESTIONNAIRE

Cement Market Survey at Jhunjhunu (Dealers/ Retailers)

Dealer / Retailer Name

: -…………………………………………………....

Brand

: -…………………………………………………....

Address

: -…………………………………………………....

Phone No.

: -……………………………………………………

Management Trainee Name

: - Anil Kumar Khichar

Collage Name : - G.D.Memorial Management & Technology,Jodhpur 1. What do you think about the brand image of following brands? Brand / Remark

Good

Average

Below Average

Average

Below Average

Ambuja Birla Chetak Shree Ultra Ultratech Other 2. What do you think about company’s service? Brand / Remark

Good

Ambuja Birla Chetak Shree Ultra Ultratech Other 3. Which advertisement strategy do you suggest to the company to be adopted (a) Ads. on T.V. (b) Ads. in News Paper (c) Wall Painting (d) Hoardings (e) Other 4. How often marketing officer visit your shop? Brand Ambuja Birla Chetak

0-3

4 or More

Shree Ultra Ultratech Other

5. What do you think about company’s current market policies? Brand / Remark

Good

Average

Below Average

Ambuja Birla Chetak Shree Ultra Ultratech Other 6. Are you satisfied with sales promotion efforts of company? Brand / Remark

Yes

No

Ambuja Birla Chetak Shree Ultra Ultratech Other

7. What do you think about the margin you received? Brand / Remark Ambuja Birla Chetak Shree Ultra Ultratech Other

Good

Average

Below Average

Date: -…………………

Signature: -………………………….

Consumer Perception about Cement at Jhunjhunu

Name

: -……………………………………………………

Address

: -…………………………………………………… ……………………………………………............

Occupation

: -……………………………………………………

Phone No.

: -……………………………………………………

Management Trainee Name

: - ANIL KUMAR KHICHAR

Collage Name

: -G.D. MEMORIAL MANAGEMENT& TECHNOLOGY,JODHPUR

1. Which brand of cement you prefer to use? (a) Ambuja (b) Birla Chetak (c) Shree Ultra

(d) Ultratech

2. Why do you prefer this brand? (a) Brand Image (b) Price

(d) Availability (e) Other

(c) Quality

(e) Other

3. Which grade of cement you prefer the most? (a) 53 (b) 43 (c) RED-OXIDE (d) Other 4. Are you satisfied with the result? (a) Yes (b) No 5. If dissatisfied. What is the reason of it? (a) Low Quality (b) High Price (c) Other 6. What type of advertisement attracts you the most? (a) Ads. on T.V. (b) Ads. in News Paper (c) Wall Painting (d) Hoardings (e) Other 7. Are you satisfied with the service of dealer / retailer? (a) Yes (b) No Date: -…………………

11. BIBLIOGRAPHY 1)

www.cmaindia.com

2) www.shreecementltd.com 3) www.google.com

Signature: -………………………….