acc project
TRANSCRIPT
A STUDY ON DEALERS OPINION ABOUT ACC
limited AND ITS PRESENCE IN
CHAIBASA DISTRICT WITH SPECIAL
REFERENCE TO ACC LTD, RANCHI
Submitted In Partial Fulfillment Of The
Requirement For The Award Of Post Graduate
Diploma In Business Management Of
“International Institute Of Planning And
Management” New Delhi.
BISHAW DEO MISHRA
DEPARMENT OF MANAGEMENT STUDIES
INTERNATIONAL INSTITUTE OF PLANNING AND
MANAGEMENT, NEW DELHI
YR-2008
D E C L A R A T I O N
This is to declare that the project entitled “Dealers
Opinion about ACC limited and its presence in Chaibasa
District” with special reference to ACC Limited submitted
to “International Institute Of Planning And Management”
New Delhi in partial fulfillment of PGDBM is a record Of
original work done by me during the period of study at
“International Institute Planning And Management” New
Delhi
BISHAW DEO MISHRA
PLACE :
DATE :
ACKNOWLEDGEMENT
Our sincere thanks to the teaching and non-teaching staff
of “International Institute of Planning And Management “,
New Delhi. For their Assistance and guidance.
I am thankful to Mr. Shailesh Ambastha, sales Head –
Jharkhand & Mr. Abhishek of ACC Cement LTD. Ranchi. I
am thankful to the people who readily concentrated to
provide me practical training in their organization.
Besides, I take this opportunity to express our gratitude
to our parents, family members and friends who
encouraged me in the completion of this project work.
Above all, I am thankful to power beyond us who guided
and helped me to complete the work.
BISHAW DEO MISHRA
INTRODUCTION
Cement is a fine gray, soft , powdery-types substance. It
is made from a mixture of elements that are found in
natural materials such as limestone, clay, sand and shale.
When cement is mixed with water, it can bind sand and
gravel into a hard, solid mass called concrete.
Cement can be purchased from most building supply
stores in bags. Cement is usually gray. White cement can
also be found but it is usually more expensive than gray
cement. Cement mixed with water, sand and gravel,
forms concrete. Cement mixed with water and sand,
forms cement plaster. Cement mixed with water, lime
and sand, forms mortar. Cement powder is very, very
fine. One kilo (2.2 lbs) contains over 300 billion Grains,
although we have not actually counted them to see if that
is completely accurate! The powder is so fine it will pass
through a sieve capable of holding Water. Four essential
elements are needed to make cement. They are calcium,
Silicon, aluminum and iron.
HISTORY OF CEMENT
Throughout history, cementing materials have played a
vital role. They were used widely in the ancient world.
The Egyptians used calcite gypsum as cement. The
Greeks and Romans used lime made by heating
limestone and added sand to make mortar, with coarser
stones for concrete.
The Romans found that cement could be made which set
under water and this were used for the construction of
harbors. The cement was made by adding crushed
volcanic ash to lime and was later called‘pozzolanic’
cement, named after the village of Pozzuoli near
Vesuvius.
In places such as Britain, where volcanic ash was scarce,
crushed brick or tile was used instead. The Romans were
therefore the first to manipulate the properties of
cementations’ materials for specific applications and
situations.
Hadrian's Wall, England, a few miles east of Housesteads.
Marcus Vitruvius Pollio, a Roman architect and engineer
in the 1st century BC wrote his "Ten books of
Architecture" - a revealing historical insight into ancient
technology. Writing about concrete floors, for example:
"First I shall begin with the concrete flooring, which is the
most important of the polished finishing, observing that
great pains and the utmost precaution must be taken to
ensure its durability".
"On this, lay the nucleus, consisting of pounded tile
mixed with lime in the proportions of three parts to one,
and forming a layer not less than six digits thick."
And on pozzolana:
"There is also a kind of powder from which natural causes
produces astonishing results. This substance, when mixed
with lime and rubble, not only lends strength to buildings
of other kinds, but even when piers are constructed of it
in the sea, they set hard under water."
His "Ten books of Architecture" are a real historical gem
bringing together history and technology. Anyone wishing
to follow his instructions might first need to find a
thousand or so slaves to dig saw, pound and polish...
After the Romans, there was a general loss in building
skills in Europe, particularly with regard to cement.
Mortars hardened mainly by carbonation of lime, a slow
process. The use of pozzolana was rediscovered in the
late middle Ages.
The great mediaeval cathedrals, such as Durham, Lincoln
and Rochester in England and Chartres and Rheims in
France, were clearly built by highly skilled masons.
Despite this, it would probably be fair to say they did not
have the technology to manipulate the properties of
cementations materials in the way the Romans had done
a thousand years earlier.
The Renaissance and Age of Enlightenment brought new
ways of thinking, which for better or worse, led to the
industrial revolution. In eighteenth century Britain, the
interests of industry and empire coincided, with the need
to build lighthouses on exposed rocks to prevent shipping
losses. The constant loss of merchant ships and warships
drove cements technology forwards.
Seaton, building the third Eddy stone lighthouse (1759)
off the coast of Cornwall in Southwestern England, found
that a mix of lime, clay and crushed slag from iron
making produced a mortar, which hardened under water.
Joseph Aspdin took out a patent in 1824 for "Portland
Cement," a material he produced by firing finely ground
clay and limestone until the limestone was claimed. He
called it Portland cement because the concrete made
from it looked like Portland stone, a widely used building
stone in England.
While Aspdin is usually regarded as the inventor of
Portland cement, Asp din’s cement was not produced at a
high-enough temperature to be the real forerunner of
modern Portland cement. Nevertheless, his was a major
innovation and subsequent progress could be viewed as
mere development.
A ship carrying barrels of Aspin’s cement sank off the Isle
of Shipley in Kent, England, and the barrels of set
cement, minus the wooden staves, were later
incorporated into a pub in Sheerness and are still there
now.
A few years later, in 1845, Isaac Johnson made the first
modern Portland cement by firing a mixture of chalk and
clay at much higher temperatures, similar to those used
today. At these temperatures (1400C-1500C), clinkering
occurs and minerals form which are very reactive While
Johnson used the same materials to make Portland
cement as we use now, three important developments in
the manufacturing process lead to modern Portland
cement: Development of rotary kilns- Addition of gypsum
to control setting Use of ball mills to grind clinker and raw
materials. Rotary kilns gradually replaced the original
vertical shaft kilns used for making lime from the 1890s.
Rotary kilns heat the clinker mainly by radioactive heat
transfer and this is more efficient at higher temperatures,
enabling higher burning temperatures to be achieved.
Also, because the clinker is constantly moving within the
kiln, a fairly uniform clinkering temperature is achieved in
the hottest part of the kiln, the burning zone.The two
other principal technical developments, gypsum addition
to control setting and the use of ball mills to grind the
clinker, were also introduced at around the end of the
19th century.
PROFILE OF CEMENT INDUSTRY:
The Indian Cement industry is the second largest cement
producer in the world, with an installed capacity of 144
million tonnes. The industry has undergone rapid
technological up gradation and vibrant growth during the
last two decades, and some of the plants can be
compared in every respect with the best operating plants
in the world. The industry is highly energy intensive and
the energy bill in some of the plants is as high as 60% of
cement manufacturing cost. Although the newer plants
are equipped with the latest state-of-the-art equipment,
there exists substantial scope for reduction in energy
consumption in many of the older plants adopting various
energy conservation measures.
The Indian cement industry is a mixture of mini and large
capacity cement plants, ranging in unit capacity per kiln
as low as 10 tpd to as high as 7500 tpd. Majority of the
production of cement in the country (94% ) is by large
plants, which are defined as plants having capacity of
more than 600 tpd. At present there are 124 large rotary
kiln plants in the country.
The Ordinary Portland cement (OPC) enjoys the major
share (56%) of the total cement production in India
followed by Portland Pozzolana Cement (PPC) and
Portland Slag Cement (PSC). A positive trend towards the
increased use of blended cement can be seen with the
share of blended cement increasing to 43%. There is
regional imbalance in cement production in India due to
the limitations posed by raw material and fuel sources.
Most of the cements plants in India are located in
proximity to the raw material sources, exploiting the
natural resources fully. The southern region is the most
cement rich region while other regions have almost same
cement production capacity.
The Indian cement industry is about 90 years old and its
main sources of energy are thermal and electrical energy.
The thermal energy is generally obtained from coal, and
the electrical energy obtained either from grid or captive
power plants of the individual manufacturing units.
2. Salient features of Indian cement industry
Indian cement industry is the second largest in the
world with an installed capacity of 135 MTPA. It
accounts for nearly 6% of the world production.
There are 124 large plants and around 365 mini
plants. The industry presents a mixed picture with
many new plants that employ state-of-the-art dry
process technology and a few old wet process plants
having wet process kilns.
Production from large plants (with capacity above 1
MTPA) account for 85% of the total production.
The cement industry has achieved significant
progress in terms of reducing the overall energy
intensity.
Dry process plants that the weighted average
thermal energy consumption was 734 kCal/kg
clinkers, and weighted average electrical energy
consumption was 89 kWh/tonne of cement. The best
energy consumption are 692 kCal/kg. clinker and 66
kWh/ton of cement.
3. Quantitative details:
The energy intensity of the all the dry process plants
(cost of energy as percentage of total production cost of
packed cement) varies from 29 to 61%. This is observed
to vary with the vintage of the plant, the technology
employed by the plants and the type of cement
produced. Specific thermal and electrical energy
consumption for the plants ranges between 692 – 879
kCal/kg. of clinker and 66 – 127 kWh/ton of cement
produced (product mix) respectively. The specific
electrical energy also includes the energy consumed in
packing, plant utilities and plant lighting. The reasons for
wide range in specific energy consumption can be mainly
attributed to the differing equipment configuration
employed in different sections of the plants by various
cement.
Production of Cement Across States
1970 1981 1985-86 1990-91 1993
-94 QM
Q Shar
e Q
Shar
e Q
Andhra
Pradesh 1.45 10.4 2.67 12.9 4.87 15.2 8.64 17.7 8.62 16 9.99
Karnataka 1.45 10.4 1.62 7.8 2.78 8.7 4.11 8.4 5.27 9.8 5.39
Kerala 0.05 0.4 N.A. - 0.25 0.8 0.28 0.6 0.38 0.7 0.38
Tamil
Nadu 2.39 17.1 3.46 16.6 3.72 11.6 4.18 8.5 5.05 9.3 5.26
South
Zone 5.34 38.3 7.75 37.3
11.6
2 36.3
17.2
1 35.2
19.3
2 35.8
21.0
2
Assam 0.05 0.4 0.19 0.9 0.17 0.5 0.3 0.6 0.15 0.3 0.17
Bihar 1.75 12.5 1.52 7.3 1.21 3.8 1.18 2.4 1.09 2 1.17
Meghalay
a N.A. - 0.03 0.2 0.09 0.3 N.A. - 0.11 0.2 0.11
Orissa 0.63 4.5 0.84 4.1 0.87 2.7 1.17 3.5 1.18 2.2 1.34
West
Bengal N.A. - 0.36 1.7 0.36 1.1 0.41 0.8 0.44 0.8 0.44
East Zone 2.43 17.4 2.94 14.2 2.7 8.4 3.06 6.3 2.97 5.5 3.23
Gujarat 1.78 12.8 1.71 8.2 2.61 8.1 4.27 8.7 4.37 8.1 4.84
Madhya
Pradesh 2 14.3 4.06 19.6 7.07 22.1 11.4 23.3
13.8
7 25.7 14.4
Maharasht
ra N.A. - 0.63 3 1.47 4.6 4.05 8.3 4.13 7.6 4.3
West
Zone 3.78 27.1 6.4 30.8
11.1
5 34.8
19.7
2 40.3
22.3
7 41.4
23.5
4
Haryana 0.52 3.7 0.46 2.2 0.55 1.7 0.63 1.3 0.53 1 0.55
Himachal
Pradesh N.A. - 0.18 0.9 0.64 2 N.A. - 1.03 1.9 1.09
Rajasthan 1.39 10 2.3 11.1 4.13 12.9 5.63 11.5 5.72 10.6 6.29
Uttar N.A. - 0.65 3.1 1.09 3.4 1.35 2.7 1.71 3.2 7.93
Pradesh
North
Zone 1.91 13.7 3.59 17.3 6.41 20 7.61 15.5 8.99 16.6
Other
States 0.49 3.5 0.09 0.4 0.14 0.5 1.32 2.7 0.36 0.7 2.28
All India 13.9
5 100
20.7
7 100
32.0
2 100
48.9
2 100
54.0
1 100 58
(Million tonnes)
GROWTH OF CEMENT INDUSTRY: A PROFILE
At the outset it may be recognized that cement is one of
the core industries defined under the Industrial Policy
Resolutions adopted in the early stage of planning in
India. Its growth implications essentially have to be seen
in the larger context of national economy rather than in a
regional or sub-regional context.
There are three important features characterizing the
industry. First, the basic raw material for the industry is
limestone, which like all minerals is fixed in quantity.
Therefore, the present rate of its use should consider
demand-supply situations in the long run. Second, and
more important is that the industry may potentially have
adverse environmental impact through three different
routes: (a) converting culturable/non-culturable land from
their present uses into quarries and thus, disturbing the
vegetation and ecosystem; (b) removing the limestone
from the soil and thereby affecting the moisture profile as
well as the structure of aquifers; and (c) creating air
pollution which could be hazardous for human as well as
animal health and for crop-yields. The third important
feature of the industry is that it generates limited direct
linkages in the regional economy where the industry is
located though, its indirect linkages are likely to be quite
significant. The indirect linkages mainly take place in the
form of (a) infrastructural development and provision of
basic amenities (i.e. roads, ports, schools, hospitals etc.
(b) development of irrigation (i.e. dams, canals etc.) and
(c) housing-construction - all having substantial income-
employment linkages at the level of national economy.
It is therefore important to examine the industry's growth
profile by focusing on the important questions such as:
What should be the optimum rate of exploration /
utilization of Limestone
What is the nature and magnitude of the
environmental impact at the projected rate of
growth?
How much would be the direct employment-income
linkages
within the region's economy livelihood of people.
Decontrol, Liberalization and Growth: Macro Trends:
In view of its vital importance for the national economy
the industry, for a very long time, was covered under the
Essential Commodities Act, and was subject to various
controls at the stages of mining/quarrying, acquisition of
land, production, distribution, prices etc.1 These controls
were necessary because of the supply-side constraints
like availability of investible funds, infrastructural
bottlenecks in terms of coal-power-wagons and cost-
effective technology that obtained during the initial
stages of industrialization.2 As a result, the industry till
about the early eighties was marked by the "shortage"
syndrome. The supply gap.
Growth of Cement Industry Over Five Year Plans in India
Plan End Year Capacity Production Target Achieve-
ment Growth Rate (%) in Achievement
Target Achieve-ment
Growth Rate (%) in Achieve-ment
II 1960-61 15 9.3 - 13 7.97 - III 1965-66 15 12 5.8 13 10.97 7.5 IV 1973-74 N.A. 19.76 9.6 18 14.66 4.2 V 1978-79 23.5 22.58 2.9 20.8 19.42 6.5 VI 1984-85 43 42 17.2 32.5 30.13 9.2 VII 1989-90 62 61.55 9.3 45 45.41 10.1 Annual 1990-91 N.A. 64.36 4.6 49 48.9 7.7 1991-92 N.A. 66.59 3.5 55 53.61 9.6 III 1994-95* N.A. 82.33 23.6 61.50 62.35 5.4
(Million tonnes)
Source: Cement Manufacturers' Association (1995), Basic Data: Indian Cement Industry, Updated 31.3.95, New Delhi
Various studies examining the industry's performance
have noted significant improvement in response to the
policies of decontrol/ liberalization. Table 1 presents a
trajectory of the growth of cement industry through the
various five-year plans. It is observed that the industry
had started growing fast since the Sixth Five Year Plan
i.e. immediately after the policy of partial decontrol in
1982. The growth process continued and got further
consolidated during the recent phase of economic
liberalization. It may however be noted that the initial
spurt of growth in the period was more significant
probably because of the long pending demand in the
market. In the process, the industry could also step into
the export-market in 1989-90 i.e. prior to the
liberalization phase. Thus by the turn of the eighties i.e.
within less than 10 years, the industry got shifted from
the status of a net-importer to a net-exporter.
In terms of regional spread, the industry has maximum
concentration in the western zone especially in Madhya
Pradesh. The state, having 18 major cement plants
constitute nearly one-fourth of the total capacity for
cement production in the country (Table 2). This is
followed by Rajasthan (15.4%), Andhra Pradesh (12.9%)
and Gujarat (11.1%). Over time, the southern zone has
lost in terms of the relative share while all the other
zones have gained; the major gainer however is
Rajasthan in the north zone
EMPLOYMENT LINKAGES
Cement industry is among the more capital-intensive
industries in India, especially, its capacity to generate
direct employment is quite limited. This is reflected in
the fact that whereas the industry contributes about 2.5
per cent in the total value added in the manufacturing
sector, its contribution to the sector's employment is only
about 1 per cent. The pattern holds both for all India as
well as for Gujarat (Table 6). At all India level, it requires
investment of about 4.75 lakes for employing one person
in the cement factory.
By 1991 the average number of persons engaged by the
large cement manufacturing unit was about 376, which is
higher than the average for all industries. In fact, the
actual employment might still be higher if we do not
consider the two major units, which have been closed
down in the state. However, taking an average of about
800 persons for the capacity of 1 mt. the future
employment for 25 mt. in Gujarat could be about 20,000.
This is almost equal to the number of household (i.e.
20,000) likely to be affected by the future growth of
cement industry in the state.
Apart from employment in the manufacturing unit, the
industry is also likely to generate substantial employment
in transportation and other related activities like quarries
and service sector etc. A crude estimate about the
transportation activity suggests that a plant of capacity of
1 mt. can produce 3125 tonnes per day for about 320
working days in a year. With an average loading capacity
of 10 tonnes, it would require 312 trucks per day.
Assuming that each truck employs 2.5 persons, the total
employment generation would be of the order of about
781 persons for 320 days per annum.
Besides this direct employment, the industry is likely to
have significant indirect employment linkages. It is
generally observed that production of 1 mt. of cement
gives employment to 1 lakh persons.1 This would mean
that with future expansion in Gujarat the industry may
generate employment for about 25 lakh persons. But this
employment may not necessarily be within the region or
even within the state.
ACC (ACC Limited) is India's foremost manufacturer of
cement and concrete. ACC's operations are spread
throughout the country with 14 modern cement factories,
more than 30 Ready mix concrete plants, 20 sales offices,
and several zonal offices. It has a workforce of about
10,000 persons and a countrywide distribution network of
over 9,000 dealers. ACC's research and development
facility has a unique track record of innovative research,
product development and specialized consultancy
services. Since its inception in 1936, the company has
been a trendsetter and important benchmark for the
cement industry in respect of its production, marketing
and personnel management processes. Its commitment
to environment-friendliness, its high ethical standards in
business dealings and its on-going efforts in community
welfare programmers’ have won it acclaim as a
responsible corporate citizen. ACC has made significant
contributions to the nation building process by way of
quality products, services and sharing its expertise.
In the 70 years of its existence, ACC has been a pioneer
in the manufacture of cement and concrete and a
trendsetter in many areas of cement and concrete
technology including improvements in raw material
utilization, process improvement, energy conservation
and development of high performance concretes.
ACC’s brand name is synonymous with cement and
enjoys a high level of equity in the Indian market. It
is the only cement company that figures in the list of
Consumer Super Brands of India.
The company's various businesses are supported by a
powerful, in-house research and technology backup
facility - the only one of its kind in the Indian cement
industry. This ensures not just consistency in product
quality but also continuous improvements in products,
processes, and application areas.
ACC has rich experience in mining, being the largest user of limestone, and it is also one of the
principal users of coal. As the largest cement producer in India, it is one of the biggest customers
of the Indian Railways, and the foremost user of the road transport network services for inward
and outward movement of materials and products.
H eritage - A Corporate Saga
Ours has been an interesting story – one that inspired a
book. ACC was formed in 1936 when ten existing cement
companies came together under one umbrella in a
historic merger – the country’s first notable merger at a
time when the term mergers and acquisitions was not
even coined. The history of ACC spans a wide canvas
beginning with the lonely struggle of its pioneer F E
Dinshaw and other Indian entrepreneurs like him who
founded the Indian cement industry. Their efforts to face
competition for survival in a small but aggressive market
mingled with the stirring of a country’s nationalist pride
that touched all lifestyles – including trade, commerce
and business.
The first success came in a move towards cooperation in the country’s young cement industry
and culminated in the historic merger of ten companies to form a cement giant. These companies
belonged to four prominent business groups – Tatas, Khataus, Killick Nixon and F E Dinshaw
groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man
recognized as the founder of ACC, died in January 1936. Just months before his dream could be
realized.
F. E. Dinshaw – the founder of ACC
ACC stands out as the most unique and successful
merger in Indian business history, in which the distinct
identities of the constituent companies were melded into
a new cohesive organization – one that has survived and
retained its position of leadership in industry. In a sense,
the formation of ACC represents a quest for the synergy
of good business practices, values and shared objectives.
The use of the plural in ACC’s full name, The Associated
Cement Companies Limited, itself indicates the
company’s origins from a merger. Many years later, some
stockbrokers in the country’s leading stock exchanges
still refer to this company simply as ‘The Merger’
ACC stands out as the most unique and successful
merger in Indian business history, in which the distinct
identities of the constituent companies were melded into
a new cohesive organization – one that has survived and
retained its position of leadership in industry. In a sense,
the formation of ACC represents a quest for the synergy
of good business practices, values and shared objectives.
The use of the plural in ACC’s full name, The Associated
Cement Companies
Limited, itself
indicates the
company’s origins from a merger. Many years later, some
stockbrokers in the country’s leading stock exchanges
still refer to this company simply as ‘The Merger’.
ACC's First Board Meeting in 1936 at The Esplanade
Sir Nowroji B Saklatvala was the first chairman of ACC.
The first Board included distinguished luminaries of the
Indian business world of the time – names like J R D Tata,
Ambalal Sarabhai, Walchand Hirachand, Dharamsey
Khatau, Sir Akbar Hydari, Nawab Salar Jung Bahadur and
Sir Homy Mody among others.
A Strategic Alliance
The house of Tata was intimately associated with the
heritage and history of ACC, right from its formation in
1936 up to 2000. Between the years 1999 and 2000, the
Tata group sold all 14.45 per cent of its shareholding in
ACC in three stages to subsidiary companies of Gujarat
Ambuja Cements Ltd (GACL), who are now the largest
single shareholder in ACC. This has enabled ACC to enter
into a strategic alliance with GACL, a company reputed
for its brand image and cost leadership in the cement
industry.
Holcim - A New Partnership
A new association was forged between ACC and the
Holmic group of Switzerland in 2005. In January 2005,
Holcim announced its plans to enter into a long-term
strategic alliance with the Ambuja Group by acquiring a
majority stake in Ambuja Cements India Ltd. (ACIL), which
at the time held 13.8 per cent of the total equity shares in
ACC. Holcim simultaneously announced its bid to make
an open offer to ACC shareholders, through Holcomb
Cement Pvt Limited and ACIL, to acquire a majority
shareholding in ACC. An open offer was made by
Holdcem Cement Pvt. Limited along with Ambuja
Cements India Ltd. (ACIL), following which the
shareholding of ACIL increased to 34.69 per cent of the
Equity share capital of ACC. Consequently, ACIL has filed
declarations indicating their shareholding and declaring
itself as a Promoter of ACC.
Holcim is the world leader in cement as well as being
large suppliers of concrete, aggregates and certain
construction-related services. Holcim is also a respected
name in information technology and research and
development. The group has its headquarters in
Switzerland with worldwide operations spread across
more than 70 countries. Considering the formidable
global presence of Holcim and its excellent reputation,
the Board of ACC has welcomed this new association.
METHODOLOGY
Statement of The Problem
The achievements of marketing objectives are twofold ie, consumer satisfaction and profitable sale. Customer satisfaction is gained and it greatly depends upon the manner in which the marketing functions are organized.
Demand in Tea Industry is hence considered as an important one. The penetration of other companies into the market is the main problem faced by the company due to which considerable less market share appears .Conducting a market research and collecting dealers opinion regarding the quality, pricing, servicing and the margin provided by the company is also equally important.
Objectives of Study
1. To find out the presence of ACC Cement in the town of Chaibasa District
2. To find out the dealer’s opinion about certain aspects ACC Cement such as pricing, Quality, Servicing and margin provided by the company.
3. To analyze competitors stagey
Scope of The Study
The study has been conducted to find out the
market share of ACC cement and to collect the dealer’s
opinion regarding its quality, servicing and margin
provided by the company in the town of Chaibasa District.
Analyzing the survey data, and there by giving
the best possible suggestions as solutions to the
problems faced by the company.
Need For The Study
The need for the study was felt due to the fact there
was a decline in the market share of ACC Cement in
Chaibasa District. The research work also acted as a
source to find out the competitors present market
situations and ACC dealer’s psychology regarding the
ACC Cement.
Period of Study
The survey was conducted as a part of the
curriculum of PGDBM program me and the survey was
conducted for the period of 60 days.
The first two one week I spent at Jhikpani at
production centre of ACC Cement Limited in order to get
more details regarding the production and packaging and
other details about the company. The next 6 weeks was
utilized for carrying out the survey in Chaibasa District.
Universe of Study
The study has been carried out at ACC Cement
Limited, Chaibasa. And the market survey has been
carried out at all town of Chaibasa District and they had
been classified under 5major regions.
Sources Of Information
The dealers and the sub dealers were the major
sources of information for the primary data.
The secondary data was collected from the annual
report and net and other records maintained by the
company.
The above-received data (primary and secondary)
forms the basis for entire analysis.
Research Design
The survey was conducted in 3 major regions of
Chaibasa District and a total of about 150 respondents
were collected. The information given by they were the
backbone behind the research work.
Tools For Collection Of Information
The primary data was collected by means of
questionnaire, interview and schedule method for getting
information from the respondents a detailed
questionnaire has been prepared and by interview and
schedule method and necessary information was
collected. Forms the primary data.
Tool for Data Analysis
Tools for data analysis includes simple arithmetic
calculations like averages, percentages, charts, graphs
etc.
Limitations Of The Study
1. This study is mainly focused on Chaibasa district only
and it cannot be taken for granted as the situation
for the other districts in Jharkhand.
2. It has its own uniqueness in certain aspects as far as
ACC Cement is concerned.
3. Some or the respondents were reluctant to give
some information
4. Secondary report is taken from annual report and
broacher of the company and internet
ACC PLANTS IN INDIA
Name of the Company
Location
StateProcess
Used
ACC Ltd. GagalHimachal Pradesh
Dry
ACC Ltd. (G) TikariaUttar
PradeshGrinding
Unit
ACC Ltd. Lakheri Rajasthan Dry
ACC Ltd. KymoreMadhya Pradesh
Dry
ACC Ltd.Chaiba
saJharkhand Dry
ACC Ltd. Sindri JharkhandGrinding
Unit
ACC Ltd. Jamul ChhattisgarhDry and
Semi-Dry
ACC Ltd. Chanda Maharashtra Dry
ACC Ltd. Wadi Karnataka Dry
ACC Ltd. - New Wadi Karnataka Dry
ACC Ltd.Macher
ialAndhra Pradesh
ACC Limited, or ACC as it is popularly known, is India’s foremost manufacturer of cement. Formerly called The Associated Cement Companies Limited, ACC’s corporate office is located in Mumbai.
HISTORY
MarketThe Indian cement industry dates back to 1914 when the
first unit with a capacity of 1000 tonnes was established
in Porbandar.Today, India is ranked second in the world
with an installed capacity of nearly 154 million tonnes
and turnover estimated at about US$ 4.5 billion
(Rs.20,250 crore).While per capita consumption of about
95 kilograms as against a world standard of nearly 260
kilograms appears small thedemand drivers are all there.
Growth in the housing sector, the establishment of a
central road fund for national highways and bridges and
increasing rural demand are all expected to push the
industry’s growth to more than 10% per year. (Source:
indiamarkets.com) About 60 major companies and some
300 mini cement plants form the backbone of the
industry. In this scenario ACC stands tall as India’s first
name in cement and concrete. ACC has an installed
capacity of 20 million tonnes per annum and a market
share of 13%. This makes it the highest selling brand in
India.The company’s operations is spread throughout the
country. Newly reorganized into three regional profit
centers, the company operates fourteen modern cement
factories, fifteen ready mix concrete plants, a bulk
cement handling terminal, nineteen sales units and 54
zonal offices. It has a workforce of 8900 persons. The
company’s countrywide supply chain is an enviable
marketing and
distribution
network that
comprises 194
warehouses,
more than
9,000 dealers
and 50,000
retail outlets.
The establishment of ACC is an Indian corporate saga
that inspired the writing of a whole book. The company
was formed in 1936. when ten existing cement
manufacturers came together under one umbrella – the
country’s first notable merger, at a time when the term
mergers and acquisitions was not even coined. The
history of ACC spans a wide canvas beginning with the
struggle of its pioneer F E Dinshawand other Indian
entrepreneurs of the cement industry. Their efforts to
face competition for survival in a small but aggressive
market mingled with the stirring of a country’s nationalist
pride that touched all walks of life– including trade,
commerce and business. The founding companies
belonged to four prominent business groups – Tatas,
Khataus, Killick Nixon and F E Dinshaw. ACC was formally
established on August 1, 1936. Sir Nowroji B Saklatvala
was the first chairman.The new company had four
managing directors, one from each constituent group. Its
first Board included distinguished luminaries of the Indian
business world of the time – J R D Tata, Ambalal
Sarabhai,Walchand Hirachand, Dharamsey Khatau, Sir
Akbar Hydari, Nawab Salar Jung Bahadur and Sir Homy
Mody. The elaborate teakwood panelled board room in
Cement House, with its enormous teakwood table, bears
eloquent testimony to this heritage. Today the company
is part of the Holcim group of Switzerland, which is the
world leader in cement, concrete and aggregates. ACC
changed its name from its original The Associated
Cement Companies Limited, to simply ACC Limited on
September 1, 2006.
Product
The company manufactures Portland cements for general
construction while blended products include fly ash and
slag based cements. Both these varieties of cement are
acknowledged for their high quality with special
properties that offer durability and resistance to
aggressive environments. In addition to conserving
valuable mineral resources and reducing waste, the
production of these blended cements helps reduce the
emission of carbon dioxide. ACC set up India’s first facility
for distribution of cement in bulk in 1956, but most
cement in India is still sold in bags of 50 kilograms. The
company introduced cement in 25 kilograms as also
jumbo bags.
Brand Values
Having enjoyed the status as the leading brand in cement
for more than six decades, the name ACC is synonymous
with and almost generic to the cement category. The
brand is preferred because it offers customers an
assurance of top quality that is easily demonstrated
through long lasting structures. Other products and
services of ACC, such as ACC Concrete are also
associated with the same qualities of proven expertise,
reliable performance and durability. But more than its
products, ACC stands out as a brand name that denotes
trust and dependability. Employees, dealers, suppliers
and associates share a strong bond with the company
and a sense of togetherness with all stakeholders. The
brand promise is essentially of a strong, caring and
supportive partner characterized by the integrity and
leadership qualities of its people. The company has just
unveiled a new corporate identity that includes a
refurbished new logo. It is designed to be simple yet
more colorful and vibrant and aimed to convey more
dynamic and contemporary look
PROCESS OF MAKING ACC LIMITED
Raw Materials
The main raw materials used in the cement
manufacturing process are limestone, sand, shale, clay,
and iron ore. The main material, limestone, is usually
mined on site while the other minor materials may be
mined either on site or in nearby quarries. Another source
of raw materials is industrial by-products. The use of by-
product materials to replace natural raw materials is a
key element in achieving sustainable development.
Raw Material Preparation
Mining of limestone requires the use of drilling and
blasting techniques. The blasting techniques use the
latest technology to insure vibration, dust, and noise
emissions are kept at a minimum. Blasting produces
materials in a wide range of sizes from approximately 1.5
meters in diameter to small particles less than a few
millimeters in diameter.
Material is loaded at the blasting face into trucks for
transportation to the crushing plant. Through a series of
crushers and screens, the limestone is reduced to a size
less than 100 mm and stored until required.
Depending on size, the minor materials (sand, shale,
clay, and iron ore) may or may not be crushed before
being stored in separate areas until required.
Raw Grinding
In the wet process, each raw material is proportioned
to meet a desired chemical composition and fed to a
rotating ball mill with water. The raw materials are
ground to a size where the majority of the materials are
less than 75 microns. Materials exiting the mill are called
"slurry" and have flow ability characteristics. This slurry is
pumped to blending tanks and homogenized to insure the
chemical composition of the slurry is correct. Following
the homogenization process, the slurry is stored in tanks
until required.
In the dry process, each raw material is proportioned
to meet a desired chemical composition and fed to either
a rotating ball mill or vertical roller mill. The raw materials
are dried with waste process gases and ground to a size
where the majority of the materials are less than 75
microns. The dry materials exiting either type of mill are
called "kiln feed". The kiln feed is pneumatically blended
to insure the chemical composition of the kiln feed is well
homogenized and then stored in silos until required.
Preprocessing
Whether the process is wet or dry, the same
chemical reactions take place. Basic chemical reactions
are evaporating all moisture, calcining the limestone to
produce free calcium oxide, and reacting the calcium
oxide with the minor materials (sand, shale, clay, and
iron). This results in a final black, nodular product known
as "clinker" which has the desired hydraulic properties.
In the wet process, the slurry is fed to a rotary kiln,
which can be from 3.0 m to 5.0 m in diameter and from
120.0 m to 165.0 m in length. The rotary kiln is made of
steel and lined with special refractory materials to protect
it from the high process temperatures. Process
temperatures can reach as high as 1450oC during the
clinker making process.
In the dry process, kiln feed is fed to a preheated
tower, which can be as high as 150.0 meters. Material
from the preheated tower is discharged to a rotary kiln
with can have the same diameter as a wet process kiln
but the length is much shorter at approximately 45.0 m.
The preheated tower and rotary kiln are made of steel
and lined with special refractory materials to protect it
from the high process temperatures.
Regardless of the process, the rotary kiln is fired with
an intense flame, produced by burning coal, coke, oil, gas
or waste fuels. Preheated towers can be equipped with
firing as well.
The rotary kiln discharges the red-hot clinker under
the intense flame into a clinker cooler. The clinker cooler
recovers heat from the clinker and returns the heat to the
preprocessing system thus reducing fuel consumption
and improving energy efficiency. Clinker leaving the
clinker cooler is at a temperature conducive to being
handled on standard conveying equipment.
Finish Grinding and Distribution
The black, nodular clinker is stored on site in silos or
clinker domes until needed for cement production.
Clinker, gypsum, and other process additions are ground
together in ball mills to form the final cement products.
Fineness of the final products, amount of gypsum added,
and the amount of process additions added are all varied
to develop a desired performance in each of the final
cement products.
Each cement product is stored in an individual bulk
silo until needed by the customer. Bulk cement can be
distributed in bulk by truck, rail, or water depending on
the customer's needs. Cement can also be packaged with
or without color addition and distributed by truck or
REVIEW OF LITERATURE
Market Share Analysis
Market share analysis is another useful marketing control tool. However, if it is not handled properly and interpreted correctly, it can throw up highly misleading information. It becomes an effective control to only when it needs the following preconditions it is accurately measured , it is measured both at macro and micro levels ; the comparisons of targeted and actual market shares are also made both at macro and micro levels, and the comparisons are made over reasonably long spell of time.
Before a firm attempts a market share based evaluation and control, it must have clarity on whether it is consciously seeking definite share of the market .It is implied in any market share evaluation that the marketing performance will be assessed based on the market share. It is also implied that a definite minimum shares of the market is the real aim of the firm .Otherwise, the evaluation becomes a purely theoretical exercise and loses its control potential.
Market share analysis can be utilized for evaluating the market performance of a firm; for setting targets for the firm and for developing long-term sale forecast for the firm.
Market share has to be measured on rational grounds. Comparisons may be made with the most efficient firms in the industry, or the Industry leader, or a group of growing firms. Comparisons can be made against industry average performance. Whatever be the criteria of comparison, the general economic conditions, which have a bearing on the industries performance, have to be five due weight age .Quite often the market share of a firm may go up substantially without any effort on the part of its marketing department the increase may be due to environmental factors. Unless these dimensions are understood in the proper respective, market share analysis will give the wrong interpretation. So it is essential to use market share analysis in an intelligent and objective manner. It is also essential to understand ones production boundaries correctly to make share analysis purposeful. Shares can be worked out a product sub-category level. Product category level, national level and regional level. Each measurement has its own use and implications.
The scope Of marketing research
Marketing research departments have been steadily expanding their activities and techniques. The eight most common activities, in order of importance, are determination of market characteristics, development of market potentials. Market shares analysis, sales analysis, competitive – product studies, of business trends .Less than half of the firms do their own
advertising research or carry out any marketing operations research.
These studies have benefited over the year from increasingly sophisticated technique. Many techniques were developed outside of marketing by researches in economic, statistics, sociology, social psychology, and psychology. They were drawn in and amended by marketing researcher who recognized opportunities for their use. Many of them such as questionnaire construction and area sampling come long naturally and were quick and widely accepted as belonging in the corpus of marketing research practices .others such as motivation research and mathematical methods came in uneasily, with prolonged and heated debates among practitioners over their practical usefulness. But they , too, settled in the corpus of marketing research methodology or at least the parts that stood the test of time.
Organization of marketing research departments.
The size and reporting arrangements of marketing research departments vary tremendously among industries and companies. Each the name of the departments varies from “marketing research department” to “market
research department” commercial research and business research.”
In smaller companies, marketing research departments consist of a few professional researchers and clerical assistants. In larger companies, the departments may contain one or two dozens full-time employees. A few companies have very large staffs. For example, proctor & gamble, has a field staff of over 120 trained analysts testing and checking its products. Generally, the largest research departments are found in the larger advertising agencies, where the media number is 33 employees. Large consumer and industrial companies average 10 employees the number of full time employees does not necessarily reflect the volume of work because of varying company ratios of inside to outside work. The employees within the firm do not generally carry out field work but rather advise management on needed research , research design, and proper interpretation of information.
Management’s use of marketing research
The growth in the number of marketing research departments suggested extremely rapid acceptance of marketing research by American Business. Yet this
impression must be qualified. About 45 percent of the responding companies reported no formal marketing research department. Furthermore, companies reported no formal marketing research department. Furthermore, companies with departments often operated with very small budget.” The typical corporations’ investments in marketing research are minimal … and it indicates reluctance within industry to invest in research dealing with people, markets and marketing to the extent that would seem to be called for by corporations that espouse the so called modern marketing concept.
Market – share Analysis
Many management look for the true measure of their success not in absolute sales performance but in their sales performance relative to competitors the key statistic in this connection is their market share.
There are at least two reasons for managements interest in market share measurement for appraising performance .In this first place , it suggest whether changes in company sales were due to uncontrollable outside forces or weakness in the company’s marketing program. If a company’s sales fall but its market share remains constant, this implies that the whole industry was affected by similar environmental forces. In the second place, the market share standard implies a comparison of the company’s performance with the average performance of the other companies in the industry rather than with the performance of the best companies .If management could not maintain its share of the market , the implication is that the companies marketing mix or its execution is seriously at fault.
Market share measurement is a useful tool because these two assumptions have some validity. But several qualifications should be kept in mind to avoid drawing the wrong conclusions from market share measurements.
The assumptions that outside forces affect all companies in the same way often not true.
The surgeon general report on the harmful consequences of cigarette smoking caused total cigarette sales to falter but not quality for all companies. The companies that had established a reputation for better filter were hit less hard.
The assumption that a company’s should be judged against the average performance of all companies also in not always valid. A company with greater than average opportunities should register a growing market share if its market share remains constant this imply deficient rather than average management.
If a new form enters the industry, then existing firm’s market share may fall. Here in case share a fall in the company is performing below the average of the industry.
Sometimes the decline in the company’s market share is the result of a deliberate policy to improve profits. Management, for example may drop unprofitable customers or products with resulting decline in market share.
Market share fluctuates for many reasons. For example, the market share in a particular period can be affecting by whether a large sale is made on the last day of the period or at the beginning of the following period. A Current shift in market share does not always have significant marketing implications.
Market share analysis like sales analysis, increase in value when the data are disaggregated along various dimensions .If the data are available, the company might watch the progress of its market share by product line, customer type , region , or other breakdowns.
International Harvesters truck sales is Los Angeles metropolitan areas registered an absolute measures between 1952 and 1953. An analysis of their market share, however shown a steady decline .Apparently total truck sales in Los Angles were growing faster than Harvesters sale. This led the company to consider whether it was handicapped by too for sales braches in the Los Angeles are relative to its competitors.
A company would also want to note the market share trends of individual competitors. It will want to know which companies are gaining and losing customers, and from what other companies these against and losses are coming .It will want especially to note the trend in the market share of its closest rival , if the rivals share is growing relatively faster, then the company will want to remain its basic marketing strategy.
The fundamental theorem of market- share determination. We left answered the questions of what the company’s market share should normally be at the light of its competitive marketing offering.t
The most popular theory is that the market shares of various competitors will be proportional to their
marketing – effort shares. This normal expectation can be called the fundamental theorem of market –share determination and is symbolically expressed in questions. If a firm is not enjoying a normal market share, how can it be explained? At least four different hypotheses can be advanced. The existence of differences in marketing helps to explain why market shares may suddenly rise for particular companies when no changes have occurred in their relative marketing expenditures. This can happen when a firm develops better advertising platforms or finds more effective advertising media. Usually the qualitative and quantities effects of marketing and the matter is further complicated by the probable increase in advertising by competitors. Nevertheless, when market shares finally stabilizes, it will be clear whether the firm performs at average or greater than average effectiveness in spending marketing funds.
Market effectiveness should be generalized to include qualitative advances enjoyed by the firm that are not directly related to the qualitative advantages enjoyed by the firm that are not directly related to the quality of the good current marketing expenditures . For example, the firm may be located on a superior site, and this can give it a long-term advantage over competition .Or the firm may enjoy an unusual among of good will stemming from the personality of the founder that causes better sales than could be expected simply based on share- of – marketing expenditures. In general where market shares
and effort shares diverge for a substantial period of time, the analyst might search for the cause in qualitative advantages of cement firm over competition.
2. Random – Factors Hypothesis
The random factors hypothesis holds that in any
particulars period the respective shares may diverge from
the it’s normal value because of weather, loss or gain of
few important customers, inventory stock outs, and so
on. Therefore, management must be careful in
interpreting and responding to current market- share
changes a 2 percent decline in market share may reflect
normal variations is brand loyalty or point to a real
decline in the company’s marketing effectiveness . If
there is no evidence of the latter management might wait
to see what happens to market share in the next period.
Market share may rise again, indicating normal
fluctuations, or it may fall again, indicating the some
systematic factor may be at work. Any changes in market
share should be judged against the known variance of
market share changes, and if the change appears to be a
rare event in probability terms, immediate action may be
called for.
3. Lagged – Adjustment Hypothesis
A third interpretation of a discrepancy between current market shares and marketing effort shares is that the difference is temporary and in time will diminish and disappear. For example, a Nielsen study on new- shares for a new product must initially spend approximately 20 percent of total industry marketing expenditure .obviously this excessive level or marketing expenditure is only temporary in order to enable the firm to break into the market .After getting of its 10 percent share of market the firm can slowly bring down its percent of total marketing expenditures without losing its 10 percent market share . or if it continues to spend 20 percent of the market ; otherwise something is wrong is wrong with its product or marketing effectiveness.
4. NONLINEAR MARKET-SHARE HYPOTHESIS:
The preceding three hypotheses all accept the fundamental theorem of market share determination and provide reason for observed divergences. It is conceivable that the theorem does not hold and that increased marketing effort first produces increasing and they decreasing returns in the way of market share. This was the conclusion drawn.
RELATIONSHIP BETWEEN MARKETING INFORMATION SYSTEM AND MARKETING RESEARCH.
Marketing research may be defined as the through and objective gathering and analysis of data that pertain to a given problem in marketing.
SCOPE OF MARKETING RESEARCH ACTIVITIES.
For about 60 years, there has been a steady growth in marketing research departments, reflecting management’s recognition of the importance of this activity. In a broad based study sponsored by the American Marketing Association 77 percent of the responding companies reported having a formal marketing research department.
PROCEDURE IN MARKETING RESEARCH
1. DEFINE THE OBJECTIVE
Research should have a clean idea of what they are trying to accomplish in a research project – that is, what is the goal of the project .Usually the objective is to solve a problem, but this is not always so. Often the purpose is to define the problem, or to determine whether the firm even has a problem. To illustrate a manufacturer of commercial air- conditioning equipment had been enjoying a steady increase in sales volume over a period of years. Management decided to make a sales analysis. This research project uncovered the fact that although the company’s volume had been increasing. Its share of the market had declined. In this instance, marketing research uncovered a problem that management did not know existed.
2. CONDUCT SITUATION ANALYSIS
The situation analysis involves obtaining information about the company and its business environment by means of library research and extensive interviewing of company officials. The researchers try to get a “feel” for the situation surrounding the problem. They analyze the company. Its market its, competition, and the industry in general. In the photo accessory, case the researchers studied, several trade magazine articles in the library and held extensive discussions with company executives and workers.
In the situation analysis, the researchers also try to define problem more clearly and to develop hypotheses for further testing. In a research project, a hypothesis is a tentative supposition or a possible solution to a problem. It a well- run project, each hypothesis should be prove or disproved on the way to fulfilling the projects objectives.
3 & 4. CONDUCT INFORMAL INVESTIGATION
Having gotten a feel for the problem, the researchers are now ready to conduct an informal investigation to some extent this step overlaps the preceding one, which involves getting background information investigation consists of talking to people outside the company intermediaries, competitors, advertising agencies, and customers.
5. PLAN AND CONDUCT FORMAL INVESTIGATION
If the informal investigation has shown that the project in economically feasible. Management then determines what additional information is needed. The next step for the researcher is to plan where and how to get the desire data.
ANALYSIS AND INTERPRETATION OF DATA
The importance of market share analysis for any industrial concern need not be over –emphasized. The existence of adequate demand can make substantial difference between the success and failure of an enterprise. It is important for the management to pay particular attention to the planning of the target market. This chapter analysis the available data to find out the presence and estimate the market share of ACC cement in selected town of chaibasa district.
Chaibasa is unique in every aspect compared to other district of Jharkhand. It has got its own specialties’ .It is one of the oldest district headquarter in Jharkhand.
Another characteristics features of the district is that it has many mines, rich iron ore. One of the largest cement production unit of acc cement at jhinkpani .There are several mines in it which provide raw material to the big giant industries like TATA STEEL, RUNGTA MINES , ACC CEMENT and many more small companies. A good share of ACC cement production is contributed by chaibasa district. It provide large number of employments to the people of this place.
The towns which comes under chaibasa district are as follows :
Region 1 - Chaibasa Town
Region 2 Chakradharpur
Region 3 Sonua
Region 4 khutpani
Region 5 Jhinkpani
The demand for various brands of cement in
Chaibasa Town
Dealer’s Opinion about Chaibasa Town
Market Servicing
The opinion of the respondents regarding servicing are as follows
Table 4.1
No. Of Respondents
%
Regular by ACC CEMENT
39 96.67
Irregular
01
03.33
96.67 % of the respondents told that they were getting regular servicing from
M/S Lalit Sharma
Who is the wholesale distributor of the company for the region.
Pricing
Respondent’s opinion regarding pricing of the ACC Cement
Is as follows.
Table 4.2
No of Respondents %
High
16 40
Acceptable 24
60
Above 40% of them told that the pricing of the ACC Cement is
On the higher side. In addition, 60% of them admitted that it is only
Acceptable.
Product (Quality)
Dealer’s opinion about the quality of the cement is as
Following
Table 4.3
Quality
No of Respondents %
Average 4 10
Good
8 20
Excellent
28
70
Margin
Table 4.4
No of Respondents %
Adequate 05
13.33
Inadequate
35 86.67
In the case of margin most of them have a clear-cut idea about the
margin they are getting 86% of them are not satisfied with the
margin they are getting. According to them, it is inadequate. 13.33%
told that it is adequate.
Rating of the following brands on a scale of 1-6 according to customer
Preference of brands 1 being the highest.
ACC LAFARGE UTCL AMBUJA OCL BIRLA GOLD
RATING 1 2 3 4 5 6
REASON: ACC being the best quality in cement & More demand
Rating the following brands of cement on a scale of 1-6 according to
Retailer preference of brands 1 being the highest
ACC
LAFARGE UTCL AMBUJA OCL BIRLA GOLD
RATING
1 2 4 6 3 5
REASON: Customer demand most and superior quality than others.
In the case of margin most of them have a clear cut idea
About the margin they are getting . 86.6% of them are not
Satisfied with the margin they are getting . According to them it
Is inadequate. 13.33% told that it is adequate.
Region 2- Chakradharpur
1. Chakradharpur.
Chakradharpur is the second major town in the chaibasa district which is famous for railway divisional headquarter. It has railway link with most of the important cities.
The area is surrounded with mountains and it has lush green valley. It is a developing place so more and more amount of new buildings are being constructed so demand is more here and due to less supply of the cement they are facing problems .The less supply has increased the competition and other brands of cement Are being pitched so it is affecting the sale of the company.
The company which has utilized the potential of Chakradharpur market to fullest extend is ACC cement. They Are enjoying the benefit of a reasonably good market share here.
Brand
Share Market of different brands in Chakradharpur Town
From the diagram, it is clear that ACC cement is a well ahead in selling
Their premium cement. They are selling 55% of the cement in the area.
whereas Lafarge, UTCL and other cements brands are just 45% market
demand in those areas.
Dealers Opinion About the ACC cement
Servicing
The opinion of the respondents regarding the distribution of
ACC cement is shown below.
No. Of Respondents
%
Regular by ACC 17 70
Irregular 03 10
Not Selling Lafarge
05 20
Pricing
The opinion of respondents regarding pricing of ACC
Cement is as follows.
No Of Respondents %
Acceptable 14 56.67
High
06 23.67
Not selling ACC 05 20
56.67% have the opinion that the price of the ACC cement is
Acceptable. 23.67 % feel that the price for the Acc cement is
High . 20% of the shops are not even selling the ACC
cement.
Product ( quality)
The opinion of dealers about the quality of ACC cement
Is as follows.
NO. OF RESPONDENTS
%
AVERAGE 0 0
EXCELLENT 16 63.33
GOOD 04 16.67
NOT SELLING ACC 05
20
63.33 % of them have the opinion that the ACC cement has excellent quality
. 16.67 %
Told that it has got good quality. Nobody was there to say that it has just
average quality .
20% of them are not selling ACC cement because of less supply of the cement.
Margin
The opinion of dealers about the margin provided by
ACC cement limited is shown below.
No Of Respondents %
Adequate 2 6.67
Inadequate 20 73.33
Not selling ACC cement
3 20
73.33% of them have complained that the margin provided by the
Company is not sufficient ie, it is inadequate. 6.67 % of them have the
Opinion that the current margin provided by the company is adequate.
20% of the dealers are not selling ACC cement.
Rating of the following brands on a scale of 1-6 according to customer
Preference of brands 1 being the highest.
ACC LAFARGE
UTCL AMBUJA
OCL BIRLA GOLD
RATING
1 2 6 4 5 3
REASON: Being the best quality cement.
Rating the following brands of cement on a scale of 1-6 according to
Retailer preference of brands 1 being the highest
ACC
LAFARGE UTCL AMBUJA OCL BIRLA GOLD
RATING
1 2 4 6 3 5
REASON: Customer demand most and superior quality than others
REGION 3. SONUA
Sonua is also a small town in Chaibasa district.
Here people are mostly very poor and there is small market
Clustered at a point. There are only three cement shops one
Of them are main dealer of ACC and other two are sub dealer of
ACC so it has very good hold of the market there. There are able
To sell maximum acc cement in that area. In main dealer sell
80-85 t of cement in a month.
View of the Dealer regarding the pricing Dealer’s Opinion about ACC cement
Servicing
No Of Respondents
%
Regular by ACC 5 66.67
Irregular
3 33.33
ACC According provides regular servicing to 66.67 % of
The dealers 33.33 say that he is irregular in giving them servicing.
of ACC cement.
Pricing
No. Of Respondents %
High 6 77.77
Acceptable 2 22.22
77.77 % of the respondents told that the pricing of the
ACC cement is high.
22.22 % of the respondents viewed it as acceptable.
Quality
No. Of Respondents %
Average 1 10.00
Good 2 30.00
Excellent 5 60.00
Opinion Regarding margin
No Of Respondents %
Adequate 0 0
Inadequate
9 100
100 % of the respondents told that the margin provided to them is
Inadequate. There was no body to say that it is adequate. The margin is
Only rs 5 to even in summer they told they sell it at the cost price only.
Rating of the following brands on a scale of 1-6 according to customer
Preference of brands 1 being the highest.
ACC LAFARGE UTCL AMBUJA OCL BIRLA
GOLD
RATING
1 2 6 3 5 4
REASON: Being the best quality cement.
Rating the following brands of cement on a scale of 1-6 according to
Retailer preference of brands 1 being the highest
ACC
LAFARGE UTCL AMBUJA OCL BIRLA GOLD
RATING
1 2 5 6 3 4
REASON: Customer demand most and superior quality than others
Khuntpani is a block of the chaibasa district. It is also an underdeveloped place
People over here Are poor. It is on the developing stage so new building is being
Constructed and new schools Roads are being under construction so demand for
Cement is increasing day by day and here Also ACC is only considered as the best
Cement and used for construction.
It is also surrounded by the mountain and lot of people work for making the
Stones goods and Leaves and trees.
REGION 4 KHUTPANI
Dealers Opinion About the ACC cement
Servicing
The opinion of the respondents regarding the distribution of
ACC cement is shown below.
No. Of Respondents
%
Regular by ACC 9
70
Irregular 2 10
Not Selling Lafarge
3 20
Rating of the following brands on a scale of 1-6 according to customer
Preference of brands 1 being the highest.
ACC LAFARGE
UTCL AMBUJA
OCL BIRLA GOLD
RATING
1 5 6 4 2 3
REASON: Being the best quality cement.
Rating the following brands of cement on a scale of 1-6 according to
Retailer preference of brands 1 being the highest
ACC
LAFARGE UTCL AMBUJA OCL BIRLA GOLD
RATING
1 2 4 6 3 5
REASON: Customer demand most and superior quality than others
FINDINGS
AND
SUGGESTIONS
FINDINGS AND SUGGESTIONS
FINDINGS
The objective of the study was to find out the market share and dealers opinion about ACC cement in selected town of chaibasa district. The study was based on data collected from the dealers and their opinion regarding the product.
All the objectives of the study were analyzed by using simple mathematical calculation such as percentages, simple averages etc. this chapter is an attempt to summarize the findings of the study based or which a few suggestions have been made.
REGION 1- CHAIBASA TOWN
Since chaibasa is a big town it has got a good market for the acc cement. the acc cement is costlier than the other brands .the quality of the cement is superior than the other competitor brands so it has great demand in these area. Here 96.67 % of the people are regular with acc cement.
They are the market leader. The scope to influence the customers, acc cement is a leading in that area. It is
because of their strategic planning and sales
promotinoary measures.
REGION 2- Chakradharpur
Chakradharpur being the second major town in chaibasa district has a reasonably good market share for cement. The sale of the acc cement is quite high than any other brands it the area. And the market share are 76 % . Having understood the nature of the market, acc is dominating the market through sales promotionary measures to both dealers and customers. It started distributing the nearby small towns also, where acc cement is yet to have a look into, which is a success , shows the survey details.
REGION 3- SONUA
At Sonua apart from having underdeveloped place and all the de motivating factors acc has managed to be the market leader .
ACC supplier are not able to meet the demand of the dealers there and providing adequate supply of the cement in that area else it will yield more sale in that
place and they are bound to replace the acc cement with other brand in case of lack of supply of the acc cement.
And the dealers will show their interest in selling the acc cement if they get a regular supply.
AND THE REGION 4 & 5 MARKET IS FULLY IN HANDS OF ACC
CEMENT ONLY . THEY ARE THE MARKET LEDER IN THESE AREAS
ALSO. THEY ARE ABLE TO SELL THE MAXIMUM AMOUNT OF
CEMENT LEAVING BEHIND THE OTHER COMPETITORS IN THOSE
AREAS . DUE TO LACK OF ADEQUATE SUPPLY THERE IS SOME
PROBLEM ELSE NO ONE CAN COMPETE THEM IN THESE AREAS IN
ORDER OF SELL AND THE QUALITY OF CEMENT.
COMPETITORS STRATEGY
The immediate competitor is Lafarge some of their strategies capture the market share is noted below.
1. Extensive advertising progamme.
They have given much importance to advertisement through the media, such as TV, Newspaper, Movie halls and so on.
By way of adopting frequently publicity methods, ACC Cement is able to make up the minds of the common consumers with the knowledge of the availability of the brands constantly.
2. Sales promotionary measures
After creating a favorable impression in the minds of the people they induce them to buy their product by adopting sales promotionary measures.
a)LOW PRICE
The price of Lafarge is some places lower than the leading brand acc cement.
b)Gift schemes and coupons
By introducing certain gift schemes such as giving free trip to goa, manali with family and other such free incentives also attract the dealers and it increases the sale of the product fairly well.
c) Beside customers, dealers also get benefited if Lafarge is marketed.
d)Dealers are getting high margin compared to the margin provided by the other companies.
Dealers opinion about the acc cement in ChaibasaDistrict as a whole are as follows
1.Servicing
77.78% of the Dealers are of the opinion that the servicing provided by the company is regular. 15.55 % says it is irregular. 6.66 % of the Dealers are not selling ACC.
2.Pricing
58.15 % of them are saying that it is high and 35.18 % says it is only acceptable 6.66% are not selling ACC.
3.Quality
70% says its excellent in quality while 20% says that it is good. And 10 % are not selling it and nobody told that it is worst in quality.
4.Margin
86. 67% says it is inadequate while 6.67 % says it is adequate and .6.67 % are not selling ACC.
Dealers opinion about Servicing in CHAIBASA DISTRICT
Dealers Opinion about pricing in CHAIBASA DISTRICT
Dealers opinion about Quality in CHAIBASA DISTRICT
Dealers opinion about Margin in CHAIBASA DISTRICT
SUGGESTIONS AND RECOMMENDATIONS
From the data analyzed the following suggestions and recommendations are given.
1.Increase the margin paid to the dealers so that they will get motivated to sell it.
2.Otherwise, to introduce gift schemes or prizes for dealers to regain their interest in selling acc cement.
The dealers’ complaint was that they receive less commission on selling ACC cement. Hence to motivate them steps must to taken to increase the margin paid to them or introduce some gift seems to dealer.
3.To Supply adequate cement to the dealers on time .
The dealers’ complaint was that they receive less supply cement According to their demand , if they get ample amount than the sell of the acc cement will increase many fold.
4.Distribute ACC cement in other towns of chaibasa district also.
The analysis revealed that acc distributers are not distributing Cement in only selected places of chaibasa district. But the trend Showed that in other towns also acc cement have a reasonable demand.
5.Find dealers in each town if the supply seems to be laborious and
Uneconomical.
During the survey it became to clear that they don’t have even dealers in certain towns where other cement brands have got reasonably good
Demand.
6.Adoption of strict measures to improve sales and retain quality
Majority of the respondents agreed that it is having a reasonably
Good quality. So retaining the quality is highly important in the
Marketing point of view.
7.Extend the advertisement facility by media such as t v and newspapersAlso ensuring that it reaches the low class people too.
8.Introduce new product as different types of cement
9.Introduce gift schemes to customers too.
Since the acc is priced high than other many brands so it should focus
On these scheme. So introducing gift schemes to customers will inspire
Them to buy the product.
BIBLIOGRAPHY
BOOKS :
PHILIP KOTLER - MARKETING MANAGEMENT
WILLIAM J. STANTON - MARKETING MANAGEMENT
RAMASWAMY & NAMAKUMARI - MARKETING MANAGEMENT
C.R. KOTHARI - RESEARCH METHODOLOGY
D.D SHARMA - MARKETING RESEARCH
SIBRAJAN MISRA - ORIGIN & GROWTH OF
ACC INDUSTRY IN INDIA
JOURNAL:
ACC CEMENT
PUBLICATION:
ANNUAL REPORT – ACC CEMENT LIMITED
QUESTIONNAIR
Q1. Which cement company would you associate the following with :
(1) Availability.
(2) Quality.
(3) Brand pull.
(4) Service.
Q2. What drives your decision to stock a particular brand:
[Rate from 1 to 5,5 being the most preferred]
Profit margin. (2) Channel Discipline.
(3) Relationship with the wholesaler. (4) Credit.
(5) Quality of cement. (6) Logistics Support.
(7) Price. (8) Brand Pull.
(9) Marketing/ Promotional Initiatives. (10) Technical/ Sales Support.
Q3. Rate the following parameters from 1 to 6 ,6 being the most preferred.
ACC LAFARGE UTCL AMBUJA OCL BIRLA GOLDMarginQuality of cementRelation with companyCreditLogistic supportPriceBrand PullMaketing InitativeTechnical support
Q4. What comes to your mind when I say ACC cement?
Q5. How much importance would you attach to the following modes of advertisement in creating demand ? please rate out of 5.
Television. (2) Shop Paintings. (3) POP Material
(4) Hoarding (5) wall Paintings.
Q6. Do you stock ACC in your counter?
Q7. Reasons for purchasing / not purchasing ACC?
Q8. What is your brand wise sale from counter?
ACC LAFARGE
UTCL AMBUJA
OCL BIRLA GOLD
SALE(mt)
Q9. Rate the following brands on a scale of 1-6 according to customer preference of brands 1 being the highest.
ACC LAFARGE
UTCL AMBUJA
OCL BIRLA GOLD
RATING
REASON :
Q10. Rate the following brands on a scale of 1-6 according to retailer preference of brands 1 being the highest.
ACC LAFARGE
UTCL AMBUJA
OCL BIRLA GOLD
RATING
REASON:
Q11. In your opinion what is impacting the sale of ACC cement with respect to other brands.
Q12. Would you be interested in taking dealership of ACC?
Thinking about ACC & its products, what are your suggestions or recommendations?
Name of the sub Dealer:
Mob. No.
Location :