A Project report on

“Retailer’s Survey on New Product launch from Birla Shakti Cement”

SUBMITTED IN PARTIAL FULLFILMENT FOR THE DEGREE

OF

POST GRADUATE DIPLOMA IN MANAGEMENT

UNDER GUIDANCE OF

Prof. Jitender Govindani

(Director Academics)

BY

MACHIDI KALYAN

(15/110)

(2015-2017)

INSTITUTE OF COMPUTERS AND BUSINESS MANAGEMENT –

SCHOOL OF BUSINESS EXCELLENCE

HYDERABAD-500008

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CERTIFICATION

This is to certify that the project report title RETAILER’S SURVEY ON NEW PRODUCT

FROM BIRLA SHAKTI CEMENT submitted in partial fulfillment for the award of the

PGDM Program of ICBM- SCHOOL OF BUSINESS EXCELLENCE, Hyderabad was

carried out by MACHIDI KALYAN under my guidance. This has not been submitted to any

other university or Institution for the award of any degree/diploma certificate.

Date: 15-06-2015 JITENDER GOVINDANI

Place: Hyderabad Dept. of Marketing,

ICBM – SBE.

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DECLARATION

I MACHIDI KALYAN, student of ICBM-School of Business Excellence, Hyderabad,

hereby declare that this project report entitled “RETAILRE’S SURVEY ON NEW

PRODUCT FROM BIRLA SHAKTI CEMENT” is a bonafide record of work done by me

during the course of summer internship project work of PGDM program and all contents and

facts are prepared and presented by me without any bias.

I also declare that it has not been previously submitted for the award of any degree/diploma,

associate ship, fellowship or other similar title, of any University, Institute or Society.

Date:

Place: Hyderabad MACHIDI KALYAN

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ACKNOWLEDGEMENT

A project report is never successfully completed without the guidance and mentorship of a

few people. So, I take this opportunity to express my sincere gratitude towards all those, who

have helped me in this endeavor.

I take the opportunity to express my sincere gratitude to Chairperson Dr.Ritu zarar and

Prof. Shamshuddin Zarar, Principal of ICBM-SBE for their perseverance and attention

extended to over the course of the PGDM program. I express my humble and deep in

debtness to Prof. Jitender Govindani, Director (Academics) ICBM-SBE whose guidance

and encouragement proved to be a source of inspiration to do my best in this project.

I am extremely grateful to Mr. Baswaraj, Marketing Manager, BIRLA SHAKTI

CEMENT for providing an opportunity to gain valuable practical experience in the

company, by undertaking the current study.

Special thanks goes to my mentor Jitender Govindani, Dept. of Marketing, ICBM-SBE for

providing me much needed information and giving me direction which paved the way for the

completion of the project.

I am also thankful to the entire faculty and staff of ICBM-SBE, Hyderabad for directly or

indirectly supporting my research work.

Last, but not the least, my heartfelt appreciation to my parents who have instilled in me a

strong work ethic and the drive to excel in all my goals and endeavors.

MACHIDI KALYAN

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ABSTRACT

The research titled “Retailer’s Survey on New Product Launch from Birla Shakti Cement” has been prepared after gaining practical exposure in BIRLA SHAKTI CEMENT during these days of internship my work to do pre-launching strategy for the company’s product Birla Fix-Mix through shop senses and mapping of HYDERABAD city.

The method used is survey approach which gives room for primary data-questionnaire while

the sampling technique adopted is convenience sampling techniques in which all members of

the population has equal probability and independent chance of being selected.

Pre-launching survey helps the company to understand current and future market landscapes

as they plan for new product launches. The study undertaken and data collected is useful for

the future planning in terms of strategy formulation for new product launch of the company.

To understand the retailer’s perception and expectations from the company on new product

Birla Fix-Mix. To involve the retailer’s in the product development by considering their

suggestions on packaging and pricing etc.

From the result of this survey, we can conclude that Birla Fix-Mix is going to succeed in the

market, if the company is able to consider the suggestions from the retailers such as reduction

of the price, size of pack into small packs like 500gm and 1kg according to the customer

requirement. As it is a new product need to promote aggressively through all the media into

the market, then only the customer will able to recognise the product.

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INDEXTitle Page No.

Chapter 1 Introduction Objectives Scope Research methodology Limitations

9-13

Chapter 2 Literature review

15-21Chapter 3

Industry profile Company profile

23-36

Chapter 4 Data analysis and data interpretation

38-52Chapter 5

Findings Suggestions Conclusion Bibliography Conclusion

54-58

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CHAPTER-1

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INRODUCTION:

Today’s marketing is highly customer oriented, it is important to satisfy the needs and wants

of customers better than the competitors owing to cut throat competition, technological

changes and advancement, changing customer, tastes and preferences, shrinking product life

cycle and squeezing profit margin. Hence company does not want to lose their market base.

To enhance their market share and widen their customer base, it’s essential to understand the

consumer psychology. By understanding consumer behaviour, the marketing strategies,

which adapt changes according to market dynamics, can be formulated. To verify and check

the effectiveness of marketing strategy, marketer should understand the consumer profile and

their preferences well in advance.

A Company which wants to enter in the market without knowing the current market situation,

is a very risky job because launching a new product in the unknown market is costlier, the

company cannot predict what will be the result of it. There is always a threat of loss in such

decision, if the company is having a complete plan & knowledge of the market, then defiantly

it will be good opportunity & profit oriented segment for the company.

That’s why the research titled “Retailer’s survey on new product launch from Birla

Shakti Cement” fully concentrates on the retailer’s perception towards the new product Birla

Fix-Mix and their suggetions, expectations from the company.

The retailer is a middleman who owns the title of products and resale them to the final

consumers. The retailer is one of the main links between company and consumers and vice

versa. The retailer is the person who communicates with customers about company’s new

products, promotional schemes and whatever the company is going to try in near future.

The retailer also conveys ideas, suggestions and complaints of consumers to the company.

From this very fact we can conclude that how important is a retailer or middleman, both to

the company as well as to consumers. Retailers affect the sales of a company up to a large

extent. Although the ultimate demand is affected by consumers, but, word of mouth of a

retailer about company’s product also matters a lot in affecting the consumer purchase

process.

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The retailer is the main point where a company can follow push and pull strategy in

marketing. Reasonable sales incentives, fair treatment, proper discounts and other required

allowances to the retailers proves to be a tool to boost sales and motivate retailers which

ultimately enhance the building of brand image.

Retailer Perception

A Retailer percept the products from many points. The companies which offer maximum

profits to Retailer, provide better Sales Promotion Schemes, treat fairly etc. are winners.

A Retailer also precepts the products are the same way as consumer does, but with a slight

difference in the use of products. A consumer percept the product from the point of view for

final consumption, but the retailer does percept the product with a view to maximize his

profits. The perceptual process of retailers also consists of the components like retailer

imagery, perceived product quality, perceived service quality, retailer’s attitude and all what

a consumer perception consists.

Perception can be described as “how we see the world around us.” Two individuals may be

subject to the same stimuli under apparently the same conditions, by how they recognize

them, select them, organize them, and interpret them is a highly individual process based on

each person’s own needs, values, and expectations.

Perception is defined as the process by which an individual selects, organizes, and interprets

stimuli into a meaningful and coherent picture of the world. A stimulus is any unit of input to

any of the senses. Examples of stimuli (i.e., sensory input) include products, package, brand

names, advertisements, and commercials. Sensory receptors are the human organs (the eyes,

ears, nose, mouth, and skin) that receive sensory inputs. Their sensory functions are to see,

hear, smell, taste and feel. All of these functions are called into play–either singly or in

combination– in the evaluation and use of most consumer products. The study of perception

is largely the study of what we subconsciously add to or subtract from raw sensory inputs to

produce our own private picture of the world.

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OBJECTIVES OF THE STUDY:

To find out the scope & potential for launching of new product Birla Fix-Mix. To analyse the level of awareness among the retailers about the new product Birla.

Fix- Mix from Birla Shakti Cement. To understand the attitude of retailers towards Birla Fix-Mix. To find out the expectations of dealers and retailers from the company.

SCOPE OF THE STUDY:

The study undertaken and data collected is usefull for the future planning in terms of strategy formulation for new product launch of the company

The study is further important to the organization in tuning the company strategies as per market expectations.

The study is helpful to the organization for understanding current market situations, i.e strategies and policies adopted by competitor.

RESEARCH METHODOLOGY

Research methodology describes how the research study was undertaken. This includes the

specifications of a source of data, research design, and method of data collection, the

sampling method and the tools used.

SAMPLE DESIGN:

Geographical area:

The study was conducted in West Hyderabad.

Duration of project:

The duration of project work was about 45 days

Population:

Population for this research is set of Retailers who are dealing with Hardware, Painting,

Plywood, Sanitary & Tiles in West Hyderabad.

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Sample units:

The sampling units used for this research, are those who are dealing with hardware and

painting, sanitary etc.

Sample size:

A total of 50 Retailers were interviewed for this study.

Sampling procedure / Sampling method:

The sampling method used for this study is Convenience sampling, which is selected

according to the ease and convenience.

SOURCE OF DATA

Primary and secondary method of data collection was used to carry out the research work.

Primary data:

The data collected in both ways during the study through structured questionnaire and face-

to-face interview with retailers.

Secondary data:

Here the secondary data is collected from the Company profile, Industry profile and official

web sites, news reports and other sources.

RESEARCH INSTRUMENT:

A research instrument used for data collecting is a Questionnaire and Interview schedule.

Questionnaire

The questionnaire is prepared in a well-structured and non-disguised form so that it is easily

understandable and answerable by everyone. The type of questions include in the

questionnaire are open-ended questions, multiple choice questions and dichotomous

questions.

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Interview Schedule

The interview method of collecting data involves presentation of oral-verbal stimuli and reply

in terms of oral-verbal responses. Then the responses are filled up in the questionnaire, for

further analysis.

FRAME WORK OF ANALYSIS:

STASTICAL TOOLS USED FOR ANALYSIS:

The data analysis is done through various statistical tools. The statistical analysis is useful for

drawing inference from the collected information.

Simple percentage analysis

Bar diagrams

Pie charts

LIMITATIONS OF THE STUDY:

Since the survey was done only in Hyderabad city the result obtained may not be

taken as universal suggestion.

Quality of the information highly dependent on the knowledge of the respondents.

The attitude, perception of the retailers and the market situations in Hyderabad differs

from other market so same approach may not be beneficial.

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CHAPTER-2

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REVIEW OF LITRATURE

Retailing includes all the activities involved in selling goods or services directly to final

consumers for personal, non-business use. A retailer or retail store is any business enterprise

whose sales volume comes primarily from retailing.

-Philip Kotler

Retail is the sale of goods to end user, not for resale, but for use and consumption by the

purchaser. Retail involves the sale of merchandise from a single point of purchase, directly to

a customer who intends to use that product.  The single point of purchase could be a brick-

and-mortar retail store, an Internet shopping website, a catalogue, or even a mobile phone.  

The retail transaction is at the end of the. Manufacturers sell large quantities of products to

retailers, and retailers attempt to sell those same quantities of products to consumers.

-By Barbara Farfan

Retail marketing is the range of activities undertaken by a retailer to promote awareness and

sales of the company’s products. This is different from other types of marketing because of

the components of the retail trade, such as selling finished goods in small quantities to the

consumer or end user, usually from a fixed location. Retail marketing makes use of the

common principles of the marketing mix, such as product, price, place and promotion. A

study of retail marketing at university level includes effective merchandising strategies,

shopping and consumer behaviour, branding and advertising. Retail marketing is especially

important to small retailers trying to compete against large chain stores.

- Tracey Sandilands, Demand Media.

In the research titled “Retailing in India – A historical Perspective” Dr. Mandeep Singh

mentioned that retailing is the largest private industry in India and second largest employer

after agriculture. The sector contributes to around 10 per cent of GDP and 6-7 per cent of

employment. With over 15 million retail outlets, India has the highest retail outlet density in

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the world. The retailing sector in India has undergone significant transformation in the past

10 years. Traditionally, Indian retail sector has been characterized by the presence of a large

number of small-unorganized retailers. However, in the past decade, there has been the

development of organized retailing, which has encouraged large private sector players to

invest in this sector.

The research concludes by stating that the retail landscape of the country is changing at a

rapid pace with malls and multiplexes mushrooming in all major cities. In fact, having

reached a substantial capacity at Tier-1 locations, the organized retail revolution is now

percolating to Tier II and III cities. Retail has clearly been witnessing a transformation from

the neighbourhood-shopping to the concept of malls and family entertainment centres.

Entertainment and experience are becoming integral parts of shopping.

In the research titled “How tobacco companies ensure prime placement of their

advertising and products in stores: interviews with retailers about tobacco company

incentive programs” E C Feighery, K M Ribisl, P I Clark, H H Haladjian describing the

experiences of tobacco retailers with tobacco company incentive programs, how these

programs impact their store environments, and possible visual indicators of retailer

participation in incentive programs. The interviews with retailers provided insights into how

tobacco companies convey promotional allowances and special offers to retailers and how

these incentives shape the retail environment.

The method of data collection is primary method and the sample size is 29 tobacco retailers.

The main outcomes are the types and requirements of retailer incentive programs provided by

tobacco companies, and how participation in a program alters their stores.

In the interview retailers provided insights into how tobacco companies convey promotional

allowances and special offers to them and how these incentives shape the retail environment.

Retailers noted that tobacco companies exert substantial control over their stores by requiring

placement of products in the most visible locations, and of the specific amounts and types of

advertising in prime locations in the store. Retailers also described how tobacco companies

reduce prices by offering them volume based discounts, “buy two, get one free” specials, and

“buying down” the price of existing product.

The research concludes that tobacco companies are concentrating their marketing dollars at

the point-of-sale to the extent that the store is their primary communication channel with

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customers. As a result, all shoppers regardless of age or smoking status are exposed to pro-

smoking messages. Given the financial resources spent by tobacco companies in stores.

Varsha Bansal in his research titled “RETAIL BUSINESS IN INDIA-PROBLEMS AND

PROSPECTS” stated that retailers are referred as middlemen or intermediaries. It is taken as

a direct interface with the customer. It is not limited to that. Now, it has somewhat wider

meaning and comprised of buying and selling of goods and services and the timely delivery

of goods and services required by consumers at competitive and affordable prices. The Indian

retail sector is categorized into two segments are Organized retail sector and Unorganized

retail sector.

The objective is to study how the organized retail sector will affect the future of the

unorganized retail sector and the traditional retail sector. Unorganized retailers are traditional

retail shops/stores popularly known as Kirana. It is dominated by a large number of owner

managed local Kirana shops, general stores, chemists, footwear, shops, apparel shops, pan &

body shops, pavement vendors etc. Organized retailers are shopping malls, KFC, reliance

store, Walmart etc..

The research concludes that because of this big players and their competitive strength and

offer of attractive products may throw out the small traders from the market as they may not

be able to compete with them. Despite the protests by small retailers, big players like

Reliance Fresh, Vishal mega mart, Walmart, etc. are here and some other international big

players like Carrefour, Tesco, etc. are in queue and waiting for favourable signals from the

government and the general public. It will be in the interest of the industry, the general public

and all.

In the research titled “Consumers Attitude on Television Advertisement” T. Vijaya

Chithra, Dr. S. Kothai mentioned that Advertising is a worldwide business activity today and

its importance increases as more corporations go international. Vast expenditures are spent

each year by corporations on advertising to achieve their corporate objectives.

“Attention, Memory, Attitude and Conation: a test of the advertising hierarchy” analysed that

there is a clear relationship between memory, attitudes and conation. In spite of the age of the

viewers, the memory of an advertisement depends on the viewer’s attitude and behaviour.

Abhilasha Mehta (2000), in his research topic “Advertising attitudes and advertising

effectiveness” had analysed that buying interest of the consumers are based on how much the

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consumers are liking to look an advertisement, the value of the advertisement for the brands

advertised and how informative or truthful an advertisement is.

The study analysed the various factors relating to the consumer attitude towards television

advertisement and the research concludes that the consumers had a greater belief that

television advertisement inform their viewers about the brands they need, updates with the

products available in the market and keeps them in knowing about the changing fashions.

Though there is some leading negative attitude among the viewers like TV ads if excessive,

confuse them, repetition of the ads frequently, irritate the viewers into watching those TV

commercials and which in turn may have a negative impact about those products. It has also

been found that consumers consider television advertising as a medium that helps them in

their effective purchase decisions

Sushilkumar in his research titled “A Study of Brand Loyalty for Cosmetic Products

among Youth” explained that branding means naming a new born baby. It simplifies

customers purchase decisions and makes them confident about their purchases. The brand is

building a brand loyalty for a product which requires careful planning, distinct skills and

investment. Objectives of Study are the brand loyalty and consumer behaviour among youth

for cosmetic products and customer's perception towards factors responsible for building

brand loyalty, the portion of male and female in the cosmetic market.

Research concludes that it is a dream of any marketer to create a strong connection with

consumers and to have a long term relationship. This dream can only come true if his efforts

are completely diverted towards those factors which are responsible for building a brand

loyalty. This research has reported that excellent quality factor plays a key role over other

factors viz. Brand name, price, celebrity marketing, brand loyalty programme. Besides this,

cosmetic manufacturers are required to understand thoroughly the buying behaviour before

implementing any marketing strategy.

In the research paper titled “Factors Affecting Consumer Behaviour” author mentioned

that Consumer behaviour refers to the selection, purchase and consumption of goods and

services for the satisfaction of their wants. There are different processes involved in the

consumer behaviour. Initially the consumer tries to find what commodities he could like to

consume, then he selects only those commodities that promise greater utility. After selecting

the commodities, the consumer makes an estimate of the available money which he can

spend. Lastly, the consumer analyses the prevailing prices of commodities and takes the

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decision about the commodities he should consume. Meanwhile, there are various other

factors influencing the purchases of consumer, such as social, cultural, personal and

psychological.

Research concludes that the study of Consumer Behaviour is quite complex, because many

variables involved and their tendency to interact with & influence each other. The factors

which are have control over the mind of a customer. Culture, and subculture, Social Class,

and Social Group, Family, and Interpersonal Influences, Other Influences (which are not

categorised by any of the above six, like geographical, political, economical, religious

environment, etc.)

In the research paper titled “Customer Experience Management in Retailing” Kamaladevi

B stressed that Survival of fittest & fastest is the mantra of today’s business game. To

compete successfully in the retail business era, the retailer must focus on the customer’s

buying experience. To manage a customer’s experience, retailers should understand what

“customer experience” actually means. Customer Experience Management is a strategy that

focuses the operations and processes of a business around the needs of the individual

customer. It represents a strategy that results in a win–win value exchange between the

retailer and its customers.

The goal of customer experience management is to move customers from satisfied to loyal

and then from loyal to advocate. This research focuses on the role of macro factors in the

retail environment and how they can shape customer experiences and behaviours. Several

ways (e.g., Brand, Price, Promotion, Supply Chain Management, Location, Advertising,

Packaging & labelling, Service Mix, and Atmosphere) to deliver a superior customer

experience are identified which should result in higher customer satisfaction, more frequent

shopping visits, larger wallet shares, and higher profit

The research provides 10 best ways to make the successful “customer experience

management” are,

1. Successful deployment requires the active and continuing involvement of leadership

2. Ensuring cross-functional ownership is vital

3. Focusing on the most strategically important customers

4. Finding out what these customers truly value

5. Being clear about what we stand for

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6. Delivering the promise at every touch point

7. Providing branded training to ensure that employees understand the brand story

8. Designing CEM before installing CRM systems

9. Measuring the customer experience

10.Aligning the organization with the customer experience

The research concludes by saying that keeping customers in the next few years will be even

more important than making a sale. Shoppers are getting used to those 50–75 percent off sale

signs, and that is bad news for merchants who worry they will also have to quickly slash

prices on merchandise to attract customers. Retailers will have to engage their customers

every day to create the long-term loyal advocates necessary to compete in these challenging

times. The most important thing is to be able to identify ways to hold on to profitable

customers.

In the research titled “Consumer Attitude Towards Cosmetic Products” Mrs. J. Vidhya

Jawahar mentioned that The worldwide annual expenditures for cosmetics is estimated at

U.S. $18 billion, and many players in the field are competing aggressively to capture more

and more market. Hence, companies are interested to know about the consumer’s attitude

towards cosmetics so as to devise strategies to win over competition. The main objective of

the research is to investigate the influence of attitude on cosmetics buying behaviour.

Attitudes are formed through experience and learning and that attitudes influence buying

behaviour. Consumer attitudes toward a firm and its products greatly influence the success or

failure of the firm. Cosmetics buying behaviour literature in developing countries in general

is inadequate and ambiguous. As it is known from the Theory of Reasoned Action and

Theory of Planned Behaviour, attitudes have considerable impact on behaviour. When

examining the influence of attitude on the behavioural intention; the results indicate that

attitude positively affects behavioural intention. There is a direct causal relationship between

attitudes and behaviour.

Research concludes by suggesting that Now, Consumers have lots of interest regarding the

cosmetic products and also they have an awareness about cosmetic product attributes. Here,

the cosmetic companies need to understand the consumer attitude on cosmetics buying

behaviour which brings success of the company.

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In the research titled “Consumer Attitude towards Online Shopping in Selected Regions

of Gujarat” Prof. Ashish Bhatt analysed that the growing use of Internet in India provides a

developing prospect for online shopping. If E-marketers know the factors affecting online

Indian behaviour, and the relationships between these factors and the type of online buyers,

then they can further develop their marketing strategies to convert potential customers into

active ones, while retaining existing online customers. Consumer behaviour is said to be an

applied discipline as some decisions are significantly affected by their behaviour or expected

actions.

Online shopping can be a smart consumer's best friend with the ability to easily comparison

shop, search for discounts and make purchases with a few mouse clicks. You could always

visit shopping comparison sites, such as MySimon.com, or search for coupon codes at one of

many code-aggregators. But now a slew of Web browser add-ons makes smart online

shopping easier.

The research concludes that consumer online purchasing level of satisfaction and their loyalty

toward it. Consumers of Gujarat state are more prone to traditional buying since long back.

But after the internet technology, they become more prone toward technologies to buy their

consumables. The research said that consumers are remaining satisfied with online buying

but loyalty enhancement might be developing gradually with internet based buying.

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CHAPTER-3

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INDUSTRY PROFILEIntroduction:India is the second largest producer of cement in the world. No wonder, India's cement

industry is a vital part of its economy, providing employment to more than a million people,

directly or indirectly. Ever since it was deregulated in 1982, the Indian cement industry has

attracted huge investments, both from Indian as well as foreign investors.

India has a lot of potential for development in the infrastructure and construction sector and

the cement sector is expected to largely benefit from it. Some of the recent major government

initiatives such as development of 98 smart cities are expected to provide a major boost to the

sector.

Expecting such developments in the country and aided by suitable government foreign

policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have

invested in the country in the recent past. A significant factor which aids the growth of this

sector is the ready availability of the raw materials for making cement, such as limestone and

coal.

Market Size:Cement demand in India is expected to increase due to government’s push for large

infrastructure projects, leading to 45 million tonnes of cement needed in the next three to four

years1.

India's cement demand is expected to reach 550-600 Million Tonnes Per Annum (MTPA) by

2025. The housing sector is the biggest demand driver of cement, accounting for about 67 per

cent of the total consumption in India. The other major consumers of cement include

infrastructure at 13 per cent, commercial construction at 11 per cent and industrial

construction at nine per cent.

To meet the rise in demand, cement companies are expected to add 56 million tonnes (MT)

capacity over the next three years. The cement capacity in India may register a growth of

eight per cent by next year end to 395 MT from the current level of 366 MT. It may increase

further to 421 MT by the end of 2017. The country's per capita consumption stands at around

190 kg.

The Indian cement industry is dominated by a few companies. The top 20 cement companies

account for almost 70 per cent of the total cement production of the country. A total of 188

large cement plants together account for 97 per cent of the total installed capacity in the

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country, with 365 small plants account for the rest. Of these large cement plants, 77 are

located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.

Technological change:Continuous technological upgrading and assimilation of latest technology has been going on

in the cement industry. Presently, 93 per cent of the total capacity in the industry is based on

modern and environment-friendly dry process technology and only 7 per cent of the capacity

is based on old wet and semi-dry process technology. There is tremendous scope for waste

heat recovery in cement plants and thereby reduction in emission level.

Investments:On the back of growing demand, due to increased construction and infrastructural activities,

the cement sector in India has seen many investments and developments in recent times.

According to data released by the Department of Industrial Policy and Promotion (DIPP),

cement and gypsum products attracted Foreign Direct Investment (FDI) worth US$ 3.101

billion between April 2000 and December2015.

Some of the major investments in Indian cement industry are as follows:

India's largest cement maker UltraTech Cement is looking forward to acquire

Jaiprakash Associates six cement factories for a total value of Rs 16,500 crore (US$

2.42 billion)

Birla Corporation Ltd, a part of the MP Birla Group, has agreed to acquire two

cement assets of Lafarge India for an enterprise value of Rs 5,000 crore (US$ 733.6

million).

Dalmia Cement (Bharat) Ltd has invested around Rs 2,000 crore (US$ 293 million) in

expanding its business in North East over the past two years. The company currently

has three manufacturing plants in the region — one in Meghalaya and two in Assam.

JSW Group plans to expand its cement production capacity to 30 MTPA from 5

MTPA by setting up grinding units closer to its steel plants.

UltraTech Cement Ltd has charted out its next phase of Greenfield expansion after a

period of aggressive acquisitions over the last two years. UltraTech has plans to set up

two Greenfield grinding units in Bihar and West Bengal.

UltraTech Cement Ltd bought two cement plants and related power assets of

Jaiprakash Associates Ltd in Madhya Pradesh for Rs 5,400 crore (US$ 792.3 million).

JSW Cement Ltd has planned to set up a 3 MTPA clinkerisation plant at Chittapur in

Karnataka at an estimated cost of Rs 2,500 crore (US$ 366.8 million).

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Andhra Cements Ltd has commenced the commercial production in the company's

cement plants – Durga Cement Works at Dachepalli, Guntur and Visakha Cement

Works at Visakhapatnam.

Mergers and Acquisitions (M&As):

The cement industry in the country has seen a number of acquisitions and mergers over the

past decade as foreign players like Lafarge, Holcim, Heidelberg and others began to enter the

Indian market opting for the brownfield route. Homegrown companies, too, have been active

in this area.

Some of the major deals over the last decade:

2005: Holci acquires stake in ACC at an enterprise value of $111 per tonne. Later

acquires stake in Ambuja Cement in 2006 at an enterprise value of $193 per tonne.

2006: Heidelberg Cement Group enters India via a 50:50 joint venture in Indorama

Cement and acquires majority stake in Mysore Cement.

2008: Heidelberg Cement Group acquires balance stake in Indorama Cement and

merges operations of the same with Mysore Cement forming Heidelberg Cement

India. Capacity of the company increases to 3.07 mtpa.

November 2011: Jaypee Group purchases controlling stake in GP Goenka Group's

Andhra Cements for an estimated Rs.280 crore.

September 2013: UltraTech bought the 4.8-million tonne Gujarat unit of Jaiprakash

Associates for an enterprise value of Rs.3,800 crore in its biggest acquisition in more

than two years.

March 2014: Ambuja Cement first acquires 24 percent stake in Holcim India for

Rs.3,500 crore, followed by a merger of Holcim India into Ambuja Cements. This

resulted in Ambuja Cements holding 50 percent stake in ACC, which is a 50 percent

subsidiary of Holcim India.

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December 2014: Ultratech acquires two plants from Jaiprakash Associates in Bela in

Madhya Pradesh for an enterprise value of Rs.5,400 crore.

February 2015: Dalmia Cement raised its stake holding in OCL India from 48 percent

to 74.6 percent through an inter-share transfer with a deal value of Rs.1,023 crore.

April 2015: Competition Commission of India gives nod for Holcim-Lafarge merger

deal estimated at $40 billion that would create the world's largest cement group. It

directed Lafarge to sell its two plants in India to address anti-competition concerns.

April 2015: Shree Cement completes acquisition of a cement-grinding unit of

Jaiprakash Associates at Panipat in Haryana for Rs.358 crore.

Government Initiatives:In the 12th Five Year Plan, the Government of India plans to increase investment in

infrastructure to the tune of US$ 1 trillion and increase the industry's capacity to 150 MT.

The Cement Corporation of India (CCI) was incorporated by the Government of India in

1965 to achieve self-sufficiency in cement production in the country. Currently, CCI has 10

units spread over eight states in India.

In order to help the private sector companies thrive in the industry, the government has been

approving their investment schemes. Some such initiatives by the government in the recent

past are as follows:

Budget 2016-17 has proposed a slew of measures to boost infrastructure and

investment, which will be positive for the cement sector, as increased spending on

infrastructure increases the demand for cement. 100 per cent deduction for profits to

an undertaking in housing project for flats upto 30 square metres in four metro cities

and 60 square metres in other cities approved during June 2016 to March 2019 and

completed in three years

Incremental spend on smart city development, the government has allocated Rs 7,296

crore (can give USD figures) towards Urban Rejuvenation Mission (AMRUT and

Mission for Development of 100 Smart Cities

Rise in allocation under Pradhan Mantri Gram Sadak Yojana (PMGSY) to Rs 19,000

crore (US$ 2.79 billion) for FY17.

The Government of India plans to enact a law that will allow the companies which

have received mining licenses without having gone through the auction process, to

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transfer these leases, in a move that is expected to make mergers and acquisitions

(M&As) easier in the steel, cement, and metals sectors.

The Government of Tamil Nadu has launched low priced cement branded 'Amma'

Cement. The sale of the cement started in Tiruchi at Rs 190 crore (US$ 27.9) a bag

through the Tamil Nadu Civil Supplies Corporation (TNCSC). Sales commenced in

five godowns of the TNCSC and will be rolled out in stages with the low priced

cement available across the state from 470 outlets.

The Government of Kerala has accorded sanction to Malabar Cements Ltd to set up a

bulk cement handling unit at Kochi Port at an investment of Rs 160 crore (US$ 23.5

million).

The Andhra Pradesh State Investment Promotion Board (SIPB) has approved

proposals worth Rs 9,200 crore (US$ 1.35 billion) including three cement plants and

concessions to Hero MotoCorp project. The total capacity of these three cement plants

is likely to be about 12 MTPA and the plants are expected to generate employment for

nearly 4,000 people directly and a few thousands more indirectly.

India has joined hands with Switzerland to reduce energy consumption and develop

newer methods in the country for more efficient cement production, which will help

India meet its rising demand for cement in the infrastructure sector.

The Government of India has decided to adopt cement instead of bitumen for the

construction of all new road projects on the grounds that cement is more durable and

cheaper to maintain than bitumen in the long run.

Current scenario:The cement industry comprises 130 large cement plant sand more than 300 mini cement

plants. The industry's capacity at the end of the year reached 188.97 million tons which was

166.73 million tons at the end of the year 2006-07. Cement production during April to March

2007-08 was 168.31 million tons as compared to 155.66 million tons during the same period

for the year 2006-07.Despatches were 167.67 million tons during April to March 2007- 08

whereas155.26 during the same period. During April-March 2007-08, cement export was3.65

million tons as compared to 5.89 during the same period. Cement industry in India is

currently going through a consolidation phase. Some examples of consolidation in the Indian

cement industry are: Gujarat Ambuja takinga stake of 14 per cent in ACC, and taking over

DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi

Cement and Sri Vishnu Cement and Grasim's acquisition of the cement business of L&T,

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Indian Rayon's cement division, and Sri Digvijay Cements. Foreign cement companies are

also picking up stakes in large Indian cement companies. Swiss cement major Holcim has

picked up14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL).

Holcim's acquisition has led to the emergence of two major groups in the Indian cement

industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birlagroup

through Grasim Industries and Ultratech Cement. Lafarge, the French cement major has

acquired the cement plants of Raymond and Tisco. Italy based Italcementi has acquired a

stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and

German cement company Heidelberg Cement has entered into an equal joint-venture

agreement with S P Lohia Group controlled Indo-Rama Cement.

Road Ahead:The eastern states of India are likely to be the newer and virgin markets for cement

companies and could contribute to their bottom line in future. In the next 10 years, India

could become the main exporter of clinker and grey cement to the Middle East, Africa, and

other developing nations of the world. Cement plants near the ports, for instance the plants in

Gujarat and Visakhapatnam, will have an added advantage for exports and will logistically be

well armed to face stiff competition from cement plants in the interior of the country.

A large number of foreign players are also expected to enter the cement sector, owing to the

profit margins and steady demand. In future, domestic cement companies could go for global

listings either through the FCCB route or the GDR route.

With help from the government in terms of friendlier laws, lower taxation, and increased

infrastructure spending, the sector will grow and take India’s economy forward along with it.

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MAJOR PLAYERS IN INDIAN CEMENT INDUSTRY:

COMPANY PRODUCTION INSTALED CAPACITY

ACC 17,902 18,640

Gujarat Ambuja 15,094 14,860

Ultratech 13,707 17,000

Grasim 14,649 14,115

India Cements 8,434 8,810

JK Group 6,174 6,680

Jaypee Group 6,316 6,531

Century 6,636 6,300

Madras Cements 4,550 5,470

Birla Corp 5,150 5,113

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COMPANY PROFILE

INTRODUCTION:

Kesoram Industries Limited is one of the pioneer companies in India. It is under the

flagship 'B K Birla Group Of Companies, a conglomerate encompassing diverse businesses in

varied industries such as textiles, cement, chemicals, rayon, tyres, ply boards, plantations,

education, horticulture, shipping, air-taxi, electricals, spun pipes, and refractories. According

to Economic Times, it’s all India ranking was 121 for the year 2010 with a net income of Rs.

5020.63 Crore and a net profit of Rs. 648.29 Crore.

The company is listed on three major stock exchanges in India (Bombay Stock Exchange

Ltd., Mumbai; Calcutta Stock Exchange Association Ltd., Kolkata; and National Stock

Exchange of India Ltd., Mumbai) and at the Societe de la Bourse de Luxembourg,

Luxembourg.

HISTORY 1919 -Kesoram Industries Limited started its business with Kesoram Cotton Mills

Ltd.

December, 1959 – The First Plant for manufacturing of rayon yarn was established at

Tribeni, District Hooghly, West Bengal.

June, 1961 – The plant for manufacturing of transparent paper was also set up at

Tribeni, District Hooghly, West Bengal.

1962 – The Second Plant for manufacturing of rayon yarn was established

December, 1964 – The Company diversified into manufacturing of cast iron spun

pipes & pipe fittings at Bansberia, District Hooghly, West Bengal.

1969 – The Company subsequently diversified into the manufacturing of Cement

named ‘Kesoram Cement’ at Basantnagar, Dist. Karimnagar (TELANGANA).

1986 – another cement plant, known as ‘Vasavadatta Cement’, was commissioned by

it at Sedam, Dist. Gulbarga (Karnataka).

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March 1992 – commissioned a plant at Balasore known as Birla Tyres in Orissa, for

manufacturing of 10,00,000 mtpa automotive tyres and tubes in the first phase in

collaboration with Pirelli Ltd., U.K., a subsidiary company of the world famous Pirelli

Group of Italy – a pioneer in production and development of automotive tyres in the

world.

BUSINESS SUMMARY

Currently, Kesoram Industries Limited has three major divisions:

1) BIRLA TYRES   - Birla Tyres was first established in 1991, as part of Kesoram Industries

Limited. It then collaborated with tyre manufacturer Pirelli, in the production and

development of its tires.

2) KESORAM RAYON - It was established in 1959. Situated in the banks of the Ganges,

Kesoram Rayon is a viscose rayon filament yarn and cellophane paper manufacturing unit

with over 2700 employees. The factory currently has 52 spinning machines with an installed

capacity of 6500 MT per annum. It is the only company in Eastern India to manufacture

Viscose Filament Rayon Yarn and Cellophane paper.

KIL Cement Division is an award-winning cement manufacturer and is one of the nation's

largest producers to provide high quality products and reliable services to our clients and

communities throughout India. Discover our manufacturing footprint, products, innovation

methods, portfolio and our philosophies along the way.

3) BIRLA SHAKTI CEMENT

Founded in 1969, Birla Shakti is one of the global leaders in cement technology. Besides

being a leading supplier of cement and aggregates, it also offers consulting, research, trading,

engineering and other services to complement its customers’ business needs. Company

headquarters is in India and production sites in several parts of the country.

PROFILE

Under the cement division of Kesoram Industries Limited, Birla Shakti manufactures and

sells cement. The company widely recognized for its quality, strength and technology, which

has enabled them to build strong working relationships and gain the trust of their customers

and builders. As a mark of their quality management best practices, they have been certified

an ISO 9001 company.

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Birla Shakti has two cement manufacturing plants located at Sedam, Karnataka (the

"Vasavadatta Cement Plant") and Basantnagar, Telangana (the "Kesoram Cement Plant").

Birla Shakti is operating cement business from 40 years, catering to the regional demands

predominantly in Karnataka, Andhra Pradesh and Maharashtra. Its plants are strategically

located near its leased limestone deposits in the states of Karnataka and Andhra Pradesh.

Presently, it combined total installed capacity of 7.25 million MT.

MISSION

To inspire and touch lives through our services and products.

VISION

We endeavour to shape tomorrow’s urban landscape and provide a better quality of living for

all mankind.

AWARDS

1990National Award for Second Best Improvement in Energy Performance from

NCCBM & Ministry of Power.

1991National Award for Best Improvement in Energy Performance from NCCBM &

Ministry of Power

1991National Award for Best Improvement in Electrical Performance from NCCBM

& Ministry of Power

1993Award for Outstanding Contribution towards Growth of Industries from

Hyderabad Karnataka Chamber of Commerce

1994National Productivity Award from Hon’ble Prime Minister

1994National Award for Third Best Improvement in Energy Performance from

NCCBM & Ministry of Power

1994National Award for Best Improvement in Energy Performance from NCCBM &

Ministry of Power

1994Best Problem Solver in Technical Support, Award from Central Institute of

Professional Management

1994Best Case Study Presentation in Production, Award from Central Institute of

Professional Management

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1996Environmental Award from Dept. of Ecology & Environment, Govt. of

Karnataka

PRODUCTS

Cement is a binder that’s used to produce concrete. There are various types of cement for use

in different applications. The properties of cement can also be varied through additives. Find

out more about how we make our cement.

CEMENT PRODUCTION PROCES

Birla Shakti cement is manufactured through three stages

1. MINING, STACKING AND GRINDING. In this stage limestone is excavated from

open cast mines after drilling and blasting.

2. CLINKERISATION. In this stage The raw meal is fed to a pre-heater-kiln.

3. CLINKER GRINDING AND CEMENT PACKING. In this stage Roller press with

ball mill is used to grind the clinker. 3.5 to 4% Gypsum is added to make Ordinary

Portland Cement (OPC).

To make Portland Pozzolana Cement (PPC), up to 31% of fly ash is added to the

clinker in addition to Gypsum.

TYPES OF CEMENT

These are Birla Shakti’s most popular and comprehensive range of top-quality building

materials for the various applications needed.

ORDINARY PORTLAND CEMENT [OPC] is Most commonly used cement for a wide

range of applications like dry-lean mixes, general-purpose ready-mixes, high strength pre-

cast and pre-stressed concrete. Other OPC grade types available: 43

PORTLAND POZZOLANA CEMENT [PPC] is Blended with pozzolanic materials like

power-station fly ash, burnt clays, ash from burnt plant material or siliceous earths. High

degree of cohesion and workability in concrete and mortar.

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PORTLAND SLAG CEMENT [PSC] is Slag-based blended cement that imparts strength and

durability to all structures. Manufactured by blending and inter-grinding OPC clinker, and

granulated slag in suitable proportions for consistent quality.

In this year (2016) Birla Shakti is launching a new product called BIRLA FIXMIX

ABOUT BIRLA FIXMIX

Birla Fix-Mix is ready to use dry mortar, suitable for plaster and repair. It is made from a

unique combination of cement, graded sand and special additives. It provides complete repair

solution for high quality repair with added features of,

No curing

Quick setting

Water repellent

Fast/quick setting

Brand assurance

Benefits of product:

User friendly, just add water and mix and apply

Saves time

Better reliability and consistence in quality through controlled process

Superior finish compare to job-site mortar

Better bonding strength and compression strength

Available in various pack size for better economic and less wastage (2/5/50kg)

Areas of application:

Any mortar based work such as

Voids/Cracks filling of walls

Repairing of holes and edges in the wall

Patches on wall plaster

Small repair on floor and roof

After repair of sanitary ware, plumbing &electrical work

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Plastering on wall

Other masonry work

PORTFOLIO:

Built on Essentials:

Infrastructure, growth, discipline and integrity – Birla Shakti business is built on these very

essentials. as an ISO 9001, 14001, 18001 and 50001 company, they take care of the land and

the community through the entire cycle of cement manufacturing use from mining to

clinkerisation.

with these essentials in mind, Birla Shakti always give top priority to their clients after all,

they wouldn’t be an industry leader without their clientele.

Network of Clients:

One of the main reasons for Birla Shakti tremendous success in the Indian market has been

they reach across the nine highly industrialised states of Andhra Pradesh, Maharashtra,

Karnataka, goa, Kerala, Madhya Pradesh, Orissa, Chhattisgarh and Tamil Nadu.

Birla Shakti dealer network in the trade segment comprises 1,581 strong and loyal dealers

across the territories. Most of these dealers have been associated with company for the last 35

years. This strong bond empowers them with the confidence and ability to grow further in

this segment.

Birla Shakti clientele in the non-trade segment includes the following prestigious and

renowned businesses:

Adarsh Developers

Amanora Future Towers Private Limited

Bippl-Sublime Jv

Cyber City Builders & Developers Private Limited

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Apshcl

Emami Constructions Private Limited

Firm Foundation Realtors

Godrej & Boyce Manufacturing Company Limited

Gvr Infra Projects Limited

Il&Fs Engineering And Construction Company Limited

Itc Limited

Ivrcl Limited

J.M.Mhatre Infra Private Limited

Kolte Patil I-Ven Townships (Pune) Private Limited

Lafarge Aggregates And Concrete India Private Limited

Lanco Infratech Limited

Lavasa Corporation Limited.

Lloyds Steel Industries Limited

Marvel Landmark Private Limited

Marvel Realtor Development Limited

Ntpc Limited, Phoenix Infocity Private Limited, Powergen Infrastructure (L.L.C), Tata Consultancy Services Limited, Tata Housing Development Company Limited etc.

SUSTAINABILITY:

The key to sustaining economic growth lies in Birla Shakti belief, where company value its

employees and their families, the environment they do business in, their esteemed customers,

as well as the local communities they are surrounded by. Birla convinced that social progress

should be shared and enjoyed by all that KIL cement division is connected to. Learn more

about how they making this a reality.

CORPORATE SOCIAL RESPONSIBILTY:

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Underpinning life at company is the division vision – Birla Shakti statement of the company

culture, which both informs and describes the company behaviour. Development activities

revolve around the under-privileged community that lives in the immediate vicinity of its

cement plants.

The range of Birla Shakti activities begins with extending educational and medical facilities

and goes on to cover vocational guidance and supporting employment-oriented and income-

generation projects like agriculture, animal husbandry, cottage industries by developing local

skills, using local raw materials and helping create marketing outlets. These are the key areas

that the company endeavour to make a difference in.

CHAPTER-4

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DATA INTERPRETATION

1. NATURE OF BUSINESS.

Table:

NATURE OF SHOP RESPONDENTSHARDWARE AND PAINTS 27HARDWARE AND SANITARY 13SANITARY AND TILES 2OTHERS 8

Graph:

54%26%

4%

16%

NATURE OF BUSINESS

HARDWARE AND PAINTSHARDWARE AND SANITARYSANITARY AND TILESOTHERS

37 | P a g e

Data Interpretation:

In this survey I mainly concentrated on hardware, paintings and building material retailers only.

Pure cement sellers will not show the interest in this product because if they sell Birla Fix-Mix it will show a negative impact on sales of cement Because the product consist of cement in addition sand, polymers so the customers who come to purchase the cement show interest in this new product rather than cement.

In the survey most of the respondents are the hardware &painting 54%, Hardware and sanitary are 26%, Sanitary and tile are 4%, Others in the sense electrical stores, etc. are 16%, in the sample 50

2. EXPERIENCE IN BUSINESS.

Table:

NO. OF YEARSRESPONDENTS

0-5 Y 166-10 Y 23>10 Y 11

Graph:

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0-5 Y6-10 Y

>10 Y

0

5

10

15

20

25

EXPERIENCE IN BUSINESS

Axis Title

Data Interpretation:

In the present scenario growth of real estate industry is high, so that no. of new players entering into the hardware business, from the above graph we can understand that 32% of new players entered into this business within the span of 5years.

We can interpret from the above graph most of the respondents are experienced in the business between 6 to 10years which says that the margin in these businesses is profitable.

There are less number of retailers are experienced in the business and they do well from long back. They have great market share and good relationship with builders and contractors.

3. PERCEPTION TOWARDS BIRLA SHAKTI.

Table:

PERCEPTION TOWARDS BIRLA SHAKTIRESPONDENTS

EXCELLENT 9GOOD 21AVERAGE 17POOR 3

Graph:

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EXCELLENT GOOD AVERAGE POOR

9

2117

3

PERCEPTION TOWARDS BIRLA SHAKTI

COUNT

Data Interpretation:

The response for this question clearly indicates that most of the retailers have a good opinion on the brand Birla Shakti

The Graph shows that 21 retailers have a good opinion on the brand Birla Shakti that is 42% of the sample and 18% of are expressed that is excellent. That means almost 60% of respondents have a positive opinion of the brand.

34% of retailer expressed that the brand Birla Shakti is average. Only 6% of retailers expressed that the brand Birla Shakti is poor. The perceptions of the brand will effects on the position of its products in the market.

If the brand has a good name in the market, then that name carry’s its products also.

4. RELATIONSHIP WITH BIRLA SHAKTI CEMANT.

Table:

DEALING WITH BIRLA SHAKTI CEMENT RESPONDENTSYES 6

NO 44

Graph:

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12%

88%

DEALING WITH BIRLA SHAKTI CEMENT

YES NO

Data Interpretation:

In this survey most of the respondents are not pure cement retailers, 6 of them are dealing with Birla Shakti so they have a relationship with it.

Only 12% of respondents have an existing relationship with Birla Shakti and remaining 88% of respondents don’t have any relationship with Birla Shakti.

5. AWARENES OF NEW PRODUCT “BIRLA FIX MIX” FROM BIRLA SHAKTITable:

AWERNES OF BIRLA FIX MIXRESPONDENTS

YES 41

NO 9

Graph:

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82%

18%

AWARENESS OF BIRLA FIX MIX

YESNO

Data Interpretation:

Most of the respondents are aware of new product Birla Fix-Mix because company using sales team to promote this new product aggressively around the city.

Creating awareness is very important, and its impact on the future of the product on the market.

82% of the respondents have an idea of Birla Fix Mix, remaining 18% is knowing the product name but they don’t have the clear idea on the product specifications and features.

6. HEARD THIS KIND OF PRODUCT BEFORE.

Table:

HEARD ABOUT THIS KIND OF PRODUCT RESPONDENTS

YES 14

NO 36

Graph:

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28%

72%

Are you aware of any other competitor offering similar products

YESNO

Data Interpretation:

As this product based on the sum of the features like crack filling, water leakage, plastering etc. so few of the retailers thought that it is only a water leakage product like Dr. Fixit, MYK Schombarg that is 24%.

72% of the retailers not aware of this kind of product. The response to this question is sending a message to the sales team of the company

that concentrates on unique features of new products, like its setting time, bonding, no curing, no water repellent etc. than the regular features of other products to avoid the confusion in retailer mind.

The company should follow the unique selling proposition (USP) method to motivate the retailer to order this new product.

7. INFLUENCING FACTORS ON NEW PRODUCT PURCHASE DECISION.

Table:

INFLUENCING FACTOR FOR USING NEW PRODUCT RESPONDENTSLOW PRICE 6GOOD QUALITY 23BRAND NAME 18OTHERS 3

Graph:

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LOW PRICEGOOD QUALITY

BRAND NAMEOTHERS

0

5

10

15

20

25

INFLUENCING FACTOR ON NEW PRODUCT PURCHASE DE-CISION

Data Interpretation: Analysis of this question reveals that the retailers consider two important

factors that are the quality of the product and brand name. After that price and other factors influence on new product purchase decision.

46% of the respondents are check the qulity of the product and 36% of the respondents are they purchase a new products from brands only, so we can understand from this response Brand can asure the quality of the product.

12% of respondents expressed that low price is influancining factor and 6% are state that others in the sence availability is important factor.

The most influencing factors from high to low areBrand Name > Good Quality > Low Price > Others means availabilty

8. SATISFACTION ON PRICING OF NEW PRODUCT FROM BIRLA SHAKTITable:

PRICE SATISFACTION LEVELSRESPONDENTS

YES 19NO 31

Graph:

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38%

62%

PRICE SATISFACTION LEVELS

YESNO

Data Interpretation: The response of the retailers indicates that the price of the new product should be as

low, so most of the retailers are expressed that the pricing of Birla Fix-Mix (2kg=80/-, 5kg=150/-) is high, those are 62% of the sample.

Only 34% of them are satisfied with this pricing.

9. EXPECTED TO PAY FOR THE NEW PRODUCT BIRLA FIX-MIX FOR DIFFERENT QUANTITYS ARE 2KG = 80/-, 5KG = 150.

A) Table for 2KG pack:

RETAILERS EXPECTED TO PAY FOR 2KG RESPONDENTSPRICE RANGE B/W 60-65 9PRICE RANGE B/W 65-70 16PRICE RANGE B/W 70-75 6

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Graph:

PRICE RANGE B/W 60-65 PRICE RANGE B/W 65-

70 PRICE RANGE B/W 70-75

02468

10121416

916

6

RETAILERS EXPECTED TO PAY FOR 2KG PACK

B) Table for 5kg pack:

RETAILERS EXPECTED PAY FOR 5KG RESPONDENTS

PRICE RANGE B/W 115-125 11

PRICE RANGE B/W 125-135 13

PRICE RANGE B/W 135-145 7

Graph:

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PRICE RANGE B/W 115-125 PRICE RANGE B/W 125-

135 PRICE RANGE B/W 135-145

02468

101214

11 13

7

RETAILERS EXPECTED TO PAY FOR 5KG PACK

Data Interpretation:

From the above interpretation most of the retailers show less interest for the high price on that are 2kgs and 5kgs, they are asked to reduce the price as it is a new product in the market.

Retailer’s wants to make very small size packages like 500grams and 1kg to satisfy the customer requirements.

Low price strategy – used to encourage trial of your product or service. As well as repurchase on a regular basis.

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10. THE BEST WAY TO PROMOTE A NEW PRODUCT.

Table:

PROMOTIONAL ACTIVITIES RESPONDENTSPRINT & BROADCASTING MEDIA 27INDOOR DISPLAY STAND 7BILLBOARDS 4SHUTTEHR & WALL PAINTINGS 12

Graph:

PRINT & BROADCASTING

MEDIA

INDOOR DISPLAY STAND

BILLBOARDS SHUTTEHR & WALL PAINTINGS

0

5

10

15

20

25

30

PROMOTIONAL ACTIVITIES

Data Interpretation: From the above graph almost 55% of the retailers suggested the company to do

promotion in print &broadcasting media is the best way to communicate the new product with customers directly. So it will impact on the immediate sales of the product.

Next follows 24% of the retailers suggested to do promotion through shatter painting &wall painting with a brand name is also impacting on customers buying decision because the customers who are coming to the hardware retailer store to buy building materials or paints they will inquire about that product.

14% of retailer said that indoor display stand is helping to attract the customers by placing the product in that then the customer pic the product directly from the stand and see what the product is.

Most of the hardware material does not do billboard promotions as it is more costly. It shows the very less percentage is 8%.

We can understand from the response of the retailers every new product need aggressive promotion to push it into the market and sustain in it for long periods.

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11. RETAILERS INTREST TOWARDS BIRLA FIX-MIX.

Table:

INTREST LEVELS RESPONDENTSEXTREMELY INTRESTED 11SOMEWHAT INTRESTED 26NOT SURE 7NOT AT ALL INTRESTED 6

Graph:

EXTREMELY INTRESTED

SOMEWHAT INTRESTED

NOT SURE NOT AT ALL INTRESTED

0

5

10

15

20

25

30

11 26 7 6

INTREST LEVELS

COUNT

Data Interpretation: 74% of the retailers are somewhat or above interested in the Birla fix mix product

because it is the new product in the market for the Birla Shakti brand. They are It proves that the product from well-known brand always has some expectation and trust in the customer's mind.

14% of the retailers are not sure and 12% of the retailers not at all intrested because they are direct cement sellers.

Even it is a new product in market, Birla Shakti should convince the retailers to buy the product and sell it to the end users.

12. REQUIREMENT OF INCENTIVE SCHEME FOR NEW PRODUCT

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Table:

INCENTIVES REQUIREMENT FOR FIX MIX RESPONDENTSYES 37NO 13

Graph:

74%

26%

INCENTIVES REQUIREMENT FOR PRODUCT

YESNO

Data Interpretation:

In every business the people seek for incentives, this happen same towards new product Birla Fix-Mix.

Almost 74% respondent for an incentive system as they need profits from that product.

This also shows the risk level of retailers because they want to take risks to sell new product to the market so they want some incentive.

Incentives are key factor which influences the retailer behaviour towards new product and it motivates the retailers sell this product in the market.

Incentive scheme is help full to the company to compete with the competitors as well as to maintain the good long relationship with retailers.

26% of respondent doesn’t ask any incentive scheme because they are not sure or not interesting in the product.

13. CREDIT PERIOD FROM WHOLE SELLER.

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Table:

MAXIMUM CREDIT PERIODRESPONDENTS

ONE WEEK 1315 DAYS 26

ONE MONTH 11

Graph:

ONE WEEK 15 DAYS ONE MONTH0

5

10

15

20

25

30

CREDIT PERIOD

Data Interpretation: This complete sector is based on the credit system because it is high marginal cost and

the retailer pays some amount and some as credit. Because of credit system company can maintain long-term relationship with the

retailers. 50% retailers are having credit facility from existing paint and other hardware

companies are 15days. 14% of the retailers have one month credit period that shoes the bonding between

company and the retailers. That seems that the retailers who have one month credit facility, stocks a huge amount of quantity. They are well experienced in the business.

34% of the retailers have only one week credit facility indicate that they are the new entries to this hardware sector. So none of the companies will not dare to offer credit period more than one week.

Offering credit facility is also a technique to encourage the retailers to stock more in the store.

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14. RECOMMENDATION OF BIRLA SHAKTI BRAND AND ITS PRODUCTS TO OTHER BUSINESS CATEGORIES.

Table:

RATINGS RESPONDENTS1 02 03 04 15 126 87 98 49 1010 6

Graph:

1 2 3 4 5 6 7 8 9 100

2

4

6

8

10

12

14

Series1

Data Interpretation:

The rating shows pretty good because it indicates that the brand Birla Shakti have a positive opinion in the retailer's mind.

The average rating is 7.5 that mean most of the respondents have a trust on the brand that trust leads to increase the sale of this new product Birla Fix Mix.

By this analysis we can state that the retailers strongly recommend this product to the end customers as well as other business categories.

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CHAPTER-5

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FINDINGS

The competition in hardware and painting retail sector is more. Most of the new players are entering into the hardware sector within the span of

5years because of real estate industry developing in the city. Most of the respondents expressed that Birla Shakti is a good brand in the market. Only a few of the hardware retailers are dealing with cement also, so they are only

having relationship with Birla Shakti. Most of the retailers are aware of the Birla Fix - Mix because the company sales team

is promoting the product aggressively around the city. Most of the respondents expressed that they didn’t heard about Birla Fix-Mix kind of

product. Few of the retailers thought that it is only a water leakage product like Dr. Fixit, MYK

Schombarg. We can understand from the response, the product with good quality from branded

company will always succeed in the market. Incentives are key factor which influences the retailer behaviour towards new product

and it motivates the retailers sell this product in the market. A credit facility of the company is based on the relationship with the company and as

well as experience in their respective sector. Most of the retailers are ready to sell this product. Brand awareness is 100% for Birla Shakti.

SUGGESTIONS

Birla Shakti should promote the new product Birla Fix-Mix through all media’s aggressively to sustain in the market for long periods.

Most of the retailers are asking to reduce the price of the product then only customers show the interest to use the product at the initial stage.

Retailer’s wants to make very small size packages like 500grams and 1kg to satisfy the customer requirements. So the company should also reduce the from 2kg pack to small packs.

As it is a new product, the company need to offer incentive schemes and credit facilities to the retailers then only the retailers could show the interest to recommend the product to the customers.

Birla Fix-Mix as it is a new product, so AIDA model is better to promote it.AIDA means

Awareness: creating brand awareness or affiliation with your product or service.

Interest: generating interest in the benefits of your product or service, and sufficient interest to encourage the buyer to start to research further.

Desire: for your product or service through an 'emotional connection', showing your brand personality. Move the consumer from 'liking' it to 'wanting it'.

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Action: Move the buyer to interacting with your company and taking the next step, i.e. Downloading a brochure, making the phone call, joining your newsletter, or engaging in live chat etc.

CONCLUSION

In early days the companies used to manufacture the goods according to the market needs,

but the today business model as changed to customers’ needs. Today’s market is much more

consumer driven and the goods have to be manufactured according to the needs of the

consumer if the producers want to make profit. The consumer has become the king and his

needs bear the greatest importance. Today, companies have realized the importance of

segmenting, targeting and position the goods as the essence of success to their long lasting

existence.

As per retailers perception Birla Shakti has a good brand image in the market. As the

company is going to launch the new product in the market, we conclude from the survey

taken place in West Hyderabad. This present scenario of cut throat competition evidenced by

the advent of globalisation, the corporate world has learned very quickly that differentiating

their products from that of their competitors is of prime importance. From this strategy Birla

Shakti came with a combo pack for the construction like in the mixture of cement, sand etc..,

From the result of this survey, we can conclude that Birla Fix-Mix is going to succeed in the

market, if the company is able to consider the suggestions from the retailers such as reduction

of the price, size of pack into small packs like 500gm and 1kg according to the customer

requirement. As it is a new product need to promote aggressively through all the media into

the market, then only the customer will able to recognise the product.

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BIBILOGRAPHY

http://birlashakti.com/

https://www.kesocorp.com/DOCS/home.php

http://www.ibef.org/industry/cement-india.aspx

https://scholar.google.co.in/

http://www.indianjournals.com/ijor.aspx

http://www.slideshare.net/

REFERANCE:

http://prj.co.in/setup/socialscience/paper26.pdf

http://tobaccocontrol.bmj.com/content/12/2/184.full.pdf+html

http://www.iracst.org/ijcbm/papers/vol3no62014/10vol3no6.pdf

http://raijmr.com/wp-content/uploads/2014/09/2_9-21-Shushilkumar-M.-Parmar.pdf

http://raijmr.com/wp-content/uploads/2014/09/2_9-21-Shushilkumar-M.-Parmar.pdf

http://raijmr.com/wp-content/uploads/2013/03/2_10-15-Dr.-Nilesh-B.-Gajjar.pdf

http://www.saycocorporativo.com/saycouk/bij/journal/Vol3No1/Article_3.pdf

http://s3.amazonaws.com/academia.edu.documents/33944682/1.3.pdf?AWSAccessKeyId=AKIAJ56TQJRTWSMTNPEA&Expires=1468859674&Signature=WXuwuv%2F9Qy0rdPt3aWN6ipyYnTA%3D&response-content-disposition=inline%3B%20filename%3DA_Research_Study_to_Measure_Consumer_Sat.pdf

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Annexure

1. Nature of shop? Hardware & painting Hardware& sanitary Sanitary&tiles others

2. No. of years in business? 0-5 years 6-10 years More than 10 years

3. How you feel when you hear the brand name Birla Shakti? Excellent Good Average Poor

4. Are you dealing with Birla Shakti cement? Yes No

5. Are you aware of new product Birla fix mix from Birla Shakti? Yes No

6. Have you ever heard this kind of product before? Yes No If yes, specify ____________

7. Which of the following attributes enticed you to initially try new product? Low price Good quality Brand name Others____________

8. Are you satisfied with pricing model of this product (2k-80,5k-150)?

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Yes No If YES please answer question No.10

9. How much would you expect to pay for a new product?

2kg________ 5kg________ 50kg_______

10. In your opinion, what would be the best way to advertise the product? Print media & Broadcasting media Indoor display standee Billboards Shutter paints& wall paintings

11. How interested would you be in buying this new product? Extremely interested Somewhat interested Not sure Not at all interested

12. Do you require any Incentive Scheme for this new product? Yes No If yes then mention the scheme ________________

13. What is the credit facility you get in a wholesale business? 1 Week 15 days 30days

14. How likely will you recommend this brand name and its products to other business categories?

Not at all likely extremely likely1 2 3 4 5 6 7 8 9 10

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