shree cement mar. report
TRANSCRIPT
SUMMER TRAINING REPORT
Shree Cement Limited
“Market perception of shree Cement In terms of marketing mix”
Submitted in partial fulfillment for theAward of Degree of
Master of Business Administration
Submitted By :- Submitted To :-SANAT KUMAR NIMBARK MR. MUKESH MACHARAMBA PART- II HEAD OF DEPARTMENTSESSION-2008-10
Institute of Information & Management Sciences7-A, RIICO Institutional Complex, Sitapura, Jaipur- 302 022
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PREFACE
The summer training project of management course plays an important role for a
management student to develop him into a well groomed professional. It provides
him the theoretical concepts and practical exposure in the field of application.
Summer training project also provides him an idea of dynamic and versatile
professional world as well as an exposure to the intricacies and complexities of
the corporate world.
My summer training in SHREE CEMENT LIMITED Jaipur was an eye opening
experience to see the level of customer satisfaction among people of the jaipur
city & local area
During MBA program I was taught about two dozen subjects which if not applied
properly are a simple waste of time. At SHREE CEMENT LMITED I got a
chance to apply management theories to the latest competitive and marketing
oriented environment.
In two months of market exposure, I learned a lot of various aspects of
organizational structure, departments, sales, communication and their impact.
Now I can say one thing that the best way to learn is at work. It was a real
interesting experience and I enjoyed every part of it and hope that it would be
helpful in my future.
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ACKNOWLEDGEMENTS
Successfully accomplished project work and the completion of this report have
been made possible by the significant contributions of many people.
I would like to express my sincere gratitude towards Mr.Naveen Sharma my
organizational guide for giving me the support and encouragement that I needed,
and providing many valuable suggestions and insights for my work. I would also
like to thank my institutional guide Mr. Mukesh Machra for his support.
Finally, I’m grateful to the entire Shree Cement family, for co-operating with me
during my work here.
SANAT KUMAR NIMBARKMBA, Session of 2008-2010
Institute of information & management sciences
Jaipur
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-: CONTENTS :-1 Industry overview 9
1.1 Cement industry in India 9
1.2 Major Players in Indian Cement Industry 10
1.3 Process Technology 11
1.3.1 Raw Materials for Cement Production 11
1.4 Process 11
1.4.1 Stages of Cement Production 12
1.5 Types of Cement 15
1.6 Scale of Operations 17
1.6.1 Industrial production 17
1.7 Exports 20
1.8 Policy Initiatives 22
1.9 Future Outlook 22
1.10 Significant Consolidations 22
1.11 Competitor & Environment Analysis 24
PART-2
2 Company Overview – Shree Cement Limited 25
2.1 Introduction 25
2.2 Vision of SCL 26
2.3 Philosophy of SCL 26
2.4 Mission of SCL 27
2.5 SCL manufacturing units 27
2.6 Business & Managerial Challenges for SCL 30
2.7 Market of SCL 31
2.8 SCL’s Brands & Products 32
2.9 Strengths of SCL 32
2.10 SCL’s Manpower profile 35
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2.11 Key Operational Highlights 36
2.12 Recognition and Awards 42
2.13 SCL vis-à-vis Competitors 42
2.14 Information Technology at SCL 46
2.15 Bangur Cement – SCL’s Premium Brand 48
2.16 Comparison between various cement brands 50
PART-3
3 Marketing research 53
3.1 Classification marketing research 54
3.1.1 Process of marketing research 55
3.2 Research methodology 56
3.2.1 Data collection 57
3.2.2 Area covered 59
3.2.3 Data analysis 60
3.2.4 Findings 69
PART-4
4 Questionnaire 70
Performa of Questionnaire 71
Dealer /sub dealer report 72
PART-5
5.1 Conclusion 78
5.2 Recommendation 79
5.3 Bibliography & webliography 81
List of tables
2.1 Shree- Market Share 26
2.2 Market Classification for Shree Cements Ltd. 32
2.3 SCL Key Figures 42
2.4 SCL figures vis-à-vis competitors 43
2.5 SCL’s Variable Cost Comparison with others 44
2.6 Power Cost Comparison 45
2.7 EBITDA Margin Comparison 45
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EXECUTIVE SUMMARY
Cement is a key infrastructure industry. It has been decontrolled from price and
distribution on 1st March, 1989 and delicensed on 25thJuly, 1991 Moreover it is
the material which plays an important role in building not only the colossal
structures but also our dreams in the form of our houses, keeping us protected
against the changing climate. Our country takes the pride of being the second
largest manufacturer of cement in the world preceded by only China. We have
constantly been exercising one of the best practices of cement production, giving
rise to productivity, quality and efficiency.
The cement industry in India is experiencing a boom on account of the overall
growth of the Indian economy. The demand for cement, being a derived demand,
depends primarily on the industrial activity, real estate business, construction
activity, and investment in the infrastructure sector. India is experiencing growth
on all these fronts and hence the cement market is flourishing like never before.
Indian cement industry is globally competitive because the industry has
witnessed healthy trends such as cost control and continuous technology up
gradation. It is believed that cement demand in India is expected to grow at 10%
annually in the medium term buoyed by housing, infrastructure and corporate
capital expenditures.
As mentioned above, the Indian cement industry is the second largest producer
of quality cement, which meets global standards. The cement industry comprises
more than 50 cement companies with 130 large cement plants with an installed
capacity of 156.26 million tonnes and more than 300 mini cement plants with an
estimated capacity of 11.10 million tonnes making a total installed capacity of
167.36 million tonnes.
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Continuous technological upgradation and assimilation of latest technology has
been going on in the cement industry. Indian cement industry is modern and
uses the latest technology. India is also producing different varieties of cement
like Ordinary Portland cement (OPC), Portland Pozzolana cement (PPC),
Portland Blast furnace Slag Cement (PBFS), Oil Well Cement, Sulphate
Resisting Portland Cement, White Cement, etc.
Future growth of the industry is belief to be driven by expected GDP growth of
more than 8 percent, growth of the housing sector and the development of roads,
ports, airports and other infrastructure.
This project is pertaining to explore the market perception of Shree cement’s
brand vis-à-vis competitors by taking care of all the components of marketing
mix. Keeping main objective of the study in mind the survey has been done in
jaipur city & local area
The methodology of the study contains interacting with distributors and dealers,
questioning them around the various attributes of the market to collect the facts
about the market scenario of the region and eventually exploring their role in
marketing of company’s brand
For past two months, I have been working as a summer trainee on this project
assigned to me . The idea was to study the importance and role of various
factors of the marketing mix in the cement industry in terms of Quality (Product),
Price, Promotional activities, Services to the dealer and Dealers profitability.
The report also throws light on dealer’s opinions and preferences when it comes
to discounts and benefits offered to them and promotional support provided by
company to help dealers. This information is vital to the company in forming its
strategy and schemes to increase its market share.
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To start with an attempt was made to understand and diagnose the prevailing
situation of Shree’s cement. Carrying out the industry analysis, competitor’s
analysis, channel analysis and SWOT analysis did it. To get the real market
scenario, a survey of dealers was conducted to get their perception about the
prevailing situation and to find their expectations.
According to dealer’s feedback Quality, Availability and Profit margin are the
factors on which Bangur is rated high.
A positive relationship was seen between Brand image and Quality of the
cement. Along with this there was no significant relationship between the Profit
margin and the sales.
Survey results confirm that SCL has been able to make a mark in market and
perceived to have good quality and also there is a great demand of cement in
market. But survey results also shows that despite of above mentioned positive
factors it has not been able to make a breakthrough in building its brand name
the reason come out to be its low brand awareness (lack of dealer motivation/
meetings/ advertising) and cut-throat in-house brand competition.
To increase the brand awareness aggressive promotion need to be carried out
ensuring its effectiveness in making a mark, also as survey results confirm that
it’s the dealer/mason/contractor who is the ultimate decision maker in choosing a
brand so efforts need to be made to build long term relationship with all these
people. Meetings, gifts, and kit distribution are the best tool to ensure masons
understanding and satisfaction. As dealer play a prominent role in sale of a brand
every possible effort (like training/ plant visit/ additional margin/ sufficient POP
material distribution/ grace period of three days for payment) need to be made a
strong dealer network.
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PART 1INDUSTRY OVERVIEW
1.1 CEMENT INDUSTRY IN INDIA
Cement industry is a capital intensive and cyclical industry. The demand for
cement is linked to economic activity, can be categorized into two segments,
household construction and infrastructure creation.
The Indian Cement Industry today is the second largest in capacity and
production with an installed capacity of around 157 mtpa after China. The Indian
Industry charted a fast track growth of around 10% per year on an average
during the last decade. Demand has shown an upward surge in recent times
buoyed by housing sector, infrastructure development, and increase in capital
expenditure by corporate and growing retail sector. The cement demand in the
country is expected to grow at an annual rate of 8% for the next five years.
The Indian cement industry is a mixture of mini and large capacity cement plants,
ranging in unit capacity per kiln as low as 10 tonnes per day (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.
The Industry faces several bottlenecks in high cost of inputs like fuel and power,
high taxes and duties and transportation cost. More than 70% of the input cost in
cement manufacture is beyond the control of the industry and is administered by
regulatory authorities. These include royalties and cess on limestone, tariff for
coal, rail transport and power, duties on finished goods, namely, central excise,
local sales tax, octroi, etc.9
The only areas where industry can induce cost controls and economy are
reduction in consumption of inputs like fuel and power through energy efficiency,
improved productivity through planned maintenance and reduction of stoppages,
etc. The continuous efforts by the industry in these areas have brought in good
results. It is noteworthy that the energy consumption by the most efficient cement
plants in India at the level of 665 Kcal per kg of clinker and 69 kWh per tonne of
cement are comparable with the best achieved in the world.
1.2 Major Players in Indian Cement Industry:
Domestic players:1.) ACC Limited
2.) Ambuja Cements Limited
3.) Birla Corporation Limited
4.) UltraTech Cement
5.) Binani Cement
6.) Shree Cements Limited
7.) India Cements
8.) J K Cement
9.) Grasim
10.) Jaypee Group
11.) Madras Cements
12.) Century Textiles
Major foreign players: 1.) Holcim
2.) Lafarge
3.) Italcementi
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1.3 PROCESS TECHNOLOGY
1.3.1 Raw Materials for Cement ProductionCement is usually used in mortar or concrete. Here it is mixed with inert material
(called aggregate), like sand and coarse rock. Portland cement consists of
compounds of lime mixed with oxides like silica, alumina and iron oxide.
There are three major raw materials for cement:
1.) LimestoneLimestone is the main raw material and is the source of calcium carbonate.
Calcium carbonate is burnt to obtain calcium oxide (CaO). The other sources of
calcium carbonate are marl, chalk, seashell and coral reef. Limestone is the most
abundant source of CaO. The other user industries for limestone are iron & steel,
fertilizer and chemicals. Cement is the biggest limestone user in
India accounting for over 75-80% of limestone produced in India. The
composition of limestone used by the various sectors varies. For cement, the
CaO content of limestone should be a minimum of 44%. Typically, 1.4-1.5 tonnes
of limestone are required per tonne of clinker. Thus, for a 1 million tonne cement
plant, assured availability of cement grade limestone reserves of the order of 50-
60 mt in the close vicinity is important.
2.) GypsumGypsum is used as a retarding agent. Ground clinker, on contact with water,
tends to set instantaneously because of the very fast reaction between tri-
calcium aluminates and water. In the presence of gypsum, the desired setting
time can be achieved. Gypsum is added to the extent of 5% during the clinker
grinding stage. Gypsum is naturally available in abundance in Rajasthan, Gujarat
and Tamilnadu.11
3.) Granulated Blast Furnace Slag (GBFS) and Fly AshThe other raw materials that are also used in the manufacture of cement are
blast furnace slag (a waste product obtained from iron-smelting furnaces) and fly
ash (leftover ash from a thermal power station). Limestone contains about 52%
of lime and about 80% of this lime is lost during ignition of the raw materials.
Similarly, Clay contributes about 57% silica of which about 25% is lost during
ignition. GBFS is obtained by granulation of slag obtained as a by-product during
the manufacture of steel. It is a complex calcium aluminium silicate and has
latent hydraulic properties. That is why it is used in the manufacture of Portland
blast furnace slag cement.
1.4 PROCESS
1.4.1 Stag es of Cement Production
There are seven stages of cement production at a cement plant:
1. Procurement of raw materials2. Raw Milling - preparation of raw materials for the pyroprocessing system3. Pyroprocessing - pyroprocessing raw materials to form cement clinker4. Cooling of cement clinker5. Storage of cement clinker6. Finish Milling7. Packing and loading
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Figure 1.1: Cement manufacturing from the quarrying of limestone to the bagging
of cement
While adding fresh capacities, the cement manufacturers are very conscious of
the technology used. In cement production, raw materials preparation involves
primary and secondary crushing of the quarried material, drying the material (for
use in the dry process) or undertaking a further raw grinding through either wet or
dry processes, and blending the materials.
Clinker production is the most energy-intensive step, accounting for about 80% of
the energy used in cement production. Produced by burning a mixture of
materials, mainly limestone, silicon oxides, aluminium, and iron oxides, clinker is
made by one of two production processes: wet or dry; these terms refer to the
grinding processes although other configurations and mixed forms (semi-wet,
semi-dry) exist for both types.
In the dry process, the raw materials are ground, mixed, and fed into the kiln in
their dry state.
In the wet process, the crushed and proportioned materials are ground with
water, mixed, and fed into the kiln in the form of slurry.13
The choice among different processes is dictated by the characteristics and
availability of raw materials. For example, a wet process may be necessary for
raw materials with high moisture content (greater than 15%) or for certain chalks
and alloys that can best be processed as a slurry. The dry process is the more
modern and energy-efficient configuration. In general, the dry process is much
more energy efficient than the wet process, and the semi-wet somewhat more
energy efficient than the semi-dry process. The semi-dry process has never
played an important role in Indian cement production and accounts for less than
0.2% of total production.
In 1960, around 94% of the cement plants in India used wet process kilns. These
kilns have been phased out over the past 46 years and at present, 96.3% of the
kilns are dry process, 3% are wet, and only 1% are semidry process. Dry process
kilns are typically larger, with capacities in India ranging from 300- 8,000 tonnes
per day or tpd (average of 2,880 tpd). While capacities in semi-dry kilns do range
from 600-1,200 tpd (average 521 tpd), capacities in wet process kilns range from
200-750 tpd (average 425 tpd).
Over the last decade, increased preference is being given to the energy efficient
dry process technology so as to obtain a cost advantage in a competitive market.
Moreover, since the initiation of the decontrol process, many manufactures have
switched over from the wet technology to the dry technology by making suitable
modifications in their plants. Due to new, even more efficient technologies, the
wet process is expected to be completely phased out in the near future. Due to
the dominant use of carbon intensive fuels such as coal in clinker making, the
cement industry has been a major source of carbon dioxide (CO2) emissions.
Besides energy consumption, the clinker making process also emits CO2 due to
the calcining process.
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1.5 TYPES OF CEMENT
There are different varieties of cement based on different compositions according
to specific end uses, namely, Ordinary Portland Cement, Portland Pozzolana
Cement, White Cement, Portland Blast Furnace Slag Cement and Specialised
Cement.
The basic difference lies in the percentage of clinker used.
1.) Ordinary Portland Cement (OPC):OPC, popularly known as grey cement, has 95 per cent clinker and 5 per cent
gypsum and other materials. It accounts for 70 per cent of the total consumption.
2.) Portland Pozzolana Cement (PPC):PPC has 80 per cent clinker, 15 per cent Pozzolana and 5 per cent gypsum and
accounts for 18 per cent of the total cement consumption. It is manufactured
because it uses fly ash/burnt clay/coal waste as the main ingredient.
3.) White Cement:White cement is basically OPC - clinker using fuel oil (instead of coal) with iron
oxide content below 0.4 per cent to ensure whiteness. A special cooling
technique is used in its production. It is used to enhance aesthetic value in tiles
and flooring. White cement is much more expensive than grey cement.
4.) Portland Blast Furnace Slag Cement (PBFSC):PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per
cent gypsum and accounts for 10 per cent of the total cement consumed. It has a
heat of hydration even lower than PPC and is generally used in the construction
of dams and similar massive constructions.
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5.) Specialised Cement:Oil Well Cement is made from clinker with special additives to prevent any
porosity.
6.) Rapid Hardening Portland cement:Rapid Hardening Portland Cement is similar to OPC, except that it is ground
much finer, so that on casting, the compressible strength increases rapidly.
7.) Water Proof Cement:Water Proof Cement is similar to OPC, with a small portion of calcium stearate or
non- saponifiable oil to impart waterproofing properties.
In India, the different types of cement are manufactured using dry, semi-dry, and
wet processes. In the production of Clinker Cement, a lot of energy is required. It
is produced by using materials such as limestone, iron oxides, aluminium, and
silicon oxides. Among the different kinds of cement produced in India, Portland
Pozzolana Cement, Ordinary Portland Cement, and Portland Blast Furnace Slag
Cement are the most important because they account for around 99% of the total
cement production in India.
The Portland variety of cement is the most common one among the types of
cement in India and is produced from gypsum and clinker. The Ordinary Portland
cement and Portland Blast Furnace Slag Cement are used mostly in the
construction of airports and bridges. The production of white cement in the
country is very less for it is very expensive in comparison to grey cement. In
India, while cement is usually utilized for decorative purposes, marble foundation
work, and to fill up the gaps between tiles of ceramic and marble.
The different types of cement in India have registered an increase in production
in the last few years. Efforts must be made by the cement industry in India and
the government of India to ensure that the cement industry continues innovation
and research to come up with more and more varieties in the near future.
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1.6 SCALE OF OPERATIONS
The cement industry has witnessed a significant change in the scale of
operations. In 1961, the largest kiln in operation had a capacity of 750 tpd. In
1970, of the total 119 kilns, 1 had over 1,000 tpd capacity, with 55 having less
than 400 tpd capacity. In 1980, 11 of the total 141 kilns were over the 1000 tpd
mark, with 1 kiln having a capacity larger than 3,000 tpd (roughly 1 mtpa). The
1990s saw still higher capacity 4500-5000 tpd (or 1.5 mtpa) kilns. The recent
practice for a large size plant is to have 6,500-7,000 tpd (or 2.5 mtpa) capacity.
1.6.1 Industrial production:
The cement industry is enhancing its production levels as new homes and offices
are being built, and in keeping with the economy’s annual growth rate. According
to the Cement Manufacturers Association, the overall cement production rose by
8.11 per cent during 2007-08 to 168.29 million tonnes (mt) as against 155.66 mt
in 2006-07.
Table 1.1 : Statistics
Cement (million tonnes)
2006-07 2007-2008
(Apr-Mar)
(a) Production 155.66 168.31
(b) Dispatches (Including Export) 155.26 167.67
(c) Export 3.65 5.89
(d) Cap. Uti. (%) 96 94
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Source: Cement Manufacturers’ Association
PRODUCTION SITES OF VARIOUS BRANDS OF CEMENT
BRAND NAME PRODUCTION SITE
Shree Beawer Distt. Ajmer
Bangur Rass Distt. Pali. Jetaran
Cemento Rass Distt. Pali. Jetaran
Ambuja Rabriyawas Distt. Pali. Jeteran
Binani Pindwada Distt. Sirohi
Ultra Tack Shambhupura Distt. Chittorgarh
Birla Chetak Chittorgarh
Birla Uttam Modak Distt. Kota
J.K. Laxmi Banas Distt.Sirohi
J.K. Super Nimbaheda Distt. Chittorgarh
ACC Lakheri, Distt. Bundi
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Table 1.2: Production and growth rates
CEMENT PRODUCTION Weight: 1.99%Month
Production (Thousand Tonnes) Growth Rates (%)
2005-06 2006-07 2007-08 05-06 to
06-07 06-07 to
07-08April 12240 13730 14520 12.2 5.8May 12630 13490 14820 6.8 9.9June 12010 13410 14220 11.7 6.0July 11160 12720 13910 14.0 9.4August 11160 11480 13400 2.9 16.7September 10845 12630 13310 16.5 5.4October 12218 13370 14370 9.4 7.5November 11599 12970 13650 11.8 5.2December 12968 14010 14630 8.0 4.4January 13571 14550 15360 7.2 5.6February 12757 13500 15230 5.8 12.8March 14650 15450 16890 5.5 9.3Cumulative Total (Apr-Mar) 147808 161310 174310 9.1 8.1
Source : Department of Industrial Policy & Promotion
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Figure 1.2: Growth rate (%) in Cement Production
1.7 EXPORTS
The export of Indian cement has increased over the years, giving a boost to the
Indian cement industry. The demand for cement in the foreign countries is a
derived demand, for it depends on industrial activity, real estate, and construction
activity. The cement industry in India has around 300 mini cement plants and 130
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large cement plants. The total production capacity of these plants is around
167.36 million tons. The India cement industry is technologically very advanced,
as a result of which the quality of Indian cement is now considered the second
best in the world. This has given a major boost to the Indian export of cement.
The production of cement in India is not only able to meet the domestic demand,
but large amounts are also exported. A fair amount of clinker and cement by-
products are also exported by India. As the quality of Indian cement is very good,
its demand in the international market is always high.
In 2001-2002, 3.38 million tons of cement was exported from India. That figure
stood at 3.47 million tons in 2002-03, and 3.36 million tons in 2003-04. In 2001-
2002, 1.76 million tons of clinker was exported from India. In 2002- 2003 clinker
exports amounted to 3.45 million tons, and in 2003- 2004 the figure stood at 5.64
million tons. This shows that the export of Indian cement has been increasing at
a steady pace over the years. Export of India cement has been mostly to the
West Asian countries.
The major companies exporting Indian cement are:
• Gujarat Ambuja
• Ultra Tech Cement
• Aditya Cement
Export of Indian cement has registered growth a fair amount of growth, giving a
boost to the Indian economy. That it continues to rise, more efforts must be made
by the cement industry in India and the government of India.
The types of cement in India have increased over the years with the
advancement in research, development, and technology. The Indian cement
industry is witnessing a boom as a result of which the production of different
kinds of cement in India has also increased.
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By a fair estimate, there are around 11 different types of cement that are being
produced in India. The production of all these cement varieties is according to the
specifications of the BIS.
1.8 POLICY INITIATIVES
FDI Policy: the cement sector has been gradually liberalized. 100 per cent FDI is
now permitted in the cement industry.
1.9 FUTURE OUTLOOK
Considering an expected production and consumption growth of 9 to 10 per cent,
the demand-supply position of the cement industry is expected to improve from
2008-09 onwards, resulting in an expected price stabilization. The cement
industry is poised to add 111 million tones of annual capacity by the end of 2009-
10 (FY 10), riding on the back of an estimated 141 outstanding cement projects.
1.10 SIGNIFICANT CONSOLIDATIONS
As discussed earlier in this report, the cement industry is witnessing a number of
Mergers & Acquisitions (M&As). The extent of concentration in the industry has
increased over the years.
This concentration is mainly because of the focus of the larger and the more
efficient units to consolidate their operations by restructuring their business and
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taking over relatively weaker units. The relatively smaller and weaker units are
finding it difficult to withstand the cyclical pressure of the cement industry.
Some of the key benefits accruing to the acquiring companies from these
acquisition deals include:
Economies of scale resulting from the larger size of operations
Savings in the time and cost required to set up a new unit
Access to new markets
Access to special facilities / features of the acquired company
Benefits of tax shelter.
The relative market share of large players in the cement industry has changed
significantly over the years. Consolidation of capacities has seen UltraTech,
Grasim, India Cement and Gujarat Ambuja emerging as the leading players in
India apart from ACC, which has been the market leader during all the years
excepting FY2001. All the players have resorted to a combination of Greenfield
capacities as well as takeover of existing capacities for growth.
Some examples of the consolidation witnessed among domestic players in the
recent past include:
Gujarat Ambuja taking a stake of 14 per cent in ACC
Gujarat Ambuja taking over DLF Cements and Modi Cement.
ACC taking over IDCOL
India Cement taking over Raasi Cement and Sri Vishnu Cement
Grasim's acquisition of the cement business of L&T
Grasim taking over Indian Rayon's cement division.
Grasim taking over Sri Digvijay Cements.
L&T taking over Narmada Cements
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1.11 Competitor & Environment Analysis
PORTER’S MODEL
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Figure 1.3: Porter’s model
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PART 2COMPANY OVERVIEWShree Cement Limited
2.1 INTRODUCTIONBeing among the top ten cement producers in the country Shree Cement Limited
(SCL) enjoys a market share of about 16 per cent in Northern region of India.
Over the years, Shree Cement has built an identity as one of the world’s most
efficient cement manufacturers. First of all, its production has been consistently
in excess of its rated capacity. Secondly company’s per tonne energy
consumption is one of the lowest in the world. And also it has a unique distinction
of operating both its cement as well as captive power plant on alternative fuel.
Table 2.1: Shree- Market Share
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The BG Bangur family is the principal promoter of Shree Cement. Mr. H. M.
Bangur is the Managing Director while Mr. M. K. Singhi is the current executive
director of Shree Cement. It is located at Beawar, in Ajmer district 185 Kms. from
Jaipur off the Delhi-Ahmedabad highway.
2.2 Vision of SCLTo register a strong consumer surplus through a superior cement quality at
affordable prices.
2.3 Philosophy of SCLShree Cement is guided by the philosophy that productivity will lead to
profitability which ultimately will lead to the prosperity of the region and all
concerned with SCL.
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2.4 Mission of SCLThe mission of the organization is highlighted by the following.
To sustain its reputation as the most efficient cement manufacture in the
world.
To strengthen realizations through intelligent brand building.
To drive down cost through innovative plant practices.
To increase the awareness of superior product quality through a realistic
and convincing communications process with consumers.
2.5 SCL manufacturing unitsPresently Shree Cements has three units. Two units are at Beawer (incorporated
in 1979 and1997) and third unit is at Ras (Started in 2005). Fourth unit at Ras
has been started in March 2007 and another two units at Ras and Khushkhera
near Alwar are also started to enhance the capacity of the company to 10 mtpa
from the present figure of 6 mtpa by the year 2010. The proximity to Delhi, Jaipur
and Haryana, which are the most lucrative markets in the region, makes it a
strategic location.
UNIT-1Incorporated in 1979.
Put up in 1985.
Cement Production (Expected Production) – 1.20 million tonnes
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UNIT-2Put up in 1997.
Cement Production (Expected Production) – 2.10 million tonnes
UNIT – 3Incorporated in 2005
Cement Production (Expected Production) – 1.50 million tonnes
UNIT – 4Incorporated in March 2007
Cement Production (Expected Production) – 1.50 million tonnes
UNIT - 5Started in Ras,
Unit – 6Grinding unit at Kuskhera in Rajasthan.
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Figure 2.1: SCL Production vis-à-vis Market Share in Northern Region
The growth of company’s market share is going hand in and with its production,
supporting its cyclical business model of produce more-sell more-reinvestment
more. Capacity enhancement at SCL has also been considerable from its 0.6
mtpa in 1985 growing 10 times to 6 mtpa presently and is projected to touch a
figure of 10 mtpa by 2010.
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Figure 2.2: Per Annum Capacity Enhancement at SCL.
2.6 Business & Managerial Challenges for SCLCement market for SCL is highly competitive with major competitors having
advantage of brand equity, capacity and early movers. The major competitors are
Binani, Birla (with products like Birla Super and Birla Chetak), Grasim (with
products like Vikram and Birla Plus), Gujarat Ambuja, JK (with products like JK
Nimbahera), Laxmi, Mangalam (with products like Mangalam and Birla Uttam),
ACC, DCM Shriram, L & T and Kamdhenu. Each of these players has their
dominance across whole Rajasthan in addition to their respective regional
dominance.
Another issue is that the product (cement) cannot be differentiated clearly on the
basis of quality and hence, cost plays one of the most important roles in this
industry. If the company can control cost of manufacturing & distribution, then
only would profitability of the company increase.
Logistics is the most important cost associated with cement industry. This is the
single most important reason for strong dominance of all cement companies in
31
the regions around their factory. But if this system can be improved upon, and
costs can be managed, then Shree Cements Ltd. can strengthen their hold in
present states of distribution as well as look forward to gaining foothold in newer
and farther regions.
2.7 Market of SCLEach cement manufacturer has a primary and secondary market. The former is
one, which is the closest to the production centre where it fetches the best
realizations while the latter is usually at a distance where realizations are lower.
Table 2.2: Market Classification for Shree Cements Ltd.
SCL with a market share of 16% has the second largest market presence in the
northern region, next only to the Gujarat Ambuja Cement and ACC combined.
SCL positioning within Rajasthan (in the north of the state) makes it the closest
among all Rajasthan manufacturers to the lucrative markets of Delhi, Haryana
and some parts of Punjab, giving it a significant edge in transport costs. The
other cement units are located further down, at distances ranging from 150- 200
kilometres.
Shree Cements is one of the largest cement companies in North region having
existing capacity of 5.5mn tonnes of cement per annum located in central
Rajasthan. The company primarily caters to Rajasthan, Punjab, Haryana, Delhi
32
and Uttranchal in the Northern region and Uttar Pradesh in Central region.
Rajasthan accounts for approximately 30% of the company's sales while Delhi
and Haryana together account for approximately 40% of sales.
2.8 SCL’s Brands & ProductsShree manufactures:
• Ordinary Portland Cement (OPC)
• Red Oxide Cement (ROC)
Its output is marketed under the ‘Shree Ultra Ordinary Portland Cement’ and
‘Shree Ultra Red
Oxide Cement’ brand names. The product today constitutes almost 37% of
SCL’s sales. Under its premium products category, SCL has launched ‘Bangur Cement’ Dec. 2005 and a new brand
‘Tuff Cemento 3556’ has been introduced in the market in April 2007. The
company positioned its brands around longer life (durability), emphasizing
product longevity.
2.9 Strengths of SCL1.) Low Cost Producer: SCL is one of the lowest cost producers of cement in
India. The prime reasons behind this are captive power plants, use of pet coke in
both captive power plant and kiln and proximity to the markets.
2.) Limestone Reserve: SCL has a total of 700 mn tones of limestone reserve
which would be sufficient to meet its requirements for the next 40 years. Shree
Cement's third unit is located at the pithead of limestone reserve unlike the other
two units in Beawar, Rajasthan. Unit IV, which is expected to be commissioned in
FY08, would also be located at the pithead of company's limestone reserve. As
the new plants are located at the pithead of limestone reserve, the raw material
33
cost per ton of cement is expected to go down as the company would be saving
in cost of transportation.
3.) Captive Power Plants: During FY05, the company sourced 99% of power
requirement from its captive power plant. The company has existing power plant
capacity of 42 MW. The company is installing additional power plant of 18 MW
capacities, which would supply power to its new cement units, thereby ensuring
continuation of self sufficiency in terms of power requirement. Shree Cement's
power usages per ton of cement at 75 Kwh is amongst the lowest in the industry.
The company uses low cost pet coke in both its power plants and kiln. Pet coke
is not only cheaper compared to the imported coke but also has high calorific
values thereby reducing the overall cost.
4.) Strong sales network of 28 sales offices, 1200 dealers and 4000 retailers.
5.) Progressive Management: Shree Cement supplemented its attractively low
capital investment per tonne with one of the lowest manufacturing costs in the
Indian cement industry. The path of sustainable growth has been made possible
because of management strategy of taking triple bottom-line approach of
Economic, Environmental and Social performance listed below:
Figure 2.3: Progressive Management
34
6.) Mining: Limestone being the predominant raw material, Shree Cement plants
are situated near limestone quarry fields. To minimize the transportation cost,
Shree Cements has leased two mines one at Beawer and other at Ras with
reserves that will last for a long time. The Ras mines give a limestone of very
good quality which is easier to process.
35
Figure 2.4: SCL Captive Power Generation
2.10 SCL’s Manpower profile
Well experienced and skilled manpower resources capable of handling
both project implementation and operations.
The skill enhancement is a regular exercise under a well defined training
manual.
Company imparts more than 20,000 hours of in-house training to its
employees every year
36
Figure 2.5: Manpower profile at SCL
2.11 Key Operational Highlights The cost of production of the Company is one of the lowest in India
Operating profit margin is highest in World Cement Industry
100% self sufficiency in meeting power requirement
100% self dependent on limestone sourcing
Consistent dividend paying company (2005-06: 50%)
Recognized as one of the most Energy Efficient units in India
Fastest growing cement company in India (capacity more than trebling in 3
years from 26 LTPA in 2004-05 to 95 LTPA in 2008-09)
Strong brand image – Bangur Cement, Shree Ultra Red Oxide Cement
and Shree Ultra Ordinary Portland Cement have high consumer recall.
New super premium brand Tuff Cemento produced with German
technology has a lot of expectations.
37
Initiatives for global warming reduction
Pioneered in the application of innovative Electro static precipitator technology in Dg power generation to save fuel and combat pollution, and replaced HSD by LDO.
Achieved unity power factor
… In electrical distribution system to reduce maximum demand, and transmission / distribution losses
Partial utilization of waste heat
… For 3 MW power generation.
Initiator in the use of pet coke for power generation in India
36 MW captive thermal power plant under commissioning to generate quality power for the plant, avoid transmission and distribution losses, and provide surplus power to Rajas than.
SAVINGS: Rs 496.46 Million pa
Development of DD conesIn house development of deduiling cones cyclones resulting in reduction in pressure drop, higher outputs and lower energy consumption.
Single roller press for tow Ball Mills
Capacity enhancement & utilization of CM –2 Roller press for capacity increase and energy saving increase CM –1, Energy saving –2.02 KWH / The
Objective, CSI (Cement sustainability initiative)
1. The purpose of the Cement Sustainability Initiative is to:2. Explore what sustainable development means for the participating
companies and the cement industry.
38
3. Identify and facilitate actions that companies can take as a group and individually to accelerate the move towards sustainable development.
4. Provide a framework through which other cement companies can participate, and
5. Provide a framework for engaging external stakeholders.
Agenda, CSI
The 10 companies involved in the CSI have chosen to develop an agenda for three reasons:To prepare for a sustainable future by making a more efficient use of natural resources and energy, and engaging with lock issues increase emerging market
To meet the expectations of stakeholders and maintain their ‘license to operate’ increase communities across the world through a greater transparency of operations effective engagement with society and initiating action, which lead to sustained positive changes, and
To individually understand and build new market opportunities through process innovation, which achieve greater resource/ energy efficiency and long – term coos savings; product and service innovation to reduce environment impacts and work with other industries on novel uses of – product and waste material in cement production.
The companies have identified six key areas where they believe that the CSI can make a significant contribution towards a more sustainable society:
Climate protection.
Fuels and raw materials.
Employee health and safety.
Emissions reduction.
Local impacts.
Internal business processes.
Productivity39
Shree Cement supplemented its attractively low capital investment per tonne with one of the lowest manufacturing costs in the Indian cement industry.
Timely execution of Unit-III along with better price realization and cost optimization measures made the year a hallmark for the Company:-
The turnover of the Company has more than doubled during the year. The operating profit margin of the Company at 44.84% is highest in the
Indian cement industry. The proportion of blended cement in the total production has increased to
76% in the current year against 54% in the previous year. Company started use of wet fly ash for producing blended cement which is economical and environment friendly.
The capacity utilization level of the Company further improved during the year from 114% to 116% with Unit-III recording 99% in its very first full year of operation. This compares well with the all India average of 94%.
Continued thrust on improving energy consumption levels has brought down power and fuel consumption as under:
40
Although Power consumption for the year indicates marginal increase during the year, the unit-wise consumption has gone down from last year. The
Reduction in energy consumption with increasing production base has significantly contributed to cost efficiency of the Company.
Dynamic and efficient logistic management practices have enabled Company to contain increase in freight cost in spite of rising diesel prices and loading restrictions on trucks. Company has made optimal use of its in-house railway sidings facility with appropriate route plan to limit freight cost.
The Company's marketing strategy of maintaining multiple brands competing with each other with a view to garner increased market share has yield good returns. As a result,
Company has retained market leadership status in Rajasthan and Delhi.
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“Jung Rodhak” brand has further strengthened its presence in its segment in the North India market.
“Bangur Cement” launched last year in the premium quality segment, has been well received in the market and has been improving its market share. Its marketing strategy of appointment of Business associates and Business partners has enabled the Company to keep its debtors levels at zero and minimizing the Working Capital requirement.
Company has introduced another premium quality brand “Tuff Cemento 3556”. The new brand has started attracting customer’s attention and is getting good response.
The proportion of trade sale to total sale increased during the year from 66% to 74% showing higher customer recall and satisfaction.
The Company continued with its highest credit rating of PR1+ for its short-term debt and AA for its long-term debt enabling containment of its cost of funds despite large borrowing requirements for its capital expenditure programme
The interest cost has been kept at a low level in the rising interest rate environment through optimal utilization of funds and judicious mix of rupee and fully hedged foreign currency borrowings.
Timely execution of projects is a hallmark of the Company. The 1.5 MTPA capacity expansion with captive power plant of 18 x 3 MW completed in Feb 08 has been achieved well within the targets both time and budget.
During the year Company has undertaken implementation of an “Enterprise Resource Planning” (ERP) Project with Oracle E-Business Suite to manage its expanding business operations. ERP Project shall help it in improving its business matrices by process optimization, improving logistics and integration across disciplines. The project is expected to be operational in FY 2008-09.
42
Table 2.3: SCL Key Figures
2.12 Recognition and Awards• Whitehopleman UK - International Cement Consultants have consistently
maintained 4 star rating for Shree since 2000 (No one in the world has been
assigned a 5 star rating!!)
• Excellence in Energy Management Award 2006 from Confederation of Indian
Industry for the second time
• National Awards for Energy Conservation and Best Thermal and Electrical
Energy from
Ministry of Power, Govt of India
• National Safety Awards by Ministry of Labour, Govt. of India
• ICWAI National award 2005 for excellence in cost management
• Golden Peacock Award-2006 &2008 in recognition of its excellent Environment
Management practices
2.13 SCL vis-à-vis CompetitorsSCL has been omnipresent in the performance with various achievements within
a short period of time. Following figures suggests that it has been doing the best
job among its peers in terms of high capacity utilization, low power consumption,
low power generation cost, and low fuel consumption ratio.
43
Table 2.4: SCL figures vis-à-vis competitors
It has also been encountering the lowest Variable Cost in its peer group because
of its constant efforts in saving cost of power and fuel consumption which is not
only the lowest but is approx. 75% of the average of other players. Freight and
selling expenses of for SCL is also the lowest amongst all.
44
Table 2.5: SCL’s Variable Cost Comparison with others
SCL’s ability to produce cement with lowest power consumption and other low
costs of production and raw material procurement has resulted into the top
EBITDA Margin figures for SCL amongst all its competitors.
45
Figure 2.6: Power Cost Comparison
Figure 2.7: EBITDA Margin Comparison
46
2.14 Information Technology at SCLSCL has embraced Information Technology in a big manner and made
investments to establish strong IT infrastructure:
• IT Policy & Quality Standards: SCL has clearly defined IT policy. Backup and
Disaster
Recovery Policy, SCL Internet/Network Access Policy and Business Continuity
Plans have been endorsed and religiously implemented.
• ‘SUMriddhi’ - Shree Enterprise Resource Planning: The Shree ERP
programme, christened ‘SUMriddhi’, was developed deploying Oracle 9i RDBMS
and Developer 2000 platform. A comprehensive ERP program was designed to
integrate all functional modules, namely Financial Accounting & Costing (FA),
Material Management (MM), Personnel and Payroll (PP), Laboratory and Quality
Control, Integrated Management System (IMS) and Raw Material Procurement
(RMP) with the objective to make operations online. The company expects to
implement ERP ‘live’ across the organisation in 2004-05.
• Online operations of Sales and Distribution: Company successfully
implemented the computerization of its sales and distribution functions by
integrating all branches/dealers through a secured connectivity with the plant for
online order processing. In the second phase, necessary enhancements will
make the system work in a centralized manner using dedicated and secure
Virtual Private Network (VPN) across its branch/dealer network.
• SCL’s IT Infrastructure: The Company has a scalable, state-of-the-art IT
network infrastructure, with optic fibre cable-based gigabit backbone, high-end
layer 3 switches, Cisco routers and IBM corporate-computing servers. Shree has
a secure network across its corporate and site locations with e-trust firewall
supplemented with intrusion detection system and Active Virus Defense Solution
47
from Network Associates. The organisation is provided with the latest computing
tools in hardware and software.
• SCL’s corporate website: The Company launched its content-exhaustive
corporate website shreecement.com on 1 August 2003. The portal is dynamic,
informative and user-friendly with a menu-driven interface. The website contains
the latest information about the company with news flashes and a photo gallery.
The website is e-commerce enabled, which provides access to customers on
their latest account statement and vendors/ suppliers on order positions for the e-
procurement program.
• E-Procurement: Shree implemented an e-procurement programme to facilitate
purchases through the reverse auction process to maximize price benefits and
transparency.
• Paperless office: Shree is moving towards the ultimate goal of achieving a
paperless office environment through a widespread use of e-mails and instant
messaging for daily communication across all its offices. A program was
undertaken for storing and cataloguing the huge archive of blueprints of technical
drawings in a digitised form for instant accessibility.
• Raw material procurement: The entire raw material procurement operation
was integrated with ‘SUMriddhi’ - Shree ERP, to increase efficiency and control.
• Training: Shree is committed to enhance the IT skills of not only employees
across all functions but their family members as well. As a result, training is an
ongoing process and more than 200 personnel were imparted training across
departments.
• Online Knowledge management: Shree has launched a platform for sharing
knowledge across the enterprise. A knowledge management tool was developed
48
and implemented through which people across all levels can contribute and
share achievements, domain expertise, social and cultural ideas. This also
provides a ‘public folder’ for up-to-date information on the cement industry and
the company.
• Network Security: SCL network is protected by the high end e-Trust Firewall
from Computer Associates and Network Associates Intrusion Detection System
(IDS). SCL has implemented Network Associates Active Virus Defence for virus
protection and SPAM control. All network resources are protected by adopting
strong password policies. SCL has enforced three-layer security for all data and
information systems.
2.15 Bangur Cement – SCL’s Premium Brand
Bangur cement started with a vision to be the most effective and efficient cement
brand of the country. As in Bangur cement, SCL aimed at providing the best
quality cement that ensures customer satisfaction. The Bangur cement is
advertised with a tagline saying “The best, not inexpensive”.
To serve the fast growing National Capital Region (NCR) with immediate and
prompt services, Bangur cement is establishing a grinding capacity at Khuskhera
in Alwar District of Rajasthan, which is just 80 kms away from the capital.
Excelling in the quality, price, availability and packaging of the product, SCL
aspires to be the first choice of the consumers. The Bangur cement plant is one
of the most modern and sophisticated plants in the India equipped with state-of-
the-art German Technology.
49
Following factors makes Bangur cement, the SCL’s premium brand:
Best Quality of Lime Stone: The Ras belt is among the finest quality
limestone deposits in India. Importantly, it is a single source of limestone
belt where all necessary ingredients of cement are available in limestone
and there is no dependency on outside sources, thus enabling
consistency in quality.
Better Quality Control, Clinkerisation and superior cement grinding
makes the quality of the brand one of the best in the industry. State-of-the-art technology: The plant has been set up in the technical
collaboration with internationally acclaimed German cement manufacturer.
In line with its marketing strategy, Bangur cement realized sales predominantly in
the trade segment. The brand contribution to more then 40% of the trade sale of
the company, registering 14.20 Lac MT sales out of the total of 35.92 Lac MT .In
fact , trade sales accounted for 95% of total sales of BANGUR CEMENT while
non trade sales was just 5%. BANGUR CEMENT registered its 55% sales of its
total sales in its home market, Rajasthan. By selling within a smaller radius, the
company was able to notch higher net realization because of lower logistics.
MARKET SHARES: - Rajasthan-9%, Haryana-6%, Delhi-4%.
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2.16 COMPARISON OF POTENTIALITYOF VARIOUS CEMENT BRANDS
COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN
BRAND NAME SALES (IN MATRIC TONES)
AMBUJA 121000
ULTRA-TACH 145000
BINANI 103000
BANGUR 55000
SHREE ULTRA 100000
TUFF CEMENTO 40000
J.K.LAXMI 83000
ACC 17000
MANGLAM 40000
BIRLA CHETAK 81000
J.K.SUPER 65000
SHREE RAM 6000
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COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN (IN TRADE)
BRAND NAME SALES (IN MATRIC TONES)
JAIPUR DISTRICT JAIPUR LOCAL
AMBUJA 25000 17000
ULTRA-TACH 26000 14000
BINANI 12000 10000
BANGUR 6500 4000
SHREE ULTRA 8500 7500
TUFF CEMENTO 4500 3000
J.K.LAXMI 7500 5500
ACC 4500 3000
BIRLA UTTAM 4000 3000
BIRLA CHETAK 5000 3000
J.K.SUPER 6500 5000
52
Figure 2.8 COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN (IN TRADE)
53
PART-3
MARKET RESEARCH
3 MARKETING RESEARCH
Marketing research in the systematic gathering, recording and analyzing of data about problems connected with the market place i.e. H.P’s in order to find justified solutions for the problem.
IMPORTANCE
Consumer oriented marketing.
Effective managerial decision.
Identification of opportunities.
Reduces risk.
Stimulates sales.
Assessment of real image of company.
Integrating the company and consumer interest.
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3.1 CLASSIFICATION OF MARKETING REASEARCH
1. Research on consumer
Studying consumer tastes, reactions and brand preference. Customer satisfaction study.
2. Research on market
Study on market size / potential / market growth.
Study on market segment.
Detailed market surveys.
3. Research on distribution:
Measuring dealer reaction to the company and its products and services.
Distribution cost Analysis.
4. Research on advertising effectiveness.
Studies on advertising effectiveness.
Studies on media.
Assessing and effectiveness and ad impact.
Studies on sales promotion effectiveness.
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3.1.1 PROCESS OF MARKETING RESEARCH
PROBLEM FORMULATION
DETERMINATION OF RESEARCH OBJECTIVE
PLANNING AND CONDUCTFORMAL INVESTIGATION
COLLECTION OF PRIMARY DATA
DATA PROCESSING ANALYSIS AND INTERPRETATION
REPORT WRITING
FOLLOW UP
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3.2 RESEARCH METHODOLOGY
3.2 RESEARCH METHODOLOGY
Research definition:
Research is a process of systematic and in – depth study or search for any particular topic, subject by collection, compilation, presentation and interpretation of relevant details or data.
Research refers to a search of knowledge. It is a scientific and systematic search for pertinent information on a specific topic.
It is an art of scientific investigation.
Movement from known to unknown.
Voyage of discovery.
Original contribution to the existing socks of knowledge making for its advancement.
The main aim of the project was to find out the market share of SCL and it’s customers with respect to Jaipur (Rajasthan). The opinions of the customers were taken by visiting various places and information was collected from the customers.
57
3.2.1 DATA COLLECTION:
Data collection is the heart of all marketing research.It is an elaborate process through which the researcher makes a planned search for all relevant data and gathers the entire data required for the assignment.
Primary data source:
1. Observation
2. Interview: -
3. Questionnaire:
The project was started from the questionnaire. The questions are asked to respondents about their experiences towards SCL’S Brands and other competitors. The survey was conducted to know the market potential and market share for two-wheeler segment. Questionnaire contains both open ended and close-ended question.
Secondary data source:
1. Internet:For this purpose different web sites have been used some of those are: -
www.google.com www.shreecement.com
2. Newspapers
3. Reference book-
58
Sampling method: -
1. Probability / random sampling method
2. Non-probability sampling method
For research purpose of project researcher selected the probability sampling. The population for our project was very large; it was not possible to meet every one so researcher select simple random sampling. Researcher had covered the Jaipur city.
Sample size: -
As considering the coverage of researcher takes the sample size as about 150 dealers and divided this sample in equal strength to give same weight age for all area
Statistical technique used: -
Here I have used Bar chart & pie chart
Scaling technique used: -
For this purpose I have used different response of the customers like – excellent, satisfied, Not Satisfied. Other response is Good, Poor, Can’t say.
Excellent
Very Good
Good
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Poor
3.2.2 AREAS COVERED
Any study that is conducted has a scope. The scope here signifies the geographical limits within which the study will be carried discrepancies in the study due to a large number of extraneous variables in the area.
The market survey was conducted on the dealers, sub-dealers of cement brands to measure the most potential brand in jaipur territory.
The study was under SCL’S BRANDS jaipur. The geographical scope of my study was limited to the area of jaipur territory where by different area were covered.
Mansarovar
Jagatpura
Pratap Nagar
Prithviraj Nagar
C-scheme
Vidhyadhar Nagar
Sirsi road
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3.2.3 DATA ANALYSIS
Q.1 Name the current cement brands you are aware of?
AWARENESS
During the period of survey we interviewed 140 entrepreneurs doing small and big business in respect to cement, we come to know that out of the total 140:
90% of the people are highly aware of Ambuja. 85% of the people are aware of Ultra-tech & Binani. 80% of the people are aware of Bangur & Shree Ultra. 65% of the people are aware of Tuff Cemento. 40% of the people are aware of ACC & J.K.Laxmi. 30% of the people are aware of Birla Uttam & Birla Chetak & J.K.Super.
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Q.2 Name of the company of the brand you are aware of?
During the period of survey we interviewed 140 entrepreneurs doing small and big business in respect to cement, we come to know that out of the total 140:
80% of the people are highly aware of Ambuja – Ambuja & Shree Ultra – Shree Cement Ltd.
70% of the people are aware of Ultra-tech – Aditya Birla Group. 60% of the people are aware of Bangur - Shree Cement Ltd. 50% of the people are aware of Tuff Cemento – Shree Cement Ltd. 40% of the people are aware of ACC - ACC & J.K. LaxmI -J.K.Group. 30% of the people are aware of Birla Uttam – B. K. Birla Group & Birla
Chetak – M.P. Birla Group & J.K. Super – J.K. Group.
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Q.3 Name the brands you deal with?
DEALING
In respect of dealing with cement brand, we found that out of the total 140 respondents: - 50%of the people are dealing with ultra-tech. 40%of the people are dealing with Ambuja & Binani 30%of the people are dealing with Bangur. 20%of the people are dealing with Shree Ultra 10%of the people are dealing with Tuff cemento & J.K. Laxmi. 5%of the people are dealing with ACC, Birla Uttam, and Birla Chetak,
J.K. super.
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Q.4 You are authorized dealer of ?
AUTHORISED DEALER
From the following 140 respondents, it was analyzed that authorized dealer pertaining to various cement brands have been distributed as follows: - 25 Authorized dealer of Ultra-tech. 15 Authorized dealers of Ambuja & Binani. 10 Authorized dealer of Shree Ultra & Tuff Cemento. 5 Authorized dealer of Bangur & J.K. Laxmi. 4 Authorized dealer of ACC. 2 Authorized dealer of Birla Uttam, Birla Chetak & J.K. Supers.
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Q.5 Rank the following brands in quality terms:
TWO CATEGERY IN THE QWALITY (A & B)
CATEGEY (A)
Also. In respect of quality of products it was observed that: According to 55% people, of Ambuja is excellent. Around 45% People told that quality of Ultra-tech & Binani is very good. Around 20% of people told that quality of Bangur is very good. 10% people told that quality of Shree Ultra & Tuff Cemento is good. 5&4% J.K. Laxmi, ACC, Birla Uttam, Birla Chetak & J.K. Super is average.
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CATEGORY (B)
Also. In respect of Second quality of products it was observed that:
According to 30% people, of Ambuja & Ultra-tech is second-class quality.
Around 50% People told that quality of Binani & Bangur is second-class quality.
Around 40% of people told that quality of Shree Ultra, Tuff Cemento & J.K. Laxmi is Second class quality.
10% J.K. Laxmi, ACC, Birla Uttam, Birla Chetak & J.K. Super is average quality of this product.
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Q.6 Have you seen the TV advertisement of cement brand’s?
TV ADVERTISMENT
90% of the people had seen the TV advertisement of Ambuja. 70% of the people had seen the TV advertisement of Ultra-tech. 45% of the people had seen the TV advertisement of Bangur & Binani. 20% of the people had seen the TV advertisement of Shree Ultra & J.K.
Laxmi. 30% of the people had seen the TV advertisement of Tuff Cemento. 5% of the people had seen the TV advertisement of Birla Uttam & Birla
Chetak, J.K.Super & ACC.
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Q.7 Rank the following brands in price terms:
Two category ‘A’ & ‘B’
CATEGORY ‘A’
Also. In respect of PRICE of products it was observed that: According to 70% people told that price of Ambuja is very high price than
other brands.
Around 35% People told that price of Ultra-tech & Binani is very high.
Around 7% of people told that price of Bangur Shree Ultra & Tuff Cemento, J.K. Laxmi is high.
2% of the people told that price of ACC, Birla Uttam, and Birla Chetak & J.K. Super is high.
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CATEGORY ‘B’
Also. In respect of PRICE of products (in ‘B’ Category) it was observed that: According to 60% people told that price of Binani & Bangur are include in
second price than other brands.
Around 45% People told that price of Ultra-tech & Shree Ultra & Tuff Cemento price are normal than other brand’s.
Around 30% of people told that price of Ambuja, J.K. Laxmi is average.
10% of the people told that price of ACC, Birla Uttam, Birla Chetak & J.K. Super price are low.
3.2.4 FINDINGSAWARENESS
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Ambuja, Ultra-Tech, Binani, Bangur & Shree Ultra are highly aware brand in jaipur city.
Tuff Cemento, J.K. Laxmi, Birla Uttam Birla chetak, J.K. Super & ACC are also reasonable awared.
AWARENESS OF COMPANY WITH BRANDS
Ambuja, Ultra-Tech, Binani, Bangur & Shree Ultra & Tuff Cemento are highly aware of brand with company in jaipur city.
J.K. Laxmi, Birla Uttam Birla chetak, J.K. Super & ACC are also reasonable awared.
DEALING
Maximum dealers are dealing with Ambuja, Ultra-Tech, and Binani & Bangur.
Mainly dealers are dealing with multiple brands.
Retailers having good sale are authorized dealer of a company.
QUALITY
Ambuja, Ultra-Tech & Binani are considered to be best quality product.
Shree Ultra, Bangur, Tuff Cemento, J.K. Laxmi, Birla Uttam Birla chetak, J.K. Super & ACC are also among good perception about quality.
PRICE
Ambuja, Ultra-Tech & Binani are considered to be best price product in the market (higher price than other product).
Shree Ultra, Bangur, Tuff Cemento, J.K. Laxmi, Birla Uttam Birla chetak, J.K. Super & ACC are also normal price in the market.
PART-4 QUESTIONNAIRE
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QUESTIONNAIRE
Name of shop _____________________________
Owner of Shop ____________________________
Address ______________________________
Dealership _______________________________
Q.1 Name the current cement brands you are aware of?(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC (I) Birla Uttam
Q.2 Name of the company of the brand you are aware of?(A) Ambuja (Ambuja)(B) Aditya Birla Group (Ultra-tech)(C) Barj Binani Group (Binani)(D) Shree Cement Ltd (Bangur)(E) Shree Cement Ltd (Shree Ultra)(F) Shree Cement Ltd (Tuff Cemento)(G) J.K. Group (J.K.Laxmi)(H) ACC (ACC)(I) B.K. Birla Group (Birla Uttam)(J) M.P. Birla Group (Birla Chetak)(K) J.K. Group (J.K. Super)
Q.3 Name the brands you deal with?(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla Uttam
Q.4 You are authorized dealer of?
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(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla Uttam (J) Birla Chetak(K) J.K.Super
Q.5 Rank the following brands in quality terms:Two category ‘A’ & ‘B’(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC (I) Birla Uttam (J) Birla Chetak(K) J.K.Super
Q.6 Have you seen the TV advertisement of cement brand’s? (A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla Uttam (J) Birla Chetak(K) J.K.Super
Q.7 Rank the following brands in price terms:Two Category ‘A’ & ‘B’(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla Uttam (J) Birla Chetak(K) J.K.Super
DEALERS / SUBDEALERS REPORT
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S NO.
NAME OF FIRM WITH ADDRESS
NAME OF OWNER
DEALER /SUBDEALE
R
SALE (P/M) BRAND
1 MAIHTA BUILDING MATERIAL & SUPPLAIR
(SHIRSHI ROAD)
MAHESH JI SUBDEALER 2000BAGE TUFF CEMENTO & JK LAXMI
2 RAKESH BUILDING MATERIAL & SUPPLAIR (MEENA WALA SHIRSHI
ROAD)
RAKESH JI DEALER 3000BAGE BIRLA UTTAM
3 JANU SALES CORPORATION (MEENA WALA SHIRSHI ROAD)
JADGISH JI DEALER 3000BAGE JK LAXMI
4 CHANDN BULDING MATERIAL & SUPPLAIR (MEENA WALA SHIRSHI
ROAD)
GYARASHI LAL SHARMA
SUBDEALER 800 BAGE ULTRA-TECH & AMBUJA
5 SHARMA BUILDING MATERIAL (MEENA WALA
SHIRSHI ROAD)
RAKESH JI SUBDEALER 900BAGE ULTRA-TECH
6 BAGDA BUILDING MATERIAL (PACHAWALA
SHIRSHI ROAD)
PARBHU JI BAGDA
SUBDEALER 1000BAGE ULTRA-TECH
7 GAYATRI BUILDAING MATERIAL & SUPPLAIR (PACHAWALA SHIRSHI
ROAD)
YOGESH JI GUPTA
SUBDEALER 2000BAGE BANGUR & AMBUJA &
BINANI
8 BALAJI SALES CORPORATION
(PACHAWALA SHIRSHI ROAD)
PRALAD JI SHARAMA
SUBDEALER 1000BAGE BIRLA UTTAM
&ULTRA-TECH
&SHREE ULTRA
9 BAGDA BUILDING MATERIAL (PACHAWALA
SHIRSHI ROAD)
RAMGOPAL JI BAGDA
SUBDEALER 2000BAGE ULTRA-TECH&
BANGUR&BINANI
10 KATAREYA BUILDING MATERIAL (PACHAWALA
SHIRSHI ROAD)
RAM KARAN JI KATAREYA
SUBDEALER 900BAGE ULTRA-TECH
11 KHANDELWAL TRADERS SHYAM DEALER 3000BAGE AMBUJA73
(NIWARU ROAD 200 BY PASS)
KHANDLAWAL
12 ANIL TRADERS (LAXMI NAGAR NIWARU ROAD
JHOTWARA)
ANIL JI DEALER 9000BAGE ULTRA-TECH
13 SHREE MAHA LAXMI TRADERS (NEAR BY PASS
KALWAR ROAD KANTA)
SUBHAS JI AGRAWAL
DEALER 1000BAGE TUFF CEMENTO
14 PUJA BUILDING MATERIAL (NIWARU ROAD
NETA JI KI CHKAKI)
PAPU JI SUBDEALER 300BAGE JK LAXMI & AMBUJA
15 AGRAWAL TRADERS (A 26 HEERA BADI NIWARU
ROAD JHOTWARA)
KISHAN KUMAR
SHARMA
SUBDEALER 2500BAGE ULTRA-TECH
16 RAJDHANI BUILDING MATERIAL (SUDAMA
MARG BHRAMPURI ROAD)
SHYAM LAL SHENI
SUBDEALER 700BAGE AMBUJA
17 LAXMI CEMENT AGENCY (SUDAMA MARG
BHRAMPURI ROAD NEAR KHURA)
RAMKISHOR SHENI
SUBDEALER 3500BAGE AMBUJA &ULTRA-TECH& JK
18 TRILOK BUILDING MATERIAL SUPPLAIR
(SHOP NO.132 133 SUDAMA MAREG)
BABULAL SHENI
SUBDEALER 800BAGE AMBUJA & JK
19 LAXMI BUILDING MATERIAL SUPPLAIR (279
SHIVAJI CHOK BHRAMPURI ROAD)
ANIL GOYAL DEALER 8000BAGE AMBUJA
20 SHENI SALES CORPORATION (SHOP
NO.24 BHRAMPURI ROAD)
GOVIND RAM DEALER 2000BAGE BINANI & JK WHITE
21 MUNA TRADERS (BAGRU WALO KA RASTA)
MUNA BHAI DEALER 400BAGE AMBUJA
22 GARIB TRADERS (BAGRU WALO KA RASTA AAKRI
CHOORAHA)
MUNA BHAI SUBDEALER 500BAGE AMBUJA
23 GOVIND STONE BUILDING (SUDAMA MARG
LALU LAL &GOVIND
SUBDEALER 2500BAGE AMBUJA
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BHRAMPURI KHURA KAI NECHAI)
24 BALAJI TRADERS (VIDHYADHER NAGAR
NEAR SARKIL)
BHAWATI PARSAD
SUBDEALER 3000BAGE ACC & ULTRA-TECH
25 CHANTAHARAN BUILDING MATERIAL (VIDHYADHER
NAGAR)
SHIV KUMAR SUBDEALER 2000BAGE AMBUJA BIRLA WHITE
26 GOVIND TRADERS (SHOP NO.7, 8 VIDHYADHER
NAGAR)
DINESH KUMAR
SUBDEALER 1800BAGE ULTRA-TECH & AMBUJA
27 SHREE SHYAM TRADING COMPANY (JAMES
COLONI VIDHYADHER NAGAR)
SUNILGUPTA DEALER 3000BAGE BANGUR & ULTRA-TECH & SHREE ULTRA
28 SHREE RAM TRADERS (NEYA KHIDA
VIDHYADHER NAGAR)
VINEY SHARMA
SUBDEALER 2000BAGE BANGUR &AMBUJA
29 MACHIWAL AGENCYS (L S NAGAR NEYA KHIDA
VIDHYADHER NAGAR)
JUGAL KISHOR
MACHIWAL
DEALER 4000BAGE ULTRA-TECH
30 VINAYAK CEMENT (NEYA KHADA VIDHYADHER
NAGAR)
DEEPAK SUBDEALER 2000BAGE BANGUR &AMBUJA
31 JAIN TRADERS (A5 LS NAGAR NEYA KHADA VIDHYADHER NAGAR)
DOLAT SINGH DEALER 1700BAGE TUFF CEMENTO
32 JOYTI TRADING COMPANY (VIDHYADHER NAGAR
NEAR SARAKIL)
GOPAL CHODHYRI
SUBDEALER 1000BAGE ULTRA-TECH
33 BALAJI TRADERS (L S NAGAR VIDHYADHER
NAGAR)
MAHANDRA SINGH
DEALER 2000BAGE ULTRA-TECH
34 SHREE LAXMI CEMENT AGENCY (SIKAR ROAD NEAR 200 FIT BY PASS)
RAM LAL KUMAWAT
DEALER 7000BAGE AMBUJA
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35 BHARAT TRADING COMPANY (SIKAR ROAD)
HARPHOOL SINGH
DEALER 2000BAGE AAC
36 SHREE LAXMI CEMENT BUIED PLAZA (SIKAR
ROAD NEAR 200 FIT BY PASS)
LAXMI NARAYAN
DEALER 7000BAGE ULTRA-TECH
37 SHREE LAXMI CEMENT SUPPLAIRS (SIKAR ROAD
OPP. AOTOPAL)
SAGAR MAL DEALER 2000BAGE SHREE ULTRA
38 SHREE RAM CEMENT AGENCY (SIKAR ROAD
DER KA BALAJI)
OM PRAKASH SUBDEALER 2000BAGE ULTRA-TECH &
J.K.LAXMI
39 AASIWAL AGENCY (SIKAR ROAD KHATHAN
HOSPETAL)
RAJESH SUBDEALER 1500BAGE ULTRA-TECH & BINANI
40 SHIV TRADERS (SIKAR ROAD KHATHAN
HOSPETAL)
RAKESH JI DEALER 2500BAGE J.K.LAXMI
41 RAJENDER TRADERS (SIKAR ROAD)
RAJENDER JI DEALER 3000BAGE ULTRA-TECH
42 PARDEEP TRADERS (SIKAR ROAD)
JUGAL KISHOR
SUBDEALER 1500BAGE AMBUJA & ULTRA-TECH
43 SAKHAWAT BUILDING MATERIAL (123 BANDU
NAGAR MURLIPURA SIKAR ROAD)
GERIRAJ SINGH
DEALER 4000BAGE ULTRA-TECH
44 NIRANIYA TRADERS (MURLIPURA)
ASHOK NIRANIYA
SUBDEALER 2000BAGE ULTRA-TECH &
J.K.LAXMI & AMBUJA
45 NAVEEN TRADING COMPANY (MURLIPURA)
RAJ KUMAR SUBDEALER 1700BAGE ULTRA-TECH &
J.K.LAXMI & AMBUJA
46 RAMA AGENCY (D43 AII BANDU NAGAR
MURLIPURA)
VINOD SINGH SUBDEALER 2000BAGE AMBUJA & ULTRA-TECH
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47 GODEALA TRADING COMPANY (ROAD NO.2
MURLIPURA)
BADRI PARSAD
DEALER 6000BAGE BINANI
48 DEEPAK MARBALS (KALWAR ROAD 200FIT BY
PASS)
DEEPAK DEALER 1000BAGE AMBUJA
49 KIRAN SUPPLAIRS (KALWAR ROAD KATA
PHANKA)
SANGRAM SINGH
DEALER 3000BAGE ACC ULTRA-TECH
50 SEAKAWATY CEMENT UDAEG (KALWAR ROAD
KATA PHANKA)
JAY SINGH DEALER 2000BAGE ULTRA-TECH
51 R.K. TRADERS (KALWAR ROAD KATA PHANKA)
RAM KUMAR DEALER 2000BAGE ULTRA-TECH
52 ANKIT TRADING COMPANY (KALWAR ROAD KATA PHANKA)
AHKASH SUBDEALER 1000BAGE ULTRA-TECH
53 GNAESH STONECOMPANY (KALWAR ROAD KATA
PHANKA)
OM JI SUBDEALER 800BAGE J.K.LAXMI
54 H S CORPORATION&BUILDING
MATERIAL (KALWAR ROAD KATA PHANKA)
HANUMAN SHAYE
DEALER 2500BAGE SHREE ULTRA
55 MANISH TRADERS (SUBIKISHA MOBILE
STORE KALWAR ROAD JHOTWARA)
SITA RAM JI DEALER 2100BAGE ULTRA-TECH
56 MAHALAXMI SALES CORPORATION
(MEDICALCENTER KALWAR
ROADJHOTWARA)
P.K.SINGH DEALER 3000BAGE ULTRA-TECH
57 BAJARNG BUILDING MATERIAL (KEARDHANI NAGAR KALWAR ROAD)
BAJARNG LAL
SUBDEALER 700BAGE ULTRA-TECH
58 JAGDAMBA TRADING COMPANY (SUBIKISHA
MOBILE STORE KALWAR ROAD)
MOHAN LAL DEALER 2000BAGE ULTRA-TECH
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59 KUMAWAT TRADING COMPANY (KALWAR ROAD
KATA PHANKA)
S.N.KUMAWAT
DEALER 2000BAGE ULTRA-TECH
60 VESAVEKARMASTON SUPPLAIRS (GOVINDPURA
KALWAR ROAD)
CHOOTMAL DEALER 1700BAGE ULTRA-
TECH
61 VIJAYBUILDING MATERIAL (RAVANGAT
KALWAR ROAD)
SURESH DEALER 3000BAGE ULTRA-TECH
62 KARDANI CEMENT UDUGH (SURJEET NAGAR KALWAR ROAD)
BASIDHAR KUMAWAT
DEALER 2000BAGE AMBUJA
63 YADAV SALES CORPORATION
(KEARDHANI NAGAR KALWAR ROAD)
GANAGARAM JI
DEALER 2500BAGE BINANI
64 SANGEETA STONE (KEARDHANI NAGAR
KALWAR ROAD)
SANJAY DEALER 1500BAGE J.K.LAXMI
65 MARWAL STONE SUPPLAIRS (CHANDR NAGAR KEARDHANI
KALWAR ROAD)
HANUMAN JI DEALER 2000BAGE ACC
66 GOVIND BUILDING MATERIAL (TAKYA KI
CHOOKI BAJARNG DAWAR KALWAR ROAD)
GOVINDRAM DEALER 2000BAGE ULTRA-TECH
67 GURU KRIPA BUILDING MATERIAL (KEARDHANI NAGAR KALWAR ROAD)
LAXMI NARAYAN
DEALER 2000BAGE AMBUJA
68 SIANI BUILDING MATERIAL (MAN BAGH
RAMGADH ROAD DEHLI BY PASS)
JAGDISH PARSAD
SUBDEALER 500BAGE J.K.LAXMI
PART – 5
5.1 CONCLUSIONS
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Quality and Brand image of the cement brands are having a significant
relationship with one another. This is an important factor because good
quality helps in building the loyal customers due to which demand of that
brand increases and dealers have to go with the brand whose demand is
more.
There is no significant relationship between the profit margin and sales. As
reputed brands are giving high sales even they are providing fewer profit
margins. In other terms, in Volume based market dealers go with the
brand which has high demand.
They say that if the sales are high then automatically we will be able to
make a profit out of it and are able to earn the monetary benefits which
companies gives on achieving the target sales.
RECOMMENDATION
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To build the strong brand image, SCL has to adopt aggressive marketing
strategies. You should have a proper control on all the factors of
marketing mix. Even a single factor missed out will give your competitors
an edge upon you.
Some of the recommendations I want to give to improve the present
positioning of the brand:
First of all, SCL has to show its presence in the market not in the terms of
dealers but should also reach to the customers via different means.
Mason meets and Dealer meets should be organized in every six months
(stress should be laid in rural areas, where brand visibility is very low).
Along with mason and dealer meets, company can also go for customer
meets, telling about the quality of the product and explaining them why
they should choose SCL’S Brands. Advertisement is another medium to
reach to the customers; effective medium should be adopted for the same.
Company can adopt the strategy of making exclusive dealers, by providing
them extra benefits. This will help them to reduce competition. As in the
case of multi brand dealers, dealer tend to sale only those brand which
gives high profit margin.
There should be control on the price variation. Due to this, image of being
a premium brand is diluted and we no longer are considered as premium
brand.
One of the main reasons of price variation is the secondary freight benefit
being provided to the dealers. Companies carry the “Trolla Movement” to
give benefit to their dealers. Also, other two brands of Shree Cement
Limited give the same benefit. Therefore, Bangur has also started giving
the same benefit to counter the competitors move.
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It is good to give more benefits to the dealers but it should be seen equally
from both sides. Company carries the “Trolla Movement” to give benefit
to the dealers, but dealer do not look it in this way. They think they are
getting more profit margin, due to which if they are getting sec. freight
benefit as Rs 3 to Rs 4 then they use it to reduce the price and sell the
brand in lesser price and gaining Rs 1 or Rs 2 out of it. Their main aim is
to achieve high sales and get annual benefit.
I strongly support this type of benefits should not be there which adversely
affects the brand image. Instead we can give other benefits to the dealers
may be in form of Gold schemes or more margin in achieving target
sales.
Another threat is from in-house competition. Company management
should take adequate steps to reduce this competition and should aim to
build the brand image, rather than to have high collective sales.
5.3 BIBLIOGRAPHY
Following are sources, which helped me during my summer training:
BOOKS:
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KOTHARI C.R.: Research methodology management, 3rd Edition
KOTLER PHILIP: Marketing management” 12th edition, 2007
S.P.GUPTA: - Statistical Methods “Thirteen Revised Edition, 2001
MAGZINES:
INDIA TODAY
BUSINESS WORLD
REFERENCES WEBLIOGRAPHY
www.shreecementltd.com www.ibef.org www.marketresearch.com www.indianinfoline.com www.busineessconnect.com www.indiancementindustry.com
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