Market survey of Consumer perception about Cement industry.

A PROJECT REPORT SUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY PHAGWARA(PUNJAB) POST GRADUTE DEGREE IN MANAGEMENT (MBA)

SUBMITTED BY:RITESH GAUTAM ROLL NO- RK3R32A09 REG. NO.- 10802129

SUBMITTED TO:MR. ANISH KUNDEL

DECLARATION I RITESH GAUTAM hereby declares, that all data and analysis listed out in this Project Report is Independent and original work. I have made this research work for preparing this project under the guidance of MR. ANISH KUNDEL. I also declare that I have not submitted this Project Report to any other institution or college before.

RITESH GAUTAM B.TECH-MBA (MARKETTING)

TABLES of contents

Chapters 1 2 3 4 5 6 7

CONTENTS Introduction Objectives & Scope of Study Review of Litereture Research Methodology Observations, Data Collection Analysis, and Interpretation Findings Suggestions Conclusions Questionnarie Bibliography

PAGE NO. 518 18 19 20 2122 23-32 32 33 33 34-35 36

ACKNOWLEDGEMENT Getting a thesis ready requires the work and effort of many people. I would like to thank all those who have contributed in completing this thesis. First of all, I gratefully acknowledge the continuous assistance and inspiration given to me by MR. ANISH KUNDEL. With deep sense of gratitude I express my heartiest thanks to MR. ANISH KUNDEL for providing us the required help and support to complete Research Project. I would also like to thank other faculty members at LPU for their help and valuable guidance in executing this Research. Finally, I would like to thank my family for providing me monetary and non monetary support, as and when required, without which this Project would not have completed on time.

RITESH GAUTAM

ABSTRACT:The Cement sector has been prospering steadily over the last many years in India . This research aims at studying the customer behavior towards cement companies. The focus of present research is to study the impact of various impulse buying factors like promotions, price, quality, influence of others, offer etc. on customer perception.. The major finding of the study are that ACC is ranked as the one of the best cement and services is concerned but ACC needs a more focused approach on customer relationship services. The major problem faced by the cement sector is that customers are not brand loyal. The study anticipates a greater future for cement sector in the view of new players coming to this industry and their services.

CHAPTER-1 INTRODUCTION CEMENT INDUSTRY:Cement is one of the core industries which plays an important role in the growth and expansion of a nation. It is basically a mixture of compounds, consisting mainly of silicates and aluminates of calcium, formed out of calcium oxide, silica, aluminum oxide and iron oxide. The demand for cement, depends primarily on the pace of activities in the business, financial, real estate and infrastructure sectors of the economy. Cement is considered preferred building material and is

used worldwide for all construction works such as housing and industrial construction, as well as for creation of infrastructures like ports, roads, power plants, etc. The cement industry is one of the main beneficiaries of the infrastructure boom. With robust demand and adequate supply, the industry has bright future. The Indian Cement Industry with total capacity of 165 million tones is the second largest after China. Cement industry is dominated by 20 companies who account for over 70% of the market. Individually no company accounts for over 12% of the market. The major players like L&T and ACC have been quiet successful in narrowing the gap between demand and supply. Private housing sector is the major consumer of cement (53%) followed by the government infrastructure sector. Similarly northern and southern region consume around 20%-30% cement while the central and western region are consuming only 18%-16%.India is the 2nd largest cement producer in world after china .Right from laying concrete bricks of economy to waving fly overs cement industry has shown and shows a great future. The overall outlook for the industry shows significant grow thon the back of robust demand from housing construction, Phase-II of NHDP (National Highway Development Project) and other infrastructure development projects. Domestic demand for cement has been increasing at a fast pace in India. Cement consumption in India is forecasted to grow by over 22% by 2009-10 from 2007-08.Among the states, Maharashtra has the highest share in consumption at12.18%,followed by Uttar Pradesh, In production terms, Andhra Pradesh is leading with 14.72% of total production followed by Rajasthan. Cement production grew at the rate of 9.1 per cent during 2006-07 over the previous fiscal's total production of 147.8 million tons. Due to rising demand of cement the sales volume of cement companies are also increasing & companies reporting higher production ,higher sales and higher profits. The net profit growth rate of cement firms was 85%.Cement industry has contributed around 8% to the economic development of India. Outsiders (foreign players) eyeing India as a major market to invest in the form of either merger or FDI (Foreign Direct Investment). Cement industry has a long way to go as Indian economy is poised to grow because of being on verge of development. The company continues to emphasize on reduction of costs through enhanced productivity, reduction in energy costs and logistics expenses. The cement sector is expected to witness growth in line with the economic growth because of the strong co-relation with GDP. Future drivers of cement demand growth in India would be the road and housing projects. As per the Working Group report on Cement Industry for the formulation of the 11th Plan, the cement demand is likely to grow at 11.5 percent per annum during the 11th Plan and cement production and capacity by the end of the 11th Plan are estimated to be 269 million tones and 298 million tones, respectively, with capacity utilization of 90 per cent, gearing, another wave of consolidation would not come as a surprise.
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MAJOR PLAYERS Doing survey in Himachal, so I will discuss only four Players, whose products are available in Himachal Pradesh(Bilaspur). 1. ACC Limited 2. Ambuja Cements Limited 3. Jaypee cement 4. JK Lakshmi ACC CEMENT: This company is founded in 1936. ACC Limited (Formerly The Associated Cement Companies Limited) (BSE: 500410, NSE: ACC) is the largest producer of cement in India based in Mumbai.[ It's registered office is called Cement House. It is located on Maharishi Karve Road, Mumbai. The stock price of company contributes in calculating BSE Sensex. The management control of company was taken over by Swiss cement major Holcim in 2004. On 1 September 2006 the name of The Associated Cement Companies Limited was changed to ACC Limited. The company is only cement company to get Superbrand status in India. In 1936 ten cement companies belonging to Tatas, Khataus, Killick Nixon and F E Dinshaw groups merged to form a single entity, The Associated Cement Companies. Sir Nowroji B Saklatvala was the first chairman of ACC.

AMBUJA CEMENT :Ambuja Cements Limited, formerly known as Gujarat Ambuja Cement Limited is a major Cement producing company in India. The Group's principal activity is to manufacture and market cement and clinker for both domestic and export markets. The company has entered into a strategic partnership with Holcim, the second largest cement manufacturer in the world. Holcim had, in January, bought a 14.8 per cent promoters` stake in the GACL for INR 21.4 billion.

Currently (2011) Holcim holds about 50.00% of shares in Ambuja Cements Limited.

JAYPEE CEMENT:The Jaypee Group is an Indian conglomerate based in Noida, India. It was founded by Jaiprakash Gaur which is involved in well diversified infrastructure conglomerate with business interests in Engineering & Construction, Power, Cement, Real Estate. Jaypee is India's third largest cement producer, the largest private sector hydropower company with 1,700 MW in operation. JIL, the group flagship, has an engineering and construction wing which mostly supports Jaypee projects. It also has the largest land bank in India's National Capital Region (New Delhi). Jaypee has four thermal power plants totaling 5,120 MW under construction, and these are slated to go on stream by December 2014 JK LAKSHMI CEMENT:JK Lakshmi Cement, member of the JK organization is a blue chip cement company operating in India. Launched in 1982, Lakshmi Cement, an ISO9001:2000 company, is built over an area of about 8 square kilometers at Jakaypuram in the Sirohi District of Rajasthan. It is a public company listed on the Bombay Stock Exchange. As one of the large manufacturers in the Indian cement industry, JK Lakshmi Cement has acquired the ultra modern equipment from Fuller International of the United States of America, and electronic packers from Ventomatic in Italy. The annual installed plant capacity was 3.4 million tonnes per annum in 2007, but was being expanded to 5 million tonnes per annum during 2008-09. JK Lakshmi Cement has offices in Rajasthan, Gujrat, Maharashtra, Punjab, Haryana, Delhi, Uttarakhand, Uttar Pradesh, Himachal Pradesh and J&K, along with stock dumps at various places in every state to ensure uninterrupted supply to customers. JK Lakshmi Cement produces Portland cement at grades 43 & 53 and Blended cement. It also produces Plaster of Paris in brand name of JK LAKSHMI PLAST and Ready mixed concrete. J K Lakshmi Cement claims to be the only cement in India that comes with the unique Mazbooti (Strength) Guarantee.

ABOUT ACC:-

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 14 modern cement factories, more than 30 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000 persons and a countrywide distribution network of over 9,000 dealers. ACC's research and development facility has a unique track record of innovative research, product development and specialized consultancy services. Since its inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in respect of its production, marketing and personnel management processes. Its commitment to environment-friendliness, its high ethical standards in business dealings and its ongoing efforts in community welfare programmes have won it acclaim as a responsible corporate citizen. ACC has made significant contributions to the nation building process by way of quality products, services and sharing its expertise. In the 72 years of its existence, ACC has been a pioneer in the manufacture of cement and concrete and a trendsetter in many areas of cement and concrete technology including improvements in raw material utilisation, process improvement, energy conservation and development of high performance concretes. ACCs brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer Super Brands of India. The company's various businesses are supported by a powerful, in-house research and technology backup facility - the only one of its kind in the Indian cement industry. This ensures not just consistency in product quality but also continuous improvements in products, processes, and application areas. ACC manufactures the following types of cement, in addition to which, it provides Bulk Cement and Ready Mix Concrete.

Ordinary Portland Cements:(1). 43 Grade Cement (OPC 43 Grade) ACC Cement is the most commonly used cement in all constructions including plain and reinforced cement concrete, brick and stone masonry, floors and plastering. It is also used in the finishing of all types of buildings, bridges, culverts, roads, water retaining structures, etc. What is more, it surpasses BIS Specifications (IS 8112-1989 for 43 grade OPC) on compressive strength levels. ACC Cement is marketed in specially designed 50 kg bags.

(2). 53 Grade Cement This is an Ordinary Portland Cement which surpasses the requirements of IS: 12269-53 Grade. It is produced from high quality clinker ground with high purity gypsum. ACC 53 Grade OPC provides high strength and durability to structures because of its optimum particle size distribution, superior crystalline structure and balanced phase composition. It is available in specially designed 50-kg bags. Blended Cements:-

Fly-ash based Portland Pozzolana Cement This is a special blended cement, produced by inter-grinding higher strength Ordinary Portland Cement clinker with high quality processed fly ash - based on norms set by the company's R&D division. This unique, value-added product has hydraulic binding properties not found in ordinary cements. It is available in specially designed 50-kg bags. Portland Slag Cement:This is a slag-based blended cement that imparts strength and durability to all structures. It is manufactured by blending and inter-grinding OPC clinker and granulated slag in suitable proportions as per our norms of consistent quality. PSC has many superior performance

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characteristics which give it certain extra advantages when compared to Ordinary Portland Cement. It is available in specially designed 50-kg bags.

WHAT IS SPECIAL ABOUT ACC PSC? Compared to OPC, ACC PSC imparts some important additional advantages

Reduction in free lime leaching. Ultimate higher strength. Improved workability, reduced bleeding as well as segregation and corrosion. Denser, less permeable concrete, and mortar. Better resistance to sulphates, chlorides, and CO2 and alkali-aggregates reaction. Less heat, reduced plasticity and drying shrinkage. Increased static modulus of elasticity. Increased serviceability with less deflection of members and micro cracks and reduced

cost of construction and maintenance. All these factors make for a strong, durable, and longer lasting construction. ACC PSC benefits the structure, protects the environment by reducing CO2 emissions and helps conserve energy. Which is why it is often referred to as an eco-friendly cement. The Federation International de la Precontrainte (FIP) Guide to Good Practice for "concrete constructions in hot weather," states that if concrete is likely to be exposed to an environment of sulphate-bearing water or soil, it is preferable to use a proven type of blended cement containing ground granulated blastfurnace slag. Concrete made with ACC PSC has a higher density than concrete made with OPC, and hence it improves the durability of concrete structures. It can, therefore, be used for all purposes where OPC or PPC is used ACC'S PLANT-WISE CAPACITY:-

Bargarh - [ Capacity (MTPA) 0.96 ] Chaibasa - [ Capacity (MTPA) 0.87 ] Chanda - [ Capacity (MTPA) 1.00 ] Damodhar - [ Capacity (MTPA) 0.53 ]
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Gagal - [ Capacity (MTPA) 4.40 - Gagal I and II ] Jamul - [ Capacity (MTPA) 1.58 ] Kymore - [ Capacity (MTPA) 2.20 ] Lakheri - [ Capacity (MTPA) 1.50 ] Madukkarai - [ Capacity (MTPA) 1.18 ] Sindri - [ Capacity (MTPA) 0.91 ] Wadi - [ Capacity (MTPA) 2.59 ] New Wadi Plant - [ Capacity (MTPA) 3.20 ] Tikaria - [ Capacity (MTPA) 2.31 ]

ACC was the first recipient of ASSOCHAMs first ever National Award for outstanding performance in promoting rural and agricultural development activities in 1976. Decades later, PHD Chamber of Commerce and Industry selected ACC as winner of its Good Corporate Citizen Award for the year 2002. Over the years, there have been many awards and felicitations for achievements in Rural and community development, Safety, Health, Tree plantation, afforestation, Clean mining, Environment awareness and protection Awards & Accolades

IMC Ramkrishna Bajaj National Quality Award - Gagal wins Commendation Certificate

and New Wadi Plant wins Special Award for Performance Excellence in the Manufacturing Sector, 2007.

National Award for outstanding performance in promoting rural and agricultural

development by ASSOCHAM

Sword of Honour - by British Safety Council, United Kingdom for excellence in safety

performance.

Indira Priyadarshini Vrikshamitra Award --- by The Ministry of Environment and Forests

for "extraordinary work" carried out in the area of afforestation.

FICCI Award --- for innovative measures for control of pollution, waste management &

conservation of mineral resources in mines and plant.

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Subh Karan Sarawagi Environment Award - by The Federation of Indian Mineral

Industries for environment protection measures.

Vishwakarma Rashtriya Puraskar trophy for outstanding performance in safety and mine

working

Good Corporate Citizen Award - by PHD Chamber of Commerce and Industry Jamnalal Bajaj Uchit Vyavahar Puraskar - Certificate of Merit by Council for Fair

Business Practices

Greentech Safety Gold and Silver Awards - for outstanding performance in Safety

management systems by Greentech Foundation

National Award for Excellence in Water Management - by the Confederation of Indian

Industry (CII).

Tikaria wins IMC Ramkrishna Bajaj Certificate of Merit 2008 Gagal wins IMC Ramkrishna Bajaj National Quality Performance Excellence Trophy 2008 CNBC-TV18's India Business Leaders Award in the category India Corporate Citizen of

the Year 2008

Greentech Safety Gold Awards 2009 - for outstanding performance in Safety management

systems by Greentech Foundation. ACC VISION:-

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ACC has a large workforce of about 9,000 people, comprising experts in various disciplines SUSTAINABLE DEVELOPMENT : Sustainable development is recognized by us as a process of development that "meets the needs of the present without compromising the ability of future generations to meet their own needs" . We believe this constitutes balancing the Triple Bottom Line - defined as the achievement of three interdependent and mutually reinforcing goals of economic development, social development, and environmental protection. ACCs Vision declares the companys commitment to sustainable development. The Vision statement narrates these areas as:

Delivering enduring value to investors and other stakeholders Welfare of community around us Developmental work in the areas of health, hygiene, education and infrastructure Being a socially responsible organization fulfilling its obligation to the community, society Assisting the community members in developing opportunities for self employment Commitment to Environment Protection Adopting latest technologies to protect and upgrade the environment around our units Surpass international norms in controlling all types of pollution

and nation

assisted by a dedicated workforce of skilled persons. ACC employees, referred to as the ACC Parivar, come from all parts of the country and belonging to a variety of ethnic, cultural and religious backgrounds. ACC employees display a strong sense of loyalty to the Company and their special stellar qualities as value-adding human capital are well known in the industry. TRAINING & DEVELOPMENT:Our new Performance Management System incorporates a process called Competency Assessment and Training and Developmental Needs wherein appraisers are specifically called upon to identify and assess training needs of employees at specific intervals that do not coincide with Performance Appraisals. This is so that training needs can be assessed objectively. Training is imparted to take care of an individuals career development as well as functional and skill enhancement.

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Competency and Development training inputs include Skill and general performance enhancement, communication skills and Career development. EMPLOYEE SATISFACTION:In addition to periodic internal Employee Satisfaction Surveys, we participate in Employee Satisfaction and Work Places Surveys conducted by reputed external agencies and organizations like Hewitt Associates Grow Talent. And from time to time, ACC has also retained reputed firms like Mercer and Boston Consulting Group to study our internal work environment and employee policies and suggest areas of improvement. We share below salient points of the latest survey of employees:

People are treated fairly regardless of religion and gender ACC is a safe place to work Management is competent in running business Employees feel good about what we do for society Proud to tell others I work here Management thinks positively

The overall findings show significant job satisfaction at all levels as also deep respect for the company, its performance management system and its overall business performance. Background A Corporate Saga:ACC has been an interesting story one that inspired a book. ACC was formed in 1936 when ten existing cement companies came together under one umbrella in a historic merger the countrys first notable merger at a time when the term mergers and acquisitions was not even coined. The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry. Their efforts to face competition for survival in a small but aggressive market mingled with the stirring of a countrys nationalist pride that touched all walks of life including trade, commerce and business. The first success came in a move towards cooperation in the countrys young cement industry and culminated in the historic merger of ten companies to form a cement giant. These companies belonged to four prominent business groups Tatas, Khataus, Killick Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man

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recognized as the founder of ACC, died in January 1936. Just months before his dream could be realized.

F. E. Dinshaw the founder of ACC ACC stands out as the most unique and successful merger in Indian business history, in which the distinct identities of the constituent companies were melded into a new cohesive organization one that has survived and retained its position of leadership in industry. In a sense, the formation of ACC represents a quest for the synergy of good business practices, values and shared objectives. The use of the plural in ACCs full name, The Associated Cement Companies Limited, itself indicates the companys origins from a merger. Many years later, some stockbrokers in the countrys leading stock exchanges still refer to this company simply as The Merger. ACC's First Board Meeting in 1936 at The Esplanade

Sir Nowroji B Saklatvala was the first chairman of ACC. The first Board included distinguished luminaries of the Indian business world of the time names like J R D Tata, Ambalal Sarabhai, Walchand Hirachand, Dharamsey Khatau, Sir Akbar Hydari, Nawab Salar Jung Bahadur and Sir Homy Mody among others. A STRATEGIC ALLIANCE:- The house of Tata was intimately associated with the heritage and history of ACC, right from its formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements Ltd (GACL), who are now the largest single shareholder in ACC. This has enabled ACC to enter into a strategic alliance with GACL, a company reputed for its brand image and cost leadership in the cement industry. HOLCIM - A NEW PARTNERSHIP:- A new association was forged between ACC and the Holcim group of Switzerland in 2005. In January 2005, Holcim announced its plans to enter into a

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long-term strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL), which at the time held 13.8 per cent of the total equity shares in ACC. Holcim simultaneously announced its bid to make an open offer to ACC shareholders, through Holdcem Cement Pvt Limited and ACIL, to acquire a majority shareholding in ACC. ACCs registered office was first located at Esplanade House in South Mumbai, a graceful edifice that still stands out in its neighborhood. An all-India competition in 1938 had invited leading architects of the time to send in their designs of which this elegant design made by Ballardie Thompson & Mathews was chosen as the winning entry.

CENTRAL PROCUREMENT : ACC has a countrywide spread of 14 modern cement plants. This large network of manufacturing units consumes a wide spectrum of inputs about 60,000 different items ranging from Coal, Gypsum, Slag, Packaging material (bags), Refractory, Steel, Grinding Media, Electrodes, Cables, Bearings, Conveyor Belts, Spares of various mechanical, electrical and instrumentation equipment, Mining Equipment and their spares and explosives. ACC has a vendor base of more than 6000 suppliers spread across the country. A team of professionals at Corporate, Regions and Plant Level manages the procurement function. The function is organized so as to derive maximum value for the company through economies of scale from central pooling and procurement of some inputs at the corporate level while meeting individual operational requirements at plant level. Code of conduct ACC treats its vendors as business associates. All vendors are treated with respect and dignity. Our vendor base includes reputed manufacturers and trusted brand names, usually the leading 3-4 vendors of their particular industry segment who are technically and financially sound and have the intrinsic capacity to supply material of desired quality and on time. ACC prefers vendors who demonstrate good corporate citizenship and promote sustainable development. Adequate care is taken to ensure transparency in procurement processes. Our procurement policy has a clearly defined code of practice for procurement conduct and encourages fair and open competition in markets. TITLE OF THE PROJECT:-

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CONSUMER PERCEPTION TOWARDS CEMENT INDUSTRY RATIONAL OF THE STUDY:To know about the market consumer perception towards cement industry in Distt. BILASPUR(GHUMARWIN) CHAPTER 2. OBJECTIVES & SCOPE OF STUDY OBJECTIVE OF STUDY: To study consumer perception about quality provided by cement sector. To study the factor responsible for buying decision of customers. To study the loyalty of customers. To study the customer satisfaction. To study the comparison of various other cement brands.

To know the medium by which consumer know about the brand. To find the popularity of brands in the market.

SCOPE OF STUDY: The study is conducted on the customers who are dealing with construction at present. The study gives an idea about the market share of ACC in Bilaspur. The study provides information about the preference and the choice of consumers. The study includes information about the competitor's activities, which can be

of ACC.

helpful in determining the company's sales and sales promotion strategies and market share The study, which is based on the survey, gives a very practical knowledge about The study contains 300 respondents. CHAPTER -3
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real market situation of ACC.

REVIEW OF LITERATURE REVIEW OF LITERATURE:Methods of Marketing followed by ACC Descriptive Research. Financial statements is prepared in accordance with. Some of the achievements gained by ACC

Jamnalal Bajaj Uchit Vyavahar Puraskar - Certificate of Merit by Council for Fair

Business Practices

Greentech Safety Gold and Silver Awards - for outstanding performance in Safety

management systems by Greentech Foundation

FIMI National Award - for valuable contribution in Mining activities from the Federation

of Indian Mineral Industry under the Ministry of Coal.

Rajya Sthariya Paryavaran Puraskar - for outstanding work in Environmental Protection

and Environment Performance by the Madhya Pradesh Pollution. Control Board.

National Award for Fly Ash Utilisation - by Ministry of Power, Ministry of Environment

& Forests and Dept of Science & Technology, Govt of India - for manufacture of Portland Pozzolana Cement.

Good Corporate Citizen Award - by Bombay Chamber of Commerce and Industry for

working towards an environmentally sustainable industry while pursuing the objective of creation of a better society.

National Award for Excellence in Water Management - by the Confederation of Indian

Industry (CII)

CHAPTER -4

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RESEARCH METHODOLOGY:RESEARCH STUDY: This research aims at studying the customer behavior towards Cement industry . The focus of present research is to study the impact of various impulse buying factors like promotions, price, quality, influence of others, offer etc. on customer perception. DATA COLLECTION METHOD:
1) 2)

PRIMARY DATA: In this the data is collected through surveys, questionnaries etc. SECONDARY DATA: Data collected through articles , review of literature etc.

RESEARCH PLAN: Our research is descriptive research and it will be held through details and through questionnaries methods or techniques. SAMPLE GEOGRAPHY: The area that we have taken for our research is Bilaspur(HP), which is very large place with different diversity. SAMPLING PLAN: a) Population: The populations interviewed in the research are Bilaspur of Himachal Pradesh. b) Sample Size: Owing to the constraints of time & budget , the sample size is restricted . c) Sample Element: The sample elements of the research are people of Bilaspur, Himachal Pradesh. d) Sample Unit: 300. SAMPLING TECHNIQUE: The sampling technique used is convenience sampling. RESEARCH DESIGN: A research design is the detailed blue print used to guide a research study towards its objectives. It helps to collect measure and then analyze the data. NATURE OF RESEARCH: The study undertaken is of Qualitative in nature. It is structured, standardized, question based. CHAPTER -5
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OBSERVATIONS, DATA COLLECTION OBSERVATIONS:1. Initially ACC and Ahad good market share but now it is losing its market share. 2. Price of authorized dealer are high so it should be control. 3. Packaging of bags should be done properly. 4. Meeting should be organized for sub-dealers. 5. Impact of advertisement is low. 6. Quality of ACC is best. 7. Gifts are not provided to sub-dealers and customers. 8. The sales of cement depend on climate condition and availability of water . 9. Bilaspur(Ghumarwin) is the area where water availability is less . 10. Ambuja have less market share as compared to ACC due its high water consumption.if there is less water supply to the construction done by Ambuja cement then cracks are formed due to lack of water. It is successful in the areas where there is high water availability. 11. Maximum customers perception is that ACC cement consume less water than any other brand. It is old ,trusted and known company so approx 90 % cement customers use ACC cement due to its less water consumption and by its old brand name, reputation and timely availability is also the main reason of sales of ACC cement . 12. Jaypee cement have very small market share due to lack of timely availability ,high water consumption ,lack of good quality as compared to ACC and Ambuja. The plus point is only the package and amount of cement and its cheap price .It is 3 to 4 rupee less than ACC and Ambuja vary from dealer to dealer. 13. JK Lakshmi has no market(negligible) share in Bilaspur as it is not available in Bilaspur. 14. Some people suggest to the brands they use :a. increase availability b. decrease price c. Incresase quality
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d. Introduction of schemes and gift for cutomers . 15. People in Bilaspur came to know about the brand ,specially by Mason.Very less influence engineers and architects.

DATA COLLECTION:Data is collected through market survey. Sample was 300 respondents of Ghumarwin(Bilaspur). METHOD OF COLLECTION:Field procedure for gathering primary data included observation and interview schedule in which the questionnaire were filed by the interviewer, while the observation was done on the basis of survey and observing the various situations in different places in Ghumarwin, distt. Bilaspur.

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CHAPTER -6 ANALYSIS, AND INTERPRETATION OF CONSUMER PERCEPTION TOWARDS CEMENT INDUSTRY(300 RESPONDENTS)
Q)

While thinking of cement which brand comes in your mind? ACC JK Lakshmi Ambuja Others Jaypee Cement

COMPANIES ACC Ambuja Jay Pee JK Lakshmi Others Total

CONSUMERS 234 47 19 0 0 300

PERCENTAGE 78% 16% 6% 0 0 100%

ACC Ambuja Ja PE y E JKLa s i k hm Others

From above table we can see that while thinking of the cement ACC brand comes in the mind of 234 consumers, Ambuja comes in the mind of 47 consumers and Jaypee brand comes I the mind of 19 consumers out of 300 consumers. INTERPRITATION:- It means that 78% thinks about the ACC cement due its strong reputation and old company. 16% thinks about the Ambuja cement and only 6% thinks about the Jaypee

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cement. So Ambuja and Jaypee has less market shre as compare to ACC cement. JK Lakshmi has no market share. Q) Which brand do you use? ACC JK Lakshmi Ambuja Others Jaypee Cement

COMPANIES ACC Ambuja Jay Pee JK Lakshmi Others Total

CONSUMERS 234 47 19 0 0 300

PERCENTAGE 78% 16% 6% 0 0 100%

AC C Am buja Ja PE y E JKLa s i k hm Others

From above table we can see that out of 300 consumers, 234 consumers use ACC cement, 47 use Ambuja cement and only 19 consumers use Jaypee cement. INTERPRITATION:- It means that 78% consumers use ACC cement due its best quality, timely availability, strong reputation and old company. It requires less water as compare as compare to Ambuja cement. 16% consumers use Ambuja cement because it require more water as compare to ACC. Only 6% consumer use Jaypee cement due to its timely unavailability.

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Q)

Who influence to buy this particular brand? Engineers Architect INFLUENCER Engineers Advertisement Dalers Architect Mason Total Advertisement Mason CONSUMERS 20 34 32 18 196 300 PERCENTAGE 7% 11% 11% 6% 65% 100% Dealers

250 200 150 100 50 0 E ineers ng Adv ertis ent em Dea lers Architect Ma on s Influence

From above table we can see that out of 300 consumers 20 consumers are influenced by engineers. 34 consumers are influenced by advertisements. 32 consumers are influenced by dealers. 18 consumers are influenced by architects and 196 cosumers are influenced by masons. INTERPRITATION:- It means that 7% consumers are influenced by engineers. 11% consumers are influenced by advertisement and dealers. 6% are influenced by architect. And 65% are influenced by masons. It means that masons play a vital role to influence the consumers. And very less are influenced by engineers and architects.

Q) Is the influencer provide you complete knowledge about the product? Yes No

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INFLUENCERS Engineers Advertisement Dealers Architect Mason Total

350 300 250 200 150 100 50 0 Yes

Yes 20 33 28 18 188 287

No 0 1 4 0 8 13

Total 20 34 32 18 196 300

Percentage 100% 97% 88% 100% 96% 96%

K nowledg e

N o

200 150 100 50 0 Yes No E ineers ng Advertis ent em Dea lers Architect Ma on s

INTERPRETATION:- From the above graph we can see that engineers and architects provide full knowledge to consumers. Advertisements provides 97% knowledge to consumers. Dealers provides 88% knowledge to consumers. And masons provides 96% knowledge to consumers.

Q)

If you influenced by advertisement then by which media you got influenced? Daily Newspapers Internet Magazines Others Television

ADVERTISEMENT Daily Newspapers Magazines Television Internet Others Total

CONSUMERS 6 1 27 26 0 0 34

PERCENTAGE 17% 3% 80% 0% 0% 100%

30 25 20 15 10 5 0 N s pers ew pa Ma a ines gz T elevis ion Internet O thers Media

Onlt 34 consumers are influenced by by advertisement media. From above table we can see that out of 34 consumers 27 are influenced by television advertisement and 6 are influenced by daily newspapers.

INTERPRETATION:- From above graph we can see that mostly consumers are influenced by television advertisement media i.e. 80%. And a few are influenced by daily newspapers(17%) and magazines(3%). And no one are influenced by internet advertisement media.

Q) Do you know all the services provided by your brand? Yes

350 300 250 200 150 100 50 0 Yes N o S ices erv

No

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INTERPRETATION:- From above graph we can see that very less consumers know about the services provided by their cement brands. Only 6 consumers out of 300 consumers know about the services provided by their brands. And 294 consumers dont know the services provided by their cement brands. It means that only 2% know about the services and 98% consumers dont know about the services provided by their cement brands. Q) Which of the following factor you consider, while choosing the cement? Price Timely Availability FACTORS Price Quality Services Timely Availability Bag(Appearance) Total
300 250 200 150 100 50 0 Price Qua lity S ervices T elyAva bility im ila Appera nce F ctor a

Quality Bag (appearance)

Services

CONSUMERS PERCENTAGE 14 5% 250 83% 0 0% 36 12% 0 0% 300 100%

From the above table we can see that out of 300 consumers 14 see the price while choosing the cement. 250 consumers see the quality and 36 see the timely availability. No one see the services and bag(appearance), while choosing the cement. INTERPRETATION:- We can see that mostly consumers see the quality while choosing the cement, i.e. 83% consumers see the quality. 12% see the timely availability. And 5% see the price while choosing the cement. Q) Are you getting full 50 kg of cement in a cement bag? Yes No

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300 250 200 150 100 50 0 Yes No 50k g

INTERPRETATION:- From above graph we can see that out of 300 consumers 273 consumers says that they get full 50 kg cement in the cement bag, i.e. 91% consumers says this. 27 consumers says that they dont get full 50kg cement in their cement bags, i.e. 9% says this. It means mostly consumers get full 50kg of cement in their cement bags.

Q)

Likert scale questions (Ranking):1 = Very Poor, 2 = Poor, 3 = Average, 4 = Good, 5 = Very Good (Attributes) (Company)
250 200 150 100

ACC 228 228 72 86

Ambuja JK Lakshmi 51 51 30 35 0 0 0 0

Jaypee Cement 21 21 198 179

Others 0 0 0 0

Total 300 300 300 300 300

a) Quality b) Service c) Price d) Bag(Appearance)

0 50

ACC Ambuja Ja Pee y JKLa s k hmi Others

e) Timely Quality Availability Price 236

42 S es 0 Bag ervic (Appea22 e) ra nc

T0 imely Ava bility ila

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Q)

Do you use same brand of cement for every type of construction (i.e. for small scale and large scale)? Yes No

300 250 200 150 100 50 0 Yes No S m B nd a e ra

INTERPRETATION:- From above graph we can see that out 300 consumers 252 says that they use same cement brand for their construction, i.e. 84% use same cement brand. And 48 says that they dont use same cement brand for their construction, i.e. 16% dont use same cement brand for their construction. Q) Are you satisfied with your existing brand ? Yes COMPANIES ACC Ambuja Jay Pee JK Lakshmi Others Total No Yes 231 45 19 0 0 295 No 3 2 0 0 0 5 Total 234 47 19 0 0 300 Percentage 99% 96% 100% 98%

250 200 150 100 50 0 Yes N o ACC Am buja Ja Pee y JKL k hm as i O thers

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From above table out of 300 consumers 295 consumers say that they satisfy with their cement brands, only 5 say that they dont satisfy with their cement brands. Out of 300 consumers 234 use ACC cement. And out of 234 consumers 231 say that thay satisfy with ACC. And out of 300 consumers 47 use Ambuja cement. And out of 47 consumers 45 satisfy with Ambuja cement. And out 300 consumers 19 use Jaypee cement and all are satisfy with Jaypee cement. INTERPRETATION:- Here, 99% consumers of ACC satisfy with their cement. 96% consumers of Ambuja satisfy with their cement brand. And 100% consumers of Jaypee cement satisfy with their cement brand. It means mostly consumers are satisfied with their cement brands, i.e. 98% consumers are satisfied with their cement brands. Q) If cost of cement you are using increases ,then would you shift to another brand? Yes COMPANIES ACC Ambuja Jay Pee JK Lakshmi Others Total No Yes 159 29 12 0 0 200 No 75 18 7 0 0 100 Total 234 47 19 0 0 300 Percentage 32% 38% 37% 33%

From the above table we can see that out of 234 ACC consumers 75 consumers say that they will not change their brand. And out of 47 Ambuja consumers 18 consumers are brand loyal. And out of 19 Jaypee consumers 7 consumers are brand loyal. Overall 100 consumers are brand loyal out of 300 consumers.
200 150 100 50 0 Yes No ACC Am buja Ja Pee y JKLa s i k hm O thers

INTERPRETATION:- Here 32% ACC customers are brand loyal. 32% Amubuja customers are brand loyal. 37% Jaypee customers are brand loyal.Overall 33% customers are brand loyal. And

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67% customers are not brand loyal and say that they will shift to another brand if cost of cement they are using increases.

CHAPTER 7 FINDINGS SUGGESTIONS & CONCLUSION FINDINGS Price of cement vary from dealer to dealer, so it should be control. customers.

Proper promotional schemes are not being provided by the company to sub-dealers and Meeting should be organized for dealers and consumers.

Impact of advertisement is low. Quality of ACC is best.

Quality of Ambuja cement is also best but it consumes more water as compare to other cement brands.

Gifts are not provided to customers. The price and bag(appearance) of Jaypee cement is best as compare to other brands.

The price of ACC cement is high in Bilaspur as compare to Punjab, while ACC cement is manufactured in Bilaspur(H.P). SUGGESTIONS

1. 2. 3. 4.

Cash discount should be provided to customers for bulk purchasing. Provide supply at time. Because market has a rule first come first serve. Customers wait for supply. Therefore service must be quick. More schemes, gifts as these are the catalyst of market should be made available at right time. Schemes must be proper so that customer can be attracted. Company should provide more Ads material in the form of glow sign board with shop names, banners, wall painting & hoarding. cannot

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5. 6. 7. 8. 9. 10. 11.

The information should be for customer like, what should be the ratio of cement and sand for RCC, HOUSE, HOTEL etc. Company should check on main mediators for proper supply. Company should focus on Price cutting otherwise competitors are eating market share of ACC because competitors are providing cement at low price. Customer feedback must be taken timely and regularly. Packaging should be done properly to prevent cement from leaking from bags during Company should provide cement at low price in Himachal Pradesh for competing Price of ACC cement should be uniform everywhere, i.e. in Punjab the price of ACC

loading and unloading. effectively and efficiently, because mostly people are price conscious. cement is less than as compare to Himachal. CONCLUSION People in Bilaspur(Ghumarwin) are price sensitive so now they are preferring to competitors product. Mostly people are influenced by mason rather than architect, engineers, dealers and advertisement. ACC cement is available everywhere in Bilaspur(Ghumarwin) area. The price of ACC and Ambuja cement is almost same. But ACC requires less water rather than other cement brands. Thats why ACC has large market share in Bilaspur(Ghumarwin). ACC and Ambuja should give attention to price of cement, it should provide cement at equal to competitors price and gifts should also be provided time to time to dealers and customers for delighting them. So that ACC and Ambuja could increase its market share easily. The price of Jaypee is also less as compare to ACC and Ambuja cement. The bag(appearance) of Jaypee cement is best as compare to ACC and Ambuja cement. ACC and Ambuja cement should improve the quality of their cement bags to attract the customers.

Questionnaire
Dear Customers, My name is Ritesh Gautam and I am pursuing MBA from Lovely Professional University. I am doing a research on consumer perception towards cement industry and for the accomplishment of this research questionnaire is used, so please be unbiased while filling this questionnaire. This information will be kept confidential.
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Name ______________________

Gender : M/F

Contact no :____________________ Age :______________

Address_____________________________________

1) While thinking of cement which brand comes in your mind and why? ACC JK Lakshmi 2) Constructing what? _______________________________________________________________________ 3) Which brand do you use and why? ACC JK Lakshmi Ambuja Others Jaypee Cement Ambuja Others Jaypee Cement

_______________________________________________________________________

_______________________________________________________________________ _______________________________________________________________________ 4) Who influence to buy this particular brand? Engineers Architect Advertisement Mason Dealers

5) Is influencer provide you complete knowledge about the product? Yes No

6) If you influenced by advertisement then by which media you got influenced? Daily Newspapers Internet Magazines Others Television

7) Do you know all the services provided by your brand, if yes then specify? Yes No

______________________________________________________________________ ______________________________________________________________________ 8) Which of the following factor you consider, while choosing the cement? Price Timely Availability Quality Bag (appearance) Services

9) Are you getting full 50 kg of cement in a cement bag?

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Yes
10)

No

Likert scale questions (Ranking):1 = Very Poor, 2 = Poor, 3 = Average, 4 = Good, 5 = Very Good

(Attributes) (Company) f) Quality g) Service h) Price i) Bag(Appearance) j) Timely Availability

ACC

Ambuja

JK Lakshmi

Jaypee Cement

Others

11) Do you use same brand of cement for every type of construction (i.e. for small scale and large scale)? Yes No

12) Are you satisfied with your existing brand ? Yes No 13) If cost of cement you are using increases ,then would you shift to another brand? Yes No 14) Any suggestion for the brand which you are using? _______________________________________________________________________

BIBLIOGRAPHY BOOKS:MARKETINF RESEARCH MARKERING MANAGEMENT MARKERING MANAGEMENT BY: R.C KOTHARI BY: S.A. SHARLEKER BY: PHILIP KOTLER

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WEBSITES:en.wikipedia.org/wiki/acc en.wikipedia.org/wiki/ambuja_cement wikimapia.org//Jay-pee-cement-grindi en.wikipedia.org/wiki/jk_lakshmi en.wikipedia.org/wiki/category:cement www.inece.org/mmcourse

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