Fr. C.

Rodrigues Institute of Management Studies

Sector 9 A, Vashi, Navi Mumbai - 400703.

Project Report on Ultratech Cement

(Marketing Management)

Prepared by:-
Paresh Sawant (Roll no.30)
 Ultratech Cement- Project Report
Overview:-
UltraTech Cement Ltd. is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and
white cement in India. It is also one of the leading cement producers globally. UltraTech as a brand
embodies 'strength', 'reliability' and 'innovation'. Together, these attributes inspire engineers to
stretch the limits of their imagination to create homes, buildings and structures that define the new
India.

The company has an installed capacity of 62 Million Tonnes Per Annum (MTPA) of grey cement.
UltraTech Cement has 12 integrated plants, 1 clinkerisation plant, 16 grinding units and 6 bulk
terminals. Its operations span across India, UAE, Bahrain, Bangladesh and Sri Lanka. UltraTech
Cement is also India's largest exporter of cement reaching out to meet the demand in countries
around the Indian Ocean and the Middle East.

In the white cement segment, UltraTech goes to market under the brand name of Birla White. It has
a white cement plant with a capacity of 0.56 MTPA and 2 WallCare putty plants with a combined
capacity of 0.8 MTPA.

With more than 100 Ready Mix Concrete (RMC) plants in 35 cities, UltraTech is the largest
manufacturer of concrete in India. It also has a slew of speciality concretes that meet specific needs
of discerning customers.

Our Building Products business is an innovation hub that offers an array of scientifically engineered
products to cater to new-age constructions. Aerated Autoclaved Concrete (AAC) blocks are
economical, light-weight blocks ideal for high-rise buildings, while Dry Mix Products include
waterproofing, grouting and plastering solutions designed for faster completion of projects. The
retail format of UltraTech Building Solutions offers a wide range of construction products to the end
customers under one roof.

With its significant presence in grey and white cement, concrete, building products and building
solutions, UltraTech is a one-stop shop for all primary construction needs. Its meteoric rise as the
largest cement brand in India reflects the organisation's focus on cutting edge technology, research
and technical services.

UltraTech Cement provides a range of products that cater to the needs of various aspects of
construction, starting from foundation to finish. These include:

Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement
under grey cement.

White cement, Wall Care putty and white cement based products under Birla White.

Ready Mix Concrete and a range of specialty concretes with specific functional properties under
UltraTech Concrete.

AAC blocks, waterproofing solutions, grouting solutions and plastering solutions under UltraTech
Building Products.
UltraTech’s subsidiaries are Dakshin Cements Limited, Harish Cement Limited, Gotan Limestone
KhaujUdyog Private Limited, Bhagwati Limestone Company Private Limited, UltraTech Cement Lanka
(Pvt.) (Ltd.), UltraTech Cement Middle East Investments Limited, PT UltraTech Mining Indonesia and
PT UltraTech Investments Indonesia.

UltraTech’s parent company, the Aditya Birla Group, is in the league of Fortune 500 companies. It
employs a diverse workforce comprising of 120,000 employees, belonging to 42 different
nationalities across 36 countries. The Group has been ranked number 4 in the global 'Top Companies
for Leaders' survey and ranked number 1 in Asia Pacific for 2011. 'Top Companies for Leaders' is the
most comprehensive study of organisational leadership in the world conducted by Aon Hewitt,
Fortune Magazine and RBL (a strategic HR and Leadership Advisory firm). The Group has topped the
Nielsen's Corporate Image Monitor 2012-13 and emerged as the number 1 corporate, the 'Best in
Class'.

History Of Ultratech Cement:

1983 -Awarpur Cement Works Plant I

1987 -Awarpur Cement Works Plant II

1993 -Jharsuguda grinding unit

1994 -Hirmi Cement Works

1996 -Gujarat Cement Works Plant I

1998 -Andhra Pradesh Cement Works -Gujarat Cement Works Plant II

1999 -Narmada Cement Company Limited acquired Ratnagiri Cement Works

2000 -Bulk cement terminals at Mangalore, Navi Mumbai and Colombo

2001 -Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to 15.3 per cent by
October 2002 -Durgapur grinding unit

2002 -Grasim increases its stake in L&T to 14.15 per cent at Arakkonam grinding unit.

-The Grasim Board approves an open offer for purchase of up to 20 per cent of the equity shares of
Larsen & Toubro Ltd (L&T), in accordance with the provisions and guidelines issued by the Securities
& Exchange Board of India (SEBI) Regulations, 1997.

2003 -The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement business into a
separate cement company (CemCo). Grasim decides to acquire an 8.5 per cent equity stake from
L&T and then make an open offer for 30 per cent of the equity of CemCo, to acquire management
control of the company.

2004 -Completion of the implementation process to demerge the cement business of L&T and
completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed
company UltraTech.

2006 -Narmada Cement Company Limited amalgamated with UltraTech pursuant to a Scheme of
Amalgamation being approved by the Board for Industrial & Financial Reconstruction (BIFR) in terms
of the provision of Sick Industrial Companies Act (Special Provisions) - Formerly known as
UltratechCemco Limited. The Group's principal activities are to manufacture and market clinker and
cement in India.

- Ultratech Cement Ltd has inducted Mr. SaurabhMisra into the Board as an Additional Director and
appointed Managing Director of the Company.

- Ultratech Cement receives order from BIFR.

- Ultratech Cement Ltd has appointed Mr Girish M Dave as a Director on the Board of the Company.

2009 -UltraTech to absorb Samruddhi to form India's biggest cement firm

-Ultratech to be the lead sponsors of Rajasthan Royals

-UltraTech to consider Grasim merger proposal

2010 -Ultratech Cement Ltd has appointed Mr. O P Puranmalka as Additional Director with
immediate effect.

2011 -UltraTech Cement Ltd has recommended a final dividend of Rs. 6/-

2012 -UltraTech Cement Ltd has acquired 100 per cent equity shares of Gotan Limestone
KhanijUdyog Pvt Ltd (GKUPL), Rajasthan.

Products:
Ultratech Cement

Ultratech Concrete

Ultratech Building Solutions

Ultratech Building products

Birla White cement

Businesses:
UltraTech Cement Limited is the largest cement company in India and among the leading producers
of cement globally. UltraTech is also the largest manufacturer of white cement and ready mix
concrete in India.

UltraTech Cement provides a range of products that cater to the needs of various aspects of
construction, ranging from foundation to finish. This includes Ordinary Portland Cement, Portland
Blast Furnace Slag Cement, Portland Pozzalana Cement, White Cement, Ready Mix Concrete,
building products and a host of other building solutions. Cement is sold under the brands ‘UltraTech,
UltraTech Premium and Birla Super.’ White cement is manufactured under the brand name of ‘Birla
White’, ready mix concretes under the name of ‘UltraTech Concrete’ and new age building products
under the names of ‘Xtralite, Fixoblock, Seal & Dry and Readiplast’. UltraTech Building Solutions is a
retail format that caters to the end consumer providing a variety of primary construction materials
under one roof.

UltraTech Cement has 12 integrated plants, 1 clinkerisation unit, 16 grinding units, 6 bulk terminals,
1 white cement plant, 2 WallCare putty plants and 101 RMC plants – spanning India, UAE, Bahrain,
Bangladesh and Sri Lanka. UltraTech Cement is also India's largest exporter of cement and clinker
reaching out to meet demand in countries around the Indian Ocean, Africa, Europe and the Middle
East.

The company's subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech
Cement Lanka (Pvt.) Ltd and UltraTech Cement Middle East Investments Limited.

Logistics:
Over the years, UltraTech has achieved market leadership by providing benchmark services to
customers by adopting customer oriented processes at every stage, right from planning to delivery.

Through a robust logistics network of 30 plants, 500 plus warehouses and 150 plus railheads,
UltraTech serves 14000 orders per day by using a mix of various logistics modes including rail, road
and sea. These orders originate from 50000 plus dealers, retailers and institutional customers with
lot size varying from of 1 MT to 40 MT. The key to managing such scale and complexity is the use of
robust processes for planning, distribution, network design, order execution, visibility and optimal
resource utilization.

UltraTech has been one of the leaders in the Indian Cement Industry in using technology to provide
real time visibility across all stake holders. From our channel partners (dealers, institutional
customers), service partners (handling and transporting agents, railways) and even internal
functional teams, this visibility enables optimal business decisions on a daily basis.

With an eye on the future, UltraTech has implemented an RFID based Vehicle Movement System at
one of its plants to monitor real-time, in-plant movement of vehicles, improve overall safety inside
the plant and reduce the overall time taken within the plant for road loading.

Some of the Best-in-class SCM processes adopted by Ultratech

include:-
• Network optimization

• Web and mobile based order management system with real time visibility of order status

• Customer service level measurement on real time basis

• GPS based vehicle tracking system for dedicated fleet

• Automation at secondary service points like railheads and godowns

• RFID based vehicle movement system to reduce in-plant time of vehicles

Sea Logistics:
Sea transport is the most economic mode of transport, especially where plants are situated near
ports. UltraTech is focused on sea mode as it is safe, environment friendly & pollution free.

UltraTech has its operation on the Indian west coast with the loading terminals situated at Pipavav
and Jafarabad, Gujarat. The supplies goes to Magdalla, JNPT-Mumbai, Ratnagiri, New Mangalore,
Cochin and export to Sri Lanka, Persian Gulf, African continent and Far Eastern regions.

The state of the art system includes the cargo conveying and handling system as a part of the
cement plant. This captive jetty handles about 5 million tonnes of captive cargoes of cement and
clinker, with more than 80% berth occupancy rate.

Brand Achievements:
UltraTech Cement has been honoured with the title of the consumer validated award -
'SUPERBRAND' for the years 2011, 2012, 2013 and 2014 by the Superbrands Council. It has also been
bestowed with the title of the customer selected 'POWERBRAND' for the year 2012 and 2014 by
Powerbrands India.
Superbrands is a global organisation that recognizes, showcases and pays tribute to the best brands
in each country. It is a prestigious award and recognizes the brand custodian's persevering efforts to
build a brand that is strong on consumer perceptions, thereby making it resilient to fluctuating
economic conditions.
For the fourth edition of Consumer Superbrands, UltraTech was a part of an exclusive group of
winners selected first by the consumer and then by an independent Superbrands Council comprising
of the most eminent professionals from India's corporate sector. This is an important recognition of
our efforts and serves our objective of getting closer to the consumer. In a market comprising of
several highly regarded competitors, this is certainly an outstanding achievement.
Birla White, the white cement brand of UltraTech, too has earned the distinction of 'SUPERBRAND'
for the fourth consecutive time and is also a 'POWERBRAND'.
We have been recognised as the largest cement company in 2011 and 2012 by Construction World
and the Business World has ranked us as one of the fastest growing companies in 2014.
Business Environment:

UltraTech strives to adopt an eco-friendly approach across all areas of its business operations. We
are one of the earliest proponents of alternative fuel usage, waste heat recovery and other
environment friendly practices in the country.

Focus areas:
UltraTech's social projects are designed with the long-term goal of creating sustainability and self-
reliance. Hence, the projects focus on factors that will lead to empowerment and capacity building.
Though UltraTech operates in five focus areas, its major emphasis has been on providing quality
education and healthcare facilities. Importance is also given to building infrastructure, as ultimately
it is the tool that fuels growth. The results of these projects will not only benefit their respective
communities but also the nation at large.
The company's CSR activities are concentrated in 407 villages, in proximity to its 22 plants, across the
country.

Infrastructure, Watershed Management & Environment:

To conserve water for agriculture and domestic uses, 12 ponds and 19 check dams were
repaired/built at Jafrabad, Awarpur, Hirmi, Malkhed, Kovaya, Rawan, Khor and KhariaKhangar.
Approach roads were built in three villages at Tadipatri and repaired in 12 villages at other locations.
At Malkhed,Tadipatri, Khor, Sambhupura, Reddipalyam, Hirmi and Awarpur 12 School buildings were
repaired and boundary walls constructed. A community hall was instituted in Awarpur.
A plantation drive for enlarging the green belt cover has been taken up at Reddipalyam,
Sambhupura, Kovaya, Jaffrabad, Awarpur, Khor, Hirmi, Rawan, Jharsuguda, Ratnagiri, Kotputli,
Tadipatri and KhariaKhangar.
Marketing Mix (i.e. Price, Place, Product & Promotion):
1. Price
• Price of Cement includes the transportation cost also so there is a little difference in the prices
of cement.
• In Gujarat, for the bag of 25 kg of cement the price of cement is around Rs.320 which cost to
Rs.12 -13 per kg.
• Discounts are given on the bulk orders or as per the contract.
• Allowances are given to the customers for their purchases direct from the manufacturing units.
• Credit Facilities are given to the customers.

2. Product
• Ordinary Portland Cement

Ordinary Portland cement is the most commonly used cement for a wide range
of applications.

• Portland blast-furnace slag Cement

UltraTech Premium is a concrete special cement, produced in UltraTech's state-of-the-art

manufacturing facilities.

 Portland Pozzolana Cement

Portland Pozzolana cement is ordinary Portland cement intimately blended or interground with
pozzolanic materials such as fly ash, calcined clay, rice husk ash etc.

Portland cement clinker is either interground or intimately blended with specified quantities of
gypsum and pozzolanic materials to produce Portland Pozzolana cement. Pozzolanas by themselves
do not have cementitious properties but reacts with calcium hydroxide in the presence of moisture
at normal temperature to form compounds having cementitious properties. The concrete produced
by using Portland Pozzolana cement has high ultimate strength, is more durable, resists wet
cracking, thermal cracking and has a high degree of cohesion and workability in concrete and
mortar.

 Cement complying with European and Sri Lankan standard specifications

UltraTech's bulk cement terminal is located at Colombo in Sri Lanka.

3. Place
• Focus more on rural areas as an emerging sector

• No need to have a vast distribution network to increase outreach

• 23 cement plants located all over India (4 New under construction)

4. Promotion
• Cashing in on the brand name of L&T Cement

• Establishing Franchisee network

• Through IPL team sponsorship of Rajasthan Royals

• Banners and hoardings on public transport vehicles and bus stops

Competitors For UltraTech Cement Ltd.

Company Current Price Book Value P/E Ratio Market Cap
(Rs. Cr.)

OCL India Ltd. 307.75 195.06 17.89 1,751.10

Prism Cement Ltd. 75.70 20.03 0.00 3,810.41

Sagar Cements Ltd. 310.50 138.52 0.00 539.90

ACC Ltd. 1,463.05 416.33 25.09 27,498.03

Ambuja Cements Ltd. 222.15 61.24 26.58 34,411.05

J K Lakshmi Cement Ltd. 382.05 110.75 48.34 4,495.58

J K Cement Ltd. 651.20 251.47 46.93 4,553.66

Heidelberg
Cement India 88.65 36.77 0.00 2,008.93
Ltd.

Gujarat
Sidhee 30.70 34.25 0.00 130.19
Cement Ltd.

Orient
141.15 40.45 28.63 2,891.72
Cement Ltd.

Marketing of Ultratech Cement:

Marketing is the process of communicating the value of a product or service to customers.
Marketing might sometimes be interpreted as the art of selling products, but sales is only
one part of marketing. As the term "Marketing" may replace "Advertising" it is the overall
strategy and function of promoting a product or service to the customer. From a societal
point of view, marketing is the link between a society’s material requirements and its
economic patterns of response. Marketing satisfies these needs and wants through
exchange processes and building long term relationships. The process of communicating the
value of a product or service through positioning to customers. Marketing can be looked at
as an organizational function and a set of processes for creating, delivering and
communicating value to customers, and managing customer relationships in ways that
benefit the organization and its shareholders. Marketing is the science of choosing target
markets through market analysis and market segmentation, as well as understanding
consumer buying behavior and providing superior customer value. Products related to
marketing

• Ultratech Cement

• Ultratech Concrete

• Ultratech Building Products

• Ultratech Building Solutions

• Birla White

• Star Cement

Marketing Orientation Production Concept :

The Production Concept is one of the oldest concepts in business. Production Concepts say
that, ‘consumer will prefer that product which is economical in nature and which is easily
available in the market’. According to this concept company should concentrate on achieving
high production efficiency, low cost and mass distribution. Product Concept –Product
concept says that a product which is having unique and distinguishes features than its
competitors is preferred by the customers. It means that product concept holds that
consumer will favour those products that offer the most quality performance or innovative
features. Selling Concept –Selling concept says that a market should aggressively promote its
product or market or should put an effort to promote its product. Otherwise it will not be
purchased by the customers. In other words if your product is good in quality and features
than also aggressive marketing should be done. The purpose of such companies is to sell
more for earning more profits. Advertising with celebrities and various schemes can be
helpful. Marketing Concept –The Marketing concept emerged in the mod of 1950s. The
marketing concept says that marketer should undertake aggressive marketing strategy to
understand the needs of the customers. The marketing concept says that the key to
achieving organizational goals consists of the company being more effective than
competitors in creating, delivering and communicating superior value to its customers .
 Societal Marketing
This concept suggests that every marketer should provide the qualitative goods at a
reasonable price to fulfil his service towards the society. Holistic Marketing – This concept is
based on the development, design and implementation of marketing programs, processes
and activities that recognize their breadth and interdependence. Holistic marketing
recognize that everything matters with marketing. It integrates all the aspect of the business
like internal marketing, relationship marketing, integrated marketing and social
responsibility.

About Company: In the Company there is a use of Product concept as it gives the
different types of cement to the customers and consumers. There is a frequent use of
Marketing concept and Holistic concept as in today’s world customer or consumer
satisfaction is mainly seen to retain the customer and to make them a hardcore loyal
towards the company.

 Branding Efforts towards Branding Brand UltraTech enjoys a niche space in the minds of its
customers. It represents ‘expertise’, ‘strength’ and ‘modernity’, all interwoven with the help
of a strong emotional connect. The company doesn’t just sell a product or a service, it sells
solutions. These solutions help people build their lives and sustain them for generations.
UltraTech is often known as ‘the expert who cares’. The title, while reinforcing the values
that UltraTech stands for, also signifies the strong bond that exists between the brand and
its customers, which has been forged over the years. The UltraTech brand not only helps
build cities and homes, it helps build trust and ultimately, builds lives. The name inspires
trust among all the stakeholders engineers, builders, contractors, individual house owners,
governments, investors, shareholders and the society at large. The brand has consistently
justified this trust. The brand’s positioning of ‘being the expert’ translates into advertising
imagery that depicts progress, cutting-edge technology and modernity. UltraTech’s famous
tagline ‘The Engineer’s Choice’ reflects its brand promise of being the ‘expert’. Excellent
product quality and customer care are the hallmarks of UltraTech cement.―The name
UltraTech with the signature line, The Engineers Choice, admirably captures the premium
nature of the brand and its salience."Mr. O.P. Puranmalka, Business Director, UltraTech
Cement Limited, and Director, Aditya Birla Management Corporation Private Limited.

  Branding Scope
The UltraTech brand bears a strong association with popular Indian sports namely cricket
and hockey. The in-film branding with ‘Chak De India’ and the IPL connect with the Rajasthan
Royals (Season 2, 3 & 5) and Deccan Chargers (Season4) has made UltraTech a youthful
brand to reckon with. Birla White’s homegrown ‘Yuvaratna’ Awards recognise architectural
and engineering excellence. UltraTech is also associated with the Business India exhibition -
‘A Celebration of Architecture’. All these affiliations have strengthened Brand UltraTech’s
association with the fraternity of students, engineers, architects, builders and the
construction community at large.

 Related to Price, the regional variation in the Indian market has resulted in the cement
prices across regions witnessing movement within a band, with no appreciable increase in
any region. Differences in regional demand supply situation have translated into price
differences across regions. Prices are lower in Southern regions where there is normally a
 supply surplus. However, prices are higher in Eastern and Western regions where shortages
exist. The surplus position had resulted in significant pressure on price realizations in recent
years. In the field of marketing management process, it basically consists of four steps: 1.
Analyzing marketing opportunities. 2. Selecting target markets. 3. Developing the marketing
mix. 4. Managing the marketing effort

About Company: Price of Cement differs as per the Geographical Area. Price of Cement
includes the transportation cost also so there is a little difference in the prices of cement In
Gujarat, for the bag of 25kg of cement the price of cement is around 320 Rs which cost to
12-13Rs per kg. Discounts are given on the bulk orders or as per the contract. Allowances are
given to the customers for their purchases direct from the manufacturing units. Credit
Facilities are given to the customers.

  Related to Place: Distribution Channel Companies invariably hire agents or transport

cements to own or government warehouses either via roadway or railways. In case of
exports, cement reaches the nearest port via roadways or railways and is then transferred to
the importing country. Domestically, from agents or warehouses the cement is transported
to the dealers/distributors and in turn to sub dealers who finally sell it to the end users.
There may or may not be physical ownership of goods. In the second case, dealers and sub
dealers take order from buyers and place it to the companies, coordinate and monitor the
timely dispatch of said orders. There is a use of 3 levels of channeling. Manufacturer to
Agents to Wholesaler to Retailer to End User.

 Supply Chain: The team orders and maintains the inventory of stock keeping units so
that unit does not run out of critical supplies at any point. The team also ensures that all
stock keeping units of items used in the unit are received at stores from vendors and
distributed to the different outlets on time. Other functions include: Distribution Function
Configuration Number, location and network missions of suppliers, production facilities,
distribution centers, warehouses, cross-docks and customers. Distribution Strategy Includes
functions of operating control (centralized , decentralized or shared), delivery scheme (e.g.,
direct shipment, pool point shipping, Cross Docking, DSD(direct store delivery). Information
Integration of and other processes through the supply chain to share valuable information,
including demand signals, forecasts, inventory, transportation, and potential collaboration
etc. Inventory Management: Quantity and location of inventory including raw materials,
work-in-process and finished goods.

 Related to Promotion: Promotion is one of the four elements of marketing mix

(product, price, promotion, distribution). It is the communication link between sellers and
buyers for the purpose of influencing, informing, or persuading a potential buyers
purchasing decision. There are seven main aspects of a promotional mix these are -
Advertising - Any paid presentation and promotion of ideas, goods, or services by an
identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures
and catalogue, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and
emails.
 Personal Selling: A process of helping and persuading one or more prospects to
purchase a good or service or to act on any idea through the use of an oral presentation.
Examples: Sales presentations, sales meetings, sales training and incentive programs for
intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.
Sales promotion - Media and non-media marketing communication are employed for a pre-
determined, limited time to increase consumer demand, stimulate market demand or
improve product availability. Examples: Coupons, sweepstakes, contests, product samples,
rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions. Public
relations - Paid intimate stimulation of supply for a product, service, or business unit by
planting significant news about it or a favourable presentation of it in the media. Examples:
Newspaper and magazine articles/reports, TVs and radio presentations, charitable
contributions, speeches, issue advertising and seminars.

 Corporate image: The Image of an organization is a crucial point in marketing. If the

reputation of a company is bad, consumers are less willing to buy a product from this
company as they would have been, if the company had a good image. Direct Marketing - is
often listed as the fifth part of the marketing mix Exhibitions - are try-outs. You make your
product, and let potential buyers try the product, these way, you know directly what people
see in your product. The downside, your competitor can see exactly what you are doing.
How to Establish a Promotional Mix You drive sales by promoting the benefits of your
company’s goods or services to pools of potential buyers. The ways you promote your
organization will largely determine whether you successfully plant the right messages in the
minds of your target audience. This module explains how you can establish a promotional
mix best suited to your company’s needs and resources. Determine Your Target Market
Determine Your Objectives Design Your Message Select Your Promotional Channels
Determine Your Budget Determine Your Promotional Mix Measure the Results and Adjust.

  Promotion through the Product life cycle

As products move through the four stages of the product lifecycle different promotional
strategies should be employed at these stages to ensure the healthy success and life of the
product.

Stages and promotion strategies employed:-

a) Introduction:-When a product is new the organizations objective will be to inform the

target audience of its entry. Television, radio, magazine, coupons etc. may be used to push
the product through the introduction stage of the lifecycle. Push and Pull Strategies will be
used at this crucial stage. Growth As the product becomes accepted by the target market
the organization at this stage of the lifecycle the organization works on the strategy of
further increasing brand awareness to encourage loyalty. Maturity At this stage with
increased competition the organization take persuasive tactics to encourage the consumers
to purchase their product over their rivals. Any differential advantage will be clearly
communicated to the target audience to inform of their benefit over their competitors.
Decline as the product reaches the decline stage the organization will use the strategy of
reminding people of the product to slow the inevitable.

b) Segmentation: Market segmentation consists of a group of customers who share a

similar set of needs and wants. Segmentation refers to divide the customers into groups on
the basis of some common needs or characteristic. Basis of Segmentation Geographical
Segmentation – It refers dividing the customers on the basis of the place where they are
living various geographic areas consists of region, city, rural and semi-rural area. The
purpose of the company for such segmentation is to understand the needs of people living
in different geography. Geographic segmentation is very useful because needs of the
customers are influenced by the geography. Demographic Segmentation – In Demographic
segmentation the market is divided into the groups on the basis of variables such as age,
family size, family life cycle, gender, income, occupation, education, religion, etc. There are
two reasons for using the demographic segmentation one is that it is easier to measure
them while second reason is that customer’s need and wants are different as per the
demographic variable. Psychographic segmentation – Psychographic segmentation refers to
be the division of the customers on the basis of their life style, status, personality and values.

c) Behavioral Segmentation:
In behavioral segmentation buyers are divided into the groups on the basis of their
knowledge and attitude toward the product. Occasion, benefits, usage rate, buyer readiness
stage, loyalty status and attitude are various behavioral segmentation elements. About
Company: Ultratech is doing market segmentation on the basis of Geographical
Segmentation where the segment is done on basis of rural areas, city areas, semi-rural areas
and region.

d) Targeting:
Once the firm has decided its market segmentation opportunities it has to decide how many
and which once to target. Marketers are increasingly combining several variables in efforts
to identify smaller, better defined target groups. Steps of Targeting Evaluation of Target
Market Selection of Target Market 1. Evaluation of Target Market In evaluation of target
market segments a firm must look at the following 3 factors: Segment Size and Growth
Segment Structural attractiveness Company Objective

Selection of Target Market After evaluating different segments the company must decide
which and how many segments to serve in target market. Target market is a set of buyers
sharing common needs or characteristic that the company decides to serve. Undifferentiated
Target Market (Mass Market) Differentiated Target Market (Strategic Market) Concentrated
Target Market (Niche Market) Individual Market (Micro Market)About Company Ultratech
cement is targeting on the basis of Differentiated Market so that the new varieties of cement
can be given to the customers. This step can get success only if segmentation is done
properly.
e) Positioning:
Positioning can be defined as the way by which a product has occupied a place in the minds
of customers related to the competitors. Positioning is the act of designing the company’s
offering and image to occupy a distinctive place in the minds of the target market. To make
the buying decisions easy customers are categorizing the products as per their position in
the minds. A product’s positioning is a complex set of perceptions, impressions and feelings
that consumer holds for the product. Basis of Positioning 1. Product Differentiation 2.
Service Differentiation 3. People Differentiation 4. Image Differentiation About Company
Ultratech uses Product Differentiation and Image Differentiation as its Brand name Aditya
Birla Group itself has a great reputation in the minds of the people.

Marketing Research at Ultratech Cement: Marketing research is a systematic

gathering recording and analysis of data about the problems relating to the marketers of
goods and services. Thus it includes investigation of market, segments, and products. The
market research answers the questions in respect of different markets. The areas of market
research are: Determining the size of both current and also potential market. Assessing the
market brands. Ascertaining the strength and weakness of competitors. The current
contemplated legislations of the government towards the particular product, including
taxation policy Demand and sales forecast

Research & Development Department

Research & Development Department is the back-bone of an organization. It helps the
organizations in developing new products and means to meet the need of customers in an
effective way. It also shows how open is an organization towards the change. In Ultratech
following functions are done by the R & D department: Able to meet customers enhanced
requirements above R & D Able to meet shorter turnaround times demanded by customer
Automated tools helped to meet extra volume of production and new customer
requirements Maintaining leadership as a technologically advanced supplier Customized
Production & Project Management tools development for customers Able to acquire new
projects which involves project management Providing value added services to the
customers and bringing-in additional projects. Introducing new workflow and systems as per
customer’s requirements.

 Strategies Adopted by UltraTech Promise

Excellent product quality and customer care are the hallmark of UltraTech. Capitalizing the
opportunity of the geometric growth in the housing sector and the governments thrust on
infrastructure. Right decision at right time Having excellent Product in hand constantly
striving to improve and capture more number of market share Training to Staff Promotion
through movies Sponsorship Opinion towards Marketing Increase frequency of
advertisements on T.V., radio, internet and print media. Increase Strategic Alliance increase
visibility by campaign and other modes. Increase number of distributors and agents increase
number of warehouse having micro-planning in place.
Performance:
UltraTech Cement Limited is engaged in the business of cement and cement related products. The
Company provides a range of products that cater to all the needs from laying the foundation to
delivering the final touches. The Company manufactures and provides ordinary Portland and
Portland Pozzolana Cement, Ready-Mix Concrete, and White Cement. White cement is
manufactured under Birla White brand, ready mix concretes under UltraTech Concrete brand and
new age building products under UltraTech Building Products Division. The retail outlets of the
Company operate under UltraTech Building Solutions.
The Company is also an exporter of cement clinker spanning export markets in countries across the
Indian Ocean, Africa, Europe and the Middle East. The Company conducts business activity in United
Arab Emirates, Sri Lanka, Bahrain, and Bangladesh.
Prices of most of the input materials increased substantially due to increase in basic prices and
transportation cost. The price of raw material & packaging material increased by around 14 & 15%
respectively and prices of other additives increased by 20-50%.
Despite increase in input cost, the EBITDA margin remained equal to the previous year by using price
efficient fuel pet coke (34% of total) and passing some of the cost to the customers.
Gross interest and finance charges were higher on account of increased borrowings for on-going
capex for capacity expansion. However, the net finance cost fell due to higher capitalization and
thereby, increased the profit margins.
The consolidated sales of the company during FY13 rose by 11% to Rs.21319crore, while the
operating profit rose by nearly 13% to 5143crore. The consolidated net profit for FY13 was
Rs.2677.73, 11% higher as compared to the previous year.
The increase in overall domestic revenue was mainly due to improved demand in the first half of the
year in the market. The sales volume remained as previous year but increase in price in the early
quarters of the year resulted in the increase in revenue by 11%.
The overall export volume fell by 28% but depreciation of the rupee helped in improving realization
by 5%.