“A Study to evaluate effectiveness of various Trade

Promotion & Brand Building Activities : An insight

into Consumer and Dealer Perceptions for Sanghi
Industries Ltd.”

1. INTRODUCTION OF THE STUDY

India is the second largest producer of cement in the world. It accounts for more
than 7% of the global installed capacity. India has a lot of potential for
development in the infrastructure and construction sector and the cement sector
is expected to largely benefit from it. Furthermore, on the back of rising rural
housing demand, the consumption of cement in India has been growing
consistently as it is one of the cheapest products to buy in terms of Rs./kg. Strong
expansion of the industrial sector, which has fully recovered from the COVID-19
pandemic shock, is one of the main demand drivers for the cement industry. As a
result, there is a strong potential for an increase in the long-term demand the
cement industry. Some of the recent initiatives, such as development of 98 smart
cities, is expected to provide a major boost to the sector.

The cement demand in India is estimated to touch 419.92 MT by FY 2027. As

India has a high quantity and quality of limestone deposits through-out the
country, the cement industry promises huge potential for growth. India has a total
of 210 large cement plants out of which 77 are in the states of Andhra Pradesh,
Rajasthan, and Tamil Nadu. Nearly 33% of India's cement production capacity is
based in South India, 22% in North India, 13% in Central and West India, and the
remaining 19% is based in East India. India's cement production is expected
increased at a CAGR of 5.65% between FY16-22, driven by demands in roads,
urban infrastructure and commercial real estate. The consumption of cement in
India is expected grow to at a CAGR of 5.68% from FY16 to FY22. As per Crisil
Ratings, the Indian cement industry is likely to add ~80 million tonnes (MT)
capacity by FY24, the highest since the last 10 years, driven by increasing
spending on housing and infrastructure activities.

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2. STATEMENT OF THE PROBLEM

The industry has undergone rapid technological up

gradation and vibrant growth during the last two decades,
and some of the plants can be compared in every respect
with the best operating plants in the world. The industry is
highly energy intensive and the energy bill in some of the
plants is as high as 60% of cement manufacturing cost.
Although the newer plants are equipped with the latest
state-of-the-art equipment, there exists substantial scope
for reduction in energy consumption in many of the older
plants adopting various energy conservation measures.

Demand in Cement Industry is hence considered as an

important one. The penetration of other companies into the
market is the main problem faced by the company due to
which considerable less market share appears .Conducting
a market research and collecting dealers opinion regarding
the quality, pricing, servicing and the margin provided by
the company is also equally important.

The importance of market share analysis for any industrial

concern need not be over –emphasized. The existence of
adequate demand can make substantial difference between

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 the success and failure of an enterprise. It is important for
the management to pay particular attention to the planning
of the target market.

The research work also acted as a source to find out the

competitors present market situations and psychology
regarding the Sanghi Cement.

I have undertaken this project to find out the presence and

estimate the market share of Sanghi cement.

3. RATIONAL OF THE STUDY

India has a lot of potential for development in the
infrastructure and construction sector and the cement
sector is expected to largely benefit from it. Some of the
recent major initiatives such as development of 98 smart
cities are expected to provide a major boost to the sector.
Expecting such developments in the country and aided by
suitable government foreign policies, several foreign
players such as Lafarge-Holcim, Heidelberg Cement, and
Vicat have invested in the country in the recent past. A
significant factor which aids the growth of this sector is
the ready availability of the raw materials for making
cement, such as limestone and coal.

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 The Government of India is strongly focused on
infrastructure development to boost economic growth and
is aiming for 100 smart cities. The government also
intends to expand the capacity of the railways and the
facilities for handling and storage to ease the
transportation of cement and reduce transportation costs.
These measures would lead to increased construction
activity thereby boosting cement demand.

On the back of growing demand, due to increased

construction and infrastructural activities, the cement
sector in India has seen many investments and
developments in recent times.

4. OBJECTIVE OF THE STUDY

 To assess current consumer sales promotion schemes

and advertising activities by Sanghi Industries Ltd.
(SIL).

 To find out the presence of Sanghi Cement in the

town of Ahmedabad District
 To study market share of Sanghi and competitors in
Ahmedabad District.

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  To find out the dealer’s opinion about certain aspects
Sanghi Cement such as pricing, Quality, Servicing
and margin provided by the company.

 To get an insight into dealers' views regarding the

schemes being offered and ongoing advertising
campaigns by SIL.

 To understand advertising impact on consumers.

 To analyze competitors stagey

5. RESEARCH METHODOLOGY

 Research Design
A research design is the arrangement of the condition for
collection and analysis of data. Actually it is the
blueprint of the research project.

Research design used will be descriptive type.

 Data Collection
Primary Data : It will be collected through structured
questionnaire. Questionnaire will contain close ended
questions.

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 Secondary Data : It will be collected from Business
Newspapers, magazines, books, Journal and websites.

 Sampling Design
Sample Size : 150
Sample Unit : Dealers
Sampling technique : Non Probability Convenience
Sampling

 Data Analysis
Tools for data analysis includes simple arithmetic
calculations like averages, percentages, charts, graphs
etc

6. LIMITATIONS OF STUDY

 I will consider Ahmedabad district for survey because

of time and cost.

 Finding of the study will be based on the assumptions

that respondents have given correct information.
 Information provided by respondents may be biased.

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  The sample size is comparatively very small
compared to the population and there are chances that
it may not represent the whole population.

 The time and cost factors will affect the size of the
sample.

 The study is academic in nature.

 The final conclusion can be also affected by some of

the extraneous variables.

7. EXPECTED CONTRIBUTION

With this project, it will be helpful to know what dealers

perceive about Sanghi cements pricing, availability,
quality etc. Whether dealers are satisfied with promotional
schemes or not. It will be useful for the company to know
the market share and dealers opinion so that it can make
changes in dealers scheme to make dealers happy and sell
more.

QUESTIONNAIR

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Q1. Which cement company would you associate the following with :

(1) Availability.

(2) Quality.

Q2. What drives your decision to stock a particular brand:

(1) Profit margin.

(2) Channel Discipline.

(3) Relationship with the wholesaler.

(4) Credit.

(5) Quality of cement.

(6) Logistics Support.

(7) Price.

(8) Brand Pull.

(9) Marketing/ Promotional Initiatives.

(10) Technical/ Sales Support.

Q3. Rate the following parameters from 1 to 6. 6 being the most preferred.

ACC SANGHI UTCL AMBUJA OCL BIRLA

GOLD

Margin

Quality of

cement

Relation

with

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company

Credit

Logistic

support

Price

Brand pull

Marketing

initiative

Technical

support

Q4. How much importance would you attach to the following modes of

advertisement in creating demand ? please rate out of 5.

(1) Television. (2) Shop Paintings. (3) POP Material

(4) Hoarding (5) wall Paintings.

Q5. Do you stock Sanghi in your counter?

Q6. Reasons for purchasing / not purchasing Sanghi?

Q7. Rate the following brands on a scale of 1-6 according to customer

preference of brands 1 being the highest.

ACC SANGHI UTCL AMBUJA OCL BIRLA

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 GOLD

RATING

REASON :

Q8. Rate the following brands on a scale of 1-6 according to retailer

preference of brands 1 being the highest.

ACC SANGHI UTCL AMBUJA OCL BIRLA

GOLD

RATING

REASON:

Name of the sub Dealer:

Mob. No.

Location :

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