Professional Documents
Culture Documents
Binani Sales Promotion
Binani Sales Promotion
Virahyas
]v!RAHYAS@CNA!L.CON
A
Project Study Report
On
Training Undertaken at
Titled
"SALES PROMOTION"
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
2009-11
Submitted By:- Submitted To:-
Xx Xx Dr. xxxxxx
MBA Sem. (HOD)
ACKNOWLEDGEMENT
"FOR ANY SUCCESSFUL WORKS IT OWNS THANKS TO MANY
express my sincere thanks to my project guide, Mr. Rishi Tamrakar (HR Manager), Deptt.
Human Resource, for guiding me right from the inception till the successful completion of the
project. sincerely acknowledge him for extending their valuable guidance, support for literature,
critical reviews of project and the report and above all the moral support he had provided to me
with all stages of this project.
would also like to thank the supporting staff Mr. J. virahyas for their help and cooperation
throughout our project.
XX XX
EXECUTIVE SUMMARY
The word cement may be defined as a substance, which can join two or more pieces
of some other substance together to form a unit mass . cement is a fine power which
when mixed with water and allowed to set and harder can join different components
together give a strong structure mechanically .thus cement as founding material for
bricks or for founding solid particles of different sizes to form a monolith.
Cement is an essential commodity ,which is available in two types ,the opc and the ppc
.ndia is the second largest producer of cement .
BNAN cement is having its monopoly in both the market share as well as customer
confidence .this is because of its superior quality product and excellent customer
services .The company runs round the clock and its policy of maintain is helpful in
providing better quality clinker .
The company is maintaining its TPM (total productivity maintenance ) policy.
TPM of each activity in the industry with special care for profitability with the investment
of the employees .
The aim of this study is to identify the sales promotion activities for BNAN CEMENT
and to understand the expectation and opinion of retailers and dealer regarding sales of
BNAN cement .
t also focuses over the various factor like demand , sales , quality , reliability and
consumers expectations etc. The research was exploratory in nature for this purpose
questionnaires and direct communication with dealer and retailer was made.
At last project will be beneficial for both company as well as reader who want to gain
inside knowledge about the sales promotion activities of BNAN cement in cement
market.
The questionnaire and direct interview were used as the sources of data.The current
problem that the company is facing is also identified with probable suggestions are
included in the report.
All cements having two grades OPC &PPC generally are the OPC cement is more
preferred by the wholesaler. Nevertheless in case of final customer very few customer
have knowledge about OPC& PPC.
Brand image is the mirror ,which shows how much the company put efforts to achieve
its target .The most important aspect of any business are intangible including it base of
loyal customer brand, symbol, slogan & the brand underlying image, personality identity,
attitude, association. The various factors that effect the demand of the cement as well
as particular brand sales are like quality, prices ,season, promotion strategy of the
company / competitors, relationship with customers ,discounts supply position because
all these helps to create demand of cement .But the quality is the factor ,which is
considered by most of suppliers as well as customers. This is a reason that all cement
companies' emphasis on quality in their advertisement.
Price is the second consideration factor because the price difference among various
brands is generally very less as price determined for basis and CMA determines the
prices.
BNAN Cement is market leader due to its quality and availability and the brand name
'BNAN' i.e. associated with it.
TABLE OF CONTENTS
1. THE INDIAN NORTHEN CEMENT INDUSTRY
2. INTERODUCTION TO THE ORGANISATION
3. RESEARCH METHODOLOGY
3.1 TITLE OF THE STUDY
3.2 DURATION OF THE PROJECT
3.3 OBJECTIVE OF STUDY
3.4 TYPE OF RESEARCH
3.5 SAMPAL SIZE AND METHOD OF SELECTING SEMPAL
3.6 SCOPE OF STUDY
3.7 LIMITATION OF STUDY
4. FACT AND FINDING
5. ANALYSIS AND INTERPRETATION
6. SWOT ANALYSIS
7. CONCLUSION
8. SUGGESTION
9. APPENDIX
10. BIBLIOGRAPHY
1. INTRODUCTION TO THE INDUSTRY
INDUSTRY OVERVIEW: INDIAN CEMENT INDUSTRY
Cement is the preferred building material in ndia. t is used extensively in household
and industrial construction. Earlier, government sector used to consume over 50% of
the total cement sold in ndia, but in the last decade, its share has come down to 35%.
Rural areas consume less than 23% of the total cement. Availability of cheaper building
materials for non-permanent structures affects the rural demand. The ndian Cement
industry is the second largest cement producer in the world. 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. There are around 11 different types of
cement that are being produced in ndia. The production of all these cement varieties is
according to the specifications of the BS (Bureau of ndian Standards). Some of the
various types of cement produced in ndia are:
v Clinker Cement
v Ordinary Portland Cement (OPC)
v Portland Blast Furnace Slag Cement (PSC)
v Portland Pozzolana Cement (PPC)
v Rapid Hardening Portland Cement
v Oil Well Cement
v White Cement
v Sulphate Resisting Portland Cement
The production of PPC and PSC are based on Fly Ash and Blast furnace slag, the
waste product of Thermal Power Plant and Steel Plant respectively.
CHARACTERISTICS- State wise Capacity
As cement is a low value commodity, freight costs assume a significant proportion of the
final cost. Transporting costs render the prices of cement in distant destinations
uncompetitive. For instance, it is financially infeasible to transport cement by road over
250 kms. Railways are mostly used to transport cement over longer distances.
However, its bulky nature and infrastructure bottlenecks render even rail transport
unviable over very long distances (that is why Madras Cements or ndia Cements,
located in the south, can hardly make a difference to the fortunes of west-based
companies like Gujarat Ambuja). Therefore,
manufacturers tend to sell cement at the nearest market first and sell in distant markets
only if additional realization is greater than freight costs incurred. This highlights the
regional nature of the cement industry. The ndian cement industry has to be viewed in
terms of five regions:-
North (Punjab, Delhi, Haryana, Himachal Pradesh, Rajasthan, Chandigarh, J&K and
Uttaranchal)
West (Maharashtra and Gujarat)
South (Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Pondicherry, Andaman &
Nicobar and Goa)
East (Bihar, Orissa, West Bengal, Assam, Meghalaya, Jharkhand and Chhattisgarh)
Central (Uttar Pradesh and Madhya Pradesh)
South accounts for 33.03% of cement production capacity of the country, with Andhra
Pradesh accounting for 15.27% of the total production capacity of ndia. t has an
installed capacity of around 20mn tons of cement and ranks first in the country, followed
by Tamil Nadu with 9.94% of the total production capacity. North accounts for 18.02% of
the total production capacity, with Rajasthan at 12.55% of the total production capacity
of the country. West accounts for 16.85% of the total production capacity. Maharashtra
and Gujarat have production capacity of 6.89% and 9.96% respectively.
East and Central Regions account for 16.33% and 15.77% of the total production
capacity of the country respectively.
Production & Dispatches (Region-wise):
During the month of December 2008 the cement industry posted excellent growth in
production mainly from the northern and the eastern region of the country. The demand
continued to be strong as can be evident from the capacity utilization levels in all the
major regions. ncrease in installed capacities by some players also contributed to
improved production growth.
The central region of the country achieved the highest capacity utilization rate of 98%.
The northern region and the eastern region had a capacity utilization rate of 93%
respectively.
The western region and the southern region had a capacity utilization level of 95% and
86% respectively.
The overall cement production and dispatches increased by 11% to 15.82 million metric
tones and 15.81 million metric tones respectively during the month of December 2008
as compared to the same period last year. Excess dispatch implies that there is strong
demand as inventories are being disposed off quickly. The production and dispatches
were higher by 10% and 11% respectively as compared to the previous month. The
following graph gives a clear indication of the increase in production (Region wise) in
December in comparison to the previous month.
TabIe 1 : Region-wise production of cement
Seven CIusters:
Cement and its raw materials namely coal and limestone, are all bulky items that make
transportation difficult and uneconomical. Given this, cement plants are located close to
both, sources of raw materials and markets. Most of limestone deposits in ndia are
located in Madhya Pradesh, Rajasthan, Andhra Pradesh, Maharashtra and Gujarat,
leading to concentration of cement units in these states. This has resulted in 'clusters'.
There are seven such clusters in the country and account for 51% of the cement
capacity. There is a trade-off between proximity to markets and proximity to raw
materials due to which some cement plants have been set up near big markets despite
lack of raw materials.
CIuster-wise capacity of various regions (7 major cIusters)
REASONS FOR THE GROWTH OF CEMENT INDUSTRY
The domestic cement industry is highly insulated from global cement markets. Exports
have been constant at about 6% of total cement demand for past few years. With the
Government of ndia intervention, making cement duty free, cement is being imported
from neighboring countries. However, due to logistics issues and lack of port handling
capabilities imports of cement will remain negligible and do not pose a threat to
domestic industry. Earlier government sector used to consume over 50% of the total
cement sold in ndia but in the last decade, its share has come down to 35%.
Demand for cement is linked to the economic activity in any country. Broadly, it can be
categorized into demand for housing construction (homes, offices etc.) and
infrastructure creation (ports, roads, power plants etc). The real driver of cement
demand is creation of infrastructure; hence cement demand in emerging economies is
much higher than developed
countries where the demand has reached a plateau. n ndia too, the demand for
cement will be affected by spending on infrastructure (including housing).
Indian Cement Industry Demand Drivers - 2009
Sirohi District, Rajasthan, after setting up a 1.65 mtpa integrated cement facility and a 25
MW captive power plant with technological support from F. L. Smidth, Denmark and
Larsen & Toubro Ltd.
Not only was capacity raised to 2.25 mtpa in 2005 through advanced in-house R&D and
de-bottlenecking, but the company was certified as SO 9001, SO 14001 and OHSAS
18001 compliant within a short span of commencement an achievement that clearly
illustrates the management's commitment to quality, efficiency, environment, health &
safety.
n 2008, a split grinding unit at Neem Ka Thana was commissioned which boosted the
capacity in ndia to 6.25 mtpa. The clinker grinding unit at Neem Ka Thana is located in
Bhagega village, Sikar district of Rajasthan. Set up with technical support from M/s F.L.
Smidth, Denmark, the unit acquired certifications such as SO 9001, SO 14001 & OHSAS
18001 for quality, environment & OHS management systems in July 2009. Moreover, the
unit has obtained environment clearance from the Ministry of Environment & Forests, New
Delhi and all other relevant consents from the State Pollution Control Board
Continuing in the expansion mode, today Binani Cement's global manufacturing capacity
has touched 8.75MTPA, with plants located in Dubai and China as well. t is expected to
grow upto 15 mtpa annually by 2011 through various expansion projects undertaken
across its plants in ndia and overseas
Growing from Strength to Strength
Vertical and horizontal growth has long been a part of the Company's mission.
Complementing the Brownfield facility at Sirohi, Rajasthan, a split grinding unit
Products
The Company's product portfolio includes Ordinary Portland Cement and
Pozzolana Portland Cement. Marketed under the premium 'Binani Cement' brand
name, it has become a name synonymous with cement in ndia. And with
subsidiaries in Dubai, China and many other potential international markets,
Binani Cement is well and truly set on the path of becoming a brand the world
builds with.
PRODUCT SPECIFICATIONS
Specifications
43
Grade
53
Grade
BS-
12
C-150
T-1
OPC-
OPC-
43
Grade
53
Grade
LO (%) max 5.00 4.00 3.00 3.00 5.00 5.00 3.00 2.30 2.10
R (%) max 3.00 3.00 1.50 0.75 3.00 3.00 - 2.10 2.00
SO3 (%) max 3.00 3.00 3.50 3.00 3.50 3.50 3.00 2.10 2.00
MgO (%) max 6.00 6.00 4.00 6.00 5.00 5.00 5.00 1.98 1.98
Setting Time
(Mins)
- nitial
(Minimum)
30 30 45 45 60 60 60 125 120
- Final
(Minimum)
600 600 600 375 720 720 600 175 170
Soundness
- Le-Chatelier
(mm)
Maximum
10 10 10 - - - - 1.00 1.00
Compressive
Strength (MPa)
VISION
To be acknowledged as a leading player in the industry
with the highest level of integrity.
MISSION
Forge ahead as a world-class organization in the core sector industry in ndia and
abroad.
Explore opportunities and enhance stakeholder value through ethical practices.
Relentlessly pursue the global movement for a 'customer-driven, quality-oriented,
socially-conscious' industrial corporation.
Adopt, adapt, assimilate and integrate technologies from global giants, thereby
offering value-added products and services.
Adhere to the highest standards in manufacturing; over and above stringent
environmental stipulations.
LAFARGE (Concreto)
v Better quality
v Good name in the market
v Timely available
v Relatively less price
v Better packaging
v Good offers
ACC (Suraksha)
v People ask for ACC, it is having a good image and brand loyalty among
v Service is good
v Dhalai karne ke liye people ask for ACC
v Perceived to be of very superior quality cement when compared to others
v Selling form the very first day the shop came in to being & sells easily
v They have same price prevailing for wholesale at dealers retailers end.
JAYPEE CEMENT (BuIand)
v Rate and profit
v Price is suitable as per customers pocket
v Service is good
v Good relationship with the people Jaypee
ULTRATECH
v Good name in the market as it carries the goodwill of L&T
v High Brand awareness among customers
v Good Advertisements
v Famous Brand
v Stable price
LocationaI Advantages
Location is a key advantage to the Company as its limestone reserves are at a close
proximity to its plant. As the plant is located in Pindwara, Sirohi District, Rajasthan
which is in close proximity to the customers in the states of Rajasthan, Gujarat,
Haryana and NCR it reduces the Company's transportation costs which contribute
significantly to the overall cost reduction. The Company has its own captive power
plant for which high grade coal is imported from South Africa and ndonesia. This
coal comes in from Navlakhi / Kandla port which is approximately 450 kms from the
plant. The Sirohi facility is well connected by road through NH 14 to the primary
markets of the Company; namely Rajasthan and Gujarat. n terms of outward freight,
about 90% of the dispatches' are sent through road with the balance through rail. The
Company services western Uttar Pradesh and parts of Delhi by rail, while the other
markets are serviced by road. A railway siding is also being set up at the Sirohi
facility to link it with the nearest railway station of Keshavganj, which is approximately
12 kms from the Sirohi facility.
Strong brand
Over the last 8 years, the 'Binani' brand has established significant brand recall
especially in the Rajasthan and Gujarat markets, primarily on account of attributes
such as strength, quality and consistency. This has allowed the Company to operate
on a limited advertising budget, as compared to its competitors. The Company is one
of the leading players in each of the key markets of Rajasthan, Gujarat and NCR. t
has a large distribution network in place with more than 1740 dealers and 41 MOs
supported by their own sales staff.
Among the Ieading Cement sector pIayers in the cement industry
The Company is one of the leading cement producers of ndia with an
annual production of 2.25 MnT. t is also one of the market leaders in Rajasthan
with a 13.4% market share and with over 45% of its total sales being dispatched
to that state. n Gujarat also, the Company is among the top seven players with a
market share of 7.6%. The Company's leadership position enables it to leverage
its existing in-house skills, relationship with customers and provides potential to
increase the products being sold.
PIentifuI suppIy of Iimestone and other raw materiaIs
The Company has large reserves of high quality limestone serving its plant
enabling it to continue operations well into the future. ndependent reports from
the technical experts indicate that the mines have sufficient deposits of limestone
to support the Company's operations for at least another 30 years on expanded
capacity.
Superior operationaI performance
The Company has one of the highest operational efficiency compared to its
competitors. With good technical base, lower overheads, international standard
manufacturing facilities and effective marketing network the Company has shown
consistent growth in revenues. t has also maintained stringent control over its
operating costs.
The Company has been continuously improving the efficiency of its
grinders, to optimize the overall requirements of power. The Company's power
consumption norms are among the lowest in the industry at 74 KwH/ MT. t can
also be rated high on kiln efficiency with fuel consumption norms that are better
than the industry standards. The facilities are also state-of-the-art and
environmentally compliant, being SO9001, SO14001 and OHSAS 18001
certified.
Strong management team and motivated and efficient work force
The Company is managed by a team of experienced and professional managers
exclusively focused on different aspects of the cement industry including
production, manufacturing, marketing, quality control and finance. The Promoters
and management of the Company have substantial experience in the cement
industry and its ancillary activities.
The Company believes that its professionals have been able to anticipate
the developments in cement industry, trends in materials use while achieving an
Customer service:
"Customer deIight remains focus of company's marketing mix. For that
company provides best quality cement to the customers followed by prompt and perfect
"After Sales Services. Later, independent customer feedback assessment is done to
evaluate the degree of satisfaction, which is the key to Birla Gold's marketing strategy.
"TechnicaI Service CeII has been setup to provide technical assistance to
institutions and people engaged in construction work. Besides on site assistance
brochures and useful guidelines for cement usages provided regularly. Masons,
contractors, Architects and Engineers are also trained on regular basis and so far 53715
such persons have been trained.
"Advertisements and PromotionaI campaigns are created and executed in-
house by innovative marketing professionals' involving whole gamut of activities right
from conceptualization to execution stage.
Market Regions of BINANI cement
BNAN Cement sales are mainly spread in Madhya Pradesh, Uttaranchal, West
Bengal, Bihar, Uttar Pradesh, Assam and Orissa. The increasing congestion of plants in
the Ahemdabad belt has led to intense competition in Gujarat market.
Market share (State-wise)
SELLING CHANNELS
Stock Transfer:
n Bihar and Uttar Pradesh sales are through stock transfer to company dumps.
Handling Agents manage company's godown / dumps and cement marketing
under instruction of the company's local office. Cement is sold through dealers.
Consignment SaIe:
Earlier sales in Bihar, Orissa, Assam, A.P. and N.E. States, were made through
Consignment Agents. The Consignment Agents used to develop market and sale
cement through dealers. Storage / Warehousing, sales, collection of payment, tax
payment and advertising in the area were under their responsibilities. But now due
to issues in Branding and due to customer dissatisfaction consignment sale has
been stopped.
DeaIer SaIe:
n Chhattisgarh, the company directly supplies material to dealers against their
orders and collects payment from them. These dealers either retail the cement or
sale in wholesale to sub dealers appointed by them.
Direct SaIe:
Government Departments or private companies float tenders/ enquires from time
to time for bulk supply of cement. The company actively participates in these
tenders. Marketing agents assist in getting orders/payments and get small
commission for the same.
BINANI Cement is selling through dealers, stock transfer and also selling directly to
government department/institutional buyers.
SeIIing ChanneIs of BINANI Cement
CEMENT- Major PIayers
ACC LIMITED
Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete
technology. A prominent overseas presence and figuring on the elite list of consumer
super brands of ndia but most importantly ACC has been amongst the first ndian
companies to make environmental protection, it is a cornerstone of its corporate
objectives.
The historic merger of ten existing cement companies led to the establishment of ACC
melding into a cohesive organization in the year 1936 at Maharashtra. t's a big
company in cement manufacturing and offers the services of Ready mixed concrete and
Consultancy service.
This company is listed by Bombay Stock Exchange, National Stock Exchange and in
London Stock Exchange. The company received an award as 'Good Corporate Citizen'
for the year 2005-2006. During the year 2007 company acquired 100 % of the equity
stake of Lucky Minmat Private Limited for Rs 35 crores and also acquired 14.3 % equity
stake in Shiva Cement Limited. Meanwhile the company divested its entire equity
shares in Almatis ACC Ltd to the Almatis group. The overseas contract with YANBU
Cement Company in the kingdom of Saudi Arabia is successfully ongoing relationship
from last 28 years and has been renewed up to February 28, 2011.
ULTRATECH CEMENT LTD.
UltraTech Cement Limited was incorporated as a public limited company on 24th
August 2000, as "L&T Cement Limited a 100% Subsidiary of Larsen & Toubro Limited.
The name of the Company was changed to UltraTech Cement Co. Limited with effect
from 19th November 2003 after the Aditya Birla group owned Grasim ndustries
acquired it. The name of the company was again changed to UltraTech Cement Limited
with effect from 11th October 2004.
Power, and Coromondal Super Power. n the year of 1990, CL acquired Coromandel
Cement plant at Cuddapah, consequently installed capacity rose to 2.6 million tonnes
per annum). The ndia Cements Company has subsidiary companies which include CL
Financial Services, ndustrial Chemicals & Monomers, CL nternational, and CL
Securities. n 1997 ndia cements acquired Aruna Sugars Finance Ltd which was later
renamed as ndia Cements Capital & Finance Ltd. t also acquired Cement Plant of
Visaka Cement ndustry, at Tandur, Ranga Reddy district of Andhra Pradesh with
nstalled capacity 9,00,000 Tonnes.The cement division of Raasi Cement (RCL) was
vested with the company from April.1998 under a scheme of arrangement
ndia Cements has established itself as a leading cement manufacturing company and
as it plans to expand its production capacity, the company's position in the market is
sure to rise in the near future.
AMBUJA CEMENT
The company's cement plant was commissioned in 1985. t was set up in technical
collaboration with Krupp Polysius, Germany, Bakau Wolf and Fuller KCP. The company
got necessary approvals for setting up another cement plant with 1 million tonne
capacity per annum at Himachal Pradesh in the year 1991. The Company undertook
bulk cement transportation, by sea, to the major markets of Mumbai, Surat and other
deficit zones on the West Coast. Transportation was to be carried out by three specially
designed ships during the year 1992. During the year 1994, the company's Muller
location 1.5 million tonne cement project with clinkerization facility at site in H.P and
grinding facility both at Suli & Ropar in Punjab was bespoken. n 1997, Kodinar plant of
the company was originated its commercial production with an enhanced capacity. n
the last decade the company has grown tenfold. t was the first company in ndia to
introduce the concept of bulk cement movement by the sea transport. The company's
most distinctive attribute, however, is its approach to the business. Ambuja follows a
unique homegrown philosophy for successful survival. Ambuja is the most profitable
cement company in ndia, and one of the lowest cost producers of cement in the world.
The company was awarded for its credit, the National Award for commitment to quality
by the Prime Minister of ndia, National Award for outstanding pollution control by the
Prime Minister of ndia, Best Award for highest exports by CAPEXL and Economic
Times - Harvard Business School Association Award for corporate excellence in
different years. The company was adjudged as the top ndian company in the cement
sector for the Dun and Bradstreet - American Express Corporate Awards 2007. The
company developed a unique homespun channel management model called Channel
Excellence Programme (CEP) for marketing their product. Over 7000 dealerships and
20,000 retailers across ndia are covered under this model. The company name was
changed from Gujarat Ambuja Cements Limited to Ambuja Cements Limited.
JAYPEE CEMENT
Jaypee group is the 3rd largest cement producer in the country. The groups cement
facilities are located in the Satna Cluster (U.P), which has one of the highest cement
production growth rates in ndia.
The group produces special blend of Portland Pozzolana Cement under the brand
name 'Jaypee Cement' (PPC). ts Cement Division currently operates modern,
computerized process control cement plants with an aggregate capacity of 13.5 MTPA.
The company is in the midst of capacity expansion of its cement business in Northern,
Southern, Central, Eastern and Western parts of the country and is slated to be a 24.30
MTPA cement producer by the year 2010 and 26.80 MTPA by 2011 with Captive
Thermal Power Plants totaling 327MW.
Keeping pace with the advancements in the T industry, all the 140 cement dumps are
networked using TDM/TDMA VSATs along with a dedicated hub to provide 24/7
connectivity between the plants and all the 120 points of cement distribution in order to
ensure "track the truck initiative and provide seamless integration. This initiative is
the first of its kind in the cement industry in ndia. n the near future, the group plans to
expand its cement capacities via acquisition and Greenfield additions to maximize
economies of scale and build on vision to focus on large size plants from inception.
LAFARGE INDIA
Lafarge ndia is a subsidiary of the French Building Materials major Lafarge. Lafarge is
the world leader in building materials, with top-ranking positions in all of its businesses:
Cement, Aggregates & Concrete and Gypsum. Lafarge entered the ndian market in
1999, with the acquisition of the cement business of Tata Steel. This acquisition was
followed by the purchase of the Raymond Cement facility in 2001.
Lafarge currently has three cement plants in ndia: two integrated plants in the state of
Chhattisgarh and a grinding station in Jharkhand. Total cement production capacity of
Lafarge in the ndian market currently stands at around 5.5 million tons. Lafarge ndia
produces different types of cements like Portland Slag Cement, Portland Pozzolana
Cement. Lafarge Cement is famous all over the world for its premium quality and has
been used to build many landmark buildings globally. The company is a leading cement
player in Eastern ndia. t's brands
Lafarge Cement and Lafarge Concreto Cement enjoy high brand equity here and are
amongst the highest priced brands. Lafarge is committed to the ndian market and has
firmplans to expand its capacity in ndia.
Lafarge cement is available through a large dealer network, throughout eastern ndia- in
the states of West Bengal, Jharkhand, Bihar, Chhattisgarh, Orissa and North-East
States. Lafarge Cement is also available in parts of Madhya Pradesh and Maharashtra
(Vidarbha region), parts of Uttar Pradesh, Andhra Pradesh & National Capital Region.
PROJECT PROFILE
The project entitled "Perception of Trade and Non-trade Segments of
BINANICement in Satna market" revolves around the customer, who is the optimal
decision maker of a firm's future. Since the cement is a core product and used by all
consumers; it is very necessary firm to now about their brand's position and customer
expectations.
Earlier Marketers aimed at satisfying the customer's need but the present day of
Marketing requires something more that is customers delight.
n this era of globalization Company can survive only when he knows the fast of
consumer, which is changing day by day. A company can get an edge other its
competitors in these cutthroat competitions through superior quality, innovations and
better customer responsiveness. Hence this project aims to analyze how a cement
manufacturing company can create value to all its stakeholders to achieve a leading
position in the market.
n order to get competitive advantage in core ndustries, A firm will have to not only
take care of consumers taste but also delight its channel partners, which is its external
resource. Normally it takes years to build, and it not easily changed. t ranks in
importance with key internal resources such as manufacturing, research, engineering
and field sales processional etc.
t represents a significant corporal commitment to a large number of intelligent
companies whose business is distribution and to the particular market they serve. t
represents to a commitment to a set of policies and practices that constitute the basic
fabric on which is woven an extensive of long-term relationship intermediaries smooth
the flow of goods and services. This procedure is necessary in order to bridge the
discrepancy between the assortments of goods and services generated by the producer
and the assortment demanded by the consumer. The discrepancy results from the fact
that manufacturers typically produce a large quality of limited variety of goods, where as
consumers usually desire only a limited quantity of a wide variety of goods. n order to
attain the market share it is necessary to satisfy the channel members. Channel
members are having better knowledge of consumers buying behavior hence their
suggestions regarding the product distributors are of high values.
3.RESEARCH METHODOLOGY
3.1 TitIe of the Study:-
"SALES PROMOTON
3.2 Duration of the Project:-
have been asigned this project as 45 days summer internship training from 18
th
June
to 2
nd
August 2010.
3.3 OBJECTIVE OF STUDY
1. To know the position of BNAN Cement in the trade and non-trade
segment regarding sale in comparison with the other brands.
2. To know the reasons behind the selection of a particular brand.
3. To get suggestions form the trade and non-trade segment in order to improve
the sale as well as level of satisfaction in them.
4. To analyze the market share of BNAN Cement.
5. To know the customers preference for the brands of cement.
6. To know the preference of retailer for sorting different brands of cement.
7. To understand the effectiveness of various sales promotion activities of
cement.
8. To know preference of retailers for different gift and incentives.
RESEARCH DESIGN
t is a plan of action to be carried out in connection with the research project. t is the
guideline for the researcher to enable him to keep track of his action and to know
weather he was moving in the right direction or not. t is the framework or
plan for a study that is used as guide in collecting and analyzing the data. t is the blue
print that is followed in completing a study. There are various types of research with its
pros and cons. Each is meant for its specific purpose. Hence here in this project, used
the descriptive type of research.
Universe
Since the cement is a core product and being used by all types of consumers, so our
focus for collection data was each and every man who are directly or indirectly involved
with the sale or use of cement such as stockists, dealers, civil engineers, contractors,
individual customers, masons, etc.
3.5 SAMPLE SIZE AND DATA COLLECTION METHOD
SampIe Design
To know the position of BNAN Cement in the trade and non-trade segment
regarding sale in comparison with the other brands on the basis of attributes of cement
has been done. For this purpose, opinion of stockists, dealers, engineers, contractors,
architects and builders (who posses knowledge regarding different brands available in
the market) has been taken. This might be helpful to draw the right picture about the
market scenario. This was convenient in nature because would have to account only
those people who actually require or purchase cement in bulk quantity. The survey is
conducted with the help of questionnaire method and survey is conducted in the Satna
region. Survey of 50 traders and 50 non-traders has been done for the analysis.
Among the responses, accepted 95 responses of the survey and rejected 5 (3 traders
and 2 non-traders) because of incomplete questionnaire. The survey was conducted in
Satna City (Prem Nagar, Pateri Road), Kothi Road, Dhawari, Unchehra, Maihar,
Devendra Nagar, Panna, Nagaud, Xxpur, Kotar, Birxxpur, MadhavGarh, Sajjanpur and
Rampur regions of Ahmedabad area.
Data CoIIection
Every type of research requires two types of data to be collected to reach up to any
conclusion. Primary Data are those data, which are directly obtained from people by
approaching them individually, primary data are generated when the researcher
employing mail questionnaire, telephone surveys, personal interviews, observations and
investigates a particular problem at hand.
For this project primary data was collected from stockists, dealers, engineers,
contractors, architects, masons and builders by using survey method. Data collection
from respondents was carried out with the help of a structured interview schedule. n
this method data was collected from respondents through questionnaires. made a
survey based on the questionnaire, which consist of 13 questions. The mode of survey
was directly contacting the people and recording their response based on well-defined
questions and also through telephone.
Secondary Data, on the other hand, includes those data, which are collected in the past
for other research work and are being used in current project work.
Secondary Data, such as procedures of marketing for cement, marketing conditions,
brief details of M/s BNAN Cement and other competitors, price, quality, and other
strategy and planning, specification in relation to other cement companies, all other
information which can be useful to complete this project, was collected for Sales and
Marketing Department of BNAN Cement. Published Documents of BNAN Cement
and other competitors' cement plants have
also been used for collection of secondary data.
1. Survey of non-trade segment included engineers, contractors, masons, architects
and builders have been done because it is assumed that only these parties have
adequate knowledge and information regarding cement market situation and they are
able to compare different brands on the basis of attributes of cement.
2. The comparison of different brands was based on retailers' and dealers perception
about these brands because it has been assumed that they are directly in contact with
customers and they can influence the buying decision of end consumer or buyer.
3. The term quality was assumed to be sum total of setting time strength, treatment
color etc. and the opinion was taken in total terms.
4. Delivery promptness, delivery quality and percentage of defective bags of cement
reaches to retailer are taken into account while we were trying to know their perception
about any particular brand on the basis of delivery.
5. Not only the promotional tools uses by company out also advertisement along with
other support provided by marketing team such as payment terms, credit terms,
attention on the feed back on remarks given by retailers are considered while trying to
know about marketing support.
6. n this survey it is assumed that the response provided by respondents is true,
genuine and free from any bias. Results obtained are based only on the opinion of the
respondents.
3.7 LIMITATION OF THE STUDY
O Lack of co-operation from the retailers in regard to giving interview.
O t was found in some cases dealers showed inclination towards certain brands
which gave them more margins when compared to others.
O t was experienced during the survey that it was difficult to convince or make the
retailers and dealers understand the important of the project.
O As the retailers and dealers thought that it was unwise for them to give their
details of business as they feared competitors would take advantage.
O Some time the emotional attachment and brand loyalty of respondents prohibited
to give correct information.
O The time constraint faced in the project might have affected the
comprehensiveness of its findings.
5. ANALYSIS & INTREPRETATION
OBSERVATION & ANALYSIS
1. Market Position in terms of SaIes:
Jaypee and BNAN Cements have a good market share in Satna region. Here people
are price conscious and even aggressive marketing by Jaypee has allowed it to capture
a large market here.
2. Customer Preference of the Brand:
3. Purchasing frequency and reasons
According to this survey:
a) n summer i.e. March, April, May about 35% of the cement purchase increases. t is
due to good climatic conditions for starting new construction work.
b) n monsoon i.e. from June to August about 30% of the construction work is
decreased due to rains.
c) 35% purchasing of cement is done according to the availability of work and the
purchasing does not depend upon seasons.
Hence attempts need to be done to maximize their sales efforts in summer and launch
heavy marketing during rainy seasons to increase sales. As we know that sales in
cement industry are seasonal, there is a need to launch different marketing campaigns
according to season to target its customers more accurately. BNAN cement can also
launch special variety of cement specifically designed for various seasons. This idea
could motivate more customers to buy BNAN cement.
4. Decision for seIection of brand:
Advertisements- 35%
Contractors, Masons, Engineers advice- 50%
Personal Decision- 5%
Family Referrals, Word of Mouth- 10%
t can be seen that customers give the maximum weightage to the advice of masons,
engineers and contractors. Even Advertisements play a major role in their buying
decisions. Very few people take personal decision while buying cement and family
referrals also effects their selection of a brand. Thus company should make maximum
efforts to attract masons, contractors and also launch innovative advertising campaigns
to attract more customers.
Most of the respondents gave high ranking to mason meet conducted by BNAN
cement, but complained that company did not conduct ample builders/engineers meet
and also complained that the Technical Sales Executive (T.S.E.) visits are less by the
company.
7. Under the brand promotion re-arrange the importance of the
foIIowing attempts done on deaIer side.
8. PIace these mass pubIicity media on the basis of its importance
under brand Promotion
Wall painting is playing important role in mass publicity; this observation is done by
large amount of customers and is thus given higher priority. News paper advertisement
is in second position and Banner is in third rank in for mass publicity. Hence maximum
priority is to be given for promotional activities.
6.SWOT ANALYSIS
STRENGTH:
1) Marketing team of BNAN Cement is having good relations with its channel
partners hence they are able to understand their problem and provide best possible
support.
2) People ask for bleakness in cement and BNAN Cement has this.
3) BNAN Cement is having best packaging in comparison to other brands.
4) Due to its delivery promptness and effective delivery system BNAN scores
over other brands of cement.
WEAKNESS:
1) The competitors are doing much promotional activity rather than BNAN
that's why it facing more problems in selling of product in the market. Players such as
Jaypee, Maihar, Ultratech and Lafarge are spending heavily in advertising compared to
BNAN Cement.
2) Company is not having the best demand, as it is not perceived as of better
quality than ACC, Ultratech.
3) Company is not having good image in comparison to few leading brands, as
company is not projecting its image through advertisement.
4) Lack of awareness program for consumers. They think BNAN cement
contains more FLYASH.
OPPORTUNITY:
1) Rapid growth is taking place in Bihar and Madhya Pradesh. People are opting
for more stable structures and intensive use of cement is taking place, even government
is spending heavily on infrastructure projects. Thus, this is the right time to fully tap
these markets.
2) As ndian core industry is also growing at rate of nearly 10% per annum,
BNAN cement is having a good future.
3) Foreign direct investment in infrastructure sector going to increase in coming
years, which will increase the demand of cement.
4) Roads are undergoing through the transformation process through which the
traditional method of road building will be replaced by modern concrete roads.
THREATS:
1) Large number of players in cement industry makes it more competitive for
BNAN Cement to carefully price its product and at the same time satisfy its dealers
and customers.
2) Players such as Jaypee Cement, Maihar Cement, and Birla Samrat are eating
up considerable market share of BNAN cement in Satna region.
3) Due to ndia's exponential growth many new international cement companies
are expected in coming years which will bring a tide of change and can start price war.
4) The emergence of small players in this market may increase the competition
and start the malpractices, and heavy discounts to retailers. They can also influence
many retailers by giving better profit margin, and other benefit.
7.CONCLUSION
n this modern era when globalization and liberalization has brought a tide of change
and only those companies can survive, which will ride on it or which will keep them
isolated and let the tide go. No company can be untouched from the storm of change
and the pace of addictiveness will decide its success. The market share of company will
be decided from the value it gives to the customer, the relations it has with its channel
partners and end consumers, the number of innovative products it has in its basket and
its position in consumers mind.
SUGGESTION
"Micro-Iending" in RuraI areas:
People in the rural regions of Madhya Pradesh are less affluent. Their inability to
secure credit emerged as a primary obstacle to financing construction projects.
discovered that in these regions communities would conduct lotteries in which a
group of families contribute a specific sum each month to a pool and one lucky
family would win the entire amount at the end of the month. The winnings are
then diverted to purposes such as Weddings and celebration of festivals.
will recommend that working with the local leaders, BNAN Cement should
help community organizers establish similar financing pools in which, instead of
cash, the winners can receive building materials, including cement. n addition,
BNAN Cement can provide construction advice and blueprints to the winners.
Hence this program can be aimed to these potential customers by appealing to
their aspirations and thus provide them psychological satisfaction through
financial benefits. This program can create loyal customers and will enhance the
image of the company.
"RetaiIing" in Urban Areas:
BNAN Cement can strengthen its hold over distribution, by its foray into
retailing. t can increase cement usage in these areas by providing building
solutions to retail consumers. t can thus open company- owned retail outlets.
The company can tap the segment where customers are keener to build their
homes rather than buy a pre-built flat. This is evident in Tier cities and smaller
towns. As Bihar and M.P. have no major metropolitan cities, this concept can
work well here. Here flat culture isn't popular and individuals still build their
homes through local contractors and laborers.
9.APPENDIX
QUESTIONNAIRE:
Name: .......................
Name of the Business (in case of stockist/dealer): ........
Address: ......................
Contact Details: Ph. ..... Mob: ..... Fax: ....
E - mail: ............
Category: Contractors/Engineers/Builders/nstitutions
1. Name the Brand of Cement you sell:
a. Jaypee Buland
b. Birla Gold
c. ACC
d. BNAN Champion
e. Birla Samrat
f. Ultratech
2. Which Brand do you prefer?
a. Jaypee Buland
b. Birla Gold
c. ACC
d. BNAN Champion
e. Birla Samrat
f. Ultratech
3. s your decision influence by anyone?
o Yes
o No
4. f yes then by whom?
Engineers or Architects
Masons
Advertisements
Personal Discussion
Contractors
Brand mage of the company
5. Name the different promotion schemes offered by different companies known to you
6. Under the brand promotion Re-arrange the importance of the following attempts done
on dealer side?
a. Dealer meet
b. Sub-Dealer meet
c. Gift item
d. Foreign tour
e. Van program
f. New year Calendar and Dairy
7. Rate the following attempts done for mass publicity on the basis of its importance
under the brand promotions.
a. Hording
b. Wall panting
c. TV advertisement
d. News paper Advertisement
e. Radio advertisement
f. Hoarding and Banner
8. Do you get any technical assistance from any company? f Yes, How?
9. What according to you the company does to increase its sales in this segment?
10. During which month/period your purchasing is
Maximum, Reason?
Minimum, Reason?
11. Do you have any complaint with any company?
o Yes
o No
12. Are you satisfied with the service given by the company regarding complaint
resolution?
o Yes
o No
13. How a cement company can improve the level of satisfaction of you? Please
explain.
Thank you for your support...
10.BIBILOGRAPHY
REFERENCES
Sources of On-Iine JournaIs and Write ups:
1. www.articlenext.com
2. www.capitaline.com
3. www.BNAN cement.com
4. www.economywatch.com
5. www.globusz.com
6. www.ibef.org
7. www.mospi.nic.in
8. www.rbi.org.in
9. www.researchandmarkets.com
Books Referred:
Philip Kotler, Kevin Keller, Abraham Koshy and Mithileshwar Jha, "Marketing
Management, twelfth edition, published by Pearson Prentice Hall (year 2007)
Naresh Malhotra, "Marketing Research
1itendra
Virahyas
]v!RAHYAS@CNA!L.CON