SUMMER TRAINING PROJECT REPORT ON “ANALYSIS OF DEALAR PERCEPTION TOWARDS PRISM VIS-À-VIS OTHER COMPETITIVE BRANDS”
SUBMITTED UNDER PARTIAL FULFILLMANT OF A REQUIREMENT FOR THE AWARD OF THE DEGREE
MASTER OF BUSINESS ADMINISTRATION Under the supervision of Dr. DEVESH GUPTA (Director)
Ms. SAHGUFTA PRAVEEN (Lecturer) Submitted By
RAJESH YADAV (Roll no. 0800770051) 2009-10
DEPARTMENT OF MANAGEMENT STUDIES SHIVDAN SINGH INSTITUTE OF TECHNOLOGY & MANAGEMENT ALIGARH (AFFILIATED TO U.P. TECH. UNIV. LUCKNOW) 1
ACKNOWLEDGEMENT
I am hi high ghly ly in inddebte ebtedd to the offi officcia ials ls of M/S Prism Cement Limited for allowing me to undertake this Project as a part of my curriculum of Master in Business Administration. As part of the project, I render my regards to my project guide Mr. Jeeven Asshi , Dy.General Mana Managger (Mkt (Mktg. g.)) for for th thee gu guid idan ance ce and and di dire rect ctio ionn given by him in the preparation of this project.I would like to record my gratitude to Mr. Dinesh Gupu Guputa ta Mana anager ger (Sal (Salees) for for con consiste istennt sup uppo port rt extended by them to me during project study.I am humbly
thankful
to
Abhishek
Saxena
Sr.
Officer(Sales) & all the staff of Central Marketing Office for giving me the necessary inputs at various stages of my project.
2
I would fail my duty if I do not express my feelings towards my father -Shri Ram Bali Yadav who have been my part & parcel during the whole project & without their blessings, inspiration & good wishes I would have never completed my exhaustive research work. (RAJESH YADAV )
DECLARATION
3
I RAJESH YADAV student of MBA (Third semester) ‘SHIVDAN SINGH INSTITUTTE OF TECHNOLOGY & MANAGEMENT’ ALIGARH, here by declare that the project entitled “ANALYSIS OF DEALER PERCEPTION TOWARDS PRISM VIS-À-VIS OTHER COMPETITIVE BRANDS” is result of my own efforts. This field survey project is correct to the best of my Knowledge, and so far has not been published any else. It is based on original study conducted by me. Chapter 1
RAJESH YADAV
4
PREFACE
Techniques adopted in our classrooms can never progress recently in filling the gap between theory and practical by replace the inevitable need of practical experience. There have been much different programme. Master of business administration, a two year duration course in management, divided into four semester of six month each, is conducive to prepare professional managers to cope with the requirement of Indian society i.e. to achieve optimum utilization of financial resources. This course enables a student to build a foundation of theoretical knowledge in various functional areas of marketing.
5
These theories are formulated on the basis of past practice of different functional activities and research. As per per requirement requirement of the course, everybody has to undergo summer training . I have worked on “ANALYSIS OF DEALER’S PERCEPTION TOWARDS PRISM VIS –A – VIS OTHER COMPETITIVE BRANDS” as a topic of my project. The report is divided into several pars such company profile, objective, research, findings, analysis & conclusions. Although, I have tried my best in the work, yet I do not have any misconception of its being perfect. Any criticism will make me more proficient in any future work.
CONTENTS 6
Executive Summery 61
Company
1-
Profile
Objectives of the Research 63
62-
Research Methodology 65
64-
Data Analysis & Interpretation 84
66-
Findings 86
85-
Limitations 88
87-
7
Bibliography 90
89-
Annexure 94
91-
EXECUTIVE SUMMARY 8
CEMENT INDUSTRY IN INDIA
INTRODUCTION OF THE INDUSTRY
Global Glob ally ly,, Indi Indiaa is th thee seco second nd la larg rges estt ceme cement nt producing country, country, after after China and Cement industry stands the third place in the economic development of India. At present, there are about 60 cement companies with an a capacity of around 147 millions tone to nes. s. Thes Thesee comp compan anie iess have have set set up 13 1300 ceme cement nt plants by investment Rs. 30,000 crores. Prior to 80’s the cement industries were under full control of government. The 80’s came to the ‘watershed of the cement industry. Partial de-control 9
policy was announced on 28thFebruary 1982. This policy played an instrumental role in phenomenal growth of the cement industry. After March 1989 there was complete de-control of ceme cement nt in indu dust stri ries es.. Su Subs bseq eque uent nt to comp comple lete te dedecontrol policy, the industry has not only made quaant qu ntit itaativ tive and qu quaalita litati tivve jum umps ps in matt matteer of addition of capacity and adoption of new tecchn te hnoolo logi gies es bu butt also lso expe experi rieence nced a to tota tallly free ree market. The decade of 90’s was a decade of growth in capacity and consolid lidatio tion th thro rouugh maximum acquisitions and mergers. Presently there are 134 cement plant in India with total overall installed capacity of 147 Million Ton (MT). The state-wise distribution of cement plant across India is annexed herewith in Annexure-1
Annexure-1 10
Table Showing Cement plant in each state together with their capacity. State
No. of Plants
Capacity
(MT)
Andhara Pradesh
24
23.96
Assam
1
0.20 Bihar
1 1.00
Chhattisgarh
9 10.36
Delhi
1 0.50
Gujarat
12 17.12 11
Haryana
1 0.17
Himachal Pradesh
4 4.06
Jammu & Kashmir
1 0.20
Jharkhand
5 4.57
Karnataka
9 10.07
Kerala
1 0.42
Madhya Pradesh
12 16.39
Maharashtra
8 10.95
Meghalaya
1 0.20 12
Orissa
3 2.76
Punjab
3 2.84
14
Rajasthan
17.95 Tamil Nadu
13 14.79
Uttar Pradesh
7 5.07
West Bengal
4 3.13
Total
134
146.71
PRESENT SCENARIO OF THE INDUSTRY: 13
The five years period, from 2004 to2009, saw the flurry of activity in acquisitions and mergers. There were 14 acquisitions, which was the highest in the hissto hi tory ry of Indi Indiaan Cement ment Indu Indusstry. try. Duri During ng th this is period, India Cements acquired four more cement pla plant nts, s, Vi Vish shak akaa Ceme Cement nts, s, CCI-Y CCI-Yer erra ragu gunt ntla la,, Rass Rassii Cement & Shri Vishnu cement, Gujarat Ambuja two companies – Modi Cement and DLF Cement, ACC one-Damodar Cement, L&T one - Narmada Cement Com ompa pany ny,, Gras rasim on onee-Shr -Shreee Dig igvvijay ijay Ceme ement. Lafarge – the French cement multinational, entered into India by acquiring TISCO’s two cement units. Later, Lafarge also acquire Raymond Cement Plant. Madras Cements took over a mini plants - Karnataka minerals and expanded its capacity. The Indian cement industry has witnessed considerable capacity build up over last five year, with the installed capacity of more than 200 million 14
tones. According to Cement Manufacture Association (CM (CMA), th thee cem cement produ roduct ctio ionn has has show shownn 9.74 .74 percent growth in 2007-08 as compared to previous year. During the year under review, the exports of cement registered a 34.63 percent, over the previous year from 5.14 million tons to 6.92 million tones. The dome do messtic tic con onssum umpption tion also lso reg registe istere redd a hea healthy lthy growth of 8.68 percent, from 99.01millions tones to 107.6 millions tones.
In Million Ton Estimated
Cement
Export
Production
Needed
8.0
165.56
Demand Capacity
180.50
202.64 15
Poor prices and rising fuel costs eroded the profitability of Indian cement companies in the year 2003-2004. Cement prices have shot up –10%-15% after lying in the freezer for better part of the fiscal. In majo majorr mark market etss acro cross th thee cou ounntry, try, in incclu ludi ding ng Mumbai, Delhi, Jaipur, Ahmadabad, Hydrabad and Nagpur, prices are now touching their highest level for the fiscal. This has come as a major reprieve for cement-makers troubled by a poor demand growth during 2002-03 so far. far. Cemen ementt con consump sumpti tion on du duri rinng April pril-J -Jan anua uary ry period has grown by just 5% compared to over 8% growth witnessed during the same fiscal f iscal last year. In North, prices are up by 10-12%.In Delhi it has shot up to Rs 250 a bag against Rs 235 during the month of December’2009. What’s more, for the first time prices are uniform across the region. Cement is now sellin ingg between Rs 260-26 -265 a bag in th thee North rth 16
including Rajasthan, Haryana, Punjab and Himachal Pradesh. In normal times, Rajasthan and parts of Himachal and Punjab are atleast Rs 15-20 cheaper than the rest of region. PROSPECTIVE
SCENARIO
OF
THE
INDUSTRY:
There is consensus among industry watcher that the selling price of cement in India will remain low for some time. Over the last five years, cement price index has declined by 1.1 % while price index of Iron & steel, building bricks, ceramic tiles, paints, etc. have posted a rise of around 20%. There is not so much hope in th thee export front also lso. The export growth rate has already fallen to 11% and is expected to fall further. Acco Accord rdin ingg to in indu dust stry ry sour source ces, s, wi with th th thee in init itia iati tive ve takken by the government on the infras ta rastruc ructu turre, par parti ticu cula larl rlyy th thee Nort Northh-So Sout uthh corr corrid idor or,, po popu pula larl rlyy 17
know kn ownn as “Gol “Golde denn Quad Quadri rila late tera ral” l”,, th thee lo long ng-t -ter erm m outlook for the cement industry is encouraging. The Working Group on Cement Industry constituted by Planning Commission for the Xth Five Year Plan has estimated the demand for cement to reach 165.56 million tonnes by 2006-2007.The real gross Domestic Product (GDP) of the country is estimated to grow 8.7% in 2003-04 as against 4.00% in 2002-03. The spurt in GDP growth can be mainly attributed to agriculture and allied activities by as much 12.6% as compared to decline of 5.2% in the previous year. The annual rate of inflation, measured by increase in Wholesale Price Index (WPI) on average basis, was at 5.4% during 2003-04 as against 3.4% in 2002-03. It means the prices of cement is fluctuating , although from March 2002 the index are in increasing trend which is a good sign for the industry Competition from the entry of Foreign Player 18
Another development of cement industry is, the entry of global majors. Companies like the Nordic Cement and Building Material Grou roup have made there presence felt in India. They have already acquired a 25% equity stake in Narmada Cement. The intern int ernati ationa onall majors majors,, Holder Holder Bank Bank of Sw Switz itzerl erland and,, which owns 60 plants all over the world with total capacity of 80 million tones has set-up shops in Delhi under the banner Holtech Consultants. The France bas based ed Lafa Lafarg rgee ceme cement nt has has al also so ente entere redd to Indi Indian an market. The other companies e.g. Blue Circles of U.K., and Heisenberg of Germany are also entering to Indian market. The Indian cement industry has started facing tough competition from countries like Korea and Indonesia on the export. The devaluation of their currencies has driven down the cement prices to $27 per MT. This 19
has put the export in a spot, owing to relatively higher prices for cement out sources from India. Marketing Strategy
Marketing strategy is the specifically designed game plan for achieving the marketing objectives of the firm. It is the marketing strategy that decides the success of the business unit, which in turn decides the total corporate success. Marketing strategy is a broad concept of how resources are to be developed to achieve market success. Because there is no one strategy that is optimal for all company, so each company must determine what makes the most sense in the light of its industry position and its objectives, opportunities, skills and resources. To transform marketing strategy into marketing programs, marketing managers must make basic 20
decisions on marketing mix. The marketing strategy consist a proper marketing mix towards a target group of customers or market segment. Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objective in the target market. These marketing mix tools are Product, Price, Promotion and Place. Cement is an essential commodity and there is no alternative product of cement but since there is over supply in the market hence there is a tough competition. Prism cement has adopted the different policy of its brand against the other brand with respect to each elements of marketing mix. Prism cement is concentrating mainly in whole U.P., M.P. and Bihar. Its overseas markets are Bangladesh & Nepal.
21
Product:
Product stands for the goods or services offered by thee organ th rganiizati zation on as Prism ism offe ffer ceme cement nt to th thei eir r customers. Cement is the combination of: Tri Calcium Alluminate ( C3a)
Di Calcium Silicate (C2 S ) Tri Calcium Silicate ( C3S) Gypsum (Caso4.2H2O)
When we mixed water with cement then within three to four hours it goes hard which is same as Portland Stone found in England so it is known as Portla rtlannd cement. Hardn rdness of cement is known as setting of cement. Average Composition of cement: Calcium oxide (Cao) 65% Silicon oxide (Sio) 22%
22
Aluminum oxide (Alo) 7% Magn Magnes esiu ium m ox oxid idee (Mgo (Mgo)) 2.5% Ferr Fe rrou ouss ox oxid idee (Feo (Feo)) 2% Sulf Su lfur ur ox oxid idee (So) (So) 1.5% Prism Cement Limited mainly produces three types of cement. I. OPC 43 Grade II. OPC 53 Grade III. Champion (PPC) OPC - Ordinary Portland Cement. PPC - Portland Pozzolona Cement.
Raw materials use for preparation of cement: Lime stone (Caco3)
Clay Magnesium Silicate + Aluminum Silicate & Gypsum (Caso4.2H2 O)
23
24
COMPANY PROFILE
Company Profile
PRISM
CEMENT Ltd.
'Prism Cement Limited is an ISO 9001 : 2008, ISO 14001 : 2004, OHSAS 18001 : 2007 & SA 8000 : 2008 20 08 Cert Certif ifie iedd Comp Compan anyy prom promot oted ed by th thee Raja Rajann Raheja Group. It operates one of the largest single kiln cement plants in the country at Satna, Madhya 25
Prades Pradesh. h. Equipp Equipped ed wit withh statestate-ofof-the the-ar -artt machin machinery ery and technical support from F.L Smidth & Co A.S Denmark, the world leaders in cement technology, Prism Cement has successfully created a niche for itself in the Indian cement industry. The Company is managed by a focused Board comprising of eminent experts from diverse fields ably supported by a professional management team. The Management team ensures high levels of transparency, accountability and equity in all facets of the company’s operations.
Prism Cement Limited is an ISO 9001:2000 certified company promoted by Rajan Raheja Group which has diverse 26
business interests. The company operates one of the largest single kiln cement plants in the country at Satna, Madhya Pradesh. Equipped with state-of-theart machinery and technical support from F.L Smidth & Co., A.S Denmark, the world leaders in cement technology, the company has successfully created a niche for itself in the Indian cement industry. The company manufactures Portland Pozzollana Cement (PPC) with the brand name ‘Champion’ and Ordinary Portland Cement (OPC). ‘Champion’, its largest selling product, is general purpose cement mainly used in housing construction. OPC is used for specialised applications like high rise buildings, bridges, AC sheets, pipes, poles, etc. The company has the highest quality standards due to modern plant with automated controls. The strength and other characteristics of its cement are much higher than the BIS requirements. This together with brand building exercise has placed it in the premium price segment. The company caters mainly to markets of UP, MP and Bihar which are within the radius of 340-370 kms of its plant at Satna, MP. The company has strong marketing network with over 2000 dealers serviced from 46 stocking points without any 27
wholesalers. The equity shares of the company are listed on the Bombay and National Stock Exchanges.
Board of Directors
Chairman
:- Mr. Rajan jan Raheja
Managing Director :- Mr. Manoj Chhabra Director
:- Mr. Aziz Parpia Mr. Rajesh Kapadia Mr. Satish Raheja Mr. Vijay Aggarwal(Alternate
to Mr. Satish Raheja) Mr. Akshay Raheja
Prism Cement manufactures and markets Portland Pozzollana Cement (PPC) with the brand name ‘Champion’ and the full range of Ordinary Portland Cement (OPC) of 33, 43 and 53 Grades. 28
‘Champion’ Prism’s largest selling product is a general-purpose cement popular for all applications during house construction by individuals. Prism Cement’s OPC is in demand for specialised cement concrete applications like high-rise buildings, bridges, manufacturing AC sheets, pipes, poles etc. Rich deposits of high quality limestone, highly automated and sophisticated controls ensure that the cement manufactured by Prism meets the highest quality standards. All the cement manufactured by Prism Cement carry the BIS Certification Mark. In fact, the strength and other characteristics are much higher than the BIS requirements. Excellent quality has placed Prism Cement in the premium price segment.
Feature and Applications of Prism Cement:
29
Feature of OPC 53–grade Cement:
More finely ground than OPC 43 Grade to
give much higher strength for same cement content.
Moderate sulphate resisting properties. Low chloride thus avoid idss corro rrosio ionn of
reinforcement steel.
Form work can be struck earlier giving more
number of repetitions
Economical usage of cement due to high
strength.
Higher fineness improves workability, gives
better cohesiveness and denser concrete.
30
Giv ives es hig ighe herr chara aract cteeris ristic tics stre streng ngth th of
concrete and better bon strength, hence lesser lap length, saving steels. Application:
Plain and rein info forrced cement concrete,
masonry and plastering.
For bridge piers. Pre stressed Girde rder, Electric pole, and
Concrete pipes.
Pre cast, Pre Stressed. Slip formed concrete. Tall Tall Build Buildin ingg and and St Stru ruct ctur uree (Sky (Skysc scra rape per). r).
RCC Bridges.
For Structural Repairs and Grouting.
Features of OPC 43 Grade Cement:
Ground more finally then OPC 33 grade.
Thus giving more early strength. 31
Form work can be structured early thus save
time and money.
Have moderate sulphate resisting properties. Low chlo chlorrid ide, e, th thus us avoi oids ds corro orrosi sion on of
reinforcement steel. Application:
For all general and semi specialized
construction.
Forr manu Fo manufa fact ctur uree of conc concre rete te bl bloc ocks ks and and
tiles.
Bric Brickk and and ston stonee maso masonr nry, y, pl plas aste teri ring ng and and
flooring.
Plain reinforcement concrete cement. Pre cast, pre stressed slip formed concrete
job etc. Features of Champion (PPC) Cement: 32
Significantly
higher
long
term
develo developme pment nt compa compared red to concre concrete te
made made
strength withh wit
ordinary cement.
Concrete with lower heat of Hydration and
Thermal cracks.
Concrete with increased resistance against
sulphate, chloride and chemical attack.
Reduced alkali silica reaction. Lower drying shrinkage. Offer better resistance to mild acidic water
and aggressive chemicals.
Rock solid concrete with lower permeability
and porosity impervious to seepage and carbonation. Applications:
RCC works in all types of building
construction. 33
Mass Mass conc concre rete te proj projec ectt – dams dams,, spil spillw lway ays, s,
canals.
Brid ridges ges, culv lver erts ts and drain rainag agee Typic ical al
Properties of Prism Cement: Compare chart of PRISM Cement vis-à-vis Bureau of Indian Standard: Part Partic icul ular ar
53
Grad Gr adee
Grade
Champion (IS 12269)
43
(IS 8112)
(IS1489)
1. Compressive Strength (MPa):
(a) 3 Days-
27min 38
23 min
27min 48
33 min
16Min 30 (b) 7 Days22Min 40 34
(c) 28 Days-
53min 61
43 min
30 min 110
30 mi min 12 120
33Min 53 2. Setting Time:
(Minute) (a) Initial 30Min 180 (b) Final
600 max 160
600max160
600Max 250 Work
Marine works. Cement based products. Grouts and mortars. Mass concrete projects – dams, spillways,
canals. 3. Soundness:
(a) Le Chatelie:
10 max 1
10max 1
10Max 1 Exp. (mn) 35
(b) Auto
0.80 max0.07
0.08max0.17
0.80Max0.15
Clave (%) (m2/kg)
4. Fineness:
225 min >310
225min 300
300Min 380
Organization structure 36
Organizational structure refers to the formal, esta estabblish lished ed pat patte tern rn of rela relattio ions nshhip amon amongs gstt th thee various parts of any organization. Organizing is the form formaal group roupin ingg of act ctiv ivit itie iess and and res resou ourc rcees for for faci facili lita tati ting ng at atta tain inme ment nt of spec specif ific ic orga organi niza zati tion onal al objectives. It is possible to achieve objective without formally organizing, but there is to be great wastage of resources and time. A good organizational structure ensures that the objectives are achieved in the shortest possible time, in an orderly manner, with maximum utilization of the given resources. (Management of Prism Cement Limited works under the Managing director Mr Mr Manoj Chabra, who directly reports to Chairman Mr Rajen Raheja.) Corporate affairs etc., Functional Head -Accounts reports to the Managing director. Detailed organizational chart is enclosed herewith in next Page. 37
STATEWISE % MARKET SHARE SATNA CLUSTER PLANTS CLUSTER PLANTS 2008 – 2009 (FIG. IN % ) COMPANY
UP
MP
BIHAR
PRISM
8
8
5
13
ACC
15
7
0
7
BIRLA CORP
9
2
5
17
MAIHAR
12
4
3
2
NEPAL
38
DIAMOND
7
7
1
0
JAYPEE
25
14
8
36
SATNA CLUSTER
69
38
22
62
78
23
76
OTHERS
31
OBJECTIVE 39
OBJECETIVE
Objective has an important role in any research. No No rese resear arch ch exis exists ts wi with thou outt any any ob obje ject ctiv ive. e. Pris Prism m Cement Ltd. gave me six weeks project of — ANALYSIS OF DEALER’S PERCEPTION TOWARDS PRISM VIS –A – VIS OTHER COMP OMPETITIV ITIVE E BRA BRANDS with th thee obje jecctiv tive to know the dealer’s perception about pricing policy, quality, delivary system ,billing system,etc. sales volume volume ,ranking ,ranking of different brands brands ,pricing of different brands promotional supports given by the companies .effective media ,effective promotion & factors for recommending the particular brand were also fall under the objective.
40
Chapter 2 Chapter 3 Chapter 4 Chapter 5
Chapter 6 Chapter 7 Chapter 8 RESEAR CH METHODOLOGY Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 41
Chapter 15 Chapter 16 RESEARCH METHODOLOGY Chapter 17 Chapter 18
Sources of study:—
Design of the survey:—
The survey was extensively and exploratory designed to know the objective.It was designed in such a way that with in the six week ,the whole Allahabad market was covered by me. To meet the objective of the survey the info in form rmat atio ionn was was ob obta tain ined ed by vi visi siti ting ng vario various us authorized stockists of the company as well as by visi vi siti ting ng some some reta retail il coun counte ters rs and and stoc stocki kist stss of various other companies.
Data collection mode:—
The required to data to achieve the objective, was collected through a well designed questionnaire given to me by the company. 42
Sampling:--
I visited and met approximately 140 people including dealer, retailer of the Prism Cement Limited and other companies which I assumed to be adequate enough to create a sample.
DATA ANALYSIS AND INTERPRETATION
43
DATA ANALYSIS AND INTERPRETATION AVAILAB LABILITY SHOPS:-
OF
BRA BRANDS
AT
DIFFEREN ERENT T
44
45
BRAND NAME PRISM JAYPEE MAIHAR ACC SATNA
NO OF SHOPS AVAILABILITY (IN DIGITS) AT SHOP(IN %) 55 29.57 49 26.34 51 27.42 15 8.06 9 4.84 46
DIAMOND OTHERS(BIRLA PLUS/SAMRAT )
4
2.15
3
1.61
From the above figure ,it is i s obvious that prism is the most available product leaving behind its competitors. The 2nd position is occupied by jaypee ,after which maihar comes at 3rd position and then other brands. SALES IN ALLAHABAD (IN M.T.):
47
SALES IN PERCENTAGE : 48
SALES SALE S VOLUME VOLUM E OF DIFFERENT DIFFERENT BRANDS BRAND S:-
BRAND BRAND NAME NAME SALES SALES VOLU VOLUME ME SALES SALES VOLUME VOLUME 49
(IN %) PRISM JAYPEE MAIHAR ACC SATNA DIAMOND OTHERS( B.P. & B.S.)
(IN M.T.) 30 34 28 3 3 0
4,889 5,467 4546 430 485 70
1
165
From From the above above it is obvi obvious ous that that JAYPEE stands at the top position after occupying 34% share in mark market et and and le lead adss to PRISM,MAIHAR & other competitive brands in sales volume.
50
PRICING OF DIFFERENT BRANDS:-PRISM
51
DIAMOND:
ACC:
JAYPEE:
52
OTHERS:
53
PREVAILING PRICE IN THE MARKET:
BRAND NAME PRISM JAYPEE ACC MAIHAR DIAMOND OTHERS(BIRLA PLUS/SAMRAT)
PRICE RANGE (Rs.) 144—146 (champion) 150—155 (43 grade) 143—148 (buniyaad) 154--160 142--147 140--146 145--148
HIGHER RANGE:-54
PRISM ACC
150—155 (43 grade) 154--160
MIDDLE RANGE:-JAYPEE OTHERS(BIRLA PLUS/SAMRAT) PRISM
143—148 (buniyaad) 145--148 144—146 (champion)
LOWER RANGE:-MAIHAR DIAMOND
142--147 140--146
Above data & graph shows that PRISM & ACC falls in the category of higher price of PRISM range. Price
of JAYPEE,PRISM
(CHAMPION) & OTHERS (BIRLA PLUS/SAMRAT) fall fallss in the catego category ry of mi midd ddle le range range and pric pricee of MAIHAR & DIAMOND falls in the category of lower range. 55
Effec Ef fecti tive ve medi media a:
56
Above figure exhibits that WALL PAINTING & HOARDING is the first choice of people.Then PAMPHLETS & POSTERS occupies the 2nd and then T.V. ,RADIO & OTHERS. OTHE OTHERS RS INCL INCLUD UDE: E:--W --Wal alll pain painti ting ng on busy busy places,Bags,Seat cover & Kiosk etc. .
57
EFFECTIVE PROMOTION:
It is well known that customers are price sensitive.So people placed the DISCOUNT at top position for effective promotion. followed
ADVERTISING comes at the second by TARGET SEGMENT MEET
slot &
OTHERS. 58
FACTORS FOR RECOMMENDATION OF PERTICULAR BRAND:
OF COMMISION & FAVOURABLE PRICE at the People placed the % OF COMMISION 1 & 2 position.STOCK AVAILIBILTY & OTHERS occupies the 3rd & 4th position respectively. st
nd
OTHERS INCLUDE:- REPUTATION REPUTATION OF THE BRAND
COMPANY etc. .
INCENTIVES GIVEN BY in market, INCENTIVES
59
DEA DEALER’S R’S
PERCEPT EPTION TOW OWA ARDS
THE
QUALITY OF DIFFERENT BRANDS:
Quality is another major component of cement to which consumers give preference while purchasing ceme cement nt.. Cons Consum umer erss pref prefer er to pu purc rcha hase se th thee bran brandd hav havin ingg fas faste terr settin ttingg tim time, consis nsiste tennt sup uppply & weig weight ht,, attra ttracctive tive pack ackagin agingg, favo favouurab rable price rice,, dealer’s reputation in the market. Dealer say to me that quality quality of all prevailing prevailing brands, brands, is satisfa satisfactory ctory but setting time of PRISM is better in comparison with wi th ot othe herr comp compeetiti titive ve bran brands ds bu butt com ompl plai ainn of cracking is also included in this.
DEA DEALER’S R’S
PERCEPT EPTION TOW OWA ARDS
THE
DELIVERY OF DIFFERENT BRANDS:
60
There are various systems for delivery of products. To have a competitive competitive advantage advantage over others others in these days days of neck to neck competition ,FREE ON RAIL (FOR)service is the most popular one.Under this system , you don’t have to go FOR , transportation for collecting the products. In case of FOR cost is beard by the company itself. Other than this, sometimes shopkeepers have to go to pick up the products themselves. Here transportation cost may or may not be paid by the customers as the case may be. Most of the people prefer the FOR service and they feel that the delivery system of all competitive brands is Satisfactory.
DEALER’S THE
PERCEPTION
PACKAGING
OF
TOWARDS DIFERENT
BRANDS:
61
It is well known that “FIRST IMPRESSION IS THE LAST IMPRESSION. “ At which stage knowledge fails, our glimpse provides us the right destination. Attractive packaging plays an important role in enhancing the sale of any product. Dealer prefers attractive, comfortable in handling & fully packed packaging. During my survey I did not receive any complain from dealers about packaging except MAIHAR GOLD. They told me that there are some torn bags in the supply of MAIHAR GOLD
DEALER’S PERCEPTION TOWARDS THE BILLING SYSTEM OF DIFERENT BRANDS : During my survey I have noticed that the stockiest are not very satisfied with the account keeping of company. They say that they should be provided the statements of their account on the regular basis so 62
that they may get to know what they have got as a benefit. Most of the complains were related with the billing done by the company. They say that some someti time mess th they ey have have to sell sell th thee prod produc uctt at th thee lower price than the price conveyed by the company.
##About the different meetings:- Dealer’s told me that all the companies organizes MASONMEETING, SUBDEALERMEETING, ARC ARCHI HITE TECT CT MEET MEETIN ING G ETC .
##Frequency of visit isitiing of field offic officer er is:is: Normally during my survey, people informed me that frequency of visiting of field officer is satisfactory. Retailer rated the frequency of visit on 10 point scale which is given below: 63
8 out of 10 by J.P. 7 out of 10 by Prism. 7 out of 10 by Maihar. 5 out of 10 by ACC. 6 out of 10 by Satna.
DISCOUNT GIVEN BY DIFERENT BRANDS:—
PRISM:
C.D. :
2.5Rs. (wihin 3 days )
Q.D. :
2Rs.
(wihin 7 days )
***
( after 7 days )
1—20M.T. —
1Rs.
21—50M.T. 51 > M.T.
—
1.5Rs. —
2Rs. 64
JAYPEE—
C.D. :
4 RS.
( in advance )
3.50 3.50 Rs. Rs. (wihin (wihin33 days days ) Q.D. :
1—200M.T.
—
200—500M.T. 200—500M. T. —
TARG TARGET ET
INCE INCENT NTIV IVE: E:
1Rs. 2Rs.
10% 10 %
grow rowth over over
previous year sale-Rs.1perbag 25% growth over previous year sale-Rs.1.5perbag 50% growth growth over over previous previous year sale-Rs.2perbag
65
MAIHAR:
C.D. :
3Rs. (wihin5 days ) 2Rs. ( within 3 days) 1 — 500M.T. — 1Rs.
Q.D. :
500—750M.T .— 1.50Rs. 750—1000M.T.— 2.00Rs. TARGET INCENTIVE:
N.A
ACC:
C.D : 3 Rs. ( in advance ) Exclusive: 1.50 Rs. Per bag yearly. TARGET INCENTIVE: 500 ton/month - Foreign Toor CONFERENCE: Once in two year: SATNA:
C.D. :
2.50Rs. 2.00
(advance) (wihin 3 days ) 66
Q.D. :
15—45M.T.
—
1Rs.
\ 46—100M.T. — 1.25Rs. 101> M.T. — 1.50Rs. EXCLUSIVE: Rs. 1.00 per bag TARGET INCENTIVE:
N.A.
67
SWOT ANALYSIS OF PRISM CEMENT Ltd
SWOT ANALYSIS OF Prism Cement Limited ::-
STRENGTH:-
Large financial resources. 68
Largest intake capacity plant of kiln in India.
Offers the best quality of cement having faster setting time.
Has the consumption level of up to 25% less than that of other brands.
WEAKNESS:-
Lack of adequate number of advertisements. advertisements.
Sale less prom romotional schemes are less in numbers.
Absence of proper distribution channels
High price High rice of prod produc uctt bu butt cust custom omer erss are are observed to be price sensitive.
69
OPPORTUNITIES:-
Growth in infrastructural development will
result in the consumption of cement.
Government policies of rural development
will ill enh enhanc ance th thee dema demannd of ceme cement nt in rura rurall areas.
Substantial potential for growth.
70
THREATS:-
Competitive
pressure
on
sales
and
realization.
Present distribution if followed can lead in
decreasing market share. Any hike in price can effect the position of prism adversely.
71
CONCLUSION
72
CONCLUSION
Now I shall conclude my study. When I go through my whole research, there are several points, which are quite peculiar. The first and foremost fact, which comes out, is that, JAYPEE AND MAIHAR, both appear as closest competitors of PRISM. This is due to : Less price
Effect ective sales promotional scheme including emphatic advertisements.
73
It is also obvious from the datum that JAYPEE is in the top position in the sales volume. It is duee to reason du son that advert ertisin sing campaign of JAYPEE is so large. It provides allowable incentive also i.e. Provides foreign tour to the dealer in couple.
Invites the dealer’s for 1st day, 1st show movie with family twice in a year.
Organizes dealer meet also
One of the basic reasons behind the success of JAYPEE is the propagation of enough information about its product to the customer.
74
There are several factors which act as determinants for the successful performance of the cement. These factors are:
Good quality including fast setting time. Favorable price. Good distribution policy.
Effective sales promotional schemes including advertisements.
Large sales force for creating the demand .
75
Time to time information about prevailing market price & dealer’s perception about prevailing prices.
RECOMMENDATION
76
RECOMMENDATION
After my project study, going through the market conditions of cement and the marketing strategies of the company , I would like to make following suggestions to the company :An effe effect ctiive di dist stri ribu buti tioon po pollicy to increase the market share of PRISM. A better distribution system consisting of various channels of distribution will certainly uplift it’s present position .It has been seen that due to the lack of proper distribution,
77
PRISM’S cement is being severely effected, so a good policy should be quickly laid down. Actually the customers are price sensitive so price should be kept as reasonable as possible. Fostering better relationship among channel members by arranging regular meet a nd conducting workshops for them. Moti Motiva vati ting ng chan channe nell memb member erss to sell more cement of PRISM by asso associ ciat atin ingg in ince cent ntiv ives es to pres prescr crib ibed ed targets. Welfare schemes for channel members should be devised.
78
Devising some promotional schemes to attract the customers as well as channel members. Advertisement campaigns should be carried on comprehensive scale. Strict vigil about black marketing and price variations and appropriate action should be taken. Better sales margin should be given to channel members especially to retailers. And at last main and important suggestion emphasizes the fact that sales force should be increased.
79
QUESTIONNAIRE
QUESTIONNAIRE 80
Name of the firm Name of the proprietor/managing partner Are you a: C&F/Distributor/Authorized C&F/Distributor/Authorized Dealer/ Retailer Address Contact no.
1. Which companies you’re dealing with:
i. Prism ( ii. Jaypee ( iii. ACC ( iv. Maihar ( v. Satna ( vi. Mycem ( vii. Others (
) ) ) ) ) ) )
81
2.
i. ii. iii. iv. v. vi. vii.
Name of the brands which sells most in market: Prism ( ) Jaypee ( ) ACC ( ) Maihar( ) Satna ( ) Mycem ( ) Others ( )
3. What’s
your perception about pricing policy of different brands available in the market? Brand name Lo Lower range Middle range Higher range ACC Prism Jaypee Maihar Satna Others 82
4.
What’s your perception about quality of different brands available in the market?
Brand name
Average Good
Very good
Excellent ACC Prism Jaypee Maihar Satna Others 5.
What’s your perception about delivery system of different brands available in the market?
Brand name good
Average Good
Very
Excellent
Prism ACC 83
Jaypee Maihar Satna Others Brand wise sales of your counter: Brand name Quantity sold Prism ACC Jaypee Maihar Satna Others 6.
7. How
satisfactory is the billing system of different companies? Brand name Average Good Very good Excellent Prism ACC 84
Jaypee Maihar Satna Others
8.
i.
ii. iii. iv. v. vi. vii.
Which company gives you the best promotional support? Prism ( ) Jaypee ( ) ACC ( ) Maihar ( ) Satna ( ) Mycem ( ) Others ( )
9. What
kinds of meetings do different companies organize? Brand name MasonMeeting Subdealer meeting Architect meeting Others 85
ACC Jaypee Prism Maihar Satna Others What is sales sales volume volume of of different different brands brands in comparison with others? Brand Name Volume (%) ACC Prism Jaypee Maihar Satna Others 10.
What What is the frequenc frequencyy of Fi Field eld Officer Officer visit visit of given companies? Brand Name Weekly Once a month More than a week Very frequently ACC Prism 11.
86
Jaypee Maihar Satna Others What kind of promotional supports are given
12.
to you by companies? Brand Name Kiosk
Wall Painting BannerHoarding Banner Hoarding Others
ACC Prism ACC Jaypee Maihar Satna Others 13.
What kind of technical technical supports supports are given
to you by companies? i.
Brand Name 87
ii. Timely campaign Hand Handli ling ng Guid Guidan ance ce to cost costom omer er rega regard rdin ingg
iii.
construction practices iv. Others AC 14.
How will you rank different brands in your
area on the basis of their position? Brand Name Top level
Middle level Bottom
level ACC Prism ACC Jaypee Maihar Satna Others
88
15.
What is the price(in Rs.) at which you are selling other competitive brands?
Brand Name
WHOLESALE
PRICE/BAG
RETAIL PRICE/BAG ACC Prism ACC Jaypee Maihar Satna Which company’s packaging, are you satisfied? Brand name Rank in grade (A,B,C,D,) ACC Prism ACC Jaypee Maihar Satna 16.
89
Others How much discount(in Rs.) do you get from the different companies? Brand Name C.D. Q.D. Target Discount Exclusive Discount ACC 17.
Prism ACC Jaypee Maihar Satna Others
90
18.
Which is the effective media for the
cement ? i. T.V. ( ii. Radio (
) )
Wall painting & hoarding(
iii.
iv. Pamphlets & posters ( v. Others( 19.
)
)
)
What kind of promotion is effective for the
cement ? i. Advertising
(
ii.
Discount
(
iii.
Personnel Selling(
)
iv.
Publicity
)
v.
Target segment meet(
vi. Others(
) )
(
)
)
91
20.
Which particular brand do you suggest your
customer to purchase & why? i. ACC
(
)
ii. Prism (
)
iii. Jaypee (
)
iv. Maihar(
)
v. Satna (
)
vi. Mycem (
)
vii. Others ( 21.
)
Factors
which
you
consider
while
recommending the particular brand: i. % of com ommi misssio ionn (
)
ii ii.. St Stoc ockk avai availa labi bili lity ty((
)
Favorable price (
)
iii.
iv. Others(
)
92
SUGGESSION
SUGGESSION
93
The following suggestions are followed to cement companies based on the conclusion drawn from the research study:Companies have to increase the awareness level in the buyers through print media and and oth ther er adv advert ertise isement ent channels. Company should maintain their regular supply according to the demand. Proper survey and guideline should be given by the company. Quality and brand name are to important fact ctoor hence nce com compani anies have ave tried to build and maintain name and their goodwill in the market. Comp Compan anyy shou should ld have have reas reason onab ablle price of the product to reach everyone.
94
Word of mouth can be generated by keeping the existing customers.
95
BIBLIOGRAPHY
BIBLIOGRAPHY
“BUSINESS ZIKMUND”,
RESEARCH
METHODS-
WILLIAM G
96
MARKETING MANAGEMENT PHILIP KOTLER
MARKETING MANAGEMENT
V.S. RAMASWAMY & S.NAMA KUMARI FUNDAMENTAL OF STATISTICS
D.N.ELHANCE
Contact Us
CORPORATE OFFICE Prism Cement Limited 97
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98
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