A Project Report ON: I.B. (P.G.) College Panipat
A Project Report ON: I.B. (P.G.) College Panipat
A Project Report ON: I.B. (P.G.) College Panipat
(SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (SESSION 2013-14)
SUBMITTED BY: ANIL KUMAR B.B.A. III YEAR CLASS ROLL No. 7653 UNIVERSITY ROLLNo.....
DECLARATION
I ANIL KUMAR student of B.B.A. III year in I.B.(P.G.) College, Panipat hereby declare that the project report entitled MARKET SHARE OF ULTRATECH CEMENT submitted for the degree of B.B.A. III year is my original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.
(PRINCIPAL SIGNATURE)
ANIL KUMAR
ACKNOWLEDGEMENT
Survey is an excellent tool for learning and exploration. No classroom routine can substitute which is possible while working in real situations. Application of theoretical knowledge to practical situations is the bonanzas of this survey. Without a proper combination of inspection and perspiration, its not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the needy services they render during the different phases of our lives. I too would like to do it as I really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project. I would like to thank my professor MISS.NISHA GUPTA who was always there to help and guide me when I needed help. Her perceptive criticism kept me working to make this project more full proof. I am thankful to her for his encouraging and valuable support. Working under her was an extremely knowledgeable and enriching experience for me. I am very thankful to her for all the value addition and enhancement done to me. No words can adequately express my overriding debt of gratitude to my parents whose support helps me in all the way. Above all I shall thank my friends who constantly encouraged and blessed me so as to enable me to do this work successfully .
ANIL KUMAR
CONTENT PAGE
CONTENTS CHAPTER I :Introduction CHAPTER II : Profile of the organization CHAPTER III : Research design & Methodology CHAPTER IV : Overview of Aditya Birla Group and UltraTech cement CHAPTER V : Data presentation, Analysis and Interpretation CHAPTER VI : Conclusion REFERENCE & BIBLIOGRAPHY : Page No
Chapter I Introduction
Examples
In the early 2000s in North America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F". This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E". The Toronto Star quoted an analyst who warned that changing the name of the well known Windstar to the Freestar would cause confusion and discard brand equity built up, while a marketing manager believed that a name change would highlight the new redesign. The aging Taurus, which became one of the most significant cars in American auto history, would be abandoned in favor of three entirely new names, all starting with "F", the Five Hundred, Freestar and Fusion. By 2007, the Freestar was discontinued without a replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise move by Alan Mulally. "Five Hundred" was recognized by less than half of most people, but an overwhelming majority was familiar with the "Ford Taurus".
begun and we will see more consolidation in the coming years. Other budget measures such as cut in import duty from 12.5 per cent to nil etc. are all intended to cut costs and boost availability of cement. Sadly the adverse effects of global slowdown have not speared this industry too. Demand is sluggish, the government is keeping an eagle eye on prices, domestic coal and pet coke, prices have increased sharply and utilizations rates are down. The numbers coming out are a reflection of grim times. ACC the countrys largest cement company thats controlled by Swiss giant HOLCIM, registered 2% fall in august sales. The biggest fall since Feb. 2007. Production fell by 5%. To stand against the problematic situation, government as well as cement industry has taken some steps. Companies are focusing on cost of transportation. One of the strategy is to decrease dependence on road & opt for sea logistics as that can cut transportation cost by 30- 50 %. Some plants are adopting futuristic plan such as setting up captive power plant, moving closer to the customers by creating clicker, crushing, and capacity in key markets, to be more customer centric to generate better revenue. India should push for stricter regulations of market place as to control the prices of big companies and prevent them from forming cartels and exchanging information. To fight with the high inflation, government wants to import more cement from Pakistan .However cement prices are not very much high as other items but still they are increasing. And the reason of high price is surging cost of raw material and transportation cost. Apart from this government also discussed with cement industry not to have increase in prizes and keep consumer interest in mind. Now the question arise in front of the government is whether the demand by the government is possible to increase through expenditure on infrastructure or not according to the current state of economy when so many crises are going on or how the government allocation of US$ 3.23 billion for the National Highway Development, Project will keep the demand for cement alive? And to what extent the prices of cement should be increase so that consumer cant affect.
The Cement industry is one of the largest and most exciting sectors to be working in today. It is a rapidly changing environment where many advances have taken place over the past 20 years. Furthermore, it will continue to develop and evolve at an everincreasing pace over the next decade. New technologies and exciting new discoveries have driven this evolution. This is one of the research done for fulfillment of my study programme of Post graduate diploma in Management.
1.6
Though this research has been made for fulfillment of my course structure of Post graduate diploma in Management, even I can say from this study I have learnt a lot and the fulfillment of below said matters. I have learnt a lot about the Cement selling details, about promotion of cement, about distribution of cement, about pricing of cement, about the cement market etc.
The learning can give me a exposure in a cement company or any FMCG or FMCD or any Pharmaceutical company, as a fresher.
This research is fully made on Primary data Collection, its shows that I can handle pressure & its a added advantage to grab a good company after completion of my course.
With the help of this research, I can easily conduct any research if after getting a job my company give me any responsibility to conduct a research programme.
The research findings threw up the same qualities, but the name itself was not associated with anything tangible because L&T was not by itself a meaningful word. Moreover, the group wanted a new brand image, which portrayed the intrinsic premium value of the brand on cue from the findings of the survey. The outcome was UltraTech Cement. Mr. Puranmalka insists "nothing has changed except the name". There is no doubt that, with the unveiling of this new brand identity, the Aditya Birla Group implemented one of the largest brand transition exercises in India in the category. Says Puranmalka: "The name UltraTech with the signature line, 'The Engineer's Choice', admirably captures the premium nature of the brand and its salience." According to Mr. Puranmalka, excellent product quality and customer care will remain the hallmark of UltraTech cement.
Strategy
Although cement is said to be a low-involvement category, the brand awareness in this category is very high. Major brands like ACC, Ambuja and some strong regional brands have been fighting for mind space. Says Mr. Puranmalka: "Brand awareness is the category driver. We wanted to be different and were constantly on the look out for high visibility media. We found that cricket has a great following in our country and we wanted to explore the possibility of associating with this sport. "Starting with in-stadia branding, we moved on to be the co-sponsor to the Indo-Pak series held in Pakistan. This turned out to be a great success for both the Indian team as well as us. To further strengthen the bonding with the channel partners, over 400 of them were taken to witness the match. It was a glorious and unforgetful experience of visiting Pakistan. This was an event by itself."
Chak De India
India, the world's largest producer of movies in as many as 10-12 different languages, provides a great opportunity for advertisers to reach the masses. Films are a great entertainment platform for most Indians. Many FMCGs have encashed this opportunity. The in-film branding opportunity was used by UltraTech for the first time ever in the cement industry. The film Chak De India, promoting women's hockey in India, became an all-time hit. In the movie UltraTech was the sponsor of the Indian women's hockey team. UltraTech branding was all over, throughout the movie. 'It was a big gamble we took," says Mr. Puranmalka. "Initially we were sceptical, with many big banners with big stars failing in the recent past. After a lot of deliberation, we decided to go ahead with this gamble and finally Chak De India almost became like a national anthem, with India winning the women's hockey title in reality and our cricket team winning the inaugural 20-20 World Cup."
Branded channels
Surging ahead of competition, the cement business brought in a new concept in cement marketing UltraTech Building Solutions, a one-stop shop for all construction needs. "This is a unique concept and was tested in Rajkot which is one of the fastest-growing cities in construction in the country today," says Mr. Puranmalka. "Advocating our Plan, Build and Support" philosophy, it seeks to enhance the shopping experience of customers and strengthen existing trade partnerships, by upgrading the service proposition. It offers a wide spectrum of end-to-end home building solutions, high quality construction materials and allied value-added services. As a business model, UltraTech Building Solutions offers home building solutions from planning to completion. Basically, every customer who walks in to UltraTech Building Solutions outlet receives guidance on construction-related issues as well as value-added services like Vastu, usage of budget software to estimate costs involved for construction, paper clearance procedures, etc. The customer gets a ready reckoner of information on how to choose and buy quality construction materials. With the Rajkot success and with key learning points, the company intends to open many more outlets across the country.
UltraTech Concrete:
While the economy is growing, timely completion of infrastructure projects has become more challenging. With emerging technologies, one no longer has to maintain huge stocks of cement and allied products, create chaotic environment and increase costs; ready-made concrete is the answer. The company forayed into the ready mix concrete about eight years back. With its first plant commissioned in Hyderabad, ready mix concrete was sold as a brand, 'Birla Ready Mix'. True to its tagline 'concrete on call', the company was able to capture the imagination of customers and service them round the clock. "The concept was new then," says Mr. Puranmalka. "It was more of concept selling than a product. We had to tailor-make our communication around issues in comparison with the site mixed concrete, quality consistency, concrete testing facility, ease of handling, technology, etc. In a very short time Birla Ready Mix Concrete became a generic name. The success of the brand led to the opening of a few more plants in Hyderabad itself and expansion to other states pan-India. With the transition of Birla Plus to UltraTech Cement, even Birla Ready Mix Concrete was rechristened UltraTech Concrete'. "Our UltraTech concrete plants are present in Mumbai, Pune, Nasik, Nagpur, Ahmedabad, Surat, Gurgaon, Noida, Jaipur, Chandigarh, Chennai, Bangalore, Hyderabad, Cochin, Vizag, Ludhiana, Raipur and Kolkata and many more are coming up," says Mr. Puranmalka. Keeping in tune with the latest technology, UltraTech Concrete offers speciality concrete like UltraTech Fibrecon, a fibre reinforced concrete, UltraTech Free flow, UltraTech colorcon, UltraTech stainless, a corrosion resistant concrete, and UltraTech Thermocon. This wide array of choices will help customers choose the right type of concrete that suits their construction needs. UltraTech Cement has 11 integrated plants, seven split grinding units and five bulk terminals, including one in Sri Lanka. UltraTech is India's largest exporter of cement and clinker. The total cement capacity of the Aditya Birla Group is 31million tpa. O.P. Puranmalka: Brand UltraTech Excerpts from an interview with O.P. Puranmalka, Group Executive President, Grasim Industries and Chief Marketing Officer, UltraTech Cement Ltd. Why are you opting for a single national brand? Cement is an integral part of the Aditya Birla Group's business and a clear focus area. The integration into one national brand is proof of that and a signal of the Group's commitment to take it further. The new beginning with UltraTech Cement as a national brand for the Group will not be a departure from the fundamentals that created Birla Plus. In fact, it will be an acceleration of that. We would like to present a common and unified brand identity across the country. We have therefore chosen UltraTech Cement as the national brand for the Aditya Birla Group's cement business. Presently, we have two power brands in the country, but they operate in different markets and neither of them is a pan-India brand, in the real sense. While both the brands have
different identities and personalities, the core or the soul of both brands is the same, i.e. the Aditya Birla Group's lineage, superior product quality, premium cachet, trust and reliability. Since the DNA of the brands is same and the core promise of the brands is also similar, we felt that we would be better off with one national brand. With over 25 million tonnes per annum volumes, we now have UltraTech as the single largest cement brand in the country. With a single brand, it is easier to enter the hearts and minds of the consumer. We feel that combining the strengths of the two brands and two teams will have a multiplier effect on the quality of our service and therefore the brand equity.
Why have you opted for Ultratech Cement when you have strong existing brands such as Birla Plus? Why not vice-ersa? Once we internally analysed that there were great synergistic benefits that accrue to consumers as well as the companies by transiting to a single national brand, it was a question of choosing either of our two national brands, i.e. Birla Plus or UltraTech cement. This was not easy as both brands enjoy substantially high brand equity in their respective markets of operation and have a very high emotional connect with customers. Both are the most recognised brands in the category. Birla Plus came through as a good quality brand with a very powerful and popular brand name. What remained peripheral were technology and dynamism. UltraTech on the other hand came across with a more contemporary and modern imagery. We opted for UltraTech as the national brand because while on the one hand it gives us the opportunity to strengthen common attributes of a well-known brand, scale of operations and the Aditya Birla Group's reputation, it also provides an opportunity to build on the positioning platform of "expert" and imagery signifying progress, cutting edge technology and modernity. The brand UltraTech has extremely positive associations and awareness even in non-UltraTech markets such as the north zone. Why are you not using the Birla brand name? As mentioned earlier, the Aditya Birla Group's lineage is our core strength and the UltraTech brand also has benefited from this association. While for the product brand name we are not using the "Birla" brand name, but in all our communication, whether to mass media like press, television, outdoor or retail branding, the Aditya Birla Group lineage comes across very strongly.
In fact, that is why we used the Jaan Wahi, Pehchhan Nayi as our campaign theme. It is a change we are making with great care, as we do not wish to jettison the strengths we have currently and move to unchartered territory. The core of Birla Plus' positioning - trust, reliability and the Aditya Birla Group's lineage - will continue in its new avatar, i.e. UltraTech. The change will add and not subtract from the equation. Will there be financial / economical gains due to the single national brand? As pointed out earlier, the single national brand exercise is aimed primarily at developing a common and unified brand identity across the country. This exercise is not driven by financial gains. How different were the two brands and how do you see UltraTech evolving post this transition? Birla Plus had evolved into a significant brand and it stood for a set of values of simplicity, smartness and reliability. With our campaigns of establishing it as Har Nirmaan Ki Jaan we brought in a bit of gorgeousness and lot of charm into the brand whereas UltraTech Cement was a brand on its own without any history. Our brand track researches suggest that it is probably the fastest growing cement brand in terms of equity and brand awareness. By combining the soul of Birla Plus with the imagery of UltraTech, the brand will be distinctive and powerful, have distinctive lineage, with clear "technology" perceptions. In other words, we see UltraTech as being truly competitive, differentiated and having a strong and clear equity. The UltraTech brand aims to generate its strength by creating and consistently delivering distinctive performance benefits with compelling emotional benefits found in the brand personality. How much will change now that Birla Plus will not be used as a brand? What are the changes being incorporated after the launch of UltraTech as the national brand? Nothing much will change after this brand name change. Birla Plus will now be known as UltraTech cement and that is the only change. The same stateof-the-art technology will continue to provide the same unmatched quality. The same team of efficient technicians will manage these production facilities to provide a world-class product that consumers have been used to all these years. The same committed and dedicated field force will be there in the market to provide the same level of customer care, which has made this product so loved by consumers. Therefore technically speaking it is not a new brand but only a new name for Birla Plus. Nothing else has changed and hence Jaan Wahi, Pehchaan Nayi. What is the risk that the premium enjoyed by Birla Plus brand will not be lost in this brand transition? Since essentially the Jaan of the brand is not changing and we are only giving it a new Pehchaan, we are confident that there will be no dilution in either the volumes or the premium commanded by the brand.
A brand, as perceived by the only legitimate judges - our customers - is the sum of all their interactions with our company. Every place a customer can interact with our company is a touch point, and that touch point affects how we are perceived. A poor experience with one touch point can negate all the brand equity we build in other touch points. The premium is built on the basic characteristics of the brand. This basic character has its origin in the people who own the brand, the internal processes that support the brand and the trade partners who distribute the brand. As I have said at various points the only thing that will change in this entire process of transformation is the name of the brand and everything else remains the same. The premium quality, the enormous technological backing, a dedicated team of technicians and managers and a commitment to serve the nation was what made Birla Plus so successful. Added to this were a team of dedicated, committed and resourceful trade partners and other service providers. This combination was responsible for placing Birla Plus cement so high in consumers' estimation and that combination is still intact. Will you have a common team to look after the brand and what will the advantages of that? With a common team looking after one national brand, we would be in a better position to provide a synergistic, consistent and superior service across the country. A common team has already been put in place internally. These teams are now building on each other's strengths, providing knowledge integration and exploiting synergistic opportunities. We now intend to take this forward to our team of dedicated, committed and resourceful trade partners and other service providers. What are your major markets and where do you plan to expand? With this brand transition of Birla Plus to UltraTech, the brand UltraTech Cement enjoys a leadership position in practically all the markets it sells in. It also becomes the single largest cement brand in the country with a pan-India presence. We plan to consolidate our leadership position in these markets and complete the process of transition to UltraTech in the next few months. Certain capacity expansions have already been announced. We will be adding 15 million tonnes capacity in 2008-09. Ready Mix Concrete is a key focus area for us and we have lined up expansion plans for this business. How are you going to generate awareness about the brand? Instead of focusing the brand essence on merely product attributes or brand personality, a conscious effort is being made to focus brand essence on a set of touch points through which the brand can deliver a consistently distinctive and inspiring customer experience. We have planned a series of product awareness launches across the country over the next couple of months. These ground events will be accompanied by road shows to create awareness about the product amongst consumers and trade partners. We will also organise technical meets with dealers, stockists, retailers, individual house builders, engineers, architects, masons and contractors to reassure them that UltraTech will have the same quality that they have come to expect in a premium product. In addition, a brand new television commercial, an innovative press campaign and creative usage of outdoor media will also be helping spread awareness about the new product.
What kind of marketing spends are envisaged in next few months? The strength of such brands is matched only by the speed at which they are being built. Given the scope and scale of the brand leverage effort, an attempt has been made to build a much tighter link between corporate strategy and brand strategies. The brand is being seen as an asset that can drive growth and its positioning reflects not only existing markets, but also emerging opportunities. The spending on the brand is being truly viewed as an investment in a dynamic asset that can be leveraged into new offerings, markets and audiences. The spending on the brand will be enough
to communicate the transition and will not be wasteful. What was the brief given to the advertising agency and its creative team? Are there any new promotional schemes for the next few months? Since Birla Plus cement had developed strong personality dimension, it was decided that UltraTech would appropriately maintain a focus on the core personality elements to ensure that there is no dilution in core equities during the re-naming exercise. The agency was asked to design communication at all touch points to effectively communicate that the only thing that has changed in this entire process of transformation is the name of the brand and everything else remains the same. Hence the campaign - Jaan Wahi, Pehchaan Nayi. The brief also ensured that in this process of transition, none of the values or attributes should be lost or diluted. The communication had to be designed in such a manner. What is the industry scenario for 2008? The continued emphasis given by the government in the recent past on the development of infrastructure like roads, ports and urban infrastructure like flyovers, etc. means that cement demand will continue to rise. Similarly, developments in the housing (especially rural housing) sector have also added to the growth of the cement market. This is in spite of the fact that the per capita consumption of 110 kgs is below the world average of 356 kgs and far below that of the Asian economies like China and South Korea. This provides a tremendous opportunity and the cement sector is poised for exponential growth. We may witness continued consolidation efforts in the industry.
What are your rural marketing plans? The various initiatives taken by the government recently have given a boost to the rural economy. The rate of growth of the housing sector in the rural segment is increasing every year.
UltraTech is already well represented in the rural markets and we are planning various initiatives, which will help us grow in this sector. For obvious reasons I am unable to share these plans at this stage. These will include providing technical assistance to masons and contractors, teaching them more cost-efficient construction methods and usage of eco-friendly cement and cement products.
UltraTech unveils a new campaign What do consumers expect from a leader? Everyone looks up to a visionary leader to understand the possibilities tomorrow holds. And you have a greater responsibility to bear when you are Indias largest cement company. In the present day context, UltraTech is playing an important role in the infrastructural development of the country. No wonder, UltraTechs every creation is a window to tomorrow. And an effective communication was needed to reflect the same. According to Mr. O.P. Puranmalka, Group Executive President, Cement Business, Aditya Birla Group, the challenge was to create an emotional connect while retaining the technological superiority. The communication had to furthermore reinforce UltraTechs position, cue leadership and take the brand to the next level. It was quite a daunting task for Interface Communications, the advertising agency for UltraTech, to get the right mix of emotions and technological superiority that appeals to everyone right across IHBs to architects and large commercial establishments. The agency developed an idea that turned out to be one of the most distinct and clutter-breaking films the Indian viewer has seen. It is also a logical extension to the expert platform that seamlessly cuts across segments and takes the communication to the next level through a simple theme Har badalte aaj mein, maine kal ko dekha hain. According to Puranmalka, The film provides a great mix of emotions blended with eye-catching technology through superior graphic work. The communication reinforces UltraTech as an expert in continuous pursuit to achieve perfection. The film has received rave reviews from everyone in the industry and consumers. According to Rajesh Saathi, Director, Keroscene Films, Its the simplicity of the idea that actually made this a piece of marvel. Evidently, the campaign is able to cut across the masses and connect with people in cities as well as villages. Thats the power of an idea. And today along with the leader, every Indian says: Har badalte aaj mein, maine kal ko dekha hain.
As per the management, the transaction would be completed by end of Q1FY11, and would be accretive to its earnings per share. The acquisition is in line with UTCLs long-term strategy of expanding its global presence across businesses. The acquisition would give UTCL the advantage of size. Apart from adding value to its capacity, it will benefit UTCL as Abu Dhabi and Bahrains real estate markets are not as depressed as Dubai. The economies of both Abu Dhabi and Bahrain are largely driven by oil, which, given the recent rise in crude prices, could soon revive construction activity and boost demand for cement. The Board of Directors at its meeting held on November 15, 2009 approved the amalgamation of Samruddhi Cement Ltd with UTCL in terms of a Scheme of Amalgamation under sections 391 to 394 of the Companies Act, 1956 (the Scheme). The appointed date of the amalgamation is 1st July, 2010. The Board has also approved the share exchange ratio of 4 (four) equity shares of the Company of face value Rs. 10/- each for every 7 (Seven) equity shares of Samruddhi of face value Rs. 5/- each. The Cement Business of Grasim Industries Limited (Grasim), the holding company, is currently under demerger to Samruddhi and the Scheme will take effect only upon completion of the demerger and issuance of shares of Samruddhi to the shareholders of Grasim pursuant to the demerger. On the completion of this scheme, UltraTech is expected to emerge as the largest Cement and RMC entity in the country, and 10th largest in the world in cement capacity. Grasim, announced demerger of its cement business into its wholly owned subsidiary Samruddhi Cements Ltd, which will ultimately be merged with UTCL to make it the largest pure cement player in the country. The board of UTCL has approved the restructuring. The first leg of the restructuring process i.e. demerger of Samruddhi from Grasim has been sanctioned at the High Court of Indore on March 31, 2010 but is yet to be sanctioned by the High Court of Gujarat. The second leg of restructuring is expected to be completed by July/August 2010. Going forward, UTCL has indicated that the industry demand for cement could grow by 10% due to initiatives being taken by the Government on the infrastructure front. However, it is expected that the industry will witness a surplus scenario in FY11 with the management expecting addition of 30 MTPA during the year and this could result in pressure on margins. Capacity utilization rate is expected to be ~80% and this too could put pressure on margins. The management has indicated that it will focus on higher growth together with cost efficiency that could partially offset the pressure on its margins it could face due to the oversupply scenario.
3.1
Sampling Design
Survey has conducted by circulating questionnaires among the dealers and sub-dealers, in Asansol market. Data source: Data collected first hand directly from the retailers / stockiest by questioning them. Sampling unit: Since there are so many cement outlets in Asansol, the universe of survey included all cement retailers of Asansol city. As well as I have to cover the potential retailers of cement like: a) Paint shops b) Hardware shops c) Marble shops
SAMPLE SIZE
a) 50 samples have been taken from the all cement outlets of Asansol. b) 30 samples have been taken from the Petty Contractors of Asansol. c) 30 samples have been taken from the individual house builder d) 30 samples have been taken from masons.
SAMPLING PROCEDURE
A sample is that by selecting some element from the population and by using the information we got from the sample we can draw conclusion about the population. All the samples have randomly selected by zone wise.
3.2
Area of study: Asansol, West Bengal. The design guides selection of sources and types of information. A research design is based on research questions. The market survey conducted on dealers, sub-dealers over Asansol city. For convenience I have divided the whole Asansol in to 3 zones those zones with covering area are given below. I have taken my sample from these 3 zones. Zone-1 area from Asansol Court to Mahishila. Asansol Court market, Sreepally more, Budha more, Ismail more, SD Hospital more, Battala Bazar, Mahishila. Zone-2 area from LIC Asansol more to Asansol Bazar Bhagat Singh more, Kalyanpur housing colony, Asansol Bazar Zone-3 Court more to Burnpur Busstand Court more, Rabindranagar, Chitra more, Nimtala more, Burnpur.
TOOLS USED
Various tool which will be used in this research are given below 1) Questionnaire of four types a) for cement sellers. b) for Petty Contractors. c) for Individual house builders. d) for Masons. 2) For analysis of data MS Excel
INSTRUMENT DESIGN
Questionnaire will be selected as research instrument with the following features 1) Closed end questions 2) Open end questions Facts kept in mind while preparing the Questionnaire A) Questionnaire made simple and easy to understand. B) Respondents were provided with multiple-choice questions. C) Questions on suggestions and comments were kept open ended.
3.3
The research method and research reports may not be completely free errors and drawbacks. There will be some of the study, which should be known to the researcher and must be accepted while preparing the report. The hide out limitations must be dangerous to the research as well as to the executive because they may use the conclusion and recommendation without caring for the limitations. That may be prove to be fatal organism while implementing the measure suggested after the analysis of the report. The project was done only for Asansol city. Therefore, the report could have been better one if it can cover more areas of Asansol. This project report covers mostly urban areas so the perception of the rural people might be differ from it. The respondents are unenthusiastic to answer the questions in the absence of the owner. Some of the respondents really had no sales information as they said they have never calculated the average sales. The respondents refused to answer during the business hours for which I had it visit them several times. Some of the respondents were very casual when answering the questions. The prospective cement respondents have shown their anger while answering the questions the question because they said they dont want to start cement business and refused to give any suggestion for improvements in UTCLs marketing. Due to time, money and piercing heat constraint I could not cover all the cement retailers in Asansol city.
CHAPTER: IV
4.1
rooted in India values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. A US$ 8.3 billion conglomerate, with a market capitalization of US$ 14 billion, it is anchored by an extraordinary force of 72,000 employees belonging to over 20 different nationalities. Over 30 percent of its revenues flow from its operations across the world. The Groups products and services offer distinctive customer solutions. Its 72 state-of-the-art manufacturing units and sectoral services span India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China. A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in which it operates. Such as viscose staple fiber, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators and financial services. It is: The world No. 1 in viscose staple fiber The worlds largest single location palm oil producer A non-ferrous metals powerhouse and among the worlds most cost efficient producers of aluminium and copper. The worlds largest single location world-scale copper smelter The worlds No.1 in insulators, with its joint venture with NGK of Japan Globally, the fourth largest producer of carbon black
The 11th largest cement producer in the world and the seventh largest in Asia
Indias Premier branded garments player Among the worlds best energy efficient fertilizer plants Indias second largest producer of viscose filament yarn The No.2 private sector insurance company, and the fourth largest asset management company in India
BEYOND BUSINESS
A value-based, caring corporate citizen, the Aditya Birla Group inherently believes in the trusteeship concept of management. Part of the Groups profits are ploughed back into meaningful welfare-driven initiatives that make a qualitative difference to the lives of marginalized people. These activities are carried out under the aegis of the Aditya Birla Centre for Community Initiatives and Rural Development, which is spearheaded by Mrs. Rajashree Birla. A US $28 billion corporation with a market cap of US $31.5 billion and in the league of Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations. The Group operates in 20 countries: India, Thailand, Laos, Indonesia, Philippines, Egypt, China, Canada, Australia, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea. Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting. The Aditya Birla Group, India's first multinational corporation, traces its origins back to the tiny village of Pilani in the Rajasthan desert, where Seth Shiv Narayan Birla started cotton trading operations in 1857. Today, the Group's footprint extends to 20 countries and its revenues are US$ 28 billion.
UltraTech has five integrated plants, five grinding units and three terminals two in India and one in Sri Lanka. These include an integrated plant and two grinding units of the erstwhile Narmada Cement Company Limited, a subsidiary, which has been amalgamated with the company in May 2006. UltraTech is the country's largest exporter of cement clinker. The company exports over 2.5 million tonnes per annum, which is about 30 per cent of the country's total exports. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East.
The cement division of L&T was demerged in 2004 after Grasim made the 30 per cent open offer for equity shares, gaining control over the new company, christened UltraTech. Besides the long term strategic value in the wake of rising demand for cement, with the growth of housing and infrastructure sectors in the country, the acquisition brings significant synergy gains to the parent company. Ready Mix Concrete is likely to see substantial growth in the coming years. Recognising the opportunities that this business will offer, UltraTech has commenced setting up of Ready Mix Concrete plants at various places in the country. Ultra Tech Cement Limited, makers of premier cement, is a subsidiary of Grasim Industries Ltd., the flagship company of the Aditya Birla Group. The group is the eleventh largest cement manufacture in the world and number one in
India. Its basket of products includes ordinary Portland cement, Portland blast furnace slag cement, Portland Pozzolana cement and Grey Portland cement. It also exports clinker and cement. Ultra Tech has five integrated plants, five grinding units, and three terminals two in India and one Sri Lanka. All the plants have ISO 9001 certification. Most of the plants have also been certified for ISO 14001 and OSHAS 18001. Ultra Tech is the countrys largest exporter of cement clinker. The company exports over 2.5 million tones per annum, which is about 30 percent of the countrys total clinker exports. The export market comprises of countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a thrust area in the companys strategy for growth. The cement division of L&T was demerged in 2004 after Grasim made the 30 percent open offer for equity shares, gaining control over the new company, christened Ultra Tech. Besides the long term strategic value in the wake of rising demand for cement, with the growth of housing and infrastructure sectors in the country, the acquisition brings significant synergy gains to the parent company. Narmada Cement Company Limited, a subsidiary, was amalgamated with Ultra Tech in May 2006.
Gujurat Cement Works Plant I 1994 Hirmi Cement Works 1993 Jharsuguda grinding unit 1987 Awarpur Cement Works Plant II 1983 Awarpur Cement Works Plant I
PRODUCTS
Ultra Tech is Indias largest exporter of cement and clinker. The companys Production facilities are spread across five integrated plants, five grinding units, and three terminals two in India and once in Sri Lanka. All the plants have ISO 9001 certification, and all but one have ISO 14001 certification. While two of the plants have already received OSHAS 18001 certification, the process is underway for the remaining three. The company exports over three million tones per annum to countries around the Indian Ocean, Africa, Europe, and the Middle East, accounting for about 47 percent of Indias total clinker and cement exports. Ultratechs products include Ordinary Portland cement, Portland Pozzolana cement and Portland blast furnace slag cement. Ordinary Portland cement Portland blast furnace slag cement Portland Pozzolana Cement Cement to European and Sri Lankan norms.
Ordinary Portland cement Ordinary Portland cement is the most commonly used cement for a wide range of applications. These applications cover dry lean mixes, general purpose ready mixes, and even high strength pre-cast and pre-stressed concrete. Portland blast furnace slag cement Portland blast-furnace slag cement contains up to 70 percent of finely ground, granulated blast-furnace slag, a nonmetallic product consisting essentially of silicates and alumino-silicates of calcium. Slag brings with it the advantage of the energy invested in slag making. Grinding slag for cement replacement takes only 25 percent of the energy needed to manufacture Portland cement in a concrete mixture is a useful method to make concrete better and more consistent. Portland blast furnace slag cement has a lighter colour, better concrete workability, easier finishability, higher compressive and flexural strength, lower permeability, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency. Portland Pozzolana Cement Portland Pozzolana Cement is ordinary Portland cement blended with pozzolanic materials (Power station fly ash, burnt clays, ash from burnt plant material or silicious earths), either together or separately. Portland clinker is ground with gypsum and pozzolanic materials which, though they do not have cementing properties in themselves, combine chemically with Portland cement in the presence of water to from extra strong cementing material which resists wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete and mortar.
capacity is in excess of 31 million tpa, of which 17 million tpa capacity comes from Ultra Tech. This makes the Aditya Birla Group the eighth largest cement player in the world. The Group now has 11 composite plants, seven split grinding units, four bulk terminals (inclusive of one in Sri Lanka), and eight ready mix concrete plants. This accords the Group a strong national presence in the cement sector, with a leadership position in several states. We at Ultra Tech will leverage synergies and further strengthen our ability to complete in the Indian and the overseas markets. We expect Ultra Tech to grow faster than the market and to improve market shares. At the same time developing beachheads overseas through a profitable exports business is a priority for us, remarked Mr. Birla. In his view, the cement business to be in. Giving an overview of the sector, Mr. Birla commented that India has enormous potential for growth, given the lower per capita consumption of only 110 Kilos against the global average of 260 Kilos at present. The per capita consumption of cement in India is perhaps the lowest in South East Asia. In Thailand it is 293 Kilos, China 429 Kilos, Malaysia 529 Kilos, and in South Korea 951 Kilos. India thus offers a tremendous growth opportunity given its lower per capita consumption. The rise in per capita consumption would be fuelled by the strong growth in the housing sector and the governments thrust on infrastructure development. This is will propel a robust volume growth. Said Mr. Birla, I believe that Ultra Tech is uniquely positioned to capitalize on these developments, given its unique brand values and customer orientation. I see a great future ahead.
Distribution Logistics:
Cement is manufactured in continuous process plants. Cement is stored in soils but the silo capacities are limited. Therefore cement has to be evacuated from the works. Cement can be transferred by rail, road or sea, by rail it is loaded in rakes for a railhead which can be inside or outside the plant. From the railhead it has to be cleared i.e. unloaded on to the platform and loaded into trucks, from where it can be transported directly to the customers or dealers or can be send to the marketing dump and then dealers and customers time to time in case of road too trucks can be sent to transit dumps outside the factory normally the truck generation center it can be transported directly to the customers or dealers or can be send to the marketing dump and then dealers and customers. In case of sea transportation firstly conveyed by conveyers to the captive jetty (Port) and then loaded in to ships from where it is sent to receiving port of terminal operations bulk cement from the receiving port is again sent by conveyers or by browsers (by road in tanker) or the terminal. From the terminal it is sent to the dealers or customers by road.
1. AWARPUR CEMENT WORKS (ACW) Awarpur cement works is located at village Awarpur in Chandrspur district in Maharastra. It is 212 Kms away from Nagpur city towards south. The plant capacity is 2.5 MTPA. This plant is having two units and equipped with all latest generation equipments. The plant is having huge railway sliding as well as truck loading system. This railway line is connected to central railway 2. JHARSUGUDA CEMENT WORKS (JCW) Jharsuguda cement works is grinding unit having installed capacity of 0.7 MTPA. This is located at Dhutra village of Jharsuguda district in Orissa, which is 15 Kms away from Jharsuguda town. The plant is having latest facilities required for slag cement grinding, soils as well as packing plant. The plant has its own siding for dispatching cement to different destinations a swell as truck loading system. This plant producing high quality slag cement conforming to Indian standard this plant has a very sophisticated laboratory for monitoring quality control. 3. HIRMI CEMENT WORKS This plant located at village Hirmi of Raipur district in Madhyapradesh, which is 64 Kms away from Raipur city. The installation capacity of the plant is 1.45 MTPA. The plant is having a well-compacted layout and is inducted with all latest equipments. It has been performing very well in all aspects. This plant is having very high efficiency cement mils, raw mill, kiln as well as control system. 4. GUJURAT CEMENT WORKS (GCW) This plant is located at the village Kovaya in Amreli district of Gujarat. The total installed capacity is 4 MTPA. This is the largest installation capacity of the plant is 1.45 MTPA. The been performing very close to Arabian Sea and having captive jetty which can accommodate ships for loading of cement, clinker, and unloading of coal.
5. ANDHRA PRADESH CEMENT WORKS (APCW) This is the youngest plant which is located at Tadpatri, district Anantpur in A.P. This plant having very well compact layout in multilevel. This plant is inducted with all latest equipments and have been producing very high quality cement. This plant is having its own railway siding which is connected is connected to Chennai /Delhi truck route.
ZONE 1: includes area from Asansol Court market, Sreepally more, Budha more, Ismail more, SD Hospital more, Battala Bazar, Mahishila.
From the above figure we can observe that in this zone from the total average sales (for zone-1) Ambuja is the leader with acquiring 32% of the total average sales of cement. Followed by Lafarge, with a market share of 25%. Followed by Konark having its market share of 20% and Ultratech is having 18%. In this locality due to price structure & due to some marketing fault Ultratech is far behind from these brand. Many retailers saying that Ultratech is a good brand but their marketing effort is not good their management is not good, so they dont want to do business with Ultratech.
BRAND EQUITY OF LEADING BRANDS IN ZONE-1 Sl. No. 1 2 3 4 Name AMBUJA LAFARGE KONARK UTCL SALES in Bags 16000 12500 10000 9000 Table: 5.1 MKT Share (%) 32 25 20 18 Position FIRST SCOND THIRD FOURTH
It is observed that the people of this zone is very much price sensitive. This zone includes the area where there is an ample opportunity present for the development of the locality. Also there are several earl estate firms are growing up who are going to construct buildings very soon. Also some good technical institutions are in this zone, those are very much involved in competing with each other by constructing new buildings. So lot of scope is still present for the development of the locality. Also there are several real estate firms are growing up who are going to construct buildings very soon. Also some good technical institutions are in this zone, those are very much involved in competing with each other by constructing new buildings. So lot of scope is still present in this market. UTCL should start more trading and non-trading cement supplies in this area. So there is a good market for the company to establish the position of UTCL in this market.
Zone-2 area from LIC Asansol more to Asansol Bazar, Bhagat Singh more, Kalyanpur housing colony, Asansol Bazar Figure:5.2
BRAND EQUITY OF LEADING BRANDS IN ZONE-2 Sl. No. 1 2 3 4 Name LAFARGE AMBUJA UTCL KONARK SALES in Bags 17000 14000 11000 4000 Table:5.2 MKT Share (%) 34 28 22 8 Position FIRST SCOND THIRD FOURTH
From the above figure we can observe that in this zone (For zone-2) Lafarge is the leader with acquiring 34% of the total average sales of cement followed by Ambuja, with a market share of 28%. And here UTCL is in third position in market. In this zone there are some like kalianpur housing colony where a lot of scope for new construction is there. Real estate companies are competing with each other like anything, so this area can be taken in consideration for market penetration for UTCl. Here Lafarge leading for its High quality Low Price Brand name. Lafarge is the potential market leader so UTCL should plan accordingly to beat Lafarge in price as well as in quality. Here the Zone 1 market leader Ambuja is in second position.
ZONE-3 Zone-3 Court more to Burnpur Bus stand. Court more, Rabindranagar, Chitra more, Nimtala more, Burnpur. Figure:5.3
ACC
KONARK
BRAND EQUITY OF LEADING BRANDS IN ZONE-3 Sl. No. 1 2 3 4 Name AMBUJA LAFARGE UTCL KONARK SALES in Bags MKT Share (%) 36 28 20 8 Position
18000 FIRST 14000 SCOND 10000 THIRD 4000 FOURTH Table : 5.3 From the above figure we can observe that in this zone (For zone-3) Ambuja again is the leader with acquiring 36% of the total average sales of cement followed by Ambuja, with a market share of 28%. And here UTCL is in third position in market having 20% market share. In this zone there are some like kalyanpur housing colony where a lot of scope for new construction is there. Real estate companies are competing with each other like anything, so this area can be taken in consideration for market penetration for UTCL. Here Lafarge leading for its High quality Low Price Brand name. Lafarge is the potential market leader so UTCL should plan accordingly to beat Lafarge in price as well as in quality.
Figure : 5.4
35.66
Sales in %
14.53
UTCL
AMBUJA
LAFARGE
JAYPEE
KONARK
Brands
From the above figure and table we can understand that Ambuja is the ultimate leader in the market because of its quality and brand name, really leading in the market. While visiting cement outlets dealers said that Ambuja has the maximum number of loyal customers in the market Ambuja is having 39.8% share of the whole market in Asansol. In the second place, Lafarge is having almost 35.6% of share, which is a very big achievement for Lafarge because when we compare Ambuja with Lafarge, Lafarge is a new brand itself so we can say that Lafarge is giving a very tough competition to Ambuja, as the retailers said if UTCL can change some of its marketing strategies like mason meeting, dealers meeting it can be the leader as it having the fame of premium quality. In third position UTCL cement is present with 14.9% of market share. It has also some specific product fro concrete which is very popular. Like the ad says Engineers Choice this is a very touching statement to the customer. Also the advertising strategies made by UTCL is really wonderful. Konark is in the fourth position.
18%
21% UTCL
5% 1%
22%
While answering this question 33% of respondents said Ambuja is the most preferred brand, 22% said Lafarge is the best brand, 21% for UTCL, 18% for Konark. So from this we can say that UTCL is still in a commanding position in the customers mind. The company should grab those customers by the retailers. All other brand have a negligible share. Q2. All the retailers are asked to tell the brand name which their customer preferred most. Figure: 5.6
23%
2% 4% 32% 23%
Q3. All the retailers are asked to tell the frequency of different brands marketing officers visit to their outlets/phone call follow up done? Figure: 5.7
25% 35%
2% 4% 12%
22%
Q4. All the retailers are asked to tell that which brand they think giving customized service? Figure: 5.8
12% 27%
1% 4%
23%
Q5. All the retailers are asked that which promotional medium they think is most effective? Figure: 5.9
OTHERS 1% WALL PAINTING 33% TV 37% TV HOARDING PAPER AD WALL PAINTING OTHERS PAPER AD HOARDING 12% 17%
Q6. - The retailers are asked that which factors attracts more while dealing with a particular brand. Figure: 5.10
70 60 50 40 30 20 10 0 C. DEAMAND HIGH MARGIN TO ADD VARIETY QUALITY OTHERS 10 5 1 26 Series1 58
Q7. This question asked to the respondents who are dealing with UTCL, that why are you dealing with UTCL. Figure: 5.11
WHY UTCL ?
NO COMMENTS 6%
C. DEMEND 68%
Out of 50 respondents 24 are dealing with UTCL. But out of 50 respondents 68% have said they are dealing with UTCL because of customers demand that shows, there is a very good customer demand for UTCL. 15% of respondents said due to high margin they are dealing with UTCL, it means UTCL should give more margin to the retailers. 11% off respondents said they are dealing with UTCL only to add variety. 6% did not give any comments. Q8. This question asked to the respondents who are not dealing with UTCL that why you are not dealing with UTCL Figure: 5.12
WHY NOT UTCL ?
NO DEMEND 42%
NO THOUGHT 9%
Q9. When the respondents are asked to give their views on the overall brand image of UTCL they had given their responses as shown below. Figure: 5.13
OVERALL BRAND IMAGE OF UTCL
EXCELLENT 14%
Q10. - When the respondents are asked to give their views on the who influence a customer to buy a particular brand of cement. The responses they had given are shown below . Figure: 5.14
BEST INFLUENCER
70% 60% 50% 40% 30% 20% 10% 0% DEALER ENGINEER MASSON MEDIA 15% 13% 13% 59%
Q11- When the respondents are asked to give their views on what are their expectation from the company or what service the company should provide, the responses they had given are shown below. Figure: 5.15
EXPECTED SERVICES FROM MANUFACTURER 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%
18.50% 16%
10%
18.5% of the respondents are saying they want stock at time. So company should give the supply according to the demand otherwise they will lose the market share. Some of the retailors complaining about the fact that UTCLs Durgapur cement factory is not giving the supply of cement due to its breakdown in factory. They are suffering a lot for it. Also they want high credit holding period so that they can do more business, 14% saying they should give more discount so that the margin will increase, they should maintain quality. 10% saying they should give technical knowledge as well as special offer. And 16% of the people avoided its question very efficiently by they dont want anything from company.
Q12. When the respondents are asked to give their views on what customers want. The responses they had given are shown below. Figure: 5.16
WHAT CUSTOMERS WANT
60% 50% 40% 30% 20% 10% 36% 49%
G A T N C R E P
5% NO COMMENTS
L.QUALITYL.PRICE
Q13 When the respondents are asked to give their suggestion for improvement of marketing of UTCL. The responses they had given are shown below. Figure : 5.17
SUGGESTIONS 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%
M EE
17.5%
PERCENTAGE
12%
4%
5%
5%
VT G
TS
EE T
LE R
TI N
TI N
TE R
M EN
IC
ET AI
CE N
LE R
M EE
RS
O M
M AS SO N
M O R
TO
BL IC
EA
EL P
ED U
CT RA C
IT H
CH
O N
TO U
KE EP
ED U
SE C
PU
UR
IT Y
M O N
EE
AD
PR
EY
The customers are asked to give suggestions, various types of suggestions given by the respondents for the improvement marketing of UTCL. From the above figure we can understand that 17.5% have given suggestion that company should go for regular mason meeting because masons are the best influencer. 12.5% respondents think that UTCL should do more advertising so that the company can become a ladder in the market. 12% of respondents think that company should arrange regular dealer meetings and reduce the security money deposited by the dealers so that the number of outlets in the market can increase which will lead UTCL to the position of market leader. 10% of the respondents said to reduce price so that it can beat in price the brand like Lafarge and can get some part of the market share of Lafarge and other Andhra brands. 6% of respondents said to arrange public meeting and tell the features about the cement and the core competency of the company. So that the public can become aware of the product and that will help UTCL to cover the market. 5% of the respondents said that UTCL should start help centers like ACC so that public can get help while constructing their houses 5% of respondents said UTCL to keep touch with the retailers regularly so that the both party can make a strategy and can push the product to the market. $5 of the retailers said to arrange contractors and builders meeting so that it can spread in nontrade sector. 16% of the respondents did not say anything for the improvements of UTCL however they avoided the question and said they dont know anything about the company.
POOR 10%
EXCELLENT 20%
MANAGABLE 30%
GOOD 40%
LAFARGE 25%
AMBUJA 48%
LAFARGE 23%
UTCL 22%
Figure: 5.21
KONARK 9%
UTCL 27%
LAFARGE 45%
AMBUJA 19%
KONARK
Chapter VI CONCLUSION
When a new brand appears in the market, the consumer gets acquainted with it and starts collecting information about it. On the basis of this information the consumer creates an opinion of the brand and establishes a brand image. For a stable market position of a brand, consumer awareness of the new brand on the market is not sufficient. The consumer must prefer a brand and have a positive assessment of it as well as considering it in its purchasing decisions. By watching the positioning of different brand we can judge the Brand equity of different brands. All trade marks on the market within trade groups could be classified according to the consumers (un)-awareness and assessment as shown in the picture below:
If a brand is familiar to the consumer it does not mean that it is also a possible alternative for the consumer's choices. To some (recognized) brands the consumer may have a negative reaction and therefore have no intention of using them. The consumer is also familiar with neutral brands, which are unimportant to him, or about which he does not have the sufficient information to consider purchasing them.
RECOMMENDATIONS
The customers are the real king in todays competitive market. Therefore for every company should try in such a way that not a single customer can complain against your product as well as you should be the leader in the market. The company should consider every customers complain and suggestions and should try to rectify if it is possible. But ultimately every company should win customers heart which can help the company to become the market leader. 1. UltraTech is positioned as the premium category in the pricing strategy. The company should set the price according to the value delivered to the customers. What I got from this project is that the price is slightly higher than the perceived value, that is the reason why company is loosing potential customers. We can say the customers of Lafarge because its price structure is lower than UTCL as well as Ambuja but the value delivered by Lafarge & Ambuja is almost same with others. So a price of Rs. 5 can make a lot of difference because the customers know that UTCL is famous for its quality if the same quality they are getting in the price of Lafarge they will must go UTCL instead of others. 2. 3. 4. Some of the retailers complained that the PPC of UTCL is blackish in color, which new customers do not like, so if possible company should look after this factor. Credit period should increase to give a chance to the stockiest to maintain high stock, which will make the difference as said by the respondents. Respondents said that UTCL should touch each and every retailers once in two months because by doing this the network of manufacture, dealer and sub-dealer will grow which will help UTCL in future. 5. The security money should be decreased for the rural area retailers as compared to the urban area, because they can not able to achieve the sales target and deposit the security money. 6. 7. 8. Sales promotion and awareness should be done in all the Zones zone-1, zone-2 & zone-3 A booklet containing technical information about the specialty of the variant of the cement should be given to the retailers so that they can convince customers. As we have seen the Masson are the best influence of a customer to purchase particular brand so regular Masson meeting should be organized so that they can promote the product. 9. As some of the retailers complained that they have not got the boards and displays, so company should look after this matter.
10.
Company should arrange contractors meeting to spread the business in non-trade sectors. Some of the contractors said that after finishing the project they just forgot us. They will be extremely happy if company give some kind of get together with the company officials. They wish to work with the Project cement.
11. 12.
Company should go for road shows and trade fairs so that the public can be aware of the core competency of the product. As far as the prospective retailers are concern there are a lot of possibilities in that market. But most of the respondents want financial assistance, if company will issue the cement for a longer credit period and in the return company should make them exclusive UTCL shops then it will become one of the revolutionary step towards the untapped market.
13.
The Marble and ceramics shops have space to store cement so they can be the most appropriate prospective retailer of cement because others have less storage place in their shops, so marbles shops should be targeted.
14. 15.
The company should start societal marketing by taking awareness projects like plantation, passenger shed at the bus stop or drinking water supply. The company should do more outdoor advertising like putting more hoardings in the crowded area, neon light boards.