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Market competition in cement industry and brand Equity Birla Samrat My objective in this Project is to determine the market potential of the Birla cements in Allahabad region, after determining the satisfaction level of customer.

Industry Profile

Cement industry is one of the important industries to country development in the light of the main important basis for construction industry and also the important indicator showing domestic economic growth. In the past, the domestic demand of cement used to be up to 40 million tons. But, the severely negative effects from economic crisis in 1997 have caused real estate and construction industry subdued; the domestic demand of cement has shrunk and been in oversupply atmosphere. Until 20012003, the government has launched many economic actuating policies. This has made real estate and construction industry recovered and the demand of cement has been increasing gradually from 21 million tons in 2001 to 25 million tons and 26.82 million tons in 2002 and 2003 respectively; and the price level is higher in line with increased production cost. Cement Industry originated in India when the first plant commenced production in 1914 at Porbandar, Gujarat. The industry has since been growing at a steady pace, but in the initial stage, particularly during the period before Independence, the growth had been very slow. Since indigenous production was not sufficient to meet the entire domestic demand, the Government had to control its price and distribution statutorily. Large quantities of cement had to be imported for meeting the deficit. The industry was partially decontrolled
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in 1982 and this gave impetus to its pace of growth. Installed capacity increased to more than double from 27 million tones in 1980-81 to 62 million tones in 1989-90. The cement industry responded positively to liberalization policy and the Government decontrolled the industry fully on 1st March 1989. From 1991 onwards cement industry got the status of a priority industry in schedule III of the industry policy statement, which made it eligible for automatic approval for foreign investment up to 51% and also for technical collaboration on normal terms of payment of royalty. After the globalization and liberalization of Indian economy, the cement industry has been growing rapidly at an average rate of 9 per cent. The country is now the second largest producer of cement in the world next only to China with a total capacity of 188.97 million tones. Additionally, in the last two decades, the industry has undergone rapid technological up gradation and growth, and now, some of the cement plants in India are comparable to the worlds best operating plants in all respects. Till a few years ago India was importing cement from other countries, as the production could not meet the demand for the whole country. Now the tables have turned as India has started exporting large quantities of cement and clinker to Bangladesh, Nepal, Sri Lanka, Maldives, Mauritius, Africa, Seychelles, Burma, UAE, and Singapore etc. India is today the second largest producer of cement in world with an installed capacity of close to 188.97 million tones per year. 95 % is consumed domestically and only 5% is exported. Demand is growing at more than 10 % per annum. More than 90 % of production comes from large cement plants. There are a total of 130 large and more than 350 small cement manufacturing units in the country. More than 80% of the cement-manufacturing units use modern environment friendly dry process. Today total number of cement companies in Indian market are 47,having number of cement plants139, the installed capacity of large plants is 188.97 million tones and cement production during 2007-2008 was 168.31 million tones

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The forms of cement produced: Ordinary Portland Cement ( OPC ) Portland Pozzolana Cement ( PPC ) Portland Slag Cement ( PSC )

Major players in Indian cement sector: ACC Lafarge Gujarat Ambuja Cement Ultratech Cement India Cements Century Cements Jaypee Group Madras Cements Birla Corporation Limited . Prism
. Maihar

Cement Industry - INDIA Overview 1. Indian cement industry dates back to 1914 - first unit was set-up at Porbandar with a capacity of 1000 tones 2. Currently India is ranked second in the world with an installed capacity of 188.97 million tones. 3. Current per capita consumption - 85 kgs. as against world standard of 256 kgs 4. 55 - 60% of the cost of production are government controlled 5. Continuous Growth approximately 1.3 times of the countrys GDP. 6. Construction is the biggest industry after agriculture in India. It is a industry worth Rs.300 Thousand Crores.
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7. During 2007-2008 cement demand grew 8%,with a firmly country wide rise in prices.

Transportation: - Transportation costs high - freight accounts for 17% of the

production cost

Brief profile of the major players of the cement industry

ACC cements

CEO- Mr N. S. Sekhsaria ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 14 modern cement factories, more than 30 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000 persons and a countrywide distribution network of over 9,000 dealers. ACC has also extended its services overseas to the Middle East, Africa, and South America, where it has provided technical and managerial consultancy to a variety of consumers, and also helps in the operation and maintenance of cement plants abroad. The Group's principal activities are to manufacture ordinary portland cement, fly ash-and-slag-based cement. The Group operates in two segments: Cement and Ready Mix Concrete. The Group also manufactures special cements like low alkali, low heat, sulphate resisting and oil well cements; a wide variety of high alumina and alumina silicate refractories, refractory cements and castables, insulating products; concrete repair and grouting materials; high temperature ceramic products like tabular and bubble aluminas; manufacture and supply of ready mixed concrete; and provides consultancy services. The Group has operations only in India. On 01-Jan-2008, the Group acquired Ready Mix Concrete (RMX) business.

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Jaypee cements

CEO- Jaiprakash Gaur Jaiprakash Associates Limited (JAL) is engaged in the business of heavy civil engineering construction, expressways, cement and real estate and hospitality. JAL has two cement plants: Jaypee Rewa Plant and Jaypee Bela Plant, located in Madhya Pradesh. JALs subsidiaries include Jaypee Hotels Ltd., Jaiprakash Hydro-Power Limited, Jaiprakash Power Ventures Limited, Jaypee Karcham Hydro Corporation Limited, Jaypee Cement Limited, Gujarat Anjan Cement Limited, Jaypee Powergrid Limited, Madhya Pradesh Jaypee Minerals Ltd., Jaypee Infratech Limited, Bhilai jaypee Cement Limited, Himalayan Expressway Limited, Gujarat Jaypee Cement and infrastructure Limited, JPSK Sports Private Limited, Bokaro Jaypee Cement Limited and Jaypee Ganga Infrastructure Corporation Limited. On April 23, 2008, the Company incorporated a subsidiary, Jaipee Arunachal Power Limited.

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Prism cements

CEO- Mr. Rajan Raheja Prism Cement Limited is a professionally managed company having one of the largest single kiln, state of the art cement plant with a capacity of more than 2 million tonnes per annum, located at Satna (M.P). The Company's products are well established as one of the premium brand in the related markets. The Company is augmenting its capacities through a Brownfield expansion of 2 million tonne of clinker at Satna, M.P and thereafter setting up a Greenfield project at Kurnool, A.P.

Maihar cements

CEO- B.K Birla Maihar Cement is a division of Century Textiles and Industries Ltd, a flagship company of BK Birla Group. The company is well diversified having interest in cement, textiles, rayon, chemicals, pulp and paper.
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Maihar Cement is situated at Sarlanagar (Maihar) Dist. Satna in the State of Madhya Pradesh with an installed capacity of 3.80 Million TPA. Apart from this, company has two more cement plants namely Century Cement at Baikunth, Dist. Raipur in the State of Chhattisgarh with an installed capacity of 1.80 Million TPA and Manikgarh Cement at Gadchandur, Dist. Chandrapur, Maharashtra with an installed capacity of 1.50 Million TPA. The combined Capacity of all cement plants taken altogether is 7.80 Million TPA. More emphasis is given for production of blended cement which constitutes about 95% of the total cement produced by the company. .

Porters five forces model for cement industry

Entry Barriers

1. Economies of scale 2. Capital requirement 3. Average gestation period of 2-3 years. 4. Access to distribution channels. 5. Threat of new entrant- Low. Bargaining power of suppliers - High 1. Large and few sellers 2. No Substitutes. 3. sellers product is important input for buyer.

Bargaining power of buyers Low/medium 1. No standard product. 2. No substitute

Intensity of competition medium 1. Equally balanced competitors

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2. Average industry growth 3. High fixed costs 4. Lack of switching cost 5. Capacity augmentation in large increments. 6. High exit barriers.

Substitutes none SWOT analysis of cement industry Strength

1. Second largest trade in the world in terms of capacity 2. Low cost of production

Weakness
1. Effect of global recession on real estate and infrastructure. 2. Demand-Supply gap due to overcapacity. 3. Increasing cost of production 4. High interest rates.

Opportunity
1. Strong growth of the economy in the long run. 2. Increase in infrastructure project. 3. Growing middle class family needs. 4. Technological changes. 5. Increase in government spending.

Threat
1. Imports from Pakistan hurting market in Northern India. 2. Overcapacity can hurt margins as well as prices Government regulation

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Company Profile

Late Shri M.P.Birla

Late Smt. Priyamvada Birla

The company was founded by Late Shri G.D.Birla and was incorporated on 25th August 1919, in the name and style of The Birla Jute Manufacturing Company Limited. A man of vision and enterprise, he set up the first Indian Owned Jute Mill near Kolkata which marked not only the birth of the company but also the beginning of the Birla Industrial Group in India. The company grew steadily under his guidance in the earlier years. Thereafter Shri M.P.Birla took over the reins of the company and he helped transform it from a jute mill to a leading multi-product, multi-location corporate with widespread activities. Today, the product range includes cement, jute goods, vinoleum floor covering, auto trims and steel castings. After the demise of Shri M.P.Birla in 1990, Smt.Priyamvada Birla took over as the Chairman of the company and under her Chairmanship; company crossed the
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Rs.1,000 cores plus turnover mark. After the demise of Smt.Priyamvada Birla on 3rd July 2004, Shri R.S.lodha took over as the chairman of the company and under his Chairmanship, company has attained new heights. The name of the company was changed to Birla Corporation Limited with effect from 27th October, 1988 to establish the size, image and conglomerate character of the company.

Management - Board Of Directors

Mr.Harsh.V.Lodha Chairman

Mr. Harsh V Lodha, eminent Chartered Accountant, is on the Boards of several reputed companies. He has served as Chairman of Corporate Laws & Governance Committee and Co-Chairman of Young Leaders Forum of FICCI besides being Member of its Executive Committee. He has also served as Member of the Accounting Standards Board of the Institute of Chartered Accountants of India and Member of the Working group on Corporate Governance, set up by the Department of Company Affairs, Government of India. He had been Vice-President of the Indian Chamber of Commerce, Kolkata, and Chairman of its Economic Affairs Committee, Banking and Finance and Direct Tax Committees.

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Mr.Pracheta Majudhar

Mr Pracheta Majumdar, Mechanical Engineer and Management Advisor, is former Managing Director of CEAT Tyres Limited. He has worked with Hindustan Lever Limited for 12 years and has extensive experience in the design and project management of chemicals, petrochemicals and fertilizer plants. Mr.Ananda Bordia Mr Anand Bordia, M.A., held several senior positions in the Central Government. He was First Secretary, Trade High Commission of India, in London. He served the Secretariat of the World Customs Organization, Brussels, Belgium. He was also a Member of the Indian Revenue Service and Member (Finance) of the National Highways Authority of India. He has been consultant to the Asian Development Bank. He has conducted several technical assistance programmes on tariffs and trade matter, border control and tax modernisation in Asia, Africa and South American countries for the Harvard Institute for International Development, UNCTAD, and the World Customs Organization.

Mr.B.B.Tandon Mr. B B Tandon, IAS, is former Election Commissioner of India and was member of the Delimitation Commission. He has served several Government offices in the capacity of Secretary and Additional Secretary in the Union Ministries of Personnel (under the direct charge of the Prime Minister), Mines, Company Affairs, Finance, Industry and Defence Production. Mr. Tandon headed the working group on comprehensive revision of the Companies Act, 1956, which

recommended several changes/amendments in the said Act.

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Mr.M K Ssharma
Mr M K Sharma is a corporate consultant and former ViceChairman of Hindustan Unilever Limited. He is on the Boards of ICICI Lombard General Insurance Co. Ltd. and Bata India Ltd., among others. He served as a member of the Corporate Law Committee formed by the Union Ministry of Company Affaires to redraft the Companies Act. He also served as a member of the Committee on Corporate Governance formed by the Government of India.

Mr.B R Nahar

Mr B R Nahar, Fellow Member of the Institute of Chartered Accountants of India, possesses rich professional experience of more than 33 years. He has served in diverse fields, at senior positions, in various large corporate houses. The prestigious Businessworld magazine has identified him as one of Indias Most Valueable CEOs in its issue dated 29 November 2010.

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Credit Rating of the Company

Credit Analysis and Research Limited ( CARE ) has assigned CARE AA rating for the company long and medium term facilities of more than one year tenure and PR 1 + ( PR one plus ) rating for short term bank facilities , aggregating Rs.500 crores. Further , the rating Committee of CARE has re-affirmed PR 1 + rating and CARE AA rating for short term debt and the proposed long term borrowing programme of the company.

Birla Corporation Limited is a multi- product conglomerate.

It plays significant roles in the Cement, Jute, PVC floor Covering, Auto Trim and Steel casting industrie .The concentric around the triangle represents this very multi-dimensional nature. The apex of the triangle is a visual representation of the force that drives the entire corporation the unifying force in search of excellence. The circle represents the inspiration to explore new frontiers of growth.

CEMENT DIVISION:17 Cement is the primary product of the company and accounts for around 90% of the turnover of the company. The company has seven cement plants at four locations, namely, Satna Cement Works ( SCW ) and Birla Vikas Cement ( BVC ) at Satna (Madhya Pradesh ), Chanderia Cement Works ( CCW ) and Birla Cement Works ( BCW) at Chanderia ( Rajasthan ), Durgapur Cement Works ( DCW ) and Durga Hitech Cement ( DHC ) at Durgapur ( West Bengal ) and Cement Grinding Unitat Raebareli (Uttar Pradesh). The present installed capacity of cement is 58.80 lac metric tones per annum. Location wise details are given hereunder:-

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Location of cement plants in India

Capacity level

StateCA Madhya Pradesh Rajasthan West Bengal Uttar Pradesh

Town Satna

Units Satna Cement Works / Birla Vikas Cement

Capacity Mill. Ts 1.73

Chanderia Birla Cement Works / Chanderia Cement 2.50 Works Durgapur Raebareli Durgapur Cement Works / Durga Hitech 1.60 Cement Raebareli Cement Works 0.63

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Plants of Birla Corporation Limited For Cement Production Satna Plants :

Total capacity: 1.73m. tones.

Chandra Plants:

Total capacity: 2.50m tonnes.

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Durgapur Plant

Durgapur Plant
Capacity: 1.6m tonnes A new cement plant is established in Durgapur, which is Durgapur High-tech cement. This plant has the capacity of 10, 00,000 tones of cement production. Thus total production capacity at Durgapur is 16, 00,000 tones per year.

Raebareli Plant :

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Capacity: 6, 30,000 tonne

JUTE DIVISION
The companys jute division has two jute units, one at Birlapur, Budge Budge and the other at Narkeldanga, Kolkata. The combined installed capacity of jute unit is 14,000 spindles in the fine side and 2,160 spindles in the coarse side. The company has a wide market for its products both in local and international market. Almost 45% of its products are exported to various European countries, USA , Japan and middle East. Value added product such Lino Hessian, carpet backing, specialty fabrics, matting, continues to be in high demand. For hydrocarbon free bags, the foreign market popularly refers the companys bags as Birla Safe Bags . The products are highly rated in the industry by way of quality and are classified as premium quality.

AUTO TRIM DIVISION

Auto Trim Division was established in the year 1995 . The production for the year was 139173 pcs.as compared to 233379 pcs .in the previous year. The unit are located at Birlapur ( West Bengal ), Gurgaon ( Haryana ), and Chakan near Pune ( Maharastra ). The division has also obtained One-Step Technology from Italy Utilizing energy efficient recyclable polypropylene wood material. The major customers are Maruti Udyog Ltd., Hindustan Motors and Mahindra & Mahindra Ltd.

VINOLEUM DIVISION
The Vinoleum division was established in the year 1989. The production for the year was 5.08 lac sq. mtrs..as compared to 5.26 lac sq. mtrs. in the previous year. The products are marked under the brand name Birla Vinoleum and PVC floor covering for institutional application is marked in the brand name of Super Corporate .

STEEL CASTING

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The company also has a facility for manufacture of steel castings at Satna with an installed capacity of 3,750 tones of iron and steel castings. The production for the year was 1235 tones as compared to 1301 tones in the previous year Installed Capacity and Production
Product Cement Jute Goods PVC Floor Covering Auto Trim Parts Iron & Steel Casting Installed Capacity 6.46 Mill. Tons. 38000 M T 48.60 lakh sq. mtrs 7.80 lakh Pcs 3,750 tons Production (2010-2011) 5.69 Mill. Tons. 27,300 MT 1.09 lakh sq. mtrs. 0.64 lakh Pcs 1,078 tons

Subsidiary Company
Birla Jute Supply Company Limited Talavadi Cements Limited Lok Cements Limited Budge Floor Covering Limited (Earlier DLW Limited)

Relevance of topic to the organization To know the competitor strategy for future To make the better market policy for the company To identify the competitors of the company. It will show the market share of the company To know about the market potential and the market competition of the company

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Brand image plays important role in pricing policy.BCL is continuously trying to reduce the cost without affecting the quality of product

Nature of study
Determine the market competitor brands in Allahabad region And the Brand equity of Birla Samrat Determine the market potential of the Birla Samrat in Allahabad region Determine the Dealer & Retailer of Birla Cement Samrat and create a profile of typical/expected target customer. Defining the target customer is an essential task to review the key steps that is target market like housing, infrastructure, commercial construction, industry segments. Determine the geographic area of cement shops, cost of transportation, and the geographic market is defined by purchasers views of the substitutability or interchangeability of products made or sold at various locations. Determine the competitor of Birla Cement Samrat. Jaypee and Prism Cement are nearest competitor of Birla Cement Samrat. Determine the market size in Allahabad region and total number of Dealer & Retailer in that market, we calculates the number of potential customers for the business Determine the market share of Birla Cement Samrat. It is based on Turnover, also called Revenue, or Sales. First calculate expected turnover e.g. for the coming year

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CHAPTER 2 Objective

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Objectives
To Find out pricing policy of Birla Samrat To find out the perception of dealer/retailer with quality of Birla samrat cement. To Find out how many dealers and retailers are satisfied with the promotional support of Birla Samrat To identify whether dealer/retailer satisfied with the delivery system of Birla Samrat Cement? Find out the Potential place of Birla Cement

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CHAPTER 3
Research Methodology

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RESEARCH METHODOLOGY The research methodology is the way systematically solve the systematically solve the research problems. The main objective of the product was to know the market potential of Birla Cement Samrat. For this, right at the beginning the research plan was prepared. This includes all the detail of how to go about research work of Birla Cement.

RESEARCH PLAN Definition of research problem the research problem can be defined as follows1. What are the cement being used by various customer in the region of Allahabad and what are their expectation from the cement.2. What the market trend is of cement and brand awareness of Birla Cement.

DATA COLLECTION The descriptive nature of research necessitates collection of primary data from retailers through market survey was conducted through structured questionnaire the question was asked in prearranged manner. The market research was conducted over a period of 45 days. Data was tabulated, analyzed and suggestion and recommendation were given.

SAMPLE SIZE 50 samples taken from Allahabad region

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CHAPTER 4
Data Analysis

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Data Analysis

Objective 1:- To Find out pricing policy of Birla Samrat

35 30 25 20 15

33 29 28 2222 2122 14 10 7 0 0 7 1 Jaypee 8 0 Acc 13 6 7 0 Maihar 6 0 1 0 7 3 23 21 29 21 19

20

10 5 0

Birla Samrat

Prism

Mycem Ambuja Any other Highest

Lower Range

Middle Range

Higher Range

From the above graph, 10 dealers/retailers are saying price of Birla Samrat is lower range and 36 dealer/ retailers are saying middle range, 6 dealer and retailer are saying price of Birla Samrat is higher range. Birla cement price are slightly down with other competitive brands like Prism and Jaypee.

Which companies are you dealing

Birla samrat Prism Jaypee Acc Maiher Mycem Ambuja Other 4% 2% 0% 2% 12%

20%

23% 37%

From above graph Birla Samrat capture 20 % market share, Prism Cement capture 37% markets share, Jaypee cement capture 23% market share, Maihar cement capture 12% market
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share, ACC cement capture 2% market share, Mycem cement capture 4% market share, Ambuja cement capture 2% market share, Other 0%. Hence we conclude that Jaypee and Prism is the nearest competitor of Birla Samrat cement.

Conclusion: - It is conclude that Price of the Birla cement is lower than other competitor

Objective 2:- To find out the perception of dealer/retailer with quality of Birla samrat cement.

Quality of diffrent brands

35 30 25 20 15 10 5 0
31 33 30 29

25
14 10

24 14

21 15 14

23 16 5 17 13 7 3 Acc 1 0 0 Any other

11

12

Birla Samrat

Prism

Jaypee

Maihar Mycem Ambuja

Very good

Good

Neither good nor bad

Bad

Very bad

From the above graph, 10 dealer/retailers are saying that the quality of Birla Samrat is very good, 25 dealers/retailers are saying the quality of Birla Samrat is good and 22 dealers/retailers are saying the quality of Birla Samrat is neither good nor bad.

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Dealer/ Retailer
34

14

Dealer

Retailer

From the above graph in 50 samples it is clearer that there are 14 dealers and 34 retailers in Allahabad region.

x4a * x15 Crosstabulation Count x15 dealer retailer 4 6 8 17 3 0 15 11 1 35 Total 10 25 14 1 50

x4a

very good Good neither good nor bad Bad

Total

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Chi-Square Tests Asymp. Sig. Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 50 1.442a 1.734 1.341 df 3 3 1 (2-sided) .696 .629 .247

a. 4 cells (50.0%) have expected count less than 5. The minimum expected count is .30.

H0=(Null hypothesis) There is a no relation between quality of Birla Samrat cement and perception of dealer/retailer H1=(Hypothesis) There is a relation between quality of Birla Samrat cement and perception of dealer/retailer. Conclusion: - Chi-square value is
1.442
a

and its significant .696. hence we accept the null

hypothesis which implies there is a no relation between quality of Birla Samrat. The quality of Birla Samrat is good but not effective..

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Objective 3:-Find out how many dealers and retailers are satisfied with the promotional support of Birla Samrat

Promotional support
40 35 30 25 20 15 10 5 0 24 18 18 13 9 14 8 0 Birla Samrat Prism Jaypee high 2 Acc 0 Maihar 6 0 3 15

Mycem Ambuja Any other low very low

Very high

nither high nor low

Above graph shows that, 22 retailers are saying that promotional support is high for Birla Cement, 36 retailers and dealers are saying Prisms promotional support are high, 32 dealers and retailers are saying that Jaypees promotional support are high.

Dealer/ Retailer
34

14

Dealer

Retailer

From the above graph in 50 samples it is clearer that there are 14 dealers and 34 retailers in Allahabad region.

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x7a * x15 Cross tabulation Count x15 dealer retailer 1 8 6 7 7 20 1 15 0 35 Total 9 13 27 1 50

x7a

very high high neither high nor low low

Total

Conclusion: - Above table shows that 22 dealers and retailers are satisfied with the promotional support and 28 dealers and retailers are not satisfied with promotional support. Hence it is conclude that Promotional support given by Birla cement is not good. There should be improvement required.

Objective 4 : - To identify that whether dealer/retailer satisfied with the delivery system of Birla Samrat Cement?

Dilivery system of diffrent brands

35 30 25 20 15 6 12 Birla Samrat Prism Jaypee Good Acc 2 Maihar 0 0 23 13 22 16 12 13 8 0 12

15
10 5 0

Mycem Ambuja Any other Bad Very bad

Very good

Neither good nor bad

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Above graph shows that, 21 retailers are saying that delivery system is good for Birla Cement, 36 retailers and dealers are saying Prisms delivery system is good, 34 dealers and retailers are saying that Jaypees delivery system is good.

Dealer/ Retailer
34

14

Dealer

Retailer

From the above graph in 50 samples, there are 14 dealers and 34 retailers in Allahabad region.

x5a * x15 Cross tabulation Count x15 dealer x5a very good good neither good nor bad bad Total
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retailer 2 6 7 4 9 16

Total 6 15 23

0 15

6 35

6 50

Chi-Square Tests Asymp. Sig. Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 50 3.320a 4.991 1.766 df 3 3 1 (2-sided) .345 .172 .184

a. 5 cells (62.5%) have expected count less than 5. The minimum expected count is 1.80.

H0=(Null hypothesis) there is no relation between delivery system of Birla Cement and Perception of dealer/retailer. H1=(Hypothesis) there is a relation between delivery system of Birla Cement and perception of dealer/retailer. Conclusion:- Chi-square value is
3.320
a

and its significant .345 hence we accept the null

hypothesis which implies there is a no relation between delivery system of Birla. 58% dealers and retailers are not satisfied with the delivery system of Birla Cement

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Objective 5:- Find out the Potential place of Birla Cement

Shop location
30 25 20 15 10 5 0 Rural Urban Semi urban 3 24 21

From the above graph, Urban area having 21 dealers and retailers, Semi urben area having 24 dealer and retailers and Rural area having 3 dealers and retailers.

Which companies are you dealing

Birla samrat Prism Jaypee Acc Maiher Mycen Ambuja Other 4% 2% 0% 2% 12% 20%

23% 37%

From above graph Birla Samrat capture 20 % market share, Prism Cement capture 37% markets share, Jaypee cement capture 23% market share, Maihar cement capture 12% market share, ACC cement capture 2% market share, Mycem cement capture 4% market share, Ambuja cement capture 2% market share, Other 0%. Hence we conclude that Jaypee and Prism is the nearest competitor of Birla Samrat cement.

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CHAPTER 5
Finding Conclusions and Limitation

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Findings
We found that Birla Samrat captures the 20% market share Prism and Jaypee is the nearest competitor of the Birla Samrat. Promotional support given by Birla cement is not good and delivery system of the Birla Samrat is low there should be improvement required.

Conclusion
During the three months of my training I have studied the various strategies of Cement brand for generating awareness among the people. Promotional department plays a significant role in Cement brand building. It generates high revenue for company. It plays a crucial role in making awareness to the general public. Birla is quite behind with that but as I heard that they are coming up with new promotional campaign which can be quite beneficial. They offer variety of good quality product, which lure the customers for buying. It produce new brand time to time according to the latest trend. The amendment in the personnel of the company and any achievement of the company due to their valuable contribution leads to enhance the moral of the employees. The company conducted the survey to strength relationship with the customers. This will help the company in various ways like Firstly it will help the company to know where it lacks so that it can be rectified. Secondly; it make the customers make them feel that they are important for the company and lastly in assessment of the sales executives performance.

Limitation
Lack of cooperation from the retailer in grand to interview It was found in some case dealers showed inclination towards certain brands which gave them more margins when compressed to other. It was experienced during the survey that it was difficult to convince or make the retailers and dealers understanding the important of the project.

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CHAPTER 6
Recommendation and Suggestion

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Recommendation and Suggestion

In order to improve the productivity and profit, company has to make the proper promotional strategy. According to my study I found that the delivery system of Birla Smart Cement was very bad, so I recommend that company have to improve the supply chain system for the betterment for the company profit. In my survey I found that, in the compare of any other cement companys field officer are visited to the regular basis but in Birla Samrat Cement field officer was not visited in the regular basis, so here my recommendation is that company have to suggest to field officer they should visit the shop in the regular basis. For increase of selling the cement, company has to provide better lucrative skims to their dealers and retailers, as my study I found that any other company are provide the lots of skim to their sellers

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References
Marketing management Philips kilter 13th Edition new Delhi Pearson Education ICRA report on cement industry. CMA-Cement Marketers Association Report on Cement Industry. www.birlacorporation.com www.equitymaster.co http://www.scribd.com

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Appendices

Market Competition in Cement Industry and Brand Equity of Birla Cement Samrat

NameOf theorganization(optional) Name of the Proprietor/managing partner (optional) Address . No. of years in this business)... Pair of business, if any)...

1) SAMRAT

Which companies you are dealing with? PRISM JAYPEE ACC MAIHAR MYCEM AMBUJA OTHER

2) Please give your view regarding the following companys sale per month? VERY HIGH NEITHER HIGH LOW NOR LOW

BRAND NAME Samrat

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HIGH

VERY LOW

Prism Jaypee Acc Ambuja Maihar Mycem Other 3) Whats your perception about praising policy of different brands available in the market? BRAND NAME Samrat Prism Jaypee Acc Ambuja Maihar Mycem Other LOWER RANGE MIDDLE RANGE HIGHER RANGE HIGHEST

4) Whats your perception about quality of different brands available in the market? BRAND NAME Samrat Prism Jaypee Acc Ambuja Maihar Mycem Other 5) Whats your perception about delivery system of different brands available in the market? NEITHER GOOD NOR BAD BAD VERY GOOD GOOD NEITHER GOOD NOR BAD BAD VERY BAD

BRAND NAME Samrat Prism

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VERY GOOD

GOOD

VERY BAD

Jaypee Acc Ambuja Maihar Mycem Other 6) Brand wise sales at your counter BRAND NAME Samrat Prism Jaypee Acc Ambuja Maihar Mycem Other QUANTITY SOLD

7) What is your perception about the following companies according to their best promotional support?

BRAND NAME Samrat Prism Jaypee Acc Ambuja Maihar Mycem Other

VERY HIGH

HIGH

NEITHER HIGH LOW NOR LOW

VERY LOW

8) What kinds of promotional support are given to you by companies? BRAND NAME Samrat Prism Jaypee Acc Ambuja Maihar Mycem Other
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WALLPAINTING

BANNER HOARDINH

KIOSK

OTHER

9) What is frequency of field officer visit of given companies?

BRAND NAME Samrat Prism Jaypee Acc Ambuja Maihar Mycem Other

WEEKLY

FORTNIGHTLY MONTHLY QUATERLY YEARLY

10) What price (in Rs) at which are you selling other competitive brand? BRAND NAME Samrat Prism Jaypee Acc Ambuja Maihar Mycem Other WHOLE SALE PRICING/BAG RETAIL/PRICE BAG

11)

Do you satisfied on packaging of the following Companys product? NEITHER SATISFIED NOR DISSATISFIED HIGHLY DISSATISFIED

COMPANY HIGHLY SATISFIED NAME SATISFIED Samrat Prism Jaypee Acc Mycem 43 | P a g e

DISSATISFIED

Maihar Ambuja Others

12) How much discount (in Rs) do you get from the different companies? BRAND NAME Samrat Prism Jaypee Acc Ambuja Maihar Mycem Other CD QD DISCOUNT TARGET EXCLUSIVE DISCOUNT

13) The location of shop is at: PLACE Rural Urban Semi urban TICK

14) Are you investment in this business? INVESTMENT Below to 1 lakh 1 lakh to 2 lakh 2lakh to 3 lakh 3 lakh to above TICK

Q15. You are dealer or retailer OPTION Dealer Retailer TICK

Q16-Is cement business is your mainstream of income? OPTION Yes No TICK

Suggestion: .. 44 | P a g e

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