CHAPTER-1

COMPANYPROFILE

1
MARKETING

Marketing may also be defined as the performance of business activities

that direct the flow of goods from producer to customer or users. It may be
said that marketing include all those activities, which effect changes in the
ownership and possession of goods and services.
MARKETING FUNCTIONS

The marketing function may be classified into five groups these are

Determining marketing objectives (RESEARCH)

Developing marketing plans (PRODUCT)

Budgeting sales, expenses and profits (DISTRIBUTION)

Coordinating marketing activities (MANAGEMENT)

Developing marketing executives (SALES PROMOTION)

ROLE OF SALES PROMOTION

Sales promotion roles are derived from broader promotion roles and
objectives, which are derived from more basic marketing objectives
developed for the product. The specific roles set for sales promotion will
vary with the type of target market.
Sales promotion role for consumer includes encouraging for large
scale purchases, building trial among non-users, and attracting switchers
away fro competitors brands.
Sales promotion role for retailers, include inducing retailers to carry
new items and higher levels of inventory, encouraging off-season buying,
encouraging stocking of related items, offsetting competitive promotions,
building brand loyalty of retailers, and gaining entry into new retail outlets.

2
 For sales force, sales promotion role includes encouraging support of a
new product or model, encouraging more prospecting, and stimulating off-
season sales.
In addition to these specific roles, there are certain general roles of
sales promotion, which are stated as below:

To popularize goods and services of the producer among the potential

consumers and to motivate them towards lager purchase.

To motivate the existing customers for maximum purchases.

To activate the dealers towards larger purchases and maintain regular

stock of the sellers product.

To simplify the efforts of sales force and motivate them for getting
larger sales orders.
To make the advertising more effective and to facilitate coordination
between personal selling and advertisement.

To facilitate for maximum sales on specials occasions such as, new

year-eve, religious festivals and other such occasion.

To promote the larger sale in certain market or specified segments of

the market.

To face the competition effectively.

To find a suitable market for a new product to be introduce in the

market.

To prove the product better in quality and use, then of the similar
product of competitors.

To present a counter promotional programmed against the

competitors.
To educate the customers/ dealers and salesmen about to promotional
techniques.
To develop patronage habit among the customers.

3
 TECHNIQUES OR TOOLS OF SALES
PROMOTION

Sales promotion consists of a diverse collection of incentives tools; mostly

short term designed to stimulate quicker and greater purchases of a particular
product by dealer, retailer and customer. The main sales promotion tools are
given below:

FOR CONSUMERS
The consumers of user promotion techniques are the various devices directly
used to motivate and stimulate the consumers towards larger purchases. The
techniques may be executed by house-to-house visits of the customers or by
visiting their offices, or by distributing them to the shops of the middlemen.
Some important consumers / user promotion techniques are briefly stated
below:
Free Samples
Premiums
Contests
Free Trials
Free Training
Trade shows and Exhibitions
After Sales service
Sponsoring the games and Teams
Warranties

FOR DEALERS

4
 The important tools used for trade promotion and a brief description of
each tool is given below.

Advertising and Display ads

The producers assist their wholesalers and retailers in advertising
the products and shop displays, in many ways. Some of such ads are:

Local news paper advertising

Direct mail advertising

Out door advertising

Cooperative advertising

Advertising allowances

Promotional novelties

Store and window display materials

Displays allowances

Organizing of fashion shows

Sales assistance/ merchandising ads

For successful organization of sales functions the producers provide
the following kinds of assistance to the dealers

Building up sales plan

Sales meeting
Training to salesmen
Contests for traders salesman
Prize off or buying allowances
Brand deal allowance
Buy back guaranty
Special trade terms
Special services

Management Assistance

5
 It is very difficult to manage the wholesale and retail trades. Many
of the middlemen do not posses the knowledge of various
management techniques. With the result, they will not be in position to
utilize their ability and funds in a proper manner. The producers
provide the following types of managerial assistance to dealers to
mitigate these draw backs:

Providing the general information

Guidance in setting up internal organization
Advice towards policy matters
Sales management functions
Other assistance and incentive
Dealers contests
Dealer Premium
Credit facilities

Objectives of the study

To review the sales promotion activities regulating in the company.

To find out the advertising activities followed by SHREE Cement.

To compare the sales promotion activities of the company with the

competitor.

To suggest proposed sales promotion activities to cement industry in

general and in particular to the company. (Proposed model)

CHAPTER-2
PROJECT
PROFILE

7
 CONCEPT OF CEMENT

The word 'CEMENT' may be defined as a substance, which can join

two of more pieces of some other substance together to form a unit mass.
Cement is a fine power which when mixed with water and allowed to set and
harder can join different components together to give a strong structure
mechanically. Thus cement can be used as a founding material for bricks of
for founding solid particles of different sizes (rubble masonry) to form a
monolish.

It was about 150 years ago or so that Cement as we know and use it
today was invented of prepared. Mr. Joseph Aspadin of England first of all
patented the manufacture of an improved type of cementations material for
construction of building in the year 1824 and gave it the name "Protland
Cement". This was because of the fact that hardened stone from the cement;
Joseph aspadin invented resembled "Porland stone" found in England.
However some other persons also claimed that they had made similar cement
each of them adopted a different process of manufacturing "Portland
Cement" was adopted on modern lines, as we know it today.

The basic raw materials used in the manufacture of portland cement

are limestone and clay both of which occur in nature in abundance In
addition, the requirements of the product may need one or more of the
corrective materials like laterite, bauxite, iron ore etc. In addition additives
are sometimes also used to suit specific needs.
Portland Cements are made of grinding a mixture of limestone and
clay matter, burning the mixture at a very high temperature, cooling the
resultant product called Clinker and then grinds the same to an impalpable
powder. The essential constituents of Portland cements are lime, silica,
alumina and iron Oxide; some gypsum is also added during the final

8
grinding operation. Usually Portland cements are divided into the following
seven classes.

(i) Ordinary Portland cement

(ii) Moderate heat Portland cement
(iii) Rapid hardening cement
(iv) Low heat Portland cement
(v) Sulphate resisting cement
(vi) Oil well Cement; and
(vii) White cement
The method of manufacturing of all the types of portland cements is
practically the same; they vary only in chemical composition to impart the
desired properties of a particular type.

Cement Industry In India

A report from ICRA says "Cement Industry to grow at 8 percent in

medium terms. "It added, "With the economy looking up the cement industry
is likely to grow at eight percent in the next couple of months even as the
aggregate earnings might not improve drastically. The fundamental look
bright and the cement demand in the medium term are expected to grow at
around 7-8 percent. "ICRA has also predicted a supply 'surplus' situation for
the industry in the near to medium term.

The cement companies are expected to continue to face the problem of

rising input costs, as they do not have control on external cost elements such
as energy and freight. "The earnings of the cement Industry on an aggregate
may not improve significantly, there may be select players in the industry,
who may show improve earnings". ICRA said.

9
 This would include players who are constantly focusing on raising
operating efficiency, have high economics of scale and are not dependent on
few regional markets above have good distribution logistics and process a
good brand name, cement sector is expected to witness a consumption
growth in tune with the overall economic growth because of the strong co-
relation with GDP. ICRA pointed to on going road and housing projects to be
the main driver of future demand of cement.

The infrastructure sector grew by 5.9% in January 2004 against 4.9%

in the corresponding period last year. However, the growth was at the same
level as in December 2003. The index of the six infrastructure industries
(Crude petroleum, petro refining, coal, electricity, cement and steel) which
accounts for almost 27 percent of the industrial production index (IIP) went
up by 4.7% percent in the first ten months of 2003-04 against 5.8 percent in
April to January 2003-03.

Indian Cement Industry has posted a healthy growth rate of 7.81

during the year 2004-05. Cement production increased from 117.50 million
tones in the fiscal 2003-04 to 125.86 million tones in 2004-05 and the
installed capacity of the industry increased from 146.38 million tones in
March 2004 to 152.09 million tone in March 2005.

10
 IMPORTANCE OF CEMENT INDUSTRY
TO INDIAN ECONOMY

Cement plays a crucial role in the building operation. Almost every

phase of human activity involves construction work and the industrial
development and progress of a nation is directly related with the extent of its
construction activities, which are mainly base on the consumption of cement.
The importance of cement industry may be given as under:

Basic ingredient in construction works

Generation of employment

Contribution to national exchequer

Contribution to Indian Railways Revenues

Helpful in the development of other industries

Enhancement in the national income

Huge export potentialities and quick marketability

In a nutshell, the cement industry plays a pivotal role in the national

economy. The consumption of cement is the key indicator of the country's
prosperity, development and constructive activities. If proper steps were
taken for the sound development of the industry with. The latest technology
the industry is sure to serve the people and nation in a better way. It is a
matter of pleasure and satisfaction that the government is alive on the issue
and is keen to better the position of the industry with a realistic and balanced
development strategy so that the industry may be brought out of the
whirlpool of stagnation.

11
 PROSPECTS FOR DOMESTIC CONSUMPTION GROWTH

International experience suggests that the per capita consumption of

cement increased dramatically in the early stages of development of a nation
and as the nation develops it reaches a plateau. I have all the advanced
nations have reached a plateau. The per capital cement consumption of the
Less Developed countries (LDCs) are well below the world average the

future prospects for growth of the cement industry appear bright. Firstly, at
the existing level of per capita consumption, total cement consumption will
grow in line with per capita consumption; total cement consumption will
grow in line with per capita income. Secondly, as suggested by the
experience of other countries, the cement intensity of the economy is higher
levels of per capita income. Both these factors support the optimistic
assessment of prospects of domestic consumption growth.

The development economical noted that the cement industry

witnessed recessionary trends. During the last few years. The prime reasons
for such situation. Were substantial back, particulars in Govt. of take of
cement and industry crunch in the market.

But now Govt. bold and pragmatic liberalization policy coupled with
structural changes - has brought India on the threshold of a new are of
economic progress.

12
 SHREE CEMENT - AT A GLANCE
(An ISO9001: 2000 Company)

SHREE Cement Ltd. Belongs to B.K.Birla Group of Companies. It is

professionally managed cement manufacturing company enjoying the
confidence of consumer because of its superior quality product & excellent
customer service.
The plant of SHREE Cement Ltd. is situated at Morak in Kota district, MCL
was incorporated in 1978 and commercial production started in 1982. The
total capacity was 1200 M.T. /per day.
The company has added one more feather in its capacity in 1992 by
commissioning its state of new cement plant with German technology for
producing & 7 lac MT per annum at its existing plant at Morak under the
name of Neer Shree Cement.
Krupp plysys, Germany and their counter part Krupp industries limited have
joined hands with SHREE Cement Ltd. To produce Birla Uttam Premium 43
OPC & PPC.
SHREE cement has a total of 1070 employee in its role, it include 750
workers and 320 staff employees.

13
 PRODUCTS MIX

Trust Comes From Quality At Shree Cement Limited

BIS Shree Ultra

Shree Ultra Cement - 43 specification Cement - 43
Grade Grade
Fineness (m2 / kg) 225 354
Soundness - -
Le chatelier expansion (mm) Max . 10 0.99
Auto-clave expansion (%) Max. 0.8 0.078
Setting Time (Mins) - -
Initial Min. 30 127
Final Max. 600 185
Compressive Strength (MPa) - -
3 days Min 23 38.7

14
7 days Min.33 52.6
28 day Min. 43 63.4

Shree Ultra Cement 33 BIS 33-

Grade specification Grade
2
Fineness (m / kg) 225 312
Soundness - -
Le chatelier expansion (mm) Max. 10 0.99
Auto-clave expansion (%) Max.0.8 0.081
Setting Time (Mins) - -
Initial Min. 30 131
Final Max. 600 189
Compressive Strength (MPa) - -
3 days Min.16 36.1
7 days Min.22 47.0
28 days Min. 33 58.0

BIS specification PPC

Shree Ultra Red Oxide Cement
Fineness (m2 / kg) 300 384
Soundness
Le chatelier expansion (mm) Max. 10 0.98
Auto-clave expansion (%) Max. 0.8 0.072
Setting Time (Mins)
Initial Min. 30 132
Final Max.600 191
Compressive Strength (MPa)
3 days Min.16 35.6
7 days Min.22 46.4
28 days Min. 33 57.3

15
Shree Ultra Cement 53 BIS Shree Ultra
Grade specification Cement 53-
Grade
Fineness (m2 / kg) 225 379
Soundness
Le chatelier expansion Max . 10 0.98
(mm)
Auto-clave expansion (%) Max. 0.8 0.077
Setting Time (Mins)
Initial Min. 30 120
Final Max. 600 178
Compressive Strength
(MPa)
3 days Min.27 41.8
7 days Min.37 55.4
28 days Min. 53 66.5

Financial Results & Annual Reports

Energy Conservation Award 2005.

Best Quality Excellence Award for the year 2003-04.

Shree Cement bags Greentech Environment Award for

the year 2004-05.

Productivity Award to Shree Cement 2004

"TERI Corporate Award for Environmental Excellence

& Corporate Social Responsibility" 2003-04

National Award for Excellence in Energy Management

2004

Overall Quality of the Organization.

Good Corporate Citizenship.

16
 Provision for safe and healthy work place.

Exemplary Employment Practices.

Responsible environment protection and practices

Energy Conservation

Other Important Achievements

Excellent Energy Management Award for 2003

Confederation of Indian Industry (CII) award for

"Excellent Energy Management" to Shree Cement
Limited

OBJECTIVES OF SHREE CEMENT LTD.

To make continues effort to sustain and improve the quality and

productivity levels and attain consistent result.

To promote the culture for acquiring knowledge and skill to adapt to the
new technology development.

To encourage teamwork for finding solution to be problem of quality and

productivity. And their implementation leading to enhanced commitment.

Excellence in all spheres of management through census, consultation,

system perfection, delegation, decentralization and human resource
development for knowledge integration and skill development.

QUALITY POLICY

We pledge to produce and deliver

Quality clinker and cement
To the satisfaction of our customers
By following a quality management system.

17
SHREE cement is committed to quality, to ensure this: the entire
manufacturing process has been made automatic. Process runs 24 hour non-
stop. SHREE cement has own mines of 10sq km. For limestone.

The process has following latest equipment which are used to achieve this
goal:
1. Vibrating screen: commencing with 500 TPH crusher with latest
vibrating screen to ensure that only very clean limestone goes into
manufacturing process.

2. Stacker reclaimer: to perfectly homogenize the main raw material, i.e.

limestone.

3. X-ray analyzer: for quick and accurate analysis of all the raw material,
clinker and cement.

4. Computerized central control room: for stable and efficient operation.

5. Roller mills: latest roller mills for coal grinding and roller process of
clinker grinding to ensure uniform particle size of cement for greater
strength.

6. Electronic packaging: for consistent result and prompt delivery.

CORPORATE POLICY

To adopt the concept of total productivity management in all spheres of

excellence in the quality management for attaining perfection.

To drive the advantage from the synergies of the group companies.

18
 To incorporate within the group, a common business philosophy and
management practices.

To aim at various strategies for growing challenges and opportunities.

To promote friendship at all levels of individual of group companies

To develop knowledge by sharing and interacting with people within and

outside the world.

To decentralize decision and delegate authority freedom of value and

added activity, shouldering more responsibility to participate in decision
making process with autonomy at all level.

To produce quality cement and render services to entire satisfaction of

the valued customer and diversification in business.

Atlas, The Titan Collective strength of the Group

This symbol as a whole represents the collective strength of the group. The
astute and dynamic management, which binds the group together and gives it
leadership and direction, is personified in the figure of atlas. A pillar of
strength, atlas also stands for steadfastness, consistency and reliability.

The Sun Enlightenment and Growth

The head of the atlas also represents the sun. In this context, the sun stands
for a luminous and powerful presence that the group has over the industrial
arena on one hand, and resourcefulness in terms of finance, technological
skill, and intellectual leadership on the other.

Earth Segments? Diversified Activities:

Each latitude around the Titan represents the different industries or activities
that constitute the group. They individually draw and give strength and
support to the central figure of atlas.

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The Globe? Global Vision:
The Groups Global Vision and harmonious blend of all the elements, sum up
a well-conceptualized industrial conglomerate.

Strong foundation Sustained Growth Proven Leadership

BOARD OF DIRECTOR

20
 <>

Shri B.G. Bangur

Executive Chairman, is a B.Com (Hons.) from Calcutta University. Mr.

Bangur brings with him along experience in industry. He is also the director
of The Didwana Industrial Corporation Ltd., Marwar Textile Agency Ltd.,
NBI Industrial Finance Co. Ltd., Shree Capital Services Ltd., Ragini Finance
Ltd., Didu Investments Ltd., Kehmka Properties Pvt. Ltd., Western India
Commercial Co. Ltd. and Mansi Finance Ltd. He is actively associated with
various Philanthropic and Charitable Institutions and trusts.
Shri H.M. Bangur

Managing Director, is a chemical engineer from IIT, Mumbai. He brings to

the Board a technical insight which is the driving force of the technical
excellence achieved by the Company. Mr. Bangur is also a Director in India
Textile Agency Ltd., Mannakrishna Investments Ltd., The Venktesh Co. Ltd.,
Shree Capital Services Ltd., Marwar Textile Agency Ltd., Videocon Leasing
& Industrial Finance Ltd., The Kamla Co. Ltd., Digvijay Finlease Ltd. and
Khemka Properties Pvt. Ltd. He is the member of the Executive Committee

21
of FICCI and the immediate past president of the Bengal Chamber of
Commerce.

Shri R.L. Gaggar

Director, completed his B.A. (Hons) from Calcutta University and is a

renowned solicitor and advocate based in Kolkata. Mr. Gaggar is also on the
board of Hindustan National Glass & Indusrties Ltd., Somany Pilkingtons
Ltd., Sarda Plywood Industries Ltd., Financial & Management Services Ltd.,
Premier (Eastern) Inc. Pvt. Ltd., TIL Ltd., Peria Karamalai Tea & Produce
Co. Ltd., Paharpur Cooling Towers Ltd., International Combustion India
Ltd., Subhash Projects & Marketing Ltd., IFB Agro Industries Ltd., Machino
Plymers Ltd., Sumedha Fiscal Services Ltd., Stone (India) Ltd.
Shri O.P. Setia

Director, is an M.Com from Delhi University. Was previously posted as

Managing Director of State Bank of India and State Bank of Bikaner &
Jaipur. Mr. Setia has been appointed as nominee director on Board of
Rayalseema Paper Mills Co. Ltd. by BIFR.

Shri R.S. Agarwal

Director, is a Senior Fellow Chartered Accountant, Company Secretary and a

Law Graduate and driving force behind Emami Group. Presently he is on the
Board of Emami Limited, Emami Paper Mills Ltd., South City Project
(Kolkata) Limited, (formerly known as Damodar Valley Papers Ltd.),
Advance Medicare & Research Institute Ltd., Emami Group of Companies
Pvt. Ltd., Diwakar Viniyog Pvt. Ltd., Suntrack Commerce Pvt. Ltd., DPS
Technologies India Pvt. Ltd. and Rupa & Co. Ltd. He is also associated as a

22
director, with Merchants Chamber of Commerce and Associated Chamber of
Commerce & Industry of India.

Shri S.K. Somany

Director, is an industrialist. Holds a Bachelor of Science degree from

Calcutta University and is currently on the Board of SPL Ltd., S.R.
Continental Ltd.(formerly Special Refractories Ltd.), Soma Textile & Ind.
Ltd., Shree Hanuman Investments Pvt. Ltd., Pressed Steel Tank Co. of India
Ltd., Brindavan Commercial Ltd., Bestometa Industries Ltd., Chakrapani
Promotions Ltd., Charchika Impex Ltd., Gemini Constructions Ltd.,
Sarvottam Vanijya Ltd., Sarvopari Investments Pvt. Ltd., Dhandhapani Co.
Ltd., Teamwork Holdings Pvt. Ltd., Kechak Credit & Finvest Pvt. Ltd. and
Cosmos Ferrites Ltd.

Dr. Abid Hussain

Director, is an retired IAS Officer and former Ambassador of India to United

States. Dr Hussain is the chairman of India China Trade Centre (ICTC) and a
member of the Planning Commission and Secretary, Ministry of Industries,
Government of India. He is on the Board of Hyderabad Flextech Ltd.,
Nagarjuna Oil Corp. Ltd., GVK Industries Ltd., GVK Taj Hotels & Resorts
Ltd., Zodiac Clothing Co. Ltd., Wockhardt Ltd., TTL Ltd. and Havels India
Ltd. solicitor and advocate operating out of Kolkata. Shri Gaggar is also on
the Board of SPL Ltd., Sarda Plywood Industries Ltd., Premier (Eastern) Inc.
Pvt. Ltd., TIL Ltd., Peria Karamalai Tea & Produce Co. Ltd., Paharpur
Cooling Towers Ltd., International Combustion India Ltd., Subhash Projects
& Marketing Ltd., Machino Plastics Ltd., Sumedha Fiscal Services Ltd. and
Financial & Management.

23
Shri M.K. Singhi

Executive Director, is a fellow Chartered Accountant and a Science and Law

Graduate. Joined the Company as President in January, 1995 and has 25
years experience of working at senior positions including over 2 decades in
cement industry. He is a member of the Cement Sector Energy Task Force of
the Government of India, the President of Rajasthan Cement Manufacturers
Association and on the Board of Shree Cement Marketing Limited.

QUALITY STANDARD CHART

BIRLA UTTAM CEMENT - 43 GRADES

Birla
Physical Characteristics Uttam BIS Specification
Cement
Should not be less than 225
Sp Surface 325
M2/Kg.
A. By Le Chatelier
0.75 Should not exceed 10 mm
Soundness Method
Test B. By Autoclave
0.02 Should not exceed 0.8 %
Method
Should not be less than 30
Setting Time Initial Set 120
Min.
(Minutes)
Final Set 215 Not more than 600 Minutes
Compressive 3 days 34.8 Not less than 23 MPa
strength in 7 days 48.6 Not less than 33 MPa
MPa 28 days 68.0 Not less than 43 MPa

BIRLA UTTAM CEMENT - 53 GRADES

Birla
Physical Characteristics Uttam BIS Specification
Cement
Should not be less than
Sp. Surface 370
225 M2/Kg

24
 A. By Le Chatelier
0.75 Should not exceed 10 mm
Soundness Method
Test B. By Autoclave
0.012 Should not exceed 0.8 %
Method
Should not be less than 30
Initial Set 110
Setting Time Minutes
(Minutes) Not more than 600
Final Set 200
Minutes
Compressive 3 days 38.2 Not less than 27 MPa
strength in 7 days 54.8 Not less than 37 MPa
MPa 28 days 70.0 Not less than 53 MPa

BIRLA UTTAM CEMENT PPC

Birla
Physical Characteristics Uttam BIS Specification
Cement
Should not be less than
Sp Surface 380
300M2/Kg.
A. By Le Chatelier
0.75 Should not exceed 10 mm
Method
Soundness Test
B. By Autoclave
0.014 Should not exceed 0.8 %
Method
Should not be less than 30
Setting Time Initial Set 130
(Minutes)
Minutes
Final Set 230 Not more than 600 Minutes
3 days 32 Not less than 16 MPa
Compressive
strength in MPa
7 days 45 Not less than 22 MPa
28 days 64 Not less than 33 MPa

25
SALES PROMOTION ACTIVITIES IN SHREE CEMENT

(A) For customers

SHREE cement limited is performing following sales promotion activities

for customers
Gift Item Distribution
For consumer sales promotion company distributes following items
Calendars, Diaries, Pen, Slip pads, Key rings, Stepny covers, Danglers,
Telephone indexes, Shopping bags, Wall clocks etc. Gift items other than the
general are also distributed in mason meet / dealer meet / Architect meet like
leather bags, wrist watches, paintings, crockery set etc.
Mason Meet
Masons are the people who largely influence the buying decisions of
any house owners. To create the awareness among masons and also to give
them the knowledge of proper use of our cement, masons meetings are
conducted. These are of about two hours duration in which a person from
technical cell explains the use of product and also answers the queries raised.
The meeting is followed by lunch/Dinner.
Architects/Builders/Contractors meet
The company organizes Architect/ Contractors/Builders meet
separately because of the intellectual level difference with the mason. Such
meetings are of about an hours duration, wherein the discussions are created
on the technicalities, such meetings are also followed by lunch/Dinner and
gift distribution.

26
 (B) For Dealers & Retailers
SHREE cement limited is performing following sales promotion activities
for dealers & retailers
Dealers Meet
Dealers meet are organized from time to time to explain the company
marketing policies any changes, any amendments, any new policies. Such
meetings also serve the important purpose of getting the feed back from the
market and also to learn the competitive brand strategies. Such meetings are
of the duration of 3 hours followed by high tea/ Dinner.
Picnic/ excursion tours
Picnic/ excursion/ tours are organized with the aim of getting to know
the dealers and their families, to create a bond of friendship and to improve
the interpersonal relationship among the dealers as well as with the company.
These tours are held most at any hill station or sea side resort such tour are
mainly meant for fun.
Retailers Meet
Retailers are the important link who has direct contacts with the
customers. That is why the company also organizes meeting with the
retailers in orders to get the feedback from the market and to review
competitors policies. Such meeting serves an important function of creating
a sense of belongingness among the retailers.

Cash Discount
Cash discounts are given in order to facilities fast cash recovery. For
dealers & Retailers the company has a cash discount scheme as given below.
The dealers or retailers may transfer this discount to the customer. This is a
general discount scheme followed by all cement companies
Rs. 4/- per bag on advance payment
Rs. 3/- per bag if payment received within 3 days after delivery

27
Rs. 2/- per bag if payment received within 7 days after delivery
Rs. 1/- per bag if payment received within 15 days after delivery
Quantity Discount
To encourage the dealers/ Retailers to sell more company has a
scheme of quantity discount as given
Rs. 20/- per MT upto 50 MT
Rs. 40/- per MT from51 MT upto 120 MT
Rs. 50/- per MT from 120 MT upto 50 MT
Rs. 60/- per MT for beyond 250 MT

Distribution Channel
Distributions channels are set of inter dependent organs involved in
the process of making a product for use or consumption. So deciding
marketing channel is a very critical decision because it affects all marketing
decision. Cement is regarded as one of the basic material for the growth of
any country, so it is very essential that the distribution channel should be
such that it makes the product available to all potential customers.
Since inception of Cement Industry in India the distribution of Cement
was fully control by Government, but after adoption of the decontrol
distribution channel of SHREE Cement Limited :
The Company in Rajasthan has four Sales Promoters, which covers all
risks regarding Sales. The stockiest of the company may appoint retailer for
retailing of cement. The company also has sales officer in market for the
purpose of attending tender and liasioning with government department.
Sales promoters of SHREE Cement are arranging the distribution of cement
through dealer/ stockiest.

28
Advertising

Advertising is one of the major tool companys uses to advertise their

products to pursue their potential customers to favor their product.
There are numbers of ways like Newspaper, wall painting, hoardings,
panels, pamphlets etc. generally used by the marketing managers to objective
and established their brand in the eyes of customers.
SHREE Cement Limited is also doing advertising through different
media. The different means by which SHREE Cement Limited is
advertisings is as given below:

Hoardings

Wall paintings

Pamphlets

Brochures

News Paper Advertising

TV Advertising

Tractor trolley & Truck Painting

Placard displaying use of Birla Uttam Cement

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 SWOT ANALYSIS

The cement industry is core sector industry therefore it has continuous

growth. In Indian cement industry the presence of big industrial houses &
the entry of global companies have increased the competition in the
cement market. The competition in the industry is heading in to slightly
surplus state. Therefore to survive in the market the company has to
control its cost of production.
The SWOT Analysis of the SHREE Cement Limited may be given as
follows:

Strength:
It is the best quality manufacture of cement.
One of the best technologies in Rajasthan.
Neer Shrees latest technology is giving the best output.
It is attributed by healthy work environment and sound management
system.
Goodwill of B.K.Birla Group is also strength of MCL.
Good and healthy work environment.
Superior strength of its product.
Optimum setting time of cement.
Ideal water cement ratio.
Electronic packaging system for prompt delivery.
It is self-reliant for raw material.

Sales depots and offices for prompt delivery and immediate attention for
customer grievances

30
Weakness:
Worsening power situation facing companies to invest huge amount
in captive power plant.
Inadequacy of finance for modernization.
Increasing freight rate.
Infrastructure bottlenecks like transportation for raw material, fuel
supply.
Continuous losses may affect its goodwill and market value of its
share.
Opportunity:
Its superior quality attracts brand loyal and quality conscious
customers
Expected infrastructure growth will add to the current demand
By establishing own power plant, SHREE Cement can minimize the
cost of production.
SHREE Cement can get profit by controlling its cost of production
By increase its investments in promotional activities the company
can enhance its market share

Threat:
Large companys are coming up this may put pressure on realization
in Central and North India.
Cement Industry is facing price war, it may compel SHREE Cement
to reduce its price
There is depressed market condition cause by demand recession in
cement, resulting in higher competition
If excess supply condition persists it may lead to shutdown of
various cement plants

31
CHAPTER-3
RESEARCH
METHODOLOGY

32
Research Aim

The aim of this study was to identify the sales promotion activities for
SHREE Cement and to understand the expectation and opinion of retailers
and dealers regarding sales of Birla Uttam Cement in Kota District.

Objective

Primary Objective:-
To review the sales promotion activities regulating in the company

Secondary Objective:-
To find out the advertising activities followed by SHREE Cement.

To compare the sales promotion activities of the company with the

competitor.

To suggest proposed sales promotion activities to cement industry in

general and in particular to the company. (Proposed model)

Hypothesis
The hypothesis on which the research was conducted was as follows:

The need of sales promotion increase in a particular season.(Rainy

season, Festival season)
To maintain and to increment of business, the sales promotion
activities are required.

Scope of Study
This study will yield a great benefit to the organization as a lot of scope is
there, particularly in distributor and retailer segment. This will help to
increase the sale of organization.

33
Data Source

Primary Data:-
It is those data, which are collected fresh and first time, and they happen to
be original in characteristics. This may be done by either surveying and
asking person to survey or going in the field and collecting data. This type of
data is more confidential and chance or error is minimized.
In this project surveying the retailers is the source of collecting primary
data. The normal procedure is to conduct personal interview and telephonic
interview for primary data.
A primary survey was conducted at Kota city and survey was carried out at
various levels and the target group was retailer and distributor
Secondary Data:-
It those data which are already collected by someone else and which have
already been past through the statistical process, secondary data provide the
starting point research and offer the advantage of low cost and ready
availability.

Previous records of company.

From various commercial magazines, books, articles, internet.

Research Approach
Survey with structured schedule at different areas of Kota city.
Telecalling.
Cold calling in different areas of Kota city
Random visits to retailers.

34
Research Instrument
A structured scheduled was provided by SHREE CEMENT LTD. MORAK.
and apart from this some other relevant information was also collected from
the respondents.
Sample Plan
Population Definition:-
Element:- Distributors and retailers

Sample Frame:- Kota city

Sampling Units:- Distributor and Retailers of Kota City

Sr. No Area No. of

Retailers
1 Mahavir Nagar 25
2 Gumanpura Nagar 7
3 Rampura Market 10
4 Vigyan Nagar 14
5 RLY STN. Area 14
6 Kunhari 11
7 Talwandi & 13
Dadabari
8 Kethunipole 5
9 Kansua & D.C.M. 6

Sampling Method: Simple Random Sampling

Sample Size: 105

Data Collection Method

Personal Interviews
Telephonic Interviews

Research Design:- Exploratory

35
CHAPTER-4
DATA COLLECTION
AND
INTERPRETATION

36
 If Yes, Are you deals another brand of cement except Birla
Question Uttam?

Percentage
Response No. of Dealers/Retailers

Only Birla Uttam 25 23.80

Others Brand 80 76.20
Total 105 100

No. of Dealers/Retailers

Only Birla Uttam

Others Brand
Total

The above chart shows that 88.57% retailers are dealing in another Brand of
cement except Birla Uttam such as (ACC, AMBUJA, and BIRLA PLUS etc.)
and only 11.43% of retailers are using only Birla Uttam Brand. This means
company should increase the sales promotion activities for to attract the
retailers who will deals in only Birla Uttam Cement.

37
 What is your sale per month?
Question

No. of Percentage
Response
Dealers/Retailers
0-250 Bags 37 35.23
250-500 Bags 30 28.57
500-1000 Bags 20 19.05
Above 1000 Bags 18 17.15
Total 105 100

The above chart shows that the 37 (105) dealers are selling in small quantity
say (0-250 Bags) and 18(105) which is 17.15% are selling large quantity say
(Above 1000 Bags) we can infer that 17.15% figure are related to Builders
and Contractors.

38
 What is the time of minimum sale (consumption) in a
Question
season?

Response No. of Dealers/Retailers Percentage

Rainy 70 66.66
No effect 15 14.30
No answer 20 19.04
Total 105 100

Demand of cement may vary in different season. To boost the sale in that
particular time. We must know what is that time when sale (consumption) is
minimum and out of 105 respondents, 37 (66.66%) have opinion that their
sale effect in a rainy season, little no of respondents 15 (14.28%) say that
their sales doesnt effect in rainy season.

39
 Are you satisfied with present sales promotion scheme of
the company? (a) Retailer are directly connected with
Question SHREE Cement (b) Cash Discount (c) Mason Meet

No. of Percentage
Response
Dealers/Retailers
Yes 40 38.09
No 65 61.91
Total 105 100

250

200
Percentage
150

100 No. of
Dealers/Retailers
50

0
Yes No Total

The above chart shows that the 40 (105) respondents are satisfied with
present sales promotion scheme of the SHREE Cement but sound majority
of 65(105) respondents are unsatisfied with present scheme of sales
promotion such as dealers meet, cash discount etc. and they want other tool
of sales promotion.

40
 What recommendations do you suggest to improve the
Question sales?

No. of Percentage
Response
Dealers/Retailers
Improve the price 41.90
44
structure
Improve the product 28.58
30
quality
Improve the 21.90
23
advertisement policy
If others then _____ 08 7.62
Total 105 100

The above chart shows that the 41% respondents want to improve the price
structure, 29% respondents want to improve the product quality 22%
respondents want to improve the advertising policy and rest 8% respondents
want to improve the sales in different manner. We can infer that if company
wants to improve sales, they have timely considered sales promotion activity.

41
 Question
Are you satisfied with present scheme of advertising?
Percentage
Response No. of Dealers/Retailers

Yes 55 52.38
No 50 47.62
Total 105 100

The above chart shows that the 55 (105) which is 52.38% respondents are
satisfied with the present advertising schemes of SHREE cement and
respondents 50(105) which is 47.62% are unsatisfied with presents
advertising schemes. If company wants stable performance of the present
condition he should use the same policy of advertising.

42
 Question Are you satisfied with the present credit policy of the company?

Response No. of Dealers/Retailers Percentage

Yes 21 20
No 84 80
Total 105 100

The above chart shows that the 21 (105) respondents are satisfied with the
present credit policy of SHREE cement and vast Majority respondents
84(105) are unsatisfied with presents credit policy of company. So company
should more concentrate on the credit policy as per the dealers and retailers
points of views.

43
 Question Are you satisfied with profit margin, you earn on selling the
companys product?
Response No. of Dealers/Retailers Percentage
Yes 42 40
No 63 60
Total 105 100

The
above
chart
shows
that the
42
(105) which are 40% respondents are satisfied with the profit margin on the
selling of product of SHREE cement and respondents 63(105) which are
60% are unsatisfied with the profit margin on the selling of product of
SHREE cement. We can infer that in the competitive market, good no. of
respondents is in the favor of the present profit margin of the company.

44
 Are you getting the delivery of product on time and in
Question
required quantity?

Response No. of Dealers/Retailers Percentage

Yes 68 64.76
No 37 35.24
Total 105 100

The above chart shows that the 68(105) which is 64.76% respondents are
satisfied with the delivery of product on time and in required quantity of the
company and 37(105) respondents which is 35.24% are unsatisfied with the
delivery of product on time and in required quantity. We can infer that in the
competitive market, company should concentrate on its distribution channel.
So that dealers and retailers can get delivery of product on time and in
required quantity.

45
 Question Are you satisfied with the present after sales service of the
company?
Response No. of Dealers/Retailers Percentage
Yes 74 70
No 31 30
Total 105 100

The above chart shows that the 74(105) which is 70% respondents are
satisfied with the present after sales service of the company and 31(105)
respondents which is 30% are unsatisfied with the present after sales service
of the company. We can infer that company is providing good after sales
services and vast majority of respondent are satisfied. So there is no need to
change in after sales services facilities.

46
 Question
What is the brand preference of dealer and retailer?

Brand Name No. of Dealers/Retailers Percentage

Birla Uttam 38 36.19
Birla Plus 21 20
Ambuja 19 18.10
ACC 17 16.19
Others 10 9.52
Total 105 100

What is the brand preference of dealer

and retailer?
Others Birla Uttam
10% 36%

ACC
16%

Ambuja Birla Plus

18% 20%

On basis of above table we justified that 38 dealers prefer Birla Uttam to

sale. Similarly Birla Plus and Ambuja are also high preferring brands in
market because they all are demand. Above graph depict only 17 dealers out
of 105 prefer ACC. That shows Birla Uttam is highly preferable brand in
District City of Hadoti.

47
CHAPTER-5
FINDING
AND
OBSERVATION

48
 FINDING & OBSERVATION

A good majority of respondents, 85% are associated with Birla Uttam

Brand of SHREE Cement Ltd.

A sale goes downward in rainy season while it increases in the festival

season.

35% of retailers are not satisfied with the distribution channel of the
company.

30% of retailers are not satisfied with the after sales services of the
company.

A good amount of retailers are satisfied with the profit margin of the
product.

Big Strength of respondents are not satisfied with the credit policy of
the company

38% of respondents are satisfied with present sales promotion scheme

of SHREE Cement Ltd.

49
CHAPTER-6
LIMITATION AND
DIFFICULTIES

50
 LIMITATION & DIFFICULTIES

Sample size of 105 respondents was only taken due to time constrain.
A large sample size would have given an opportunity to get more
accurate over all feed back from the retailers.

Limitation of my own knowledge while preparing.

This research is limited to Kota city only hence the finding of the
study cannot be generalized all over India; on the basis of Kota city
we cant analysis the sales and distribution management of the
company.

Sample size taken from different locations, so they may vary.

In telephonic interview only those retailers can be taped who have

telephonic connection and mobiles.

Weathering conditions were also a part of my limitation.

51


RECOMMENDATIONS
AND SUGGESTIONS

52
 RECOMMENDATION & SUGGESTION

Company should increase the sales promotion scheme and should go for more ads
in local areas.

Timely feed back should be taken from retailers.

After sales services should be enough prompt and up to the customer expectation.

Centralization of authority should be made so that quick decision making can be

possible.

Company should maintain the distribution channel.

Company needs to look on its product price structure.

53
BIBLIOGRAPHY

54
 BIBLIOGRAPHY

Marketing management - Philip Kotler

Research methodology - C.V. Kothari

Website - www.SHREEcementltd.com
www.google.com

New Papers Times of India

Hindustan Times

55


ANNEXURE

56
 ANNEXURE

Sales Promotion Activities in Cement Industry for SHREE Cement

Limited (Kota Division)

QUESTIONNAIRE FOR RETAILERS

SHREE CEMENT LIMITED

KOTA DIVISION

Shop Name:__________________________________________

Address:_____________________________________________

Phone:_______________________________________________

Date:________________________________________________

1. Have you associated with Birla Uttam cement?

(1) Yes (2) No

(ii) If Yes, Are you deal in another brand of cement except Birla Uttam?
(1) Only Birla Uttam (2) Others Brand

2. What is your sale per month?

(1) 0-250 Bags (2) 250-500 Bags
(3) 500-1000 Bags (4) >1000 Bags

3. What is the time of minimum sale (consumption) in a season?

(1) Rainy (2) No effect (3) No answer

4. Are you satisfied with present sales promotion scheme of the

company?
a. Retailer are directly connected with SHREE Cement
b. Cash Discount
c. Mason Meet
(1) Yes (2) No

57
5. If no, what recommendations do you suggest to improve the sales?
1. Improve the price structure
2. Improve the product quality
3. Improve the advertisement policy
4. If others then
_____________________________________________

6. Are you satisfied with present scheme of advertising?

(1) Yes (2) No

7. Are you satisfied with the present credit policy of the company?
(1) Yes (2) No

8. Are you getting the delivery of product on time and in required quantity?
(1) Yes (2) No

9. Are you satisfied with profit margin, you earn on selling the companys product?
(1) Yes (2) No

10. Are you satisfied with the present after sales service of the company?
(1) Yes (2) No

11. Any Suggestion

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