Mangesh T 5-1-1

A
PROJECT REPORT
ON
“A study of Key Decision Areas In Sales and

Distribution Management With Reference to
The Jaypee Cement Pvt Ltd
PROJECT REPORT SUBMITTED TO SAVITRIBAI PHULE PUNE

UNIVERSITY OF PUNE, PUNE
IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
BY
Vaibhav Dadaji Fatale
(MARKETING)
UNDER THE GUIDENCE OF
PROF. REUBEN UMAP
JSPM’S
JAYAWANTRAO SAWANT
INSITUTE OF MANAGEMENT AND RESEARCH,
HANDEWADI ROAD, HADAPSAR, PUNE-28
(2018-2019)
DECLARATION
I hereby declare that Project titled “A study of Key Decision Areas In Sales
and Distribution Management” is an original research work carried out by
me under the valuable guidance & supervise on of Prof. Reuben Umap. The
information has been collected through genuine & authentic sources. The work
has been submitted in partil fulfillment of Master of Business Administration to
Savitribai Phule Pune University.
Date:
Place: Pune Mr.Vaibhav Dadaji Fatale
And Sign: Students Name
2|Page S . V . P . P . C O L L G E O F A R T ’ S , C O M M E R C E & S C I E N C E
ACKNOWLEDGEMENT
I would like to express my heartfelt thanks to many people. This dissertation

is an effort to contribute towards achieving the desired objectives. In doing so, I
have optimized all available resources and made us of some external resources ,
the interplay of which, over a period of time, led to the attainment of the set
goals.
I take here a great opportunity to express my sincere and deep sense of
gratitude to my esteemed faculty PROF. REUBEN UMAP and DR.ANITA
KHATKE.
Director of JSIMR for giving me an opportunity to work on this project. The
support & guidance from madam, was of great help & it was extremely
valuable.
I also express my sincere thanks to all the people who, directly or indirectly,
contributed in time, energy and knowledge to this effort.
Date:
Place: Pune Mr. Vaibhav Dadaji Fatale
And Sign: Students
Name
CHAPTER – 1
1.1 OBJECT OF THE PROJECT
“Management is the art of securing maximum result with a minimum
effort so as to secure maximum prosperity and happiness for both employer and
employee and give the public the best possible service”
……. John mee.
Theoretical knowledge of such functions and responsibilities can be
obtained in the institute but it is difficult to get the practical experience of it is
not possible every time.
As per the BBA curriculum, at the end of the third year, all students are
required to undergo a training programme of 30 days. This training is an
integral part of the BBA course and its successful completion is a prerequisite
for the fulfillment of the graduate degree in management.
1.2 SELECTION OF THE TOPIC
Topic selection is the one of the important aspects of the project. It
decides the course of action to be followed. The Topic selection should be such
that it helps in understanding the marketing concepts clearly. My topic was
given by the company itself.
The Topic of my project was “A Study of Key decision areas in sales

and distribution management”. This covers all thing related to the topic.
The topic was dealer Oriented so I surveyed dealers of various cement

brands in Pune and nearby area to collect all information regarding topic of the
Project.
1.3 OBJECTIVES OF THE STUDY
 To study key decision areas in sales and distribution management.
 To Know the Distribution Intensity of Jaypee Cement
 To identify market share of various cement companies
 To study distribution cost of various cement.
 To study and analyze the impact of advertisement on sales of various

cement.
 To get feedback and Information about cement companies from dealers.
1.4 RESEARCH METHODOLOGY
Every Research is based on a standard sequence that determines its

initialization, flow and completion. In my project I followed the following
sequence of steps.
OBJECTIVES DEFINITION
DEVELOP RESEARCH PLAN
COLLECTION OF DATA
ANALYSE THE INFORMATION

INFORMATIO0N
PRESENT THE FINDINGS
RESEARCH PROCESS
RESEARCH OBJECTIVES
RESEARCH DESIGN
SOURCES OF DATA
DATA COLLECTION
DATA ANALYSE
Research Methodology is a way to systematically solve the research

problem. When we talk of research methodology we not only talk to research
methods but also consider the logic behind the methods we use in the contexts
of our research study and explain why we are using a particular method or
technique and why we are not using other so that results are capable of being
evaluated either by researcher himself or by others.
Generally Research Methodology follows the following steps:-
1. TO DECIDE THE OBJECT OF STUDY

2. TO DECIDE RESEACH DESIGN
3. TO DETERMINE THE SOURCE OF DATA
4. TO DESIGN DATA COLLECION FORMS
5. TO DETERMINE SAMPLING DESIGNAND SAMPLING SIZE.
6. TO ORGANISE AND CONCUCT FIELD SURVEY.
7. TO PROCESS AND ANALYSE THE CONDUCTED DATA
8. TO PREPARE THE RESEARCH REPORT.
1. TO DECIDE THE OBJECT OF STUDY
The main objectives of my project was to understand the consumer

behavior in buying the different brands of cement and also to understand
critical factors in buying decision of a customer of cement. I have to also
understand the basis of buying cement.
2. TO DECIDE RESEARCH DESIGN
10 | P a g e S . V . P . P . C O L L G E O F A R T ’ S , C O M M E R C E & S C I E N C E
Decision regarding what where when how much by what means
concerning an inquiry or research study constitute a research design.
“A Research Methodology is the arrangement of condition of collection

and analysis of data in a manner that aims combine relevance to the research
purpose with economy in procedure.”
Generally there are three types of research design:
 Exploratory research
 Descriptive research
 Casual research
As my Project was mainly about vicinity of customer of cement therefore

in this case descriptive research would come.
Descriptive research
The major of descriptive research is description of the state of affairs as it

exits at present. The main characteristics of this method are that the researcher
has no control over the variables. He can only report what was happened or
what is happening.
My report was on Cement industry, my work was to do a survey of the
market and get the inside information about the product, the basis of buying,
need of consumers, influencing factors in buying cement.
3. TO DETERMINE SOURCE OF DATA
The task of data collection begins after a research problem has been defined
and a research plan chalked our. While deciding about the method of data
collection to be used for study. The researcher should keep in mind that there
are two types of data.
 Primary Data
 Secondary Data
PRIMARY DATA
Primary data are time consuming. But it gives accurate result it the sample is
effectively selected. The data used is not outdated. There are several methods of
collecting data, important ones are:-
 Observation method
 Interview method
 Through questionnaire
 Through schedules
SECONDARY DATA
Secondary data means that are already available i.e. they refer to the data
which have already been collected and analyzed by someone. Secondary data is
economical as the cost of collecting original data saved less time consumed for
project compilation secondary data is also used for basis of comparison with the
primary data.
Here primary data was collected through questionnaire and personal interview
of the customer.
4. TO DESIGN DATA COLLECTION:-
There are two types of mode to collect the data. They are:-
Observation Method
The observation method is the most commonly used method. In the way
we observe things around us but this sort of observation is not scientific
observation. Become a scientific tool and the method of data collection for the
researcher when it serves a formulated researcher when it serves a formulated
researcher purpose, is systematically planned and recorded and is subjected to
checks and controls. On validity and reliability under the observation method
the information is sought by way of investigations own direct observation
without asking question from respondents.
Survey Method
In my project I used the survey method of collection of data. I had

surveyed the market in Pune and nearby areas. In all the I have surveyed the
market and have asked questions to dealers to get data. There was a proper
questionnaire which was made and used.
5. TO DETERMINE SAMPLING DESIGN AND SAMPLE SIZE
A sample design is a definite plan for obtaining a sample from a given

population. It refers the technique or the procedure would adopt in selection
items for the sample.
The sample design is determined before data are collected.
There are two types of survey, they are:-
 Sample survey
 Census survey
I had adopted the sample survey for my project.
6. TO ORGANISE AND COLLECT FIELD SURVEY
To do a field survey is an easy job. You need to first organize each and
every aspect of the survey before your start with it. The first thing is you should
know the product very well before you go to market. Its strength and weakness
because that is what you are going to speak about the market. The next thing
you should know about the company you belong. After completing the study of
all these aspects, you should know the market from where your have to collect
the data. After analyzing all these aspects and organizing yourself you should
then go to the market to collect data. I covered all these aspects when I was
doing my projects before compilation.
7. TO PROCESS AND ANALYSE THE COLLECTED DATA:-
The data after collection has to be processed and analyzed in

accordance with the outline lay down at the time of developing research plan. In
the process of analysis, relationship or differences supporting or conflicting
with origin or how hypothesis should be subjected to statistical tests of
significance to determine with what validity data can be said to indicate any
conclusion.
8. TO PREPARE THE RESEARCH REPORT:-
I have taken great care in preparation of my research report. I have

tried my best to maintain objectivity, coherence and clarity in the good research
report is that it effectively communicates its resource findings.
COVERAGE
I have covered the Pune and nearby areas under the JAIPRAKASH
ASSOCIATES LTD. (CEMENT DIVISION) in Pune Region. In above I have
visited 100 dealers of various cement companies. They give me satisfactory
reply.
1.5 SCOPE OF THE PROJECT
o The market survey was conducted to study the distributor’s outlet and the
topic was “Key decision areas in sales and distribution management” for
Jaiprakash Associates Ltd. In Pune.
o The geographical scope of my survey was limited to Pune and nearby
area only. The study aims at sales and distribution management and why
any dealer sales a particular brand only.
o The survey covers a wide range of activities and factors, which influence
the dealer to sell cement.
o The samples of 100 respondents were taken to represent total dealers of

Pune zone.
o The validity of the findings of this survey is limited to the period during
which the field survey was conducted during one months.
1.6 LIMITATIONS OF THE STUDY
The survey suffers from following limitations:-
o Limited number of dealers surveyed. Market is big which requires a large
sample to have a correct study; a sample size of 100 respondents was too
small for it.
o Survey was conducted in Pune and nearby area only.
o Less chances of exact information about sales figure.
o It is very difficult to influence and get right information from old

mentality dealers.
o Time constrain.
1.7 RATIONALE OF THE STUDY
The study of key decision areas in sales and distribution management has
its important worth and utility in future for organization as well as me.
Some utilities are as follows: -
For Organization: -
o It will help the organization to know the actual condition of sales and
distribution management.
o It can help the organization to establish strong distribution channel.
o It can promote the organization to improve sales than competitor’s brand

by using data that I have identified.
For Myself: -
o As a researcher, I got an experience to face the market condition.
o It will help me when I will go to work in the organization.
o Whatever experience I have got will help me to deal with people

effectively.
o To work in any cement sector, this experience will give great exposure.
CHAPTER – 2
2.1 CEMENT INDUSTRY: AN OVERVIEW
History
Manufacture of cement has a history, which traces back to millennia.

The Romans who were prolific builders used burnt calcareous (calcium bearing)
rocks along with pozzolanic materials in an era Before Christ. The structures
built by them, like the Pantheon, are still there for us to see proving the
goodness of cementitious materials as input material for construction. Post
industrialization and as infrastructure development started globally, demands
for cement has been growing steadily both quantitatively & qualitatively.
India is the second largest cement producer in the world after China
and cement consumption has been growing at a CAGR of over 8% p.a. in the
last five years. The group cement facilities are located in the Satna cluster,
which has one of the highest cement production growth rates in India.
India is today the second largest producer of cement in world with
an installed capacity of close to 155 million tonnes 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.
What is Cement?
Cement is a fine powder, which when mixed with water undergoes

chemical change and thereafter allowed to set and harden is capable of uniting
fragments or masses of solid matter together to produce a mechanically strong
material. Cement can be used as binding material with water, for bonding solid
particles of different sizes like bricks, stones or aggregate to form a monolith.
Cements used in construction of buildings and civil engineering works contain
compounds of lime, silica and alumina as their principal constituents and can be
called as complex compounds.
Some of the reasons for its popularity and universal acceptance are listed
below:
a. Cement can be produced in large volumes in controlled condition, Packed

and transported
b. Cement is several times stronger binding material than lime and clay.
c. It can be mixed and used at will with locally available materials at site.
d. When stored properly in ordinary atmosphere does not deteriorate for

reasonably longer time.
e. When mixed with water, starts setting and acquires sufficient Strength in a
day or two, where as other binding materials require much longer time.
f. When water is added to quick lime, lot of heat is generated, but in case of
cement, heat generated is unnoticeable and comparatively much lesser.
g. It can withstand compressive stresses well. Where tension and shear

stresses occur it gives good bond to steel reinforcement and transfers
excess stresses to steel.
h. It is produced from the materials like limestone, hematite, bauxite, clay,

etc. which are abundantly available in the upper crust of the earth.
The forms of cement produced:
o Ordinary Portland Cement

o Portland Pozzolana Cement
o Portland Slag Cement
o Blended Cement
India’s per capita cement production: 130 kg per annum. World average of per
capita cement production: More than 280 kg per annum.
Major Players In Indian Cement Sector:
 ACC
 Ambuja Cement
 Ultratech Cement
 Jaypee Group
 Birla Super Cement
 India Cements
 Century Cements
 Madras Cements
Bottlenecks of Cement Industry:
A comparison of the energy efficiency of Indian cement industry with

that of other developed nations shows Indian companies are lagging.
Regional Imbalances in Cement Production:
The Cement industry has continued its growth trajectory over the past
seven years. Domestic cement demand growth has surpassed the economic
growth rate of the country for the past couple of years. Over the past five years
(FY03-07), cement demand has grown at a CAGR of 8.37% higher than the
CAGR of supply at 4.84%. Demand for cement in the country is expected to
continue its buoyant ride on the back of robust economic growth and
infrastructure development in the country.
The key drivers for cement demand are real estate sector, infrastructure
projects and industrial expansion projects. Among these, real estate sector is the
key driver and accounted for almost 55% of cement demand in FY 07.
During the period FY 03 – 07, capacity additions in the country (30.6

mn tonnes) were at a slower rate compared to demand growth leading to higher
average capacity utilization rates from 81.3% in FY 03 to 93.8% in FY 07. This
exerted pressure on average prices which have increased from Rs. 156 per bag
in FY 03 to Rs. 216 per bag in FY 07. In December 2007, prices stood at Rs.
245 - Rs. 250 per bag.
Low capacity addition coupled with higher utilization rate also led to
increase in proportion of blended cements in product mix. Blended cement
accounted for 68% of product mix in FY 07 as compared to 49% in FY 03.
Cement is a bulky commodity and cannot be easily transported over

long distances making it a regional market place, with the nation being divided
into five regions. Each region is characterized by its own demand-supply
dynamics. The Southern region dominated the cement consumption at 44.5 mn
tonnes in FY 07, accounting for about 30% of total domestic cement
consumption. During FY 03-07, Southern region has witnessed highest CAGR
of cement demand at 10.4% followed by Northern and Eastern regions at 8.9%
and 9%, respectively.
Over the past five years, cost of cement production has grown at a CAGR of
8.4%. The producers have been able to pass on the hike in cost to consumers on
the back of increased demand. Average realizations have increased from Rs.
1,880 per tonne in FY 03 to Rs. 3,133 per tonne in FY 07, at a CAGR of 13.6%,
which has resulted in higher profit margins of the industry.
To reduce the cost of production, the industry is increasing its focus on

captive power generation. Proportion of cement production through captive
power route has increased over the years. Also, cement movement by rail has
increased over the years.
2.2 ABOUT THE COMPANY: JAYPEE GROUP
History
With a single minded focus in mind, to achieve pioneering myriads of

feat in civil engineering Shri. Jaiprakash Gaur, the founding father of
Jaiprakash Associates Limited after acquiring a Diploma in Civil Engineering in
1950 from the University of Roorkee, had a stint with Govt. of U.P. and with
steadfast determination to contribute in nation building, branched off on his
own, to start as a civil contractor in 1958.
Different Businesses of Jaypee Group
 Cement
 Civil Engineering
 Private Hydropower
 Hospitality
 Information Technology
 Integrated Township
 Expressway
Historical Milestones:
Year 1957 - Completed first work as contractor in Kota (India).
Year 1979 - Jaiprakash Associates Private Ltd. (JAPL)
Year 1983 - Establishment of Japyee Rewa Cement Plant (JRCL) with an

initial capacity of 1 million tones.
Year 1980 - Hotels Siddharth and Vasant Continental set up.
Year 1986 - Formation of Jaiprakash Industries Limited (JIL) by

amalgamating JAPL into JRCL.
Year 1992 - Formation of Jaiprakash Hydro Power Ltd. (JHPL) and

Jaiprakash Power Venture Ltd. (JPVL)
Year 1996 - Establishment of Jaypee Bela Cement Plant (JBCP) with an

initial capacity of 1.9 million tones.
Year 2000 - Formation of Jaypee Cement Ltd. (JCL) by merging JRCL
and JBCP.
Year 2003 - Formation of Jaiprakash Associates Ltd. (JAL) formed by

Merging JIL with JCL.
Year 2005 - Shares of JHPL listed on BSE/NSE. First Hydropower

Company to be publicly held and listed in the country.
Year 2006 - Merger of Jaypee Greens with Jaiprakash Associates Ltd

(JAL)
ORGANISATIONAL FLOWCHART
CHAIRMAN
CHAIRMAN
BOARD OF DIRECTORS
BOARD OF DIRECTORS
CEO
CEO
GM GM GM GM
GM GM GM GM
(HRM) (PRODUCTION) (MARKETING)
(HRM) (PRODUCTION) (MARKETING)
(FINANCE)
(FINANCE)
AMO
AMO
(MARKETING)
(MARKETING)
SALES
SALES
EXECUTIVE
EXECUTIVE
CEMENT
Jaypee group is the 4th largest cement producer in the country.

The groups cement facilities are located in the Satna Cluster (U.P), which has
one of the highest cement production growth rates in India.
The group produces Ordinary Portland Cement and Pozzolana

Portland Cement under the brand names “Buland” and “Buniyad”. Its
cement division has three modern, computerized process control cement plants
namely, Jaypee Rewa Cement Plant (JRCP), Jaypee Bela Cement Plant (JBCP)
with an aggregate capacity of 7.0 MTPA. With its plans of adding capacities in
different regions of the country, the Group is poised to be a 25 MTPA cement
producer by the year 2010 and 30.5 MTPA by 2011. Thus, it is likely to be third
largest cement producer in the country.
Keeping pace with the advancements in the IT industry, all the

120 cement dumps are networked using TDM/TDMA VSATs along with a
dedicated hub to provide 24/7 connectivity between the plants and all the 120
points of cement distribution in order to ensure “track – the – truck” initiative
and provide seamless integration. This initiative is the first of its kind in the
cement industry in India.
In the near future, the group plans to expand its cement
capacities via acquisition and Greenfield additions to maximize economies of
scale and build on vision to focus on large size plants from inception.
The Group is committed towards the safety and health of employees and the
public. Our motto is “Work for Safe, Healthy, Clean & Green Environment”
2.3 PRODUCTS OF JAYPEE CEMENT
BULAND
Buland is the latest to arrive in Indian markets among the blended

cement and especially in the markets of M.P., Bihar, Western UP, Delhi &
Nepal. Buland in these regions is a hot favorite and in addition to being sold in
large quantities is also the un-disputed brand leader. Buland is superbly
engineered blended cement, manufactured with the latest technology at the
Company’s Cement Complex at Rewa; M.P. Special care is taken to integrate
the highest quality of Pulverized Fly ash with high grade, high strength clinker
to ensure that the properties of Buland always surpass the norms prescribed by
BIS.
Qualities of Buland Cement
 High Compressive Strength and rate of strength gain.

 Buland cement provides unsegregated concrete of better integrity.
 Impermeable concrete for durable construction.
 Resistant under aggressive environment even in costal areas.
 Resistance to corrosive attack on steel reinforcement.
 Low heat of hydration – Crackless construction.
 Reduces shrinkage and swelling.
 Beneficial effect on workability due to spherical shape of particles and
their high fineness.
 Pumpability – provides more cohesive concrete and mortar.
 Modulus of elasticity is high especially at later ages.
 Improved bondage of concrete to steel.
BUNIYAD
Buniyad has been a market leader among all blended/composite cements

in the markets of U.P. & Bihar. Buniyad, because of its unique design and
blend, with high grade, high quality clinker, has led to the construction of vast
number of durable, crack free* and, durable civil structures in these states.
Fine particles of Buniyad cement easily react with water and form a
smooth paste, which results in a smooth surface. When used with sand and
aggregates it yields a very durable concrete.
Buniyad cement helps to produce more cohesive concrete and mortar and it is
also less prone to segregation and bleeding. Due to this quality, Buniyad is very
suitable for the construction of canals, load bearing structures and foundations.
Low permeability of concrete made with Buniyad cement does not allow
any kind of bulging in constructions and makes the construction compact,
impermeable and resistant to lime leaching.Buniyad is being used for a number
of applications like housing & commercial complexes, roads, wells, canals etc.
which establishes that Buniyad cement has proven to be favorite choice of the
discerning customer. It is particularly well situated to the tropical climatic
conditions of India.
Buniyad surpasses IS: 1489:1991, the laid down BIS standards for fly
ash based PPC cement. Buniyad can be easily compared with OPC-43 Grade in
cement for its ultimate compressive strength.
CHAPTER – 3
3.1 TOPIC UNDER STUDY
KEY DECISION AREAS IN SALES AND DISTRIBUTION

MANAGEMENT
Companies today are anxious to find new marketing strategies to attract

and hold customers. Today customers are the king of the market. Today all
marketing activities of all the business enterprise go around the habits,
preference, attitude, likes and dislikes of customers. All the efforts are make to
provide maximum satisfaction and delight to customers.
They provide the product and services at right time and right place and
most economical to their customers. Then all the marketing activities go around
the activities satisfaction of needs and wants of customers.
Now today the business enterprises have realized the importance of the
study of sales and distribution management. Product and services are produced
according to their specification of needs and wants and these product and
services are distributed to the customers at the right time, right place through
most suited channels.
MARKET-LOGISTICS DECISIONS
Four major decisions must be made with regard to market logistics:
1. How should order be handled?

2. Where should stocks be located?
3. How much stocks should be held?
4. How should goods be shipped?
The study of key decision areas in sales and distribution management may
be explained under following heads -
TARGET MARKET DECISION –
Company need to define their target market and not try to serve everyone.
They can choose a target group of customers according to size criteria (e.g. only
large retailers), type of customer, need for services and other criteria. Within the
target group they can identify the more profitable customers and design stronger
offers and build better relationships with them. They can propose automatic
reordering systems, setup management training and advisory systems, and an
even sponsor voluntary chain. They can discourage less profitable customers by
requiring larger orders or adding surcharges to smaller ones.
PRODUCT ASSORTMENT AND SERVICES DECISION –
The Company “product” is their assortment. Companies are under great

pressure to carry a full line and maintain sufficient stock for immediate
delivery. But this can kill profits. Companies today are reexamining how many
lines to carry and are choosing to carry only the more profitable ones. They are
grouping their items on an ABC basis, with a standing for the most profitable
items and C for least profitable. Inventory carrying levels are varied for three
groups. Companies are also examining which services count most in building
strong customers relationships and which ones should be dropped or charged
for. The key is to find a distinct mix of services valued by their customers.
PRICING DECISION –
Companies usually mark up the cost of the goods by a conventional

percentage; say 20% to cover their expenses. They might cut their margin on
some lines in order to win important new customers.
PROMOTION DECISION –
We define advertising as “Any paid form of nonpersonal presentation and

promotion of ideas, goods or services by an identified sponsor”.
Companies rely primarily on their sales force to achieve promotional objectives.

Even here most companies see selling as a single salesperson talking to a single
customer instead of a team effort to sale, build, and a services major account.
As for non-personal promotion, Companies would benefit from some of

the image- making techniques used by retailers. They need to develop an overall
promotion strategy involving trade advertising, sales promotion, and publicity.
They also need to make greater use of supplier promotion materials and
programs.
PLACE DECISION -
Retailers are accustoming to saying that the three keys to success are
“location, location and location”. For example, customers primarily choose the
nearest bank and gas station. Department-store chains, oil companies, and fast
food franchisers must exercise great care in selecting locations.
A manufacturing organization should be located in a place where air, rail,

road and water transportation are easily available. It reduces transportation cost
of the goods transported to the retailer and ultimate customers.
Stockiest must have enough space to store goods as per requirement. So

that demand can be executed as and when required.
TRANSPORTATION
Marketers need to be concerned with transportation decisions.
Transportation choices will affect product pricing, on time delivery
performance, and the condition of goods when they arrive, all of which affects
consumer satisfaction.
In shipping goods to its warehouse, dealers and customers the company can
choose among five transportation modes: rail, truck, air, water and pipeline. As
cement is a bulky and low cost material it should be transported through rail or
truck.
CONSUMER MARKETING CHANNELS
MM
0-level channel 1-levelM
channel
M 2-level M
channel
M M
3-level channel
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3.2 DATA PRESENTATION
1) EXCLUSIVE OUTLETS
Sample size: 100
COMPANY ACC JAYPEE ULTRATEC BIRLA MIX

GOLD
PERCENTAGE 30 20 10 15 25
Exclusive outlets
25% 30%
15%
10% 20%
*Source – Primary Data
Inference: - ACC having 30% exclusive outlets in Pune and near by area
followed by jaypee 20%, Birla gold 15%, UltraTec 10% and mixed outlets 25%.
Mixed outlets are not exclusive outlets of any brand; they sell all cement brands
in one shop.
(2) LANDING COST MEASUREMENT
In order to know landing cost of various brands of Cement, I surveyed

100 dealers of various cement brands in Pune and nearby area.
Sample size: 100

Cement Jaypee Acc Birla Gold Ultratech Others
Brands
Landing
Cost (in 5.50 4.50 4.50 4.50 4.50
Rs.)
6 Landing cost
5
4
Rs/Bag 3
2
1
0
Jaypee Birla Lafarge
Gold
COMPANY
*Source – primary data
(3) MARKET SHARE
Here, I tried to analyze the effect of marketing activity of Jaypee

cement with the help of a self developed questionnaire to know average sale of
cement per month (Brand wise). I have collected information on the basis of the
questionnaire. I surveyed 100 dealers and analyzed the primary data.
Sample size: 100

Total weight (in tonnes) - 2000 (Approx)
Cement Brands Weight(in tones) Percentage

Acc 960 48%
Jaypee 600 30%
Birla Gold 180 9%
Lafarge 80 4%
Ultratech 80 4%
Others 100 5%
Market Share
48%
30%
Acc
Jaypee
9% Birla
5% 4% 4%
Gold
Lafarge
Ultratech
Others
*Source – primary data
Inference :- In urban areas (i.e. Pune) ACC is the market leader having market
share 48% where as JAYPEE cement has 30% market share having second
position in Pune and near by areas, followed by Birla Gold 9%, Lafarge 4%,
Ultratec 4%and Others 5%.
However, when I entered in suburban and rural area. I came to know that
the entire market is dominated by a single dealer who have grip over the market
and they are selling large amount of cement as compare to the dealer selling in
urban area. Thus it would beneficial for a marketing organization with in the
target group, they can identify the more profitable dealers and design stronger
offer and build better relationship with them.
Thus, I would suggest the organization to focus on these areas where they
can achieve target market easily.
(4) DEMAND AND SUPPLY
Sample size: 100
Company ACC JAYPEE ULTRATEC BIRLAGOLD OTHERS

Supply 0-2 0-2 2-4 2-4 7
Duration
(in days)
Supply Duration
7
6
5
4
Days
3
2
1
0
ACC JAYPEE ULTRATEC BIRLAGOLD OTHERS
Company
*Source – Primary data
Inference: - When I surveyed various cement brands on the basis of self

developed questionnaire it was analyzed that ACC and Jaypee execute orders
same day or with in two days. Whereas Ultratec and Birla gold execute their
orders within 4 days and others within a week after analysis and interpretation
of data, i can say that all Cement Brands in Pune and nearby area has prompt
delivery record. Supply of cement also depends on availability.
(5) IMPACT OF ADVERTISING ON SALES:
Sample size: 100
Does Advertising OUTLETS PERCENTAGE

Increase Sales?
YES 73 73%
NO 27 27%
Advertisement & sales
27%
YES
73% NO
*Source – Primary Data
Inference:- During survey it was found that out of 100 respondents 73% of
them were agreed that aggressive advertisement further increase sale of cement,
whereas 27% of them were not agree with this idea. Hence advertisement and
sales are positively associated.
(6) DO YOU GET CEMENT BAGS IN GOOD CONDITION?
Sample size: 100
REPLY YES NO
PERCENTAGE 70 30
Bag condition
70%
YES
NO
30%
*Source: - Primary Data
Inference: - Bags of Jaypee cement are damaged or torn where as other cement
brands are supplying fresh bags of cement to their dealers. Thus all respondents
of Jaypee cement claimed that they get damage bags.30% respondents shown in
above chart are dealers of Jaypee cement.
(7) SERVICES
Companies must also decide on the services mix to offer Dealers.

During survey, when I surveyed Dealers of Jaypee Cement, they respond
negatively on asking about services provided by the supplier.
However, when I surveyed dealers of other cement brands, many
of them replied that our company organize dealers meet, customers meet,
engineers meet, holiday package etc. to motivate dealers.
In today’s era of competition dealers need to be motivated
because they play a role of influencers on buying decision of customers. Thus
dealers must be motivated. Company should adopt some policies to motivate
dealer time to time.
Sample size: 100
60
55 Services provided
50
P
45
E
40
R
C
E 30
N
T
A
20
G
E 10
0
YES NO
REPLY
*Source: - Primary Data
Inference: - During study 45% dealers say they doesn’t get any service from
their company many of them are dealers of Jaypee cement. Whereas dealers of
other cement brands respond positively on asking the same question.
CHAPTER - 4
CONCLUSIONS OF THE STUDY
o The study reveals that landing cost of Jaypee cement brand is higher as
compared to any other cement brand in the sample area.
o The majority of dealers deal with ACC cement as ACC cement is the
market leader with 48% and Jaypee cement is at second position with
30% market share in the sample area.
o During study it was found that 73% dealers of various cement brands do
agree with the idea that aggressive advertisement further increases sales.
o The study reveals that ACC and Jaypee cement execute their orders same
day or with in two days whereas other cement brands such as Ultratec
and Birla gold executes their orders within a week. Hence ACC and
Jaypee cement has prompt delivery record
CHAPTER – 5
RECOMMANDATIONS ANDSUGGESTIONS
By the help of analysis and interpretation of the gathered data the suggestions
are as follows:
1. All cement brands has less landing cost than Jaypee cement brand. Landing
cost of any product depends upon distance from supplier to retailer. So,
Company should initiate to reduce the landing cost of Jaypee cement.
2. Jaypee cement should try to capture rural market. It would beneficial for a
marketing organization within the target group, they can identify the more
profitable dealers in rural area and design stronger offer and build better
relationship with them.
3. Instead of supplying on demand the company can propose automatic

reordering system through intranet.
4. Company must also decide on the services mix to offer dealer and customers.
Because all other cement brands are providing some Services to their dealers.
5. Price hike of Jaypee cement brand should be controlled without affecting the
quality of the product.
6. Company must care

about promotional
activities which ultimately increase the sale of the company.
QUESTIONNAIRE
NAME :
DEALERSHIP :
DEALERSHIP NO :
ADDRESS :
(1) WHAT IS THE RATIO OF SUPPLY AT SALE POINT OF JAYPEE VIS-
À-VIS COMPETITORS?
(2) WHICH CEMENT BRAND HAS LESS LANDING COST THAN

JAYPEE CEMENT?
(3) WHAT IS THE AVERAGE SALE OF CEMENT PER MONTH

(BRAND WISE)?
a. ACC b. Jaypee c. Birlagold
d. Ultratec e. Others
(4) HOW LONG YOU’RE SUPPLIER TAKE TO EXECUTE ORDERS?
a. Less than 2 days

b. 2 – 4 days
c. 4 – 6 days
d. More than a week
(4) DO YOU GET CEMENT BAGS IN GOOD CONDITION?
a. Yes
b. No
(5) DO YOU AGREE THAT AGGRESSIVE ADVERTISEMENT
INCREASE SALE?
a. Yes
b. No
(6) WHAT KIND OF SERVICES ARE PROVIDED BY YOUR

COMPANY?
(7)YOUR FURTHER SUGGESTIONS/ADVICES.
BIBLIOGRAPHY
A. PHILIP KOTLER “MARKETING MANAGEMENT” 12TH EDITION
PAGE NO.474, 521 to 522,526 to 529. Topic – Consumer marketing
channels, Wholesale marketing, Market-logistic decisions.
B. C. R. KOTHARI “RESEARCH METHODOLOGY” 2ND EDITION Page

No. 10, 35, 95 to 111. Topic – Research process, Research design,
Methods of data collection
C. Arun Kumar and N. Meenakshi “ Marketing Management ”,Vikas

publication First Edition (2006) Page No .336 -361 Topic -distribution
D. www.jilindia.com (Company Website)
E. www.google.co.in
F. www.acclimited.com

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A

“A study of Key Decision Areas In Sales and

PROJECT REPORT SUBMITTED TO SAVITRIBAI PHULE PUNE

IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Vaibhav Dadaji Fatale

UNDER THE GUIDENCE OF

PROF. REUBEN UMAP

INSITUTE OF MANAGEMENT AND RESEARCH,

HANDEWADI ROAD, HADAPSAR, PUNE-28

I would like to express my heartfelt thanks to many people. This dissertation

1.1 OBJECT OF THE PROJECT

1.2 SELECTION OF THE TOPIC

The Topic of my project was “A Study of Key decision areas in sales

The topic was dealer Oriented so I surveyed dealers of various cement

 To study key decision areas in sales and distribution management.

 To Know the Distribution Intensity of Jaypee Cement

 To identify market share of various cement companies

 To study distribution cost of various cement.

 To study and analyze the impact of advertisement on sales of various

 To get feedback and Information about cement companies from dealers.

Every Research is based on a standard sequence that determines its

DEVELOP RESEARCH PLAN

ANALYSE THE INFORMATION

PRESENT THE FINDINGS

Research Methodology is a way to systematically solve the research

Generally Research Methodology follows the following steps:-

1. TO DECIDE THE OBJECT OF STUDY

1. TO DECIDE THE OBJECT OF STUDY

The main objectives of my project was to understand the consumer

2. TO DECIDE RESEARCH DESIGN

“A Research Methodology is the arrangement of condition of collection

Generally there are three types of research design:

As my Project was mainly about vicinity of customer of cement therefore

The major of descriptive research is description of the state of affairs as it

3. TO DETERMINE SOURCE OF DATA

4. TO DESIGN DATA COLLECTION:-

In my project I used the survey method of collection of data. I had

5. TO DETERMINE SAMPLING DESIGN AND SAMPLE SIZE

A sample design is a definite plan for obtaining a sample from a given

There are two types of survey, they are:-

I had adopted the sample survey for my project.

6. TO ORGANISE AND COLLECT FIELD SURVEY

7. TO PROCESS AND ANALYSE THE COLLECTED DATA:-

The data after collection has to be processed and analyzed in

8. TO PREPARE THE RESEARCH REPORT:-

I have taken great care in preparation of my research report. I have

1.5 SCOPE OF THE PROJECT

o The samples of 100 respondents were taken to represent total dealers of

1.6 LIMITATIONS OF THE STUDY

The survey suffers from following limitations:-

o Survey was conducted in Pune and nearby area only.

o Less chances of exact information about sales figure.

o It is very difficult to influence and get right information from old

1.7 RATIONALE OF THE STUDY

Some utilities are as follows: -

o It can help the organization to establish strong distribution channel.

o It can promote the organization to improve sales than competitor’s brand

o As a researcher, I got an experience to face the market condition.

o It will help me when I will go to work in the organization.

o Whatever experience I have got will help me to deal with people

Manufacture of cement has a history, which traces back to millennia.

Cement is a fine powder, which when mixed with water undergoes