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Submitted by:
MBA 4th Semester
Department of Management
North-Eastern Hill University, Tura Campus

For conducting Winter Project on the Topic


Dated: ……………………

If iron and steel is the backbone of the country, roads and railways the nerves, then
cement is the blood. It is one of the most important components for economy building.
Cement qualifies as an element in the core sector of the economy. Its availability in
sufficient volume at all times is critical for developmental outcomes. Infrastructure
development is one of the measures of economic development and this segment has been
given a lot of importance by our policy makers. Buoyancy in demand in cement (despite
hints of economic recession) driven by promising growth in the real estate sector, public
construction, private initiatives, etc. is visible in our country. This is far truer for the
North East Region of India (NER). The NER is in the radar of preferential treatment by
the Government of India. Numerous programmes, schemes and developmental projects
set in the NER, spells higher demand for the core sector in future. As the region grows
and develops the demand for cement is bound to grow. Hence, we can say that the cement
industry, particularly in the NER is pivotal in the times to come as it provides the basic
ingredient for sustainability, growth and development.

Cement Manufacturing Company Limited (CMCL) is the major player in the industry. A
study on CMCL will throw light in the nature of the industry and current market. The
project focuses on three key themes – market structure, marketing strategies and financial
performance. These are important for understanding markets, foreseeing competition and
prudent financial planning and implementation.

Research Problem:

Often we see businesses becoming smaller and not bigger, some businesses disappear
altogether, some run into bankruptcy and some lose market share. Keeping in mind the
four P’s (Product, Price, Placement and Promotion) we understand the importance of
marketing and marketing strategies. A best quality product needs to reach the consumers,
a best quality product needs to penetrate to the grass roots and it must create demand.
Financial prudence is the norm of the day. Sources of funds, solvency (short-term and
long-term), investments and profitability are major indicators of financial soundness. A
mis-match in sources and applications of financial resources can disturb profitability and
long-term sustainability. This presentation shows the importance of foreseeing and
dealing with competition, it epitomizes the need for vibrant and efficient marketing
strategies and also the need for proper financial operations.

The study is worth pursuing as it will help in assessing the nature of competition in the
industry. A clear cut picture has not emerged as far as the competition to CMCL is
concerned. By using appropriate tools the project aims at presenting an overview on the
number of firms in the industry and their current positions in terms of production, sales,
market share, etc. and future activities. The perspective of the consumers on star cement
is a challenging area of study. This will help in devising appropriate marketing strategies
so as to improve upon the market share. A study of the accounts of CMCL will present
changes in the financial position of the company over the years and this provides an
interesting area for analysis. This will help in feeling the financial status of CMCL
thereby providing scope for better performance.

What is the relation between competition, marketing strategies and financial performance
shall be examined. Literature and existing knowledge seems to suggest that the three are
positively related. However, the study will delve into the issue from the operations of
CMCL and the environment in which it is operating. Overall, the area of study is
challenging and important as it shall throw light on a new subject-matter and their


The objectives of the study are three fold. They are:

1. To study the nature of competition in the industry
2. To analyse the consumers perspective on the product and current marketing
3. To assess the financial performance and potential for growth in future


Scope and coverage: The study will cover three aspects of CMCL. Firstly, the nature of
competition in the industry. Secondly, marketing strategies applied by the company and
customers needs and perspectives as far as star cement is concerned. Lastly, the financial
position of the company and changes in the financial performance of the company over
the years. The study will be an inter-company study, consumer’s survey and an intra-
company study. Competition in the industry will be an inter-company study, marketing
strategy and financial performance will be taken up as an intra-company study. The
study does not deal with the other issues of corporates and business environment.

Population and Sample: For the purpose of the study the population is the customer pool
in Guwahati region, Shillong region and Jowai region that use star cement. Moreover, the
dealers of star cement are taken as the second population in the study. Dealers are being
taken as their perspectives will help examine the marketing strategies better. The
customers sample size is 100 (50 for Guwahati region, 25 for Shillong region and 25 for
Jowai region) and the dealers sample size is 30 (20 for Guwahati region, 5 for Shillong
region and 5 for Jowai region). This sample size is considered significant so as to enable
drawing of inferences from the study.

Sources of Data: The data will be collected from the respective populations i.e.
customers and dealers through a scheduled questionnaire. There will be two sets of
questionnaires - One for the customers and the other, for the dealers. The questionnaire in
use will be close-cum-open ended. Secondary data will be source of information and data
for assessing competition in the industry. These sources are magazines, internet, journals
and other related material. The financial performance of the company will be studied on
the basis of accounts and figures generated from the annual reports.
Variable/Queries to be studied: The variables to be studied are classified into customer
related and dealer related. The customer related variables are preferences and perspective,
opinion on price and quality of cement, satisfaction, rating of star cement, etc. The dealer
related variables are demand, popular types of star cement, major customers, etc. The
competition related variables are production, sales, market share, etc. The financial
variables to be studied are gross profit, net profit, share capital, assets, debt, etc. The
variables concerning marketing strategies are marketing and distribution channels,
volume of star cement being marketed per annum, advertising strategies, demand by the
dealers, etc.

Data Analysis: Data will be analysed on the basis of tables, percentages, frequency,
charts, graphs, diagrams, etc. Standard financial ratios like gross profit ratio, net profit
ratio, liquidity ratios and solvency ratios shall be used to analyse financial data. The said
method of analysis shall provide valuable insights in the study which will subsequently
lead to findings and recommendations. Moreover, Porters 5 Forces Analysis,
Political/Legal, Economic, Sociological and Technological (PEST) Analysis, Boston
Consultancy Group (BCG) Matrix and Strength, Weakness, Opportunity and Threats
(SWOT) Analysis shall be used for assessing CMCL’s overall position.

Significance of the Study:

The study assumes significance as it addresses the core issues relating to corporates.
Competition, strategies and finance are key for any corporate. It is only when these key
issues are dealt with in an efficient manner that we can have progress and growth. The
study will throw light on these issues and provide a platform for decision making for the
management of the company. Consequently the study is of importance because of the
following reasons:

1. It will help in formulation of strategies for dealing with competition and also for
increasing market share

2. It will provide an insight into the needs and perspective of the customers thereby
helping in marketing modifications, and

3. Financial soundness of the company will be studied and this will pave the way
ahead for financial planning and better operations.

Chapterisation: The tentative Chapterisation of the project will be as follows:

Chapter 1 - Introduction comprising of background of company, motivation for the study,

the research problem, outline of project, objectives and definition of the concepts

Chapter 2 - Experimental Procedures/Methodology applied in the study, scope and

limitations of the project.

Chapter 3 - Literature concerning the subject-matter of study

Chapter 4 - Statement of Findings and Recommendations

Chapter 5 - Data Study and Analysis/Results

Chapter 6 - Implications of the Results including unanswered issues, Problems and

Chapter 7 – Discussion and Conclusion indicating fields for further study.