A Training Project Report

On

A survey of Retailers/Dealers to know their opinion about Pricing of different brands of cement WSR to Manglam Cement Ltd.

Submitted in partial fulfillment of the requirement for the Award of Degree of Master of Business Administration

SUBMITTED BY: TO: Sudhir Meena MBA-III Sem(Marketing) Prof.)

SUBMITTE Mr Mohit Pant (Asst.

2010-2012 OM KOTHARI INSTITUTE OF MANAGEMENT & RESEARCH, KOTA (Affiliated to Rajasthan Technical University, Kota)

INTRODUCTION OF CEMENT INDUSTRY

Over the decade of the eighties, the cement industry in India has witnesses a rate of the growth in capacity and production rarely seen among has for long country major industries. An industry that had for long been under a stifling regime of price and distribution control for most of the previous three decades, it had by the end of this seventies, reached a situation of virtual stagnation. Technologically obsolete and undersized plants, their inefficiencies supported by the generosity of the regulatory regime, produced a quantity of cement that barely met the countrys already depressed levels of consumption. The commodity was in a state of perpetual shortage, with a thriving underground market commanding substantial premiums. After 1977, the government sought to ease the shortage through imports, which quickly rose to level of ten percent of domestic consumption. In 1982, the industry was partially deregulated basically by the freeing a segment of its production from price and distribution controls. It was one of the first major industries in the country to be so deregulated and the opening up of profit opportunities afforded by a free market in a perennially short commodity brought a flood of entry into the industry. Much of these entry was by first time cement producers, either new firms in other lines of business diversifying in to cement manufacture the new entry took place at scales of production that were substantially larger than most existing plants. Further virtually all the new capacity was in the relatively more efficient dry process of manufacture, as opposed to substantial existing capacity that was in the older wet process. All these development took place at a very rapid rate. By the mideighties, the industry had been completely transformed, with cement available abundance even to the extent of being a branded product. Capacity growth outstripped demand, prices began to decline and many of the firms in the industry began to falter, in 1989 the government announces the total decontrol of prices and distribution. The industry had, by the early nineties assumed all the characteristics of a competitive market- a large number of firms, many new ones posed to enter, and the generally inability of firms to maintain prices at a level that was consistent with sustained high profitability.

INTRODUCTION OF CEMENT
WHAT IS CEMENT
The word "cement" is of ancient Roman Origin, the Roman made a kind of structural concrete composed of broken stone or similar material with burned lime as the binding medium. This form of construction was called "Opus caementitium". Later on, the term "cement" was used to denote those admixtures. In 1924, by burning a mixture containing certain proportions of lime and clay at a high temperature is called "PORTLAND - CEMENT" Which is resembles Portland stone, as limestone found in Southern Britain. Cement is a finely ground hydraulic binding medium for mortar and concrete, consisting substantially of calcium oxide with silicon dieoxide, aluminum oxide and ferric oxide, which have been formed by sintering or fusion. When mixed with water, cement hardens both in air and under water and retains its strength under water.

THE DIFFERENT TYPES OF CEMENT

There are different varieties of cement based on different compositions according to specific end uses namely Ordinary Portland Cement, Portland Pozolona Cement, Portland Blast Furnace Slag Cement, white Cement and Specialized Cement. The basic difference lies in the percentage of clinker used. Ordinary Portland cement (O. P. C.) OPC, popularly known as grey cement has 95% clinker and 5% of gypsum and other materials. It accounts for 70% of the total consumption. White cement is a variation of OPC and is used for decorative purpose like rendering of walls, flooring etc. it contains a very low proportion of iron oxide.

 Portland Pozolona Cement (P. P. C.) PPC has 80% clinker, 15% pozolona and 5% gypsum and accounts for 18% of the total cement consumption. Pozolona has a siliceous and aluminous material that does not possess cementing properties but develop these properties in the presence of water. It is cheaply manufactured because it uses fly ash/ burnt coal waste as the main ingredient. It has a lower heat of hydration. This helps in preventing cracks where large volumes are being cast.

Portland Blast Furnace Slag Cement (P.B.F.S.C.)

PBFSC consists of 45% clinker, 50% blast furnace slag 5% gypsum & accounts for 10% of the total cement consumed. It has a heat of hydration even lower than PPC & is generally used in construction of dams & similar massive construction. White cement

Basically it is OPC clinker using fuel oil (instead of coal) and with iron oxide content blow 0.4% to ensure whiteness. Special cooling technique is used. It is used to enhance aesthetic value in tiles & for flooring. White cement is much more expensive then gray cement. Specialized Cement

Oil well cement - it is made from clinker with special additives to Prevent any porosity. Rapid Hardening Portland cement - it is similar to O.P.C. except that It is Ground mush finer, so that on casting, the compressible Strength Increases rapidly.

POSITION OF CEMENT INDUSTRY IN RAJASTHAN

Position of cement industry in Rajasthan. The manufacture of cement if of recent developments in India. The increasing home markets due to increased activity in building construction and new uses of concrete have led to considerable expansion. The choice of location for the manufacture of cement is generally influenced by transport costs where the raw material used is bulky, there is a tendency for the industry to the located near the source of raw materials so that the heavy transport costs on materials could be avoided for the manufacture of 100 tons of cement, 160 tons of limestone, 38 are bulky in weight and cheap in price hence, cement industry is generally seen out cropping lat places but it does not rise more than a few meters above the plain area. Before independence, LAKHERI was a popular place, which is a still famous for its quality cement. At present these are the following cement industries functioning in Rajasthan.

MAJOR CEMENT INDUSTRIES WORKING IN RAJASTHAN

ACC Ltd. LAKHERI, BUNDI (1951) BIRLA CEMENT WORKS, CHITORGHAR. AADITAYA CEMENT WORKS, CHITTORGHAR. MANGLAM CEMENT, MORAK (Kota). SHREE CEMENT, BEAWAR. J.K. CEMENT, NIMBAHERA. J.K. CORPORATION LTD. SIROHI. SHRI RAM CEMENT, SRI RAM SAGAR, Kota. BINANI CEMENT LTD., SIROHI. BANGUR CEMENT, BEAWAR. AMBUJA CEMENT, RABRIYAVAS, DIST.PALI. TUFF CEMENTO CEMENT, BEAWAR.

As far as cement production in Rajasthan is concerned SHREE CEMENT, BEAWAR tops in the list, according to the production. Now BIRLA UTTAM also tries to increase its capacity by generating electricity through their own thermal power plant. The total capacity of BIRLA UTTAM is 4500 MT/day.

CHAPTER - II
COMPANY PROFILE

COMPANY PROFILE
MANGLAM CEMENT LTD. belongs to Birla group of companies. It is a professionally managed cement manufacturing company, enjoying, enjoying the confidence of consumers because of its superior quality product and excellent customer services. The plant of MANGLAM CEMENT LTD is situated at Morak in Kota district MANGLAM was incorporated in 1978 and commercial production was started in 1982. The total capacity was 1200 MT/Day. The company has added one more feather to its capacity in 1992 by commissioning its state of the art new cement plant with German Technology for producing 7 lakes tones per annum at its existing plant at Morak. Under the name of Neer Shree Cement. Krupp policies, Germany and their counterpart Krupp industries limited have joined hands with MANGLAM cement ltd to produce Birla Uttam premium 43 OPC and 53 PPC. MANGLAM cement has a total a of 1070. Employees on its roll, which there are 750. Workers and 320. Staff employees.MANGLAM CEMENT is committed to quality using highly sophisticated state of art technology ensuring uniform and top quality cement. MANGLAM CEMENT is committed to quality, to ensure this, the entire manufacturing process has been made automatic, and the following latest equipments are used to achieve this goal. 1. Vibrating Screen: - Commencing with a 500 TPH crusher with latest vibrating screen to ensure that only very clean stone goes in manufacturing process. 2. Starchier Recamier: - To perfectly homogenize the main raw material i.e. limestone. 3. X- Ray Analyzers- 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 presses for clinker grinding to ensure uniform particle size of cement for greater Strength.

SET UP OF MANGALAM
Location Year of incorporation : : Morak 65 Km from Kota Mangalam 1978 Mangalam 1982 400 Corers Mangalam 1200MT/day 750 workers Neer Shree 3300 MT/day 320 staff Neer Shree 1992 Neer Shree 1994

Commercial Production

Total Project cost Capacity

: :

Man power employees Brand Name Product Manufactured

: :

Birla Uttam Birla Uttam Cement OPC 43 grade PPC 53 mpa P.O Aditya Nagar Morak Distt. Kota (Rajasthan) 9/1, R.N. Mukherjee Road Kolkata -700001

Registered Office and Plant :

Head Office

OBJECTIVES OF MANGALAM CEMENT LTD

* * To make continuous efforts to sustain and improve the quality and productivity levels and attain consistent results. To promote the culture for acquiring knowledge and skill to adapt to the new technology development. To encourage team work for finding solutions to the problems 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.

ACHIEVEMENTS
1. 2. 3. 4. 190214 MT cement in Delhi in 1990-91, the highest sale among all other manufacture. Won prestigious company of the year award during the year 1988-89. DSJ corporate excellence award in year 1991-92. ISO9002 certificate from BIS.

CORPORATE PHILOSOPHY
* To adopt the cement of total productivity management in all spheres of excellence in the quality management for attaining perfection. To derive the advantage from the synergies of the group companies. To incorporate within the group a common business philosophy and management practices. To aim at various strategies for growing challenges and opportunity. To promote friendship and camaraderie at all levels of individuals of group companies. To develop knowledge by sharing and interacting with people within and outside the world. To decentralize decision and delegate authority for freedom of value and added activity, shouldering more responsibility to participate in decision making process with autonomy at all levels. To produce quality cement and render services to entire satisfaction of the valued customer and diversification in business.

VISIONS 2008 of MCL

We the members of Mangalam pariwar with persistent pledge to produce excellent quality cement as per the needs of our customer and to achieve optimum utilization of our resources by: * Striving for zero accidents, zero quality complaints and zero downtime. Enhancing individual competencies through continuous human resources development aids and overall excellence through people. Total motivated involvement through participative management activities with high degree of professionalism. Creating clean, environment. conducive, green, healthy and safe

Continuous efforts for total quality management and quality way of life. Endless efforts for total productivity and maintenance by creating the high performing work culture and inculcating the feeling that this is my machine & I maintain it. Fulfillment of social responsibilities of the organization by continuous efforts rural development and upliftment of the surrounding areas.

MARKETING SET UP OF ORGANISATION

CEMENT MARKET SCENERIO
Cement is an item of mass consumption. Cement industry occupies a prominent place in the economy of India. Cement is produced in bulk quantities in India, whose position is fourth in world in cement production. On a long-term basis, by the first decade of 21st century he shall be producing about 140 Million Tones per annum with rise in our per capita consumption to about 120KG Cement. However the demand and supply are the constants which control the cement market effectively. Cement market is highly critical and the philosophy is to sell or sink. It is facing hard competition with other cement producing units situated in clusters. To prepare effective marketing strategy it must be studied about Competitive marketing regarding product, price, place, promotion and packaging.

DISTRIBUTION CHANNEL
Distribution 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 decisions. Cement is regarded as one of the basic material for the growth of any country. So it is very essential that the distribution channels 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 controlled by the government. But after adoption of the decontrol

Distribution Channel of Mangalam Cement Ltd.

Mangalam Cement

Sales Promoter Stockiest Retailer Customers

Direct Selling to Various Govt. Contract

MANGALAM MARKETING POLICY

We believe in.
* * * Stay in business. Stay in profitability. Make our brand visible in market.

* To cater to market demand.

MARKETING DEPARTMENT STRUCTURE

JOINT PRESIDENT

DGM (Rajasthan)

DGM (North)

ASM

ASM

ASM

ASM

ASM

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

ORGANISATION SRUCTURE OF MANGALAM

Managing Director President Joint president Sr. Vice President Vice President Senior General Manager D.G.M Personnel Instruments Electrical Mines Manager Assistant Manager Officers Assistant Officers Junior Officers Sr. Assistant Assistant Stores Accounts

KEY MANAGEMENT OF M.C.L.

(BOARD OF DIRECTOR)
1. 2. 3. 4. 5. Mr. O. P. Gupta Mr. T. S. Vishwanath Mr. N. G. Khaitan Mr. K. K. Mudgil Mr. K. C. Jain Chairmen Director Director Director Managing Director

(TEAM OF EXECUTIVES)

1. Mr. R.C.Gupta 2. Mr. Yashant 3. Mr. S. k. Agarwal 4. Mr. S. K. Pokharna 5. Mr. Anil Mandot 6. Mr. V. Raghupati 7. Mr. R. Giri 8. Mr. R.K. Sodhani 9. Mr. G. S. Chandak 10.Mr. Anoop Walia 11.Mr. N. K. Maheshwari

President (F & A) & company secretary Joint president (commercial) Joint President (Tech.) Sr. Vice President (Tech.) Sr. Vice president (A & T) Vice President (Power plant) Vice President (Elect. & instrumentation) Vice President (Production) Vice President (Sales & Sales Acc.) Vice president (marketing) AVP (Personal)

SWOT ANALYSIS OF M.C.L.

Strengths (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) It is best quality manufacturer of cement. One of the best technologies in Rajasthan. Near Shree largest 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 mangalam Cement limited. Mangalam cements Limited is an ISO 9002 certified company. Its strong dealers and retailers network is also its strength. Superior strength of its products. Superior fineness & consistent quality of its cement. Durability and soundness. Optimum setting time of cement. Ideal water cement ratio. Flexibility in design and usage. Specification in accordance with BIS standards. Electronic packaging system for prompt delivery. Sales depots and offices for prompt delivery and immediate attention for customer grievances.

Weaknesses (a) (b) (c) (d) (e) Worsening power situations, facing companies to invest huge amounts in captive power plants. Infrastructure bottlenecks like transportation for raw material, fuel supply and cement. Inadequacy of finance for modernization. Increasing freight prices. Continuous losses may affect its goodwill and market value of its shares.

Opportunities (a) (b) (c) (d) (e) (f) Its superior quality attracts brand loyal and quality conscious customers. Expected infrastructure growth will add to the current demand. By establishing their own power plant cost of production will be minimized. Mangalam Cements limited can get profit by controlling its cost of production. Experts quote that, only those companies will survive in cement industry, whose cost of production is minimum. By increasing its investments in promotional activities, it can enhance its market share.

Threats (a) (b) (c) (d) Large companies are coming up. This may put pressure on realization in Central and north India. Cement Industry is facing price war, it may complete Mangalam cement limited to reduce its cement price. There is depressed market condition cause by demand recession and commissioning of large capacity in cement resulting in higher competition. If an excess supply condition persists, it may lead to shut down of various cement plants.

CHAPTER-III
Project Profile

PRICING
Meaning of Pricing:Pricing is the Marketing Mix element that produces revenue, the others produce costs. Pricing is also one of the most flexible element, it can be changed quickly. Pricing may be defined as the exchange of goods and Services in terms of money. Without Price there is no Marketing in the Society.

Pricing is a Problem in four types of situations:1. When the firm develops a new product and it is to fix the price of the product for the first time. 2. When Competition forces the firm to initiate a price change. 3. When circumstances so develop that lead the firm to consider initiating a price change. 4. When the company produces several products that have interrelated Demands of costs.

Objectives of Pricing:1. To maximize the profits. 2. Price stability. 3. Competitive situation. 4. Capturing the market.

5. Achieving a target return.

Importance of pricing:Pricing is one of the important element of marketing mix but lately, it has come to occupy the centre stage in marketing wars. The reasons for this are:

1. Product differentiation getting blunted :

As technologies get standardized differentiation among firms of basis of the product is going to get blunted. More product and brand will transcend to a commodity situation.

2. Inter- firm rivalry :

The intensity in inter-firm rivalry increases as the entry and exit barriers in the industry are lowered.

3. Mature products and market :

When the products enter the maturity stage and the markets are also mature, the only way to differentiate the various offers is on the basis of augmented service of price cuts.

4.

Customers Value perception :

Another factor contributing to the importance of the pricing decision is the customer perception of the product and potential value.

5.

Inflation in the economy :

Pricing decisions become important in the inflationary economy inflation affects pricing in two ways: (I) it lowers the purchasing power of the customer and hence a search for low priced substitutes

(II)

it increases a firms cost because of the inputs costing more, thus forcing the price of the product upwards.

Factors affecting pricing decisions:The pricing decisions are influenced by many factors. The price policies should be consistent with pricing objectives. The influencing factors for a price decision can be divided into two groups.

1. 2.

Internal factors and External factors

Internal Factors factors * Organizational factor * Marketing Mix * Product differentiation Suppliers * Cost of the product Economic * Objectives of the firm Condition Government Pricing decision

External * Demand * Competition * * * Buyers *

Methods of determining prices

1. Cost plus pricing method :In this method, the marketer estimates the total cost of Producing or manufacturing the product and then adds it a mark up or the Margin that the firm wants this is needed the most elementary pricing method and many of services and projects are priced accordingly. Mark up price = / (1-r) Where, = Unit cost (fixed cost + Variable cost) R= Expected return on sales expressed as a percent

2. Marginal cost pricing method:In this method, the company may work on the premise of recovering its marginal cost and getting a contribution towards its over- heads. This method works well in a market already dominated by giant firms or characterized by intense competition and the objective of the firm is to get a foothold in the market.

3. B.E.P. pricing method:In this method, total cost of production of a product is divided in two parts Fixed costs and variable costs. The price is determined equal to the total cost of production of product. It is based on the fact in short- run the enterprise will not make any profit but in long-run, it will start to earn profit and higher be the scale of production, more will be the amount of profit to the enterprise because all fixed costs remain constant at all the levels of production and as the fixed costs are recovered in the beginning, the enterprise starts to get profit with the increase in sales above break even point.

4. Rate of return or target pricing method :In this method of price determination, first of all, a rate of return desired by the enterprise on the amount of capital invested by it is determined. The amount of profit desired by the enterprise is the calculated on the basis of this rate of return.

5. Sealed bid pricing :Another form of competition oriented pricing is the sealed bid pricing. In a large number of projects, industrial marketing and marketing to the Government, suppliers are asked to submit their quotations as part of tender. The price quoted reflects the firms cost and its understanding of competition. If the firm was the to price its offer only at its cost level, it may be the lowest bidder and may even get the contract but may not make any profit out of the deal. So, it is important that the firm uses expected profit as different price levels to arrive at the most profitable price.

ELEMENTRY BACKGROUND
Price is one of the marketing mix that generates revenue whereas the other elements produces cost to the. Price is the easiest marketing mix elements that can be adjust; products- Features, distribution channel and even promotion takes more time. Price also helps in commutating the market when the companies intended to value positioning of its product or brand. There are five basic determinants of the price of commodities.

1. 2. 3. 4. 5.

Demand of cement. Its cost of production. Objectives of its producers. Nature of the competition in its market. Govt. policy pertaining to cement industry.

TOTAL CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyers expectations. In general, satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations. If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted. The link between customer satisfaction and customer loyalty is not proportional. Suppose customer satisfaction is rated on a scale from one to five. At a very low level of customer satisfaction (level one), customers are likely to abandon the company and even bad-month it. At levels two to four, customers are fairly satisfied but still find it easy to switch when a better offer comes along. At level five, the customer is very likely to repurchase and even spread good word of mouth about the company. High satisfaction or delight creates an emotional bond with the brand or company, not just a relational performance. Xeroxs senior management found out that its completely satisfied customers are six times more likely to repurchase Xerox products over the following 18 months that its very satisfied customers. The customers of Birla Uttam is satisfied with the better quality and services and satisfy with brand because Birla Uttam has different brand image. It is known by the name only.

CHAPTER - IV
RESEARCH METHODOLOGY

RESEARCH MATHODOLOGY
Research Methodology is a framework, a blue print for the research, which guides the collection and analysis of data. Research methodology is being framed in order to achieve the research objectives. It is an expression of what is expected of the research exercise in terms of result and the analytical input needed to convert data into research findings. Research methodology minimizes the degree of uncertainty involved in the management. Research lays the structure for decision making.

OBJECTIVES OF THE STUDY

* * * * *
To find out how many brands are carried by retailers/dealer. To know R/Ds opinion about the best brand in terms of price

& quality. To know their opinion regarding the most demanded brand. To find out their opinion regarding different attributes of

different brands of cement. To know about the opinion regarding price strategies &

satisfaction of birla uttam cement.

RESEARCH DESIGN
1.
* *

Type of research: -

This research was descriptive in

nature. Descriptive research having following characteristic:This study describes the phenomena under study. The data collected here may relate to the demographic or the behavioral variables of the respondents under study.

2. 3.

Research instrument: Schedule.

DATA COLLECTION method: -

The decision making must be objective and fact based in nature. This is achieved by collecting and analyzing appropriate data. Data may be broadly divided into two categories namely primary data & secondary data. The primary data are those data, which are collected for the first time by the organization, which have already been collected by some other agency but also can be used by organization under consideration. Primary data may be collected by observation, oral investigation and schedule method or by telephone interview. In this study, for primary data collection the researcher has used schedule method. This is written and in organized format containing all questions relevant to soliciting type, in which all questions and answers is specified and comments in the respondents own words are held to a minimum. The unstructured schedule is useful in carrying out in depth interviews where the aim is to probe for attitudes and reasons. For this study we are using structured schedule (Annexure-A) and carry out the personal interviews with users and dealers. Some times the researcher has carried out in-depth interviews and observes the situation to get more in depth information about the topic. In the structured personal interview with users and dealers. Some times we have carried out in-depth interviews and observe the situation to get more in depth information about the topic.

4.

Sampling designing: -

Sampling indicates the selection of a part of a group or an aggregate with a view to obtaining the information about the whole. This aggregate or totality of all members in known as population although they need not is human beings. For this study in designing the sampling plan, we have used the non probability convenience sampling method. The sampling units for this study are dealers, big civil contractors & builders concerning to cement industry. The sample frame has different features covering a variety of units. * Dealers located in Kota proper and dealers at Tahsil and other places in Kota district.

Sampling unit: - The researcher must define the target population that will be surveyed.

5.

Sampling size: -

It means how many people to surveyed normally large sample give more reliable then small but it is difficult to choose large sample size of survey was limited up 100 wholesalers/retailers in Kota division.

6.

Sampling procedure: Convienent sampling.

CHAPTER - V
DATA INTERPRETATION

1.

brands carried by Dealer / Retailer?

No. of Brands 1 2 3 4 More Than 4

No. of Dealer / Retailer 4 14 23 27 32

35 30

No. of Dealer / Retailer

25 20 15 10 5 0 1 2 3 4 More Than 4

No. of Brands

The above table & representation shows that most of the dealers & retailers deal in four brands. No of shops on which 1 brand are available are 4. No of shops on which brand are available are 14. no of shops on which 3 brand are available are 23. no of shops on which 4 brand are available are 27.and there are very few shops which sales more than 32

2.

Brands best in terms of price?

Name of Brands Birla Uttam Ultratech Ambuja Shree Ram Binani Others
35 30 D/R in Percentage 25 20 15 10 5 Birla Uttam Ultratech Ambuja 18.30

D/R in Percentage 33.00% 18.30% 11.60% 15.40% 07.70% 15.00%

33.00

15.40 11.60 7.70

14.00

Shree Ram

Binani

Others

Brand Name

The above table is shows 33% retailers give 1 rank to the market price of Birla Uttam and 18.30%Retailers give 1 rank to the market price of Ultratech, 11.60% retailers give 1 rank to Ambuja, 15.40% retailers give 1 rank to Shree Ram, 7.7% retailers give 1 rank to Binani and 15% other retailers give 1 rank to other brands.

3.

Brands best in terms of quality?

Name of Brands Birla Uttam Ultratech Ambuja Shree Ram Binani Others
35 30 No. of Deailer / Retailer 25 20 15 10 5 0 Birla Uttam Ultratech

D/R in percentage 34% 22% 12% 14% 10% 8%

Ambuja

Shree Ram

Binani

Others

Brand Name

The above table is shows 34% D/R give 1 Rank to the quality of Birla Uttam , 22% D/R give 1 Rank to the quality of Birla Ultratech , 12% D/R give 1 Rank to the quality of Ambuja , 14% D/R give 1 Rank to the quality of Shree Ram , 10% D/R give 1 Rank to the quality of Binani and 8% D/R give 1 Rank to the quality of other brands.

4.

which brand is more demanded?

Name of Brands

No. of

Percenta

Outlets Birla Uttam Ultratech Ambuja Shree Ram Binani Others 20 27 18 11 12 8

ge 35.71% 22.86% 18.51% 10.00% 10.00% 2.92%

8% 13%

21%

Birla Uttam Ultratech Am buja Shree Ram

11% 28% 19%

Binani O thers

The above table shows 35.71% market of Birla Uttam , 22.86% market of Ultratech , 18.57% market of Ambuja , 10% market of Shree Ram , 10% market of Binani and 2.92% market of other . Brands .

5. Reference about the different features(A)

Brand Name

Packaging Rank-1 Rank-2

Birla Uttam Ultratech Ambuja Shree Ram Binani Others

23.33% 15.00% 30.00% 13.86% 17.00%

76.67% 85.00% 70.00% 86.14% 100.00% 83.00%

120 100
76.67 85 86.14 100

Packaging (in %)

70

80 60
23.33

83

Rank-1 Rank-2
30

40 20 0

13.86

15

Birla Uttam

Ultratech

Ambuja

Shree Ram

Binani

Others

Brand Name

This graph shows packaging different brand 23.33% Shopkeeper says packaging of Birla Uttam is No. 1 but 76.67% that is highest in all brand says packaging of Birla Uttam is not so good.

(B) Brand Name

Margin Rank-1 Rank-2 88.34% 86.67%

Birla Uttam Ultratech

11.66% 13.33%

17

Ambuja Shree Ram Binani Others

13.33% 3.33% 5.00% 5.01%

86.67% 96.67% 95.00% 94.99%

120
96.67 86.67 86.67

100 Margin (in %) 80 60 40

88.34

94.99

95

Rank-1 Rank-2

13.33

3.33

0 Birla Uttam Ultratech Ambuja Shree Ram Binani Others

Brand Name

In case of margin Birla Uttam is far behind in comparison to other brand as reference given by D & R. only 11.66% D & R says margin of Birla Uttam is No. 1 but 88.34 % D & R appose this situation .

(C)
Brand Name

Demand Rank-1 Rank-2 46.67% 88.34% 88.34%

Birla Uttam Ultratech Ambuja

53.33% 11.66% 11.66%

5.01

20

11.66

13.33

Shree Ram Binani Others

3.33% 16.69%

96.67% 100.00% 83.31%

120
96.67 88.34 83.31

100 Demand (in %) 80

53.33

88.34

100

60 40

46.67

Rank-1 Rank-2
11.66 11.66 16.69 3.33

20 0

Birla Uttam Ultratech

Ambuja

Shree Ram

Binani

Others

Brand Name

In case of demand Birla Uttam comes first. 53.33% of D & R says demand of Birla Uttam Ultratech and Ambuja 11.66% is No. 1 and in case of D & R says demand is

no.1 as Shree Ram is new brand so its demand is No.1 says only 3.33% D & R .

(D)
Brand Name

Supply Rank-1 Rank-2 73.40% 86.67% 83.34% 96.67%

Birla Uttam Ultratech Ambuja Shree Ram

26.60% 13.33% 16.66% 3.33%

Binani Others
120

3.33% 34.42%

96.67% 66.58%

96.67

73.4

83.34

100 Supply (in %) 80 60

26.6

86.67

96.67

66.58

Rank-1 Rank-2

40 20 0

13.33

16.66

3.33

Birla Uttam Ultratech

Ambuja

Shree Ram

3.33

Binani

Others

Brand Name

In case of Supply of different of brand 26.60% D & R says supply of Birla Uttam is good and rank it first but 73.40% D & R give it second rank it mean not up to mark . supply of other brands like Ultratech , Ambuja ,Shree Ram ,Binani & Others are good that is 13.33% , 16.66% , 3.33% , 3.33% , 34.42% respectively D & R says supply of these brands are no. 1

6. Margin, companies?

which

is

given

34.42

by

different

Margin Less than 2% 2 5%

No. of Dealer / Retailer 58 32

More than 5%

10

60 50 No. of Dealer / Retailer 40 30 20 10 0 Less than 2% 2 5% Margin More than 5%

In case of Margin Birla Uttam is far behind in comparison to other brand as said by D/R. 58 Dealers & Retailers says margin of Birla Uttam is less than 2 % , 32 Dealers & Retailers says that margin in cement is 2-5% which is given by Ultratech , Ambuja , Shree Ram , Binani . And 10 D/R says that margin in cement is more than 5% which is given by other brand.

7.

Strategies adopted by Distributor to attract the customers in terms of Price?

Price Strategies Cash Discount Credit Facilities

No. of D/R 42 34

Others No Scheme

10 14

45 40 No. of Dealers / Retailers 35 30 25 20 15 10 5 0 Cash Discount Credit Facilities Others No Scheme

Price Strategies

Above table justify that 42 D/R says that distributor should give cash discount to attract customer in term of price and 34 D/R says that distributor should provide credit facility to attract the customer, 10 D/R says that distributor should provide other facility to attract the customer and 14 says that distributor should provide no scheme to attract the customer.

8. Opinion regarding the price strategies adopted by Birla Uttam?

Opinion Regarding Price Excellent Very Good Good

No. of Dealer / Retailer 10 35 12

Satisfactory Poor
35 No. of Dealer / Retailer 30 25 20 15 10 5 0 Excellent Very Good Good

23 20

Satisfactory

Poor

Opinion Regarding Price

Above table shows that price strategies adopted by Birla Uttam is not good. 20 D/R says that price strategies of Birla Uttam is poor. 12 & 35 D/R says that price strategies of Birla Uttam are good and very good. And 10 D/R says that a price strategy of Birla Uttam is excellent and 23 D/R are satisfied with price strategies of Birla Uttam.

9.

Dealers / Retailers satisfaction with the price of Birla Uttam?

No. of Dealers / Retailers 100

36

Yes 64

No 36

Yes No 64

The above chart shows that 64 D/R are satisfied and 36 D/R are not satisfied with the price of

10. which is the major competitor of Birla Uttam in the local Market & Surrounding? (According to Dealers / Retailers)

Name of Brands Ultratech Ambuja Shree Ram Binani Others

45 40 No. of Dealer / Retailer 35 30 25 20 15 10 5 0 Ultratech

No. of Dealer / Retailer 42 18 24 7 9

Ambuja

Shree Ram Brand Name

Binani

Others

Above table shows that 42 D/R says that Ultratech is major competitor of Birla Uttam in market , 18 says that Ambuja is major competitor , 24 says that Shree Ram is major competitor , 7 says that Binani is major competitor , and 9 says.

CHAPTER- VI
FINDINGS & CONCLUSION

FINDINGS
1. There are few retailers who have 4 different brands. Generally a dealer keeps only one brand, which is in demand in the area where his outlet is located or he is the franchise of a specific brand.

2. The analysis and market survey shows that Birla Uttam is largest selling brand of M.C.L. in terms of its pricing and profit generation for the manufacturer & dealer as well as this is also a popular brand in terms of quality.

3.

In terms of packaging, dealers are not satisfied with the Birla Uttam though it is a largest selling brand. Most of the dealers are not satisfied with the profit margin by birla Uttam.They are earning more profit by selling Ultratech & Ambuja and other brands.

4. The supply of Birla Uttam cement is not sufficient due to proper distribution channels.

5. In order to attract the customer, dealers mostly use cash discount facility.

CONCLUSION
1. 2. 3. In Kota city Birla Uttam is market leader so its demand is higher. Packaging is the factor which is consider by most suppliers as well as customer. Distribution network is the second consideration factor because the distribution difference among various brand is few but there is no supply according to demand. Packaging is poor because the capacity of begs is less so begs torned. Customers are not satisfied with packaging and schemes which are provide by company. Margin in less in comparison to other brand.

4. 5. 6.

CHAPTER - VII
RECOMMENDATIONS

RECOMMENDATIONS

1. production.
2.

M C L should try to reduce its cost of

Packaging is the factor which is considerd by most suppliers as well as customer. So company should improve the packaging. Company should provide the distribution network. So that brand can be easily available to the customer. Company should provide schemes to attract the customers. Company should provide better supply at regular intervals. Margin should be increased by company. Give priority to dispatch of material. Order booking system should be proper. Avoid over handing of bags from one place to another place. Avoid doubling places. in transportation near two

3.

4.

5.

6.

7. 8. 9.
10.

APPENDIX

MANGALAM CEMENT LIMITED

QUESTIONNAIRE

Name of the firm...................................................................... Name of the owner.... Address... Q. 1 How many Brands a Dealer/Retailer has? (A) 1 (C) 3 (B) 2 (D) 4 (E) More than 4 [ ]

Q 2 Mark one brand which you feel bast in terms of price? 1. Birla Uttam 2. Ultra tech 3. Ambuja 4. Shree Ram 5. Binani 6. Other [ [ [ [ [ [ ] ] ] ] ] ]

Q. 3 Mark one brand which you feel best in terms of quality? 1. Birla Uttam 2. Ultra tech 3. Ambuja 4. Shree Ram 5. Binani 6. Other [ ]

Q.4 which brand is more demanded and why? 1. Birla Uttam

2. Ultra tech 3. Ambuja 4. Shree Ram 5. Binani 6. Other [ ]

Q.5 Mark one brand which you feel best in terms of packaging? 1 2 3 4 5 6 Birla uttam Ultra tech Ambuja Shree Ram Binani Other

Q.Mark one brand on the basis of supply regularity? (A) Less then 2% (C) More then 5% (B) 2-5% [ ]

Q.7 what types of strategy is adopted by the distributor to attract the customer in terms of price? (A) Cash discount (C) Other (B) Credit facilities (D) NO scheme [ ]

Q.8 what is your opinion regarding price strategies adopted by the 'Birla Uttam' in terms of market expectation? (A) Excellent (B) Very good

(C) Good (E) Poor

(D) Satisfactory [ ]

Q 10 Dealer/Retailers satisfaction with the pricing of Birla Uttam? Yes No.

Q.11. which is the major competitor of Birla Uttam in the local market & Surroundings? (According to Dealer/Retailer) (A) Ultratech (C) Shree ram (E) Other (B) Ambuja (D) Binani [ ]

Q12

Any Suggestion regarding price

----------------------------------------------------------------------------------------Q.13 Any recommendation for improvement in Birla Uttam cement -----------------------------------------------------------------------------------------

BIBLIOGRAPHY

Bibliography
Books: Kotler Philip Marketing Management, Eight Edition, Northwestern University Kothari C. R. Research Methodology Second Edition, New Age International (P) Ltd. Garikaparthi Madhavi CRM-The New Face of Marketing first edition, ICFAI University. Schiffman Leon G Consumer Behavior, Prentice-Hall Pvt Ltd, Eight Edition. LoveLock Christopher, Wirtz Jochen Service Marketing, Pearson Education fifth edition. Roa Mohana Rama.K Service Marketing Published by Pearson Education. Shanker Ravi Service Marketing Published by Anurag Jain Edition 2002.

Concerned website: http://www.manglam cement ltd.com www.answer. com Companys Brochure:

Annual report manglamcementltd. www.manglamcement.com