REGIONAL

COLLEGE
Of professional studies & research
Affilated to MJP Rohilkhand University, Bareilly
PilibhitBypass , BAREILLY(UP)

rc
REGIONAL COLLEGE
PROJECT ON

ACC CEMENT
SESSION:2013-14

SUBMITTED BY:
MOHIT KUMAR
B.COM(H)IINDYEAR

ACKNOWLEDGEMENT
I would like to acknowledge my sincere gratitude to
REGIONAL COLLEGE OF BAREILLY, Faculty who had
provide me this beautiful opportunity of getting experience in an
organization.
I am also sincerely grateful to allowing me to be a part of this
repute organization as a summer trainee. I am heartly thankful to
Faculty and all the staff of College for their never ending support
and encouragement extended to me.
Last but not least. I wish to thank all our respondents and those
who directly or indirectly help me to complete my project work.

MOHIT KUMAR

PREFACE
As a student of MBA (MASTER OF BUSINESS ADMINISTRATION) one of
the most reputed professional courses, I have to undergo for the summer internship in the
end of the first year. The attractive feature of the MBA DEGREE is that along with theory
we also get to have the exposure of the practical environment.

The topic for my summer project is:-

ACC Cement
The Project Report revolves around the changes occurred in Sales & Marketing
of Cement and their effectiveness in getting change in consumer perception and standing
in NCR. The objectives are predefined and the task is to accomplish them.

The study was confined geographically to selected areas of NCR. The potential
respondents are the Cement based consumers and the industrial consumers, who have
commercial use for the product. The whole process during the report is well planned, the
primary data collection is done from the respondents.

KHUSHBOO ARYA
MBA IV SEM

DECLARATION
I, KHUSHBOOO ARYA a student of MBA of S.S.V.I. BAREILLY respectively
hereby declare that the Project Report on ACC CEMENT the outcome of

my own work and the same has not been submitted to any other
University/Institute for the award of any degree or any Professional
diploma.

TABLE OF CONTENTS

1. EXECUTIVE SUMMERY
2. SYNOPSIS
3. COMPANY PROFILE
4. COMPRESION OF OTHER CEMENT
5. INTRODUCTION TO THE PROBLEM
6. OBJECTIVE OF THE STUDY
7. RESEARCH METHODOLOGY
8. DATA ANALYSIS
9. RECOGNITON & AWARDS
10.FINDINGS
11.SWOT ANALYSIS
12.RECOMMENDATIONS
13.LIMITATIONS
14.QUESTIONNAIRE
15.CONCLUSION
16.BIBLIOGRAPHY

EXECUTIVE SUMMARY
Nowadays, companies promote their brands in different ways. Advertising, public
relations, point-of-sale promotion, word-of-mouth and promotion through distributors are
the most widely used methods. Among these, advertising has long been the primary
means of promotion as it can reach a large number of consumers over a short period of
time. Compared with advertising which takes a hard sell approach, public relations
activities are less direct as they help build up a company's brand image through
organising or sponsoring events for the community. However, public relations are just as
effective as advertising. Point-of-sale promotion is targeted at new customers or
customers wishing to change brands. Point-of-sale promotion can often achieve shortterm sales effect, but may not be very successful in convincing customers to switch their
brand loyalty.
Marketing and Sales Effectiveness is a category of technologies and services that refers
to improving business results through optimizing the efforts of Marketing and Sales,
which, if properly aligned, make each business group more effective. Marketing and
Sales Effectiveness is frequently seen in Technology, Pharmaceutical, Manufacturing,
Insurance, and Financial markets.
Marketing and Sales Effectiveness encompasses all activities taking place for demand
creation, such as lead generation and marketing communications. It also includes sales
readiness and productivity. Marketing and Sales Effectiveness also requires strategic
business and sales channel alignment for optimum success.
Elements of Marketing and Sales Effectiveness:

Customer Segmentation

Differentiation: Product differentiation

Implementation

This would manifest itself as a set of technologies, business processes, and services
which enable companies to integrate processes and systems to achieve business goals.
Technologies and resources for Marketing and Sales Effectiveness include:
As for word-of-mouth, many people have the misconception that it only works for long
established brands. In fact, word-of-mouth hinges very much on brand quality and service
level. Relatively new brands can also generate word-of-mouth provided that they meet
these two criteria. Professionals, senior company executives and celebrities are the most
effective personalities for word-of-mouth promotion.
Many companies prefer to choose promotion through distributors when they first enter
the mainland market because distributors understand the local market conditions better.
Besides, local distributors have already established extensive networks and can directly
and effectively promote products and brands to consumers and other retailers.

SHREE CEMENT PLANT PICTURE

COMPANY PROFILE

ACC Cement . is an energy conscious & environment friendly business organization.

Having Nine Directors on its board under the chairmanship of Shri.B.G. Bangur, the
policy decisions are taken under the guidance of Shri. H.M. Bangur, Managing Director.
Shri. M.K.Singhi, Executive Director of the Company, is looking after all day-to-day
affairs. The company is managed by qualified professionals with broad vision who are
committed to maintain high standards of quality & leadership to serve the customers to
their fullest satisfaction. The board consists of eminent persons with considerable
professional expertise in industry and field such as banking, law, marketing & finance.
Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the DelhiAhmedabad highway. Amongst the plants in the state it is nearest from its marketing
centers.

Bangur Cement Unit (III, IV, V & Vi) is located at RAS,28 Km from Beawar in pali Dist.
Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to
Delhi.
Philosophy
Let noble thoughts come to us from all over the world. Rigveda

VISION

MISSION

CHALLENGES
Due to the nature of the product - bulky, low priced - it became increasingly difficult to
sell the product across a large territory. Besides, higher realisations in distant territories
did not mean that the gain would accrue to the company since the incremental freight
would neutralise the price advantage. As a result, it became important to arrive at a
median between realisations and distribution costs and earn a comfortable margin.

Marketing presence
Over the last three years, Shree considerably strengthened its marketing presence. Since
the company is based in Rajasthan, the state is the companys principal market.
Rajasthan is Indias largest cement producing state and Shrees is the largest single
location plant in northern India. The companys northern-most positioning within
Rajasthan makes it the closest among all Rajasthan manufacturers to Delhi, Haryana and
some parts of Punjab, a significant cost edge. The company enjoys a market share of
about 11 per cent in north India.

Shree Cement supplemented its attractively low capital investment per tonne with
one of the lowest manufacturing costs in the Indian cement industry.
Starting with 6 lac tonnes per annum of cement in 1985, the capacity was upgraded to 7.6
lac tonnes in 1993. Second plant with installed capacity of 1.24 million tonnes per annum
was commissioned in 1997, in record time of 18 months, raising total capacity to 2.0
MTPA. Even during recession in the industry, it was possible for it to enhance capacity
further to 2.6 MTPA due to its strategic location and better brand image and is the largest
single location plant in North India.The company's installed capacity accounted for 15
percent of Rajsthan's total capacity in 2002-03 and 2.5 percent of Indian's production in
2002-03. Cement production increased 3.42% from 2.747 million tonnes in 2002-03 to
2.841 million tonnes in 2003-04.
Once again, the low cost was the result of scores of initiatives across all levels within the
company. Some resulting in small savings. Some in big. But each primarily driven by the
belief that what was being done could be done better.
Cooler fans were configured to a higher capacity so that heat could recuperate better. A
better raw mix helped Shree reduce the proportion of high cost limestone and saved the
company Rs 0.44 cr

BOARD OF DIRECTORS

Market share in different states

STATE

05-06

06-07

07-08

Rajasthan

11.77%

20.36%

22.17%

Haryana

16.15%

19.03%

23.91%

Delhi

17.67%

17.94%

17.97%

Punjab

5.36%

7.32%

8.29%

U.P.

2.60%

3.98%

4.86%

Uttaranchal

7.32%

7.96%

10.13%

Innovative & Cost Conscious Management

Leadership in the use of alternative waste fuel
First cement plant in India to maximise substitution of imported coal by petcoke
(petroleum industry waste) thereby increasing profitability and saving natural resources.
Initiatives for Global Warming reduction
Pioneered in the application of innovative Electro Static Precipitator technology in DG
power generation to save fuel and combat pollution, and replaced HSD by LDO.
Achieved unity power factor
.. in electrical distribution system to reduce maximum demand, and transmission /
distribution losses
Partial utilization of waste heat
.. for 3 MW power generation.

 Initiator in the use of petcoke for power generation in India

36MW captive thermal power plant under commissioning to generate quality power for
the Plant,avoid transmission and distribution losses, and provide surplus power to
Rajasthan.
SAVINGS : Rs 496.46 million pa
Development of DD Cones
In house development of Deduiling Cones for cyclones resulting in reduction in pressure
drop, higher outputs and lower energy consumption.
Single Roller press for two Ball Mills
Capacity enhancement & utilization of CM-2 Roller press for capacity increase and
energy saving in CM-1 ---Energy Saving - 2.02 kwh / T cement

Trust Comes From Quality At ACC Cement

Quality Philosophy
The company's quality obsession covers the following:

Holistic perspective covering all organisational functions.

Continuous improvement in standards.

Continuous reduction in cost

Strong focus on start of the pipe solutions instead of end-of-th-pipe reviews.

Lapse prevention focus as opposed to a fault-finding culture.

Strong documentation process that enables product complaints to be traced swiftly

and effectively to the root problem.

Performance improvement through knowledge sharing with other plants.

Quality Assurance

Shree markets cement with certificates that testify to the high production
standards achieved by the company.

The company's technical officers reach the customer's site to inspect the
performance of the material.

Shree conducts special meetings with masons and architects, impressing upon
them the quality of its product.

Quality Initiatives
Shree Cement possesses one of the few R&D centres in the Indian cement industry. This
center has been recognised by the DSIR, Government of India. The research team is
headed by a highly qualified and experienced scientist. Shree's R&D center has directly
contributed in the conservation of electrical and thermal energy, an improvement in

product quality, cost reduction, mineral conservation through the intelligent use of fly ash
and a waste reduction in mines through the use of low ash coal.

Computer Aided Mine Planning System

Stacker-Reclaimer for homogenization of lime stone

On-Line Sampling System by Auto Samplers

X Ray Analyzers

Automatic Raw Mix Design Controls by Ramco-Software

On Line Raw meal Blending Control in C.F. Silos

Coal homogenization (Stacker-Reclaimer)

Gypsum homogenization

Fuzzy Logic Control for Kiln operation

Roller Press Control & High Efficiency Separator for particle size distribution
Packing by Automatic Electronic Packers

AMBUJA CEMENT

Ambuja Cements Limited was set up in the late 80s. The cement industry presented an
opportunity of steady growth and ethical competition to the promoters.
However, a decade later, it became one of worlds most efficient cement companies
producing the finest cement in the world at the lowest cost. While adhering to the most
stringent international pollution-control norms.
Today, Ambuja is the 3 rd largest cement company in India, with an annual plant capacity
of 16 million tonnes including Ambuja Cement Eastern Ltd. and revenue in excess of
Rs.3298 crores.
More importantly, its plants are some of the most efficient in the world. With
environment protection measures that are on par with the finest in the developed world.

But the companys most distinctive attribute is its approach to the business.
Ambuja believes its most valuable assets arent cement plants.
They are the people who run the plants.
This unique vision is encapsulated in the companys homegrown philosophy of giving
people the authority to set their own targets, and the freedom to achieve their goals.
Its called I can
This simple vision has created an environment where there are no limits to excellence, no
limits to efficiency. And has proved to be a powerful engine of growth for the company.
As a result, Ambuja has consistently raised the bar in all aspects of the cement industry.
Be it transportation, plant efficiency, brand building or human resource development.
Take a look:
First plant set up in record time
When Ambuja set up its first plant in 1986, the accepted time period for installing a plant
was 3 years.
Ambuja, did it in less than 2 years. And with a significantly lower capital expenditure.
In 1993 the company went a step further and bettered its own record. Ambuja's second
plant was installed in a mere 13 months - the quickest time for setting up a one million
tonne cement plant.
Corporate Social Responsibility
In 1991, the company set up Ambuja Cement Foundation to trigger all-round
development of the people around its cement plants. The Foundation decided to traverse
the difficult but more productive path of helping the people to help themselves. With
great dedication and commitment, the foundation energized the local people to participate

and own their development process. It became a facilitator and catalyst, rather than a onetime fund provider. It developed easily replicable and sustainable modules for water
management, sustainable agriculture and healthcare.
All this effort in discharging its social responsibility has earned the company recognition
across Asia.

Milestones
Building of a cement plant in record 13 months.
2.8 kilometer conveyor belt running through three hills was constructed in just 9 months.
Introduced a completely new system of transporting cement in India the bulk cement
transportation by sea.
Introduced complete blast free limestone mining by using the surface miner in limestone
mining for the first time in India.
Created water reservoirs in used up mines and raised the water table in arid areas.
Our plants have achieved the lowest pollution levels comparable with the most
strongest Swiss standards.
Recognition

National Award for commitment to quality by the Prime Ministr of India.

National Award for outstanding pollution control by the Prime Minister of India.

Eco-Gold Star by TERI

Best Export Award by CAPEXIL.

Award for Corporate Social Responsibility by Business World FICCI

International AwardFor Rural Development by Asian Management Institute

(AIM)

ISO 9002 Quality Certification.

ISO 14000 Certification for environmental systems.

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's
operations are spread throughout the country with 14 modern cement factories, more than
30 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a
workforce of about 10,000 persons and a countrywide distribution network of over 9,000
dealers. ACC's research and development facility has a unique track record of innovative
research, product development and specialized consultancy services. Since its inception
in 1936, the company has been a trendsetter and important benchmark for the cement
industry in respect of its production, marketing and personnel management processes. Its
commitment to environment-friendliness, its high ethical standards in business dealings

and its on-going efforts in community welfare programmes have won it acclaim as a
responsible corporate citizen. ACC has made significant contributions to the nation
building process by way of quality products, services and sharing its expertise.
In the 70 years of its existence, ACC has been a pioneer in the manufacture of cement and
concrete and a trendsetter in many areas of cement and concrete technology including
improvements in raw material utilisation, process improvement, energy conservation and
development of high performance concretes.
ACCs brand name is synonymous with cement and enjoys a high level of equity in the
Indian market. It is the only cement company that figures in the list of Consumer
SuperBrands of India.
The company's various businesses are supported by a powerful, in-house research and
technology backup facility - the only one of its kind in the Indian cement industry. This
ensures not just consistency in product quality but also continuous improvements in
products, processes, and application areas.
ACC has rich experience in mining, being the largest user of limestone, and it is also one
of the principal users of coal. As the largest cement producer in India, it is one of the
biggest customers of the Indian Railways, and the foremost user of the road transport
network services for inward and outward movement of materials and products.
ACC has also extended its services overseas to the Middle East, Africa, and South
America, where it has provided technical and managerial consultancy to a variety of
consumers, and also helps in the operation and maintenance of cement plants abroad.
ACC is among the first companies in India to include commitment to environmental
protection as one of its corporate objectives, long before pollution control laws came into
existence. The company installed pollution control equipment and high efficiency
sophisticated electrostatic precipitators for cement kilns, raw mills, coal mills, power
plants and coolers as far back as 1966. Every factory has state-of-the art pollution control
equipment and devices.

ULTRATECH

UltraTech Cement Limited, a Grasim subsidiary has an annual

capacity of 18.2 million tonnes. It manufactures and markets
Ordinary Portland Cement, Portland Blast Furnace Slag
Cement and Portland Pozzolana Cement.
UltraTech has five integrated plants, five grinding units and three terminals two in
India and one in Sri Lanka. These include an integrated plant and two grinding units of
the erstwhile Narmada Cement Company Limited, a subsidiary, which has been
amalgamated with the company in May 2006.

UltraTech is the country's largest exporter of cement clinker. The company exports over
2.5 million tonnes per annum, which is about 30 per cent of the country's total exports.
The export markets span countries around the Indian Ocean, Africa, Europe and the
Middle East.
The cement division of L&T was demerged in 2004 after Grasim made the 30 per cent
open offer for equity shares, gaining control over the new company, christened UltraTech.
Besides the long term strategic value in the wake of rising demand for cement, with the
growth of housing and infrastructure sectors in the country, the acquisition brings
significant synergy gains to the parent company.

Details of UltraTech's production capacities

Plant / Unit

Kiln capacity
(tpd)

Capacity
(million tpa)

A Composite integrated plants

Andhra Pradesh Cement Works

8000

2.00

Awarpur Cement Works

9500

3.60

Gujarat Cement Works

16000

5.80

Hirmi Cement Works

8250

1.90

Narmada Cement Jafrabad Works

4350

0.50

B Grinding units
Arakkonam Cement Works

1.10

Jharsuguda Cement Works

1.00

Narmada Cement Ratnagiri Works

0.40

Narmada Cement Magdala Works

0.70

West Bengal Cement Works

1.20

Total

18.20

PRODUCTS
UltraTech is India's largest exporter of cement clinker. The company's production
facilities are spread across five integrated plants, five grinding units, and three terminals
two in India and one in Sri Lanka. All the plants have ISO 9001 certification, and all
but one have ISO 14001 certification. While two of the plants have already received
OSHAS 18001 certification, the process is underway for the remaining three. The
company exports over 2.5 million tonnes per annum, which is about 30 per cent of the
country's total exports. The export market comprises of countries around the Indian
Ocean, Africa, Europe and the Middle East. Export is a thrust area in the company's
strategy for growth.
UltraTech's products include Ordinary Portland cement, Portland Pozzolana cement and
Portland blast furnace slag cement.

Ordinary Portland cement

Portland blast furnace slag cement

Portland Pozzolana cement

Cement to European and Sri Lankan norms

INTRODUCTION TO THE PROBLEM

PRODUCT MARKETING
Product marketing deals with the first of the "4P"'s of marketing, which are Product,
Pricing, Place, and Promotion. Product marketing, as opposed to product management,
deals with more outbound marketing tasks. For example, product management deals with
the nuts and bolts of product development within a firm, whereas product marketing deals
with marketing the product to prospects, customers, and others. Product marketing, as a
job function within a firm, also differs from other marketing jobs such as Marcom or
marketing communications, online marketing, advertising, marketing strategy, etc.
A Product Market is something that is referred to when pitching a new product to the
general public. The people you are trying to make your product appeal to is your
consumer market. For example: If you were pitching a new video game console game to
the public, your consumer market would probably be a younger/teenage market
(depending on the type of game). Thus you would carry out market research to find out
how best to release the game. Likewise, a massage chair would probably not appeal to
younger children, so you would market your product to an older generation.

PRODUCT PRICING
Pricing is one of the four p's of the marketing mix. The other three aspects are product,
promotion, and place. It is also a key variable in microeconomic price allocation theory.
Price is the only revenue generating element amongst the 4ps,the rest being cost centers.
Pricing is the manual or automatic process of applying prices to purchase and sales
orders, based on factors such as: a fixed amount, quantity break, promotion or sales
campaign, specific vendor quote, price prevailing on entry, shipment or invoice date,
combination of multiple orders or lines, and many others. Automated systems require
more setup and maintenance but may prevent pricing errors.
The effective price is the price the company receives after accounting for discounts,
promotions, and other incentives.

Price lining is the use of a limited number of prices for all your product offerings. This is
a tradition started in the old five and dime stores in which everything cost either 5 or 10
cents. Its underlying rationale is that these amounts are seen as suitable price points for a
whole range of products by prospective customers. It has the advantage of ease of
administering, but the disadvantage of inflexibility, particularly in times of inflation or
unstable prices.
A loss leader is a product that has a price set below the operating margin. This results in a
loss to the enterprise on that particular item, but this is done in the hope that it will draw
customers into the store and that some of those customers will buy other, higher margin
items.
Promotional pricing refers to an instance where pricing is the key element of the
marketing mix.
The price/quality relationship refers to the perception by most consumers that a
relatively high price is a sign of good quality. The belief in this relationship is most
important with complex products that are hard to test, and experiential products that
cannot be tested until used (such as most services). The greater the uncertainty
surrounding a product, the more consumers depend on the price/quality hypothesis and
the more of a premium they are prepared to pay. The classic example of this is the pricing
of the snack cake Twinkies, which were perceived as low quality when the price was
lowered. Note, however, that excessive reliance on the price/quantity relationship by
consumers may lead to the raising of prices on all products and services, even those of
low quality, which in turn causes the price/quality relationship to no longer apply.
Premium pricing (also called prestige pricing) is the strategy of consistently pricing at,
or near, the high end of the possible price range to help attract status-conscious
consumers. A few examples of companies which partake in premium pricing in the
marketplace include Rolex and Bentley. People will buy a premium priced product
because:
1. They believe the high price is an indication of good quality;

2. They believe it to be a sign of self worth - "They are worth it" - It authenticates
their success and status - It is a signal to others that they are a member of an
exclusive group;
3. They require flawless performance in this application - The cost of product
malfunction is too high to buy anything but the best - example : heart pacemaker.
The term Goldilocks pricing is commonly used to describe the practice of providing a
"gold-plated" version of a product at a premium price in order to make the next-lower
priced option look more reasonably priced; for example, encouraging customers to see
business-class airline seats as good value for money by offering an even higher priced
first-class option. Similarly, third-class railway carriages in Victorian England are said to
have been built without windows, not so much to punish third-class customers (for which
there was no economic incentive), as to motivate those who could afford second-class
seats to pay for them instead of taking the cheaper option. This is also known as a
potential result of price discrimination.
The name derives from the Goldilocks story, in which Goldilocks chose neither the
hottest nor the coldest porridge, but instead the one that was "just right". More
technically, this form of pricing exploits the general cognitive bias of aversion to
extremes. This practice is known academically as "framing". By providing three options
(i.e. small, medium, and large; first, business, and coach classes) you can manipulate the
consumer into choosing the middle choice and thus, the middle choice should yield the
most profit to the seller, since it is the most chosen option.
Demand-based pricing is any pricing method that uses consumer demand - based on
perceived value - as the central element. These include : price skimming, price
discrimination and yield management, price points, psychological pricing, bundle pricing,
penetration pricing, price lining, value-based pricing, geo and premium pricing. Pricing
factors are manufacturing cost,market place,compitition,maket condition,Quality of
product.
Multidimensional pricing is the pricing of a product or service using mutliple numbers.
In this practice, price no longer consists of a single monetary amount (e.g., sticker price

of a car), but rather consists of various dimensions (e.g., monthly payments, number of
payments, and a downpayment). Research has shown that this practice can significantly
influence consumers' ability to understand and process price information

PROMOTION
Promotion involves disseminating information about a product, product line, brand, or
company. It is one of the four key aspects of the marketing mix. (The other three
elements are product marketing, pricing, and distribution.)
Promotion is generally sub-divided into two parts:

Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers,
Internet and Mobile Phones) in which the advertiser pays an advertising agency to
place the ad

Below the line promotion: All other promotion. Much of this is intended to be
subtle enough that the consumer is unaware that promotion is taking place. E.g.
sponsorship, product placement, endorsements, sales promotion, merchandising,
direct mail, personal selling, public relations, trade shows

The specification of these four variables creates a promotional mix or promotional plan.
A promotional mix specifies how much attention to pay to each of the four subcategories,
and how much money to budget for each. A promotional plan can have a wide range of
objectives, including: sales increases, new product acceptance, creation of brand equity,
positioning, competitive retaliations, or creation of a corporate image.

DISTRIBUTION
Distribution (or place) is one of the four elements of marketing mix. An organization or
set of organizations (go-betweens) involved in the process of making a product or service
available for use or consumption by a consumer or business user.

Channels
A number of alternate 'channels' of distribution may be available:

Selling direct, such as via mail order, Internet and telephone sales

Agent, who typically sells direct on behalf of the producer

Distributor (also called wholesaler), who sells to retailers

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just
as important for moving a service from producer to consumer in certain sectors, since
both direct and indirect channels may be used. Hotels, for example, may sell their
services (typically rooms) directly or through travel agents, tour operators, airlines,
tourist boards, centralized reservation systems, etc.
There have also been some innovations in the distribution of services. For example, there
has been an increase in franchising and in rental services - the latter offering anything
from televisions through tools. There has also been some evidence of service integration,
with services linking together, particularly in the travel and tourism sectors. For example,
links now exist between airlines, hotels and car rental services. In addition, there has been
a significant increase in retail outlets for the service sector. Outlets such as estate
agencies and building society offices are crowding out traditional grocers from major
shopping areas.

CHANNEL MOTIVATION
It is difficult enough to motivate direct employees to provide the necessary sales and
service support. Motivating the owners and employees of the independent organizations
in a distribution chain requires even greater effort. There are many devices for achieving
such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin,
to tempt the owners in the channel to push the product rather than its competitors; or a
competition is offered to the distributors' sales personnel, so that they are tempted to push
the product.
MONITORING AND MANAGING CHANNELS
In much the same way that the organization's own sales and distribution activities need to
be monitored and managed, so will those of the distribution chain.
In practice, many organizations use a mix of different channels; in particular, they may
complement a direct salesforce, calling on the larger accounts, with agents, covering the
smaller customers and prospects.

SERVICE
A service is the non-material equivalent of a good. A service provision is an economic
activity that does not result in ownership, and this is what differentiates it from providing
physical goods. It is claimed to be a process that creates benefits by facilitating either a
change in customers, a change in their physical possessions, or a change in their
intangible assets.
By supplying some level of skill, ingenuity,and experience, providers of a service
participate in an economy without the restrictions of carrying stock (inventory) or the
need to concern themselves with bulky raw materials. On the other hand, their investment
in expertise does require marketing and upgrading in the face of competition which has
equally few physical restrictions.

Any service can be completely, consistently and cleary specified by means of the
following 12 standard attributes
1. Service Consumer Benefit(s)
2. Service-specific Functional Parameter(s)
3. Service Delivery Point
4. Service Consumer Count
5. Service Readiness Time(s)
6. Service Support Time(s)
7. Service Support Language(s)
8. Service Fulfillment Target
9. Maximum Impairment Duration per Incident
10. Service Delivering Duration
11. Service Delivery Unit
12. Service Delivering Price
The meaning and content of these attributes are:
1. Service Consumer Benefits describe the (set of) benefits which are callable,
receivable and effectively utilizable for any authorized service consumer and which are
provided to him as soon as he requests the offered service. The description of these
benefits must be phrased in the terms and wording of the intended service consumers.
2. Service-specific Functional Parameters specify the functional parameters which are
essential and unique to the respective service and which describe the most important

dimension of the service output, e.g. maximum e-mailbox capacity per registered and
authorized e-mail service consumer.
3. Service Delivery Point describes the physical location and/or logical interface where
the benefits of the service are made accessible, callable and receivable to the authorized
service consumers. At this point and/or interface, the preparedness for service delivery
can be assessed as well as the effective delivery of the service itself can be monitored and
controlled.
4. Service Consumer Count specifies the number of intended, identified, named,
registered and authorized service consumers which are allowed and enabled to call and
utilize the defined service for executing and/or supporting their business tasks or private
activities.
5. Service Readiness Times specify the distinct agreed times of day when

the described service consumer benefits are

o

accessible and callable for the authorized service consumers at the defined
service delivery point

receivable and utilizable for the authorized service consumers at the

respective agreed service level

all service-relevant processes and resources are operative and effective

all service-relevant technical systems are up and running and attended by the
operating team

the specified service benefits are comprehensively delivered to any authorized

requesting service consumer without any delay or friction.

The time data are specified in 24 h format per local working day and local time, referring
to the location of the intended service consumers.

6. Service Support Times specify the determined and agreed times of day when the
usage and consumption of the contracted services is supported by the service desk team
for all identified, registered and authorized service consumers within the service
customer's organizational unit or area. The service desk is the single point of contact for
any service consumer inquiry regarding the contracted and delivered services. During the
defined service support times, the service desk can be reached by phone, e-mail, webbased entries and/or fax, respectively. The time data are specified in 24 h format per local
working day and local time, referring to the location of the intended service consumers.
7. Service Support Languages specifies the languages which are spoken by the service
desk team(s) to the service consumers calling them.
8. Service Fulfillment Target specifies the service provider's promise of effective and
seamless delivery of the defined benefits to any authorized service consumer requesting
the service within the defined service times. It is expressed as the promised minimum
ratio of the counts of successful individual service deliveries related to the counts of
called indivdual service deliveries. The effective service fulfillment ratio can be
measured and calculated per single service consumer or per consumer group and may be
referred to different time periods (workday, calenderweek, workmonth, etc.)
9. Maximum Impairment Duration per Incident specifies the allowable maximum
elapsing time [hh:mm] between

the first occurrence of a service impairment, i.e. service quality degradation or

service delivery disruption, whilst the service consumer consumes and utilizes the
delivered service,

and the full resumption and complete execution of the service delivery to the
content of the affected service consumer.

10. Service Delivering Duration specifies the promised and agreed maximum period of
time for effectively delivering all specified service consumer benefits to the requesting
service consumer at the defined service delivery point.

11. Service Delivery Unit specifies the basic portion for delivering the defined service
consumer benefits. The service delivery unit is the reference and mapping object for all
cost for service generation and delivery as well as for charging and billing the consumed
service volume to the service customer who has ordered the service delivery.
12. Service Delivering Price specifies the amount of money the service customer has to
pay for the consumption of distinct service volumes. Normally, the service delivering
price comprises two portions

a fixed basic price portion for basic efforts and resources which provide
accessibility and usability of the service delivery functions, i.e. service access
price

a price portion covering the service consumption based on

o

fixed flat rate price per authorized service consumer and delivery period
without regard on the consumed service volumes,

staged prices depending on consumed service volumes,

fixed price per particularly consumed service delivering unit.

SERVICE DELIVERY
The delivery of a service typically involves six factors:

The accountable service provider and his service suppliers (e.g. the people)

Equipment used to provide the service (e.g. vehicles, cash registers)

The physical facilities (e.g. buildings, parking, waiting rooms)

The requesting service consumer

Other customers at the service delivery location

Customer contact

The service encounter is defined as all activities involved in the service delivery process.
Some service managers use the term "moment of truth" to indicate that defining point in a
specific service encounter where interactions are most intense.
Many business theorists view service provision as a performance or act (sometimes
humorously referred to as dramalurgy, perhaps in reference to dramaturgy). The location
of the service delivery is referred to as the stage and the objects that facilitate the service
process are called props. A script is a sequence of behaviours followed by all those
involved, including the client(s). Some service dramas are tightly scripted, others are
more ad lib. Role congruence occurs when each actor follows a script that harmonizes
with the roles played by the other actors.
In some service industries, especially health care, dispute resolution, and social services,
a popular concept is the idea of the caseload, which refers to the total number of patients,
clients, litigants, or claimants that a given employee is presently responsible for. On a
daily basis, in all those fields, employees must balance the needs of any individual case
against the needs of all other current cases as well as their own personal needs.

MARKETING EFFECTIVENESS
Marketing effectiveness is the quality of how marketers go to market with the goal of
optimizing their spending to achieve good results for both the short-term and long-term.
It is also related to Marketing ROI and Return on Marketing Investment (ROMI).
Marketing effectiveness has four dimensions:

Corporate Each company operates within certain bounds. These are determined
by their size, their budget and their ability to make organizational change. Within
these bounds marketers operate along the five factors described below.

Competitive Each company in a category operates within a similar framework

as described below. In an ideal world, marketers would have perfect information
on how they act as well as how their competitors act. In reality, in many
categories have reasonably good information through sources, such as, IRI or
Nielsen. In many industries, competitive marketing information is hard to come
by.

Customers/Consumers Understanding and taking advantage of how customers

make purchasing decisions can help marketers improve their marketing
effectiveness. Groups of consumers act in similar ways leading to the need to
segment them. Based on these segments, they make choices based on how they
value the attributes of a product and the brand, in return for price paid for the
product. Consumers build brand value through information. Information is
received through many sources, such as, advertising, word-of-mouth and in the
(distribution) channel often characterized with the purchase funnel, McKinsey &
Company concept. Lastly, consumers consume and make purchase decisions in
certain ways.

Exogenous Factors There are many factors outside of our immediate control
that can impact the effectiveness of our marketing activities. These can include
the weather, interest rates, government regulations and many others.
Understanding the impact these factors can have on our consumers can help us to
design programs that can take advantage of these factors or mitigate the risk of
these factors if they take place in the middle of our marketing campaigns.

There are five factors driving the level of marketing effectiveness that marketers can
achieve:
1. Marketing Strategy Improving marketing effectiveness can be achieved by
employing a superior marketing strategy. By positioning the product or brand
correctly, the product/brand will be more successful in the market than
competitors products/brands. Even with the best strategy, marketers must execute
their programs properly to achieve extraordinary results.

2. Marketing Creative Even without a change in strategy, better creative can

improve results. Without a change in strategy, AFLAC was able to achieve
stunning results with its introduction of the Duck (AFLAC) campaign. With the
introduction of this new creative concept, the company growth rate soared from
12% prior to the campaign to 28% following it. (See references below, Bang)
3. Marketing Execution By improving how marketers go to market, they can
achieve significantly greater results without changing their strategy or their
creative execution. At the marketing mix level, marketers can improve their
execution by making small changes in any or all of the 4-Ps (Product, Price, Place
and Promotion) (Marketing) without making changes to the strategic position or
the creative execution marketers can improve their effectiveness and deliver
increased revenue. At the program level marketers can improve their effectiveness
by managing and executing each of their marketing campaigns better. It's
commonly known that consistency of a Marketing Creative strategy across
various media (e.g. TV, Radio, Print and Online), not just within each individual
media message, can amplify and enhance impact of the overall marketing
campaign effort. Additional examples would be improving direct mail through a
better call-to-action or editing web site content to improve its organic search
results, marketers can improve their marketing effectiveness for each type of
program. A growing area of interest within (Marketing Strategy) and Execution
are the more recent interaction dynamics of traditional marketing (e.g. TV or
Events) with online consumer activity (e.g. Social Media). (See references below,
Brand Ecosystems) Not only direct product experience, but also any stimulus
provided by traditional marketing, can become a catalyst for a consumer brand
"groundswell" online.
4. Marketing Infrastructure (also known as Marketing Management) Improving
the business of marketing can lead to significant gains for the company.
Management of agencies, budgeting, motivation and coordination of marketing
activities can lead to improved competitiveness and improved results. The overall
accountability for brand leadership and business results is often reflected in an
organization under a title within a (Brand management) department.

5. Exogenous Factors - Generally out of the control of marketers external or

exogenous factors also influence how marketers can improve their results. Taking
advantage of seasonality, interests or the regulatory environment can help
marketers improve their marketing effectiveness.

MARKET STRATEGY
A marketing strategy can serve as the foundation of a marketing plan. A marketing plan
contains a set of specific actions required to successfully implement a marketing strategy.
For example: "Use a low cost product to attract consumers. Once our organization, via
our low cost product, has established a relationship with consumers, our organization will
sell additional, higher-margin products and services that enhance the consumer's
interaction with the low-cost product or service."
A strategy consists of a well thought out series of tactics to make a marketing plan more
effective. Marketing strategies serve as the fundamental underpinning of marketing plans
designed to fill market needs and reach marketing objectives. Plans and objectives are
generally tested for measurable results.
A marketing strategy often integrates an organization's marketing goals, policies, and
action sequences (tactics) into a cohesive whole. Similarly, the various strands of the
strategy , which might include advertising, channel marketing, internet marketing,
promotion and public relations can be orchestrated. Many companies cascade a strategy
throughout an organization, by creating strategy tactics that then become strategy goals
for the next level or group. Each one group is expected to take that strategy goal and
develop a set of tactics to achieve that goal. This is why it is important to make each
strategy goal measurable.

TYPES OF STRATEGIES
Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic strategies. A
brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based
on their market share or dominance of an industry. Typically there are three types
of market dominance strategies:

Leader

Challenger

Follower

Porter generic strategies - strategy on the dimensions of strategic scope and

strategic strength. Strategic scope refers to the market penetration while strategic
strength refers to the firms sustainable competitive advantage.

Product differentiation

Market segmentation

Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on
the cutting edge of technology and business innovation. There are three types:
o

Pioneers

Close followers

Late followers

Growth strategies - In this scheme we ask the question, How should the firm
grow?. There are a number of different ways of answering that question, but the
most common gives four answers:
o

Horizontal integration

Vertical integration

Diversification

Intensification

A more detailed scheme uses the categories:

Prospector

Analyzer

Defender

Reactor

Marketing warfare strategies - This scheme draws parallels between marketing

strategies and military strategies.

BRAND PROMOTION
Advertising
Advertising, in its non-commercial guise, is a powerful educational tool capable of
reaching and motivating large audiences. "Advertising justifies its existence when used in
the public interest - it is much too powerful a tool to use solely for commercial purposes."
- Attributed to Howard Gossage by David Ogilvy

Public service advertising, non-commercial advertising, public interest advertising, cause

marketing, and social marketing are different terms for (or aspects of) the use of
sophisticated advertising and marketing communications techniques (generally associated
with commercial enterprise) on behalf of non-commercial, public interest issues and
initiatives.
In the United States, the granting of television and radio licenses by the FCC is
contingent upon the station broadcasting a certain amount of public service advertising.
To meet these requirements, many broadcast stations in America air the bulk of their
required Public Service Announcements during the late night or early morning when the
smallest percentage of viewers are watching, leaving more day and prime time
commercial slots available for high-paying advertisers.
Public service advertising reached its height during World Wars I and II under the
direction of several governments. Now in days, people average around 500
advertisements a day, found one researcher.[

TYPES OF ADVERTISING
MEDIA
Commercial advertising media can include wall paintings, billboards, street furniture
components, printed flyers and rack cards, radio, cinema and television ads, web banners,
mobile telephone screens, shopping carts, web popups, skywriting, bus stop benches,
human directional, magazines, newspapers, town criers, sides of buses or airplanes
("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins,
taxicab doors, roof mounts and passenger screens, musical stage shows, subway
platforms and trains, elastic bands on disposable diapers, stickers on apples in
supermarkets, shopping cart handles, the opening section of streaming audio and video,
posters, and the backs of event tickets and supermarket receipts. Any place an "identified"
sponsor pays to deliver their message through a medium is advertising.
Covert advertising

Covert advertising is when a product or brand is embedded in entertainment and media.

For example, in a film, the main character can use an item or other of a definite brand, as
in the movie Minority Report, where Tom Cruise's character John Anderton owns a phone
with the Nokia logo clearly written in the top corner, or his watch engraved with the
Bulgari logo. Another example of advertising in film is in I, Robot, where main character
played by Will Smith mentions his Converse shoes several times, calling them "classics,"
because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic
cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the
vehicles.

Television commercials
The TV commercial is generally considered the most effective mass-market advertising
format, as is reflected by the high prices TV networks charge for commercial airtime
during popular TV events. The annual Super Bowl football game in the United States is
known as the most prominent advertising event on television. The average cost of a single
thirty-second TV spot during this game has reached $2.7 million (as of 2007).
The majority of television commercials feature a song or jingle that listeners soon relate
to the product. See Music in advertising.
Virtual advertisements may be inserted into regular television programming through
computer graphics. It is typically inserted into otherwise blank backdrops or used to
replace local billboards that are not relevant to the remote broadcast audience. More
controversially, virtual billboards may be inserted into the background where none
existing in real-life. Virtual product placement is also possible

Infomercials
There are two types of infomercials, described as long form and short form. Long form
infomercials have a time length of 30 minutes. Short form infomercials are 30 seconds to

2 minutes long. Infomercials are also known as direct response television (DRTV)
commercials.
The main objective in an infomercial is to create an impulse purchase, so that the
consumer sees the presentation and then immediately buys the product through the
advertised toll-free telephone number or website. Infomercials describe, display, and
often demonstrate products and their features, and commonly have testimonials from
consumers and industry professionals.

Effect on memories and behavior

The impact of advertising has been a matter of considerable debate and many different
claims have been made in different contexts. During debates about the banning of
cigarette advertising, a common claim from cigarette manufacturers was that cigarette
advertising does not encourage people to smoke who would not otherwise. The
(eventually successful) opponents of advertising, on the other hand, claim that advertising
does in fact increase consumption.
According to many sources, the past experience and state of mind of the person subjected
to advertising may determine the impact that advertising has. Children under the age of
four may be unable to distinguish advertising from other television programs, while the
ability to determine the truthfulness of the message may not be developed until the age of
8.
Over the past fifteen years a whole science of marketing analytics and marketing
effectiveness has been developed to determine the impact of marketing actions on
consumers, sales, profit and market share. Marketing Mix Modeling, direct response
measurement and other techniques are included in this science.

Public perception of the medium

As advertising and marketing efforts become increasingly ubiquitous in modern Western
societies, the industry has come under criticism of groups such as Adbusters via culture
jamming which criticizes the media and consumerism using advertising's own techniques.
The industry is accused of being one of the engines powering a convoluted economic
mass production system which promotes consumption. Recognizing the social impact of
advertising, Mediawatch-uk, a British special interest group, works to educate consumers
about how they can register their concerns with advertisers and regulators. It has
developed educational materials for use in schools.
Public interest groups are increasingly suggesting that access to the mental space targeted
by advertisers should be taxed, in that at the present moment that space is being freely
taken advantage of by advertisers with no compensation paid to the members of the
public who are thus being intruded upon. This kind of tax would be a Pigovian tax in that
it would act to reduce what is now increasingly seen as a public nuisance. Efforts to that
end are gathering more momentum, with Arkansas and Maine considering bills to
implement such a taxation. Florida enacted such a tax in 1987 but was forced to repeal it
after six months, as a result of a concerted effort by national commercial interests, which
withdrew planned conventions, causing major losses to the tourism industry, and
canceled advertising, causing a loss of 12 million dollars to the broadcast industry alone.

Global advertising
Advertising has gone through five major stages of development: domestic, export,
international, multi-national, and global. For global advertisers, there are four, potentially
competing, business objectives that must be balanced when developing worldwide
advertising: building a brand while speaking with one voice, developing economies of
scale in the creative process, maximising local effectiveness of ads, and increasing the
companys speed of implementation. Born from the evolutionary stages of global
marketing are the three primary and fundamentally different approaches to the
development of global advertising executions: exporting executions, producing local
executions, and importing ideas that travel.

DIRECT MARKETING
Direct marketing is a sub-discipline and type of marketing. There are two main
definitional characteristics which distinguish it from other types of marketing. The first is
that it attempts to send its messages directly to consumers, without the use of intervening
media. This involves commercial communication (direct mail, e-mail, telemarketing)
with consumers or businesses, usually unsolicited. The second characteristic is that it is
focused on driving purchases that can be attributed to a specific "call-to-action." This
aspect of direct marketing involves an emphasis on trackable, measurable positive (but
not negative) responses from consumers (known simply as "response" in the industry)
regardless of medium.
If the advertisement asks the prospect to take a specific action, for instance call a free
phone number or visit a website, then the effort is considered to be direct response
advertising.

Benefits and drawbacks

Direct marketing is attractive to many marketers, because in many cases its positive
effect (but not negative results) can be measured directly. For example, if a marketer
sends out one million solicitations by mail, and ten thousand customers can be tracked as
having responded to the promotion, the marketer can say with some confidence that the
campaign led directly to the responses. The number of recipients who are offended by the
junk mail/spam, however, is not easily measured. By contrast, measurement of other
media must often be indirect, since there is no direct response from a consumer.
Measurement of results, a fundamental element in successful direct marketing, is
explored in greater detail elsewhere in this article. Yet since the start of the Internet-age
the challenges of Chief Marketing Executives (CMOs) are tracking direct marketing
responses and measuring results.
While many marketers like this form of marketing, some direct marketing efforts using
particular media have been criticized for generating unwanted solicitations. For example,
direct mail that is irrelevant to the recipient is considered junk mail, and unwanted email
messages are considered spam. Some consumers are demanding an end to direct

marketing for privacy and environmental reasons, which direct marketers are able to
provide by using "opt out" lists, variable printing and more targeted mailing lists.
Channels
Some direct marketers also use media such as door hangers, package inserts, magazines,
newspapers, radio, television, email, internet banner ads, pay-per-click ads, billboards,
transit ads. And according to Ad Age, "In 2005, U.S. agencies generated more revenue
from marketing services (which include direct marketing) than from traditional
advertising and media
Direct mail
The most common form of direct marketing is direct mail, sometimes called junk mail,
used by advertisers who send paper mail to all postal customers in an area or to all
customers on a list.
Any medium that can be used to deliver a communication to a customer can be employed
in direct marketing. Probably the most commonly used medium for direct marketing is
mail, in which marketing communications are sent to customers using the postal service.
The term direct mail is used in the direct marketing industry to refer to communication
deliveries by the Post Office, which may also be referred to as "junk mail" or "admail"
and may involve bulk mail.
Telemarketing
The second most common form of direct marketing is telemarketing,[citation needed] in which
marketers contact consumers by phone. The unpopularity of cold call telemarketing (in
which the consumer does not expect or invite the sales call) has led some US states and
the US federal government to create "no-call lists" and legislation including heavy fines.
This process may be outsourced to specialist call centres.
Email Marketing
Email Marketing may have passed telemarketing in frequency at this point,[citation needed] and
is a third type of direct marketing. A major concern is spam.

Broadcast faxing
A fourth type of direct marketing, broadcast faxing, is now less common than the other
forms.

Couponing
Couponing is used in print media to elicit a response from the reader. An example is a
coupon which the reader cuts out and presents to a super-store check-out counter to avail
of a discount. Coupons in newspapers and magazines cannot be considered direct
marketing, since the marketer incurs the cost of supporting a third-party medium (the
newspaper or magazine); direct marketing aims to circumvent that balance, paring the
costs down to solely delivering their unsolicited sales message to the consumer, without
supporting the newspaper that the consumer seeks and welcomes.
Direct response television marketing
A related form of marketing is infomercials. They are typically called direct response
marketing rather than direct marketing because they try to achieve a direct response via
broadcast on a third party's medium, but viewers respond directly via telephone or
internet.
TV-response marketing--i.e. infomercials--can be considered a form of direct marketing,
since responses are in the form of calls to telephone numbers given on-air. This both
allows marketers to reasonably conclude that the calls are due to a particular campaign,
and allows the marketers to obtain customers' phone numbers as targets for
telemarketing. Under the Federal Do-Not-Call List rules in the US, if the caller buys
anything, the marketer would be exempt from Do-Not-Call List restrictions for a period
of time due to having a prior business relationship with the caller. Major players are firms
like QVC, Thane Direct, and Interwood Marketing Group then cross-sell, and up-sell to
these respondents.
Direct selling

Direct selling is the sale of products by face-to-face contact with the customer, either by
having salespeople approach potential customers in person, through indirect means such
as Tupperware parties.

Integrated Campaigns
For many marketers, a comprehensive direct marketing campaign employs a mix of
channels. It is not unusual for a large campaign to combine direct mail, telemarketing,
radio and broadcast TV, as well as online channels such as email, search marketing, social
networking and video. In a report conducted by the Direct Marketing Association, it was
found that 57% of the campaigns studied were employing integrated strategies. Of those,
almost half (47%) launched with a direct mail campaign, typically followed by e-mail
and then telemarketing.

PUBLICITY
Publicity is the deliberate attempt to manage the public's perception of a subject. The
subjects of publicity include people (for example, politicians and performing artists),
goods and services, organizations of all kinds, and works of art or entertainment.
From a marketing perspective, publicity is one component of promotion. The other
elements of the promotional mix are advertising, sales promotion, and personal selling.
Promotion is one component of marketing.
But the publicist cannot wait around for the news to present opportunities. They must also
try to create their own news. Examples of this include:

Contest

Art exhibitions

Event sponsorship

Arrange a speech or talk

Make an analysis or prediction

Conduct a poll or survey

Issue a report

Take a stand on a controversial subject

Arrange for a testimonial

Announce an appointment

Invent then present an award

Stage a debate

Organize a tour of your business or projects

Issue a commendation

The advantages of publicity are low cost, and credibility (particularly if the publicity is
aired in between news stories like on evening TV news casts). New technologies such as
weblogs, web cameras, web affiliates, and convergence (phone-camera posting of
pictures and videos to websites) are changing the cost-structure. The disadvantages are
lack of control over how your releases will be used, and frustration over the low
percentage of releases that are taken up by the media.
Publicity draws on several key themes including birth, love, and death. These are of
particular interest because they are themes in human lives which feature heavily
throughout life. In television serials several couples have emerged during crucial ratings
and important publicity times, as a way to make constant headlines. Also known as a
publicity stunt, the pairings may or may not be truthful.

Effectiveness of publicity
The theory any press is good press has been coined to describe situations where bad
behaviour by people involved with an organization or brand has actually resulted in
positive results, due to the fame and press coverage accrued by such events.

OBJECTIVE OF THE STUDY

Our main objective of the study was to find out the Sales & Marketing of Shree Cement
as well as Brand Promotion of the Company to Current market.
I had made some extensive objectives for my study which are as listed below.

1. To determine the current status of the Shree Cement.

2. To find out the customers response towards Shree Cement.

3. To study the Sales & Marketing and satisfaction level of customers in different
attributes of Shree Cement.

RESEARCH METHODOLOGY
Research is a common language refers to a search of knowledge. Research is scientific &
systematic search for pertinent information on a specific topic, infect research is an art of
scientific investigation. Research Methodology is a scientific way to solve research
problem. It may be understood as a science of studying how research is dont
scientifically. In it we study various steps that are generally adopted by researchers in
studying their research problem. It is necessary for researchers to know not only know
research method techniques but also technology.
The scope of Research Methodology is wider than that of research methods.
The research problem consists of series of closely related activities. At times, the first
step determines the native of the last step to be undertaken. Why a research has been
defined, what data has been collected and what a particular methods have been adopted
and a host of similar other questions are usually answered when we talk of research
methodology concerning a research problem or study. The project is a study where focus
is on the following points:
RESEARCH DESIGN
A research design is defined, as the specification of methods and procedures
for acquiring the Information needed. It is a plant or organizing framework for doing the
study and collecting the data. Designing a research plan requires decisions all the data
sources, research approaches, Research instruments, sampling plan and contact methods.

Research design is mainly of following types: 1. Exploratory research.

2. Descriptive studies
3. Casual studies

EXPLORATORY RESEARCH

The major purposes of exploratory studies are the identification of

problems, the more precise Formulation of problems and the formulations of
new alternative courses of action. The design of exploratory studies is
characterized by a great amount of flexibility and ad-hoc veracity.
DESCRIPTIVE STUDIES
Descriptive research in contrast to exploratory research is marked by the prior
formulation of specific research Questions. The investigator already knows a substantial
amount about the research problem. Perhaps as a Result of an exploratory study, before
the project is initiated. Descriptive research is also characterized by a Preplanned and
structured design.
CASUAL OR EXPERIMENTAL DESIGN
A casual design investigates the cause and effect relationships between two or
more variables. The hypothesis is tested and the experiment is done. There are following
types of casual designs:
I.

After only design

II.

Before after design

III.

Before after with control group design

IV.

Four groups, six studies design

V.

After only with control group design.

VI.

Consumer panel design

VII.

Exposit facto design

B)

DATA COLLECTION METHOD

PRIMARY

SECONDARY

Direct personal Interview

Indirect personal Interview

Published Sources

Unpublished
Sources

Information from correspondents

Govt.publication

Mailed questionnaire

Report Committees & Commissions

Question filled by enumerators.

Private Publication
Research Institute

Period of Study: This study has been carried out for a maximum period of 8 weeks.
Area of study: The study is exclusively done in the area of marketing. It is a process
requiring care, sophistication, experience, business judgment, and imagination for which
there can be no mechanical substitutes.
Sampling Design: The random sampling is done because any probability sampling
procedure would require detailed information about the universe, which is not easily
available further, it being an exploratory research.
Sample Procedure: In this study random sampling procedure is used. Random
sampling is preferred because of some limitation and the complexity. Area sampling is
used in combination with random sampling so as to collect the data from different regions
of the city and to increase reliability.

Sampling Size: The sampling size of the study is 50 Dealers and 100 Retailers.
Method of the Sampling:
Probability Sampling
It is also known as random sampling. Here, every item of the universe has an equal
chance or probability of being chosen for sample.
Probability sampling may be taken inform of:
Simple Random Sampling
A simple random sample gives each member of the population an equal chance of being
chosen. It is not a haphazard sample as some people think! One way of achieving a
simple random sample is to number each element in the sampling frame (e.g. give
everyone on the Electoral register a number) and then use random numbers to select the
required sample.
Random numbers can be obtained using your calculator, a spreadsheet, printed tables of
random numbers, or by the more traditional methods of drawing slips of paper from a hat,
tossing coins or rolling dice.
Systematic Random Sampling
This is random sampling with a system! From the sampling frame, a starting point is
chosen at random, and thereafter at regular intervals.
Stratified Random Sampling
With stratified random sampling, the population is first divided into a number of parts or
'strata' according to some characteristic, chosen to be related to the major variables being
studied. For this survey, the variable of interest is the citizen's attitude to the
redevelopment scheme, and the stratification factor will be the values of the respondents'
homes. This factor was chosen because it seems reasonable to suppose that it will be
related to people's attitudes

Cluster and area Sampling

Cluster sampling is a sampling technique used when "natural" groupings are evident in a
statistical population. It is often used in marketing research. In this technique, the total
population is divided into these groups (or clusters) and a sample of the groups is
selected. Then the required information is collected from the elements within each
selected group. This may be done for every element in these groups or a subsample of
elements may be selected within each of these groups.
Non Probability Sampling
It is also known as deliberate or purposive or judge mental sampling. In this type of
sampling, every item in the universe does not have an equal, chance of being included in
a sample.
It is of following type:
Convenience Sampling
A convenience sample chooses the individuals that are easiest to reach or sampling that
is done easy. Convenience sampling does not represent the entire population so it is
considered bias.
Quota Sampling
In quota sampling the selection of the sample is made by the interviewer, who has been
given quotas to fill from specified sub-groups of the population.
Judgment Sampling
The sampling technique used here in probability > Random Sampling.
The total sample size is 50 Dealers and 100 Retailers.
Data Collection : - Data is collected from various customers through personal
interaction. Specific questionnaire is prepared for colleting data. Data is collected with
mere interaction and formal discussion with different respondents and we collect data in
Shree Cement, Ambuja, ACC, & Ultratech and face to face contact with the persons

from whom the information is to be obtained (known as informants). The interviewer

asks them questions pertaining to the survey and collects the desired information.
Thus, the we collect data about the working conditions of the workers of Shree Cement;
we worked at Shree Cement and contact the workers and obtain the information. The
information obtained are first hand or original in character.

DATA ANALYSIS
SURVEY FOR RETAILERS
1 How many brands having you currently?

2 Which is more demandable brand according to you in the

current market?

3 Are you keep SHREE CEMENT?

4 Is this more profitable comparisons to others ?

5 Which brand is more marginable ?

6 Which brand having the large market share according to you?

7 On what basis you give purchase decision to the retailers:-

8 What influence your sales decision?

9 Which brand would you like to Sale mostly?

10 How much the retailers intend to spend on Cement at a time?

11 How frequently times the retailers demand for the SHREE

CEMENT?

12 Which branded companies having the larger Ad in the Current

market?

S
URVEY FOR DEALERS
1 Please tick the name of the brands which you keep?

2 What affects retailers purchase decision?

3. Are you using SHREE CEMENT?

4. Are you satisfied with SHREE CEMENT?

5
How much did you like the products quality wise of SHREE CEMENT?

6.
If you want to go on another brand then on which brand will you go?

SHREE - RECOGNITION AND AWARDS

 Reckoned as 2nd fastest growing mid sized Company in 2006

by Business Today a national level magazine (6 May 07
edition)
4 star rating from Whitehopleman UK, an International

Cement Consultants, since 2000 (No one in world has been

rated 5 star!!)
Golden Peacock Award - 2007 for Excellence in Corporate

Governance
Golden Peacock Award - 2007 in recognition of excellent
Environ-ment Management practices
National Awards for Energy Conservation from Ministry of
Power, Govt. of India
CII National Award for Excellence in Energy
Management 2006
National Safety Awards by Ministry of Labour, Govt. of
India
Best Annual Report Award by Rajasthan Chamber of
Commerce and Industry in 2007
Amity Corporate Excellence Award by Amity International
Business School, Noida.
ICWAI National Award 2005 for excellence in cost management.

Achievements

Capacity Utilization

Cement and clinker production

Product mix-blended cement

Kiln production

Manufacturing cost

Power consumption

AWARDS
2007-08 - Best Employer Award for Rajasthan for the year 2007
2007-08 - Golden Peacock Award for Excellence in Corporate Governance in
manufacturing sector.
2007-08 - Second prize for National Energy Conservation by Bureau of Energy

Efficiency in cement sector for the year 2007.

2007-08 - National awards for Excellence in Water Management as Water
efficient Unit by CII, 2007.
2007-08 - NCCBM award for Best Improvement Electrical Energy Performance
during year 2005-06.
2007-08 - NCCBM award for Best Improvement in Thermal Energy Performance
during year 2006-07.
2007-08 - NCCBM award for Best environmental excellence in plant operation
during 2006-07.
2007-08 - NCCBM award for 2nd Best Quality excellence during year 2006-07.
2007-08 - India Manufacturing Excellence award by Frost and Sullivan for the
year 2007.
2007-08 - 9th Golden Peacock Award for Environment Management Award 2007.
2007-08 - Greentech Environmental Excellence Award 2007.
2007-08 - Golden Peacock Award for excellence in Corporate Governance 2007.
2007-08 - Launch of Tuff Cemento 3556 in March 2007
2007-08 - Kush khera Grinding Unit (KKGU)-I Commenced its Production from
July 2007.
2007-08 - Kush khera Grinding Unit (KKGU)-II Commenced its Production from
December 2007.
2007-08 - Unit - V at RAS. August 2007.

FINDINGS
Mostly the Dealers using SHREE CEMENT Brand for sale.
According to the Market Survey SHREE CEMENT, ACC & UKTRATECH
having the large market share comparison to the others.
But the customer know more things about SHREE CEMENT due to maximum
advertisement and more stability in the market as market strategy.
SHREE CEMENT having more monopoly in comparison to other brands such.
In comparison to other companies SHREE CEMENT, holding big size of
advertisement and on other Medias.

 Mean while when I was surveying the customers demand more SHREE
CEMENT as well as ACC due to customers demand as SHREE CEMENT
having large market share in advertisement.

SWOT ANALYSIS
STRENGTH:
Brand recognition.
Brand Standardized products.
Capable of surviving in Long run.
Products are familiar to consumer.
Good efforts for Research & Development facilities.
Result oriented products.
Financially sound.
Good Diversified Management.
Nation-wide presence.

WEAKNESS:
Presence of lower priced products makes market weaker in some areas.
Nation wide same strategy.
No endorser of brand.

OPPORTUNITIES:
The markets of rural areas are somewhat remains potentially untouched.
Now the diversified strategies should be adopted, as it has been long in adhesives.
No established competitor is the potential advantage.
The niche of the market is the rural area and the plenty of opportunities are lying
there.

THREATS:
Due to Industrial policies and easy avail of finance the competition can
become tougher in coming years.
Due to the presence of the low priced firms the competition is proving to be
tougher.
Aggressive advertising and promotional efforts of competitors are making a
shift in the market share of the company.

RECOMMENDATIONS
Promotional activities-This is one of the primary things that are required within the
company. During my visits to different Company, I came across that there is no
awareness of the company in the form of posters, stands and other related things. One
thing that I would like to recommend would be the introduction of more promotional
activities so as to generate more revenues for the company. Company can introduce
more- Schemes
Get together for channel partners
Brand recognition in the market
To Keep more inventories
Advertisement in Industrial Area
Focus more on b and c category Companies - This is also one of the prime
things that are required. With around 80% of the revenues coming from less than 20%
of the Companies, more focus should be given on b and c category companies. A
category agents are said to be the agents who contribute more than Rs.50000 of
revenues per month. Companies should focus more on b and c category clients so
that more of these clients can be converted into a category.
Co-ordination among different channels-With agency office in a different building
and no direct control over the district operations, transparency between different
channels is lacking. With the plan for executives that I have suggested above, there
could be more transparency that can come in the overall operations of the NCR
region.
Different commission slabs for different channels- With commissions being one of
the prime motives for the sales Executive to do business with different companies,

more and more emphasis should be given on the commissions that are rendered to the
agents.
Very limited corporate tie ups-This should be one of the most important thing that
should be on the agenda for the travel category. A corporate tie-up can easily deliver a
business of more than 50000 per month. Other than that, the contract is on a long term
basis. This therefore helps in getting an easy business for the company. Therefore,
from my point of view, more emphasis should be given on this category of business
as well.

LIMITATIONS
Although every effort has been in to collect the relevant information through the sources
available, still some relevant information could not be gathered.

Busy Schedule of Concerned Executives: The concerned executives were having

very busy schedule because of which they were reluctant to give appointment.
Time: The time duration could not provide ample opportunity to study every detail of
the company.
Unawareness: Executives were unaware of many terms related to same while asking
to them.
Confidential Information: As the company on account of confidential report has not
disclosed some figures. Moreover, in some cases separate accounts of division are not
separately maintained thereby, leading to restrictions in study.

QUESTIONNAIRE
(Questionnaire for Retailers)
I am the student of RBMI, GREATER NOIDA, Conducting a market
research to know your brand perception in the Cement segment. kindly
extend your cooperation in filling this questionnaire & enable us in doing the
research successfully.

1 How many brands having you currently?

(A) Two
(B) Three
(C) Four
(D) More than four
2 Which is more demandable brand according to you in the current
market?
(A) SHREE CEMENT
(B) AMBUJA
(C) ACC
(D) ULTRATECH
3 Are you keep SHREE CEMENT?
(A) Yes
(B) No
4 Is this more profitable comparisons to others ?
(A) Yes

(B) No

5 Which brand is more marginable?

(A) SHREE CEMENT
(C) ACC

(B) AMBUJA
(D) ULTRATECH

6 Which brand having the large market share according to you?

(A) SHREE CEMENT
(C) ACC

(B) AMBUJA
(D) ULTRATECH

7 On what basis you give purchase decision to the retailers:-

(A) Price
(C) Availability
(E) Others (Please specify)

(B) Quality
(D) Brand Image

8 What influence your sales decision?

(A) Advertisement
(B) Sales Person
(C) Reference Group
(D) Price
9 Which brand would you like to Sale mostly?
(A) SHREE CEMENT
(B) AMBUJA
(C) ACC
(D) ULTRATECH
10 How frequently times the retailers demand for the SHREE
CEMENT?
(A) 1-2 Times
(B) 2-4 Times
(C) 4-6 Times
(D) 6-8 Times
11 Which branded companies having the larger Ad in the Current
market?
(A) SHREE CEMENT
(C) ACC

(B) AMBUJA
(D) ULTRATECH

PERSONAL I NFORMATION:-

Name:- _ _ _ _ _ _ _ _ _
Address:- _ _ _ _ _ _ _ _ _
Ph:_________
Gender:- _ _ _ _ _ _ _ _ _

E-mail ID:- _ _ _ _ _ _ _ _
Occupation:- _ _ _ _ _ _ _

Comments :- _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Sign :- _ _ _ _ _ _ _ _ _
Thanks for giving your precious time.
(Questionnaire for Dealers)

1 Please tick the name of the brands, which you keep?

(A) SHREE CEMENT
(C) ACC

(B) AMBUJA
(D) ULTRATECH

2 What affects retailers purchase decision?

(A)
(B)
(C)
(D)

Rely on Sales Executive

Friend Circle
Advertisement
Word of Mouth

3. Are you using SHREE CEMENT?

(A) Yes
(B) No
4. Are you satisfied with SHREE CEMENT?
(A) Yes
(B) No
5 How much did you like the products quality wise of SHREE CEMENT?
(A) Very good
(B) Average
(C) Good
(D) Poor
6. If you want to go on another brand then on which brand will you go?
(A) ULTRATECH
(C) ACC
PERSONAL I NFORMATION:-

(B) AMBUJA

Name :- _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Age :Sex:(A) Male
(B) Female
Place:- _ _ _ _ _ _ _ _ _ _ _ _ _

Sign:- _ _ _ _ _ _ _ _ _ _

Comments: - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Sign: - _ _ _ _ _ _ _ _ _
Thanks for giving your precious time.

CONCLUSION

However, when studied from the point of view of a customer there seems to be no major
difference among the SHREE CEMENT brands in a segment as far as performance is
concerned. The brand perception is dependant mostly on the peripheral cues depending
upon the nature and quality of the service provided along with the pricing, maintenance.
It seems so! It seems as an undercurrent sentiment is flowing and the perception of the
customers is changing according to it. So this might be the reason that despite Verna
faring so high on the performance parameters still lags on the account of converted sales.

The study shows that brand perception is something which starts building up before a
SHREE CEMENT is purchased and goes on with its use and is reflected in the
recommendations the customer makes to his acquaintances for the same products. Also,
its seen that the customer might not be using the SHREE CEMENT products still he
holds the perceptions about it.

Brand personality of SHREE CEMENT product is

enforced by the sellers in the mindsets of the customers and the customers react to it by
forming their perceptions about the SHREE CEMENT products and this reflects in the
overall brand image of the products. So brand image and brand personality complement
each other and the brand perception aids the building of brand image.

Marketing and Sales Effectiveness is a category of technologies and services that refers
to improving business results through optimizing the efforts of Marketing and Sales,
which, if properly aligned, make each business group more effective. Marketing and
Sales Effectiveness is frequently seen in Technology, Pharmaceutical, Manufacturing,
Insurance, and Financial markets.
This would manifest itself as a set of technologies, business processes, and services
which enable companies to integrate processes and systems to achieve business goals.
Technologies and resources for Marketing and Sales Effectiveness include:
As for word-of-mouth, many people have the misconception that it only works for long
established brands. In fact, word-of-mouth hinges very much on brand quality and service

level. Relatively new brands can also generate word-of-mouth provided that they meet
these two criteria. Professionals, senior company executives and celebrities are the most
effective personalities for word-of-mouth promotion.
Many companies prefer to choose promotion through distributors when they first enter
the mainland market because distributors understand the local market conditions better.
Besides, local distributors have already established extensive networks and can directly
and effectively promote products and brands to consumers and other retailers.
Finally the major point that emerges out of this detailed study is a caution for the
SHREE CEMENT company. It says that there is no doubt that Indian SHREE CEMENT
market may be growing with a double digit figure still the SHREE CEMENT companies
have a long way to travel to convince their customers about the brand personality of their
SHREE CEMENT and how it suits the prospective buyers. Simply because it simply is
not a guarantee that how so ever good the customer might be holding the brand
perception and how so ever good the brand image may be it is not a guarantee that it will
convert into sale. SHREE CEMENT just like clothes and accessories suit the style and
persona of a person and since all products will become commodity someday the key to
sell and excel in the market will lie with a person who knows how to use the perceptions
of the customers to its use and sell the SHREE CEMENT products coz ultimately only
that products survives which sells!

BIBLIOGRAPHY

BOOKS

Kotler, Philip and Armstrong, Graw - Principles of Marketing, Pearson

Education, New Delhi 2007.

Kotler, Philip - Marketing Management: Analysis, Planning, Implementations

and Control, Pearson Education, New Delhi. 2003, 11th ed.

Sharma J K - Business Statistics (Pearson Education)

Beri - Marketing Research (Tata McGraw-Hill), 1993, 2nd ed.

DAILYS & JOURNALS

Business World

Business Today

The Economic Times

INTERNET

www.google.com