Beruflich Dokumente
Kultur Dokumente
ON
“A Study of Customer Perception about
Cement Purchasing”
OM KOTHARI INSTITUTE OF
MANAGEMENT & RESEARCH
(Affiliated to University of Kota, Kota, Approved by All-India Council for Technical
Education-Government of India and Sponsored by Om Kothari Foundation, Kota)
CERTIFICATE
This is to certify that Miss Vinita Piplani a student of BBA II Year at Om Kothari
Institute of Management and Research has completed Training Project Report
entitled “Customer Perception about Cement Purchasing”. The project has been
completed after studying for one year in BBA course and for partially fulfilling the
requirements for award of degree of Bachelor of Business Administration of
University of Kota, Kota.
The Training Project Report has been completed under the guidance of
“Ms. Manupriya Gaur” of OKIMR and is as per norms and guidelines provided.
Kota
Date:
A-1, Special I.P.I.A. Jhalawar Road, Kota-324005
: 0744-2490878, 2490402, E-mail: oki_mr@rediffmail.com
Fax: 0744-2438069
OM KOTHARI INSTITUTE OF
MANAGEMENT & RESEARCH
(Affiliated to University of Kota, Kota, Approved by All-India Council for Technical
Education-Government of India and Sponsored by Om Kothari Foundation, Kota)
CERTIFICATE
This is to certify that Ms. Vinita Piplani a student of BBA II Year at Om Kothari
Institute of Management and Research, has submitted Training Project Report
entitled “Customer Perception about Cement Purchasing” The project has been
completed after studying for one year in BBA course and for partially fulfilling the
requirements for award of degree of Bachelor of Business Administration of
University of Kota, Kota.
Prof. Prof.
Internal Examiner External examiner
Kota
Date:
A-1, Special I.P.I.A. Jhalawar Road, Kota-324005
: 0744-2490878, 2490402, E-mail: oki_mr@rediffmail.com
Fax: 0744-2438069
PREFACE
Marketing is a subject for all people and all seasons. We all live be
exchanging something so marketing is the study of exchange process,
how transations are initiated, motivated, facilitated, and consummated.
Submitted By:
Vinita Piplani
BBA Part-II
ACKNOWLEDGEMENTS
The word ‘Cement’ may be defined as a substance, which can join two
of more pieces of some other substance together to form a unit mass.
Cement is a fine power which when mixed with water and allowed to
set and harder can join different components together to give a strong
structure mechanically. Thus cement can be used as a founding material
for bricks of for founding solid particles of different sizes (rubble
masonry) to form a monolish.
At last the project will be beneficial both for company as well as reader
who want to gain inside knowledge about Customer Perception about
Cement Purchasing.
The questionnaire and direct interview are used as the sources of data.
The current problem that the company is facing is also identified with
their probable suggestions are included in the report. This report will be
beneficial for both the company and for those who want to gain
knowledge about the cement industry and its prospects.
All cement having two grades OPC & PPC generally the OPC cement
is more preferred by the wholesaler / retailer. But in the case of final
customer very few customer are having knowledge about OPC & PPC.
the various factors that affect the demand of cement as well as
particular brand sales are like quality, prices, season, promotion
strategy of company or competitors, relationship with suppliers,
discounts and supply position because all these helps to create demand
of cement. But the quality is the factor, which is considered by most of
suppliers as well as customer. This is reason that all cement company’s
emphasis on quality in their advertising.
Price is the second consideration factor because the price difference
among various brands is generally very less as price determined for
basis and CMA determine the prices. There is no price elasticity of
demand as cement is essential commodity its demand is not influenced
with increases or decreases prices in case of final consumer. But
wholesales and retailer are slightly influenced by prices.
There is no seasonal impact on demand but generally Apr., May and
June are considered as a peak time. promotional strategies of company /
competitors have a crucial role in positioning the brand image as it is
clear that quality is most important factor, so advertisement mainly
emphasis on quality (for Ambuja- Virat compressive strength and for
Birla plus har Nirman ki jan).
CONTENTS
Certificates
Preface
Declaration
Acknowledgement
Executive Summary
Chapter-6 Suggestions
Bibliography
Annexure
Questionnaire
CHAPTER 1
INTRODUCTION OF CEMENT
INDUSTRY
INTRODUCTION OF CEMENT INDUSTRY IN
INDIA
Size of the industry: India is the second largest cement producer in the
world with cement production at 94 mn. Tonnes and consumption at 92
mn. tonnes during 1999-2000. The industry is highly fragmented in
nature with around 55 companies controlling a total capacity of around
110 mn. tonnes. The high fragmentation is a result of low entry barriers
like easy availability of technology and the commodity nature of the
product. However, cement plants are capital intensive and a green-field
cement plant of the 1-mtpa capacities requires an investment of around
Rs. 330 crores. The typical asset turnover ratio for a new cement plant
would be around 1.3 times.
[2] Coal costs account for around 15-17% of the cost of sales. The
quality of coal available in different regions of the country varies
significantly. Also the plants are located at varying distances from the
coalmines. Coal also being a light material, transportation costs
comprise a significant proportion of the landed costs and is more than
50% for some cement plants. Some cement plants either located near
the ports or at long distances from the mines, import coal and blend it
with domestic coal.
[3] Power costs account for around 22-25% of the total cost of sales and
about 100-105 KW/h is consumed for producing 1 MT of cement.
Power is a critical input to the cement manufacturing process. Frequent
power cuts and declining quality of power in some states has
encouraged many cement companies to set up captive power plants.
[4] In terms of average price (Rs/MT basis) the value of cement is a low
as compared to other commodities that are widely transported. Thus,
the transportation and handling charges for cement are quite high. As a
result, transportation costs, on average account for around 25-28% of
the cost of sales. Based on the distance of the markets from the cement
plant that service them, the retail prices of cement vary very widely
across the country.
Large Plants
(Large Plants means capacity more than 0.198 Mn.T. per annum)
Companies (Members) (Nos.) 55
Cement Plants (Nos.) 127
Installed Capacity (Mn. t.) 146.38
Cement Production (Mn. t.) 2003-04 117.50
Plants with Capacity of Million tones and above (Nos.) 68
Manpower Employed (Nos.) Approx. 1,35,000
Turnover in 2001-02 (Mn. US$) around 6,000
Mini Plants
(Mini Plants means capacity less than 0.198 Mn.T. per annum)
Cement Plants (Nos.) 365
Installed Capacity (Mn. t.) 11.10
Cement Production (Mn. t.) 2003-04 6.00 (P)
UNION TERRITORY OF
DELHI
1 CCI Ltd. (G) Tughalakabad 0.50
0.50
HARYANA
2 CCI Ltd. Charkhi-Dadri 0.17
0.17
HIMACHAL PRADESH
3 ACC Ltd. Gagal 2.31
4 CCI Ltd. Rajban 0.20
5 Gujarat Ambuja Ltd. Darlaghat 1.16
3.67
JAMMU & KASHMIR
6 J & K Cements Khrew 0.20
0.20
PUNJAB
7 Gujarat Ambuja Ltd. Ropar 1.34
(G)
1.34
RAJASTHAN
8 ACC Ltd. Lakheri 0.60
9 Shriram Cement Kota 0.20
10 Mangalam Cement Morak 0.40
11 Neer Shree Cement Morak 0.60
Sr Name of the Plant Location Installed Capacity
No.
as on 31.03.2000
(mtpa)
12 Birla Cement Chittorgarh 0.60
13 Chittor Cement Chittorgarh 0.80
14 J.K. Cement Nimbahera 1.54
15 J.K. Cement (G) Mangrol 0.21
16 J.K. Udaipur Udyog Udaipur 0.90
17 Shree & Raj Cement Beawar 2.00
18 Lakshmi Cement Sirohi Road 2.23
19 Aditya Cement Shambhupura 1.40
20 DLF Cement Pali 1.40
21 Binani Cement Sirohi 1.65
14.53
UTTAR PRADESH
22 U.P. State Cement (G) Chunar 1.68
23 U.P. State Cement Churk 0.48
24 U.P. State Cement Dalla 0.43
25 Diamond Cement (G) Jhansi 0.50
26 ACC Ltd. (G) Tikaria 0.60
27 Birla Cement (G) Raebareli 0.36
4.05
As we know that the house is the third necessity of the human life and
for building a house of ones dream, there is a requirement of cement,
which is used as a catalyst.
Composition:
Cement is a mixture of limestone, clay, silica and gypsum. It is fine
powder which when mixed with water sets to a hard mass as a result of
hydration of the constituent compounds. It is the most commonly used
construction material.
PPC has 80 % clinker, 15% pozolona and 5 % gypsum and accounts for
18% of the total cement consumption. Pozolona has siliceous and
aluminous materials that do 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.
White Cement
Basically, it is O.P.C: clinker using fuel oil (instead of coal) and with
iron oxide content below 0.4% to ensure whiteness. Special cooling
technique is used. It is used to enhance aesthetic value, in tiles and for
flooring. White cement is much more expensive than gray cement.
Specialized cement
Oil Well Cement: 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 much finer, so that on casting, the compressible strength
increases rapidly.
Annual Installed
Name of Cement
Sl.No. Location Capacity
Company/Plant
(Million Tonnes)
1 ACC Ltd. Lakheri 0.60
2 Birla Cement Chittorgarh 0.72
3 Chittor Cement Chittorgarh 1.28
4 Mangalam Cement Morak 0.40
5 Neer Shree Cement Morak 0.60
6 Aditya Cement Shambhupura 1.75
7 J.K. Cement Nimbahera 2.54
8 J.K. Cement Mangrol 0.75
9 Lakshmi Cement Sirohi Road 2.23
10 J.K. Udaipur Udyog Udaipur 0.90
Ambuja Cement Raj.
11 Pali 1.80
Ltd.
12 Shree Cement Beawar 2.60
13 Binani Cement Sirohi 2.15
14 Shriram Cement Kota 0.20
CEMENT INDUSTRY IN RAJASTHAN
6. J.K.Cement, Nimbahera
But now govt. Bold and pragmatic liberalization policy coupled with
structural changes has brought India on the threshold of a new are of
ecomonic progress.
Recently our prime minister has amended to create cement concrete
road in over India. Govt. has provided special to infrastructure sector
and Housing Corporation, so this will create new demand in cement
industry. Housing corp. is providing loan from houses on low rates,
which will enchance the demand of cement and many after reason
like earthquake in turkey and Kargil incident etc.
What is perception :-
According to Robbins “Perception may be defined as a process by
which individual organize and interpret their sensory in order to give
meaning to their environment.”
Perception is cognitive process, which involves the
(organization) selecting, organizing & interpreting the stimulus or
attaching meaning to the events happening in the eviornment.
Sensation and Perception :-
Sensation may be described as the response of a physical sensory
organ. The physical senses are vision, learning, touch, small on taste.
Perception is something more than sensation. It correlates,
integrates and comprehends diverse sensations and information from
many organs of the body by means of which a person identifies things
and objects.
Features of perception: -
It is intellectual process: - Through which a person selects the data from
environments, organize it & obtains meaning from it.
Perception is basic cognition or psychological process: -
The manner in which a person perceives the environments affects his
behavior.
It is a physical as well as psychological process: -
In which people’s action, emotions, thoughts or feelings are triggered
by the perception of their surrounding.
It is a subjective process: - Different people may perceive the same
environmental events differently base on what particular aspects of
situations they choose to absorb, how they organize this information
and the manner in which they interpret it to obtain the group of
situations.
Perceptual process: -
Perceptual Process has two methods :
1. Simplified process of perception
2. Complex process of perception
Simplified Process
Complex Process
Then approach emphasize that there is impact which is processed
andInput
Perceptual gives outputs. It does not present the whole factors, which go in
Objects
Events
Input, Throughput and Output process.
People
Characteristic of
Input or Stimuli
Perceptual Output
Perceptual Mechanism Attitudes
Selection interpretation Opinions Beha
Feelings vior
Organizing Values
Characteristic of
Characteristic of the the Percives
situations
Perceptual Process:
Perception is a process consisting of several sub process. We can take
an input – throughput – output approach to understand the dynamics of
the perceptual process. This approach emphasis that there is input
which is processed and gives output.
(A) Perceptual Inputs: -
Perceptual inputs in the form of stimuli are not the part of actual
perceptual process through these is necessary for the occurrence of
perception. Stimuli may be in the form of objects, events or people.
Then, everything in the setting where events occur can be termed as a
perceptual input..
(B) Perceptual Mechnism :-
Perceptual mechanism involves three elements – selection of stimuli,
organization of stimuli and interpretation of stimuli.
a. Selection of stimuli: - After receiving the stimuli from the
environment, some are selected for further processing
while others are screamed out because it is not possible for
a person to select all stimuli which he sees in the
environment.
b. Organization of output: - After the stimuli are received,
these are organized in some form in order to make sense
out of that. The various forms of organizing stimuli are
figure ground perceptual grouping, simplification and
closure.
c. Interpretation of stimuli: - After the perceptual input that
have organized will have to be interpreted by the receiver
so that he can sense and extract some meaning of what is
going on in the situation.
3. Perceptual Output: -
Based on perceptual mechanism, which ends with interpretation of
stimuli, perceptual outputs emerge. Those output may be inform of
covert actions like development of attitudes, opinions, beliefs,
impression about the stimuli under consideration.
Components of Perception
Purchasing Decision :-
In the evaluation stage, the consumer forms preferences among the
brands in the choice set. However, two factors can intervene between
the purchase intention on the purchase decision.
The first factor is the attitudes of others. The extent to which another
person’s attitudes reduces one’s preferred alternative depends on two
things :-
The intensity of the other person’s negative attitude towards the
consumer’s preferred alternative.
The consumers motivation to comply with the other person wishes.
The second factor is unanticipated situational factor that may erupt to
change the purchase intention.
In executing a purchase intention, the consumer may make up to five
purchase sub decisions a brand decision (brand A), vendor decision
(dealer 2), quantity decision cone computer, timing decision
(weekened) and payment method decision credit card.
Research Design: -
A research design is the basic plan that guides the collection,
measurement and analysis of data. Decision regarding what, when,
where, how much and by what means concerning a research study
constitute a research design. In other words research design is the
framework the specifies the type of information to be collected the
source of data and the procedure of data collection.
Sample Design :-
A sample design is a definite plan for obtaining a sample from a given
population. It refers to the technique or procedure the research would
adopt in selecting items for the sample. Researcher must select / prepare
a sample design that would be reliable and appropriate for this research
study.
Type of Universe :-
The first step in developing the sample design is to clearly define the set
of objectives i.e. the universe. The universe in this project is all the
population of kota city was consider as universe.
Sample Size :- It refers to deciding how many people to be
1. Study conductive was not exhaustive but time & place was a
major constraint.
.
2. It is assumed that information given by respondent is authentic
and to the best of their knowledge.
4. The study was conducted in kota city hence the result do not
represent the whole state and does leads toward inductive
generalization.
8
6
4 Series1
2
0
Ambuja
Binani
cement
Uttam
Others
Vikram
Birla
Brand Name
6
5
4
3
2 Series1
1
0
Ambuja
Uttam
Binani
Cement
Others
Vikram
Birla
Brand Name
5
4
3 Series1
2
1
0
m
s
i
ja
n
en
er
tta
bu
na
em
th
Am
Bi
U
O
C
r la
am
Bi
kr
Brand Name
Vi
4
No. of
3
2 Series1
1
0
ja
t
am tam
ni
s
en
er
bu
na
em
th
t
Am
U
Bi
O
C
rla
Bi
kr
Brand Name
Vi
Ambuja
Binani
Cement
Uttam
Others
Vikram
Birla
Brand Name
No. of Customers
5
4
3
Series1
2
1
0
Ambuja
Binani
Cement
Uttam
Others
Vikram
Birla
Brand Name
No. of Customers
10
8
6
4 Series1
2
0
Binani
Uttam
Ambuja
Cement
Others
Vikram
Birla
Brand Name
CHAPTER 5
FINDINGS AND
CONCLUSION
Findings
Conclusion
SUGGESTIONS
BIBLIOGRAPHY
BOOKS:-
• www.google.com
• www.answer.com
ANNEXURE
QUESTIONNAIRE
Q2. Which cement brand you are using for your construction?
…………………………………………………...
1. Brand Name
2. Strength
3. Price
4. Availability
5. Quality
6. Any other
Yes No
Q5. What are the reason forces you to change your preference?
………………………………………………………