A STUDY ON DISTRIBUTION CHANNELS WITH SPECIAL

REFERENCE TO THE “BIRLA CEMENT”

IN THIRUVARUR DISTRICT

SUMMER PROJECT REPORT

Submitted by
S. SASIKUMAR
REGISTER NO: 27348337

Under the Guidance of

Mr. D.SARAVANAN, MBA, M.Phil, M.F.C, MHRM, (Ph.D),
Faculty, Department of Management Studies
in partial fulfillment for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
PONDICHERRY UNIVERSITY
PUDUCHERRY, INDIA

SEPTEMBER- 2007
SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
MADAGADIPET, PUDUCHERRY.
DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This to certify that the project work entitled “A STUDY ON

DISTRIBUTION CHANNEL WITH SPECIAL REFERENCE TO “BIRLA
CEMENT IN THIRUVARUR DISTRICT” is a bonafide work done by
S. SASIKUMAR. [REG NO 27348337] in partial fulfillment of the requirement
for the award of Master of Business Administration by Pondicherry University
during the academic year 2007 – 2008.

GUIDE HEAD OF DEPARTMENT

Viva-Voce Examination held on

EXTERNAL EXAMINER

TABLE OF CONTENT
CHAPTER TITLE PAGE NO

LIST OF TABLES i

LIST OF CHARTS ii

I INTRODUCTION

1.1. IMPORTANT OF THE STUDY 5

1.2. PROFILE OF ORGANIZATION 6

1.3 PRODUCT PROFILE 15

II REVIEW OF LITERATURE 20

III OBJECTIVES 22

IV RESEARCH METHODOLOGY 23

V DATA ANALYSIS AND INTERPRETATION 27

VI FINDINGS OF THE STUDY 57

VII SUGGESTION 59

VIII CONCLUSION 60

IX LIMITATIONS OF TH STUDY 61

X SCOPE OF THE FURTHER STUDY 62

XI ANNEXURE 63

ACKNOWLEDGEMENT
 I take this opportunity to express my gratitude and profound thanks to our
chairman Shri. N.KESAVAN, Managing Director Shri. M.DHANASEKARAN and
Vice Chairman Shri. S.V. SUGUMARAN SMVEC and our respected Principal Dr.
V.S.K.V. VENKATACHALAPATHY.

I express our sincere thanks and deep sense of gratitude to our Head of
Department Mr. S.JAYAKUMAR, Department of Management Studies for providing
me with an opportunity to study and to do this report.

I express a deep sense of gratitude to my Guide Mr.SARAVANAN

Department of Management Studies, for his encouragement, support and guidance to
complete this project work successfully.

I extent my heartful thanks to the Marketing Manager Mr. V. RAJA,

GRASIM INDUSTRIES LTD.,THANJAVUR, for their valuable co-operation on
collecting all information and data regarding this Project Report.

Finally, I express our sincere thanks and deep sense of gratitude to my parents
and friends for giving timely advice in all the ways and in all aspects for doing the
project

LIST OF TABLE
S. No TABLE NAME Page No

1 CEMENT DEALERSHIP TAKEN BY THE DEALERS 27

2 HIGH SALES VOLUME IN CEMENT INDUSTRY 28

3 MOST VALUABLE SUPPLIERS 29

4 QUALITY OF THE BIRLA CEMENT 30

5 PRICE OF THE BIRLA CEMENT 31

6 FAST MOVING BRAND IN CEMENT INDUSTRY 32

7 ORDER AND REPLACEMENT WITH BIRLA CEMENT 33

8 AVAILABILITY OF THE BIRLA CEMENT 34

9 MARGINS OFFERED BY BIRLA CEMENT 35

10 SATISFIED WITH BIRLA CEMENT DEALERSHIP 36

11 ADVERTISEMENT OF THE BIRLA CEMENT 37

SALES PROMOTIONAL EFFORTS OF THE BIRLA

12 38
CEMENT

13 LIFE TIME OF THE OVERALL CEMENT 39

14 RELIABILITY OF THE BIRLA CEMENT 40

15 FINANCIAL SCHEMES OF THE BIRLA CEMENT 41

16 MARKET RESEARCH IN CEMENT INDUSTRY 42

17 DELIVERY PERIOD BY BIRLA CEMENT 43

LIST OF CHART
S.no CHART NAME Page No

1 CEMENT DEALERSHIP TAKEN BY THE DEALERS 27

2 HIGH SALES VOLUME IN CEMENT INDUSTRY 28

3 MOST VALUABLE SUPPLIERS 29

4 QUALITY OF THE BIRLA CEMENT 30

5 PRICE OF THE BIRLA CEMENT 31

6 FAST MOVING BRAND IN CEMENT INDUSTRY 32

7 ORDER AND REPLACEMENT WITH BIRLA CEMENT 33

8 AVAILABILITY OF THE BIRLA CEMENT 34

9 MARGINS OFFERED BY BIRLA CEMENT 35

10 SATISFIED WITH BIRLA CEMENT DEALERSHIP 36

11 ADVERTISEMENT OF THE BIRLA CEMENT 37

SALES PROMOTIONAL EFFORTS OF THE BIRLA

12 38
CEMENT

13 LIFE TIME OF THE OVERALL CEMENT 39

14 RELIABILITY OF THE BIRLA CEMENT 40

15 FINANCIAL SCHEMES OF THE BIRLA CEMENT 41

16 MARKET RESEARCH IN CEMENT INDUSTRY 42

17 DELIVERY PERIOD BY BIRLA CEMENT 43

ABSTRACT
 Distribution channels are behind every product and service that consumers and
business buyers purchase every where. Usually, combination on institutions
specializing in manufacturing , wholesaling, retailing and many other areas join force
in Distribution channels.

A Distribution channels is a set of inter dependent organization involved in the

process of making a product or service available for use or consumption.

Distribution channels decisions play a role of Strategic importance in the overall

presence and success a company enjoys in the market palace.

This project report entitled “A Study on Distribution Channel with Special

Reference to Birla Cement in Thiruvarur District”. To determine the dealer satisfaction
of the product and future demands, needs, wants.

The study starts with an introduction of the Distribution Channel, company

profile, important of the Study, Review of Literature and objectives are set out for the
study. Research methodology, data analysis and interpretation, findings and
suggestions of the study follow.

The response given by the dealers and analyzed and interpret using different
types of statistical tool such as percentage analysis, chi-square method.

CHAPTER - I
 INDRODUCTION

Place, Distribution, Channel, or Intermediary.

A channel of distribution comprises a set of institutions which perform all

of the activities utilized to move a product and its title from production to

consumption.

Bucklin - Theory of Distribution Channel Structure (1966)

Another element of Neil H.Borden's Marketing Mix is Place. Place is also

known as channel, distribution, or intermediary. It is the mechanism through

which goods and/or services are moved from the manufacturer/ service provider

to the user or consumer.

There are six basic 'channel' decisions:

• Do we use direct or indirect channels? (e.g. 'direct' to a consumer,

'indirect' via a wholesaler)

• Single or multiple channels

• Cumulative length of the multiple channels

• Types of intermediary (see later)

• Number of intermediaries at each level (e.g. how many retailers in

Southern Spain).

• Which companies as intermediaries to avoid 'intrachannel conflict' (i.e.

infighting between local distributors)

Selection Consideration - how do we decide upon a distributor?

 Market segment - the distributor must be familiar with your target

consumer and segment.

 Changes during the product life cycle - different channels can be

exploited at different points in the PLC e.g. Foldaway scooters are

now available everywhere. Once they were sold via a few specific

stores.

 Producer - distributor fit - Is there a match between their polices,

strategies, image, and yours? Look for 'synergy'.

 Qualification assessment - establish the experience and track record of

your intermediary.

 How much training and support will your distributor require?

Types of Channel Intermediaries.

There are many types of intermediaries such as wholesalers, agents,

retailers, the Internet, overseas distributors, direct marketing (from manufacturer

to user without an intermediary), and many others. The main modes of

distribution will be looked at in more detail.

1. Channel Intermediaries - Wholesalers

• They break down 'bulk' into smaller packages for resale by a retailer.

• They buy from producers and resell to retailers. They take ownership or

'title' to goods whereas agents do not (see below).

 • They provide storage facilities. For example, cheese manufacturers

seldom wait for their product to mature. They sell on to a wholesaler that

will store it and eventually resell to a retailer.

• Wholesalers offer reduce the physical contact cost between the producer

and consumer e.g. customer service costs, or sales force costs.

• A wholesaler will often take on the some of the marketing

responsibilities. Many produce their own brochures and use their own

telesales operations.

2. Channel Intermediaries - Agents

• Agents are mainly used in international markets.

• An agent will typically secure an order for a producer and will take a

commission. They do not tend to take title to the goods. This means that

capital is not tied up in goods. However, a 'stockist agent' will hold

consignment stock (i.e. will store the stock, but the title will remain with

the producer. This approach is used where goods need to get into a market

soon after the order is placed e.g. foodstuffs).

• Agents can be very expensive to train. They are difficult to keep control

of due to the physical distances involved. They are difficult to motivate.

3. Channel Intermediaries - Retailers

• Retailers will have a much stronger personal relationship with the

consumer.
 • The retailer will hold several other brands and products. A consumer will

expect to be exposed to many products.

• Retailers will often offer credit to the customer e.g. electrical wholesalers,

or travel agents.

• Products and services are promoted and merchandised by the retailer.

• The retailer will give the final selling price to the product.

• Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart

in the USA, and Alisuper, Modelo, and Jumbo in Portugal.

4. Channel Intermediaries - Internet

• The Internet has a geographically disperse market.

• The main benefit of the Internet is that niche products reach a wider

audience e.g. Scottish Salmon direct from an Inverness fishery.

• There are low barriers low barriers to entry as set up costs are low.

• Use e-commerce technology (for payment, shopping software, etc)

• There is a paradigm shift in commerce and consumption which benefits

distribution via the Internet

1.1 IMPORTANTS OF THE STUDY

 The study is very significant to understand the distribution channels.

 The study is important to know the dealers satisfaction level for the dealership.

 The study is important to know the dealers satisfaction level in the price of the

cements.

 The study is important to know the dealers preference for the quality.

 The study is very important to know the sales volume.

 The study is also analyses the effective media for improving the sales.

 The study is important to know availability of the cement.

 The study is important to know margins in the cement industries.

1.2 COMPANY PROFILE
Mr. Kumar Mangalam Birla
Chairman, The Aditya Birla Group
Mr. Kumar Mangalam Birla is the Chairman of the Aditya Birla
group, which is among India's largest business houses. Among its major
Companies in India are Grasim, Hindalco, Indo Gulf, UltraTech Cement
and Aditya Birla Nuvo. Its JVs include Idea Cellular (Birla-Tata,
[Telecom]), Birla Sun Life (Financial Services) and Birla NGK
(Insulators). While Mr. Birla is the Chairman of

all of the Group's blue-chip Companies in India, he serves as a Director on the

Board of the Group's International Companies spanning Thailand, Indonesia,
Malaysia, Philippines and Egypt. The Group's operations extend to Canada,
China, USA, U.K. and Australia as well.

He is also on the Board of Tata Iron & Steel Company (TISCO), and
Maruti Udyog Limited.

Additionally, he is on the Board of the G.D.Birla Medical Research &

Education Foundation, and a Member of the Board of Governors of the Birla
Institute of Technology & Science (BITS), Pilani, and the prestigious Indian
Institute of Management, Ahmedabad as well. He is a Member of the London
Business School's Asia Pacific Advisory Board, which provides counsel on the
School's strategy and curriculum. He is "Honorary Fellow" of the London
Business School (LBS), a title conferred upon him by the Governing Board of
the LBS.
 Mr. Birla has and continues to hold several key and responsible positions
on various regulatory and professional Boards, such as:

• Chairman of the Advisory Committee constituted by the Ministry of

Company Affairs for 2006 and 2007
• Member of The Prime Minister of India's Advisory Council on Trade and
Industry
• Chairman of the Board of Trade reconstituted by the Union Minister of
Commerce and Industry
• Chairman of the National Safety Council
• Member of the Government of Uttar Pradesh's High Powered Investment
Task Force
• Member of The National Council of the Confederation of Indian Industry
(CII)
• Member of the Apex Advisory Council of The Associated Chambers of
Commerce and Industry of India
• On The Advisory Council for the Centre for Corporate Governance
• Member of the Organising Committee for Commonwealth Games, Delhi
2010

In the ten years that he has been at the helm of the Aditya Birla Group, he
has won recognition for his contribution to Industry and to professionalising
management. An indicative list is as follows:

1998

 Mr. Birla was the first and only industrialist to have been appointed as a
public nominee on the governing board of the Securities and Exchange
Board of India (SEBI) by the Finance Ministry. He served as the
Chairman of SEBI's 17-member committee on corporate governance
constituted in mid-1999, and as chairman of SEBI's committee on insider
trading.
  The Kumar Mangalam Birla Report on Corporate Governance became the
cornerstone of corporate governance practices in India.
 Recipient of the Rotary Club's "Award for Vocational Excellence".

1999

 The Lions Clubs International's "The Achiever of the Millennium".

 The Rotary Club of Ahmedabad's "The Legend of the Corporate World".

2000

 The Bombay Management Association honoured Mr. Birla as "The

Management Man of the Year 1999-2000".

2001

 The Rajiv Gandhi Award for 'Business Excellence and Contribution to the
Country' from the Mumbai Pradesh Youth Congress
 The National HRD Network's (Pune) 'The Outstanding Businessman of
the Year' award
 The Giants International Award for 'Business Excellence and his
Contribution to the Industry'
 The Rotary Club's 'Award for Vocational Excellence'
 The Institute of Directors 'Golden Peacock National Award for Business
Leadership'
 The Hindustan Times 'Businessman of the Year' award

2002

 The Qimpro Foundation's "Qimpro Platinum Standard Award".

 The Amity Business School Award for "Excellence in Business".
 Ranked among the first five Asian business leaders for the CNBC/Insead
sponsored "Asian Business Leader Award 2002".
2003

 Named "The Business Leader of the Year" by The Economic Times

Awards for Corporate Excellence 2002-2003.
 Close on the heels of the Economic Times' "The Business Leader of the
Year" Award, he was selected Business India's "Business Man of the
Year - 2003". This is indeed historic, as no Chairman/CEO has ever won
both these prestigious awards in a single year.
 The National Institute of Industrial Engineering's (NITIE) "The Lakshya -
Business Visionary Award".
 The Indo-American Society's "Young Achiever Award".
 "The 2003 Institute of Marketing and Management Award for
Excellence".

2004

 Chosen by the World Economic Forum (Davos)as one of the Young

Global Leaders. In this capacity, Mr. Birla is committed to share his
knowledge, expertise and energy over the next five years to usher in a
future of "hope, progress and positive change".
Drawn from a pool of 8000 candidates from around the world, of whom
600 were short listed and 237 finally named, the Young Global Leaders
have been hand picked by a Nomination Committee of 28 global media
leaders.
 In recognition of his exemplary contribution to Indian business, The
Banaras Hindu University awarded the D.Litt (Honoris Causa) Degree to
him.
 To salute his entrepreneurial excellence and exemplary contribution to
Indian business, the All India Management Association conferred its
"Honorary Fellowship" on him.
2005

 "The Ernst & Young Entrepreneur of the Year" Award. Will represent
India at the Ernst & Young World Entrepreneur Award in Monte Carlo,
Monaco in June 2006
 Named "Young Super Performer in the CEO Category" by Business
Today
 PHD Chamber of Commerce and Industry - Udyog Ratna

The media too has showered accolades on Mr. Birla. Between 1997 to-
date, NDTV and Star Plus' "India Business Week" designated him as "The
Businessman of the Year". Global Finance has cited him among the "10 Super
Stars of Corporate Finance". Business World ranked him among the top 10 of
India's most admired and respected CEOs and the top CEO of the coming
millennium, and Hindustan Times named him as "The Businessman of the Year"
as well.

Born June 14, 1967, Mr. Kumar Mangalam Birla was raised in Calcutta
and Mumbai. He is a Chartered Accountant and earned an MBA (Masters in
Business Administration) from the London Business School, London. Mr.
Kumar Mangalam Birla and his wife, Neerja have three children, Ananyashree,
Aryaman Vikram and Advaitesha.

GLOBAL VISION, INDIAN VALUES:

The Aditya Birla Group is India's first truly multinational corporation.

Global in vision, rooted in Indian values, the Group is driven by a performance
ethic pegged on value creation for its multiple stakeholders. A US$ 7.59 billion
conglomerate, with a market capitalisation of US$ 12 billion, it is anchored by
an extraordinary force of 72,000 employees belonging to over 20 different
nationalities. Over 30 per cent of its revenues flow from its operations across the
world. The Group's products and services offer distinctive customer solutions.
Its 72 state-of-the-art manufacturing units and sectoral services span India,
Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China.

A premium conglomerate, the Aditya Birla Group is a dominant player in

all of the sectors in which it operates. Such as viscose staple fibre, non-ferrous
metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals,
fertilisers, sponge iron, insulators and financial services. It is:

 The world No. 1 in viscose staple fibre.

 The world's largest single location palm oil producer.
 A non-ferrous metals powerhouse and among the world's most cost
efficient producers of aluminium and copper.
 The world's largest single location world-scale copper smelter.
 The world's No. 1 in insulators, with its joint venture with NGK of Japan.
 Globally, the fourth largest producer of carbon black.
 The 11th largest cement producer in the world and the seventh largest in
Asia.
 India's premier branded garments player.
 Among the world's best energy efficient fertiliser plants.
 India's second largest producer of viscose filament yarn.
 The No. 2 private sector insurance company, and the fourth largest asset
management company in India.
The Group has also made successful forays into the IT and BPO sectors.

Beyond business

A value-based, caring corporate citizen, the Aditya Birla Group inherently

believes in the trusteeship concept of management. Part of the Group's profits
are ploughed back into meaningful welfare-driven initiatives that make a
qualitative difference to the lives of marginalised people. These activities are
carried out under the aegis of the Aditya Birla Centre for Community Initiatives
and Rural Development, which is spearheaded by Mrs. Rajashree Birla.
Grasim Cement:

Grasim Cement was set up as a greenfield cement plant at Raipur,

Chhatisgarh, in 1995. Based on the most advanced technologies, this plant has
an annual installed capacity of 2.06 million tpa.

The plant’s unique features include:

 Asia’s first gamma ray belt analyser from Gamma Matrix (USA) ensuring
the highest standards in online quality control.
 India’s first polycom (blast furnace slag grinder) with a dynamic air
separator from Krupp Polysius Germany, which helps to generate the
desired homogeneous particle size distribution.
 One of the few single kiln cement plants producing more than eight
varieties of cement.
 Its captive power generation ensures a reliable power supply. The plant is
also an ISO 14001, ISO 9001, and IQRS L-5 certified unit.

IN PRODUCT MIX BY REVENUE OF CEMENT IS 46 %

GRASIM WINS ICMA AWARD FOR SOCIAL RESPONSIBILITY:

Grasim Industries Limited, Staple Fibre Division, Nagda, has received the
Indian Chemical Manufacturers Association (ICMA) award for Social
Responsibility. At a function held in Mumbai on 27 April 2006, Mrs. Rajashree
Birla received the award from Mr. Mukesh Ambani, Chairman, Reliance
Industries Limited.

Grasim, Nagda has been involved in various meaningful, welfare-driven

initiatives that distinctly impact the quality of the weaker sections of society in
the Ujjain district of Madhya Pradesh. In working with the communities, the
company gauged their real needs and identified these as access to potable water,
sustainable livelihood, healthcare, education and infrastructure.

Grasim's community development programme encompasses 55 villages

and some adjoining urban localities. It has helped more than 1.4 lakh people in
this area and is implemented under the aegis of the Aditya Birla Centre of
Community Initiatives and Rural Development. The major programmes include
watershed management including drinking water provision in 20 villages and
two townships, and running three schools for ensuring quality education to over
5,000 children.

The Rural Development section is well equipped with vehicles,

ambulances, tractors, training centres and other necessary infrastructure with
doctors, paramedical staff and workers. Under the sustainable livelihood
schemes, more than 600 families are covered through self-help groups and
income generation activities; over 1,600 persons are trained in 30 different trades
each year; and increased crop productivity in 1,750 hectares has enhanced the
livelihood options for 3,500 households.

Several other accolades have been conferred on Grasim in recognition of its

contribution to rural development. Some of them are the FICCI Annual
Corporate Social Responsibility Award 2004, the 2004 Stockholm Industry
Water Award and the Asian CSR Award 2005

BOARD OF DIRECTORS:

Mr. Kumara Mangalam Birla, Chairman

Mrs. Rajashree Birla

Mr. M.L.Apte

Mr. B.V.Bhargava

Mr. R.C.Bhargava

Mr. Y.P.Gupta

Mr. Cyril Shroff

Mr. S.G.Subhramanyan

Mr. Shailendra K.Jain (Whole-time Director)

Mr. D.D.Rathi (Whole-time Director)

Mr. S.B.Mathur

BUSINESS HEADS:

Mr. Shailendra K.Jain, Viscose staple fibre

Mr. Saurabh Misra, cement

Mr. Ravi Kastia, Sponge iron

Mr. S.K.Saboo, Textiles, Spinning

Mr. Vikram Rao, Textiles, Fabrics

Mr. K.K.Maheshwari, Chemicals

WHOLE-TIME DIRECTOR AND CHIEF FINANCIAL OFFICER:

Mr. D.D.Rathi

COMPANY SECERETARY:

Mr.Ashok Malu

1.3 PRODUCT PROFILE:

Cement is the basic binding material, which is used for construction

purpose and it is a commodity which has become a part of our life and will find
demand till time stands still.

The Indian cement industry is on a roll. Riding on increased activity in

real estate, cement production has registered a growth of 7.24 per cent in April,
2005, at 11.41 million tones as against 10.49 million tones in the corresponding
period a year ago.

The growth trend has been on for some time now. In the April-January
2004-05 period, the sector registered a rise of 7.1 per cent, producing 108.06
million tones. If these trends are anything to go by, it will not be long before the
sector meets the production target of 133 million tones set by the government in
the fiscal 2004-05.

During the Tenth Plan, the industry, which is ranked second in the world
in terms of production, is expected to grow at 10 per cent per annum adding a
capacity of 40-52 million tones, according to the annual report of the
Department of Industrial Policy and Promotion (DIPP). The report reveals that
this growth trend is being driven mainly by the expansion of existing plants and
using more fly ash in the production of cement.

A number of cement industry leaders have reported increase in dispatches

ranging from 5.44 per cent to around 10 per cent for the year ended March 31,
2005.

 Associated Cement Companies said its dispatches of 16.569 million tones

are the highest it has ever achieved. Yearly dispatches showed an increase
of 7.9 per cent over the previous year (15.364 million tones) while
production at 16.606 million tones (15.353 million tones), showed an
increase of 8.5 per cent.
 Dispatches from the Aditya Birla group (from Grasim and UltraTech)
rose 5.44 per cent to touch 26.260 million tones. Clinker dispatches stood
at 2.965 million tones. Production rose 5.61 per cent. Grasim recorded
cement dispatches at 13.379 million tones, and clinker dispatches at
296,000 tones. For UltraTech, the figures were at 12.881 million tones
and 2.669 million tones, respectively.

 For the Ambuja Cement group, which observes a July-to-June fiscal, the
cumulative despatches for the first three quarters of the fiscal rose 10 per
cent to 10.745 million tones from 9.733 million tonnes? Production for
the same period was recorded at 10.756 million tones, showing a rise of
11 per cent.

Both ACC and Ambuja Cement said their dispatches in March were the
highest ever for their groups. ACC reported dispatches at 1.572 million tones, up
by 6 per cent from the year-ago figure of 1.483 million tones; production rose
7.5 per cent, to 1.576 million tones from 1.466 million tones). Ambuja Cements
reported dispatches of 1.356 million tones, up by 9 per cent year-on-year and
production of 1.358 million tones, up by 10 per cent.
 The cement industry has also been witnessing a spurt in exports. India
exported about 8.13 million tones of cement and clinker between April-January
2004-05.The export figures for cement were 3.31 million tones and 4.82 million
tones for clinker in the same period. The cement industry has also been
witnessing a spurt in exports. India exported about 8.13 million tones of cement
and clinker between April-January 2004-05.The export figures for cement were
3.31 million tones and 4.82 million tones for clinker in the same period.

Storage and usage information:

STORAGE
Store bagged cement on a raised floor in a damp-proof shed. If this is
not possible, then store the cement on a raised platform and cover with
waterproof sheeting. Use the cement in the order you receive it.
i.e. first in first out.

WATER
In general, the more water used for a given
quantity of cement, the weaker the concrete
or mortar will be. It is therefore important to
use the minimum amount of water required
to make the mix workable.

MIXING
Accurately measure all materials with a suitable container
(wheelbarrow or bucket). Mix thoroughly until a uniform colour is obtained.
Add water whilst mixing to avoid adding too much water.

CURING
Concrete or plaster should be kept moist for at least 7 days to
prevent cracking and to ensure that it's strength increases. Spray
gently with water and protect it with plastic sheets (or wet
Hessian) to prevent it from drying out.

HEALTH AND SAFETY WARNING:

 When working with cement wear safety glasses and gloves.

 Wash you hands after working with wet cement.
 In the event of cement contact with your eyes, rinse thoroughly with
water and get medical attention if necessary.
 Keep Cement out of reach of children.

OTHER INFORMATION:

 Transport in vehicles with adequate protection from weather.

 Arrange cement bags on timber pallets/platform at least 15cm above the
floor. Place stacks away from external walls and they should not exceed
10 bags.
 The cement should not be lumpy.
 Cement should be from bags that are not torn or interfered with.

CEMENT PERFORMANCE
Cement performance of the Aditya Birla Group for April 2006:

 Production at 26.76 lakh mt — up by 8.53 per cent

 Despatches at 26.28 lakh mt — up by 6.08 per cent

The Aditya Birla Group's cement production for April 2006 grew by 8.53
percent at 26.76 lakh mt as against 24.66 lakh mt during April 2005.

Despatches moved up by 6.08 per cent at 26.28 lakh mt in April 2006 as

against 24.77 lakh mt in the corresponding period last year.

Cement performance of the Aditya Birla Group for May 2006:

 Production at 26.09 lakh mt up 3.68 per cent

 Despatches at 28.26 lakh mt up by 7.92 per cent

The Aditya Birla Group's cement production for May 2006 grew by 3.68
percent at 26.09 lakh mt, while despatches rose by 7.92 per cent at 28.26 lakh
mt, over May 2005.

The Aditya Birla Group's cement production for the period April-May 2006
at 52.86 lakh mt is up by 6.08 per cent vis-à-vis 49.83 lakh mt for April-May
2005, and despatches at 56.33 lakh mt reflect a rise of 7.51 per cent as against
52.39 lakh mt.

Cement performance of the Aditya Birla Group for June 2006:

 Production at 24.23 lakh mt up 6.10 per cent

 Despatches at 24.74 lakh mt up by 9.37 per cent

The Aditya Birla Group's cement production for June grew by 6.10 per cent
at 24.23 lakh mt, while despatches rose by 9.37 per cent at 24.74 lakh mt, over
June 2005.
 The Aditya Birla Group's cement production for the period April-June 2006
at 77.09 lakh mt is up by 6.09 per cent vis-a vis 72.66 lakh mt for April-June
2005 and despatches at 76.89 lakh mt reflect a rise of 6.54 per cent as against
72.18 lakh mt.
 CHAPTER - II

REVIEW OF LITERATURE

Industry has been defined “as a process in which changes of a series of

strategically production are taking place and it involves those basic changes that
accompany the mechanization of an enterprise. The building of a new industry
and the opening of a new territory”

The achievements in the field of industrial development during the past

three decades in India have been significant and substantial in many respects

There is considerable literature on cement industry befitting, its long and

chequerred history and high economic importance. A good deal of analytical
literature exists at broad levels covering problems associated with productivity,
financial performance, size and technology, manpower and location.

Gupta.M.C.(1989)discussed the study revealed that profitability of the

units has been consistently good things largely to the partial decontrol of cement.

HarshDwivedi (1993)discussed to its wider ramification, analyzing

among other things, stages of control, marketing practices, trends and
innovation, consumer preference and importance of management. He found that
existing capacity were inadequate to meet the growing demand for cement and
marketing practices lacked depth and realism.

R.Ramanujam (1996) discussed its wider ramification, analyzing among

covering all aspects of cement unit, cost of production, productivity, marketing
and finance. He found that in the liberalized economy, the industry has a
favorable market factories affect capacity utilization viz., power cut, inadequate
supply of coal and its poor quality and shortage of forenighe wagone, with all
these areas under government control, the gult must take necessary steps to
remove the hurdles
 M.selvaraj(1996)discussed to the limited aspects of cement unit like
finance, administration, human resource and marketing aspect etc. he found that
as cement market has turned out to be a buyers market in recent years, effort
should be made by the government and cement manufacturers association to
popularize cement by exhibiting various uses of cement and thus creating an
increase in the demand of cement.

K.shanmuga Vadivu (2002) discussed the research study has brought

sufficient market opportunity for the cement industry in different areas in Karur
district, it has been brought out in the report that. The various problems faced by
the dealer, the trend in cement industry. Almost all the companies understood
customers insipid for quality. The need of the hours is to have an effective
distribution network so that supplies reach and in time to customers. This will
also help to ensure increased sales and promotion activities.

1. M.C. Gupta, profitability analysis of cement industry with special

reference to Rajasthan 1988.

2. Harsh Dwivedi, cement industry in India Marketing perspectives, New

Delhi: Classier Publishing House, 1994.

3. R. Ramanujam, study on cement industry in Tamilnadu, 1996.

4. M.selvaraj, financial administration and human management in Indian

cement industriy,1996.

5. K. Shanmuga Vadivu, A study on marketing of cement in chettinad

cement corporation Ltd., puliyar at karur district in tamilnadu, 2002.
 CHAPTER - III

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:

 To find out the distribution channels of Birla cement in Thiruvarur district.

 To compare the distribution system of Birla cement with other cements.

SECONDARY OBJECTIVES:

 To find out the advertisement efficiency of Birla cement.

 To find out the marketing situations of Birla cement from others.

 To find out the present problems faced by dealers.

 To find out the any new scheme required by the dealers.

 To give valuable suggestions to the company for increase the sales volume
 CHAPTER - IV

RESEARH METHODOLOGY

Pilot study tells about the completeness, accuracy convenience of the

sampling from which it is proposed to select the sample.

4.1 RESEARCH DESIGN:

On analysis the condition the researcher found that descriptive research
design is appropriate for the research for the study.

DESCRIPTIVE RESEARCH:

Descriptive research includes surveys and fact-finding enquiries of

different kinds. The major purpose of descriptive research is description of the
state of affairs as it exists at present. In social science and business research we
quite often use the term Ex post facto research for descriptive research studies.
The main characteristic of this method is that the researcher has no control over
the variables; he can only report what has happening.

Most ex post facto research projects are used for descriptive studies in
which the researcher seeks to measure such items as, for example, frequency of
shopping, preferences of people, or similar data. Ex post facto studies also
include attempts by researchers to discover causes even when they cannot
control the variables. The methods of research utilized in descriptive research are
survey methods of all kinds, including comparative and correlational methods. In
analytical research, on the other hand, the researcher has to use facts or
information already available, and analyze these to make a critical evaluation of
the material.
4.2 PRE-TEST:
The researcher tested the questionnaire with Hundred respondents chosen
from different consumer at random and checked whether this questionnaire was
understandable.

4.3 SAMPLING TECHNIQUES:

The researchers select the judgment sampling model for his researcher
work.

4.4 SAMPLE SIZE:

The researcher selected the 100 respondents for the present study in
Thiruvarur District.

4.5 AREA OF ANALYSIS:

The researcher has identified Thiruvarur district as the area of analysis for
this project study.

 KUDAVASAL
 NIDAMANGALAM
 TIRUTTURAIPPUNDI
 MANNARGUDI
 NANNILAM
 VALANGAIMAN

4.6 DATA COLLECTION TECHNIQUES

The researcher used a Quetionnaire, which was self developed after having
session of discussion with marketing manager. The statistical techniques such as
on the way of analysis of various chi-square were applied to draw meaningfull.
4.7 HYPOTHESIS TEST

CHI-SQUARE ANALYSIS:

This test was employed for testing hypothesis. It was used only when
the data satisfied the required conditions.

Chi-square test is applied here to know whether there is a relationship

between Awareness of consumers.

PROCEDURE FOR CHI-SQUARE TEST:

The procedure for the test is given below:

1. DEFINITION OF THE PROBLEM:

First we have to define the problem in a clear-cut manner.

2. FORMULATION OF HYPOTHESIS:

Then we have to formulate Null hypothesis as well as alternative

hypothesis on the basis of our base assumption on research question.

3. DEGREES OF FREEDOM;
After fixing hypothesis, the degrees of freedom is calculated by using the
formula,
DF =(R-1) (C-1)
Where R= denotes the no. of rows and
C= denotes the no. of columns

4. FINDING OUR CALCULATED VALUE:

Here, we observe frequency only, not the expected frequency.

 The expected frequency is calculated by multiplying the row total or
column total and divided this by total number of respondents for each and every
observed frequency.

Then the calculated values are found out by the following formula:
χ2 = (Oi-Ei)2
Ei
Where, Oi Denotes Observed frequency and
Ei Denotes Expected frequency.

5. FINDING OUT THE TABULATED VALUE:

Tabulated value is found out from table at a specified significant level.

6. ACCEPTANCE OR REJECTION OF HYPOTHESIS:

If the calculated value is higher than the table value, we have to accept
the alternative hypothesis or we have to reject the null hypothesis of we have to
reject the lesser hypothesis tabulated or we have to reject the lesser null
hypothesis we have to reject the alternative hypothesis.
 CHAPTER-V

DATA ANALYSIS AND INTERPRETATION

Table No: 5.1

CEMENT DEALERSHIP TAKEN BY DEALERS

Brand No. of respondents Percentage (%)

Ramco 18 18
Chettinadu 26 26
Sankar 18 18
Birla 16 16
Dalmia 22 22
Total 100 100

Sources : Primary Data

Inference
From the above table, it is inferred that 18% of the respondents are having the
Ramco cement dealership, 26% of the respondents are having the Chettinadu cement
dealership, 18% of the respondents are having the Shanker cement dealership, 16% of
the respondents are having the Birla cement dealership and 22% of the respondents are
having the Dalmia cement dealership.

Chart No: 5.1

CEMENT DEALERSHIP TAKEN BY DEALERS

CEMENT DEALERSHIP TAKEN BY DEALERS

30
25
percentage

20
15
10
5
0
Ramco Chettinadu Sankar Birla Dalmia
CEMENT DEALERSHIP TAKEN BY DEALERS
 Table No: 5.2

HIGH SALES VOLUME IN CEMENT INDUSTRY

Brand No. of respondents Percentage (%)

Ramco 14 14
Chettinadu 26 26
Sankar 22 22
Birla 12 12
Dalmia 26 26
Total 100 100

Sources : Primary Data

Inference
From the above table, it is inferred that 14% of the respondents feel that Ramco
cement is getting high sales volume, 26% of the respondents feel that Chettinadu
cement is getting high sales volume, 22% of the respondents feel that Sankar cement is
getting high sales volume, 12% of the respondents feel that Birla cement is getting high
sales volume and 26% of the respondents feel that Dalmia cement is getting high sales
volume.

Chart No: 5.2

HIGH SALES VOLUME IN CEMENT INDUSTRY

HIGH SALES VOLUME IN THE CEMENT INDUSTRY

30
25
percentage

20
15
10
5
0
Ramco Chettinadu Sankar Birla Dalmia
HIGH SALES VOLUME IN THE CEMENT INDUSTRY
 Table No: 5.3

MOST VALUABLE SUPPLIERS

Brand No. of respondents Percentage (%)

Ramco 18 18
Chettinadu 26 26
Sankar 18 18
Birla 16 16
Dalmia 22 22
Total 100 100

Sources : Primary Data

Inference
From the above table, it is inferred that 18% of the respondents feel that the
Ramco cement is most valuable supplier, 26% of the respondents feel that the
Chettinadu cement is most valuable supplier, 18% of the respondents feel that the
Sankar cement is most valuable supplier, 16% of the respondents feel that the Birla
cement is most valuable supplier and 22% of the respondents feel that the Dalmia
cement is most valuable supplier.

Chart No: 5.3

MOST VALUABLE SUPPLIERS

30
25
percentage

20
15
10
5
0
Ramco Chettinadu Sankar Birla Dalmia

MOST VALUABLE SUPPLIERS

 Table No: 5.4

QUALITY OF THE BIRLA CEMENT

Overall rate No. of respondents Percentage (%)

Excellent 36 36
Very good 34 34
Good 22 22
Average 6 6
Poor 2 2
Total 100 100

Sources : Primary Data

Inference
From the above table, it is inferred that 36% of the respondents feel that quality
of the product is Excellent, 34% of the respondents feel that quality of the product is
Very good, 22% of the respondents feel that quality of the product is Good, 6% of the
respondents feel that quality of the product is Average and 2% of the respondents feel
that quality of the product is Poor.

Chart No: 5.4

QUALITY OF THE BIRLA CEMENT

40
35
30
percentage

25
20
15
10
5
0
Excellent Very good Good Average Poor

QUALITY OF THE BIRLA CEMENT

 Table No: 5.5

PRICE OF THE BIRLA CEMENT

Level of satisfaction No. of respondents Percentage (%)

Highly satisfied 2 2
Satisfied 12 12
Average 46 46
dissatisfied 30 30
Highly dissatisfied 10 10
Total 100 100

Sources : Primary Data

Inference
From the above table, it is inferred that 2% of the respondents are highly
satisfied with price, 12% of the respondents are Satisfied with price, 46% of the
respondents feel that Average , 30% of the respondents are Dissatisfied with price and
10% of the respondents are Highly dissatisfied with price.

Chart No: 5.5

PRICE OF THE BIRLA CEMENT

50
40
percentage

30

20
10
0
Highly s atis fied S atis fied Average dis s atis fied Highly
dis s atis fied
P RC E O F THE B IRLA C E M E NT
 Table No: 5.6

FAST MOVING BRAND IN CEMENT INDUSTRY

Brand No. of respondents Percentage (%)

Ramco 14 14
Chettinadu 26 26
Shanker 22 22
Birla 12 12
Dalmia 26 26
Total 100 100

Sources : Primary Data

Inference
From the above table, it is inferred that 14% of the respondents feel that Ramco
cement is fast moving in cement industry, 26% of the respondents feel that Chettinadu
cement is fast moving in cement industry, 22% of the respondents feel that Sankar
cement is fast moving in cement industry, 12% of the respondents feel that Birla
cement is fast moving in cement industry and 26% of the respondents feel that Dalmia
cement is fast moving in cement industry.

Chart No: 5.6

FAST MOVING BRAND IN CEMENT INDUSTRY

30

25

20

15
Series1

10

0
persentage Chettinadu Sankar Birla Dalmia

FAST MOVING BRAND IN CEMENT INDUSTRY

 Table No: 5.7

ORDER AND REPLACEMENT WITH BIRLA CEMENT

Level of satisfaction No. of respondents Percentage (%)

Highly satisfied 6 6
Satisfied 12 12
Average 62 62
dissatisfied 14 14
Highly dissatisfied 6 6
Total 100 100

Sources : Primary Data

Inference
From the above table, it is inferred that 6% of the respondents are highly
satisfied with order and replacement of the Birla cement, 12% of the respondents are
satisfied with order and replacement of the Birla cement, 62% of the respondents feel
that Average with order and replacement of the Birla cement, 14% of the respondents
are dissatisfied with order and replacement of the Birla cement and 6% of the
respondents are highly dissatisfied with order and replacement of the Birla cement.

Chart No: 5.7

ORDER AND REPLACEMENT WITH BIRLA CEMENT

70

60

50

40

30 Series1

20

10

0
persentage Highly Satisfied Average dissatisfied
satisfied

ORDER AND REPLACEMEN T WITHBIRLA CEMENT

Table No: 5.8

 AVAILABILITY OF THE BIRLA CEMENT

Level of satisfaction No. of respondents Percentage (%)

Highly satisfied 24 24
Satisfied 28 28
Average 38 29
Dissatisfied 8 11
Highly dissatisfied 2 8
Total 100 100

Sources : Primary Data

Inference

From the above table, it is inferred that 24% of the respondents are highly
satisfied with availability of the product, 28% of the respondents are satisfied with
availability of the product, 38% of the respondents feel that average with availability of
the product, 8% of the respondents are dissatisfied with availability of the product and
2% of the respondents are highly dissatisfied with availability of the product.

Chart No: 5.8

AVAILABILITY OF THE BIRLA CEMENT

35

30

25

20

15 Series1

10

0
persentage Highly Satisfied Average dissatisfied
satisfied

AVAILABILITY OF THE BIRLA CEMENT

Table No: 5.9

 MARGINS OFFERED BY BIRLA CEMENT

Level of satisfaction No. of respondents Percentage (%)

Highly satisfied 6 6
Satisfied 6 6
Average 68 68
dissatisfied 12 12
Highly dissatisfied 8 8
Total 100 100

Sources : Primary Data

Inference

From the above table, it is inferred that 6% of the respondents are Highly
satisfied with margins offered by the product, 6% of the respondents are Satisfied with
availability of the product, 68% of the respondents feel that Average with availability
of the product, 12% of the respondents are Dissatisfied with availability of the product
and 8% of the respondents are Highly dissatisfied with availability of the product.

Chart No: 5.9

MARGINS OFFERED BY BIRLA CEMENT

80

70

60

50

40
Series1
30

20

10

0
persentage Highly Satisfied Average dissatisfied
satisfied

MARGINS OFFERED BY B IRLA CEMENT

Table No: 5.10

 SATISFIED WITH BIRLA CEMENT DEALERSHIP

Satisfied No. of Respondent percentage

62
Yes 62
No 38 38
Total 100 100

Sources : Primary Data

Inference

From the above table, it is inferred that 62% of the respondents satisfied with
the Birla cement dealership, and other 38% of the respondents not satisfied with the
Birla cement dealership.

Chart No: 5.10

SATISFIED WITH BIRLA CEMENT DEALERSHIP

70

60

50

40

30 Series1

20

10

0
Yes No
SATISFIED WITH BIRLA CEMENT DEALERSHIP

Table No: 5.11

 ADVERTISEMENT OF THE BIRLA CEMENT

Advertisement No. of respondents Percentage (%)

Too high 18 18
High 42 42
Moderate 26 26
Low 14 14
Too low 0 0
Total 100 100

Sources : Primary Data

Inference

From the above table, it is inferred that 18% of the respondents feel that
advertisement offered by Birla cement is Too High, 42% of the respondents feel that
advertisement offered by Birla cement is High, 26% of the respondents feel that
advertisement offered by Birla cement is Moderate, 14% of the respondents feel that
advertisement offered by Birla cement is Low and 0% of the respondents feel that
advertisement offered by Birla cement is Too Low.

Chart No: 5.11

ADVERTISEMENT OF THE BIRLA CEMENT

45
40
35
30
25
Series1
20
15
10
5
0
Too high High Moderate Low Too low

Table No: 5.12

 SALES PROMOTIONAL EFFORTS OF THE BIRLA CEMENT

Overall rate No. of respondents Percentage (%)

Excellent 10 10
Very good 8 8
Good 12 12
Average 32 32
Poor 38 38
Total 100 100

Sources : Primary Data

Inference

From the above table, it is inferred that 10% of the respondents feel that sales
promotional is Excellent, 8% of the respondents feel that sales promotional is Very
good, 12% of the respondents feel that sales promotional is Good, 32% of the
respondents feel that sales promotional is Average and 38% of the respondents feel that
sales promotional is Poor.
Chart No: 5.12

SALES PROMOTIONAL EFFORTS OF THE BIRLA CEMENT

40

35

30

25

20

15

10

0
Excellent Very good Good Average Poor
SALES PROMOTIONAL EF FORTS OF THE BIRLA C EMENT

Table No: 5.13

 LIFE TIME OF THE OVERALL CEMENT

Brand No. of respondents Percentage (%)

Ramco 12 12
Chettinadu 14 14
Sankar 16 16
Birla 28 28
Dalmia 30 30
Total 100 100

Sources : Primary Data

Inference

From the above table, it is inferred that 12% of the respondents feel that
Ramco cement is having more life time, 14% of the respondents feel that
Chettinadu cement is having more life time, 16% of the respondents feel that
Sankar cement is having more life time, 28% of the respondents feel that Birla
cement is having more life time and 30% of the respondents feel that Dalmia
cement is having more life time.

Chart No: 5.13

LIFE TIME OF THE OVERALL CEMENT

35

30

25

20

15 Series1
10

0
Ramco Chettinadu Sankar Birla Dalmia
LIFE TIME OF THE OVE RALL CEMENT

Table No: 5.14

 RELIABILITY OF THE BIRLA CEMENT

Overall rate No. of respondents Percentage (%)

Excellent 16 16
Very good 12 12
Good 24 24
Average 36 36
Poor 12 12
Total 100 100

Sources : Primary Data

Inference

From the above table, it is inferred that 16% of the respondents feel that
reliability of the product is Excellent, 12% of the respondents feel that reliability of the
product is Very good, 24% of the respondents feel that reliability of the product is
Good, 36% of the respondents feel that reliability of the product is Average and 12% of
the respondents feel that reliability of the product is Poor.

Chart No: 5.14

RELIABILITY OF THE BIRLA CEMENT

40

35

30

25

20
Series1
15

10

0
Excellent Very good Good Average Poor
RELIABILITY OF THE BIRLA CEMENT

Table No: 5.15

FINANCIAL SCHEMES OF THE BIRLA CEMENT

 Response No. of respondents Percentage (%)

Yes 12 12

No 88 88

Total 100 100

Sources : Primary Data

Inference

From the above table, it is inferred that 12% of the respondents satisfied with
financial schemes of the Birla cement, and other 88% of the respondents not satisfied
with financial schemes of the Birla cement.

Chart No: 5.15

FINANCIAL SCHEMES OF THE BIRLA CEMENT

100
90
80
70
60
50
Series1
40
30
20
10
0
Yes No
FIN A N C IA L SC H E M E S TH
O FE B IR L A C EM E N T

Table No: 5.16

MARKET RESEARCH IN CEMENT INDUSTRY

 Brand No. of respondents Percentage (%)
Ramco 12 12
Chettinadu 18 18
Sankar 14 14
Birla 34 34
Dalmia 22 22
Total 100 100

Inference

From the above table, it is inferred that 12% of the respondents feel that Ramco
cement is doing market research in cement industry, 18% of the respondents feel that
Chettinadu cement is doing market research in cement industry, 14% of the respondents
feel that Sankar cement is doing market research in cement industry, 34% of the
respondents feel that Birla cement is doing market research in cement industry and
22% of the respondents feel that Dalmia cement is doing market research in cement
industry.

Chart No: 5.16

MARKET RESEARCH IN CEMENT INDUSTRY

40

35

30

25

20 Series1
15

10

0
Ramco Chettinadu Sankar Birla Dalmia
MARKET RESEARCH IN C EMENT INDUSTRY

Table No: 5.17

DELIVERY PERIOD BY BIRLA CEMENT

 DELIVERY PERIOD No. of respondents Percentage (%)
1-3days 34 34
3-5days 36 36
5-10days 16 16
10-13days 8 8
13-15days 6 6
Total 100 100

Sources : Primary Data

Inference

From the above table, it is inferred that 34% of the respondents answered
that with in1-3 days they are getting their product, 36% of the respondents
answered that with in 3-5 days, 16% of the respondents answered that with in 5-
10 days, 8% of the respondents answered that with in 10-13 days and 6% of the
respondents answered that with in 13-15 days they getting their product.

Chart No: 5.17

DELIVERY PERIOD BY BIRLA CEMENT

40

35

30

25

20 Series1
15

10

0
1-3days 3-5days 5-10days 10-13days 13-15days

DELIVERY PERIOD BY B IRLA CEMENT

CHI-SQUARE TEST -1

Association between more life time and reliability of the Birla cement.
Observed frequency:-

Statement:

Null Hypothesis:
There is no significance different between more life time and reliability of the
Birla cement.

Alternative Hypothesis:
There is significance difference between more life time and reliability of the
Birla cement.

χ2 = (Oi-Ei)2
Ei
Ei= RT*CT
GT
E11 = 12 * 16 = 1.92
100
E12 = 12 * 12 = 1.44
100
E13 = 12 * 24 = 2.88
100
E14 = 12 * 36 = 4.32
100
E15 = 12 * 12 = 1.44
100
E21 = 14 * 16 = 2.24
100
E22 = 14 * 12 = 1.68
100
E23 = 14 * 24 =3.36
100
E24 = 14 * 36 = 5.04
100
E25 = 14 * 12 = 1.68
100
E31 = 16 * 16 = 2.56
100
E32 = 16 * 12 = 1.92
100
E33 = 16 * 24 = 3.84
100
E34 = 16 * 36 =5.76
100
E35 = 16 * 12 = 1.92
100
E41 = 28 * 16 = 4.48
100
E42 = 28 * 12 = 3.36
100
E43 = 28 * 24 = 6.72
100
E44 = 28 * 38 = 10.08
100
E45 = 28 * 12 = 3.36
100
E51 = 30 * 16 = 4.8
100
E52 = 30 * 12 = 3.6
100
E53 = 30 * 24 = 7.2
100
E54 = 30 * 36 = 10.8
100
E55 = 30 * 12 = 3.60
100

Expected frequency:-

1.92 1.44 2.88 4.32 1.44 12

2.24 1.68 3.36 5.04 1.68 14

2.56 1.92 3.84 5.76 1.92 16

4.48 3.36 6.72 10.08 3.36 28

4.80 3.6 7.2 10.8 3.36 30

16 12 24 36 12 100
Calculation of chi-square:

Oi Ei (Oi-Ei)2 (Oi-Ei)2/Ei
1 1.92 0.8464 0.4408
1 1.44 0.1936 0.1344
1 2.88 3.5344 1.2272
6 4.32 2.8224 0.6533
3 1.44 2.4336 1.6900
1 2.24 1.5376 0.6864
1 1.68 0.4624 0.2752
1 3.36 5.5696 1.6576
8 5.04 8.7616 1.7384
3 1.68 1.7424 1.0371
2 2.56 0.3136 0.1225
1 1.92 0.8464 0.4408
4 3.84 0.0256 0.0066
6 5.76 0.0576 0.0100
3 1.92 1.1664 0.6075
6 4.48 2.3104 0.5157
4 3.36 0.4096 0.1219
8 6.72 1.6384 0.2438
8 10.08 4.3264 0.4292
2 3.36 1.8446 0.5504
6 4.80 1.4400 0.3000
5 3.60 1.9600 0.5444
10 7.20 7.8400 1.0888
8 10.80 7.8400 0.7259
1 3.60 6.7600 1.8777

χ2= (Oi-Ei)2 17.12

Ei
Therefore Degrees of freedom in this case
= (r-1) (c-1)
= (5-1) (5-1)
= 16

The table value of χ2 for 16 degrees of freedom at 5% level of significance

is 26.296.

CONCLUSION:

Since calculated value of χ2 is 17.12 less that tabulated value, null

hypothesis may be accepted at 5% level of significance and, it is found from the
test of Hypothesis that there is no significant association between more life time
and reliability of the Birla cement.
 CHI-SQUARE TEST – 2

Association between sales promotional effects and reliability of Birla cement.

Observed frequency:-

Sales promotional Reliability of Birla cement

effects
Ramco Chettinadu Sankar Birla Dalmia Total
Ramco 2 2 3 3 2 12
Chettinadu 6 6 12 11 3 38
Sankar 3 2 2 2 3 12
Birla 4 1 6 18 3 32
Dalmia 1 1 1 2 1 6
Total 16 12 24 36 12 100

Statement:
Null Hypothesis:
There is no significance different between sales promotional effects and
reliability of Birla cement.

Alternative Hypothesis:
There is significance difference between sales promotional effects and
reliability of Birla cement.
χ2 = (Oi-Ei)2
Ei
Ei= RT*CT
G

E11 = 12 * 16 =1.92
100
E12 = 12 * 12 = 1.44
100
E13 = 12 * 24 = 2.88
100
E14 = 12 * 36 = 4.32
100
E15 = 12 * 12 = 1.44
100
E21 = 38 * 16 = 6.08
100
E22 = 38 * 12 = 4.56
100
E23 = 38 * 24 =9.12
100
E24 = 38 * 36 = 13.68
100
E25 = 38 * 12 = 4.56
100
E31 = 12 * 16 = 1.92
100
E32 = 12 * 12 = 1.44
100
E33 = 12 *24 = 2.88
100
E34 = 12 * 36 =4.32
100
E35 = 12 * 12 = 1.44
100

E41 =32 * 16 = 5.12

100
E42 = 32 * 12 = 3.84
100
E43 = 32 * 24 = 7.68
100
E44 = 32 * 36 = 11.52
100
E45 = 32 * 12 = 3.84
100
E51 = 6 * 16 = 0.96
100
E52 = 6 * 12 = 0.72
100
E53 = 6 * 24 = 1.44
100
E54 = 6 * 36 =2.16
100
E55 = 6* 12 = 0.72
100

Expected frequency:-

1.92 1.44 2.88 4.32 1.44 12

6.08 4.56 9.12 13.68 4.56 38
1.92 1.44 2.88 4.32 1.44 12
5.12 3.84 7.68 11.52 3.84 32
0.96 0.72 1.44 2.16 0.72 6
16 12 24 36 12 100

Calculation of chi-square:
 Oi Ei (Oi-Ei)2 (Oi-Ei)2/Ei
2 1.92 0.0064 0.0033
2 1.44 0.3136 0.2177
3 2.88 0.0144 0.005
3 4.32 1.7424 0.4033
2 1.44 0.3136 0.2177
6 6.08 0.0064 0.0010
6 4.56 2.0736 0.4547
12 9.12 8.2944 0.9094
11 13.68 7.1824 0.5250
3 4.56 2.4336 0.5336
3 1.92 1.1664 0.6075
2 1.44 0.3136 0.2177
2 2.88 0.7744 0.2688
2 4.32 5.3824 1.2459
3 1.44 2.4336 1.6900
4 5.12 1.2544 0.2450
1 3.84 8.0656 2.1004
6 7.68 2.8224 0.3675
18 11.52 41.9904 3.6450
3 3.84 0.7056 0.1837
1 0.96 0.0016 0.0016
1 0.72 0.0784 0.1088
1 1.44 0.1936 0.1344
2 2.16 0.0256 0.0118
1 0.72 0.0784 0.1088

χ2= (Oi-Ei)2 15.4755

Ei

Therefore Degrees of freedom in this ca

= (r-1) (c-1)
 = (5-1) (5-1)
= 16

The table value of χ2 for 16 degrees of freedom at 5% level of significance

is 26.296.

CONCLUSION:

Since calculated value of χ2 is 15.4755 less that tabulated value, null

hypothesis may be accepted at 5% level of significance and it is found from the
test of Hypothesis that there is no significant association between sales
promotional effects and reliability of Birla cement.

CHI-SQUARE TEST -3
 Association between financial schemes and satisfaction with Birla cement
dealership.

Observed frequency:-

Financial Satisfaction with Birla cement dealership

schemes
Yes No Total
Yes 8 4 12
No 54 34 88
Total 62 38 100 Statement:

Null Hypothesis:
There is no significance different between financial schemes and satisfaction
with Birla cement dealership.

Alternative Hypothesis:
There is significance difference between financial schemes and satisfaction
with Birla cement dealership.

χ2 = (Oi-Ei)2
Ei
Ei= RT*CT
GT

E11 = 12 * 62 = 7.44
100
E12 = 12 * 38 = 4.56
 100
E21 = 88 * 62 = 54.56
100
E22 = 88 * 32 = 33.44
100

Expected frequency:-

7.44 4.56 12
54.56 33.44 88
62 38 100

Calculation of chi-square:

Oi Ei (Oi-Ei)2 (Oi-Ei)2/Ei
8 7.44 0.3136 0.0421
4 4.56 0.3136 0.0687
54 54.56 0.3136 0.0057
34 33.44 0.3136 0.0093

χ2= (Oi-Ei)2
Ei 0.12

Therefore Degrees of freedom in this case

= (r-1) (c-1)
 = (2-1) (2-1)
=1

The table value of χ2 for 1 degrees of freedom at 5% level of significance

is 3.841.

CONCLUSION:

Since calculated value of χ2 is 0.12 less that tabulated value, null

hypothesis may be accepted at 5% level of significance and, it is found from the
test of Hypothesis that there is no significant association between financial
schemes and satisfaction with Birla cement dealership.

CHAPTER - VI

FINDINGS OF THE STUDY

 (26%) of the respondents are having Chettinadu cement dealership. And
16% of respondents are having Birla cement dealership.

 (26%) of the respondents feel that Chettinadu cement is having high sales
volume. At the same time Birla cement is having less sales volume.

 (26%) Chettinadu cement most valuable suppliers from dealer’s point of

view. And Birla cement (16%) of respondents are considering most
valuable suppliers.

 (92%) of the respondents feel that quality of the product is excellent. And
(8%) of the respondents feel that quality is poor.

 (14%) of the respondents satisfied with price of the products. And (86%)
of the respondents not satisfied with price of the products.

 (26%) Chettinadu cement and (26%) Dalmia cement they are moving fast
in cement industry. And (12%) Birla cement is moving slowly.

 (6%) of the respondents feel that order and replacement is highly

satisfied. And (62%) of the respondents feel that average.

 (28%) of the respondents highly satisfied with availability of the product.

And (10%) of the respondents not satisfied.

 (12%) of the respondents satisfied with margins offered by the product.

And (68%) of the respondents feel that margins of the product is average.

 (62%) of the respondents satisfied with Birla cement dealership. And

(38%) of the respondents not satisfied.

 (42%) of the respondents feel that advertisement offered by Birla cement

is too high. And (14%) of the respondents feel that advertisement is low.
 (10%) of the respondents feel that sales promotional efforts of the Birla
cement is excellent. (38%) of the respondents feel that poor.

 (30%) Dalmia cement, (28%) Birla cement they are having more life
time. And (12%) Ramco cement has less life time from others.

 (52%) of the respondents satisfied with reliability of the Birla cement.

And (12%) of the respondents not satisfied.

 (12%) of the respondents satisfied with the financial schemes of the Birla
cement. And (88%) of the respondents not satisfied.

 (70%) of the respondents satisfied with delivery period of the product

with in 5 days. And (30%) of the respondents not satisfied.

 From the chi-square test we find out that there is no significant

association between more life time and reliability of the Birla cement.

 From the chi-square test we find out that there is no significant

association between financial schemes and satisfaction with Birla cement
dealership.

 From the chi-square test we find out that there is no significant

association Sales promotional effects and reliability of Birla cement
 CHAPTER - VII

SUGGESTION

 Birla cement should concentrate in credit facility of the dealers.

 Fixed the standard price of the product

 Birla cement should concentrate on sales man visit for wide marketing.

 Birla cement should concentrate to attract the dealers.

 Birla cement should improve their sales promotional efforts.

 Birla cement does a market research and gets feed back.

 Birla cement should concentrate to give incentives to the sub-dealers also.

 Birla cement should concentrate to fulfill the service for dealers required.
 CHAPTER - VIII

CONCLUSION

After analysis the data we have concluded that Chettinadu cement, Sankar

cement, and Dalmia cement they are captured first three place and Birla cement

is in fourth place. Because the sales volume of the Birla cement is very low

compare than others and the aware of the Birla cement is very less in Thiruvarur

dist. Moreover Birla cement has limited dealership with dealers.

So automatically there is lack of availability creates. Therefore Birla

cement has to improve its sales promotional efforts as well as follow some

strategies through effective market research and get feedback from their

consumers and customers(dealers).And give more advertisement so that move

powerful than others and fixed the standard price.

At the same time quality (life time of the cement) delivery time of the

Birla cement is good.

“IN SIMPLE WORDS BIRLA CEMENT IS UNDER DEVELOPING STAGE IN THIRUVARUR

DIST”
 CHAPTER - IX

LIMITATION OF THE STUDY

One of the important of the study was lack of time. Though the
respondent to the study was vast due to the time constraints the sample size was
limited.

The researcher has difficulty with most of the respondents who was not
willing to cooperate with the study, as they were very busy with their work.

The research had also difficulty in getting some information, which the
respondents were not interested to give.

The researcher had difficulty with the respondents because they did not
fill up the questionnaire in proper time.

Another limitation of the study was confined with not only retailers but
also consumers for survey of this study.
 CHAPTER - X

SCOPE OF THE FURTHER STUDY

* The scope of the study is confirmed to distribution channel with special

reference to the “BIRLA CEMENT” in Thiruvarur district.

* The study can help to the management to know the factors why their sales
volumes are low.

* The study will help to improve the sales volumes of the “BIRLA
CEMENT”

* The recommendation and suggestion of the study can also be applied to the
similar project or similar situation

CHAPTER - XI
 ANNEXURE

A STUDY ON DISTRIBUTION CHANNELS SURVEY WITH

SPECIAL REFERENCE TO “BIRLA CEMENT” IN
THIRUVARUR DISTRICT

QUESTIONNAIRE

1. NAME :

2. AGE :

3. EDUCATION QUALIFICATION :

4. ADDRESS :

5. WHAT ARE THE CEMENT DEALERSHIP DO YOU HAVE?

A. RAMCO ( )
B. CHETTINADU ( )
C. SANKAR ( )
D. BIRLA ( )
E. DALMIA ( )

6. WHICH COMPANY GETS HIGH SALES VOLUME IN CEMENT

INDUSTRY?

A. RAMCO ( )
B. CHETTINADU ( )
C. SANKAR ( )
D. BIRLA ( )
E. DALMIA ( )

7. IN YOUR POINT OF VIEW WHO IS THE MOST VALUABLE

SUPPLIERS?
 A. RAMCO ( )
B. CHETTINADU ( )
C. SANKAR ( )
D. BIRLA ( )
E. DALMIA ( )

8. WHAT IS YOUR OPINION ABOUT THE QUALITY OF BIRLA

CEMENT?

A. EXCELLENT ( )
B. VERY GOOD ( )
C. GOOD ( )
D. AVERAGE ( )
E. POOR ( )

9. KINDLY GIVE YOUR SUGGESTION RELATED TO THE PRICE OF

BIRLA CEMENT?

A. HIGHLY SATISFIED ( )
B. SATISFIED ( )
C. AVERAGE ( )
D. DISSATISFIED ( )
E. HIGHLY DISSATISFIED ( )

10. WHICH IS THE FAST MOVING BRAND IN YOUR TOWN?

A. RAMCO ( )
B. CHETTINADU ( )
C. SANKAR ( )
D. BIRLA ( )
E. DALMIA ( )

11. PLEASE RATE THE ORDER AND REPLACEMENT OF BIRLA

CEMENT?

A. HIGHLY SATISFIED ( )
B. SATISFIED ( )
C. AVERAGE ( )
D. DISSATISFIED ( )
E. HIGHLY DISSATISFIED ( )

12. PLEASE RATE THE AVAILABILITY OF BIRLA CEMENT?

 A. HIGHLY SATISFIED ( )
B. SATISFIED ( )
C. AVERAGE ( )
D. DISSATISFIED ( )
E. HIGHLY DISSATISFIED ( )
13. ARE YOU SATISFIED WITH THE MARGINS OFFERED BY BIRLA
CEMENT?

A. HIGHLY SATISFIED ( )
B. SATISFIED ( )
C. AVERAGE ( )
D. DISSATISFIED ( )
E. HIGHLY DISSATISFIED ( )

14. DO YOU SATISFIED TO TAKE THE BIRLA CEMENT DEALERSHIP?

A. YES ( )
B. NO ( )

15. PLEASE MENTION ADVERTISEMENT OFFERED BY BIRLA

CEMENT?

A. TOO HIGH ( )
B. HIGH ( )
C. MODERATE ( )
D. LOW ( )
E. TOO LOW ( )

16. PLEASE MENTION SALES PROMOTIONAL EFFORTS OF THE BIRLA

CEMENT?

A. EXCELLENT ( )
B. VERY GOOD ( )
C. GOOD ( )
D. AVERAGE ( )
E. POOR ( )

17. WHICH CEMENT GIVES MORE LIFE TIME FROM OTHERS?

A. RAMCO ( )
B. CHETTINADU ( )
C. SANKAR ( )
D. BIRLA ( )
E. DALMIA ( )
18. WHAT DO YOU UNDERSTAND THE RELIABILITY OF THE BIRLA
CEMENT?
 A. EXCELLENT ( )
B. VERY GOOD ( )
C. GOOD ( )
D. AVERAGE ( )
E. POOR ( )

19. BIRLA CEMENT OFFERED ANY FINANCIAL SCHEMES?

A. YES ( )
B. NO ( )

20. WHICH COMPANY GIVES MORE IMPORTANCE TO MARKETING

RESEARCH?

A. RAMCO ( )
B. CHETTINADU ( )
C. SANKAR ( )
D. BIRLA ( )
E. DALMIA ( )

21. PLEASE MENTION DELEVERY PERIOD OF THE BIRLA CEMENT?

A. 1-3 DAYS ( )
B. 3-5 DAYS ( )
C. 5-10 DAYS ( )
D. 10-13 DAYS ( )
E. 13-15 DAYS ( )

22. GIVE YOUR VALUABLE SUGGESTION TO THE OVERALL CEMENT

INDUSTRY?



BIBLIOGRAPHY
BOOKS

1.Marketing Management “Philip Kotler” [PRENTICE HALL OF INDIA PVT,LTD

NEW DELHI-110001,2003.] 11th EDITION

2. Research Methodology “ C.R.Kothari”[NEW AGE

INTERNATIONAL(P)LIMITED,HYDERABAD]
2ND EDITION.

3. Marketing “Dr N. Rajan and sanjith.R.Nair”[SULTAN CHAND&SONS

Daryaganj New Delhi-110002,1987]6th EDITION.

4. Marketing Management S.A.Sherleker[PRENTICE HALL OF INDIA PVT,LTD

NEW DELHI-110001,2003.] 1stEDITION

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