MANUFACTURING PROCESS AND MARKETING ANALYSIS

Summer Training Report on marketing branch in SHREE CEMENT

Submitted in partial fulfilment for the Award of MBA (DS) Part II Session 2012-13

Of Center for Entrepreneurship and Small Business Management, Maharshi Dayanand Saraswati University, Ajmer

By ANUJ KUMAR AGARWAL

Under Supervision of Alpi Maam

MAHARSHI DAYANAND SARASWATI UNIVERSITY, AJMER

Declaration

I hereby certify that Summer Training Report on Manufacturing process and Marketing Analysis, submitted in partial fulfilment for the award of Master of Business Administration (Dual Specialization) at Center for Entrepreneurship and Small Business Management, Maharshi Dayanand Saraswati University, Ajmer is an authentic record of work carried out by me. The matter embodied in this Summer Training Report has not been submitted for the award of any other degree or diploma.

Date:

Signature of the Student

(Name of the Student)

CERTIFICATE

This is to certify that Mr ANUJ KUMAR AGARWAL student of Class MBA(DS) Part-II has completed his SUMMER TRAINING REPORT under my supervision. To the best of my knowledge and belief that it is an original work by the candidate and based on his efforts and that this work has not been submitted in any other university or institution for any award of degree or diploma. I am satisfied with the quality and the standard of this work and recommend its acceptance in the partial fulfilment for the award of MBA(DS) degree.

Alpi Maam Center for Entrepreneurship and Small Business Management Maharshi Dayanand Saraswati University Ajmer.

Place: Ajmer Date:

CONTENTS

1.

Acknowledgement

2. Preface 3. Overview of SHREE CEMENT 4. Manufacturing process of cement 5. Swot analysis 6. Marketing strategy 7. Ambuja Marketing classification 8. Marketing strategy 9. Company brand analysis

ACKNOWLEDGEMENT
Perseverance, inspiration and motivation have always played a key role in the success of any venture. So hereby, its my pleasure to record thanks & gratitude to the persons involved. First, I thank Mr. Grijesh Kumar Gour, Manager (HR Dept.) ajmbuja cement, for his continuous support, stimulating suggestions and helping me all the time during my project.

No words would suffice my deep sense of gratitude to all the staff members & all head of departments imparting valuable information and guidance.

PREFACE

In a developing country like India, where infrastructure plays its pivotal role, cement industry is the building stone in any development process, It is one of the infrastructure there sectors without which it is impossible to imagine the development. The cement industry in India becomes very much competitive in last few years with the increasing growth of the cement industries day by day. The competition is becoming more stringent & crucial. Indian economy is facing a boom in the real estate. This is directly related with the cement sector. SHREE CEMENT being one of the top three players in the Indian market and the most exported Indian cement is an important part of the sector. The report also gives a detailed idea about the Indian cement industry and the key players.

BRIEF HISTORY OF SHREE CEMENT LIMITED

SHREE CEMENTs Ltd. (SSL) is one of the leading cement manufacturing companies in India. The Company, initially called Gujarat SHREE CEMENTs Ltd., was founded by Narotam Sekhsaria in 1983 with a partner, Suresh Neotia. Sekhsarias business acumen and leadership skills put the company on a fast track to growth. The Company commenced cement production in 1986. The global cement major Holcim acquired management control of SSL in 2006. Holcim today holds little over 46% equity in SSL. The Company is currently known as SHREE CEMENTs Ltd. Gujarat SHREE CEMENTs is a relatively young company in the industry. It began operations in 1986. In the last decade the company has grown tenfold. The total cement capacity of the company is 18.5 million tonnes. But, in a short span of 18 years, it has set new benchmarks in every aspects of the cement business. From cement quality to power consumption and from marketing to environment management. SHREE CEMENTs Limited, formerly known as Gujrat Ambuja Limited is a major Cement producing company in India. The Group's principal activity is to

manufacture and market cement and clinker for both domestic and export markets. Partnership The company has entered into a strategic partnership with Holcim, the second largest cement manufacturer in the world. Holcim had, in January, bought a 14.8 per cent promoters stake in the GACL for INR 21.4 billion. Currently (2007) Holcim holds about 30% of shares in SHREE CEMENTs Limited.

SHREE CEMENT LIMITED

VISION To become known as a premier cement maker offering high value realizations for customers and stakeholders alike. PHILOSPHY Let noble thoughts come to us from all over the world. MISSION To sustain its reputation as the most efficient cement manufacturer in the world. To drive down costs through innovative plant practices. To increase the awareness of superior product quality through a realistic and convincing communication process with consumers. To strengthen realizations through intelligent brand building. STRENGHTS People management: The ability to inspire individuals to rise closer to their true potential.

Customer focus: The humility to ask whether we would, as customer, is happy with the service that we are providing. Brand building: The ability to inspire the confidence that the customer is indeed buying the right product.

Strategic vision: The ability to avoid price sensitive markets in favour of those affords better realizations. Logistics management: The ability to have a product on the dealers shelf when a customer walks in.

Cost focused MIS: The ability to know exactly where inefficiencies lie.

Cost effective manufacture: The ability to remove these inefficiencies and make a product at the lowest possible cost.

MANUFACTURING PROCESS OF CEMENT

DEFINITION OF CEMENT Cement is binding material. Before the cement, murad was used as a binding material. Cement is one of the cheapest, readily available, strong and ling life material. The weathering effect on cement is very low. The basic raw material for cement is lime stone (at least 80% purity). The purest form of limestone is marble

RAW MATERIAL Raw materials used for manufacturing cement are:Cement grade lime stone, i.e. carbonayte (81.6%) 1. Late rite 2. Gypsum 3. Coal 4. Pozzolanic material (for PPC)

PROCESS At Rabariyawas units cement is manufactured by dry process. The stepwise process of cement manufacturing can be described as under:1. MINING: The main raw material, lime stone mined from jai surjana mines and transported from mines to crusher by dumpers.

2. CRUSSING ; Mined boulders are crushed to smaller size of 25mm in the crusher and impurities like clay etc. are seprated from it. There after it is preblended in a preblending yard by a stacker. This preblended limestone is reclaimed by a fed in to the raw grinding mill. 3. GRINDING : The lime stone is ground to a fine power, by impact of steel balls, During grinding, late rite (a iron compound) is added (percentage varies according to the quality of late rite, limestone and fuel) along with circulation of hot air to evaporate moistur contents is lime stone. 4. BLENDING/ PRE-HEATING: Pre heaters are used to heat the Raw material after it extracted from silos, before feeding in to kiln, pre heating (83.0c) is done by using hot gases. Large amount of CO2 during this pre-heating. Pre heating is done to ahieve maximum calcinations. 5. BURING IN THE KILN: Rotary kiln is essentially furnace hot low cylindrical in shape. It rotates on constant aped on a pair of rollers from coal mills is injected in the kiln through a nozzle and is used for generating heat on combustion. The kiln can arbitrarily be divided in to following zones. Calcination Zone; Calcinations taken place and remaining CO2 (Preheating) is released and whole material is in the from of CaO which is highly reactive. Burning Zone : (1400-1450C) At this Temperature the material converts from fine powder to plastic stage which reacts chemically with iron, silica, alumina, and forms a black substance (complex compound) termed as clinker. Cooling Zone: Clinker is cooled initially from 1400 to 240 C. After this further cooling is done outside the kiln by coolers. Cooled clinker is stored either in silos or under covered sheds.

6. GRINDING:

Chittor units use Horizontal ball mills.

For cement

grinding cooled clinker fed in to these mills. For required quantity of gypsum. The mixture are ground in ball mills and stored indifferent silos depending upon the grade (33,43,53) or type (OPC, PPC) In case of puzzling, certain percentage of Pozzlanic material (fly ash is also ground in the cement grinding mills along with the mixture of clinker and gypsum. The grade of cement depends upon the fineness of cement during grinding, finer the grinding higher the grade.

7. PACKING: The cement is extracted from the store silos and packed in PPE bags through rotary packers and dispatched by Rail/Road.

AMBUJA MARKETING CLASSIFICATON

1. PRIMARY

GUJRAJ

2. SECONDARY

RAJASTHANDELHI, PUNJAB, UP

(WEST), J.K., HARYANA

UTTRANCHAL

3. TERRITORY

M.P., CENTRAL U.P.

SWOT ANALYSIS
Here, an attempt has been made to understand the environmental factors of the Brand. The brands internal attributes can be classified as its strengths and weaknesses. The external environment can be understood by determining the opportunities and threats. Strengths 1. SHREE CEMENT is the only brand to be launched in the last years. Hence it is the only brand which is using the latest world class technology. This argument can be used to convince the people about its being better quality cement than all the other brands available in the market. 2. Our Brand is said to have good packaging. Survey results confirm this argument. 3. So far, Consumers are satisfied with our Brands overall Quality. It is said to have quick setting, good fineness and high strength. 4. Overall, Most of the Consumers who have used SHREE CEMENTat least once find it good quality cement and are using it or are willing to use it repetitively. Weaknesses 1. Due to light colour SHREE CEMENT has facing some problems. 2. Despite having good quality, good packaging and high availability, Ambujas customer demand is low. 3. Consumers are apprehensive about its long term reliability due to its being new cement and connected to Bangur cement.
4.

Dealers are also apprehensive about its future availability and reliability.

Opportunities 1. Due to the increasing liberal attitude and more focused attention of government towards real estate sector, cement demand is going to increase with more and more real estate companies coming to India resulting into more development and construction projects. 2. Rural Markets have huge potential demand due to rural development programs carried by government and private institutions and also due to increasing purchasing power of rural people. 3. Due to its being new cement, Distribution network is to be built such a way that it ensures the reach of our cement to the remotest areas.

Threats
1. Government has shown its concern over the high cement prices. 2. There are a number of competing brands in the market with strong brand names which are financially very strong and have huge capacities.

Selected Marketing Strategy

Current SHREE CEMENT Ratings Before stating the marketing strategies for making SHREE CEMENT number one brand, it will be nice to have a look over the position over which SHREE CEMENTis currently sitting under various parameters. To get the current picture, Respondents of the survey were asked to rate SHREE CEMENTbrand over the various parameters on a scale of 1 to 7 with 1 being of least important and 7 most important. Then the ratings of all parameters were averaged out over all respondents and Average ratings were plotted in a bar graph. Below is the Bar graph showing the average rating of various parameters.

Bangur Cement Ratings SHREE CEMENT Rating 7 6 5 4 3 2 1 0 4.53 3.02 3.21 5.58 5.88 5.44 5.35

gi ng

ilit y

es

Pr ic

in g

lit y

w ar en

Ad ve r

Pa c

Av a

1. Consistent quality is to be ensured to impart the impression of its being of good quality and better cement than others. 2. Quality should be improved and upgraded with the commencement of time and as new technology arrives in the industry. 3. Ambujas should also be written in hindi on cement bags so that the people who dont know English can identify it easily.

Br a

From the above Bar Graph, It can be clearly seen that, Despite of Quality, packaging and availability of the SHREE CEMENT good, the customer demand of the brand is low. The reason can also be argued from the plot that such is the case due to low advertising and not very good brand name. So efforts have to be made to increase the brand awareness and promote the promotional programs more aggressively. Marketing Mix Strategies
Product

C us

nd

t.

D em an

ua

ila b

ka

tis

4. 43-grade cement should be launched as some customers addicted to 43 grade end up in purchasing some other brand in spite of being interested in SHREE CEMENT. Price 1. Price of SHREE CEMENTshould be kept relatively competitive in comparison with other cements in market to ensure people not defray it because of its high price. 2. Price of SHREE CEMENTshould be kept same at all dealers shop of an area. Some dealers are said to sell the cement at much lower price than they are expected to. It is believed in the market that such dealers are doing the smuggling of cement from Rajasthan. This should be checked thoroughly and necessary action should be taken as soon as possible so as to ensure that it is perceived as premium quality cement and not as some cheap cement.

Distribution (Place)
SHREE CEMENT: How to sell Dealers 1. Efforts should be made to include all the reputed dealers of the area in our dealership network as dealer reputation is one of the deciding factors for purchasing Cement. 2. Efforts should be made to convince the dealer that he sells only SHREE CEMENT brand. 3. More Incentives should be provided to dealers to push them to sell more of our product. 4. Small Dealers, afraid of loosing other cements dealership, must be taken into confidence by providing them more incentives and ensuring them our cement availability and full guarantee about its quality.

5. To allure dealers to sell more of SHREE CEMENT, Target discounts should be provided to them. Dealers can also be sent on tours on fulfilling some specified criteria. 6. Dealers can be categorized in different categories on the basis of the amount of SHREE CEMENT they have sold. Categories can be like Silver, Gold, Platinum level dealers. This will give a motivation to low level dealers to work hard for selling our brand so that they can be promoted to higher level. 7. SHREE CEMENTLiterature should be provided to all dealers to help them to understand about the brand in a more detail. Dealers can further pass it on to masons/customers to convince them about SHREE CEMENTbeing a high quality cement and better than all other brands available in market. 8. To enhance the relationship with Business associate and truly give the meaning to the designation given, Company should provide items like tables/glass frames to dealers/sub-dealers.

Promotion
Brand Awareness 1. There is an immense need of consistent & aggressive advertising and promotion for at least next one year to ensure Ambujas brand awareness. Meets 1. More Mason Meetings 2. More Dealer/Sub-Dealer Meetings a. Helps in better interaction between company and dealers b. Enhances dealers/Contractors confidence in company and Brand c. Helps in promoting Brand through demonstrating product specialties and quality features

3. Along with regular monthly meets, Special meets should be held at the time of festivals and wishful comments should be sent across public through gifts/coupons/prizes. 4. Mobile Vans should be used to promote the brand and make public aware of its quality and making them clear that SHREE CEMENTis not related to others. 5. On-Site visits by technical people should take place where they can demonstrate practically why SHREE CEMENT is better than other cement and hence can better convince people to buy SHREE CEMENT instead of other brands.

Ad Mediums effectiveness

Before stating the recommendations for advertising of the brand, it will be nice to have a look over the effectiveness of various advertising mediums. To gauze the effectiveness of various advertising mediums, Respondents of the survey were asked to rate various advertising mediums on a scale of 1 to 5 with 1 being indicating least effective and 5 most effective. Then the ratings of all the mediums were averaged out over all respondents and Average ratings were plotted in a bar graph. Below is the Bar graph showing the average rating of various ad-mediums.

Ad-Mediums Effectiveness 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

4.02 3.14 2.56 1.84

4.19

4.07

4.33

4.14

er s

TV

s rd in g Ho a Sh o p

Advertising 1. More aggressive advertising need to be done to ensure brand awareness a. Bigger wall paintings b. Shop/Shutter paintings c. Tractor/Trolley paintings d. TV Ad should come on more frequently seen channels like Aaj Tak and Star TV/Sports along with current channels e. TV Ad duration should be increased to leave an impression and effect on viewers mind f. Stationary Items and Showy items 2. Wall painting more effective than shop and shutter paintings.

in gs W al Tr lP ac ai to nt r/T in gs ro l ly Pa in ti n gs

ap

in e

ag az

Ite

m s

Ne ws p

Br o

ch

ur e

s/

Pa in t

ifft

3. Water Tanker and Tractor/Trolley paintings are more effective than other shop and wall paintings as they roam around the whole village and hence come across more people resulting into better promotion. 4. More Stationary Items like Notepads, Pens, Pencils and Showy materials like calendar, brochures, and posters need to be provided to dealers to ensure Brands presence on dealers shop. 5. SHREE CEMENT Advertisement should show the SHREE CEMENT in Hindi so as to make it understand by common man who doesnt know English. Also there is an immense need of having a line in the ad that connects the people with SHREE CEMENT in reference of Cement and portrays the SHREE CEMENT brand as of better quality than others brands available in the market.

SHREE CEMENT: How to ensure demand

Contractors/Masons 1. Contractors/Masons should be provided appliances so as to bind them with the company and ensure their loyalty. 2. Gift items like jewelry / home appliances should be given to dealers / sub-dealers / contractors / masons to ensure their attachment with company and loyalty towards SHREE CEMENT. 3. Contractors/Masons should be sent for plant visits so that they can consider themselves as a part of the company and hence work for the betterment of the company. 4. Contractors/Masons must be assured full guarantee about the quality of SHREE CEMENT and also they must be provided any other support requirements needed by them.

Direct Consumers 1. Public is apprehensive about its quality due to its being connected with SHREE CEMENT. 2. Ambujas Periodic Daily should be started in which the information about Ambujas regular progress can be provided. This will help in making public aware of Ambujas progress and ensuring their association with Bangur. 3. More direct consumers promotion should be done as dealers are threatened by other big players of loosing their dealership if they sell Shree. It will also help in doing away the consumer apprehension about Ambujas quality. 4. Customer care needs to be looked upon to do away the consumers apprehension about Shree. It will also help in building and ensuring the customer loyalty. 5. To promote the brand among the youth, we should organize and sponsor the tournaments like cricket/volleyball/kabaddi in the rural areas. Also trophies/Certificates should be awarded to winners/runners/participants.
6.

Apart from holding dealers/masons meets in cities, Small level meetings should be organized at village level too. Such activities will create more awareness at ground level i.e. at villages where people rarely care about quality and only see price as deciding factor for buying cement.

7. Coupons/Prizes should be placed in cement bags to allure the contractors/masons/customer. They could vary from a single rupee coin to TV to small vehicles. Rural Marketing Strategies 1. Most of the companies fail to make a mark in the rural areas because of the fact that they try to implement the same marketing strategies as of urban areas neglecting the rural markets unique characteristics.

2. Rural Market is altogether different from urban market in more than one way. The psyche of the rural people, their purchasing behavior, economic level and rural areas infrastructure is very different from what we found in the urban areas and hence call for marketing strategies specifically designed for rural areas. 3. To understand the rural market, Attempt has to be made to find the unique characteristics of rural market by defining the term rural, determining the amount and flow of income and determining the types of products & packages that are typically used in the rural areas. 4. Popular media channels used in urban areas like TV, Radio, and Newspapers etc. are not going to pay too much in rural markets. 5. I am not suggesting that we should not use the conventional media like TV, Radio etc. We should use them but to make a breakthrough and become number one brand in the rural areas, we need to come out with new innovative and creative ways of promoting our brand which influence and leave a bigger impact over rural people. 6. We should try to explore the rural people interests and the activities they are concerned and touched with to find the opportunities for alternative ways of promotion.

AWARDS
o

2003-2004

Business World & FICCI Corporate Social Responsibility (CSR) award for recognising the impact of business on environment and society: second runner-up Asian Institute of Management CSR award for poverty alleviation

2004-2005

o o

Ernst & Young Entrepreneur of the Year (Manufacturing) Asian Institute of Management Award for Environmental Excellence

Greentech 'Environment Excellence Award' in the Gold category by Greentech Foundation to GACL, Bhatinda

'Enviroment Week awards' for plantation, air, noise and water pollution control and community development

'Safety Week awards' for safer mining

2005-2006

'Asian CSR Award' (Environment Excellence) 2005 for corporate sustainable development at GAC (India) Works

Centre for Science and Environment Green rating Project award to GACL (second rank)

'Best Environment Management Practices Award' for the Ropar unit from the State Pollution Control Board

Capexil 'Certificate of Export Recognition' to GACL (Mumbai) in recognition of outstanding export performance

Awards won by the Maratha Limestone Mine of Maratha Cement Works (a unit of SHREE CEMENTs Ltd) Upparwahi.

2007

In Mines Environment & Mineral Conservation WeekIndian Bureau of Mines

'Corporate Excellence Award 2007' awarded to ACL by the Indian Institute of Materials Management, Chandigarh

Dun & Bradstreet 'American Express Corporate Award 2007' to ACL

'National Award for Environmental Excellence' in Opencast Mining from NCBM (2nd place to Ambujas Sugala Limestone Mine)

2008

'Certificate of Merit' by Rajasthan State Productivity Council, Jaipur

'Gobar Times Green Schools Programme Awards' by Centre for Science and Environment (CSE) For the Year 2008 : Ambuja Public School : Rabriyawas

2009

BCT Panvel received re-certification on ISO 9001-2008, ISO 14001-2004 & OHSAS18001-2007

Ambujanagar has won 'Best Environmental Excellence in Plant Operation' National award by NCBM 2009 'Certificate of Appreciation' for Accident Free million man hour our worked - Gujarat Safety Council Baroda 2009

RESEARCH METHODOLOGY

Research in common parlance refers to search for knowledge. Without knowledge no job can be given perfection. It is the knowledge which shows, us the path and helps us to lead on it. In fact, research is an art of scientific investigation. Some people even consider research as a

movement, a movement from the known to unknown. The method which man employs for obtaining the knowledge of whatever the unknown can be termed as research. Research is an academic activity an as such the term should be used in technical sense. According to Clifford woody research comprises

defining the redefining problem, formulating hypothesis or suggesting solutions, collecting, organizing and evaluating data ; making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. This research is mainly based on analysis of secondary data available in Annual reports of SHREE CEMENT. An Elaborative study is made by comparing various options available for component of capital & their cost & also the use of fixed interest or dividend bearing securities in the total capital structure. Various statistical & mathematical techniques are used for comparison & calculation of data.

Finding
REASONS STATED BY RETAILER FOR BRAND PREFERENCE SHREE CEMENT :-

LAFARGE

ACC

a good image and brand loyalty among consumers

easily

PRISM CEMENT

ment, plastering work is good

JAYPEE CEMENT

ULTRATECH

Conclusion
Becoming the number one brand is not an easy task for SHREE CEMENT but at the same time it is also not impossible. SHREE CEMENThas to come out with some creative and innovative initiatives which havent been tried by any other competing brand so far. Today India seem to focus more on rural areas so tomorrows leader will be the one who will be able to make a breakthrough in the rural areas. Rural markets call for an altogether different marketing strategy which takes into consideration rural markets unique characteristics and preserve their tradition instead of trying to change it. For Shree, Journey has just begun and its a long tedious way ahead. It has to ensure the strong dealer network under its purview and a system should be put in place to evaluate and gauze the effectiveness of the network. Along with strong dealer network, it also needs to ensure the brand awareness for which some new creative promotional programs need to be planned to reach out to the remotest places.

APPENDIX
Market Survey Questionnaire:Q.1. What are the reasons for selecting Brand or Cement company : Rank the following Quality Colour Quick / slow setting Price Strength Recommendation by dealer

Q.2.

What are the reasons for not considering SHREE CEMENT?

Rank the following Quality Colour Quick / slow setting Price Strength Recommendation by dealer

Q.3.

Have you discontinued any of the earlier purchased brands?

1st brand 2nd brand 3rd brand

Q.4.

Who helped you in chossing this brand. Rank the following

Shop keeper Friends Neighbors Architect Contractor

Q.5.

At the time of selling cement the transportation facility should be prompt or not. ?

Q.6.

If not whether you are going to purchase another brand or wait for you regular brand.

Q.7.

What properties do you expect in good cement.

Rank the following Long life Light / dark colour Correct weight Durability Quick slow setting Strength

Q.8.

What are the aspects that worry you?

Rank the following Poor Quality Colour Short weight Quick / slow setting Poor strength Chipping / Peeling off Cracks

Q.9.

Do you think that the cement product of high pricing having good quality.

. Q.10. Brands available on the site / shop and their prices. . . .

Q.11.

Are you aware about SHREE CEMENT. ? .................................

Q.12.

Mention the SHREE CEMENT Strength and Weakness. ? Strengths .. Weakness ..

Q.13.

What are the Incentives / Discounts you are getting from SHREE CEMENT??

Q.14.

What are the Various Incentives / Discounts getting from Other Brands.?

BIBLIOGRAPHY

Website of SHREE CEMENT group. www.shreecementltd.com Statistical Department Of SHREE CEMENT Group. Marketing Department SHREE CEMENT UNIT RABARIYAWAS, PALI,

WWW.GOOGLE.COM WWW.wikipedia.COM ARTICLES FROM VARIOUS NEWS PAPERS: WWW.THEHINDU.COM WWW.TIMESOFINDIA.COM

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