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ON
(Manoj Kumar)
ACKNOWLEDGEMENT
First & Foremost, I am indebted to and would like to express my sincere gratitude
towards my project guide Mr. Surinder Bhatia for extending his kind support &
guidance and thus helping me in the execution and the preparation of the project
and for improving my understanding of statistical techniques which I used in
persuasion of my project report, as well as, helped me to determine, assess and
understand the conceptual framework and theoretical underpinning within the
scope of study. Without his active support and help, this project could not have
been completed.
I am also thankful to Mr. Vivek Jain (TSM) for giving me the opportunity to take
his kind support and other staff members Mr. Pankaj, Mr. Nirpal, Mr. Rajneesh
Sharma for their kind co-operation, encouragement & environment that played a
vital role at every step of my project completion.
Last but not least, I m also grateful to respondents for parting their valuable time
to make this project a success.
Manoj Kumar
PREFACE
This is to certify that Mr. Manoj Kumar, final year student of M.B.A his
worked on the research project entitled “Effective sale promotion in cement
industry in Patiala region” under my supervision . He has showed a
tremendous zeal, working spirit and enthusiasm towards this project.
I certified that this research work is original and have the
requisite standard of an M.B.A student . Therefore I recommend the same for
evaluation.
I wish him all the best in his future endeavors.
Vivek Jain
Territory sales Manager
Grasim Industries Ltd. Patiala
Table of Contents
1. DECLARATION i
2. ACKNOWLEDGEMENT ii
3. PREFACE iii
4. CERTIFICATE 1
5. TABLE OF CONTENTS 2
6. PROJECT OVERVIEW 4
8. WHAT IS CEMENT?
Different Types of Cement 7
14. CONCLUSION 59
Project Overview
Through cement is a core product but due to rise in competition in market as new
entrants have entered in the market and competition has increase. So it was
To find out the Effective sale promotion in cement industry existing dealer /
retailers
Demand for cement is linked to the economic activity in any country. Broadly, it
can be categorized into demand for housing construction (homes, offices etc.)
and infrastructure creation (ports, roads, power plants etc). The real driver of
cement demand is creation of infrastructure; hence cement demand in emerging
economies is much higher than developed countries where the demand has
reached a plateau. In India too, the demand for cement will be affected by
spending on infrastructure (including housing).
With the boost given by the government to various infrastructure projects, road
network and housing facilities, growth in the cement consumption is anticipated
in the coming year. The favorable housing finance environment is expected to
fulfill the vast housing requirements, both in rural and urban areas. The increase
in infrastructure projects by the government coupled with the construction of the
Golden Quadrilateral and the North-South and East-West corridor projects have
led to an increase in consumption of cement. This increase is expected to
continue in the future. The reduction in import duties is not likely to affect the
industry as the cement produced is at par with the international standards and
the prices are lower than those prevailing in international markets. The graph
below show the consumption of cement in different areas of housing,
infrastructure and industries.
WHAT IS CEMENT?
Cement is a mixture of limestone, Clay, Silica and Gypsum. It is a fine powder
which when mixed with water sets to a hard mass as a result of hydration of the
constituent compounds. It is the most commonly used construction material.
Cement is manufactured by burning a mixture of limestone and Clay at high
temperatures in a kiln, and then finely grinding the resulting clinker along with
Gypsum. The end product thus obtained is called Ordinary Portland Cement
(OPC).
materials such as limestone and shale, which is sintered (cause to become solid
mass by heating without melting), ground, and mixed with small amounts of
calcium sulphate and calcium carbonate. Cement is activated by water and when
clay; used with water and sand or gravel to make concrete and mortar.
clay; used with water and sand or gravel to make concrete and mortar
OPC, popularly known as grey cement, has 95% clinker and 5% of Gypsum
and other materials. It accounts for 70% of the total consumption. White
cement is a variation of OPC and is used for decorative purposes like
rendering of walls, flooring etc. It contains a very low proportion of iron oxide.
Ordinary Portland cement is the most commonly used cement for a wide
range of applications. These applications cover dry-lean mixes, general-
purpose ready-mixes, and even high strength pre-cast and pre-stressed
concrete.
4. White Cement:
White Portland cement has essentially the same properties as gray cement,
except for color, which is a very important quality control issue in the industry.
It is manufactured using fuel oil (instead of coal) and with iron oxide content
below 0.4% to ensure whiteness. Special cooling technique is used. It is used
to enhance aesthetic value, in tiles and for flooring. White cement is much
more expensive than grey cement.
5. Specialized Cement:
Oil Well Cement: is made from clinker with special additives to prevent any
porosity.
Rapid Hardening Portland cement: It is similar to OPC, except that it is
ground much finer, so that on casting, the compressible strength increases
rapidly.
Water Proof Cement: OPC, with small portion of calcium stearate or non-
saponifibale oil to impart waterproofing properties.
with an installed Capacity of 198.30 million tones as on 31st March, 2008. The
during the last two decades, and some of the plants can be compared in every.
Respect with the best operating plants in the world. The industry is highly energy
intensive and the Energy bill in some of the plants is as high as 60% of cement
manufacturing cost. Although the newer plants are equipped with the latest state-
measures.
The Indian cement industry is a mixture of mini and large capacity cement plants,
ranging in unit Capacity per kiln as low as 10 tpd to as high as 7500 tpd. Majority
of the production of cement in the country (94% ) is by large plants, which are
defined as plants having capacity of more than 600 tpd. At present there are 124
The Ordinary Portland Cement (OPC) enjoys the major share (56%) of the total
Portland Slag Cement (PSC). A positive trend towards the increased use of
blended cement can be seen with the share of blended cement increasing to
limitations posed by raw material and fuel sources. Most of the cements plants in
India are located in proximity to the raw material sources, exploiting the natural
resources to the full extent. The southern region is the most cement rich region
The Indian cement industry is about 90 years old and its main sources of energy
are thermal and electrical energy. The thermal energy is generally obtained from
coal, and the electrical energy is obtained either from grid or captive power plants
South accounts for 31% of cement production capacity of the country, North
accounts for 23% of the total production capacity. West accounts for 16% of the
total production capacity.. East and Central Regions account for 16% and 14% of
the total production capacity of the country respectively. Indias top three cement
prodution capacity states are: -
Rajasthan 16%
M.P. 10%
Trade between these regions is on a very low scale mainly because of the
transportation bottlenecks and uncompetitive cost of transportation. The
Southern region dominated the cement consumption at 48.14 mn tonnes in FY
07-08, accounting for about 32% of total domestic cement consumption.
Company Profile
UltraTech Cement
UltraTech Cement Limited has an annual capacity of 18.2 million tonnes. It manufactures and
markets ordinary portland cement, portland blast furnace slag cement and portland pozzalana
cement. It also manufactures ready mix concrete (RMC).
UltraTech Cement Limited has five integrated plants, six grinding units and three terminals — two
in India and one in Sri Lanka.
UltraTech Cement is the country’s largest exporter of cement clinker. The export markets span
countries around the Indian Ocean, Africa, Europe and the Middle East.
The group mainly has two cement units – Grasim and Ultra tech.
Grasim Cement
Grasim ventured into cement production in the mid 1980s, setting up its first cement plant at
Jawad in Madhya Pradesh and since then it has grown to become a leading cement player in
India.
Leveraging the strong equity and goodwill of the house mark, the company has a strong national
brand UltraTech cement under the Aditya Birla Group logo. Grasim is also nurturing some
regional brands like Vikram Cement and Rajashree Cement.
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's
largest private sector companies, with consolidated net turnover of Rs.184 billion and a
consolidated net profit of Rs.29 billion (FY2009).
In cement, Grasim along with its subsidiary UltraTech Cement Ltd. has a capacity of 41.6 million
tpa and is a leading cement player in India. In July 2004, Grasim acquired a majority stake and
management control in UltraTech Cement Limited. One of the largest of its kind in the cement
sector, this acquisition catapulted the Aditya Birla Group to the top of the league in India.
Cement
Grasim and Ultra Tech together have a cement capacity of 31.20 mtpa. And
when the B K Birla cement companies also come into the fold, the Aditya Birla
group would have a cement capacity of 37.86 mtpa, making it clearly the largest
cement maker of India.
The Aditya Birla Group bought over the cement business of L&T for around Rs.
2,200 crore. L&T allowed its name to be used for about a year. Then from 19 th
November 2003,the name was changed to ultra tech cemco.This name also
didn’t last for long and finally the ultra tech cemco was changed to Ultra Tech
cement. These stages of evolution of ultra tech cement are listed below:
2001
:: Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to
15.3 per cent by October 2002
:: Durgapur grinding unit
2002
The Grasim Board approves an open offer for purchase of up to 20 per cent of
:: the equity shares of Larsen & Toubro Ltd (L&T), in accordance with the
provisions and guidelines issued by the Securities & Exchange Board of India
(SEBI) Regulations, 1997.
:: Grasim increases its stake in L&T to 14.15 per cent
:: Arakkonam grinding unit
2003
:: The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement
business into a separate cement company (CemCo). Grasim decides to
acquire an 8.5 per cent equity stake from L&T and then make an open offer
for 30 per cent of the equity of CemCo, to acquire management control of the
company.
2004
:: Completion of the implementation process to demerge the cement business of
L&T and completion of open offer by Grasim, with the latter acquiring
controlling stake in the newly formed company UltraTech
2006
Narmada Cement Company Limited amalgamated with UltraTech pursuant to
a Scheme of Amalgamation being approved by the Board for Industrial &
Financial Reconstruction (BIFR) in terms of the provision of Sick Industrial
Companies Act (Special Provisions)
Raw Material:
Careful selection and scientific proportioning of raw material with the use of latest
technology enables manufacturing of high quality cement. Rigorous hourly tests
are conducted on raw material. Laboratories at all plants are equipped with
sophisticated facilities.
Advantages:
Higher workability
Lower consumption
Enhanced durability
Quicker construction
Overall economy
Applications :
1. All Kinds of constructions including precast and prestressed concrete,
masonry works
2. Slip form constructions
3. Rehabilitation and retrofitting works
4. Cement based products such as pipes, tiles, blocks, poles,etc.
5. Roads, runways, bridges and flyovers
6. Water retaining structures
UltraTech Cement recently bagged an award for being the highest exporter of the
year from CAPEXIL for the eighth time in a row for its sterling performance. A
leading cement exporter, its plants have also received various awards for
environment protection, social awareness, safety and management of better
industrial relations.
The company has been credited with boosting its exports of cement and clinker
last year by 25 per cent to 4 million tonnes from 2.8 million tonnes in 2005-2006.
stringent quality control and testing in the best laboratories ensure that cement
and clinker produced from its plants conform to and surpass international
standards. The laboratory is equipped to test cement as per ASTM, British and
Euro standards. All the plants are ISO 9001 certified for the latest production
process and 14001 certified for environmental management. The cement plant in
Gujarat has an additional OHSAS 18001 certification as well for occupation
hazards and safety parameters.
The company has a captive jetty at the Gujarat plant. The jetty length of 337
meters and width of 23 meters is capable of handling ships of 45,000 DWT with
11 meters draft. Loading of cement and clinker onto the ship is carried out by a
ship loader, which is fed by a four km long conveyor belt that connects the plant
to the jetty. UltraTech Cement is the first and only Indian cement company to
obtain an EC certification for this plant. The accreditation, given by Bureau
Veritas, is a pre-requisite to supply cement to EC member countries. UltraTech is
one of the few Asian cement companies to receive this recognition. The export
markets span countries around the Indian Ocean, Africa, Europe and the Middle
East.
The Hirmi Cement Works in Chattisgarh and the Jharsuguda Cement Works in
Orissa make them ideal locations for export of cement and clinker to Nepal and
Bangladesh. With captive railway sidings to facilitate loading of railway rakes and
a high-tech production facility for cement and clinker, UltraTech Cement has
found wide acceptance in these neighboring countries
SALE PROMOTION
"In modern marketing the question is not whether to promote but rather what to
say, to whom and how often. A good product, an attractive price and an
accessible distribution must be supported by an effective promotion to satisfy
customer needs. Promotion activity include advertising, sales promotion, public
relation, and direct marketing. Promotion can also be viewed as the management
of the customer buying process of pre-purchase, purchase and post purchase."
FUNCTION OF PROMOTION:-
Sales promotion methods differ according to the target audience. They can be
directed at consumer promotion, trade promotion, and sales force promotion.
(a) Consumer promotion method Free sample Coupons Rebates Premium Price
off Contests Display/Demonstration
(c) Sales contests Trade shows and conventions Gift items Promotional kits
Bonus and commissions
Effects of Promotion
1. The present day market is very competitive due to the large number of rivals
and substitutes. With the help of promotion producer must create product
differentiation in the minds of consumers.
2. Promotion is very essential to communicate the use of the product and the
nature of the product to consumers and middlemen
3. Nowadays most of the consumers market their products in wider area and the
consumers are also very large in number. In such cases personal selling alone
cannot be used and so all the steps for promotion are to be followed.
4. During the periods of depression it is essential to maintain at least some
minimum market. Therefore it is very essential to use promotion.
RESEARCH METHODOLOGY
This project was undertaken for two main objectives was to carry out market
survey for knowing prevailing market condition of UltraTech In Patiala (PB)
The second objective was to study the sales and promotion activities undertaken
by UltraTech cement and other player in the market.
To attain these two objectives various other sub objective are needed to be
achieved. These are listed below.
8. Analysis of data
Having gathered the data, the researcher has to proceed towards drawing
conclusion by logical inference .At this stage, the data is in a tabulated
form and requires to be interpreted .Thus, analysis involves the refinement
and manipulation of data. It basically involves:
a).Bringing the raw data in to measured data.
b).Summarizing the data
c).Applying analytical methods to manipulate the data so that their
interrelations and quantitative meaning become evident.
d).Tools of analysis :Percentage method
Limitations of Research Project
1. The usable respondents were 110 such a sample size may not be
statistical significant to evaluate the findings due to scarcity of time and
the same could not be increased any further.
3. Unintended error on the part of respondents may have crop into the
research
Q. 3 If other then what types of sale promotion help, are you getting
from the company ?
Ans. (A) Tech. helps (B) Mktg help (C) Giveaway
(D) Schemes (E) Advt. (F) POP
Company Rank
UltraTech
Ambuja
ACC
Shree Ultra
JK
JP
Bangur
Q. If UltraTech then what types of sale promotion help, are you getting from
the company ?
(A) Tech. helps (B) Mktg help (C) Giveaways
(D) Schemes (E) Advt. (F) POP
Mktg. Help
84%
Schemes Giveaways
62% 42%
Q If other then what types of sale promotion help, are you getting from the
company ?
(A) Tech. Help (B) Mktg help (C) Giveaway (D)
Schemes (E) Advt. (F) POP
Dealers & retailers are get help for sale promotion from other company: -
Tech. Help
Mktg. Help
Mktg. Help
56% Giveaways
Advt. Schemes
45%
Advt.
POP
Schemes Giveaways
30% 27%
12%
70%
Giveaways
11% Advt.
POP 45% Advt.
31%
Schemes
Mktg. Help
Tech. Help
Tech. Help
19% POP
Schemes Giveaways
Mktg. Help 38%
25%
Company Rank
Give aways
Schemes
Boards & POP
T.V. Advt.
Company Rank
UltraTech
Ambuja
ACC
Shree Ultra
JK
JP
Bangur
Respondents Rank the cement com. on the basis of the their sale promotional
activity: -
Company Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
UltraTech 84 23 02 01 00
Ambuja 11 44 35 06 07
ACC 03 20 37 24 04
Shree Ultra 04 00 05 07 16
JK 01 05 02 04 05
JP 05 18 20 42 09
Bangur 02 00 00 09 15
Total Rank 110 110 101 93 56
UltraTech Rank 1
Rank 5 JP Rank 4
No effect
20%
1-10% 34%
11-20%
21-30%
40%
Q. Give some better suggestion for increase sale promotion that you
want.
…………………………………………………
Increase Schemes 44
T.V. Advt. 41
Increase POP 10
Increase Mktg. Officer visits 07
No any suggestion 26
Suggestion for Increase sale
5% Increase POP
32%
To attain the objective of the project detailed information was collected from the
market of Patiala. The market research has revealed many facts and figures
about the cement scenario in the market prevailing.
From dealers & retailers analysis it can be concluded that the quality of product
and packaging is good. Dealers rate the promotional activities of the company
as good and are satisfied by the company promotional policies and thus they
have loyalty towards the company.
They want some extra schemes and benefits from the company so they can
further increase there business
In the market, UltraTech cement is well known brand of cement. This is the result
of the good quality of the UltraTech cement along with their effective marketing
efforts, which covers the whole market customers of UltraTech cement are highly
satisfied with the use of it, as they do not face any problem after using it
There are seven major players in the market but the major completion is between
the two brands of cement. But because of good marketing efforts, UltraTech
cement is able to grasp most of the share of various other brands The market
survey undertaken shows that effective marketing and sale promotion efforts play
a vital role in creating the goodwill for the brand. The distribution channel of
UltraTech cement industry are well designed and effective this ensures timely
availability of cement to customers.
2. Internet
Large Plants
Companies (Members) (Nos.) 51
Cement Plants (Nos.) 140
Installed Capacity (Mn. t.) 198.30
Cement Production (Mn. t.) 2007-08 168.32
(Apr-Jul)
What is Cement?
Cement is a mixture of compounds, consisting mainly of silicates and
aluminates of calcium, formed out of calcium oxide, silica, aluminium
oxide and iron oxide.
Cement is manufactured by burning a mixture of limestone and clay at
high temperatures in a kiln, and then finely grinding the resulting
clinker along with gypsum. The end product thus obtained is called
Ordinary Portland Cement (OPC).
In India, OPC is manufactured in three grades, viz. 33 grade, 43 grade
and 53 grade, the numbers indicating the compressive strength
obtained after 28 days, when tested as per the stipulated procedure.
Apart from OPC, there are several other types of cement, most of them
meant for special purposes, e.g. sulphate resistant cement, coloured
cement, oil well cement, etc. However, there are some general purpose
cements, the commonest one being Portland Pozzolana Cement (PPC).
A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is
anchored by an extraordinary force of 130,000 employees, belonging to 30 different nationalities.
In India, the Group has been adjudged "The Best Employer in India and among the top 20 in
Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its
revenues flow from its overseas operations.
The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil, Italy, France,
Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia,
Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea.
:: A metals powerhouse, among the world's most cost-efficient aluminium and copper
producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three
biggest producers of primary aluminium in Asia, with the largest single location copper
smelter
:: No.1 in viscose staple fibre
:: The fourth largest producer of insulators
:: The fourth largest producer of carbon black
:: The 11th largest cement producer globally, the seventh largest in Asia and the second largest
in India
:: Among the world's top 15 BPO companies and among India's top four
:: Among the best energy efficient fertiliser plants
In India:
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not
come in the way of the need to keep learning afresh, to keep experimenting.
The Aditya Birla Group’s cement production for the period April-July 2009 has moved up by 16.66
per cent at 122.46 lakh mt as against 104.97 lakh mt during April-July 2008. Dispatches grew by
17.25 per cent at 122.00 lakh mt in April-July 2009 vis-a-vis 104.05 lakh mt in the corresponding
period last year.
Cement production for the month of July 2009 rose by 9.51 per cent at 27.55 lakh mt. Dispatches
are up by 10 per cent at 27.02 lakh mt over July 2008.
The Aditya Birla Group is the 11th largest cement producer in the
world and the seventh largest in Asia
Incorporated on 24 August 2000 as L&T Cement Limited
Cement business of Larsen & Toubro Limited demerged and vested
in company in 2004
Grasim acquired management control in July 2004
Together with Grasim, one of the largest cement producers in India
Our logo is the symbolic reflection of these traits. It is the cornerstone of our corporate unique
identity.