32275864 Birla Cements Marketing

A PROJECT REPORT ON

Analysing the Marketing Mix

(Product, Price, Promotion and Place) of

Birla Cement Samrat in Satna Region

FOR BIRLA CORPORATION LTD. (CEMENT DIVISION)

SUBMITTED BY -

Pooja Singh

Deependra Singh

MBA (Marketing Management)

2011 Batch

INSTITUTE OF MANAGEMENT STUDIES, DEVI AHILYA UNIVERSITY INDORE

Acknowledgement

“Interdependence is a higher value than independence”

Knowledge in itself is a continuous process. Nevertheless, a day getting a practical knowledge is an important thing & most important thing is the support, guidance, motivation and inspiration provided by the different persons of different sections. At this moment of substantial enhancement, We find no words to express my gratitude for those who helped me directly , indirectly in making this report successful. I am indebted and thankful for the assistance received from various individuals. I am grateful to thank Mr. Sujeet Tiwari for giving me this great opportunity to do my project.

So I thank all those people who contributed to this project from the very beginning till its successful completion. This project could not have been completed without guidance Mr Ajit Singh, Asst. Officer (Marketing) ,Ashish Garg Asst. Officer (Marketing) and AK Shukla Asst. Officer (Marketing).

I extended to my sincere gratitude to Mr. Prabhat Pandey Asst. Officer (Marketing) of the Birla Corporation Ltd. in Satna. Mr Rizwan For his constant and able of guidance has been instrumental in large measure on the success of project. He suggest this study, and it has been great opportunity to learn about a subject of which had no previous knowledge for this, I am very grateful to him. Last but not least I would like to thanks my faculties & colleagues who guided me for project completion.

Pooja Singh

Deependra Singh

Contents

Cement industry in India

Introduction to the title

Objectives of the project

Scope of the project

Company Profile

Theoretical Background

Product

Promotion

Pricing

Research Methodology

ANALYSIS AND INFORMATION

Suggestion

Appendices

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INTRODUCTION TO THE TITLE Today it is fashionable to talk about the new economy. We hear that the business are operating in globalize economy; things are moving at a nanosecond pace our market are characterized by hyper competition and disruptive technologies are challenging every business and so business must adopt to empower consumer To become successful in such a competitive environment the business organizations have to be customer oriented. Customers need and want must be taken care of.” Built customer and not only products”. Customer must be delighted This information about the market could be collected by the way of proper market survey. Rom the market survey we get the feed about the good or services of the organization .For this purpose the said project work is undertaken. The project was carried out for knowing prevailing market condition of Birla Cement in Satna Region .The second objective of the project was to study the sales promotion activities undertaken by Birla and its other competitors. The project was carried out in the marker of Satna of Madhya Pradesh state. There are six market players in cement industry. They are Birla Cement, Prism Cement, JayPee Cement, ACC Cement, Ambuja Cement, Maihar Cement selling in the market. The information about the market was gathered by visiting retailers in the market. Interview of retailers was taken depending upon their accessibility. While doing the project attempt was made to collect maximum information about the marker. To get actual and correct information ,it was not told retailers that the survey is conducted by Birla Cement for the obvious reasons .Number of retailers were visited to get the actual picture of the market. Again, the retailers of each grade (according to the performance) were visited, to get each and every detail about the market. Most of the time was spent in travelling for one retailer were reluctant to give the information , as they do not want to disclose their business details. Visits to such retailers were loss of time, money and energy. After collecting the derailed information about the market analysis is done. In the analysis, the observations recorded during the project were carefully analyzed and the results are prepared. The findings and result of the project work are given at the later stage in the report.

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OBJECTIVE OF THE PROJECT This project was undertaken for three main objectives was

To analyse the Market Mix for Birla Cements In Satna (Madhya Pradesh)

To carry out market survey for knowing prevailing market condition of Birla Cements In Satna District (Madhya Pradesh)

To study the sales and promotion activities undertaken by Birla 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.

To analyze the market share of Birla Cement in Satna market. To know the customers preference for the brands of cement. To know the preference of retailer for sorting different brands of cement. To understand the effectiveness of various sales promotion activities of cement. To know preference of retailers for different gift and incentives. To analyze the sales promotion activities of various brands. To analyze the transportation facilities for Birla and other cement companies. To analyze the frequency of visits of marketing representative of various companies

Thus it attempt to find ways to increase market share, to increase customer satisfaction and thus increase the business prospects.

Scope of the Study 1. The study has been done for the Cement so more or less it helps in understanding the consumer preference towards the cement market. 2. The study can help in analyzing certain weak point, improving on which a company can overcome the low sales of its cement but only in Satna region

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CEMENT INDUSTRY IN INDIA

India is the world's second largest producer of cement after China, with cement companies adding nearly 11 million tonnes (MT) capacity during April-September 2009, taking the total installed capacity to around 231 MT by September 2009.

With the boost given by the government to various infrastructure projects, road networks and housing facilities, growth in the cement consumption is anticipated in the coming years. According to Jyotiraditya Scindia, Minister of State, Ministry of Commerce and Industry, cement production could rise to 236.16 MT in FY11 and touch 262.61 MT in FY12.

With almost total capacity utilisation levels in the industry, cement despatches have maintained a 10 per cent growth rate. Total despatches grew to 170 MT during 2007–08 as against 155 MT in 2006–07.

According to the Cement Manufacturer’s Association, cement despatches were 14.13 MT in December 2009, showing a growth of 13 per cent as compared to 12.48 MT in December 2008. During December 2009, cement production was 13.91 MT, registering a growth of 13 per cent as compared to 12.31 MT in December 2008. Between April to December 2009, cement production totaled 116.01 MT while cement despatches totaled 115.31 MT.

A few of the leading manufacturers are UltraTech/Grasim combine, Dalmia Cements, India Cements, Holcim etc.

Technological change

Continuous technological upgrading and assimilation of latest technology has been going on in the cement industry. Presently, 93 per cent of the total capacity in the industry is based on modern and environment-friendly dry process technology and only 7 per cent of the capacity is based on old wet and semi-dry process technology. There is tremendous scope for waste heat recovery in cement plants and thereby reduction in emission level.

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Cementing the Path to Progress Birla Corporation Limited

Time talks ,Long years ago, in 1919, a young man named Ghanshyam Das Birla set up the first Indian – owned jute mill near Kolkata. He called it Birla Jute Manufacturing Company.

Time watched as the small unit prospered. It also earmarked a young man to beacon the new industrial India.

Shri Madhav Prasad Birla, Shri GD Birla’s nephew, was born in 1918. Under his uncle’s tutelage he also inculcaed the timeless values that his uncle held so dear to life: integrity and enterprise. It was these very values that helped Shri MP Birla transform the humble jute manufacturing company into a mighty conglomerate: Birla Corporation Limited.

The company has crossed the 1900 – crore plus turnover mark and has widespread interests in: Cement, Jute, Auto Trims, Cushioned Vinyl Floor Covering, PVC Coated Wallpaper, Carbide, Industrial Gases and Synthetic Yarn. Today individual division is independently charting its own path but driven by some value system as envisaged by the visionary who laid the first bricks.

Amongst, widespread product range, cement is our core business. Cement produced by us also follows same value system as it has strength, integrity and trust in terms of quality.

Birla Corporation Limited; a multi activity company and pioneer in many fields is committed to development of the nation with widespread operations spanning the whole country and beyond. The company’s turnover exceeds Rs.1900 crore in a diverse range of product which include Jute & synthetic yarn, Cement, Calcium Carbide, Industrial Gases, Vinoleum Floor Coverings, PVC – Coated Cloth & Wall Papers as well as Auto trims (jute felt based car interiors manufactured with German technology). Counted amongst the larger plants of the cement division, Satna Cement Works and Birla Vikas Cement at Satna (MP) have an installed capacity of 2.18 Million tons at present which is projected to rise to 3.0 million tons in the near future. Birla Cement Samrat and Birla Cement Khajuraho are already leading Brands and frontrunners of company’s activities. Riding on the glory of very high standards of quality, the company products are premier priced in all the markets where it is available.

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CEMENT DIVISION Satna (Madhya Pradesh), Chanderia(Rajasthan), Durgapur (West Bengal), Raebareli (Uttar Pradesh)

The Cement Division of Birla Corporation Limited has seven plants, two each at Satna (M.P.) - Satna Cement Works & Birla Vikas Cement, Chanderia (Rajasthan) - Birla Cement Works & Chanderia Cement Works, Durgapur (W.B.) - Durgapur Cement Works & Durga Hitech Cement - and one at Raebareli (U.P.)-Raebareli Cement Works.

The total installed capacity of these plants is 57.8 lakh tonnes. They manufacture varieties of cement like Ordinary Portland Cement (OPC), 43 & 53 grades, Portland Pozzolana Cement (PPC), Fly Ash - based PPC, Low Alkali Portland Cement, Portland Slag Cement, Low Heat Cement and Sulphate Resistant Cement. The cement is marketed under the brand names of Birla Cement SAMRAT, Birla Cement KHAJURAHO, Birla Cement CHETAK, Birla Cement and Birla Premium Cement, bringing the product under the common brand of Birla Cement while retaining the niche identity of SAMRAT for blended cement, i.e. PPC & PSC, for all the units, KHAJURAHO (for the OPC product of Satna) and CHETAK (for the OPC product of Chanderia). The Division exports large quantities of cement to Nepal, under the brand names of Birla Cement Samrat, Birla Cement Khajuraho and Birla Cement. The special variety of Birla Cement SAMRAT, being produced by the company, is ideal for mass concrete, RCC/pre-stressed/precast structure (for reduced thermal crack), increased water tightness of concrete, increased resistance to sulphate soils and aggressive water and increased resistance to alkali aggregate reaction besides corrosion resistant properties.

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AWARDS AND CERTIFICATION SCW, BVC & DCW have received the ISO 9002 quality system certification, covering the entire range of production and marketing.

Satna Cement Works

Best in Energy Performance Award for Satna Cement Works from NCB, New Delhi & Ministry of Power, Govt. of India.

Years: 1993-94, 1994-95, 1995-96, 1996-97, 1997-98

Fuller Energy Conservation Award for Satna Cement Works from MP Chamber of Cement Manufacturers

Years: 1997-98, 1998-99, 1999-2000 & 2001-02 in category –A.

9th FL Smidth Energy Award i) “Reduction in Electrical Energy in Cement” - First Prize – 2006 ii) “Lowest Thermal Energy in Clinker “– Second Prize – 2006

Export Award for Satna Cement Works from CAPEXIL, Kolkata Years: 1993-94, 1994-95, 1996-97, 1997-98, 2001-2002.

Birla Vikas Cement

Best in Energy Performance Award for Birla Vikas Cement from NCB, New Delhi & Ministry of Power, Govt. of India. Year: 1986-87

Fuller Energy Conservation Award for Birla Vikas Cement from MP Chamber of Cement Manufacturers

Years: 1997-98, 1998-99 in category- B

9th FL Smidth Energy Award “Reduction in Electrical Energy in Cement” - Second Prize – 2006

Best Productivity Award for Birla Vikas Cement from National Productivity Council, New Delhi. Year: 1987-88

Export Award for Birla Vikas Cement from CAPEXIL, Kolkata Years: 1990-91, 1991-92, 1992-93, 1993-94, 1994-95, 1995-96, 1996-97, 1997-98, 2000-01, 2001-

02.

National Safety Award for Birla Vikas Cement from Ministry of Labour,Govt.of India Years: 1994 & 1996.

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Sagmania Limestone Mines

Mines Safety Award to Sagmania Limestone Mines, Satna by Director General of Mines Safety, Jabalpur

Years: 1997-98

Mines Environment & Mineral Conservation – Overall performance Award to Sagmania Limestone Mines, Satna by Indian Bureau of Mines, Dhanbad

Years: 1997-98 & 2002-03

Satna Unit was awarded the prestigious Best Energy Conservation Implementation Gold Award for Excellence in India Industries by Rajiv Gandhi Memorial National Committee, at Hyderabad in October 2004.

BVC & SCW have ranked 1st and 2nd on Health, Safety, Environment (HSE) Award, 2006 organized by The National Safety Council, M.P. & Chattisgarh Chapter

Power Plants : The Cement Division has two high-ash coal-based captive power plants at Satna (27 MW) and Chanderia (29.8 MW) each, commissioned in 2005-06. The power plant at Chanderia received the FIVE 'S' Workplace Management System Certification from QCFI, Secunderabad. Vindhyachal Steel Foundry Vindhyachal Steel Foundry is a unit of BCL at Satna. It has access to the latest technology and infrastructure to manufacture castings required by cement plants as per national/international standards.

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HRD MISSION

The Company believes that it is the TRUSTEE of its HUMAN RESOURCES and encourages to develop them to introspect deeply and learn to act not on directives but on inspiration from within, thus aiming to provide a strong motivation to our employees to become psychological co-owners of the organization and to succeed with DETERMINATION & COMMITMENT.

As facilitators of the growth process of the employees, we are committed to providing a work environment where people are -

Offered full opportunities and challenges to develop individually, enabling career growth.

Encouraged to acquire knowledge to meet the challenges of new technologies and business needs in the changing scenario.

Educated and guided to inculcate and practise right values as are nurtured by the organization.

Provided strong motivation to take the organization ahead.

Assisted in creating and maintaining human resource system for optimizing human potential.

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SENIOR EXECUTIVES

Shri P.S. MARWAH

President (Satna Cement Works, Birla Vikas Cement & Raebareli Grinding Unit)

B.E. (Electrical), P.G. Dip. in B.A.

Shri S.K. Joshi

Sr. Joint President (Satna Cement Works, Birla Vikas Cement & Raebareli Grinding Unit)

B.Com, FCA

Shri J.S. Banthia

Sr. Vice President

Shri T.C. Jain

Jt. President (Mktg)

B.Com (Hons), FCA

Shri O.P. Dokania

Sr Vice President (Commercial) and

I/C of Raebareli Grinding Unit

I.C.W.A.

Shri R. Kakkar

Vice President (E&A)

B.E. (Hons.) [Electrical & Electronics]

Shri R.K. Dalmiya

Vice President (Stores & Building)

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PRODUCTS & BRAND NAMES

Location Units Products Brand Name

Chanderia (Rajasthan)

Birla Cement Works Chanderia Cement Works

PPC & OPC (43 Gr.) Birla Cement Samrat & Birla Cement `Chetak’

Satna (MP) Satna Cement Works Birla Vikas Cement

PPC & OPC (43 Gr.) Birla Cement Samrat Birla Cement `Khajuraho’

Raebareli (UP) Raebareli Grinding Unit PPC Birla Cement Samrat

Durgapur (WB)

Durgapur Cement Works Portland Slag Cement Birla Cement Samrat

Birla Cement Premium

Durga Hitech Cement PPC Birla Cement Samrat

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PLANTS & MARKETING NETWORK

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PLANT PROFILE

Counted amongst the larger plants of the Cement Division, Satna Cement Works and Birla

Vikas Cement at Satna (MP) have an installed capacity of 2.18 million tonnes at present

which is projected to rise to 3.0 million tonnes in the near future. Birla Cement Samrat and

Birla Cement Khajuraho are already leading Brands and frontrunners of company’s activities.

Riding on the glory of very high standards of quality, the company products are premierly

priced in all the markets where it is available.

PLANT LOCATION

Satna Cement Works has the distinction of being the first Cement Plant setup by the M.P. Birla Group in 1959, followed by other units in Chanderia, Durgapur and Raebareli. The plant premises housing Satna Cement Works (SCW) and Biria Vikas Cement (BVC) is within the city limits and about 4 Km away from Satna Railway Station. It is well connected by rail with all metropolitan cities. The nearest airport is at Khajuraho with daily service to Delhi.

HISTORY

Commissioning of one wet process kiln of 750 TPD capacity at Satna in 1959 marked the entry of Birla Group into Cement industry. Landmarks in growth of Satna Unit are:

1959

Commissioning of SCW with a single wet process kiln of 750 TPD

1964

Capacity raised to 1750 TPD with two additional wet process kilns.

1982

Commissioning of Biral Vikas Cement, a dry process kiln with 2500 TPD

1989

Conversion of SCW wet process kiln into a single dry process kiln with 2250 TPD

The present operating capacity of SCW and BVC are 2750 and 2650 TPD respectively.

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1998 Commissioning of 1000 TPD Grinding Unit at Raebareli for PPC manufacturing.

Total capacity

SCW & BVC

1.55 MTPA

Raebareli

0.36 MTPA

Types of Cements manufactured:

OPC - 33G, 43G, 53G PPC SRPC Low Alkali Cement IRS - T - 40 Cement

They are marketed under the Brand names BIRLA CEMENT KHAJURAHO & BIRLA SAMRAT.

PLANT DETAILS

Satna Cement Works & Birla Vikas Cement

Capacity - 2.18 Million Tonnes / Year

Range of Products -

OPC Grade 43 PPC (Flyash based)

Process – Dry Process

Salient Features -

1. Mine planning through computer based system. 2. 4.5 Kms long bi-cable ropeway between mines and the plant. 3. Stacker and reclaimer for limestone blending. 4. Vertical roller mill and ball mill with high efficiency separator. 5. Blending silo for Raw Mill. 6. Four / Five stage Preheater with calciner. 7. Modern energy saving Grate cooler. 8. Online X-ray analyzer. 9. State – of – the- art control system. 10. Alkali-By Pass system. 11. Electronic Packing Machines.

Facilities for Transportation -

Rail Broad Gauge Road Trucks, Trailors

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Packaging – Packed in PP bags – 50 Kg each

Captive Mines - Lease Area 10 Sq. Km. Mining Area 06 Sq. Km.

THERMAL POWER PLANT

27 MW Capacity

One 27 MW Capacity Steam Turbine Two 65 TPH each capacity ‘F’ grade coal based and Bio mass fired AFBC Boilers. Equipped with DCS controlled system and modern RO based water treatment plant. Latest pollution control equipments and monitoring system. Dedicated fuel handling system. Advance communication system.

12 MW Capacity

3 sets of 4 MW capacity steam turbines. 3 FBC ‘F’ grade coal fired boilers of capacity 32, 22 & 22 TPH. Latest pollution control equipments and monitoring system. Water treatment plant with de-mineralizing unit.

7.5 MW Capacity

One set of 5 MW and one 2.5 MW capacity steam turbines. 3 FBC ‘F’ grade coal fired boilers of capacity 25, 25 & 15 TPH. Latest pollution control equipments and monitoring system. Water treatment plant with de-mineralsing unit.

Diesel / Power Plant

2 sets of 6 MW HFO based 1 set of 4 MW HFO / Diesel based

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State-of-the-Art Manufacturing Process

Hi-tech Mining of Limestone

The raw materials which go into the production of cement, primarily limestone and clay, are extracted from the quarry by blasting. They are then crushed and transported to the plant, where they are stored and homogenized through stacker and reclaimer.

Raw Material Grinding and Burning

Very fine grinding provides a fine power known as raw meal, which is then pre-heated and enters the kiln. Flames reaching temperatures of 18000 C to 14500 C, before quenching it by air blasts. The burning process produces very reactive quality of clinker for the production of all cement.

Cement Grinding and Packing

Clinker and gypsum are finely ground together to obtain a "Ordinary Portland Cement". Secondary constituents are also added to make blended cement. Finally, the finished products are stored in large silos from where they are dispatched in bulk or in bags to where they will be used.

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FLOW DIAGRAM (Manufacturing Process)

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GLOBAL TECHNOLOGY

An international outlook and global quality concerns have added several dimensions to the company.

Computer aided deposit evaluation and mine planning. Preblending of limestone with stacker reclaimer from Schade Germany. Raw material grinding – Tirax Unidan FLS Denmark Vertical roller mill Fuller Loesche (USA) High efficiency separator

FULLER USA

Homogenization of raw mix - Controlled flow Silo FLS Denmark The IBAU central cone system (W.G.)

Pyro Process – Separate line Calciner FLS Denmark

In line calciner with hot meal re-circulation Alkali by pass system – Fuller USA

High efficiency cooler – IKN (W.G.) – AND CLS / CFG – FLS Denmark Cement Grinding - COMBIDAN Mill - FLS Denmark

Closed circuit ball mill with high efficiency separators electronic.

Electronic rotary packers- Electronic packaging machines with micro processor controlled Haver (W.G.)

Automation – centrally controlled computer room for automatic and centrally controlled manufacturing process.

Quality Control – XRF, XRD, Flame photometer with Site laboratory and central laboratory backed up with experienced staff, ensuring very reactive quality of clinker. Quality through technological excellence.

The Birla Corporation Manufactures cement in most modern Dry Process Plants with stringent quality control on Raw Materials and Finished Products. It has an FLS Kiln with SLC and Fuller Kiln with ILC.

The Fuller Kiln is also provided with Alkali Bypass system, the only one of its kind presently in operation in India.

Suitable grade Limestone with low magnesia content, having insignificant limit of alkalis and chlorides are used. Uniform feed is maintained by Stacker and Reclaimer system.

With Electronic Weight Feeders and FLS Unidon/Losche VRM grinding system raw mix is ground. It is conveyed to CF/IBAU Silos of Blending and storage before feeding to 4 / 5 stage Pre-heater Precalcinators Kilns operated on Siemens KPS system.

Clinker product is ground with best quality mineral gypsum in automatically controlled cement mills with Electronic Weigh Feeders and high efficiency O-Sepa separators. Fully automatic Haver Rotopackers for packing cement ensure perfect weighment.

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The whole process is controlled by a microprocessor based centralized controlled system and quality of product is checked at every step by XRF and XRD in addition to fully equipped modern laboratories.

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PRODUCT PROFILE

BIRLA CEMENT SAMRAT - PORTLAND POZZOLANA CEMENT ( PPC )

It is a blended Cement and incorporates an active constituent called flyash which is interground with clinker and gypsum, in Birla Cement Samrat High quality fly ash collected in dry stage is used as blended material. The flyash partly made by the company in its state of the – art captive power plant which has sophisticated electrostatic precipitators and fluidised bed boilers ensuring that only the finest quality flyash is used in the production of Birla Cement Samrat. Sophisticated arrangement have also been made for the collection of finest quality flyash in dry stage and its transportation in specially designed Capsule tankers from the source to the grinding stage.

Special Properties of Birla Cement “Samrat:

1. Setting : Similar to 43 & 53 Grade OPC

2. Strength : upto 53 Mpa (28 Days)

3. Workability : Better workability to produce segregation free cohesive concrete mix.

4. Corrosion Resisting Prosperities

Due to lower chloride content and higher fineness, blended cement concrete is relatively more impervious than Ordinary Portland Cement concrete. It provides better protection from the ingress of aggressive moisture and salts.

5. Heat of Hydration

Due to characteristics of the flyash and clinker the heat of hydration is lowest in Birla Samrat when compared with other Ordinary Portland Cement.

6. Durability

The above unique special features of BIRLA CEMENT ‘SAMRAT’ enhance the durability manifold which is very important in today’s context.

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APPLICATIONS

Birla Cement Khajuraho / Chetak – 43 grade Ordinary Portland Cement (Conforming to IS : 8112-1989)

RCC Works (Preferably where grade of concrete is M-30 and above)

Precast concrete items such as concrete pipes paving blocks, tiles building blocks etc.

Prestressed concrete components

Runways, concrete Roads, Bridges etc.

Multi-storey buildings

Birla Cement Samrat – Portland Pozzolana Cement-

(Conforming to IS: 1489 Part 1 - 1991)

It is a Hi-Tech general purpose cement compatible with Indian climatic conditions and can be used for residential and industrial constructions with advantages over OPC.

Plain and reinforcement cement concrete (RCC).

Precast concrete works

Brick and stone masonry

Ideal for plastering and finishing works due to its high fineness

Mass concrete pours such as in dams etc.

Marine structures

Plain and reinforced cement concrete.Ordinary

Plastering and flooring

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STRENGTHS

Selection of quality raw materials

Inbuilt design of plant equipment

Continuous monitoring of quality and process parameters for

o Quality Assurance

o Quality consistency

Enriched with 48 years of experience in cement manufacturing

Dedicated team of experts for Research and Development.

Customer delights approach.

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Pioneer in Nation Building

Birla Cement Khajuraho / Samrat in Prestigious Projects

106 meter High Asea Brown Boveri Universal Cable Tower at Satna (MP).

Reliance Industries - Hazira Project

Euri Hydroelectric Project, J & K

Dal-hasti Hydroelectric Project J & K

Imprizelo S.P.A. Kaligandki A Hydroelectric Project Nepal

N.T.P.C. Limited

Kalptaru Power Transmission Ltd.

Bajaj Hindustan Limited

Larsen & Toubro Limited

Maytas Infrastructure Limited

Nagarjuna Construction Company

Oriental Structural Engineering Limited

Rohan Builders (India) Limited.

Mukand Limited

UAL-Bengal (Utkal Asbestos / UAL – Uttar Pradesh).

U.P. Asbestos Limited

Balrampur Chini Mills Limited, etc.

…… …..and many more prestigious organizations

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QUALITY

QUALITY ASSURANCE

DISCIPLINE OF QUALITY ASSURANCE

* ISO-9001 Certification for Quality Management System by M/s. RWTUV, Germany since 1995 both for SCW & BVC.

QUALITY POLICY

Birla Corporation Limited (Cement Division), Satna manufacturing Cement and Clinker commits itself to comply with the requirements of its customers and to continually improve the effectiveness of the Quality Management System.

THIS SHALL BE ACHIEVED BY:

Providing consistent quality Cement and Clinker to its customers conforming to national / customers’ specifications.

Setting and reviewing quality objectives for quality improvement, cost effectiveness and customer satisfactions.

Communicating the Policy to all employees for their active participation in the improvement process.

ENVIRONMENT PROTECTION

Satna Cement Works is committed to provide clean environment to the society and constantly endeavours to keep Air, water and noise pollution well below the stipulated levels. In recognition of its commitment to and implementation of environmental improvement measures, Bureau of Indian Standards awarded IS/ISO – 14001 Certification to Satna Cement Works, Birla Vikas Cement and Sagmania Limestone Mines in Sept.1999. Some of the major activities that are being carried out and a continuous basis are listed below :

Pollution Control Equipments in use:

Electrostatic Precipitators

15 Nos.

Bag Dust Collector

58 Nos.

Pocket Filter

60 Nos.

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Plantation in the Factory and Quarry as on date 411290 Nos. Recycling of wastewater through treatment in oxidation pond and used for gardening etc. Sludge oil generated from DG set being reused for firing in the Kiln. Water sprinkling inside the factory for controlling fugitive dust. Installed dust suppression system on coal belt/ Clinker belt and Iron ore crushing belt conveyors, to suppress dust emission. Flyash transportation from Thermal Power stations by pneumatic conveying system in closed tankers. ENVIRONMENTAL FRIENDLY PRODUCTION & PROCESS IS/ISO-14001 Certification for Environment Management System by BIS, New Delhi since 1999 both for SCW & BVC. ENVIRONMENTAL POLICY The Birla Corporation Limited Satna is engaged in the Manufacturer of different varieties of Cement using dry process having two plants with an installed capacity of 2.50 Million Tones per annum. THE CORPORATION COMMITS TO :

Prevention of pollution by setting appropriate objectives and targets for its activities, review the same and strive to achieve the goal.

Comply with all relevant environmental legal requirements and other requirements to which it subscribes and related to environmental aspects.

Continual improvement of its environmental performance.

Conserve Energy and natural resources.

Encourage recycle and re-utilization of waste products.

Documents, Implement and Maintain an Environmental Management System in conformity to IS / ISO / 14001.

Communicate its Environmental policy to all its employees including those working on our behalf and provide appropriate training to personnel responsible for Implementation of the EMS.

Make this policy available to the public.

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Promotion strategies by birla cement

Promotion is persuasive communication. It is a highly visible element in the marketing mix. It tells the target customer product, price, and place. It tells also known as marketing communication. Promotion consist of activities that facility exchanges with target customers through persuasive communication to stimulate demand. According to Professor Philip kotler:- “Promotion includes all the activities the company undertakes to communicate and promote its products to the target market.” 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:- Promotion is a tool to influence target customer and to face competition. It performs four functions:-

Information Persuasion Reminding Reinforcing

PROMOTION MIX The promotion mix is the combination of advertising, public relations, sales promotion, personal selling and direct marketing tools that help achieve marketing objectives.

ADVERTISING:- Advertising in any paid form of nonpersonal communication by an identified sponsor to promote product.

For advertising birla cement uses following mediums :-

Print media – News paper Magazines Leaflates Brouchers Calenders

Out door media –

Hordings Billboard Wall painting Posters

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Transit media – Tractor trally painting

2. PUBLIC RELATION: - It refers to programmes designed to promote or protect a company image and products. Publicity is any unpaid form of communication through media about an organization, its policies and products. For public relation birla cement has press and news releases. Birla cement also try to fulfil its corporate social responsibility. Birla cement also has masons meets and architects meet to make its good will and to educate and aware them. 3. PERSONAL SELLING: - personal selling is personal communication with customers to persuade them to buy products. It permits interaction and relationship building. Sales persons provide feedback about the market, competitors and customers. Company representatives of birla cement visits on weekly bases to the dealers. 4. DIRECT MARKETING: - It is persuasion by manufacturer to specific customers. The tools of direct marketing are: 1. Face to face selling 2. Mail 3. Catalogue marketing 4. Telephone 5. E-mail. 5. SALES PROMOTIONS: - Sales promotion has been increasing in popularity as a tool. Marketers are using it aggressively. Sales promotion refers to short term incentives to stimulate demand. It is used to create a stronger and quicker purchase response. It can be directed at consumers, middleman and sales personnel. It supplements advertising and facilitates personal selling. According to Professor William J. Stanton:- “Sales promotion refers to demand –stimulating devices designed to supplement advertising and facilitate personal selling. According to professor Philip kotler:- “Sales promotion consists of diverse collection of incentives tools, mostly short term, designed to stimulate quicker and or greater purchase of particular product /services by consumer or trade.

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NATURE OF SALES PROMOTION: 1. It is short term.

2. It provides incentives

3. It aims at quicker response:

4. It is directed at target audience.

OBJECTIVE OF SALES PROMOTION 1. Objective for consumer promotion:-

(a) Encourage greater purchase volume (b) Attract new customer (c) Introduce new products 2. Objective for trade promotion:-

(a) Carry and push new item (b) Increase reseller’s inventories (c) Attract new channel members (d) Offset competitive promotion (e) Better store display 3. Objective for sales force promotion

(a) Motivate sales force (b) Support new product METHOD OF SALES 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

(b)Trade promotion methods: Free goods Allowance Prices-off Sales contest Gift items Credit facilities Trade sho

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(c) Sales contests Trade shows and conventions Gift items Promotional kits Bonus commissions

In sales promotion birla cement do followind activities :- Gift items Discounts Incentives Tours awards Free samples Credit facilities

SAMRAT SHOPPES

Availability of fresh cement ‘BIRLA SAMRAT’ and extending prompt effective services to consumers is being rendered through SAMRAT SHOPPES. The concept SAMRAT SHOPPES was launched in 2004 and the chain of more than 550 outlets in prime location throughout UP, Uttranchal, Bihar and M.P. Marketing territories. Periodic training camps and workshops are organized in these locations to popularize good constructional practices and improve the awareness level amongst dealers, retailers, masons, construction supervisors and consumers.

TECHNICAL CONSUMER SERVICE CELL

Backed up with a dedicated team of highly skilled professional and experienced application Engineers, the cell functions in an advisory capacity. Besides handling customer’s constructional problems the cell offers all kind of assistance and guidance in the selection of the right cement for different application to ensure cost-effective, durable and safe construction.

To give feedback or for any assistance e-mail is provided [email protected] The basic objective of the Cell is customer motivation and education and propagate good constructional practices. Thus, the customer is helped in all technical matters – Architectural, structural as well as general civil engineering.

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Pricing Sales and Pricing at Birla Corp. Ltd. Is done under 2 major categories Viz Trade and non trade Sales Non Trade Sales It is done for Bulk orders from government and private agencies. The agencies quote their specifications Quantity, and site of delevry against which prices and other details are sent to them if accepted the cement is delivered. Generally a order remains live for 30 days.Under this category of non trade Sales cements are also exported to Nepal Major Non Trade Customers are

Reliance Industries - Hazira Project

Euri Hydroelectric Project, J & K

Dal-hasti Hydroelectric Project J & K

Imprizelo S.P.A. Kaligandki A Hydroelectric Project Nepal

N.T.P.C. Limited

Kalptaru Power Transmission Ltd.

Bajaj Hindustan Limited

Larsen & Toubro Limited

Maytas Infrastructure Limited

Nagarjuna Construction Company

Oriental Structural Engineering Limited

Rohan Builders (India) Limited.

Mukand Limited

UAL-Bengal (Utkal Asbestos / UAL – Uttar Pradesh).

U.P. Asbestos Limited

Balrampur Chini Mills Limited, etc.

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Trade sales

In this type of sales price are fixed by Calculating PCR which is a type of Target pricing, done as under

Per MT Cost at Production site +VAT+ Indirect Cost+ Excise+ Freight and handling–Discount= PCR(Packed Cement Realization)

Once prices being fixed Cements Manufacturing Association which comprises of representatives of all the manufactures sit to fix the minimum price

A brand depending upon its brand equity can sell the cements at higher prices. Similar to other Commodities cements too see a seasonal variations in their Demands so prices are fixed considering those factors

Aug –Dec - Less Demand - Less prices

Jan– July - High Demand - High prices

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RESEARCH METHODOLOGY The research methodology is the way systematically solve the systematically solve the research problems. The main objective of the product was to know the market condition of Birla Cement and to study the sales promotion activities undertaken by various cement companies. For this, right at the beginning the research plan was prepared. This includes all the detail of how to go about research work of Birla Cement. RESEARCH PLAN Definition of research problem the research problem can be defined as follows 1. What are the cement being used by various customer in the region of Satna and what are their expectation from the cement. 2. What the market trend is of cement and brand awareness of Birla Cement. DATA COLLECTION The descriptive nature of research necessitates collection of primary data from retailers through market survey, personal interview technique was used and interview was conducted through structured questionnaire the question was asked in prearranged manner. The market research was conducted over a period of 30 days. Data was tabulated, analyzed and suggestion and recommendation were given. RESEARCH INSTRUMENTATS The Research instrument chosen for conducting the survey was structured questionnaire was prepared as show as in the annexure. The questionnaire includes open ended as well as close ended question, few open ended question were included to obtain the perception of the retailers. The questionnaire designed and a pilot survey was made with the questionnaire and then changes were made accordingly with the questionnaire. A sampling technique was chosen for the study was Random Sampling Technique. This is the most common method of selecting the sample. This is because the retailers are localized in different part of the marker a group of retailers are chosen are random from large group. It gives all retailers in a group and equal chance of being selected for the purpose of the survey. SAMPLE SIZE Out of nearly 15 retailers in cement market of Satna and its region around randomly 50% of total population was considered as the sample size. CONTACT METHOD Both personal and telephonic interview methods were used for conducting the market survey. Personal interview had the benefit one to one communication between the researcher and the respondent. If the respondent is having any doubt or queries in their mind, they can get heir doubts clarified from the researcher on the spot and so superior of data was collected from the survey was collected from the survey. Tele – interview was

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conducted with the structured questionnaire. Tele-interview was less costly and less time consuming but the data could not be collected in detail from the respondents. Also any doubt or queries of respondent could not be clarified.

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ANALYSIS AND INFORMATION Detailed information was collected for the project marker survey for retail marketing and sales promotion activities of Birla Cement for the area of Satna market. The information was collected by visiting the retailers of cement present in Satna market. The interview of retailer taken in a friendly atmosphere so as to encourage them to give right information, without any hesitation. Because of some inherent limitation of telephonic interview, the method of personal interview was mostly used. ANALYSIS The analysis of the collection information was made in scientific manner. Different manner rank was given to each alternative of particular questions, in the questionnaire. A particular rank was given in the following manner, Rank- 1 for the most favourable alternative Rank- 2 for the moderately favourable alternative Rank- 3 for unfavourable alternative Rank- 4 for most unfavourable alternative Rank- 5 Unfavourable To come at the conclusion, total of each alternative of all the sample size retailers was made. Thus the “sum of an alternative” having least score considered to be most favourable. In this manner, result is prepared for various important parameters of the survey. With the help of results so obtained, the findings are recorded in the form of graphs. The market of cement Changes as the area changes. The demand for particular cement for particular cement is much less. This is because of the crazier Trend of particular market. Thus the demand for the cement is not that price sensitive. Price is not the criterion for selection of rejection of particular brand is adapted on the type of application of cement and the brand name in market. Thus the awareness among the customers about the particular cement plays a vital role. The major types of customers are the builders and masons. The individual customers are there, but their demand is not more. The customers are ready to give slightly high price, but he wants quality cement, thus he is quality conscious. The customer perceives quality of cement as good quality because of effective marketing. So effective marketing is necessary. The retailer in the marker plays an important role in the sale of the cement. They have some expectation from the cement companies; they expected credit facility, good sales promotion schemes, and timely delivery of cement, etc among the plastic bag and paper bag of cement, Customer prefer bag. This is because the paper bag prevents it from moisture and quantity remains intact.

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In brief cement market is sensitive to marketing. The better & more the marketing the more is possibility of sales. The observations and findings of the market survey about market share and sales promotion activities are given at the next stage, in the report.

DATA ANALYSIS PRESENTATION INTERPRETATION

Which brand do you prefer most?

Birla Samrat

Jaypee Prism ACC Maihar Others

13 21 23 30

Which brand does your customer prefer?

Birla Samrat


18 18 13 25

What is the Avg. monthly sale of different brands of cement?

Birla Samrat


20 16 13 25 Give your preference for the quality of packaging the company provide?

Birla Samrat


15 18 19 20

Ranking Of companies stockiest on the basis frequency of making personal visits & ph calls.

Birla Samrat


15 15 15 18

Which Companies stockiest inform you about the change in the market price faster?

Birla Samrat


15 15 15 15 Maximum profit you get out of selling various brands Ranking Ofm?

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Birla Samrat


15 19 19 15

Rank sales promotion activities according to their effectiveness?

Mason meet

gifts incentives hordings Discounts Wallpainting

15 18 20 15 16

Give your preference for the following type of Gifts/incentives.

Share Tour Gold Silver

Discounts Cheque Others

NA 21 17 15 17

Raking to the cement companies in their Sales promotion activities

Birla Samrat


17 13 16 20

Ranking Of company on the basis of their Marketing Representative’s frequency of visit.

Birla Samrat


15 16 16 17

Ranking Of company on the basis of their Marketing Representative’s accessibility.

Birla Samrat Jaypee Prism ACC Maihar Others 15 16 16 17

Final Ranking Points

Birla Samrat Jaypee Prism ACC Maihar Others

158 Ist Rank 167 165 NA 207 NA

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SWOT –Analysis SWOT-analysis is done to understand the external and internal environment of the organization. SWOT, which is acronym for strength, weakness, opportunity and threats, is also known by TOWS-analysis. Though such an analysis, is strength and weakness exist within an organization can be matched with the opportunity and threats operating in environment, so that an effective strategy can be formulated. An effective organizational strategy, therefore, is one that capitalizes on the opportunity through the use of strength and neutralizes the threats by minimizing the impact of weakness. Below is the SWOT- analysis of Birla Corporation Ltd in cement market. Strength

People ask for blackness in cement and Birla has this.

Cement grade is good and people are satisfied.

Customer choice.

It has a good brand image in Cement.

Weakness

Great need of strategic way for promotion and advertisement for both dealers and

customers.

Not an easy task to overtake Prism, and Jaypee.

Price and margins is not match with dealers and retailers expectation respectively.

Guaranty given by company is from the date of manufacturing which is not

acceptable for the dealers and retailers.

Take large time in the replacement of Cement.

Opportunity

Strong infrastructure requirement for the development of the country and the

country is developing in the utter pace.

No of the medium class people is growing.

Institutional market like corporate and government offices, school society complexes

are growing in large scale, which will increase the requirement.

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Threats

Cheep priced brand are grabbing rapidly a large chunk of lower income customer

base.

Other brands like Duncan and Grasim provide maximum profit to the both customer

as well as to the retailers.

It was found from my survey that Konark maximum market share is due to brand

loyalty.

Dealers expect more margin and gift to sell of the Birla cement

LIMITATION OF THE STUDY

1. Field selected was not the prime Market for Birla cements

2. Lack of cooperation from the retailers in regard to giving interview

3. It was found in some cases dealers showed inclination towards certain brands which

gave them more margins when compared to others.

4. It was experienced during the survey that it was difficult to convince or make the

retailers and dealers understand the important of the project

5. As the retailers and dealers thought that it was unwise for them to give their details

of business as they feared competitors would take advantage.

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Suggestions

Recognition: it was a general verdict that while giving the prizes company must Organise a function so that Dealers get Recognition in Front of Competitors it will Push Others to excel in Sales (As Done In Jaypee)

Packaging: Good Packaging Will Stop the Leakage hence better value to Customers

Promptness in Gift delivery: Gift Must be delivered time to time In Order to encourage Sales .

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Appendices QUESTIONNAIRE

Dealer Address Contact no.

Monthly cement lifting

Birla Samrat

Jaypee Prism ACC Maihar Total

Are you a authorised dealer for any company, if yes ,what are the advantages you get?

Birla Samrat


1. Which brand do you prefer most?

Birla Samrat


2. Which brand do you store?

Birla Samrat


3. Give reasons for your preference.....

4. Which brand does your customer prefer?

Birla Samrat


5. What is the Avg. monthly sale of different brands of cement?


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6. Give your preference for the quality of packaging the company provide?

Birla Samrat


7. Ranking Of companies stockiest on the basis frequency of making personal visits & ph calls.

Birla Samrat


8. Which Companies stockiest inform you about the change in the market price faster?

Birla Samrat


9. How much crdit in days do you enjoy from the stockist of following companies?

Birla Samrat


10. Maximum profit you get out of selling various brands Ranking Ofm?


11. Rank sales promotion activities according to their effectiveness?

Mason meet

gifts incentives hordings Discounts Wallpainting

12. Give your preference for the following type of Gifts/incentives.

Share Tour Gold Silver

Discounts Cheque Others

13. Give your raking to the cement companies in their Sales promotion activities

Birla Samrat


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14. Ranking Of company on the basis of their cement delivery time?


15. Any problem you generally face with the transport?


16. Ranking Of companies on the basis of the response to customer complaints?


17. Ranking Of company on the basis of their Marketing Representative’s frequency of visit.


18. Ranking Of company on the basis of their Marketing Representative’s accessibility.


19. Ranking Of company on the basis of their marketing representativ’s art of making and maintaining the relationship.


20. Whom you prefer for orders company or dealers, why?

21. Suggestions: