Sales n Dis Zuari

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EFFECTIVENESS of SALES and

DISTRIBUTION CHANNEL of

ZUARI CEMENTS

CHAPTER-1

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NEED FOR THE STUDY

Consumer sa ti sfact ion i s the most important objec tive for any

manufacturing concern to successful ly market i ts products . ZUARI has

from gradually and would want to take a stock of the satisfaction level of

consumers and define areas where possible improvement may be made.

The research work has been therefore selected in this area.

The company which produces products doesnt give life to sustain

in competition without sales of products. So sales are important function

of the manufacturing company to get profi ts . Through sales only wealth

maximization if possible.

Distributions are also one of the important functions in marketing.

Through distr ibut ion only one company can sel l i ts products . Here the

d is tr ibut ion channel s con ta in the dea le rs . Who a re very nea r t o t he

customers and act as middlemen between the organizations. So there is a

need to study sales and distribute on strategies.

Distribution system includes distribution channels. Which are sets

of independent organizations involves in the process of making a product

(or) a serv ice avai lab le for the consumption. Dis t ribut ion ne twork i s

necessary for smooth flow of goods.

OBJECTIVES OF THE STUDY

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Primary objective:

To assess the role of dealers in ZUARI cement Industries Limited.

Secondary objective :

1. To assess the channel effectiveness in ZUARI Cement.

2 . To f ind dea le rs opinion on var ious i ssues o f t he p re sent marke t

situation and furthering (strengthening) channel effectiveness.

3. To offer suggestion in building effective channel strategy to ZUARI

Cement Industry

SCOPE OF THE STUDY

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The study aims to measure sat isfact ion level of the dealers

regarding ZUARI cement industries. The area within which the study was

conducted regarding the information the primary data is col lected in the

form of quest ionnaire col lected from the dealers in Rangareddy distr ict.

To sum up the project had with in the scope of the s tudy in the area of

EFFECTIVENESS o f SALES and DISTRIBUTION CHANNEL o f

ZUARI Cement dealers in Rangareddy district for a particular time ( JAN-

FEB 2011)

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METHODOLOGY OF STUDY:

In view of the objectives of the study, an exploratory design

has been adopted. Further the researcher also touched the descript ive

resea rche r des ign and causa l ana lysi s t o r el at e between d if fe rent

var iables . Exp lo ra to ry r esea rch i s one which l arge ly int erpret s t he

available information on the s tudy and i t lays emphasis on the analysis

and interpretation of the exiting and available information. This research

is genera l ly usefu l when we use the informat ion collected f rom three

sources, viz., study of secondary sources, discussion with individuals and

analyzing the some specific case.

Sources of Data:

To perform the Research study by Researcher, the sources of data obtained

are:

Primary Data:

This data is obtained by interacting and interviewing the dealers in

Rangareddy district.Secondary Data:

This da ta i s obta ined d i rec t ly f rom the company in the form of

broachers, charts, diagrams, document and other form s.

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Data Collection Tool:

Questionnaire:

This is one of the data col lect ion tools . I t is qui te popular

par ticularly in case big enquires. It is being adopted by pri vate

individuals , research worker, pr ivate and public organization and even

government . In th is method, a ques t ionnai re i s i ssued to the persons

c on ce rn ed wi th a r eq ue st t o a ns we r th e q ue sti on s a nd r et ur n th e

questionnaire. A questionnaire consists of number of questions printed or

typed in a definite order or a form or set of forms.

The researcher used the s tructured quest ionnaire in which the quest ions

were:

Open-ended questions

Close-ended questions

Dichotomous questions

Multiple choice questions

Sampling Design

The researcher has done h is research s tudy on the dealers of ZUARI

Cement to know their p resent satisfaction and expectation from this brand.

The researcher selec ted the dealers of ZUARI Cement a t Rangareddy

district for his research study.

Sampling Plan

Sample size: Sample size consists of 50 dealers.

Sampling unit: The Sampling unit includes al l the dealers of ZUARI

Cement products present in Rangareddy District.

S am pli ng m et ho d: F or c ol lec ti ng i nf or ma ti on f ro m d ea le rs , n on -

pro babilistic simple random sampling method is used.

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Tools of analysis:

Th e d ata c ollec ted tro ug h su rv ey h as b een c ar ef ully an d

meaningful ly analyzed by using wel l establ ished s ta t is tical tool andtechniques. Important statistical technique is percentage method.

Hypothesis:

Hypothesis i s a part of research that enables the researcher to

predict about th e future based on the present trend. It is very much

essent ia l in any research ac tiv ity to develop the polic ies for a be tter working of the system. Based on the above concept, the hypothesis for the

study developed by the researcher at the various stages of analysis.

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Limitations of the study:

The se lec ted sample members a re conspicuous and inconspicuous in

nature. So, there is chance to arise some errors in the courts of survey.

The errors may be as follows:

R es po nd en ts ma y n ot d is cl os e th e r ig ht i nf or ma ti on , b ec au se th e

researcher is very stranger to them.

Respondents may give pleasing answers to the researchers even though it

is not correct from the prospective.

The percept iona l values l ike s ta tus, not -d isclosure o f t he cor rect

information and d i ff icu l ty in expressing the i r personal fee ling to an

unknown re searcher can b ring wrong op in ion pol l t on f i ll ing the

questionnaire.

Since, the sample size is small; a perfect mix of the respondents may not

be available for th e researcher to conduct th e opinion survey.

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CHAPTER-2

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REVIEW OF LITERATURE

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CUSTOMER SATISFACTION

INTRODUCTIONThe present day Indian economy is viewed a highly competitive and

market oriented. At this s tate the success of any organization is totally

depends on cus tomer and h is s at is fact ion only. So, eve ry bus ines s

organizat ion should see that the customer as sovereign of the market

who decides the fete of it . Hence, it is the responsibility of any concern to

meet the requirements of customers f rom t ime- to- t ime with grea ter

dynamism.

Customer sat isfact ion is total ly intangible and i ts management isvery crucial aspect on the part of the business entrepreneurs. Making such

an intangible property in to tangible is great challenge among the various

organizations. This depends on customer orientation, customer dynamism,

tapping new avenues by the business unit, quality of the product, price of

the product , proper supply of materials, t imely ness in supply, effect ive

channel of distr ibut ion, customer t reatment , af ter sale service, product

chiqueness professional ism in market ing strong grand image, effect ive

pac king system, and continuous imp ro vement in business and so on.

Market:-

A mar ket, in g en er al, may b e d esc rib ed as a p la ce o r

geographical area where buyers and sel lers meet and function, goods of

services are offered for sale , and transfers of t i t le of ownership occur.

From the point of view of economics, a market is defined as an aggregate

of the potential buyers for a product or service. But, in practice, the termmarke t i s u sed to deno te any body o f per sons who a re in i nt imate

busi ness relation and carry on any extensive transaction in any

commodity.

Marketing:-

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Marketing is the process of planning and executing the conception,

pri cing, promotion and distr ibution of ideas, goods and services to create

exchanges that satisfy individual and organizational objectives.

The present generat ion of producers is intel l igent in regard to the

application of procedures. They first want to find out what the consumers

want. Then they produce goods according to the needs of the consumers.

Th ey rea liz ed th at on ly s uch p ro du cts c ould b e so ld to th e bes t

satisfaction of the users and at a profit to the maker. For this arrangement,

however, the whole organization has to be rearranged in a most complex

manner.

Marketing starts and ends with t he consumer:-

Marketing activity is concerned only with the flow of goods, from

the producer to the consumer.

In other words, to achieve maximum efficiency in marketing, there

must a l so be a f low of information v is --v is the f low of goods . This

information, for prac t ica l purpose , has to be collected even before a

pro duct is planned . Subsequent information would also enable the

manufacturer to assess periodical changes that are required. That is why it

is very often remarked that marketing starts and ends with the consumer,

with information flowing form the consumer to the producer and goods

flowing back to the consumer from the producer.

Today they have a ful l-f ledged function added to market ing, viz ,

Market information and Marketing Research. Under consumer oriented

marketing, it is highly essential to know what the consumer really wants.

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This i s poss ib le only when proper information i s co llected f rom the

consumers

A push s tra tegy means a channel member d i rec ts i ts promotion

pri ma rily at the mi ddle men that are the meant links forward in

distribution channel.

The product i s Pushed through the channel the producer wi ll

pro mo te heavily to wh oles alers wh ich then also use a push strategy to

retailers in turn the retailers promote to consumers.

As market condi tions change over t ime a company they sh if t product

growth strategies.

A company tr ies to sell more of i ts present products to i ts present

markets. Supporting tactics might include grater spending on advertising

of personal selling. A firm continues to sell i ts present products, but to a

new market

This s trategy sel ls for a company to develop new products to sel l to i ts

existing markets.

A company develops new products to sell to new markets.

Determining Intensity of distribution:

Distribution intensity ordinarily is thought to be a single decision.

However i f t he channel was more than one l evel o f middlemen the

appropriate intensity must be selected for each level.

Intensive Selective Exclusive

Product sells its product through every available outlet in a market

where consumer might reasonable look for it . Ultimate consumers demand

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Distribution Distribution Distributionthrough every through multiple through a single

whole selling

Reasonable But not all reasonable Middlemen and/Out let in a market Out lets in market or retaileinmarket


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immed ia te s at is fact ion f rom convenience goods and wil l not defer

purchases to find a particular brand. This intensive distribution is often

used by manufactures of this category of product.

A p roduct s el ls i ts p roduct t hrough mul tipl e but not a ll possibl e,

wholesalers and retailers in a market where a consumer might reasonable

look for i t . Select ive distr ibut ion if appropriate for consumer shopping

goods.

The suppl ie r agrees to s el l i ts p roduct only to a s ingle who lesa ling

middlemen and retailer in a given market producer it is essential that the

retailer carry a large inventers.

Sales and Distribution strategy:

Sales and d ist ribut ion management cons ti tu tes one of the most

important parts of marketing management. Exchange is the core, aspect

of market ing , and i t i s the sa les and d ist ribut ion management which

facilities it . Sales management has been defined as the management of a

f ir m p er so na l s el li ng f un cti on . Th e i mp or ta nc e o f th e s al es a nd

distribution function varies across organizations depending upon its nature

and veri ty of products , target market . Consumer densi ty and dispersion

a nd th e c om pe ti ti ve p ra ct ic es a mo ng t he o th er t hi ng s. S al es a nd

distribution function is organized internally, externally or jointly.

Finding and communication with prospective buyer.

Bringing together the markets offering and the prospective buyer.

Reaching an agreement on pr ice and o ther terms of the offer so tha t

ownership and possession can be transferred.

Of the markets offerings, and his satisfaction generating potential.

Actual transfer of possession i.e. t imely and safe delivery.

Of relevant consumers information and revenue in exchange of goods of

services.

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Selling

The basic task of market ing is to bring the buyers and the sel lers

together. Regardless of the desire one has to sell and the other to buy, no

exchange can take place until each one knows the desire of the other. The

function of marketing is to ensure that the right product is made available

a t t he p lace , i n t he r ight t ime and under t he r ight impress ion to the

consumer.

Distribution of Consumer Market:

Five channels are widely used in marketing tangible products to ultimateconsumers:

Producer consumer: The shortest, simplest distribution channel for

consumer goods involves no middlemen. The producer may sell from door

to door of by mai l . For instance , south-wes tern company uses co llege

students to market its books on a house-to-house basis.

Producer retailer consumer: Many large retailers buy directly

from manufactures and agricul tural products . To the chagrin of various

wholesal ing middlemen. Walmart has increased i ts direct deal ings with

pro ducts.

Producer wholesaler retailer consumer: If there is a

t rad it ional channel for consumer goods , this i s i t, smal l re ta i le rs and

manufactures buy the thousands f ind this channel the only economical ly

feasible choice.

Producer agent retailer consumer: Instead of using

wholesalers , many producers prefer to use agent middlemen to reach the

retai l market , especial ly large scale retai lers . For example. Clorox uses

agent middlemen such as Eisenhart & wholesaler that dis tr ibute a wide

range of products to retailers. In turn, Dierbergs offers its assortment of

pro ducts to final consumers.

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Distribution of Business Goods:

A variety of channels are avai lable to reach organizat ions that in

corporate the products into their manufacturing process of use them in

their operations. In the distribution of business goods, the terms industrial

distr ibutor and merchant wholesaler are synonymous. The four common

channels for business goods:

Producer user: This direct channel accounts for a greater dollar

volume o f bus ines s p roduct s t han any o ther d is tr ibut ion s truc tu re .

Manufactured of large instal lat ions, such as airplanes, generators , and

heating plants, usually sell directly to users.

Producer industrial distributor user: producers of ope ra ting suppl ie s and sma ll acces so ry equ ipment f requen tly use

industr ial dis tr ibutors to reach their markets . Manufactures of building

materials and air conditioning equipment are two examples of firms that

make heavy use of industrial distributors.

Producer agent user: Firm without their own sales

departments f id this desirable channel . Also, a company that wants to

introduce a new market may prefer to use agents rather than its own sales

force.

Producer agent industrial distributors user:

This channel is s imilar to the preceding one. I t is used when, for some

reason, i t is not feasible to sel l through agents direct ly to the business

user. The unit sale may be too small for direct sel l ing. Of decentralized

inventory may be needed to supply rapid ly, in which case the s torage

services of an industrial distributor are required.

Indian Distribution System:

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I t i s a l so impor tant to assess how the d is t r ibut ion task i s be ing

per formed in India. Th is task can be under taken by measuring the number

of functionaries in each class , their organizational s tructure and their

capital structure. The margins charged by them would be a function of the

quantum if goods moved and the population served by them and services

rendered by them and would a lso ass is t in the task i f measur ing the i r

per formance. Dividing th e members involved in each type of trade we can

briefly get an idea about the average pro ductive capital required in each

c la ss o f t rade . Hav ing a sses sed the input s, s truc tu re and s ize the ir

distribution all over India we are now in la position to assess how the task

is being performed in terms of output.

Distribution logistics:

Logis tics was a mi li ta ry term referr ing to complete system of

moving, supplying and quartering troops. Businessmen broadened logistics

to include any type of t ransportat ion and storage. Marketers applied the

t er m t o m ea n t he p hy si ca l h an di ng o f p ro du ct s. T he y a ls o b eg an

employing the term physical distribution in place of logistics. The area

of physical distribution has received considerable attention. The attention

was quite just i f ied for a country such as ours because of i ts t radi t ional

short supply markets of for the gaps often witnessed between the demand

and ava il ab le o f p roduct s. P ri ces o f e ssen ti al commodi ti es o f dai ly

consumptions are particularly amenable to any dislocation in physical

d is tr ibut ion. I f any evidence i s r equi red, we need the conce rns and

anxieties associated with news of strike in Rail and road transport.

Role of Distribution:

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The major ro le tha t d is t r ibut ion pays in any economy is tha t i t

constitutes the process by which goods and services become available for

c on su mp ti on . Ma nu fa ct ur er s o f g oo ds a nd s er vi ce s s pe ci al iz e i n

generat ing structural of form uti l ity for their products, in the sense that

they create a unique set of demand satisfiers in the form of their offering.

The actual mass scale delivery of these offerings to the consuming public

requires a different kind of specialized effort. This generates time, place

and possession ut i l i ty. In other words, you cannot obtain and consume a

final ized product unless the product is t ransported to a place where you

can ge t access to i t ; s tored t i l l you are ready to buy i t and u l t imate ly

exchange for money so that you can gain possession of it .

Physical Distribution and Channels of Distribution:

If dis tr ibut ion could be treated as a whole funct ion of market ing,

physical distribution and channels of distribution. It is found that these

two terms are used, sometimes, interchangeably. Channels of distribution

refer, primarily, to the middlemen of intermediary marketing instructions

which perform certain market ing functions. More than performing the

funct ion, t hese ins ti tu tions t ry to gain acces s t o t he t arge t marke t.

Physical distribution, on the other hand, concerns with material aspects of

the f low of goods to the consumers. I t includes t ransportat ion, s torage,

warehousing, packaging, etc . i t is technical funct ion in the sense that i t

ensures availability of products at the right time, at the right place and in

the right form. The term is used often in aboard sense to include channels

of distribution also.

Service to the manufacturers:

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T he wh ol es al er p ro vi de s p er pe tu al a nd d ef in it e c us to me rs t o th e

manufacturers. He either purchases large quantities from the manufacturer

and sells them to the retailers, of collects small orders from a number of

retailers and places a bulk order with the manufacturer. The manufacturer

is thus relived of the trouble and expense of collecting a large number of

smal l orders . He collects and provides the information required for

plan ning the production ahead. He maintains stock and thus assures

equitable distr ibut ion. He places bulk orders with the manufacturer and

thus enables him to concentrate on production and reap the benefi ts of

large-scale operations. He shoulders all marketing functions.

Position of the Wholesalers in modern marketing:

In spite of gloomy forebodings common nowadays, the wholesaler

s t i l l manages to hold his posi t ion because of the very real services he

renders. But the wholesaler today, as compared with that of a hundred

years ago, is a much less important member of the business fraternity. The

f ol lo win g a re t he i mp or ta nt f ac to rs r es po ns ib le f or r ed uc in g h is

importance:

Growing displeasure of this system of channel in all quarters.

Growth of large retai l s tores such as chain s tores, Departmental s tores,

super markets, etc.

Manufacturers desire to establish direct contracts with the customers.

Development of transport and communication systems.

Frequent and unexpected changes in style and fashion.

Emergence of new and bigger markets.

Growth of consumers co-operative in almost all fields.

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Transportation:

Transportation is necessary function of marketing because most of

the markets are geographical ly separated from the areas of production.

Majority of manufacturing plants are far away from their most important

markets because of various factors. All goods are not utilized at the place

of their origin. They require some kind of transportation to create place

ut i l i ty. Holtz Claw vividly puts the importance of t ransportat ion in the

fol lowing l iens: Minerals of other raw materials are to be t ransported

from the place of extraction of production to the factory, crops are to be

car r ied f rom the farm to the loca l market or pr imary market and f rom

there to the places of consumption. Finished products are to be transportedfrom the warehouse to the wholesalers warehouses, from warehouse to

the re ta i l dealer, and f rom the dea ler to the u l t imate consumer. The

various modes of transport fall under the three categories:

Road transport

Rail transport

Water transport

Air transport

Pipeline transport

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CHAPTER-3

INDUSTRY PROFILE

INTRODUCTION

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C ement, l ike s teel is one of the basic materials for the

technical Development of a country. Cement industry in India is Eight

decades old, the first cement plant having been commissioned in 1914 at

Borabandhar (Gujarat). The Indian cement industry is the second largest

in the world after Chinas. In terms of quality, productivity, and efficiency

it compares with the best anywhere. I t is almost ent irely home growth,

built indigenously and usi ng locally so ured inputs. In other words, the

hard ware and software that run the industry in all mostly Indian barring

one (or) two exceptional years, i ts p erformance in the last two decades has

been quite consistent and commendable in terms of Mo dernization,

expansion, growth in production, improvements in productivity and costefficiency.

In the past, the growth was at a slump till 1977 and after

that there was a reversed trend and a climate of accelerated growth set in

announcement of a formula for new investments based on 12% post tax

return . The policy of partial decontrol announced in 1982 gave further

boost to the cement Industry.

Modernization/ Expansion programmes:

I n the wake of the new policy, ambitious and comprehensive

Moderniza tion / expansion programmes have been undertaken by the

Industry, Which include conversion of wet process to energy efficient

dry process, comprehensive adoption of latest technology such as the use

of vert ical raw mil l , precalcinators and instal lat ion of pollut ion control

devices. For the implementat ion of these programmes Rs.5, 000 Crores

have already been spent.

Capacity:

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A ccording to the Cement Manufactures Association

(CMA) the industry has an instal led capaci ty of over 137 Mill ion tones

from 124 plants of 56 member companies. Most of this capacity is modern

and based on the energy eff icient (conservat ion of energy) dry process

technology. These are as many as 64 plants of a mil l ion tones or more

capacity. How ever the minimum economic s ize has increased to two

million tones a year.

Transportation of cement:

The share of roads in transport of cement is nearly 60%

whi le 39% i s moved by r ai l. I n r ecen t yea rs , s eas rou te s a re u sed

increasingly markets on the western coast.

Production:

Cement production dispatches grew almost 10% in 2001-

2002 when few sectors of the economy could avoid f i rs t t ime last year

with production of 102.4 million tones. The outlook for the current year is

also favorable. Previously the annual growth rate of cement production is

7 % to 8 %. 70% Of the production is OPC, 15 % of PPC, slag cement 11

%, and production of oil well cement, special & other verities of cement

together accounted For 1 %.

Demand and supply scenario:

The industry can expect to see good years ahead in the

lo ng run . Deman d is ex pec ted to gro w d ue to gr ea te r to cu r o n

infrastructure and housing. Although the industry is capable of meeting its

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own challenges, it stil l needs assistance from the govt., to overcome some

of its external constraints.

Demand forecasting:In particular, the housings and Roads sectors have high

linkages with other sectors n terms of economic growth and employment

generat ion a lso g ives a valuable boost t o t he for tunes o f t he Ind ian

Cement Industry.

The CMA forces that 2002-2003 will also be a favorable one or

the industry with a likely growth rate of 8 to 10 %.

Export Potential:

Even thought India is the second largest industry in the

world, and has the natural advantages of l imestone reserves, i ts export

per formance is not line with the si ze. Exports account for less than 2 %

pro duction. India is strategically placed to be a major exporter of cement

to SAARC Countries and all those around Indian Ocean such as west Asia

and Africa but India has n ot been able to fully tap this location advantage.

There is sizable surplus capacity, and a quality product.

Unlike in some of the neighboring countries, the Indian

industry does not receive any special support from the Government to

pro mo te

Expor ts the Government should lobby with some of the ne ighbor ing

countries for reduction in their import duties. The Government can help ina big way in boost ing export competi t iveness through sui table f inancial

incentives and confessional inland freights.

It is interesting to note despite the reduction of import

dut ie s yea r a ft er yea r, t he re have been no actua l a rr ival s o f cemen t

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consignment from abroad. Low cement prices prevai l ing in the country,

inadequate por t i nf ra st ructure & h igh in land f re ight f rom por ts t o

consumption centers are provided effective barriers to imports. Despite so

many constraints , the industry exported under 3.4mil l ion tones during

2001-2002. Most of the credit goes to cement plants in Gujarat. There the

companies have opened up their initiative. Some of the states, which have

been marked for export fro m recent past, are A.P., Gujarat, Tamilnadu,

Particularly in relation to export which have to be moved by sea.

A Glance on the contribution of cement Industry towards Indian

Cement has been a core building material for almost a

century. There i s no v iable Subs ti tute foreseeable in the near fu ture .S in ce c em en t i s a c or e b ui ld in g m at er ia l, i t i s d ir ec tl y r el at ed t o

Construction which in turn flows from economic growth. All forecasts

suggest l arge inves tmen ts i n housing & inf ra st ructure. I t i s easy to

visua lize i t s mult ip l ie r e ffect on the cons truct ions sec tors have h igh

linkages with other sectors in terms of economic growths and employment

generation a part from their giving a valuable boost to the fortunes of the

Indian Cement Industry.

Cement, l ike s teel is one of the basic material for the

economic development of a count ry. The economic development of a

count ry i s indexed by the consumpt ion of cement .The Indian cement

industry plays a key role in the national economy, generating substantial

Revenue for state and central government the third highest contributor in

terms of excise duty of over Rs.3500 Crores a year. Sales taxes yield as

round Rs. 1500 Crores. The industry employs a work force of over 1.5

lakhs persons and supports a further complement of 12 lakhs people

engaged indirectly.

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It must be admitted that govt. policy ann ouncements in recent

years have been pro-act ive in th is respec t & the cement indus try has

welcomed the governments announcements and ini tiat ives in building

roads etc , as there are huge advantage of cement & concrete roads over

conventional bi tumen roads. They are economical , ensure durabil ity &

long life.

The housing sector by a rough estimate can consume over 50

million tones of cement to help clear the backlog. Any impetus in housing

activity will serve as a powerful driver of the economy and consequently

the cement industry. In fact , housing is l ikely to be the most powerful

engine for growth of the economy.

Despite lowering of import duties, no import of cement is

likely. The needs renewed support from the Govt., in providing impetus in

economic growth and construction of infrastructure projects. It also seeks

G ov er nm en ts a ss is ta nc e i n e as in g i t f in an ci al b ur de n b y w ay o f

administered tools & duties. This kind of assistance will simultaneously

increase the consumption of cement further reduce prices of customers.

For cheaper costs cement can be made avai lable to the public for mass

housing 7 to help make the construct ion of infrastructure projects more

financially viable.

COMPANY PROFILE

Introduction

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The company zuari Agro Ltd was in corporate on 12 t h

may 1967 zuari cement limited has been himself off as a separate company

with 50-50 share holding by Zuari industries limited (A.K.K.Birla group

company) and Italy cement group (as Italian cement company) with effect

from 1-4-2000 with Head-quarters at Bangalore, Zuari and I taly cement

group (through cement Francis group company) have formed joint venture

company Viz., Zuari cement limited. It is projected to increase the cement

capacity of 2.2MT.

TEXMACO Limited in the year 1995 was changed to Zuari

cement by division of ZUARI CHEMICAL LIMITED, jointly promoted by

K.K.BIRLA & USX CORPORATION a major steel leader in U.S.A.

2.1 LOCATION OF THE PLANT

Zuari cement is running under the Flagship of Zuari Agro chemicals

Limited. Zuari cement is strategies located 6 kms away from Yerraguntla

town of Kamalapuram (Taluk) in Kadapa district Andhra Pradesh. Railway

line has been laid connection the Yerraguntla station of Zuari Cements.

Location of the plant at this place is having following advantages.

1. Location in industrial belt of Rayalaseema with sophisticated facilities like water,

electricity, labor, transport etc.

2. Present of the best limestone proved scientifically for cement.

3. Low free lime to ensure reduced surface cracks.

4. Low heat of hydration for better soundness.5. Low magnesia content to ensure reduced tensile cracks.

6. Specially designed setting time to suit Indian working conditions.

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2.2 JOINT VENTURE WITH ITALIC CEMENT

Zuari group has identified as one of the core business to grow. It

has therefore, been decided to consti tute a separate corporate ent ity and

hi re off cement business to i t. To acce lera te the growth and achieve

capaci ty add it ions quick ly i t dec ided to form a joint ven tu re with a

strategic partner af ter careful evaluat ion the mult inat ional cement giant

i tal ic cement group was ident if ied to be sui tab le partner for pursuing

growth.

Zuari and Italic cement groups have agreed to form a joint venture with 50-50

equity sharing. The Zuari cement business will get transferred to the joint venturecompany Viz. Zuari cement limited.

I t is proposed to have quarters of cement business at

Hyderabad. It is proposed to increase the capacity of1.7 MTPA in span of

3 to 4 years . I tal ic cement group is the largest producer & distr ibutor of

cement in European and one of the leaders in the world maker place. The

group ope ra te s i n 13 count ri es i nc luding Belgium, Canada , F rance,

Greece, I taly, Moraco, Spain, Turkey and U.S with recent acquisi t ion in

Bulgaria, Kazakhstan and Thailand.

The group was founded in 1864 and had i t s head quar te rs in

Bermago, Italy; currently the group has 54 p lans with an installed capacity

of 40 MTPA spread over 13 countries. The group also has 500 RMC plants

a l l over the wor ld . The consol ida ted group turn over in 1998 was 3 .4

bill ion US$. Th e group has excellent R & D and Ma chine design facilities

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head quartered at Bermago, I taly, which renders technical support to al l

over the group plants.

2.3 ITALIC CEMENTRIC GROUPOur Mission

Our Shared Ambition : Effective and EfficientTo become the most effective and most efficient cement manufacture and

distributor in the world.

Our Approach : We are local we think Global.Cement aggregates and ready to mix concrete manufacture and distribution

are local business. Around the world we serve local customers in local markets withlocal needs.

Our Way of Working : Technological leadership is our Goal.Our technology plays the key role in realizing our ambition we are committed

to increasing the value of our groups, our companies, our products and services, thecapabilities of our employees and the ecological standards by which we operate.

Our spirit: One team worldwide.We operate worldwide in many diverse markets, cultures and continents.

We are proud of our cultural diversity and our distinctive character.2.4 ORGANIZAITONAL STRUCTURE

The organizat ional s tructure of Zuari is s imple and f lat . The

employees are assigned grades based on their pay packages. These grades

are not based on the job responsibi l i t ies may have different grades for

reasons like duration of association with the company.

2.5 OBJECTIVES OF THE COMPANY:

To Provide employment to the local employees

To supply best cement at economical prices

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To get the optimum uti l izat ion of the raw materials avai lable of

their own mines.

Manufacturing quali ty cement and to s tand as a market leader in

south India.

2.6 RECENT DEVELOPMENTS

Zuari cement has signed on agreement with the cement corporation

of India (CCI) to market CCIs cement produces from their faci l i ty at

tender in Andhra Pradesh.

Zuari Cement shall market this in the state of Tamil Nadu, Kerala, Andhra Pradeshand pond cherry. The incremental tonnage for zuari cement as a result of this arrangementis around 3.5 lakh tones.

2.7 SOCIAL RESPONSIBILITY

As part of social responsibility the company is maintaining one

dispensary where the near by villagers are treated free of cost. It has one

pri ma ry school & also it has constructed bus shelters, traffic sign als water

sheds, water tanks hospitals, houses & road dividers.

2.9 MOTIVATION

Motivation in zuari cement limited is one by encouraging the employees byawarding them rewarding them and identifying their talents and promoting them to higher

positions. The career development is possible through proper motivational factors.

2.10 MAJOR USERS

Zuari cement is marked through out south India by a wide network

of s tockiest . The zuar i sa les officers and representat ives a re based in

almost all cities.

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And towns in south India, Major users of zuari cement are as follows.

Madras refineries limited.

Airport authority of India

Tamilnadu real estate limited

East coast construction and industries limited.

Tamil Nadu port trust.

Asia pacific hotels limited

Grind well Norton limited

Tirumala Tirupati Devasthanam

APSEB Srisailam power project.

Ramco industries visaka industries. Hyderabad Everest limited

Nagarjuna Co nstruction.

2.11 CORPORATE MARKETING OFFICE

Zuari cements limited corporate marketing office is at cheennai

(Tamil Nadu) and branches are at:

Hyderabad - Andhra Pradesh.

Visakapatnam - Andhra Pradesh.

Bang lore - Karnataka.

Cochin - Kerala.

Hanaji - Gao.

Cheennai - Tamil Nadu. Bhuwaneswar - Orrisa.

2.12 COMPETITORS

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Penna - Tadipathri Ultra Tech - Tadipathri Malabar - Cochin

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PRODUCT PROFILE

Zuari Cement manufactures and distributes its own main product lines of cement

.We aim to optimize production across all of our markets, providing a complete solution

for customer's needs at the lowest possible cost, an approach we call strategic integration

of activities.

Cement is made from a mixture of 80 percent limestone and 20 percent clay. These

are crushed and ground to provide the "raw meal, a pale, flour-like powder. Heated to

around 1450 C (2642 F) in rotating kilns, the meal undergoes complex chemical

changes and is transformed into clinker. Fine-grinding the clinker together with a small

quantity of gypsum produces cement. Adding other constituents at this stage produces

cements for specialized uses.

ZUARI CEMENTS RANGE OF CEMENT

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Zuari Superfine Cement Zuari 43 Grade Cement Zuari Superfine P53

cement

ZUARI SUPERFINE CEMENT

ZUARI 43 GRADE CEMENT

ZUARI SUPERFINE P 53 CEMENT

QUALITY

Six strong benefits that make Zuari 43, 53 Grade, Super fine, Vishnu Premium

and Vishnu Shakti the ideal cement

Higher compressive strength. Better soundness. Lesser consumption of cement for M-20 Concrete Grade and above. Faster de shuttering of formwork. Reduced construction time with a superior and wide range of

cement catering to every conceivable building need, Zuari cement isa formidable player in the cement market.

Here just a few reasons why Zuari cement chosen by millions of India.

Ideal raw material

35
http://www.zuaricements.com/scripts/productsPPCsuperfine.aspxhttp://www.zuaricements.com/scripts/productsPPCsuperfine.aspxhttp://www.zuaricements.com/scripts/productsOPC43.aspxhttp://www.zuaricements.com/scripts/productsOPC43.aspxhttp://www.zuaricements.com/scripts/productsOPC53.aspxhttp://www.zuaricements.com/scripts/productsOPC43.aspxhttp://www.zuaricements.com/scripts/productsPPCsuperfine.aspxhttp://www.zuaricements.com/scripts/productsPPCsuperfine.aspxhttp://www.zuaricements.com/scripts/productsOPC43.aspx


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Low lime and magnesia content and h igh proportion of silicates.

Greater fineness.

Slow initial and fast final setting.

Wide range of applications. Quality customer services.

FEATURES THAT PROMISE BETTER PERFORMANCE

Concrete of better strength and workability since voids of air and water are

reduced.

Protection against alkali aggregate reaction due to the presence of a very glassy

state of silica.

Resistance towards chemical attacks and lowers permeability.

Long term durable concrete, because of low free lime.

Lower heat of hydration

SHARE CAPITAL OF ZUARI CEMENT LIMITED

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TAX ASSET / LIABILITY AT THE BALANCE SHEET OF

ZUARI CEMENT LIMITED

Major components of deferred tax asset / l iability as at the balance sheetdate comprises of the following:

31 s t December 2009(Amalgamated)

1. Share Capital

Authorized

27,00,00,000 (Previous period :27,00,00,000) equity shares of Rs.10 each

27,000.00

17,00,00,000 (previous period : 17,00,00,000) 9%redeemable non-convertible cumulative

preference shares of Rs.10 each

17,000.00

Issued, subscribedand fully paid up

25,79,61,400 (previous period : 25,79,61,400)equity shares of Rs.10each [refer to note (a)and note (b) below]

25,796.14

17,00,00,000(previous

period :17,00,00,000)9% redeemablenon-convertiblecumulative

preferenceshares of Rs. 10each

17,000.00

42,796.14

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31 s t Dece(Amalg

Deferred tax liability

Excess of depreciation allowable under Income-Tax

Act, 1961 over depreciation provided in accounts.Total

Deferred tax asset

Unabsorbed losses and depreciation (to theextent of virtual certainty) [refer Note I

below)

Provision for leave encashment

Voluntary retirement expenditureallowable under Income-Tax Act1961.

Disallowance under Section 43B 134.

Provision for doubtful debtsand advances

50.9

Provision for stores andspares

205.01

Others 170.72

Total (B) 790.36

Net Deferred taxliability (A B)

5,659.36

Deferred taxliability takenover onamalgamation

320.00

Deferredtax chargefor theyear

5,339.36

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CHAPTER-4

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DATA ANALYSIS & INTERPRETATION

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Table -1

Dealers relation with ZUARI Cements Industry

Business experience Number of respondents Percentage


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having less than 3 years and 10% of the dealers have one year

experience.

Table-2

Dealers feeling about Company Image

Dealers Opinion Number of

respondents

Percentage

Highly satisfied 15 30Satisfied 30 60

Neutral 5 10Dissatisfied 0 0Others 0 0Total 50 100

0

20

40

60

80

100

120

H i g h l y

s a t i s

f i e d

S a t i s

f i e d

N e u t r

a l

D i s s a

t i s f i e

d

O t h e

r s T o

t a l

Number of respondents

Percentage

Inference:-

30% of the dealers falling highly satisfied about companied image

and 60%of the dealers were feeling moderately satisfied, 10% of the

dealers were feeling satisfied about companies image.

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Table-3

To know on which aspects the customer gets more satisfaction

Dealers opin ion Number of respondents PercentageBrand name 6 12Price 2 4Quality 38 76Usages 4 8Others 0 0Total 50 100

0

20

40

60

80

100

120

B r a n

d n a m e P r i c e Q u

a l i t y U s

a g e s O t h e r s T o t a

l


Percentage

Inference: -

Majority of the respondents are gibing fist preference to quality,

second preference to brand name, then followed by product, usage and

pri ce.

Table-4

Customers come to shop

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Dealers opinion Number of respondents PercentageBy your influence 8 16By friends 8 16By advertising 8 16By Brand Name 26 52

Other 0 0Total 50 100

020406080

100120

B y y o

u r i n f

l u e n c

e

B y f r i e n

d s

B y a d

v e r t i s

i n g

B y B r

a n d N

a m e

O t h e

r T o

t a l


Percentage

Inference: -

From the above table it is inferred that majority of the customers

come to retail outlets by the influence of brand name of ZUARI cement

and followed by advertising, dealers influence.

Table-5 Stock out problems

Dealers opinion Number of respondents PercentageFrequently 0 0Rarely 5 10

No 45 90

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Total 50 100

020406080

100120

F r e q u

e n t l y

R a r e l

y N o T o t a l


Percentage

Inference : -

90% of the dealers are getting satisfied with the s upply of ZUARI

cement by expressing that they do not come across stock out problem.

Table-6

Dealer satisfaction on supply of product

Dealers Opinion No. of.

Respondents

Percentage

Highly satisfied 12 24Moderately satisfied 12 24Satisfied 24 48

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Dissatisfied 2 4Highly dissatisfied 0 0Total 50 100

020406080

100120

H i g h l y

s a t i s f i e d

S a t i s f i e d

H i g h l y

d i s s a t i s f i e d

No.Of. respondents

Percentage

Inference: -

48% of the dealers are satisfying by the supply and 24% moderately

satisfying, 24% highly satisfied and 2% dissatisfied.

Table-7

Dealers satisfaction on in time deliveries

Dealers opinion No. Of. Respondents PercentageHighly satisfied 2 4Moderately satisfied 16 32

Satisfied 32 64Dissatisfied 0 0Highly dissatisfied 0 0Total 50 100

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020

406080

100120

D e a l e r s

o p i n i o n

M o d e r a t e l y

s a t i s f i e d

D i s s a t i s f i e d

T o t a l

Series1

Series2

Series3

Inference:-

The majority of the dealers are satisfied with the mode of dispatch by the

company

Table-8

Customers Awareness

Dealers opinion No. Of. Respondents PercentageAdvertisement 19 38Campaign 4 8Dealer 27 54Others 0 0Total 50 100

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020

406080

100120

A d v e

r t i s e m

e n t

C a m p

a i g n e

D e a l e

r

O t h e

r s T o

t a l

No.Of.Respondents

Percentage

Inference:-

The above table shows that 54% respondents are saying that dealers

play majors in customers awareness about th e pro duct. And 38% of

respondents are stating that advertisement is second highest promotional

activity to create awareness in the minds of customer.

Table-9

Sales satisfaction

Dealers opinion No. of. Respondents PercentageHighly satisfied 9 8Moderately satisfied 11 22

Satisfied 30 60Dissatisfied 0 0Highly dissatisfied 0 0Total 50 100

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020

406080

100120

D e a l e r s

o p i n i o n

H i g h l y

s a t i s f i e d

M o d e r a t e l y

s a t i s f i e d

S a t i s f i e d

D i s s a t i s f i e d

H i g h l y

d i s s a t i s f i e d

T o t a l

Inference:-

60% of the dealers are satisfying the sale of ZUARIs product

following 22% if the dealers moderately satisfied, 18% of the dealers were

highly satisfied.

Table-10

Demand estimation on various products

Dealers opinion No. of. Respondents PercentagePast sales 9 18Seasonal 13 26

Orders 28 56Others 0 0Total 50 100

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020

406080

100120

P a s t

s a l e s

S e a s

o n a l

O r d e

r s

O t h e

r s t o t

a l

No.Of.respondents

Percentage

Inference:-

The high percent of dealers are estimating the demand for the product

through orders and 26%of are estimating on seasonal base.

Table-11

Industry to stock point fright expenses percentage

Dealers opinion No. Of. Respondents Percentage2% 30 603% 10 204% 8 165% 2 4Total 50 100

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0

2040

60

80

100

120

2% 3% 4% 5% total

No.Of.Respondents

Percentage

Inference: -The dealers are incurs very less fright charges representing 2%, to

receive goods from company to your stock point.

CHAPTER-5

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FINDINGS

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FINDINGS

1. Majori ty of the dealers having 3 to 6 years experience, and less

number of dealers having above 6 years experience.

2. Majority of dealers just satisfied about the companys image,

remaining are neutral, Highly satisfied.

3. Majori ty of the customers sat isfying about the quali ty of the

pro duct next pref erence given brand name followed by usages, pri ce.

4. Most of the dealers expresses customers visit to shop by brand name

only. And followed dealers influence, by friends, by advertising.

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5. The entire dealers were saying they do not face any difficulties to

deal with the customers to selling the product.

6. Majori ty of the dealers saying they do no come across s tock out

pro blems.

7. Majority of the dealers satisfying with the supply from the company

and very few members satisfied, dissatisfied.

8. All the dealers were saying the ent ire f loor space were providing

only for goods storing purpose.

9. Majority of the dealers satisfied with the mode of dispatch by the

company. And few members were moderately satisfied, highly

satisfied.

10.Majority of the dealers they estimate the demand for various pro ducts by th e orders and followed by seasonal base and past sales.

11.All the dealers were saying they do not face any difficult in dealing

with the company.

12.Majority of the dealers were saying about the fright it incurs 2% to

receive goods from company to your stock point.

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SUGGESTIONS

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SUGGESTIONS

1. Provide opportunity for new entrants in the business.

2. To create awareness about the company, using of various ways of

pro motional activities such as advertisement, to maintain the better

relation with dealers.

3. If possible increase the quality of the product and reduce the price.

4. Company and dealers should try to maintain customer good

relationship as much as the possible.

5. Try to maintain better supply chain in order to improve the services.

Supply the products with in time to the dealers.

6. Try to provide discounts to dealers and credit faci li t ies .

7. Customers, who purchase the huge amount of products, provide free

home delivery to customers place.

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Questionnaire

Name of th e sh op : Date :

Name of th e proprietor: Ph No :

District : Signature:

1) How long have you been dealing with ZUARI Cement?

a)


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5) Do you face any difficulty in dealing with the customers?

a) Yes b) No

If yes please specify----------

6) Do you face stock out problems for ZUARI Cement?

a) Frequently b) Rarely c) No

7) Are you satisfied with the supply from the company?

a) Highly sat i sf ied b) moderate ly sa ti sf ied c) Sat is f ied d)

Dissatisfied e) Highly dissatisfied

8) How much floor space you have provide for ----------?

a) Goods storing purpose-------

b) Office purpose------

9) In time delivery is very important for better serving the market. In this

connection are you satisfied with the mode o dispatch by the company?

a) Highly sat i sf ied b) moderate ly sa ti sf ied c) Sat is f ied d)


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10) According to you most of the customers are aware of ZUARI Cement

through

a) Advertisement b) Campaign c) Dealer d)

Others

11) Do you satisfy with the sales of ZUARI Cement?

a ) High ly sat is fi ed b ) modera te ly sat is fi ed c ) Sa ti sf ied d )


12) How do estimate the demand for various products?

a) Past sales b) Seasonal c) Orders d) Others

13) Do you face any difficult in dealing with the company?

a) Yes b)No

If yes please specify____________________________________

14) What percentage of fright if incurs you to received goods from

company to your store point?

a) 2% b) 3% c) 4% d) 5%

15) Do you feel like to suggest any thing which improves distribution

effectiveness?

a) yes b) no

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BIBLIOGRAPHY

1. Phillipkotler,2003Marketing Mgmt, T.M.H,New Delhi (9TH EDITION)

2. Schiffman&Kanuk,1997, Consumer behavior,

PHI

(6 T H EDITION)

3. Levin & Kirpatric, Quantitative Techniques For

M.B.A, Tata McGraw Hill-1985

Websites:

1. www.marketing.org

2. www.estrategicmarketing.com

3. www.marketingprofs.com4. www.btobonline.com

5. www.marketingstudies.net

Journals:

1. Economic Times

2. Business Standard

60
http://www.marketing.org/http://www.estrategicmarketing.com/http://www.marketingprofs.com/http://www.btobonline.com/http://www.marketingstudies.net/http://www.marketing.org/http://www.estrategicmarketing.com/http://www.marketingprofs.com/http://www.btobonline.com/http://www.marketingstudies.net/


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