shree cement marketing

A Project Study Report On Training Undertaken at

Title Comparative Analysis of

Shree Ultra Red Oxide Cement with other Brands

in Jodhpur Region

Submitted in partial fulfillment for the Award of degree of

Master of Business Administration

Submitted By: Submitted To:Vaibhav Achtani Pr.G.N. PurhoitMBA Part 3rd Director, VIM

CERTIFCATE

PREFACE

The present project is undertaken as a part of my Internship with the

Shree Cement Ltd. The internship constitutes a very important part of the

course curriculum as it gives the students a chance to learn and incorporate

in them the ways of working in the corporate environment.

The project undertaken herein deals with one of the most important

constituents of company which is quality and quantitative analysis.

The increasing emphasis on branding has resulted in immense

pressure and competition among the producers and as a result of which

retailer has been found to important mediator to increase the market share

and sale of the product. Due to this, Companies are eager to measure the

satisfaction level of the retailers towards their brands.

To find out the factors those are responsible to increase the

satisfaction level of the retailer. The most important task to retain the retailer

with brand name and they do not discuss the scheme/policy with competitors.

The project aims at attaining information, to find the number of the

retailers that are not satisfied with brand and most important the reason

behind there dissatisfaction level in means of quality.

ACKNOWLEDGMENT

I wish to thank GOD the Almighty for bestowing on me his blessings

and for giving me the opportunity to undergo the project with this prestigious

organization. He has given me good sense and understanding which has

helped me in doing my work with at most dedication and hard work.

I express my sincere thanks to my project guide, Prof. G.N. Purohit, Director, Of Vyas Institute of Management for guiding me right form the

inception till the successful completion of the project. I sincerely acknowledge

her for extending their valuable guidance, support for literature, critical

reviews of project and the report and above all the moral support he had

provided to me with all stages of this project.

I express a deep sense of gratitude to honorable Shri Gopal Tripathi, Training Incharge, SCL for providing me an opportunity to work with Shree

Cement Ltd.

I would also like to thank All faculty member of Vyas Institute Of

Management and the supporting staff for their help and cooperation

throughout our project.

I wish my sincere thanks to the Customers, Retailers, who provide their

valuable time from their busy schedule and took interest in my questionnaire.

Place : Jodhpur

Date: 15 Sept. 2009

Vaibhav Achtani

MBA Part 3rd

EXECUTIVE SUMMARYThis project deals with the assessment of satisfaction level of the

retailers towards the Shree Cement Brand in terms of quality and quantity,

and factor that are responsible for the satisfaction level. We have focused our

research on Shree Cement due to the slow growth rate instead of having

huge market possibility.

With the help of Questionnaire we have analyzed each and every

factor that is responsible for the satisfaction level of the retailer toward Shree

Cement. Study also included the market demand for the cement, market

share, competition analysis to know the exact position of cement in the

market.

We have focused toward retailer scheme and its impact on the retailer

and sale promotion of the cement.

Most important factor that are responsible are profitability margin ,

problem related to quality, problem related to the monetary coupon , problem

related to the disbursement amount all these factor really hampering the

retailers relationship with the company. We have also discussed the

challenges in front of the company and its recommendation.

We planned to target the retailers and dealers to collect data regarding

position of shree ultra red oxide cement that :

1. What are weaknesses in the marketing strategies of company?

2. How many satisfied retailers are there in jodhpur region?

3. What factors must be adopted to enhance retail market.

4. What are the promotional activities adopted by company?

TABLE OF CONTENTS

S.no. Topic Page No.

1. THE INDIAN CEMENT INDUSTRY

The Indian Cement Industry date back to 1914, with first unit was set up at Porbandar with a capacity 1000 tones. Currently the Indian Cement Industry with a total capacity of around 213 million tones (excluding mini plants) in FY 08-09, has surpassed developed nations like USA and Japan and has emerged as the second largest market after China. Although consolidation has taken place in the Indian Cement Industry with the top 5 players almost 50% of the capacity, the remaining 50% of the capacity remains pretty fragmented. India’s average consumption is still low and the process of catching up with international averages will drive future growth. Infrastructure spending (particularly on roads, ports and airports), a spurt in housing construction and expansion in corporate production facilities is likely to spur growth in this area. South-East Asia and the Middle East are potential export markets. Low cost technology and extensive restructuring have made some of the Indian cement companies the most efficient across global majors. Despite some consolidation, the industry remains somewhat fragmented and merger and acquisition possibilities are strong. Investment norms including guidelines for foreign direct investment (FDI) are investor-friendly. All these factors present a strong case for investing in Indian market.

1.1 THE CEMENT INDUSTRY STRUCTUREPresently the total installed capacity of Indian Cement Industry is more than

200 million tones per annum, with a production around 184 million tones. The

whole cement industry can be divided into Major cement plants and Mini

cement plants.

MAJOR CEMENT PLANTS:

Plants: 140

Typical installed capacity

Per plant: Above 1.5 mntpa

Total installed capacity : 195 mntpa

Production 08-09: 178 mntpa

All India reach through multiple plants

Export to Bangladesh, Nepal, Sri Lanka, UAE and Mauritius

Strong Marketing network, tie-ups with customers, contractors

Wide spread distribution network

Sales primarily through the dealer channel

MINI CEMENT PLANTS:

Nearly 300 plants located in Gujarat, Rajasthan, MP mainly

Typical installed capacity

Installed capacity around 9 mntpa

Production around : 6 mntpa

Mini plants were meant to tap scattered limestone reserves

Most of the plants use vertical kiln technology

Production cost / tonne – Rs 1,000 to Rs 1,400

Presence of these plants limited to the state

1.2 INDUSTRY CURRENT SCENARIO

SECTOR OUTLOOK

Indian Cement Industry is set to increase production capacity by 28.3 mt in FY09E, 41.4 mt in FY10E and 18.9 mt in FY11E. This will take the

aggregate installed capacity to ~288 mt. In FY08, 21 mt of capacity was

added. The Industry planned this massive capacity expansion of 108 mt

because they had never seen such a good run till FY2006. During this period,

the capacity utilization rate of the Industry reached an all time high level of

~99% in FY08. In the period FY05 to FY08, cement demand grew at a CAGR

of 10.5% and average retail price increased by a whopping 41% to Rs 230

per bag. Cement manufacturers made huge profits and the Industry average

per tonne of operating profits crossed Rs 1100. Driven by theses profitability

levels, average RoCE level of the Industry crossed the 25% mark.

Figure 02: Capacity addition in Cement production

Cement Industry is set to add ~89 mn tonnes of capacity between FY09-

FY11E, which accounts for ~48% of FY08 installed capacity. We expect ~21

mt of capacity addition in Q4FY09, followed by 41 mt of additional capacity in

FY10 and 18.9 mt in FY11. Of the new capacities, ~ 41 mt (~50%) is

expected to be commissioned in the South, followed by 13.3 mt (~16.4%) in

the North and 13 mt (16.1%) in the East.

SHARE OF CAPACITY ADDITION (REGION-WISE AND TOP 5 GROUPS)

Figure 03: share of capacity addition region wise

Figure 03: share of capacity addition Company wise

1.3 ANTICIPATED GROWTH IN CEMENT DEMAND

Housing construction accounts for around 60-65% of the total cement

demand and the balance comes from infrastructure sectors including roads,

railways, ports and power, among others. The demand for cement is directly

linked to economic activity and has a high correlation with GDP growth.

Infrastructure investments and construction activities, which are the major

drivers of cement demand, are also key components of GDP. Further, rural

housing, which is a determinant of cement demand, depends on agricultural

productivity, which again is a key component of GDP.

Historical data of last 12 yrs shows that cement demand in India has

increased at the rate of 1.27x the growth rate of GDP. It is expected that

cement consumption growth would shrink over the next two years due to

uncertain economic conditions and slowdown in real estate construction

activities. Cement demand will consequently grow by 8.7%, 7.6% and 8.9% in

FY09, FY10 and FY11 respectively.

Table 03: Capacity Utilization (%)

1.4 TYPES OF CEMENTCements are of two basic types – grey cement and white cement. Grey

cement is used only for construction purposes while white cement can be put

to a variety of uses. It is used for mosaic terrazzo flooring and certain

cements paints. It is used as a primer for paints besides has a variety of

architectural uses. The cost of white cement is approximately three times that

of grey cement. White cement is more expensive because its production cost

is more and excise duty on white cement is also higher. Shree Cement does

not manufacture white cement at present.

The types of cement in India have increased over the years with the

advancement in research, development, and technology. The Indian cement

industry is witnessing a boom as a result of which the production of different

kinds of cement in India has also increased.

By a fair estimate, there are around 11 different types of cement that are being

produced in India. The production of all these cement varieties is according to the

specifications of the BIS.

1.5 CEMENT MANUFACTURING

RAW MATERIAL PREPARATION

Limestone of differing chemical composition is freely available in the quarries.

This limestone is carefully blended before being crushed. Red mineral is

added to the limestone at the crushing stage to provide consistent chemical

composition of the raw materials. Once these materials have been crushed

and subjected to online chemical analysis they are blended in a homogenized

stockpile. A bucket wheel reclaimer is used to recover and further blend this

raw material mix before transfer to the raw material grinding mills.

CEMENT

GREY WHITE

PORTLAND POZZOLONA ORDINARY PORTLAND

Transport belt conveyor transfers the blended raw materials

to ball mills where it is ground. The chemical analysis is

again checked to ensure excellent quality control of the

product. The resulting ground and dried raw meal is sent to

a homogenizing and storage silo for further blending before

being burnt in the kilns.

FUELS

The heat required to produce temperatures of 1,800°C at

the flame is supplied by ground and dried petroleum coke

and/or fuel oil. The Petcoke is imported via the companies'

internal wharf, stored and then ground in dedicated mills.

Careful control of the mills ensures optimum fineness of

the Petcoke and excellent combustion conditions within the

kilns system.

BURNING

The raw meal is fed into the top of a pre-heater tower equipped with four

cyclone stages. As it falls, the meal is heated up by the rising hot gases and

reaches 800°C. At this temperature, the meal

dehydrates and partially decarbonizes. The meal then

enters a sloping rotary kiln, which is heated by a

1,800°C flame, which completes the burning process of

the meal. The meal is heated to a temperature of at

least 1,450°C. At this temperature the chemical

changes required to produce cement clinker are

achieved. The dry process kiln is shorter than the wet

process kiln and is the most fuel-efficient method of cement production

available.

Fig 1: Limestone Extraction

Fig 3: Kiln

Fig 2: Inside of Kiln

Fig 3: Central Control Room

COOLER UNITS

The clinker discharging from the kiln is cooled by air to a temperature of 70°C

above ambient temperature and heat is recovered for the process to improve

fuel efficiency. Some of the air from the cooler is de-

dusted and supplied to the coal grinding Plant. The

remaining air is used as preheated secondary air for the

main combustion burner in the kiln. Clinker is analyzed

to ensure consistent product quality as it leaves the

cooler. Metal conveyors transport the clinker to closed

storage areas.

FILTERS

Dedicated electrostatic precipitators dedust the air and gases used in the

Clinker Production Line Process. In this way, 99.9% of the dust is collected

before venting to the atmosphere. All dust collected is returned to the

process.

CONSTITUENTS

Different types of cement are produced by mixing and weighing proportionally

the following constituents:

Clinker

Gypsum

Limestone addition

Blast Furnace Slag

Fig 4: Cement Plant

Fig5: Cement manufacturing from the quarrying of limestone to the bagging of cement.

1.6 FUTURE OF CEMENT INDUSTRY

Demand drivers

Infrastructure & construction sector the major demand drivers. Some demand determinants

 Economic growth  Industrial activity

 Real estate business

 Construction activity

 Investments in the core sector

Future

Signs of a revival

growth in the housing sector

central road fund established for national  highways and

railway over bridges to provide the necessary impetus

expansion plans, greenfield projects on the anvil

Capacity likely to be 286.9 mn. tonnes by  2009 - 2014

 By 2009 - 3.9 mn tonnes addition expected

 2010-2011 - 10 mn tonnes

 2012 - 2013 - 8 mn tonnes

Demand - supply balance expected in the next 12 - 15 months

Higher capacity utilisation likely in the future

Encouraging trend in demand due to pick-up in rural housing

demand and industrial revival

Industry likely to grow at 8-10% in the next few years

CHAPTER 2

COMPANY PROFILE

Shree Cement Ltd. is an energy conscious & environment friendly business organization. Having Nine Directors on its board under the chairmanship of Shri.B.G. Bangur, the policy decisions are taken under the guidance of Shri. H.M. Bangur, Managing Director. Shri. M.K.Singhi, Executive Director of the Company, is looking after all day-to-day affairs. The company is managed by qualified professionals with broad vision who are committed to maintain high standards of quality & leadership to serve the customers to their fullest satisfaction. The board consists of eminent persons with considerable professional expertise in industry and field such as banking, law, marketing & finance.

Location

Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the

Delhi-Ahmedabad highway. Amongst the plants in the state it is nearest from

its marketing centers.

Bangur Cement Unit (III,IV,V & Vi) is lacated at RAS,28 Km from Beawar in

pali Dist.

Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to Delhi.

Regd. Office & Works:

Shree Cement Ltd.

Bangur Nagar, Post Box No. 33 Beawar 305901

Rajasthan India

Corp.Office: 21, Strand Road, Calcutta- 700001.

Success Driver

PEOPLE AS PROGRESS DRIVERSShree believes that what is present in the minds of people is more valuable

than the assets on the shop floor. All the company’s initiatives are directed to

leverage the value of this growing asset.

TEAMWORKShree leverages effective team working to generate a sustainable

improvement.

LEADERS AT EVERY LEVEL Shree believes in creating leaders -not just at the organizational apex but at

every level, resulting in a strong sense of emotional ownership.

CULTURE OF INNOVATION Shree believes that what is good can be made better -across the

organization.

CUSTOMER FOCUS Shree is committed to deliver a superior quality of cement at attractively

affordable prices.

SHAREHOLDER VALUEShree is focused on the enhancement of value through a number of strategic

and business initiatives that generate larger and a better quality of earnings.

COMMUNITY AND ENVIRONMENTShree’s community concern extends from direct assistance to safe and

dependable operations for its members and the environment.

Markets classification

Markets States

Primary Rajasthan

Secondar

y

Delhi, Punjab, JK, Haryana, Western U.P. and

Uttaranchal

Tertiary Gujarat, M.P. and Central U.P.

Markets

Each cement manufacturer has a primary and secondary market. The former

is one, which is the closest to the production centre where it fetches the best

realizations while the latter is usually at a distance where realizations are

lower.

In an industry where consumer loyalties change every rupee, Shree’s biggest

achievement was that it built an emotional bond with its stakeholders.

This transpired as a result of a number of initiatives:

The company positioned its brands around longer life (durability),

emphasizing product longevity.

The company innovated the launch of corrosion resistant grade like

Red Oxide Cement, winning innovations in a staid industry.

Shree put its products deeper within most territories. Besides, it

invested in logistics to reach retail shelves faster. As a result, Shree’s

products moved quicker off retail shelves: every 0.65 seconds in 2001-

02 and every 0.58 seconds in 2002-03. As the company’s primary

customers - dealers - accelerated the rotation of their working capital,

they maximized their return on capital, ensuring brand loyalty.

Shree accelerated footholds through a stronger Rs 3 cr advertising

campaign for its Red Oxide brand in the regional print and electronic

medium in 2002-03.

Shree educated its principal users - the masons and architects.

Marketing presence

Over the last three years, Shree considerably strengthened its marketing

presence. Since the company is based in Rajasthan, the state is the

company’s principal market.

Rajasthan is India’s largest cement producing state and Shree’s is the largest

single location plant in northern India. The company’s northern-most

positioning within Rajasthan makes it the closest among all Rajasthan

manufacturers to Delhi, Haryana and some parts of Punjab, a significant cost

edge. The company enjoys a market share of about 11 per cent in north India.

Challenges

Due to the nature of the product - bulky, low priced - it became increasingly

difficult to sell the product across a large territory. Besides, higher realizations

in distant territories did not mean that the gain would accrue to the company

since the incremental freight would neutralize the price advantage. As a

result, it became important to arrive at a median between realizations and

distribution costs and earn a comfortable margin.

ERP implementation

Network that delivers online, real-time access to information and processes.

Towards this end, the company is adopting the Oracle e-Business Suite ERP

with Tata Consultancy Services as the implementation partner. Imbibing the

best practices of companies worldwide, this ERP suite will impact all

processes of the company, right from procurement, through operations, to

sales and distribution. It involves a complete re-engineering of business

processes to make them more high-performing and tuned towards the global

order.

Progressive Management

Shree Cement supplemented its attractively low capital investment per tone with one of the lowest manufacturing costs in the Indian cement industry.

Starting with 6 lac tones per annum of cement in 1985, the capacity was

upgraded to 7.6 lac tones in 1993. Second plant with installed capacity of 1.24

million tones per annum was commissioned in 1997, in record time of 18

months, raising total capacity to 2.0 MTPA. Even during recession in the

industry, it was possible for it to enhance capacity further to 2.6 MTPA due to

its strategic location and better brand image and is the largest single location

plant in North India. The company's installed capacity accounted for 15

percent of Rajsthan's total capacity in 2002-03 and 2.5 percent of Indian's

production in 2002-03. Cement production increased 3.42% from 2.747

million tones in 2002-03 to 2.841 million tones in 2003-04.

Once again, the low cost was the result of scores of initiatives across all

levels within the company. Some resulting in small savings. Some in big. But

each primarily driven by the belief that what was being done could be done

better.

Cooler fans were configured to a higher capacity so that heat could

recuperate better. A better raw mix helped Shree reduce the proportion of

high cost limestone and saved the company Rs 0.44 cr.

Jo soche woh paave

Shree has invested wisely in its people assets over the last few years to

sustain a culture of excellence through the following initiatives:

The company incentivised ownership through the ‘Jo soche woh paave’ scheme.

The company trained and multi-skilled so that members could deepen and extend

their competencies across the house keeping, maintenance, risk management, team

building and environment, health and safety functions.

Jo soche woh paave also deals with some really simple solutions. Like

the inevitable 8.30 am traffic jam of employee vehicles - 60 cars and

300 two-wheelers - at the factory gate. This posed an accident risk. I

suggested that another gate be opened for car entry only. This

suggestion was accepted and the result is a safer factory and a bigger

time saving today."

- Girish Singhal (Dy. Manager, Taxation)

CREATING LEADERS AT EVERY LEVEL

Shree Cement emphasises that creating leaders not just at the organisational

apex but at every level results in strong sense of emotional ownership. Thus

the employees are delegated with responsibility and authority to adopt one

Electric motor and related equipment for keeping watch and care resulting in

energy conservation, thus generating multiple CEO's in the Energy

Management System.

RECOGNITION AND REWARD SCHEME

The management believes in the self-actualisation of its employees by

injecting the concept of Human resource Development in all its policies and

strategies. By recognition and reward the employees are motivated to give

their best in the interests of the organization in particular and for the society in

general. So many schemes of recognition and rewards are given to boost the

morale and motivate the employees.

According to Managing Director of the company, morale management is

considered to be more challenging than material management. According to

him it is important to keep walking around and congratulating the teams for

their small victories. Efforts and their success stories are disclosed to all in

special functions so that other employees may take inspiration from them.

Employees are rewarded for doing exemplary work in the field of reducing/

eliminating breakdown, in-house development, better house keeping, and

reduction in raw material, fuel, power and wastage. Cash awards and

Certificates of honour have been given in a function.

For example a scrapper chain of reclaimer II is to be replaced which takes 80 hours. The

team completed this task in minimum possible time with the result that the reclaimer was

put into operation in just 36.5 hours. The team was rewarded with a cash amount of Rs.

11,000/- and certificate of honour.

RAS CEMENT PROJECT

Shree Cement Limited is setting up a

new green field Project at Village Ras,

Tehsil Jaitaran, District Pali of

Rajasthan. The capacity of the plant is

3000 Ton Per Day of clinker production

with an approximate investment of

about Rs. 300 Crores.

The company has already engaged

eminent Consultant for the same and all

the major orders has been placed so as

to achieve the ambitious target to

commission the plant by August 2005

which is fifteen months from the date of

first order placement i.e. May, 2004.

The main plant & machineries would be

supplied by KHD Humboldt Wedag AG -

Germany & GEBR Pfeiffer AG -

Germany. The plant will be based on

the latest Technology available and

maximum Automation would be done to

keep the minimum manpower. The

company is having sufficient mining

lease at Ras to cater its production

requirements for the upcoming 50

years.

Trust Comes From Quality At Shree Cement Limited

Shree Ultra Cement - 43 Grade

BIS specification Shree Ultra Cement - 43 Grade

Fineness (m2 / kg) 225 355

Soundness - -

Le chatelier expansion

(mm)

Max 1.0 .084

Auto-clave expansion

(%)

Max. 0.8 .075

Setting Time (Mins) - -

Initial Min. 30 115

Final Max. 600 176

Compressive Strength

(MPa)

- -

3 days Min 23 38

7 days Min33 50

28 day Min. 43 63.5

TUFF Cemento 3556 IS Specification 43 Grade

3556

FinenessSpecific Surface (m2 /

kg)

Min.330 406

Setting Time(Minutes.)(a)Intial

Min.30 110

(b)final Min.600 175

Soundness Test(a)Le-Chatelier

Method (mm)

Max. 10 1.0

(a)AutoClave(%) Max. 0.800 0.068

Compressive Strength (MPa)(a)3 days(Min.)

Min.16 39

(b)7 days(Min.) Min.22 49

Shree Ultra Cement 53 Grade

BIS Specification

Shree Ultra Cement 53-

53 Grade Grade

Fineness (m2 / kg) 225 385

Soundness

Le chatelier expansion

(mm)

Max. 10 1.0

Auto-clave expansion

(%)

Max. 0.8 0.606

Setting Time (Mins)

Initial Min. 30 111

Final Max. 600 166

Compressive Strength

(MPa)

3 days 27 41.3

7 days 37 54.7

28 days 53 67.6

Shree Cement expects good run in North India

Live News : CNBC -TV18

 12/13/2004  11:13:00 AM

- Cement prices are expected to firm up in the coming months, on the

back of nearly 8%-9% growth in demand. Rajasthan-based Shree

Cement is confident of achieving a good growth in both its top and

bottom line.

- MK Singhi, ED, Shree Cement, told CNBC-TV18, "Supply is now

almost matching demand, and it looks like in the next three months, till

March, demand will definitely be more than supply, and that will mean

the market will be ready to give a better price. The present price is still

less than the price in March 2004, so that gives an indication that the

prices will go up to some extent, and that will be a good time for the

cement industry, especially in North India. Till November, the growth in

demand is about 8%, and it should remain so for the next four months

also, the way the manufacturing sactor is showing growth in North

India. Since no new capacities are coming up, the prices should be

good in North India."

Shree Cement sells 90% of its product in North India, where demand is

strongest, with up to 10% going to Uttar Pradesh. Its present capacity is 2.8

million tonnes, but it does not have a share in the export market at all. It

enjoys up to 11% of the market share in North India.

The company enjoys a low power cost, due to the 36 MW captive power plant

at its disposal, and has the lowest variable cost per tonne in India. Because of

its proximity to the northern parts of India, Shree also has a relatively low

freight cost, which results in a higher realisation. It's captive limestone

reserves are estimated at over 400 million tonnes.

In the second quarter results, that were declared recently, Shree recorded a

19% year-on-year jump in net sales, up from Rs 117.43 crore to Rs 140.08

crore. Singhi expects the company's topline growth to continue, going

forward, on the back of strong demand. "For Shree Cement, our sales should

be higher by more than 12%, and our growth in volume should be up by 5%.

That augurs well, and gives good numbers in comparison to last year. The

performance of the first six months was also good," he said.

In Q2, the company's net profit climbed year-on-year 479%, from Rs 2.93

crore (Rs 29.3 million) to Rs 17 crore (Rs 170 million), while its operating

profit was up 70%, from Rs 23.04 crore (Rs 230.4 million) to Rs 39.19 crore

(Rs 391.9 million). Operating margins soared 836 basis points, from 19.62%

to 27.98%. With a 1.2 million tonne capacity greenfield cement plant planned

by next December, margins will also improve.

He said, "Our margins are quite comfortable, and will be better with the new

plant coming up. We are funding the plant at the moment with internal

accruals of Rs 100-200 crore (Rs 10-20 billion), and that will not bother the

operating parameters of our existing plant. Our optimisation in logistic costs

and energy management should also make our operating margins better."

However, there are concerns that a rise in coal prices and freight charges

could dent the company's profitability. Pet coke prices are up by more than

50% from last year, and Shree is totally dependent on pet coke for its kiln and

captive power plant.

Source: moneycontrol.com

Shree Cement A Pilliar Of Strength

3.

Research Methodology

3.1. Title of the Study : “Comparative Analysis of Shree Ultra Red Oxide Cement with other Brands in Jodhpur Region.”

3.2. Duration of the Project : During the Summer internship

programme with Shree Cement Ltd, from 27th May 2009 to 6th July 2009.

3.3. Objective of Study: The study basically across attention towards the market share of the Shree

Cement and factor responsible for measuring the satisfaction level of the

retailers such as:

1. Impact of scheme offered by the company.

2. To know the effectiveness of the shree cement Product.

3. Profit margin for the retailer associated with cement as compare to the

other brand products.

4. To know the pricing strategy of the shree cement as compare to the

competitors.

5. Consumption level of shree cement as compare to the other products.

6. To know the level of the quality associated with the shree cement.

3.4. Type of Research : The project guide ask me to analyze

the Comparative position of Shree red oxide cement in western Rajasthan. He

suggested to visit to Retailers to know the market demand and awareness of

the quality toward the cement as compare to the other product such as

Binani, JK Lakshmi etc. The first two weeks of training, visited the different

places like Retailers, Dealers, Complex, Mall and ICH (individual construction

house) and knows the views of the contractor, builders and individuals house

owner toward our product.

During initial period of training visited 135 places:

Number of Retailers : 135

This show the rapid growth in construction at Jodhpur and huge market scope

for the cement.

Finally, Project guide (Shri Gopal Tripathi) ask me do survey on “COMPARAIVE RESEARCH” OF SHREE ULTRA RED OXIDE CEMENT WHIT OTHER BRANDS AMONG RETAILAIRS.

3.4.1. DATA SOURCE

Research included gathering both Primary and Secondary data. Primary data is the first hand data, which are selected a fresh and thus happen to be original in character. Primary Data was crucial to know various retailers views about cement and to calculate the choice of this brand in regards to other brands.

Secondary data are those which has been collected by some one else and which already have been passed through statistical process. Secondary data has been taken from internet, newspaper, magazines and companies web sites.

3.5. Sample Size: Number of Retailers and dealer : 135

3.6 Limitation of Study 1. Research work was carried out in one Distt of Rajasthan (JODHPUR) only

the finding may not be applicable to the other parts of the country because of social and cultural differences.

2. The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population.

3. Shortage of time is also reason for incomprehensiveness.

4. The views of the people are biased therefore it doesn’t reflect true picture.

4.

Facts and FindingFrom the present study which is based on survey the following facts are come out, there is some factors which influence sale of two wheeler.

4.1. Factors Influence Sale of cement: Features: Price: Availability: Quality:

4.2. Findings: Surprising result are that 90% builder and contractor are aware of our product

and Builder are impressed with its quality, finishing, and Strength. But 75 %

builder and contractor decision are based on their contractor and retailer

suggestions.

BINANI IS TOP SELLING BRAND IN JHALAMAND ARES

Reasons

- Cement readily available in different area- Brand Name, Value- Dark Color, Setting time less- Customer demand due to good advertising

Shree IS TOP SELLING BRAND IN SURSAGAR ARES

Reasons :

- Contractor Choice- Customer Preference- Cement readily available in different area- Brand Name, Value- Dark Color, Setting time less- Customer demand due to good advertising

BINANI And JK LAKSHMI IS TOP SELLING BRAND IN LALSAGAR ARES

Reasons

- Contractor Choice- Customer Preference- Cement readily available in different area- Brand Name, Value- Dark Color, Setting time less- Customer demand due to good advertising

Binani Is Top Selling Brand IN Madhuban Badni / Kudi Housing Board Areas

Reasons :

- Cement readily available in different area- Brand Name, Value- Dark Color, Setting time less- Customer demand due to good advertising-

JK LAKSHMI, SHREE IS TOP SELLING BRAND IN RATANADA ARES

Reasons

- Contractor Choice- Customer Preference- Cement readily available in different area- Brand Name, Value- Dark Color, Setting time less- Customer demand due to good advertising

Bangur Is Top Selling Brand IN Chopasni Housing Board Areas

Reasons:

- Contractor Choice- Customer Preference- Cement readily available in different area- Brand Name, Value- Dark Color, Setting time less- Customer demand due to good advertising

Binani Is Top Selling Brand in Jodhpur.

Reasons :-

- Cement readily available in different area, Contractor Choice

- Brand Name, Value, Customer Preference- Dark Color, Setting time less- Customer demand due to good advertising

5. Analysis and InterpretationAnalysis and Interpretation work is very important work of any research study. For the present study we have done a survey of 135 Retailer in Jodhpur Region (Rajasthan). The main objective of the study is Comparative Analysis of Shree Ultra Red Oxide Cement with other Brands in Jodhpur Region. For this purpose some question are asked to retailer about the brands of cement in which they are dealing. The question wise analysis is given below with diagrammatic presentation.

Q.1. Which brands are available in your retail store?

Comparative Research in Quantity

Q.2. How much quantity is sold by you of different brands ?

Comparative Research on Price

Q.3. What is the Price of different Brands ?

Comparative Research on Quality

Q.4. Which brand product is most preferred by you in terms of quality ?

Comparative Research on Marketing Strategies

Q.5. Which brand have most effective marketing strategies ?

Comparative Research on Schemes

Q.6. Which of the following offer given by company satisfy you most ?

Comparative Research on Customers Preference

Q.7. Which of the following is mostly considered by customers while buying cement ?

6. SWOT Analysis

SWOT ANALYSIS FOR SHREE CEMENT LTDSTRENGTHS

Focused strategy

Lowest cost producer of cement in north India

A secure source of raw materials

High penetration in government projects

Largest single plant capacity in India

Shree power plant, which is producing electricity enough for RAS plant

WEAKNESS

Less dealer incentives as compared to its competitors

Color of the cement has not been perceived greatly, green color was

most preferred

Poor advertising and brand promotion

OPPORTUNITIES

Real Estate demand improvement will lead to increased demand

International expansion

Reduction in custom duties

Government’s thrust on infrastructure and tax incentives on housing

loans

THREATS

Mostly concentrated in the northern region

Increased competition from domestic as well as international players

Chances of decrease in demand because of slowdown in the economy

Supply demand mismatch may decrease the profits of the company

7. Conclusion

- Binani Cement is available in most of the retail store.

- Binani is the top selling brand in jodhpur region.

- Shree Ultra Red Oxide Cement Stands at Sixth position in

Retail Market.

- Price of Shree Ultra Red Oxide cement is Low as compared

to other brands.

- Retailers mostly prefer the Bonus schemes.

- Customers mostly prefer the brand which is suggested to them

by retailers.

8. Recommendation and Suggestions

-Company should increase number retailers in Jodhpur Region

-Company should pay more attention toward marketing strategies.

-Company should pay attention towards retail market.

-Company should provide effective bonus scheme.

-Company should increase the quality.

9. Appendix

QUESTIONNAIRE (RETAILERS)

Measuring satisfaction level of Retailers with Shree Cement brand via-a-via other brands

We would like to know your views about Shree Cement Product, could you help us by answering these few questions.

PERSONAL INFORMATION

NAME

RETAIL STORE

ADDRESS

CONTACT NO.

Ques1. Which of the following type of brand available in your retail store?

Branded Product

Shree Cement ( )

Ambuja ( )

Bangaur ( )

JK Lakshmi ( )

Ultratech ( )

Binani ( )

Tuff Cemento ( )

JK Nimbahera ( )

Non-Branded Product

___________________________________________________________

___________________________________________________________

Ques 2. How much quantity is sold by you of different brands ?

Brand Name Quantity W/s Price Retail Price

1.

2.

3.

4.

Ques3. What is the Price of different Brands ?

Ques4. Which brand product is most preferred by you in terms of quality?

Ques5. Which brand have most effective marketing strategies?

Ques6. Which of the following offer given by company satisfy you most ?

Bonus

Gift

Special offer

International tour

Ques7. Which of the following is mostly considered by customers while buying cement

Quality

Price

Advertising

Retailer suggestion

Contactor Choice

Availability

Place:

Date:

(Signature)

- DATA SHEETS OF RESEARCH STUDY

DATA SHEET - JHALAMAND

LOCATION – JHALAMAND

Figure in Metric Tons Data as per survey of 8 different area in Jhalamand

Brands I II III IV V VI VII VIII M/Ton Avg.W/s Price

Avg.

R/ Price

Binani 800 - 100 - 50 20 35 - 1005 220-225 223-230

JK Lakshmi 800 - 100 11 - 50 - - 961 225-230 231-234

Birla 600 - 100 - - - - - 700 220-224 225-230

Ultra - 40 - - - - 35 - 75 225-230 230-234

Ambuja - - 100 - - 15 - - 115 226-230 231-234

Bangaur - - - 11 50 10 50 150 271 218-222 225-228

Tuff Cemento

- - - 15 50 - - - 65 217-221 224-228

DATA SHEET - SURSAGAR

LOCATION – SURSAGAR

Figure in Metric Tons Data as per survey of 3 different area in Sursagar

Brands I II III M/Ton Avg.W/s Price Avg.

R/ Price

Binani 25 30 15 70 220-225 223-230

Shree - - 94 94 217-221 225-228

Ambuja - 30 30 60 226-230 231-234

Bangaur - 72 - 72 218-222 225-228

Tuff Cemento 35 10 - 45 217-221 224-228

DATA SHEET - LALSAGAR

LOCATION – LAL SAGAR

Figure in Metric Tons Data as per survey of 8 different area in LAL SAGAR

Brands I II III IV V VI VII VIII M/Ton Avg.W/s Price

Avg.

R/ Price

Binani 25 75 100 50 - 30 75 15 370 200-203 200-207

JK Lakshmi - - - 50 20 30 25 225 350 200-205 205-210

Birla - - - - - - - 215 215 200-205 205-207

Ambuja - - 90 50 - 50 - - 190 200-207 205-210

Tuff Cemento - - - 60 50 30 - - 140 200-205 205-210

DATA SHEET – MADHUBAN BASNI / KUDI HOUSING BOARD

LOCATION – MADHUBAN BASNI / KUDI HOUSING BOARD

Figure in Metric Tons Data as per survey of 8 different area in Madhuban Badni / Kudi Housing Board

Brands I II III IV V VI VII VIII M/Ton Avg.W/s Price

Avg.

R/ Price

Binani 35 10 35 15 40 35 30 200 200-203 200-207

JK Lakshmi 10 15 20 10 40 10 10 115 200-205 205-210

Birla 30 15 45 200-205 205-207

Bangur 10 10 200-204 205-207

Ambuja 20 10 140 10 180 200-207 205-210

Shree 10 95 15 10 130 200-205 205-210

Tuff Cemento 50 70 20 140 200-205 205-210

Ultra 15 10 15 70 110

Chetak 50 75 125

Kamdhenu 10 5 15

DATA SHEET - RATANADA

LOCATION – RATANADA

Figure in Metric Tons Data as per survey of 3 different area in RATANADA

Brands I II III M/Ton Avg.W/s Price Avg.

R/ Price

Binani 25 25 50 200-203 200-207

JK Lakshmi 25 25 200-205 205-210

Birla 25 25 200-205 205-207

Shree 50 50 200-205 205-210

DATA SHEET – CHOPASNI HOUSING BOARD

LOCATION – CHOPASNI HOUSING BOARD

Figure in Metric Tons Data as per survey of 5 different area in Chopasni Housing Board

Brands I II III IV V M/Ton Avg.W/s Price Avg.

R/ Price

Binani 50 40 40 130 200-203 200-207

JK Lakshmi 51 300 351 200-205 205-210

Bangur 600 50 45 695 200-204 205-207

Ambuja 100 40 140 200-207 205-210

Ultra 25 60 60 25 170 200-207 205-210

OVER ALL DATA SHEET

Figure in Metric Tons

Brands M/Ton Avg.

W/s Price

Avg.

R/ Price

Binani 1005 70 370 200 50 130 1825 200-203 200-207

JK Lakshmi 961 - 350 115 25 351 1802 200-205 205-210

Birla 700 - 215 45 25 - 985 200-205 205-207

Bangaur 75 72 - 10 - 695 852 200-204 205-207

Ambuja 115 60 190 180 - 140 675 200-207 205-210

Shree 271 94 95 35 50 - 545 200-205 205-210

Tuff Cemento

65 45 140 140 - 390 200-205 205-210

Ultra - - 110 - 170 280 200-205 205-210

Chetek - - 125 - 125 200-205 205-210

Kamdhenu - - - 15 - - 15 200-205 205-210

BIBLIOGRAPHY

SURSAGAR

JHALAMAN

D

LAL SAGAR

MADHU

BAN

RATANADA

CHOPASN

I

www.shreecement.com

literature provided by company

www.icrm.com

www. et-website-cement.pdf

Retailer scheme (2008-2009) and retailer database provided by the company.

Articles from economics times :

“Cement companies hit hard by export ban” by Papiya Pattanayak”.

“More cement from the pak to help tame price line” by Amiti Sen.

“Shree Cement appoints advisors to spruce up performance” by Kausik Datta & Rajesh Unnikrishnan.