“ Assessment of market performance of JK cement and designing strategies for enhancement”

REPORT “ Assessment of market performance of JK cement and designing strategies for enhancement” 1

CONTENTS CHAPTER NO. DESCRIPTION PAGE NO. 1 INTRODUCTION 2-6 2 ABOUT CEMENT 7-12 3 MARKETING DEPARTMENT 13-18 4 INDUSTRY & MARKET SCENARIO 19-24 5 RESEARCH METHODOLOGY 26-27 6 SWOT ANALYSIS 27-29 7 FINDINGS AT A GLANCE 29-30 8 SUGGESTIONS 31-32 9 LIMITATIONS 33 ANNEXURE-1 QUESTIONNAIRE-1 ANNEXURE-2 QUESTIONNAIRE-2 ANNEXURE-3 BIBLIOGRAPHY CHAPTER-1 INTRODUCTION 2

1.1 ORIGIN & DEVELOPMENT OF J.K.CEMENT 1.2 COMPANY PROFILE 1.3 PLANT LOCATION 1.4 PRODUCT 1.5 SALIENT FEATURES 1.6 QUALITY PARAMETERS 1.7 ACHIEVEMENT CHAPTER-1 INTRODUCTION 1.1 ORIGIN AND DEVELOPMENT OF J.K.ORGANIZATION The founder to whom J.K organization owes. its name was a Father son, Late Lala Jhuggilal Singhania and Late.. Lala Kamlapat Singhania. They started their business activities from Kolkata as financial investors over 100 years ago in 1887. in 1914 they shifted towards the Cotton –textile industries at Kanpur (U.P.) Today in India. J.K Organization occupies a place of pride in industrial. and commercial. Fields . The Singhania family struggled over last two centuries and 3

contributed to the economic and social growth of India. In the process of industrialization. They attend the present place of destination among the top industrial pioneers of the country. M/S J.K.Cement works is a division of J.K. Synthetics Limited. Kanpur a member of J.K.Organization. Which is a multi product and multi unit company with diversified operation in synthetic fibers, Cement plants (gray & white) , Power generation etc. M/S J.K. synthetics Limited established their first gray Portland cement plant based on dry process technology at Nimbahera in the year 1974 The main aim to set up the plant was to fulfill the demand of cement in the country. The main reason of establishing this plant in Nimbahera was easy availability of raw materials (Limestone) in sufficient quantity. The whole Maarwad Malwa belt is carrying plenty of Limestone i.e. primary raw material for cement manufacturing. Then first kiln of this plant was started at 900 tons per day ( TPI) and subsequently the capacity was increased by addition of two more kilns f 1200 TPD 1350 TPD & 3400 TPD in 1979 . 1982 & 1988 respectively. In 2002. new Grey Cement plant was installed at Mangrol with initial production capacity of 2500 TPD. Today Nimbahera plant production is around 7000 TPD and Mangrol plant production is about 3000 TPD contributing to total production of 10000 TPD. J.K.Cement has been awarded by ISO -9000 . ISO-9002 and ISO-14000 & OHSAS-18000. 1.2 COMPANY PROFILE 1.2.1 PLANT LOCATION : J.K. Cement works is located at Nimbahera , District Chittorgarh , ,Rajasthan, Nimbahera is situated 30 K.M. south of Chittorgarh and connected to Jaipur by meter gauge railway line. udaipur the nearest domestic airport is 100 K.M. southeast of Nimbahera by rail and road. It is well connected with , Indore ,Chittorgarh , Ajmer , Jaipur, and Gujrat etc. The plant is approximately 2 K.M. away from Nimbahera railway & bus station. 4

1.2.2 PRODUCT: J.K.Cement works Nimbahera is leading producer of Ordinary Grey Cement and Blended Cement, Plant was set up in technical assistance with M/S F.L.smidth of Copenhagen. Denmark and started commercial production in 1974 with an initial production capacity of 900 TPD and subsequently upgraded in phase to 7000 TPD. 1.2.3 SALIENT FEATURES: - First dry process plant in India. - Latest Process Precaleinator technology for clinker - Unit II was first PLC controlled cement plant in India. - Most advanced and sophisticated central control room for entire process control from one point. - On line quality control by X-ray analyzer. - Computerized maintenance management system extended to stores, purchase sales. account personnel function etc. - Continuous on going process of training & development at Regional Training Centre (North) Nimbahera. 1.2.4 QUALITY PARAMETERS: J.K.Cement Nimbahera is using the latest dry process precalicination technique is its plant. This teehnique incorporates a five stage precheater, Precalcinator. air swept vertical roller mills and electronically controlled packaging machine. The major produced grade is “Sarvashaktiman” 43 grade cement. It is also an ISO 9002 certified manufacturing company. a certificate given by Lloyed. Register of quality assurance U.K. 5

Cement has different quality parameters which can be classified broadly in two categories Chemical and physical generally cement is of three different grades i.e. 33, 43, 53 based upon cement’s 3.7 or 28 days compressive strength. J.K. Cement is pioneering in 43 grade cement because of its quality consciousness. 1.2.4 ACHIEVEMENTS : • National award for highest production in 1978. • 104% production in 1990-91. • Record production 1.86 million tons against capacity of 1.50 million tons per annum. • Power consumption reduced to 115 Units per ton of cement in spite of multiple and old units. Now it has touched as low as 100 units per tone. • Specific heat consumption achieved up to 760 Kilo Calorie per Kg. of clinker. • Selected as one of the lead plant by world bank & DANIDA for setting up the Regional Training Centre. • Received ISO 9002 certificate for manufacturing and marketing of White as well as Grey cements both in 1995. PRODUCT SPECIFICATION GREY CEMENT RAW MATERIAL LIME STONE & GYPSUM TRADE NAME SARVSHAKTIMAN TRADE MARK VIJAYSTAMBH PRODUCT GRADES 43,53 AND PPC 6

PACKING CAPACITY 50 KG.PER BAG M.R.P. Rs.210 TO 230 PER BAG (Table -1) CHAPTER-2 CEMENT 2.1 CEMENT , TYPES OF CEMENT 2.2 MANUFACTURING PROCESS CHAPTER -2 Cement can be defined as a substance, which can join or unite two or more pieces of some other substances together to form a unit mass. 7

In this way cement is a building material. Today different types of organic compound’s mixtures are also available as a building material e.g. Pidilite, Feviquick, Fevicole etc. But in general “Hydraulic Cement” is used for construction and other (bricks, other solids etc.) purposes. 2.1 TYPES OF CEMENT There are several types of hydraulic cement available. Major categories are- - Hydraulic Limes - Natural Cement - Portland Cement Out of these categories , the Portland cement is the most important and extensively manufactured in India. Portland cement is so common that we call it simply cement. Portland cement is composed of – - Tricalecium Silicate - Diacaleium Silicate - Teracalcium Silicate and - Teracalcium Aluminoferrate These substances are essentially present in cement. Presence of more or less of the above constitutes in the Portland cement imparts the different properties required for different properties required for different types of cement such as- - Ordinary Portland cement(OPC) manufactured at NIMBAHERA .J.K.Cement plant - Moderate heat PC - Rapid hardening PC - Low heat PC. - Sulphate resisting cement - Oil well cement - White cement 8

There are also some natural or man made inorganic complexes which mixed with Portland cement clinker gives cement more suitable for certain jobs. These compounds are Pozzolanas. Slag, Limestone and Sandstone; 2.3 MANUFACTURING PROCESS Every manufacturing process starts with the procurement of raw materials. For production of cement the raw materials required are- - Limestone - Laterite - Gypsum and - Clay Lime stone mainly contains calcium carbonate. Which is the major component of cement. Laterite contains iron oxide and Clay provides silica as well as alumina. Gypsum helps in increasing the setting time of cement. There are three production lines involving five significant manufacturing stages namely crushing. raw mill grinding. Clinkerisation. cement grinding and packing. At Nimbahera plant Limestone is produced by open Cast Miting . First the holes of 6-8 ft. are drilled and then they are filled with explosive ( e.g.ANFO as a stimulant + some other explosion sensitive material). Afterwards the blasting takes place and rocks of different sizes are out. These rocks are then loaded in Dupmpers so as to dump it into Crusher Hopper storing place of raw material for a short period). From hopper the material (rocks of not more than 1x1 meter size) is fed in to crusher by feeder. Crusher reduces the size up to certain fixed level but finally secondary crusher gives it final size that is of appprox. 25 mm. The crushed limestone is then stacked in Limestone stockpiles by stacker according to low grade and high-grade limestone. Then the Reclaimed blends the limestone and provides homogenous grade of Limestone. Then this bland of 9

Limestone is conveyed to gantry yard of limestone hoppers through belt conveyer from gantry yard/ hoppers blended limestone as well as Literate is fed into raw mill with the help of EOT cranes The material is discharged from hoppers to raw mill by rotary feeders though belt conveyers grinding. In raw mill, the material is ground as fine powder. This fine powder is called as raw meal. This raw meal is then sent O Silo (a big cylindrical tank) for homogenization. This Silo is called as Blending Silo. Because Blending of Raw Meal is extracted from bottom of silo by Fluxo channels and converyed to passage hopper by screw conveyer, from where the material goes to weighing belts by Elevator and air slide. Fixed quantity then goes to F.K. Pump by air slide and excess material goes back to weighing hopper F.K.pump feeds this material to preheated tower which consist of Cyelones (Conical shaped from bottom) and Raiser duets. The height of this tower is approximately 70 meters. All the Cyelones and Raiser ducts get heat from the Rotator kiln with the help of high capacity preheater fan which diverts mainly the waste gases and thus reduce energy requirements. A portion of raw meal is preheated in the preheater tower At this stage the temperature profile given below- TEMP.(DEGREE CENT.) CYCLONE 350 To 380 Ist 560 To 600 2nd 700 To 760 3rd 820 To 840 4th Here the Limestone is partially converted into Calcium Oxide. Others chemical reactions take place inside the kiln as from precheater the material goes to Rotator Kiln. The Rotatory Kiln is the heart of cement plant because it is completely responsible for cement clinker production and the quality of the cement. 10

The kiln rotates with the help of electric motors. From inside the kiln is completed insulated with heavy duty fire bricks (Refectory bricks) . Which protects the metallic surface of the kiln from getting overheated. According to the temperature profile, the kiln is divided in to following three zones. ZONE TEMP.(Degree Cent.) Coohng Zone 850 to 950 Calcining Zone 940 to 980 Burning Zone 1350 to 1450 To heat up the kiln fine coal powder is injected though jet from the outlet side of kiln and this way material is converted into clinker coal is fed from coal yard into coal hopper by front end Loaders and then crushed in coal crushers. Which finally conveyed to coal mill? The coal power is then stored in coal bin. The coal powder of a prescribed particle size is extracted from bin by coal screw. This coal comes into burner pipe with primary air fan. Coal powder is burnt inside the kiln with flame zone nearer to outlet side. Burning Zone the hottest zone of the rotatory kiln where the temperature reaches up to 1450-degree centigrade. At this temperature, chemical reaction takes place. Reaction is Exothermic (releases heat when takes place ) so the liberation of heat occurs. Calcium Oxide rates with silica so the formation of Dicalcium Silicate takes place and finally Dicalcium Silicate racts again with Calcium Oxide to form Tricalcium silicate. Which is the final form of cement clinker. From the clinker yard. Clinker and Gypsum are fed into respective hoppers though E.O.I. crane. They are fed to the cement mill in prescribed proportion though electronic E.O.I. feeder and subsequently conveyed with the help of belt conveyer up to cement mill. Cement mill is the tube link structure which is loaded with balls of 11

different sizes as grinding media balls grinds the material into fine powder which is called “Cement from Cement mill the cement is stored with the help of Fluxo pump which is the pneumatic Pressure Pump cement is extracted from bottom of silo though Fluxo channels and conveyed to elevator by serew conveyer Elevator feeds this cement into packaging hopper though rotatory screen. Packers till 50 Kf. cement into Gunny / H.D.P.E. bags and these bags are coveyed to railway wagon and trucks by Rubber belt conveyer (RBC) and these bags are arranged in Wagons/ Trucks manually. CHAPTER -3 MARKETING DEPARTMENT 3.1 MARKETING DEPARTMENT SET-UP 12

3.2 SALES DEARTMENT SET-UP 3.3 DEPOTS OF DIFFERENT STATES 3.4 DESPATCH MODE MARKETING DEPARTMENT SET UP AND DISTRIBUTION NETWORK 3.1 MARKETING DEPARTMENT OF J.K. CEMENT: DIRECTOR VICE PRESIDENT (MKTG.) KANPUR H.O. D.G.M. & Sr.Manager Works At H.O. GUJRAT HARYANA DELHI MAHARASTRA RAJASTHAN MP UP PUNJAB ,J&k GM(MKTG.) REGN.MGR. SR.MGR. SR.MGR. (JAIPUR) (INDORE) (GAZABAD) (CHANDIGARH) RGN.MGR. (AGRA) (Fig-2) SALES DEPARTMENT SET UP AND DISTRIBUTION NETWORK 3.2 SALES DEPARTMENT NIMBAHERA PLANT: 13

V.P. (WORKS) AT NIMBAHERA PLANT G.M.(WORKS) D.G.M.(MKTG.) Sr.Manager (MKTG.) MANAGER (MKTG.) Dy.Manager (MKTG.) ASST.MANAGER (MKTG.) SR.OFFICER (MKTG.) OFFICER (MKTG.) OTHER STAFF MEMBERS (Fig-3) DEPOTS 3.3 DIFFERENT DEPOTS OF DIFFERENT STATES: 1. Gujrat: Three Depots 14

- Ahemedabad - Baroda - Himmatnagar 2- Rajasthan : In Rajasthan there are four Transit offices which are not actually depots . The cement is generally sent to these offices as and when it is convenient. These are the storage places. - Balabala (Jaipur) Ajmer - Chanderia (Chittorgarh) Alwar - J.S.Raod (Jaipur) Bhilwara - Kishangarh Udaipur - Bikaner Kota 3- Punjab , J&K : Six depots (all are in Punjab there was a depot in jammu but it was shut down before some time). - Bhatinda - Chandigarh - Jalandhar - Ludhiana - Mohali - Patiala 4- Haryana – Eleven depots - Ambala -Karnal - Bhiwani - Rewari - Faridabad - Rohtak - Gurgaon - Sirsa - Hissar - Sonipat - Jind 5- U.P. : Four depots - Agra - Gaziabad - Mathura - Meerut 15

6- Delhi : One depot only - New Delhi 7- M.P. : Two depots - Indore - Neemuch 8- Maharashtra : One depot only - Mumbai TRANSPORTATION 3.3 MODES OF DESPATCH There are mainly two modes of transportation are available. One is Railways and another is Roadways. A) BY RAILWAYS:- 1- By M.G. Wogons: 4 Wheelers – Capacity is 377 bags per wagon 8 Wheelers- Capacity is 746 bags per wagon 2- By B.G. Wagons: In CRT wagons – Capacity is 550 bags per wagon In BCX & BCN wagons Capacity is 1100 Bags per wagon 3- By Containers: Generally there are two contains in one wagon with each having capacity of 550 bags. B) BY ROADWAYS:- Trucks are the only transportation medium on roads. Some trucks are dedicated trucks. Means the truck owner is totally dedicated to the company and his truck 16

carries the cement as per company’s convenience as and when required. We can assume these trucks as company owned. There are approximately 40 trucks of these types. The capacity of a truck is 180-740 bags for different types of trucks big or small. The process of dispatching in the case of trucks begins when a Dispatch instruction (DI) is given by the sales & Marketing department . According to order received. to the truck transporter and he takes it in to the packaging department where instructed quantity is handed over to the truck. Foe dispatching the goods by Railways. Sales department also prepares a DI according to which packaging department loads the goods into railway wagon and a Railway receipts ( RR) is given to packaging department by railway office which it sends to sales department. RR shows the detail what quantity railway has taken from the company. • Excises duty 408 Rs. per ton of Cement • Sales Tax 19% inclusive service Tax CHAPTER -4 INDUSTRY & MARKET SCENARIO 4.1 NATIONAL PERSPECTIVE 17

4.2 DEMAND AND SUPPLY PATTERN 4.3 PRESENT SCENARIO OF J.K. CEMENT IN BIKANER 4.3.1. PRESENT BUSINESS DETAILS 4.3.2 LAST FIVE YEAR BUSINESS DETAIL 4.3.3 ZONE WISE DESPATCH PLAN CHAPTER -4 INDUSTRY & MARKET SCENARIO 4.1 NATIONAL PERSPECTIVE Cement industry in India has grown steadily science independence. The growth in the industry has followed the pattern of economic growth. i.e. moderate to low growth during the fifties. the sixties & the seventies and high growth during the eighties and nineties. Diagram -1 depicts the movement of cement production alongside the movement of national income during the last twenty-three years. 18

Since the decontrol of cement. the industry shows the typical symptoms of “free market conditions. where producers build capacities ahead of demand in the expectation of netting the demand explosion. 4.2 DEMAND AND SUPPLY PATTERN In the cement industry demand is represented by actual consumption hence these two terms are used interchangeably. Cement consumption growth in the country, over the last decade has exhibited a strong correlation to the GDP growth with an elasticity of approximately 1.37 times. i.e. a growth of 1% in the GDP correlates to a growth of 1.37% in cement consumption. The future growth in cement is calculated based on assumption of the expected GDP growth rate. This methodology however does not take into account. The impact of any unforeseen event like earthquakes or cyclones on cement demand. The following table depicting the GDP growth rates foe future years. The effective growth rates also takes into account the mini cement plant dispatches. which are assumed not to grow. (Table -2 ) Year GDP Cement Dispatches Dispatches Total Effective growth Consumption large mini plants Consump- growth rate growth plants (Mio t) tion rate (%) (%) rate (%) (Mio t) (Mio t) 2001-2002 5.0 6.0 95.6 6.1 148 5.9 2002-2003 6.0 7.5 102.77 6.1 137 6.8 2003-2004 6.0 8.2 111.20 6.1 126 7.3 2004-2005 6.0 8.2 120.31 6.1 117 7.7 2005-2006 6.2 8.5 130.54 6.1 109 8.7 2006-2007 6.2 8.5 141.60 6.1 148 8.0 19

Production projections are based on the estimated maximum achievable production of existing and expected plants in the future year. Estimates of future capacity additions are based on media announcements regarding the future plans of cement players. The future outlook of the Indian cement industry is depicted in the following graph. The graph provides a comparison between national demand and the production for the next six years. Graph -1 20

DEMAND V/S PRODUCTION 160 140 120 100 MIO TONNES 80 DEMAND 60 PROD. 40 20 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 DEMAND 102 108 117 126 137 148 PROD. 109 120 132 139 143 146 YEAR Hence from the above comparison total demand will exceed the total production if no capacity. other than already announced is added. 4.3 PRESENT SCENARIO OF J.K. CEMENT STATUS IN BIKANER , 2005 4.3.1 PRESENT BUSINESS DETAILS: Market potential 60,000 MTN/annum Annual demand 2,80,000 TN/ annum Market Share 12% Price of cement 210-230 per bag 4.4 LAST FIVE YEAR BUSINESS DETAIL OF J.K. CEMENT 21

(Table – 3) YEAR PRICE DEMAND FRT.RATE DISCOUNT PER BAG TN/ANNUM RS./TN PER TN. (Rs.) (RS.) 2000-01 124 640000 348 150 2001-02 129 640000 366 160 2002-03 120 750000 360 175 2003-04 124 835000 390 160 2004-05 140 860000 380 180 2005-2006 165 120000 410 200 The pictorial view is given below: Graph 2 & 3 Graph-2 400 350 300 250 VALUES IN Rs. 200 PRICE 150 FRT. DISCOUNT 100 50 0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 PRICE 124 129 120 124 140 162 FRT. 348 366 360 390 380 395 DISCOUNT 150 160 175 160 180 185 YEAR 22

Graph-3 1000 900 800 700 600 TN./ANNUM 500 DEMAND 400 300 200 100 0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 DEMAND 640 640 750 835 860 920 YEAR 4.3.3 IN RAJASTHAN ZONE WISE DESPATCH PLAN WITH RETENTION FOR THE MONTH JULY -05 (Table – 4) ZONE QTY. AVG.RATE AVG.FRT AVG. AVG. DEMAND PER BAG PER BAG DISCOUNT RETENTION (MT) RS. RS. PER BAG RS. RS. SOUTH 15000 141 10.5 8 1501 CENTRAL 12000 143 20.5 8 1373 WEST 13000 143 19 8 1398 EAST 11400 145 26 8 1314 NORTH 9000 148 28 8 1331 TOTAL 60400 143.65 19.93 8 1393 Graph -4 23

DEMAND(IN 00,S) IN DIFFERENT ZONES IN RAJASTHAN NORTH, 90, 15% SOUTH, 150, 24% EAST, 114, 19% SOUTH CENTRAL WEST EAST NORTH CENTRAL, 120, 20% WEST, 130, 22% 24

CHAPTER -5 RESEARCH METHODOLOTY 5.1 THE RESEARCH OBJECTIVES ARE : 1. To find out the brand performance of J.K. Cement in the market. 2. To find out the problems of dealers and retailers in business with this brand/Company 3. To find out the scope of expansion of business by providing more new dealership. 5.2 ADOPTED RESEARCH METHODOLOGY AS FOLLOWS: Sample size Dealers -3 Retailers – 37 Contractors-10 Total – 50 Sampling unit Bikaner Sampling Procedure Judgment sampling Research design Exploratory Data collection method Survey Date source Primary data Research instrument Questionnaire Type of questionnaire Structured Type of questions Close and open ended Area covered Dealers Retailers and Contractors 25

CHAPTER -6 SWOT ANALYSIS S-STRENGTHS  -J.K.Cement possess good brand image in the existing market which is definitely a part of pavement brick for it.  Location has always been an important factor. in Rajasthan extensive (about 2500 MT) of cement grade limestone available.  Older plant and has a well known brand name in market.  Good plant having 10,000 tons per day production capacity. W-WEAKNESSES  -Low sales as compared to market potential. The market potential of the Bikaner market is high but as compared to it the stake of J.K. Cement is low.  -Lack of self enthusiasm in the working pattern of the executives as a result the aggressiveness towards sales is low.  High complaints of quality deterioration in J.K. super brand.  Less advertisement and negligible sales promotion schemes as compared to other brands.  Monopoly of dealers is affecting the sales. O-OPPORTUNITIES 26

 -Exposure of quality. which is already good but not displayed in market.  -More advertisement.  Competitive prices.  Making good dealers and penetrate the market up to retailer level.  May increase the discount and margin structure for retailers and dealers. T-THREATS  -Some dealers are available at present which were not reputed / efficient.  -Other companies advertising policy.  -Price fluctuation and price war which is a general phenomenon in this cement industry.  -Quick availability/ Supply of cement of other cement industries are creating threat for J.K. cement. CHAPTER -7 27

FINDINGS AT A GLANCE - Good brand image of J.K.Cement in existing market. - Low sales as compared to market potential. which is around 12% of the total Bikaner market. - Vikram, Binani,& Ambuja have maximum market shares viz. 15% ,14%,14%, respectively. - Price of J.K.Cement is very high ( approx.4-5 Rs. per bag) with respect to other companies. - Transit time is higher from depot to stockiest’s to warehouse as compared to other major cement companies. - Lack of sales aggressiveness. - Pricing policy of company is not stable. It change very frequently and without any prior information. Due to this customer are switching over to other brands. - there is a big problem of loading of goods. customer has to wait for a long time for loading. - Company neglects the semi dealers/retailers and has no certain policies for them. Company has attention only on dealers. - Profit margin given by company is less and no any promotional schemes for retailers and semi dealers. - Less advertisement of the product as compared to other company - Quality deterioration complaints in J.K. Super cement. -High black particles found which are insoluble in water. - Setting time is higher than other cement of same category. - Lack of self-enthusiasm is working patterns of executives. - Improper communication between executives and dealers & other parties. - No facility for removal of complaints from the side of dealers/ retailers on time. - There is a need of a depot at Bikaner for timely delivery. - There is a complaint from the side of retailers is that dealers deal customer directly and sell cement on lower price. Due to this customer does not go to retailer and purchase from dealer. Thus retailers are not interested to keep stock of 28

J.K.Cement. They are switching over to other brands. It may have a big impact on the sale of J.K.Cement. - 80% retailers are not happy with their business as they are getting low or negligible margin and facing intense competition. Dealers are happy with their business (Only I dealer Friend’s cement suppliers fell that his business is not successful). Survey made clear that dealers have their monopoly over market and retailers are suffering. CHAPTER-8 SUGGESTIONS 29

 A company would be wise to measure customer satisfaction regularly the key to customer retention is customer satisfaction.  Company can increase the role of retailer by considering their suggestions or complaints about service or product so that necessary action can be taken.  Review meeting should be often held so that the working pattern of the executives can be checked and improved if needed.  Executives need to be more self-enthusiastic and aggressive towards sales, for these appraisals should be given to those executives who worked hard.  Company representatives should visit retailers and should make a long-term relationship with retailer so that they can push the product.  Since customers are value maximizes and their expectation to this brand is high, as the brand image shows their complaints should be attended immediately to make them remain brand loyal.  It should be checked that the non-trade consignment is not sold in the market so that it does not disturb the retail price of the market.  Since transportation forms the major part of the cement cost. Market potential of the region should be properly accessed so that emphasis can be more on high retention Zone. Which employing more authorized retailers can do.  Stockiest should be convinced to pass the incentives to the retailers so that they are motivated to promote this brand.  Company should increase the promotional and advertisement activities from giving the popularity to the product.  Company should set the policy on pricing. There should be a certain time period from increment and decrement in the pricing. Company should also give the prior information for this to dealers and retailers.  There should be proper loading facility in the plant and out side the plant. Delivery of goods should be on time.  Top management and executives should maintain proper communication with dealers and retailers.  Increase the number of dealers and retailers as this will help in making high sales volume.  Cash discount should be competitive and luring.  Try to remove dealer’s monopoly. 30

CHAPTER-9 LIM CHAPTER -9 LIMITATIONS 31

 The research conducted was limited to Bikaner city only.  Due to time constrains more time could not be devoted to individual respondent.  Due to unwillingness of providing any information, the respondents filled the questionnaire casually which might have effected the consolation.  Marketing manager being quite busy with his job. He was not able to spare enough time for our proper guidance.  A busy schedule of dealers/ retailers also makes the collation of information a very difficult one.  Full district was not covered, as this is very tedious job to be done in 7 days however almost all main areas of district were covered.  The projection is purely based on verbal meetings and may be influenced by unprecedented factors.  Non-co-operative behavior of respondent was a big problem in this survey.  White studying the report the above fact should be taken into consideration. ANNEXURE QUESTIONNAIRE-1 QUESTIONNAIRE-2 32

BIBLIGRAPHY ANNEXURE-1 QUESTIONNAIRE-1 Name of the dealer/retailer……………………………………………………………... Phone………………………Email ………………………………………………… Address………………………………………………………………………………… ……………………………………………………………………………………. Town …City………………………District………………………………………… 1- No of years in Cement trades: - ………………………………………………………………………………………… 2- Brands dealing in: S.No. Name Brand wise Brand wise Brand wise sales (Per prices (Per discount Month) Bag) Structure B1 B2 B3 B4 B5 3- Dealing with which company/dealer: Company ………………………………………………………………….. Dealer …………………………………………………………………….. 33

4- Are you regular customer of? Company Yes No Dealer: Yes No 5-If No (Kindly give the specific reason): High price High transportation cost Quality Other reason………………… 6- Your mode of payment (Please tick): - Cash - Credit - Both 7- Most demanded brand: ……………………………………………………………………………… 7(A) Why? ……………………………………………………………………………… ……………………………………………………………………………… 8. Market potential of demanded brand: ……………………………………………………………………………… 9. Which brand is more advertised? ……………………………………………………………………………… 10- Which type of advertising do you feel is the most effective? (Please tick) - Newspaper - Hoardings - Wall painting - T.V. Others 34

11- Your suggestions (Please tick): (Sequence of brands as per the above table ) B1 B2 B3 B4 B5 * Publicity High ……………………………………………………………… Moderate ……………………………………………………………… Low ……………………………………………………………… * Pricing High ……………………………………………………………… Reasonable ……………………………………………………………… Big margin ……………………………………………………………… * Product Quality Good ……………………………………………………………… Average ……………………………………………………………… Below average ………………………………………………………… * Packaging Good ……………………………………………………………… Average ……………………………………………………………… Belowaverage …………………………………………………………… * Availability - Easy ……………………………………………………………… Sometimes …………………………………………………………….. Hardly Available………………………………………. 12- For Multi brand seller: - Do you feel that your business is successful? (Please tick) 35

Yes No If “Yes” then which brand do you think helped most in your success? ……………………………………………………………… If “No” than way? ……………………………………………………………… ……………………………………………………………… 13- For mono brand Seller: Do you feel that your business is successful? (Please tick) Yes: No: If “No” then do you think that your present brand in which you are trading is responsible for that? (Please tick) Yes: No: If “Yes” which brand it is and why do you feel so? ……………………………………………………………… ……………………………………………………………… 14- “Yes” which brand it is and why do you feel so? 43 53 15- Why it is so? ……………………………………………………………… ……………………………………………………………… 16- Are you interested to take dealership of J.K.Cement? Yes No 17- If Yes/No please mention the reason. ……………………………………………………………… 36

……………………………………………………………… 18- General Problem faced by you in this trade: ……………………………………………………………… ……………………………………………………………… 19- Any comments on J.K.Cement (Sarvasktiman) ……………………………………………………………… ……………………………………………………………… Thanking You ANNEXURE-2 QUESTIONNAIRE-2 Pricing of cement according to consumers/contractor in Bikaner Name ……………………………..Occupation………………………………… Phone No………………………………………………………………………... Address……………………………………………………………………… ………………………………………………………………………. 1- Which brand of cement did you buy at present/last time?  J.K. (Sarvashaktiman)  Shree  Binani  Birla  Chetak  Vikram  Ambuja  Other……………………….. 2- Which brand you suggest to consumer and why? (For contractor) ……………………………………………………………… ……………………………………………………………… 37

3- Why did you choose that brand? ……………………………………………………………… ……………………………………………………………… 4- How do you rate the quality of chosen brand?  Very good  Good  Average  Fair  Poor 5- Who has suggested you for that brand? ………………………………………………………………………... ………………………………………………………………………... 6- From where you purchased? ………………………………………………………………………... ………………………………………………………………………... 7- Please give rating (Tick) to following according to your choice: - 8- Rating J.K. Chetak Vikram Shree Binani Birla Ambuja 1 2 3 4 5 6 7 8- Your comments regarding J.K.Cement: ………………………………………………………………………... ………………………………………………………………………... 38

Thanking You ANNEXURE-3 BIBLIOGRAPHY 39

Kothari C. R. ; Research Methodology; Second Edition; New Age International (p) Limited, publisher; 2004 , pp. (1-229). European Journal of Social Kotler, Philip, “Marketing Pearson Publishers, New Delhi. Magazines and Journals Business Today Business India India Today Journal of Organizational Behavior American Journal of Industrial Medicine Strategic Management Journal Psychology WWW.JKCEMENT.COM 40

“ Assessment of market performance of JK cement and designing strategies for enhancement”

by BHOMA RAM

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