"Acceptance of Birla Wall Care Putty in Retail Segment"


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This is the detailed project carried during my MBA (10 weeks) on the topic of "Birla Wall Care Putty in Retail Segment" by enduring practical study & research in the Company in the Year 2011 . (Thus, some of the details may have been changed).

The purpose of this upload is for "Students" carrying projects in Cement Industry to have an Overview of it.( I had some issue with "Uprooting the basics" thus sharing it for reference to get an basic understanding & working towards your projects")

This should be used for reference purpose only. Thus,having a basic understanding towards & make your projects accordingly. (Independently!!)

Thus, this report will not be available for downloads...

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"Acceptance of Birla Wall Care Putty in Retail Segment"

  1. 1. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 1 INDUSTRY PROFILE India is the world‘s second largest producer of cement. The Indian cement industry has outpaced the growth rates of other prominent industries in the country on the back of growing demand from the housing sector, increased activity in infrastructure development and exports recovery. Recent industry developments and government supportive policies are attracting global cement giants and industry developments and government supportive policies are attracting global cement giants and sparking off a spate of mergers and acquisitions to spur growth. Our report has found that the Indian cement industry sustained its growth rate even in the tough condition of economic slowdown. Cement production increased 10.8% year-on-year in 2009-10. Almost all cement majors expanded their installed capacity in the backdrop of government backed construction projects since these projects have created strong demand for cement in the country. Moreover, it is anticipated that industry players will continue to increase their annual cement output in coming years and the country‘s total cement production will grow at a CAGR of around 10.5% during 2010-11-2013-14. On the regional front, Northern Region (including Uttar Pradesh, Rajasthan, Madhya Pradesh and Haryana) is leading the country in terms of cement consumption. Sufficient raw material availability of and various incentives provided by state governments make this region lucrative for investments. A number of domestic and international cement companies are striving hard to establish their production base in this region. ―Indian Cement Industry Forecast to 2012‖ provides an extensive research & objective analysis of the cement industry in India. It thoroughly examines all prominent emerging trends and drivers fueling growth in the industry. The report highlights major segments like production, installed capacity, export, import, plant size & consumption to give clients valuable information of different aspects of cement industry. It also throws light on the regional on the regional cement demand-supply outlook to help clients understand the market dynamics and get an insight into the industry at micro level. Most importantly, the report has also given the industry forecast based on correlation of past drivers, challenges and opportunities for expansion. In this way, the report presents a complete and coherent analysis of the Indian cement industry and will prove decisive
  2. 2. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 2 for clients. For the purpose of report, only large plants have been considered in the total production and installed capacity of the cement industry. The report also gives forecast for various segments of the Indian cement industry based on feasible cement industry environment White Cement has registered growth in production and sale in India in the last few years. The White Cement sector has been growing at the rate of 11% per year. This has given the Indian cement industry a major boost. The production of White Cement requires exact standards and so it is a product which is used for specialized purposes. White Cement is produced at temperatures that hover around 1450- 1500 degrees Celsius. This temperature is more than what is required by the ordinary grey cement. As more energy is required during the manufacture of White Cement, it goes to make it more expensive than the ordinary grey cement. . The various raw materials required for the production of White Cement are: Limestone Sand Iron Ore Nickel Titanium Chromium Vanadium The major companies producing White Cement in India are: ACC J K Cement Gujarat Ambuja Cement Ltd. India Cement Ltd. Grasim Industries and Ultra Tech
  3. 3. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 3 The major countries where White Cement is exported from India are: UAE Australia South Africa Sri Lanka Doha- Qatar Bangladesh Nepal CEMENT INDUSTRY INCEPTION & SCENRIO INDUSTRY BACKGROUND Pre Independence The first endeavor to manufacture cement dates back to 1889 when a Calcutta based company endeavored to manufacture cement from Argillaceous (kankar). But the first endeavor to manufacture cement in an organized way commenced in Madras. South India Industries Limited began manufacture of Portland cement in 1904.But the effort did not succeed and the company had to halt production. Finally it was in 1914 that the first licensed cement manufacturing unit was set up by India Cement Company Ltd at Porbandar, Gujarat with an available capacity of 10,000 tons and production of 1000 installed. The First World War gave the impetus to the cement industry still in its initial stages. The following decade saw tremendous progress in terms of manufacturing units, installed capacity and production. This phase is also referred to as the Nascent Stage of Indian Cement Industry. Post Independence The growth rate of cement was slow around the period after independence due to various factors like low prices, slow growth in additional capacity and rising cost. The government intervened several times to boost the industry, by increasing prices and providing financial
  4. 4. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 4 incentives. But it had little impact on the industry. In 1956, the price and distribution control system was set up to ensure fair prices for both the manufacturers and consumers across the country and to reduce regional imbalances and reach self sufficiency. CURRENT SCENARIO The Indian cement industry is the second largest producer of quality cement. Indian Cement Industry is engaged in the production of several varieties of cement such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement, etc. They are produced strictly as per the Bureau of Indian Standards (BIS) specifications and their quality is comparable with the best in the wor ld. The Indian cement industry is the second largest in the world. It comprises of 140 large and more than 365 mini cement plants. The industry's capacity at the beginning of the year 2009- 10 was 217.80 million tonnes. During 2008-09, total cement consumption in India stood at 178 million tonnes while exports of cement and clinker amounted to around 3 million tonnes. The industry occupies an important place in the national economy because of its strong linkages to other sectors such as construction, transportation, coal and power. The cement industry is also one of the major contributors to the exchequer by way of indirect taxes. Cement production during April to January 2009-10 was 130.67 million tonnes as compared to 115.52 million tonnes during the same period for the year 2008-09. Dispatches were estimated at 129.97 million tonnes during April to January 2009 -10 whereas during the same period for the year 2008-09, it stood at 115.07 million tonnes. The major cost factor in the manufacture of white cement is power and fuel, which account for approximately 70 per cent of the variable cost and this industry is one of the hardest hit because of the rise in fuel prices which have sky-rocketed 115 per cent during the last two years
  5. 5. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 5 Growth in Cement Demand Table No 1.a: Table showing growth in cement demand YEAR TONNES GROWTH% 2006-07 122 6 2007-2008 134 6.5 2008-2009 164 12 2009-2010 176 12.5 Figures in Million Tonnes * Source: Cement Manufacturers Association (CMA), ICRA Research Key Drivers of Cement Industry  Buoyant real estate market  Increase in infrastructure spending  Various governmental programmes like National Rural Employment Guarantee  Low-cost housing in urban and rural areas under schemes like Jawaharlal Nehru  National Urban Renewal Mission (JNNURM) and Indira Aawas Yojana COMPANY PROFILE
  6. 6. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 6 2.1 BACKGROUND AND INCEPTION OF THE COMPANY: BIRLAWHITE is an small unit in Grasim Industries Limited .Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies, with consolidated net revenue of Rs.202 billion and a consolidated net profit of Rs.27.6 billion (FY2010). Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90 per cent of its revenues and operating profits. The Aditya Birla Group is the world‘s largest producer of VSF, commanding a 24 per cent global market share. Grasim, with an aggregate capacity of 333,975 Tonnes Per Annum(TPA) has a global market share of 11 per cent. It is also the second largest producer of caustic soda (which is used in the production of VSF) in India. In cement, Grasim along with its subsidiary UltraTech Cement Ltd. has a capacity of 49 million tpa and is a leading cement player in India. In July 2004, Grasim acquired a majority stake and management control in UltraTech Cement Limited. One of the largest of its kind in the cement sector, this acquisition catapulted the Aditya Birla Group to the top of the league in India. The cement business of the Group is being restructured in a phased manner. In the first phase, Grasim's cement business is being demerged into Samruddhi Cement Limited, a subsidiary of Grasim. In the second phase, Samruddhi Cement Limited will amalgamate with UltraTech. Upon completion of restructuring, the cement business will be consolidated in UltraTech, a pure play cement company. Grasim‘s cement operations today, together with that of UltraTech, span the length and breadth of India, with 11 composite plants, 11 split grinding units, five bulk terminals and 69 ready-mix concrete plants. All the plants are located close to sizeable limestone mines and are fully automated to ensure consistent quality. All units use state-of-the-art equipment and technology and are certified with ISO 9001 for quality systems and ISO 14001 for environment management systems.
  7. 7. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 7 Grasim is also the largest producer of white cement in India, with a capacity of 560,000 Tonnes Per Annum (TPA) as on 30 June 2009. Branded as "BirlaWhite", the white cement division manufactures world-class white cement in a variety of textures and finishes. It has applications in floorings and exterior wall finishes, apart from other innovative uses. The division also manufactures value added products like putty, GRC etc. which are used in wall finishing and various architectural applications Grasim was incorporated on 25 August 1947, just 10 days after India became independent, manufacturing textiles made from imported raw materials. It is now a global leader in viscose staple fibre (VSF), the country's largest merchant producer of sponge iron and the second-largest caustic soda maker in India; and poised to be India's largest cement manufacturer. . 2.2 NATURE OF THE BUSINESS CARRIED Birla White is India's largest white cement producer with a production capacity of over 550 thousand tonnes annually. Established in 1988 with an initial production capacity of 80 thousand tonnes, the company has indeed come a long way. Its manufacturing plant is today regarded as one of the most technologically-advanced white cement plants in the world. Driven by innovation and excellence, Birla White has consistently been improving its product quality through technological advancements. Significant efforts have also been made to diversify its product portfolio. Birla White today boasts of a product portfolio consisting of several surface finishing options. The company has a strong global presence in the developed European and fast- growing Asian markets. 2.3 VISION, MISSION AND QUALITY POLICY
  8. 8. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 8 Our Vision ―To be a Globally Benchmarked Organization in White Cement, through our value-added products with continued focus on Quality and Customer Delight, and to have revenue of Rs.3000 crores by FY 2015‖ Our Mission ―To deliver superior value to our customers, shareholders, employees and society at large with increased focus on living by our values.‖ Quality Policy (System) Birla White understands the importance of setting a high benchmark in quality, and more so, establishing systems to ensure adherence. Birla White is certified with ISO 9001 QMS system, ISO 140001, OHSAS 180001 and SA 8000. Its CEM I and CII grade of white cement are CE Certified confirming its suitability for export to European markets. Technology Birla White has always placed a strong emphasis on technological superiority to manufacturing products of unsurpassed quality. To this end, it has acquired technologies from world leaders in their domain. Like Vertical Roller Mills and Roller Presses, sourced from Pfeiffer and Koppern respectively, are used for raw material and cement grinding. Its manufacturing process is entirely automated and controlled by systems from ABB and Leeds & Northrup, USA. Distributed Control Systems & Fuzzy Control System for process control and XRF controlled QC systems are used to ensure superior quality. Birla White was the first to introduce sealed valve bags for Wallcare Putty packaging, using Roto Seal Packer with Ultrasonic System to curb adulteration. Eco Drive Birla White is a conscientious corporate citizen of this country. This has seen the company proactively adopt significant steps to protect and preserve the environment. It utilizes eco- friendly technologies to manufacture products, which have a minimum impact on the environment. Recognizing its green initiatives, Birla White has been awarded the prestigious IERS Level-5 and ISO 14002 Certification from DNV, Netherlands for the highest levels of environmental commitment.
  9. 9. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 9 2.4 PRODUCTS /SERVICE PROFILE 1) LEVELPLAST: Product Information Give your walls the distinction of a smooth and glossy finish with Birla White Levelplast. This water-resistant, white cement-based product is perfect for levelling concrete/mortar walls and ceilings especially when there are major undulations. It fills up the fine pores of concrete/mortar walls and ceilings to give a white, smooth and dry surface for painting. A superior substitute for POP and Gypsum, it possesses more adhesive strength and durability, while increasing the life of your paint. This ensures your walls look freshly painted, even after many years. Benefits  Superior Bonding: Birla White Levelplast bonds well with the grey-cement plastered surface, which makes sure the wall finish lasts as long as the grey cement plastered surface is intact.  Durable: It provides breathability to walls by allowing the entrapped moisture to evaporate and makes the wall finish highly durable.  User-friendly: Levelplast gives you the convenience of drilling/cutting on the surface even after the application.. 2) GRC (Glass Re-inforced Cement) Product Information Birla White GRC opens up a whole new world of possibilities for modern architecture. It's a versatile and lightweight mouldable finishing material that's perfect for decorative elevations. It's made from Birla White Cement, high-silica sand, alkali-resistant glass fibres and other mixtures. Naturally occurring oxide pigments can be added to give it the desired shade of colour. It is one of the most versatile building materials available to architects and engineers. This makes it the preferred choice for a wide range of designer applications. Benefits  Flexibility: Birla White GRC's superior strength gives you the freedom to have greater length of elements, reduced number of supports and thin sections. It further helps you in
  10. 10. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 10 achieving greater flexibility in design. It is primarily used for making non-structural, aesthetic-cum-functional elements like columns, capitals, arches, domes, screens, cornices, planters, acoustic barrier panels, statues, domes and façade e  Durability: Birla White GRC is reinforced with alkali-resistant glass fibres, which minimizes shrinkage and cracking. It boasts of high density and low porosity, which arrests leakages and seepages. It can even withstand harsh weather conditions, making it highly durable.  Safety: Made with glass fibre, Birla White GRC has a tendency to bend but not crack, which makes it an ideal building material in earthquake prone areas. Its light weight, fire-resistant and non-combustible properties make sure every structure is a safe to inhabit. 3) KOOL-N-SEAL Product Information Bring home one of the most advanced technologies in construction - Birla White Kool-n-Seal. It is a revolutionary coating material, which outperforms every other traditional option. When applied on the roof or exterior walls, its unique formulation cools the building interiors, reducing the need for air conditioning and cutting your electricity bills. In addition, Kool-n-Seal also seals minor cracks in the surface and helps arrest seepage. Unlike other coating materials, it can be easily applied in the form of slurry with a brush. That's why, it is ideal for roofs, terraces, water tanks, cracks in parapet walls and water pipes. Benefits  Protection from heat: Kool-n-Seal is a superior UV resistant coating, which when applied on the flat-roof surface, reflects the heat and reduces the indoor temperature by 4-5 centigrade. When applied on water tanks, it prevents excessive heating of water during summers.  Protection from water-related damages: Kool-n-Seal reflects the heat incident on the roof, thus preventing the occurrence of cracks due to expansion. This ensures enhanced durability of the roof surface and RCC slab.
  11. 11. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 11  Best value for your money: Kool-n-Seal brings you two strong benefits in a single product and that too, at a reasonable price. 4) TEXTURA Product Information Birla White Textura, manufactured using state-of-the-art technology, offers a variety of exquisite textures for your walls.Birla White Textura also offers protection for your walls from weathering. It's more economical as compared to acrylic based finish, as there's no need to apply primer. Birla White Textura is available in two varieties - Spray Roller Finish (RF), which is ideal for interiors, and Trowel Finish (TF), which is best-suited for external walls. Benefits  Highly durable textured wall finish Being white cement based, Birla White Textura is highly compatible with plastered/concrete wall surfaces. After application, it becomes a part of the wall plaster, and this strong bonding makes it all the more durable as compared to acrylic textures. It is also highly UV resistant as compared to acrylic textures, which makes it resistant to cracks and flaking.  Flexibility to use any paint on the texture Without scrapping the textured coat, any kind of decorative wall paint can be applied over it.  Provides the best value for money Birla White Textura gives you a host of benefits at a very competitive price. When it comes to decorative wall finishing, it offers you the best value for your money. 5) WALL-CARE PUTTY Product Information The elegant décor of your home can easily be marred by the eyesore of flaking, ruining even
  12. 12. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 12 the expensive coat of paint on your walls. Birla White Wallcare Putty offers you total protection against flaking. Its superior quality makes it the only putty in India to meet global standards (HDB, Singapore). As a white cement-based putty, it binds strongly with the base plaster, even if the surface is damp, and forms a protective base.. Benefits  Protection to Expensive Paints Birla White Wallcare Putty becomes a part of the wall plaster when applied on the wall. Its water-resistant property ensures that the paint doesn't flake off even if the walls are damp, ensuring a long life for your expensive paints.  Getting a proper line and level surface Birla White Wallcare Putty Coarse (Matt Finish - MF) fills up the minor cracks/crevices in the plastered wall and provides an even leveled surface. To make the surface absolutely smooth Finish - SF is recommended over the coarse coat. When the paint is applied on such a leveled wall, the results are obviously stunning. It also brings out the true tone/shade of the paint as it's made of white cement.  Best value for money Birla White Wallcare Putty doesn't need a paint primer for paint application, which makes it highly economical as compared to conventional putty, POP and acrylic putty. What's more, it reduces paint consumption by 25-30% being smooth, durable and less absorbent as compared to conventional options. WHITE CEMENT Product Information Birla White Cement takes artistic expression in architectural design to the next level. A product of the most advanced technologies and manufacturing processes, it offers a pristine white canvas for crafting architectural elegance. Its exceedingly high refractive index and high opacity imparts brilliant lustre and a smooth finish to surfaces, even when blended with pigments. 2.5 AREA OF OPERATION: Birla-White is the premiere brand of Grasim industries which has its operations across the
  13. 13. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 13 globe. It manufactures its products in Rajastan.It has its marketing offices within the country(India) in the following places: Mumbai, Pune, Delhi, Nagpur, Ahmedabad, Gurgaon, Chandigarh, Bangalore, Chennai, Hyderabad, Kolkata, Agra, Cochin, Jaipur, Jodhpur, Indore, Patna, Bhubaneswar etc Birla white is also exports its products to many countries such as: UAE, Bangladesh, Nepal, Srilanka, Spain, Australia, Mauritius, Philippines, Singapore, Bahrain, Oman, Qatar, Kenya, Tanzania, Nigeria, South Africa, Ethiopia, Germany & USA 2.6 OWNERSHIP PATTERN : Table 2.a: The Ownership Pattern of shares of the Company *SOURCE: GRASIM INDUSTRIES FY WEB SOURCE 2.7 COMPETETORS INFORMATION FOR WALL CARE PUTTY THE MAIN COMPETITORS ARE (BIRLA WALL CARE
  14. 14. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 14 PUTTY has an market share of 40%.. (others 6%) Table 2.b: Table showing information regarding the competitors COMPETITORS % OF MARKET SHARE J.K WHITE 15% UNBRANDED PUTTY(CHALK/LIME STONE) 25% ASIANPAINTS 10% BURGER PAINTS 4% FOR BIRLA WHITE CEMENT(65% MARKET SHARE) there is only one main competitor than is J.K WHITE(20% MARKET SHARE) In total for all the brands in general the top 10 competitors present are J.K WHITE ASIAN PAINTS BURGER PAINTS WALL PLAST NIPPON BOSCO FINE WALL FINE COAT ALTEK SAINT-GLOBIN 2.8 INFRASTRUCTURE FACILITIES
  15. 15. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 15 Birla White in its factory will provide following Infrastructure facilities. They are: Safety equipments for proper working Dressing room Cold water Canteen Medical benefits 2.9 ACHEIVEMENTS/MILESTONES 2009 :: Grasim hives off its sponge iron business by way of slump sale :: Grasim commissions a green field cement plant at Kotputli (Rajasthan). :: Vikram Cement and Aditya Cement wins the Federation of Indian Mineral and Industries' "Social Awareness Award for the year 2008-09". :: Grasim's plants Vikram Cement (Khor, Madhya Pradesh) and Aditya Cement (Sambhupura, Rajasthan), have won the TERI (The Energy and Resources Institute) CSR Award for their sterling work in 37 villages among 12,550 families in the area of healthcare. 2008 :: Grasim commissions brownfield expansion at Aditya Cement at Shambhupura (Rajasthan). 2007 :: Grasim divests Shree Digvijay Cement Company Limited. :: Textile units at Bhiwani transferred to a subsidiary, Grasim Bhiwani Textiles Limited. :: Eighteen ready-mix concrete plants commissioned. Awards and Recognitions
  16. 16. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 16  IMC-Ramakrishna Bajaj National Quality Award under the category of Outstanding Achievements Trophy 2009 for Business  Golden Peacock Corporate Social Responsibility (CSR) Award 2009  National Energy Conservation Awards 2009 in the category of Certificate of Merit in the Cement Sector  The Economic Times and Frost and Sullivan IMEA Platinum Award 2009 in Process category  Brand Leadership Award, a symbol of Excellence and Brand Leadership  Best Employer Excellence Award from Employer Association of Rajasthan 2008  Conferred Consumer Super brand status by the Super brand Council of India 2.10 WORK FLOW MODEL This chart shows the flow of work or different phrases through which the products reaches the final consumer/user . Fig.2.A. Work flow of the organization in an systematic manner ANALYSIS OF THE COMPANY IN THE MCKINSEY’S 7S FRAME-WORK Factory facility x-depot Stockist Industrial/Business user Retailer/Dealer Final user/Consumer
  17. 17. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 17 MC Kinsey & company a leading International consultancy firm developed an approach towards, the analysis of the company‘s performance. Model developed by McKinsey is called as the ‗7-S model‘, which is directed towards finding out whether the company is directed by Value Bases Management. According to 7-S model of Mckinsey a proper Value Based Management is one where by the company‘s overall aspirations analytical techniques & management process are aligned to help the company maximize its value by focusing decision making on key drivers of value. The values of the company may be: a) Financial goals like profit maximization, or the shareholders wealth maximization. These financial goals, generally guide the senior management of the company. b) Non-financial goals like that of product innovation, customer satisfaction & quality improvements are meant to motivate the entire organization. The 7S model have classified with an diagram:- Fig.3.1: McKinsey 7’S Framework Model a) STRUCTURE: How people & tasks/work are organized. The way the organization‘s units relate to each other centralized, ,functional divisions (top-down): decentralized (the trend in larger organizations):matrix network holding etc
  18. 18. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 18 ORGANISATIONAL STRUCTURE OF BIRLAWHITE Fig.3.2: Organisational structure of the company GROUP HEAD:
  19. 19. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 19 The Group Head is the supreme decision maker of the Entire Unit. All the strategic decisions would be passed only after his/her approval. There will be one Group head for the entire organization (Grasim industries) UNIT HEAD: Unit Head is the supreme decision making authority of the entire unit. He will report to the group head. There will be one Unit Head for every segment or unit. CHIEF EXECUTIVE OFFICER: The CEO is the Head of Operations for the entire Unit & will look out the operations & reports to the unit head. There will one per unit FUNCTIONAL HEAD: The Functional Head is the in-charge of the entire function. There will be one functional head per function (Marketing, Production, Human Resource and Production) ZONE HEAD: The Zone Head will be the head of operations of the entire zone. (South, East, West, North) & will be reporting to the functional head (eg: Marketing) VICE-PRESIDENT: The Vice President makes the decisions after taking the approval from Zone Head & co- ordinates the operations of the unit. He assigns tasks to officers as well as makes operational decisions ( retail sales as well as projects) . OFFICERS: The officers carry out the operations assigned to them, meet market requirements & analyze market conditions & assign sales territories & targets to Sales Representatives There will be 8 officers (both projects/retail) who will operate as per the territories assigned to them by the VP. SALES REPRESENTATIVES (OFF-ROLL) : They operate the functions as assigned to them by the officers. The visit retail stores & its their responsibility to co-ordinate information of concern to officers of any problems or requirement. Each sales representative would be assigned with territories to operate. There are 8 Sales Representatives
  20. 20. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 20 b) STRATEGY: A set of actions that you start with & must maintain. Plans for the allocations of firm‘s scarce resources, over time, to reach identified goals towards the Environment, competition, customers etc. Future plans of Birla White towards the future as follows:  The Production & sales target is 1000MT for the FY 2010-11 which would later would be for FY 2015 to 3000MT  To add new Value Added services such as to send all the stockists & managers concerned to the area with simply way of SMS about the states of sales in their territory  To increase the export from present 5% to 20%  Adding up an one more production unit in M.P which will start its operations within FY 2014 c) SYSTEMS: It is the formal & the informal procedure that supports the stratergy & the structure & to a greater extent governs the day-to-day working of the organization. The system could also be called the set of internal information system that enables the smooth functioning of the system. The systems operate as the eyes & ears of the organization & enable the organization to: 1) Take the decisions 2) Evaluate the performance of the Organization 3) Evaluate the internal working of the organization 4) It enables the organization to set right the deviations that occur in the working of die organization. Components of the system (existing in the Birla White):
  21. 21. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 21 1) SPARSH: It is an web controlled system which provides an unique i.d & password which helps any employee of the organization to track any information which includes sales targets, retailer present schemes, stockiest schemes, non-trade information in one site. This is a system which is used to communicate corporate information‘s, decisions of the company etc 2) ACCUMEN: This is an website which provides or creates & motivates teamwork, motivation, encouragement purely done to motivate or encourage employees towards organizational-individual goals. This sends emails to the employees about motivational stories about successful people & many other subjects thus to encourage participation & learning. 3) SMS SYSTEM: This is an unique system which is yet to be fully introduced which saves energy & time for the managers & officers. It provides weekly information‘s about the sales carried out in their areas v/s their targets to achieve thus help them to act & respond based on the information 4) STAFF: The Company‘s people resource how they are developed, trained & motivated. The staff aspect of the 7s model mainly represents the people/human resource management process used to develop the managers, socialization process ways of shaping the basic values. The staff aspect of the Birla White can be studied in the following respects: 1) The human resource in the organization 2) The performance appraisal 3) The training & development followed 1) THE HUMAN RESOURCE IN THE ORGANISTION There are total of 24 employees working in the organization, they are divided as: CADRE POSTS VICE-PRESIDENT 1
  22. 22. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 22 DEPUTY SR.MANAGER(STATE) 1 SR.OFFICERS 4 OFFICERS 4+2(UP-COUNTRY) ACCOUNTS 3 PROECTS IN-CHARGE 1 SALES REPRESENTATIVES(OFF ROLL) 8+ 6(UP-COUNTRY Table 3.a: Table representing number of employees in the organization 2) THE PERFORMANCE APPRAISAL : There is a system of regular appraisal in the company. For every six months. There will be the performance appraisal in the company under certain rating systems through which the ratings of the performance of the employee by the Vice-President. According to these performance appraisal reports are prepared by the branch & sent to the regd. Office on an half yearly basis. Contents of performance appraisal: a) It contains the details with regards to the job related knowledge b) The performance appraisal sheets are not only based on the departments work, but are related to all the departments. Uses of this Performance Appraisal: a) It enables the company to decide weather the probation period for the new employee has to be increased or not b) It acts as the basis for taking the decisions with regards to the training & other workshops to be conducted or not c) It enables the company to take stock of their employee‘s capabilities & which could influence in the promotions of the employees
  23. 23. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 23 5) SHARED VALUES: Guiding concepts fundamental ideas around which a business unit is built. These shared values are also called as super ordinate goals usually stated at the abstract level have a greater meaning inside the organization even though the outsiders may not see or understand them. 6) SKILL: Distinct Competencies what the company does best ways of expanding or shifting competencies.  It has been the fore front of innovations , bringing in the new products & bettering or upgrading the existing ones  The distinct competency is its product line which is novel, which is clearly evident as they occupy leading position in the Cement Industry with over 45% market share  The availability of well balanced networks across the country & globe which helps in proper as well as efficient delivery of goods ―always on time‖  The standard of production & quality have got the company with ISO 9000- 2000 Company  It uses an fuzzy logic system & x-ray analyzer from FLS, Denmark which ensures consistent quality 7) STYLE : The leadership approach of the company & the companies overall operating approach of the company. The leadership style in the company can be termed as participative leadership. This leadership approach of the company can be understood in three levels: A) Level one ---- The branch level B) Level two---- The registered office & between the branch C) Level three-- The registered office & the top manage A) Level one ---- The branch level:
  24. 24. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 24 In the branch level the following hierarchical arrangements are found:-  The senior Vice-President  The Sr. Officers  The Officers  The Sales Representatives  The secretarial assistant The main decisions are taken up in the following format: a) The senior Vice-President will take the opinions from the sr. officers as well other officers b) The officers at any point of time , can directly contact the sr. Vice-President & could discuss with regards to any of the decisions to be taken up & could give his opinion about it c) The participation of the employees in the decision-making is to the maximum B) Level two--- The registered office & between the branch : To a greater extent the recommendations made by the branches are being adopted while drafting the final sanctions. C ) Level three--- The registered office & the top-management: The regd. Office gives monthly feedback about the operations of the units & its performances. Any suggestions for statistical decisions are also sent & only after their approval it is been implemented. Any decisions which requires immediate actions are also discussed with the top management & appropriate measures are been taken The operating approach of the company can be termed as the bottom up as well as top down approach as the opinion of the employees are also taken into consideration, while taking the decision by the top management & it is accepted & are implemented with no deviation or any changes. The Top management decisions are given top most priority.
  25. 25. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 25 SUSTANIBILITY “As we grow so does our role in shaping the world around us”. Corporate sustainability stands for 'long-term viable business'. It is also conceptualised today as simultaneous creation of economic, environmental and social value. Social and environmental practices beyond compliance have been an integral part of Grasim's philosophy since its inception. These investments were undertaken with an innate sense of responsibility towards the well-being of society and environment. In recent years, with a view to cement these relationships, the initiatives have become more structured and have been seamlessly integrated in our business process. . SWOT ANALYSIS OF BIRLA-WHITE
  26. 26. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 26 STRENGTH’S: 1.Goodwill of the brand(Birla) 2.Effective product mix(white cement, wall care putty, textura etc) 3.Early-entry advantage compared to other competitors‘ 4.Well experienced & qualified work force or Human resource 5.Effective channels of distribution & network coverage 6.Higher market share 7.Increasing demand for branded products WEAKNESS: 1.Changing negative image on the minds of the retailers of the company 2.Inability to control some of the Stockist‘s (Distributors) activities 3Exiting of experienced employees from the company 4.Lower returns to the retailers thus reduced interest from the retailers 5.Increasing number of competitors in the market OPPORTUNITIES: 1. Increase in living standards of the people has created the demand for the products 2. Wide area available to cover up 3. Opportunities available in many other sectors prospecting to growth 4. Large-scale investments in Infrastructure & projects by both private & public sectors 5. Economic prosperity & economic development of the country 6. Availability of effective manpower to face the competitions 7. Branded consumption of the products are just 50%, thus giving road for ample opportunities for growth. THREATS:
  27. 27. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 27 1.Economic Risk: Due to opening of World trade markets & diminishing tariff‘s 2.Competitors Risk: Increasing number of competitors entering the markets(J.K cement, Asian paints) because of elimination of trade barriers & large corporate entering with inorganic growth strategies‘ Project Execution Risk: It is dependent upon land purchase, project management skills, timely delivery by the equipment suppliers & adherence to schedule by civic contractors—any delay will impact revenues & profits. 3.Human Resource risk: Exit of skilled & experienced employees to the competitors company‘s 4.Foreign exchange Risk: Fluctuating rates in foreign exchange makes the company versatile in making profits or incurring losses 5.Commodity price Risk: It is the biggest threat of all, the increase in prices of raw material‘s makes the production cost increase effects : competency, market share as well as profitability . ANALYSIS OF FINANCIAL STATEMENTS
  28. 28. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 28 Table No 5.1: Table representing Financial Statements 31-Mar- 10 %BT 31-Mar- 09 %BT 31-Mar- 08 %BT Equity Capital 916.80 0.98 916.70 0.57 916.70 0.65 Preference Capital 0.00 0.00 0.00 0.00 0.00 0.00 Share Capital 916.80 0.98 916.70 0.57 916.70 0.65 Reserves and Surplus 70441.60 75.60 93754.40 58.54 80441.20 56.97 Loan Funds 10376.20 11.14 33949.50 21.20 32018.70 22.68 Current Liabilities 3023.70 3.24 16869.30 10.53 16039.10 11.36 Provisions 5805.50 6.23 5908.80 3.69 5669.90 4.02 Current Liabilities and Provisions 8829.20 9.48 22778.10 14.22 21709.00 15.37 Total Liabilities and Stockholders Equity (BT) 93180.70 100.00 160147.10 100.00 141203.50 100.00 Tangible Assets Net 17842.20 19.15 70739.00 44.17 40084.00 28.39 Intangible Assets Net 18.40 0.02 143.80 0.09 151.10 0.11 Net Block 17860.60 19.17 70882.80 44.26 40235.10 28.49 Capital Work In Progress Net 429.80 0.46 12186.40 7.61 30263.10 21.43 Fixed Assets 18290.40 19.63 83077.70 51.88 70539.60 49.96 Investments 63247.90 67.88 46091.00 28.78 40807.90 28.90 Inventories 4172.40 4.48 13782.40 8.61 9784.40 6.93 Accounts Receivable 3450.10 3.70 5599.30 3.50 7119.80 5.04 Cash and Cash Equivalents 159.20 0.17 1133.80 0.71 1274.70 0.90 Other Current Assets 9.50 0.01 4.80 0.00 7.00 0.00 Current Assets 7791.20 8.36 20520.30 12.81 18185.90 12.88 Loans & Advances 3851.20 4.13 10458.10 6.53 11670.10 8.26 Miscellaneous Expenditure Other Assets 0.00 0.00 0.00 0.00 0.00 0.00 Total Assets (BT) 93180.70 100.00 160147.10 100.00 141203.50 100.00 RATIO ANALYSIS
  29. 29. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 29 Table No 5.2: Table showing Ratio Analysis As on 31-Mar-10 31-Mar-09 31-Mar-08 Return Related Return on Total Assets (%) 26.90 15.10 22.80 Return on Networth (%) 24.60 17.40 25.20 Return on Capital Employed (%) 30.70 19.40 36.00 Profitability Gross Margin (%) 46.50 40.90 46.20 Operating Margin (%) 27.70 19.00 26.40 Net Profit Margin (%) 25.60 15.10 21.60 Adjusted Net Profit Margin (%) 21.50 15.10 19.80 Asset Turnover(x) 0.70 0.80 1.00 Leverage Debt/Equity ratio (x) 0.10 0.40 0.40 Total Debt/Total Assets (x) 0.10 0.20 0.30 Long term Debt/Networth (x) 0.10 0.30 0.30 Interest Coverage (x) 21.70 17.80 28.70 Liquidity Current Ratio (x) 0.90 0.90 0.80 Quick Ratio (x) 1.20 0.40 0.50 Cash Ratio (x) 0.10 0.10 0.10 Working Capital Working Capital to Sales (x) 0.10 -- -- Working Capital Days (days gross sales) 19.60 11.00 6.70 Receivables (days gross sales) 14.20 16.80 22.30 Creditors (days cost of sales) 16.80 70.90 78.10 FG Inventory (days cost of sales) 2.40 8.70 14.20 RM Inventory (days consumption) 49.60 73.60 39.80 Cash Flow Indicator Operating Cash Flow/Sales (%) 24.70 18.00 20.30 Per Share Book Value Per Share (Rs) 778.10 1030.90 885.70 Earnings Per Share (Rs) 228.20 179.70 243.50 Dividend Per Share (Rs) 30.00 30.00 30.00
  30. 30. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 30 Growth(%) Total Operating Income -- 5.41 20.07 EBITDA -- -17.82 30.10 EBIT -- -23.94 33.04 Net Profit -- -26.19 45.37 Total Assets -- 14.96 22.38 Ratio analysis widely used tool of a financial analysis. It can be used to compare risk and the return relationship of firm of different sizes. It is a systematic use of ratio to interpret the financial statement so that the strength and weakness of a firm as well as its historical performance and current condition can be determined. Liquidity ratio: Current ratio: Current ratio measures the ability of the firm to meet its current obligation the ideal current ratio is 2:1. It indicates the liquidity position of the company. The company‘s current ratio is constant at 0.90 in current year to the previous year and increased from 0.80 from 2008. Quick ratio: Quick ratio expresses the relationship between quick assets and current liabilities the ideal quick ratio is 1:1. Company‘s quick ratio or acid ratio increased from 0.40 during the previous year to 1.20 in the current year. Cash ratio: This is constant from past three years at 0.10 Turnover ratio: Asset turnover ratio (total income/total Assets): Company asset turnover ratio has been decreased from 0.80 during the previous year to 0.70 in the current year. Sales turnover ratio: company‘s sales turnover ratio for the year 2009 was 18% and in 2010 is 24.70%. it has increased by 6.70 points. Profitability ratio:
  31. 31. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 31 Gross profit ratio (PBDIT/Total income): This ratio explains the relationship between the gross profit and net sales the gross profit in 2009 was 40.90% and in 2010 is 46.50% this shows that gross profit is increasing Net profit ratio( Net profit / total Income): This ratio explains the relationship between net profit and sales the net profit and sales the net profit ratio in 2009 was 15.10% and in 2010 is 25.60% this shows that the net profit is increasing. Earnings Per Share (EPS): The company‘s basic EPS has increased from 179.70 in 2009 to 228.20 in 2010. Dividend: The company has proposed a dividend of Rs 30.00 per equity share (constant from last three years 2010, 2009, 2008)
  32. 32. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 32 LEARNING EXPERIENCE IN BIRLA-WHITE The learning experience in Birla-White was an enduring, knowledgeful which helped me analyise the market, study the market & know the actual working in the organization Some of the factors of the experience are:  Helped me to understand the market from the marketers point of view  Interacted with retailers along with my external guide(Mr.mitchell) to know how the market is operating, how the sales carried out, problems arising in the market, entry of new competitors.  Gave me the exposure to analyze & to develop strategies to overcome the problems  Studied the importance of educating the retailers about the products to the retailers about the benefits they provide compared to that of the competitors as they are the one who interact with the final customers/consumers  Understood myself about the benefits or advantage of the different products from the customer point of view & its application Communicated with the stockist‘s deligated by the company who distribute the products to the retailers & there are 12 stockist‘s in the entire Bangalore(city& rural)  Stockist‘s are been provided the products at pre-decided price which includes their margin. Stockist‘s purchase the products by making cash payment immediately & they use their vehicles & labour(employees) to distribute the products to the retailers & provide credit facility at their own risk  In-depth study helped me understand that though company suggest an price which the stockiest should provide to all the retailers equally, but the stockiest provides the product based on the quantity purchased, mode of payment, place of the retailer(near/far) & than decides the prices thus there is dis-satisfaction of those retailers who pay more than their neighbor, thus helped me identify the problem
  33. 33. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 33  The products is also distributed to the projects directly when they make orders of large quantity & fulfillment of certain conditions: They should make orders for large quantities The Officer(for projects) of the company visits the place of project execution & verifies The buyer must provide his PAN no, Tax invoice & also should make the payment in advance He would be provided with the required on different packing system designed which would be printed (NOT FOR RE-SALE) He should compel with the company rules & should not attempt to re-sell, re- package or use it in other manner other than company specified ways The products will be brought to the go-down ,from where the buyer must make arrangements for transport to the project place  Received an opportunity to be an part to develop an marketing strategy ‗PINCODE ANALYSIS’ which helps the company in many ways: It helps the company to locate the retailer & the quantities purchased It helps the management to know how many retailers are been visited regularly It helps to maintain regular relationship with the retailers thus helps to improve, maintain as well as increase the market share & profitability The retailers are been divided into many categories(A+,A,B,C) based on the quantity purchased thus helps the company to know the capacity as well as strength of the retailers & also to know which retailers most important to the company As it is used based on the quantity purchased it helps management to analyze the reasons for under-performing of the other retailers & help the retailers to overcome the problems It mainly helps to continuous working of the organization & any employee/officer leaving the organization would not affect much to the company As the retailers are been categorized, helps the company to further design it into different sectors/territories & design different strategies to different sectors It also helps to analyze the competitors movement
  34. 34. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 34  Visited different projects with the Sales Representatives & officers of the company to know how the non-trade works  Smaller projects are been visited than an sample is provided about the product to the customers & shown practically the advantages of the product compared to the competitors products  As sample is provided about the products helps not only to increase sales but also increase goodwill & also possible Positive Word-of-mouth about the products  Make counter meet or set up counters in different places by the SR‘s (sales rep‘s) to make the customers know about the product, product information, benefits, application etc  Constantly conduct painters meet to educate. motivate the painters about the product as they play an important role who influences the final customer of what to be purchased  Constantly conducts retailers/dealers meet to educate them, provide them information & the benefits to the customers as well as benefits to the dealers in form of incentives/commission tradeoff‘s etc  As many builders/contractors are been traditionally using limestone/chalk powder after plastering, thus helped me make them understand practically the demerits of using the chalk powder & benefits of using white cement or wall care putty etc  Making the builders or the retailers understand though limestone/chalk powder is cheaper compared to birla products, but in the longer run the problem faced such as dampness, water leakages, ugly structures would be avoided & making them understand the importance of it  Made me aware of how to officially approach, how to communicate to different people differently, patience, importance of relationship building etc  To consistently develop different schemes to the retailers in order to maintain their interest & also make more sales (eg: one of the schemes is to sell minimum sell 300bags of wall-care putty or textura or above & get in addition other benefits 10rs/bag credited directly to the retailers account)  To not only understand constantly the performance of the company but also to know competitors information/moves/strategies/market share etc
  35. 35. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 35  Got the opportunity to participate in the Trade Exhibition conducted for 3days by the company thus gave me immense exposure to different customers(architects/builders/contractors),other related company‘s & their products  Thus learning in the company made me aware of the practical implication which is been studied theoretically thus gave me immense knowledge, experience the actual working of the market.  It helped me to relate my learning‘s to its practical applications.
  36. 36. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 36 GENERAL INTRODUCTION STATEMENT OF THE PROBLEM: In India, still major percentage of people who build or renovate their houses, offices or even commercial flats, residence apartments etc still use traditional methods of building it. During construction after the plaster is done, traditionally they apply chalk powder or lime wash & apply primer above which the paints are applied. Other problems are availability of cheap quality putty which provides low quality finish, as significant number of builders or customers are not aware about the technical information‘s and elements which benefits them. These cheaper( quality putty also known as conventional putty provides higher margins to retailers as well as provide attractive schemes to painters compared to branded products thus these try to move these products as much as possible to earn higher commission or profits. OBJECTIVES OF THE STUDY The present study is aimed at analyzing acceptance of Birla wall-care Putty in retail segment The specific objective of the study is the following: To study the acceptance of Birla wall-care Putty in retail segment: To study the awareness about the product among the retailers of the area of study To know if the retailers know the availability of stockist‘s in their area where they can purchase the product To study the problems in market causing non-acceptance if any To know if existing retailers have any concerns towards the quality, quantity, prices, packaging etc To know the product knowledge of the retailers To analyze the competitors‘ presence in the market and their market share To study about the competitive differences about the competitors‘ compared to the company products To study about the quantum of the company products movement in the market and places of improvement to increase the sales of our products
  37. 37. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 37 To study the area wherein the company has lesser competitive strength and to improve those areas to gain higher market share. RESEARCH DESIGN Research design is a framework or blueprint for conducting the research. It details the procedures necessary for obtaining the information needed to structure or in analyzing the data. A research design lays the foundation for conducting the project. METHODOLOGY OF STUDY The information‘s or data‘s collected in the study is from the source of primary data. Primary data: Primary data are the first hand source collected through conducting an sample survey using an questionnaire and interviewing the retailers in the retail market segment . The survey is conducted taking an sample of the entire area(Bangalore) of 225 retailers so as to attain maximum and accurate information as possible. All the questions were related to the Title of study and meeting the requirements of the objectives of the study Secondary Data: It was gathered with the help of published sources like Annual reports, Magazines, Journals, Books, Articles and Literature and websites LIMITATIONS OF THE STUDY: The study is been carried out with an sample size of 225 retailers thus information‘s collected cannot be fully accurate Response of the retailer may or may not be accurate as some information‘s were based on assumptions Study was limited to areas in Bangalore thus the interpretations would not be applicable on all the places As questions included certain financial or total sale information‘s as there would be bias cannot be known As the area of study is vast not all information‘s would be possible to collect thus there would be considerable amount of difference for final result.
  38. 38. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 38 SCOPE OF THE STUDY This project is an attempt to study the Acceptance of Birla wall-care putty in retail segment. As these are the quality substitutes for traditionally used lime-wash or chalk powder. This study mainly focuses to know the level of acceptance of the product, reasons for non-acceptance, competitor‘s market acceptance and their market share. The study is been carried out extensively in the Bangalore division (Rural &urban) by taking an sample of the entire area and sample is been chosen from all the parts to get most accurate information‘s. The study consists of the sample size of 225 retailers which includes those who consistently use the products, those who used to use but don‘t use now due to many reasons, those who never used as well as those where the company either was not able to reach them or there was not enough penetration. In the market by the company.
  39. 39. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 39 ANALYSIS & INTERPRTATION Analysis and interpretation of data Table No 2.1: Classification based on total consumption of putty Classification on the basis of total consumption of Acrylic based putty (Asian,Burger,Nerolac),cement based putty(JK.cement, Birla white),conventional based putty(Analyising total market size) CATEGORY NO. OF RETAILERS Below 3m tone 4-6m tone 7-10m tone Above 10m Acrylic based 28 62 61 74 Cement based 70 72 48 35 Conventional based 47 64 71 43 This clearly shows that though cement based putty is having higher strength and more benefits the Acrylic based putty is most demanded from the consumers or the retailers as acrylic based putty as those retailers who purchase more than 10m tone annum 32% of the purchases is acrylic based putty and second highest is conventional based putty which is 20% .Thus Birla
  40. 40. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 40 putty is dominant in cement based putty in overall its acrylic based putty manufacturers mainly Asian Paints and Berger playing the major role. Chart No 2.1: Classification based on total consumption of putty This is the comparison to show total putty market of the entire segment. Though in the cement based putty Birla is an no.1 brand in the acrylic based putty Asian Paints is the leading manufacturer. Apart from that the company also faces stiff competition from the local or conventional manufacturers as their materials are very low-priced and thus many who don‘t either differentiate the quality or bothered only about prices go for it. And these conventional putty manufacturers also provide higher commission to the retailers and painters these exploit the unaware customers and try to push these products as much as possible to earn higher commission. 0 10 20 30 40 50 60 70 80 NO. OF RETAILERS Below 3m tone NO. OF RETAILERS 4-6m tone NO. OF RETAILERS 7-10m tone NO. OF RETAILERS Above 10m
  41. 41. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 41 Table No 2.2: Comparison between Jk. cement v/s Birla White (cement based putty) BRAND/COMPANY NO OF RETAILERS PERCENTAGE J.K.CEMENT PUTTY 53 23.56 BIRLA WALL-CARE PUTTY 172 76.44 TOTAL 225 100 Chart No 2.2: Comparison between Jk. cement v/s Birla White(cement based putty) In the cement based putty division the company‘s major competitor is J.K cement. Presently though J.K cement has very little presence of about 23.5% of market share compared to birla white which has over 75% market share the company considers it would be an potential competitor and has taken adequate steps to face the competition effectively. 24% 76% No of Retailers J.K.CEMENT PUTTY BIRLA WALL-CARE PUTTY
  42. 42. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 42 Table No 2.3: Comparison based on customers/consumers demand for the Brand Do customers ask for Birla white wall care putty? YES NO NO.OF RETAILIERS 90 135 Chart No 2.3: Comparison based on customers/consumers demand for the Brand As the chart clearly mentions majority of the consumers who come to purchase the putty either don‘t ask for the Brand, or they ask the competitor‘s brand or are not aware about the product itself. Though Birla as an whole may have an very good image in the minds of the most of the people but chances are that consumers are not aware about the existence of the product, or are not knowing about the products attributes about the product or have an belief that its an expensive product. This images or knowledge is been well used by the retailers or the painters to move in those products which gives them higher margins. 0 20 40 60 80 100 120 140 YES NO Do customers ask for Birla white wall care putty? No. of Retailers NO.OF RETAILIERS
  43. 43. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 43 Table No 2.4: Comparison of major problems faced by retailers who uses Birla wall-care Putty COMMON PROBLEMS NO. OF RETAILERS Packaging 175 Timely Service 100 Gifts 122 Chart No 2.4: Comparison of major problems faced by retailers who uses Birla wall-care Putty NO. of Retailers Packaging Timely Service Gifts
  44. 44. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 44 The major problems faced by retailers are:- Packaging Timely service(Delivery of products) Gifts These problems are either jointly or any one problems faced by the retailers which is spreading negativity of not only the products but also about the company. As all the problems faced by the retailers are important but majority of the retailers face problems in packaging which the company has to look forward as these are elements which makes or breaks the intrests of the retailers. Apart from packaging timely delievery of the products is the 2nd most com-plained off.As these retailers sometimes loose major contracts when the delievry is been delayed. As the company doesn‘t sell the products directly and as it moves through the stockiest‘s controlling the distribution channels is difficult part faced by the company Gifts though sounds small it also plays an important role, as many retailers do complaint about gifts never given or hardly given. As cometitor‘s give consistantly and the company donot than there are room created towards cometitors products to the retailers.
  45. 45. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 45 Table No 2.5: Comparison of services of different Stockist’s Comparison of services of different stockist‘s appointed by the company to cater retail segment Stockist/service V.poor Poor Average Good V.good SHILPI SALES 04 07 15 33 30 BHIMA STEELS 02 03 10 27 46 C.R. TRADING 02 16 32 11 12 SURAJ ENTERPRISES 03 01 07 07 03 KARNATAKA CEMENT UDYOG 07 12 23 08 06 GUDUMARANHALLI TRADING CO. 05 03 11 04 10 Chart No 2.5: Comparison of services of different Stockist’s 0 5 10 15 20 25 30 35 40 45 50 Stockist Service V.poor Poor Average Good V.good
  46. 46. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 46 (NOTE: These are based on sample survey and each retailer on many occasions gets services of more than one stockiest, these are the views of the retailer point of view thus chances of biases are there) There are over 12 stockiests catering to entire Bangalore District (Rural as well as urban). Thus some of the services of the stockiest are good to those who provide ill services. Services include not only mere distribution of products, but also other factors such as: Timely delivery, frequent visits to the retails, Product related information‘s provided, Offering of correct prices to retailers, hearing to the problems related to packaging or other products related queries. Out of 12 stockiests the sample included 6 main stockiests market. Some stockiest‘s such as C.R. Trading Co or Bhima steel are well known for their quality of service. Though company gives suggested prices to be delivered because of competitions‘ in the market usually all stockiests under-cutting the prices thus there is less control on prices as this is the one of the main reason on the basis of retailers as many get at much discounted prices compared to others who get at high prices. Table No 2.6: Comparison of types of customers who buys from the Retail counter TYPE OF CONSUMERS NO. OF CONSUMER VISITS TO RETAIL Painting contractors 200 IHB 120 Civil engineers 125 Builders 70 (NOTE: As these are or could be individually or in any one or two combinations coming together, when those retailers suggested all than , all the categories are taken as 1 separately to each category )
  47. 47. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 47 Chart No 2.6: Comparison of types of customers who buys from the Retail counter As on the basis of comparision it is clear that at most times painting contractors play an keen role in making the purchases to the customers. Even when IHB (Individual Household ) customer goes for purchases than he takes along the painters or painting contractors for suggesstions while deciding upon any product. Thus the role of Painting contractors are significant as they assist directly or in-directly to over 90% of all the purchases or carry out the purchases directly. Even while engineers or builders on most occassions assign the purchasing of products to these painting contractors expect for those such as architects,engineers who know about the products, different types of products available etc or large builders. Builders constitute to roughly 25% who themselves or with painting contractors visit the retail outlet and many a times they would not be aware about the technical functions and will be mainly concerned with prices( small and medium scale builders). 0 50 100 150 200 250 Painting contractors IHB Civil engineers Builders No. Of Consumers Visits to Retail NO. OF CONSUMER VISITS TO RETAIL
  48. 48. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 48 These interpretations are very necessary to understand the purchasing patterns and to study the influencers to these purchases. This is an situation where retailers try to move conventional putty or other brands which gives higher commission to retailers and also higher commission or gifts to painters Table No 2.7: Comparision of effective methods of quality packing Comparision on the retailer point of view the most effective method of increasing quality of packing & Making it more convenient Weights/ methods 1kgbags 5kg bags 20kg bags 40kg bags Carry bag type of packing 200 200 75 00 Double coat packing 35 120 210 225 Improved quality of bag 00 00 220 210
  49. 49. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 49 Chart No 2.7: Comparision of effective methods of quality packing Study showed areas where the company has to improve:- 1Kg bags: Over 85% retailers suggested that the carry bags or carry handles to the bags should be provided. As nor it involves extra cost to the retailer, taking the reason that in 1kg bag the retailer just gets 2-3rs per bag and the other reasons are that it makes very dusty to carry to the customers. 15% of these retailers also suggested to have an double-coat packing as to ensure quality. 5Kg bags: Over 85% retailers suggested to have carry bags in these packaging also as there is consistent requirement for the same. 60% retailers also suggested that there must be double-coat packing as many times because of carrying it gets small cuts thus starts to leak out, thus many customers to purchase the same. It also ensures quality as double coat withstands smaller cuts or torns 1kgbags 5kg bags 20kg bags 40kg bags 200 200 75 0 35 120 210 225 0 0 220 210 Increasing the quality/making more convenient methods Carry bag type of packing Double coat packing Improved quality of bag
  50. 50. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 50 20Kg bags: Almost all the retailers over 95% ask for double coat packaging as many times it comes torn to the retailer or it creates dusty, thus doubts the customers to weight loss and asks for discounts for the same. These problems are on consistent basics. As IHB‘s also carry 20kg bags about 34% retailers ask for thinner cover outside the packaging for easy carrying of the bags. Over 97% retailers also complaint that the quality or type of packaging done is also very low quality and expects the company to make adequate changes as these will directly affect the image of the company and its brand value as competitors packaging are far better than ours(Birla). 40kg bags: All the 100% retailers have suggested for double coat packaging and over 95% retailers also feel that the packaging quality is very inferior which causes lots of losses to the company. Table No 2.8: Table showing awareness of retailers of tokens Comparison based on the awareness of retailers on availability of the token for painter‘s in Birla wall care Putty bags Availability in bags Yes No Don‘t know 1kg bags 27 178 20 5kg bags 182 40 03 20kg bags 146 75 04 40kg bags 36 156 33 Chart No 2.8: Chart showing awareness of retailers of tokens
  51. 51. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 51 In reality Painters tokens are available in two packings, they are:- 1) In 5kg bags there is an token of 10rs 2) In 20kg bags there is an token of 45rs How does an painter token look like? It is an picture taken in an retail shop of how the painters token looks like. It is one which is received in 20kg packing which has an face value of Rs. 45, 5kg tokens are available in similar shape but of yellow colour which bears the face value of Rs. 10 In 5kg packing about 80.8% of the retailers have said that they know that tokens are available where as 17.77% retailers say that they either have never seen tokens or nor any painters have given for redemption. Where as in 20kg packaging about 64% retailers have said they have seen tokens where as 33.33% retailers say that they have never come across tokens available. Chances are they 27 182 146 36 178 40 75 156 20 3 4 33 1kg bags 5kg bags 20kg bags 40kg bags Availibility of Painter Tokens In putty Bags Yes No Don’t know
  52. 52. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 52 get confused with either it is 20kg packs or 40 kg packing‘s or they don‘t use or sell those packing‘s. Overall majority of the retailers are aware about the availability of tokens in Putty bags. Table No 2.9: Table showing different effective promotion activities Comparisons based on different effective promotion activities that could be carried to increase the market share and to recognized or attracted towards the brand from the point of view of the retailers DIFFERENT PROMOTIONS NO. OF RETAILERS Painter training 170 Retailers scheme. 225 Retailers/Dealers meeting. 165 Advertisement. 122 Display contest 74 (NOTE: Retailers have given multiply choices as it was not on the basis of best out of it but on the point of view of them which all would be more effective ways of promotions which could be either any one of them or all of them or some of them left to the retailers to decide) Chart No 2.9: Table showing different effective promotion activities
  53. 53. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 53 Promotions act as an very important criteria for making the products mor vulnarable. It if properly promoted gives good returns to the company. As the company can use these promotions to attract the customers towards the product, create effective awareness, educate the potential customers or the retailers about the product, create an goodwill in the market etc. Over 77% of the retailers have suggested ‗Painters meet‘ as an important tool for promotions. As most of the purchases are directly or indirectly purchased by these painters, conducting an painters meet encouarages the painters and as many painters also are un-educated thus they do not understand the technical informations about the products. These painters meet gives an platform for the company to make the panters aware about the product, its features, methods of application etc Here in order to woe the painters the company also arranges lunch/dinner or entertainment and to attract informations such as painter‘s tokens informations, gifts to painters etc could be given. The Retailer Schemes are an effective means of increasing sales, all 100% retailers have shown it as an effective medium. As all retailers carry out retailing business for profits or returns this could encourage to make more sales to earn higher returns. Presently, the company has certain slabs ( Target sales) if the retailer reaches these slabs than the company apart from margins pays extra commission which varies from 8-10 rs per bag. Over 73% retailers agreed that when company orgainises dealers meet/Retailers meet they feel sa 170 225 165 122 74 Different Promotions NO. OF RETAILERS
  54. 54. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 54 satisfied and encourages them to make more sales. Dealers meet can be an effective tool of promotions as dealers can be shown product information‘s, retailers scheme etc and thus the goodwill of the company can be increased. Over 55% retailers felt that the company should carry out advertisements in either t.v channels, newspapers, Using of hoardings etc thus giving information‘s to final retailers about the product. As there is wide goodwill to the brand ‗Birla‘ thus this would create mass awareness as customers would prefer this products as they would trust the brand. This will indirectly helps to increase the sales , thus will create ‗Customer push‘ for the product, hence instead of just asking for putty they would probably ask specifically ‗Birla wall-care Putty‘. Over 33% rated Display contest would also be an effective promotional strategy. As customers when visits retail outlets and when they see the products it would encourage them to enquire about the products or even make purchase decisions. Table No 2.10: Comparisons based on product knowledge of the retailers ATTRIBUTES No. of Retailers It is water resistant 175 It is anti-fungus 100 It requires 7days of curing 54 It increases paint consumption 70 It reduces dampness 143 It is eco-friendly 200 Chart No 2.10: Comparisons based on product knowledge of the retailers
  55. 55. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 55 (NOTE: In the above not all are the attributes of the product some information‘s are been changed to check how the retailers respond to and what or how much of product information‘s they know) The attributes of the Birla putty which distinguishes from other putty are its unique attributes:- It is water Resistant It is anti-fungus It can be applied immediately after plastering It doesn‘t require curing It reduces paint consumption It reduces dampness It is eco-friendly It is water resistant It is anti-fungus It requires 7days of curing It increases paint consumption It reduces dampness It is eco-friendly 175 100 54 70 143 200 Attributes of Birla wallcare Putty No. of Retailers
  56. 56. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 56 Table No 2.11: Table showing acceptance of Birla wallcare Putty Comparison based on acceptance of Birla wall-care putty in rural markets (Both cement based as well as acrylic based putty) VARIOUS BRANDS AVAILABLE NO OF RETAILERS(out of 20retailers) Birla wall-care putty 03 J.K putty 01 Asian acrylic putty 10 Rado putty 17 Lenova putty 18 ( NOTE : This is been carried out based on observations and retailers had the choice of choosing all or any of them or some of them) Chart No 2.11: Table showing acceptance of Birla wallcare Putty Birla wall-care putty 6% J.K putty 2% Asian acrylic putty 20% Rado putty 35% Lenova putty 37% NO OF RETAILERS(out of 20retailers)
  57. 57. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 57 Table No 2.12: Comparision done to know the brand demand in rural market Do customers ask ‗Birla wall-care putty‘ (based on 20retailers) YES nO NO OF RETAILERS 02 18 Chart No 2.12: Comparision done to know the brand demand in rural market It can made out that the market demand of rural market completely varies from that of the urban. Where in urban ‗Birla has over 70% market share‘ the accptance of the products is bare minimum of about 6%. Both Rado putty(35% market share) and Lenova putty(37% market share ) are conventional putty and are higher performer because of its low prices, higher margins to retailers and higher commission to painters as well because of the lack of awareness regarding products, its informations, attributes, differences etc. Though the market is price elastic the survey also has highlighted that many customers are also either brand loyals or brand push is high. Asian acrylic putty which is expensive even from Birla wall-care putty has over 20% market share, thus gives an picture if this market if properly exploited would be an bigger market for the branded products. NO OF RETAILERS 2 18 Demand in Rural Areas Do customers ask ‘Birla wall-care putty’ (based on 20retailers) YES Do customers ask ‘Birla wall-care putty’ (based on 20retailers) nO
  58. 58. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 58 FINDINGS, SUGGESTIONS AND CONCLUSIONS FINDINGS Those, majority in the retailers are aware about the Birla products and are either the user or have used the products. Though there are some competitor‘s for the product (putty), over 77% of the market share in the cement based putty is been held by Birla. It is not highly competitive markets as there is lesser players in the market Though according to company which claims J.K Cement to be an major competitor when compared to overall putty market Asian acrylic putty is an major competitor as the total consumption of this is higher in the market and have recently launched Cement based putty Local putty or conventional putty because of cheap availability also has considerable amount of market share, though these products are very low in quality consumers purchase because of lack of understanding for using branded products and affordability The brand ‗Birla‘ as an whole has good acceptance in the market but still much percentage of market are not aware about ‗Birla wall-care putty‘ and they either ask the competitor putty or just putty. The consumers who ask for the product is just 36%. Though there are many problems faced by retailers the major problems usually faced to use the products are: Packaging for which over 77.77% retailers have shown their discomfort, where as 54% retailers are demotivated as the company do not give any Gifts to the retailers and lastly is the timely service by the stockiest which 44.44% retailers have problems as there is no consistent service on timely delivery of the products. The stockiest overall service level given to retailers, on the basis of correct information‘s regarding product, prices, content is fluctuating where as many retailers are satisfied with some stockiest but are not satisfied and have given very poor ranking to others. It is been seen that though all types of customers visits the retail store for purchases, the painters play an crucial role in final purchases, directly or indirectly about 88% sales happens through them Though applications of these products requires skill but majority of them are uneducated but are experienced thus give more importance on those company products which gives them higher commission or gifts. It is been observed that many retailers face problems in packaging of the products, mainly n 1kg and 5 kg packing where over 67% have complained about its packing and expects immediate actions to be taken for its improvements
  59. 59. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 59 Over 88% retailers also expect hand bags or covers along with products delivered for 1kg and 5kg bags. As many ask for separate covers to carry it, thus adds up separate cost to the retailers. As an part of the promotion and to attract painters towards the product the company gives tokens in the bags which have to be redeemed in the retail stores, it is seen that only 65% of retailers are aware in 5kg packing and over 80% are aware in 20kg packing. It is vital because if they are not aware than they would not pass on to the painters and the main concept of introducing it will be lost and painters would not be motivated to buy. As company carries out many promotional activities retailers also expected some sort of promoting brand, over 75% retailers suggested to increase painters training programmes, 73% indicated dealers/retailers meeting where as all 100% retailers have shown keen interest on retailers scheme where about 54% have suggested to promote the brand separately in televisions, newspapers and usage of hoardings. The company works centralized when in concerns of replacements or reimbursement issues which delays an single transaction for months to the retailers who in turn borne all the losses thus the shelf space for the product is very limited and they purchase for an short duration and limited compared to competitor‘s The company trades in two forms: Trade and non-trade. Thus those who use non- trade(purchase in large quantities for final consumption or use in buildings etc) sometimes issue the surplus to the market in cheap prices thus has lead to change in perception and image on the minds of the retailers. The company‘s image has also changed as the company was not fully able to deliver to all the promises made to the retailers, the main impact is of retailers scheme which has made many retailers negative about the product and many have stopped selling their products in retail stores It is been seen that the services delivered by the stockiest vary from one other, where some stockiest are considered excellent others are very poor in handling their areas. The company in other hand builds its brand by demonstrating it. The sales representatives or the officers visits sites, projects or buildings apply the sample about the products, give the technical benefits about the product, show practically in their own sites its benefits, thus an image builds and this also helps in word-of-mouth promotions about the product as well as demand is been created from the users directly. As the company consistently do painter‘s meet there is an goodwill about the product, but painters are not very much interested to purchase if there is no pressure from their client‘s side because though the company provide painters token to these painters it is far less than other companies. for example : For 20kg bags painters get 45rs token for using ‗Birla-putty‘ J.k. cement provides 60rs token where as Asian paints provide 55rs in
  60. 60. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 60 branded competitor‘s and in local for example : Lenova putty(Conventional putty/local putty) gives more than 100rs as token to painters so do Rado putty. The dealer‘s/Retailer‘s are not very much interested in dealing with company products as margins are very less compared to other companies. Majority of them try to push local putty as customers are not much aware about differences in quality and dealers higher margins compared to branded products. Though there are Sales Representatives assigned to each area and they do constantly visiting retailers and checking competitors movements but as they are not empowered with proper powers to take actions couldn‘t solve any problem immediately and as they act as an ‗Brand‘ as they represent the company their inability is directly viewed as company‘s inability. The market as an whole is very price sensitive, though they give considerable amount of importance to quality and name, majority of those purchases based on the final prices of the product as these purchases are done by either builders or contractors and they mainly think of returns or profits(excluding large builders). The market as an whole has high potentiality because of growth seen in economy, development etc and there are many areas which is not yet explored (Bangalore alone has over 5000retailers) of which the company has reach of up to 3000retailers. Though there are opportunities for growth there is also considerable amount of threat as potential competitor‘s (Nationally or International) may enter the market and cause considerable amount of damage. SUGGESTIONS/RECOMMENDATIONS Though the company has appointed stockiest‘ based on their credentials, the company should also control their activities as many stockiest are below in providing service. As they represent the company to the retailers their business practices also affects the company reputation and goodwill The Sales Representatives appointed by the company should be empowered in minor decision making. This will also ensure quality services and control over the operations as there is no direct service from the company From the survey conducted its clear that though consumers/customers know the brand ‗Birla‘ many are not aware of company‘s products like ‗Birla wall-care putty‘, thus the company should go for advertising in print media, hoardings or even television advertising and position the ‗Birla White‘ brand image on the consumers side . This would enable to be more competitive.
  61. 61. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 61 The schemes provided by the company to the retailers must be competitive and should be made based on the trend. As company presently provides retailers scheme varied by slabs at 8-12 rupees per bag compared to J.k. cement which gives 30 rupees per bag, this makes company‘s schemes less attractive As the complaint handling regarding damages, packaging problems etc has an lengthy process which takes months to be resolved should be shortened which will create an trust on part of the retailers towards the product and would motivate the retailer to keep more stock and make more sales ( The shelf-space compared to competitor‘s is low compared to competitor‘s which would create an blockage if the competition in the market increases The retailers should be given with check list to know – at what prices they should receive the materials from the stockiest and at what prices they should sell, thus would improve the par of service and have standardization on prices. As presently different retailers are been delivered at different prices this has increased the dissatisfaction towards the company and decreased the image of the company in total. As painter‘s are an crucial element in the entire cycle of sales of the products as they influence directly or indirectly over 80% of total sales in the market. Schemes should be made to make them attracted towards the brand, though presently tokens which are been given in ‗Birla wall-care putty‘ on 5kg and 20 kg‘ packing it should also be extended to 40kg packing and such token system should be moved to other slow moving products such as ‗Textura‘, ‗Level-plast‘ etc thus would contribute for total sales The painter‘s along with tokens should also be given hand-gloves, t-shirts etc. As using some of the products of the company such as Birla wall-care putty for example is proved to be creating some reactions on their hands thus making them avoid the brand, thus giving gloves, t-shirts etc would on one side act as an promotional activity on the other side creates an goodwill on the minds of the painters as the company ‗cares‘. Along with promotional activities such as dealers meet, painter‘s meet the company should give equal importance for architects meet, engineers meet, builders meet , this is where the company‘s products can be given more value and developing an image and create an superior value as these play an crucial role in the entire market. The company should categorize different retailers differently. Those performing higher sales must be given more schemes thus making them motivated to carry on as well as increase the sales, thus this can make company clearly areas where sales are high or low
  62. 62. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 62 which will also enable the company to develop strategies‘ and know where more attention should be given and where moderate. The company should develop an different strategy to cater to rural segment. As is seen that performance of the company in rural areas are less and is been capitalized by conventional (local) putty products. As this segment has lack of awareness, product information and their benefits requires different marketing strategies to capture the market. As this is an upcoming market more emphasis should be on projects thus builders meet, architects meet, dealers meet should be given more importance and this would give an platform to launch successfully and to establish demand for the products
  63. 63. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 63 CONCLUSION As the topic of the study is ‗Acceptance of Birla wall-care putty in Retail segment‘ and the study‘s main objective has been satisfied as there is ample acceptance for the product ‗Birla wall-care putty‘ and all other brands of the organization and also enjoys higher market share of over 60% market share. The study, highlighted on all the components and has understood of future opportunities, possible threats, potential market which could be captured as well as major problems which requires certain attention. Though Birla wall-care has well established itself as an major brand and as good market share and also higher sales it needs to forecast its future operations too, as though its sales is higher from that of its competitors but its shelf space is very low compared to competitors. The company should also analyze low shelf space because of ‗Trust on the brand‘ is getting lower because of very long problem rectification process carried by the company towards retailers have made them defensive and weakened an area for competitor to exploit or capture the market. Problems vary from replacement of damaged bags, hardening of white cement, quality concerns on packaging or retailers scheme which has to rectified to the earliest. The company on the other side carries out effective promotional activities which gives faster results of the performance or promotions. It arranges painters meet not only to build relationships or attract painters but also provides product knowledge, application information‘s etc thus makes them more aware about the product and develops goodwill of the company. It also does sampling in buildings, apartments etc and gives practical information‘s by doing an demo to the builders and shows the company‘s beliefs towards its brands. Thus these to name a few give the company an upper edge to promote and build its brand effectively. ANNEXTURE ENVIRNOMENT CLEARENCE LETTER
  64. 64. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 64
  65. 65. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 65
  66. 66. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 66
  67. 67. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 67 (Rs. in crore) FY 10 FY 09 FY 08 FY 07 FY 06 Income Gross sales 8841.79 12097.37 11551.56 9572.71 7638.41 Less: excise duty 669.68 1268.66 1336.51 1,001.00 985.80 Net sales 8172.11 10828.01 10215.05 8571.71 6652.61 Interest and dividend income 223.7 159.04 165.77 113.27 67.53 Other income 152.06 191.41 212.07 168.49 152.41 Increase / (decrease) in stocks -10.98 33.54 130.22 -16.62 -43.48 8536.89 11212.70 10723.11 8836.85 6829.07 Expenditure Raw materials consumed 2168.07 3085.08 2828.25 2219.14 1822.69 Manufacturing expenses 1700.26 2731.69 2202.47 1841.19 1580.34 Purchases of finished and other products 30.91 65.94 97.40 321.16 240.15 Payments to and provisions for employees 480.93 600.39 550.07 458.51 407.64 Selling, distribution, administration and other expenses 1195.08 1928.55 1,696.79 1,414.37 1,181.33 Interest 120.39 139.67 107.00 111.84 103.38 Depreciation and amortization 351.14 456.97 353.27 317.91 291.64 6046.78 9008.29 7,835.25 6,684.12 5,627.17 Less: self consumption 10.67 43.43 76.36 36.53 - 6036.11 8964.86 7,758.89 6,647.59 5,627.17 Profit before tax and exceptional items 2500.78 2247.84 2,964.22 2,189.26 1,201.90 Exceptional items - - 45.68 37.10 4.13 Profit before tax from ordinary activities 2500.78 2247.84 3,009.90 2,226.36 1,206.03 Provision for current tax -666.40 -329.40 -940.26 -682.15 -369.82 Deferred tax -103.65 -257.50 -9.62 1.83 27.00 Fringe benefit tax - -12.98 -12.45 -10.23 - Write back of Excess for Tax/Income Tax Refund Related To Earlier Years (Net) 25.30 - - - - Profit after tax from ordinary activities 1756.03 1647.96 2,047.57 1,535.81 863.21 Extra ordinary items: Profit on transfer of textile units at Bhiwani - - 4.76 - - Profit on sale of shares of a subsidiary company - - 180.27 - - Profit on Sale of Sponge Iron Unit 336.07 -
  68. 68. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 68 Profit after tax 2092.10 1647.96 2,232.60 1,535.81 863.21 Debenture redemption reserve no longer required 5.00 - 82.92 38.56 8.62 Investment allowance reserve no longer required - - - 0.05 0.25 Balance brought forward from previous year 2180.97 1064.41 965.33 878.37 815.35 Profit available for appropriation 4278.07 2712.37 3,280.85 2,452.79 1,687.43 Appropriations: Debenture Redemption Reserve - 15.00 - - - Interim dividend - - 252.10 - Proposed dividend 275.05 275.02 275.02 - 183.35 Corporate dividend tax 33.95 41.38 41.42 35.36 25.71 General reserve 1750.00 200.00 1,900.00 1,200.00 600.00 Balance carried to balance sheet 2219.07 2180.97 1,064.41 965.33 878.37 4278.07 2712.37 3,280.85 2,452.79 1,687.43 Basic earnings per share before extra ordinary items (in Rs.) 191.51 179.73 223.32 167.50 94.14 Diluted earnings per share before extra ordinary items (in Rs.) 191.44 179.73 223.24 167.50 94.14 Basic earnings per share after extra ordinary items (in Rs.) 228.16 179.73 243.49 167.50 94.14 Diluted earnings per share after extra ordinary items (in Rs.) 228.08 179.73 243.42 167.50 94.14
  69. 69. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 69 (Rs. in crore) FY 10 FY 09 FY 08 FY 07 FY 06 Sources of funds Shareholders' funds Share capital 91.70 91.69 91.69 91.69 91.69 Employee stock options outstanding 9.51 10.45 4.90 - - Reserves and surplus 7044.16 9,375.44 8,044.12 6,138.35 4,890.39 7145.37 9,477.58 8,140.71 6,230.04 4,982.08 Loan funds Secured loans 764.94 2,205.00 2,350.40 2,291.00 1,386.12 Unsecured loans 272.68 1,189.95 851.47 660.56 593.55 1037.62 3,394.95 3,201.87 2,951.56 1,979.67 Deferred tax liabilities 252.16 864.37 606.87 582.55 584.38 Total 8435.15 13,736.90 11,949.45 9,764.15 7,546.13 Application of funds Fixed assets Gross block 3102.16 11,060.82 7,588.40 6,770.97 6,114.12 Less: depreciation and amortization 1316.10 3,972.54 3,564.89 3,380.53 3,109.49 Net block 1786.06 7,088.28 4,023.51 3,390.44 3,004.63 Capital work-in-progress 42.98 1,218.64 3,026.31 1,192.35 293.64 1829.04 8,306.92 7,049.82 4,582.79 3,298.27 Fixed assets held for disposal - 0.85 4.14 14.33 12.76 Investments 6324.79 4,609.10 4,080.79 4,274.70 3,481.71 Current assets, loans and advances Interest accrued on investments 0.95 0.48 0.70 0.70 1.46 Inventories 417.24 1,378.24 978.44 824.14 750.73 Sundry debtors 345.01 559.93 711.98 576.48 413.45 Cash and bank balances 15.92 113.38 127.47 116.38 155.58 Loans and advances 385.12 1,045.81 1,167.01 824.69 705.54 1164.24 3,097.84 2,985.60 2,342.39 2,026.76 Less: current liabilities and provisions Liabilities 302.37 1,686.93 1,603.91 1,266.86 969.15 Provisions 580.55 590.88 566.99 183.20 304.22 882.92 2277.81 2,170.90 1,450.06 1,273.37 Net current assets 281.32 820.03 814.70 892.33 753.39
  70. 70. ―Acceptance of Birla Wall-Care putty in Retail Segment‖ Alva’s Institute of Engineering & Technology Page 70 Total 8435.15 13,736.90 11,949.45 9,764.15 7,546.13 INCOME STATEMENT 31-Mar- 10(12) 31-Mar- 09(12) 31-Mar- 08(12) Profit / Loss A/C Rs mn %OI Rs mn %OI Rs mn %OI Net Sales (OI) 81938.90 100.00 108589.00 100.00 103192.60 100.00 Material Cost 25017.70 30.53 36040.10 33.19 33110.90 32.09 Increase Decrease Inventories 418.90 0.51 324.00 0.30 -328.20 -0.32 Personnel Expenses 4809.30 5.87 6003.90 5.53 5500.70 5.33 Manufacturing Expenses 13558.90 16.55 21693.30 19.98 17196.30 16.66 Gross Profit 38134.10 46.54 44527.70 41.01 47712.90 46.24 Administration Selling and Distribution Expenses 11950.80 14.59 19285.50 17.76 16967.90 16.44 EBITDA 26183.30 31.95 25242.20 23.25 30745.00 29.79 Depreciation Depletion and Amortisation 3511.40 4.29 4569.70 4.21 3532.70 3.42 EBIT 22671.90 27.67 20672.50 19.04 27212.30 26.37 Interest Expense 1203.90 1.47 1396.70 1.29 1070.00 1.04 Other Income 3589.80 4.38 3202.60 2.95 3956.20 3.83 Pretax Income 25057.80 30.58 22478.40 20.70 30098.50 29.17 Provision for Tax 7447.50 9.09 5998.80 5.52 9623.30 9.33 Extra Ordinary and Prior Period Items Net 3360.70 4.10 0.00 0.00 1850.80 1.79 Net Profit 20971.00 25.59 16479.60 15.18 22326.00 21.64 Adjusted Net Profit 17610.30 21.49 16479.60 15.18 20475.70 19.84 Dividend - Preference 0.00 0.00 0.00 0.00 0.00 0.00 Dividend - Equity 2750.50 3.36 2750.20 2.53 2750.20 2.67