Shree cement mar. report

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Shree cement mar. report

  1. 1. SUMMER TRAINING REPORT Shree Cement Limited “Market perception of shree Cement In terms of marketing mix” Submitted in partial fulfillment for the Award of Degree of Master of Business AdministrationSubmitted By :- Submitted To :-SANAT KUMAR NIMBARK MR. MUKESH MACHARAMBA PART- II HEAD OF DEPARTMENTSESSION-2008-10 Institute of Information & Management Sciences 7-A, RIICO Institutional Complex, Sitapura, Jaipur- 302 022 1
  2. 2. PREFACEThe summer training project of management course plays an important role for amanagement student to develop him into a well groomed professional. It provideshim the theoretical concepts and practical exposure in the field of application.Summer training project also provides him an idea of dynamic and versatileprofessional world as well as an exposure to the intricacies and complexities ofthe corporate world.My summer training in SHREE CEMENT LIMITED Jaipur was an eye openingexperience to see the level of customer satisfaction among people of the jaipurcity & local areaDuring MBA program I was taught about two dozen subjects which if not appliedproperly are a simple waste of time. At SHREE CEMENT LMITED I got achance to apply management theories to the latest competitive and marketingoriented environment.In two months of market exposure, I learned a lot of various aspects oforganizational structure, departments, sales, communication and their impact.Now I can say one thing that the best way to learn is at work. It was a realinteresting experience and I enjoyed every part of it and hope that it would behelpful in my future. 2
  3. 3. ACKNOWLEDGEMENTSSuccessfully accomplished project work and the completion of this report havebeen made possible by the significant contributions of many people.I would like to express my sincere gratitude towards Mr.Naveen Sharma myorganizational guide for giving me the support and encouragement that I needed,and providing many valuable suggestions and insights for my work. I would alsolike to thank my institutional guide Mr. Mukesh Machra for his support.Finally, I’m grateful to the entire Shree Cement family, for co-operating with meduring my work here.SANAT KUMAR NIMBARKMBA, Session of 2008-2010Institute of information & management sciencesJaipur 3
  4. 4. -: CONTENTS :-1 Industry overview 91.1 Cement industry in India 91.2 Major Players in Indian Cement Industry 101.3 Process Technology 111.3.1 Raw Materials for Cement Production 111.4 Process 111.4.1 Stages of Cement Production 121.5 Types of Cement 151.6 Scale of Operations 171.6.1 Industrial production 171.7 Exports 201.8 Policy Initiatives 221.9 Future Outlook 221.10 Significant Consolidations 221.11 Competitor & Environment Analysis 24 PART-22 Company Overview – Shree Cement Limited 252.1 Introduction 252.2 Vision of SCL 262.3 Philosophy of SCL 262.4 Mission of SCL 272.5 SCL manufacturing units 272.6 Business & Managerial Challenges for SCL 302.7 Market of SCL 312.8 SCL’s Brands & Products 322.9 Strengths of SCL 322.10 SCL’s Manpower profile 352.11 Key Operational Highlights 362.12 Recognition and Awards 422.13 SCL vis-à-vis Competitors 422.14 Information Technology at SCL 462.15 Bangur Cement – SCL’s Premium Brand 482.16 Comparison between various cement brands 50 PART-33 Marketing research 533.1 Classification marketing research 543.1.1 Process of marketing research 553.2 Research methodology 563.2.1 Data collection 573.2.2 Area covered 593.2.3 Data analysis 603.2.4 Findings 69 PART-4 4
  5. 5. 4 Questionnaire 70 Performa of Questionnaire 71 Dealer /sub dealer report 72 PART-5 5.1 Conclusion 78 5.2 Recommendation 79 5.3 Bibliography & webliography 81 List of tables 2.1 Shree- Market Share 26 2.2 Market Classification for Shree Cements Ltd. 32 2.3 SCL Key Figures 42 2.4 SCL figures vis-à-vis competitors 43 2.5 SCL’s Variable Cost Comparison with others 44 2.6 Power Cost Comparison 45 2.7 EBITDA Margin Comparison 45 EXECUTIVE SUMMARYCement is a key infrastructure industry. It has been decontrolled from price anddistribution on 1st March, 1989 and delicensed on 25thJuly, 1991 Moreover it isthe material which plays an important role in building not only the colossalstructures but also our dreams in the form of our houses, keeping us protectedagainst the changing climate. Our country takes the pride of being the secondlargest manufacturer of cement in the world preceded by only China. We haveconstantly been exercising one of the best practices of cement production, givingrise to productivity, quality and efficiency.The cement industry in India is experiencing a boom on account of the overallgrowth of the Indian economy. The demand for cement, being a derived demand,depends primarily on the industrial activity, real estate business, constructionactivity, and investment in the infrastructure sector. India is experiencing growthon all these fronts and hence the cement market is flourishing like never before.Indian cement industry is globally competitive because the industry haswitnessed healthy trends such as cost control and continuous technology upgradation. It is believed that cement demand in India is expected to grow at 10%annually in the medium term buoyed by housing, infrastructure and corporatecapital expenditures. 5
  6. 6. As mentioned above, the Indian cement industry is the second largest producerof quality cement, which meets global standards. The cement industry comprisesmore than 50 cement companies with 130 large cement plants with an installedcapacity of 156.26 million tonnes and more than 300 mini cement plants with anestimated capacity of 11.10 million tonnes making a total installed capacity of167.36 million tonnes.Continuous technological upgradation and assimilation of latest technology hasbeen going on in the cement industry. Indian cement industry is modern anduses the latest technology. India is also producing different varieties of cementlike Ordinary Portland cement (OPC), Portland Pozzolana cement (PPC),Portland Blast furnace Slag Cement (PBFS), Oil Well Cement, SulphateResisting Portland Cement, White Cement, etc.Future growth of the industry is belief to be driven by expected GDP growth ofmore than 8 percent, growth of the housing sector and the development of roads,ports, airports and other infrastructure.This project is pertaining to explore the market perception of Shree cement’sbrand vis-à-vis competitors by taking care of all the components of marketingmix. Keeping main objective of the study in mind the survey has been done injaipur city & local areaThe methodology of the study contains interacting with distributors and dealers,questioning them around the various attributes of the market to collect the factsabout the market scenario of the region and eventually exploring their role inmarketing of company’s brandFor past two months, I have been working as a summer trainee on this projectassigned to me . The idea was to study the importance and role of various 6
  7. 7. factors of the marketing mix in the cement industry in terms of Quality (Product),Price, Promotional activities, Services to the dealer and Dealers profitability.The report also throws light on dealer’s opinions and preferences when it comesto discounts and benefits offered to them and promotional support provided bycompany to help dealers. This information is vital to the company in forming itsstrategy and schemes to increase its market share.To start with an attempt was made to understand and diagnose the prevailingsituation of Shree’s cement. Carrying out the industry analysis, competitor’sanalysis, channel analysis and SWOT analysis did it. To get the real marketscenario, a survey of dealers was conducted to get their perception about theprevailing situation and to find their expectations.According to dealer’s feedback Quality, Availability and Profit margin are thefactors on which Bangur is rated high.A positive relationship was seen between Brand image and Quality of thecement. Along with this there was no significant relationship between the Profitmargin and the sales.Survey results confirm that SCL has been able to make a mark in market andperceived to have good quality and also there is a great demand of cement inmarket. But survey results also shows that despite of above mentioned positivefactors it has not been able to make a breakthrough in building its brand namethe reason come out to be its low brand awareness (lack of dealer motivation/meetings/ advertising) and cut-throat in-house brand competition.To increase the brand awareness aggressive promotion need to be carried outensuring its effectiveness in making a mark, also as survey results confirm thatit’s the dealer/mason/contractor who is the ultimate decision maker in choosing abrand so efforts need to be made to build long term relationship with all these 7
  8. 8. people. Meetings, gifts, and kit distribution are the best tool to ensure masonsunderstanding and satisfaction. As dealer play a prominent role in sale of a brandevery possible effort (like training/ plant visit/ additional margin/ sufficient POPmaterial distribution/ grace period of three days for payment) need to be made astrong dealer network. PART 1 INDUSTRY OVERVIEW 1.1 CEMENT INDUSTRY IN INDIACement industry is a capital intensive and cyclical industry. The demand forcement is linked to economic activity, can be categorized into two segments,household construction and infrastructure creation.The Indian Cement Industry today is the second largest in capacity andproduction with an installed capacity of around 157 mtpa after China. The IndianIndustry charted a fast track growth of around 10% per year on an averageduring the last decade. Demand has shown an upward surge in recent timesbuoyed by housing sector, infrastructure development, and increase in capitalexpenditure by corporate and growing retail sector. The cement demand in thecountry is expected to grow at an annual rate of 8% for the next five years.The Indian cement industry is a mixture of mini and large capacity cement plants,ranging in unit capacity per kiln as low as 10 tonnes per day (tpd) to as high as 8
  9. 9. 7500 tpd. Majority of the production of cement in the country (94%) is by largeplants, which are defined as plants having capacity of more than 600 tpd.The Industry faces several bottlenecks in high cost of inputs like fuel and power,high taxes and duties and transportation cost. More than 70% of the input cost incement manufacture is beyond the control of the industry and is administered byregulatory authorities. These include royalties and cess on limestone, tariff forcoal, rail transport and power, duties on finished goods, namely, central excise,local sales tax, octroi, etc.The only areas where industry can induce cost controls and economy arereduction in consumption of inputs like fuel and power through energy efficiency,improved productivity through planned maintenance and reduction of stoppages,etc. The continuous efforts by the industry in these areas have brought in goodresults. It is noteworthy that the energy consumption by the most efficient cementplants in India at the level of 665 Kcal per kg of clinker and 69 kWh per tonne ofcement are comparable with the best achieved in the world. 1.2 Major Players in Indian Cement Industry:Domestic players: 1.) ACC Limited 2.) Ambuja Cements Limited 3.) Birla Corporation Limited 4.) UltraTech Cement 5.) Binani Cement 6.) Shree Cements Limited 7.) India Cements 8.) J K Cement 9.) Grasim 10.) Jaypee Group 9
  10. 10. 11.) Madras Cements 12.) Century TextilesMajor foreign players: 1.) Holcim 2.) Lafarge 3.) Italcementi 1.3 PROCESS TECHNOLOGY1.3.1 Raw Materials for Cement ProductionCement is usually used in mortar or concrete. Here it is mixed with inert material(called aggregate), like sand and coarse rock. Portland cement consists ofcompounds of lime mixed with oxides like silica, alumina and iron oxide.There are three major raw materials for cement:1.) LimestoneLimestone is the main raw material and is the source of calcium carbonate.Calcium carbonate is burnt to obtain calcium oxide (CaO). The other sources ofcalcium carbonate are marl, chalk, seashell and coral reef. Limestone is the mostabundant source of CaO. The other user industries for limestone are iron & steel,fertilizer and chemicals. Cement is the biggest limestone user inIndia accounting for over 75-80% of limestone produced in India. Thecomposition of limestone used by the various sectors varies. For cement, theCaO content of limestone should be a minimum of 44%. Typically, 1.4-1.5 tonnesof limestone are required per tonne of clinker. Thus, for a 1 million tonne cementplant, assured availability of cement grade limestone reserves of the order of50-60 mt in the close vicinity is important. 10
  11. 11. 2.) GypsumGypsum is used as a retarding agent. Ground clinker, on contact with water,tends to set instantaneously because of the very fast reaction between tri-calcium aluminates and water. In the presence of gypsum, the desired settingtime can be achieved. Gypsum is added to the extent of 5% during the clinkergrinding stage. Gypsum is naturally available in abundance in Rajasthan, Gujaratand Tamilnadu.3.) Granulated Blast Furnace Slag (GBFS) and Fly AshThe other raw materials that are also used in the manufacture of cement areblast furnace slag (a waste product obtained from iron-smelting furnaces) and flyash (leftover ash from a thermal power station). Limestone contains about 52%of lime and about 80% of this lime is lost during ignition of the raw materials.Similarly, Clay contributes about 57% silica of which about 25% is lost duringignition. GBFS is obtained by granulation of slag obtained as a by-product duringthe manufacture of steel. It is a complex calcium aluminium silicate and haslatent hydraulic properties. That is why it is used in the manufacture of Portlandblast furnace slag cement. 1.4 PROCESS1.4.1 Stag es of Cement ProductionThere are seven stages of cement production at a cement plant:1. Procurement of raw materials2. Raw Milling - preparation of raw materials for the pyroprocessing system3. Pyroprocessing - pyroprocessing raw materials to form cement clinker4. Cooling of cement clinker 11
  12. 12. 5. Storage of cement clinker6. Finish Milling7. Packing and loadingFigure 1.1: Cement manufacturing from the quarrying of limestone to the baggingof cementWhile adding fresh capacities, the cement manufacturers are very conscious ofthe technology used. In cement production, raw materials preparation involvesprimary and secondary crushing of the quarried material, drying the material (foruse in the dry process) or undertaking a further raw grinding through either wet ordry processes, and blending the materials.Clinker production is the most energy-intensive step, accounting for about 80% ofthe energy used in cement production. Produced by burning a mixture of 12
  13. 13. materials, mainly limestone, silicon oxides, aluminium, and iron oxides, clinker ismade by one of two production processes: wet or dry; these terms refer to thegrinding processes although other configurations and mixed forms (semi-wet,semi-dry) exist for both types.In the dry process, the raw materials are ground, mixed, and fed into the kiln intheir dry state.In the wet process, the crushed and proportioned materials are ground withwater, mixed, and fed into the kiln in the form of slurry.The choice among different processes is dictated by the characteristics andavailability of raw materials. For example, a wet process may be necessary forraw materials with high moisture content (greater than 15%) or for certain chalksand alloys that can best be processed as a slurry. The dry process is the moremodern and energy-efficient configuration. In general, the dry process is muchmore energy efficient than the wet process, and the semi-wet somewhat moreenergy efficient than the semi-dry process. The semi-dry process has neverplayed an important role in Indian cement production and accounts for less than0.2% of total production.In 1960, around 94% of the cement plants in India used wet process kilns. Thesekilns have been phased out over the past 46 years and at present, 96.3% of thekilns are dry process, 3% are wet, and only 1% are semidry process. Dry processkilns are typically larger, with capacities in India ranging from 300- 8,000 tonnesper day or tpd (average of 2,880 tpd). While capacities in semi-dry kilns do rangefrom 600-1,200 tpd (average 521 tpd), capacities in wet process kilns range from200-750 tpd (average 425 tpd).Over the last decade, increased preference is being given to the energy efficientdry process technology so as to obtain a cost advantage in a competitive market.Moreover, since the initiation of the decontrol process, many manufactures haveswitched over from the wet technology to the dry technology by making suitable 13
  14. 14. modifications in their plants. Due to new, even more efficient technologies, thewet process is expected to be completely phased out in the near future. Due tothe dominant use of carbon intensive fuels such as coal in clinker making, thecement industry has been a major source of carbon dioxide (CO2) emissions.Besides energy consumption, the clinker making process also emits CO2 due tothe calcining process. 1.5 TYPES OF CEMENTThere are different varieties of cement based on different compositions accordingto specific end uses, namely, Ordinary Portland Cement, Portland PozzolanaCement, White Cement, Portland Blast Furnace Slag Cement and SpecialisedCement.The basic difference lies in the percentage of clinker used.1.) Ordinary Portland Cement (OPC):OPC, popularly known as grey cement, has 95 per cent clinker and 5 per centgypsum and other materials. It accounts for 70 per cent of the total consumption.2.) Portland Pozzolana Cement (PPC):PPC has 80 per cent clinker, 15 per cent Pozzolana and 5 per cent gypsum andaccounts for 18 per cent of the total cement consumption. It is manufacturedbecause it uses fly ash/burnt clay/coal waste as the main ingredient.3.) White Cement:White cement is basically OPC - clinker using fuel oil (instead of coal) with ironoxide content below 0.4 per cent to ensure whiteness. A special coolingtechnique is used in its production. It is used to enhance aesthetic value in tilesand flooring. White cement is much more expensive than grey cement. 14
  15. 15. 4.) Portland Blast Furnace Slag Cement (PBFSC):PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 percent gypsum and accounts for 10 per cent of the total cement consumed. It has aheat of hydration even lower than PPC and is generally used in the constructionof dams and similar massive constructions.5.) Specialised Cement:Oil Well Cement is made from clinker with special additives to prevent anyporosity.6.) Rapid Hardening Portland cement:Rapid Hardening Portland Cement is similar to OPC, except that it is groundmuch finer, so that on casting, the compressible strength increases rapidly.7.) Water Proof Cement:Water Proof Cement is similar to OPC, with a small portion of calcium stearate ornon- saponifiable oil to impart waterproofing properties.In India, the different types of cement are manufactured using dry, semi-dry, andwet processes. In the production of Clinker Cement, a lot of energy is required. Itis produced by using materials such as limestone, iron oxides, aluminium, andsilicon oxides. Among the different kinds of cement produced in India, PortlandPozzolana Cement, Ordinary Portland Cement, and Portland Blast Furnace SlagCement are the most important because they account for around 99% of the totalcement production in India.The Portland variety of cement is the most common one among the types ofcement in India and is produced from gypsum and clinker. The Ordinary Portlandcement and Portland Blast Furnace Slag Cement are used mostly in theconstruction of airports and bridges. The production of white cement in the 15
  16. 16. country is very less for it is very expensive in comparison to grey cement. InIndia, while cement is usually utilized for decorative purposes, marble foundationwork, and to fill up the gaps between tiles of ceramic and marble.The different types of cement in India have registered an increase in productionin the last few years. Efforts must be made by the cement industry in India andthe government of India to ensure that the cement industry continues innovationand research to come up with more and more varieties in the near future. 1.6 SCALE OF OPERATIONSThe cement industry has witnessed a significant change in the scale ofoperations. In 1961, the largest kiln in operation had a capacity of 750 tpd. In1970, of the total 119 kilns, 1 had over 1,000 tpd capacity, with 55 having lessthan 400 tpd capacity. In 1980, 11 of the total 141 kilns were over the 1000 tpdmark, with 1 kiln having a capacity larger than 3,000 tpd (roughly 1 mtpa). The1990s saw still higher capacity 4500-5000 tpd (or 1.5 mtpa) kilns. The recentpractice for a large size plant is to have 6,500-7,000 tpd (or 2.5 mtpa) capacity.1.6.1 Industrial production:The cement industry is enhancing its production levels as new homes and officesare being built, and in keeping with the economy’s annual growth rate. Accordingto the Cement Manufacturers Association, the overall cement production rose by8.11 per cent during 2007-08 to 168.29 million tonnes (mt) as against 155.66 mtin 2006-07. Table 1.1 : StatisticsCement (million tonnes) 2006-07 2007-2008 (Apr-Mar) 16
  17. 17. (a) Production 155.66 168.31 Dispatches(b) 155.26 167.67 (Including Export)(c) Export 3.65 5.89(d) Cap. Uti. (%) 96 94Source: Cement Manufacturers’ AssociationPRODUCTION SITES OF VARIOUS BRANDS OFCEMENTBRAND NAME PRODUCTION SITE Shree Beawer Distt. Ajmer Bangur Rass Distt. Pali. Jetaran Cemento Rass Distt. Pali. Jetaran Ambuja Rabriyawas Distt. Pali. Jeteran Binani Pindwada Distt. Sirohi Ultra Tack Shambhupura Distt. Chittorgarh Birla Chetak Chittorgarh Birla Uttam Modak Distt. Kota J.K. Laxmi Banas Distt.Sirohi 17
  18. 18. J.K. Super Nimbaheda Distt. Chittorgarh ACC Lakheri, Distt. BundiTable 1.2: Production and growth rates CEMENT PRODUCTION Weight: 1.99%Month Production (Thousand Tonnes) Growth Rates (%) 05-06 to 06-07 to 2005-06 2006-07 2007-08 06-07 07-08April 12240 13730 14520 12.2 5.8May 12630 13490 14820 6.8 9.9June 12010 13410 14220 11.7 6.0July 11160 12720 13910 14.0 9.4August 11160 11480 13400 2.9 16.7September 10845 12630 13310 16.5 5.4October 12218 13370 14370 9.4 7.5November 11599 12970 13650 11.8 5.2December 12968 14010 14630 8.0 4.4January 13571 14550 15360 7.2 5.6February 12757 13500 15230 5.8 12.8March 14650 15450 16890 5.5 9.3Cumulative Total (Apr-Mar) 147808 161310 174310 9.1 8.1Source : Department of Industrial Policy & Promotion 18
  19. 19. Figure 1.2: Growth rate (%) in Cement Production 1.7 EXPORTS 19
  20. 20. The export of Indian cement has increased over the years, giving a boost to theIndian cement industry. The demand for cement in the foreign countries is aderived demand, for it depends on industrial activity, real estate, and constructionactivity. The cement industry in India has around 300 mini cement plants and 130large cement plants. The total production capacity of these plants is around167.36 million tons. The India cement industry is technologically very advanced,as a result of which the quality of Indian cement is now considered the secondbest in the world. This has given a major boost to the Indian export of cement.The production of cement in India is not only able to meet the domestic demand,but large amounts are also exported. A fair amount of clinker and cement by-products are also exported by India. As the quality of Indian cement is very good,its demand in the international market is always high.In 2001-2002, 3.38 million tons of cement was exported from India. That figurestood at 3.47 million tons in 2002-03, and 3.36 million tons in 2003-04. In2001-2002, 1.76 million tons of clinker was exported from India. In 2002- 2003clinker exports amounted to 3.45 million tons, and in 2003- 2004 the figure stoodat 5.64 million tons. This shows that the export of Indian cement has beenincreasing at a steady pace over the years. Export of India cement has beenmostly to the West Asian countries.The major companies exporting Indian cement are:• Gujarat Ambuja• Ultra Tech Cement• Aditya CementExport of Indian cement has registered growth a fair amount of growth, giving aboost to the Indian economy. That it continues to rise, more efforts must be madeby the cement industry in India and the government of India. 20
  21. 21. The types of cement in India have increased over the years with theadvancement in research, development, and technology. The Indian cementindustry is witnessing a boom as a result of which the production of differentkinds of cement in India has also increased.By a fair estimate, there are around 11 different types of cement that are beingproduced in India. The production of all these cement varieties is according to thespecifications of the BIS. 1.8 POLICY INITIATIVESFDI Policy: the cement sector has been gradually liberalized. 100 per cent FDI isnow permitted in the cement industry. 1.9 FUTURE OUTLOOKConsidering an expected production and consumption growth of 9 to 10 per cent,the demand-supply position of the cement industry is expected to improve from2008-09 onwards, resulting in an expected price stabilization. The cementindustry is poised to add 111 million tones of annual capacity by the end of2009-10 (FY 10), riding on the back of an estimated 141 outstanding cementprojects. 1.10 SIGNIFICANT CONSOLIDATIONSAs discussed earlier in this report, the cement industry is witnessing a number ofMergers & Acquisitions (M&As). The extent of concentration in the industry hasincreased over the years. 21
  22. 22. This concentration is mainly because of the focus of the larger and the moreefficient units to consolidate their operations by restructuring their business andtaking over relatively weaker units. The relatively smaller and weaker units arefinding it difficult to withstand the cyclical pressure of the cement industry.Some of the key benefits accruing to the acquiring companies from theseacquisition deals include: • Economies of scale resulting from the larger size of operations • Savings in the time and cost required to set up a new unit • Access to new markets • Access to special facilities / features of the acquired company • Benefits of tax shelter.The relative market share of large players in the cement industry has changedsignificantly over the years. Consolidation of capacities has seen UltraTech,Grasim, India Cement and Gujarat Ambuja emerging as the leading players inIndia apart from ACC, which has been the market leader during all the yearsexcepting FY2001. All the players have resorted to a combination of Greenfieldcapacities as well as takeover of existing capacities for growth.Some examples of the consolidation witnessed among domestic players in therecent past include: • Gujarat Ambuja taking a stake of 14 per cent in ACC • Gujarat Ambuja taking over DLF Cements and Modi Cement. • ACC taking over IDCOL • India Cement taking over Raasi Cement and Sri Vishnu Cement • Grasims acquisition of the cement business of L&T • Grasim taking over Indian Rayons cement division. • Grasim taking over Sri Digvijay Cements. 22
  23. 23. • L&T taking over Narmada Cements 1.11 Competitor & Environment Analysis PORTER’S MODEL 23
  24. 24. Figure 1.3: Porter’s model 24
  25. 25. PART 2 COMPANY OVERVIEW Shree Cement Limited 2.1 INTRODUCTIONBeing among the top ten cement producers in the country Shree Cement Limited(SCL) enjoys a market share of about 16 per cent in Northern region of India.Over the years, Shree Cement has built an identity as one of the world’s mostefficient cement manufacturers. First of all, its production has been consistentlyin excess of its rated capacity. Secondly company’s per tonne energyconsumption is one of the lowest in the world. And also it has a unique distinctionof operating both its cement as well as captive power plant on alternative fuel.Table 2.1: Shree- Market Share 25
  26. 26. The BG Bangur family is the principal promoter of Shree Cement. Mr. H. M.Bangur is the Managing Director while Mr. M. K. Singhi is the current executivedirector of Shree Cement. It is located at Beawar, in Ajmer district 185 Kms. fromJaipur off the Delhi-Ahmedabad highway.2.2 Vision of SCLTo register a strong consumer surplus through a superior cement quality ataffordable prices.2.3 Philosophy of SCLShree Cement is guided by the philosophy that productivity will lead toprofitability which ultimately will lead to the prosperity of the region and allconcerned with SCL. 26
  27. 27. 2.4 Mission of SCLThe mission of the organization is highlighted by the following. • To sustain its reputation as the most efficient cement manufacture in the world. • To strengthen realizations through intelligent brand building. • To drive down cost through innovative plant practices. • To increase the awareness of superior product quality through a realistic and convincing communications process with consumers.2.5 SCL manufacturing unitsPresently Shree Cements has three units. Two units are at Beawer (incorporatedin 1979 and1997) and third unit is at Ras (Started in 2005). Fourth unit at Rashas been started in March 2007 and another two units at Ras and Khushkheranear Alwar are also started to enhance the capacity of the company to 10 mtpafrom the present figure of 6 mtpa by the year 2010. The proximity to Delhi, Jaipurand Haryana, which are the most lucrative markets in the region, makes it astrategic location.UNIT-1Incorporated in 1979.Put up in 1985.Cement Production (Expected Production) – 1.20 million tonnes 27
  28. 28. UNIT-2Put up in 1997.Cement Production (Expected Production) – 2.10 million tonnesUNIT – 3Incorporated in 2005Cement Production (Expected Production) – 1.50 million tonnesUNIT – 4Incorporated in March 2007Cement Production (Expected Production) – 1.50 million tonnesUNIT - 5Started in Ras,Unit – 6Grinding unit at Kuskhera in Rajasthan. 28
  29. 29. Figure 2.1: SCL Production vis-à-vis Market Share in Northern RegionThe growth of company’s market share is going hand in and with its production,supporting its cyclical business model of produce more-sell more-reinvestmentmore. Capacity enhancement at SCL has also been considerable from its 0.6mtpa in 1985 growing 10 times to 6 mtpa presently and is projected to touch afigure of 10 mtpa by 2010. 29
  30. 30. Figure 2.2: Per Annum Capacity Enhancement at SCL.2.6 Business & Managerial Challenges for SCLCement market for SCL is highly competitive with major competitors havingadvantage of brand equity, capacity and early movers. The major competitors areBinani, Birla (with products like Birla Super and Birla Chetak), Grasim (withproducts like Vikram and Birla Plus), Gujarat Ambuja, JK (with products like JKNimbahera), Laxmi, Mangalam (with products like Mangalam and Birla Uttam),ACC, DCM Shriram, L & T and Kamdhenu. Each of these players has theirdominance across whole Rajasthan in addition to their respective regionaldominance. 30
  31. 31. Another issue is that the product (cement) cannot be differentiated clearly on thebasis of quality and hence, cost plays one of the most important roles in thisindustry. If the company can control cost of manufacturing & distribution, thenonly would profitability of the company increase.Logistics is the most important cost associated with cement industry. This is thesingle most important reason for strong dominance of all cement companies inthe regions around their factory. But if this system can be improved upon, andcosts can be managed, then Shree Cements Ltd. can strengthen their hold inpresent states of distribution as well as look forward to gaining foothold in newerand farther regions.2.7 Market of SCLEach cement manufacturer has a primary and secondary market. The former isone, which is the closest to the production centre where it fetches the bestrealizations while the latter is usually at a distance where realizations are lower.Table 2.2: Market Classification for Shree Cements Ltd.SCL with a market share of 16% has the second largest market presence in thenorthern region, next only to the Gujarat Ambuja Cement and ACC combined.SCL positioning within Rajasthan (in the north of the state) makes it the closestamong all Rajasthan manufacturers to the lucrative markets of Delhi, Haryana 31
  32. 32. and some parts of Punjab, giving it a significant edge in transport costs. Theother cement units are located further down, at distances ranging from 150- 200kilometres.Shree Cements is one of the largest cement companies in North region havingexisting capacity of 5.5mn tonnes of cement per annum located in centralRajasthan. The company primarily caters to Rajasthan, Punjab, Haryana, Delhiand Uttranchal in the Northern region and Uttar Pradesh in Central region.Rajasthan accounts for approximately 30% of the companys sales while Delhiand Haryana together account for approximately 40% of sales.2.8 SCL’s Brands & ProductsShree manufactures:• Ordinary Portland Cement (OPC)• Red Oxide Cement (ROC)Its output is marketed under the ‘Shree Ultra Ordinary Portland Cement’ and‘Shree Ultra RedOxide Cement’ brand names. The product today constitutes almost 37% ofSCL’s sales. Under its premium products category, SCL has launched ‘BangurCement’ Dec. 2005 and a new brand‘Tuff Cemento 3556’ has been introduced in the market in April 2007. Thecompany positioned its brands around longer life (durability), emphasizingproduct longevity.2.9 Strengths of SCL1.) Low Cost Producer: SCL is one of the lowest cost producers of cement inIndia. The prime reasons behind this are captive power plants, use of pet coke inboth captive power plant and kiln and proximity to the markets. 32
  33. 33. 2.) Limestone Reserve: SCL has a total of 700 mn tones of limestone reservewhich would be sufficient to meet its requirements for the next 40 years. ShreeCements third unit is located at the pithead of limestone reserve unlike the othertwo units in Beawar, Rajasthan. Unit IV, which is expected to be commissioned inFY08, would also be located at the pithead of companys limestone reserve. Asthe new plants are located at the pithead of limestone reserve, the raw materialcost per ton of cement is expected to go down as the company would be savingin cost of transportation.3.) Captive Power Plants: During FY05, the company sourced 99% of powerrequirement from its captive power plant. The company has existing power plantcapacity of 42 MW. The company is installing additional power plant of 18 MWcapacities, which would supply power to its new cement units, thereby ensuringcontinuation of self sufficiency in terms of power requirement. Shree Cementspower usages per ton of cement at 75 Kwh is amongst the lowest in the industry.The company uses low cost pet coke in both its power plants and kiln. Pet cokeis not only cheaper compared to the imported coke but also has high calorificvalues thereby reducing the overall cost.4.) Strong sales network of 28 sales offices, 1200 dealers and 4000retailers.5.) Progressive Management: Shree Cement supplemented its attractively lowcapital investment per tonne with one of the lowest manufacturing costs in theIndian cement industry. The path of sustainable growth has been made possiblebecause of management strategy of taking triple bottom-line approach ofEconomic, Environmental and Social performance listed below: 33
  34. 34. Figure 2.3: Progressive Management6.) Mining: Limestone being the predominant raw material, Shree Cement plantsare situated near limestone quarry fields. To minimize the transportation cost,Shree Cements has leased two mines one at Beawer and other at Ras withreserves that will last for a long time. The Ras mines give a limestone of verygood quality which is easier to process. 34
  35. 35. Figure 2.4: SCL Captive Power Generation2.10 SCL’s Manpower profile • Well experienced and skilled manpower resources capable of handling both project implementation and operations. • The skill enhancement is a regular exercise under a well defined training manual. 35
  36. 36. • Company imparts more than 20,000 hours of in-house training to its employees every yearFigure 2.5: Manpower profile at SCL2.11 Key Operational Highlights • The cost of production of the Company is one of the lowest in India • Operating profit margin is highest in World Cement Industry • 100% self sufficiency in meeting power requirement • 100% self dependent on limestone sourcing • Consistent dividend paying company (2005-06: 50%) • Recognized as one of the most Energy Efficient units in India • Fastest growing cement company in India (capacity more than trebling in 3 years from 26 LTPA in 2004-05 to 95 LTPA in 2008-09) • Strong brand image – Bangur Cement, Shree Ultra Red Oxide Cement and Shree Ultra Ordinary Portland Cement have high consumer recall. 36
  37. 37. New super premium brand Tuff Cemento produced with German technology has a lot of expectations.• Initiatives for global warming reductionPioneered in the application of innovative Electro static precipitator technology inDg power generation to save fuel and combat pollution, and replaced HSD byLDO.• Achieved unity power factor… In electrical distribution system to reduce maximum demand, and transmission/ distribution losses• Partial utilization of waste heat… For 3 MW power generation.• Initiator in the use of pet coke for power generation in India36 MW captive thermal power plant under commissioning to generate qualitypower for the plant, avoid transmission and distribution losses, and providesurplus power to Rajas than.SAVINGS: Rs 496.46 Million pa• Development of DD conesIn house development of deduiling cones cyclones resulting in reduction inpressure drop, higher outputs and lower energy consumption.• Single roller press for tow Ball MillsCapacity enhancement & utilization of CM –2 Roller press for capacity increaseand energy saving increase CM –1, Energy saving –2.02 KWH / TheObjective, CSI (Cement sustainability initiative) 37
  38. 38. 1. The purpose of the Cement Sustainability Initiative is to: 2. Explore what sustainable development means for the participating companies and the cement industry. 3. Identify and facilitate actions that companies can take as a group and individually to accelerate the move towards sustainable development. 4. Provide a framework through which other cement companies can participate, and 5. Provide a framework for engaging external stakeholders.Agenda, CSIThe 10 companies involved in the CSI have chosen to develop an agenda forthree reasons:To prepare for a sustainable future by making a more efficient use of naturalresources and energy, and engaging with lock issues increase emerging marketTo meet the expectations of stakeholders and maintain their ‘license to operate’increase communities across the world through a greater transparency ofoperations effective engagement with society and initiating action, which lead tosustained positive changes, andTo individually understand and build new market opportunities through processinnovation, which achieve greater resource/ energy efficiency and long – termcoos savings; product and service innovation to reduce environment impacts andwork with other industries on novel uses of – product and waste material incement production.The companies have identified six key areas where they believe that the CSI canmake a significant contribution towards a more sustainable society: • Climate protection. • Fuels and raw materials. • Employee health and safety. • Emissions reduction. • Local impacts. • Internal business processes. 38
  39. 39. ProductivityShree Cement supplemented its attractively low capital investment pertonne with one of the lowest manufacturing costs in the Indian cementindustry.Timely execution of Unit-III along with better price realization and costoptimization measures made the year a hallmark for the Company:- • The turnover of the Company has more than doubled during the year. • The operating profit margin of the Company at 44.84% is highest in the Indian cement industry. • The proportion of blended cement in the total production has increased to 76% in the current year against 54% in the previous year. Company started use of wet fly ash for producing blended cement which is economical and environment friendly. • The capacity utilization level of the Company further improved during the year from 114% to 116% with Unit-III recording 99% in its very first full year of operation. This compares well with the all India average of 94%. • Continued thrust on improving energy consumption levels has brought down power and fuel consumption as under: 39
  40. 40. Although Power consumption for the year indicates marginal increase during theyear, the unit-wise consumption has gone down from last year. TheReduction in energy consumption with increasing production base hassignificantly contributed to cost efficiency of the Company.• Dynamic and efficient logistic management practices have enabled Company to contain increase in freight cost in spite of rising diesel prices and loading restrictions on trucks. Company has made optimal use of its in-house railway sidings facility with appropriate route plan to limit freight cost.sThe Companys marketing strategy of maintaining multiple brands competingwith each other with a view to garner increased market share has yield goodreturns. As a result, • Company has retained market leadership status in Rajasthan and Delhi. 40
  41. 41. • “Jung Rodhak” brand has further strengthened its presence in its segment in the North India market. • “Bangur Cement” launched last year in the premium quality segment, has been well received in the market and has been improving its market share. Its marketing strategy of appointment of Business associates and Business partners has enabled the Company to keep its debtors levels at zero and minimizing the Working Capital requirement. • Company has introduced another premium quality brand “Tuff Cemento 3556”. The new brand has started attracting customer’s attention and is getting good response. • The proportion of trade sale to total sale increased during the year from 66% to 74% showing higher customer recall and satisfaction. • The Company continued with its highest credit rating of PR1+ for its short-term debt and AA for its long-term debt enabling containment of its cost of funds despite large borrowing requirements for its capital expenditure programme• The interest cost has been kept at a low level in the rising interest rate environment through optimal utilization of funds and judicious mix of rupee and fully hedged foreign currency borrowings. • Timely execution of projects is a hallmark of the Company. The 1.5 MTPA capacity expansion with captive power plant of 18 x 3 MW completed in Feb 08 has been achieved well within the targets both time and budget. • During the year Company has undertaken implementation of an “Enterprise Resource Planning” (ERP) Project with Oracle E-Business Suite to manage its expanding business operations. ERP Project shall help it in improving its business matrices by process optimization, improving logistics and integration across disciplines. The project is expected to be operational in FY 2008-09. 41
  42. 42. Table 2.3: SCL Key Figures2.12 Recognition and Awards• Whitehopleman UK - International Cement Consultants have consistentlymaintained 4 star rating for Shree since 2000 (No one in the world has beenassigned a 5 star rating!!)• Excellence in Energy Management Award 2006 from Confederation of IndianIndustry for the second time• National Awards for Energy Conservation and Best Thermal and ElectricalEnergy fromMinistry of Power, Govt of India• National Safety Awards by Ministry of Labour, Govt. of India• ICWAI National award 2005 for excellence in cost management• Golden Peacock Award-2006 &2008 in recognition of its excellent EnvironmentManagement practices2.13 SCL vis-à-vis CompetitorsSCL has been omnipresent in the performance with various achievements withina short period of time. Following figures suggests that it has been doing the bestjob among its peers in terms of high capacity utilization, low power consumption,low power generation cost, and low fuel consumption ratio. 42
  43. 43. Table 2.4: SCL figures vis-à-vis competitorsIt has also been encountering the lowest Variable Cost in its peer group becauseof its constant efforts in saving cost of power and fuel consumption which is notonly the lowest but is approx. 75% of the average of other players. Freight andselling expenses of for SCL is also the lowest amongst all. 43
  44. 44. Table 2.5: SCL’s Variable Cost Comparison with othersSCL’s ability to produce cement with lowest power consumption and other lowcosts of production and raw material procurement has resulted into the topEBITDA Margin figures for SCL amongst all its competitors. 44
  45. 45. Figure 2.6: Power Cost ComparisonFigure 2.7: EBITDA Margin Comparison 45
  46. 46. 2.14 Information Technology at SCLSCL has embraced Information Technology in a big manner and madeinvestments to establish strong IT infrastructure:• IT Policy & Quality Standards: SCL has clearly defined IT policy. Backup andDisasterRecovery Policy, SCL Internet/Network Access Policy and Business ContinuityPlans have been endorsed and religiously implemented.• ‘SUMriddhi’ - Shree Enterprise Resource Planning: The Shree ERPprogramme, christened ‘SUMriddhi’, was developed deploying Oracle 9i RDBMSand Developer 2000 platform. A comprehensive ERP program was designed tointegrate all functional modules, namely Financial Accounting & Costing (FA),Material Management (MM), Personnel and Payroll (PP), Laboratory and QualityControl, Integrated Management System (IMS) and Raw Material Procurement(RMP) with the objective to make operations online. The company expects toimplement ERP ‘live’ across the organisation in 2004-05.• Online operations of Sales and Distribution: Company successfullyimplemented the computerization of its sales and distribution functions byintegrating all branches/dealers through a secured connectivity with the plant foronline order processing. In the second phase, necessary enhancements willmake the system work in a centralized manner using dedicated and secureVirtual Private Network (VPN) across its branch/dealer network.• SCL’s IT Infrastructure: The Company has a scalable, state-of-the-art ITnetwork infrastructure, with optic fibre cable-based gigabit backbone, high-endlayer 3 switches, Cisco routers and IBM corporate-computing servers. Shree hasa secure network across its corporate and site locations with e-trust firewall 46
  47. 47. supplemented with intrusion detection system and Active Virus Defense Solutionfrom Network Associates. The organisation is provided with the latest computingtools in hardware and software.• SCL’s corporate website: The Company launched its content-exhaustivecorporate website shreecement.com on 1 August 2003. The portal is dynamic,informative and user-friendly with a menu-driven interface. The website containsthe latest information about the company with news flashes and a photo gallery.The website is e-commerce enabled, which provides access to customers ontheir latest account statement and vendors/ suppliers on order positions for the e-procurement program.• E-Procurement: Shree implemented an e-procurement programme to facilitatepurchases through the reverse auction process to maximize price benefits andtransparency.• Paperless office: Shree is moving towards the ultimate goal of achieving apaperless office environment through a widespread use of e-mails and instantmessaging for daily communication across all its offices. A program wasundertaken for storing and cataloguing the huge archive of blueprints of technicaldrawings in a digitised form for instant accessibility.• Raw material procurement: The entire raw material procurement operationwas integrated with ‘SUMriddhi’ - Shree ERP, to increase efficiency and control.• Training: Shree is committed to enhance the IT skills of not only employeesacross all functions but their family members as well. As a result, training is anongoing process and more than 200 personnel were imparted training acrossdepartments. 47
  48. 48. • Online Knowledge management: Shree has launched a platform for sharingknowledge across the enterprise. A knowledge management tool was developedand implemented through which people across all levels can contribute andshare achievements, domain expertise, social and cultural ideas. This alsoprovides a ‘public folder’ for up-to-date information on the cement industry andthe company.• Network Security: SCL network is protected by the high end e-Trust Firewallfrom Computer Associates and Network Associates Intrusion Detection System(IDS). SCL has implemented Network Associates Active Virus Defence for virusprotection and SPAM control. All network resources are protected by adoptingstrong password policies. SCL has enforced three-layer security for all data andinformation systems. 2.15 Bangur Cement – SCL’s Premium BrandBangur cement started with a vision to be the most effective and efficient cementbrand of the country. As in Bangur cement, SCL aimed at providing the bestquality cement that ensures customer satisfaction. The Bangur cement isadvertised with a tagline saying “The best, not inexpensive”.To serve the fast growing National Capital Region (NCR) with immediate andprompt services, Bangur cement is establishing a grinding capacity at Khuskherain Alwar District of Rajasthan, which is just 80 kms away from the capital.Excelling in the quality, price, availability and packaging of the product, SCLaspires to be the first choice of the consumers. The Bangur cement plant is one 48
  49. 49. of the most modern and sophisticated plants in the India equipped with state-of-the-art German Technology.Following factors makes Bangur cement, the SCL’s premium brand: • Best Quality of Lime Stone: The Ras belt is among the finest quality limestone deposits in India. Importantly, it is a single source of limestone belt where all necessary ingredients of cement are available in limestone and there is no dependency on outside sources, thus enabling consistency in quality. • Better Quality Control, Clinkerisation and superior cement grinding makes the quality of the brand one of the best in the industry. • State-of-the-art technology: The plant has been set up in the technical collaboration with internationally acclaimed German cement manufacturer.In line with its marketing strategy, Bangur cement realized sales predominantly inthe trade segment. The brand contribution to more then 40% of the trade sale ofthe company, registering 14.20 Lac MT sales out of the total of 35.92 Lac MT .Infact , trade sales accounted for 95% of total sales of BANGUR CEMENT whilenon trade sales was just 5%. BANGUR CEMENT registered its 55% sales of itstotal sales in its home market, Rajasthan. By selling within a smaller radius, thecompany was able to notch higher net realization because of lower logistics.MARKET SHARES: - Rajasthan-9%, Haryana-6%, Delhi-4%. 49
  50. 50. 2.16 COMPARISON OF POTENTIALITYOF VARIOUS CEMENT BRANDSCOMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS INRAJASTHANBRAND NAME SALES (IN MATRIC TONES)AMBUJA 121000ULTRA-TACH 145000BINANI 103000BANGUR 55000SHREE ULTRA 100000TUFF CEMENTO 40000J.K.LAXMI 83000ACC 17000MANGLAM 40000BIRLA CHETAK 81000J.K.SUPER 65000SHREE RAM 6000 50
  51. 51. COMPARISON OF POTENTIALITY OF VARIOUSCEMENT BRANDS IN RAJASTHAN (IN TRADE)BRAND NAME SALES (IN MATRIC TONES) JAIPUR DISTRICT JAIPUR LOCALAMBUJA 25000 17000ULTRA-TACH 26000 14000BINANI 12000 10000BANGUR 6500 4000SHREE ULTRA 8500 7500TUFF CEMENTO 4500 3000J.K.LAXMI 7500 5500ACC 4500 3000BIRLA UTTAM 4000 3000BIRLA CHETAK 5000 3000J.K.SUPER 6500 5000 51
  52. 52. Figure 2.8 COMPARISON OF POTENTIALITY OFVARIOUS CEMENT BRANDS IN RAJASTHAN (IN TRADE) 30000 25000 20000 15000 10000 5000 0 C AM I BI H O EM RA SU K I TU E E U R R A- A BA A N BI A U C XM C J. ETA J. NT J PE AC LT B U T LA T T TA G N LA FF U L E N H AM K. K. R C L R R BI U SH R JAIPUR DISTRICT JAIPUR LOCAL 52
  53. 53. PART-3 MARKET RESEARCH3 MARKETING RESEARCHMarketing research in the systematic gathering, recording and analyzing of dataabout problems connected with the market place i.e. H.P’s in order to findjustified solutions for the problem.IMPORTANCE• Consumer oriented marketing.• Effective managerial decision.• Identification of opportunities.• Reduces risk.• Stimulates sales.• Assessment of real image of company.• Integrating the company and consumer interest. 53
  54. 54. 3.1 CLASSIFICATION OF MARKETING REASEARCH1. Research on consumer• Studying consumer tastes, reactions and brand preference.• Customer satisfaction study.2. Research on market• Study on market size / potential / market growth.• Study on market segment.• Detailed market surveys.3. Research on distribution:• Measuring dealer reaction to the company and its products and services.• Distribution cost Analysis.4. Research on advertising effectiveness.• Studies on advertising effectiveness.• Studies on media.• Assessing and effectiveness and ad impact.• Studies on sales promotion effectiveness. 54
  55. 55. 3.1.1 PROCESS OF MARKETING RESEARCH PROBLEM FORMULATION DETERMINATION OF RESEARCH OBJECTIVE PLANNING AND CONDUCT FORMAL INVESTIGATION COLLECTION OF PRIMARY DATA DATA PROCESSING ANALYSIS AND INTERPRETATION REPORT WRITING FOLLOW UP 55
  56. 56. 3.2 RESEARCH METHODOLOGY3.2 RESEARCH METHODOLOGYResearch definition: Research is a process of systematic and in – depth study orsearch for any particular topic, subject by collection, compilation,presentation and interpretation of relevant details or data. Research refers to a search of knowledge. It is a scientific andsystematic search for pertinent information on a specific topic.• It is an art of scientific investigation.• Movement from known to unknown.• Voyage of discovery.• Original contribution to the existing socks of knowledge making for itsadvancement.The main aim of the project was to find out the market share of SCL and it’scustomers with respect to Jaipur (Rajasthan). The opinions of the customerswere taken by visiting various places and information was collected from thecustomers.3.2.1 DATA COLLECTION: 56
  57. 57. Data collection is the heart of all marketing research.It is an elaborate process through which the researcher makes a planned searchfor all relevant data and gathers the entire data required for the assignment.Primary data source: 1. Observation 2. Interview: - 3. Questionnaire: The project was started from the questionnaire. The questions are asked to respondents about their experiences towards SCL’S Brands and other competitors. The survey was conducted to know the market potential and market share for two-wheeler segment. Questionnaire contains both open ended and close-ended question.Secondary data source: 1. Internet: For this purpose different web sites have been used some of those are: - • www.google.com • www.shreecement.com 2. Newspapers 3. Reference book-Sampling method: - 57
  58. 58. 1. Probability / random sampling method 2. Non-probability sampling method For research purpose of project researcher selected the probability sampling. The population for our project was very large; it was not possible to meet every one so researcher select simple random sampling. Researcher had covered the Jaipur city.Sample size: -As considering the coverage of researcher takes the sample size as about 150dealers and divided this sample in equal strength to give same weight age for allareaStatistical technique used: -Here I have used Bar chart & pie chartScaling technique used: - For this purpose I have used different response of the customers like –excellent, satisfied, Not Satisfied. Other response is Good, Poor, Can’t say. Excellent Very Good Good Poor 58
  59. 59. 3.2.2 AREAS COVEREDAny study that is conducted has a scope. The scope here signifies thegeographical limits within which the study will be carried discrepancies in thestudy due to a large number of extraneous variables in the area.The market survey was conducted on the dealers, sub-dealers of cement brandsto measure the most potential brand in jaipur territory.The study was under SCL’S BRANDS jaipur. The geographical scope of mystudy was limited to the area of jaipur territory where by different area werecovered. • Mansarovar • Jagatpura • Pratap Nagar • Prithviraj Nagar • C-scheme • Vidhyadhar Nagar • Sirsi road 59
  60. 60. 3.2.3 DATA ANALYSISQ.1 Name the current cement brands you are aware of?AWARENESS 100 90 85 85 80 80 80 65 60 40 40 40 30 30 30 20 0 AWARENESS AMBUJA ULTRA-TECH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPERDuring the period of survey we interviewed 140 entrepreneurs doing small andbig business in respect to cement, we come to know that out of the total 140:• 90% of the people are highly aware of Ambuja.• 85% of the people are aware of Ultra-tech & Binani.• 80% of the people are aware of Bangur & Shree Ultra.• 65% of the people are aware of Tuff Cemento.• 40% of the people are aware of ACC & J.K.Laxmi.• 30% of the people are aware of Birla Uttam & Birla Chetak & J.K.Super. 60
  61. 61. Q.2 Name of the company of the brand you are aware of? 80 80 70 80 60 55 60 50 40 40 40 20 20 20 20 0 AWARENESS AMBUJA - AMBUJA ULTRA-TECH - ADITYA BIRLA GROUP BINANI - BRAJ BINANI GROUP BANGUR - SHREE CEMENT LTD. SHREE ULTRA - SHREE CEMENT LTD. TUFF CEMENTO - SHREE CEMENT LTD. J.K.LAXMI - J.K.GROUP ACC - ACC BIRLA UTTAM - B.K.BIRLA GROUP BIRLA CHETAK - M.P.BIRLA GROUP J.K.SUPER - J.K.GROUPDuring the period of survey we interviewed 140 entrepreneurs doing small andbig business in respect to cement, we come to know that out of the total 140:• 80% of the people are highly aware of Ambuja – Ambuja & Shree Ultra – Shree Cement Ltd.• 70% of the people are aware of Ultra-tech – Aditya Birla Group.• 60% of the people are aware of Bangur - Shree Cement Ltd.• 50% of the people are aware of Tuff Cemento – Shree Cement Ltd.• 40% of the people are aware of ACC - ACC & J.K. LaxmI -J.K.Group.• 30% of the people are aware of Birla Uttam – B. K. Birla Group & Birla Chetak – M.P. Birla Group & J.K. Super – J.K. Group.Q.3 Name the brands you deal with? 61
  62. 62. DEALING 50 50 40 40 40 30 30 20 20 10 10 10 5 5 5 5 0 DEALING AMBUJA ULTRA-TECH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPERIn respect of dealing with cement brand, we found that out of the total 140respondents: -• 50%of the people are dealing with ultra-tech.• 40%of the people are dealing with Ambuja & Binani• 30%of the people are dealing with Bangur.• 20%of the people are dealing with Shree Ultra• 10%of the people are dealing with Tuff cemento & J.K. Laxmi.• 5%of the people are dealing with ACC, Birla Uttam, and Birla Chetak, J.K. super. 62
  63. 63. Q.4 You are authorized dealer of ?AUTHORISED DEALER 25 25 20 15 15 15 10 10 10 5 5 4 5 2 2 2 0 AUTHORIZED DEALER AMBUJA ULTRA-TECH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPERFrom the following 140 respondents, it was analyzed that authorized dealerpertaining to various cement brands have been distributed as follows: -• 25 Authorized dealer of Ultra-tech.• 15 Authorized dealers of Ambuja & Binani.• 10 Authorized dealer of Shree Ultra & Tuff Cemento.• 5 Authorized dealer of Bangur & J.K. Laxmi.• 4 Authorized dealer of ACC.• 2 Authorized dealer of Birla Uttam, Birla Chetak & J.K. Supers.Q.5 Rank the following brands in quality terms: 63
  64. 64. TWO CATEGERY IN THE QWALITY (A & B)CATEGEY (A) 60 55 50 45 45 40 30 20 20 10 10 10 5 4 4 4 4 0 QUALITY AMBUJA ULTRA-TECH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPERAlso. In respect of quality of products it was observed that:• According to 55% people, of Ambuja is excellent.• Around 45% People told that quality of Ultra-tech & Binani is very good.• Around 20% of people told that quality of Bangur is very good.• 10% people told that quality of Shree Ultra & Tuff Cemento is good.• 5&4% J.K. Laxmi, ACC, Birla Uttam, Birla Chetak & J.K. Super is average.CATEGORY (B) 64
  65. 65. 50 50 50 40 40 40 40 30 30 30 20 10 10 10 10 10 0 QUALITY CATEGERY (B) AMBUJA ULTRA-TECH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPERAlso. In respect of Second quality of products it was observed that:• According to 30% people, of Ambuja & Ultra-tech is second-class quality.• Around 50% People told that quality of Binani & Bangur is second-class quality.• Around 40% of people told that quality of Shree Ultra, Tuff Cemento & J.K. Laxmi is Second class quality.• 10% J.K. Laxmi, ACC, Birla Uttam, Birla Chetak & J.K. Super is average quality of this product.Q.6 Have you seen the TV advertisement of cement brand’s?TV ADVERTISMENT 65
  66. 66. 100 90 80 70 60 45 45 40 30 20 20 20 5 5 5 5 0 TV (ADVERTISEMENT) AMBUJA ULTRA-TECH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPER• 90% of the people had seen the TV advertisement of Ambuja.• 70% of the people had seen the TV advertisement of Ultra-tech.• 45% of the people had seen the TV advertisement of Bangur & Binani.• 20% of the people had seen the TV advertisement of Shree Ultra & J.K. Laxmi.• 30% of the people had seen the TV advertisement of Tuff Cemento.• 5% of the people had seen the TV advertisement of Birla Uttam & Birla Chetak, J.K.Super & ACC.Q.7 Rank the following brands in price terms:Two category ‘A’ & ‘B’ 66
  67. 67. CATEGORY ‘A’ 80 70 60 40 35 35 20 7 7 7 7 2 2 2 2 0 PRICE A AMBUJA ULTRA-TECH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPERAlso. In respect of PRICE of products it was observed that:• According to 70% people told that price of Ambuja is very high price than other brands.• Around 35% People told that price of Ultra-tech & Binani is very high.• Around 7% of people told that price of Bangur Shree Ultra & Tuff Cemento, J.K. Laxmi is high.• 2% of the people told that price of ACC, Birla Uttam, and Birla Chetak & J.K. Super is high.CATEGORY ‘B’ 67
  68. 68. 60 60 60 45 45 45 40 30 30 20 10 10 10 10 0 PRICE B AMBUJA ULTRA-TECH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPERAlso. In respect of PRICE of products (in ‘B’ Category) it was observed that:• According to 60% people told that price of Binani & Bangur are include in second price than other brands.• Around 45% People told that price of Ultra-tech & Shree Ultra & Tuff Cemento price are normal than other brand’s.• Around 30% of people told that price of Ambuja, J.K. Laxmi is average.• 10% of the people told that price of ACC, Birla Uttam, Birla Chetak & J.K. Super price are low.3.2.4 FINDINGSAWARENESS 68
  69. 69. • Ambuja, Ultra-Tech, Binani, Bangur & Shree Ultra are highly aware brand injaipur city.• Tuff Cemento, J.K. Laxmi, Birla Uttam Birla chetak, J.K. Super & ACC are alsoreasonable awared.AWARENESS OF COMPANY WITH BRANDS• Ambuja, Ultra-Tech, Binani, Bangur & Shree Ultra & Tuff Cemento are highlyaware of brand with company in jaipur city.• J.K. Laxmi, Birla Uttam Birla chetak, J.K. Super & ACC are also reasonableawared.DEALING• Maximum dealers are dealing with Ambuja, Ultra-Tech, and Binani & Bangur.• Mainly dealers are dealing with multiple brands.• Retailers having good sale are authorized dealer of a company.QUALITY• Ambuja, Ultra-Tech & Binani are considered to be best quality product.• Shree Ultra, Bangur, Tuff Cemento, J.K. Laxmi, Birla Uttam Birla chetak, J.K.Super & ACC are also among good perception about quality.PRICE• Ambuja, Ultra-Tech & Binani are considered to be best price product in themarket (higher price than other product).• Shree Ultra, Bangur, Tuff Cemento, J.K. Laxmi, Birla Uttam Birla chetak, J.K.Super & ACC are also normal price in the market. PART-4 QUESTIONNAIRE 69
  70. 70. QUESTIONNAIREName of shop _____________________________Owner of Shop ____________________________Address ______________________________Dealership _______________________________Q.1 Name the current cement brands you are aware of?(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla UttamQ.2 Name of the company of the brand you are aware of?(A) Ambuja (Ambuja)(B) Aditya Birla Group (Ultra-tech)(C) Barj Binani Group (Binani)(D) Shree Cement Ltd (Bangur)(E) Shree Cement Ltd (Shree Ultra)(F) Shree Cement Ltd (Tuff Cemento)(G) J.K. Group (J.K.Laxmi)(H) ACC (ACC)(I) B.K. Birla Group (Birla Uttam)(J) M.P. Birla Group (Birla Chetak)(K) J.K. Group (J.K. Super)Q.3 Name the brands you deal with?(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla UttamQ.4 You are authorized dealer of?(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur 70
  71. 71. (E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla Uttam (J) Birla Chetak(K) J.K.SuperQ.5 Rank the following brands in quality terms:Two category ‘A’ & ‘B’(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla Uttam (J) Birla Chetak(K) J.K.SuperQ.6 Have you seen the TV advertisement of cement brand’s? (A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla Uttam (J) Birla Chetak(K) J.K.SuperQ.7 Rank the following brands in price terms:Two Category ‘A’ & ‘B’(A) Ambuja (B) Ultra-tech(C) Binani (D) Bangur(E) Shree Ultra (F) Tuff Cemento(G) J.K.Laxmi (H) ACC(I) Birla Uttam (J) Birla Chetak(K) J.K.SuperDEALERS / SUBDEALERS REPORT 71
  72. 72. S NAME OF FIRM WITH NAME OF DEALER SALE (P/M) BRANDNO. ADDRESS OWNER /SUBDEALE R 1 MAIHTA BUILDING MAHESH JI SUBDEALER 2000BAGE TUFF MATERIAL & SUPPLAIR CEMENTO (SHIRSHI ROAD) & JK LAXMI 2 RAKESH BUILDING RAKESH JI DEALER 3000BAGE BIRLA MATERIAL & SUPPLAIR UTTAM (MEENA WALA SHIRSHI ROAD) 3 JANU SALES JADGISH JI DEALER 3000BAGE JK LAXMI CORPORATION (MEENA WALA SHIRSHI ROAD) 4 CHANDN BULDING GYARASHI SUBDEALER 800 BAGE ULTRA- MATERIAL & SUPPLAIR LAL SHARMA TECH & (MEENA WALA SHIRSHI AMBUJA ROAD) 5 SHARMA BUILDING RAKESH JI SUBDEALER 900BAGE ULTRA- MATERIAL (MEENA WALA TECH SHIRSHI ROAD) 6 BAGDA BUILDING PARBHU JI SUBDEALER 1000BAGE ULTRA- MATERIAL (PACHAWALA BAGDA TECH SHIRSHI ROAD) 7 GAYATRI BUILDAING YOGESH JI SUBDEALER 2000BAGE BANGUR & MATERIAL & SUPPLAIR GUPTA AMBUJA & (PACHAWALA SHIRSHI BINANI ROAD) 8 BALAJI SALES PRALAD JI SUBDEALER 1000BAGE BIRLA CORPORATION SHARAMA UTTAM (PACHAWALA SHIRSHI &ULTRA- ROAD) TECH &SHREE ULTRA 9 BAGDA BUILDING RAMGOPAL JI SUBDEALER 2000BAGE ULTRA- MATERIAL (PACHAWALA BAGDA TECH& SHIRSHI ROAD) BANGUR& BINANI10 KATAREYA BUILDING RAM KARAN SUBDEALER 900BAGE ULTRA- MATERIAL (PACHAWALA JI KATAREYA TECH SHIRSHI ROAD) 72
  73. 73. 11 KHANDELWAL TRADERS SHYAM DEALER 3000BAGE AMBUJA (NIWARU ROAD 200 BY KHANDLAWA PASS) L12 ANIL TRADERS (LAXMI ANIL JI DEALER 9000BAGE ULTRA- NAGAR NIWARU ROAD TECH JHOTWARA)13 SHREE MAHA LAXMI SUBHAS JI DEALER 1000BAGE TUFF TRADERS (NEAR BY PASS AGRAWAL CEMENTO KALWAR ROAD KANTA)14 PUJA BUILDING PAPU JI SUBDEALER 300BAGE JK LAXMI MATERIAL (NIWARU ROAD & AMBUJA NETA JI KI CHKAKI)15 AGRAWAL TRADERS (A 26 KISHAN SUBDEALER 2500BAGE ULTRA- HEERA BADI NIWARU KUMAR TECH ROAD JHOTWARA) SHARMA16 RAJDHANI BUILDING SHYAM LAL SUBDEALER 700BAGE AMBUJA MATERIAL (SUDAMA SHENI MARG BHRAMPURI ROAD)17 LAXMI CEMENT AGENCY RAMKISHOR SUBDEALER 3500BAGE AMBUJA (SUDAMA MARG SHENI &ULTRA- BHRAMPURI ROAD NEAR TECH& JK KHURA)18 TRILOK BUILDING BABULAL SUBDEALER 800BAGE AMBUJA & MATERIAL SUPPLAIR SHENI JK (SHOP NO.132 133 SUDAMA MAREG)19 LAXMI BUILDING ANIL GOYAL DEALER 8000BAGE AMBUJA MATERIAL SUPPLAIR (279 SHIVAJI CHOK BHRAMPURI ROAD)20 SHENI SALES GOVIND RAM DEALER 2000BAGE BINANI & CORPORATION (SHOP JK WHITE NO.24 BHRAMPURI ROAD)21 MUNA TRADERS (BAGRU MUNA BHAI DEALER 400BAGE AMBUJA WALO KA RASTA)22 GARIB TRADERS (BAGRU MUNA BHAI SUBDEALER 500BAGE AMBUJA WALO KA RASTA AAKRI CHOORAHA) 73
  74. 74. 23 GOVIND STONE BUILDING LALU LAL SUBDEALER 2500BAGE AMBUJA (SUDAMA MARG &GOVIND BHRAMPURI KHURA KAI NECHAI)24 BALAJI TRADERS BHAWATI SUBDEALER 3000BAGE ACC & (VIDHYADHER NAGAR PARSAD ULTRA- NEAR SARKIL) TECH25 CHANTAHARAN BUILDING SHIV KUMAR SUBDEALER 2000BAGE AMBUJA MATERIAL (VIDHYADHER BIRLA NAGAR) WHITE26 GOVIND TRADERS (SHOP DINESH SUBDEALER 1800BAGE ULTRA- NO.7, 8 VIDHYADHER KUMAR TECH & NAGAR) AMBUJA27 SHREE SHYAM TRADING SUNILGUPTA DEALER 3000BAGE BANGUR & COMPANY (JAMES ULTRA- COLONI VIDHYADHER TECH & NAGAR) SHREE ULTRA28 SHREE RAM TRADERS VINEY SUBDEALER 2000BAGE BANGUR (NEYA KHIDA SHARMA &AMBUJA VIDHYADHER NAGAR)29 MACHIWAL AGENCYS (L S JUGAL DEALER 4000BAGE ULTRA- NAGAR NEYA KHIDA KISHOR TECH VIDHYADHER NAGAR) MACHIWAL30 VINAYAK CEMENT (NEYA DEEPAK SUBDEALER 2000BAGE BANGUR KHADA VIDHYADHER &AMBUJA NAGAR)31 JAIN TRADERS (A5 LS DOLAT SINGH DEALER 1700BAGE TUFF NAGAR NEYA KHADA CEMENTO VIDHYADHER NAGAR)32 JOYTI TRADING COMPANY GOPAL SUBDEALER 1000BAGE ULTRA- (VIDHYADHER NAGAR CHODHYRI TECH NEAR SARAKIL)33 BALAJI TRADERS (L S MAHANDRA DEALER 2000BAGE ULTRA- NAGAR VIDHYADHER SINGH TECH NAGAR)34 SHREE LAXMI CEMENT RAM LAL DEALER 7000BAGE AMBUJA AGENCY (SIKAR ROAD KUMAWAT NEAR 200 FIT BY PASS) 74
  75. 75. 35 BHARAT TRADING HARPHOOL DEALER 2000BAGE AAC COMPANY (SIKAR ROAD) SINGH36 SHREE LAXMI CEMENT LAXMI DEALER 7000BAGE ULTRA- BUIED PLAZA (SIKAR NARAYAN TECH ROAD NEAR 200 FIT BY PASS)37 SHREE LAXMI CEMENT SAGAR MAL DEALER 2000BAGE SHREE SUPPLAIRS (SIKAR ROAD ULTRA OPP. AOTOPAL)38 SHREE RAM CEMENT OM PRAKASH SUBDEALER 2000BAGE ULTRA- AGENCY (SIKAR ROAD TECH & DER KA BALAJI) J.K.LAXMI39 AASIWAL AGENCY (SIKAR RAJESH SUBDEALER 1500BAGE ULTRA- ROAD KHATHAN TECH & HOSPETAL) BINANI40 SHIV TRADERS (SIKAR RAKESH JI DEALER 2500BAGE J.K.LAXMI ROAD KHATHAN HOSPETAL)41 RAJENDER TRADERS RAJENDER JI DEALER 3000BAGE ULTRA- (SIKAR ROAD) TECH42 PARDEEP TRADERS JUGAL SUBDEALER 1500BAGE AMBUJA & (SIKAR ROAD) KISHOR ULTRA- TECH43 SAKHAWAT BUILDING GERIRAJ DEALER 4000BAGE ULTRA- MATERIAL (123 BANDU SINGH TECH NAGAR MURLIPURA SIKAR ROAD)44 NIRANIYA TRADERS ASHOK SUBDEALER 2000BAGE ULTRA- (MURLIPURA) NIRANIYA TECH & J.K.LAXMI & AMBUJA45 NAVEEN TRADING RAJ KUMAR SUBDEALER 1700BAGE ULTRA- COMPANY (MURLIPURA) TECH & J.K.LAXMI & AMBUJA46 RAMA AGENCY (D43 AII VINOD SINGH SUBDEALER 2000BAGE AMBUJA & BANDU NAGAR ULTRA- MURLIPURA) TECH 75
  76. 76. 47 GODEALA TRADING BADRI DEALER 6000BAGE BINANI COMPANY (ROAD NO.2 PARSAD MURLIPURA)48 DEEPAK MARBALS DEEPAK DEALER 1000BAGE AMBUJA (KALWAR ROAD 200FIT BY PASS)49 KIRAN SUPPLAIRS SANGRAM DEALER 3000BAGE ACC (KALWAR ROAD KATA SINGH ULTRA- PHANKA) TECH50 SEAKAWATY CEMENT JAY SINGH DEALER 2000BAGE ULTRA- UDAEG (KALWAR ROAD TECH KATA PHANKA)51 R.K. TRADERS (KALWAR RAM KUMAR DEALER 2000BAGE ULTRA- ROAD KATA PHANKA) TECH52 ANKIT TRADING AHKASH SUBDEALER 1000BAGE ULTRA- COMPANY (KALWAR TECH ROAD KATA PHANKA)53 GNAESH STONECOMPANY OM JI SUBDEALER 800BAGE J.K.LAXMI (KALWAR ROAD KATA PHANKA)54 HS HANUMAN DEALER 2500BAGE SHREE CORPORATION&BUILDING SHAYE ULTRA MATERIAL (KALWAR ROAD KATA PHANKA)55 MANISH TRADERS SITA RAM JI DEALER 2100BAGE ULTRA- (SUBIKISHA MOBILE TECH STORE KALWAR ROAD JHOTWARA)56 MAHALAXMI SALES P.K.SINGH DEALER 3000BAGE ULTRA- CORPORATION TECH (MEDICALCENTER KALWAR ROADJHOTWARA)57 BAJARNG BUILDING BAJARNG SUBDEALER 700BAGE ULTRA- MATERIAL (KEARDHANI LAL TECH NAGAR KALWAR ROAD)58 JAGDAMBA TRADING MOHAN LAL DEALER 2000BAGE ULTRA- COMPANY (SUBIKISHA TECH MOBILE STORE KALWAR ROAD) 76
  77. 77. 59 KUMAWAT TRADING S.N.KUMAWA DEALER 2000BAGE ULTRA- COMPANY (KALWAR ROAD T TECH KATA PHANKA)60 VESAVEKARMASTON CHOOTMAL DEALER 1700BAGE ULTRA- SUPPLAIRS (GOVINDPURA TECH KALWAR ROAD)61 VIJAYBUILDING SURESH DEALER 3000BAGE ULTRA- MATERIAL (RAVANGAT TECH KALWAR ROAD)62 KARDANI CEMENT UDUGH BASIDHAR DEALER 2000BAGE AMBUJA (SURJEET NAGAR KUMAWAT KALWAR ROAD)63 YADAV SALES GANAGARAM DEALER 2500BAGE BINANI CORPORATION JI (KEARDHANI NAGAR KALWAR ROAD)64 SANGEETA STONE SANJAY DEALER 1500BAGE J.K.LAXMI (KEARDHANI NAGAR KALWAR ROAD)65 MARWAL STONE HANUMAN JI DEALER 2000BAGE ACC SUPPLAIRS (CHANDR NAGAR KEARDHANI KALWAR ROAD)66 GOVIND BUILDING GOVINDRAM DEALER 2000BAGE ULTRA- MATERIAL (TAKYA KI TECH CHOOKI BAJARNG DAWAR KALWAR ROAD)67 GURU KRIPA BUILDING LAXMI DEALER 2000BAGE AMBUJA MATERIAL (KEARDHANI NARAYAN NAGAR KALWAR ROAD)68 SIANI BUILDING JAGDISH SUBDEALER 500BAGE J.K.LAXMI MATERIAL (MAN BAGH PARSAD RAMGADH ROAD DEHLI BY PASS) PART – 5 5.1 CONCLUSIONS • Quality and Brand image of the cement brands are having a significant relationship with one another. This is an important factor because good 77
  78. 78. quality helps in building the loyal customers due to which demand of that brand increases and dealers have to go with the brand whose demand is more.• There is no significant relationship between the profit margin and sales. As reputed brands are giving high sales even they are providing fewer profit margins. In other terms, in Volume based market dealers go with the brand which has high demand.• They say that if the sales are high then automatically we will be able to make a profit out of it and are able to earn the monetary benefits which companies gives on achieving the target sales. RECOMMENDATION• To build the strong brand image, SCL has to adopt aggressive marketing strategies. You should have a proper control on all the factors of 78

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