Rahul Budhia Final Report

Loyalty Program for Dealers and Retailers of
Ultratech Cement
2014
1
2013-2015
INTERNSHIP PROJECT REPORT
ON
Loyalty program for dealers and sub dealers of Ultratech cement
BY
Rahul Budhia
13A1HP050
DONE AT
Ultratech Cement Ltd
4th
Floor, Aditya Trade Centre
Ameerpet
Hyderabad-500038
Tel: +9104066430430
Project report is submitted in partial fulfilment of the requirements of
PGDM program of IMT Hyderabad.
SUBMITTED TO
Gautam Sen Jain Dr Sridhar Vaithianathan
(Marketing Manager, Ultratech Cement) (Professor, IMT Hyderabad)
DATE OF SUBMISSION
25/06/2014

Ultratech Cement
2014
2
2013-2015
INTERNSHIP PROJECT REPORT
ON
Loyalty program for dealers and sub dealers of Ultratech cement
BY
Rahul Budhia (13A1HP050)
SUBMITTED TO
Gautam Sen Jain Dr Sridhar Vaithianathan
(Marketing Manager, Ultratech Cement) (Professor, IMT Hyderabad)
DATE OF SUBMISSION
25/06/2014

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Authorization
Project report is submitted in partial fulfilment of the requirements of
PGDM program of IMT Hyderabad.

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Acknowledgement
I would like to express my deep gratitude to Dr Sridhar Vaithianathan, my Summer
Internship Program supervisor, for his patience, guidance, enthusiastic encouragement and
useful critiques for this internship project. I would also like to thank Mr. Gautam Sen Jain,
Internship Guide, Ultratech Cement Pvt. Ltd. for his advice and assistance in keeping my
progress on schedule. I also extend my gratitude to Mr. Prakash Pattanshetty, Regional
Head Ultratech Cement Andhra Pradesh.
I would also like to thank Sales officer and other employees of Ultratech Cement Pvt. Ltd for
their help in offering me the resources for the completion of this project.
It has indeed been a great learning both professionally and personally by working on this
project at Ultratech Cement Pvt Ltd.

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Summary
The report acts as a Loyalty meter for Ultratech Cement and will help us to understand the
loyalty level of Ultratech dealers and sub dealers in Hyderabad. It also tried to understand the
dealer’s satisfaction towards our services and schemes through a survey. This report will
benefit the students & researchers to study the cement industry and will also benefit the
company to understand the dealers’ perception about the brand and will help to make new
strategies. It will also help the dealers and sub dealers to communicate the difficulties in
receiving the benefits of scheme.
The questionnaire was made to find out dealers view on our services and scheme. The
respondents are asked to list out problems they had with the scheme and services of Ultratech
cement and to list out any improvements to company. The company can look to the
suggestion and other augments made by dealers and make improvement accordingly.
The findings of the study would help the company to strengthen the relationship with dealers
and understand the various scheme & services provided by the competitor to attract dealers.
Thus this study would provide a clear picture on the needs and preference of the dealers and
how it can be provided to improve their loyalty to the company.

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Abstract
The cement industry is experiencing a boom on account of the overall growth of the Indian
economy primarily because of increased industrial activity, flourishing Real-estate business,
growing construction activity and increase of investment in the Infrastructure sector.
Liberalization of the economy and Relaxation in the policy of the industry has led to
remarkable improvement in the indicators such as installed capacity, capacity utilization, per
capita consumption and exports. This has led to complete shift in the technology of
production in industry from wet process to dry process.
The competitiveness among the firms in Indian cement industry has also been evaluated for
the year 2012-13, out of the sample of seventeen firms (90.21% of the total market share);
about 47% have recorded above industry average performance in the overall competitiveness
index. The marginal difference between the competitiveness of different firms reveals the
tough competition in the industry.

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Table of Contents
Authorization 3
Acknowledgement 4
Executive summary 5
Abstract 6
List of illustrations 7-9
1. Introduction 10
1.1 Introduction to Cement Industry 11-15
1.2 Industry analysis 15-16
1.3 introduction to paint industry 16
1.4 Industry analysis of paint Industry 17-18
1.5 Introduction to steel Industry and industry analysis 19-20
2. About UTCL 20-21
3. Objectives 21
4. Factors 21
5. Methodology 22-23
6. Literature Review 23-24
7. Interpretation and Analysis 24-51
8. Inferences & Suggestions 51-53
9. Limitations 53
10. Conclusion 54
11. Attachments 55-58
12. References 59

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List of Tables
Table No Title Page No
1. No. of Respondent 25
2. Experience in cement Business 26
3. Product sold 27
4. List of Cement Brands 28
5. Sales quantity of cement/month (Tones) 29
6. Sales quantity of Ultratech Cement/ month 30
7. Quality of Ultratech Cement 31
8. Scheme of Ultratech Cement 32
9. Problem faced while receiving the benefit of scheme 33
10. Brand providing best Scheme 34
11. Cash per bag 35
12. Disbursement Method 35
13. Disbursement time for Gold 37
14. Tours & Tones Scheme 38
15. Gifts 39
16. Supply 40
17. Promotional Activities 41
18. Sales Follow up 42
19. Credit Facility 43
20. Packaging 44
21. Price 45
22. Margin 46
23. Schemes of other Brand 47-48
24. Analysis 50

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List of Figures
Figure No Title Page No
1. Market share 12
2. Supply chain of Cement Industry 14
3. Experience in cement Business 26
4. Product sold 27
5. List of Cement Brands 28
6. Sales quantity of cement/month (Tones) 29
7. Sales quantity of Ultratech Cement/ month 30
8. Quality of Ultratech Cement 31
9. Scheme of Ultratech Cement 32
10. Problem faced while receiving the benefit of scheme 33
11. Brand providing best Scheme 34
12. Cash per bag 36
13. Disbursement time for Gold 36
14. Tours & Tones Scheme 37
15. Gifts 38
16. Supply 40
17. Promotional Activities 41
18. Sales Follow up 42
19. Credit Facility 43
20. Packaging 44
21. Price 45
22. Margin 46
23. Danglers 53

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Introduction
The cement industry is experiencing a boom on account of the overall growth of the Indian
economy primarily because of increased industrial activity, flourishing real estate business,
growing construction activity, and expanding investment in the infrastructure sector. The
performance of the industry, under different policy regimes, truly establishes that decontrol of
the industry and liberalization of the economy has led to entry of number of players in
market.
For cement company that seeks to win in today’s market must track their dealer’s
expectations, perceive company performance and dealers satisfaction.
Dealer’s loyalty program would help the company to access the satisfaction level of dealers
with company’s services and schemes. While assessing the dealers loyalty level a company
must not conclude that it can get full picture of dealer satisfaction and dissatisfaction by
simply running complaints and suggestion. Therefore instead of using complaints level as
measure of dealer’s loyalty, we obtain a direct measure by conducting survey to access the
dealers’ loyalty towards the company. The questionnaire can be made to find out how they
fell about various aspects of the company’s performance. They can also solicit dealers view
on the competitor’s performance. The respondents are asked to list out problems they have,
had with the offer and to list out improvements they suggest to company. The company gives
a close look to suggestion and other augments made by dealers and make improvement
accordingly.

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Introduction to the Cement Industry
Cement is an essential component of infrastructure development and most important input of
construction industry. Being one of the basic elements for setting up strong and healthy
infrastructure, Cement plays a crucial role in economic development of any country. Having
more than a hundred and fifty years history, it has been used extensively in construction of
anything, from a small building to a mammoth multipurpose project.
Industry product- There are different varieties of cement based on different compositions
according to specific end uses, namely, ORDINARY PORTLAND CEMENT, PORTLAND
POZZOLANA CEMENT, WHITE CEMENT, PORTLAND BLAST FURNACE SLAG
CEMENT and SPECIALISED CEMENT.
Current Industry Scenario
 The Indian cement industry is the second largest producer of cement in the world just
behind China.
 Today there are 130 large cement plants and more than 300 mini cement plants
operating in India, producing cement under different brands and grades
 It is consented to be a core sector accounting for approximately 1.3% of GDP.
 CAGR (FY13)- 10.4 %
 Employment -0.20 Million People
 Also the industry is a significant contributor to the revenue collected by both the
central and state governments through excise and sales taxes.
 Since cement is a high bulk and low value commodity, competition is localized
because the cost of transportation of cement to distant markets often results in the
product being uncompetitive in those markets.
 The cement industry produces 5% of global man-made carbon dioxide, a major gas
contributing to climate change (WBCSD 2005).

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Top Players in Industry
Some of the major players in the cement industry include ULTRATECH CEMENT, ACC,
GUJARAT AMBUJA CEMENT LIMITED , JK Cement, THE INDIAN CEMENT, SHREE
CEMENTS, MADRAS CEMENTS, LAFARGE and BIRLA CEMENT and BINANI
CEMENT to name a few.
The top five players are controlling over 60% of the total industry capacity. Hence the
cement market can be considered as a concentrated market with a few large players
dominating the market share. Ultratech cement is market leader of the capturing around 22 %
of market share.
Ultratech Cement- Capacity of 57 Million Tones .Plants located in M.P, Punjab, Rajasthan,
Tamil Nadu & Gujarat. With the acquisition with L&T, Ultatech has now become world’s
seventh largest cement producer and market leader in India.

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ACC- Capacity of 22.4 Million Tones. It has 12 manufacturing plants all over India with
export to SAARC country. Product portfolios are Portland cement, Composite Cement and
Special cement.
Ambuja - Capacity of 18.5 Million Tones. Ambuja cement was set up in 1986 in
Chandrapur, Maharashtra. The group has clinker manufacturing facilities at Himachal
Pradesh, Gujarat, Maharashtra, Punjab and Rajasthan.
Jaiprakash Associates Ltd-Capacity of 14.70 Million Tones. Jaiprakash Associates Ltd now
known as JAL is a part of Jaypee Group. Company manufactures OPC & special blend of
Pozolana Portland cement and has plants in Rewa & Bela (Madhya Pradesh) and Sava Kurd
(Uttar Pradesh)
Madras Cement-Capacity of 5.47 Million Tones. Madras cement is one of the oldest cement
companies in southern India and is a part of Ramco group. Company has 3 plants in Tamil
Nadu, one in Andhra Pradesh and one mini plant in Karnataka.
The India Cement - Capacity of 9 Million Tones. India cement is largest cement producer in
south India. Plants in Andhra Pradesh and Tamil Naidu. Product portfolio is blended cement,
ordinary Portland cement.
Lafarge India- Lafarge India put ltd a subsidiary of Lafarge group has capacity of 5.5
Million Tones. Product portfolio Portland slag cement, Ordinary Portland cement and
Portland Pozzana cement. It exports clinker cement to Bangladesh and Nepal. Lafarge has
become the largest cement selling firm in West Bengal, Bihar and Jharkhand.
Birla Cement Corporation Ltd –The Company has two plants in Madhya Pradesh and
Rajasthan, one each in U.P and West Bengal. Large Quantity of cement is exported in Nepal
and Bangladesh. The company is setting up its captive plant to remain cost competitive.
Product portfolio includes Ordinary Portland Cement, Portland Pozzana cement, Portland
Slag cement, low heat cement and Sulphate resistant cement.

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Mining
(Limestone and
other materials)
Waste Recovery
(Fly Ash and
Slag)
Supply Chain of Cement Industry
Supply chain of cement Industry
Pr-
Cement is manufactured through a closely controlled chemical combination of calcium,
silicon, aluminum, iron and other ingredients. Common materials used to manufacture
cement include limestone, shells, and chalk or marl combined with shale, clay, slate, blast
furnace slag, silica sand, and iron ore. These ingredients, when heated at high temperatures
form a rock-like substance that is ground into the fine powder to prepare ordinary Portland
cement (OPC). Fly ash is added to the OPC to prepare Portland pozolana cement and slag
ash is added to OPC to prepare Portland slag cement.
Dry process- Hard raw materials like clinker or blast furnace slag are first crushed in ball
mills then dried and stored. Crushing is done by crusher and then drying is done by rotary
kiln.
Wet process- Limestone and clay is washed, mixed in proper combination to get slurry. The
slurry is then fed into rotary kiln for drying
Dry process is widely used because less energy is utilized and easy control over the
proportion of raw materials
EE
Cement Plant
(Gypsum is
added)
Process
1) Ordinary Portland
cement
2) Portland Pozlana
cement
3) Portland Slag Cement
4) Other Blended
Cement
Raw Materials
Dry Process
Wet Process
End Product

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Fluxing agent
Calcareous (Limestone) +Argillaceous (clay/shale) Clinker +Gypsum
1500 c
Cement
Industry Analysis
Porter’s five forces model
Rivalries among existing player
1) Few firms control the market - Low
3) Low differentiation -High
4) Low switching cost - High
The combination of above factors leads to moderate rivalries in global cement industry
Threat of substitute product
1) No close substitute in India -Low
2) Engineering plastic provide some elements
3) Strength provided by cement cannot be substituted
Industry does not face a credible threat of competition and has very low threat of substitution.
Barriers to the entry
1) Economies of scale exist- High
2) Capital Intensive- High
3) Access to the distribution channel is low-High
4) Switching cost to buyer is very low- Low
5) Supportive government policies- Low
Due to high capital intensive and economies of scale, overall cement industry has high
barrier to entry
Bargaining power of supplier

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1) Fully integrated cement plants- Low
2) Lime stones mines under the control of government- High
3) Usage of limestone to produce mortar, fertilizers- High
Companies with fully integrated plants should rely on government for allocation of limestone
mines and other companies should rely on local raw material supplier giving high bargaining
power to supplier.
Bargaining power of buyer
1) No. of buyers are high -Low
2) High demand due to improvement in infrastructure -Low
3) High concentration on local market – Low
In cement industry the buyer has minimal bargaining power; buyers normally act as price
taker.
Introduction to Paint industry
Paints and coatings market is highly correlated with various end-user sectors like housing,
construction, automotive, furniture, and packaging. The paints sector is raw material
intensive, with over 300 raw materials (50% petro-based derivatives) involved in the
manufacturing process. Since most of the raw materials are petroleum based, the industry
benefits from softening crude prices. First paint industry in India was initiated in 1902 by
Shalimar paints in Kolkata.
Current scenario
 The paint industry is expected to grow at 12-13% annually over the next five years
from Rs 280 billion in FY13 to around Rs 500 billion by FY18.

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 The unorganized sector controls around 35% of the paint market, with the organized
sector accounting for the balance.
 In the unorganized segment, there are about 2,000 units having small and medium
sized paint manufacturing plants. Top organized players include Asian Paints,
Kansai Nerolac, Berger Paints and ICI.
Products
Demand for paints comes from two broad categories:
Decorative: Major segments in decorative include exterior wall paints, interior wall paints,
wood finishes and enamel and ancillary products such as primers, putties etc. Decorative
paints account for over 77% of the overall paint market in India. Asian Paints is the market
leader in this segment. Demand for decorative paints arises from household painting,
Architectural and other display purposes. Demand in the festive season (September-
December) is significant, as compared to other periods. This segment is price sensitive and is
a higher margin business as compared to industrial segment.
Industrial: Three main segments of the industrial sector include automotive coatings,
powder coatings and protective coatings. Kansai Nerolac is the market leader in this segment.
User industries for industrial paints include automobiles engineering and consumer durables.
The industrial paints segment is far more technology intensive than the decorative segment.
Industry Analysis of Paint Industry
Porters five forces model
Threats to new entrants
1) High Brand equity – High
2) High working capital – High
3) Strong Distribution network – High

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4) Low capital intensive- Low
5) Low government interference- Low
Brand, distribution network, working capital efficiency, and technology play a crucial role.
Hence threat of new entrant is high
1) Minimal close substitute - Low
2) Uses of Lime wash in rural area- Low
3) Wall paper could be a threat – High
Availability of substitute in Indian Paint Industry is Low
1) Raw material intensive industry- High
2) Tio2 facing global supplies shortage- High
3) No threat of forward integration- Low
Bargaining power of supplier is moderate as many of the industry is fully integrated
1) No. of buyers are high-Low
2) No threat of backward integration- Low
3) Buyers are price sensitive- High
4) High Product differentiation-High
Due to availability of high choice bargaining power of buyer is high
1) Large no. Of local players - High
2) Unbalance competition -High
3) High industry growth rate- Low
There are large no of players in paint industry but due to current market growth there is
ample opportunity hence the rivalries among the competitor is Moderate.

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Introduction to Steel Industry
Current market scenario
 India ranks 4th
in the world with market value of USD83 billion
 Production of 450 million tonnes, 50 % is exported
 Tata steel, Jindal steel, JSW steel, Essr steel, Bhusan power & steel ltd, Lloyd steel,
Steel authority of India ltd is the major players
Industry Analysis
Porters Five Forces Model
Threats to new entrants
1) Economies of scale exist- High
2) Capital Intensive- High
3) Low product differentiation- Low
5) Supportive government policies - Low
Due to high capital intensive and economies of scale, overall cement industry has high barrier
to entry.
1) No close substitute- Low
2) Use of aluminium, Titanium- High
3) PVC Pipes- High
Use of aluminium, titanium and PVC pipes provide Moderate threat of substitute
1) Fully integrated cement plants- Low
2) Iron ores are scarce resource- High
3) Control of iron ores mines by government- High

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Companies with fully integrated plants should rely on government for allocation of iron ore
mines giving high bargaining power to suppliers
1) No. of buyers are high - Low
2) High demand due to improvement in infrastructure- Low
3) Increasing demand of steel – low
1) Competition from foreign player- Low
2) High exit barrier- Low
3) Low differentiation - High
Moderate Rivalries among existing Players
About Ultratech Cement Pvt Ltd
Ultratech Cement is India’s largest and the world's 10th largest manufacturer of cement and
clinker. Its state-of-the-art manufacturing facilities produce products and services that have
aided growth not only in urban areas but also in the rural interiors of the country. Ultratech as
a brand is an embodiment of ‘strength’ and ‘reliability’. These traits have inspired engineers
to further use their imagination, which has resulted in a more extensive realm of possibilities.
UltraTech Cement is part of the US $40 billion Aditya Birla Group. The company has 11
integrated cement plants, 15 grinding units and 6 bulk terminals with an installed capacity of
more than 60 Million Tons Per Annum (MTPA) with an expected increase of 10 MTPA by
FY 15.
UltraTech Cement provides a range of products that cater to all the needs from laying the
foundation to delivering the final touches. The range includes Ordinary Portland Cement,
Portland Blast Furnace Slag Cement, Portland Pozzalana Cement, White Cement, Ready Mix
Concrete, building products and a host of other building solutions. White cement is

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manufactured under the brand name of ‘Birla White’, Ready Mix Concretes under the name
of ‘UltraTech Concrete’ and new age building products under the name of ‘UltraTech
Building Products Division’. The retail outlets of UltraTech operate under the name of
‘UltraTech Building Solutions’.
Vision and Values
Mission- To deliver superior values to our customer, shareholders and society at large
Vision - To be a premium global conglomerate, with a clear focus on each of the businesses.
Values - People contribute when they relate to an organization and they relate when they
understand the organization. People understand its organizations through its values. Integrity,
Commitment, Passion, Seamlessness & Speed together constitutes the Values of Aditya Birla
Group.
Objectives
 To identify the factors that strengthen the relationship between company and its
dealers
 To find our dealers satisfaction level towards services and schemes of Ultratech
Cement.
 To analyze the factors that affects the dealer’s preference in dealing with cement.
 Analyze the perception of dealers & sub dealer on loyalty program of Ultratech and
other companies of related business.
Factors
The report will mainly help the company to understand the satisfaction level of their dealers
and retailers about the services and scheme provided by the company. This research will
benefit the company to understand the dealers & make new strategies.

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It will help the dealers and sub dealers to communicate the difficulties in receiving the
benefits of scheme. The project highlights the scope for future improvements on the basis of
present scale.
Methodology
Research methodology describes how the research study was undertaken. This includes the
specifications of source of data, research design, and method of data collection, the sampling
method and the tools used.
SAMPLE DESIGN:
Geographical area:
The study is conducted in different areas of Hyderabad.
Duration of project:
The duration of project work is about 14 weeks
Population:
Population for this research is the dealers and retailers of Ultratech Cement in Hyderabad.
Sample size:
The number of samples collected by the researcher is 120 dealers
Sampling procedure / Sampling method:
The sampling method used for this study is non-profitability convenience sampling, which is
selected according to the easy and convenience.

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SOURCE OF DATA
Primary data:
The data is collected by direct survey from the dealer’s through questionnaire. The researcher
used structured questionnaire.
Secondary data:
Here the researcher collected secondary data from the company profile, industry profile and
official web sites.
RESEARCH INSTRUMENT:
Questionnaire
The questionnaire is prepared in a well-structured and non disguised form so that it is easily
understandable and answerable by everyone. The type of questions include in the
questionnaire are open-ended questions, multiple choice questions and likert scale questions.
Literature Review
Philip Kotler quotes “Successful go-to-market strategies require integrating retailers,
wholesalers and logistical organisation”. For many companies, making the product doesn’t
cost as much as bringing it to the market! How can a company bring its new products into the
market? Every company has to figure out a go-to-market strategy the company would hire
salespeople to sell to distributors, wholesalers, retailers, or directly to final users.
General Electric Before the late 1990, GE operated a traditional system of trying to load its
Dealers with GE Applications. Later GE’s made change in its service to dealers by providing
them order- Processing system 24 hours a day, they get GE’s best price, GE financing, and no
Interest charge for first 90 days. In exchange, dealers must commit to selling 9 major GE
products Categories, generating 65 percent of their sales in GE products. Dealers-distributors
have faced mounting pressures in recent years from new source of competition. The company
Providing service at satisfaction level to dealers are most successful in market.

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Geoff cousins managing director of Jaguar cars says “dealers satisfaction generate the sales
growth and profitability” In schwacke’s 2007 brand monitoring survey, the jaguar brand in
Germany achieved first place for overall dealer satisfaction. More than 1,000 dealers were
questioned regarding their satisfaction with their brand and Jaguar came first not only in the
overall ranking but also in the important category which showed an improvement of eight
places.
HONDA motorcycle & scooters (HMIS) and Honda cars (HSCI) rank highest in dealer
satisfaction with their principals in the two-four wheeler industry segments, respectively,
according to the findings of the ‘2005 dealer satisfaction study’. The study represents the
responses of more than 1,200 two-and four-wheeler dealers to the key areas of product,
management relationship, profit margin, order and delivery, after-sales and parts support,
warranty. Ranking for the study are done at the industry segments-level to provide
comparisons among similar group of dealers. The key building partners is to focus on the
The study conducted reveals that the dealers also are concerned about the tactical issue like
advertising, branding and warranty
Research Analysis and findings
It is very essential to conduct surveys that try to extract the dealers and retailers perceptions
of a brand there by providing us with desired results so as to provide the organization with
necessary and relevant recommendations, so that the organization maintains a sustainable
competitive edge over the others in cement industry. Using the appropriate kind of
questionnaire and interviews, a proper sequence of related practical facts based on dealers
and retailers perceptions can be arrived which is very important for an organization to
understand where it stands in terms of dealers loyalty and necessary steps can be taken to
maintain, or to benchmark certain parameters of vital importance and to enhance its loyalty
which in the long run can prove to be an asset to sustain and enhance the profit of the
organization.

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The Survey has been done in 3 Phases covering different areas of Hyderabad Andhra
Pradesh. Phase 1 survey constitutes the Dealers and Retailers of Uppal, Nacharam, LB
Nagar, Madhapur, Krishnanagar and Gachibowli. Phase 2 constitutes the Dealers and
Retailers of areas like Kukatpally, Lingampally, Himayathnagar, Khirtabad and Chintal.
Phase 3 constitutes the dealers and retailers of Bowenally, Medhchal, Old city, Mehdipatnam,
Towli chowki, Atapur and Shamsabad. This will help us to analyse the area wise problem of
Dealers and retailers of Ultratech cement
The collected sample is mainly targeted towards the dealers and retailers of Ultratech cement.
The sample consists of both high volume and low volume counters of Ultratech cement.
Surveys have been performed after translating the questionnaire in local language (Telugu)
and Hindi from English. Every question has been explained clearly and filled according to
answers given by the dealers and retailers of ultratech cement. This helped in gathering best
possible answers to the questionnaire by reducing the errors like researchers’ bias.
Interpretation and analysis
No of Respondent
The below table states the no of respondent were taken for the survey. We have taken around
95 Retailers, 20 Non Exclusive Dealers and 5 Exclusive Dealers. The no. of Retailers are
more because they directly deal with the end customers and plays a very important role in the
supply of product to end customers .Exclusive dealers are loyal to company and the survey
helped us to find their satisfaction. Non exclusive dealers supply materials to retailers and
play an important role in supply of the material.
Table 1: No. of Respondent
Retailers 90
Non Exclusive Dealers 25
Exclusive Dealers 5

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Experience in Cement Business
Of about 120 dealers 79% are having above ten years and 28% are in the business of about 5-
10 years. The other 4% have 3-5 years of and the rest 7% of the dealers have 1-3 years.
Counter with above 5 years of is in majority because to get suggestion from the d dealers.
Table 2 – Experience in cement Business
Figure - 4
S.No Criteria No. of respondents % of respondents
1. < 3 years 8 7%
2. 3-5 years 5 4%
3. 5-10 years 28 28%
4. Above 10 years 79 79%
Total 120 100

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Product sold
Majority of them wants to sell steel with cement because of common customer base, both
steel and cement are important for construction. They also prefer steel because Cement is a
low margin product and steel provides better margin, can act as compensation. Around 10%
dealers also prefer paints, 5% prefer selling sanitary and tiles and around 22 dealers sells only
cement.
Table 3 - Product sold
S.No Products No. of respondents % of respondents
1. Cement 118 55%
2. Steel 64 30%
3. Paints 21 10%
4. Others( Sanitary, Tiles) (7,4) 5%
Total 120 100
Figure 5

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List of Cement Brands
About 26% of our retailers sell Jaypee, Bharti, Priya and Raasi gold is sold by 15 %.
This shows the Good demand of these products in the market. ACC, C.King and KCP are is
sold by around 10 % of our retailers. The list also contains 5 exclusive dealers.
Table 4- List of Cement Brands
S.No Brands No. of respondents % of respondents
1. ACC 30 11%
2. Bharti 43 15%
3. Jaypee 73 26%
4. Priya 43 15%
5. C. King 23 8%
6. KCP 24 9%
7. Others( Rassi gold, Dalmia, Juari) 35,12,10 16%
Figure 6

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Sales quantity of Cement per month
We have considered the counters above 500 tones as High volume dealers. Around 47 % of
counter is high volume and remaining 53 % are low volume counters. This ratio helps us to
get the suggestion from both high volume and low volume counters.
Table 5 – Sales quantity of cement/month (Tones)
S.No Quantity(tones) No. of respondents % of respondents
1. <100 15 13%
2. 100-300 28 23%
3. 300-500 21 18%
4. 500-1000 31 26%
5. >1000 25 21%
Total 120 100
Figure 7

Ultratech Cement
2014
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Sale quantity of Ultratech Cement /month
The table shows the sale quantity of Ultratech cement per month by our dealers and retailers.
About 90% sell less than 300 tones and only 2 % sell above 1000 tones of ultratech cement.
So only 2% are in high volume.
Table 6 – Sales quantity of Ultratech Cement/ month
S.No Quantity (Tones) No. of respondents % of respondents
1. < 100 70 58%
2. 100-300 38 32%
3. 300-500 9 8%
4. >500 3 02%
Total 120 100
Figure 8

Ultratech Cement
2014
31
Quality of Ultratech Cement
The below table shows what our dealers and retailers think about the quality of Ultratech
Cement. Around 95% think that Ultratech Cement quality is good and are satisfied with the
quality.
Table 7 – Quality of Ultratech Cement
Figure 9
1. Extremely Good 99 83%
2. Very Good 9 8%
3. Good 8 7%
4. Neutral 1 1%
5. Bad 1 1%
6. Very Bad 2 2%
7. Extremely bad 0 0%
Total 120 100

Ultratech Cement
2014
32
Scheme of Ultratech Cement
The table below shows the Dealers and Retailers rating to our scheme. Around 50 % think
that our scheme is good and 15% think that the scheme is neutral and more than 35% think
that scheme should be improved.
Table 8 – Scheme of Ultratech Cement
1. Extremely Good 13 11%
2. Very Good 20 17%
3. Good 27 23%
4. Neutral 18 15%
5. Bad 23 19%
6. Very Bad 18 15%
7. Extremely bad 1 1%
Total 120 100
Figure – 10

Ultratech Cement
2014
33
Problems faced while receiving the benefit of scheme
The table explains the problems faced by our dealers and retailers while receiving the benefit
of the scheme. Around 26 % say that single dealership tie up and no clarity about the
benefit.19% say that they don’t receive scheme in time .10 % say that they have never
Received the Scheme and 9 % say that they don’t have any Problem while receiving the
benefit.
Table 9 –Problem faced while receiving the benefit of scheme
S.No Criteria No. of respondents % of
respondents
1. Single Dealer Tie
up
47 26%
2. No Clarity about
the benefit
49 27%
3. Lengthy Process 13 7%
4. Not in time 35 19%
5 Others ( never
received scheme,
No problem)
36 20%
Figure 11

Ultratech Cement
2014
34
Brand Providing Best Scheme
The below table shows the brand preferred by retailers and dealers on scheme. About21%
says Ultratech scheme is the best. According to 20 % of retailers Raasi gold scheme is best.
Bharti is preferred by 16 % and Jaypee 18%
Table 10 – Brand providing best Scheme
Figure 12
S.No Brands No. of respondents % of respondents
1. ACC 8 7%
2. Bharti 19 16%
3. Jaypee 20 17%
4. Priya 3 3%
5. C. King 8 7%
6. Ultartech 25 21%
7. Others( Rassi gold, Dalmia, Juari) 30,3,4 31%

Ultratech Cement
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35
Details of scheme
Cash
The below table shows the Cash per bag required by the dealers and retailers. Majority of the
counters receive Rs3 to 5 per bag. About 11% receive the cash less than Rs 3 per bag. Almost
all the dealers and retailers prefer the brand which provides cash as a scheme. Almost 84%
receive cash scheme through cheque and remaining 12 % receive through RTGS.
Table 11 – Cash per bag
S.No Cash No. of respondents % of respondents
1. < 3 25 21%
2. 3-5 83 64%
3. >5 14 12%
4. None 0 0%
Total 120 100
Table 12 - Disbursement Method
S.No Disbursement Method No. of respondents % of respondents
1. Cheque 101 84%
2. Cash 19 16%
Total 120 100

Ultratech Cement
2014
36
Figure 13 – Cash and Disbursement Method
Gold
The below table shows the disbursement time of Gold. Around 46 % of the respondent
doesn’t receive Gold as a scheme; most of them receive as a gift. 28 % of respondent receive
gold annually. 2 % receive quarterly and 6% receive it monthly.

Ultratech Cement
2014
37
Table 14 - Disbursement time for Gold
S.No Gold No. of respondents % of respondents
1. Monthly 7 6%
2. Quarterly 14 12%
3. Half yearly 11 9%
4. Annually 33 28%
5. No Gold scheme 55 46%
Total 120 100
Figure 14 - Gold Disbursement Time
Tours & Tones Scheme
The Table below shows the Tour scheme provided by different brands to their retailers and
dealers. Around 71% of respondent has never received tour scheme. Around 13 % of our

Ultratech Cement
2014
38
respondent received International scheme 7 % received domestic scheme and 9 % received
both domestic & international scheme.
Table 15 – Tours & Tones Scheme
S.No Tour No. of respondents % of respondents
1. International 15 13%
2. Domestic 8 7%
3. Both 10 9%
5. No Tour Scheme 80 71%
Total 120 100
Figure 15 – Tours & Tones Scheme

Ultratech Cement
2014
39
Gifts
The table shows the gifts received by dealers. Around 86 % of the dealers received small gifts
like Kitchen Appliances, Watches and other home appliances. Only 5 % received LED TV
and Mobile Phone.
Table 16 – Gifts
S.No Gifts No. of respondents % of respondents
1. LED TV 6 5%
2. Mobile Phone 7 5%
3. Money Counting Machine 5 4%
5. Others (small gifts) 111 86%
Total 120 100
Figure 16 - Gifts

Ultratech Cement
2014
40
Services
Supply
The table below shows the rating of Ultratech cement supply by our dealers and retailers.
Around 70% of our respondent is not satisfied with our supply of material and only 25% say
that they are satisfied with the supply of material.
Table 17 – Supply
1. Extremely Satisfied 15 13%
2. Very Satisfied 16 13%
3. Satisfied 6 5%
4. Neutral 8 7%
5. Unsatisfied 8 7%
6. Very Unsatisfied 29 24%
7. Extremely Unsatisfied 38 32%
Total 120 100
Figure 17 – Supply

Ultratech Cement
2014
41
Promotional Activities
The table shows the rating of promotional activities of Ultratech cement by our dealers and
retailers. About 63% are satisfied with our promotion activities and 33% respondent think
that the promotional activities are not in time
Table 18 - Promotional Activities
3. Satisfied 8 7%
4. Neutral 3 3%
5. Unsatisfied 15 13%
Total 120 100
Figure 18 – Promotional Activities

Ultratech Cement
2014
42
Sales Follow up
The table shows the rating of Sales Follow up by our dealers and retailers. About 80% of our
respondent is satisfied with the Promotional Activities and 10 % says that they are not
satisfied with the promotional activities.
Table 19 – Sales Follow up
3. Satisfied 7 6%
4. Neutral 3 3%
5. Unsatisfied 7 6%
Total 120 100
Figure 19 – Sales Follow up

Ultratech Cement
2014
43
Credit Facility
The table below shows the rating of Credit facility provided by Ultratech Cement to our
Dealers and Retailers. About 33% respondent say that our Credit facility is similar as of other
brand and 20 % are not satisfied with our credit facility.
Table 20 – Credit Facility
3. Satisfied 9 8%
4. Neutral 39 33%
5. Unsatisfied 6 5%
Total 120 100
Figure 20 – Credit Facility

Ultratech Cement
2014
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Packaging
The below table shows the rating of Packaging by Ultratech Cement. More than 80% are
satisfied with the packaging of Ultratech and 20 % are not satisfied with packaging.
Table 21 – Packaging
3. Satisfied 3 3%
4. Neutral 1 1%
5. Unsatisfied 4 3%
Total 120 100
Figure 21- Packaging

Ultratech Cement
2014
45
Price
The below table shows the rating of Price of Ultratech Cement by Dealers and Retailers.
About 70% are satisfied with Price of Ultratech. Ultratech Cement charging the premium
price about 30% is not satisfied with the price of the brand
Table 22 – Price
3. Satisfied 16 13%
4. Neutral 5 4%
5. Unsatisfied 7 6%
Total 120 100
Figure 22 – Price

Ultratech Cement
2014
46
Margin
The below table shows the Rating of Margin of Ultratech Cement by Dealers and Retailers.
Around 70% are unsatisfied with margin of Ultratech Cement. Most of Ultratech Retailers
depends upon the scheme provided by the company. Only 30% are satisfied with scheme of
Ultratech Cement.
Table 23 - Margin
3. Satisfied 10 8%
4. Neutral 10 8%
5. Unsatisfied 7 6%
Total 120 100
Figure 23 - Margin

Ultratech Cement
2014
47
Schemes for other Brands
Jaypee-
Rs 3 for less than 100 Tones and Rs 4 for above 100 tones (Cheque every Quarterly)
Provide gold as a gift to high volume retailers
Gifts like Watch, kitchen appliances with dealers meeting at least twice a year.
Bharti –
Cash Rs 4 per bag and Rs 5 above 200 Tones
Dealers meeting twice a year
Gold annually as a Gift
Gift watch and kitchen Appliances
Ramco-
Above 5o tones Rs 5 per bag (Twice a year)
Technical Meeting thrice a year
Gifts like Cap, Pen, and bag and Tiffin box
Dalmia (FOR Dealers)
Above 5 Rs
2 months 300 Tones- Bike
Dealer’s entertainment Programme
ACC
Rs 2.5 per bag (every half yearly)
Domestic and international tour for high volume dealers
Gifts like Books, diaries, Pen stand, paper weight, Table fan and clock

Ultratech Cement
2014
48
Chettinand
Scheme only for dealers
Gold every Annually
International Tour
Maha cement
Above Rs 5 per bag (every quarterly)
T-shirts, Pen, Books
Juari
Rs 4 per bag Every 6 months
International Tour to dealers
Regular dealers and technical meeting
Raasi Gold
200 bag – Rs 3, 200 to 500 bag- Rs 4, above 500bags – Rs 5 ( Every 2 months cheque)
Suitcase, Water cooler
C. King (Dealers)
Above 100 tones – Rs 4 (Every month) and Rs 1 per bag annually Discount above 500
Tones
Gold quarterly
Gift kitchen Appliances, Dinner set ipl match tickets

Ultratech Cement
2014
49
STATISTICAL TOOLS
The analysis performed was mainly comparative analysis using statistical analytical
tools. The tools that have been used are as follow-
PERCENTAGE
Percentage refers to special kind of ratio, are used in Marketing Comparison between two or
more series of data. Percentage is issued to describe relationship by reducing everything
to a common base & allow meaningful comparison to be made.
RANKING METHOD
This type of analysis is particularly useful when the purpose of the question is to identify the
preferences of the sample respondents among different choices. The ranking was in the order
of 1 for most important and 6 for the least important. While doing the analysis the first rank
was given a weightage of 5 and the least rank was given the Weightage of 1.The rank
assigned by all the respondents was cumulated using the weighted score. Accordingly, the
satisfaction factor with the larger cumulative weightage was ranked number 1 and so on.
WEIGHTED AVERAGE
An average in which each quantity to be averaged is assigned a weight. These weightings
determine the relative importance of each quantity on the average. Weightings are the
equivalent of having that many like items with the same value involved in the average. If
distribution is more important than order, then the average completed is representatives of the
distribution. In such case proper weightage is to be given to various items, the weight
attached to each item being professional to the importance of the item.
Weighted average formula

Ultratech Cement
2014
50
Analysis
Extremely
Good Very
Good
Good Neutral Bad
Very
Bad Extremely
Bad
Weighted
Score
Supply 15 16 6 8 8 29 38 383
Promotional Activities 33 34 8 3 15 13 14 572
Sales follow up 33 21 7 3 7 4 11 444
Credit facility 33 22 9 39 6 11 7 611
Package 33 31 3 1 4 8 7 471
Price 33 45 16 5 7 17 8 664
Profit Margin 33 14 10 10 7 30 42 528
S. No. Particulars
Average
Weightage
Score
Rank
1 SUPPLY 3.19 6
2
Promotional
Activities
4.76 4
3
Sales Follow
up 5.63 2
4 Package 5.85 1
5 Credit Facility 4.68 5
6 Price 4.89 3
7 Profit Margin 2.88 7

Ultratech Cement
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51
It is identified from the above table that the Profit Margin of Ultratech Cement ranks lowest
with score of 2.88. Profit is one of the sole objectives of doing any business and most of the
dealers receive very low profit margin in Ultratech cement when compared to other brand.
Supply of the product has second lowest score, poor supply leads to the low accessibility of
product to the customer. Due to this other brands Especially Jaypee, Bharti and Raasi gold is
occupying the market. Promotional activities ranks 4th
lowest, delay in promotional activities
lead to low visibility due to occupancy of the area by the competitor. The dealers complain
about the Price fluctuation of Ultratech cement, which generally change its price first in
market and is followed by other brands. Ultratech being the premium brand compensate the
high price with its quality. The packaging and sales follow up of the Ultratech ranks very
high when compared to other services.
Suggestion
 As seen from the analysis profit margin of Ultratech is very less when compare to
other brands. Dealers mostly depend upon the Scheme provided by the company;
hence the scheme should be increased to Rs 5, atleast for high volume dealers. The
company like Jaypee, Bharti and Ramco provide volume based scheme.
Jaypee-
Rs 3 for less than 100 Tones and Rs 4 for above 100 tones.
Bharti –
Cash Rs 4 per bag and Rs 5 above 200 Tones
Ramco-
Above 5o tones Rs 4 per bag
 The scheme should be provided in cash instead of partial cash and gold. This will help
low volume dealers to get the complete benefit of the scheme. The company can
provide gold as gift to high volume dealers
 Small gift to be provided to dealers and sub dealers at regular intervals. Gifts like
Kitchen appliances, Paper weight, Calculators, Wall Clocks, T-shirts and Jacket for
Manson is provided by company most of our competitor.

Ultratech Cement
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52
 Provide dealers entertainment program at regular interval, which will keep
dealers motivated and interested towards the brand. Targets to be set for the dealers
and invitation for the programme should be given only for dealers who have reached
the target.
 Ultratech cement provide tour scheme to their high volume dealer. One ticket is
provided to the dealers who reached the target but Dealers normally don’t prefer
going to tour alone. So, Ultratech can provide ticket for couple.
 Ultratech dispatch scheme through cheque every half yearly. Company like Jaypee,
Bharti and Maha cement issue cheques every quarterly or even before to their dealers.
Ultartech can also issue Cheques every quarterly instead of half yearly which is
preferred by most of the dealers.
 Scheme should be changed seasonal wise to keep dealers interested in brand.
Asian paints provide different scheme in different season, they have different scheme
in festival season and scheme changes in non festival season.
 Rewards points should be provided to the dealers on the sale of cement bags
(Like ACC lakshya). Volume based target should be given to dealers which may
vary from dealers to dealers.
 UTCL retailers are attached to one dealer for materials; the retailers have to purchase
the material through the attached dealers to receive the scheme. These attached
dealers provide material at higher rate to the retailers which lead to the low
profit so most of our retailers requested to provide an option of atleast two
dealers
 Danglers can be used to improve In Shop advertisement.

Ultratech Cement
2014
53
Example of Danglers
Limitation
 Since the survey was done only in Hyderabad Districts the result obtained may not be
taken as universal suggestion.
 Quality of the information highly dependent on the knowledge of the respondents.
 The study is about the perception of the people and is likely to change with the change
in industry.

Ultratech Cement
2014
54
Conclusion
We must profitably achieve our business objectives by retaining current Dealers and gaining
new one by continually meeting and exceeding their needs and expectation. So, continuous
Dealers satisfaction measurement is essential. The study is aimed to measure dealer’s attitude
towards various features of Ultratech cement, and the study provides a lot of suggestions.
This study also helps to know about dealer satisfaction for Ultratech cement.
Ultratech Cement is one of the fast moving brands in Hyderabad. The company is holding a
good market share which is the result of efforts made by the company management and the
executives.
From the market survey we can conclude that:
 Factors like branding and quality are fetching to the movement of brand.
 The company is having a good dealer network and it is maintaining good
relations with them i.e., the service rate of the company is reasonable and can
be improved.
 The price of Ultratech cement is matching with the quality of the cement
 With the ideal promotional strategies, more attractive schemes and
Improvement in services the satisfactory level of the dealers can grow and
become a market leader in the future.

Ultratech Cement
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55
Attachments
Questionnaire
Questionnaire for Dealers & Retailers
1) Name of the Dealer/Retailer-
2) Owner’s name –
3) Phone no-
4) No. of years of
a) 1-3 Years b) 4-7 Years
c) 8-10 Years d) Above 10 Years
5) Products sold
a) Cement b) Steel
c) Paints d) Others
6) Do you keep our competitor product?
a) Yes b) No
7) List of Cement Brands.
a) ACC b) Bharti c) J.P
d) Priya e) C.King f) KCP
g) Others
8) Total sales quantity of cement per month (tones)
a) < 100 tones b) 100 to 300 tones c) 300 to 500 tones
d) 500 to 1000 tones e) > 1000 tones
9) Sales quantity of Ultratech cement per month (tones)
a) < 100 tones b) 100 to 300 tones c) 300 to 500 tones
d) 500 to 1000 tones e) > 1000 tones

Ultratech Cement
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56
10) What do you feel about the quality of Ultratech Cement?
a) Extremely good b) Very Good c) Good
d) Neutral e) Poor f) Very poor
g) Extremely Poor
11) What do you feel about the scheme of the Ultratech Cement?
a) Extremely good b) Very Good c) Good
d) Neutral e) Poor f) Very Poor
g) Extremely Poor
12) Problems you face in receiving the benefit of the scheme of Ultratech cement
a) Single dealership tie up
b) No clarity about the benefit
c) Lengthy Process
d) Not in time
e) Others
13) Which brand provides the best scheme?
a) ACC b) Bharti c) J.P
d) Priya e) C.King f) Ultratech
g) Others
14) Brand name
Cash
a) < 3 b) 3 to 5 c) > 5 d) None
Disbursement Method
a) Cash b) Cheque

Ultratech Cement
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57
Gold
a) < 3 b) 3 to 5 c) > 5 d) None
Disbursement Time
a) Monthly b) Quarterly c) Half yearly d) Annually
Tours
a) International b) Domestic c) Both d) None
Sales Quantity
a) < 500 tones b) 500 to 750 tones
c) 750 to 1000tonnes d) > 1000 tones
Gifts
a) LED TV b) Mobile phone
c) Money counting machine d) none
e) Others
Sales Quantity
a) < 500 tones b) 500 to 750 tones
c) 750 to 1000 tones d) > 1000 tones
Other Scheme (If any)
15) Scheme by other product (Related business)
Product -

Ultratech Cement
2014
58
Scheme-
16) Please rate the following services provided by Ultratech cement (1 - Extremely satisfied
& 7- Extremely Unsatisfied)
1 2 3 4 5 6 7
a) On time delivery
b) Promotional Activities
c) Sales Follow up
d) Credit Facilities
e) Good Packaging
f) Price
g) Better Margin
17) Any other suggestions to improve the service & scheme of the ultratech cement
Service
Scheme

Ultratech Cement
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References
 http://www.ibef.org/industry/cement-snapshot
 http://www.scribd.com/doc/32159493/Overview-of-Indian-Cement-Industry-2010
 http://cci.gov.in/images/media/ResearchReports/Assessment%20of%20Competition%
20in%20Cement%20Industry%20in%20India.pdf
 http://www.scribd.com/doc/29980872/Paint-Report
 http://www.uniassignment.com/essay-samples/marketing/strategic-analysis-of-indian-
paint-industry.php
 http://binaniindustries.com/press-releases/binani-cement-will-ramp-up-capacity-go-
places/
 http://www.digitaljournal.com/pr/1868601#ixzz2zsFEQYqK
 www.adityabirla.com
 www.grasim.com
 www.questionpro.com
 www.indianinfoline.com
 www.indiamarkets.com
Books
Kotler P; and Armstrong, Gary (2001); Principles of Marketing, 11thEdn; Prentice Hall, New
Jersey.
Kotler P (2002); Marketing Management, 11th edn. Pearson Education, New Delhi.

Ultratech Cement
2014
60

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