project report on customer satisfaction toward cement product.


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project report on customer satisfaction toward cement product.

  1. 1. “A STUDY ON CUSTOMER SATISFACTIONTOWARDS CEMENT PRODUCTS WITH REFERENCE TO AMBUJA CEMENT LTD” Project submitted to OSMANIA UNIVERSITY In partial fulfillment of the requirement of the Master of Business Administration Submitted By MOHAMMED AHEMAD RAZA (H.T.No. 217012672065 ) Under the guidance of Prof.K. VENKATA LAKSHMAN DEPARTMENT OF THE BUSINESS MANAGEMENT VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT (Affiliated to Osmania University), Hyderabad 2012-2014 1
  2. 2. DECLARATION I MOHAMMED AHEMAD RAZA(H.T. NO. 217012672065) studying MBA final year in VISHWA VISHWANI INSTITUTE OF SYSTEMS AND MANAGEMENT, hereby declare that this project report by name “A STUDY ON CUSTOMER SATISFACTION TOWARDS CEMENT PRODUCTS WITH REFERENCE TO AMBUJA CEMENT“has been prepared with due diligence maintain full originality, as a part of partial fulfilment for the award of the Master in Business Administration. Date: Mohammed AhemadRaza Place: Hyderabad (H.T. NO. 217012672065) 2
  3. 3. CERTIFICATION This is to certify that the Project Report titled “A STUDY ON CUSTOMER SATISFACTION TOWARDSCEMENT PRODUCTS WITH REFERENCE TO AMBUJA CEMENT” submitted in partial fulfillment for the award of MBA Programme of Department of Business Management, O.U. Hyderabad, was carried out by K.VENKATA LAKSHMAN,(H.T. NO. 217012672065)under my guidance. This has not been submitted to any other University or Institution for the award of any degree/diploma/certificate. Internal Guide External Guide 3
  4. 4. ACKNKOWLEDGEMENT I would like to express my gratitude for all the people, who extended unending Support at all stages of the project. I take this opportunity to thank our Dean, Dr.SabyasachiRath and Head of the department Dr.M. MadanaMohan. This report is a product of not only my sincere efforts but also the guidance and morale support given by the management of VishwaVishwani Institute of System And Management. I express my sincere gratitude to my guide Prof. K.VenkataLakshman for sparing his valuable time in giving the valuable information and suggestions all through, for the successful completion of the project. Last but not least, I express my sincere gratitude to all the employees at Ambuja cement who have directly or indirectly contributed to the successful completion of the project. Mohammed AhemadRaza 4
  5. 5. CONTENTS CHAPTER-1 INTRODUCTION 1.1 General 1.2 Need of the study 1.3 Scope of the study PAGE NO. 01 02 03 1.4 Industry profile 04 – 16 1.5 Company profile 17 – 21 CHAPTER-2 LITERATURE REVIEW CHAPTER-3 22 - 26 RESEARCH METHODOLOGY AND DESIGN 3.1 Type of Research 27 3.2 Research Objectives 27 3.3 Research Instrument 27 3.4 Questionnaire design 28 3.5 Data collection 3.6 Sample procedure 29 3.7 Period of the study 29 3.8 Sample size 29 3.9 Pilot survey 29 2.10 Limitation of the study CHAPTER-4 28 30 DATA ANALYSIS AND INTERPRETATION 4.1 Data analysis CHAPTER-5 36 – 46 SUMMARY OF FINDINGS 5.1 General Findings CHAPTER-6 47 SUGGESTIONS AND RECOMMENDATIONS 6.1 Recommendation 6.2 Conclusion CHAPTER-7 48 49 Bibliography 50 51 - 53 Annexure 5
  6. 6. EXECUTIVE SUMMARY The project was carried out at Ambuja cements Ltd. At Raipur region.As my project topic suggests, I have tried to find out the customer satisfaction of Ambuja cements. CHANGE IN PRICE OR IMPROVEMENT IN THE QUALITY OF THE CEMENT ETC. The quality of the cement and for this purpose people from different were chosen like general customers,dealers,,bulk consumers etc. have used questionnaire and other scientific tools like personalInterviews and telephonic interviews to know about the customer mood and the I have also tried to find the market potential of AMBUJA Cement in Raipur for this I had conducted market research in different parts of Raipur For this I met different dealers, retailers and as well as industrial bulk suppliers In different parts of the Raipur. This study includes direct interaction with the customers and this helps us to know the “SATISFACTION LEVEL” to great accuracy. This is of great importance to the company which will know about the customer preference to buy a particular brand. The company will gain information about customer’s preference depending on the following factors:Price factor Fineness of the cement Setting time Attractive packaging Brand image-one of the important factor 6
  7. 7. CHAPTER - I 7
  8. 8. 1. INTRODUCTION 1.1 General: A market survey is a tool used to gather information about existing or customers satisfaction in a certain market or population. Researchers select a sample of customers from the population. The information from the survey is then used to assess attitudes and beliefs, and in turn predict market behavior.Marketing is a social process by which Dealers,builders,architecture individuals Consumers obtain what they need & want through creating offering, & freely offering product & services of value with other. It is the art & science of choosing target makers & getting keeping & growing customers through creating delivering & communicating superior customer value. Consumers have their own way of making purchase decisions. Today in the market there is tough competition and the technologies are changing day by day, to become successful in modern market the business organization have to be customer orientated organization have to look after for building customers. The information about the market was gathered by visiting customers in the market. While doing the project attempt was made to get correct information from the customers in the market. After collecting the detailed information about the market analysis has to be done, the finding and result of the project work is given later in research report. 8
  9. 9. 1.2 NEED OF THE STUDY: Customer is one for whom you satisfy and or need return for some of payment. The payment may be moneymay be time or may be goodwill but there is some form of payment.Satisfaction is the level of person felt state by comparing products perceive in relation‟s expectations. Satisfaction level is function of the difference between perceived performance and expectations. If the performance falls short of expectation,the customer is not satisfied. If the performance matches the customers are highly satisfied. If the performance is beyond his expectations the customer is thrilled. Customer satisfaction is customer‟s positive or negative feeling about the value that was perceived as aresult of using particular organization. To knowing the perception of the customers. To finding out the effective and ineffective factors of ambuja cement. To knowing the current position of the ambuja cement in cement industry. 9
  10. 10. 1.3 SCOPE OF THE STUDY This study includes direct interaction with the customers and this helps to know the customer satisfaction level to great accuracy. This study is of importance to the company which will know the following factors:price factors fineness of the cement setting time attractive packaging brand image quick delivery time wide availability So,scope of this study is to achieve customer satisfaction because customer satisfaction and quality maintenance is company‟s primary objective. 10
  11. 11. 1.4INDUSTRY PROFILE INTRODUCTION The Indian Cement Industry is the world‟s second largest producerofcementintheworldjustbehindChina,butaheadoftheUnitedStatesandJapan. But, per capita production and consumption are low as compared to the world standards. On the technological front, Indian cement Industry can be regarded as highly competitive and is comparable with the best in the world in terms of quality standards, fuel consumption etc. Indian cement plants, which depended heavily on wet technologies in the sixties and seventies, have subsequently shifted to modern energy efficient dry technologies. This trend is more perceptible in the last decade. The latest surge in the demand for cement is driven by the boom in the housing sector and infrastructure sector. Itisconsented tobeacoresectoraccountingforapproximately 1.3%ofGDP andemployingover0.14millionpeople. The post deregulation scenario is marked by major reorganization of many of the capacities in the Indian cement industry. Consolidation has become the latest buzzword of the industry. Acquisitions, mergers and demergers have been the order of the day for the industry. Many major Indian players have acquired small companies and MNCs have also entered the industry through have acquisitions route. EXPORT The export of Indian cement has increased over the years mostly after decontrol,givingthemuch-requiredboosttotheindustry.Thedemandforcementisa deriveddemand,foritdependsonindustrial activity,realestate,andconstructionactivity.Sincegrowthistakingplaceallovertheworldi nthesesectors,Indianexport ofcementisalsoincreasing.Indiahasanimmensepotentialtotapcementmarketsofcountr iesintheMiddleEastandSouthEastAsiaduetoitsstrengthsoflocationadvantage,largescale limestoneand coal deposits, adequate 11 cement capacity and
  12. 12. productionofworld-classqualityofcementwiththelatesttechnology. Hence,thefirmsintheindustryarecapitalizingontheopportunities,provided bythegovernmentaccompaniedbyfavorableeconomicconditions.Thisisevidentby thedata,whichshowsnegativeACGRof5.52%inthecontrolperiodbecauseofhighlyprotectedmarkets.Theaverageexportvolum eintheperiodwasaroundonly 1.7 lakhtonnescement. As theindustrywasdecontrolledandeconomyopenedup,cementexportsstartedmaking rapidstrides. PERCAPITACONSUMPTION Thepercapitaconsumptionof125kgintheyear2012-13,comparespoorly withtheworldaverageofover350kgandmorethan660kginChina.Similarlyin Japanitis631kg/capitawhileinFranceitis447kg/capita.Theprocessofcatching upwithinternationalaveragesemphasizesthetremendousscopeforgrowthintheIndiance mentindustryinthelongterm.Also,oneofthereasonsforstronginterestshownbytheforeig nplayersinIndiaisduetoitslowerpercapitaconsumptionof cement. PRODUCTDIFFERENTIATION India is producing different varieties of cement, based on different compositionsaccordingtospecificenduses,likeOrdinaryPortlandCement(OPC), PortlandPozzolanaCement(PPC),PortlandBlastFurnaceSlagCement(PBFS),OilWell Cement, Rapid Hardening Portland cement,Sulphate Resisting Portland CementandWhiteCementetc.Thebasicdifferenceliesinthepercentageofclinkerused. These differentvarieties of cement are produced strictly under BIS(Bureau of International Standards) specificationsandthequalityiscomparablewiththebestintheworld. Inanenvironmentofgrowingcompetitionwitnessedinthepostdecontrolera,oneofthemaj 12
  13. 13. ordevelopmentshasbeentheintroductionofhighergradesofcement.Gradeisthe28days compressivestrengthofOrdinaryPortlandcement,whentested as perIndianStandardsunderstandardconditions. Depending uponthestrengthrequirement,OPCisthusclassifiedasOPC- 33grade,OPC-43gradeandOPC53grade.However,realizationisgrowingfastamongsttheconsumersatlarge,thatthe propertiesofdurabilityareofgreaterimportancethanstrength. 13
  14. 14. HISTORY OF GRADES OF CEMENT In the earlier days, we had only one cement, ordinaryportland cement. Subsequently, the availability in abundance of fly ash in thermal power stations and slag in steel plants led to the production of pozzolana cement and slag cement to conserve energy in the production of cement and to utilize the available by-products. India was perhaps one of the few countries which produced as much as 76 per cent of the total cement produced as blended cement, which is the common name of pozzolanic cement as well as slag cements as early as in 1982. Then the industry was under the control of controller of cements. After de-control, the production of ordinary portland cement increased and consequently the percentage of blended cement came down, currently it is somewhere around 30 per cent. The introduction of precast / prestressed sleepers for the railways necessitated the production of a special grade ordinary portland cement because with the then available cement, it was not possible to obtain the desired strength as well as the rate of gain of strength for the production of sleepers. Cement industry was permitted to manufacture the special grade ordinary portland cement and it was commonly known as sleeper cement. Subsequently, the Bureau of Indian Standards came forward to grade the ordinary Portland cement into grade 33 cement, grade 43 cement and grade 53 cement. This grading closely followed the U.K. grading which was 32.5, 42.5 and 52.5 as well as 62.5, some of Indian companies are also trying to make and persuade the Bureau of Indian Standards to introduce grade 63. These higher grades of cements are specifically introduced to cater to the needs of the industry engaged in the construction of long span bridges, high rise structures and other structures of gigantic magnitude requiring high grades of concretes. With the cement then available, it was very difficult to design a mix for obtaining concrete of grade 4.5 and above commonly used in such structures. Hence, Bureau of Indian Standards 14
  15. 15. classified ordinary portland cement into the above 3 grades that is now available in the market. After total de-control of cement industry in 1989 and abolishing of licensing system for setting up of cement plants in 1992, there has been phenomenal growth in the production of cement. With the many fold increase in the production of cement, cement manufacturers adopted an aggressive marketing strategy, each projecting their product as the best. Manufacturers of 53 grade cement invaded the market and created an impression amongst the consumers that 53 grade OPC could be used by them as it is the best cement and grade 33 and grade 43 cements, are inferior. In fact, all cements are one and the same but for minor changes in the characteristics. Grade 33 cements would meet the structural requirements of ordinary and small scale consumers. Grade 43 cements may be utilized for precast concrete production besides the sleeper manufacturers and other building components producers. Grade 53 cements may be utilized by builders of heavy infrastructure such as bridges, Fly overs, large span structures and high rise structures. The common man's perception that 53 grade cement is the best cement is not only due to the aggressive marketing strategies of the cement manufacturers but also on the presumption that the heat generated during hardening of concrete is an index of its quality. When 53grade cement is used the heat generated is very high. Hence, Consumers believe that it is a better cement when actually it is not so.Each cement has to be chosen for a particular use. While 53grade cement is actually best only for producing concretes of grade 53 and above, it is not to be used in ordinary structures where concrete grade 20 is normally adequate. The total de-controls and competition amongst manufacturers and the market forces have actually eliminated 33 grades in the market. It may be necessary to enforce the 15
  16. 16. partial regulation or self-discipline among the manufacturers of cement to produce at least 1/3rd of the cement in the OPC category as grade 33 cement and 1/3rd another as grade 43 cement and balance 1/3rd as grade 53 cement and partially regulate the price for these 3 grades so that, in the market 33 grade cement will become available to the common consumer. Though originally introduced to save energy in the cement plants and to make use of the available industrial by products, research and experience have shown that blended cements have more durability characteristics than the OPC of even higher grades. Cement is primarily used to produce concrete. Concrete is mainly produced in ready mixed plants the world over. Most of the producers of the concrete use OPC and a substantial quantity ofcementitious materials like pozzolana or granulated blast furnace slag. In countries like U.S. and U.K. where 90 percent of the concrete produced is in the ready mixed plants and the cementitious materials are blended in the concrete plants rather than in the cement manufacturing units. In India ready mixed concrete has just had the beginning. The blending of cementations materials at site is not advisable now. Hence, blended cement production is very essential. At present production of blended cement is around 30 percent. This has naturally to increase to at least 50 per cent. The blended cement does not gain strength immediately and also do not generate heat like OPC. Hence, the common belief has been that blended cement is inferior cement. Actually it is not so. No doubt, the rate of gaining strength is slow in the case of blended cement. But, ultimately, in the long run it gains as much strength as any OPC. Blended cements give better workability in fresh concrete and during the hardened stage, give better durability. The consumer is to be adequately educated on the advantages of blended cement. The reluctance on the part of builders to opt for blended cement is to an extent justifiable because many builders were forced to use PPC when the production of PPC was as high as 76 percent during the control days. 16
  17. 17. They found to their dismay that they have to retain their shuttering for much longer duration and sometimes the quality of PPC was of doubtful nature because the fly ash blended with the PPC was of varying quality. However, of late, the selection of pozzolanic materials has been more stringent and the quality of blended cement is more consistent. The builders can shed their past memories and start using blended cement. Manufacture of blended cement results in substantial savings in energy and product cost. Hence, industry must pass on to the consumers the benefits derived to the users of blended cement. In short, every cement has its own role to play and there is no reason to believe one cement is superior to the other cement. For ordinary structure.OPC grade 33cement or PPC could meet the requirements. For producing concretes of higher grades, mixes have to be designed using OPC as well as cementitious materials concrete chemicals and sometimes additional fillers and even viscosity agents. For non-structural uses such as masonry and plastering mortar, cement of much lower strength than OPC 33 grade classified as masonry cement is the best suitable material. But, unfortunately, no manufacturer produces this type of cement. More than the choice of the cement, the control exercised in production of concrete in regard to the selection and proportioning of materials, use of the minimum required quantity of water, careful handling of the mix during transportation and placing, compacting well to get a dense concrete, having an engineered formwork, continuous curing and the like contribute greatly to the quality and durability of concrete. VARIETIES OF CEMENTS IN INDIA There are some varieties in cement that always find good demand in the market. To know their characteristics and in which area they are most required, it will be better to take a look at some of the details given below. 17
  18. 18. Portland Blast Furnace slag cement (PBFSC): The rate of hydration heat is found lower in this cement type in comparison to PPC. It is most useful in massive construction projects, for example - dams. Sulphate Resisting Portland cement: This cement is beneficial in the areas where concrete has an exposure to seacoast or sea water or soil or ground water. Under any such instances, the concrete is vulnerable to sulphate attack in large amounts and can cause damage to the structure. Hence, by using this cement one can reduce the impact of damage to the structure. This cement has high demand in India. Rapid Hardening Portland cement: The texture of this cement type is quite similar to that of OPC. But, it is bit more fine than OPC and possesses immense compressible strength, which makes casting work easy. Ordinary Portland cement (OPC): Also referred to as grey cement or OPC, it is of much use in ordinary concrete construction. In the production of this type of cement in India, Iron (Fe2O3), Magnesium (MgO), Silica (SiO2), Alumina (AL2O3), and Sulphur trioxide (SO3) components are used. Portland Pozolona Cement (PPC): As it prevents cracks, it is useful in the casting work of huge volumes of concrete. The rate of hydration heat is lower in this cement type. Fly ash, coal waste or burnt clay is used in the production of this category of cement. It can be availed at low cost in comparison to OPC. Oil Well Cement: Made of iron, coke, limestone and iron scrap, Oil Well Cement is used in constructing or fixing oil wells. This is applied on both the off-shore and on-shore of the wells. Clinker Cement: Produced at the temperature of about 1400 to1450 degree Celsius, clinker cement is needed in the construction work of complexes, houses and bridges. The ingredients for this cement comprise iron, quartz, clay, limestone and bauxite. White cement: It is a kind of Ordinary Portland Cement. The ingredients of this cement are inclusive of clinker, fuel oil and iron oxide. The content of iron oxide is maintained below 0.4% to secure whiteness. White cement is largely used to 18
  19. 19. increase the aesthetic value of a construction. It is preferred for tiles and flooring works. This cement costs more than grey cement. CEMENT INDUSTRY ANALYSIS There are five forces driving cement industrial competition. Porter (1979) suggests (figure shown below) that when the forces are weak collectively, there is a major opportunity for superior performance. Therefore, we can conclude that the cement industry is unattractive in mature markets, but attractive in emerging markets 19
  20. 20. CEMENT COMPANIES SUPPLY CHAIN STRATEGY Supply Chain (SC) operational objectives can be classified in three groups: Asset utilization, Customer response and Efficiency We believe that the cement industry is concentrated on asset utilization with some level of efficiency. The main reason for this location is that cement companies are focused in minimizing cost based on the economies of scale generated by their investment in large manufacturing plants. This is a given condition for all large cement companies in the industry. Some cement companies are moving towards the other operational objectives to gain differentiation in the market. One key success factor is the required supply chain transformation to support this decision. SUPPLY CHAIN OPERATING MODEL OF CEMENT (PROCESSOR ANALYSIS) Cement industry planning process is centralized and optimization oriented. There is no constraint in the availability of cement main raw materials with the exception of some countries where subsoil ownership regulations applied. Cement manufacturing is capital and energy intensive where cement truck delivery is restricted due to its low value-to-weight ratio. 20
  21. 21. SUPPLY CHAIN OPERATING MODEL OF CEMENT (PRODUCT ANALYSIS) Cement can be characterized as bulk and bagged as shown below. Bulk cement is dominant in developed countries and its demand is generated by large construction companies and government. Bagged cement is dominant in emerging markets and is generated by Do-It-Yourself (DIY) customers and small contractors. Relatively speaking, bulk cement is functional while bagged cement is innovative. Functional products should have an efficient supply chain while innovative products should have a responsive supply chain. 21
  22. 22. LOGISTICS ISSUE Besides strong demand, eastern and northern region also witnessed price hike due to wagon unavailability and logistics issues, while demand in southern and the western region remained tepid ,declining off-take from the government infrastructure spending. The capacity utilization continued to remain higher as the new capacities that came on stream where not fully stabilized and as it happens we may expect falling capacity utilization levels and consequent impact on pricing and margins. Cement manufacturing is capital and energy intensive where cement truck delivery is restricted due to its low value-to-weight ratio. Functional products should have an efficient supply chain while innovative products should have a responsive supply chain. CEMENT SUPPLY CHAIN (BUILD TO STOCK) 22
  23. 23. Two alternatives were proposed to migrate from BTS(Build to Stock) to CTO (Configure to order), moving the push-pull boundary back in the cement supply chain. First, Grindto-Order where cement is kept in clicker (intermediate product of the cement manufacturing process) and then grinded as orders appear. Second, Pack-to-Order, where cement is kept in bulk and then packed as orders appear .Further research should be made to confirm the feasibility of these alternatives. 23
  24. 24. 1.5COMPANY PROFILE AMBUJA CEMENT Ambuja Cements Limited was set up in the late 80s. The cement industry presented an opportunity of steady growth and ethical competition to the promoters. However, a decade later, it became one of world‟s most efficient cement companies producing the finest cement in the world at the lowest cost while adhering to the most stringent international pollution-control norms. Today, Ambuja is the 3rd largest cement company in India, with an annual plant capacity of 18.5 million tonnes including Ambuja Cement Eastern Ltd. and revenue in excess of Rs.3298crores. More importantly, its plants are some of the most efficient in the world. With environment protection measures that are on par with the finest in the developed world. But the company‟s most distinctive attribute is its approach to the business. Ambuja believes its most valuable assets aren‟t cement plants. They are the people who run the plants. This unique vision is encapsulated in the company‟s homegrown philosophy of giving people the authority to set their own targets, and the freedom to achieve their goals. It‟s called „I can’‟ This simple vision has created an environment where there are no limits to excellence, no limits to efficiency. And has proved to be a powerful engine of growth for the company. As a result, Ambuja has consistently raised the bar in all aspects of the cement industry. Be it transportation, plant efficiency, brand building or human resource development. 24
  25. 25. First plant set up in record time When Ambuja set up its first plant in 1986, the accepted time period for installing a plant was 3 years. Ambuja did it in less than 2 years and with a significantly lower capital expenditure. In 1993 the company went a step further and bettered its own record. Ambuja's second plant was installed in a mere 13 months - the quickest time for setting up a one million tonnes cement plant. A whole new way of transporting cement in the early 90s, almost all cement in India travelled by rail or road and in bags .A mode that involves deterioration of both, the quality and volume of cement. In 1993, Ambuja Cement set up a complete system of transporting bulk cement via the sea route making it the first company in India to introduce bulk cement movement by sea. Others followed and today, about 10% cement travels by this new route. The facility comprises: A dedicated port at the Gujarat plants, capable of berthing 40,000 DWT vessels, three bagging terminals at Mumbai, Surat and Sri Lanka, and seven special bulk cement vessels. This capability has enabled us to supply fresh cement to many coastal markets – domestic and international. Branding a commodity Cement is a commodity, sold largely on price. Ambuja Cement was the first company to create a brand out of cement and command a premium. It was also the first to introduce a special cell, providing technical services to consumers and masons. Today, this has become the norm in cement marketing. The trick of course was to provide a consistently high quality of cement, backed by excellent service. This was reinforced by a strong dealer network. The result is that customers are ready to pay 2-3% premium for Ambuja Cement for the value they 25
  26. 26. receive. Ambuja Cement is the top brand in Western, Northern, Central and Eastern India. Exports Ambuja Cement exports almost 17% of its production in a very competitive international environment. For the last ten years, Ambuja Cement remains India’s highest exporter of cement. This has been possible for two reasons – 1. The quality of cement matches the best in the world. 2. The dedicated bulk cements transportation capability at our Gujarat plant. The Environment From the outset, Ambuja has believed that a cement plant cannot flourish at the cost of the environment. That‟s why it adheres to the most rigorous international environmental norms. The pollution levels at all its cement plants are even lower than the rigorous Swiss standards of 100 mg/NM3 .At the Gujarat plants, surface miners have been employed to scrape the surface of the mines. Thus ensuring that all the mining is totally blast free.There is no noise or air pollution. Similarly at the Himachal Pradesh plant, Ambuja has employed techniques that have made mining absolutely safe and pollution free.Not surprisingly then, the company has consistently won awards for its pollution free plants. Awards as prestigious as the National Award for Outstanding Pollution Control and The Eco-Gold Star of Tata Energy Research Institute (TERI). 26
  27. 27. Corporate Social Responsibility In 1991, the company set up Ambuja Cement Foundation to trigger all-round development of the people around its cement plants. The Foundation decided to traverse the difficult but more productive path of helping the people to help themselves. With great dedication and commitment, the foundation energized the local people to participate and own their development process. It became a facilitator and catalyst, rather than a one-time fund provider. It developed easily replicable and sustainable modules for water management, sustainable agriculture and healthcare. All this effort in discharging its social responsibility has earned the company recognition across Asia. Milestones Building of a cement plant in record 13 months. Kilometer conveyor belt running through three hills was constructed in just 9 months. Introduced a completely new system of transporting cement in India – the bulk cement transportation by sea. Introduced complete blast free limestone mining by using the surface miner in limestone mining for the first time in India. Created water reservoirs in used up mines and raised the water table in arid areas. Our plants have achieved the lowest pollution levels –comparable with the strongest Swiss standards. 27
  28. 28. Recognition National Award for commitment to quality by the Prime Minister of India. National Award for outstanding pollution control by the Prime Minister of India. Eco-Gold Star by TERI Best Export Award by CAPEXIL. Award for Corporate Social Responsibility by Business World – FICCI International Award For Rural Development by Asian Management Institute (AIM) ISO 9002 Quality Certification. ISO 14000 Certification for environmental systems. Technical Details Established – 1986. Total Capacity – 18.5 million tonnes. Infrastructure – Dedicated port at Gujarat. Capable of berthing 40,000 DWT vessels with carrying capacity of 20,000 tonnes. Packing terminals at Mumbai, Surat and Sri Lanka. Seven dedicated bulk cement ships. 28
  29. 29. CHAPTER - II 29
  30. 30. REVIEW OF LITERATURE Marketing is “The management process which identifies anticipates and supplies customer requirements efficiently and profitably”. “Marketing is a total system of interesting business activities defined to Plan, piece, promote and distribution want satisfying products & services to present and potential consumers” “Marketing is the performance of business activities that direct the follow of goods and services from the producer to the consumer or user” A social and managerial process, by which individuals and groups obtain what they need and want, through creating and exchanging product and value with others. Customer satisfaction begins with a difficult faith; it starts with a commitment to deliver the result for each customer which is also a concern of the dealers. Hence for a manufacturing company, in order to satisfy its customers, it is highly important to satisfy its dealers, as they are the direct customers to them. Establishing satisfaction as the ultimate goal is like the other ultimate goals of business pursuit of higher profits or shareholders wealth. Perfect dealer service or satisfaction is one that meets the combined need satisfaction is a systemized service that involves the entire organization. But many organizations have yet to develop this kind of awareness of dealer satisfaction strategy. Dealer Satisfaction begins with the following specific assumptions about company‟s relationship with the customers. 1. The dealer service activities focus mainly on existing dealers. 2. Some dealers are more important than others 3. They are the assets. 4. The dealer is always specific. 30
  31. 31. The dealer needs and value should influence every aspect of the organization strategy, employee safety and performance, product and organization strategy, employee safety and performance, product and service development, sales and marketing programs, operational procedures and information and measurement system. Understanding the dealer is critical to the success of any customer focus initiative, the first step in understanding the dealers is to listen to them. A company needs to hear what its dealers are saying about its people, product service and vision. Their information helps to develop meaningful product and service. Organizations need to listen to their dealer satisfied, dissatisfied neutral and prospective. As one company executive said, “talking to a satisfied customer is talking to me”. In the past, dealer satisfaction and service was the responsibility of a separate organization that supported the dealer primarily after the sale. Today, service is also likely to be interested with the every product accompany offers. High dealer satisfaction comes from providing effective services. But giving that service is a continuous activity. It means being efficient, reliable, courteous, curing and professional every time. Marketing is a communication process that has the purpose of individuals or groups - that are directly or indirectly able to purchase - aware of products and services that may satisfy their existing or newly-identified needs and wants. The Chartered Institute of Marketing, which is the world's largest marketing body,defines marketing as "The management process responsible for identifying, anticipating and satisfying customer requirements profitably." Marsha Peter (2OO2) examines temporal changes in post-purchase product satisfaction for durable goods purchase. Involvement and satisfaction variables were 31
  32. 32. measured in a cross-sectional and a longitudinal study of car owners. Overall, consumers with high product involvement showed slightly greater satisfaction with their cars than low-involvement consumers over the term of ownership. However, in the 2month period after purchase, consumers with high product involvement showed a decline in satisfaction, whereas low-involvement consumers' satisfaction increased. The role of disconfirmation in these changes was investigated. Benefits and problems disconfirmation were found to make independent contributions to satisfaction judgments, and the strength and form of contribution varied with product involvement. These findings suggest that benefits and problems disconfirmation need to be measured separately in satisfaction research. Yooshik Yoon(2004) studied the effects of motivation and satisfaction on destination loyalty: a structural model and investigates the relevant relationships among the constructs by using a structural equation modeling approach. Consequently, destination managers should establish a higher satisfaction level to create positive post-purchase behavior, in order to improve and sustain destination competitiveness. Diane Halstead (1993) studied the Focuses on a group of unsatisfied car owners. Examines the roles of the car warranty and the post-purchase service received during the complaint process in terms of their effects on customers' satisfaction with complaint resolution. Presents some suggestions for customer service policies, complaint handling procedures, and warranty fulfillment service. James Y.L. Thong (2006) studied the effects of post-adoption beliefs on the expectation-confirmation model for information technology continuance .The expectation-confirmation model (ECM) of IT continuance is a model for investigating continued information technology (IT) usage behavior. This paper reports on a study that attempts to expand the set of post-adoption beliefs in the ECM, in order to extend the application of the ECM beyond an instrumental focus. The expanded ECM, incorporating the post-adoption beliefs of perceived usefulness, perceived enjoyment and perceived ease of use, was empirically validated with data collected from an on-line 32
  33. 33. survey of 811 existing users of mobile Internet services. The data analysis showed that the expanded CM has good explanatory power (R2=57.6% of continued IT usage intention and R2=67.8% of satisfaction), with all paths supported. Hence, the expanded ECM can provide supplementary information that is relevant for understanding continued IT usage. The significant effects of post-adoption perceived ease of use and perceived enjoyment signify that the nature of the IT can be an important boundary condition in understanding the continued IT usage behavior. At a practical level, the expanded ECM presents IT product/service providers with deeper insights into how to address IT users‟ satisfaction and continued patronage. Marsha L. Richins (2002) Post-purchase product satisfaction: Incorporating the effects of involvement and time describes changes in post-purchase product satisfaction for a durable goods purchase. Involvement and satisfaction variables were measured in a cross-sectional and a longitudinal study of car owners. Overall, consumers with high product involvement showed slightly greater satisfaction with their cars than lowinvolvement consumers over the term of ownership. However, in the 2-month period after purchase, consumers with high product involvement showed a decline in satisfaction, whereas low-involvement consumers' satisfaction Increased. The role of disconfirmation in these changes was investigated. Benefits and problems disconfirmation were found to make independent contributions to satisfaction judgments, and the strength and form of contribution varied with product involvement. These findings suggest that benefits and problems disconfirmation need to be measured separately in satisfaction research Claes Fornell(1992) examines that many individual companies and some industries monitor customer satisfaction on a continual basis, but Sweden is the first country to do so on a national level. The annual Customer Satisfaction Barometer (CSB) measures customer satisfaction in more than 30 industries and for more than 100 corporations. The new index is intended to be complementary to productivity measures. Whereas productivity basically reflects quantity of output, CSB measures quality of output (as 33
  34. 34. experienced by the buyer). The author reports the results of a large-scale Swedish effort to measure quality of the total consumption process as customer satisfaction. The significance of customer satisfaction and its place within the overall strategy of the firm are discussed. An implication from examining the relationship between market share and customer satisfaction by a location model is that satisfaction should be lower in industries where supply is homogeneous and demand heterogeneous. Satisfaction should be Higher when the heterogeneity/homogeneity of demand is matched by the supply. Empirical support is found for that proposition in monopolies as well as in competitive market structures. Likewise, industries in general are found to have a high level of customer satisfaction if they are highly dependent on satisfaction for repeat business. The opposite is found for industries in which companies have more captive markets. For Sweden, the 1991 results show a slight increase in CSB, which should have a positive effect on the general economic climate. Richard Oliver (2000) Response determinants in satisfaction judgment, examines that the effects of five determinants of satisfaction are tested as well as individual differences in satisfaction formation. Manipulations of attribution, expectancy, performance, disconfirmation, and equity are written into stock market trading scenarios in a full factorial design. Results show that all main effects and four ordinal two-way interactions are significant. Then, an individual level analysis is performed on the repeated measures data. Three clusters of subjects sharing Similar response tendencies (disconfirmation, performance, and equity) are identified and related to investment attitudes, outcome attitudes, and demographics. No consistent relationships are discovered, suggesting that the response differences reflect deeper behavioral tendencies. Implications of this approach for satisfaction paradigms, satisfaction theory, and individual satisfaction response orientations are presented. 34
  35. 35. CHAPTER - III 35
  36. 36. RESEARCH METHODOLOGY & DESIGN 3.1 Type of research Market Research Definition of marketing research is approved by the board of American marketing association (AMA) “Marketing Research is a function which links the customer and public to marketer thought information used to identity and defines market opportunity and problems; generate define and evaluate ,marketing action monitor marketing performance and improve understanding of marketing as a process. Simply marketing research is a systematic design collection analysis and reporting of data feeding relevant to a specific marketing situation facing the company, careful planning thought all stage of the research is a necessary. Objectivity in research in all important the heart of the scientific method is the object gathering and analysis of the information. The function of marketing g research within a company is to provide the information and analytical input necessary for effective planning of future marketing activity control of marketing operation in the present. 3.2 Objective of study To find out the customer satisfaction level through scientific tools like interviews and questionnaire. To finding the customer satisfaction level through direct interaction with the knowing their preference. This will include all the processes like asking questions from the customer through questionnaire which will be included in the primary survey once the primary survey is done. 3.3 RESEARCH INSTRUMENT The research instrument used in this study is a structured questionnaire‟ structured questionnaire are those questionnaire in which there are definite, concrete 36
  37. 37. and predetermined questions relating to the aspect, favor which the researcher collects data. The questions are presented with exactly the same order to all the respondents. 3.4 QUESTIONNAIRE DESIGN The structured questionnaires that were framed and designed consist of close ended, open ended, multiple choice, and Dichotonomos, rating and raking questions. 3.5 Date collection Selected around 100 persons for the interview. To help of the questionnaire, personal and telephonic interview. Collected the data through focus interviews. Concentrated on taking interview mainly from the following group of people. Architects/engineers----25% Retailer stockiest-------15% Wholesale -------10% Industrial bulk consumer-----20% General consumer------30% The survey was descriptive and sample chosen was mainly on the judgments of the researcher with the help and proper consultation of project guide. In this kind of sampling method, the population elements are based on the judgments of the researcher. Theresearchers‟ exercises judgment or expertisechooses the elements to be included in the sample,because he or she believes appropriate. In this survey, visited the dealers of the cement also to know the strategy of the companies, especially Ambuja cement to satisfy the customer as they buy the cement of any particular company…The main purpose of the descriptive research is description of the state of affairs as they exist at present. 37
  38. 38. 3.6 SAMPLING PROCEDURE Random sampling has been used in this study. Random sampling is used for selection of homogeneous sample for the study. It refers to selecting a sample of study objects on randomly. Thus research study may include study objects, which are randomly located. Research findings based on random sampling however, cannot be generalized. 3.7. PERIOD OF THE STUDY The duration of Study is 45 days and during the period, the following steps were taken. Objectives were set and questionnaire was finalized Data were collected and recorded Data were analyzed and interpreted Reports were generated 3.8. SAMPLE SIZE Pertaining to the limitations of the study, and in consultation with the company guide and the project guide, the sample size is taken as 100. Due to time and resource constrains the sample size is taken as 100 People in consultation with the industry Project guide. 3.9 PILOT SURVEY A pilot survey with 30 samples was conducted for testing the validity of the questions. It was found that there was no need for changed in the questionnaire and hence the same questionnaire was used for final survey also. 38
  39. 39. 3.10 LIMITATION OF THE STUDY Some customers were not able to understand some of the questions. The sample size was not enough and it failed to give the picture or the result of the survey (sample size=100) Some customers or dealers did not co-operate well. The questionnaire did not cover the whole aspect of the market potential of Ambuja cement. 39
  40. 40. SWOT analysis of AMBUJA CEMENT Strengths: Leading position in attractive Raipur cement market: Based on CMA data, Raipur cement manufacturing have consistently operated at the highestlevels of capacity among Raipur regions. We believe this reflects the strong demand in the Raipur region. For cement products relative to supply .further, based on capacity expansions announced by cement manufacturers. We expect cement plants in Raipur to continue to operate at high utilization levels and anticipate continued strong demand for our cement product in the near and medium-term.We believe that we well positioned to take advantages of this demand as the fourth cement manufacturer in Raipur region. Quality of products and strong brand name: We believe that brand name and reputation are important to retail purchases of cement in India. We have built a strong reputation among cement purchases by consistently providing high quality products. Webelieve that there is strong customer awareness of our brand Ambuja cement. We believe that our brand name and our reputation for consistently supplying high quality products provide us with a competitive in ensuring that cement dealers carry our products. 40
  41. 41. Extensive marketing and distribution network: We have a wide distribution network in Raipur. We also have a strong all India distribution network. Our distribution network consists 44 depots serviced by seven regional sales offices inDelhi,Haryana, UttarPradesh, Punjab, Rajsathan, Madhya Pradesh Gujrat, Chatishgad, and Maharashtra. Experience and technical knowhow: We have 30 years of experience in the India cement industry, which we provide us with the skills to maximize production deficiency,expand production capacity quickly and reduce costs. Over the years we believe that we have developed long-term customer relationship and a strong reputation for quality in addition. We have a proven track record of upgrading and modernizing our production capacities efficiently,having increased our production capacity at nimbahera by more than 80% from 1.54 million tons in 1998 to 2.8 million tons as ofSeptember 2005. Weakness: It is at relatively low position in other parts of country. Low attention on customer relationship management in some parts of the India. Due to the presence of other cement producers in Raipur and its adjoining areas the market share of the ambuja cement remains low. It has its own mines reserves but it has to consistently renew the lease failing which it will have no source of production at its major production site. 41
  42. 42. Opportunities: Rural project of state and central governments like dams and bridges can be a major opportunity for the company. Company is a part of reputed and huge Ambuja group. So it can expand its market in foreign areas also utilizing its brand leverage. Prestigious project can be major opportunities. It has major opportunities in real estate due to boom the related projects. Indian infrastructure is seeing a two there is also a lot of opportunity in the concemed sector. Major foreign project of governments can also be a major opportunity. Threats: Cost of production is high. So,company needs to reduce the cost of production and should concentrate on promotional schemes too. Presence of other big players in Raipur region threat for the company. Rising cost of new material is also a threat for the company. MARKETING STRATEGY AMBUJA CEMENT LIMITED: Segmentation: The company has segmented the market sells its products all over in India with major presence in Raipurregion. 42
  43. 43. PRICING STRATEGY: Before deciding the price of the cement company has Considered the following points:COST FACTOR: Manufacturing cost Transporting cost Storing and material handling Other cost Officer expenses Other expenses Tax and interest Competitors price and offering MARKETING STRATEGY: Company conduct market survey to identify market and customersresponse,company position in the market etc. there is R and D department which continuously trying to improve the quality of the product at the minimum cost and trying to meet the demand of the customer. MARKETING STRATEGY FOR COMPETITORS: Company always keeps an eye over its competitor‟s activities and its offerings like different promotional schemes; product price etc. It also takes proper action according to competitor‟s strategy. 43
  44. 44. DISTRIBUTION STRATEGY: The company is distributing cement by following ways:Direct to customer Depot 1. Whole seller 2. Retailer Director General of sales and disposal 1. Tender sales 2. Government department Non trading sales 1. Wegon load 2. Institutional sales Method for developing dealers: Company conducts the survey also to motivate the sub dealer and advertise the programmer. The company takes profile of the dealers and gives dealership only to those in a particular area where the company is not having already existing dealer. Marketing strategy: To increase sales in high realization. To develop stockiest consisting of retailer or final outlet which directly sells to customer. Increasing sales of the branded cement, ambuja cement. Marketing distribution network more efficient and cost effective. The company has a dedicated team of highly skilled professionals and experienced application engineering. They are functioning in an advisory capacity. Besides handling their constructional problem the cell offering all kind of assistance in the selection of the right cement for different application to insure coat effective, durable and date construction 44
  45. 45. CHAPTER – IV 45
  46. 46. DATA ANALYSIS AND INTERPRETATION Data Analysis The data after collection has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. This is essential for a scientific study and for ensuring that we have all the relevant data. Processing implies editing, coding, classification and tabulation of collected data so that they acquiescent to analysis. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exists among data – groups. Thus “in the process of analysis, relationships or difference supporting or conflicting with original of new hypothesis should be subjected to statistical tests to significance to determine with what validity data can be said to indicate any conclusions”. Analysis of data in a general way involved a number of closely related operations that are performed with the purpose of summarizing the collected data and organizing them in such a manner that they answer the research questions. 46
  47. 47. 1. Have you purchased Ambuja Cement ever? Parameters YES NO No. of 70 30 100 70 30 100 respondents % NO 30% YES 70% INTERPRETATION As given in the pie chart 70% of the customers respondents they are purchased Ambuja cement and 30% of the customers respondents they are not purchased Ambuja cement ever. 47
  48. 48. 2. IF YES, how did you come to know about AMBUJA CEMENT? parameters % 1.TV COMMERCIAL 40 40 2.DEALER/WHOLE SELLER 20 20 3.ARCHITECTURE/Eng. 25 25 4.builder 45% No. of respondents 15 15 TV COMMERCIAL, 40% 40% ARCHITERCURE, 25 % 35% 30% DEALER, 20% 25% 20% BUILDER, 15% 15% 10% 5% 0% TV COMMERCIAL DEALER ARCHITERCURE BUILDER INTERPRETATION As given in the Bar graph 40% of the customers respondents they got information about Ambuja cement from T.V. COMMERCIAL and 20% of the customers got information about Ambuja cement from DEALER,25% of the customer got information about Ambuja cement from ARCHITERCURE/ENG/ information about Ambuja cement from BUILDER. 48 and 15% of the customer got
  49. 49. 3. What are the influencing factors for yourpreference? Parameters No of respondents % 1.price 20 20 2.quality 60 60 3. convenience 15 15 4.all of above 05 05 All of the above 5% Price 20% Convenience 15% Quality 60% INTERPRETATION As given in the pie chart 60 % of the customers preferring Ambuja cement for its better quality, 15% of the customers preferring Ambuja cement for its convenience, 5% of the customers preferring ambuja cement for purchased Ambuja cement for its all quality and 20% of the customers preferring Ambuja cement for its price. 49
  50. 50. 4. Are you satisfied with AMBUJA CEMENT? Parameters No. of respondents % Yes 90 90 No 10 10 NO 10% YES 90% INTERPRETATION As given in the pie chart 90% of the customers are satisfied with the Ambuja cement and 10% of the customers are not satisfied with the Ambuja cement. 50
  51. 51. 5. Doyou think convenience is matter? Parameters No of respondents % Yes 80 80 No 20 20 0% 0% NO 20% Yes 80% INTERPRETATION As given in the pie chart 80% of the customer‟srespondent‟sconvenience is important and 20% of customer‟srespondent‟sconvenience is not matter. 51
  52. 52. 6. If AMBUJA CEMENT is not convenience to you than will you shift to any other brand? Parameters No. of respondents Yes 95 No 05 NO 5% YES 95% INTERPRETATION As given in the pie chart 95% of the customer respondents they want to change their brand as per their convenience and 05% of the customer‟s respondentsthey don‟t want to change their brand. 52
  53. 53. 7. Areyou satisfied with the price as per the quality? Parameters No. of respondents % YES 90 90 NO 10 10 NO 10% YES 90% INTERPRETATION As given in the pie chart 90% of the customer‟s respondents they are satisfied with the price as per quality of Ambuja cement and 10% of the customers respondents they are not satisfied as with the price as per quality of Ambuja cement. 53
  54. 54. 8. If Yes, Do you think the quality is better as compare to the competitors? Parameters No. of respondents % YES 70 70 NO 30 30 NO 30% YES 70% INTERPRETATION As given in the pie chart 70% of the customer‟s respondents the quality is better than as compared to other cement company and 30% of the customers are respondents the quality of Ambuja cement is not better as compared to the competitors. 54
  55. 55. 9. It is reliable as compare to the competitors? Parameters No. of respondents % YES 96 96 NO 04 04 0% NO 4% Yes 96% INTERPRETATION As given in the pie chart 96% of the customers respondents the Ambuja cement is reliable as compared to the competitors and 40% of the customer‟srespondents the Ambuja cement is reliable as compared to the competitors. 55
  56. 56. 10. Out of 5 which rank you want to give to AMBUJA CEMENT? Parameters No. of respondents % Good 40 40 Better 15 15 Avg. 30 30 Bad 05 05 No reply 10 10 45 40 35 30 25 20 15 10 5 0 GOOD BETTER AVG. BAD NO REPLY INTERPRETATION As given in the Bar graph 40 of the customers respondents the Ambuja cement is GOOD, 15 customers respondents its BETTER,30 customers are respondents its AVERAGE,5 customers are respondents its BAD and 10 customers are not responds. 56
  57. 57. CHAPTER – V 57
  58. 58. SUMMARY OF FINDINGS Customer satisfaction with respect to the AMBUJA CEMENT is satisfactory. Despite the increasing cost of the raw material the company is able to bring down the cost of the manufacturing through procurement of raw materials by the mines which are located nearby. Customers come to know about AMBUJA CEMENT mainly from hoardings many people are illiterate. Customers want more prizes and dealers want more incentives,gift and tours. Dealers also want more meeting with officials of the cement companies. Bulk consumers want more and more cash discount. 58
  59. 59. CHAPTER – VI 59
  60. 60. RECOMMENDATIONS The company should concentrate on more aggressive advertisement to promote their products. The company should launch more and more promotional schemes like two for the price of one “or more discount coupons. Company should do more to promote their brand as customers prefer good brand while buying any cement. Customer prefer price as an important factor while buying any cement so the company should fix the price accordingly. 60
  61. 61. CONCLUSIONS Company should concentrate on direct meeting with the customer as they are the most vital element in deciding the growth or decline of any company. Company should decrease the response time to the complaint received. The company should fix certain amount of cement especially for the dealers and give them free of cost as incentives. The company should appoint more and more persons for the promotions of the brands. Company should decrease delivery time of the cement. 61
  62. 62. CHAPTER – VI1 62
  63. 63. BIBLIOGRAPHY Books referred: Marketing research-----Naresh kumar malhotra,Pearson edition. Marketing management --------Philip kotler,Pearson edition. Customer satisfaction research management------Derek allen,Pearson edition Journals/newspapers: Annual journal of ambuja cement Labour and industrial chronicle Indian cement review Web sites: 63
  64. 64. Annexure S.No: Date: QUESTIONNAIRE Name of…………………………………………………………………………………….. customer..........................................................................Center.............................. Postal address........................................................................................................... Contact no…………………………………………………………………………………… 1Q.Have you purchased AMBUJA CEMENT ever? YES [ ] NO [ ] Q2.IF YES, How did you come to know about AMBUJA CEMENT? a.TV commercial c.Archi/Eng b.Dealer/wholesaler d.Builder Q3.What are the influencing factors for your preferences? a.Price b.Quality c.Convenience d.All of above 64
  65. 65. Q4.Are you satisfied with AMBUJA CEMENT? Yes [ ] No [ ] Q5.Do you think convenience is matter? YES [ ] NO[ ] Q6.IF the AMBUJA CEMENT is not convenience to you than will you shift to other brands? YES [ ] NO [ ] Q7. Are you satisfied with the price as per the quality? YES [ ] NO [ ] Q8.IT is reliable as compare to the competitors? YES [ ] NO [ ] Q9.IF YES, Do you think the quality is better as compare to the competitors? YES [ ] NO [ ] 65
  66. 66. Q10.Out of 5 which rank you want to give to the AMBUJA CEMENT? a.GOOD b.BETTER c.AVERAGE d.BAD e.NO REPLY 66