Dealers' satisfaction of kcp cement ltd.

21,216 views

Published on

Published in: Business

Dealers' satisfaction of kcp cement ltd.

  1. 1. 1.0 INTRODUCTION: Marketing is a communication process that has the purpose of individualsor groups - that are directly or indirectly able to purchase - aware of products andservices that may satisfy their existing or newly-identified needs and wants.Marketing is defined by the American Marketing Association as the activity, setof institutions, and processes for creating, communicating, delivering, andexchanging offerings that have value for customers, clients, partners, and society atlarge. The term developed from the original meaning which referred literally togoing to market, as in shopping, or going to a market to buy or sell goods orservices.Dealer Any person who carries on business in purchasing, selling, supplying ordistributing goods and also includes works contractor, company, Co-operativeSociety, Broker, Commission Agent, Auctioneer or any other mercantile Agent forthe consideration of cash, commission and deferred payment.There are two types of dealer such as: 1) Registered dealer. 2) Casual dealerWholesaler A wholesaler buys goods in large quantities from their manufacturers orimporters, and then sells smaller quantities to retailers, who in turn sell to thegeneral public. 1
  2. 2. Many shops are part of a chain: a number of similar shops with the same nameselling the same products in different locations. The shops may be owned by onecompany, or there may be a franchising company that has franchising agreementswith the shop owners.Retailer A retailer buys goods or products in large quantities from manufacturers orimporters, either directly or through a wholesaler, and then sells individual items orsmall quantities to the general public or end user customers, usually in a shop, alsocalled store. Retailers are at the end of the supply chain.DEALER SATISFACTION Satisfaction in level of persons felt state resulting from company’s productsperceives performance in relational to the person’s expectations. Satisfaction is afunction of the difference between the perceived performance and expectations.Company seeks to win in today’s market. The must track their declaresexpectations, perceive company performance and dealers satisfaction. Whileassessing the satisfaction level a company must not conclude that it can get fullpicture of dealer satisfaction and dissatisfaction by simply running complaints andsuggestions.As some times dealers may feel that their complaints are minor or that they will bemade to feel stupid , or that normally will be offered the results is that the companyhas need Lesley lost dealers. Therefore companies instead of using complaints level as measure of dealer’ssatisfaction, obtaining a direct measure of dealer satisfaction of conducting 2
  3. 3. periodic survey would provide more appropriate measures. The questionnaire canbe made to a random sample of their recent customers.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 can be asked to list out problems they have, had with theoffer and to list out improvements they could suggest companies would also askthe respondents to rate various elements of the offer in terms of the importance ofeach element and how well the company has performed Exclusive dealers needed to bring dealers satisfaction. Many dealers like todevelop exclusive channels for their products. The strategy in which the producerallows only certain concepts to carry its products is called exclusive design whenthe producer requires that these dealers should not handle expeditor products itsstrategy is called exclusive dealing, both parties benefits from exclusivearrangements. Cement industry is one of the major industries in India. Today there are130 large cement plants and more then 300 mini cement plants operating in India,producing cement under different brands and grades. Though most of thecompanies are restricted to surrounding states, some spread throughout India. Alocal market to a city, a district, or a state is composed of a variety of brandsleaving to the customer a wide range of choice. ‘In the market, the movement of cement largely depends on the dealer’spromotion, constructor or contractor’s awareness and advice to the customer and toan extent on the awareness of the customer. Dealer is one of the key persons who 3
  4. 4. can affect the movement of a particular brand of cement. A marketer needs theinformation regarding the dealer’s satisfaction on different factors like productquality, service, price, supply and satisfaction of company’s promotional activitiesso as to estimate his willingness to push the brand. The study attempts to analyze the satisfaction of the dealer regarding variousfactors corresponding to KCP CEMENTS and the brand preference by the dealers.This helps the marketers of KCP CEMENTS to estimate the market position ofKCP CEMENTS and take steps for their expansion of business.2.0 NEED OF STUDY:  To study the dealers satisfaction levels towards KCP cements regarding promotional activities, Supply, quality and quantity of cement and to know demand level of KCP cements in the market by the customers. 4
  5. 5. 3.0 OBJECTIVES:  To find the Dealer’s Satisfaction Level with KCP CEMEMTS.  To find the factors influencing the dealers to deal with KCP CEMEMTS.  To study various areas that needs improvement in KCP cements from dealer point of view.  To study the impact of sales promotion on sales.  To find the dealer’s suggestions if any with respect to KCP CEMEMTS. 5
  6. 6. 4.0 SCOPE OF THE STUDY:  The study is confined on the selected dealers in Nalgonda and Hyderabad Districts.  To know the dealer’s satisfactory levels with quality, supply, packing, service of KCP CEMENTS and promotional activities by the company.  The study enables to know the expectation of the dealers and consequently the customers.  The project highlights the scope for future improvements on the basis of present scale. 6
  7. 7. 5.0 LIMITATIONS OF THE STUDY:  Since the survey was done only in Nalgonda and 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 results may not be accurate because the survey is on KCP CEMENTS dealers and hence there is a possibility of bias in their responses.  The attitude, perception of the customers and the market situations in Nalgonda and Hyderabad districts differs from other market so same approach may not be beneficial. 7
  8. 8. 6.0 RESEARCH METHODOLOGY: Research methodology describes how the research study was undertaken.This includes the specifications of source of data, research design, and method ofdata collection, the sampling method and the tools used.SAMPLE DESIGN:Geographical area: The study is conducted in two districts Nalgonda and Hyderabad.Duration of project: The duration of project work is about 45 daysPopulation: Population for this research is set of dealers those who are dealing with KCPCEMENTS in Nalgonda and Hyderabad districts.Sample units: The sampling units used by the researcher for this research, are those whoare dealing KCP CEMEMTS.Sample size: The number of samples collected by the researcher is 80 dealers 8
  9. 9. Sampling procedure / Sampling method: The sampling method used for this study is non-profitability conveniencesampling, which is selected according to the easy and convenience of theresearcher.SOURCE OF DATA Primary data: The researcher collected both 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: Research instrument used for data collecting is questionnaire and interviewschedule.Questionnaire The questionnaire is prepared in a well-structured and non disguised form sothat it is easily understandable and answerable by everyone. The type of questions 9
  10. 10. include in the questionnaire are open-ended questions, multiple choice questionsand dichotomous questions.Interview ScheduleThe interview method of collecting data involves presentation of oral-verbalstimuli and reply in terms of oral-verbal responses. Then the responses are filled upin the questionnaire, for further analysis.7.0FRAME WORK OF ANALYSIS:-STASTICAL TOOLS USED FOR ANALYSIS: The researcher carries out analysis through various statistical tools. Thestatistical analysis is useful for drawing inference from the collected information.  Simple percentage analysis  Bar diagrams  Pie charts 10
  11. 11. INDUSTRY PROFILESector structure/Market size:India is the 2nd largest cement producer in world after china .Right from layingconcrete bricks of economy to waving fly over’s cement industry has shown andshows a great future. The overall outlook for the industry shows significant growthon the back of robust demand from housing construction, Phase-II of NHDP(National Highway Development Project) and other infrastructure developmentprojects. Domestic demand for cement has been increasing at a fast pace in India.Cement consumption in India is forecasted to grow by over 22% by 2009-10 from2007-08.Among the states, Maharashtra has the highest share in consumption at12.18%,followed by Uttar Pradesh, In production terms, Andhra Pradesh is leadingwith 14.72% of total production followed by Rajasthan. Cement production grewat the rate of 9.1 per cent during 2006-07 over the previous fiscals total productionof 147.8 mt(million tons). Due to rising demand of cement the sales volume ofcement companies are also increasing & companies reporting higher production,higher sales and higher profits. The net profit growth rate of cement firms was85%.Cement industry has contributed around 8% to the economic development ofIndia. Outsiders (foreign players) eyeing India as a major market to invest in theform of either merger or FDI (Foreign Direct Investment). Cement industry has along way to go as Indian economy is poised to grow because of being on verge ofdevelopment. 11
  12. 12. Despite the growth of Indian cement industry India lags behind the per capitaproduction. Supply for cement is expected to remain tight which, in turn, will pushup prices of cement by more than 50%. The most important factor for better pricesis consolidation of the industry. It has just begun and we will see moreconsolidation in the coming years. Other budget measures such as cut in importduty from 12.5 per cent to nil etc. are all intended to cut costs and boostavailability of cement.One of the strategies is to decrease dependence on road & opt for sea logistics asthat can cut transportation cost by 30- 50 %. Some plants are adopting futuristicplan such as setting up captive power plant, moving closer to the customers bycreating clicker, crushing, and capacity in key markets, to be more customercentric to generate better revenue. India should push for stricter regulations ofmarket place as to control the prices of big companies and prevent them fromforming cartels and exchanging information. To fight with the high inflation,government wants to import more cement from Pakistan .However cement prizesare not very much high as other items but still they are increasing. And the reasonof high prize is surging cost of raw material and transportation cost. Apart fromthis government also discussed with cement industry not to have increase in prizesand keep consumer interest in mind.Now the question arise in front of the government is whether the demand by thegovernment is possible to increase through expenditure on infrastructure or notaccording to the current state of economy when so many crises are going on orhow the government allocation of US$ 3.23 billion for the National HighwayDevelopment, Project will keep the demand for cement alive? 12
  13. 13. India is the worlds second largest producer of cement after China, withcement companies adding nearly eight million tones (MT) capacity in April 2009,taking the total installed capacity to 219 MT and dispatch of 16.65 million tonesduring April 2009. A few of the leading manufacturers are the UltraTech/Grasimcombine, Dalmia Cements, India Cements, and Holcim etc. The cement industrymay add 40-45 MT of capacity this fiscal, a 21 per cent increase over the installedcapacity at 212 MT in 2008-09.With the boost given by the government to various infrastructure projects, roadnetworks and housing facilities, growth in the cement consumption is anticipatedin the coming years. Another 50 MT capacity is likely to be added this year,according to industry sources.With almost total capacity utilization levels in the industry, cement dispatches havemaintained a 10 per cent growth rate. Total despatches grew to 170 MT during2007–08 as against 155 MT in 2006–07.Moreover, cement despatches were 18.12 MT in March 2009, showing a growth of10.35 per cent as compared to 16.42 MT in March 2008. During March 2009,cement production was 18.10 MT, registering a growth of 10.43 per cent ascompared to 16.39 MT in March 2008.Despite concerns of slowdown, led by achange in economic scenario along with excess supply pressure; the cementindustry has ended FY 2008-09 on a strong note. According to experts, the fourth quarter of the current financial year 2009will report a 2-3 per cent growth in margins due to rise in prices and 10-12 per centyear-on-year growth in sales due to sudden increase in demand this quarter. 13
  14. 14. Technological change Continuous technological upgrading and assimilation of latest technologyhas been going on in the cement industry. Presently, 93 per cent of the totalcapacity in the industry is based on modern and environment-friendly dry processtechnology and only 7 per cent of the capacity is based on old wet and semi-dryprocess technology. There is tremendous scope for waste heat recovery in cementplants and thereby reduction in emission level.New Investments • Shree Cements will invest almost US$ 244.12 million this year, of which half will be invested towards setting up two grinding units at Rajasthan and Uttarakhand to augment its capacity. The other half will be towards the two power plants in Bangor. • ACC Ltd will spend US$ 575 million on capacity expansion in 2009 and 2010. ACC is expanding capacity by a third to 30 MT by 2010. • Binani Cement has signed a memorandum of understanding with the Gujarat government to set up a 2.5 MTPA Greenfield cement plant in Gujarat at a cost of US$ 169.40 million. Binani Cement has also initiated talks with a few foreign institutional investors (FIIs) to raise US$ 307.99 million for its new projects. • Bheema Cements Ltd is planning to invest US$ 116.42 million in setting up a new manufacturing line of 1.5 MT capacities at its plant in Andhra Pradesh. 14
  15. 15. Mergers and Acquisitions (M&As) A growing and robust economy was noteworthy in terms of the total number ofmergers and acquisitions (M&A) in India 2007, with the cement sectorcontributing to 7 per cent to the total deal value. • Holcim strengthened its position in India by increasing its holding in Ambuja Cement from 22 per cent to 56 per cent through various open market transactions with an open offer for a total investment of US$ 1.8 billion. Moreover, it also increased its stake in ACC Cement with US$ 486 million, being the single largest acquirer in the cement sector. • Leading foreign funds like Fidelity, ABN Amro, HSBC, Nomura Asset Management Fund and Emerging Market Fund have together bought around 7.5 per cent in Indias third-largest cement firm, India Cements (ICL), for US$ 124.91 million. • Cimpor, the Portugese cement maker, paid US$ 68.10 million for Grasim Industries 53.63 per cent stake in Shree Digvijay Cement. • CRH Plc, the worlds second biggest maker and distributor of building materials, acquired a 50 per cent stake in My Home Industries Ltd for almost US$ 372.64 million. • Vicat SA, a French cement maker acquired a 6.67 per cent stake in Hyderabad-based sagar Cement for US$ 14.35 million. 15
  16. 16. Government InitiativesGovernment initiatives in the infrastructure sector, coupled with the housing sectorboom and urban development, continue being the main drivers of growth for theIndian cement industry. • Increased infrastructure spending has been a key focus area over the last five years indicating good times ahead for cement manufacturers. • The government has increased budgetary allocation for roads under National Highways Development Project (NHDP). • Appointing a coal regulator is looked upon as a positive move as it will facilitate timely and proper allocation of coal (a key raw material) blocks to the core sectors, cement being one of them.Road AheadAccording to a report by the ICRA Industry Monitor, the installed capacity isexpected to increase to 241 MTPA by FY 2010-end. Indias cement industry islikely to record an annual growth of 10 per cent in the coming years with higherdomestic demand resulting in increased capacity utilization.Moreover, according to the Centre for Monitoring Indian Economy (CMIE),cement production is expected to grow by 8.1 per cent and demand for the same islikely to rise by a healthy 7-7.5 per cent in FY 2009-10. 16
  17. 17. CEMENT INDUSTRY & SERVICES An Overview The cement industry is experiencing a boom on account of the overallgrowth of the Indian economy. The demand for cement, being a derived demand,depends primarily on the industrial activity, real estate business, constructionactivity, and investment in the infrastructure sector. India is experiencing growthon all these fronts and hence the cement market is flourishing like never before.Indian cement industry is globally competitive because the industry has witnessedhealthy trends such as cost control and continuous technology up gradation. Globalrating agency, Fitch Ratings, has commented that cement demand in India isexpected to grow at 10% annually in the medium term buoyed by housing,infrastructure and corporate capital expenditures. Current Scenario The Indian cement industry is the second largest producer of quality cement,which meets global standards. The cement industry comprises 130 large cementplants and more than 300 mini cement plants. The industrys capacity at thebeginning of the year 2008-09 was 198.30 million tonnes.Cement production during April to October 2008-09 was 101.04 million tonnes ascompared to 95.05 million tonnes during the same period for the year2007-08.Despatches were 100.24 million tonnes during April to October 2008-09whereas 94.33 million tonnes during the same period for the year 2007-08.DuringApril-October 2008-09, cement export was 1.46 million tonnes as compared to2.16 million tonnes during the same period for the year 2007-08. 17
  18. 18. Technological Advancements Modernization and technology up-gradation is a continuous process for anygrowing industry and is equally true for the cement industry. At present, the qualityof cement and building materials produced in India meets international standardsand benchmarks and can compete in international markets. The productivityparameters are now nearing the theoretical bests and alternate means. Substantialtechnological improvements have been brought about and today, the industry canlegitimately be proud of its state-of-the-art technology and processes incorporatedin most of its cement plants. This technology up gradation is resulting in increasedcapacity, reduction in cost of production of cement. Future Outlook Considering an expected production and consumption growth of 9 to 10 percent, the demand-supply position of the cement industry is expected to improvefrom 2008-09 onwards, resulting in an expected price stabilization. The cementindustry is poised to add 111 million tones of annual capacity by the end of2009-10 (FY 10), riding on the back of an estimated 141 outstanding cementprojects. 18
  19. 19. Major PlayersThe major players in the cement sector are: • Ultratech Cement • Century Cements • Madras Cements • ACC • Gujarat Ambuja Cement Limited • Grasim Industries • India Cements Limited • Jaiprakash Associates and • JK Cements. • Holcim • Lafarge • Bharathi cement • Italcementi 19
  20. 20. STATISTICS Cement (million tonnes) 2009-10 2008-2009 (Apr-Oct)(a) Production 141.04 105.05 Despatches(b) 139.24 101.33 (Including Export)(c) Export 2.28 1.56(d) Cap. Uti.(%) 92 85 Source: Cement Manufacturers’ Association 20
  21. 21. COMPANY PROFILE The KCP Group of Companies had its beginning in the year 1941. It startedwith a single co-operative sugar factory in the state of Andhra Pradesh in SouthIndia with a simple philosophy... Modernize... Indigenous...Never compromise onTechnology ´. These were the words of our founder Shri V. Ramakrishna who hadstepped down at the age of 51 in those pre-independence turbulent days (before1947) to take up this challenge. Since then The KCP Group has diversified intoCement and Heavy Engineering. The KCP Cement Division went operational in1958 and was Indias first dry process kiln. The KCP Heavy Engineering Divisionwas established in 1955 as a sprawling High Technology Complex in the suburb ofChennai. This complex is one of the largest and highly integrated centers withCasting, Fabrication and Machining facilities required in the manufacture of largeinfrastructure machinery for core Industries like Sugar, Cement, Steel and Power. Our Chairman & Managing Director Dr. V.L Dutt and Joint ManagingDirector Mrs. V.L. Indira Dutt have been the guiding architects for the group´scontinued progress. Under their leadership we have grown from strength tostrength into a Rs. 150 Crore ($ 50 million) company. An important highlight inthe financial performance is its 58 year uninterrupted dividend record and its bonuscapitalization of shareholder wealth (98% of share capital) which is the 3rd highestin India.KCP Philosophy 21
  22. 22. KCP’s philosophy is to “modernize, Indigenize, Never Compromise ontechnology” This has taken KCP from being a single co-operative sugar factory in1941 to being one of the largest and most well diversified industrial houses inIndia.KCP HR Mission KCP’s human resources development & services department will add valueto all its Units and associate companies by ensuring that the right person isassigned for the right job and that they grow and contribute towards organizationalexcellence.KCP Vision KCP’s vision is to achieve organizational excellence through innovation.KCP Quality policy Committed to the manufacture of heavy engineering equipment for variousindustries as per mutually accepted requirements of our customers. Our commitment towards total quality management is to forge the humanresources of our organization into a team that promotes continual improvement inquality of products and services.KCP, a pioneer in producing premier cement iscommitted to maximize customer satisfaction and keep a clean and safeenvironment.We are certified for ISO 9001 and ISO 9002 standards in ourengineering and cement production units respectively. 22
  23. 23. KCP GROUPS• Fives cail-KCP Limited• KCP Technologies limited• KCP Biotech limited• KCP Vietnam industries limited• KCP cements• KCP Heavy Engineering UnitDEPARTMENTS IN KCP LIMITED• Human Resource• Marketing• Finance• Civil• Production planning & control (PPC)• Industrial Engineering Department(IED)• Design• Information Technology• Purchase or procurement• Stores• Machine shop• Foundry 23
  24. 24. • Fabrication• Mechanical & electrical maintenance• QualityKCP Cement Divison, setup at Macherla, Andhra Pradesh with a state-of-the-artcements manufacturing plant. India’s first dry process kiln was installed atMacherla by HUMBOLD AG, Germany in 1958(while still a prototype in Europe).KCP Cement Division has a State-of-the-art Cement manufacturing plant atMacherla, Andhra Pradesh, South India. Strong emphasis on new technologycharacterizes all operations at KCP’s Macherla plant. India’s 1st dry process kilnwas installed here in 1958 by HUMBOLDT, Germany even while it was still aprototype in Europe.In 1962 KCP installed a second wet process kiln in collaboration with FIVESLILLIE CAIL, France.Today, KCP’s 100% modernized cement plant with a World Bank funded outlay ofRs.367 million incorporates the latest technology such as the energy-efficient dryprocess, with a two support kiln and a five stage pre-heater with flash calciner.KCP also incorporates a sophisticated centralized process control system withhardware and software from SIEMENS, Germany. 24
  25. 25. Commissioned: 1958 Capacity: 450,000 tpa (tons per annum) Employees: 775 Products: KCP Grade 53 Portland, Cement Achievements: ISO 9002 since 1994 Significant Nagarjuna Sagar Dam built with 1.34 million Customer: metric tons of KCP CementStrengths:Power generated from KCPLs thermal, hydel and wind power plants is used in theengineering and cement plants, thereby saving energy costs.Weaknesses:Caught in a legal hassle related to wheeling charges and excess on captive powergeneratedOpportunities:Boom in core infrastructure sector, leading to a demand for heavy machinery. Fallin prices of raw materials could bring down manufacturing costs, currently at24.58% of the total costs.Threats: 25
  26. 26. Insufficient rains could hamper production of hydel power. They could also affectagricultural produce which is a raw material for the biotech division. Appreciationof the Indian Rupee might lead to a loss in export revenue. Rising prices oflimestone and fly-ash may put an upward pressure on the manufacturing costs ofcement.GROUP OF KCP COMPANIESCEMENT INDUSTRY OVERVIEW: The Company operates a plant of 5, 00,000 tones annual capacity atMacherla in Guntur District of Andhra Pradesh. During the year under report, theCompany marketed cement in Andhra Pradesh, Pondicherry and parts of TamilNadu. The Company’s prospects were in tune with the realization in AndhraPradesh since 90% of the production was marketed in Andhra Pradesh.State of the Industry: The entire country is witnessing increase in demand. Demand outstrippedsupplies in the entire country, as also in Andhra Pradesh. The Company’sproduction capacity is 4% of the total production capacity available in the State. 26
  27. 27. Outlook: The company produced predominantly Portland cement in the current year.Demand for Cement increased substantially during the year. Hence prices areexpected to firm up and rule at higher levels as compared to previous year allthrough the Country. The Company has installed and commissioned in April 2007,a Waste Heat Recovery System, at a cost of Rs.1150 lakhs, which is expected togenerate 1.75 MW electricity. In furtherance of clean environment, a clinker silohas been built at a cost of Rs.1000 lakhs during the financial year 2006-07.POWEROverview: The Company has five mini-hydel units aggregating to 8.25 MW capacitieson the Guntur Branch Canal of the Nagarjuna Sagar Dam. This being an irrigationcanal, water is expected to be available for seven to eight months of the year.Electricity generated in these units is wheeled to the Company’s Cement Unit foruse. Generation in excess of the consumption at the cement unit is banked on amonthly basis and is to be used within twelve months of generation. Electricityunused even after twelve months is sold to the Grid. Electricity used in the cementfactory will be deducted from the monthly bills and will get a relief at the H.Trates, while electricity sold to grid will be paid for at the prevalent purchase priceas determined by APERC.Risks: Except one scheme all the other four are operating at FULL capacity due togood inflow of water. Further, water flow in the canal is unpredictable which is 27
  28. 28. entirely dependant on inflow of water to Nagarjuna Sagar dam. Normal monsoonduring the season improved storage in Nagarjuna Sagar Dam. Consequently,during the year under report, adequate flow of water was available in the Canal.Generation was normal.ENGINEERING The Company operates a versatile engineering facility that is capable ofmanufacturing heavy mechanical equipment to a given design for variousindustries. The Unit has an integrated facility comprising of foundry, heavyfabrication and machine shop facilities. The Arakonam facility was effectivelyused to augment production of foundry products and fabrication. Due to gooddemand in the Cement, Sugar and Infrastructure sectors, the operation of theEngineering Unit at Tiruvottiyur was substantially better than the previous year interms of turnover and profits.Overview:Status of capital goods sector:During the year capital goods industry has done well in both domestic and exportmarkets.Opportunities: Widening of the product range has also widened the customer base. This isleading to better value addition.Risks: Product mix is the deciding factor affecting the performance of this segment.Consequently, this segment results are open to variations in profits depending onthe Order profile. 28
  29. 29. Outlook: With the orders on hand of about Rs. 120 Crores and the existing product-mix, performance during fiscal 2007-2008 is expected to yield similar results asthat of the year under report. The modernization programmed being implementedat a cost of Rs. 2200 lakhs will enable the Company to increase productivity and tocompete in higher value added segment.CORPORATE INVESTMENTSFives Cail K.C.P. Limited: Operations during the year ended 31.03.2007 were better than the previousyear. New domestic orders fructified on revival of sugar industry. The companyreturned profits in the current year and was able to wipe out accumulated losses.Outlook for the ensuing year is optimistic. The Company has declared an interimdividend of 225% for the year ended 31.3.2007.KCP Vietnam Industries Limited: KCP Vietnam Industries Limited concluded the season with a crush of 2,93,671 tones and a recovery of 8.92%. Realization in 2006 was higher than that ofthe previous year, due to shortage of sugar in Vietnam. For the year ended31-12-2006, the Company earned a profit of Rs. 507 lakhs. After wiping out theentire accumulated losses, a profit of Rs. 110 lakhs is carried to Balance Sheet.Dong Xuan Factory crushed 12757 tones of cane and the syrup was taken intoproduction process at the Phu yen factory. 29
  30. 30. K.C.P. Biotech Limited: During the year under report, paprica (chilli) color extract was exported toUSA, Quality of the products has been acceptable to the international buyers.Natural color market demand being vast, growth potential offered by this businessis impressive. However, production process is under stabilization and the companyis focusing to get quality manpower to improve the efficiency of the Plant. Effortsare on to improve yields, which is essential to make this business segmentprofitable. For the year under report this unit posted a loss of Rs. 225.74 lakhs.Investment in Sugar: Prospects of the parent Company’s investment in Vietnam improvedsubstantially, with the excellent demand for the sugar in Vietnam and this trend islikely to continue for the coming year also. During the year under review thisCompany posted profits.Investment in Bio-Technology: Natural color extraction facility fully operational during the year. Further,production process is yet to stabilize. While there is a good demand for theproducts, and quality has been established to international requirements, returnsdepend upon appropriate manufacturing process.KCP Cement:The KCP Group of Companies had its beginning in the year 1941. It started with asingle co-operative sugar factory in the state of Andhra Pradesh in South India witha simple philosophy Modernise Indigenous..Never compromise on Technology ´ . 30
  31. 31. These were the words of our founder Shri V. Ramakrishna who had stepped downat the age of 51 in those pre-independence turbulent days (before 1947) to take upthis challenge.Since then The KCP Group has diversified into Cement and Heavy Engineering.The KCP Cement Division went operational in 1958 and was Indias first dryprocess kiln.The KCP Heavy Engineering Division was established in 1955 as asprawling High Technology Complex in the suburb of Chennai. This complex isone of the largest and highly integrated centers with Casting, Fabrication andMachining facilities required in the manufacture of large infrastructure machineryfor core Industries like Sugar, Cement, Steel and Power 31
  32. 32. 2007 KCP Biotech Limited got merged with the KCP Limited.2006 Wind Power generating Unit setup at Uthumalai village in Tirunelveli Dt of Tamil Nadu.2002 KCP Biotech Limited setup at Biotech Park, Shameerpet, Hyderabad to manufacture biotech related products.2001 KCP Heavy Engineering Plant II setup at Arakonam near Chennai, to execute medium to large sized fabrication projects.1999 KCP Hydel Power Division setup at Nekkarikallu, Andhra Pradesh on the Guntur Canal of Krishna river to generate 8 MW of power.1999 KCP Vietnam Industries Limited, a fully owned subsidiary of the KCP Limited setup to manufacture sugar at Thua Thien Hue Province at Central Vietnam. This 2500 TCD plant was shifted to Son Hoa District, Phuyen Province in 2001.1999 KCP Technologies Limited setup to provide high quality IT Solutions & Engineering Technical Services.1995 FCB-KCP Limited, (now Fives Cail-KCP) setup as a joint venture with Fives Cail Group of France for the design and manufacture of Sugar Plants.1995 KCP Sugar Manufacturing Division demerger into a separate company, KCP Sugar & Industries Limited.1984 Fuller KCP Limited, a joint venture with Fuller International Inc, USA was launched, for the design and manufacture of large-sized cement plants and other mineral processing equipment. KCP divested its stake to FL Smidth, Denmark in 1996.1967 EIMCO-KCP Limited, started as a joint venture between The KCP Limited and EIMCO Corporatation, USA. Currently a 100% subsidiary of KCP Sugar & Industries Limited.1958 KCP Cement Division, setup at Macherla, Andhra Pradesh with a state-of-the- art cement manufacturing plant. Indias first dry process kiln was installed at Macherla by HUMBOLDT AG, Germany in 1958 (while still a prototype in Europe).1955 KCP Heavy Engineering Division Plant I, setup at Tiruvottiyur, Chennai consisting of an integrated manufacturing facility, which caters to a wide range of heavy mechanical equipment and sub-systems for core sector industries.1941 An 800 TCD Sugar Plant was setup at Vuyyuru, Andhra Pradesh, India by Sri. V. Ramakrishna, Founder Chairman of KCP. 32
  33. 33. Location of plant: The first mini plant is located at Macherla, Guntur district, located within 35 km from the Guntur. Location of the plant at Macherla village has the following advantages.  Cheap availability of the required land.  Abundant water resources.  Proximity of market.  Availability of financial subsidiary.  Plant is near to headquarter.  Well-connected road transport.  Availability of labour.Salient features of KCP CEMENT  High strength and great durability.  A very susceptible saving cost up to 20 - 25% due to low setting Time.  Superiority quality of cement resulting in a better over all finish.  Stronger bonding with aggregates. 33
  34. 34. KCP CEMENT industries limited - quality policy:  To provide customer satisfaction through “Total Quality”.  Develop a strong quality culture at all skill top stay in the front line.  Continues upgrade technology and skill top stay in the front line.  Strive to maintain the environment clear.Objectives of the company:  The customer satisfaction should me attained by maintaining good quality.Types of products produced:  Ordinary Portland Cement: 53 grade  SRC  IRS T-40 Super grade  Portland Pozzolona Cement  Portland Slag Cement 34
  35. 35. KCP CEMENTS Network:Dealers The network of our dealers has been ensuring the fast and easy reach withspeedy feedback. The wide network of our dealers even more ensures that not evena single remote area is left. Further, we take pleasure to appreciate our mosttrusted dealers who are helping us to utilize the full capacity of our plants.Community Care We our self and our business are part of the society we do believe in caringthe community. As its efforts, KCP Cements Limited is actively taking part indeveloping the community that needs a helping hand. Let it be laying the goodroads or erecting a building for educational purpose, KCP Cements Limited wasthere to support the efforts. From local voluntary organizations to nationwide relieffund organizations, the company has contributed to its level best.HEALTH, SAFETY, ENVIRONMENT AND SOCIAL RESPONSIBILITY KCP CEMENTS LIMITED shall strive to provide a safe and healthyworking environment and comply with all regulations regarding the preservation ofthe environment in and around its manufacturing facilities and other points ofoperations. The companies is committed to efficient use of natural resources andminimize any hazardous impact of the development, production, use and disposalof any of its products and services on the ecological environment. 35
  36. 36. CONFIDENTIALITY The Directors and the Senior Management Team shall maintain utmostconfidentiality of information or that of any customer, supplier or businessassociates of the company to which company has a duty to maintain confidentialityexcept when disclosure is authorized. The use of confidential information for hisown advantage or profit is also prohibited.COMPLIANCES The Directors and the Senior Management Team shall comply with allapplicable laws, rules and regulations. Transactions relating to sale or purchase ofcompanys equity shares should not be undertaken without complying with theformalities contained in the companys code of internal procedures and conduct forprevention of insider trading. If any Director or Member of the SeniorManagement Team who knows of or suspects of any violation of applicable laws,rules or regulations or this Code of Conduct, he must immediately report the sameto the Board of Directors or any designated person thereof. Such person should asfar as possible provide the details of suspected violations with all knownparticulars relating to the issue. The company recognizes that resolving suchproblems or concerns will advance the overall interests of the company that willhelp to safeguard the company’s assets, financial integrity and reputation. 36
  37. 37. REVIEW OF LITERATURE:Marketing is “The management process which identifies anticipates and suppliescustomer 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 andpotential consumers” “Marketing is the performance of business activities that direct the follow ofgoods and services from the producer to the consumer or user”A social and managerial process, by which individuals and groups obtain what theyneed and want, through creating and exchanging product and value with others.Customer satisfaction begins with a difficult faith; it starts with a commitment todeliver the result for each customer which is also a concern of the dealers. Hencefor a manufacturing company, in order to satisfy its customers, it is highlyimportant to satisfy its dealers, as they are the direct customers to them.Establishing satisfaction as the ultimate goal is like the other ultimate goals ofbusiness pursuit of higher profits or shareholders wealth. Perfect dealer service orsatisfaction is one that meets the combined need satisfaction is a systemizedservice that involves the entire organization.But many organizations have yet to develop this kind of awareness of dealersatisfaction strategy.Dealer Satisfaction begins with the following specific assumptions aboutcompany’s relationship with the customers.1. The dealer service activities focus mainly on existing dealers.2. Some dealers are more important than others 37
  38. 38. 3. They are the assets.4. The dealer is always specific.The dealer needs and value should influence every aspect of the organizationstrategy, employee safety and performance, product and organization strategy,employee safety and performance, product and service development, sales andmarketing programs, operational procedures and information and measurementsystem.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, productservice and vision. Their information helps to develop meaningful product andservice.Organizations need to listen to their dealer satisfied, dissatisfied neutral andprospective. As one company executive said, “talking to a satisfied customer istalking to me”. In the past, dealer satisfaction and service was the responsibility ofa separate organization that supported the dealer primarily after the sale.Today, service is also likely to be interested with the every product accompanyoffers.High dealer satisfaction comes from providing effective services. But giving thatservice is a continuous activity. It means being efficient, reliable, courteous, curingand professional every time. Marketing is a communication process that has the purpose of individualsor groups - that are directly or indirectly able to purchase - aware of products andservices that may satisfy their existing or newly-identified needs and wants. 38
  39. 39. The Chartered Institute of Marketing, which is the worlds largest marketingbody, defines marketing as "The management process responsible foridentifying, anticipating and satisfying customer requirements profitably."Dealer Any person who carries on business in purchasing, selling, supplying ordistributing goods and also includes works contractor, company, Co-operativeSociety, Broker, Commission Agent, Auctioneer or any other mercantile Agent forthe consideration of cash, commission and deferred payment.There are two types of dealer such as: 1) Registered dealer. 2) Casual dealerWholesaler A wholesaler buys goods in large quantities from their manufacturers orimporters, and then sells smaller quantities to retailers, who in turn sell to thegeneral public.Retailer A retailer buys goods or products in large quantities from manufacturers orimporters, either directly or through a wholesaler, and then sells individual items orsmall quantities to the general public or end user customers, usually in a shop, alsocalled store. Retailers are at the end of the supply chain. 39
  40. 40. Brand A brand is a name or trademark connected with a product or producer.Brands have become increasingly important components of culture and theeconomy, now being described as "cultural accessories and personal philosophiesBrand identity A product identity, or brand image are typically the attributes one associateswith a brand, how the brand owner wants the consumer to perceive the brand - andby extension the branded company, organization, product or service. The brandowner will seek to bridge the gap between the brand image and the brand identity.Effective brand names build a connection between the brand personalities as it isperceived by the target audience and the actual product/service. The brand nameshould be conceptually on target with the product/service (what the companystands for). Furthermore, the brand name should be on target with the branddemographic. Typically, sustainable brand names are easy to remember, transcendtrends and have positive connotations. Brand identity is fundamental to consumerrecognition and symbolizes the brands differentiation from competitors.Brand identity is what the owner wants to communicate to its potential consumers.However, over time, a products brand identity may acquire (evolve), gaining newattributes from consumer perspective but not necessarily from the marketingcommunications an owner percolates to targeted consumers. Therefore, brandassociations become handy to check the consumers perception of the brand.Brand Image Brand Image is not something you have or you dont! A brand is unlikely tohave one brand image, but several, though one or two may predominate. The key 40
  41. 41. in brand image research is to identify or develop the most powerful images andreinforce them through subsequent brand communications. The term "brandimage" gained popularity as evidence began to grow that the feelings and imagesassociated with a brand were powerful purchase influencers, though brandrecognition, recall and brand identity. It is based on the proposition that consumersbuy not only a product (commodity), but also the image associations of theproduct, such as power, wealth, sophistication, and most importantly identificationand association with other users of the brand. In a consumer led world, people tendto define themselves and their Jungian "persona" by their possessions. Accordingto Sigmund Freud, the ego and superego control to a large extent the image andpersonality that people would like others to have of them.Good brand images are instantly evoked, are positive, and are almost alwaysunique among competitive brands.Brand image can be reinforced by brand communications such as packaging,advertising, promotion, customer service, word-of-mouth and other aspects of thebrand experience.Brand images are usually evoked by asking consumers the first words/images thatcome to their mind when a certain brand is mentioned (sometimes called "top ofmind"). When responses are highly variable, non-forthcoming, or refer to non-image attributes such as cost, it is an indicator of a weak brand image. 41
  42. 42. INTRODUCTION:Definition Individual or firm that buys goods from a producer or distributor forwholesale and/or retail reselling. Unlike a distributor, a dealer is a principal and notan agent. The dealer came in to existence when communications were difficult withconsumers and it is found necessary to have a point of distribution. The dealershelp the manufactures by formulating the policy of manufacturers according to thedemand and assist them in securing the markets for their goods. The dealers arealso relieving the manufactures from the necessity of having sales organizations.The manufactures are not put to the task of collecting and securing orders and thenumbers of accounts they have to open are smaller compared to dealing directlywith the consumer. Dealer generally enters in to forward contracts for supply of goods with theresults the manufactures do not accumulate heavy stocks. The dealers are beingclose touch with consumers so they are in position to advice the manufacturer bygiving proper feedback about the customer’s requirements. The dealer occupies avery important specialized position. He not only assist to the manufacture that alsoacts as the link in the chain of distribution between the manufacturer andconsumers for which purpose the dealer maintain efficient and comprehensiveorganization. The dealer can asses the public demand and see that marketablegoods or manufacturer thus protecting the manufacture from wasteful andindiscriminate production as well as the consumer against goods which are neithersatisfaction nor dissatisfaction of good value. 42
  43. 43. DEALER’S RELATION: Large manufacturers depends on dealer to sell their products, therefore goodrelations are most important to them , every manufactures thus wants to motivatehis distribution channel to sell more of his own products. Here the manufacturermust realize that dealers are themselves business men and must be viewed ascustomers and human beings rather than mechanical entities for flow of hisproducts The dealer interested in maximizing their profits thus good dealerrelations can be promoted if the manner is fair to his dealers in his behavior forexample- salesmen of some manufactures dump products on dealers throughaggressive selling. Thereafter, the dealer finds stocks are laying at heavy on hishands and he cannot sell those products by adequately. Advertising products in thearea concern the manufacturer should provide his dealers with promotionalliterature; he should correspond them as frequently as necessary to show that themanufacturer is there to help the dealers to sell all and thus makes profit for them.He may offer adequate trade discount, provided display facilitate and even arrangecontests among the dealers to motivate them towards better results. Themanufacture should realize that the company dealers are more important assets. Ifthey are assisted with promotional help. They will appreciate effort and would bemore in demand to support the company campaigns in advertising.DEALER SATISFACTION Satisfaction in level of persons felt state resulting from company’s productsperceives performance in relational to the person’s expectations. Satisfaction is afunction of the difference between the perceived performance and expectations. 43
  44. 44. Company seeks to win in today’s market. The must track their declaresexpectations, perceive company performance and dealers satisfaction. While assessing the satisfaction level a company must not conclude that itcan get full picture of dealer satisfaction and dissatisfaction by simply runningcomplaints and suggestions. As some times dealers may feel that their complaintsare minor or that they will be made to feel stupid , or that normally will be offeredthe results is that the company has need Lesley lost dealers. Therefore companies instead of using complaints level as measure of dealer’ssatisfaction, obtaining a direct measure of dealer satisfaction of conductingperiodic survey would provide more appropriate measures. The questionnaire canbe made to a random sample of their recent customers.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 can be asked to list out problems they have, had with theoffer and to list out improvements they could suggest companies would also askthe respondents to rate various elements of the offer in terms of the importance ofeach element and how well the company has performed Exclusive dealers needed to bring dealers satisfaction. Many dealers like todevelop exclusive channels for their products. The strategy in which the producerallows only certain concepts to carry its products is called exclusive design whenthe producer requires that these dealers should not handle expeditor products itsstrategy is called exclusive dealing, both parties benefits from exclusivearrangements. 44
  45. 45. 1. Experience in dealership: a) 1-3 Years b) 4-7 Years c) 8-10 Years d) Above 10 YearsTABLE: S.No Criteria No. of % of respondents respondents 1. 1-3 years 06 7% 2. 4-7 years 20 25% 3. 8-10 years 38 47% 4. Above 10 years 16 20% Total 80 100GRAPH:INTERPRETATION: Of about 80 dealers 20% are having above ten years experience and 47% arein the business of about 8-10 years. The other 25% have 4-7 years of experienceand the rest 7% of the dealers have 1-3 years experience. 45
  46. 46. 2. How long you are dealing with KCP CEMENT? a) 1-3 Years b) 4-7 Years c) 8-10 Years d) Above 10 YearsTABLE: S.No Criteria No. of respondents % of respondents 1. 1-3 years 15 19% 2. 4-7 years 15 19% 3. 8-10 years 22 26% 4. Above 10 years 28 36% Total 80 100GRAPH:INTERPRETATION:This table shows the experience of the dealers in dealing with KCP cements. Mostof the dealers, who have experience in their dealership, have the experience indealing with KCP cements. 36% of the dealers have KCP cements dealership for 46
  47. 47. above ten years. 8-10 years experienced dealers are up to 26% and 19% have 4-7years experienced and the rest 19% have up to 3 years experience3. What do you feel about Quality of KCP CEMENT? a) Very good b) Good c) Satisfactory d) poorTABLE: S.No Criteria No. of respondents % of respondents 1. Very good 27 34% 2. Good 32 40% 3. Satisfactory 19 24% 4. Poor 02 02% Total 80 100GRAPH:INTERPRETATION: 47
  48. 48. About 34% of the dealers rated very good toward the quality of KCP cements,40%of dealers rated good,24% of dealers rated satisfied and remaining 02% rated poortoward quality of KCP cements.4. Which factors enable you to be the dealer of KCP CEMENT? a) Promotional scheme b) Quality c) Company Policy d) Margin e) DemandTABLE: S.No Criteria No. of % of respondents respondents 1. Promotions 06 8% 2. Quality 20 25% 3. Company Policy 12 15% 4. Margin 04 04% 5. Demand 38 48% Total 80 100GRAPH: 48
  49. 49. INTERPRETATION: About 48% of the dealers are dealing with KCP cements for its demand,25% for quality, 15% for company policy, 8% of dealers are dealing forpromotional activities and remaining 4% are dealing by seeing Margin5. What do you feel about Credit Period given by KCP CEMENT? a) Very good b) Good c) Satisfactory d) poorTABLE: S.No Criteria No. of respondents % of respondents 1. Very good 02 02% 2. Good 19 24% 3. Satisfactory 27 34% 4. Poor 32 40% Total 80 100GRAPH:INTERPRETATION: 49
  50. 50. About 02% of the dealers rated very good toward the Credit period of KCPcements,24% of dealers rated good,34% of dealers rated satisfied and remaining40% rated poor toward Credit period of KCP cements.6. What do you think about promotional activities given by KCP CEMENTS? a) Very good b) Good c) Satisfactory d) poorTABLE: S.No Promotional No. of respondents % of Activities respondents 1. Very good 05 06% 2. Good 25 31% 3. Satisfactory 31 39% 4. Poor 19 24% Total 80 100GRAPH:INTERPRETATION: 50
  51. 51. The promotion activities carried out by KCP cements is found to be satisfactory.About 39% of the dealers satisfied and 31% of the dealers found are good. 24%dealers are Poor and the rest 06% of the dealers are reporting Very good. Thepromotion activities are can be still improved according their opinion.7. What do you feel about the Price of KCP CEMENT? a) Very High b) High c) Average d) LowTABLE: S.No Criteria No. of respondents % of respondents 1. Very High 32 40% 2. High 27 34% 3. Average 19 24% 4. Low 02 02% Total 80 100GRAPH: 51
  52. 52. INTERPRETATION:About 40% of the dealers rated Very high toward the price of KCP cements, 34%of dealers rated High price, 19% of dealers rated Average and remaining 02% ratedLow toward quality of KCP cements.8. What type of promotional activity do you prefer with KCP CEMENT? a) Discount b) Gift c) Prize d) Offers TABLE: S.No Promotions No. of respondents % of respondents 1. Discounts 34 43% 2. Gifts 16 20% 3. Prizes 21 26% 4. Offers 09 11% Total 80 100GRAPH: 52
  53. 53. INTERPRETATION:Most of the dealers are influenced by the discount offering to them. Hence the 43%of the dealers are influenced by Discounts, 26% are influenced by Prizes, 20% areinfluenced by Gifts, and 11% are influenced by Offers provided by KCP cements.9. Whether the expected quantity of KCP CEMENT is supplied to you In time? a) Yes b) NoTABLE: S.No Criteria No. of respondents % of respondents 1. YES 54 68% 2. NO 26 32% Total 80 100GRAPH: 53
  54. 54. INTERPRETATION: Of about 80 dealers, 68% of dealers are satisfied with the supply of KCPcements with in time and remaining 32% are dissatisfied. 10. Are you dealing with any other cement? a) Yes b) NoTABLE: S.No Criteria No. of respondents % of respondents 1. YES 62 77% 2. NO 18 23% Total 80 100GRAPH: 54
  55. 55. INTERPRETATION: About 77% of the dealers are dealing with other companies and 23% dealonly KCP cements. 11. What are the factors that you expect from KCP CEMENT? a) Promotional scheme b) Sales follow up c) Service d) Credit facilitiesTABLE: S.No Criteria No. of % of respondents respondents 1. Promotional 29 36% schemes 2. Sales follow up 12 15% 3. Service 16 20% 4. Credit facilities 23 29% Total 80 100GRAPH: 55
  56. 56. INTERPRETATION: Most of the dealers want the support of promotional activities, about 36% ofdealers want the support of promotional activities, 29% of dealers wants thesupport of credit facilities, 20% of dealers wants the support of Service, andremaining 15% of dealers wants the support of sales follows.12. Do you recommend your customer about KCP CEMENTS? a) Yes b) NoTABLE: S.No Criteria No. of respondents % of respondents 1. YES 76 95% 2. NO 04 05% Total 80 100GRAPH: 56
  57. 57. INTERPRETATION: About 95% of dealers recommend to their customers about KCP cementsand remaining 5% of dealers do not recommend KCP cements to their customers. 13. Do you have any complaints about KCP CEMENTS? a) Yes b) NoTABLE: S.No Criteria No. of respondents % of respondents 1. YES 23 29% 2. NO 57 71% Total 80 100GRAPH: 57
  58. 58. INTERPRETATION:About 71% of dealers are not having any complaints with KCP cements andremaining 29% or dealers are having some complaints with KCP cements14. How do you feel about the KCP Cement transportation? a) Highly Satisfied b) Satisfied c) Moderate d) DissatisfiedTABLE: S.No Criteria No. of % of respondents respondents 1. Highly Satisfied 32 40% 2. Satisfied 27 34% 3. Moderate 19 24% 4. Dissatisfied 02 02% Total 80 100GRAPH: 58
  59. 59. INTERPRETATION:About 40% of the dealers are Highly Satisfied toward the Transportation of KCPcements, 34% of dealers are satisfied, 19% of dealers are Moderate and remaining02% are dissatisfied towards Transportation of KCP cements15. What do you feel about after sales service given by KCP Cement? a) Highly Satisfied b) Satisfied c) Moderate d) DissatisfiedTABLE: S.No Criteria No. of % of respondents respondents 1. Highly Satisfied 19 24% 2. Satisfied 36 42% 3. Moderate 21 28% 4. Dissatisfied 04 06% Total 80 100GRAPH: 59
  60. 60. INTERPRETATION:About 42% of the dealers are satisfied toward the after sales service of KCPcements, 24% of dealers are highly satisfied, 21% of dealers are Moderate andremaining 06% are dissatisfied towards after sales service of KCP cements.16. Do you have any suggestions to improve the packing, promotional Activities, Quality, price of KCP CEMENTS? a) Yes b) NoTABLE: S.No Criteria No. of respondents % of respondents 1. YES 36 45% 2. NO 44 55% Total 80 100GRAPH:INTERPRETATION: 60
  61. 61. About 45% of the dealers have suggestions to improve their packing. Theirsuggestions are wider about promotional activities, gifts, special offers, in timedelivery of cement bags. The rest 55% of the dealers are satisfied with what theyare offering in KCP cements.Findings:  Most of the dealers have 8-10 years of experience in dealership among that they are dealing with KCP cements Above 10 years.  Most of the dealers’ rated that the Quality of KCP cement is very good  The major promotional factor which influenced the dealers to choose KCP cements is Discounts.  Most of the dealers also deal with other brands to satisfy the need of various customers.  According to dealers outdoor advertisement and electronic media are consider to be more effective to promote KCP cements.  The major supports required to dealers are Promotional schemes and service from the company. 61
  62. 62.  Overall 85% of the dealers rated KCP cements as Good.Suggestions:  Dealers should be encouraged through arranging special meetings.  Most of the dealers suggested for non-sticky cement packing.  Promotional activities should be improved like discounts, gifts, prizes etc.  As media impact is more, so company should go for more advertisements in mass media and out door advertisements to promote their brand.  In time delivery (service) should be improved.  Improve awarding the dealers who make the highest turnover yearly  Regular feedback should be improved.  Most of the dealers report price is below the satisfactory level for the product. 62
  63. 63.  The company should have the credit period given to each dealer, because most dealers are well satisfied with good credit period. 63
  64. 64. CONCLUSIONS KCP CEMENTS is one of the fast moving brands in Andhra Pradesh. Thecompany is holding a good market share which is the result of efforts made by thecompany management and the executives.From the market survey we can conclude that:  Supply and quality factors 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 good.  The price of KCP cement is matching with the quality of the cement  With the ideal promotional strategies and increasing the satisfactory level of the dealers the company can glow and become a market leader in the future. 64
  65. 65. DEALAR’S SATISFACTION QUESTIONNAIRS1. Name:2. Address:3. Experience in dealership: (a) 1-3 years (b) 4-7 years (c) 8-10 years (d) above 10 years4. How long you are dealing with KCP Cement? (a) 1-3 years (b) 4-7 years (c) 8-10 years (d) above 10 years5. What do you feel about Quality of KCP Cement? (a) Very Good (b) Good (c) Satisfactory (d) Poor6. Which factor enables you to be the dealer of KCP Cement? (a) Promotional Scheme (b) Quality (c) Company Policy (d) Margin7. What do you feel about credit period given by KCP Cement? (a) Very Good (b) Good (c) Satisfactory (d) Poor8. What do you think about Promotion Activities given by KCP Cement? 65
  66. 66. (a) Very Good (b) Good (c) Satisfactory (d) Poor9. What do you feel about the Price of KCP Cement? (a) Very High (b) High (c) Average (d) Low10. What type of promotional activity do you prefer with KCP Cement? (a) Discount (b) Gift (c) Prize (d) Offers11. Whether the expected quantity of KCP Cement is supplied to you in time? (a) Yes (b) No12. Are you dealing with other companies?(a) Yes (b) NoIf Yes, specify___________________________________________13. What are the factors that you expect from KCP Cement? (a) Promotional Schem (b) Sales follow-up (c) Service (d) Credit Facility14. Do you have any complaints about KCP Cement? (a) Yes (b) NoIf Yes, specify the reason,15. Do you recommend your customers about KCP Cement?(a) Yes (b) NoIf Yes/No, specify the reason, 66
  67. 67. 16. Do you have any suggestions to improve the quality of KCP Cement?(a) Yes (b) NoIf Yes, specify,___________________________________________17. What do you feel about after sales service given by KCP Cement? (a) Highly Satisfied (b) Satisfied (c) Moderate (d) Dissatisfied18. How do you feel about KCP Cement transportation? (a) Highly Satisfied (b) Satisfied (c) Moderate (d) Dissatisfied19. What is overall rating you give to KCP cements? (a) Very Good (b) Good (c) Satisfactory (d) Poor20. Comparative to KCP which brand is better in promotional activity? (a) Sager priya cement (b) Raasi cement (c) Parashakthi cement (d) Kakathiya (e) None21. Which of the following media advertising are considered to be more effective? (a) Print media (b) Electronic media (c) Radio (d) out door advertisement 67
  68. 68. BIBLIOGRAPHY Book Name Author Publisher Marketing management Philip kotler Tata McGraw Hill Marketing research C.R. Kothari Pearson Education Principles of Marketing V.S.RamaSwamy Prentice Hall India Marketing management Rajan Saxena Prentice Hall IndiaWebsites - www.kcp cement.co.in - www.encyclopedia.com 68

×