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Summer Internship Project
“A Brand Preference Survey
The India Cements Ltd.
In Comparison With Other Competitor”
Submitted by
V.JOHN VIYAGUL PRIYAN (1516301066)
BATCH OF 2016 - 2018
In partial fulfillment for the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
SONA COLLEGE OF TECHNOLOGY
[An Autonomous Institution] Salem – 636 005
Affiliated to Anna University, Chennai
June 2017
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Summer Internship Project
“A Brand Preference Survey
The India Cements Ltd.
In Comparison With Other Competitor”
Submitted by
V.JOHN VIYAGUL PRIYAN (1516301066)
BATCH OF 2016 – 2018
Corporate Mentor Faculty Mentor
Mr. Arun Prasad S Dr. Anjani P.K
Regional Sales Manager, Associate Professor,
The India Cements Ltd, Sona SchoolOf Management,
Madurai. Salem.
Sona School of Management, Salem
June 2017
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DECLARATION
This is to certify that I have carried out my Summer internship in The India Cements ltd in the
area Sales & marketing . It is also certified that the work done by me is original with due references
of sources, and has not been submitted elsewhere for the award of any diploma or degree.
STUDENT NAME:V.JOHN VIYAGUL PRIYAN
I certify that the declaration made by the above candidate is true.
Signature of the Guide
(Dr. P.K Anjani)
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ACKNOWLEDGEMENT
I am thankful to Mr. K.R. Gopala Krishnan, Vice President of Marketing, The India
Cements Ltd. I am also thankful to Mr. C.S. Nandha Kumar, Vice President, The India Cements
Ltd, for his extended support as a guide through the period of internship.
I would like to show my sincere appreciation to Mr. Mahesh Kumar (Deputy General
Manager) and Mr. S. Arun Prasad (Regional Sales Manager) who was an ideal mentor in true
sense. Sir guided me and helped me in areas such as, the topic of the project, for suggesting
alternative solutions and sharing his personal valuable experience and knowledge with me.
I acknowledge with sincere gratitude, to respected principal, Dr. M. Usha Ph.D, Sona
College of Technology, and the management for providing me an opportunity to undergo M.B.A.
Degree course and to undertake this Internship.
I express my sincere thanks to my respected Director Dr. Swarup K Mohanty, Ph.D,
Department of Management Studies, for his esteemed and distinguished guidance and also for
giving me the opportunity to express my ideas and thoughts through this project work.
I acknowledge my deepest sense of gratitude to Dr.P.K Anjani, Associate Professor,
Department of Management Studies, for her untiring efforts and the entire Faculty team of
Department of Management Studies for providing all hope and confidence to complete my record
work in a successful manner.
I would also like to convey my thanks to all the staff of The India Cements Ltd, who have
extended their suggestions and support and have also helped me through my learning process.
I would like to acknowledge all the Cement Dealers who were the respondents for my
survey for helping me being able to finish the task, without whom the survey wouldn’t have been
completed.
I owe my grateful acknowledgement to my Parents and special thanks, to all my pals who
helped me to make this study a successful one.
Last, but not the least I thank “Lord Almighty” for giving the courage and wisdom in
completion of this record work successfully.
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EXECUTIVE SUMMARY
During my 1 months internship, my job role was in Market ResearchAnalyst.
As a Market Research Analyst I did two assignments –
1. Brand preference survey with respect to The India Cements Ltd. in comparison with
the competitive brands .
Objective - To analyse brand position of The India Cements in Madurai, Dindigul, Theni
market.
2. A study on customer satisfaction towards cement products with reference to The India
Cements Ltd.
Objective - To know the satisfaction level of the existing customers.
In these two assignments, I carried out primary research - by interaction with dealers of
different companies and existing customers of The India Cements.
From the first assignment, the company want to know about the market standings of The India
Cements Ltd. In the market and the brand preference influencing factors while purchasing
cement.
With this we want to know about market of premium cements and what are the perception
about the Sankar cement in the market .
From the second assignment, we want to know whether the existing customers of Sankar
Cement are satisfied with the existing quality , price , after sale service etc and to find in
which field we are lacking behind , where we are doing good or bad , which area the product
need improvement .
AREA OF INTERNSHIP
As a research analyst had given two assignments –
1. Brand preference survey with respect to The India Cements Ltd. In comparison
with the competitive brands .
2. A study on customer satisfaction towards cement products with reference to
The India Cements Ltd .
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LEARNING OBJECTIVES
1. CUSTOMER SATISFACTION- During my 1 month training I learned how to convince
my customer to buy my product and convince him to believe that the product he is
purchasing is best in the market .
For example, when I used to tell the customers about the premium cement product they
used to ask me different question like what is new in this product , what about the
quality strength. My job was to satisfy him with all responses as needed.
2. VALUE FOR MONEY - My next task was to help the customer believe that whatever
he is purchasing it has a value for his money.
3. AFTER SALES ENQUIRIES - When your product is sold to the customer it doesn’t
mean that your work is over. If there is a defect in the product and customer needs
immediate attention it’s the duty of the sales executive to solve his problem
4. SELF CONFIDENCE- You have to believe in your product. You have to believe that
whatever you are selling is best for the consumer
5. UNDERSTANDING THE CUSTOMER- We need to talk differently to different
customers according to their preferences. We need frame them up to the level they
would understand the same, we want to communicate to them .
6. PATIENCE- Basic thing is patience. Travelling all day and finding the customer in the
market is a big task. Calling customer 50 times and asking for a meeting is a boring task
but you have to do it.
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CHAPTER-1
INTRODUCTION
CEMENT INDUSTRY
Introduction
India is the second largest producer of cement in the world. No wonder, India's cement
industry is a vital part of its economy, providing employment to more than a million people,
directly or indirectly. Ever since it was deregulated in 1982, the Indian cement industry has
attracted huge investments, both from Indian as well as foreign investors.
India has a lot of potential for development in the infrastructure and construction sector and the
cement sector is expected to largely benefit from it. Some of the recent major government
initiatives such as development of 98 smart cities are expected to provide a major boost to the
sector.
Expecting such developments in the country and aided by suitable government foreign policies,
several foreign players such as Lafarge-Holcim, Heidelberg Cement, have invested in the
country in the recent past. A significant factor which aids the growth of this sector is the ready
availability of the raw materials for making cement, such as limestone and coal
Market size
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Cement demand in India is expected to increase due to government’s push for large
infrastructure projects, leading to 45 million tonnes of cement needed in the next three to four
years.
India's cement demand is expected to reach 550-600 Million Tonnes Per Annum (MTPA) by
2025. The housing sector is the biggest demand driver of cement, accounting for about 67 per
cent of the total consumption in India. The other major consumers of cement include
infrastructure at 13 per cent, commercial construction at 11 per cent and industrial construction
at nine per cent.
To meet the rise in demand, cement companies are expected to add 56 million tonnes (MT)
capacity over the next three years. The cement capacity in India may register a growth of eight
per cent by next year end to 395 MT from the current level of 366 MT. It may increase further
to 421 MT by the end of 2017. The country's per capita consumption stands at around 190 kg.
With nearly 390 million tonnes (MT) of cement production capacity, India is the second largest
cement producer in the world and accounts for 6.7 per cent of world’s cement output. Of the
total capacity, 98 per cent lies with the private sector and the rest with the public sector. The
Indian cement industry is dominated by a few companies. The top 20 companies account for
around 70 per cent of the total production.
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A total of 188 large cement plants together account for 97 per cent of the total installed capacity
in the country, while 365 small plants make up the rest. Of the total 188 large cement plants in
India, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. India’s cement
production increased at a compound annual growth rate (CAGR) of 6.7 per cent to 270.32
million tonnes over FY07–15. As per the 12th Five Year Plan, production is expected to reach
407 million tonnes by FY17.
Types of Cement IS No.
ORDINARY PORTLAND CEMENT-33 GRADE 269-1989
ORDINARY PORTLAND CEMENT-43 GRADE 8112-1989
ORDINARY PORTLAND CEMENT-53 GRADE 12269-1987
RAPID HARDINING CEMENT 8041-1990
PORTLAND SLAG CEMENT 455-1989
PORTLAND POZZOLANA CEMENT (P-1) 1489-1991
PORTLAND POZZOLANA CEMENT (P-2) 1489-1991
MASONARY CEMENT 3466-1988
HIGH ALUMINA CEMENT 6452-1989
SUPERSULPHATED CEMENT 6909-1990
WHITE PORTLAND CEMENT 8042-1989
HYDROPHOBIC PORTLAND CEMENT 8043-1991
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S.NO CEMENT TYPE SPECIFIC USE
(1) OPC
(a) 33 GRADE
General construction work
where high strength Concrete
is not required, plastering,
finishing Works etc.
(b) 43 GRADE Used where M-15, M-20 and
above grade concrete is
required used for pre cast
items and general
construction work. Strength
development is faster than 33
grades.
(c) 53 GRADE High strength cement used
for multistory building, pre
cast and pre stressed items,
bridges, tall structures etc.
Development very fast
strength and speeds of
construction.
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OPPORTUNITIES:
Demand–supply gap
Substantially lower per capita cement consumption as compared to developing countries
(1/3rd of world average) Per capita cement consumption in India. Additional capacity 2.2 of
million tons per annum will be required to match the demand.
Upcoming projects of Govt. Of India Make In India and Smart City
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CHAPTER-2
The India Cements Company Profile
BREIF HISTORY
India cements Ltd. is a cement manufacturing company which was initiated in 1946 by
Shri S N N Sankaralinga Iyer and Shri T S Narayanaswami. The humble beginning of the
company began as a cement factory at Talaiyuthu, an almost unmapped in tiny location in
Tamil Nadu, India. The first plant of the company was set up in 1949 at Sankar nagar
(Talaiyuthu), Tamil Nadu, India; is the headquarters of the company.
GROWTH AND ACTIVITIES
India Cements is one of the oldest family owed corporate. The company has robustly
grown over the last two decades from having a capacity of just 1.3 million tonnes in 1989 to
having a total capacity of 15.5 million tonnes per annum today. Mr. N Srinivasan the Vice
Chairman & Managing Director of the company is directly indicated for the spectacular growth
and development over the last two decades.
While cement is the core activity of the company, India cements has ventured into
related fields like shipping, coal mining and captive power which have synergy to the main
activity of the business; it is seen as a strategy of the company to avoid uncertainties in
acquiring energy and other inputs/materials in the supply chain at competitive costs.
BRANDS
India Cements is currently the 3rd largest cement company in India and the largest
cement manufacture of South India. The India Cements products are marketed under 3 brands
viz. Raasi Gold, Sankar super power and Coromandel King.
Sankar super power is six decade old brand with emotional values and provides
confidence and trust to its customers over generations. It is popular across states like Tamil
Nadu and Kerala. Coromandel King is a brand with rationale value which promises for
durability and strength of cement. It is popular in all metro cities of India, generally trusted by
all and widely preferred by Architects and Engineers. Raasi Gold is a three decade old brand
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with sentimental values that is marketed as it foresees golden times for those living in stronger
homes. It is popular in states like Andhra Pradesh and Orissa.
Sankar Shakti and Coromandel Super Power are sub brands of the above mentioned.
Vision
To create value on a sustained basis for all stakeholders of India Cements through
lofty standards of transparency, accountability and responsibility, innovation and leadership in
cement manufacture.
Mission
India Cements will strive to remain a leader in the manufacture of cement and
establish itself as a preferred supplier of products and services to its clients and enhance the brand
value for stakeholders.
As the organisation grows, as a responsible corporate citizen, India Cements shall be
sensitive to the welfare and development needs of the society around it.
MANAGEMENT PHILOSOPHY:-
• Customer Satisfaction
• Always invest in Latest Technology
• Huge Distribution Network Creation
• Expansion through Balancing Equipment
• Constant focus on Cost Control & Quality
• Invest in Managers & Develop People Skills
• Stability of Executive Management & Low Employee turnover.
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Plant Locations & Capacity
1) Sankar nagar, Tirunelveli - 2.05 Million Tonnes (P/A)
2) Dalavoi, Perambalur - 1.85 Million Tonnes (P/A)
3) Sankari, Salem - 0.86 Million Tonnes (P/A)
4) Vallur, Tiruvallur - 1.1 Million Tonnes (P/A)
5) Yerraguntla, Cuddapah - 0.73 Million Tonnes (P/A)
6) Chilamkur, Cuddapah - 1.46 Million Tonnes (P/A)
7) Malkapur, Telangana - 2.4 Million Tonnes (P/A)
8) Vishnupuram, Telangana - 2.5 Million Tonnes (P/A)
9) Parli, Maharashtra - 1.1 Million Tonnes (P/A)
10) Banswara, Rajasthan - 1.5 Million Tonnes (P/A)
Marketing strategy of The India cements Ltd.
1. SEGMENTATION: - The Company has segmented the market geographically. It sells its
products all over India with major presence in southern region.
2. PRICING STRATEGY 1: 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
 Administrator
 Other expenses
 Tax and interest
 Competitor’s price and offering
3. MARKETING STARTEGY
Company conducts market surveys to identify market trends and customer’s response,
company position in the market etc. There is R and D department which continuously trying to
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improve the quality of the product at the minimum cost and trying to meet the demand of the
customer.
4. MARKETRING STRATEGY FOR COMPETITORS
Company always keeps an eye over its competitors activities and its offerings like different
promotional schemes, product price etc. It also takes proper action according to competitors
strategy.
5. DISTRIBUTION STRATEGY
The company is distributing cement by following ways:-Direct to consumer Depot
1. Whole seller
2. Retailer
3. Corporate and bulk buyers.
AWARDS
• Socially Responsible Corporate Citizen "India’s Best Companies to Work for" Award,
• Gold Award - National Institute of Personal Management, Star Brands 2013,
• Green Manufacturing Excellence Award by Frost & Sullivan,
• Greentech Safety Gold Award by Greentech Foundation,
• Golden Peacock HR Excellence Award,
• Safety Innovation Award,
• Leading Businesswoman of the Year Award,
• Greentech HR Excellence Award by Greentech Foundation,
• Leading CEO of the Year Award,
• Best Professionally Managed Company Award and
• Golden Peacock Award for CSR initiatives
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• The India Cements has been honoured with ‘Make In India Awards for Excellence –
2015’
This is just a glimpse into the diversity of awards we have received after the relentless hard
work of our team members and the inspiring leadership of our top management. As an
organization, it is our constant endeavor to excel in what to do. It is this relentless pursuit of
excellence that has helped us introduce clutter breaking products like the Sankar Super Power
and integrate cutting-edge cement technology in all our plants in different states of India. Being
a member of the prestigious Organisation, a group known worldwide for its ages old business
legacy, we are ready to take new strides in our journey towards quality, customer satisfaction
and innovation.
Quality of products and strong brand name
We believe that brand name and reputation are important to retail purchasers of cement in India.
We have built a strong reputation among cement purchasers by consistently providing high
quality products. We believe that there is strong customer awareness of our brands, Sankar
Super Power Cement, for (PPC) cement, Coromandel Cement and Raasi Gold Cement for
(PRO PLUS) cement across India.
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CHAPTER-3
ORGANISATIONAL STRUCTURE
Marketing in The India Cements Ltd.
The marketing department of The India Cements Ltd. act as a guide and lead the
company's other departments in developing, producing, fulfilling, and servicing products or
services for their customers. Marketing is the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational goals. In India cements the marketing department
typically has a better understanding of the market and customer needs, but should not act
independently of product development or customer service. Marketing should be involved, and
there should be a meeting of the minds, whenever discussions are held regarding new
product/idea development or any customer-related function of the company. The main
drawback is that the marketing department also takes most of the blame if a product (or
company) isn't successful, regardless of whether or not the fault actually lies there.
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The company has implemented a direct mail program
and has placed key codes on the mailing labels to track
the source of the mailing lists from which customers
who place orders are coming. If the employees who take
the orders don't ask for and record those codes, then the
marketing department has no way of knowing which
lists are working and which lists are bombing.
Cooperation among departments and support of upper
management to enforce necessary procedures is often critical.
So, the marketing department studies the market and the customers, determines the best way
to reach those customers, and works with the rest of the company to help determine the new
product needs of the market and represent the company in a consistent voice.
Thus the marketing department serves as a beacon for a company, guiding it on which product,
pricing, promotional and distribution strategies to use. Professionals employed in this
department are usually highly creative and have many duties. Some gather input from current
consumers, while others disseminate information to other departments and businesses.
OBJECTIVES
The marketing department of India Cements has the following objectives:
 The major objectives of India cements ltd is customer satisfaction.
 To obtain maximum sales (i.e.) 100 % sales.
 To offer standard quality and best quality of cement.
 To encourage the existing buyers for more orders.
 To satisfy the customer needs by delivering the product in the stipulated time.
 To develop new market.
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KEY COMPETITORS
The India cements faces a stiff competition in the market. Due to its superior quality, it is
able to withstand in the market. Some of the competitors that The India Cements face in the
market are:
 Ramco Cements
 Ultratech cements
 Dalmia cements
 Chettinad cements
MARKETING STRATAGIES:
In order to sell their products, The India Cements adopt the following marketing
 Advertising
 Television
 Radio
 News paper
 Wall painting
 Banners
 Sponsorship
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Hierarchy of Marketing Department
Marketing
Sales Officers
G.M( Marketing)
Director (Marketing)
EDP
Despatch
Excise
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Marketing department consist of further three department.
Excise
This department deals with excise duties and sales tax of parties orders.
EDP
EDP means electronic data processing. This department gives a tracking number to order after
receiving from sales offices of company. This tracking number is identity of that order, which
has a full record in oracle software. After doing the proper procedure the order document is
processed to despatch office. Different reports which are the parts of EDP daily work.
• Daily Brand Wise Despatch
• Daily loading Report
• District Wise Balance Loading Report
• Statement of Daily Despatch
• Office Wise Back Log Position (DG)
• Cement Balance Transfer Programme
• Daily Plant Wise Dispatch Report
• Cement Transfer report (indirect)
• Sales Tax Invoice
Despatch
In despatch department the main work is to despatch the cement according the orders of sales
offices. After taking the authorities the despatch department makes truck loading advice
according to which cement bags are loaded on truck. It basically shows the quantity, location
of unit, truck driver name, truck number and destination of loaded cements bags.
Despatch department also make many report daily some are
• Truck Loading Advice
• Truck Loading Advice (Inventory Transfer)
• Truck Loading Check Report
• Unit Wise Despatch Detail
• Gate Pass
• Gate Pass (Inventory Transfer)
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Hierarchy of Finance Department
Finance department
Basically finance department is working on Oracle software. Before Oracle, Microsoft Excel
was in use. The purpose of using oracle is to increase the efficiency and speed of work. At site,
the process of work in Oracle is called ERP (Enterprise Resource Planning).
Account Payable: For account payable different types of invoices are used to work in oracle.
Standard Invoice
Standard Invoice consists of two sections; one is Header level section and second is Line level
section. Header level controls credit entry and line level controls debit entry. Different taxes
are also charged to expanses according the law of Government.
Pre-Payment
It is a basically advance which is provided to suppliers. The record of pre-payment is
maintained in this invoice.
(Chief Financial Officer)
CFA (Controller of Finance
Accounts)
S.Managers
Managers
S.D. Manager
D. Manager
A. Manager
Jounior Officers
Workers (Staff)
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Debit Memo
It is an invoice which is used to recover the expanse. For example if supplier is using any asset
of company, and he says that the charges of using that asset are deducted from the supplier
payment, than this invoice is used. Company make a debit memo against that supplier in oracle
and oracle warns the user about this on the time of supplier payment.
Credit Memo
It is also used to recover the company amount. For example a company purchased an asset and
submits retention money against that asset. If asset has fulfils the period successfully than
supplier will liable to pay retention money to company. In credit memo DFF (descriptive flex
field) is used. It basically tells the reference and name of supplier.
Account receivable
This account is maintained by these two
1. Transaction
Transaction is passed for the sale of scrape. OR it is passed for the sale of cement. The revenue
which is credited for that this will be passed.
2. Receipt
It is used to record the direct expanse. Two types of receipt are used in finance department.
 Standard
 Miscellaneous
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Purchase approval Hierarchy on Comparative Statement
Purchasing process
Requisition
It is basically demand created by user department. If the workers needs any item relating his
task than he raise demand by giving this letter.
RFQ (Request for Quotation)
When purchase department see any requisition contact to suppliers is done. So that they can
give them proper idea about theirs items. That how much easily they can provide these items
to factory.
Quotation
This is basically response of suppliers against RFQ.
Comparative Statement
This is a comparison of all the quotations which are received from suppliers. In this statement
department see that which suppliers is providing items in least amount and in reasonable time.
Requisition in favour of an approved suppliers
Purchase Officer
HOD( Manager Purchase)
HOD( Relevant Department)
D.G.M (Works)
C.F.A( Controller of Finance Accounts)
G.M(works) up to 20000
G.M(Admin)up to 20000
Director(Tech&Operaton)
Above 20000&all Capitals
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Purchase order will follow a predefined approval hierarchy to get approval.
Purchase Order
After taking comparison a suppliers is suggested. And order is placed to supplier.
Receipt
User will enter receipt in the system on physical receipt of item on gate.
Inspection and deliver
User will enter results of inspection in the system for every receipt entered in the system.
Human Resource Department
There are five practices of human resource.
Recruitment and Selection
There is a long process of recruitment and selection in India Cements. First a vacancy add is
published in newspapers. Then interviews are conducted in Head office Chennai. A written test
is also a part of selection process. Then after a proper analysis a candidate is selected for the
job. Now, the HR department of India Cements starts to maintain the record of employee in a
file.
Recruitment
and
Selection
Training and
Development
Performance
Appraisal
Rewards and
Benefits
Employee's
Relation
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Documents are the parts of this record book.
• Employee Academic Certificate
• Curriculum Violet
• Hand written application for recruitment
• Company test
• Employee’s Code of Conduct
• Employee personal record form
• Appointment Latter
• Medical fitness certificate
• Registered AID (Security Clearance)
• Orientation Program
• Orientation Arrival
• Probation Review Form
• Review Form Conformation
• Office Orders
• Emails form Head Office
And in the case of retirement or death some other document also becomes the part of record
file. Such like Death Certificate, Clearance form etc.
The specimens of some documents are attached with report.
Training and Development
With the advancement in technology, The India Cements also arrange different workshops and
training programs for employees. First the training of one year is necessary for new recruitment
of technical staff. With the advancement in Oracle Software, Company provides employees
opportunity to learn about oracle as they need. For this company provides one week training to
employees in head office.
Performance Appraisal
For this purpose an Annual Confidential Report (ACR) is prepared according the performance
of employee throughout year. On the basis of which different steps is taken for employee’s
future. A form is a part of this report which is called worker performance appraisal form. The
sketch of data which is obtained with the help of this form is
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• Personal Data
• Performance Evaluation o Professional Knowledge o Hard work and Dedication o
Work Standard o Team Work
o Attitude and Behaviour
o Attendance o Honest
and Loyal
• Overall performance
• Training (TNA)
• Comments of G.M
This form is filled by the head of department of relevant employee.
Rewards and Benefits
An increment of 15% in salary is offered to employees every year. The India Cements has been
offered resident facility to mostly its employees. Promotions are offered to deserving
employees. A well-constructed colony is also the benefit of employees.
Housing Benefits
Block E, F Permanent Workers
Block D Sales Rep
Block C SDM
Block B DGM
Block A
Vehicle Benefit
GM
Motor cycle Technical Staff
Culture Car Managers
Toddy Car Senior D. Managers
Luxury Car General Managers
Medical Benefit
Medical of all officers rank employees is free.
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Education Benefit
For workers, half Fee of school is provided by company.
For Officers, full fee of school is provided by company.
Insurance Benefit
Company also insures all its employees.
Retirement Benefits
On the time of retirement following adjustments are maintained.
 From the date of joining after probation period the amount is deducted from the salary
and provided every employee after his retirement in the form of Provident Fund.
 After retirement an Earned Leave fund is also provided to employee.
 A lump sum amount in form of Gratuity is also provided to employee. It is basically
obtained by multiplying number of year service with last basic salary.
 Deductions are also done. May be employee took any loan from company than the
adjustment is passed for that amount. It can be house building loan or any other loan.
 Old age fund in the form of pension is also provided by government to employee. The
India Cements provide the government the entire documents which are required for this
purpose.
Employees Relation
Company focused to maintained good relation with employees. For this purpose different
worker parties are working in India Cements. These maintain a good relation between
employees and company. After the completion of a year, employees brings their represented
forward who try to solve the problems of workers. There is a system of election for choosing
the best representation of employees.
29
CHAPTER-4
MARKET RESEARCH WORK
ASSIGNMENT
PROJECT TITLE
Brand Preference Survey With Respect To The India Cements Ltd. In Comparison With
the Competitive Brands
Project Profile- Market Research & Analyst
Project Head- Mr. Mahesh Kumar, DGM, The India Cements Ltd.
Project Guide- Mr. Arun Prasad S, RSM, The India Cements Ltd.
1. ResearchObjective:
To analyze brand position of Sankar Cement in Madurai, Dindigul, Theni market.
2. ResearchDesign:
(a) Research Approach: - Descriptive Research.
(b) Sample Size – 105 Retailers of various companies.
(c) Sampling Technique – Convenience Sampling.
(d) Research Methodology-Interview person on one to one basis using structured
questionnaire.
3. Method of Data Collection:
Data collected by undergoing Primary Research.
METHODS OF DATA COLLECTION
• Through interaction with retailers.
• Through questionnaires filled from the dealers.
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SAMPLE DESIGN
Considering the constraints, it was decided to conduct the study based on sample size of 105
respondents.
The selection was made through approach of random sampling. Scientific method was not
adopted in this study because of financial constraints and also because of lack of time, also the
basic aim of doing the research was academic, hence most convenient way was selected.
TOOLS USED
There are several methods of collecting primary data, particularly in surveys and descriptive
research. Important are:- Observation method.
• Through questionnaires.
• Interview method.
31
CHAPTER-5
DATA ANALYSIS AND INTERPRETATION
Total No. of Samples-105
1) Number of Cement Dealers in Brand wise
CEMENT COMPANY NO.OF RESPONDENTS
Ramco 58
Sankar 45
Ultratech 21
Dalmia 28
Chettinad 19
Penna 5
Zuari 7
TNPL 7
Arasu 8
Maha 11
JSW 5
Vijay Gold 3
Suga 3
Maruti 3
Priya 4
Bharati 3
32
INTERPRETATION
Nearly, 58 Dealers were selling RAMCO Cements in their shop, then it is followed by
SANKAR Cements by 45 Dealers and the market is followed by DALMIA by 28 Dealers,
CHETTINAD by 19 Dealers, ULTRATECH Cements by 21 Dealers and therefore by Penna,
Zuari, TNPL, Arasu, Maha, JSW, Vijay Gold, Suga, Maruthi, Bharathi in the Market.
CHART
33
2) Number of Exclusive Dealers in Brand wise
Ramco Sankar Ultratech Dalmia TNPL JSW Multi
Brand
Total
22 21 3 4 2 1 52 105
INTERPRETATION
RAMCO Cement is higher with 22 Exclusive Dealers and is followed by SANKAR
Cement with 21 Exclusive Dealers and in most of Dealer is selling Multiple Brand on their
Shops with majority of 52 Dealers. Finally, it is followed by DALMIA, TNPL, JSW Cements
in the market.
CHART
0
10
20
30
40
50
60
Ramco Sankar Ultratech Dalmia TNPL JSW Multi Brand
34
3) Maximum Customer asking for which Brand?
Ramco Sankar Ultratech Dalmia Chettinad Penna Maha Others Total
36% 20% 13% 15% 7% 3% 2% 4% 100%
INTERPRETATION
In maximum customer asking Brand, RAMCO Cements lead by 36% and is followed by
SANKAR Cements by 20%, then bt ULTRATECH Cement by 13%, DALMIA Cements by
15% and finally by CHETTINAD, PENNA, MAHA Cements by 7%, 3%, 2% respectively.
CHART
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Ramco Sankar Ultratech Dalmia Chettinad Penna Maha Others
35
4) Average purchase of cement per month (Tonnes)
Ramco Sankar Ultratech Dalmia Chettinad Others
4300 3600 1700 800 600 490
INTERPRETATION
The Average Purchase of cement per month is leaded by RAMCO Cements by 4300
Tonnes per month and is followed by SANKAR Cements by 3600 Tonnes, then by
ULTRATECH Cements by 1700 Tonnes, DALMIA Cements by 800 Tonnes and finally
CHETTINAD Cements by 600 Tonnes.
CHART
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Ramco Sankar Ultratech Dalmia Chettinad Others
36
5) Have you ever visited the Cement Plant?
YES NO TOTAL
55% 45% 100%
INTERPRETATION
In Cement Plant Visited Situation, Nearly 55% Dealers replied with “YES” and 45%
Dealers replied with “NO”. So, majority of Cement Dealers visited Cement Plant and their wish
is to visit Cement Plant.
CHART
0%
10%
20%
30%
40%
50%
60%
YES NO
37
6) Are you able to explain the quality aspects to the consumer
YES NO TOTAL
100% 0% 100%
INTERPRETATION
In order to explain the Quality aspects of Cement Brand to the Consumer, Nearly 100% of
Dealers replied with “YES” and none of the Dealers replied with “NO”. This Status telecasting
the positive aspects of Cements among the Dealers and Consumers.
CHART
100%
90%
80%
70%
60%
50%
40%
30%
20%
10% 0%
38
7) Which brand having good brand image among the Engineer?
Ramco Sankar Ultratech JSW Dalmia Chettinad Penna TNPL Total
34% 23% 15% 3% 17% 3% 2% 3% 100%
INTERPRETATION
The Brand having good image among Engineers is headed by RAMCO Cements by
34% and is followed by SANKAR Cements by 23%, then by ULTRATECH Cements by 15%,
DALMIA Cements by 17%, CHETTINAD, PENNA, TNPL Cements by 3%, 2%, 3%
respectively.
CHART
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Ramco Sankar JSW Dalmia Chettinad Ultratech Penna TNPL
39
8) Which brand having good brand image among the Masons?
Ramco Sankar Ultratech Dalmia Chettinad JSW Others Total
45% 26% 4% 14% 2% 3% 6% 100%
INTERPRETATION
The Brand having good image among Masons is headed by RAMCO Cements by 45% and is
followed by SANKAR Cements by 26%, then by DALMIA Cements by 14%, ULTRATECH
Cements by 4%, CHETTINAD, JSW, Other Cements by 2%, 3%, 6% respectively.
CHART
40
9) Which brand having good brand image among House owners?
Ramco Sankar Dalmia Ultratech Chettinad JSW Maha Others Total
37% 27% 14% 10% 2% 2% 3% 5% 100%
INTERPRETATION
The Brand having good image among House owners is headed by RAMCO Cements by 37%
and is followed by SANKAR Cements by 27%, then by DALMIA Cements by 14%,
ULTRATECH Cements by 10%, CHETTINAD, JSW, Maha, Other Cements by 2%, 3%, 3%,
5% respectively.
CHART
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Ramco Sankar JSW Dalmia Chettinad Maha Ultratech Others
41
10) Generally a brand is influenced by
Advertisement Shop owners Friends Masons &
Engineers
Total
2% 10% 22% 66% 100%
INTERPRETATION
Generally, a brand is influenced by Masons & Engineers is leaded by 66% and is
followed by Friends is 22%, then by Shop owners by 10% and finally by Advertisement by
2%.
CHART
0.00%
10.00%
20.00%
30.00%
40.00%
%50.00
60.00%
70.00%
Advertisement Shop owners Friends Masons & Engineers
42
11) Is the M sand is accepted in the market?
YES NO TOTAL
32 73 105
INTERPRETATION
Where M- Sand is accepted in Market, Nearly 73 out of 105 Responses replied with
“NO”. Then 32 out of 105 Responses replied with “YES”. So, M- Sand has poor experience in
the Market.
CHART
0
10
20
30
40
50
60
70
80
Yes No
43
12) What is the Expectation of shop owners from cement brands?
Profit Incentives Supply Credit
Period
Gifts Total
62% 15% 3% 16% 4% 100%
INTERPRETATION
In Expectation of Shop owners from cement brands is leaded by Profit by 62% and is followed
by Credit Periods by 16%, then by Incentives by 15%, then by Gifts by 4% and finally by
Supply by 3%.
CHART
0%
10%
20%
30%
40%
50%
60%
70%
Profit Incentives Supply Credit Period Gifts
44
13) Is the selling Price having the impact of a brand?
YES NO TOTAL
0 105 105
INTERPRETATION
In Selling Price having the impact of a brand all of them replied with “NO”. Because the
increase in price will not change any big difference in Cement Sales and only the Quality plays
a major role in Cement Industry.
CHART
0
20
40
60
80
100
120
45
CHAPTER-6
SUMMARY OF FINDINGS, RECOMMENDATIONS & CONCLUSION
SUMMARY OF FINDINGS
• Customer satisfaction with respect to the Sankar 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 Sankar cement mainly from the whole seller.
• 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.
• Price is a bigger concern between the customers.
• Constant supply of the cement is the matter of concern in case of Sankar cement.
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.
• No. Dealers should be increased in order to increase the overall sale.
46
• Attention should be given to the prospective customer, although existing customers all
equally important to retain with the company.
• There is a scope of improvement in post-sale services.
CONCLUSION
My Internship in The India cements Ltd. was enriching as it was a completely
professional environment with a uniform of blue coloured shirts and black formal pants. It was
different from my previous internships as the previous companies did emphasize on being
formally dressed but for the first time I experienced a company with uniform. Although the
uniform didn’t apply to the interns, we were formally dressed in order to adapt to the
professional environment.
I had gained a lot of insights with regard to the company’s marketing techniques and
strategies. I got to understand a new industry altogether, as it is not very common to choose
cement industry to work for.
Despite of all the criticalities I faced during my internship I believe it was an experience
that will be very useful for me to think of alternatives or take up better decisions so that I can
complete my tasks and accomplish the internship. The internship also helped me in developing
various skills like Social skills, Punctuality and Time management, Soft skills and competence.
• 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..
• Company should decrease delivery time of the cement.
• More promotional programme should be organised.
47
ANNEXURES
Questionnaire for Consumer Behaviour and Brand Image
1) Name & Address of the Shop
2) Average purchase of cement per month Brand wise
1.
2.
3.
3) Reason for the Largest Purchase
 Customer Enquiry
 Supply
 Profit  Exclusivity
4) Maximum Customer asking for which brand?
 Ramco
 Sankar
 Dalmia
 Chettinad
 Ultra tech
48
 Others
5) Have you ever visited cement plant
 Yes
 No
6) Are you able to explain the quality aspects to the customer
 Yes
 No
7) Which brand having good brand image among the Engineer?
8) Which brand having good brand image among the Masons?
9) Which brand having good brand image among the House owners?
10) Generally a brand is influenced by
 Advertisement
 Shop Owner 
Friends 
Masons &
Engineers
49
11) Is the selling price having the impact of a brand?
 Yes
 No
12) What is the Expectation of shop owners from cement brands?
50
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 The India Cements Ltd.
• Labour and industrial chronicle
• Indian cement review
Web sites:
• www.indiacements.co.in
• http://www.ibef.org/industry/cement-india.aspx
• https://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.j
sp?symbol=INDIACEMENTS&illiquid=0&smeFlag=0&itpFlag=0
• www.drive.google.com
51

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The India Cement Report

  • 1. 1 Summer Internship Project “A Brand Preference Survey The India Cements Ltd. In Comparison With Other Competitor” Submitted by V.JOHN VIYAGUL PRIYAN (1516301066) BATCH OF 2016 - 2018 In partial fulfillment for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION SONA COLLEGE OF TECHNOLOGY [An Autonomous Institution] Salem – 636 005 Affiliated to Anna University, Chennai June 2017
  • 2. 2 Summer Internship Project “A Brand Preference Survey The India Cements Ltd. In Comparison With Other Competitor” Submitted by V.JOHN VIYAGUL PRIYAN (1516301066) BATCH OF 2016 – 2018 Corporate Mentor Faculty Mentor Mr. Arun Prasad S Dr. Anjani P.K Regional Sales Manager, Associate Professor, The India Cements Ltd, Sona SchoolOf Management, Madurai. Salem. Sona School of Management, Salem June 2017
  • 3. 3 DECLARATION This is to certify that I have carried out my Summer internship in The India Cements ltd in the area Sales & marketing . It is also certified that the work done by me is original with due references of sources, and has not been submitted elsewhere for the award of any diploma or degree. STUDENT NAME:V.JOHN VIYAGUL PRIYAN I certify that the declaration made by the above candidate is true. Signature of the Guide (Dr. P.K Anjani)
  • 4. 4 ACKNOWLEDGEMENT I am thankful to Mr. K.R. Gopala Krishnan, Vice President of Marketing, The India Cements Ltd. I am also thankful to Mr. C.S. Nandha Kumar, Vice President, The India Cements Ltd, for his extended support as a guide through the period of internship. I would like to show my sincere appreciation to Mr. Mahesh Kumar (Deputy General Manager) and Mr. S. Arun Prasad (Regional Sales Manager) who was an ideal mentor in true sense. Sir guided me and helped me in areas such as, the topic of the project, for suggesting alternative solutions and sharing his personal valuable experience and knowledge with me. I acknowledge with sincere gratitude, to respected principal, Dr. M. Usha Ph.D, Sona College of Technology, and the management for providing me an opportunity to undergo M.B.A. Degree course and to undertake this Internship. I express my sincere thanks to my respected Director Dr. Swarup K Mohanty, Ph.D, Department of Management Studies, for his esteemed and distinguished guidance and also for giving me the opportunity to express my ideas and thoughts through this project work. I acknowledge my deepest sense of gratitude to Dr.P.K Anjani, Associate Professor, Department of Management Studies, for her untiring efforts and the entire Faculty team of Department of Management Studies for providing all hope and confidence to complete my record work in a successful manner. I would also like to convey my thanks to all the staff of The India Cements Ltd, who have extended their suggestions and support and have also helped me through my learning process. I would like to acknowledge all the Cement Dealers who were the respondents for my survey for helping me being able to finish the task, without whom the survey wouldn’t have been completed. I owe my grateful acknowledgement to my Parents and special thanks, to all my pals who helped me to make this study a successful one. Last, but not the least I thank “Lord Almighty” for giving the courage and wisdom in completion of this record work successfully.
  • 5. 5 EXECUTIVE SUMMARY During my 1 months internship, my job role was in Market ResearchAnalyst. As a Market Research Analyst I did two assignments – 1. Brand preference survey with respect to The India Cements Ltd. in comparison with the competitive brands . Objective - To analyse brand position of The India Cements in Madurai, Dindigul, Theni market. 2. A study on customer satisfaction towards cement products with reference to The India Cements Ltd. Objective - To know the satisfaction level of the existing customers. In these two assignments, I carried out primary research - by interaction with dealers of different companies and existing customers of The India Cements. From the first assignment, the company want to know about the market standings of The India Cements Ltd. In the market and the brand preference influencing factors while purchasing cement. With this we want to know about market of premium cements and what are the perception about the Sankar cement in the market . From the second assignment, we want to know whether the existing customers of Sankar Cement are satisfied with the existing quality , price , after sale service etc and to find in which field we are lacking behind , where we are doing good or bad , which area the product need improvement . AREA OF INTERNSHIP As a research analyst had given two assignments – 1. Brand preference survey with respect to The India Cements Ltd. In comparison with the competitive brands . 2. A study on customer satisfaction towards cement products with reference to The India Cements Ltd .
  • 6. 6 LEARNING OBJECTIVES 1. CUSTOMER SATISFACTION- During my 1 month training I learned how to convince my customer to buy my product and convince him to believe that the product he is purchasing is best in the market . For example, when I used to tell the customers about the premium cement product they used to ask me different question like what is new in this product , what about the quality strength. My job was to satisfy him with all responses as needed. 2. VALUE FOR MONEY - My next task was to help the customer believe that whatever he is purchasing it has a value for his money. 3. AFTER SALES ENQUIRIES - When your product is sold to the customer it doesn’t mean that your work is over. If there is a defect in the product and customer needs immediate attention it’s the duty of the sales executive to solve his problem 4. SELF CONFIDENCE- You have to believe in your product. You have to believe that whatever you are selling is best for the consumer 5. UNDERSTANDING THE CUSTOMER- We need to talk differently to different customers according to their preferences. We need frame them up to the level they would understand the same, we want to communicate to them . 6. PATIENCE- Basic thing is patience. Travelling all day and finding the customer in the market is a big task. Calling customer 50 times and asking for a meeting is a boring task but you have to do it.
  • 7. 7 CHAPTER-1 INTRODUCTION CEMENT INDUSTRY Introduction India is the second largest producer of cement in the world. No wonder, India's cement industry is a vital part of its economy, providing employment to more than a million people, directly or indirectly. Ever since it was deregulated in 1982, the Indian cement industry has attracted huge investments, both from Indian as well as foreign investors. India has a lot of potential for development in the infrastructure and construction sector and the cement sector is expected to largely benefit from it. Some of the recent major government initiatives such as development of 98 smart cities are expected to provide a major boost to the sector. Expecting such developments in the country and aided by suitable government foreign policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement, have invested in the country in the recent past. A significant factor which aids the growth of this sector is the ready availability of the raw materials for making cement, such as limestone and coal Market size
  • 8. 8 Cement demand in India is expected to increase due to government’s push for large infrastructure projects, leading to 45 million tonnes of cement needed in the next three to four years. India's cement demand is expected to reach 550-600 Million Tonnes Per Annum (MTPA) by 2025. The housing sector is the biggest demand driver of cement, accounting for about 67 per cent of the total consumption in India. The other major consumers of cement include infrastructure at 13 per cent, commercial construction at 11 per cent and industrial construction at nine per cent. To meet the rise in demand, cement companies are expected to add 56 million tonnes (MT) capacity over the next three years. The cement capacity in India may register a growth of eight per cent by next year end to 395 MT from the current level of 366 MT. It may increase further to 421 MT by the end of 2017. The country's per capita consumption stands at around 190 kg. With nearly 390 million tonnes (MT) of cement production capacity, India is the second largest cement producer in the world and accounts for 6.7 per cent of world’s cement output. Of the total capacity, 98 per cent lies with the private sector and the rest with the public sector. The Indian cement industry is dominated by a few companies. The top 20 companies account for around 70 per cent of the total production.
  • 9. 9 A total of 188 large cement plants together account for 97 per cent of the total installed capacity in the country, while 365 small plants make up the rest. Of the total 188 large cement plants in India, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. India’s cement production increased at a compound annual growth rate (CAGR) of 6.7 per cent to 270.32 million tonnes over FY07–15. As per the 12th Five Year Plan, production is expected to reach 407 million tonnes by FY17. Types of Cement IS No. ORDINARY PORTLAND CEMENT-33 GRADE 269-1989 ORDINARY PORTLAND CEMENT-43 GRADE 8112-1989 ORDINARY PORTLAND CEMENT-53 GRADE 12269-1987 RAPID HARDINING CEMENT 8041-1990 PORTLAND SLAG CEMENT 455-1989 PORTLAND POZZOLANA CEMENT (P-1) 1489-1991 PORTLAND POZZOLANA CEMENT (P-2) 1489-1991 MASONARY CEMENT 3466-1988 HIGH ALUMINA CEMENT 6452-1989 SUPERSULPHATED CEMENT 6909-1990 WHITE PORTLAND CEMENT 8042-1989 HYDROPHOBIC PORTLAND CEMENT 8043-1991
  • 10. 10 S.NO CEMENT TYPE SPECIFIC USE (1) OPC (a) 33 GRADE General construction work where high strength Concrete is not required, plastering, finishing Works etc. (b) 43 GRADE Used where M-15, M-20 and above grade concrete is required used for pre cast items and general construction work. Strength development is faster than 33 grades. (c) 53 GRADE High strength cement used for multistory building, pre cast and pre stressed items, bridges, tall structures etc. Development very fast strength and speeds of construction.
  • 11. 11 OPPORTUNITIES: Demand–supply gap Substantially lower per capita cement consumption as compared to developing countries (1/3rd of world average) Per capita cement consumption in India. Additional capacity 2.2 of million tons per annum will be required to match the demand. Upcoming projects of Govt. Of India Make In India and Smart City
  • 12. 12 CHAPTER-2 The India Cements Company Profile BREIF HISTORY India cements Ltd. is a cement manufacturing company which was initiated in 1946 by Shri S N N Sankaralinga Iyer and Shri T S Narayanaswami. The humble beginning of the company began as a cement factory at Talaiyuthu, an almost unmapped in tiny location in Tamil Nadu, India. The first plant of the company was set up in 1949 at Sankar nagar (Talaiyuthu), Tamil Nadu, India; is the headquarters of the company. GROWTH AND ACTIVITIES India Cements is one of the oldest family owed corporate. The company has robustly grown over the last two decades from having a capacity of just 1.3 million tonnes in 1989 to having a total capacity of 15.5 million tonnes per annum today. Mr. N Srinivasan the Vice Chairman & Managing Director of the company is directly indicated for the spectacular growth and development over the last two decades. While cement is the core activity of the company, India cements has ventured into related fields like shipping, coal mining and captive power which have synergy to the main activity of the business; it is seen as a strategy of the company to avoid uncertainties in acquiring energy and other inputs/materials in the supply chain at competitive costs. BRANDS India Cements is currently the 3rd largest cement company in India and the largest cement manufacture of South India. The India Cements products are marketed under 3 brands viz. Raasi Gold, Sankar super power and Coromandel King. Sankar super power is six decade old brand with emotional values and provides confidence and trust to its customers over generations. It is popular across states like Tamil Nadu and Kerala. Coromandel King is a brand with rationale value which promises for durability and strength of cement. It is popular in all metro cities of India, generally trusted by all and widely preferred by Architects and Engineers. Raasi Gold is a three decade old brand
  • 13. 13 with sentimental values that is marketed as it foresees golden times for those living in stronger homes. It is popular in states like Andhra Pradesh and Orissa. Sankar Shakti and Coromandel Super Power are sub brands of the above mentioned. Vision To create value on a sustained basis for all stakeholders of India Cements through lofty standards of transparency, accountability and responsibility, innovation and leadership in cement manufacture. Mission India Cements will strive to remain a leader in the manufacture of cement and establish itself as a preferred supplier of products and services to its clients and enhance the brand value for stakeholders. As the organisation grows, as a responsible corporate citizen, India Cements shall be sensitive to the welfare and development needs of the society around it. MANAGEMENT PHILOSOPHY:- • Customer Satisfaction • Always invest in Latest Technology • Huge Distribution Network Creation • Expansion through Balancing Equipment • Constant focus on Cost Control & Quality • Invest in Managers & Develop People Skills • Stability of Executive Management & Low Employee turnover.
  • 14. 14 Plant Locations & Capacity 1) Sankar nagar, Tirunelveli - 2.05 Million Tonnes (P/A) 2) Dalavoi, Perambalur - 1.85 Million Tonnes (P/A) 3) Sankari, Salem - 0.86 Million Tonnes (P/A) 4) Vallur, Tiruvallur - 1.1 Million Tonnes (P/A) 5) Yerraguntla, Cuddapah - 0.73 Million Tonnes (P/A) 6) Chilamkur, Cuddapah - 1.46 Million Tonnes (P/A) 7) Malkapur, Telangana - 2.4 Million Tonnes (P/A) 8) Vishnupuram, Telangana - 2.5 Million Tonnes (P/A) 9) Parli, Maharashtra - 1.1 Million Tonnes (P/A) 10) Banswara, Rajasthan - 1.5 Million Tonnes (P/A) Marketing strategy of The India cements Ltd. 1. SEGMENTATION: - The Company has segmented the market geographically. It sells its products all over India with major presence in southern region. 2. PRICING STRATEGY 1: 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  Administrator  Other expenses  Tax and interest  Competitor’s price and offering 3. MARKETING STARTEGY Company conducts market surveys to identify market trends and customer’s response, company position in the market etc. There is R and D department which continuously trying to
  • 15. 15 improve the quality of the product at the minimum cost and trying to meet the demand of the customer. 4. MARKETRING STRATEGY FOR COMPETITORS Company always keeps an eye over its competitors activities and its offerings like different promotional schemes, product price etc. It also takes proper action according to competitors strategy. 5. DISTRIBUTION STRATEGY The company is distributing cement by following ways:-Direct to consumer Depot 1. Whole seller 2. Retailer 3. Corporate and bulk buyers. AWARDS • Socially Responsible Corporate Citizen "India’s Best Companies to Work for" Award, • Gold Award - National Institute of Personal Management, Star Brands 2013, • Green Manufacturing Excellence Award by Frost & Sullivan, • Greentech Safety Gold Award by Greentech Foundation, • Golden Peacock HR Excellence Award, • Safety Innovation Award, • Leading Businesswoman of the Year Award, • Greentech HR Excellence Award by Greentech Foundation, • Leading CEO of the Year Award, • Best Professionally Managed Company Award and • Golden Peacock Award for CSR initiatives
  • 16. 16 • The India Cements has been honoured with ‘Make In India Awards for Excellence – 2015’ This is just a glimpse into the diversity of awards we have received after the relentless hard work of our team members and the inspiring leadership of our top management. As an organization, it is our constant endeavor to excel in what to do. It is this relentless pursuit of excellence that has helped us introduce clutter breaking products like the Sankar Super Power and integrate cutting-edge cement technology in all our plants in different states of India. Being a member of the prestigious Organisation, a group known worldwide for its ages old business legacy, we are ready to take new strides in our journey towards quality, customer satisfaction and innovation. Quality of products and strong brand name We believe that brand name and reputation are important to retail purchasers of cement in India. We have built a strong reputation among cement purchasers by consistently providing high quality products. We believe that there is strong customer awareness of our brands, Sankar Super Power Cement, for (PPC) cement, Coromandel Cement and Raasi Gold Cement for (PRO PLUS) cement across India.
  • 17. 17 CHAPTER-3 ORGANISATIONAL STRUCTURE Marketing in The India Cements Ltd. The marketing department of The India Cements Ltd. act as a guide and lead the company's other departments in developing, producing, fulfilling, and servicing products or services for their customers. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. In India cements the marketing department typically has a better understanding of the market and customer needs, but should not act independently of product development or customer service. Marketing should be involved, and there should be a meeting of the minds, whenever discussions are held regarding new product/idea development or any customer-related function of the company. The main drawback is that the marketing department also takes most of the blame if a product (or company) isn't successful, regardless of whether or not the fault actually lies there.
  • 18. 18 The company has implemented a direct mail program and has placed key codes on the mailing labels to track the source of the mailing lists from which customers who place orders are coming. If the employees who take the orders don't ask for and record those codes, then the marketing department has no way of knowing which lists are working and which lists are bombing. Cooperation among departments and support of upper management to enforce necessary procedures is often critical. So, the marketing department studies the market and the customers, determines the best way to reach those customers, and works with the rest of the company to help determine the new product needs of the market and represent the company in a consistent voice. Thus the marketing department serves as a beacon for a company, guiding it on which product, pricing, promotional and distribution strategies to use. Professionals employed in this department are usually highly creative and have many duties. Some gather input from current consumers, while others disseminate information to other departments and businesses. OBJECTIVES The marketing department of India Cements has the following objectives:  The major objectives of India cements ltd is customer satisfaction.  To obtain maximum sales (i.e.) 100 % sales.  To offer standard quality and best quality of cement.  To encourage the existing buyers for more orders.  To satisfy the customer needs by delivering the product in the stipulated time.  To develop new market.
  • 19. 19 KEY COMPETITORS The India cements faces a stiff competition in the market. Due to its superior quality, it is able to withstand in the market. Some of the competitors that The India Cements face in the market are:  Ramco Cements  Ultratech cements  Dalmia cements  Chettinad cements MARKETING STRATAGIES: In order to sell their products, The India Cements adopt the following marketing  Advertising  Television  Radio  News paper  Wall painting  Banners  Sponsorship
  • 20. 20 Hierarchy of Marketing Department Marketing Sales Officers G.M( Marketing) Director (Marketing) EDP Despatch Excise
  • 21. 21 Marketing department consist of further three department. Excise This department deals with excise duties and sales tax of parties orders. EDP EDP means electronic data processing. This department gives a tracking number to order after receiving from sales offices of company. This tracking number is identity of that order, which has a full record in oracle software. After doing the proper procedure the order document is processed to despatch office. Different reports which are the parts of EDP daily work. • Daily Brand Wise Despatch • Daily loading Report • District Wise Balance Loading Report • Statement of Daily Despatch • Office Wise Back Log Position (DG) • Cement Balance Transfer Programme • Daily Plant Wise Dispatch Report • Cement Transfer report (indirect) • Sales Tax Invoice Despatch In despatch department the main work is to despatch the cement according the orders of sales offices. After taking the authorities the despatch department makes truck loading advice according to which cement bags are loaded on truck. It basically shows the quantity, location of unit, truck driver name, truck number and destination of loaded cements bags. Despatch department also make many report daily some are • Truck Loading Advice • Truck Loading Advice (Inventory Transfer) • Truck Loading Check Report • Unit Wise Despatch Detail • Gate Pass • Gate Pass (Inventory Transfer)
  • 22. 22 Hierarchy of Finance Department Finance department Basically finance department is working on Oracle software. Before Oracle, Microsoft Excel was in use. The purpose of using oracle is to increase the efficiency and speed of work. At site, the process of work in Oracle is called ERP (Enterprise Resource Planning). Account Payable: For account payable different types of invoices are used to work in oracle. Standard Invoice Standard Invoice consists of two sections; one is Header level section and second is Line level section. Header level controls credit entry and line level controls debit entry. Different taxes are also charged to expanses according the law of Government. Pre-Payment It is a basically advance which is provided to suppliers. The record of pre-payment is maintained in this invoice. (Chief Financial Officer) CFA (Controller of Finance Accounts) S.Managers Managers S.D. Manager D. Manager A. Manager Jounior Officers Workers (Staff)
  • 23. 23 Debit Memo It is an invoice which is used to recover the expanse. For example if supplier is using any asset of company, and he says that the charges of using that asset are deducted from the supplier payment, than this invoice is used. Company make a debit memo against that supplier in oracle and oracle warns the user about this on the time of supplier payment. Credit Memo It is also used to recover the company amount. For example a company purchased an asset and submits retention money against that asset. If asset has fulfils the period successfully than supplier will liable to pay retention money to company. In credit memo DFF (descriptive flex field) is used. It basically tells the reference and name of supplier. Account receivable This account is maintained by these two 1. Transaction Transaction is passed for the sale of scrape. OR it is passed for the sale of cement. The revenue which is credited for that this will be passed. 2. Receipt It is used to record the direct expanse. Two types of receipt are used in finance department.  Standard  Miscellaneous
  • 24. 24 Purchase approval Hierarchy on Comparative Statement Purchasing process Requisition It is basically demand created by user department. If the workers needs any item relating his task than he raise demand by giving this letter. RFQ (Request for Quotation) When purchase department see any requisition contact to suppliers is done. So that they can give them proper idea about theirs items. That how much easily they can provide these items to factory. Quotation This is basically response of suppliers against RFQ. Comparative Statement This is a comparison of all the quotations which are received from suppliers. In this statement department see that which suppliers is providing items in least amount and in reasonable time. Requisition in favour of an approved suppliers Purchase Officer HOD( Manager Purchase) HOD( Relevant Department) D.G.M (Works) C.F.A( Controller of Finance Accounts) G.M(works) up to 20000 G.M(Admin)up to 20000 Director(Tech&Operaton) Above 20000&all Capitals
  • 25. 25 Purchase order will follow a predefined approval hierarchy to get approval. Purchase Order After taking comparison a suppliers is suggested. And order is placed to supplier. Receipt User will enter receipt in the system on physical receipt of item on gate. Inspection and deliver User will enter results of inspection in the system for every receipt entered in the system. Human Resource Department There are five practices of human resource. Recruitment and Selection There is a long process of recruitment and selection in India Cements. First a vacancy add is published in newspapers. Then interviews are conducted in Head office Chennai. A written test is also a part of selection process. Then after a proper analysis a candidate is selected for the job. Now, the HR department of India Cements starts to maintain the record of employee in a file. Recruitment and Selection Training and Development Performance Appraisal Rewards and Benefits Employee's Relation
  • 26. 26 Documents are the parts of this record book. • Employee Academic Certificate • Curriculum Violet • Hand written application for recruitment • Company test • Employee’s Code of Conduct • Employee personal record form • Appointment Latter • Medical fitness certificate • Registered AID (Security Clearance) • Orientation Program • Orientation Arrival • Probation Review Form • Review Form Conformation • Office Orders • Emails form Head Office And in the case of retirement or death some other document also becomes the part of record file. Such like Death Certificate, Clearance form etc. The specimens of some documents are attached with report. Training and Development With the advancement in technology, The India Cements also arrange different workshops and training programs for employees. First the training of one year is necessary for new recruitment of technical staff. With the advancement in Oracle Software, Company provides employees opportunity to learn about oracle as they need. For this company provides one week training to employees in head office. Performance Appraisal For this purpose an Annual Confidential Report (ACR) is prepared according the performance of employee throughout year. On the basis of which different steps is taken for employee’s future. A form is a part of this report which is called worker performance appraisal form. The sketch of data which is obtained with the help of this form is
  • 27. 27 • Personal Data • Performance Evaluation o Professional Knowledge o Hard work and Dedication o Work Standard o Team Work o Attitude and Behaviour o Attendance o Honest and Loyal • Overall performance • Training (TNA) • Comments of G.M This form is filled by the head of department of relevant employee. Rewards and Benefits An increment of 15% in salary is offered to employees every year. The India Cements has been offered resident facility to mostly its employees. Promotions are offered to deserving employees. A well-constructed colony is also the benefit of employees. Housing Benefits Block E, F Permanent Workers Block D Sales Rep Block C SDM Block B DGM Block A Vehicle Benefit GM Motor cycle Technical Staff Culture Car Managers Toddy Car Senior D. Managers Luxury Car General Managers Medical Benefit Medical of all officers rank employees is free.
  • 28. 28 Education Benefit For workers, half Fee of school is provided by company. For Officers, full fee of school is provided by company. Insurance Benefit Company also insures all its employees. Retirement Benefits On the time of retirement following adjustments are maintained.  From the date of joining after probation period the amount is deducted from the salary and provided every employee after his retirement in the form of Provident Fund.  After retirement an Earned Leave fund is also provided to employee.  A lump sum amount in form of Gratuity is also provided to employee. It is basically obtained by multiplying number of year service with last basic salary.  Deductions are also done. May be employee took any loan from company than the adjustment is passed for that amount. It can be house building loan or any other loan.  Old age fund in the form of pension is also provided by government to employee. The India Cements provide the government the entire documents which are required for this purpose. Employees Relation Company focused to maintained good relation with employees. For this purpose different worker parties are working in India Cements. These maintain a good relation between employees and company. After the completion of a year, employees brings their represented forward who try to solve the problems of workers. There is a system of election for choosing the best representation of employees.
  • 29. 29 CHAPTER-4 MARKET RESEARCH WORK ASSIGNMENT PROJECT TITLE Brand Preference Survey With Respect To The India Cements Ltd. In Comparison With the Competitive Brands Project Profile- Market Research & Analyst Project Head- Mr. Mahesh Kumar, DGM, The India Cements Ltd. Project Guide- Mr. Arun Prasad S, RSM, The India Cements Ltd. 1. ResearchObjective: To analyze brand position of Sankar Cement in Madurai, Dindigul, Theni market. 2. ResearchDesign: (a) Research Approach: - Descriptive Research. (b) Sample Size – 105 Retailers of various companies. (c) Sampling Technique – Convenience Sampling. (d) Research Methodology-Interview person on one to one basis using structured questionnaire. 3. Method of Data Collection: Data collected by undergoing Primary Research. METHODS OF DATA COLLECTION • Through interaction with retailers. • Through questionnaires filled from the dealers.
  • 30. 30 SAMPLE DESIGN Considering the constraints, it was decided to conduct the study based on sample size of 105 respondents. The selection was made through approach of random sampling. Scientific method was not adopted in this study because of financial constraints and also because of lack of time, also the basic aim of doing the research was academic, hence most convenient way was selected. TOOLS USED There are several methods of collecting primary data, particularly in surveys and descriptive research. Important are:- Observation method. • Through questionnaires. • Interview method.
  • 31. 31 CHAPTER-5 DATA ANALYSIS AND INTERPRETATION Total No. of Samples-105 1) Number of Cement Dealers in Brand wise CEMENT COMPANY NO.OF RESPONDENTS Ramco 58 Sankar 45 Ultratech 21 Dalmia 28 Chettinad 19 Penna 5 Zuari 7 TNPL 7 Arasu 8 Maha 11 JSW 5 Vijay Gold 3 Suga 3 Maruti 3 Priya 4 Bharati 3
  • 32. 32 INTERPRETATION Nearly, 58 Dealers were selling RAMCO Cements in their shop, then it is followed by SANKAR Cements by 45 Dealers and the market is followed by DALMIA by 28 Dealers, CHETTINAD by 19 Dealers, ULTRATECH Cements by 21 Dealers and therefore by Penna, Zuari, TNPL, Arasu, Maha, JSW, Vijay Gold, Suga, Maruthi, Bharathi in the Market. CHART
  • 33. 33 2) Number of Exclusive Dealers in Brand wise Ramco Sankar Ultratech Dalmia TNPL JSW Multi Brand Total 22 21 3 4 2 1 52 105 INTERPRETATION RAMCO Cement is higher with 22 Exclusive Dealers and is followed by SANKAR Cement with 21 Exclusive Dealers and in most of Dealer is selling Multiple Brand on their Shops with majority of 52 Dealers. Finally, it is followed by DALMIA, TNPL, JSW Cements in the market. CHART 0 10 20 30 40 50 60 Ramco Sankar Ultratech Dalmia TNPL JSW Multi Brand
  • 34. 34 3) Maximum Customer asking for which Brand? Ramco Sankar Ultratech Dalmia Chettinad Penna Maha Others Total 36% 20% 13% 15% 7% 3% 2% 4% 100% INTERPRETATION In maximum customer asking Brand, RAMCO Cements lead by 36% and is followed by SANKAR Cements by 20%, then bt ULTRATECH Cement by 13%, DALMIA Cements by 15% and finally by CHETTINAD, PENNA, MAHA Cements by 7%, 3%, 2% respectively. CHART 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Ramco Sankar Ultratech Dalmia Chettinad Penna Maha Others
  • 35. 35 4) Average purchase of cement per month (Tonnes) Ramco Sankar Ultratech Dalmia Chettinad Others 4300 3600 1700 800 600 490 INTERPRETATION The Average Purchase of cement per month is leaded by RAMCO Cements by 4300 Tonnes per month and is followed by SANKAR Cements by 3600 Tonnes, then by ULTRATECH Cements by 1700 Tonnes, DALMIA Cements by 800 Tonnes and finally CHETTINAD Cements by 600 Tonnes. CHART 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Ramco Sankar Ultratech Dalmia Chettinad Others
  • 36. 36 5) Have you ever visited the Cement Plant? YES NO TOTAL 55% 45% 100% INTERPRETATION In Cement Plant Visited Situation, Nearly 55% Dealers replied with “YES” and 45% Dealers replied with “NO”. So, majority of Cement Dealers visited Cement Plant and their wish is to visit Cement Plant. CHART 0% 10% 20% 30% 40% 50% 60% YES NO
  • 37. 37 6) Are you able to explain the quality aspects to the consumer YES NO TOTAL 100% 0% 100% INTERPRETATION In order to explain the Quality aspects of Cement Brand to the Consumer, Nearly 100% of Dealers replied with “YES” and none of the Dealers replied with “NO”. This Status telecasting the positive aspects of Cements among the Dealers and Consumers. CHART 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
  • 38. 38 7) Which brand having good brand image among the Engineer? Ramco Sankar Ultratech JSW Dalmia Chettinad Penna TNPL Total 34% 23% 15% 3% 17% 3% 2% 3% 100% INTERPRETATION The Brand having good image among Engineers is headed by RAMCO Cements by 34% and is followed by SANKAR Cements by 23%, then by ULTRATECH Cements by 15%, DALMIA Cements by 17%, CHETTINAD, PENNA, TNPL Cements by 3%, 2%, 3% respectively. CHART 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Ramco Sankar JSW Dalmia Chettinad Ultratech Penna TNPL
  • 39. 39 8) Which brand having good brand image among the Masons? Ramco Sankar Ultratech Dalmia Chettinad JSW Others Total 45% 26% 4% 14% 2% 3% 6% 100% INTERPRETATION The Brand having good image among Masons is headed by RAMCO Cements by 45% and is followed by SANKAR Cements by 26%, then by DALMIA Cements by 14%, ULTRATECH Cements by 4%, CHETTINAD, JSW, Other Cements by 2%, 3%, 6% respectively. CHART
  • 40. 40 9) Which brand having good brand image among House owners? Ramco Sankar Dalmia Ultratech Chettinad JSW Maha Others Total 37% 27% 14% 10% 2% 2% 3% 5% 100% INTERPRETATION The Brand having good image among House owners is headed by RAMCO Cements by 37% and is followed by SANKAR Cements by 27%, then by DALMIA Cements by 14%, ULTRATECH Cements by 10%, CHETTINAD, JSW, Maha, Other Cements by 2%, 3%, 3%, 5% respectively. CHART 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Ramco Sankar JSW Dalmia Chettinad Maha Ultratech Others
  • 41. 41 10) Generally a brand is influenced by Advertisement Shop owners Friends Masons & Engineers Total 2% 10% 22% 66% 100% INTERPRETATION Generally, a brand is influenced by Masons & Engineers is leaded by 66% and is followed by Friends is 22%, then by Shop owners by 10% and finally by Advertisement by 2%. CHART 0.00% 10.00% 20.00% 30.00% 40.00% %50.00 60.00% 70.00% Advertisement Shop owners Friends Masons & Engineers
  • 42. 42 11) Is the M sand is accepted in the market? YES NO TOTAL 32 73 105 INTERPRETATION Where M- Sand is accepted in Market, Nearly 73 out of 105 Responses replied with “NO”. Then 32 out of 105 Responses replied with “YES”. So, M- Sand has poor experience in the Market. CHART 0 10 20 30 40 50 60 70 80 Yes No
  • 43. 43 12) What is the Expectation of shop owners from cement brands? Profit Incentives Supply Credit Period Gifts Total 62% 15% 3% 16% 4% 100% INTERPRETATION In Expectation of Shop owners from cement brands is leaded by Profit by 62% and is followed by Credit Periods by 16%, then by Incentives by 15%, then by Gifts by 4% and finally by Supply by 3%. CHART 0% 10% 20% 30% 40% 50% 60% 70% Profit Incentives Supply Credit Period Gifts
  • 44. 44 13) Is the selling Price having the impact of a brand? YES NO TOTAL 0 105 105 INTERPRETATION In Selling Price having the impact of a brand all of them replied with “NO”. Because the increase in price will not change any big difference in Cement Sales and only the Quality plays a major role in Cement Industry. CHART 0 20 40 60 80 100 120
  • 45. 45 CHAPTER-6 SUMMARY OF FINDINGS, RECOMMENDATIONS & CONCLUSION SUMMARY OF FINDINGS • Customer satisfaction with respect to the Sankar 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 Sankar cement mainly from the whole seller. • 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. • Price is a bigger concern between the customers. • Constant supply of the cement is the matter of concern in case of Sankar cement. 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. • No. Dealers should be increased in order to increase the overall sale.
  • 46. 46 • Attention should be given to the prospective customer, although existing customers all equally important to retain with the company. • There is a scope of improvement in post-sale services. CONCLUSION My Internship in The India cements Ltd. was enriching as it was a completely professional environment with a uniform of blue coloured shirts and black formal pants. It was different from my previous internships as the previous companies did emphasize on being formally dressed but for the first time I experienced a company with uniform. Although the uniform didn’t apply to the interns, we were formally dressed in order to adapt to the professional environment. I had gained a lot of insights with regard to the company’s marketing techniques and strategies. I got to understand a new industry altogether, as it is not very common to choose cement industry to work for. Despite of all the criticalities I faced during my internship I believe it was an experience that will be very useful for me to think of alternatives or take up better decisions so that I can complete my tasks and accomplish the internship. The internship also helped me in developing various skills like Social skills, Punctuality and Time management, Soft skills and competence. • 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.. • Company should decrease delivery time of the cement. • More promotional programme should be organised.
  • 47. 47 ANNEXURES Questionnaire for Consumer Behaviour and Brand Image 1) Name & Address of the Shop 2) Average purchase of cement per month Brand wise 1. 2. 3. 3) Reason for the Largest Purchase  Customer Enquiry  Supply  Profit  Exclusivity 4) Maximum Customer asking for which brand?  Ramco  Sankar  Dalmia  Chettinad  Ultra tech
  • 48. 48  Others 5) Have you ever visited cement plant  Yes  No 6) Are you able to explain the quality aspects to the customer  Yes  No 7) Which brand having good brand image among the Engineer? 8) Which brand having good brand image among the Masons? 9) Which brand having good brand image among the House owners? 10) Generally a brand is influenced by  Advertisement  Shop Owner  Friends  Masons & Engineers
  • 49. 49 11) Is the selling price having the impact of a brand?  Yes  No 12) What is the Expectation of shop owners from cement brands?
  • 50. 50 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 The India Cements Ltd. • Labour and industrial chronicle • Indian cement review Web sites: • www.indiacements.co.in • http://www.ibef.org/industry/cement-india.aspx • https://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.j sp?symbol=INDIACEMENTS&illiquid=0&smeFlag=0&itpFlag=0 • www.drive.google.com
  • 51. 51