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SUMMER TRAINING PROJECT REPORT ON
A MARKET ANALYSIS (4P) OF BIRLA CEMENT IN RELATION TO COMPETITING BRANDS
Guided by: Prof. Shubhangi Jore P.I.M.R. (Indore)
Submitted by: Ashish Kumar Khare M.B.A(Core) 2007-09
This is to certify that ASHISH KUMAR KHARE has completed project on MARKET ANALYSIS OF BIRLA CEMENT IN RELATION TO COMPETITING BRAND which is based on data collected by researcher. This report is completed under my supervision. It is only for academic purpose and is a bonafide work done by researcher.
PROF. SHUBHANGI JORE MENTOR P.I.M.R. INDORE
I, ASHISH KUMAR KHARE student of M.B.A hereby declare that the project report entitled “MARKET ANALAYSIS OF BIRLA CEMENT IN RELATION TO COMPETITING BRAND”, is the outcome of my own work and the same has not been submitted to any university/ Institute for the award of any degree or any professional diploma.
ASHISH KUMAR KHARE M.B.A (CORE) III SEM. P.I.M.R INDORE
I here by express my thanks to Birla Corporation Limited Satna who gave me opportunity to do summer training. I would also wish a special thanks to my project guide Prof. Subhangi Jore for her motivating guidance and fully and heartily guidelines. I would also wish to express my sincere gratitude to Mr. A. Malhotra (Marketing Manager), Mr Sujeet Tiwari (H.R.Manager) and other staff of Birla Cement Satna, who have helped and provided me with idea, suggestion, corporation for carrying out my work. I pay my profound regard to my teachers, parents for their blessing and support to go ahead in life. I express my thanks to all professionals and staff of my Institute and Birla Corporation Ltd. along with all the respondents who gave me their precious attention.
ASHISH KUMAR KHARE M.B.A (CORE) SESSION: 2007-2009
Topic Page no.
06-17 18 19 20-33 34-35 36
2. OBJECTIVE AND SCOPE
3. RESEARCH METHODOLOGY
5. CONCULSION & SUGGESTION
6. REFERENCES & BIBLIOGRAPHY
Birla Corporation limited is a multiproduct multi interest more than thousand carore conglomerate. It plays significant roles in cement industry. The story of Birla Corporation limited began 89 years ago, when young man Ganshayam das Birla came to Kolkata. A man of vision an enterprise, Sri G.D.Birla set first Indian owned jute mill near Kolkata in 1919. The firm was named Birla jute manufacturing company limited. Time watched as small unit prospered, it also embarked a young man to bacon the new industrial India.
After that Shri Madhav Prasad ji Birla transformed the humble jute manufacturing company into a mighty conglomerate Birla corporation ltd. The name of company changed to Birla jute and industries limited in 1983. In view the opportunities offered by the liberalised fast growing economy and to promote brand equity and international image the name was changed to Birla Corporation limited in 1997. After the demise of M.P Birla, his wife Priyamvada Birla took over a chairman of BCL and continue to leap company till her death in july 2004. Today under the chairmanship of Mr. R. S. Lodha company has crossed the 1800 crore plus turn over and has wide spread interest in which cement, jute, auto trims, synthetic yarn, are their main product.
Birla Corporation limited is keenly aware of its social responsibility, it provide s education and healthcare facility to for employees and their families and community at a large.
Cement is a binding material used in civil construction. It is fine powder, which on addition of requistic addition of water is capable of harding by the chemical interaction of its constituents with water and is capable of blending together. The real foundation stone of present industry was laid in the year 1912 when India Cement Corporation limited established a small factory at Porbander in Kahtiawa. This factory commenced in 1914 at the rate of about 100 metric tons per day. The raw material required for cement making are lime stone ,coal, clay flyash ,and gypsum which regulate setting time. There are two process of cement manufacturing wet and dry. In the wet process the raw materials are grounded along with water, but in dry process materials are grounded in dry state. Regarding the varieties of the product there are eight varieties in the industry ,Portland cement, Blast furnance, Slag cement, Portland pozzolana cement, Grey cement, White cement. Important cement producing companies in India are Associated Cement Company, Birla Cement Corporation, Jaypee Cement Corporation, Gujrat Ambuja Cement etc in private sector and in public sector important cement company is Cement Corporation of India Lt..
BCL CEMENT DIVISION
The Cement Division of Birla Corporation Limited has seven plants, having an installed capacity of 5.8 million tons. After the completion of the ongoing expansion projects, the capacity will increase to 7 million tons. This plant manufacture varieties of cement, including Ordinary Portland Cement (OPC), 43 & 53 grades, fly ash–based Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and low- alkali Portland Cement. Recently, the Company has started producing Sulphate Resistant Cement (SRC) and it has been well accepted in the market.
OPC is marketed under the brand name of Birla Cement KHAJURAHO and Birla Cement CHETAK, while PPC is marketed under the brand name of Birla Cement SAMRAT. PSC is marketed under the brand name of Birla Cement. The Birla Cement SAMRAT brand is ideal for mass concrete, RCC / pre-stressed / precast structures (for reduced thermal crack), increased water tightness of concrete , increased resistance to sulphate content in soil, aggressive water and alkali aggregate reaction, besides corrosion resistant properties. The brands have significant presence in the northern, western and eastern parts of the country as well as central India. The company has a large network of dedicated distributors and stockists in all its marketing regions. Durgapur Cement Works and the two cement units at Satna have received the ISO 9002 quality certification, covering production and marketing. The Satna units have also received the IS/ISO: 14001 certificate for "implementation of the Environmental Management System". The two chanderia units have received the ISO 9001 : 2000 certification for Quality Management System, as well as the IS/ISO : 14001 certification. The quality control laboratories of both Birla Cement Works and Chanderia Cement Works have been accredited by National Accreditation Board for Testing & Caliberation Laboratories, Department of Science & Technology, Government of India. The cement units have been receiving, since the past decade, prestigious awards for productivity, pollution control, energy performance and worker's education.
CEMENT PLANTS OF BCL
NAME 1.Satna cement works 2.Birla vikash cement works 3.Birla cement works 4.Chanderia cements works 5.Durgapur cements works 6.Raiberali grinding unit
LOCATION Satna (m.p) Chanderia (raj)
ESTABLISHED 1952 1982 1967 1986 1974 1998
CAPACITY (lakh tons per year) 21
Durgapur (w.bengal) Raiberali(u.p)
Total capacity of six plants is 53.3 lakh tons. These plants have access to the latest technology and infrastructure, and rated amongst the advance in the country
The cement manufacturing process starts from the mining of limestone, which is the main raw material for making cement. Limestone is excavated from open cast mines after drilling and blasting and loaded on to dumpers which transport the material and unload into hoppers of the limestone crushers.
Crushing Stacking & Reclaiming of Limestone
The LS Crushers crush the limestone to minus 80 mm size and discharge the material onto a belt conveyor which takes it to the stacker via the Bulk material analyser. The material is stacked in longitudinal stockpiles. Limestone is extracted transversely from the stockpiles by the reclaimers and conveyed to the Raw Mill hoppers for grinding of raw meal.
Crushing Stacking & Reclaiming of Coal
The process of making cement clinker requires heat. Coal is used as the fuel for providing heat. Raw Coal received from the collieries is stored in a coal yard. Raw Coal is dropped on a belt conveyor from a hopper and is taken to and crushed in a crusher. Crushed coal discharged from the Coal Crusher is stored in a longitudinal stockpile from where it is reclaimed by a reclaimer and taken to the coal mill hoppers for grinding of fine coal.
Raw Meal Drying/Grinding & Homogenisation
Reclaimed limestone along with some laterite stored in their respective hoppers is fed to the Raw Mill for fine grinding. The hot gasses coming from the clinkerisation section are used in the raw mill for drying and transport of the ground raw meal to the Electrostatic Precipitator / Bag House, where it is collected and then stored and homogenised in the concrete silo. Raw Meal extracted from the silo (now called Kiln feed) is fed to the top of the Preheater for Pyroprocessing.
Cement Clinker is made by pyroprocessing of Kiln feed in the preheater and the rotary kiln. Fine coal is fired as fuel to provide the necessary heat in the kiln and the Precalciner located at the bottom of the 5/6 stage preheater. Hot clinker discharged from the Kiln drops on the grate cooler and gets cooled. The cooler discharges the clinker onto the pan / bucket conveyor and it is transported to the clinker stockpiles / silos. The clinker is taken from the stockpile / silo to the ball mill hoppers for cement grinding.
Cement Grinding & Storage
Clinker and Gypsum (for OPC) and also Pozzolana (for PPC) are extracted from their respective hoppers and fed to the Cement Mills. These Ball Mills grind the feed to a fine powder and the Mill discharge is fed to an elevator, which takes the material to a separator, which separates fine product and the coarse. The latter is sent to the mill inlet for regrinding and the fine product is stored in concrete silos.
Cement extracted from silos is conveyed to the automatic electronic packers where it is packed in 50 Kgs. Polythene bags and dispatched in trucks.
SATNA CEMENT WORKS, SATNA (M.P)
Commissioned in 1959, Satna Cement Works (SCW) has the distinction of being the first Cement plant in Birla Group manufacturing Cement with the then prevailing "Wet process" technology. In keeping with technological developments, the plant was upgraded and switched over to "Dry process" of Cement manufacturing in 1989. The plant has been conferred with ISO-9002 and ISO-14001 certification in recognition of its performance in quality management and environmental management systems. Besides the conventional general purpose Cement OPC 33G, 43G and 53G, Satna Cement manufactures PPC utilizing Flyash received from NTPC Thermal Power Plant at Unchahar(U.P) and also special purpose Cements viz. Sulphate Resistant Portland Cement, Low Alkali Cement and 1RS.-T-40 grade Cement for Railway sleepers. This plant has the distinction of being the only plant in INDIA with an Alkali bypass system installed. In consonance with its commitment to quality, necessary instrumentation facilities including X-Ray analyzer and X-Ray diffractometer are provided for monitoring and controlling quality of Raw materials and Clinker/Cement. While domestic market requirements the met with our products under the brand name "BIRLA CEMENT KHAJURAHO" and "BIRLA SAMRAT", our Cement is being regularly exported to Nepal and Bangladesh under the brand name "CAMEL" & "ROYAL TIGER".
An split location Cement Grinding unit was commissioned in Dec.1998 for Flyash base PPC grinding capacity of 30000 TPM, Clinker is being sent from Satna and Flyash is collected from NTPC Thermal Power house at Unchahar (U.P).
1. • • • • 2. • • • • • 3. • • • • Birla Cement Khajuraho/Chetak - 43 grade Ordinary Portland CementBrick and stone masonry. Plastering and flooring. Plain and reinforced cement concrete. Pre-cast and pre-stressed concrete. Birla Cement Khajuraho/Chetak-53 Grade Ordinary Portland CementRailway sleepers Pre-stressed girders and electric poles. M25 & above concrete. Roads, runways, industrial buildings, RCC bridges & lofty buildings. Pre-cast concrete elements Birla Samrat - Portland Pozzolana CementBrick and stone masonry Plastering and flooring. Plain and reinforced cement concrete. Ordinary Pre-cast concrete work.
4. Birla Cement Khajuraho - Sulphate Resisting Portland Cement• Building near sea coast. • Below ground, where concrete or mortar is used in foundation, aqua ducts, canals & culverts. • Desert conditions. • In swampy areas for footing, plinth beams, piles etc. • Industrial effluent treatment plant, cooling towers, chimneys, sewerage treatment plant. • Marine structures 5. • • • Birla Cement Khajuraho - Low Alkali Cement Bridges Dams Reservoirs
6. Birla Cement Khajuraho - IRS-T40 Cement 12
Price is one of the important elements of marketing mixture. Various factors affecting pricing policy of company are:1. Competitor’s price- competitor polices affects Birla pricing strategies and needed to be continuously watched. 2. Market positioning-a company can earn more profit if position of their product is good. Birla also consider brand positioning of various brands. 3. Godown stock- godown stock, market demand and supply also affect the pricing strategies. 4. Transportation cost- company continuously trying to reduce the cost by transporting right quantity through most suitable mode of transportation. 5. Brand image-brand image plays important role in pricing policy. BCL is continuously trying to reduce the cost without affecting the quality of product.
Product range of Birla Corporation Limited in cement sector includes three main types that are:-
Ordinary Portland cement Ordinary portland cement is the most commonly used cement for a wide range of applications. These applications cover dry-lean mixes, general-purpose ready-mixes, and even high strength pre-cast and pre-stressed concrete.
Portland blast furnace slag cement Portland blast-furnace slag cement contains up to 70 per cent of finely ground, granulated blast-furnace slag, a nonmetallic product consisting essentially of silicates and alumino-silicates of calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding slag for cement replacement takes only 25 per cent of the energy needed to manufacture portland cement. Using slag cement to replace a portion of portland cement in a concrete mixture is a useful method to make concrete better and more consistent. Portland blast-furnace slag cement has a lighter colour, better concrete workability, easier finishability, higher compressive and flexural strength, lower permeability, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency.
Portland Pozzolana cement Portland pozzolana cement is ordinary portland cement blended with pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant material or silicious earths), either together or separately. Portland clinker is ground with gypsum and pozzolanic materials which, though they do not have cementing properties in themselves, combine chemically with portland cement in the presence of water to form extra strong cementing material which resists wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete and mortar.
The Product and Brand names are as follows : Units Birla cement works Chanderia Cement work Satna Cement Works Birla Vikas Cement Raebareli Grinding Unit Durgapur Cement Works Durga Hitech Cement Products OPC-43G,55G,PPC PPC & OPC(43 Gr.) Portland Pozzolana Cement (PPC) Portland Slag Cement (PSC) Portland Pozzolana Cement (PPC) Brand Name Birla Cement Chetak Birla Cement Samrat Birla Cement Samrat Birla Cement Khajuraho Birla Cement Birla Premium Cement Birla Cement Birla Premium Cement Birla Cement Samrat
Special features Birla Cement Samrat
• • • • • • Low heat of hydration which prevent cracks in concrete. Prevent iron from corrosion due to low chloride contain. Resistance against water leakage. Ability to handle high pressure. Low setting time & need less water for it. Long life due to low magnesium and tricalcium aluminates.
Promotion a key element ingredient in marketing campaigns consists of diverse collection of intensive tools. Sales promotion and incentive schemes are mostly short term and designed to stimulate quicker or greater purchase of particular product or services by consumer on the trade. The various sales promotion methods adopted by the company are:-
1. Advertisement through television, newspaper, hording, wall painting, calendar etc. 2. Dealers and retailers meet and training programme. 3. Architect and engineer meet. 4. Incentives schemes to dealers like cash discount, quantity discount, annual discount, target setting, loyalty discount, annual visits to tourist places, annual gifts. 5. Dealer’s relationship programme like best seller award and other award programs. 6. Company visits to dealer’s shop.
TECHNICAL CONSUMER SERVICE CELL Backed up with a dedicated team of highly skilled professional and experienced application Engineers, the cell functions in an advisory capacity. Besides handling their constructional problems the cell offers all kind of assistance and guidance in the selection of the right cement for different application to ensure cost-effective, durable and safe construction.
Two type of distribution network mainly followed by the company are followings 1. Trade- This is available for the distributer, in this type company supply the cement through deport or directly from the factory. 2. Non Trade- It is basically contract basis, it include contractors and government. It is for a fix period at fix rate. There are two methods which followed by company regarding transportation cost 1. To be billed- In this category company pay fright and transportation cost, it is applicable in stock transfer only. The company first supply the cement to depot then supply to the dealer. 2. To Pay- In this category supply cost is given by the stockiest or dealer. Application in direct sale means from industry to Dealer. 75% transportation is through railway and rest through from road.
OBJECTIVE AND SCOPE OF STUDY
MAIN OBJECTIVE:To analyze the market of Birla cement in Satna region.
SUB OBJECTIVE:1. To identify the leading company. 2. To identify best promotional method. 3. To study dealer’s satisfaction about Birla product. 4. To know current position of Satna market. 5. To know about the effectiveness about distribution channels. 6. To know about heavy users of cement in Satna. 7. To collect the suggestion of retailers and dealers for Improvement of Birla policies.
SCOPE OF STUDY:Company can use this information for the betterment of the policies and making new strategies.
It’s imperative that any type of organisation in the present environment needs systematic supply of information coupled with tool of analysis of for making sound decision which involves minimum risk. A research design is purely and simply the framework or plan for a study that guides the collection and analysis of the data.
METHODS OF DATA COLLECTION
• Through interaction with retailers. • Through questionnaires filled from the consumer and retailers.
Considering the constraints, it was decided to conduct the study based on sample size of 100 respondents. The selection was made through combined approach of random sampling and convenient 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.
There are several methods of collecting primary data, particularly in surveys and descriptive research. Important are:• • • Observation method. Through questionnaires. Interview method.
In this project I have used questionnaire method.
The survey is conducted in SATNA and its nearby districts .Total number of respondent covered under this survey is 100 which are either dealers or retailers. In SATNA mainly five companies are in the market that are BIRLA, ACC, PRISM, MAIHER, and JAYPEE. Prism is toughest competitor of Birla cement. The following are company main brand in SATNA market. COMPANY BIRLA ACC JAYPEE MAIHAR PRISM MAIN BRAND SAMART SURAKSHA BULAND FAULAD CHAMPION M.R.P(Rs) 174 180 178 175 182
Cementing the future .
Har nirmaan ki jaan.
Majboot har pal.
Vishwas se kare nirmaan.
Chtaan sa majboot khare sone ki quality.
Buland Bharat ka buland cement.
Engineers ki pehli pasand.
COMPANY ACC BIRLA JAYPEE MAHIER PRISM
RESPONDENTS IN FAVOUR 25 20 18 09 28
BRAND SURAKSHA BULAND SAMART CHAMPION FAULAD
RESPONDENTS IN FAVOUR 21 19 18 25 17
LEADER IN SUPPLY OF CEMENT
COMPANY PRISM ACC BIRLA JAYPEE MAIHER
RESPONDENTS IN FAVOUR 24 21 20 18 17
HEAVY USERS OF CEMENT
CATEGORIES HOUSEHOLDER (H.H) BUILDER GOVT. CONTRACTOR (G.C) ARCHITECTORS OTHERS
RESPONDENTS IN FAVOUR 50 28 14 00 08
PURCHASING BEHAVIOUR OF CUSTOMER DEPENDS ON
REASONS PRICE ADVERTISEMENT QUALITY BRAND OTHER
RESPONDENTS IN FAVOUR 30 10 33 06 21
MOST EFFECTIVE METHOD OFSALES PROMOTION
METHODS DEALERS, RETAILERS MEET AND TRANING(D.R.M.T) ADVERTISEMENT INCENTIVE SCHEMES(I.S) AWARD PROGRAMS OTHERS
RESPONDENTS IN FAVOUR 42 28 11 13 06
BEST SOURCE OF ADVERTISEMENT
SOURCE TELEVISION NEWSPAPER,MAGZINES RADIO HORDING,WALL PAINTING OTHERS 65 16 02 11 06
RESPONDENTS IN FAVOUR
BEST IN QUALITY
COMPANY PRISM ACC BIRLA JAYPEE MAIHER
RESPONDENTS IN FAVOUR 43 26 18 13 00
OFFER BEST INCENTIVE SCHEME
COMPANY PPRISM ACC BIRLA JAYPEE MAIHER
RESPONDENTS IN FAVOUR 14 58 10 14 04
SATISFACTION IN PACKAGING
COMPANY ACC BIRLA JAYPEE MAIHER PRISM
RESPONDENTS IN FAVOUR 20 26 22 10 22
MOST REASONABLE PRICE
COMPANY ACC BIRLA JAYPEE MAIHER PRISM
RESPONDENTS IN FAVOUR 05 66 05 14 10
1. BIRLA Samrat is third most preferred brand after ACC Suraksha and JAYPEE Buland. 2. It has reasonable price in comparison to its competitor. 3. Quality of product is good. 4. Setting time and shining is better than competitors.
1. Lack of distribution channel. 2. Lack of availability of product. 3. Low advertisement budget.
1. Boom phase in cement market. 2. Immense export opportunities. 3. Rapid infrastructure development.
1. Tough competition from ACC, JP, PRISM. 2. Scarcity of raw material in near future. 3. Lack of infrastructure in near future.
CONCLUSION AND SUGGESTIONS
Birla Cement can easily increase its market share in Satna market by giving more attention to various element of marketing mixture. For this purpose suggestions are followings:-
1. Company should more invest in R&D. 2. Company should improve packaging because some complain about the packaging is found. 3. Company should give more training to workers about total quality management. 4. Company should organise more mansion meet, so that opinion and suggestion of users can be known.
1. Price fluctuation is one of the complaints from dealers and retailer; company should fix prices at least for one month. 2. Company should also give credit facilities to dealers and retailers. 3. Price of brand should be reasonable and not more than competitor’s price. 4. Company should fix certain amount of margins for dealers.
1. Company is for behind in comparison to its competitors in all mode of advertisement, hence budget for it should be increased and serious attention should paid on it. 2. Company should provide good incentives scheme to dealers and retailers. 3. Dealers and retailers meet should be organised to understand and solve their problem, and utilised as promotional method.
1. Birla distribution channel is not so strong in comparison to others, especially in Madhya Pradesh; hence company should pay attention to it. 2. Company should increase its number of dealers for easy availability. 3. Company should supply the cement directly to its heavy users i.e. railway.
1. Sample size of 100 is not enough to generalise result. 2. Response is depend upon psychology of respondent. 3. The survey is geographically limited to Satna district. 4. Some of the respondent tries to hide information like sales volume. 5. Dealers take it lightly and do not show interest in providing sufficient and exact information. 6. Some secondary data which I expect to collect from the company is not provided to me.
REFRENCES & BIBLIOGRAPHY
1. MARKETING MANAGEMENT by Philip Kotlar. 2. RESEARCH METODOLOGY by C.R.Kothari. 3. MARKETING RESEARCH by Tall, Donals & Howkins. 4. www.birlacorporation,com 5. BUSINESS MAGZINES i.e Business Today, Business World. 6. NEWSPAPERS i.e Economic Times. 7. BIRLA CORPORATION LIMITED annual magazines and
8. www.acclimited.com 9. www.prismcement.com 10. www.jilindia.com 11. www.maiharcement.com
DEAR RESPONDENT, I am doing the survey project in Birla cement work SATNA (A venture of Birla Corporation Limited) for my summer training .I need your expensive time. I assure u that this survey is only for academic purpose. Name: - __________________________ Address: -________________________ Contact: - _________________________ Q1.How many companies you are dealing for sale of cement? 1) 2) 3) 4) 1 2 3 4 or more than 4
Q.2 Which company is leading the market? 1) 2) 3) 4) 5) Prism ACC Birla Jaypee Others
Q.3 Which brand is leading the market? 1) 2) 3) 4) 5) Champion Surksha Buland Samart Others
Q.4 Which Company is best in quality? 1. 2. 3. 4. 5. Prism ACC Birla Maiher Jaypee
Q.5 Best packaging offered by which company?
1) 2) 3) 4) 5)
Prism ACC Birla Maiher Jaypee
Q.6 Which company is leader in supply of demand? 1) 2) 3) 4) 5) Prism ACC Birla Maiher Jaypee
Q.7 Purchasing behaviour of customer depends on 1) 2) 3) 4) 5) Advertise Quality Brand Others Prise
Q.8 Best source of advertisement. 1. 2. 3. 4. 5. TV Newspaper Magazine Hording Others
Q.9 Most effective method of sale promotion 1) 2) 3) 4) 5) Dealer meet and Training Award programs Advertisement Incentive schemes Others
Q.10 Which company has best sales promotion scheme? 1) 2) 3) 4) 5) Prism ACC Birla Maiher Jaypee
Q.11 Any suggestions for our Birla Cement Co. Ltd.
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