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A Study on Brand Positioning of Birla Cement with Special Reference to Bhilwara
At Birla Corporation Limited Chanderia, Chittorgarh Rajasthan (India)
FOR THE PARTIAL FULFILLMENT OF “MASTERES IN BUSINESS ADMINISTRATION” 2008-2010
SUBMITTED TO: Mr. VIBHOR PALIWAL H Mr. RAHUL JAIN
SUBMITTED BY: AMIT GHAWARI
Vision School of Management (Affiliated to Rajasthan Technical University Kota AICTE Approved) E-Mail : email@example.com Website : visionmanagement.org
I, AMIT GHAWARI, hereby declare that the project report entitled” “A Project on Brand Positioning” under the guidance of Mr. D.S. SHARMA submitted in partially fulfillment of the requirement for the award of degree of Master of Business Administration to Rajasthan Technical University, Kota is my
original work - research study - carried out during 18th May, 2009 to 26th June, 2009 and not submitted for the award of any degree, diploma, fellowship or other similar titles or prizes to any other institution/organization or university by any other person.
/ / 09
SIGNATURE (AMIT GHAWARI)
Founded in 1919 by the visionary industrialist, Shri G.D. Birla, at the outskirts of the then Calcutta. Birla Manufacturing Company Ltd. was the first company of Birla industrial conglomerate. Under the stewardship of his nephew, Shri M.P. Birla, the company diversified and expanded its business interest beyond cement, jute, PVC goods, steel casting and auto trims. Birla Corporation Limited is the flagship company of M.P. Birla group. It has variety in its basket. The core business of Birla Corporation limited is cement, generating 93% of the revenue for the company, 6% jute and 1% from other sectors. The project entitled “KNOWING BRAND POSITIONING OF BIRLA SAMRAT CEMENT IN BHILWARA MARKET.” The term of study was kept limited to make the title true. The focus of the report is to get the crystal clear understanding of the Brand positioning of Birla Samrat Cement in Rajasthan. Particularly in Bhilwara owing the status of heart of Rajasthan. With the growing Indian economy and the government policies for infrastructure the demand for cement is increasing and seeing this as an opportunity we are under taking many new projects for expansion of the production which are under implementation for increasing the capacity of the plants. Brand position has been taken into the consideration by two ways – overall study of the whole Birla Market & by Doing Survey of whole cement market of above mentioned two cities. The project contains the basic things which are necessary for knowing BrandPositioning of Company. Firstly is the Market Research is done by me in Bhilwara by Taking SIX major Brands Birla Samrat Cement, Ambuja Cement, Ultratech Cement, Binani Cement, J.K. Laxmi Cement & Shree Cement. Data collected by me only from Dealers .After data collection Research Methodology is done & find out the Brand-Positioning of cement in Bhilwara. In a nut-shell after the completion of my Brief & Vast report on the crucial subject matter of “Knowing the Brand-Position of Birla Corporation Limited”. I in my long lasting view has brought an eternal light towards “Findings, Suggestions & Constraints” regarding the Brand Position of the Birla Corporation which can play a vital role in taking it to the heights of the Success & goodwill to capture a good market share in this Neck-To-Neck Competition Creating hyper tension.
Words are indeed inadequate to convey my deep sense of gratitude to all those who have helped me in completing my summer project to the best of my ability. Being a part of this project has certainly been a unique and a very productive experience on my part. I am really thankful to Mr. D.S. Sharma (G.M. Maketing) for making all kinds of arrangements to carry the project successfully and for guiding and helping me to solve all kinds of quarries regarding the project work. His systematic way of working and in comparable guidance has inspired the pace of the project to a great extent. I would also like to thank my mentor and project – coordinator, Mr. Mukesh Dad (Assistant Manager Marketing TCS) for assigning me a project of such a great learning experience and acquainting me with real life project financing and appraisal. This project also would not have been successful without the help of Dr. S. K. Jain (Dy. G.M. HRD). Last but not least I would like to thank all the employees of Birla Corporation Ltd. who have directly or indirectly helped me with their moral support for the completion of my project. I express my deep sense of gratitude to Dr. A.L. Jain (Director of Vision School of Management, Chittorgarh) for his valuable guidance during my report work. I also greatful to all Faculty members Dr. Snehal Maheshkar, Mr.Vibhor Paliwal, Mrs.Pratibha Pagaria, Miss. Shobhika Tyagi, Mr. Rahul Jain and Staff members Mr. Purshottam Dashora, Mr. Rastraverdhan who guided me in my project.
AMIT GHAWARI Vision School of Management Chittorgarh
This project report is prepared as the partial fulfillment of two year degree programme of MBA curriculum of Rajasthan Technical University, Kota. This Research project is a compulsory part of the academics. This research is done in the Third semester of the MBA program. In this research, I have attempted the research about Brand Positioning. Positioning is one of the key elements of modern marketing management (Kotler, 2000). The overall purpose of this research is to indentify the Brand Position of Birla cement in Bhilwara market. I have taken six major cement brands for this research. The whole research is based on Dealer & Sub Dealer survey. The project is followed by 8 Chapters. Chapter 1 : Introduction of Cement Industry, Current Scenario in India, growth in Production & consumption, Birla Corporation history, subsidiaries companies, types of cement, manufacturing process of cement, standard requirement of raw material, distribution channel & SWOT analysis. Chapter 2 : Definition & concept of brand positioning, brand positioning strategy, competitive study among various cement brands. Chapter 3 : Research methodology, objective of research. Chapter 4 : Analysis & interpretation of collect data’s. Chapter 5 : Findings & conclusions Chapter 6 : Suggestions Chapter 7 : References cited Chapter 8 : Annexure
This report is an honest work towards the topic. There can be many short comings in it because of the lack of the time, unavailability of data and other constraints.
TABLE OF CONTENT
CERTIFICATE DECLARATION PREFACE ACKNOWLEDGEMENT EXECUTIVE SUMMARY Chapter 1 : INTRODUCTION OF BIRLA CEMENT
l ll lll lV V 3 5 6 8-12 13-14 15-16 17-20 21 22-23 24-27 28 29 30-31 32-33 34-39 40 41 42-52 53 54 55-56 57-59
♦ Current Scenario in India ♦ Growth in Production & Consumption ♦ Top Ten Players in Cement Industry ♦ History & Company profile ♦ Subsidiaries Company ♦ Corporate Social Responsibility ♦ History of BCW & CCW ♦ Awards ♦ Cement ♦ Manufacturing Process of Cement ♦ Standard Requirement of Raw Material ♦ Distribution Channel ♦ SWOT Analysis
Chapter 2 : CONCEPTUAL FRAMEWORK Brand Positioning Strategy Competitive Study Among Various Cement Brands Chapter 3 : RESEARCH METHODOLOGY Objective of Research Chapter 4 : ANALYSIS & INTERPRETATION Chapter 5 : FINDINGS & CONCLUSIONS Chapter 6 : SUGGESTIONS Chapter 7 : REFERENCES CITED Chapter 8 : ANNEXURE
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Brand Positioning - Definition and Concept
LIST OF TABLES CONTENTS
Chapter 1 : INTRODUCTION OF BIRLA CEMENT
4 4 6 13 14 16 20 21 27 28 41 42 42 42 43 43 44 44 45 45 46 46 47 47 48 49 51 52
TABLE 1.10 Standard Requirement of Various Raw Materials Chapter 3 : RESEARCH METHODOLOGY TABLE 3.1 Research Methodology Chapter 4 : ANALYSIS & INTERPRETATION
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TABLE 1.1 Current Scenario of Cement TABLE 1.2 Current Scenario of Clinker TABLE 1.3 Capacity wise Top 10 Players for year 2007-2008 TABLE 1.4 Location of Cement Plants in India TABLE 1.5 Unit Capacity of Cement Plant in India TABLE 1.6 Product and Brand names of Various Plants TABLE 1.7 Department & Heads of Department TABLE 1.8 Awards TABLE 1.9 Storage of Cement
TABLE 4.1 Total of the score given by the Respondents TABLE 4.2 Overall rank for the Attributes only TABLE 4.3 Overall rank of the Companies TABLE 4.4 No. of Forms of Various Companies TABLE 4.5 Preferences Collected from Various Cement Dealers TABLE 4.6 Quality Collected From Various Cement Dealers TABLE 4.7 Packing Quality Collected From Various Cement Dealers TABLE 4.8 Colour Collected From Various Cement Dealers TABLE 4.9 Availability Collected From Various Cement Dealers TABLE 4.10 Price Collected From Various Cement Dealers TABLE 4.11 Tech. Services Collected From Various Cement Dealers TABLE 4.12 Sales Pro. Collected From Various Cement Dealers TABLE 4.13 Brand Name Collected From Various Cement Dealers TABLE 4.14 Advertisement Collected From Various Cement Dealers TABLE 4.15 Total Score In Percentage Company Wise TABLE 4.16 Rank The Attribute Which Contributes Brand Positioning TABLE 4.17 Results After Calculating Weighted Average Method
LIST OF FIGURES
Chapter 1 : INTRODUCTION OF CEMENT INDUSTRY
5 7 7 24 25 27 29 33 43 43 44 44 45 45 46 46 47 47 48 49 52
FIGURE 1.7 Distribution Channel Chapter 2 : CONCEPTUAL FRAMEWORK FIGURE 2.1 Vision , Mission , Values of Brand Positioning Chapter 4 : ANALYSIS & INTERPRETATION
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FIGURE 1.1 Growth in Cement Production 2006-07-08 FIGURE 1.2 The Forms of Cement Produced FIGURE 1.3 Major Players in Indian Cement Sector FIGURE 1.4 Manufacturing Process of Cement FIGURE 1.5 Process Flow Diagram FIGURE 1.6 Products of BCW & CCW
FIGURE 4.1 No. of Forms of Took During Survey FIGURE 4.2 Preferences Collected from Various Cement Dealers FIGURE 4.3 Quality Collected From Various Cement Dealers FIGURE 4.4 Packing Quality Collected From Various Cement Dealers FIGURE 4.5 Colour Collected From Various Cement Dealers FIGURE 4.6 Availability Collected From Various Cement Dealers FIGURE 4.7 Price Collected From Various Cement Dealers FIGURE 4.8 Tech. Services Collected From Various Cement Dealers FIGURE 4.9 Sales Promotion Collected From Various Cement Dealers FIGURE 4.10 Brand Name Collected From Various Cement Dealers FIGURE 4.11 Advertisement Collected From Various Cement Dealers FIGURE 4.12 Total Score in Percentage Company Wise FIGURE 4.13 Results After Calculating Weighted Average Method
Cement Industry Cement Industry originated in India when the first plant commenced production in 1914 at Porbandar, Gujarat. The industry has since been growing at a steady pace, but in the initial stage, particularly during the period before Independence, the growth had been very slow. Since indigenous production was not sufficient to meet the entire domestic demand, the Government had to control its price and distribution statutorily. Large quantities of cement had to be imported for meeting the deficit. The industry was partially decontrolled in 1982 and this gave impetus to its pace of growth. Installed capacity increased to more than double from 27 million tons in 1980-81 to 62 million tons in 1989-90. The cement industry responded positively to liberalization policy and the Government decontrolled the industry fully on 1st March 1989. From 1991 onwards cement industry got the status of a priority industry in schedule III of the industry policy statement, which made it eligible for automatic approval for foreign investment up to 51% and also for technical collaboration on normal terms of payment of royalty. After the globalization and liberalization of Indian economy, the cement industry has been growing rapidly at an average rate of 9 percent. The country is now the second largest producer of cement in the world next only to China with a total capacity of 217.80 million tones. Additionally, in the last two decades, the industry has undergone rapid technological up gradation and growth, and now, some of the cement plants in India are comparable to the worlds best operating plants in all respects. Till a few years ago India was importing cement from other countries, as the production could not meet the demand for the whole country. Now the tables have turned as India has started exporting large quantities of cement and clinker to Bangladesh, Nepal, Sri Lanka, Maldives, Mauritius, Africa, Seychelles, Burma, UAE, and Singapore etc.
India is today the second largest producer of cement in world with an installed capacity of close to 217.80 million tons per year. 95 % is consumed domestically and only 5% is exported. Demand is growing at more than 10 % per annum. More than 90 % of production comes from large cement plants. There are a total of 146 large and more than 350 small cement manufacturing units in the country. More than 80% of the cementmanufacturing units use modern environment friendly “dry” process. In the cement industry there are two sectors – one consisting of large plants and the other consisting of mini cement plants. A factory with an installed capacity exceeding 2,97,000 tones per annum (900 tons per day) is a large plant and with capacity up to and including 2,97,000 tons is a mini cement plant. At present, there are 146 large plants and about 365 mini cement plants. Since mini cement plants are scattered all over the country with a number of associations representing different types of processes, sizes etc. and some of them are even tiny units, it has not been possible to obtain correct data of this sector. The present installed capacity of large plants is 217.80 million tons and the estimated capacity of mini cement plants is 11.8 million tons. Overview of the performance of the Cement Sector The Indian cement Industry not only ranks second in the production of cement in the world but also produces quality cement, which meets global standards. However, the industry faces a number of constraints in terms of high cost of power, high railway tariff; high incidence of state and central levies and duties; lack of private and public investment in infrastructure projects; poor quality coal and inadequate growth of related infrastructure like sea and rail transport, ports and bulk terminals. In order to utilize excess capacity available with the cement industry, the government has identified the following thrust areas for increasing demand for cement: • Housing development programmers & Promotion of concrete highways and roads; • Use of ready-mix concrete in large infrastructure projects; • Construction of concrete roads in rural areas under Prime Ministers Gram Sadak Yojana. In India, the different types of cement are manufactured using dry, semi-dry, and wet processes. In the production of Clinker Cement, a lot of energy is required. It is produced by using materials such as limestone, iron oxides, aluminum, and silicon oxides. Among the different kinds of cement produced in India, Portland Pozzolana Cement, Ordinary Portland Cement, and Portland Blast Furnace Slag Cement are the most important because they account for around 99% of the total cement production in India.
The types of cement in India have increased over the years with the advancement in research, development, and technology. The Indian cement industry is witnessing a boom as a result of which the production of different kinds of cement in India has also increased. By a fair estimate, there are around 11 different types of cement that are being produced in India. The production of all these cement varieties is according to the specifications of the cement.
CURRENT SCENARIO The Indian cement industry is the second largest producer of quality cement, which meets global standards. The cement industry comprises 130 large cement plants and more than 300 mini cement plants. The industry's capacity at the end of the year reached 188.97 million tons which was 166.73 million tons at the end of the year 200607. Cement production during April to March 2007-08 was 168.31 million tons as compared to 155.66 million tons during the same period for the year 2006-07.Despatches were 167.67 million tons during April to March 2007- 08 whereas 155.26 during the same period. During April-March 2007-08, cement export was 3.65 million tons as compared to 5.89 during the same period. Cement industry in India is currently going through a consolidation phase. Some examples of consolidation in the Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian Rayon's cement division, and Sri Digvijay Cements. Foreign cement companies are also picking up stakes in large Indian cement companies. Swiss cement major Holcim has picked up 14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired the cement plants of Raymond and Tisco. Italy based cement has acquired a stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German cement company
Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia Group controlled Indo-Rama Cement.
Cement Particulars Production Despatches(Including Export) Export Closing Stocks Capacity Utilization (%) Mar-08 16.39 16.42 0.32 1.07 104 Feb-08 14.73 14.79 0.21 1.15 98
(Mn.Ton.) Mar-07 14.99 15.13 0.45 0.85 108 96 94 2007-08 168.31 167.67 3.65 2006-07 155.66 155.26 5.89
During March 08, Cement production was 16.39 Mn.T, registering a growth of 9.34% as compared to 14.99 Mn.T in March 07. Cement Despatches were 16.42 Mn.T in March 08, showing a growth of 8.53% as compared to 15.13Mn.T in March 07 Clinker Particulars Production Sales Mar-08 11.88 0.41 Feb-08 10.83 0.29 Mar-07 11.19 0.27 2007-08 129.69 3.01 (Mn.Ton.) 2006-07 121.75 2.35
Export Transfer Closing Stcoks
0.21 1.55 5.47
0.2 1.42 6.09
0.19 1.45 4.41
During March 08, Cement Export was 0.32 Mn.T a decline of 28.89% from 0.45 Mn.T in March 07, whereas Clinker Export showed a growth of 10.53% (from 0.19 Mn.T. in March 07 to 0.21 in March 08) GROWTH IN CEMENT PRODUCTION 2007-08/2006-07 (Apr-Mar)
This Graphical represenation shows that overall growth in cement production in inidia is 8% in 2007-08. but if we are distributing in different region then it shows 14%, 8%, 8%, 5%, 4% to North,East,South,West,Centre respectively.In North,higest growth is 14% and least growth in centre region which is only 4%.
CAPACITYWISE TOP TEN PLAYERS FOR YEAR 2007-2008
(Figures in Mn. Tones)
COMPANY HOLCIM / ACC / AMBUJA GRASIM / ULTRA TECH CEMENT JAYPEE GROUP. THE INDIAN CEMENTS LTD. SHREE CEMENT CENTURY TEXTILES & INDUSTRIES LTD. BIRLA CORPORATION LTD. MADRAS CEMENTS LTD. LAFARGE INDIA PRIVATE LTD.
CAPACITY 38.21 36.25 9.93 9.64 9.10 7.80 5.78 5.47 5.47
The Forms of Cement Produced
FORMS OF CEMENT
FORMS OF CEMENT
PORTLAND POZZOLANA CEMENT
PORTLAND SLAG CEMENT
Major players in Indian cement sector
* Lafarge * Gujarat Ambuja Cement/Holcim
* Ultratech Cement * India Cements * Century Cements * Jaypee Group * Madras Cements * Birla Corporation Limited
INTRODUCTION OF BIRLA CORPORATION LIMITED
History of the company The company was founded by Late Shri G.D.Birla and was incorporated on 25th August 1919, in the name and style of The Birla Jute Manufacturing Company Limited. A man of vision and enterprise, he set up the first Indian –Owned Jute Mill near Kolkata which marked not only the birth of the company but also the beginning of the Birla Industrial Group in India. The company grew steadily under his guidance in the earlier years. Thereafter Shri M.P.Birla took over the reins of the company and he helped transform it from a jute mill to a leading multi-product, multi-location corporate with widespread activities. Today, the product range includes cement, jute goods, vinoleum floor covering, auto trims and steel castings. After the demise of Shri M.P.Birla in 1990, Smt.Priyamvada Birla took over as the Chairman of the company and under her Chairmanship; company crossed the Rs.1,000 cores plus turnover mark. After the demise of Smt.Priyamvada Birla on 3rd July 2004, Shri R.S.lodha took over as the chairman of the company and under his Chairmanship, company has attained new heights. The name of the company was changed to Birla Corporation Limited with effect from 27th October, 1988 to establish the size, image and conglomerate character of the company.
Credit Rating of the Company
Credit Analysis and Research Limited ( CARE ) has assigned “CARE AA” rating for the company long and medium term facilities of more than one year tenure and PR 1 + ( PR one plus) rating for short term bank facilities , aggregating Rs.500 crores. Further, the rating Committee of CARE has re-affirmed PR 1 + rating and CARE AA rating for short term debt and the proposed long term borrowing programme of the company.
Birla Corporation Limited is a multi- product conglomerate. • It plays significant roles in the Cement, Jute, PVC floor Covering, Auto Trim and Steel casting industries. • The concentric around the triangle represents this very multi-dimensional nature. • The apex of the triangle is a visual representation of the force that drives the entire corporation–the unifying force in search of excellence.
Late Shri M.P.Birla
Late Smt. Priyamvada Birla
MANAGEMENT The day- to- day management of the company is being looked after by the Chief Executive Officer, Shri B.R.Nahar who is assisted by a team of highly qualified professional persons.
CHAIRMAN ED & CEO
Late Shri R.S. Lodha
Board of Directors
Shri Smt Shri Shri N.K. Kejriwal Nandini Nopany Harsh V. Lodha Pracheta Majumdar Shri Shri Shri Shri Vikram Swarup Anand Bordia B.B. Tandon D.N.Ghosh
Logo of Birla Corporation Limited
The corporate symbol of concentric circles around a triangle represents this very multi-dimensional nature. The apex of the triangle is a visual representation of the force that drives the entire corporation – the unifying force in search of excellence. The various sub-business units are diverse in interest & operation. But they are held together by this centripetal drive. The circles represent the inspiration to explore new frontiers of growth.
QUALITY CONTROL AND ASSURANCE
In order to ensure quality, effective control has to be exercised throughout the process of production. The control procedures cover all aspects of cement manufacture from quarry operation, handling, mixing and grinding to packing. In order to achieve quality assurance, most of the cement plants have established facilities for sophisticated controls. Some of the important controls introduced in the cement industry as follows: • • • • •
Computerized mine planning and deposit evaluation to enable optimum use of raw material Online X-ray fluorescence spectrometer for raw material control and raw mix design. Better aided instrumentation and process measurements using X-ray analysis, gas analyzers, temperature and pressure measuring devices, etc. Centralized kiln control system in conjunction with expert control systems for process and operation control. Continuous monitoring of quality in production by plants as well as by the certifying agency, namely, Bureau of Indian Standards (BIS) under compulsory Certification Scheme.
BIS certification is compulsory for all varieties and grades of cement under the Cement (Quality Control) Order, 1962 issued under the Essential Commodities Act, 1955. Since the Indian cement industry recognizes that ISO-9000 quality system is extremely important for quality assurance, reliability and competitiveness, about 45 cement plants have already secured ISO-9000 Certification. The Total Quality Management (TQM) concept has also been adopted by more than 70 cement plants. Besides, some leading companies have acquired TPM (Total Productive Maintenance) accreditation. Some manufacturers are going ahead for world class rating, e.g. WCM (World Class Manufacturing) or ERP (Enterprise Resource Planning) to be at par with ‘Best Practices’ anywhere in the world. India produces different varieties and grades of cement, namely, Ordinary Portland Cement (OPC) (33,43,53 grades), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFSC) and many other varieties. Some of these varieties are used for special applications, e.g. blended cement helps in resisting certain chemical agents, sulphate resisting cement can be used in places where concentration of sulphate is more, a low heat cement is used for mass concreting work like dams, barrages and deep foundations. All these varieties of cement have been covered by Indian Standard Specifications.
MISSION & VISION
Mission To achieve international standards of excellence in all aspect of division and diversified business with focus on customer delight through value of product, Services, cost and reduction. To maximize creation for wealth and satisfaction for the stakeholder. To foster a culture of participation and innovation of employee growth and contribution. To cultivate high standards of business ethics and total Quality Management. To provide technology and service through sustained research and development. To attain leadership in developing, adopting and assimilating state-of-art technology for competitive advantage. Offered full opportunities and challenges to develop individually enabling career growth. Encouraged to acquire knowledge to meet the challenges of new technologies and business needs in the changing scenario. Educated and guided to inculcate and practice right values as are nurtured by the organization. Vision
A major diversified, transnational, integrated company with leadership and a
strong environment conscience playing a national role in cement, Jute, Auto trim, Venolium and public distribution. OBJECTIVES & OBLIGATIONS Objectives To serve the national interests in the Product and related sectors in accordance and consistent with Government policies. To earn a reasonable ate of on interest. To maximize utilization of the existing facilities in order to improve efficiency and increase productivity. To work towards the achievement of self-sufficiency in the field of cement market by setting up adequate capacity and to build up expertise in lying of crude.
To further enhance distribution network for providing assured service to customers throughout the country through expansion of reseller network as per Marketing Plan/ Government approval. Obligations Towards Customers and Dealers: To provide prompt, courteous and efficient service and quality products at fair and reasonable prices. Towards Suppliers: To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary industries. Towards Employees: Develop their capability and advancement through appropriate training and carrier planning. Towards Community: To develop techno-economically viable and environment friendly products for the benefit of the people.
SUBSIDIRES COMPANY OF THE BIRLA CROPORATION CEMENT DIVISION:Cement is the primary product of the company and accounts for around 90% of the turnover of the company. The company has seven cement plants at four locations, namely, Satna Cement Works ( SCW ) and Birla Vikas Cement ( BVC ) at Satna (Madhya Pradesh ), Chanderia Cement Works ( CCW ) and Birla Cement Works ( BCW ) at Chanderia ( Rajasthan ), Durgapur Cement Works ( DCW ) and Durga Hitech Cement ( DHC ) at Durgapur ( West Bengal ) and Cement Grinding Unit at Raebareli (Uttar Pradesh). The present installed capacity of cement is 58.80 lac metric tones per annum. Location wise details are given here under:-
Location of Cement Plants in India
STATE Madhya Pradesh Rajasthan West Bengal
TOWN Satna Chanderia Durgapur
UNITS Satna Cement Works Birla Vikas Cement Birla Cement Works Chanderia Cement Works Durgapur Cement Works Durga Hitech Cement
Uttar Pradesh STATE M.P. Rajasthan West Bengal Uttar Pradesh TOWN Satna Chanderia Durgapur Raebareli
Raebareli UNITS CAPACITY Mill. Ts 1.55 2.00 1.60 0.63
Raebareli Grinding unit
CAPACITY : 5.78 Mill. Ts.
The Product and Brand names are as Follows:
UNITS Birla Cement Works Chanderia Cement Works Satna Cement Works Birla Vikas Cement Raebareli Grinding Unit
PRODUCTS OPC - 43G, 55G, PPC PPC PPC & OPC (43 Gr.) Portland Pozzolana Cement (PPC)
BRAND NAME Birla Cement Chetak Birla Cement Samrat Birla Cement Samrat Birla Cement Khajuraho Birla Cement Samrat
Durgapur Cement Works Durga Hitech Cement
Portland Slag Cement (PSC) Portland Pozzolana Cement (PPC)
Birla Cement Birla Premium Cement Birla Cement Samrat
Corporate Social Responsibilities
Educational Activities South Point School, Kolkata, West Bengal M.P. Birla Foundation Higher Secondary School, Kolkata, West Bengal M.P. Birla Shiksha Bhawan, Allahabad, Uttar Pradesh M.P. Birla Industrial Training Institute, Rewa, Madhya Pradesh Birlapur Vidyalaya, West Bengal Birla Vikas Vidyalaya, Satna, Madhya Pradesh School at Chittorgarh, Rajasthan Sarada Kanya Vidyapith, Barrackpore, West Bengal M.P. Birla Foundation Veda Sanskrit Pathshala, Bangalore, Karnataka Medical Activities Bombay Hospital, Mumbai, Maharashtra Belle Vue Clinic, Kolkata, West Bengal
M.P. Birla Medical Research Centre at Birlapur, West Bengal and Satna, Madhya Pradesh Birla Vikas Hospital, Satna, Madhya Pradesh Birlapur Hospital, Birlapur, West Bengal Dispensary at Allahabad, Uttar Pradesh Hindustan Medical Institution at Barrackpore, West Bengal Other Philanthropic Activities M.P. Birla Planetarium, Kolkata, West Bengal Express Dairy, Behala, Kolkata, West Bengal Joka Agricultural & Horticultural Society, Joka, West Bengal SOCIAL SERVICES Water Facilities in Satna & Chanderia. Roads in Chanderia. Cleanness Campaign with Zilla Parishad in Chanderia. AWARDS & ACHIEVEMENTSore..
CAPEXIL “Special Export Award” every year, since 1990.
ISO 9002 certification for Satna Cement Works, Birla Vikas Cement and Durgapur Cement Works.
ISO 9001-2000(QMS) certification for Birla Cement Works, Chanderia Cement Works from BVQI, UK.
IS/ISO 14001 certification in 1999-2000 for Satna Cement Works and Birla Vika Cement, in 2002-2003 for Birla Cement Works & Chanderia Cement Works for environment management systems & “Best in Energy Performance” in 1986-87.
"Best in Energy Performance" for Satna Cement Works in 1993-94, 1994-95, 1995-961997-98.
"Best improvement in Thermal Energy Performance" recognition from NCB for Birla Cement Works in 1992-93 and Chanderia Cement Works in 1993-94.
"Bhama Shah Samman" from the Rajasthan Government for Educational Activities for Birla Cement Works in 1996-97.
"Excellence in Improving Machinery Health Condition" in 1997.
Ministry of Labour, Government of India, for Birla Cement Works & Chanderia Cement Works in 1998-99 and again in 2001-02.
"Lal Bahadur Shastri Memorial National Award" for Excellent Pollution Control
BIRLA CEMENT WORKS
Chanderia, Chittorgarh (Rajasthan) (Unit of M/s. BIRLA CORPORATION LIMITED)
Since I had done my summer training at the units situated at Chittorgarh i.e. BCW & CCW so here I am giving a brief description of these two unitsBIRLA CEMENT WORKS (BCW) was commissioned in February 1967, was the 1st dry process plant with two suspension preheating technology in the country. Shri M.L.Sukhadia laid the Foundation stone of BCW on January 1962 and it started functioning on Basant Panchmi in year 1967.Its initial capacity of 2 lac tones was increased to 4lac tones in year 1992. In a major modernization drive, the two stages preheater were converted into five stages pre-heater & a Modern computerized system was installed. The BCL installed a new plant in year 1986 called “Chittorgarh Cement Works (CCW)”. It is equipped with state –of-art equipment like 5 stage pre-heater, inline clinker, Hot ESP etc. were commissioned in 1986. A central computerized control system with X-rays analyzer & other sophisticated quality control system have been provided to ensure the best quality cement production. The company has its own mines named ‘Jai Surjana’ which is at a distance of about 4Km from factory. BCW was the 1st cement plant in the country to install Electrostatic Precipitator (ECP’s) in order to control the dust emission. To further improving the efficiency of ESP’s, gas – conditioning towers have been installed and bag dust collectors have been provided at all material transfer points in both the units. Today as many as 11 ESP’s & 57 bag dust collectors are functioning efficiently to control and maintain the emission levels well below the air pollution control act.
BCW & CCW’S Core Values, Vision, Mission
Core Values A) Business entity & Ethics. C) Sense of Ownership. B) Transparency & Openness. D) Striving for excellence
Vision Be one of the best known work culture & organization climate in cement industry. Attain excellence in every sphere through team work while fostering individual uniqueness, Entrepreneurship & Empowerment.
Mission To develop an enabling learning, responsive & trustful organizational climate Where people are respected empowered & derives joy in working.
Environment & Safety Number of activities on safety awareness, health checkup of all employees is being carried.
Safety In order to have control overall accidents and serious / fatal accidents within the plants, the each and every employees of the organization is familiar with the thinking and objectives of the organization and support the safety programme. To prevent accident, we have included the safety programme like investigation & analysis of all serious and fatal accidents, recommendations / remedial measures to prevent similar accidents and we also included the near miss situation / accidents in our safety programme.
The regular safety inspection is being conducted in the plant to identify unsafe conditions and unsafe practices, which lead to accidents. Awareness and training programmes are being conducted to develop correct attitudes towards safety. A safety booklet in Hindi was published giving information of safety rules and regulation and distributed to the all employees including the contractors’ workmen. System, Methods and Instructions has been prepared for the safety related activities in the plants. Maintaining all statutory requirements as per The Factories Act. Fire hydrant As a part of regular activity safety department organized various competitions like slogan, poster, declamation etc. with regards to safety for employees. Safety week and safety day are celebrated with great zeal. Several employees are awarded on the occasion. Environment External environment audits through certifying agencies were conducted and various environmental initiatives including environmental monitoring were implemented to maintain the ecological balance in and around the plant & mining premises. The statutory requirements relating to various environmental legislations and environment protection were duly compiled with, beside several voluntary initiatives such as background concentration assessment. Water management studies of the district and mass environmental awareness programmes are being conducted.
Facilities Provides By BCW & CCW
The factory has provided the various kinds of the facilities to the company employees & workers. It gives the soothing environment to the workers & motivates to do better & more work for company.
These facilities are under
Clubhouse Residential Colony
Vividha School & Canteen Transportation Facility Vocational Training Play grounds & sports fields Tree plantation in Gardens
Department and Heads of Department
The company has 21 departments in the organization for well directing the organization and to achieve the goals and mission for the company. Name of the Department HRD Gen Administration Accounts Information System Purchase Legal Personal & Welfare Security Mines Stores Building Environment Safety Time Office Production Head of the Department Dr. S.K. Jain Mr. Anil Sharma Mr. M.M. Jagetiya Mr. Bhupesh Sharma Mr. P. Ghosh Mr. Umesh Pareek Mr. N.K. Singhee Mr. Lt. Col. Jai Raj Mr. S.R. Sharma Mr. S.S. Choudhary Mr. P.K. Saboo Mr. M.S. Murgan Mr. Sanjay Rathi Mr. S.N. chechani Mr. Arvind Jha
T.C.S. Engineering Electrical Sales & Marketing Sales Accounts Logistics
Mr. Mukesh Dad Mr. K.R. Karwa Mr. S.Thattey Mr. D.S. Sharma Mr. K.B. Jagetiya Mr. N.K. Tripathi
Plant has been awarded with number of awards, details are given below:S. NO. 1. 2. 3. 4. 5. 6. 7. Name of Award ISO 9001 : 2000 Certification IS / ISO : 14001 Certification Best Productivity Award Best improvement in Thermal Energy Performance Best improvement in Energy Performance Bhama Shah Award for Educational Activities Excellent award for Maintaining Health Condition of Machinery Merit Award Awarding Institute BVQI, UK in 2002 to BCW & CCW BIS, New Delhi in 2002 to BCW & CCW NPC to CCW in 1989-90 & again in 1993-94 NCB to BCW in 1992-93 NCB to BCW in 1992-93 Government of Rajasthan to BCW in 1996-97 IIT, Chennai & Vibration Engineers Consultants (P) Ltd. to BCW & CCW in 1996-97 VEC (P) Ltd., Chennai for sustained implementation of condition monitoring and continued machine health improvement in 2001. Central Board for Workers Education, Udaipur, Ministry of Labour, Government of India to BCW & CCW in 1998-99 and again in 2001-02
Workers Education Trophy
Best Supporting Core Plant
11. Awards to Captive Mines (Safety Week celebration in Udaipur region) Best Income Tax Payee (TDS) Award
Regional Training Centre (North), Nimbahera in 1998-99, 2000-01 & 2001-02. DGMS, Udaipur – 1995(1), 1996(2), 1997(1), 1998(3), 1999(4), 2000(2), 2001(5) & 2002(3). Income Tax Department, range to BCW in 1996-97 Udaipur
Definition of Cement:
In General is a generic name for powered material which initially have plastic flow when mixed with water but from solid structure on several hours with varying degree of strength & bonding properties which continue to improve with age.
Cement is a binding material. Earlier the cement was used as a binding material. Cement is one of the strongest binding materials with long life. The weathering effect on cement is very low. For manufacturing of cement the basic raw materials is limestone (calcium carbonate). The limestone used in manufacturing of cement should have at least 80% purity.
History of Cement • Joseph aspedene discovered cement in 1824.
Materials used were- lime, Brick, Bed, Volcanic, lava, water & ash. 1897 wet process KILAN came in existence DRY-PROCESS.
Types of Cement
1. BIS covers 14 types of cement. 2. 9’s are the commercially produced in India. 3. Major Cements are OPC, PPS, & PSC.
Different types of cement that are produced in India are
• Ordinary Portland cement (OPC): OPC, popularly known as grey cement, has 95 per cent clinker and 5 percent gypsum and other materials. It accounts for 70 per cent of the total consumption. • Portland Pozzolana Cement (PPC): PPC has 80 per cent clinker, 15 per cent pozzolana and 5 per cent gypsum and accounts for 18 per cent of the total cement consumption. It is manufactured because it uses fly ash/burnt clay/coal waste as the main ingredient. • White Cement: White cement is basically OPC - clinker using fuel oil (instead of coal) with iron oxide content below 0.4 per cent to ensure whiteness. A special cooling technique is used in its production. It is used to enhance aesthetic value in tiles and flooring. White cement is much more expensive than grey cement. • Portland Blast Furnace Slag Cement (PBFSC): PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per cent gypsum and accounts for 10 per cent of the total cement consumed. It has a heat of hydration even lower than PPC and is generally used in the construction of dams and similar massive constructions.
• Specialized Cement: Oil Well Cement is made from clinker with special additives to prevent any porosity. • Rapid Hardening Portland cement: Rapid Hardening Portland Cement is similar to OPC, except that it is ground much finer, so that on casting, the compressible strength increases rapidly. • Water Proof Cement: Water Proof Cement is similar to OPC, with a small portion of calcium stearate or nonsaponifibale oil to impart waterproofing properties.
Raw material required for Cement Various raw materials required for manufacturing cement are :Limestone - extracted from own mines Laterite Gypsum Pet Coke Fly Ash - readily available from nearby mines - purchased from Bikanar & Nagore - imported from foreign countries - brought from Kota Thermal Power Plant
Manufacturing Process Of Cement
Limestone Stock Pile
Mining Limestone is extracted from own mines, which are situated approx. 4 km. away from plant. The mining of limestone is done in such a way so as to get 78% to 82% pure limestone. Crushing The extracted limestone is then transported to Jai crusher by dumpers. The limestone is crushed into small pieces of approx. 16 to 25 mm. sizes. Grinding The crushed limestone along with latrine is feed into the Raw Mill for grinding. The ground material is called Raw Meal. It is than sent to the CF Silo. Blending -
In the Silo the Raw Material is blended to make the mixture uniform. From here the material is sent to the pre heaters. Burning In pre heaters, the mixture is heated at various temperatures at various stages. This preheated material is now fed into the kiln where it is heated at the temperature of 14001500 degree where calcinations take place. Coal is used in the kiln to maintain the temperature and finally clinker emerges out of it. This clinker is transported through a conveyor into a storage Silo from where it taken out through vibratory feeders & fed into the open circuit cement grinding mill hoppers. Grinding The grinding of clinker with gypsum is done in cement mill. It is basically have where the grade of cement is controlled gypsum is added to increase the setting time of the cement. Then cement is than stored for some time. Storage & packing The cement is than conveyed to different cement storage silos according to their grades & from silos it is packed in pp bags by using electronic packaging machines.
PRODUCTS OF BCW & CCW
Storage of Cement
Storage Time Fresh 3 Month 6 Month 12 Month 24 Month
Compressive Strength 100% 80% 72% 60% 46%
Standard requirement of various Raw Materials
Particular OPC Clinker - Limestone - Iron Ore
Standard requirement 92-93% 02-03%
- Gypsum PPC Clinker Gypsum Fly ash
05% 70% 05% 25%
Method of cement storage
1. All windows & doors are closed and weather & Moisture must not affect to the cement. 2. Distance of stacking bags should be 1 feet from wall & 2 feet from ceiling. 3. In one stacking put only max. 15 cement bags. 4. Use of cement bags FIFO system. 5. Put the cement bags on wooden-plates & than cover by the plastics-sheets.
Company has a very simple distribution channel for delivering the goods to the consumer. It is combination of:
Direct Selling To
Various Govt. Contracts
SWOT ANALYSIS OF BIRLA CORPORATION LIMITED
Strengths:1. The industry is likely to maintain its growth momentum and continue growing at about 9 – 10% in the foreseeable future.
2. Government initiative in the infrastructure sector such as the commencement of the second phase of the National Highway Development project, freight carriers, rural roads and development of the housing sector, are likely to be the main drivers of growth. 3. Measures initiated by the Government towards public-private partnership for removing bottleneck in the development of infrastructure in the country, augurs well for the industry. 4. In the coming few years the demand for the cement will increase which will be booming news for cement manufactures. 5. For the purpose of the packing of essential item, jute products which are environment friendly and biodegradable characteristic are considered as best option.
Weaknesses 1. High capital cost and investment cost for each and every project.
2. The complex Excise Duty structure based on the category of buyer and end use of the cement has caused at lot of confusion in the industry. 3. The recent ban on export of cement clinker would increase the availability of cement in the domestic market, which in turn would put pressure on cement prices. 4. The major concern for the industry are :
• Continuous increase in labour cost. • Shortage of skilled labourers. • Appreciation of rupees against foreign currencies. • Procuring of limestone mines at economical price an entry barrier. Opportunities
1. Adequate support from the Government is very essential to promote business activities. 2. Increase in the production and sell of cement at different plants have increased the turnover of the company.
3. It would be in the interest of both the government and the industry to work together with aim to streamline the indirect tax regime and keep the prices of the inputs such as coal under control so that the cement price can be maintained at reasonable levels. 4. Despite slightly lower economic growth, the construction and infrastructure sector is expected to record healthy growth, which augurs well for cement industry. 5. The modernization, productivity improvement and cost control measures will improve the performance of the division in times to come.
Threats • The recent moves by the Central Government in making the import of the cement total duty free, is a cause of for the Indian cement industry. • Further recent changes in the Central Excise Duty structure by way of introduction of multiple slabs of Excise Duty is also a cause of worry for the industry. • Almost all the major players in the industry have announced substantial increase in the capacity and the possibility of over supply situation cannot be ruled out. • Increased railway freight, coal prices and dispatch bottlenecks on account of truck Loading restrictions imposed by various State Governments • Scarcities of good quality Coal are some other factors which are cause of concern for the industry.
“Developing Marketing Strategy by Knowing Brand-Position of BCW/CCW Product- 2009 for Birla Cement Works”
Brand Positioning - Definition and Concept Brand positioning refers to “target consumer’s” reason to buy your brand in preference to others. It is ensures that all brand activity has a common aim; is guided, directed and delivered by the brand’s benefits/reasons to buy; and it focuses at all points of contact with the consumer. Brand positioning must make sure that:
• • • • • • •
Is it unique/distinctive vs. competitors ? Is it significant and encouraging to the niche market ? Is it appropriate to all major geographic markets and businesses ? Is the proposition validated with unique, appropriate and original products ? Is it sustainable - can it be delivered constantly across all points of contact with the consumer ? Is it helpful for organization to achieve its financial goals ? Is it able to support and boost up the organization ?
In order to create a distinctive place in the market, a niche market has to be carefully chosen and a differential advantage must be created in their mind. Brand positioning is a medium through which an organization can portray its customers what it wants to achieve for them and what it wants to mean to them. Brand positioning forms customer’s views and opinions. Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customer’s mind. For instanceKotak Mahindra positions itself in the customer’s mind as one entity- “Kotak ”- which can provide customized and one-stop solution for all their financial services needs. It has an unaided top of mind recall. It intends to stay with the proposition of “Think Investments, Think Kotak”. The positioning you choose for your brand will be influenced by the competitive stance you want to adopt. Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. Brand
Positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and it’s similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors. For instance- Kingfisher stands for youth and excitement. It represents brand in full flight.
Defining Values and Principle
You already know how to do this – Your values and principle are part of your Org and Brand drivers!!! – Keller calls principle “Brand Mantra” Your Values, Principle, and position all are related – NOTE: Keller says that associations are values, but we have a stricter definition of associations from the IBM.
Brand Positioning Strategy
Brand positioning is an essential element of a winning branding strategy. Positioning simply refers to how your product or service is viewed in the minds of prospects and customers relative to other products or services available in your niche. The term positioning has two connotations: a vertical and a horizontal one. In terms of the vertical connotation, the term refers to the order in which your product ranks relative to the products of your competitors in the minds of your customers in your industry niche. (For example, which product comes to mind first when I say the word cola?) In terms of the horizontal connotation, the term refers to the qualities and attributes your product represents in the mind of your customers, again relative to your competitors. While you cannot directly control the ranking that your product or service enjoys in the minds of your customers, you can influence how you position the product in terms of qualities and attributes. That is, by properly positioning your product relative to your competitors in the minds of your customers, you will have much more control over how your brand is perceived in the marketplace. You will then effectively have a guide or map for how to execute your branding strategy.
Effective Brand Positioning
No matter how long you’ve been in business, chances are good that you are engaged in developing and promoting your brand positioning strategy. You’ll invest plenty of time in the process of evaluating your products or services in terms of market share, sales and customer base and comparing this information to that of your competitors. You’ll work to determine how your customers perceive your business and its major offerings and use the detailed findings to establish your business at the proper place within that all important target market. Your business position within the target market will determine your business’s degree of success. If you think you can maneuver into a more profitable place, do so by adjusting your products or services to more closely match the desired position (known as repositioning), or pursue strategies that change customer perception of the products and services offered by your competitors (de-positioning). Here are some strategic tips that can help you to be as effective as possible during your brand positioning process: 1. Understand brand positioning as fully as you can, especially in the way that it directly affects your business. Businesses, especially smaller ones, are very diverse in their needs and offerings, and it might take quite a bit of effort to even be sure that you are positioning yourself within the correct market. Look closely at the businesses sharing your pool of regular customers, their purchasing patterns and the roles that your business plays in their everyday lives. 2. Develop the most efficient method possible for gathering customer information. Remember that you’re trying to get inside their heads and back out again with an unvarnished look at how they see your business in terms of the benefit that it provides for them. You might consider questionnaires, phone surveys or online surveys and offer a small bonus to compensate customers for their valuable time. 3. Determine which of your products and/or services are the most popular or powerful, so that you can use them to build on or adjust your overall positioning strategy.
4. Rank all of your products and/or services in terms of positive customer review and in relation to those of your competitors.
5. List the most popular group of attributes that describe your business and products from the viewpoints of your customers and combine them to reach your ideal vector…the position in your target market from where your business can operate at the highest possible level of strength. 6. Product-based businesses can complete the positioning process more easily than service based businesses. After all, your customers can see, touch and watch demonstrations of your products to see how they work and visualize their benefits. Here are some hints for exploring how customers perceive your business and its services: • Create simulations, descriptions or case studies showing proven results. • Find out how customers view your services in terms of value, results and convenience. 7. Regardless of your business type, take the information about customer perception that you’ve gathered, determine your top benefits and attributes and use them to determine your current positioning and how far that point is from your ideal vector in the marketplace. 8. Decide whether you are satisfied with the current positioning of your business, or whether you need to change your strategy. Consider your target market and decide if your business is positioned in such a manner that it maximizes every opportunity for visibility in that market.
Finally, keep in mind that positioning can be either an active or passive process. If you choose not to fully engage in it – it will still take place. Don’t give up the valuable opportunity to monitor and influence the process and increase profitability
5 Factors of Brand Positioning
1. Brand Attributes What the brand delivers through features and benefits to consumers. 2. Consumer Expectations What consumers expect to receive from the brand. 3. Competitor attributes What the other brands in the market offer through features and benefits to consumers. 4. Price An easily quantifiable factor – Your prices vs. your competitors’ prices. 5. Consumer perceptions The perceived quality and value of your brand in consumer’s minds (i.e., does your brand offer the cheap solution, the good value for the money solution, the high-end, highprice tag solution, etc.?).
In order to Position a Brand…
You must decide – Who the Target Consumer is – Who your main competitors are – How the Brand is similar to your competitors – How the Brand is different from your competitors Where do you get this information?
Your BRAND INVENTORY!!
Brand Positioning A good brand positioning help guide marketing strategy by clarifying the brands essence but goals it help the consumer achieve and how it does so in a unique way. The result of the positioning is the successful creation of a customer focused value proposition, a cogent reason why the target market should buy the product. Birla Corporation Ltd. (Cement Division) introduce their new product, SAMRAT, with the value proposition of "Aajya kal majboot har pal" with PPC (Portland Pozolona Cement) instead of OPC (Ordinary Portland Cement) main features of SAMRAT is• • • • • • • • • •
Corrosion Resistant Work ability Sulphate resistant Low heat of hydration Durability Less use of water Seepage Resistant Low Cracks in RCC Fineness Mass Concrete
Competitive Frame of Reference A starting point in defining a competitive frame of reference for a brand positioning is to determine Category Membership- the products with which a brand competes and which function as close substitute. Points of Parity and Point of Difference Once the competitive frame of reference for positioning has been fixed by defining the customer target market and nature of competition, marketers can define the appropriate points-of-difference and point-of-parity associations.
POD's are attributes or benefits consumer strongly associates with a brand, positively evaluated, and believe that they could not find the same extant with a competitive brand. Strong, favorable and unique brand associations that make up POD.
Point-of-Parity POP's on the other hand, are associations that are not necessarily unique to the brand but may in fact be shared with other brands. These types of associations come in two basic forms:
1. Category 2. Competitive
Category POP's are associations consumers view as essential to be a legitimate and credible offering within a certain product or service category. Competitive POP's are associations designed to negate competitors' points-of-difference.
Choosing POP's and POD's POP are driven by the needs of category membership (to create categ POP's) and the necessity of negating competitors POD's (to create competitive POP's) These are three key consumer desirability criteria for POD's1. Relevance 2. Distinctiveness 3. Believability
There are three key deliverability criteria
1. Feasibility 2. Communicability 3. Sustainability
Competitive Study Among Various Cement Brands
ABOUT THE PROJECT :-
The project contains various questions. These questions are designed to analyses the various dealer behavior towards the Best Cement Brand in Bhilwara Project includes whole study of cement market & questionnaire. By help of this survey we know that which cement company best according to a various attributes of cement which company provides best sales promotion strategy, which company media is more effective in present market which company best in quality ,color ,supply T.C.S. etc. are know by this survey. Major Issue:The study basically draws attention towards the perceptional attributes of the various dealer and which factor influence to dealer. Major issue is to knowing cement market where we stand & what the reason behind lacking is & trying to come out with best result which helpful to company growth. About questionnaire: The questionnaire consists of 13 questions. All these questions are related to know the position of different brands prevailing in the market and dealers satisfaction level. This questionnaire is also helpful in knowing the market potential of Bhilwara. It is also helpful in knowing where our company stands in market.
Analysis of questionnaire below: 1. Brands available in Bhilwara district. 2. Market share of companies. 3. Brand leader in district. 4. Suggestions to increase the goodwill. 5. Effective media for advertising. 6. Brand image of Birla Cement. 7. Effectiveness of T.C.S. of Birla Cement. 8. Timely delivery of Birla Cement.
Statement of problem:• Objective of Research:The purpose of research is to discover answer to question through the application of scientific procedures. The main aim of research is to find out the truth which is hidden & which has not been discovered yet. However, each research study has its own specific purpose. There are several common objective of research as follow:
To study the brand positioning of “Birla Samrat” in the market. Packing and Color.
To compare the major cement brands in terms of Price, Preference, Quality,
To compare the advertisement strategy of the various cement brands.
Research Methodology Project Research Type Data Sources Descriptive Research Primary Data , Secondary Data
Research Approach Research Instrument Data Analysis Sampling Procedure Sample Size Geographical Coverage Duration of the Survey
Survey Method Questionnaire Logical analysis Random Sampling 50 Respondents Bhilwara 21 Days
ANALYSIS & INTERPRETATIO
Data Analysis by taking various attributes of CEMENT & their SCORE
Total of the score given by the Respondents -:
Attributes Preference Quality Packing Color Availability Price Tech. Service Sale Promotion Brand Image Advertisement Total Birla Samrat 266 252 235 213 264 205 195 145 274 120 2169 Ambuja 175 181 211 220 187 194 202 179 183 186 1918 Ultratec h 189 214 215 203 189 212 196 186 225 256 2085 Binani 140 133 143 139 135 130 137 153 105 144 1359 J.K. 184 192 190 189 188 195 186 198 175 201 1898 Shree 90 78 86 86 123 114 134 196 75 146 1128
Overall rank for the Attributes only -:
Attributes Preference Quality Packing Color Availability Price Tech. Service Sale Promotion Brand Image Advertisement Birla Samrat 1 1 3 2 1 2 3 6 1 6 Ambuja 4 4 2 1 4 4 1 4 3 3 Ultratec h 2 2 1 3 2 1 2 3 2 1 Binani 5 5 5 5 5 5 5 5 5 5 J.K. 3 3 4 4 3 3 4 1 4 2 Shree 6 6 6 6 6 6 6 2 6 4
Overall rank of the Companies -:
Company No. of Forms RANK BIRLA AMBUJA 17 6 st 1 3rd ULTRATECH 8 2nd
BINANI 6 5th
J.K 7 4th
SHREE 6 6th
No. of Forms of Various Companies
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree Total Forms
Forms 17 6 8 6 7 6 50
Preferences Collected from Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree
Pref. 266 175 189 140 184 90
Interpretation: The above survey clearly shows that most of the dealers GIVE 1 ST Preference to Birla Samrat, 2nd Ultratech, 3rd J.K Laxmi, 4th Ambuja, 5th Binani & lastly Shree Cement. 2. Quality Collected From Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree Quality 252 181 214 133 192 78
Interpretation: The above survey clearly shows that most of the dealers GIVE 1ST choice for Quality to Birla Smrat,2nd Ultratech,3rd J.K.Laxmi,4th Ambuja,5th Binani and Lastly Shree Cement.
3. Packing Quality Collected From Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree Packing Quality 235 211 215 143 190 86
Interpretation: The above survey clearly shows that most of the dealers GIVE 1 ST choice for Packing Quality to Birla Samrat,2nd Ultratech,3rd Ambuja,4th J.K. Laxmi,5th Binani and Lastly Shree Cement. 4. Colour Collected From Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree Color 213 220 203 139 189 86
Interpretation: The above survey clearly shows that most of the dealers GIVE 1 ST choice for Colour to Birla Samrat,2nd Ambuja,3rd Ultratech,4th J.K. Laxmi,5th Binani and Lastly Shree Cement.
5. Availability Collected From Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree Availability 264 187 189 135 188 123
Interpretation: The above survey clearly shows that most of the dealers GIVE 1 st choice for Availability to Birla Samrat, 2nd Ultratech, 3rd J.K. Laxmi, 4th Ambuja, 5th Binani and Lastly Shree Cement. 6. Price Collected From Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree Price 205 194 212 130 195 114
Interpretation: The above survey clearly shows that most of the dealers GIVE 1ST choice for Price to Birla Samrat, 2nd Ultratech, 3rd J.K. Laxmi, 4thAmbuja, 5th Binani and Lastly Shree Cement.
7. Technical Services Collected From Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree Technical Services 195 202 196 137 186 134
Interpretation: The above survey clearly shows that most of the dealers GIVE 1 ST choice for Technical Services to Birla Samrat,2nd Ambuja,3rd Ultratech ,4th J.K.Laxmi,5th Binani and Lastly Shree Cement. 8. Sales Promotion Collected From Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree Sales Promotion 145 179 186 153 198 196
Interpretation: The above survey clearly shows that most of the dealers GIVE 1 ST choice for Sales Promotion to Birla Samrat,2nd J.K. Laxmi,3rd Shree ,4th Ultratech,5th Ambuja and Lastly Binani Cement.
9. Brand Name Collected From Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree Brand Name 274 183 225 105 175 75
Interpretation: The above survey clearly shows that most of the dealers GIVE 1 ST choice for Brand Name to Birla Samrat,2nd Ultratech,3rd Ambuja ,4th J.K. Laxmi,5th Binani and Lastly Shree Cement. 10. Advertisement Collected From Various Cement Dealers
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree
Advert. 120 186 256 144 201 146
Interpretation: The above survey clearly shows that most of the dealers GIVE 1 ST choice for Advertisement to Ultratech,2nd J.K. Laxmi,3rd Ambuja ,4th Birla Samrat,5th Shree and Lastly Binani Cement.
Total Score in Percentage Company Wise
Company Birla Samrat Ambuja Ultratech Binani J.K.Laxmi Shree
Total 2169 1918 2085 1359 1898 1128
Rank 1 3 2 5 4 6
Interpretation: The above survey clearly shows that lastly by collecting all the scores from dealers, we come to know that overall position of Birla Samrat is On 1st , 2nd choice for go to Ultratech,3rd Ambuja,4th J.K. Laxmi ,5th Binani, and Lastly 6th is Shree Cement.
Weighted Average Method
Meaning & Definition A weighted average is an average that adjusts for the frequency of individual values. The weighted mean is similar to an arithmetic mean (the most common type of average), where instead of each of the data points contributing equally to the final average, some data points contribute more than others. The notion of weighted mean plays a role in descriptive statistics and also occurs in a more general form in several other areas of mathematics. If all the weights are equal, then the weighted mean is the same as the mean. While weighted means generally behave in a similar fashion to arithmetic means, they do have a few counter-intuitive properties, as captured for instance in Simpson's paradox. The term weighted average usually refers to a weighted arithmetic mean, but weighted versions of other means can also be calculated, such as the weighted geometric mean and the weighted harmonic mean.
Formula For Calculate Weighted Average
∑ WX ∑X
X = No. of Respondents which are given. W= Weight Rank
Application of the Weighted Average Method
Interpretation: The above method clearly shows that while comparing all the 10 attributes most of the respondents give 1st rank to Birla Samrat, 2nd rank to Option Rank 1 (6) Preference Quality Packing Color
Rank 2 (5) 175 (875) 181 (905) 211 (1055) 220 (1100) 187 (935) 194 (970) 202 (1010) 179 (895) 183 (915) 186 (930) 9590
Rank 3 (4) 189 (756) 214 (856) 215 (860) 203 (812) 189 (756) 212 (848) 196 (784) 186 (744) 225 (900) 256 (1024) 8340
Rank 4 (3) 140 (420) 133 (399) 143 (429) 139 (417) 135 (405) 130 (390) 137 (411) 153 (459) 105 (315) 144 (432) 4077
Rank 5 (2) 184 (368) 192 (384) 190 (380) 189 (378) 188 (376) 195 (390) 186 (372) 198 (396) 175 (350) 201 (402) 3796
Rank 6 (1) 90 (90) 78 (78) 86 (86) 86 (86) 123 (123) 114 (114) 134 (134) 196 (196) 75 (75) 146 (146) 1128
266 (1596) 252 (1512) 235 (1410) 213 (1278) 264 (1584) 205 (1230) 195 (1170) 145 (870) 274 (1644) 120 (720) 13014
4105 4134 4220 4071 4179 3942 3881 3560 4199 3654 39945
Price Technical Service Sale Promotion Brand Image Advertiseme nt Total
32.5% 1st Birla
10.2% 4th J.K
9.5% 5th Binani
2.8% 6th Shree
Ultra T. Ambuja
Ultratech, 3rd rank to Ambuja, 4th rank to J.K. Laxmi, 5th rank to Binani and Lastly 6th rank to Shree Cement.
Results after calculating the Weighted Average Method
Company Birla Samrat Ultratech Ambuja J.K.Laxmi Binani Shree
Total 32.5% 23.8% 20.8% 10.2% 9.5% 2.8%
Rank 1 3 2 5 4 6
CONCLUSIONS & FINDINGS
FINDINGS & CONCLUSIONS
It can be concluded from the study through model Birla Cement has a good brand image in the dealers mind in Bhilwara. It is not easily available on demand which places the company at the disadvantage which compared with lack vendors. This problem which can be improved by the strength and the distribution network of Birla Cement Works & Supply.
Dealers are of the opinion that among all the media television is the most powerful media followed by the hoarding and wall painting which every common man can see. So company should have to utilize then as much as possible.
I found company is poor in providing services such as timely small deliveries regular visits and gift items etc.
The company should focus more on sales promotion, advertisement and public relation.
Network spread of Birla Cement is very high in Bhilwara can be this as its strength.
If check out the satisfaction level of dealers with respect to quality of Birla Cement then we find that 85% dealers are told that it has excellent quality. So company can also see this as its strength compare to other brand in market.
Dealers opinion regarding price is Favoring Birla Samrat & It’s Get 1 st rank in all six-brand. Its price is reasonable according to quality it’s also satisfy the dealer.
It was found company has very good Brand Image in dealers mind. Dealers are satisfy with the price.
It was found that company is lacking in Supply.
As far as Brand-Name is concern in Bhilwara, Company is on 1st Rank despite of Very popular brand like Ambuja Cement, Ultratech Cement.
At the end, I would humbly suggest the company that if company has good quality, more advertisement, regular contact, marketing experts dealing with dealers in all rural and urban areas. Then company can improve their market shares, brand loyalty and promote their sales easily.
Company should develop its R & D department as per the market requirement.
Company should increase availability by which it can increase the sale and brand image.
For customer care Services Company should starts its concrete mobile van facilities.
As we all know infrastructure sector is growing rapidly so company improve supply to capture maximum market share.
Company should start its internal call centre for its valuable customers by which they can directly interact with company experts.
Company conducts society welfare programs in rural area. So that company creates good brand image among people.
By giving some gifts and best wishes cards to the customer that your buying decision is very good. Company can improve sales and brand loyalty.
Company should organize seminars, conferences, Manson meetings and dealers meet to promote sales quarterly.
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Web Based References
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http://www.birlacorporation.comhttp://www.bcw.com http://www.birlacementworks.com http://www.cma.com http://www.scribd.com http://www.amzon.com http://www.wikipedia.com http://www.answer.com
BRAND-POSITIONING OF BIRLA SAMRAT CHETAK CEMENT
Note :- According to your opinion please Rank 1 to 6
Name :Address:Telephone No:(M)
For how many years you are doing this Business.
Year …............................... 2. According to your Preference rank the cement companies.
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement ( ) ( ) ( ) (D) Binani Cement (E) J.K. Cement (F) Shree Cement ( )
( ) ( )
Rank the cement companies according to their Quality.
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement ( ) ( ) ( ) (D) Binani Cement (E) J.K. Cement (F) Shree Cement ( ( ( ) ) )
Which cement company has good Packing Quality?
(A) Birla Samrat Cement (B) Ambuja Cement ( ) ( ) (D) Binani Cement (E) J.K. Cement ( )
(C) Ultratech Cement
(F) Shree Cement
The Color of which cement companies customer like the most.
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement ( ) ( ( ) ) (D) Binani Cement (E) J.K. Cement (F) Shree Cement ( )
( ) ( )
Cement of which company is always available in the market.
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement ( ) ( ( ) ) (D) Binani Cement (E) J.K. Cement (F) Shree Cement ( ( ( ) ) )
According to Quality & Market Image the Price of which cement company do you agree with.
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement ( ) ( ) ( ) (D) Binani Cement (E) J.K. Cement (F) Shree Cement ( )
( ) ( )
Which cement company provides Technical Services regularly?
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement ( ) ( ( ) ) (D) Binani Cement (E) J.K. Cement (F) Shree Cement ( )
( ) ( )
The activities of which cement company companies attract you for increasing their Sales.
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement ( ) ( ( ) ) (D) Binani Cement (E) J.K. Cement (F) Shree Cement ( )
( ) ( )
Rank the cement companies on the basis of Brand Image.
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement
( ( (
) ) )
(D) Binani Cement (E) J.K. Cement (F) Shree Cement
The Advertisement of which cement companies attract you.
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement ( ( ( ) ) ) (D) Binani Cement (E) J.K. Cement (F) Shree Cement ( ) ( ( ) )
The cement of which company is quickly available.
(A) Birla Samrat Cement (B) Ambuja Cement (C) Ultratech Cement ( ( ( ) ) ) (D) Binani Cement (E) J.K. Cement (F) Shree Cement ( ( ( ) ) )
Cause of taking Dealership.
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