A STUDY ON COMPETITION ANALYSIS DONE FOR ZUARI CEMENTS LTD Yerraguntla, Kadapa (Dt) PROJECT REPORT Submitted in partial fulfillment
of the Requirement for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION (Sri Venkateshwara University) BY J. KIRAN KUMAR ( Reg.No. 380998018 ) Under the Esteemed Guidance of Mr. GURUNATHAM NAIDU, Assistant Professor Department of management studies SRI VIDYANIKETHAN INSTITUTE OF MANAGEMENT ( Affliated to Sri Venkateswara University ) Sree sainath nagar, A.Rangampet TIRUPATI-517102
I express my sincere thanks to Mr. PAVAN KUMAR, HR MANAGER. For his valuable suggestions and co-operation during the completion of project work. I express my sincere thanks to Mr. K.R.VENKATESH, MARKETING MANAGER for his valuable suggestions and co-operation during the completion of project work. I express my sincere thanks to Mr.CH.RAVI, MANAGER(P&A), for his valuable suggestions and co-operation during the completion of project work. I express my sincere thanks to Mr.R.RAJA SEKHAR REDDY, for his valuable suggestions and co-operation during the completion of project work. I express my sincere thanks to Dr.C.S.G.KRISHNAMACHARYULU DIRECTOR, SVIM, TIRUPATI, &, SVIM for encouragement, guidance and valuable suggestions.
I here by declare that the project report entitled
“A STUDY ON
COMPETITION ANALYSIS DONE FOR ZURARI CEMENTS LTD” is actual work done by me for the partial fulfillment for the award of Master Degree in Business Administration Affiliated to SVU,TIRUPATI.
Chapter 1 Introduction Industry profile Company profile Product profile Chapter 2 Deals with topic under study Need for the study Objectives Scope of the statement Limitations Chapter 3 Research methodology Chapter 4 Data analysis & interpretation Chapter 5 Findings Suggestions Conclusion Appendix Questionnaire Bibliography
Cement finds its use in various construction activities like building, dams, bridges, Colonies, railway sleepers, aerodromes etc., Different grades of cement are being use in different kinds of work depending on the strength and load - bearings requirements. However in all colonial housing construction activities, it is the 43 and 53 grades of cement that are in prevalent use in the society, at large. For various reasons, particularly population explosion and urge on the part of major chunk of the population to build their own houses, however small may be, within the budget constraints and also because of the housing loan schemes as offered by banks, both nationalized and private and other co-operative societies and other cooperation etc. The 43 & 53 grade cement market is fast expanding and managerial skills are supporting its growth. But the branded cements are in developing stage. Though there were only a few players in the cement market in sixties and seventies, of late the competition, with so many players more or less the same quality of cement, at least in the eyes of the individual and at more or less the same price. What makes a particular brand click and what makes a particular brand a flop is the subject of this project and the purpose of this survey meant elicit the perceptions of individual and their preferences which have a substantial bearing on the sales turn over of any brand cement. The present study is descriptive in character all the information gathered from primary sources and secondary sources. Because of time constrain, the entire population of audience could not be covered and hence a stratified random sampling was restored to in lien of census.
Though every care was taken to eliminate bias, both on the part of the interviewer and the respondents, an element of the bias, to some extent might have crept in the tendency on the part of humans to behave artificially particularly when observed can’t by
passed altogether. However, there was the enthusiasm on the part of the surveyor as a business Study and a lot of encouragement was forth coming of the executive circles spread across a spectrum of cement industries. Based on the survey, an analysis, comprising graphical and statistical tools was make and consequently the research has arrived at various findings and conclusions and based on these, a list of recommendations were made to the ZUARI CEMENT in view of the cut throat competition and the predicament of the dealers while selecting a brand of cement.
ABOUT THE INDUSTRY: Cement, and steel, is one of the basic materials for the technical development of the country. Consumption is universally recognized as an index of the economic development of country.
Cement industry in India is nearly eight decades old, the first cement plant having been commissioned in 1914 at Boradhpur(Gujarat).The cement industries growth has been slow and even mainly on account of the statutory price and distribution control for over forty years. Consequently, the targets of capacity and production fixed under successive five-year plans did not fully materialize. This trend was reversed in 1977 and climate of accelerated growth set in with the announcement of a formula for new investment based on 12% post return, the policy of partial decontrol announced in 1982 gave further boost to the cement industry. In the wake of new policy, ambitious and comprehensive modernization expansion programs have been under taken by the industry which include conversion measures; comprehensive adoption of latest technology, such as the use of vertical raw materials precalcinators and installations of pollution control devices, setting up of captive power units, modernization of quarry operations etc. India is the third largest producer of cement in the world after China and Japan. Though the Indian cement industry has come a longer way in terms of production yet the percapita consumption is 87 kgs in India is abysmally low when comparing to the world average of 200 kgs. The cement industry has passed through various stages. Tight price and distribution control in the 70’s with resultant sluggish growth, partial decontrol and massive investment in the late 80’s and severe market recession and abrupt slow down of pace of growth is the early 90’s and in the last two years. With firming up cement prices, the industry witnessed a recovery in 1994, which turned up a boom in 1994-1995. As such all the cement players have shown lower bottom lines and some even have shown huge losses as the capacity addition outpacing the growth in demand. The implication is that prices are likely to remain under pressure mainly northern and central part of the country where the capacities are very high. The Indian cement industry now in the midst of consolidation phase, has seen its fortunes flagging in the 4 last 18-24 months, A full in construction activity and dismal infrastructure development have led to poor off take and as result low capacity utilization
and falling prices have dogged the industry. However, recent developments. Suggest signs of modest revival. The last five years of 2002-2008 have shown a definite change for the better. PERFORMANCE OF CEMENT INDUSTRY: (Including mini and white cements, in million tones) Price and distribution controls: During Second World War, cement was declared essential under the defense of India rules and brought under price and distribution controls which resulted in sluggish growth. The installed capacity reached only to 27.9 MT by the year 1980-81 partial decontrolling in February 1982, was announced under this scheme levy cement quota was fixed for the units and the balanced could be sold in the opened market. This resulted in extensively modernization and expression drive, which can be seen from the increase in the installed capacity to 59 MT in 1988-89. In comparison with the figure of mere 27.9MT in 1980-81, an increase of almost 111percent. At present there are 60 companies in large sector having 1230 plants constituting a total installed capacity of 100.30 MT industry total turnover is around Rs.20,000 cores the total production was about 96.73 MT during the 2005-06 which is around 14.61% more than 2004-05. in 2006-07 the industry grew by 11 present in the current it is expected to grow by 13 percent over the year between 1982-83 to 2006-07 the cement consumption recorded a growth of 12-13 percent compounded annually against the GDP growth. The demand as improved and there is pick in the rural market.
During the current year the production have increased to 37.64 MT in the first 6 months-registering 5.02 percent growth over the corresponding period in the year. Export: Cement, a high volume product is extremely thinly traded commodity recently India did not export any cement at all. Therefore though the country is the third largest
producer of cement in the world yet its presence in the global market is negligible. Our exports have reached 8 MT only in 2006-07. Future: The consumption of cement is determined by factors influencing the level of housing and industrial construction irrigation projects, roads and lying of water supply and drainage pipe etc. These factors in turn are determined by the level and the growth of GDP and its sectional composition, capital formation, Development expenditure, growth in population level of urbanization, cost of obtaining credit and other factors. But the domestic market for cement is mainly from the housing and building activities. While the consumption for infra structure development has been low. Exactly reverse is the scenario of the developed nations where bulk of the cement is consumed for constructing roads, bridges, dams etc.
Considering a huge capacity addition particularly in the northern region out; acing the demand growth has created a surplus situation in the respective area, such capacity utilization is likely to comedown and price realization also might continue to be under pressure there by squeezing in the margins. But the southern region is likely to enjoy the present status for some more time. At the same time the inter region price differences is also likely to vanish more(or) less with
number of Gujarat based plants making in road to the southern marked by using sea route transport. To sum up, the industry is heading towards a situation of competitions and price wars. As such only cost efficient and strong brand image companies are expected to perform well. There will be more mergers and acquisitions taking part as seen in the last one year. Another major development in the industry will be the emergence of the new concepts ready-mix concrete (RMC). RMC will be an eco-friendly and high quality product with a lot of time saving. Another major development be large players will be to set up bulk terminals to minimize the distribution chain.
Zuari cement and Italcementi, the new binding strength Zuari cement is now fully owned by the Italcementi group, the fifth largest cement producer in the world and the biggest in the Mediterranean region. With net sales of five billion Euros in 2005 and a capacity of 70 million tones, Italcementi has a strong presence in over 19 countries. Now in India, with its inherent strengths, Italcementi is all Italcementi set to give the building industry, cement that’s truly international.
Italcementi believes in customer satisfaction through continuous quality improvement. This belief reflects in the group’s Quality Management system that compiles with ISO9001:2000 standards. This system covers all the processes, across all the group companies, to ensure that the product delivered to costumers is nothing short of world class. The export market is Zuari’s another key focus area. In fact, in the year 20052006, the company’s innovative marketing strategies have earned it’s the reputation of being the leading exporter of cement in South India. Recognizing Zuari’s noteworthy efforts in the exports front is the fact that, Sri Vishnu Cement Limited has won the prestigious CAPEXIL certificate of merit for the year 2005-06. While technology is just one of its strengths, there are many other factors that contribute equally to Zuari’s success. These include superior work force and decentralized quality assurance teams, which ensure every bag of cement that leaves the plant matches customers’ expectations. The Zuari Agro Limited (ZACL) was conceptualized on 12th May, 1967 with main object of manufacturing, distributing and marketing of fertilizer and other agriculture inputs. Zuari cements is a division of Zuari Industries Limited, a company prompted by the house of Birla and multination giant USX, having its registered office at jai Kissan office at jai kissan bhawan, Zuari Nagar, Goa.
Zuari cement is running under the flagship of Zuari Agro chemicals Limited. Zuari cement is strategically located 6Kms away from Yerraguntla town of Kamalapuram Taluk in Kadapa, Andhra Pradesh. Railway line has been laid connecting the Yerraguntla station. Zuari cement formerly known as Texmaco Cement, taken over by Zuari Agro Chemicals limited in year 1994. The plant was modernized and upgraded to increase the production capacity of 1500 TPD to 5000 TPD. In 1994 Zuari Agro Chemicals Limited took over Texmaco Cement on a lease basis and later in 1995 February 7th it acquired it
for amount of Rs.137.78 crores. Texmaco Limited commenced its production in 1985 with an installed capacity of 150 TPD. By the introduction of best technology, the capacity enhanced to 5500 TPD. By the Acquisition of Vishnu cements the annuals capacity of the plant has gone up to 3.5 million tones. Zuari Groups have identified cement as one of the core business to grow. It has therefore, been decided to constitute a separate corporate entity and hire off cement business to it. To accelerate the growth and achieve capacity addition quickly, it decided to from a joint Venture with Ital cement group was identified to be suitable partner for pursuing growth. Zuari and Italcementi group have agreed to form a 50:50 joint venture. Italcementi group is the largest producer and distributor of cement in Europe and one of the leaders in World Market place. The group operates in 13 countries including Belgium, Canada, France, Greece, Italy, Moracco, Spain, Turkey and U.S. with recent acquisitions, in Bulgaria, Kazakhastan and Thailand.
SOURCE OF RAWMATERIAL: The core raw materials required for manufacture of Zuari Cement plant are Limestone, Iron core bauxite and gypsum. The Lime stone is being excavated from the plant which in the leased area another vital called coal is supplied by Singareni Collieries Co Limited and Western Coal fields by surface transport to the plant. The required water for the process is being met from bore well located in the plant. The required water for the process is being met from bore well located in the plant site. Zuari Cement manufactures both 43 and 53 Grade and Super fine and offers superior
quality products monitoring at each stage of production process with help of computerized control system. KEY FEATURES OF ZUARI CEMENTS PROCESS TECHNOLOGY: Complete homogenization of limestone is achieved by stacking the limestone in stockpiles with the used of stackers and reclaiming it through reclaimers. ➢ The optimum ratio of raw mix is attained by the use of X-Ray Analyzer and Automatic Weigh Feeders, which are liked to the centralized Computer Control Room. ➢ Sorting it in Continuous Fluidized Silo attains reduced variability in kiln feed and complete homogenization of raw meal. This ensures that every grain of cement is of consistent quality. ➢ The totally computerized monitoring systems enable quality clinkerisation. It dictates the optimum retention time in the precalciner and the kiln Equipped with a six-stage double stream preheated cyclone system, the precalciner only adds to the quality. ➢ The modern closed circuit grinding units have a high efficiency separator that produces finer particles of cement hydrates, this yields cement matrix with a lower pore diameter. This in turn gives concrete of high density and low permeability.
ADVANTAGE OF ZUARI CEMENT: With a superior and wide range of cement catering to every conceivable building need, ZUARI CEMENT is today a formidable player in the cement market. Here are just a few reasons why Zuari Cement is the choice of millions of India. ➢ Very low free lime content and high proportion of silicates, providing silicate gels of high impermeability, makes ZUARI CEMENT extremely resistant to acids, alkalis, chlorine and sulphur. Lowest magnesia content ensures reduced tensile cracks.
➢ Owing to greater fineness ZUARI CEMENT, concrete obtained is dense and highly impermeable. Hence, it is free from segregation, honeycombing and sand rum. This prevents the passage of air and water (the two chief agents of corrosion) through the hardened concrete. The later requirements for zuari cement are less because of very low lime content. This leads to low heat of hydration and drying shrinkage, as a result, cracks don’t appear in the concrete. Captive power plant with diesel gensets takes care of 80% of the total power requirement state-of-the-art wagon tippler efficiently handles good quality coal, which is the homozinized with stacker and reclaimed for generating power. The plant it is also equipped with vertical coal mill.
Zuari Cement manufactures and distributes its own main product lines of cement .We aim to optimize production across all of our markets, providing a complete solution for customer's needs at the lowest possible cost, an approach we call strategic integration of activities. Cement is made from a mixture of 80 percent limestone and 20 percent clay. These are crushed and ground to provide the "raw meal”, a pale, flour-like powder. Heated to around 1450° C (2642° F) in rotating kilns, the “meal” undergoes complex chemical changes and is transformed into clinker. Finegrinding the clinker together with a small quantity of gypsum produces cement. Adding other constituents at this stage produces cements for specialized uses. Zuari Cements range of cement
Zuari Superfine Cement
Zuari 43 Grade Cement
Zuari Superfine P53 Cement
Quality Parameters Of Zuari Superfine Cement
Test Physical Properties FINENESS Setting Surface M2/Kg SOUNDNESS Lechatlier Method (mm) Auto clave (%) SETTING TIME Initial minutes Zuari Superfine 350.0 1.0 0.02 120-140 BISI 489 (Part-1):1991 300.0 Not more than 10 Not more than 0.8 Not less than 30
Final minutes COMMPRESSIVE STRENGTH MPa 3days 7days 28days CHEMICAL REQUIREMENTS Loss of ignition Insoluble residue Magnesium Oxide Lime saturation factor Sulphuric Anhydride Alkalis Chlorides Declared % of fly ash used
200-220 38.0 47.0 60.0
Not more than 600 Not less than 16.0 Not less than 22.0 Not less than 33.0 Not more than 5% X + 4.0(100-X)/100 X= Declared % of Fly ash % will not vary more than +- 3.0% Not more than 6% Not more than 3% Not more than 0.05
1 12 1.3 1.3 0.01 (X) 15%
Products - OPC 43 Grade
Quality Parameters Of Zuari 43 Grade Cement
Test Physical Properties FINENESS Setting Surface M2/Kg SOUNDNESS Lechatlier Method (mm) Auto clave (%) SETTING TIME Initial minutes Final minutes COMMPRESSIVE STRENGTH Map 3days Zuari 53 Grade 300.0 0.5-1.0 0.05-0.06 85-110 150-180 35.0 BIS 8112-1989 225.0 Not more than 10 Not more than 0.8 Not less than 30 Not more than 600 Not less than 23.0
7days 28days CHEMICAL REQUIREMENTS Loss of ignition Insoluble residue Magnesium Oxide Lime saturation factor Sulphuric Anhydride Alkalies Chlorides Declared % of fly ash used
Not less than 33.0 Not less than 43.0
0.8-1.0 0.6-0.8 1.0-1.5 0.85-0.90 1.0-1.2 0.12
Not more than 5% Not more than 2% Not more than 6% 0.66-1.02 3.00 Not more than 0.8
Products - OPC 53 Grade
Quality Parameters Of Zuari 53 Grade Cement
Test Physical Properties FINENESS Setting Surface M2/Kg SOUNDNESS Lechatlier Method(mm) Auto clave(%) SETTING TIME Initial minutes Final minutes COMMPRESSIVE STRENGTH MPa 3days 7days 28days CHEMICAL REQUIREMENTS Loss of ignition 330.0 0.5-1.0 0.05-0.06 85-110 150-180 39.0 52.0 63.0 0.8-1.0 0.6-0.8 225.0 Not more than 10 Not more than 0.8 Not less than 30 Not more than 600 Not less than 27.0 Not less than 37.0 Not less than 53.0 Not more than 4% Not more than 2% Zuari 43 Grade BIS 12269-1987 OPC-53
Insoluble residue Magnesium Oxide Lime saturation factor Sulphuric Anhydride Alkalies Chlorides Declared % of fly ash used 0.5-1.0 0.90-0.93 1.0-1.2 0.16 Not more than 6% 0.80-1.02 3.00 Not more than 0.8
NEED FOR THE STUDY
In the current scenario, there is heavy competition in the cement industry. Zuari cement is one of the major companies in the cement industry facing cut-throat competition. “Unless we tell them, we can’t sell them”, which means that people will not buy products until they become aware. “A STUDY ON COMPETITION ANALYSIS DONE FOR ZUARI CEMENTS” will help in studying the awareness of zuari cement in the market when comparing to other brands, which enables to analyze sales of the company in the view of competition. A careful and thorough study of the different factors enables the company to withstand to the changing situations of the environment and suggests suitable strategies to the company.
➢ To find the main competitors of zuari cement. ➢ To find the retailers Brand awareness on zuari cement when compare to other brands. ➢ To find the effect of advertisement by zuari cement on retailers. ➢ To compare the Brand awareness of zuari cement with other brands. ➢ To find the customers awareness on zuari cement with other brands. ➢ To find out most selling brand in the market.
SCOPE OF THE STUDY
The project work “A STUDY ON COMPETITION ANALYSIS DONE FOR ZUARI CEMENTS” with reference to zuari cements ltd in kadapa district, to find how the competition is going on cement industry in kadapa district. ♦ It is also intended to know the effect of advertisement on building awareness on zuari cements. ♦ This study also considers the comparisons of awareness of other cement brands with zuari cement. ♦ This study also considers finding the major competitors for the zuari cement in kadapa district.
➢ The study is conducted from retailers’ point of view. ➢ The study is confined to kadapa district region only. ➢ The biasing in the respondents view can be ignored. ➢ The accuracy of the answers depends upon the mode and interests of respondents. ➢ The study is limited to 8 weeks.
A research design is considered as the frame work or plan for a study. That guides as well as helps in collection and analysis of data. A sound research is the basis of success of any formal market research. The present study is descriptive type. Nature of data: The data collected for this study were mainly primary in nature. There are first hand information which is retailers opinions, expectations and awareness to wards the help line. Besides the secondary data were also collected from company brochures, journals and websites. Source of data: Primary data collected from the target retailers in Kadapa district. Secondary data were collected from company brochures, records and websites. Methods of data collection: The method adapted to elicit information from retailers in through a structured questionnaire that contains closed, open ended questions. The reasons for choosing the questionnaire method are primary due to qualitative nature of the study. (1) primary data: The primary data are that information which is collected afresh and for the first time, and thus happen to be original in character. Primary data can be collected in marketing research by three basic methods. Viz., survey, observations and experiments.
Survey is the most commonly used method of primary data collection in marketing research. This method is highly flexible. Survey research is the systematic gathering of data from respondents’ through questionnaires. A questionnaire will contain a list of questions to be answered in the survey.
(2) Secondary data:
The secondary data are those which have already been collected by some other agency and which have already been processed. In this study researcher used the secondary method for collecting details from the company records, magazines and other marketing journals. Survey: Wide range of information about retailers opinions, exceptions and awareness were gathered through survey from kadapa district with structured questionnaire. SAMMPLE DESIGN: Sample unit: The sample units were the retailer of Cement Company. Sample size: The sample size is 100, in kadapa district. Sample method: A simple random sampling was adapted in Kadapa district.
STATISTICAL TOOLS USED:
For the purpose of analysis, Chi-square test, weight average method and percentage method are used for calculations and the results were interpreted. This test was used to minimize the error of the data collected. Graphs were used to represent the data for the better and accurate interpretation of the results. Simple tools are used for analysis purpose. They are as follows: 1. percentages analysis 2. weighted Average method
Percentages refer to a special kind of ratio in making comparison between two or more data and to describe relationships between the data. Percentage can also be used to compare the relative terms, the distribution of two or more series of data.
Percentage = No. of Respondents X 100 Total Respondents
WEIGHTED AVERAGE ANALYSIS
There are cases where the relative importance of the different items is not the same. When, this is so, the researcher can use the weighted arithmetic mean. The ‘weight’ stands for the relative importance of the different items. The formula for computing weighted arithmetic mean is:
Xw =Σ WX / Σ W
Where -- Xw represents the weighted arithmetic mean --X represents the variable values, i.e.,X1,X2,……Xn. --W represents the weights attached to variable values, i.e. W1, W2………Wn, respectively. An important problem that arises while using weighted mean is regarding selection of weights. Weights may be either actual or arbitrary. i.e., estimated. Needless to say, if actual weights are available, nothing likes this. However, in the absence of weights, arbitrary or imaginary weights may be used. The use of arbitrary weights may be lead to some error, but it is better that no weights at all. In practice, it is found that if weights are logically assigned keeping the phenomenon in view, the error involved will be so small that it can be easily over looked.
DATA ANLYSIS & INTERPRETATION
TYPE OF BUSINESS RUNNING BY RESPONDENTS
Retailing Wholesaling Total
Number of respondents 52 48 100
Percentage 52 48 100
INFERENCE: From the above table it can be inferred that 54% of respondents are
dealing through retailing and 48% are dealing through wholesaling.
EXPERIENCE OF THE RESPONDENTS IN THE FIELD OF DEALERSHIP
years Less than 1 year 1 – 5 years 5 –10 years More than 10 years
Number of respondents 11 42 31 16
Percentage 11 51 22 16
INFERENCE: From the above table it can be inferred that 11% of respondents are having below 1 year of experience, 42% of respondents are having 1-5 Years of experience, 31% are having 5-10 years of experience and 16% are having more than 10 years of experience.
TABLE-3 TYPE OF SHOP WHERE PRODUCT IS SELLING Type of shop Exclusive cement shop Cement /hardware All building materials Figure-3 No of respondents 72 24 4 Percentage 72 24 4
INFERENCE: From the above table it is clear that 72% of respondents are dealing the product through exclusive cement shops, 24% are dealing through cement /hardware shops and 4% through all building material shops.
TABLE-4 PRESENTLY DEALING BRANDS Brands Ultratech No of respondents 24 Percentage 16.66
Zuari Penna Coromandel ACC Others Figure-4
48 35 18 5 14
33.33 24.3 12.5 3.47 9.72
INFERENCE: From the above facts, it can be inferred that 33.3% of the respondents are dealing zuari followed by 24.3% dealing penna, 16.66% dealing ultratech, 12.5% dealing coromandel, 3.47% dealing ACC, 9.72% dealing other brands. TABLE-5 DEALERS WHO HAVE DEALT WITH ZUARI CEMENT Response YES NO FIGURE-5 No of respondents 42 58 Percentage 42 58
INFERENCE: From the above facts, it can be inferred that 58% of the dealers have not yet dealt with zuari cement and 42% have dealt with zuari cement at least once.
TABLE-6 FACTORS INFLUENCING TO BE A DEALER (for all brands) Factors Sales volume Quality Customer choice Good service price No of respondents 8 64 10 3 15 Percentage 8 64 10 3 15
INFERENCE: From the table , it can inferred that 64% of respondents preferred the product due to quality, 15% of respondents preferred due to price, 10% due to customer choice, 8% due to sales volume,3% due to good service.
TABLE – 7 FACTORS INFLUENCING TO BE A DEALER (for zuari) Factors Sales volume No of respondents 5 Percentage 10.4
Product quality Customer choice Good service price
34 6 3 0
70.8 12.5 6.8 0
INFERENCE: From the above table it is clear that 70.8% of respondents preferred zuari cement due to quality, 12.5% due to customer service, 10.4% due to sales volume, 6.8% due to good service and none for price.
TABLE – 8 MAJOR CUSTOMERS FROM THE DEALERS Options Household customers Builders/contractors FIGURE – 8 No of respondents 72 28 Percentage 72 28
From the above facts, it is clear that 72% of customers are household customers and remaining are builders / contractors.
TABLE – 9 MOST PREFERED GRADE BY CONSUMERS Options Opc 53 grade Opc 43 grade Ppc super fine Others FIGURE – 9 No of respondents 65 0 15 20 Percentage 65 0 15 20
INFERENCE: From the above table, it can be inferred that 65% of respondents revealed that customers prefer opc 53 grade and 15% revealed that customers prefer for ppc superfine and 20% revealed that customers prefer for others.
TABLE – 10
TABLE SHOWING PRICING OF ZUARI CEMENT Level High Moderate Low Not known No of respondents 64 8 0 28 Percentage 64 8 0 28
FIGURE – 10
INFERENCE: From the above table, it can be inferred that 64% of the respondents opines that pricing of zuari cement is high, 8% opines that it is moderate, none are opines that it is low, 28% are not aware of pricing of zuari cement.
TABLE –11 TABLE SHOWING PACKING OF ZUARI CEMENT Level Excellent Very good Good Fair Poor Not known FIGURE – 11 No of respondents 12 14 25 14 7 28 Percentage 12 14 25 14 7 28
INFERENCE: From the above table, it can be inferred that, 12% of respondents opines that packing of zuari cement is excellent, 14% said it is very good, 25% said it is good, 14% said it is fair, 7% said it is poor and 28% are not aware of packing zuari cement.
TABLE – 12(a) EFFECT OF THE INCREASING ADVERTISEMENT ON IMPROVING SALES Response Yes No No of respondents 74 26 Percentage 74 26
INFERENCE: From the above table, it is clear that 74% of respondents are think that advertisements play a major role in improving sales and 26% are think that it is not plays a major role.
THEN WHAT MEDIA PREFERENCE FOR CEMENT PRODUCTS
Media Print Media Electronic Media Outdoor Media FIGURE – 12(b)
No of respondents 6 29 65
percentage 6 29 65
INFERENCE: From the above facts, it can be inferred that 65% of dealers said that outdoor media is good, 29% said that electronic media is good, 6% said that print media is good for cement advertisements.
WHAT DOES THE CUSTOMERS LOOKS FOR IN ANY BRAND FOR CONSUMPTION
Particulars High quality Low price Brand image All the above FIGURE-13
No of respondents 18 29 10 43
Percentage 18 29 10 43
INFERENCE: From the above table it can be inferred that, for consumption the product, 18% of customers looks for in the brand for high quality, 29% looks for low price, 10% for brand image,43% prefer for all the above.
TABLE-14 AWARENESS OF SALES PROMOTIONAL TECHNIQUES FOLLOWED BY THE COMPANY Awareness Yes No No of respondents 34 66 Percentage 34 66
INFERENCE: From the table it can be inferred that, 34% of the respondents are aware of sales promotion techniques followed by the company and 64% of the respondents are not aware.
BEST BRAND PREFERRED BY THE DEALERS Brands Ultratech Zuari Penna Coromandel ACC Others FIGURE-15 No of respondents 20 33 24 12 4 7 Percentage 20 33 24 12 4 7
INFERENCE: From the table it can be inferred that, 33% of respondents prefer zuari as a best brand followed by, penna with 24%, ultratech with 21%, coromandel with 12%, ACC with 4%, others with 7% .
TABLE-16 BEST BRAND PREFERED BY THE CUSTOMERS Brands Ultratech Zuari Penna Coromandel ACC Others FIGURE-16 No of respondents 15 35 27 10 4 9 percentage 15 35 27 10 4 9
From the above facts, it can be inferred that 15% of respondents said that customers prefer for ultratech, 35% of respondents said that zuari, 27% said that penna, 10% said that coromandel, 4% said that ACC, 9% said that others. WEIGHTED AVERAGE METHOD-1 TABLE-17 RANKING OF FACTORS THAT INFLUENCE THE DEALERS TO PURCHASE ZUARI CEMENT
Factors R1(X1) W=6 R2(X2) W=5 R3(X3) W=4 R4(X4) W=3 R5(X5) W=2 R6(X6) W=1
Quality 56 Sales Volume Custome r Choice Price 2 Packing 1 Food service 8 21 9 21 20 21 2 4 10 35 48 8 10 12 38 30 36 6 25 8 20 9 10 20 7 28 2 29 30 10 2 1 1
Formula Weight = Σ Wx / Σ W Quality 1) = 535 / 21 = 25.47 Sales Volume = (36 x 6) + (25 x 5) + (20 x 4) + (10 x 3) + (7 x 2) + (2x 1) = 467 / 21 = 22.23 = (56 x 6) + (30 x 5) + (10 x 4) + (2 x 3) + (1 x 2) + (1 x
Customer choice = (6 x 6) + (8 x 5) + (9 x 4) + (20 x 3) + (28 x 2) + (29 x 1) = 257/21 =12.23 price = (2 x 6) + (8 x 5) + (10 x 4) + (12 x 3) + (38 x 2) + (30 x 1) = 234/21 = 11.14 packaging = (1 x 6) + (2 x 5) + (4 x 4) + (10 x 3) + (35 x 2) + (48 x 1) = 180/21 = 8.57 good service = (8 x 6) + (21 x 5) + (9 x 4) + (21 x 3) + (20 x 2) + (21 x 1) = 313/21 = 14.90
Factors Quality Sales volume Customer service Price Packaging Good service
Weights 25.47 22.23 12.23 11.14 8.57 14.90
Percentage 27 23.5 12.9 11.78 9.06 15.76
Overall Ranking 1 2 4 5 6 3
WEIGHTED AVERAGE METHOD-2 TABLE-18 RANKS OF THE MOST SELLING BRAND
R1(X1) W=9 44
R2(X2) W=8 27
R3(X3) W=7 15
R4(X4) W=6 8
R5(X5) W=5 3
R6(X6) W=4 1
R7(X7) W=3 1
R8(X8) W=2 1
R9(X9) W=1 --
Ultratech 18 Penna 25 Coromandel 9 ACC 4 Nagarjuna -Priya 2 Panyam 1 DC diamonds 1 --1 -2 2 44 50 --1 2 2 9 40 45 -2 -8 4 5 30 39 -1 1 1 -1 37 59 5 -5 4 5 19 36 25 8 4 7 6 7 16 24 19 20 16 10 6 6 5 5 7 15 11 10 5 4 9 15 13
Formula weights = Σ Wx / Σ W
= (44x9)+(27x8)+(15x7)+(8x6)+(3x5)+(1x4)+(1x3)+(1x2)+(0x1) = 789 / 45 = 17.53
= (18x9)+(15x8)+(11x7)+(10x6)+(5x5)+(4x4)+(9x3)+(15x2)+(13x1) = 530 / 45
=11.77 Penna = (25x9)+(20x8)+(16x7)+(10x6)+(6x5)+(6x4)+(5x3)+(5x2)+(7x1) = 623 / 45 =13.8 coramandel = (9x9)+(8x8)+(4x7)+(7x6)+(6x5)+(7x4)+(16x3)+(24x2)+(19x1) = 388 / 45 = 8.62 ACC = (4x9)+(5x8)+(0x7)+(5x6)+(4x5)+(5x4)+(19x3)+(36x2)+(25x1) = 300 / 45 = 6.66 Nagarjuna = (0x9)+(0x8)+(1x7)+(1x6)+(1x5)+(0x4)+(1x3)+(37x2)+(59x1) = 154 / 45 = 3.42 priya = (2x9)+(0x8)+(2x7)+(0x6)+(8x5)+(4x4)+(5x3)+(30x2)+(39x1) = 202 / 45 = 4.48 panyam = (1x9)+(0x8)+(0x7)+(1x6)+(2x5)+(2x4)+(9x3)+(40x2)+(45x1) = 185 / 45 = 4.11 Dc.diamonds = (1x9)+(0x8)+(0x7)+(1x6)+(0x5)+(2x4)+(2x3)+(44x2)+(50x1) = 167 / 45 = 3.71
Brands Zuari Ultratech Penna Coromandel ACC Nagarjuna Priya Panyam DC diamonds
Weight 17.53 11.77 13.8 8.62 6.66 3.42 4.48 3.71 4.11
Percentage 23.56 15.8 18.5 11.58 8.9 4.5 6.02 4.98 5.52
Overall Ranking 1 3 2 4 5 9 6 8 7
FINDINGS Based on the information collected, it is clear that 52% are dealings through retailing and 48% dealing through wholesaling.
16% of respondents have more than 10 years experience in their field and they were in a better position to rate the attributes and satisfaction level regarding varies brands of cements, 42% have 1-5 years of experience, 31% have 5-10 years of experience and 11% have less than 1 year experience. It is clear from the data collection that 33.33% of the respondents prefer zuari cement. Based on information collected, it is clear that 64% of the respondents to prefer product quality. Through the analysis I found that 70% of the respondents are said to quality of zuari cement is good when comparing to other brands. Through this based on respondents respondence,65% of customers prefer for opc 53 grade and 15% prefer to ppc superfine and 20% prefer for other cements. Media preference for cement products is mainly out door media which is 65%followed by outdoor media with 29% prefer to electronic media & 6%prefer to print media. Based on information collected, it is clear that most of the respondents said that the price is high for all cement brands. Regarding the packing of zuari cement, majority of respondents opines that it is good and it is of 25%, followed by excellent with 12%, v.good with 14%, fair with 14%, poor with 7%. 34% of dealers prefer to zuari, followed by penna with 24%, ultratech with 17%, and coromandel with 13%, others with 12%.
Through weighted average method, it can be find out that quality is the main factor that influences dealers to purchase zuari cement followed by sales volume, good service, customer choice, price, packing. In the ranking, among the most selling brands, zuari is the top selling brand and it occupies first place followed by penna, ultratech, coromandel, ACC and others.
SUGGESTIONS Company should try to make more dealers.i.e. the distribution network needs to be strengthened and dealers should be encouraged by the way of incentive schemes to rush the product.
The management should take care of smaller dealers along with bigger dealers. The management should maintain consistent rating policy for all the dealers. Zuari cements may concentrate extensively on advertising as to improve the awareness of the product. According to my perception through maximum people said the price of zuri cements is high, the management has to concentrate on the pricing strategies for the increase of sales of zuari cements. Zuari needs to maintain more flexibility in packing, so that the product will be made more attractive to all the consumers, contractors and masons. For creating high brand image, a clear promotional strategy and a planned advertising campaign is necessary. The company has to conduct different types of meetings in order to improve the communication with the contractors, dealers, masons and engineers. The company can undertake promotional activities specifically directed to the builders and dealers to boost sales. The company may go with a competitive scheme with price allowance for bulk package, transport, warehousing facilities and gift schemes etc.,
In the recent years we will find a growing consumers demand for cement due to the infrastructure development and housing. Because of intensive demand fort cement more than 15 players came into the market with their marketing strategies. The dealers are major sellers of the cement and whole perception will really makes the difference. The dealers are becoming very conscious about the
quality, credit, price, strength and durability of cement. They need better cement at competitive price.
In zuari cement, advertisements have to play a vital role to attract more no. of consumers to purchase their products and also play an important role to improve their sales.
The zuari cement is slowly setting the insights of builders because of its quality and affordability. There was a good satisfaction among the dealers of zuari despite its market reach is limited.
On the whole, the quality aspects of zuari cement are superior in the views of dealers and it is positional as “quality-affordable cement” in the market.
A STUDY ON COMPETITION ANALYSIS DONE FOR ZUARI CEMENTS NAME ADDRESS PHONE NO. 1.Type of business (a) Retailing (b) Wholesaling [ ] 2. How long have you been in this field? : : : [ ]
a)Less than 1 year c)5-10 years 3. What type of shop is this ? a)Exclusive cement shop c)All building materials
b)1-5 years d)above 10 years [ b)cement/hardware [ c)coromandel f)Others [ ] c) Customer choice [ c) Customer choice [ ] ] ] ]
4. At present Which brands of cements are you dealing ? a)Ultra tech d) penna a) Sales volume d) Good service a) Sales volume d) Good service a) Household customers b) Contractors/builders c) Others b) Zuari e)ACC b) Quality e) Others b) Quality e) Others
5. If zuari , which factors influence you to be a dealer of Zuari cement?
6. If others, which factors influence you to be a dealer?
7. Who are the major buyers from you?
8. Which cement grade would most preferable by the customers? a)Opc 53 grade c) Ppc super fine b)Opc 43 grade d)others :
9. Why did you prefer the brands you are dealing with? Rank accordingly. Brand Ultratech Zuari Penna Coromandel ACC others SalesVolume Quality Customer choice Good Service others
10. (i) Do you think that advertisements play a major role in improving Sales of cement? a)yes a)Electronic :i)T.V b)Print c)Outdoor :i)Hoarding ( ) ( ) b)No (ii)Which media do you prefer for cement advertisement? ii)Radio ( ) iii )Internet iii)others :i)Newspaper( ) ii)Magazine ( ) ii)Bill boards( ) Moderate Low
[ ( ) ( )
iii)Wall painting ( )
11. In case of price, how do you feel about the pricing of the product ? Brand Ultratech Zuari Penna Coromande l ACC others High
12. In case of quality, Rank according to your preference. Brand Setting time Strength Fineness Colour Overall Rank
Ultratech Zuari Penna Coromandel ACC others 13. In case of packing, how do you feel about the packing of the product ? Brand Excellent V.Good Good Fair Poor Ultratech Zuari Penna Coromandel ACC others 14. Are you aware of sales (trade & customer) promotional techniques? given by the company ? (a) (b) 15. Based on the above factors , which is the most preferred brand by the customers ?
Brand Ultratech Zuari Penna Coromandel ACC others
16. According to you , which is the best brand taking into consideration all the specified in the above questions ? Brand: (1) (2) (3)
Thank you very much sir for spending your valuable time.
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PHILIP KOTLER 11th Edition PHI publications
(i) Gilbert A . churchill,Jr. & Dawn lacobucci 9th Edition THOMSON&SOUTH-WESTERN crp (ii) Dr.D.D.Sahrma 2nd Edition,published year, 2000 Sultan Publishing House.
C.R. Kothari 2nd Edition, published year 2002 Wishwa prakaasham publications
S.P.Gupta 11th Edition S.C & Co. publication, 1997.