Professional Documents
Culture Documents
Project report
On
For
SUBMITTED TO
SUBMITTED BY
MBA(2018-2020)
ACKNOWLEDGEMENT
This project report could not have been completed without guidance of our Prof. Debasish Dash.
I extended to my sincere gratitude to Mr. G.D Mishra (C.E.O Of Asha Infra Projects And Services
Private Limited) in Bhubaneswar Warehouse. For his constant and able of guidance has been
instrumental in large measure on the success of project. He suggest this study and it has been great
opportunity to learn about a subject of which had no previous knowledge, for this I am very grateful to
him.
Last but not the least I would like to thanks my faculties & colleagues who guided me for project
completion.
OBJECTIVE
The objective was carried out for two mail objective. The first objective was carried out the market
survey for knowing prevailing market condition of Lafarge Cement in Bhubaneswar market. The second
objective of project was to study the sales promotion activities undertaken by Lafarge and other
competitors.
RESEARCH METHODOLOGY
The descriptive nature of the research necessitated collection of primary data from retailers of
cement through market survey. Both the methods, personal interview technique and telephonic
interview technique were used with the measure emphasis on personal interview method. Interviews
were conducted through the “structure questionnaire”.
SAMPLING TECHNIQUE
Random Sampling technique was used to select the retailers. Out of nearly 400 retailers of cement,
randomly 50% of population was considered as a sample size. 189 retailers were visited to collect the
information about the cement market.
The project was carried out for a period of 60 days. After collecting the detailed information from the
market, analysis of the data was made. The market research has revelled many facts and figures about
cement market.
Introduction
Objectives
Scope and Limitations
INTRODUCTION TO THE TITLE
Today it is fashionable to talk about the new economy. We hear that the business are operating in
globalize economy; things are moving at a nanosecond pace our market are characterized by hyper
competition and disruptive technologies are challenging every business and so business must adopt to
empower consumer
To become successful in such a competitive environment the business organizations have to be customer
oriented. Customers need and want must be taken care of.” Built customer and not only products”.
Customer must be delighted. This information about the market could be collected by the way of proper
market survey. From the market survey we get the feed about the good or services of the organization
.For this purpose the said project work is undertaken.
The project was carried out for knowing prevailing market condition of Lafarge Cement in
Bhubaneswar Region .The second objective of the project was to study the sales promotion activities
undertaken by Lafarge and its other competitors.
The project was carried out in the marker of Bhubaneswar of Odisha state. There are six market players
in cement industry. They are Konark, Century, Ultratech, ACC, Ambuja, apart from these there are few
local brands selling in the market.
The information about the market was gathered by visiting retailers in the market. Interview of retailers
was taken depending upon there accessibility.
While doing the project attempt was made to collect maximum information about the marker. To get
actual and correct information ,it was not told retailers that the survey is conducted by Ultratech Cement
for the obvious reasons .Number of retailers were visited to get the actual picture of the market. Again,
the retailers of each grade (according to the performance) were visited, to get each and every detail
about the market.
OBJECTIVE OF THE PROJECT
To carry out market survey for knowing prevailing market condition of Lafarge
India Pvt. Ltd. In Bhubaneswar (Odisha)
To study the sales and promotion activities undertaken by Lafarge cement and other
player in the market.
To attain these two objectives various other sub objective are needed to be achieved. These
are listed below.
To analyze the transportation facilities for Lafarge and other cement companies.
Thus it attempt to find ways to increase market share, to increase customer satisfaction and
thus increase the business prospects.
SCOPE OF THE STUDY
The study has been done for the Cement so more or less it helps in understanding
the consumer preference towards the cement market.
The study can help in analyzing certain weak point, improving on which a company
can overcome the low sales of its cement but only in Bhubaneswar region
COMPANY PROFILE
NUVOCO VISTAS
Sustained growth that creates value for our shareholders and doubles our turnover
every 4 years.
Thebeginning (1833to1914):-
In 1833, Léon Pavin, launched an industrial lime production operation, having taken over a
business acquired by his family in 1749 with the purchase of the Lafarge domain in south-eastern
France, an area known for generations for the quality of its limestone deposits. The company
signed its first major international contract in 1864, delivering 110,000 tonnes of lime for the
construction of the Suez Canal. Lafarge opened its first central research laboratory in 1887, the
Le Teil Laboratory, with which highly reputed scientists collaborated. In 1908, the Central
Laboratory filed a patent for Cement Fondue calcium aluminates, obtained by fusing a mixture
of bauxite and limestone. This new high alumina binder gradually established a reputation as a
rapid-hardening cement resistant to both high temperatures and corrosion. In the years until
1914, favoring a strategy of horizontal integration, the company – now the "Société des Chauxet
des Ciments de Lafarge du Teil" – set about acquiring lime and cement companies in all parts of
France.
The above said company Lafarge india limited has been take over by NUVOCO VISTAS
COROPRATION LIMITED of his INDIA business on 2016.
International development began with the opening up of North African markets. Lafarge, which
had operated in Algeria ever since 1866, now became the leading Portland cement producer in
Algeria, and set up operations in Morocco and Tunisia. Lafarge continued to acquire companies
in mainland France. With a quarter of the domestic market, the company became established as
France's number one cement producer. In 1926, Lafarge opened its first aluminous cement®
plant in the United Kingdom. It diversified into gypsum in 1931, and developed Superblanc,
new cement, in 1932. By 1939, Lafarge was the leading cement producer in France. After 1945,
Lafarge gained a new lease of life with the arrival of Alfred François at the helm, the Marshall
Plan and the post-war rebuilding boom: production doubled over the next ten years.
1955 - 1981 Mergers, acquisitions, developments:-
In 1956, Lafarge constructed its first North American cement plant, creating Lafarge Cement of
North America with the start-up of the Richmond plant in Canada. In 1959, Lafarge began
operations in Brazil. By the end of the 1960s, Lafarge Canada had become the third largest
cement producer in the country, with annual production capacity of 900,000 tonnes. In 1980, a
merger agreement was signed between Lafarge and Coppée, the newly formed group becoming
Lafarge Coppée. Acquisitions in the United States and Canada established Lafarge Coppée as the
number one cement producer in North America. The size of the Group rose from 12,000 to
17,000 employees.
During the 1980s, with the construction of a single market representing more than 300 million
inhabitants, the Group chose to expand its business in Europe. Lafarge first turned to Germany,
raising its stake in Portland Zementwerk at Wössingen to 83%. Through the purchase of the
Swiss company, Cementia in 1989, the Group acquired interests in Asland (Spain), Aslan
(Turkey) and Perlmooser (Austria). Then followed the investments in Eastern Europe: East
Germany, the Czech
Republic (1991), then Poland, Romania, Russia and Ukraine. The agreement with the East
German cement producer, Karsdorf, came even before German reunification had been mooted.
1994 saw Lafarge take a foothold in China. Today, all four of the Group's Divisions operate
there, and there have been developments throughout Asia (1998: Indonesia and the Philippines;
1999: India and South Korea). The Group's expansion in Poland began in 1995 with the
acquisition of a 75% stake in Kujawy. Within six years (2001), 4 entities representing all four
Divisions were active in the country.Lafarge acquired Redland in 1997, positioning itself more
strongly in Aggregates and Concrete and gaining entry onto the Roofing market. Thanks to the
acquisition of Warren in Canada in 2000, Lafarge became one of the leading aggregates
producers in North America. Lafarge focused on its main fourDivisions, and divested its
Specialty Products businesses, which became Materis. Lafarge was the first industrial group to
conclude a partnership agreement with WWF (World Wildlife Fund for Nature). In 2001,
following the acquisition of Blue Circle, Lafarge became the world's leading cement producer.
Numerous acquisitions and joint ventures in all four Divisions, and on every continent,
particularly Asia, have continued to consolidate its world leadership position. In July, 2001,
Lafarge was introduced onto the New York Stock Exchange (NYSE).
In 2002, the Gypsum Division acquired the plasterboard businesses of Gyproc (a subsidiary of
British PlasterBoard) in Germany, Poland and Central Europe.
The Cement Division inaugurated in China the new Dujiangyan cement plant, the first greenfield
cement plant for the Group in China, and acquires a 70% interest in the Chongqing cement plant.
The Cement Division acquired two new cement plants in Slovenia and in Serbia. In 2003, the
Cement Division enters Australia and had constructed a new cement plant in Mexico, near
Mexico City.
CEO
PRESIDENT
VP VP VP VP VP VP
(Mfg.) (HR) MARKETING (CONTROL) (FINANCE) (B.D)
RSM
ASM
SUMMER
TRAINEE
PRODUCTS DETAIL
1. Lafarge Concreto
• High ultimate strength due to the addition of highly reactive silica containing more
than 95% glass content.
• Enhanced durability due to optimum pore refinement and consequently denser concrete
matrix– this improves the impermeability of the concrete.
• Exceptionally high resistance to chemical attack (sulphates and acids).
• Protects reinforcement from corrosion.
• Reduction of structural cracks due to lower heat of hydration than ordinary cements.
• Low heat of hydration and higher resistance against alkali-reactive aggregates.
Lafarge Cement
Lafarge cement has very high soundness as reflected through the extremely low values of
expansion through the Le-Chatelier test and Autoclave tests. Its C3A content is low, thus making
it more resistant to sulphates compared to other cements.
Its other chemical properties contribute to a very low co-efficient of permeability of the concrete
prepared, thus making it an ideal choice for construction of dams, foundations, tunnels, or other
sub-soil constructions and structures that shall be in contact with water.
Being a blended cement with a highly reactive slag obtained from the best source in the country
so far, it improves the density of the concrete mix thus increasing the durability factor.
Lafarge worldwide places a very high emphasis on protection of the environment. In all its
Indian plants, bag filters and electrostatic precipitators are used to reduce pollution and ensure
environment friendly plant operations. Lafarge India has adopted stringent quality control
measures to ensure the highest quality cement .The plants have the benefit of the strong technical
and R&D set-up of Lafarge group called DPC which is supported by CTI & CTEO - at Lyon in
France, CTS - at Montreal in Canada, ATC - at Kuala Lumpur in Malaysia and CTEC - in
Austria. Lafarge Group employs more than 500 scientists and spends more than 100 million
euros annually in developing leading technologies in the area of building materials and
construction technology. The regular exchange of knowledge and technological improvements
between the technical centreand the Indian operations has enabled Lafarge India to improve
operational efficiencies on a continuous basis.
THEORETICAL BACKGROUND
PROMOTION
“Promotion includes all the activities the company undertakes to communicate and promote its
products to the target market.”
In modern marketing the question is not whether to promote but rather what to say, to whom and
how often. A good product, an attractive price and an accessible distribution must be supported
by an effective promotion to satisfy customer needs. Promotion activity include advertising, sales
promotion, public relation, and direct marketing. Promotion can also be viewed as the
management of the customer buying process of pre-purchase, purchase and post purchase.
FUNCTION OF PROMOTION:-
Promotion is a tool to influence target customer and to face competition. It performs four
functions:-
Information
Persuasion
Reminding
Reinforcing
PROMOTION MIX
The promotion mix is the combination of advertising, public relations, sales promotion, personal
selling and direct marketing tools that help achieve marketing objective
2. Mail
3. Catalogue marketing
4. Telephone
5. E-mail
5. SALES PROMOTIONS: - Sales promotion has been increasing in popularity as a tool.
Marketers are using it aggressively. Sales promotion refers to short
term incentives to stimulate demand. It is used to create a stronger and
quicker purchase response. It can be directed at consumers, middleman
and sales personnel. It supplements advertising and facilitates personal
selling.
1. It is short term
2. It provides incentives
Sales promotion methods differ according to the target audience. They can be directed at
consumer promotion, trade promotion and sales force promotion.
Coupons
Contests
Display/Demonstration
Free goods
Allowance
Prices-off
Sales contest
Gift item
Credit facilities
Trade show
(C) Sales contests
Gift items
Promotional kits
The research methodology is the way systematically solve the systematically solve the research
problems. The main objective of the product was to know the market condition of Lafarge
Cemejnt and to study the sales promotion activities undertaken by various cement companies.
For this, right at the beginning the research plan was prepared. This includes all the detail of how
to go about research work of Lafarge Cement.
RESEARCH PLAN
2. What the market trend is of cement and brand awareness of Lafarge Cement.
DATA COLLECTION
The descriptive nature of research necessitates collection of primary data from retailers through
market survey, personal interview technique was used and interview were conducted through
structured questionnaire the question were asked in prearranged manner. The market research
was conducted over a period of 60 days. Data was tabulated, analyzed and suggestion and
recommendation were given.
RESEARCH INSTRUMENTATS
The Research instrument chosen for conducting the survey was structured questionnaire was
pre[pared as show as in the annexure. The questionnaire includes open ended as well as close
ended question, few open ended question were included to obtain the perception of the retailers.
The questionnaire designed and a pilot survey was made with the questionnaire and then changes
were made accordingly with the questionnaire.
SAMPLE PLAN
A sampling technique was chosen for the study was Random Sampling Technique. This is the
most common method of selecting the sample. This is because the retailers are localized in
different part of the marker a group of retailers are chosen are random from large group. It gives
all retailers in a group and equal chance of being selected for the purpose of the survey.
SAMPLE SIZE
Out of nearly 400 retailers in cement market of Bhubaneswar and its region around randomly
50% of total population was considered as the sample size.
CONTACT METHOD
Both personal and telephonic interview methods were used for conducting the market survey.
Personal interview had the benefit one to one communication between the researcher and the
respondent. If the respondent is having any doubt or queries in their mind, they can get heir
doubts clarified from the researcher on the spot and so superior of data was collected from the
survey was collected from the survey.
Tele – interview was conducted with the structured questionnaire. Tele-interview was less costly
and less time consuming but the data could not be collected in detail from the respondents. Also
any doubt or queries of respondent could not be clarified.
ANALYSIS AND INFORMATION
Detailed information was collected for the project marker survey for retail marketing and sales
promotion activities of Lafarge Cement for the area of Bhubaneswar market. The information
was collected by visiting the retailers of cement present in Bhubaneswar market. The interview
of retailer taken in a friendly atmosphere so as to encourage them to give right information,
without any hesitation. Because of some inherent limitation of telephonic interview, the method
of personal interview was mostly used.
ANALYSIS
The analysis of the collection information was made in scientific manner. Different manner rank
was given to each alternative of particular questions, in the questionnaire. A particular rank was
given in the following manner,
Rank- 5 Unfavourable
To come at the conclusion, total of each alternative of all the sample size retailers was made.
Thus the “sum of an alternative” having least score considered to be most favorable. In this
manner, result is prepared for various important parameters of the survey. With the help of
results so obtained, the findings are recorded in the form of graphs.
The market of cement Changes as the area changes. The demand for particular cement for
particular cement is much less. This is because of the crazier Trend of particular market.
Thus the demand for the cement is not that price sensitive. Price is not the criterion for selection
of rejection of particular brand is adapted on the type of application of cement and the brand
name in market. Thus the awareness among the customers about the particular cement plays a
vital role. The major types of customers are the builders and masons. The individual customers
are there, but their demand is not more. The customers are ready to give slightly high price, but
he wants quality cement, thus he is quality conscious. The customer perceives quality of cement
as good quality because of effective marketing. So effective marketing is necessary.
The retailer in the marker plays an important role in the sale of the cement. They have some
expectation from the cement companies; they expected credit facility, good sales promotion
schemes, and timely delivery of cement, etc
Among the plastic bag and paper bag of cement, Customer prefer bag. This is because the paper
bag prevents it from moisture and quantity remains intact.
In brief cement market is sensitive to marketing. The better & more the marketing the more is
possibility of sales. The observations and findings of the market survey about market share and
sales promotion activities are given at the next stage, in the report.
DATA ANALYSIS
INTERPRETATION
Q. Which brand do you prefer most?
Lafarge 24 12%
Konark 60 30%
Ulteratech 36 18%
Acc 36 18%
Ambuja 14 7%
Century 12 6%
emami 8 4%
shree 10 5%
Grasim
18%
Duncan
Analysis and Interpretation:-
Obviously, maximum dealer, which are about 78 percent, come with Konark, Acc, Ultratech or
Lafarge, And 22 percent either confused or dependent on seasonally available brand for the
Cement.
Q. Which brand do you store?
Lafarge 40 20%
Konark 50 25%
Ulteratech 22 11%
Acc 24 12%
Ambuja 18 9%
Century 24 12%
Grasim 12 6%
Duncan 10 5%
brand
5%
6%
20% Lafarge
Konark
12%
Ulteratech
Acc
9% Ambuja
Century
25%
Grasim
12%
Duncan
11%
Most of the dealers prefer to store either Lafarge or Konark. 20% of the dealer choice is Lafarge
where as 25% of the dealers choice is Konark. Remaining 35% of the dealers inclined towards the
Acc, Ultratech and Century. Remaining 20% of the dealer gives equally importance to the Ambuja,
Duncan and Grasim.
39
Q. Which brand does your customer prefer?
Lafarge 24 12%
Konark 60 30%
Ulteratech 36 18%
Acc 36 18%
Ambuja 14 7%
Century 12 6%
Grasim 8 4%
Duncan 10 5%
4% 5% 12% Lafarge
6%
Konark
7% Ulteratech
Acc
Ambuja
30%
Century
18%
Grasim
18%
Duncan
78% of the customers are brand loyal. And 22% of the customers are price sensitive they go with
that brand which has fewer prices. In case of brand equity Lafarge lies in No. four.
40
Q . What is the Avg. monthly sale of different brands of cement?
Co. Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Rasim
Tones/bag
s
Ambuja 640 6%
Century 750 7%
Grasim 625 6%
Duncan 685 7%
7% 13%
6%
Lafarge
7% Konark
Ulteratech
6% Acc
27% Ambuja
Century
Grasim
19%
Duncan
15%
This data show that the maximum consumption of cement brand in the region of Bhubaneshwar
is Konark cement which is about 26% of the total sales of the cement. Lafarge is on the no.
fourth position which is about 13% of the total sale of cement.
41
Q. Rank the companies stockiest on the basis frequency of making personal visits & ph calls.
Co. Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim Ranks
Dealers rank the companies stockiest on the basis of frequency of making personal visits &
ph calls
CompanyTotal of Rank
Lafarge 562
Konark 656
Ulteratech 430
Acc 450
Ambuja 515
Century 380
Grasim 420
Duncan 470
Total 3883
Lafarge
17%
Acc
Ambuja
10%
Century
13% 11%
12% Grasim
Duncan
From this data we can conclude that only the weak brands stockiest are preferred by the
retailers. Strong brands stockiest are not given the proper consideration towards the retailers. All
the giant brands are ranked as 3 or 4 where as all the loose brands retailers are ranked as1or2.
42
Q. Which Companies stockiest inform you about the change in the market price faster?
Company that provides information to the retailer about the price change in the near future:-
Company No of Dealer
Lafarge 15
Konark 10
Ulteratech 21
Acc 22
Ambuja 26
Century 38
Grasim 36
Duncan 32
Total 200
8% Lafarge
Konark
5%
16% Ulteratech
11%
Acc
18% Ambuja
11%
Century
Duncan
More than 100 of retailers said that Century or Grasim or Duncan provide the preinformation
about the future price change. This helps them to take precautionary action against the future
happenings.
43
Q How much credit in days do you enjoy from the stockiest of following companies?
Company Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim
No. of bags/days
Company No of days
Lafarge 15
Konark 10
Ulteratech 21
Acc 22
Ambuja 26
Century 38
Grasim 36
Duncan 32
Total 200
Acc
Ulteratech
Acc
Grasim
Ulteratech Ambuja
Century
Konark Grasim
Lafarge Duncan
Duncan
The entire market leaders (Lafarge, Konark, ACC, Ultratech) of cement industries provides
relatively less credit period (i.e. less than 50 days) to their stockiest due to which the stockiest are
not able to provide the sufficient credit in days to their retailers. Where as the newly entered
cement brand provides sufficient credit in terms of quantity as well as in days to their retailers.
That’s why their growth rate is relatively high.
44
Q Maximum profit you get out of selling various brands rank them?
Co. Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim Ranks
Maximum share of profit of retailers comes through the selling of the cement:-
Company Profit
Lafarge 35
Konark 45
Ulteratech 38
Acc 37
Ambuja 14
Century 17
Grasim 8
Duncan 6
Total 200
17 8 6 35
14
45
37
38
Only 35 retailers said that their maximum profit comes through Lafarge. Similarly 45, 38, and 37
retailers said that their maximum profit comes through Konark, ACC, and Ultratech respectively.
45
Q. Rank sales promotion activities according to their effectiveness?
Activities Rank
Gifts
Incentives
Hoardings
Others
Retailer’s belief towards the activity that influences sales of the cement:-
Activities Ranks
Gift 37
Incentive 49
Hoardings 66
Others 34
Total 200
Gift
Incentive
Hoardings
32% Others
25%
Sixty six retailers out of two hundred which is 33%, beliefs that Hoardings influence the sales of
the cement. Incentives also play vital role in the promotion of the goods.
46
Q Rank sales promotion activities according to their effectiveness?
Activities Rank
Gifts
Incentives
Hoardings
Others
Gifts No of dealers
Share 14
Tour 40
Gold 39
White Gold 12
Cheque 29
others 66
Totals 200
Share
66 40
Tour
Gold
White Gold
Cheque
29 39 others
12
Most of the retailers do not want to say about the gift. But after asking again and again their
preference are out of the available optioned e.g.:-TV, Camera, cycle, trophy, etc. Out of two
hundred 40 preferred tour, 39 preferred gold, 29 preferred cheque, 14 preferred share and 12
preferred white gold.
47
Q Give your raking to the cement companies in their sales promotion activities
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
Retailers rank the cement company on the basis of the sales promotional activities:-
Lafarge 20 40 80 25 35 200
Konark 60 55 47 38 0 200
Ultratech 20 25 32 78 45 200
Acc 20 71 57 27 25 200
Ambuja 12 14 45 68 61 200
Century 13 45 68 52 22 200
Grasim 50 68 58 24 200
Duncan 30 62 82 26 200
90
80
Rank 1
70
60 Rank 2
50
Rank 3
40
30
Rank 4
20
Rank 5
10
Acc
From the interpretation of the data, we come to know that Konark and ACC are on no.1 and no.2
respectively. Lafarge cement is on no.3. Because 30% of the retailers believe that Lafarge is on no
48
three. Century, Grasim, and Duncan are making extra effort to penetrate the market. Every
retailer mentioned their name and mentioned their considerable effort.
Q What is the general price gap (BP-RP) between the following companies?
Lafarge 6
Konark 5
Ultratech 6
Acc 6
Ambuja 7.5
Century 8
Grasim 10
Duncan 10
12
10
8
Lafarge charges competitive price to the customer. Some of the company charges premium price
like OCL where as some of the brand has very less price like Grasim, Cemtury and Duncan. Price
of Lafarge is always equal to the price of Ultratech, ACC.
49
. Q Rank the companies on the basis of their transportation facilities?
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
Companies are ranked on the basis of the transportation facility provided by them:-
Total
Lafarge 70 65 28 25 12 200
Konark 23 25 15 72 65 200
Ultratech 40 70 65 25 0 200
Acc 20 67 90 20 3 200
Ambuja 15 14 45 90 36 200
Century 85 78 37 0 0 200
Grasim 80 75 38 7 0 200
Duncan 95 62 43 0 0 200
transportation facilities
100
80 Rank 1
Rank 2
60
40 Rank 3
Rank 4
20 Rank 5
Acc
50
Analysis and Interpretation: - Transportation facility is a very vital factor for a brand to
besuccessful in the market; Lafarge cement has proved itself in this area as they are having the
best reach in the urban area not in the rural area.
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
Konark 91 82 27 0 0 200
Ultratech 0 82 91 12 15 200
Acc 82 78 39 1 0 200
Ambuja 14 25 97 61 3 200
Century 42 12 83 42 21 200
Grasim 11 24 45 21 99 200
Duncan 21 37 49 68 25 200
delivery time
120
100
80
Rank 1
60
40
Rank 2
20
Rank 3
0
Rank 5
51
Lafarge is quite ahead in the race in regards to the delivery option, as many retailers says that a
small quantity of cement bags are not delivered by most of the company on time, they say that ar
least you need carry 200 bags and so on, but Lafarge are willing to accept and delivery any
amount of bag at any time.
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Konark 78 45 36 41 0 200
Ultratech 41 65 52 41 1 200
Acc 82 78 35 5 0 200
Ambuja 41 78 44 35 2 200
Century 42 52 41 37 28 200
Grasim 31 51 47 37 34 200
Duncan 26 56 45 68 5 200
Companies rank on the basis of the response to
120
100
80
Rank 1
60
40
Rank 2
20
0 Rank 3
Rank 5
52
Almost most all the companies’ stockiest response towards the customer’s complained but
Lafarge is far ahead to the other companies. Most of the retailers said that Lafarge Marketing
representative are so much attentive towards the customers responses.
Q Rank the company on the basis of their Marketing Representative’s frequency of visit.
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
Companies’ are ranked on the basis of the visit of the marketing representative:-
Lafarge 85 75 40 0 0 200
Konark 78 65 42 15 0 200
Ultratech 45 66 74 15 0 200
Acc 47 52 41 51 9 200
Ambuja 23 45 65 25 42 200
Century 62 68 47 23 0 200
Grasim 23 42 37 47 51 200
Duncan 65 74 54 0 7 200
marketing representative
90
80
70 Rank 1
60 Rank 2
50
Rank 3
40
Rank 4
30
20
Rank 5
10
Acc
53
Lafarge’s marketing representatives are too much concern towards the customer’s welfare. So
they visit almost retailers ones in a week. Where as other companies’ marketing representative
visit the counter only twice in a month.
WHOLESALE PRICE
By comparing the wholesale price and retailing price of the various Brands in the market, we can
infer that the retailers get a good margin in case of GRASIM & DUNCAN. Above that it is the
cheapest brand among the major brands in the market.
Hence the analysis carried earlier part of the project i.e. profit selling brand is justified at both the
levels.
54
SWOT –Analysis
SWOT-analysis is done to understand the external and internal environment of the organization.
SWOT, which is acronym for strength, weakness, opportunity and threats is
also known by TOWS-analysis. Though such an analysis, is strength and weakness exist within an
organization can be matched with the opportunity and threats operating in environment , so that
an effective strategy can be formulated. An effective organizational strategy, therefore, is one
that capitalizes on the opportunity through the use of strength and neutralizes the threats by
minimizing the impact of weakness.
Below is the SWOT- analysis of Lafarge India Pvt. Ltd. in cement market.
Strength
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Customer choice.
Lafarge being an MNC has a global leverage.
It has a good brand image in Cement.
Weakness
Great need of strategic way for promotion and advertisement for both dealers and
customers.
Not an easy task to overtake Konark, Ultratech and ACC.
Price and margins is not match with dealers and retailers expectation respectively.
Guaranty given by company is from the date of manufacturing which is not acceptable for
the dealers and retailers.
Take large time in the replacement of Cement.
Opportunity
Strong infrastructure requirement for the development of the country and the country is
developing in the utter pace.
No of the medium class people is growing.
Institutional market like corporate and government offices, school society complexes are
Threats
Cheep priced brand are grabbing rapidly a large chunk of lower income customer base.
Other brands like Duncan and Grasim provide maximum profit to the both customer as
well as to the retailers.
It was found from my survey that Konark maximum market share is due to brand loyalty.
Dealers expect more margin and gift to sell of the Lafarge cement.
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FINDING
OTHER REASONS STATED BY RETAILER FOR BRAND PREFERENCE:-LAFARGE
Better quality
Good name in the market
Timely available
Immediately respond on the competitors strategy.
Relatively less price.
Better packaging
ULTRATECH
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High market awareness.
Sells more
CENTURY
ACC
Customers choice.
Price is suitable as per customers pocket
Rate & profit
Good relationship with the people at Grasim.
Birla is a very renowned name so people trust it.
DUNCAN
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Service is good.
PROBLEM FACED BY
STOCKIEST
None of the stockiest had any complains about any brands, in regards to the
price, transport, service etc
Dispatch being closed at the start of the month is a ”trump card “for them to play in
the market to push the sale.
Stockiest are satisfied with the companies service.
The stockiest occasionally inform about the price change in the market.
They do not make personal visits to the counters frequently.
Price should be stabilized in the market.
Price stability in regard to the price set by the company as well as wholesalers (i.e. all
the wholesalers should have the same price offered in the market).
The management should not interfere in the price offered by the counterperson to
the customers.
They need price flexibility to shoot up the sale.
Dispatch being closed every start of the month is a problem is a problem for them to
stick to the commitments made by them to the customers.
Small quantity ordered is not furnished on time.
Pressurize them for taking more quantity for more quantity for transportation facility.
Lafarge now does not give any gifts at the counters.
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LIMITATION OF THE STUDY
2. It was found in some cases dealers showed inclination towards certain brands which
gave them more margins when compared to others.
3. It was experienced during the survey that it was difficult to convince or make the
retailers and dealers understand the important of the project
4. As the retailers and dealers thought that it was unwise for the to give their details
of business as they feared competitors would take advantage.
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SUGGESTIONS
A very exhaustive study has been made, keeping in the essence of the objective of the project.
With the efforts put on the project a detailed analysis was conducted and result were derived,
based on the results and market response few suggestions are discussed below
A Price fluctuation creates problems for retailers as the cannot keep the commitments of price to
customers……
At time it has been seen that the delivery commitments an the side of the company is not
prompt, this creates a bad name and again business is lost
On interviewing Dealers/Retailers the most important thing they said was about the price
flexibility, they want that the company should give them the price flexibility to play in the market.
(As the company has outlined that the price offered by the company should only be offered to
the customer, it should not increased to the customer, it should not be increased or decreased).
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The Brand Name Lafarge is quite difficult to be pronounced and remember, so it should be made
short and easy for the rural masses to remember like (L&T).
CONCLUSION
To attain the objective of the project detailed information was collected from the market of
Bhubaneshwar. The market research has revealed many facts and figures about the cement
scenario in the market prevailing.
In the market, Lafarge cement is well known brand of cement. This is the result of the good
quality of the Lafarge cement along with their effective marketing efforts, which covers the whole
market customers of Lafarge cement are highly satisfied with the use of it, as they do not face
any problem after using it.
There are seven major players in the market but the major completion is between the two brands
of cement. But because of good marketing efforts, Lafarge cement is able to grasp some share of
various other brands
The market survey undertaken shows that effective marketing efforts play a vital role in creating
the goodwill for the brand. The distribution channel of cement industry must be well designed
and made effective this ensures timely availability of cement to customers.
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Good marketing creates good image i.e. brand building. Even through often Lafarge take over the
Tata cement and place its brand as Lafarge cement in the market , but still it has not shown any
decline in its status. Lafarge still cherishes the good will created by Tata cement in the market.
BIBLIOGRAPHY
BOOKS
New Delhi
2nd Edition-1995
New Delhi-110001
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WEBSITE
1. www.lafarge-cement.co.in
2. www.google.com
3. www.ibef.org
4. www.msn.com
5. www.indianexpress.com
ANNEXTURE
QUESTIONNAIRE
cement? 65
Co. Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan Rasim Tones/bags
7. Rank the companies stockiest on the basis frequency of making personal visits & ph calls.
Co. Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim
Ranks
8. Which Companies stockiest inform you about the change in the market price
faster?
9. How much credit in days do you enjoy from the stockiest of following companies?
Co. Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim
No. of bags/days
10. Maximum profit you get out of selling various brands rank them?
Co. Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasim
Ranks
Gifts
Incentives
Hoardings
Others
66
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
14. What is the general price gap (BP-RP) between the following companies?
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
16. Rank the companies on the basis of their cement delivery time?
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
17. Rank the companies which are the best delivery time?
Company Rank
Lafarge
Konark
67
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
18. What kind of problem you generally face with the transport?
19. Rank the companies on the basis of the response to customer complaints.
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
20. Rank the company on the basis of their Marketing Representative’s frequency of visit.
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
21. Rank the company on the basis of their Marketing Representative’s accessibility.
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
68
Duncan
22. Rank the company on the basis of their Marketing Representative’s art of making
and maintaining the relationship.
Co. Lafarge Konark Ambuja Century Ramco Acc Ultratech Duncan rasimRanks
23. Any suggestion you would like to make for the company?
69