Professional Documents
Culture Documents
MANAGEMENT
Bhawana Dwivedi
Batch of 2018-20
Acknowledgement
The summer internship opportunity I had with UltraTech Cement was a great learning experience
for me and I would like to take this chance to express my gratitude towards the organization. I
extend my sincere gratitude towards Mr. Vishal Chaddha () for giving me this opportunity.
The accomplishment of this study was made with the help and direction of my mentor Mr Ani
George (Territory Sales Manager), who in spite of being busy with his duties, took time to hear,
guide and keep me on the correct path.
I express my deepest thanks to Mr. Ajit () for guiding me initially on the technical aspect of the
cement industry which has helped me throughout the project. I would also like to thank all the
colleagues of UltraTech cement who have constantly helped me with the field visits.
I would like to thank Mrs Divya Singhal (Associate Professor - GIM) for the valuable suggestion
and guidance for this project. I extend my thanks to Mrs Nitasha Borah (Associate Professor -
GIM) as my faculty guide for the correct direction.
Last but not least I would like to thanks, Faculty and Teachers of Goa Institute of Management,
my colleagues here supporting me on every decision, my parents and my family for constant
support.
I perceive as this opportunity as a big milestone in my career development. I will strive to use
gained skills and knowledge in the best possible way, and I will continue to work on their
improvement, in order to attain desired career objectives. Hope to continue cooperation with all
of you in the future.
Sincerely,
Bhawana Dwivedi
Ahmedabad
28/05/2019
Abstract
India is the second largest producer of cement in the world. Ever since it was deregulated in
1982, the Indian cement industry has attracted huge investments, both from Indian as well as
foreign investors. Cement production capacity stood at 502 million tonnes per year (mtpy) in
2018. Capacity addition of 20 million tonnes per annum (MTPA) is expected in FY19- FY 21.
The Indian cement industry is dominated by a few companies. The top 20 cement companies
account for almost 70 per cent of the total cement production of the country. A total of 210
large cement plants account for a cumulative installed capacity of over 410 million tonnes, with
350 small plants accounting for the rest. Of these 210 large cement plants, 77 are located in the
states of Andhra Pradesh, Rajasthan and Tamil Nadu. UltraTech is current considered as the
biggest giant in the market with the highest production capacity after acquiring Jaypee and
recently Binani Cement.
There are different grades of cement available in the market : OPC , PPC and Premium brand
Super Cement. These cement types serve different purpose of construction. Earlier OPC was the
majorly used cement until PPC came into the market. UltraTech pushed the sale of PPC as its
environmental friendly and good for the business too. Now they have UltraTech Super cement
which is a premium quality cement and higher in price. It is a PPC but with a less percentage of
flash in it. It’s been 2 years since its launch and they want to increase the sale of Super cement
to 10 % which is currently at approximately 4%. The project was to understand the market
insights behind the less sale of Super and come up with new ideas as to how we can increase
the sale of Super in Ahmedabad, Gandhinagar and Kheda region.
There is a significant relationship between the percentage sale of Super cement and the
type of customer dealers have
There is a significant relationship between the percentage sale of Super cement and the
willingness level of the dealers to sell Super
There is a relationship between the percentage sale of Super cement and the efforts made
by the dealers to sell Super Cement
There is no significant relationship between percentage sale of Super cement and
awareness level of dealers
Dealers believe if there will be some special incentive for them for selling super cement,
this can increase its sale.
Majority of dealers gave first preference for proper display of Super cement at the
counters and second preference for advertising campaign for Super cement
Dealers feel that targeting IHBs can increase the sake of Super cement
90% contractors feel customer can pay high for added quality
Contractors feel dealers seldom upfront talks about Super Cement
75% decisions were made by the IHB to use Super Cement
Average rating for advertisement of Super cement is 1.5 out of 5
50% decided to buy Super for its premium quality
Recommendations
• Pamphlets showing the advantages of super should be available at the counters and with
UltraTech staff
• Availability of product at each counter is very important which will make them sell that
product
• Reviews and feedback meets
• Since the major problem is that the dealers are not so motivated so they can’t explain
things to the customers so we can put some poster which on each counter which will say
about super and it will be specifically written that ask your dealer about Super and its
advantage
The report summaries the market insights about UltraTech Super Cement and how its sale can
be increased. UltraTech Super cement is a premium product of the broad product range offered
by the company and need to increase the sale of Super.
The first chapter explains about the cement industry in depth and the growth factors related to
cement industry. The second chapter explains about the company’s profile - their mission and
vision and their product range. Next chapter explains about the key learnings from the project. It
details on which new learning we have gained and how have we applied the gained knowledge
from GIM. Next chapter is the main part of the project, which is Research Type. All the details of
methods, samples and how have we conducted the survey is explained. Analysis and
recommendations are discussed in detail.
So, the report explains everything which is required to increase the sale of Super Cement.
Table of Content
Acknowledgment
Abstract
Executive Summary
Chapter 1. INTRODUCTION
1.1.2 Investment
2.2.2 Solutions
2.2.3 Milestone
2.2.4 Plants
2.2.5 Team
CHAPTER 3. LEARNINGS
3.1 Promotion
4.1 Purpose
REFERENCES
ANNEXURE
Questionnaires
Introduction
India is the second largest producer of cement market after China in the world. No wonder,
India's cement industry is a vital part of its economy, providing employment to more than a
million people, directly or indirectly. Ever since it was deregulated in 1982, the Indian cement
industry has attracted huge investments, both from Indian as well as foreign investors. India has
a lot of potential for development in the infrastructure and construction sector and the cement
sector is expected to largely benefit from it. Some of the recent major government initiatives
such as development of 98 smart cities are expected to provide a major boost to the sector.
Expecting such developments in the country and aided by suitable government foreign policies,
several foreign players such as Lafarge-Holcim, Heidelberg Cement, have invested in the country
in the recent past. A significant factor which aids the growth of this sector is the ready availability
of the raw materials for making cement, such as limestone and coal Market size.
With 502 million tonnes per year (mtpa) of cement production capacity as of 2018, India is the
second largest cement producer in the world. The cement production capacity is estimated to
touch 550 MT by 2020. Of the total capacity, 98 per cent lies with the private sector and the
rest with the public sector. The top 20 companies account for around 70 per cent of the total
production.
A total of 210 large cement plants together account for 410 million tonnes of installed capacity
in the country, while 350 mini cement plants make up the rest. Of the total 210 large cement
plants in India, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.
Cement production in India increased from 230.49 million tonnes in 2011-12 to 297.56 million
tonnes in 2017-18. India’s exports of cement, clinker and asbestos cement increased at CAGR of
10.37 per cent between FY12-FY18 to reach US$ 433.87 million. During the same period
imports of cement, clinker and asbestos cement increased at a CAGR of 11.14 per cent to US$
174.36 million in FY18. Cement, clinker and asbestos cement exports and imports of India stood
at US$ 434.96 million and US$ 146.91 million during April 2018 -February 2019, respectively.
The Government of India is strongly focused on infrastructure development to boost economic
growth and is aiming for 100 smart cities. The government also intends to expand the capacity
of the railways and the facilities for handling and storage to ease the transportation of cement
and reduce transportation costs. These measures would lead to increased construction activity
thereby boosting cement demand.
Fig 1
198
194 2
844
193
644 Deregulation of
Indian Cement
Cement industry with
Expansion entry of foreign
192 Scheme
7 Formation of players.
ACC , the most Major Players
important Shree
“Concrete association .
191 ACC
Association of
444 India” Holcim
Lafarge
India Hidelberg
entered J K Cement
into the L&T
Cement Era
in when the JK Lakshmi
Indian India Cement
Cement Birla
Company
Ltd.
Cement production capacity stood at 502 million tonnes per year (mtpy) in 2018. Capacity
addition of 20 million tonnes per annum (MTPA) is expected in FY19- FY 21.
The Indian cement industry is dominated by a few companies. The top 20 cement companies
account for almost 70 per cent of the total cement production of the country. A total of 210
large cement plants account for a cumulative installed capacity of over 410 million tonnes, with
350 small plants accounting for the rest. Of these 210 large cement plants, 77 are located in the
states of Andhra Pradesh, Rajasthan and Tamil Nadu.
1.1.2 Investment
According to data released by the Department of Industrial Policy and Promotion (DIPP),
cement and gypsum products attracted Foreign Direct Investment (FDI) worth US$ 5.28 billion
between April 2000 and December 2018.
Some of the major investments in Indian cement industry are as follows:
As of December 2018, Raysut Cement Company is planning to invest US$ 700 million in
India by 2022.
During 2017-18, UltraTech commissioned a greenfield clinker plant with a capacity of 2.5
MTPA and a cement grinding facility with 1.75 MTPA capacity in Dhar, Madhya Pradesh.
The company is expecting to complete a 1.75 MTPA cement grinding facility and a 13
MW waste heat recovery system by September 2018 at the same location.
JK Cement is planning to invest Rs 1,500 crore (US$ 231.7 million) over the next 3 to 4
years to increase its production capacity at its Mangrol plant from 10.5 MTPA to 14
MTPA.
In order to help the private sector companies, thrive in the industry, the government has been
approving their investment schemes. Some such initiatives by the government in the recent
past are as follows:
In Budget 2018-19, Government of India announced setting up of an Affordable Housing Fund
of Rs 25,000 crore (US$ 3.86 billion) under the National Housing Bank (NHB) which will be
utilized for easing credit to homebuyers. The move is expected to boost the demand of cement
from the housing segment.
Fig2
Fig 3
Fig 4 Consumption and Production
Fig 5
Fig 6
1.1.4 Types of cement (Table 1)
Ordinary Portland Cement 33 Grade General construction work where high strength
Concrete is not required, plastering, finishing
Works etc
Ordinary Portland Cement 43 Grade Used where M-15, M-20 and above grade concrete
is required used for pre cast items and general
construction work
Ordinary Portland Cement 53 Grade High strength cement used for multistory building,
pre cast and pre stressed items, bridges, tall
structures
Fig 7
1 Housing Development and construction market is one of the main growth driver.
● The 90 smart cities shortlisted by the Government of India have proposed projects with
investments of Rs 191,155 crore (US$ 30.02 billion) which include Projects Focusing on
Revamping an Identified Area (Area Based Projects) with investment of Rs 152,500 crore
(US$ 23.95 billion).
● Housing demand would be led by rural segment, which is expected to benefit from
government schemes targeting construction of 22 million houses.
● The burgeoning real estate industry in India gives a fillip to the demand for concrete and
cement.
● The residential real estate demand is rising by rapid urbanization and rural development.
● Commercial real estate demand will be given by organized IT, retail and manufacturing
sector
● Growing urbanization, an increasing number of households and higher employment are
primarily driving the demand for housing, accounting for 67 per cent of the total
consumption.
2. Highway Development, Road Construction and Railway improvement
● Railways received the highest ever budgetary allocation of Rs 1.48 trillion (US$ 22.86
billion).
● Sagarmala and all other such port projects
● India has the second largest road network across the world at 5.4 million km. This road
network transports more than 60 per cent of all goods in the country and 85 per cent of
India’s total passenger traffic.
● The National Highways Authority of India (NHAI) plans to build 50,000 km of roads worth
US$ 250 billion by 2022 as part of a long-term goal of doubling the length of the national
highway network to 200,000 km.
● Railway and Roads improvement help the cement transportation and availability of raw
materials easily and quickly.
● The Government of India has decided to invest Rs 7 trillion (US$ 107.82 billion) for
construction of new roads and highways over the next five years
● Infrastructure projects such as Dedicated Freight Corridors as well as new and upgraded
airports and ports are expected to further drive construction activity,
3. Mining Activity, Availability of raw material and Coal Availability
● 4. Rs 16,000 crore (US$2.47 billion) towards Sahaj Bijli Har Ghar Yojana (Saubhagya)
scheme. The scheme aims to achieve universal household electrification in the country.
● Rs 4,200 crore (US$ 648.75 billion) to increase capacity of Green Energy Corridor Project
along with other wind and solar power projects.
● Allocation of Rs 10,000 crore (US$ 1.55 billion) to boost telecom infrastructure.
● Massive push to the infrastructure sector by allocating Rs 5.97 lakh crore (US$ 92.22
billion) for the sector.
● In January 2018, the National Investment and Infrastructure Fund (NIIF) partnered with
UAE-based DP World to create a platform that will mobilize investments worth US$ 3
billion into ports, terminals, transportation, and logistics businesses in India.
● The Central Road Fund (Amendment) Bill, 2017 has been passed by Lok Sabha,
Government of India which would result in revenues of Rs 2,300 crore (US$ 358.7 million)
for national waterways in the country
● In February 2018, the Government of India signed a loan agreement worth US$ 345
million with the New Development Bank (NDB) for the Rajasthan Water Sector
Restructuring Project for desert areas.
● Though the industry is highly efficient in India, when it comes to energy consumption,
rising fuel cost push the industry for lower consumption so that it could save more. The
data on specific electrical energy consumption and specific thermal energy consumption
5 shows that India is much better than the rest of the world
● Though the industry in India has made a significant improvement in energy efficiency,
use of alternative fuel and raw materials is a major area seen for improvement.
● Another area is waste heat recovery addition stage in preheater.
1.1.6 Government Policies to aid the sector
The Indian government is aiming to increase the infrastructure investments to $1 trillion. This, in
addition to other factors like large-scale urbanization and rising demand for affordable housing,
will set the demand for cement soaring. Industry experts are of the view that 'rural' or low-cost
housing under the PMAY (Pradhan Mantri Awass Yojana- Gramin Scheme) will propel demand
for cement to maximum levels.
It is the housing development sector that will take up the lion's share when it comes to the
consumption of cement.
Real estate market is expected to grow at a CAGR of 11.6 per cent over 2011–20, with the
market expected to reach USD180 billion by 2020
2. Impact of GST
With a higher slab of 28 per cent allocated for the cement sector under GST, the industry shows
signs of subdued growth owing to increased costs. However, the situation is not all gloomy since
the supply chain management and warehouses supporting the industry, will get a boost under
GST. Companies also offering return of GST on discounts back.
The Government of India is working to ensure a good living habitat for the poor in the country
and has launched new flagship urban missions like
Government has also allowed 100 % FDI in the sector, set up PCPIRs and increased focus on R&D.
According to data released by the Department of Industrial Policy and Promotion (DIPP), cement
and gypsum products attracted Foreign Direct Investment (FDI) worth US$ 5.25 billion between
April 2000 and December 2017.
o Sand availability constraints have eased at the margin in select states of UP and Bihar. In Tamil Nadu
too, the Supreme Court stayed the sand mining ban imposed by the High Court proving a
temporary relief. Rajasthan is yet to see a resolution. Cost of sand has risen meaningfully over
the last year given short supply.
o Higher share of non-trade. Most companies highlighted an increase in the share of non-trade as
constrained sand availability and correspondingly high sand prices adversely impacted the
execution for trade/ IHB projects. Also, we note that majority of incremental demand is coming
from government-led projects and probably points that higher non trade share is likely to sustain
ahead.
o Government’s affordable housing program for rural India (PMAY-G). Progress here-in has been the
key positive surprise with both sanctions and execution seeing a noticeable jump. Government
is confident of reaching 10M target by FY19. Of the total target in phase 1, ~6.3M units have
already been sanctioned and the second installment has been paid for 4M+ units (advanced stage
of construction).
o Increasing presence of cement players- Presence of small and mid-size cement players across regions
is increasing, which helps to diminish market concentration of industry leaders.
A large number of foreign players have also entered the market owing to the profit margins,
constant demand and right valuation.
Cement companies will go for the global listings either through the FCCB route or the GDR route
2. Company’s Profile
A US $44.3 billion corporation, the Aditya Birla Group is in the League of Fortune 500. Anchored
by an extraordinary force of over 120,000 employees belonging to 42 nationalities, the Group is
built on a strong foundation of stakeholder value creation. With over seven decades of
responsible business practices, our businesses have grown into global powerhouses in a wide
range of sectors – metals, textiles, carbon black, telecom and cement. Today, over 50% of
Group revenues flow from overseas operations that span 34 countries in North and South
America, Africa and Asia.
Mission: To deliver superior value to our customers, shareholders, employees and society at large
Vision: To be a premium global conglomerate with a clear focus on each of the businesses
UltraTech Cement Ltd. is the largest manufacturer of grey cement, Ready Mix Concrete (RMC)
and white cement in India. It is also one of the leading cement producers globally. UltraTech as a
brand embodies 'strength', 'reliability' and 'innovation'. Together, these attributes inspire
engineers to stretch the limits of their imagination to create homes, buildings and structures that
define the new India.
The company has a consolidated capacity of 102.75 Million Tonnes Per Annum (MTPA) of grey
cement. UltraTech Cement has 20 integrated plants, 1 clinkerisation plant, 26 grinding units and
7 bulk terminals. Its operations span across India, UAE, Bahrain, Bangladesh and Sri Lanka.
UltraTech Cement is also India's largest exporter of cement reaching out to meet the demand in
countries around the Indian Ocean and the Middle East.
In the white cement segment, UltraTech goes to market under the brand name of Birla White. It
has a white cement plant with a capacity of 0.56 MTPA and 2 WallCare putty plants with a
combined capacity of 0.8 MTPA. With 100+ Ready Mix Concrete (RMC) plants in 35 cities,
UltraTech is the largest manufacturer of concrete in India. It also has a slew of specialty concretes
that meet specific needs of discerning customers.
Building Products business is an innovation hub that offers an array of scientifically engineered
products to cater to new-age constructions. Aerated Autoclaved Concrete (AAC) blocks are
economical, light-weight blocks ideal for high-rise buildings, while Dry Mix Products include
waterproofing, grouting and plastering solutions designed for faster completion of projects. The
retail format of UltraTech Building Solutions offers a wide range of construction products to the
end customers under one roof. With a significant presence in the grey and white cement,
concrete and building products segments as well as providing 360 degree building solutions,
UltraTech is the one-stop shop for every primary construction need. Its meteoric rise as India’s
largest cement brand reflects on the organization’s focus on cutting edge technology, research
and technical services
2.2.1 Product Range
Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana
Cement under grey cement
White cement, WallCare putty and white cement based products under Birla White
Ready Mix Concrete and a range of specialty concretes with specific functional
properties under UltraTech Concrete
AAC blocks, waterproofing solutions, grouting solutions and plastering solutions under
UltraTech Building Products
New age building products under the names of ‘Xtralite, Fixoblock, Seal & Dry and
Readiplast’. UltraTech Building Solutions is a retail format that caters to the end
consumer providing a variety of primary construction materials under one roof
2.2.2 Solutions
Home Builders
Engineers/Architects
Large Projects
Key account management cell
A first for the industry, was Formed in 2002, our Key Account Management Cell was a first for the
industry. Focused towards developing successful business-to-business relationships, it ensured
we partner with leading players in the highly competitive construction industry.
The key account team structure is customized based on the industry’s needs and operations. A
Customer Relationship Manager (CRM) is the single contact point to connect with customers’
Head Offices and service their pan-India requirements. Project Relationship Managers (PRMs)
ensure supplies, documentation and value added services to touch points at the site.
Customizing product offerings like low alkali cement, slag cement with 50% GGBS, etc.
Captive ready mix plants dedicated to projects under 'Project Ownership' concept.
80 key accounts and 122 prospective key accounts covering around 2600 construction sites
across India.
2.2.3 Milestone
UltraTech Cement was incorporated in 2000 as Larsen & Toubro. Later it was demerged and
acquired by Grasim and was renamed as Ultra Tech Cement in 2004. Today UltraTech cement a
part of Aditya Birla group, is the country’s largest exporter of cement clinker. UltraTech Cement
Limited has an annual capacity of 52 million tonnes. It manufactures and markets Ordinary
Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. It also
manufactures ready mix concrete (RMC). All the plants have received ISO 9001 certification.
2010- UltraTech Cement Middle East Investments Limited, a wholly owned subsidiary of
the Company acquired management control of ETA Star Cement together with its
operations in the UAE, Bahrain and Bangladesh
The cement business of Grasim demerged and vested in Samruddhi Cement Limited in
May, 2010. Subsequently, Samruddhi Cement Limited amalgamated with UltraTech
Cement Limited in July 2010.
2014- New clinker plants of 3.3 MT capacity each at Rawan, Chhattisgarh and Rajashree,
Karnataka
Acquisition of Sewagram and Wanakbori unit in Gujarat with a capacity of 4.8 MTPA
India
UltraTech Cement has a consolidated capacity* of 102.75 Million Tonnes Per Annum (MTPA) of
grey cement. It has 20 integrated plants, 1 white cement plant, 2 WallCare putty plants, 22
grinding units, 6 bulk terminals, 5 jetties and more than 100 RMC plants spanning the length
and breadth of the country
Integrated Plants - 22
Grinding Units - 24
Bulk Terminal - 7
Overseas
UltraTech Cement has a significant presence in the Middle East with the acquisition of Star
Cement by UltraTech Cement Middle East Investments Ltd in 2010. Star Cement is a leading
manufacturer of cement in this region with an installed capacity of 3 MTPA. It has 1 clinkerisation
plant and 2 grinding units in the UAE and 1 grinding unit each in Bahrain and Bangladesh.
UltraTech also has a bulk terminal in Sri Lanka under UltraTech Cement Lanka (Pvt.) Ltd.
Sri Lanka -3
UAE – 4
Bahrain – 1
Bangladesh – 1
2.2.5 Team
UltraTech Cement is led by a dynamic team of individuals who have played a defining role in the
growth of the organization over the years. Their vast experience has given them unique insights
into the needs of our various stakeholders. These insights fuel our strategic directions and have
enabled UltraTech Cement to become the leading manufacturer of cement in India and one of
the leading cement producers globally
Board of directors
Executive team
3.1 Promotion
Professor Philip Kotler says that “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
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.
According to Professor William J. Stanton: “Sales promotion refers to demand –stimulating
devices designed to supplement advertising and facilitate personal selling.
According to professor Philip Kotler: “Sales promotion consists of diverse collection of incentives
tools, mostly short term, designed to stimulate quicker and or greater purchase of particular
product /services by consumer or trade
It is short term.
It provides incentives
It aims at quicker response
It is directed at target audience
Consumers shop carefully, forcing retailers to lower their prices. Retailers put pressure
on manufacturers to lower their prices. The result is a marketplace characterized by
heavy discounting and sales promotion.
It engages customer
Sales promotion methods differ according to the target audience. They can be directed at
consumer promotion, trade promotion, and sales force promotion
(a) Consumer promotion method
➢ Free sample
➢ Coupons
➢ Rebates
➢ Premium
➢ Price off
➢ Contests
➢ Display/Demonstration
In a cement company, dealer network plays a major role. To maintain a dealer network it utmost
important to build a relationship with them.
In these 2 months, on the field meeting more than 100 dealers made me learn how to build a
relationship which is professional yet with a personal touch. There was a great learning expiernce
watching how sales executives deals with the dealer and also with the competitive counters and
convert them to UltraTech dealer and maintain the existing ones
This matrix suggests how reference group impacts the selection of a brand.
Dimensions are divided to necessities or luxury and public or private products. Necessity product
is a product that is owned by almost everyone and is considered being essential product, whereas
luxury is rare kind of a product that is not used by everyone. Moreover, luxury products are seen
more important purchases for consumers, because they tend to be also more expensive and
more complex products. The second dimension depicts how much the product is seen being used.
Public products are demonstrated out in the open, which is why reference groups have bigger
impact on them. Private products are normally the things that are not usually shown to other
people or are situated in the home area. The combination of these two dimensions creates a
matrix that is shown below.
Fig 8
In today’s world the influence of a brand is strong and many companies have shifted from Private
necessity to public necessity, example paints
UltraTech cement which is somewhere on the border wants to shift to Public necessity an that’s
why in their advertisements instead of focusing on the qualities of the cement, they focus on
build beautiful, they focus on the lifestyle and emotion.
4. Research Based Project (Type - 1)
4.1 Purpose
The purpose of the research is to systematically understand the market insights on the UltraTech
Cement’s premium product Super and know the reasons behind less sale of Super cement despite
of premium quality
To understand the market sentiments and understand the reasons behind less sale of
Super Cement
To understand the consumer’s insights on buying behavior of cement and which factors
are important for them while buying cement
To analysis the insights and make inferences, come up with recommendations
Primary Data: Collected from dealers, contractors and IHBs through the survey. The survey had
structured questionnaire for data collection.
Secondary Data: Reviewed research papers and articles related to cement industry to form the
base of the survey. Below are the research papers review:
“Use of Portland Pozzolana Cement to Enhance the Service Life of Reinforced Concrete Exposed
to Chloride Attack” by Bhaskar Sangoju; Radhakrishna G. Pillai2; Ravindra Gettu3; B. H.
Bharatkumar and Nagesh R. Iyer (2015) – which discusses how PPC is helpful in durability and
how it protects structure in chloride environment
Leading factors affecting buying decision making in a mobile business market- Ville Kemppi
(2016) - Explained about the reference group influence matrix
The Research instrument chosen for conducting the survey was structured questionnaire
prepared 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
and dealers. The questionnaire designed and a pilot survey was made with the questionnaire and
then changes were made accordingly with the questionnaire.
The sampling technique chosen for the study was Random Sampling. There are more than 750
dealers only in Ahmedabad, so the dealers are localized in the three different areas under study
and the best method to sample them was Simple Random Sampling. A group of dealers are
chosen are random from large group. It gives all dealers in a group and equal chance of being
selected for the purpose of the survey.
Only personal interview was 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 their doubts clarified from
the researcher on the spot and so superior of data was collected from the survey was collected
from the survey.
4.8 Presentation of Data
Distribution of Survey
Fig 9
8%
11%
Dealers
Contractor
IHB
81%
Total 100 dealers were covered and as number of total dealers are more in Ahmedabad as
compared to the other two districts, the distribution has been done accordingly.
Distribution of Sample
Fig 10
8%
11% Dealers
Contractor
IHB
81%
As our major concern is to know the insights from the dealers, we have designed the sample
accordingly. But we also wanted to get some in depth insights from contractors and IHBs too so
we have kept them in the sample and designed separate questionnaire for them.
4.9.1 Dealers
A. Regression Analysis
H0: There is no significant relationship between percentage sale of UltraTech Super cement and
type of customer
H1: There is a significant relationship between percentage sale of UltraTech Super cement and
type of customer
H0: There is no significant relationship between percentage sale of UltraTech Super cement and
efforts made by the dealer to sell Super
H1: There is a significant relationship between percentage sale of UltraTech Super cement and
efforts made by the dealer to sell Super
H0: There is no significant relationship between percentage sale of UltraTech Super cement and
willingness level of dealer
H1: There is a significant relationship between percentage sale of UltraTech Super cement and
willingness level of dealer
After running multiple regression on the above mentioned variable, we have realized that the p
value of awareness level is not fir , so we removed that variable and run the regression again
with other independent variables and below is the result :
As the p value of the three variables are less than .05 we reject the null hypothesis which
means:
Regression Statistics
Multiple R 0.657509329
R Square 0.432318517
Adjusted R
Square 0.414391733
Standard
Error 3.928527846
Observations 99
ANOVA
df SS MS F Significance F
Standard
Coefficients Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
- -
Intercept 0.817763216 2.071326231 0.394801748 0.693874201 3.294339262 4.929865693 3.294339262 4.929865693
- - - - -
1 3.614615194 0.983676959 3.674595772 0.000394145 5.567460864 1.661769525 5.567460864 -1.661769525
According to the first result, we say that there is a relationship between the sake of
super and type of customers they have. The dealers whose majority customers are
contractors; they tend to have less sale of Super as compared to IHBs. So, here we
understand that we need to focus majorly on IHBs to increase the sale of Super
The second finding says that there is relationship between sale of Super and efforts
made by the dealers. So, if a dealer is putting that extra effort which is required to sell
Super cement his percentage of sale is increasing. This proves that dealers act as a great
influencer and people buying cement take their advice and if they explain about Super
every time, then sale can be increased.
Fig 12
5% 5%
A
B
42%
C
48%
D
A- Always
B- Often
C- Sometimes
D- Seldom
E- Never
The third finding says that there is a relationship between willingness of selling super
and sale of super. This proves that the dealers need to be convinced about the qualities
of Super and they should be convinced that there is an added benefit of selling super
which gives them motivation to sell more. This can be done through felicitation
programs where they can share their “Super Stories” and help other dealers to know
that if they sell more they will earn more
B. Dealer’s Insights
Below figure explains about the dealer’s sentiment on an average on a scale of 5, what they feel
about different aspects:
Fig 13
4.5
3.5
2.5
1.5
0.5
0
does rate current incentivising adv is happy to pay customer affects kutumb satisfaction
customer incentives will increase helpful for premium are involved identity with current
take advise sale of super adv
before
buying
Keys Findings
Majority dealers feel that if the incentives will be increased for selling Super, then the
sale will be increased as they will get motivation for putting that extra effort
Also dealers believe that customer are “Often” involves in the decision making of which
cement to buy, so if we can target IHBs then a significant change can be experienced.
They also believe that some advertising activity is necessary to increase the sale of
Super
Fig 14
Type of Customer
34%
66%
Contractors IHBs
Since 34% customers are IHBs, if we can focus on targeting them, the desired sale of Super can
be achieved
C Incentivizing Dealers
Fig 15
1
D
34
21
C
10
10
B
42
66
A
12
0 10 20 30 40 50 60 70
Fig 16
As we can see from the above chart that 43% dealers give first preference to proper
display at counters explaining about Super Cement
There are a lot of dealers who feel at times they are too busy to take time out and
explain everything about Super to customer – during those time pamphlets/literatures
can be helpful in explaining to customer
Also, there are a lot of dealers who themselves are not very aware of the benefits of
Super, so this could help
67% dealer give second preference to advertising campaign. They feel that customers
are not aware of Super and hence they have to make that effort of explaining it all the
time which is sometimes difficult.
*Factor which can play a major role in increasing sale of Super according to dealers*
TECH HELP 3
0 5 10 15 20 25 30 35 40
Fig 17
34 dealers believe that there should be more number of meets specifically for IHBs as they have
noticed a significant change whenever a company representative explains about Super to the
end users. So, there should be more meets for IHBs.
Fig 18
1
Strength
0
13
Premium quality
0
81
Price
3
1
Delivery System
0
3
Brand Image
96
0 20 40 60 80 100 120
Majority of dealers gives first preference to the Brand Image and second preference to the
price. So, the two most important factors affecting the purchase are brand image and price.
UltraTech has a very good image so the problems come up to the price.
Since the price of Super is Rs25 plus over PPC, dealers are facing problem in selling it. So, if we
can bring Super as a great brand in itself then this problem can be solved.
4.9.2 Contractors
*Contractor’s Preference*
Fig 19
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Price Quality Brand Strength
5 4
The most important thing that contractors consider while buying cement is quality. As
per the market insights there is no problem with our quality
Second most important thing is brand. So, again if we can highlight Super as a great
brand itself, this can increase sale of Super
*Other Insights*
Since 90% contractors think IHBs can spend more, we can target IHB and convert them in Super
for the added quality they will get
4.9.10 Independent House Builders
0 1 2 3 4
This shows that the willingness level of IHBs are high and they are happy to buy Super cement
but awareness level is still need to be increased
This can be increased through more number of meets for IHBs
*Other Insights*
We have Kutumb Card for contractors where they get double points for a bag of Super cement
and get gifts on yearly basis. We should launch a privilege card for our dealer with point based
system and at the end of the year dealers who achieve a specific targeted point swill get
gold/Pantaloons voucher/Idea schemes for an year et. This will give motivation to the dealers
for the extra effort
b. Pamphlets showing the advantages of super should be available at the counters and
with UltraTech staff
As per our discussion above we need to put pamphlets or better would be small posters which
explains the benefits of Super Cement. This will be helpful for the dealers to attract customers.
c. Advertisement
Since most of them feel that advertisement of Super is necessary to create the demanding the
market, we can put sample bags of Super as a display at each counter/ balloon bag would be
better, and this will create visibility at the counter
d. Availability of product at each counter is very important which will make them sell
that product
We need to make sure that dealers have Super in their godown so that they make sure to put
effort and increase the customer base
In today’s world everything works on reviews and feedbacks, even in cement industry we see
that rural areas have better percentage sale of Super and the major reason is that the people
give reviews and suggest other people. So, we should have review meets where people who
have used can share their experience
Also, on the website, feedbacks of Super should be shared which can help IHBs to know and
decide
As discussed, we need on focus more on IHB and make them aware of Super and its benefits.
For that IHB meets are very helpful and site visits. IF we can increase these two actives
rigorously this can increase the sale of Super
We always say “Ask the expert”, but when it comes to cement very less people bother to call an
expert. Since, dealers are less motivated to explain about the details of Super upfront, we can
force them to do so by putting a poster which emotionally say “Ask the dealer”, if customers
looking at it asks the dealers about Super cement upfront, then the dealers will have to explain
them in detail. A sample poster is displayed in Fig 21
h. Website
Website of UltraTech Cement doesn’t say anything about Super Cement. While explaining
about the product range they say about premium cement but doesn’t mention Super Cement,
this can be confusing for the customer. So, details of Super should be there on the website
since we are targeting IHBs and its an usual tendency of customers to check it online
i. Feedbacks mentioned on the website
Feedback of valued customer can be shared on the website with some hashtag, example :
#gharkibaat , where valued customers will share their experience. This can be done when
our staff will meet IHBs on site or meets, they can always ask them for an honest feedback
Fig 21
References
Government Publication
Ministry of Commerce and Industry, Government of India, Union Budget ( 2018-2019), Indian
Cement Sector Analysis ( Feb 2017 - March 2018)
Articles
“Use of Portland Pozzolana Cement to Enhance the Service Life of Reinforced Concrete Exposed
to Chloride Attack” by Bhaskar Sangoju; Radhakrishna G. Pillai2; Ravindra Gettu3; B. H.
Bharatkumar and Nagesh R. Iyer (2015
Leading factors affecting buying decision making in a mobile business market- Ville Kemppi
(2016)
Websites
https://www.ultratechcement.com/
https://www.adityabirla.com/
https://www.ibef.org/industry/cement-presentation
https://www.ibef.org/news/cement-companies-on-a-capacity-expansion-spree-price-rise-
uncertain
https://www.mckinsey.com/industries/chemicals/our-insights/the-cement-industry-at-a-
turning-point-a-path-toward-value-creation
https://www.emis.com/sites/default/files/EMIS%20Insight%20-
%20India%20Cement%20Production%20Report.pdf
https://www.ambujacement.com/
https://www.thebalancesmb.com/market-research-101-data-analysis-2296676
Annexure
Dealer’s Questionnaire
1. Please select from the below options which is most appropriate for you:
a. Dealer
b. Contractor
c. Mason
d. House Owner
e. Others
a. 0-3 years
b. 3-6 years
c. More than 6 years
a. 20-30 years
b. 31-40 years
c. 41-50 years
d. More than 50 years
a. TV Advertisement
b. Newspaper
c. Hoarding
d. Dealer
e. Contractor
f. Friends/Relatives
g. UltraTech Team
h. Others
6. How many tonnes on an average per month do you sell of UltraTech Cement from your
counter? (last year figure)
a. 0-50 tonnes
b. 51-100 tonnes
c. 101-150 tonnes
d. 151-200 tonnes
e. More than 200 tonnes
7. Approximately what percent of your total sales per month is of UltraTech Super
Cement?
a. 0-2%
b. 3-5%
c. 6-8%
d. 9-11%
e. more than 11%
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
9. Please mention one reason except price, which could be the major reason behind less
sales of UltraTech Super:
a. Contractor
b. Engineer/Architect
c. Mason/labour
d. Independent House Builder
e. Others
11. Does your customer take your advice before buying any cement?
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
12. Whom do you think are the decision maker while buying the cement?
a. Contractor
b. Labour
c. IHB/Owner
d. Others
13. According to you rate the factors affecting the purchase of cement (Rate them 1-5, 5
being the highest)
Price
Brand image
Credit limit
Strength
Durability
Premium quality
Delivery system
Others
14. Do you take that effort to explain the details about advantages of UltraTech Super
Cement?
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
15. How would you rate the incentives given to the dealers presently by UltraTech Cement?
a. Very good
b. Good
c. Neither good nor bad
d. Bad
e. Very bad
16. Please rate how much you agree or disagree with incentivizing for selling more of
UltraTech Super to the dealers will create more sales for UltraTech Super Cement?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
17. Please rate how much you agree or disagree that advertising of Super Cement done by
the company is helpful in creating broader customer base?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
18. What do you think from the below can play a major role in increasing the sales of super?
(Rate them 1-4, 4 being the highest)
a. Advertising campaign
b. Proper display in the counters explaining the advantages
c. Incentivizing dealers
d. Creating schemes for contractors
e. Others
19. Please rate how much you agree or disagree that customers are happy to pay an extra
price for cement if they get premium quality?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
20. Please rate how much you agree or disagree that customer/end users nowadays get
involved in buying of cement?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
21. Please rate how much you agree or disagree that people consider, buying a particular
cement brand affects their identity so they want to go for a premium brand?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
22. Please rate how much you agree or disagree that e-Kutumb scheme is a successful
measure to attract contractors?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree
e. Strongly disagree
23. Please rate how satisfied are you with the current advertising activities of UltraTech
Cement:
a. Very satisfied
b. Satisfied
c. Neutral
d. Unsatisfied
e. Very unsatisfied
24. Please mention if you feel anything else except price that is required to change to
increase the sales of UltraTech Super:
Contractor’s Questionnaire
2. Which cement brand do you prefer? (tick any two with preference)
a. UltraTech Cement
b. Ambuja Cement
c. JK Laxmi Cement
d. Hathi Cement
e. Others
a. Yes
b. No
4. Rate what do you consider the most and the least important factor while buying a
cement (Rate them 1-5, 5 being the highest)
Price
Brand image
Credit limit
Strength
Durability
Premium quality
Delivery system
Others
5. Which of the following factor is more important for you while buying Cement?
a. Strength
b. Durability
c. Early Setting time
d. None of the above
a. OPC
b. PPC
c. Premium
d. Other
a. Yes
b. No
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
9. Do you ever get suggestions/demands to use a specific brand of cement from your
customer?
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
10. Do you ever get suggestions/demands to use a specific type of cement from your
customer?
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
11. Do you change your preferred cement brand if your customers ask to use a specific
brand?
f. Always
g. Often
h. Sometimes
i. Seldom
j. Never
12. Do you change your preferred cement type if your customers ask to use a specific type?
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
13. Do you think customer nowadays are ready to spend more for added quality /premium
products?
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
14. When you go to the dealer to buy cement do they ask you the purpose for which you’re
buying?
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
15. When you go to purchase cement do the dealers explain about UltraTech Super Cement
and its advantages?
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
17. Are you aware of the benefits of buying Super cement for your Kutumb card?
a. Yes
b. No
18. Do you attend contractors meet?
a. Always
b. Often
c. Sometimes
d. Seldom
e. Never
IHB Questionnaire
Why_______________________________?
11. Would you like to spend extra for the advantages of a premium product?
12. Have you used Super cement?
13. Which phone/car do you use?
14. How would you rate the marketing and advertising activities of UltraTech Super
cement? (1-5)
15. When you buy a cement what do you consider the most important factor?