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STUDY ON CUSTOMER INCLINATION TOWARDS SEGMENTATION

OF CEMENT PRODUCTS WITH REFERENCE TO ULTRATECH


CEMENT LTD

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S.NO CHAPTERS PAGE NO

ABSTRACT 7
LIST OF TABLES 8
LIST OF CHARTS 9

CHAPTER -1: INTRODUCTION

1.1 INTRODUCTION 10
1.2 INDUSTRY PROFILE 14
1.3 COMPANY PROFILE 31
1.4 PRODUCT PROFILE 36

CHAPTER – 2: DEVELOPMENT OF MAIN THEME

2.1 NEED OF THE STUDY 40


2.2 OBJECTIVES OF THE STUDY 42
2.3 SCOPE OF THE STUDY 44
2.4 LIMITATIONS OF THE STUDY 46
2.5 LITERATURE REVIEW 48

CHAPTER-3: ANALYSIS AND INTERPRETATION

3.1 RESEARCH METHODOLOGY 62


3.2 ANALYSIS AND INTERPRETATIONS 69
3.3 FINDINGS 119
3.4 SUGGESTIONS 122
3.5 CONCLUSIONS 124
APPENDIX 126
BIBLIOGRAPHY 131

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ABSTRACT

It is a general phenomenon that buyers in same market seek products for broadly the
same function, but different buyers have different evaluative criteria about what constitute the
right choice of performing the function. As a consequence different offering will attract different
buyers.

A market segment is explained to mean homogeneous group consisting of buyers who


seek the same offering. In other words Market Segmentation may be defined, as the division of
the market in to groups of segments having similar wants. But wants must be interpreted very
broadly, broader than products characteristics only. Segment may differ also in their needs for
information, reassurance, technical support, service, promotion, distribution and host of other
non-products benefits that are part of their purchases; they may also differ in their capacity for
these differences.

This project is “A study on Customer Inclination towards segmentation of cement


products with reference to UltraTech Cement Ltd.” focuses on study of inclination of the
customer towards cement products from the dealer’s perception. The project was carried out in
the market in Chennai. Survey was taken across rural areas in the city of Chennai amongst
selected dealers and sub-dealers, visiting nearly 95 shops, and data collected by way of
questionnaire.

For the study the research design that is followed is Descriptive research. The study
includes different types of statistical tools such as Interval Estimation, Chi square, Arithmetic
Mean, Weighted Average and Percentage analysis based on this is findings and suggestions are
given by the researcher.

While doing the project attempt was made to collect maximum information about the
market. Large numbers of retailers were visited to get the actual picture of the market.

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PAGE
S.NO TABLE NAME
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3.2.1 YEARS OF EXPERIENCE 69
3.2.2 BRAND MOSTLY DEALT IN SHOPS 71
FACTORS THAT GREATLY INFLUENCE PURCHASE OF
3.2.3 73
CEMENT PRODUCTS
3.2.4 PURCHASING BEHAVIOUR OF CUSTOMERS 75

3.2.5 MOST INFLUENCING FACTORS IN CEMENT PURCHASE 77


PERFORMANCE OF ULTRATECH CEMENT WITH RESPECT TO
3.2.6 80
VARIOUS ATTRIBUTES
3.2.7 BRANDS MOSTLY PREFERRED BY THE CUSTOMERS 83

3.2.7.1 TABLE SHOWING WEIGHTED AVERAGE 84

3.2.8 CATEGORY OF THE CUSTOMERS USING CEMENT PRODUCTS 87

3.2.9 TYPE OF BUYERS 89

3.2.10 THE REGULAR TYPES OF CUSTOMERS 91

3.2.11 MOST PREFERRED SEGMENT FOR ULTRATECH CEMENT 93


3.2.12 IMPACT OF THE CEMENT INDUSTRY DUE TO RECESSION 95
3.2.13 BRAND SUGGESTED BY DEALERS 97
REASON FOR RECOMMENDING A PARTICULAR BRAND TO
3.2.14 99
CUSTOMERS
3.2.15 AVERAGE SALES OF ULTRATECH CEMENT 101
INCREASE OF DEMAND FOR ULTRATECH CEMENT OVER A
3.2.16 104
PERIOD OF TIME
3.2.17 COMPETITVE SCENARIO OF ULTRATECH CEMENT 106
3.2.18 MEASUES TAKEN FOR MASS PUBLICITY 109
3.2.18.1 TABLE SHOWING THE WEIGHTED AVERAGE 111
FACTORS OF VITAL IMPORTANCE AS PER THE DEALER’S
3.2.19 113
PERCEPTION

3.2.20 COMPLAINTS ABOUT ULTRATECH CEMENT PRODUCTS 115

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PAGE
S.NO CHART NAME
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3.2.1 YEARS OF EXPERIENCE 70

3.2.2 BRAND MOSTLY DEALT IN SHOPS 72


FACTORS THAT GREATLY INFLUENCE PURCHASE OF
3.2.3 74
CEMENT PRODUCTS
3.2.5 MOST INFLUENCING FACTORS IN CEMENT PURCHASE 78
PERFORMANCE OF ULTRATECH CEMENT WITH RESPECT
3.2.6 82
TO VARIOUS ATTRIBUTES
3.2.7 BRANDS MOSTLY PREFERRED BY THE CUSTOMERS 85
CATEGORY OF THE CUSTOMERS USING CEMENT
3.2.8 88
PRODUCTS
3.2.9 TYPE OF BUYERS 90

3.2.10 REGULAR TYPES OF CUSTOMERS 92

3.2.11 MOST PREFERRED SEGMENT FOR ULTRATECH CEMENT 94

3.2.12 IMPACT OF THE CEMENT INDUSTRY DUE TO RECESSION 96

3.2.13 BRAND SUGGESTED BY DEALERS 98


REASON FOR RECOMMENDING A PARTICULAR BRAND TO
3.2.14 100
CUSTOMERS
3.2.15 AVERAGE SALES OF ULTRATECH CEMENT 102
INCREASE OF DEMAND FOR ULTRATECH CEMENT OVER A
3.2.16 105
PERIOD OF TIME
3.2.17 COMPETITVE SCENARIO OF ULTRATECH CEMENT 107

3.2.18 MEASUES TAKEN FOR MASS PUBLICITY 110


FACTORS OF VITAL IMPORTANCE AS PER THE DEALER’S
3.2.19 114
PERCEPTION

3.2.20 COMPLAINTS ABOUT ULTRATECH CEMENT PRODUCTS 116

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1.1 INTRODUCTION

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Cement is a binder which sets and hardens independently, and can bind other materials
together. The word "cement" traces to the Romans, who used the term "opus caementicium" to
describe masonry which resembled concrete and was made from crushed rock with burnt lime as
binder. Cement is an essential component of infrastructure development and most important
input of construction industry, particularly in the government’s infrastructure and housing
programs, which are necessary for the country’s socioeconomic growth and development.

Cement ranks second in volume among the industrial products manufactured in the
world. And it is the most widely used man-made product and second only to water as world’s
most heavily consumed substance. Cement is poly-phased inorganic compound of complex
nature formed by burning of calcareous and argillaceous raw materials as a binding material.
Cement is used as a binding material in various types of civil constructions. Earlier, clay or lime
was used for binding materials together. Its properties include Low cost, high performance
Binder with almost any hard material Building block Gain strength progressively with ageing
Substitutes with steel, polyester, epoxy-resin, plasticizers

With advancement in manufacturing technology, today cement is a completely technical


product. Various types of grades of cement are being manufactured to satisfy different needs of
the construction industry. However, cement is still considered as a non-technical product and
used in a traditional and often unscientific manner. Compressive strength is the important known
parameter for approving the quality of cement. Strength of cement is also affected by water-
cement ratio, grading of aggregates, methods of preparation, methods of compaction, curing
conditions and atmospheric conditions.

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.

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This survey is taken on behalf UltraTech cements ltd, to understand the various factors
that enable the brand to be popular and a preferred one. This survey was carried among the
dealers in Chennai city, to get an unbiased data the survey was taken in general without
specifying the UltraTech cements ltd.

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1.2 INDUSTRY PROFILE

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The cement industry is one of the main beneficiaries of the infrastructure boom. With
robust demand and adequate supply, the industry has bright future. The Indian Cement Industry
with total capacity of 165 million tones is the second largest after China. Cement industry is
dominated by 20 companies who account for over 70% of the market. Individually no company
accounts for over 12% of the market. The major players like L&T and ACC have been quiet
successful in narrowing the gap between demand and supply. Private housing sector is the major
consumer of cement (53%) followed by the government infrastructure sector. Similarly northern
and southern region consume around 20%-30% cement while the central and western region are
consuming only 18%-16%. India is the 2nd largest cement producer in world after china .Right
from laying concrete bricks of economy to waving fly over’s cement industry has shown and
shows a great future. The overall outlook for the industry shows significant growth on the back
of robust demand from housing construction, Phase-II of NHDP (National Highway
Development Project) and other infrastructure development projects. Domestic demand for
cement has been increasing at a fast pace in India. Cement consumption in India is forecasted to
grow by over 22% by 2009-10 from 200708.Among the states, Maharashtra has the highest share
in consumption at 12.18%,followed by Uttar Pradesh, In production terms, Andhra Pradesh is
leading with 14.72% of total production followed by Rajasthan. Cement production grew at the
rate of 9.1 per cent during 2006-07 over the previous fiscal's total production of 147.8 mt
(million tons). Due to rising demand of cement the sales volume of cement companies are also
increasing & companies reporting higher production, higher sales and higher profits. The net
profit growth rate of cement firms was 85%. Cement industry has contributed around 8% to the
economic development of India. Outsiders (foreign players) eyeing India as a major market to
invest in the form of either merger or FDI (Foreign Direct Investment). Cement industry has a
long way to go as Indian economy is poised to grow because of being on verge of development.
The company continues to emphasize on reduction of costs through enhanced productivity,
reduction in energy costs and logistics expenses. The cement sector is expected to witness
growth in line with the economic growth because of the strong co-relation with GDP.
As per the Working Group report on Cement Industry for the formulation of the 11th
Plan, the cement demand is likely to grow at 11.5 per cent per annum during the 11th Plan and

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cement production and capacity by the end of the 11th Plan are estimated to be 269 million tones
and 298 million tones, respectively, with capacity utilization of 90 per cent.
Despite the growth of Indian cement industry India lags behind the per capita
production. Supply for cement is expected to remain tight which, in turn, will push up prices of
cement by more than 50%. The most important factor for better prices is consolidation of the
industry. It has just begun and we will see more consolidation in the coming years. Other budget
measures such as cut in import duty from 12.5 per cent to nil etc. are all intended to cut costs and
boost availability of cement. Sadly the adverse effects of global slowdown have not speared this
industry too. Demand is sluggish, the government is keeping an eagle eye on prizes, domestic
coal and pet coke, prizes have increased sharply and utilizations rates are down. The numbers
coming out are a reflection of grim times. ACC the country’s largest cement company that’s
controlled by Swiss giant HOLCIM, registered 2% fall in august sales. It is the biggest fall since
Feb 2007. Production fell by 5%. To stand against the problematic situation, government as well
as cement industry has taken some steps. Companies are focusing on cost of transportation. One
of the strategy is to decrease dependence on road & opt for sea logistics as that can cut
transportation cost by 30- 50 %. Some plants are adopting futuristic plan such as setting up
captive power plant, moving closer to the customers by creating clicker, crushing, and capacity
in key markets, to be more customer centric to generate better revenue. India should push for
stricter regulations of market place as to control the prices of big companies and prevent them
from forming cartels and exchanging information. To fight with the high inflation, government
wants to import more cement from Pakistan .However cement prizes are not very much high as
other items but still they are increasing. And the reason of high prize is surging cost of raw
material and transportation cost. Apart from this government also discussed with cement industry
not to have increase in prizes and keep consumer interest in mind. Now the question arise in
front of the government is whether the demand by the government is possible to increase through
expenditure on infrastructure or not according to the current state of economy when so many
crises are going on or how the government allocation of US$ 3.23 billion for the National
Highway Development, Project will keep the demand for cement alive? And to what extent the
prizes of cement should be increase so that consumer can’t affect. Cement industry in India has
also made tremendous strides in technological up gradation and assimilation of latest technology.
Presently, 93 per cent of the total capacity in the industry is based on modern and environment-

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friendly dry process technology. The induction of advanced technology has helped the industry
immensely to conserve energy and fuel and to save materials substantially. Indian cement
industry has also acquired technical capability to produce different types of cement like Ordinary
Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement
(PBFS), Oil Well Cement, and Rapid Hardening
Portland cement, Sulphate Resisting Portland Cement, White Cement etc. Some of the
major clusters of cement industry in India are: Satna (Madhya Pradesh), Chandrapur
(Maharashtra), Gulbarga (Karnataka), Yerranguntla (Andhra Pradesh), Nalgonda (Andhra
Pradesh), Bilaspur (Chattisgarh), and Chandoria (Rajasthan).
Future drivers of cement demand growth in India would be the road and housing projects.

2. CURRENT SCENARIO
The Indian cement industry is the second largest producer of quality cement, which meets
global standards. The cement industry comprises 130 large cement plants and more than 300
mini cement plants. The industry's capacity at the end of the year reached 188.97 million tons
which was 166.73 million tons at the end of the year 2006-07. Cement production during April to
March 2007-08 was 168.31 million tons as compared to 155.66 million tons during the same
period for the year 200607.Despatches were 167.67 million tons during April to March 2007- 08
whereas 155.26 during the same period. During April-March 2007-08, cement export was 3.65
million tons as compared to 5.89 during the same period. Cement industry in India is currently
going through a consolidation phase. Some examples of consolidation in the Indian cement
industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF
Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement
and Sri Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian Rayon's
cement division, and Sri Digvijay Cements. Foreign cement companies are also picking up
stakes in large Indian cement companies. Swiss cement major Holcim has picked up 14.8 per
cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to
the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat
Ambuja Cements combine and the Aditya Birla group through Grasim Industries and Ultratech
Cement. Lafarge, the French cement major has acquired the cement plants of Raymond and
Tisco. Italy based Italcementi has acquired a stake in the K.K. Birla promoted Zuari Industries'

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cement plant in Andhra Pradesh, and German cement company Heidelberg Cement has entered
into an equal joint-venture agreement with S P Lohia Group controlled IndoRama Cement.

3. PROCESS TECHNOLOGY
While adding fresh capacities, the cement manufacturers are very conscious of the
technology used. In cement production, raw materials preparation involves primary and
secondary crushing of the quarried material, drying the material (for use in the dry process) or
undertaking a further raw grinding through either wet or dry processes, and blending the
materials. Clinker production is the most energyintensive step, accounting for about 80% of the
energy used in cement Production. Produced by burning a mixture of materials, mainly
limestone, silicon oxides, aluminum, and iron oxides, clinker is made by one of two production
processes: wet or dry; these terms refer to the grinding processes although other configurations
and mixed forms (semi-wet, semi-dry) exist for both types. In the dry process, the raw materials
are ground, mixed, and fed into the kiln in their dry state. In the wet process, the crushed and
proportioned materials are ground with water, mixed, and fed into the kiln in the form of slurry.
Different types of cement that are produced in India are:
• Ordinary Portland cement (OPC): OPC, popularly known as grey cement, has 95 per
cent clinker and 5 per cent gypsum and other materials. It accounts for 70 per cent of the total
consumption.
• Portland Pozzolana Cement (PPC): PPC has 80 per cent clinker, 15 per cent pozzolana
and 5 per cent gypsum and accounts for 18 per cent of the total cement consumption. It is
manufactured because it uses fly ash/burnt clay/coal waste as the main ingredient.
• White Cement: White cement is basically OPC - clinker using fuel oil (instead of coal)
with iron oxide content below 0.4 per cent to ensure whiteness. A special cooling technique is
used in its production. It is used to enhance aesthetic value in tiles and flooring. White cement is
much more expensive than grey cement.
• Portland Blast Furnace Slag Cement (PBFSC): PBFSC consists of 45 per cent clinker,
50 per cent blast furnace slag and 5 per cent gypsum and accounts for 10 per cent of the total
cement consumed. It has a heat of hydration even lower than PPC and is generally used in the
construction of dams and similar massive constructions.

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• Specialized Cement: Oil Well Cement is made from clinker with special additives to
prevent any porosity.
• Rapid Hardening Portland cement: Rapid Hardening Portland Cement is similar to
OPC, except that it is ground much finer, so that on casting, the compressible strength increases
rapidly.
• Water Proof Cement: Water Proof Cement is similar to OPC, with a small portion of
calcium stearate or non- saponifibale oil to impart waterproofing properties.

4. PROCEDURE
The main raw materials used in the cement manufacturing process are limestone, sand,
shale, clay, and iron ore. The main material, limestone, is usually mined on site while the other
minor materials may be mined either on site or in nearby quarries. Another source of raw
materials is industrial by-products. The use of byproduct materials to replace natural raw
materials is a key element in achieving sustainable development. Raw Material Preparation
mining of limestone requires the use of drilling and blasting techniques. The blasting techniques
use the latest technology to insure vibration, dust, and noise emissions are kept at a minimum.
Blasting produces materials in a wide range of sizes from approximately 1.5 meters in diameter
to small particles less than a few millimeters in diameter. Material is loaded at the blasting face
into trucks for transportation to the crushing plant. Through a series of crushers and screens, the
limestone is reduced to a size less than 100 mm and stored until required. Depending on size, the
minor materials (sand, shale, clay, and iron ore) may or may not be crushed before being stored
in separate areas until required. Raw Grinding In the wet process, each raw material is
proportioned to meet a desired chemical composition and fed to a rotating ball mill with water.
The raw materials are ground to a size where the majority of the materials are less than 75
microns. Materials exiting the mill are called "slurry" and have flowability characteristics. This
slurry is pumped to blending tanks and homogenized to insure the chemical composition of the
slurry is correct. Following the homogenization process, the slurry is stored in tanks until
required. In the dry process, each raw material is proportioned to meet a desired chemical
composition and fed to either a rotating ball mill or vertical roller mill. The raw materials are
dried with waste process gases and ground to a size where the majority of the materials are less
than 75 microns. The dry materials exiting either type of mill are called "kiln feed". The kiln feed

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is pneumatically blended to insure the chemical composition of the kiln feed is well
homogenized and then stored in silos until required.

The rotary kiln discharges the red-hot clinker under the intense flame into a clinker
cooler. The clinker cooler recovers heat from the clinker and returns the heat to the
pyroprocessing system thus reducing fuel consumption and improving energy efficiency. Clinker
leaving the clinker cooler is at a temperature conducive to being handled on standard conveying
equipment. Finish Grinding and Distribution the black, nodular clinker is stored on site in silos
or clinker domes until needed for cement production. Clinker, gypsum, and other process
additions are ground together in ball mills to form the final cement products. Fineness of the
final products, amount of gypsum added, and the amount of process additions added are all
varied to develop a desired performance in each of the final cement products. Each cement
product is stored in an individual bulk silo until needed by the customer. Bulk cement can be
distributed in bulk by truck, rail, or water depending on the customer's needs. Cement can also be
packaged with or without color addition and distributed by truck or rail.

5. DEMAND & SUPPLY

The demand drivers for the cement sector continue to be housing, infrastructure and
commercial construction, etc. We expect the proportion of infrastructure in total demand to
improve further in future, as the thrust on infrastructure development is on the rise. During April-
November 2007, cement demand grew by 10 per cent yearon-year (y-o-y) propelled by the
growth witnessed in end user segments such as housing, infrastructure etc. CRISIL Research
expects demand to remain strong and grow by over 12 per cent in the next 2 years. Cement
demand is expected to outstrip supply for the next year and a half as no major capacities are
coming onstream, thus providing enough flexibility to cement manufacturers to further hike the
prices. Today, cement from Andhra is going all over India, including Assam, Meghalaya,
Jharkhand, Orissa, West Bengal, Chattisgarh, Gujarat and Maharashtra. More cement is likely to
flow into Tamil Nadu from the state in view of cut in sales tax. Any further increase in demand
in the South India will benefit the cement industry here. Cement movement from Gujarat to
Mumbai is also coming down due to exports while cement movement from Orissa into Andhra

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has stopped and, in fact, cement is flowing into Orissa as well. Earlier in 2006-07, the housing
sector alone consumed 65 per cent of the total domestic consumption. With the launch of several
infrastructure projects, the housing consumption may come down to 55 per cent as the
infrastructure and other sectors are expected to move up to 45 per cent from the present 35 per
cent. Still, the main sector of consumption continues to be housing, including commercial space,
occupying more than 60 per cent. The current demand in the state for 200506 is expected to cross
15 million tons (11.5 million tons). We expect the demand here to go past the 17.5-million mark
in 2006-07 in view of irrigation and infrastructure projects being taken up in the state. Weaker
sections’ housing, construction of public toilets, schools in rural areas apart from several private
and public infrastructure projects will also give tremendous boost to the cement consumption in
the state. Most importantly, irrigation projects, worth nearly Rs 1 lakh crore, will trigger
unprecedented demand for the next 5-7 years. Cement consumptions are as follows:

6. DEMAND DRIVERS
Indian cement demand skewed towards housing the demand from the housing sector is
~53% of the total Indian cement demand. There are fears of a slowdown in the demand from the
housing sector due to a drop in real estate prices in the country. The worry is that builders may
postpone construction of new buildings if the property prices were to correct. Infrastructure to
give demand a big boost our analysis shows that Infrastructure should be the biggest growth
driver for cement demand in the country. If we were to look only at order books of the top eight
construction and manufacturing equipment companies in India, we find that their combined order
book has virtually doubled over the last two years from INR1,000bn (USD25bn) to INR1,950bn
(USD48.75bn) for completion over the next 24-30 months.

7. COST
Over the past five years, cost of cement production has grown at a CAGR of 8.4%. Also,
the producers have been able to pass on the hike in cost to consumers on the back of increased
demand. Average realizations have increased from Rs. 1,880 per tonne in FY 03 to Rs. 3,133 per
tons in FY 07, at a CAGR of 13.6%, which has been reflected in higher profit margins of the
industry. To reduce the cost of production, the industry has focused on captive power generation.
Proportion of cement production through captive power route has increased over the years. Also,

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cement movement by rail has increased over the years. Freight and energy costs are also
increasing; however, in the current market scenario, manufacturers have the flexibility to pass on
the increase in costs to end consumers. Let us have a look at the cost factors affecting the cement
industry Capacity Utilization: Since the industry operates on fixed cost, higher the capacity sold,
the wider the cost distributed on the same base. But one should also keep in mind, that there have
been instances wherein despite a healthy capacity utilization, margins have fallen due to lower
realizations. Power: The cement industry is energy intensive in nature and thus power costs form
the most critical cost component in cement manufacturing (about 30% to total expenses). Most
of the companies resort to captive power plants in order to reduce power costs, as this source is
cheaper and results in uninterrupted supply of power. Therefore, higher the captive power
consumption of the company, the better it is for the company. Freight: Since cement is a bulk
commodity, transporting is a costly affair (over 15%). Companies, which have plants located
closer to the markets as well as to the source of raw materials have an advantage over their peers,
as this leads to lower freight costs. Also, plants located in coastal belts find it much cheaper to
transport cement by the sea route in order to cater to the coastal markets such as Mumbai and the
states of Gujarat and Tamil Nadu. On account of sufficient reserves of raw materials such as
limestone and gypsum, the raw material costs are generally lower than freight and power costs in
the cement industry. Excise duties imposed by the government and labor wages are among the
other important cost components involved in the manufacturing of cement. Operating margins:
The company should have a consistent record of outperforming its peers on the operational
performance front i.e. it should have higher operating margins than its competitors in the
industry. Factors such as captive power plants, effective capacity utilization results in higher
operating margins and therefore these factors should be looked into. Since cement is a regional
play on account of its high freight costs, the company should not have all its plants concentrated
in one region. It should have a geographical spread so that adverse market conditions in one
region can be mitigated by high growth in the other region 8.

Government Policies

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Government policies have affected the growth of cement plants in India in various stages.
The control on cement for a long time and then partial decontrol and then total decontrol has
contributed to the gradual opening up of the market for cement producers. The stages of growth
of the cement industry can be best described in the following stages: Price and Distribution
Controls (1940-1981) During the Second World War, cement was declared as an essential
commodity under the Defense of India Rules and was brought under price and distribution
controls which resulted in sluggish growth. The installed capacity reached only 27.9 MT by the
year 1980-81. Partial Decontrol (1982-1988) In February 1982, partial decontrol was announced.
Under this scheme, levy cement quota was fixed for the units and the balance could be sold in
the open market. This resulted in extensive modernization and expansion drive, which can be
seen from the increase in the installed capacity to 59MT in 1988-89 in comparison with the
figure of a mere 27.9MT in 1980-81, an increase of almost 111%. Total Decontrol (1989) in the
year 1989, total decontrol of the cement industry was announced. By decontrolling the cement
industry, the government relaxed the forces of demand and supply. In the next two years, the
industry enjoyed a boom in sales and profits. By 1992, the pace of overall economic
liberalization had peaked; ironically, however, the economy slipped into recession taking the
cement industry down with it. For 1992-93, the industry remained stagnant with no addition to
existing capacity. Government Controls The prices that primarily control the price of cement are
coal, power tariffs, railway, freight, royalty and cess on limestone. Interestingly, all of these
prices are controlled by government

9. REQUIREMENTS
Coal the consumption of coal in a typically dry process system ranges from 20-25% of
clinker production. This means for per ton clinker produced 0.20-0.25 ton of coal is consumed.
This contributes 35-40% of the production cost. The cement industry consumes about 10mn tons
of coal annually. Since coalfields like BCCL supply a poor quality of coal, NCL and CCL the
industry has to blend high-grade coal with it. The Indian coal has a low calorific value (3,500-
4,000 kcal/kg) with ash content as high as 25-30% compared to imported coal of high calorific
value (7,000-8,000 kcal/kg) with low ash content 6-7%. Lignite is also used as a fuel by blending
it with coal. However this process is not very common. Electricity Cement industry consumes
about 5.5bn units of electricity annually while one ton of cement approximately requires 120-130

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units of electricity. Power tariffs vary according to the location of the plant and on the production
process. The state governments supply this input and hence plants in different states shall have
different power tariffs. Another major hindrance to the industry is severe power cuts. Most of the
cement producing states like AP, MP experience power cuts to the tune of 25-30% every year
causing substantial production loss. Infrastructure to reduce uncertainty relating to power, most
of the leading companies like ACC, Indian Rayon, and Grasim rely on captive power plants. A
few companies are also considering power-generating windmills. Limestone this constitutes the
largest bulk in terms of input to cement. For producing one ton of cement, approximately 1.6 ton
of limestone is required. Therefore, the cement plant location is determined by the location of
limestone mines. The major cash outflow takes place in way of royalty payment to the central
government and cess on royalties levied by the state government. The total limestone deposit in
the country is estimated to be 90 billion tons. AP has the largest share -- 34%, Karnataka 13%,
Gujarat 13%, M.P 8%, and Rajasthan 6.5%. The plants near the limestone deposit pay less
transportation cost than others.
Transportation Cement is mostly packed in paper bags now. It is then transported either
by rail or road. Road transportation beyond 200 kms is not economical therefore about 55%
cement is being moved by the railways. There is also the problem of inadequate availability of
wagons especially on western railways and southeastern railways.
Under this scenario, manufacturers are looking for sea routes, this being not only cheap
but also reducing the losses in transit. Today, 70% of the cement movement worldwide is by sea
compared to 1% in India. However, the scenario is changing with most of the big players like
L&T, ACC and Grasim having set up their bulk terminals.
Infrastructure for Future The consumption of cement is determined by factors influencing
the level of housing and industrial construction, irrigation projects, and roads and laying of water
supply and drainage pipes etc. The level and growth of GDP and its sectoral composition, capital
formation, development expenditure, growth in population, level of urbanization, etc, in turn,
determine these factors. But the domestic demand for cement is mainly from the housing
activities and infrastructure development. The government paved the way for the entry of the
private sector in road projects. It has amended the National Highway Act to allow private toll
collection and identified projects, bridges, expressways and big passes for private construction.
The budget gave substantial incentives to private sector construction companies. Ongoing

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liberalization will lead to an increase in industrial activities and infrastructure development. So it
is hoped that Indian cement industry shall boom again in near future. Incentives in States Most
state governments, in order to attract investments in their respective states, offer fiscal incentives
in the form of sales tax exemptions/deferrals. In some states, this applies only to intrastate sales,
like Madhya Pradesh and Rajasthan. States like Haryana offer a freeze on power tariff for 5
years, while Gujarat offers exemption from electric duty. Installed Capacity India is the world’s
second largest cement producing country after China. The industry is characterized by a high
degree of fragmentation that has created intense competitive pressure on price realizations.
Spread across the length and breadth of the country, there are 120 large plants belonging to 56
companies with an installed capacity of around 135mn tons as on March 2002.

10. OPPORTUNITIES, THREATS, RISKS AND CONCERNS

The cement industry is going through its boom period with full capacity utilization.
Powered by the GDP growth of 8-9%, the annual demand for cement in the country continues to
grow at 8- 10%. As per NCAER study, under high growth scenario, the demand for cement
(including exports) is expected to increase to 244.82 million tonnes by 2010-11. As per the
study, the demand is expected to be much higher at 311.37 million tonnes, if the optimistic
projections of the road and the housing sectors are met. The industry has responded to this with
substantial new capacity announcements. The materialization of these capacities, however, is
likely to be delayed due to a number of factors including timely delivery of equipment and
construction of the plant due to the heavy order book position of the suppliers. It is expected that
demand growth will outstrip supply till the materialization of such new capacities. However, the
current high level of international crude prices and its impact on the domestic prices of
petroleum products is likely to make a dent in the profitability but its impact will have to be seen
depending upon the ability of the economy to pass on such cost increase to the consumer. While
the freight cost could be optimized on the imported coal through usage of company’s own ships
for part of the quantity, the international prices of imported coal and its volatility together with
the strengthening of the dollar against rupee could derail this. This could impact the delivery
prices of imported coal and also the cost of production. The Government has taken steps to
increase the availability of indigenous coal for its expanded capacity across various plants which

21
can mitigate the impact of such high cost of imported coal for the plants located near the coal
fields in India.
The Government’s continuing efforts to rein in cement prices by freeing imports and
banning exports could artificially disable the normal market price mechanisms for determining
the price. The rise in the price of cement is because of the gap of demand & supply in the market.
The demand for cement is much higher than its actual supply. But with the production
maximization, which can be encountered in next few years, this gap may narrow down, that may
ensure the market to be in equilibrium. Decreasing per capita consumption doesn’t affect the
total consumption for the cement. It means the infrastructure; contacted housing is using the bulk
of the production.
In spite of High price of the product, the hick of demand because of the increasing rate of
infrastructural development. Domestic price of cement is rising as well as the imported cement
price is lowering. So altogether the supply of the cement, which is affordable, will increase. This
may in decrease the gap between supply and demand. Major Demand was from the housing
sector, which may shift to infrastructure as lots of infrastructural development processes has
already being taken up & due to the increased price, housing segment started showing a
slowdown.

CEMENT- Major Players

ACC LIMITED
Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete
technology. A prominent overseas presence and figuring on the elite list of consumer super
brands of India but most importantly ACC has been amongst the first Indian companies to make
environmental protection, it is a cornerstone of its corporate objectives. The historic merger of
ten existing cement companies led to the establishment of ACC – melding into a cohesive
organization in the year 1936 at Maharashtra. It’s a big company in cement manufacturing and
offers the services of Ready mixed concrete and Consultancy service. This company is listed by
Bombay Stock Exchange, National Stock Exchange and in London Stock Exchange. The
company received an award as 'Good Corporate Citizen' for the year 2005-2006. During the year
2007 company acquired 100 % of the equity stake of Lucky Minmat Private Limited for Rs 35

22
crores and also acquired 14.3 % equity stake in Shiva Cement Limited. Meanwhile the company
divested its entire equity shares in Almatis ACC Ltd to the Almatis group. The overseas contract
with YANBU Cement Company in the kingdom of Saudi Arabia is successfully ongoing
relationship from last 28 years and has been renewed up to February 28, 2011. The company has
developed comprehensive expansion plans to meet the requirements of its agenda for growth
with a view to attain leadership position in the cement industry, for that company made a project
for augmentation of clinkering and cement grinding. As a result with this the capacity of Gogal
works stands increased to 4.4 Metric Tonnes Per Annum. ACC planed to expand the unit of
Bargarh works capacity to 2.14 MTPA together with 30MW captive power plant is underway.
Ready mix concrete business has been identified as an area of strategic priority. ACC
commissioned a Wind Energy Farm in Tamil Nadu to promote clean and green technology. The
company foresees substantial scope for growth of this business in India and has accordingly
finalized plans to expand Ready Mix business in major cities including Tier1 and Tier 2 cities.
ACC realizes the growth potential of Ready Mix, the company has 26 plants for the same and
enhance to 46 in 2008. The company has major capital expenditure projects in hand, as a result
of these projects the total cement capacity of the company will increase to about 30.4 MTPA by
end of 2010 with total outlay of Rs 4,000 crores.

ULTRATECH CEMENT LTD.


UltraTech Cement Limited was incorporated as a public limited company on 24th August
2000, as “L&T Cement Limited” a 100% Subsidiary of Larsen & Toubro Limited. The name of
the Company was changed to UltraTech Cement Co. Limited with effect from 19th November
2003 after the Aditya Birla group owned Grasim Industries acquired it. The name of the
company was again changed to UltraTech Cement Limited with effect from 11th October 2004.
UltraTech Cement Limited has an annual capacity of 18.2 million tonnes. It manufactures and
markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana
Cement. It also manufactures ready mix concrete (RMC). UltraTech Cement Limited has five
integrated plants, six grinding units and three terminals — two in India and one in Sri Lanka.
UltraTech Cement is the country’s largest exporter of cement clinker. The export markets span
countries around the Indian Ocean, Africa, Europe and the Middle East.
INDIA CEMENTS

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India Cements was set up in 1946 and the company's first plant was established in 1949
at Sankarnagar, Tamil Nadu. Since the India Cements Ltd. has been established, it has risen in
stature to become the biggest cement producer in south India. India Cements has 7 plants spread
across Andhra Pradesh and Tamil Nadu. The total production capacity of the plants is around 9
million tons per year. In south India, India Cements Company has a 28% market share and it
plans to achieve a market share of around 35% in the near future. Around 90% of India Cements
Company's produce is sold in the Tamil Nadu and Kerala markets. India Cements Company has
a distribution network which is very strong - it has over 10,000 stockists out of which around
25% is devoted to the company. The India Cements Ltd owns famous brands such as Rassi Super
Power, Sankar Super Power, and Coromondal Super Power. In the year of 1990, ICL acquired
Coromandel Cement plant at Cuddapah, consequently installed capacity rose to 2.6 million
tonnes per annum). The India Cements Company has subsidiary companies which include ICL
Financial Services, Industrial Chemicals & Monomers, ICL International, and ICL Securities. In
1997 India cements acquired Aruna Sugars Finance Ltd which was later renamed as India
Cements Capital & Finance Ltd. It also acquired Cement Plant of Visaka Cement Industry, at
Tandur, Ranga Reddy district of Andhra Pradesh with Installed capacity 9, 00,000 Tonnes.The
cement division of Raasi Cement (RCL) was vested with the company from April.1998 under a
scheme of arrangement India Cements has established itself as a leading cement manufacturing
company and as it plans to expand its production capacity, the company's position in the market
is sure to rise in the near future.

AMBUJA CEMENT
The company's cement plant was commissioned in 1985. It was set up in technical
collaboration with Krupp Polysius, Germany, Bakau Wolf and Fuller KCP. The company got
necessary approvals for setting up another cement plant with 1 million tonne capacity per annum
at Himachal Pradesh in the year 1991. The Company undertook bulk cement transportation, by
sea, to the major markets of Mumbai, Surat and other deficit zones on the West Coast.
Transportation was to be carried out by three specially designed ships during the year 1992.
During the year 1994, the company's Muller location 1.5 million tonne cement project with
clinkerization facility at site in H.P and grinding facility both at Suli & Ropar in Punjab was
bespoken. In 1997, Kodinar plant of the company was originated its commercial production with

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an enhanced capacity. In the last decade the company has grown tenfold. It was the first
company in India to introduce the concept of bulk cement movement by the sea transport. The
company's most distinctive attribute, however, is its approach to the business. Ambuja follows a
unique homegrown philosophy for successful survival. Ambuja is the most profitable cement
company in India, and one of the lowest cost producers of cement in the world. The company
was awarded for its credit, the National Award for commitment to quality by the Prime Minister
of India, National Award for outstanding pollution control by the Prime Minister of India, Best
Award for highest exports by CAPEXIL and Economic Times - Harvard Business School
Association Award for corporate excellence in different years. The company was adjudged as the
top Indian company in the cement sector for the Dun and Bradstreet American Express
Corporate Awards 2007. The company developed a unique homespun channel management
model called Channel Excellence Programme (CEP) for marketing their product. Over 7000
dealerships and 20,000 retailers across India are covered under this model. The company name
was changed from Gujarat Ambuja Cements Limited to Ambuja Cements Limited on April,
2007, the word Gujarat was dropped to reflect the true geographical presence of the company.

JAYPEE CEMENT
Jaypee group is the 3rd largest cement producer in the country. The groups cement
facilities are located in the Satna Cluster (U.P), which has one of the highest cement production
growth rates in India. The group produces special blend of Portland Pozzolana Cement under the
brand name ‘Jaypee Cement’ (PPC). Its Cement Division currently operates modern,
computerized process control cement plants with an aggregate capacity of 13.5 MTPA. The
company is in the midst of capacity expansion of its cement business in Northern, Southern,
Central, Eastern and Western parts of the country and is slated to be a 24.30 MTPA cement
producer by the year 2010 and 26.80 MTPA by 2011 with Captive Thermal Power Plants
totaling 327MW. Keeping pace with the advancements in the IT industry, all the 140 cement
dumps are networked using TDM/TDMA VSATs along with a dedicated hub to provide 24/7
connectivity between the plants and all the 120 points of cement distribution in order to ensure
“track – the – truck” initiative and provide seamless integration. This initiative is the first of its
kind in the cement industry in India. In the near future, the group plans to expand its cement

25
capacities via acquisition and Greenfield additions to maximize economies of scale and build on
vision to focus on large size plants from inception.

LAFARGE INDIA
Lafarge India is a subsidiary of the French Building Materials major Lafarge. Lafarge is
the world leader in building materials, with top-ranking positions in all of its businesses: Cement,
Aggregates & Concrete and Gypsum. Lafarge entered the Indian market in 1999, with the
acquisition of the cement business of Tata Steel. This acquisition was followed by the purchase
of the Raymond Cement facility in 2001. Lafarge currently has three cement plants in India: two
integrated plants in the state of Chhattisgarh and a grinding station in Jharkhand. Total cement
production capacity of Lafarge in the Indian market currently stands at around 5.5 million tons.
Lafarge India produces different types of cements like Portland Slag Cement, Portland Pozzolana
Cement. Lafarge Cement is famous all over the world for its premium quality and has been used
to build many landmark buildings globally. The company is a leading cement player in Eastern
India. Its brands Lafarge Cement and Lafarge Concreto Cement enjoy high brand equity here and
are amongst the highest priced brands. Lafarge is committed to the Indian market and has firm
plans to expand its capacity in India.

Lafarge cement is available through a large dealer network, throughout eastern India- in
the states of West Bengal, Jharkhand, Bihar, Chhattisgarh, Orissa and North-East States. Lafarge
Cement is also available in parts of Madhya Pradesh and Maharashtra (Vidarbha region), parts of
Uttar Pradesh, Andhra Pradesh & National Capital Region.

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27
1.3 COMPANY PROFILE

UltraTech Cement Limited was incorporated as a public limited company on 24th August
2000, as “L&T Cement Limited” a 100% Subsidiary of Larsen & Toubro Limited. The name of
the Company was changed to UltraTech Cement Co. Limited with effect from 19th November
2003 after the Aditya Birla group owned Grasim Industries acquired it. The name of the
company was again changed to UltraTech Cement Limited with effect from 11th October 2004.
UltraTech Cement Limited has an annual capacity of 18.2 million tonnes. It manufactures and
markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana
Cement. It also manufactures ready mix concrete (RMC). UltraTech Cement Limited has five
integrated plants, six grinding units and three terminals — two in India and one in Sri Lanka.
UltraTech Cement is the country’s largest exporter of cement clinker. The export markets span
countries around the Indian Ocean, Africa, Europe and the Middle East.

OUR VISION

To be a premium global conglomerate, with a clear focus on each business.

OUR MISSION

To deliver superior value to our customers, shareholders, employees and society at large

OUR VALUES

• Integrity

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• Commitment
• Passion
• Seamlessness
• Speed

UltraTech Cement Limited has an annual capacity of 18.2 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).
UltraTech Cement Limited has five integrated plants, six grinding units and three
terminals — two in India and one in Sri Lanka.UltraTech Cement is the country’s largest
exporter of cement clinker. The export markets span countries around the Indian Ocean, Africa,
Europe and the Middle East.

UltraTech’s subsidiaries are Dakshin Cement Limited and UltraTech Ceylinco (P)
Limited.

UltraTech’s subsidiaries are Dakshin Cement Limited and UltraTech Ceylinco (P)
Limited.

GLOBAL VISON, INDIAN VALUES

A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It
is anchored by an extraordinary force of 130,000 employees, belonging to 30 different
nationalities. In India, the Group has been adjudged "The Best Employer in India and among the
top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per
cent of its revenues flow from its overseas operations.

The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil, Italy,
France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos,

Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and


Korea.

Globally the Aditya Birla Group is:

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:: A metals powerhouse, among the world's most cost-efficient aluminium and copper
producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three
biggest producers of primary aluminium in Asia, with the largest single location copper
smelter
:: No.1 in viscose staple fibre
:: The fourth largest producer of insulators
:: The fourth largest producer of carbon black
:: The 11th largest cement producer globally, the seventh largest in Asia and the second largest
in India
:: Among the world's top 15 BPO companies and among India's top four
:: Among the best energy efficient fertiliser plants

In India:

:: A premier branded garments player


:: The second largest player in viscose filament yarn
:: The second largest in the chlor-alkali sector
:: Among the top five mobile telephony companies
:: A leading player in life insurance and asset management
:: Among the top three supermarket chains in the retail business

Beyond business — the Aditya Birla Group is:

::
Working in 3,700 villages
::
Reaching out to seven million people annually through the Aditya Birla Centre for
Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla

::
Focusing on: health care, education, sustainable livelihood, infrastructure and espousing
social causes
::
Running 42 schools and 18 hospitals

Board of Directors
:: Mr. Kumar Mangalam Birla, Chairman
:: Mrs. Rajashree Birla

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:: Mr. R. C. Bhargava
:: Mr. G. M. Dave
:: Mr. N. J. Jhaveri
:: Mr. S. B. Mathur
:: Mr. V. T. Moorthy
:: Mr. S. Rajgopal
:: Mr. D. D. Rathi
Mr. O. P. Puranmalka, Wholetime Director

Executive President & Chief Financial Officer

:: Mr. K. C. Birla
Chief Manufacturing Officer

:: Mr. R.K. Shah


Chief Marketing Officer

Mr. S.N.Jajoo
::

Company Secretary

:: Mr. S. K. Chatterjee

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1.4 PRODUCT PROFILE

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UltraTech is India's largest exporter of cement clinker. The company's production
facilities are spread across five integrated plants, five grinding units, and three terminals — two
in India and one in Sri Lanka. All the plants have ISO 9001 certification, and all but one have
ISO 14001 certification. While two of the plants have already received OHSAS 18001
certification, the process is underway for the remaining three. The company exports over 2.5
million tonnes per annum, which is about 30 per cent of the country's total exports. The export
market comprises of countries around the Indian Ocean, Africa, Europe and the Middle East.
Export is a thrust area in the company's strategy for growth.

UltraTech's products include Ordinary Portland cement, Portland Pozzolana cement and
Portland blast furnace slag cement.

• Ordinary Portland cement


• Portland blast furnace slag cement
• Portland Pozzolana cement
• Cement to European and Sri Lankan norms

Ordinary Portland cement

Ordinary Portland cement is the most commonly used cement for a wide range of
applications. These applications cover dry-lean mixes, general-purpose ready-mixes, and even
high strength pre-cast and pre-stressed concrete.

Portland blast furnace slag cement

Portland blast-furnace slag cement contains up to 70 per cent of finely ground, granulated

33
blast-furnace slag, a nonmetallic product consisting essentially of silicates and alumino-silicates
of calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding
slag for cement replacement takes only 25 per cent of the energy needed to manufacture Portland
cement. Using slag cement to replace a portion of Portland cement in a concrete mixture is a
useful method to make concrete better and more consistent. Portland blast-furnace slag cement
has a lighter colour, better concrete workability, easier finishability, higher compressive and
flexural strength, lower permeability, improved resistance to aggressive chemicals and more
consistent plastic and hardened consistency.

Portland Pozzolana cement

Portland pozzolana cement is ordinary portland cement blended with pozzolanic


materials (power-station fly ash, burnt clays, ash from burnt plant material or silicious earths),
either together or separately. Portland clinker is ground with gypsum and pozzolanic materials
which, though they do not have cementing properties in themselves, combine chemically with
portland cement in the presence of water to form extra strong cementing material which resists
wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete
and mortar.

34
35
2.1 NEED FOR THE STUDY

 Market segmentation is mainly undertaken to identify the segments that has got an
impressive market share. The need for the study is mainly to identify where UltraTech
Cement is being placed in the market with respect to specific segments.

36
 The significance of market segmentation is to identify the preference of the customers
towards the cement products of UltraTech and to know the reasons behind the selection
the same.

 It is also necessary to know how the customers are being satisfied and how the demand
for a particular brand grows.

37
2.2 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

 To study the customer inclination towards market segmentation of cements products with
special reference to Ultratech Cement Ltd.

38
SECONDARY OBJECTIVE:

 To know about the various factors that influences a customer to prefer cement products.

 To study the preferences of customer towards UltraTech

 To identify the segments on which cement products are in great demand.

 To study the opinion of the dealers regarding UltraTech

 To study the effectiveness of various sales promotion measures undertaken by UltraTech

 To identify the marketing practices followed in the cement market.

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2.3 SCOPE OF THE STUDY

The scope of the study is broad as it focuses on.

• Understanding the needs and preferences of consumers -- Having New housing, Repair
work, Apartments and Commercial buildings, as demand drivers, the company analyze
the needs and preferences of consumers in these sectors.

40
• Grouping customers based on their needs and preferences -- Customers with similar
needs and preferences can be included in one segment.

• Targeting the segment that the company can best meet the needs and preferences of - The
Company should target the customers, of which it can meet the needs and preferences.
i.e. customer needs higher- strength or low price

• Branding the commodity -- Though being a commodity product, branding is important


for a cement company. The company needs to position its brand among Architects and
Builders rather than household individuals.

• Provide required product to meet targeted customers' needs and preferences -- Delivering
up to the expectations of the targeted segment

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2.4 LIMITATIONS OF THE STUDY

• Lack of cooperation from the retailers in regard to giving interview

• It was found in some cases dealers showed inclination towards certain brands which gave

them more margins when compared to others.

42
• It was experienced during the survey that it was difficult to convince or make the retailers

and dealers understand the importance of the project

• As the retailers and dealers thought that it was unwise for them to give their details of

business as they feared competitors would take advantage.

• The survey is confined only to Chennai city

• The project is confined to only 95 samples

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2.5 LITERATURE REVIEW

Market research is the process of systematically gathering, recording and analyzing data
and information about customers, competitors and the market. Its uses include helping create a
business plan, launch a new product or service, fine tune existing products and services, and
expand into new markets. Market research can be used to determine which portion of the
population will purchase a product/service, based on variables like age, gender, location and
income level.

44
Market research is generally either primary or secondary. In secondary research, the
company uses information compiled from other sources that appears applicable to a new or
existing product. The advantages of secondary research are that it is relatively cheap and easily
accessible. Disadvantages of secondary research are that it is often not specific to your area of
research and the data used can be biased and is difficult to validate. Primary market research
involves testing such as focus groups, surveys, field tests, interviews or observation, conducted
or tailored specifically to that product.

A list of questions that can be answered through market research:

• What is happening in the market? What are the trends? Who are the competitors?
• How do consumers talk about the products in the market?
• Which needs are important? Are the needs being met by current products?

Market research is for discovering what people want, need, or believe. It can also involve
discovering how they act. Once that research is complete it can be used to determine how to
market your specific product. MR-Anywhere is a very good platform for market research and
analysis

For starting up a business there are a few things that are important:

Market information

Market information is making known the prices of the different commodities in the market,
the supply and the demand. Information about the markets can be obtained in several different
varieties and formats.

Examples of market information questions are:

1. Who are the customers?

45
2. Where are they located and how can they be contacted?
3. What quantity and quality do they want?
4. When is the best time to sell?

Market segmentation

Market segmentation is the division of the market or population into subgroups with
similar motivations. Widely used bases for segmenting include geographic differences,
personality differences, demographic differences, use of product differences, and psychographic
differences.

Definition: To divide a market by a strategy directed at gaining a major portion of sales to a


subgroup in a category, rather than a more limited share of purchases by all category users.

Market Segmentation Services is a full service research firm specializing in Market


Segmentation Studies for consumer, business, and health care markets.

Market Segmentation Services provides fresh, perspectives for increased customer


identification, selection, profitability, and retention.

Our integrated approach to brand intelligence combines the best of qualitative methods,
and advanced quantitative analytics to provide you with actionable real world results that can be
used to add customer value across your entire enterprise.

46
We'll help you find answers to the tough questions:

• What are your customers' needs, wants, and motivations?


• Who are your most and least profitable customers?
• Where are the best opportunities?
• What are your customers' hidden or untapped needs?

What Market Segmentation Services can do for your company?

• We help you respond to competitive challenges in the marketplace


• We can help you identify your most profitable and least profitable customers.
• We can help you position your brand to leverage your strengths.
• We'll help you identify the ways to differentiate your products.

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Segment your Market

Consumer diversity is rapidly increasing and firms are seeking to differentiate their
products relative to competitors. When the focus is specifically on the desires and needs of a
niche group, there is a greater probability that the company's marketing can match the needs of
that group. Target marketing and market segmentation allows firms to focus their resources more
effectively, and with a greater chance of success.

The purpose of market segmentation is to focus on the subset of prospects that have the
greatest potential of becoming customers. When segmentation is done correctly, it helps you
realize the highest return for your marketing expenditures.

Market segmentation is a proven way of improving profitability. By focusing your


offerings to different groups, you are better able more precisely to meet their needs and gain
higher market share and profits.

Companies who segment their markets match their strengths and offerings to the groups
of customers most likely to respond to them, By selecting and focusing on some segments to the
exclusion of others, marketing can be specifically created to fit those customers.

The Segmentation Process

Implementing a segmentation strategy has three components:

• Identifying the market segments


• Targeting desirable segments to focus on, and
• Positioning your organization to take advantage of those choices.

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Market trends

The upward or downward movements of a market during a period of time. The market
size is more difficult to estimate if you are starting with something completely new. In this case,
you will have to derive the figures from the number of potential customers or customer
segments.

But besides information about the target market you also need information about your
competitor, your customers, products etc.

A few techniques are:

• Customer analysis
• Choice Modelling
• Competitor analysis
• Risk analysis
• Product research
• Advertising research

Quantitative marketing research is the application of quantitative research techniques to the


field of marketing. It has roots in both the positivist view of the world, and the modern marketing
viewpoint that marketing is an interactive process in which both the buyer and seller reach a
satisfying agreement on the "four Ps" of marketing: Product, Price, Place (location) and
Promotion.

As a research method, it typically involves the construction of questionnaires and scales.


People who respond (respondents) are asked to complete the survey. Marketers use the
information so obtained to understand the needs of individuals in the marketplace, and to create
strategies and marketing plans.

49
A questionnaire is a research instrument consisting of a series of questions and other
prompts for the purpose of gathering information from respondents. Although they are often
designed for statistical analysis of the responses, this is not always the case. The questionnaire
was invented by Sir Francis Galton.

Questionnaires are used by sociologists, positivists prefer closed questions.

Questionnaires have advantages over some other types of surveys in that they are cheap, do
not require as much effort from the questioner as verbal or telephone surveys, and often have
standardized answers that make it simple to compile data. However, such standardized answers
may frustrate users. Questionnaires are also sharply limited by the fact that respondents must be
able to read the questions and respond to them. Thus, for some demographic groups conducting a
survey by questionnaire may not be practical.

As a type of survey, questionnaires also have many of the same problems relating to question
construction and wording that exist in other types of opinion polls.

Consumer buying behaviour:

Consumer behaviour invented by arpit aggarwal(in consumer business context) referred


to as the study of when, why, how, where and what people do or do not buy products. It blends
elements from psychology, sociology, social, anthropology and economics. It attempts to
understand the buyer decision making process, both individually and in groups. It studies
characteristics of individual consumers such as demographics and behavioural variables in an
attempt to understand people's wants. It also tries to assess influences on the consumer from
groups such as family, friends, reference groups, and society in general. Customer behaviour
study is based on consumer buying behaviour, with the customer playing the three distinct roles
of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour
analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the
re-affirmation of the importance of the customer or buyer. A greater importance is also placed on
consumer retention, customer relationship management, personalization, customization and one-
to-one marketing. Social functions can be categorized into social choice and welfare functions.
Each method for vote counting is assumed as a social function but if Arrow’s possibility theorem

50
is used for a social function, social welfare function is achieved. Some specifications of the
social functions are decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity
and weak and strong Pareto optimality. No social choice function meets these requirements in an
ordinal scale simultaneously. The most important characteristic of a social function is
identification of the interactive effect of alternatives and creating a logical relation with the
ranks. Marketing provides services in order to satisfy customers. With that in mind, the
productive system is considered from its beginning at the production level, to the end of the
cycle, the consumer (Kioumarsi et al., 2009).

Belch and Belch define consumer behaviour as 'the process and activities people engage in when
searching for, selecting, purchasing, using, evaluating, and disposing of products and services so
as to satisfy their needs and desires'.

Black box model

ENVIRONMENTAL BUYER'S BLACK BOX BUYER'S


FACTORS RESPONSE
Marketing Environmental Buyer Decision Process
Stimuli Stimuli Characteristics
Product Economic Attitudes Problem recognition Product choice

Price Technological Motivation Information search Brand choice

Place Political Perceptions Alternative Dealer choice


evaluation
Promotion Cultural Personality Purchase timing
Purchase decision
Demographic Lifestyle Purchase
Post-purchase amount
Natural Knowledge
behaviour

51
The black box model shows the interaction of stimuli, consumer characteristics, and
decision process and consumer responses. It can be distinguished between interpersonal stimuli
(between people) or intrapersonal stimuli (within people). The black box model is related to the
black box theory of behaviorism, where the focus is not set on the processes inside a consumer,
but the relation between the stimuli and the response of the consumer. The marketing stimuli are
planned and processed by the companies, whereas the environmental stimuli are given by social
factors, based on the economical, political and cultural circumstances of a society. The buyer’s
black box contains the buyer characteristics and the decision process, which determines the
buyer’s response.

The black box model considers the buyers response as a result of a conscious, rational
decision process, in which it is assumed that the buyer has recognized the problem. However, in
reality many decisions are not made in awareness of a determined problem by the consumer.

Information search

Once the consumer has recognized a problem, they search for information on products
and services that can solve that problem. Belch and Belch (2007) explain that consumers
undertake both an internal (memory) and an external search.

Sources of information include:

 Personal sources
 Commercial sources
 Public sources
 Personal experience

The relevant internal psychological process that is associated with information search is
perception. Perception is defined as 'the process by which an individual receives, selects,
organizes, and interprets information to create a meaningful picture of the world'

52
The selective perception process

Stage Description

- Selective exposure consumers select which promotional messages they will expose themselves
to.

- Selective attention consumers select which promotional messages they will pay attention to

- Selective comprehension consumer interpret messages in line with their beliefs, attitudes,
motives and experiences

- Selective retention consumers remember messages that are more meaningful or important to
them

The implications of this process help develop an effective promotional strategy, and select which
sources of information are more effective for the brand.

Information evaluation

At this time the consumer compares the brands and products that are in their evoked set.
How can the marketing organization increase the likelihood that their brand is part of the
consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the
functional and psychological benefits that they offer. The marketing organization needs to
understand what benefits consumers are seeking and therefore which attributes are most
important in terms of making a decision.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result in an actual purchase. The marketing
organization must facilitate the consumer to act on their purchase intention. The provision of
credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to
receive a premium or enter a competition may provide an incentive to buy now. The relevant
internal psychological process that is associated with purchase decision is integration.

53
Post purchase evaluation

It is common for customers to experience concerns after making a purchase decision.


This arises from a concept that is known as “cognitive dissonance”. The customer, having bought
a product, may feel that an alternative would have been preferable. In these circumstances that
customer will not repurchase immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to persuade the
potential customer that the product will satisfy his or her needs. Then after having made a
purchase, the customer should be encouraged that he or she has made the right decision.

Internal influences

Consumer behaviour is influenced by: demographics, psychographics (lifestyle),


personality, motivation, knowledge, attitudes, beliefs, and feelings. Consumer behaviour concern
with consumer need consumer actions in the direction of satisfying needs leads to his behaviour
of every individual depend on thinking process.

External influences

Consumer behaviour is influenced by: culture, sub-culture, locality, royalty, ethnicity,


family, social class, reference groups, lifestyle, and market mix factors.

Cement sector:

India is the 2nd largest cement producer in world after china .Right from laying concrete
bricks of economy to waving fly over’s cement industry has shown and shows a great future. The
overall outlook for the industry shows significant growth on the back of robust demand from
housing construction, Phase-II of NHDP (National Highway Development Project) and other
infrastructure development projects. Domestic demand for cement has been increasing at a fast
pace in India. Cement consumption in India is forecasted to grow by over 22% by 2009-10 from
2007-08.Among the states, Maharashtra has the highest share in consumption at
12.18%,followed by Uttar Pradesh, In production terms, Andhra Pradesh is leading with 14.72%

54
of total production followed by Rajasthan. Cement production grew at the rate of 9.1 per cent
during 2006-07 over the previous fiscal's total production of 147.8 mt (million tons). Due to
rising demand of cement the sales volume of cement companies are also increasing & companies
reporting higher production, higher sales and higher profits. The net profit growth rate of cement
firms was 85%. Cement industry has contributed around 8% to the economic development of
India. Outsiders (foreign players) eyeing India as a major market to invest in the form of either
merger or FDI (Foreign Direct Investment). Cement industry has a long way to go as Indian
economy is poised to grow because of being on verge of development.

Despite the growth of Indian cement industry India lags behind the per capita production.
Supply for cement is expected to remain tight which, in turn, will push up prices of cement by
more than 50%. The most important factor for better prices is consolidation of the industry. It has
just begun and we will see more consolidation in the coming years. Other budget measures such
as cut in import duty from 12.5 per cent to nil etc. are all intended to cut costs and boost
availability of cement.

Sadly the adverse effects of global slowdown have not speared this industry too. Demand
is sluggish, the government is keeping an eagle eye on prizes, domestic coal and pet coke, prizes
have increased sharply and utilizations rates are down. The numbers coming out are a reflection
of grim times. ACC the country’s largest cement company that’s controlled by Swiss giant
HOLCIM, registered 2% fall in august sales. The biggest fall since Feb. 2007 Production fell by
5%.
To stand against the problematic situation, government as well as cement industry has
taken some steps. Companies are focusing on cost of transportation. One of the strategy is to
decrease dependence on road & opt for sea logistics as that can cut transportation cost by 30- 50
%. Some plants are adopting futuristic plan such as setting up captive power plant, moving closer
to the customers by creating clicker, crushing, and capacity in key markets, to be more
Customer centric to generate better revenue.India should push for stricter regulations of market
place as to control the prices of big companies and prevent them from forming cartels and
exchanging information. To fight with the high inflation, government wants to import more
cement from Pakistan .However cement prizes are not very much high as other items but still
they are increasing. And the reason of high prize is surging cost of raw material and

55
transportation cost. Apart from this government also discussed with cement industry not to have
increase in prizes and keep consumer interest in mind.

Now the question arise in front of the government is whether the demand by the
government is possible to increase through expenditure on infrastructure or not according to the
current state of economy when so many crises are going on or how the government allocation of
US$ 3.23 billion for the National Highway Development, Project will keep the demand for
cement alive? And to what extent the prizes of cement should be increase so that consumer can’t
affect.

56
57
58
3.1. RESEARCH METHODOLOGY

3.1.1. Research Definition:


Research is an organized, systematic database, critical, objective, scientific enquiry or
investigation into a specific problem, undertaken with the purpose of finding answers or
solutions to it. In essence, research provided the needed information that guides managers to
make informed decisions to successfully deal with problems
3.1.2. Research Methodology:
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically.
The methodology followed was descriptive research which includes survey and fact
finding techniques the main purpose of description of state of affairs as it exists at present.
3.1.3. Research Design:
This requires proper planning; a research needs a plan before study to save time and
resources. A research design indicates a plan of action to be carried out in connection with the
proposed research work.
It provide a guidelines for the research to enable him to keep track of his action and to know that
he is moving in the right direction gives a specific presentation of various steps in the process of
research. Thus the research is formulated
Descriptive Research:
Descriptive research includes survey and fact finding enquires of different kinds.
The major purpose of descriptive research is the description of the state of affaires as it exists at
present. The main characteristic of this method is that the researcher has no control over the
variables he can only report what has happened or what is happening.
Descriptive research method will be applicable to existing method will be applicable to
existing problem. A survey research has been conducted where by the information has been
gathered from respondent by administering questionnaires through a direct interview, in this
project descriptive research was followed because the survey is based on present scenario.

3.1.5. Sampling:

59
In simple words, a process of selection of sample is called sampling

Size of the Sample:


This refers to the number of items to be selected from the universe to constitute a
sampling. An optimum sample is one which fulfills the requirements of efficiency, representative
ness, reliability and flexibility.
The sample size is 95 is prescribed by the organization.

SAMPLING TECHNIQUES

The way to determine who comprises the sample depends on a number of factors, such
as the availability of and access to the individuals in the representative group, the availability of
resources to use in the technical expertise of those involved in the data collection.
There are two major types. They are
1. Probability Sampling.
2. Non-Probability Sampling.

SIMPLE RANDOM SAMPLING:

Simple random sampling is the most common and familiar type of probability sample. In this
sampling method, each member of the population has an equal probability of being induced in
the sample. Therefore, simple random sampling is a method of selecting ‘n’ units, out of a
population of size ‘N’ by giving equal opportunity to all units. The selection of the random
sample may be used on any of the following method.
1. Lottery method

2. Use of random number tables.

3.1.6. STATISTICAL TOOL:

60
1. Chart:
Bar chart and Pie charts are used for analysis to get a clear idea about the tabulation data.

2. Percentage Analysis:
Shows the entire population in terms of % it reveals the number of people belonging in a
particular category or the number of people preferring a particular thing etc, in terms of % in this
study the number of people who responded in a particulars manner is interpreted in the form of
%.
NumberOf Re spondents
Percentage = X 100
Total Re spondents

3. Weighted average method:


In the case of data involving rating scale and ranking the weighted average making
used. In this method, the net scores for each attribute are calculated and analysis can be done as
the basic of the net score in % obtained the formula is given.

WeightedAv erage =
∑(WeightedFo rColumn * NumberOf Re spondents )
TotalWeigh t

4. Interval Estimation:
An internal estimate is a statement of two values between which it is estimated that the
parameters lies. Interval estimate is the range of values used to estimate population parameter.
Statistical estimation is concerned with the methods by which population characteristics are
estimated from sample information. An interval estimate would always be specified by two
values. i.e. lower value and upper value.
pq
I .E = p Z α / 2
n

5. Chi- Square Test Analysis:

61
The square of a standard normal variate is known as Chi-Square variate with 1 degree
of freedom. The chi-square tests a fairly simple and definitely the most popular of all the other
tool, the chi-square test is most widely used non-parametric tests in statistics. It makes no
assumption about being sampled. The quality chi-square describes the magnitude of discrepancy
between theory and observation.

χ 2
=
∑ (O i − Ei ) 2
Ei

Where,
Oi = Observed frequency.
Ei = Expected Frequency.
6. Arithmetic Mean:
Arithmetic Mean is obtained by adding all the observations and dividing the sum by the
number of observation.
For grouped data, arithmetic mean may be calculated by applying any of the following
method
1. Direct method

2. Short cut method

3. Step deviation method

Direct method

In the case of direct method the formula x = ∑ fm is used. Here ‘m’ is the mid point of
n
various classes; ‘f’ is the frequency of each class and ‘n ’is the total number of frequencies

x=
∑ fm
n

3.1.7 DATA COLLECTION:


The research can be done by two major types they are:

62
1. Primary Data Collection.
2. Secondary Data Collection.

PRIMARY DATA:
Since secondary data are scarcely available study has been done with primary data. The
primary data are supplemented with views obtained from respondents in support of
Questionnaires.
Primary data are obtained either through observation or through direct communication
with respondents in one form or another or through personal interview.

SECONDARY DATA:
Secondary data consist of information that already exists, which has been collected for
other purpose. All the required complete details about the company, origin of industry,
organizational setup and samples were collected from the secondary sources like Company
Records, Magazines, Newspaper and Websites.

QUESTIONNAIRE:
Questionnaires are an inexpensive way to gather data from a potentially large number of
respondents. Often they are the only feasible way to reach a number of reviewers large enough to
allow statistically analysis of the results. A well-designed questionnaire that is used effectively
can gather information on both the overall performance of the test system as well as information
on specific components of the system. If the questionnaire includes demographic questions on
the participants, they can be used to correlate performance and satisfaction with the test system
among different groups of users.

DEVELOPMENT OF QUESTIONNAIRE:

63
The type of questions used by the researches is non-disguised structured questionnaire
which consists of questions like open ended, close ended, multiple choices and dichotomous.

TYPES OF QUESTIONS:
OPEN – ENDED QUESTION:
Open ended questions are the types of questions are the type of questions used to get
suggestions from the respondents in order to give feed back to the organisation.
CLOSE – ENDED QUESTION:
Close ended questions are the type of questions with a clear delineated set of alternatives
that confines the respondent to choose one of them.
DICHOTOMOUS QUESTION:
There will be two answers out of which the respondent has to choose one.
MULTIPLE CHOICES:
Multiple choice questions are the type of questions which consists of multiple choices for
the respondent to choose one of them.
RANKING:
The questions will have a ranking scale, which the respondents are free to rank them
accordingly to their preference.

Research Design Descriptive Research.

Research Instrument Structured Questionnaire.

Chi-square, Interval Estimation, Dichotomous, Percentage


Statistical Tool
Analysis, Weighted Average, and Arithmetic Mean

Questionnaire Open Ended, Close Ended, Multiple Choice and Ranking.

Sampling unit Dealers of Cement industry in Chennai City

Sample size 95 Respondents.

64
3.2 ANALYSIS & INTERPRETATION

65
TABLE NO.3.2.1

TABLE SHOWING THE YEARS OF DEALERSHIP

YEARS OF EXPERIENCE NO. OF RESPONDENTS PERCENTAGE


1 year 0 0.00
1- 2 years 2 2.11
2 - 5 years 6 6.32
5 – 10 years 39 41.05
> 10 years 48 50.53
TOTAL 95 100.00

Findings:

From the above table, it is found that 2.11% of the respondents say that they have been
dealers of cement products between 1 – 2 years, 6.32% of the respondents say that it is between 2
-5 years, 41.05% of the respondents say that they have been dealers between 5 – 10 years and
50.53% of the respondents say that they are dealers for more than 10 years.

Inference:

It is inferred that majority of the respondents (i.e) 50.53% are mostly having dealership
above 10 years.

66
CHART NO.3.2.1

CHART SHOWING THE YEARS OF DEALERSHIP

60.00

50.00

40.00

30.00 P E RCE NTA G E


20.00

10.00

0.00
1 y ear 1- 2 2-5 5 – 10 10 y ears
y ear’s y ears y ears

67
TABLE NO.3.2.2

TABLE SHOWING THE BRAND MOSTLY DEALT IN SHOPS

BRANDS NO. OF RESPONDENTS PERCENTAGE


UltraTech 52 54.74
Zuari 4 4.21
Dalmia 7 7.37
Chettinad 2 2.11
Coromondal 26 27.37
Ramco 1 1.05
Others 3 3.16
TOTAL 95 100.00

Findings:

From the above table, it is found that 54.74% of the respondents are of the opinion that
the brand most dealt with is Ultratech, 4.21% of the respondents say that it is Zuari, 7.37% of the
respondents say that it is Dalmia, 2.11% of the respondents say that it is Chettinad, 27.37% of

68
the respondents say that it is Coromondal, 1.05% of the respondents say that it is Ramco and
3.16% of the respondents say that it is “C” Category (other) brands.

Inference:

It is inferred from the above table that 54.74% of shops deal with Ultratech cement
products among all other brands.

CHART NO.3.2.2

CHART SHOWING THE BRAND MOSTLY DEALT IN SHOPS

60.0

50.0

40.0

30.0

20.0

10.0

0.0
UltraT Chetti Corom Ramc
Zauri Dalmia Others
ech nad ondal o
Series1 54.7 4.21 7.37 2.11 27.37 1.05 3.16

69
TABLE NO.3.2.3

TABLE SHOWING THE FACTORS THAT GREATLY INFLUENCE


PURCHASE OF CEMENT PRODUCTS

FACTORS NO. OF RESPONDENTS PERCENTAGE


Price 18 18.95
Brand image 31 32.63
Quality 24 25.26
Sales promotion 1 1.05
Advertisement 3 3.16
Credit period 0 0.00
All the above 18 18.95
TOTAL 95 100.00

Findings:

From the above table, it is found that 18.95% of the customers are greatly influenced by
price, 32.63% of the customers are greatly influenced by brand image, 25.26% of the customers

70
are greatly influenced by quality, 1.05% of the customers are greatly influenced by sales
promotion, 3.16% of the customers are greatly influenced by advertisement, and 18.95% of the
customers are greatly influenced by all of the above.

Inference:

It can therefore be inferred that majority of the customers (i.e.) 32.63% are greatly
influenced by brand image for purchasing cement products.

CHART NO.3.2.3

CHART SHOWING THE FACTORS THAT GREATLY INFLUENCE PURCHASE OF


CEMENT PRODUCTS

71
35.00
30.00
25.00
20.00
PERCENTAGE
15.00
10.00
5.00
0.00

e
t
e

d
ity
ice

en

ov
io
ag

rio
l
Pr

ua

ot

ab
pe
im

om

se
Q

he
d

it
rti
an

ed
pr

lt
ve
Br

Cr
s

Al
Ad
le
Sa

TABLE NO: 3.2.4

TABLE SHOWING THE PURCHASING BEHAVIOUR OF CUSTOMERS

WEIGHTED AVERAGE METHOD:-

CATEGORY 1 2 3 4 5 6 TOTAL AVERAGE RANK

72
Price 156 230 52 24 4 0 466 22.19 2
Brand image 186 65 176 21 0 0 448 21.33 3
Quality 204 145 128 0 0 0 477 22.71 1
Sales
promotion 12 5 0 120 84 10 231 11.00 5
Advertisement 12 30 24 90 70 16 242 11.52 4
Credit period 0 0 0 30 32 69 131 6.24 6

Findings:

From the above table, it is found that Quality holds the 1st rank, Price holds the 2nd rank,
Brand Image holds the 3rd rank, Advertisement holds the 4th rank, sales promotion holds the 5th
rank, and finally Credit Period holds the 6th rank in influencing the purchasing behaviour of
customers towards Ultratech Cement.

Inference:

It can therefore be inferred that Quality plays a dominant role in influencing the purchasing
behaviour of customers as it is ranked first.

Chi – Square Test:


Null Hypothesis:
Ho: There is no significant difference in the various factors in influencing the purchasing
behaviour of customers towards Ultratech cement.
Alternate Hypothesis:
H1: There is a significant difference in the various factors in influencing the purchasing
behaviour of customers towards Ultratech cement.

73
Calculation: for chi square test:

∑f = 95
n =6
Ei = ∑f / n
Ei = 15.8

Oi Ei (Oi - Ei) (Oi - Ei) 2 (Oi - Ei) 2 / Ei


22 15.8 6.17 38.03 2.40
21 15.8 5.17 26.69 1.69
23 15.8 7.17 51.36 3.24
11 15.8 -4.83 23.36 1.48
12 15.8 -3.83 14.69 0.93
6 15.8 -9.83 96.69 6.11
95 15.84

χ ² 0.05 at (6-1) 5df = 11.1


χ ² 0.05cal 15.84 > χ ² 0.05 tab 12.6
Calculated value is greater than Tabulated value. Hence we reject Ho.

Conclusion:

It can therefore be concluded that, there is a significant difference in the various factors in
influencing the purchasing behaviour of customers towards Ultratech cement.

TABLE NO.3.2.5

TABLE SHOWING THE MOST INFLUENCING FACTORS IN CEMENT PURCHASE

Price and Quality are NO. OF RESPONDENTS


the influencing factors PERCENTAGE
Yes 89 94
No 6 6
TOTAL 95 100.00
74
Findings:

From the above table, it is found that 94% of the respondents are of the opinion that price
and quality are the most influencing factors in cement purchase, and 6% are of the opinion that it
was also because of various other factors.

Inference:

Most of the respondents suggest that Price and Quality are the most influencing factors in
purchase of cement.

CHART NO.3.2.5

CHART SHOWING THE MOST INFLUENCING FACTORS IN CEMENT PURCHASE

75
No
6%

Yes
94%

Interval estimation:

Yes –> p = 89/95 = 0.94


No – > q = 1-p = 0.06

Formula:

76
P±z ((p*q)/n)
0.94 ± 1.96 ((0.94*0.06)/95)
0.94 ± 1.96 (0.0564) /95
0.94 ± 1.96 (0.024)
0.94 ± 0.047

Conclusion:

The influencing factors like Price and Quality are in the range of 0.94 ± 0.47 and the
population proportion lies in between 89% to 98%. Therefore, it can be concluded that Price and
Quality are the most influencing factors in purchase of cement.

TABLE NO.3.2.6

TABLE SHOWING PERFORMANCE OF ULTRATECH CEMENT WITH RESPECT


TO VARIOUS ATTRIBUTES

77
Neither
satisfied Dissa Highly
Highly Satisf
CATEGORY nor tisfie dissati
Satisfied ied
dissatisfi d sfied
ed
Total
No. of
Respondent
Price s 50 40 5 0 0 95
Percentage 52.63 42.11 5.26 0.00 0.00 100
No. of
Respondent
Brand image s 37 53 5 0 0 95
Percentage 38.95 55.79 5.26 0.00 0.00 100
No. of
Respondent
Quality s 52 42 1 0 0 95
Percentage 54.74 44.21 1.05 0.00 0.00 100
No. of
Respondent
Sales promotion s 18 45 7 15 10 95
Percentage 18.95 47.37 7.37 15.79 10.53 100
No. of
Respondent
Advertisement s 21 62 5 7 0 95
Percentage 22.11 65.26 5.26 7.37 0.00 100
No. of
Respondent
Credit period s 4 50 17 8 16 95
Percentage 4.21 52.63 17.89 8.42 16.84 100
No. of
SALES Respondent
SERVICE s 10 42 23 12 8 95
Percentage 10.53 44.21 24.21 12.63 8.42 100

78
Findings:

From the above table it is found that


• 52.63% are highly satisfied, 42.11% are satisfied and 5.26% neither satisfied nor
dissatisfied for Price.
• 38.95% are highly satisfied, 55.79% are satisfied and 5.26% neither satisfied nor
dissatisfied for Brand Image.
• 54.74% are highly satisfied, 44.21% are satisfied and 1.05% neither satisfied nor
dissatisfied for Quality.
• 18.95% are highly satisfied, 47.37% are satisfied 7.37% neither satisfied nor is
dissatisfied, 15.79% dissatisfied and 10.53% highly dissatisfied for Sales Promotion.
• 22.11% are highly satisfied, 65.26% are satisfied, 5.26% neither satisfied nor
dissatisfied and 7.37% are dissatisfied for Advertisement.
• 4.21% are highly satisfied, 52.63% are satisfied, 17.89% neither satisfied nor
dissatisfied and 8.42% are dissatisfied and 16.84% are highly dissatisfied for Credit
Period.
• 10.53% are highly satisfied, 44.21% are satisfied, 24.21% neither satisfied nor
dissatisfied and 12.63% are dissatisfied and 8.42% are highly dissatisfied for Sales
Service.

Inference:
It is inferred that most of the respondents suggested Price, Quality and Brand Image are
highly satisfied.

79
CHART NO.3.2.6

CHART SHOWING PERFORMANCE OF ULTRATECH CEMENT WITH RESPECT


TO VARIOUS ATTRIBUTES

120.00

100.00
Price

80.00 Highly dissatisfied

Dissatisfied

60.00
NEITHER satisfied nor
dissatisfied
Satisfied
40.00

Highly Satisfied

20.00

0.00
1 2 3 4 5 6 7

80
TABLE NO.3.2.7

TABLE SHOWING THE BRANDS MOSTLY PREFERRED BY THE CUSTOMERS

RANK
S.NO BRANDS
R1 R2 R3 R4 R5 R6 R7 TOTAL
UltraTech
1 60 25 10 0 0 0 0 95
2 Zuari 5 13 27 6 13 23 8 95
4
Dalmia 4 10 7 15 13 26 20 95
5
Chettinad 1 0 3 8 13 29 41 95
6
Coromondal 22 31 28 11 2 1 0 95
7 Ramco 2 6 14 30 15 12 16 95
8 Others 1 10 6 25 39 4 10 95

Rank 1 2 3 4 5 6 7
Weight
s 7 6 5 4 3 2 1

WeightedAv erage =
∑(WeightedFo rColumn * NumberOf Re spondents )
TotalWeigh t

Total Weight = 7+6+5 + 4 + 3 + 2 + 1 = 28

81
TABLE: 3.2.7.1

TABLE SHOWING THE WEIGHTED AVERAGE

BRANDS 1 2 3 4 5 6 7 TOTAL AVERAGE RANK


UltraTech 420 150 50 0 0 0 0 620 22.14 1
Zuari 35 78 135 24 39 46 8 365 13.04 3
Dalmia 28 60 35 60 39 52 20 294 10.50 6
Chettinad 7 0 15 32 39 58 41 192 6.86 7
Coromondal 154 186 140 44 6 2 0 532 19.00 2
Ramco 14 36 70 120 45 24 16 325 11.61 5
Others 7 60 30 100 117 8 10 332 11.86 4

Findings:

From the above table, it is found that UltraTech Stands first in customer preference as it
is ranked 1st, Coromondal ranks 2nd, Zuari holds the 3rd rank, others ranks 4th, Ramco holds the 5th
rank, Dalmia is in 6th rank, and Chettinad in the 7th rank.

Inference:

As per the preference of the customer, Ultratech holds the 1st rank.

CHART NO 3.2.7

82
CHART SHOWING THE BRANDS MOSTLY PREFERRED BY THE CUSTOMERS

700
600
500
400
300
200
100
0
Ultra Dalmi Chetti Coro Ramc Other
Zauri
Tech a nad mond o s
RANK 1 3 6 7 2 5 4
SCORE 620 365 294 192 532 325 332

Chi – Square Test:

83
Null Hypothesis:
Ho: There is no significant difference in the brands preferred by the customer.
Alternate Hypothesis:
H1: There is significance difference in the brands preferred by the customer.

Calculation for chi square test:

∑f = 95
n =7
Ei = ∑f / n
Ei = 13.7

Oi Ei (Oi - Ei) (Oi - Ei) 2 (Oi - Ei) 2 / Ei


22 13.7 8.29 68.65 5.01
13 13.7 -0.71 0.51 0.04
11 13.7 -2.71 7.37 0.54
7 13.7 -6.71 45.08 3.29
19 13.7 5.29 27.94 2.04
12 13.7 -1.71 2.94 0.21
12 13.7 -1.71 2.94 0.21
96 11.33

χ ² 0.05 at (7-1) 6df = 12.6


χ ² 0.05cal 11.33 < χ ²0.05 tab 12.6
Calculated value is lesser than tabulated value. Hence we accept Ho.

Conclusion:

It can therefore be concluded that there is no significant difference in the brands as per
the order of preference by the customer.

TABLE NO.3.2.8

84
TABLE SHOWING THE CATEGORY OF THE CUSTOMERS USING CEMENT
PRODUCTS

CATEGORY NO. OF RESPONDENTS PERCENTAGE


High income category 22 23.16
Middle income category 73 76.84
Low income category 0 0.00
TOTAL 95 100.00

Findings:

From the above table, it is found that 23.16% of the dealers suggested that customers of
cement products fall under the high income category and 76.84% of the dealers are of the
opinion that the customers belong to the middle income group.

Inference:

It is inferred that majority of the dealers (i.e.) 76.84% are of the opinion that the
customers belong to the middle income group.

CHART NO.3.2.8.

85
CHART SHOWING THE CATEGORY OF THE CUSTOMERS USING CEMENT
PRODUCTS

90.00
80.00
70.00
60.00
50.00
PERCENTAGE
40.00
30.00
20.00
10.00
0.00
High income Middle income Low income
category category category

TABLE NO.3.2.9

86
TABLE SHOWING THE TYPE OF CUSTOMER

CATEGORY NO. OF RESPONDENTS PERCENTAGE


Small-Scale buyers 12 12.63
Medium-scale buyers 65 68.42
Large-scale buyers 18 18.95
TOTAL 95 100.00

Findings:

From the above table, it is found that 12.63% of the customers are small-scale buyers,
68.42% of the customers are medium-scale buyers and 18.95% of the customers are large-scale
buyers.

Inference:

It is inferred that mostly 68.42% of the customers are only medium-scale buyers of
cements.

CHART NO.3.2.9

87
CHART SHOWING THE TYPE OF CUSTOMER

80.00
70.00
60.00
50.00
40.00 PERCENTAGE
30.00
20.00
10.00
0.00
Small Scale Medium scale Large scale
buyers buyers buyers

TABLE NO.3.2.10

88
TABLE SHOWING THE REGULAR TYPES OF CUSTOMERS

TYPE OF CUSTOMERS NO. OF RESPONDENTS PERCENTAGE


Individuals 33 34.74
Contractors 8 8.42
Mason 19 20.00
Builders 10 10.53
All the above 25 26.32
TOTAL 95 100.00

Findings:

From the above table, it is found that 34.74% are individual-type customers, 8.42% are
contractors, and 20% are masons, 10.53% are builders and 26.32% of the dealers say that they
have a mix of all types of customers.

Inference:

It is inferred that 34.74% of the respondents suggested and stated that individuals prefer
cement products mostly.

CHART NO.3.2.10

89
CHART SHOWING THE REGULAR TYPE OF CUSTOMERS

40.00
35.00
30.00
25.00
20.00 PERCENTAGE
15.00
10.00
5.00
0.00
ls

e
s

s
on

ov
or

er
ua

as
ct

ild

ab
id

ra

Bu
v

he
di

nt
In

Co

lt
Al

TABLE NO.3.2.11

90
TABLE SHOWING THE MOST PREFERRED SEGMENT FOR ULTRATECH
CEMENT

CATEGORY NO. OF RESPONDENTS PERCENTAGE


NEW HOUSE 42 44.21
REPAIR HOUSE 32 33.68
APARTMENTS 11 11.58
COMMERCIAL BUILDINGS 10 10.53
TOTAL 95 100.00

Findings:

From the above table, it is found that 44.21% of the respondents preferred Ultratech
cements to build new house, 33.68% preferred to repair house, 11.58% preferred to build
apartments and 10.53% preferred to build commercial building.

Inference:

Most of the respondents preferred Ultratech cements to build new house.

CHART NO.3.2.11.

91
CHART SHOWING THE MOST PREFERRED SEGMENT FOR ULTRATECH
CEMENT

50.00
45.00
40.00
35.00
30.00
25.00 PERCENTAGE
20.00
15.00
10.00
5.00
0.00

S
E

TS
SE

NG
US

EN
U

DI
HO
HO

TM

IL
R

BU
W

AR
AI
NE

AP

L
P

IA
RE

C
ER
M
M
CO

TABLE NO.3.2.12

92
TABLE SHOWING THE IMPACT OF THE CEMENT INDUSTRY DUE TO
RECESSION

OPINION NO. OF RESPONDENTS PERCENTAGE


Yes 33 34.74
No 30 31.58
May be 32 33.68
Not sure 0 0.00
Partly yes 0 0.00
TOTAL 95 100.00

Findings:

From the above table, it is found that 34.74% of the respondents are of the opinion that
the cement industry is being affected due to the recession, 31.58% of the respondents have given
a negative response, and 33.68% of the respondents say that it may be affected by recession in
recent times.

Inference:

It is inferred that majority of the respondents (i.e.) 34.74% are of the opinion that industry
is being affected by recession in recent times.

CHART NO.3.2.12

93
CHART SHOWING THE IMPACT OF THE CEMENT INDUSTRY DUE TO
RECESSION

40.00
35.00
30.00
25.00
20.00 PERCENTAGE
15.00
10.00
5.00
0.00
Yes No May be Not sure Partly
yes

TABLE NO.3.2.13

94
TABLE SHOWING THE BRAND SUGGESTED BY DEALERS

BRANDS NO. OF RESPONDENTS PERCENTAGE


UltraTech 60 63.16
Zuari 4 4.21
Dalmia 5 5.26
Chettinad 2 2.11
Coromondal 20 21.05
Ramco 1 1.05
Others 3 3.16
TOTAL 95 100.00

Findings:

From the above table, it is found that 63.16% of the dealers would suggest Ultratech for
their customers, 4.21% of the dealers would like to recommend Zuari, 5.26% of the dealers
would suggest Dalmia, 2.11% of the dealers would suggest Chettinad, 21.05% of the dealers
would suggest Coromondal, 1.05% of the dealers would suggest Ramco and 3.16% of the dealers
would suggest Others (“C” Category) cements.

Inference:

It can therefore be inferred that majority of the dealers (i.e.) 63.16% would suggest
Ultratech Cements to their customers.

95
CHART NO.3.2.13

CHART SHOWING THE BRAND SUGGESTED BY DEALERS

70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
ch

co

s
i

ad
ia

l
ur

da

er
m
Te

am
Za

tin

on

th
al
a

O
t
D

R
he
ltr

PERCENTAGE
o
U

or
C

96
TABLE NO.3.2.14

TABLE SHOWING THE REASON FOR RECOMMENDING


A PARTICULAR BRAND TO CUSTOMERS

REASONS NO. OF RESPONDENTS PERCENTAGE


Price 13 13.68
Brand image 21 22.11
Quality 38 40.00
Sales promotion 0 0.00
Advertisement 0 0.00
Credit period 3 3.16
Profit motive 11 11.58
All the above 9 9.47
TOTAL 95 100.00

Findings:

From the above table, it is found that 13.68% of the dealers recommend a particular
brand for price, 22.11% of the dealers recommend for brand image, 40% of the dealers
recommend for quality, 3.16% of the dealers recommend for credit period, 11.58% of the dealers
recommend for profit motive and 9.47% of the dealers recommend for all the above factors.

Inference:

Most of the dealers recommend cement products based on the quality of the products.

97
CHART NO.3.2.14

CHART SHOWING THE REASON FOR RECOMMENDING


A PARTICULAR BRAND TO CUSTOMERS

45.00
40.00
35.00
30.00
25.00
PERCENTAGE
20.00
15.00
10.00
5.00
0.00
e
t

ive
e

d
ice

lity

en

ov
t io
ag

rio

ot
Pr

ua

ab
Ad mo

pe
im

m
se
Q

he
o
d

it

it
rti
an

ed
pr

of

lt
ve

Pr
Br

Cr
s

Al
le
Sa

98
TABLE NO.3.2.15

TABLE SHOWING THE AVERAGE SALES OF ULTRATECH CEMENT

CATEGORY NO. OF RESPONDENTS PERCENTAGE


0 to 250 33 34.74
250 to 500 40 42.11
500 to 750 9 9.47
750 to 1000 13 13.68
TOTAL 95 100.00

Findings:

From the above table, it is found that 35% of the respondents have got an average sale of
0 to 250 tons, 43% have an average sale of 250 to 500 tons, 9% have an average sale of 500 to
750 tons and 14% have an average sale of 750 to 1000 tons.

Inference:

It is inferred that average sales of Ultratech cement is around 250 to 500 tons.

99
CHART NO.3.2.15.

CHART SHOWING THE AVERAGE SALES OF ULTRATECH CEMENT

PERCENTAGE

750 to
1000
14%

0 to 250
500 to 750
9% 35%

250 to 500
42%

100
Arithmetic Mean

CATEGORY MID VALUE(m) f fm


0 to 250 125 33 4125
250 to 500 375 40 15000
500 to 750 625 9 5625
750 to 1000 875 13 11375
95 36125

Mean =
∑ fm
n
36125
=
95

=380.26

The average sales of Ultratech cement is around 380.26 tones per dealer.

Conclusion:

Therefore, I conclude saying that average sales of Ultratech cement is 380.26 tons which
is around 250 to 500 tons.

101
TABLE NO.3.2.16

TABLE SHOWING THE INCREASE OF DEMAND FOR ULTRATECH CEMENT OVER A


PERIOD OF TIME

CATEGORY NO. OF RESPONDENTS PERCENTAGE


Yes 53 55.79
No 4 4.21
May be 38 40.00
Not sure 0 0.00
Partly yes 0 0.00
TOTAL 95 100.00

Findings:

From the above table, it is found that 55.79% of the respondent are of the opinion that
they have got an increase in the demand for Ultratech cement, 4.21% of the respondents say that
there is no increase in demand, 40% of the respondents suggested that there may be an increase
in the demand for Ultratech cement.

Inference:

Most of the respondents suggested that there is an increase in demand for Ultratech
cement over a period of time (i.e.) 55.79%.

102
CHART NO.3.2.16

CHART SHOWING THE INCREASE OF DEMAND FOR ULTRATECH CEMENT OVER A


PERIOD OF TIME

60.00

50.00

40.00

30.00 PERCENTAGE
20.00

10.00

0.00
Yes No May be Not sure Partly
yes

103
TABLE NO.3.2.17

TABLE SHOWING THE COMPETITVE SCENARIO OF ULTRATECH CEMENT

COMPETITVE NO. OF RESPONDENTS


SCENARIO PERCENTAGE

Very Healthy 23 24.21

Healthy 33 34.74

Average 36 37.89
Poor 3 3.16

Very Poor 0 0.00


TOTAL 95 100.00

Finding:

From the above table, it is found that 24.21% of the respondents agreed that the
competitive environment is Very Healthy, 34.74% of the respondents feel that it is Healthy,
37.89% of the respondents agree that it is Average and 3.16% of the respondents say that the
Competitive environment of Ultratech Cement is poor.

Inference:

104
Most of the respondents suggested that the competitive climate for Ultratech Cement is
average.

CHART NO.3.2.17

CHART SHOWING THE COMPETITVE SCENARIO OF ULTRATECH CEMENT

40.00
35.00
30.00
25.00
20.00 PERCENTAGE
15.00
10.00
5.00
0.00
Very Healthy Average Poor Very
Healthy Poor

105
Chi – Square Test:
Null Hypothesis:
Ho: There is no significant difference in the dealer’s opinion regarding the competitive
scenario.

Alternate Hypothesis:
H1: There is significant difference in the dealer’s opinion regarding the competitive
scenario.

Calculation for chi square test:

∑f = 95
n =5
Ei = ∑f / n
Ei = 19

Oi Ei (Oi - Ei) (Oi - Ei) 2 (Oi - Ei) 2 / Ei


23 19.0 4.00 16 0.84
33 19.0 14.00 196 10.32
36 19.0 17.00 289 15.21
3 19.0 -16.00 256 13.47
0 19.0 -19.00 361 19.00
95 58.84

χ ² 0.05 at (5-1) 4df = 9.49


χ ² 0.05cal 58.84 > χ ²0.05 tab 9.49
Calculated value is greater than Tabulated value. Hence we reject Ho

106
Conclusion:

Therefore, it can be concluded that there is significant difference in the dealer’s opinion
regarding the competitive climate for UltraTech Cement.

TABLE NO.3.2.18

TABLE SHOWING MEASUES TAKEN FOR MASS PUBLICITY

CATEGORY R1 R2 R3 R4 R5 TOTAL
Hoarding and
Banner 15 17 62 1 0 95
Wall Painting 16 73 6 0 0 95
TV Advertisement 64 5 26 0 0 95
News Paper
Advertisement 0 0 1 94 10 105
Radio
Advertisement 0 0 0 0 95 95

Rank 1 2 3 4 5
Weight
s 5 4 3 2 1

WeightedAv erage =
∑(WeightedFo rColumn * NumberOf Re spondents )
TotalWeigh t

Total Weight = 5 + 4 + 3 + 2 + 1 = 15

107
CHART NO.3.2.18

CHART SHOWING MEASUES TAKEN FOR MASS PUBLICITY

450
400
350
300
250
200
150
100
50
0
Hoarding Wall TV News Radio
and Painting Advertise Paper Advertise
RANK 3 2 1 4 5
SCORE 331 390 418 201 95

108
TABLE: 3.2.18.1

TABLE SHOWING THE WEIGHTED AVERAGE

CATEGORY 1 2 3 4 5 TOTAL AVERAGE RANK


Hoarding and
Banner 75 68 186 2 0 331 22.07 3
Wall Painting 80 292 18 0 0 390 26.00 2
TV Advertisement 320 20 78 0 0 418 27.87 1
News Paper
Advertisement 0 0 3 188 10 201 13.40 4
Radio
Advertisement 0 0 0 0 95 95 6.33 5

Findings:

From the above table, it is found that TV advertisement holds the 1st rank, wall painting
holds the 2nd rank, Hoarding and Banner holds the 3rd rank, Newspaper Advertisement holds the
4th rank and Radio Advertisement holds the 5th rank.

Inference:

It is inferred that TV advertisement plays an important role in the Brand Promotion.

109
Chi – Square Test:
Null Hypothesis:
Ho: There is no significant difference in the various measures undertaken for mass
publicity towards Brand Promotions.

Alternate Hypothesis:
H1: There is significant difference in the various measures undertaken for mass
publicity towards Brand Promotions

Calculation for chi square test:


∑f = 95
n =5
Ei = ∑f / n
Ei = 19

Oi Ei (Oi - Ei) (Oi - Ei) 2 (Oi - Ei) 2 / Ei


22 19.0 3.00 9.00 0.47
26 19.0 7.00 49.00 2.58
28 19.0 9.00 81.00 4.26
13 19.0 -6.00 36.00 1.89
6 19.0 -13.00 169.00 8.89
95 18.11

χ ² 0.05 at (5-1) 4df = 7.81


χ ² 0.05cal 18.11 > χ ²0.05 tab 7.81
Calculated value is greater than the Tabulated value. Hence we reject Ho.

Conclusion:

110
Therefore, it can be concluded that there is significant difference in the various measures
undertaken for mass publicity towards Brand Promotions.

TABLE NO.3.2.19

TABLE SHOWING FACTORS OF VITAL IMPORTANCE AS PER THE DEALER’S


PERCEPTION

INFLUENCING NO. OF RESPONDENTS PERCENTAGE


FACTORS
Dealer meets 31 32.63
Sub-Dealer meet 7 7.37
Gift item 7 7.37
Foreign tour 34 35.79
Van program 6 6.32
New Year Calendar
and Dairy 10 10.53
TOTAL 95 100.00

Findings:

From the above table, it is found that 32.63% of the respondents feel that the Brand
Promotion can be done by Dealer’s Meets, 7.37% of the respondents say that it is by Sub-
dealer’s meet, 7.37% of the respondents say that it is by Gift Item, 35.79% of the respondents
say that it is by Foreign Tour, 6.32% of the respondents say that it is by Van Program, 10.53% of
the respondents say that it is by New Year Calendar and Diary.

Inference:

111
It is inferred that most of the Brand Promotion takes place because of foreign tour.

CHART NO.3.2.19

CHART SHOWING FACTORS OF VITAL IMPORTANCE AS PER THE DEALER’S


PERCEPTION

40.00
35.00
30.00
25.00
20.00 PERCENTAGE
15.00
10.00
5.00
0.00
iry
ts

m
ur
m
ee
ee

ra

Da
to
ite
m

og
m

n
ift

d
er

ig

pr
er

an
G

re
al
al

n
De

Fo

ar
Va
De

nd
b-
Su

le
Ca
ar
Ye
w
Ne

112
TABLE NO.3.2.20

TABLE SHOWING THE COMPLAINTS ABOUT ULTRATECH CEMENT PRODUCTS

OPINION NO. OF RESPONDENTS PERCENTAGE


Yes 13 13.68
No 82 86.32
TOTAL 95 100.00

Findings:

From the above table, it is found that only 13.68% of the respondents have complaints
about Ultratech cement products and 86.32% of the respondents have no complaints about
Ultratech cement products.

Inference:

Most of the respondents stated there are no complaints about Ultratech cement products.

113
CHART NO.3.2.20

CHART SHOWING THE COMPLAINTS ABOUT ULTRATECH CEMENT


PRODUCTS

100.00
90.00
80.00
70.00
60.00
50.00 PERCENTAGE
40.00
30.00
20.00
10.00
0.00
Yes No

114
Interval estimation:

Yes –> p = 13/95 = 0.14


No – > q = 1-p => 1-0.14 =0.86

Formula:
p±z ((p*q)/n)
0.14 ± 1.96 ((0.14*0.86)/95)
0.14 ± 1.96 (0.1204) /95
0.14 ± 1.96 *(0.0356)
0.14 ± 0.07

Conclusion:

Therefore, the percentage of interval of complaints about Ultratech Cement Ltd is in the
range of 0.14 ± 0.07 which in turns lies in between 7% to 21%.

115
116
3.3 FINDINGS

• Majority of the respondents (i.e) 50.53% are mostly having dealership above 10 years.
• 54.74% of shops deal with Ultratech cement products among all other brands.
• Majority of the customers (i.e.) 32.63% are greatly influenced by brand image for
purchasing cement products.
• Quality plays a dominant role in influencing the purchasing behaviour of customers as it
is ranked first.
• There is a significant difference in the various factors in influencing the purchasing
behaviour of customers towards Ultratech cement.
• Most of the respondents suggest that Price and Quality are the most influencing factors in
purchase of cement.
• The influencing factors like Price and Quality are in the range of 0.94 ± 0.47 and the
population proportion lies in between 89% to 98%. Therefore, it can be concluded that
Price and Quality are the most influencing factors in purchase of cement.
• Majority of the dealers suggested Price, Quality and Brand Image are highly satisfied
• As per the preference of the customer, Ultratech holds the 1st rank
• There is no significant difference in the brands as per the order of preference by the
customer.
• Majority of the dealers (i.e.) 76.84% are of the opinion that the customers belong to the
middle income group.
• Mostly 68.42% of the customers are only medium-scale buyers of cements.
• 34.74% of the dealers suggested and stated that individuals prefer cement products
mostly.
• 44.21% of customers prefer Ultratech cements to build new house.

117
• Majority of the respondents (i.e.) 34.74% are of the opinion that industry is being
affected by recession in recent times.
• Majority of the dealers (i.e.) 63.16% would suggest Ultratech Cements to their customers.
• Most of the dealers recommend cement products based on the quality of the products.
• Average sales of Ultratech cement is 380.26 tons which is around 250 to 500 tons.
• According to arithmetic mean the average sales of Ultratech cement is 380.26 tons
• Most of the respondents suggested that there is an increase in demand for Ultratech
cement over a period of time (i.e.) 55.79%.
• Most of the respondents suggested that the competitive climate for Ultratech Cement is
average.
• There is significant difference in the dealer’s opinion regarding the competitive climate
for UltraTech Cement.
• TV advertisement plays an important role in the Brand Promotion.
• There is significant difference in the various measures undertaken for mass publicity
towards Brand Promotions.
• Most of the Brand Promotion takes place because of foreign tour.
• Most of the dealers stated there are no complaints about Ultratech cement products.
• Complaints about Ultratech Cement Ltd are in the range of 0.14 ± 0.07 which in turns lies
in between 7% to 21%.

118
119
3.4 SUGGESTIONS

• The brand may be further popularized through advertisements, sales promotions etc

• Free samples and workshops may be conducted to make the UltraTech brand popular

• Company shall have to concentrate more on attracting new customers.

• Some dealers are suggesting for shop painting and banners, which can be used to attract

more customers.

• The reach to the rural market may be strengthened.

• The transportation facilities and on time delivery may be enhanced.

• The organization may focus on Apartments, Commercial Buildings segments which can

be helpful to increase the sales volume the organization

120
121
3.5 CONCLUSION

The market research has revealed many facts and figures about the cement scenario in the
market prevailing. Cement is Major contribution to increase the economic level of national
income. Cements are allocated to segment wise like, new house, Repair House, Apartments,
Commercial buildings.

People who are using UltraTech cements are completely satisfied by its price, quality and
performance, because UltraTech has the technological edge over the other competitors as it uses
the world class technology in manufacturing their cement. The customer service is very
satisfactory and also the sales promotion aspect. There is still a huge market potential for
UltraTech cements, The market survey shows that customer prefer UltraTech cement mostly for
building New house and for Repair work segment mostly and from the survey it is evident that
UltraTech is leading all other brands in Chennai.

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 according to
their preferences of each segment. Survey also enabled us to find the maximum number of share
of each brands holds a distinguished among the various shops based on the segmentation and
know which brand deals more according to the segment like New House, Repair Work,
Apartments, and Commercial Buildings. It is therefore be inferred that UltraTech cement plays a
vital role in cement industry and one of the leading cement players in city of Chennai.

122
123
A study on Customer Inclination towards segmentation of cement products
with reference to UltraTech Cement Ltd.
__________________________________________________________________
Name of the shop :
Dealer’s name :
Address :
Contact no :
__________________________________________________________________
1. How many years are you in the dealership of cement products?

 <1year  1- 2 year’s  2 - 5 years  5 – 10 years  > 10 years

2. The brand you mostly deal with?

 UltraTech  Zauri  Dalmia  Chettinad  Coromondal


 Ramco  others

3. Rank the following brands as per the order of preference by the customer
Brands Rank
UltraTech
Zauri
Dalmia
Chettinad
Coromondal
Ramco
Others

124
4. Whether industry is affected due to the recession in recent time?

 Yes  No  May be  Not sure  Partly yes

5. Customers of cement product mainly belong to ________________


 High income category
 Middle income category
 Low income category

6. Your customers are ___________

 Small Scale buyers


 Medium scale buyers
 Large scale buyers

7. Who are your regular types of customers?

 Individuals  Contractors  Mason  Builders  All the above

8. The factor that greatly influences purchase of cement product.

 Price  Brand image  Quality


 Sales promotion Advertisement  Credit period
 All the above

9. The brand you would suggest for your customer.

 UltraTech  Zauri  Dalmia  Chettinad


 Coromondal  Ramco  others

10.Why do you suggest a particular brand to your customer?

 Price  Brand image  Quality  Sale promotion


Advertisement  Credit period  Profit motive All the above

11. Specify which segment is preferred most for Ultratech cement.

Brands New house Repair house Apartments Commercial

125
buildings
UltraTech

12.Rank the factors that influences the purchasing behaviour of customers toward
UltraTech cement

Attributes Rank
Price
Brand image
Quality
sales promotion
Advertisement
Credit period

13. Do you think price and quality are the most influencing factors in cement
purchase?
 Yes  No

14.Rate the performance of UltraTech cement with respect to various attributes

Attributes Highly Satisfied Neither Dissatisfied Highly


satisfied satisfied dissatisfied
nor
dissatisfied
Price
Brand Image
Quality
sales
promotion
Advertisement
Credit period

126
Sales service

15. Average sales of Ultratech cement per month in tonnage

Sales/Brands UltraTech

0 to 250 ton
250 to 500 Ton
500 to 750Ton
750 to 1000Ton

16. Do you think the demand for UltraTech cement has increased over a period of time?

 Yes  No  May be  Not sure  Partly yes

17.What is the competitive scenario of UltraTech cement?

 Very Healthy Healthy  Average  Poor  Very Poor

18.Rate the following attempts done for mass publicity on the basis of its
importance under the brand promotions.

Category Rating
Hoarding and Banner
Wall Painting
TV Advertisement
News Paper Advertisement
Radio Advertisement

19. Under the brand promotion, which of these get the first importance on the
dealer side?

 Dealer meets  Sub-Dealer meet  Gift item  Foreign tour


 Van program  New Year Calendar and Dairy

127
20. Do you have any complaints about Ultratech Cement products?
 Yes  No
If yes, please specify: __________________________________

Suggestions if any to improve the level of satisfaction


………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
Thank you…

128
BIBILIOGRAPHY

Books Referred:

1. Introduction to Marketing – Mc Daniel/Lamb/Hair Eight edition


2. Statistics for management – G.C.BERI, Tata McGraw Hill publishing Company Ltd.
3. Research Methodology in Commerce and Management – K.V.Rao, Sterling Publisher
Private Limited.
4. “Research Methodology” - Kothari .C.R Second Edition (1998) ‘Wishwa Prakashan
Bangalore’

Website
 www.ultratech.com
 www.google.com

 www.scribd.com

 www.wikipedia.org

Journals Referred

1. Indian Journal of Marketing, July 2009

129
Consumer Behaviour and Brand Preference towards Onida Television- An Empirical
Study with reference to Karur, Tamil Nadu.
- Dr.N.Kathrivel,Dr.N.Chandrasekaran

2. Indian Journal of Marketing, January 2010


Consumer Preferences towards Service Industry A factorial study of restaurants
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