1

CHAPTER 1
INTRODUCTION

1.1

INDUSTRY PROFILE

The Indian Paint Industry

The paint industry of India is nearly 100 years old. Its beginning can be traced to the setting up of a factory by Shalimar Paints in Calcutta in 1902. Till the Second World War, the industry consisted of just a couple of foreign companies and a few small indigenous producers. paints was being met by imports. Much of the demand for The war led to a temporary stoppage of

imports; consequently, many local entrepreneurs entered the scene and started setting up manufacturing facilities. Nevertheless, overall, the foreign companies continue to dominate the market and even now, they are active Market Leaders. Today, the organised sector of the industry consists of 14 firms of which seven are large players. In the unorganized sector there are over a thousand firms. The organized sector commands 55 per cent of the market and the unorganized sector holds the remaining 45 per cent. In the recent past, helped by a growing economy, the paint industry has recorded a healthy growth. During 1995-96, there was a 12 percent growth by the volume; production went up from 3.60 lakh tones to four lakh tones.

Industrial Paints and Decoratives two major segments

The Indian paint industry has two main market segments-industrial paints and decoratives. Industrial paints are used for protection against corrosion and rust. Presently, decorative paints account for about 70 per cent of the market while industrial paints account for the remaining 30 per cent. However, in recent years a shift has been taking place in the relative share of industrial paints and decoratives. In 1995-96 for example, industrial paints recorded a 20 per cent growth against 16 per cent in decoratives In other words, India is also gradually shifting to the global trend of industrial paints accounting for a larger share.

The industrial paints segment is further classified into automotive paints, marine paints, powder coatings, high performance coatings and others. Manufacturers of automobiles, furniture and white goods are prime consumers of industrial paints. The automobile industry accounts for 50 percent of the industrial paint market. A major part of the demand is from shipping and heavy industry. The Navy is the largest customer in this group.

1.2

COMPANY PROFILE

COMPANY CORPORATE PROFILE

Asian Paints is India's largest paint company and ranks among the top ten decorative coatings companies in the world today, with a turnover of Rs 20.67 billion (USD 435 million) and an enviable reputation in the Indian corporate world for Professionalism, Fast Track Growth, and Building Shareholder Equity.

The October' 2002 issue of Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and presented the 'Best under a Billion' award, to the company. One of the country's leading business magazines "Business Today" in Feb 2001 ranked Asian Paints as the Ninth Best Employer in India. A survey carried out by 'Economic Times' in January 2000, ranked Asian Paints as the Fourth most admired company across industries in India. Among its various other achievements, Asian Paints is the only company in India to have won the prestigious Economic Times - Harvard Business School Association of India award on two separate occasions, once in the category of "Mini-Giants" and the other in "Private sector Giants"

The company has come a long way since its small beginnings in 1942. Four friends who were willing to take on one of the world's biggest, most famous paint companies operating in India at that time set it up as a partnership firm. Over the course of 25 years Asian Paints became a corporate force and India's leading Paints Company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India.

4 Asian Paints manufactures a wide range of paints for Decorative and Industrial use. Vertical integration has seen it diversify into Speciality products such as Phthalic Anhydride and Pentaerythritol. Not only does Asian Paints offer customers a wide range of Decorative and Industrial paints, it even Customcreates products to meet specific requirements.

To keep abreast of world technology and to protect its competitive edge, Asian Paints has from time to time entered into technology alliances with world leaders in the paint industry. It has a 50:50 joint venture with Pittsburgh Paints & Glass Industries (PPG) of USA, the world leader in automotive coatings, to meet the increasing demand of the Indian automotive industry.

It has also drawn on the world's latest technology for its manufacturing capabilities in areas like powder coatings and high-tech resins - thus ensuring that its product quality lives up to exacting international standards, even in the most sophisticated product categories.

The company places strong emphasis on its own in-house R&D, creating new opportunities by effectively harnessing indigenous creativity. The Asian Paints Research & Development Center in Mumbai has acquired the reputation of being one of the finest in South Asia. With its team of over 125 qualified scientists, it has been responsible for pioneering a number of new products and creating new categories of paints. The R&D team has developed the entire decorative range of the company.

The company boasts of state-of-the-art manufacturing plants at Bhandup in the state of Maharashtra; at Ankleshwar in the state of Gujarat; at

5 Patancheru in the state of Andhra Pradesh; and at Kasna in the state of Uttar Pradesh. All the company's plants have been certified for ISO 9001 - the quality accreditation. All the company's plants have also received the ISO 14001 certificate for Environment Management Standard. The Phthalic Anhydride plant has been certified for ISO 9002 and ISO 14001 whereas the Penta plant has been certified for ISO 14001. The Penta plant will shortly receive its ISO 9002 certification.

In June 2002, Asian Paints plant in Patancheru was conferred "The Golden Peacock" award by the World Environment Foundation and the award for 'Excellence in Environment Management' by the Government of Andhra Pradesh.

Asian Paints was one of the first companies in India to extensively computerize its operations. In addition to computerized manufacturing, computers are used widely in the areas of distribution, inventory control and sophisticated MIS to derive benefits of faster market analysis for better decision making. It is a continuously evolving company deriving its cutting edge from the use of innovative IT solutions.

All the locations of the company are integrated through the ERP solution.

6 INTERNATIONAL OPERATIONS

Asian Paints operates in 23 countries across the world. It has manufacturing facilities in each of these countries and is the largest paint company in nine overseas markets. It is also India's largest exporter of paints, exporting to over 15 markets in the Asia-Pacific region, the Middle East and Africa. In 12 markets it operates through its subsidiary, Berger International Limited and in Egypt through SCIB Chemical SAE.

The countries that Asian Paints has presence in, are as follows:

Asia Bangladesh, China, Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri Lanka and Thailand. Africa Egypt & Mauritius Caribbean Islands Barbados, Jamaica, Trinidad & Tobago Europe Malta Middle East Bahrain, Dubai and Oman

7 COMPETITIVE ADVANTAGE PROFILE OF ASIAN PAINTS Competitive advantage factor Marketing Factors Companys position in the factor Market leader with 35 percent market share in the organized sector. The closest competitor does not have even half of Asian Paints market share. For over 20 years now, Asian Paints is market leader without break. Widest product range in terms of products, shades, pack sizes. More than 40 different decorative

paints, some of them offered in as many as 150 shades, most of the shades offered in eight different sizes of packing. Has gaps. Brands are quite powerful. High quality MR & MIS. Over 90% accuracy in forecasting, even month-to-month, far superior to quite a number of brands,

convering all segments and filling all

8 competitors; 100 fastest moving SKUs monitored day-to-day. Countrywide distribution; whereas the unorganised sector operates in select territories only and main competitors in the organized sector concentrate on urban centres only, Asian Paints is everywhere. Manufacturing /Operation factors A network of 13,000 dealers spread all over the country. The nearest competitor has less than 8,000. Large network of regional office and company depots and sales personnel to service the nationwide dealer network. Physical distribution far superior

compared to competitors. Finance factors Strong in inventory control; Asian

Paints average inventory level is 28 days sales while the industry average is 51 days sales Asian Paints has 45% edge in inventory carrying cost. At the same time Asian Paints service level is 85%; competitors is 50-60%. Outstanding remain within 25 days

9 sales. For competitors, its is 40 days and above. Corporate factors Asian Paints mascot Gattu the most popular and most easily recognised.

Size

advantage

in

relation

to

competition. Finesse in production planning and scheduling, matching with marketing requirements. In-house production, no outsourcing; high reliability in supplies; superior in quality assurance. Four production locations; spread

benefit.

High caliber human resource; employs maximum number of MBAs, as a proportion employees. Leader margins. ROI 40%; ROI of rest of the industry 22%. in profits and operating to total number of

10

Networth of Rs. 204 cr; against Rs. 58 cr of Nerolac and Rs. 41 cr Berger. Cash-rich.

Many accolades and awards. 1995 Corporate Excellence Award from HBSA and ET. IDBI study rated Asian Paints as one of Indias most excellent companies. Another world. High profile corporate image. Enviable track record in breaking the position of MNCs in the Indian paint industry. study rated Asian Paints

among top 5 paint manufacturers in the

11

CHAPTER 2 AIM OF THE PROJECT

2.1 OBJECTIVES

1. To study the dealers opinion about the sales performance of white cement. 2. To know the customer awareness about the white cement brands, prices etc., 3. To know the dealers role in pushing the product to the market. 4. To know the dealers situation if in case an alternative product for white cement is introduced.

12

2.2

NEED FOR THE STUDY

To find the current market position of white cement. To analysis the chance for launching the alternative product. To find the dealers expectation in white cement.

13

2.3

STATEMENT OF THE PROBLEM

In the modern business world we should adopt latest technologies while developing a new product. At present white cement market is a competitive one, the competitors using a different strategies to compete the market. While any company enters into the new product they should use USP (Unique Selling Proportion) While they launching the product to succeed in this field.

14

2.4 LIMITATIONS

In few cases, the literacy levels of the dealer were the block in getting the responses. Study is conducted only in Chennai city based on this result it is very difficult to generalize the result for the whole white cement market. Dealers were reluctant to give their actual financial results.

15

CHAPTER 3 RESEARCH METHODOLOGY

A research methodology is purely and simply the basic framework or plan for a study that guides the collection of data and analysis of the data. Among various Asian paint dealers in Chennai city, descriptive research design is adopted in data collection and analysis.

3.1 RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

3. 2 TYPE OF RESEARCH
Descriptive Research

Descriptive research includes survey and fact-findings and enquiries of different kinds. The major purpose of Descriptive Research is the description of the state of affairs, as it exists at present. The main characteristic of this type

16 of research is that the researcher has no control over the variables. He can only report what has happened and what is happening.

3.3 TYPE OF SAMPLING

Census Survey

All items in any field of inquiry constitute a Population. A complete enumeration of all items in the population is known as a census inquiry. It can be presumed that in such an inquiry, when all items are covered, no elements of chance are left and the highest accuracy is obtained.

3. 4 POPULATION SIZE

Our total population size is 106, so I have covered all Asian Paints Color World in Chennai city.

3.5

SOURCES OF DATA

Primary Data and Secondary Data

The primary data are those which collected a fresh and for the first time and thus happen to be original in character. So, the information collected from all Asian Paints Colour World through observation or through direct communication with respondents in one form or another or through personal interview is a primary data.

17 The secondary data are those, which are collected from already available sources.

3.6. DATA COLLECTION METHOD

Interview Method & Questionnaires

The interview method of collecting data involves presentation of oralverbal stimuli and reply in terms of oral-verbal responses. This method can be used through personal interview.

In questionnaires method it consist of number of questions printed in a definite order on a form, the respondents have to answer the questions on their own.

3.7 TOOLS USED

1. Percentage Analysis 2. Chi-square 3. Weighted average 4. Ranking method

18

CHAPTER 4 ANALYSIS AND INTERPRETATION

Table 4.1 DETAILS ABOUT DEALERS EXPERIENCE IN HARDWARE BUSINESS

S.No. 1 2 3 4

Particulars (in Years) Less than 1 1- 5 5-10 Greater than 10 Total

No. Of dealers 4 32 27 43 106

Percentage (%) of dealers 3.8 30.18 25.46 40.56 100

From the above table it is inferred that 40.56% of dealers have more than 10 years experience, 30.18% of dealers have 1-5 years experience, 25.46% of dealers have 5-10 years experience and 3.8% of dealers have less than 1-year experience.

19 Figure 4.1 DETAILS ABOUT DEALERS EXPERIENCE IN HARDWARE BUSINESS

more than 10 year Experience 5-10 years 1-5 years less than one year 0
3.8 25.46 30.18 40.56

10

20

30

40

50

Percentage

20 Table 4.2 DETAILS ABOUT DEALERS DEALING WITH EXTERIOR PAINTS Percentage (%) of dealers 100 0 100

Particulars Yes No Total

No. Of dealers 106 0 106

From the above table it is inferred that all the dealers are dealing with exterior paints.

Figure 4.2
DETAILS ABOUT DEALERS DEALING WITH EXTERIOR PAINTS

Dealing with paints

no

yes 0% 20% 40% 60% 80% 100%

Percentage

21

Table 4.3 DETAILS REGARDING TYPES OF PAINTS OFFERED BY THE DEALERS Percentage (%) of dealers 20.8 21.7 19.7 18.9 18.9 100

S.No. 1 2 3 4 5

Particulars Enamel Cement Paints Chunna Interior Emulsion Exterior Emulsion Total

No. Of dealers 22 23 21 20 20 106

From the above table it is inferred that 20.8% of dealers are selling enamel, 21.7% of dealers are selling cement paints, 19.7% of dealers are selling chunna and 18.9% of dealers are selling interior emulsion and exterior emulsion.

22

Figure 4.3

DETAILS REGARDING TYPES OF PAINTS OFFERED BY THE DEALERS

Exterior emulsion

18.9

Types of paints

Interior emulsion

18.9

Chunna

19.7

Ceme nt paints

21.7

Enamel 17 18

20.8 19 20 21 22

Percentage

23 Table 4.4 DEALERS TOTAL SALES OF EXTERIOR PAINTS PER MONTH

S.No. 1 2 3 4

Exterior paints sales out of total sales (%) Less than 10 Between 10-50 Between 50-80 Above 80 Total

No. Of dealers 27 60 18 1 106

Percentage (%) of dealers 25.5 56.6 17 0.9 100

The above table shows that o 56.6% of dealers have exterior paint sales range from 10- 50% of the total sales o the total sales o of the total sales o total sales 0.9% of dealers have exterior paint sales above 80% of the 17% of dealers have exterior paint sales range from 50-80% 25.5% of dealers have exterior paint sales less than 10% of

24

Figure 4.4

DEALERS TOTAL SALES OF EXTERIOR PAINTS PER MONTH

Total sales in percentage
Above 80 Between 50-80 Between 10-50 Less than 10

0.9 17 56.6 25.5

10

20

30
Percentage

40

50

60

25 Table 4.5 DETAILS ABOUT DEALERS DEALING WITH WHITE CEMENT

Whether they deal with white cement Yes No Total

No. Of dealers 106 0 106

Percentage (%) of dealers 100 0 100

From the above table it is inferred that all the dealers are dealing with white cement.

Figure 4.5
DETAILS ABOUT DEALERS DEALING WITH WHITE CEMENT
Dealing with White Cement

no

yes 0% 20% 40% 60% 80% 100%

Percentage

26 Table 4.6 DETAILS ABOUT DEALERS EXPERIENCE IN WHITE CEMENT

S.No 1 2 3 4

Particulars (in years) Less than 1 Between 1-5 Between 5-10 Above 10 Total

No. Of dealers 4 33 26 43 106

Percentage (%) of dealers 3.8 31.1 24.5 40.6 100

From the above table it is inferred that 40.6% of dealers are having more than 10 years experience, 31.1% of dealers are having between 1-5 years experience, 24.5% of dealers are having between 5-10 years experience and 3.8% of dealers are having less than 1-year experience. Figure 4.6
DETAILS ABOUT DEALERS EXPERIENCE IN WHITE CEMENT

more than 10 year Experience 5-10 years 1-5 years less than one year
0
3.8 24.5 31.1

40.6

10

20

30

40

50

Percentage

27

Table 4.7 DETAILS ABOUT THE TOP BRANDS OF WHITE CEMENT

S.No 1 2 3

Top Brands Birla JK Others Total

No. Of dealers 60 41 5 106

Percentage (%) of dealers 56.6 38.7 4.7 100

From the above table it is inferred that 56.6% of dealers said that Birla White is the top brand, 38.7% of dealers are said that JK white is the top brand and only 4.7% of dealers said that other brands are top brands of white cement.

Figure 4.7
DETAILS ABOUT THE TOP BRANDS OF WHITE CEMENT

Top Brands

Others JK Birla
0

4.7 38.7 56.6

10

20

30

40

50

60

Percentage

28 Table 4.8 FAST MOVING PACKAGES OF WHITE CEMENT

S.No 1 2 3 4 5

Packages 1 5 10 20 50 Total

No. Of dealers 37 26 4 8 31 106

Percentage (%) of dealers 35 24.5 3.8 7.5 29.2 100

From the above table it is inferred that 35% of dealers said that 1 Kg is the fast moving package, 29.2% of dealers have said that 50 Kgs is the fast moving package, 24.5% of dealers are said that 5 Kgs is the fast moving package, 7.5% of dealers have said that 20 kgs is the fast moving package and 3.8% of dealers said that 10kgs is the fast moving package.

29 Figure 4.8

FAST MOVING PACKAGES OF WHITE CEMENT

50 Kgs Fast Moving Packages 20 Kgs 10 Kgs 5 Kgs 1 Kg
0
3.8 25.46 30.18 29.2

40.56

10

20

30

40

50

Percentage

30

Table 4.9 TOTAL SALES QUANTITY OF WHITE CEMENT PER MONTH

S.No 1 2 3 4 5

Sales Quantity (in tons) Below 2 2-5 5-10 10-30 Above 30 Total

No. Of dealers 31 47 21 2 5 106

Percentage (%) of dealers 29.3 44.3 19.8 1.9 4.7 100

From the above table it is inferred that 44.3% of dealers are having sales turn over of white cement between 2-5 tons, 29.3% of dealers are having sales turn over of white cement below 2 tons, 19.8% of dealers are having sales turn over of white cement between 5-10 tons, 4.7% of dealers are having sales turn over of white cement above 30 tons and 1.9% of dealers are having sales turn over of white cement between 10-30 tons.

31 Figure 4.9

TOTAL SALES QUANTITY OF WHITE CEMENT PER MONTH

Above 30 Total Sales in Tones Between 10 to 30 Between 5 to 10 Between 2 to 5 Below 2
0 10
29.3 4.7 1.9 19.8 44.3

20

30

40

50

Percentage

32 Table 4.10 FAST MOVING BRANDS OF WHITE CEMENT

S.No 1 2 3

Brands JK Birla Others Total

No. Of dealers 39 66 1 106

Percentage (%) of dealers 36.8 62.3 0.9 100

From the above table it is inferred that 62.3% of dealers have said that Birla white is the fast moving brand, 36.8% of dealers have said that JK white is the fast moving brand and only 0.9% of dealers said that other brands of white cement are fast moving brand.

Figure 4.10
FAST MOVING BRANDS OF WHITE CEMENT
Fast Moving Brands

Others JK Birla
0

0.9 36.8 62.3

10

20

30

40

50

60

70

Percentage

33 Table 4.11 DETAILS ABOUT OPINION OF QUALITY S.No 1 2 3 4 5 Satisfaction Very high High Medium Low Very low Total No. Of dealers 56 48 2 0 0 106 Percentage (%) of dealers 52.8 45.3 1.9 0 0 100

The above table shows that 52.8% of the respondents were very highly satisfied with the quality, 45.3% of the respondents were highly satisfied with the quality and 1.9% of the respondents were medium satisfaction with the quality. Figure 4.11
DETAILS ABOUT OPINION OF QUALITY
Very Low Low Medium High Very High
0 10 20
0

Satisfaction

1.9

45.3

52.8

30

40

50

60

Percentage

34 Table 4.12 DETAILS ABOUT OPINION OF PRICE Percentage (%) of dealers 16 30.2 48.1 5.7 0 100

S.No 1 2 3 4 5

Satisfaction Very high High Medium Low Very low Total

No. Of dealers 17 32 51 6 0 106

The above table shows that 48.1% of the respondent were having medium level of satisfaction in price, 30.2% of the respondent were highly satisfied with the price, 16% of the respondents were very highly satisfied with the price and 5.7% of the respondents satisfaction was low. Figure 4.12
DETAILS ABOUT OPINION OF PRICE
Very Low Low Medium High Very High
0
16 30.2 0

Satisfaction

5.7

48.1

10

20

30

40

50

60

Percentage

35 Table 4.13 DETAILS ABOUT OPINION ON DURABILITY S.No 1 2 3 4 5 Satisfaction Very high High Medium Low Very low Total No. Of dealers 28 56 22 0 0 106 Percentage (%) of dealers 26.4 52.8 20.8 0 0 100

The above table shows that 52.8% of the respondents were highly satisfied with the durability, 26.4% of the respondents were very highly satisfied with the durability and 20.8% of the respondents have medium position of satisfaction with durability. Figure 4.13 DETAILS ABOUT OPINION ON DURABILITY
Very Low 0 Low 0 Medium High Very High
0 10
26.4 20.8 52.8

Satisfaction

20

30

40

50

60

Percentage

36 Table 4.14 DETAILS ABOUT OPINION OF SALES S.No 1 2 3 4 5 Satisfaction Very high High Medium Low Very low Total No. Of dealers 13 51 29 11 2 106 Percentage (%) of dealers 12.3 48.1 27.4 10.3 1.9 100

The above table shows that 48.1% of the respondent were highly satisfied with the sales, 27.4% of the respondent had medium satisfaction in sales, 12.3% of the respondents were very highly satisfied with sales, 10.3% of the respondents were lowly satisfied with the sales and 1.9% of the respondent were very lowly satisfied with the sales. Figure 4.14 DETAILS ABOUT OPINION OF SALES
Very Low Satisfaction Low Medium High Very High
0
12.3 1.9 10.3 27.4 48.1

10

20

30

40

50

60

Percentage

37 Table 4.15 DETAILS ABOUT OPINION OF PROFIT S.No 1 2 3 4 5 Satisfaction Very high High Medium Low Very low Total No. Of dealers 0 11 34 39 22 106 Percentage (%) of dealers 0 10.4 32.1 36.7 20.8 100

The above table shows that 36.7% of the respondents were lowly satisfied with the profit, 32.1% of the respondents were having medium satisfaction in profit, 20.8% of the respondents were very lowly satisfied with profit and 10.4% of the respondents were highly satisfied with the profit.

Figure 4.15
DETAILS ABOUT OPINION OF PROFIT
Very Low Low Medium High Very High
0 10.4 20.8

Satisfaction

36.7

32.1

10

15

20

25

30

35

40

Percentage

38 Table 4.16 DETAILS ABOUT AWARENESS OF THE PRODUCT Percentage (%) of dealers 43.4 37.7 18.9 100

S.No 1 2 3

Particulars Advertisement Brand Name Word of mouth Total

No. Of dealers 46 40 20 106

From the above table it is inferred that 43.4% of dealers have said that their customers are influenced by advertisement, 37.7% of dealers have said that their customers are influenced by brand name and 18.9% of dealers have said that their customers are influenced by word of mouth.

Figure 4.16
DETAILS ABOUT AWARENESS OF THE PRODUCT

Awarness

Word of Mouth Brand Name Advertisement

0

18.9 37.7 43.4

10

20

30

40

50

Percentage

39 Table 4.17 DETAILS ABOUT CUSTOMER PREFERENCE WHILE PURCHASING WHITE CEMENT. Purchasing Modes Brand name Quality Price levels Total Percentage (%) of dealers 40.6 44.3 15.1 100

S.No 1 2 3

No. Of dealers 43 47 16 106

From the above table it is inferred that according to the dealers, 44.3% of customers prefer quality of the product while making purchase, 40.6% of customers prefer brand name of the product while making purchase and 15.1% of customers prefer price levels of the product while making purchase.

Figure 4.17
DETAILS ABOUT CUSTOMER PREFERENCE WHILE PURCHASING WHITE CEMENT.

Purchsing modes

Price levels Quality Brand name

0

15.1 44.3 40.6

10

20

30

40

50

Percentage

40 Table 4.18 MAJOR PURPOSES OF WHITE CEMENT USAGE

S.No 1 2 3 4

Purposes First Coat Tiles Marbles Others Total

No. Of dealers 30 45 23 8 106

Percentage (%) of dealers 28.3 42.5 21.7 7.5 100

From the above table it is inferred that 42.5% of dealers are said that their customers are using white cement for joining tiles, 28.3% of dealers are said that their customers are using white cement for first coat, 21.7% of dealers are said that their customers are using white cement for marble laying and 7.5% of dealers are said that their customers are using white cement for other purposes.

Figure 4.18
MAJOR PURPOSES OF WHITE CEMENT USAGE
O thers purpose s Marble s Tiles First C oat 0 5 10
28.3 7.5 21.7 42.5

15

20

25

30

35

40

45

Percentage

41 Table 4.19 ACCEPTANCE LEVEL OF ALTERNATE PRODUCT TO WHITE CEMENT

S.No 1 2 3

Wheather they accept Yes No Undecided Total

No. Of dealers 84 10 12 106

Percentage (%) of dealers 79.3 9.4 11.3 100

From the above table it is inferred that 79.3% of dealers have said that they accept alternate product for white cement, 11.3% of dealers have said that they are not having any idea about that and 9.4% of dealers have said that they wont accept the alternate product for white cement.

Figure 4.19 ACCEPTANCE LEVEL OF ALTERNATE PRODUCT TO WHITE CEMENT

Undecided 11% No 9%

Yes 80%

42 Table 4.20 DEALERS EXPECTATIONS FROM THE ALTERNATE PRODUCT

S.No 1 2 3 4 5

Expectations Quality Regular supply Advertisement Packing and labelling Brand image Total

No. Of dealers 34 29 19 8 16 106

Percentage (%) of dealers 32.1 27.4 17.9 7.5 15.1 100

From the above table it is clear that 32.1% of dealers are looking for quality in the alternate product, 27.4% of dealers are looking for regular supply in the alternate product, 17.9% of dealers are looking for advertisement for the alternate product, 15.1% of dealers are looking for brand image in the alternate product and 7.5% of dealers are looking for packing and labelling in the alternate product.

43 Figure 4.20

DEALERS EXPECTATIONS FROM THE ALTERNATE PRODUCT

Brand image Expectations Packing & Labelling Advertisement Regular Supply Quality
0 5 10
7.5 17.9 27.4 32.1 15.1

15

20

25

30

35

Percentage

44

Weighted Average Method Analysis

Summated scales (Likert type scales)

A summated scale consists of a number of statements, which express either a favourable or unfavourable attitude towards the given object to which the respondents are asked to react. Here each level carries a scale value. The value is multiplied into the number of respondents, the total values of all levels are calculated and then the value will be compared with the table value. To find out the satisfaction level, both the calculated value and the table value will be compared which value is near to the calculated value that the value is the level of satisfaction are selected.

Standard Table

Factor Very high High Medium Low Very Low

Sample size 106 106 106 106 106

Scale value 5 4 3 2 1

Total 530 424 318 212 106

45 Likert type Scales

Utilizing the item analysis approach wherein a particular item is evaluated on the basis of how well it discriminates between those persons whose total score is high and those whose score is low develops Likert type scales. Those items of statement that best meet this sort of discrimination test are included in the final instrument. This scale consists of a number of statements, which express either a favourable or unfavourable attitude towards the given object to which the respondent is asked to react. The respondent indicates his agreement or disagreement with each statement in the instrument. The overall score represents the respondents position on the continuum of favourable unfavourableness towards an issue.

Standard Table

Factor Very high High Medium Low Very Low

Sample size 106 106 106 106 106

Scale value 5 4 3 2 1

Total 530 424 318 212 106

46 Table 4.21 OPINION OF QUALITY

Factor Very high High Medium Low Very Low

No of Respondents 56 48 2 0 0

Scale value 5 4 3 2 1 Calculated Value

Total 280 192 6 0 0 478

The figures in the above table shows that the calculated value falls near 478. So from the above table it is inferred that the quality of fast moving brand is very high.

47 Table 4.22 OPINION OF PRICE

Factor Very high High Medium Low Very Low

No of Respondents 17 32 51 6 0

Scale value 5 4 3 2 1 Calculated Value

Total 85 128 153 12 0 378

The figures in the above table shows that the calculated value falls near 378. So from the above table it is inferred that the Price of fast moving brand is high.

48 Table 4.23 OPINION OF DURABILITY

Factor Very high High Medium Low Very Low

No of Respondents 28 56 22 0 0

Scale value 5 4 3 2 1 Calculated Value

Total 140 224 66 0 0 430

The figures in the above table shows that the calculated value falls near 430. So from the above table it is inferred that the durability of fast moving brand is very high.

49 Table 4.24 OPINION OF SALES

Factor Very high High Medium Low Very Low

No of Respondents 13 51 29 11 2

Scale value 5 4 3 2 1 Calculated Value

Total 65 204 87 22 2 380

The figures in the above table shows that the calculated value falls near 380. So from the above table it is inferred that the Sales of fast moving brand is high.

50 Table 4.25 OPINION OF PROFIT

Factor Very high High Medium Low Very Low

No of Respondents 0 11 34 39 22

Scale value 5 4 3 2 1 Calculated Value

Total 0 44 102 78 22 246

The figures in the above table shows that the calculated value falls near 246. So from the above table it is inferred that the Profit of fast moving brand is medium.

51 Table 4.26 Chi-square Table Dealers Opinion about their experience in white cement and Total sales quantity per month Sales quantity / month < 2 tones 2-5 tones > 5 tones Total = Experience 5 year 15 20 3 38 5-10 year 5 15 6 26 > 10 year 10 17 15 42 Total 30 52 24 106

S.No. 1 2 3

Null Hypothesis (H0)

There is no significant relationship between dealers opinion about their experience in white cement and total sales quantity per month. There is close relationship between dealers opinion about their experience in white cement and total sales quantity per month. = 10.678 4 9.488 Significant at 5% level.

Alternative Hypothesis (H1)=

Calculated 2 value Degree of freedom Table value Result Conclusion

= = =

From the above analysis we conclude that there is close relationship between dealers opinion about their experience in white cement and total sales quantity per month.

Table 4.27

52 Chi-square Table Dealers Opinion about their experience in white cement and Acceptance of alternate new product

S.No. 1 2 3

Opinion about accept the new brand Yes No Undecided Total =

Experience 5 year 24 7 7 38 5-10 year 22 2 2 26 > 10 year 38 1 3 42 Total 84 10 12 106

Null Hypothesis (H0)

There is no significant relationship between dealers opinion about their experience in white cement and acceptance of alternate new product. There is close relationship between dealers opinion about their experience in white cement and acceptance of alternate new product. = 10.198 4 9.488 Significant at 5% level.

Alternative Hypothesis (H1)=

Calculated 2 value Degree of freedom Table value Result Conclusion

= = =

From the above analysis we conclude that there is close relationship between dealers opinion about their experience in white cement and acceptance of alternate new product.

Table 4.28 RANKING METHOD DEALERS PREFERENCE ABOUT WHITE CEMENT

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S.No. 1 2 3

Emulsion Name Birla JK Others

Total Score Rank 277 I 250 II 108 III

Interpretation From the above we found the dealers preference about white cement. First rank is occupied by Birla cement, second rank occupied by JK cement and the third rank occupied by other company cements. From the above analysis we conclude that maximum dealers preference is for Birla white cement.

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CHAPTER 5 FINDINGS

It was found that 35% of the dealers feel that 1 Kg pack was fast moving. 44.3% of the dealers were having maximum sales of 2-5 tons per month Maximum number of dealers ranked Birla White as number one. It was found that 43.4% of the customers were aware about the white cement through advertisement. 44.3% of the customer prefers white cement in quality aspects. 52.8% of the dealers were very highly satisfied with the quality of white cement. 48.1% of the dealers have felt the price of white cement is medium. 52.8% of the dealers were highly satisfied with the durability of white cement. 48.1% of the dealers indicate that the sales of white cement are high. 36.7% of the dealers feel that the profit in white cement is low. 79.3% of the dealers readily accept the alternative product for white cement. 32.1% of the dealers expect high quality in alternative product of white cement.

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CHAPTER 6

SUGGESTIONS

The researcher inferred that the dealer accept the alternative brand for the white cement. Already Asian Paints company has a good image in the market, so it is right time to launch the new product.

The researcher found that the dealers are expecting high quality in alternative product so the company should concentrate highly in quality area while they are launching the product.

The researcher suggests that the company should launch the product at an optimum cost which will be readily accepted by the dealers and this should be maximize their sales.

The researcher found that the market leader is Birla White, so they may adopt strategies to combat them while they are launching the product.

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CHAPTER 7 CONCLUSION

Cement industry plays a significant role in both the global and domestic economics. So every company must differentiate from the others by giving good quality product. Creating a favourable opinion / attitude is a important aspect in the competitive market. To create a good opinion from the dealers and customers the company should concentrate in quality and cost. Asian paints have a good image in the market for their quality.

The study reveals that Asian Paint dealers will readily accept a good Quality alternate product for white cement.

57 Graph : 19,20,22,24-27,29,31-41,43 Text : 1-18,21,23,28,30,42,44-56