Professional Documents
Culture Documents
INDEX
0
0
1. EXECUTIVE SUMMARY
In today’s scenario, Human capital is acknowledged as one of the most potent sources in
contributing directly and significantly in the growth of any organization.
This project attempts to explore the most effective “Marketing Policies and Practices” for
smoothly achieving organizational objective.
It was a research conducted to get the feedback of the Dealers and customers from different
aspects about the existing performance system of different units in the organization.
The main research objective was to understand the relevance of wide variety of methods
and techniques that can be explored towards performance of the organizational goal. In
today’s competitive world every organization is geared towards maximum return with
minimum investment. Marketing plays a vital role towards planning & controlling cost
effective manpower support.
Canalizing human energies in a predetermined desirable direction are not possible unless
harmonious relations are maintained among team members involved in business
development. The way adopted by companies to manage grievances and stress and thereby
motivating the employees and reducing employee turnover were studied through the project.
1
2. COMPANY HISTORY
• Heritage
Ours has been an interesting story – one that inspired a book. ACC was formed in
1936 when ten existing cement companies came together under one umbrella in a
historic merger – the country’s first notable merger at a time when the term mergers
and acquisitions was not even coined. The history of ACC spans a wide canvas
beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian
entrepreneurs like him who founded the Indian cement industry. Their efforts to face
competition for survival in a small but aggressive market mingled with the stirring of a
country’s nationalist pride that touched all walks of life – including trade, commerce
and business.
The first success came in a move towards cooperation in the country’s young cement
industry and culminated in the historic merger of ten companies to form a cement giant.
These companies belonged to four prominent business groups – Tatas, Khataus, Killick
Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936. Sadly, F
E Dinshaw, the man recognized as the founder of ACC, died in January 1936. Just months
before his dream could be realized.
ACC stands out as the most unique and successful merger in Indian business
history, in which the distinct identities of the constituent companies were melded into
a new cohesive organization – one that has survived and retained its position of
leadership in industry. In a sense, the formation of ACC represents a quest for the
synergy of good business practices, values and shared objectives. The use of the
plural in ACC’s full name, The Associated Cement Companies Limited, itself
indicates the company’s origins from a merger. Many years later, some stockbrokers
in the country’s leading stock exchanges still refer to this company simply as ‘The
Merger’.
A strategic alliance
The house of Tata was intimately associated with the heritage and history of ACC,
right from its formation in 1936 upto 2000. Between the years 1999 and 2000, the
Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to
subsidiary companies of Gujarat Ambuja Cements Ltd (GACL), who are now the
largest single shareholder in ACC. This has enabled ACC to enter into a strategic
alliance with GACL, a company reputed for its brand image and cost leadership in
the cement industry.
2
Holcim - a new partnership
A new association was forged between ACC and the Holcim group of Switzerland in
2005. In January 2005, Holcim announced its plans to enter into a long-term
strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja
Cements India Ltd. (ACIL), which at the time held 13.8 per cent of the total equity
shares in ACC. Holcim simultaneously announced its bid to make an open offer to
ACC shareholders, through Holdcem Cement Pvt Limited and ACIL, to acquire a
majority shareholding in ACC. An open offer was made by Holdcem Cement Pvt.
Limited along with Ambuja Cements India Ltd. (ACIL), following which the
shareholding of ACIL increased to 34.69 per cent of the Equity share capital of ACC.
Consequently, ACIL has filed declarations indicating their shareholding and declaring
itself as a Promoter of ACC.
Holcim is the world leader in cement as well as being large suppliers of concrete,
aggregates and certain construction-related services. Holcim is also a respected
name in information technology and research and development. The group has its
headquarters in Switzerland with worldwide operations spread across more than 70
countries. Considering the formidable global presence of Holcim and its excellent
reputation, the Board of ACC has welcomed this new association.
• Corporate Profile
In the 70 years of its existence, ACC has been a pioneer in the manufacture of
cement and concrete and a trendsetter in many areas of cement and concrete
technology including improvements in raw material utilisation, process improvement,
energy conservation and development of high-performance concretes.
ACC’s brand name is synonymous with cement and enjoys a high level of equity in
the Indian market. It is the only cement company that figures in the list of Consumer
Super Brands of India.
3
This ensures not just consistency in product quality but also continuous
improvements in products, processes, and application areas.
ACC has rich experience in mining, being the largest user of limestone, and it is also
one of the principal users of coal. As the largest cement producer in India, it is one of
the biggest customers of the Indian Railways, and the foremost user of the road
transport network services for inward and outward movement of materials and
products.
ACC has also extended its services overseas to the Middle East, Africa, and South
America, where it has provided technical and managerial consultancy to a variety of
consumers, and also helps in the operation and maintenance of cement plants
abroad.
• CORPORATE GOVERNANCE
The importance of Corporate Governance has always been recognised in ACC.
Much before Corporate Governance guidelines became applicable and mandatory
for listed companies, ACC had systems in place for effective strategic planning and
processes, risk management, human resources development and succession
planning. The Audit Committee in ACC was constituted as far back as in 1986. The
Shareholders-Investors Grievance Committee was formed way back in 1962 and the
Compensation Committee was convened since 1993. The Company’s core values
are based on integrity, respect for
the law and strict compliance thereof, emphasis on product quality and a caring
spirit. Corporate Governance therefore in ACC is a way of life.
4
It is the continuous endeavour of the Board of Directors to achieve the highest
standards of Corporate Governance through the adoption of a strategic planning
process, succession planning for attracting, motivating and energizing human
resources, identification of major risks and the way and means to manage such
risks, an effective communication policy and integrity of Company’s internal control
systems. The Board of Directors are also constantly looking at ways and means to
ensure that the most effective use is made of the scarce resources at its disposal
and that the management and employees have the freedom to take the Company
forward within the framework of effective accountability.
The Annual Reports, press releases and other communication have always made full
disclosures on various facets of importance to the stakeholders, particularly with
regard to information relating to financial matters, company’s
operations/performance, stock movements etc.
• HUMAN RESOURCES
ACC has a large workforce of about 9,000 people, comprising experts in various
disciplines assisted by a dedicated workforce of skilled persons. ACC employees
referred to as the ACC Parivar, come from all parts of the country and belonging to a
variety of ethnic, cultural and religious backgrounds. ACC employees display a
strong sense of loyalty to the Company and their special stellar qualities as ‘value-
adding’ human capital are well known in the industry.
A) Recruitment
5
B) Performance management
D) Employee satisfaction
The overall findings show significant job satisfaction at all levels as also deep
respect for the company, its performance management system and its overall
business performance.
6
• IT Infrastructure
ACC is one of the first Indian companies to realize the potential and importance of
information technology and adopt automation and IT. We started computerizing our
systems as early as 1968 - a commitment to progress through the harnessing of
relevant available technologies, a habit that continues even today.
We have traveled a long way from the days in 1968 when we were using simple
keypunching machines. Significant improvements have been made in the application
systems and infrastructure. From Batch processing to on-line systems, from
IBM1401 to the latest UNIX and Windows 2003 based machines we have made
timely transitions determined by available technologies and business requirements.
We are currently in the process of making a quantum jump from our current in-house
developed systems using Oracle 9i and Developer 6i to an ERP based solution. This
decision was solely based on our strategic objectives and the business benefits that
we expect to derive from implementing such a solution. With this move we will also
align people, business processes and technologies across the country.
Situated at Kalamboli, in Navi Mumbai (formerly New Bombay), this company caters
to bulk cement requirements of the city of Mumbai and its environs. It has two
cement storage silos with a capacity of 5,000 tons each. The plant receives cement
in bulk from ACC plants at Wadi. The plant has its own special purpose railway
wagons and rakes and its own railway siding. The first of its kind in India, BCCI is
equipped with all the facilities required by increasingly sophisticated construction
sites in a bustling metropolis, including a laboratory, a fleet of specialized trucks and
site silos for the convenience of customers and is capable of offering loose cement in
bulk-tanker vehicles as well as packed cement in bags of varying sizes from 1 tonne
down to 25 kg bags. BCCI is situated strategically on the outskirts of Mumbai, just off
the new Mumbai-Pune Expressway. It is a landmark structure spread over 30 acres
of land.
7
B) ACC Machinery Company Limited (AMCL)
• Milestone
1936 Incorporation of The Associated Cement Companies Limited on August
1, 1936.
1936 First Board Meeting of The Associated Cement Companies Limited held
at Esplanade House, Mumbai on November 10, 1936.
1937 With the transfer of the 10th company to ACC, viz. Dewarkhand Cement
Company, the formation of ACC is complete on October 23, 1937.
1955 Sindri cement works used the waste product calcium carbonate sludge
from fertilizer factory at Sindri.
8
1965 ACC’s Central Research Station (CRS) established at Thane
1977 ACC receives ASSOCHAM first national award for the year 1976
instituted for outstanding performance in promoting rural and agricultural
development activities.
1978 Introduction of the energy efficient precalcinator technology for the first
time in India. Full scale commercial production based on MFC technology
at Wadi in 1979.
1979 ACC wins international contract for operation and management of a new
one million tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia.
1987 ACC develops a new binder for use at sub-zero temperatures, which is
successfully used in the Indian expedition to Antarctica.
1992 Incorporation of Bulk Cement Corporation of India, a joint venture with the
Government of India.
9
1993 ACC starts the commercial manufacture of Ready Mixed Concrete at
Mumbai.
1998 Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar
Pradesh.
1999 Commissioning of captive power plants at the Jamul and Kymore plants
in Madhya Pradesh.
1999 Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings
Ltd, a subsidiary of Gujarat Ambuja Cements Ltd. (GACL)
2000 Tata Group sells their remaining stake in ACC to the GACL group, who
with 14.45% now emerge as the single largest shareholder of ACC.
10
3. RESEARCH AND METHODOLOGY
Research is an ORGANIZED and SYSTEMATIC
SYSTEMATIC because there is a definite set of procedures and steps which you will
follow. There are certain things in the research process which are always done in
order to get the most accurate results.
A. Mode of Analysis:
D. Sources of Data
The relevant data was collected from secondary sources. The starting point of my
information gathering has been the secondary sources such as internet, books, and journals
and so on
11
4. INTRODUCTION OF MARKETING
• Basic concept:
“Marketing is a basic that, it can’t be consideration a separate function. It is the whole
business seen from the point of view”.
The world economy has undergone a radical transformation in the last two decades.
Geographical and cultural distance have shrunk significantly with the improvement in the
production, transportation and communication. These advances have permitted companies
to widen substantially both these markets and their suppliers sources. And thus the role of
marketing becomes wide.
Marketing is the specialization subject of BBA Curriculum. When aflood of consumer product
are coming into the market, every company needs people specialized in marketing to
promote their product.
The 21st century is the era of Advertising, Marketing and sales promotion. Marketing is to
convert social needs into profitable opportunities. As it is said “Marketing thinking starts with
the needs and wants”.
Apart from basic necessities of air, water, shelter, and clothing, every person has some
desire of recreation and entertainment. They have strong preference for parttcular brand of
basic services. Marketing serves as the link between the society’s needs and its pattern of
industrial response.
• Market:
It is important to note that the how of the term market is not on the place, rather it is on the
meeting of buyer and seller. Since, conventionally the buyers used to meet the sellers at a
physical location, the term market to buyers used to meet the sellers at the physical location,
the term market began to acquire used to refer to a place, however, it is not correct to do so.
Buyers & sellers can conduct business without meeting at a place, by telephone, mail, and
now Internet.
• Customer:
Market is not possible without customers or buyers. Customers refer to the people or
organization that seek satisfaction of their needs and wants.
12
• Marketers or Seller:
If the customer is the seeker at satisfaction, the marketer is the deliverer or provider
of satisfaction. In the normal usage, the provider of goods or services, called seller.
• Marketing:
The important elements for a marketing exchange to take place are:
• Presence of an at least two parties: Buyer and seller or customer and marketer or
offeror and taker.
• Both parties must have something viewed valuable by each other.
• Both parties are free to accept or reject the offer.
• Each party is capable to communication and delivery.
• Business Concept:
Marketing efforts may be guided by different philosophies like:
A) Production Concept
Some firms believe that potential exchange would be realized when the products are in
expensive and are widely available.
B) Product Concept
The product concept propose that the way to realizing business goals lies in making
products that are of high quality.
C) Selling Concept
Some firms organize their efforts according to selling concept. It holds that
customers if left alone would not buy or not buy enough of a firm’s products.
D) Marketing Concept
13
• Understanding needs and wants of customer in the target market.
The marketing concept is extended to include the social goals in the need
satisfaction process. That is , the firm must perform marketing in a fashion that
well being is enhanced.
• MARKETING MANAGEMENT
In common, parlance people often take marketing and selling to be the same.
Selling and marketing differ in terms of their goals and the means to be employed
in achieving them. If some one wants to find out whether a player in the market is
a seller or marketer then his goal and how he tries to achieve the same need to
be ascertained.
• FUNCTIONS OF MARKETING
Marketing helps the firm to realize its profit goal by actualizing potential exchange
with the customers. More especially the following are function involved in
marketing.
1) Marketing research
2) Product planning
3) Buying and assembling
4) Packaging
5) Storage and warehousing
6) Transportation
7) Promotion and selling.
14
PROMATION
Once the product has been manufactured, priced rightly and is distributed, the next
task of the marketers is to inform potential customers about the product and
persuade them to buy the same. It concern with the activities that are undertaken to
communicate with the both customers and the participants.
• Media Selection
1. Newspapers
2. Magazines
3. Television
4. Radio
5. Out door Display
6. Internet
• Sales Promotion
1. Rebates
2. Discounts
3. Refunds
4. Premiums
5. Quantity Deals
6. Sampling
7. Contests
8. Free in Mail Premium
9. Packaged Premium
10. Container Premium
15
5.Marketing at Acc Limited
The key players in the country include ACCL limited, Larsen& Turbo, Grasim Industries,
Gujarate Ambuja Cement and India cement Limited. The major players in the cement
industry have posted encouraging numbers for Q’3 FY’06 riding on the buoyant demand for
cement consumption due to resurgence of the construction activities across the country post
mansoon period. Robust volume growth as well as appreciation of the cement prices in
almost all parts of the country helped the industry to record a strong performance.
L&T
15%
Lafarge
India Ltd. ACC
43% 17%
Grasim
Gujarat
Industries
Ambuja
13%
12%
A cement industry was profitable one time many businessmen changed their product line to
cement industry looking at the profit of the cement company. At that stage many cement
companies came into existence to meet the requirement. As this was a long-term investment
in the industry so many companies are facing close competition in the particular scenario. To
sustain in the market many companies are reducing their price and giving value added
products to keep intact with their costumers. Continuous technological upgrading and
assimilation of latest technology has been going on in the cement industry. Presently 93% of
the total capacity in the industry is based on modern and environment – friendly dry process
technology and only 7% of the capacity is based on cold wet and semi – dry process
technology to reduce down their manufacturing cost. Maintaining this lead calls for
harnessing the resources and expertise of the company – from applied research and
production to marketing.
16
ACC Limited has high efficiency state-of –art pollution control equipments and devices.
Each of its manufacturing units has a separate environment section managed by a qualified
environmental engineer and supporting staff. Our plants, mines and townships demonstrate
the company’s successful endeavors in greening activities as aforestation, tree planting,
horticulture, vegetable and cultivation apart from basic landscaping designed to enrich and
beautify the environment. Cleaner mining techniques have helped safeguard and conserve
mineral resources. In addition, we have taken other positive measures such as topsoil
conservation, efficient water management system and the treatment of wastes, sewage and
effluents. Some of our plants have become near self reliant in their water requirements. ACC
has achieved spectacular results in the utilization of two hazardous and pollutant industrial
waste – namely slag from steel plants and fly – ash from thermal power stations – to make
blended cements that have conserved lime stones resources. Over the years, ACC has won
several prizes and certificates of merits for environmental measures undertaken at its
various plants and mines. In particular for programs involving greening, forestation,
rehabilitation of mines, noise abatement and other visible measures such as tree plantation
and water management.
India is the world’s second largest cement producing country after China. The industry
is characterized by high degree of fragmentation that has created intense comparative
pressure on price realizations. Spread across the length and breath of the country, there are
120 large plants belonging to 56 companies with an installed 135 million tons as on march
2002.
Companies Mn tons
L&T 16.00
ACC 18.00
17
Birla Corp. Ltd. 4.11
• Quality Policy
• Satisfy Customer fully & continuously by supplying products as per their requirement.
• Comply all relevant requirements of quality management system.
• Provide framework for establishing quality performance.
• Continual improvement in quality performance by periodic evaluation and review of
quality policy and objectives for continuing suitability.
• Comply with all relevant rules and regulations pertaining to product.
(Vice-President)
18
6.ANALYSIS AND INTERPRETATION
NON-
CEMENT
40%
CEMENT
60%
It shows 60% of the dealers of the company are deals with cement outlet and 40% of
the dealers using Non-cement outlet.
Q 2. Dealer’s Classification:
A) ACC (Exclu.)
B) Non-ACC (Excl)
C) ACC (MB)
D) Non-ACC (MB)
19
35%
30%
25%
20%
Series1
15%
10%
5%
0%
NON ACC-
ACC-MB
NON ACC
DEALER
DEALER
ACC Exclu
SUB
SUB
Excl
MB
Excl
MB
1.2 Graph Shows Classification of dealers
20% Dealers comes under Non-ACC (MB) and 15% dealers comes under Non-ACC (MB),
these dealers deals with Mixed brand of Acc Cement and they also deals with other brands.
Another classification of dealers are Sub-Dealer (Exclusive), after analyzing it is 10% and
the Sub-Dealers Mixed Brand is 5%.
40%
30%
20%
10%
0%
0-3 Years 4-7 years 8-10 Above
Years This
Series1 25% 33% 22% 20%
2.
20
Analysis and interpretation
On the other hand 22% Businessmen continuing their business under 8-10 years and 20%
businessmen doing their business Above 10 years.
POOR
GOOD 20%
37%
AVER
AGE
43%
1. LOW
2. AVERAGE
3. HIGH
LOW
25%
HIGH
45%
AVERAGE
30%
21
Analysis and interpretation
This Pie Chart clearly shows the GROWTH RATE of shop in percentage that deals with
cement product. In this chart 45% dealers shop have high growth rate, 30% dealers shops
have average growth rate and 25% dealers shop are located in poor place have low growth
rate.
INFRASTRUCTURE DETAILS
Manpower Details:
1. Collection
2. Shop Management
3. Laborers
1. Trucks
2. 2Whlrs
3. VAN
4. THELA
5. AUTO
6. Other
35%
30%
25%
20%
Series2
15%
10%
5%
0%
Truck 2wheeler Van Thela Auto Others
22
Analysis and interpretation
This tally bars clearly shows other sources of Godowns in which for transportation of cement
and delivery they uses 30% through Trucks, 20% through Thela and Auto, on the other hand
2Wheelers and other sources is 15% and finally Van is 10%.
4. Do you have a home delivery system from yours counter/ Godown or your
customer picks up himself (in %)?
1. Pickup
2. Delivery
Delivery System
Delivery 60%
Sources
Series1
Pickup 40%
%age
5. What are the other construction products you are dealing with?
1. Bricks
2. Aggregates
3. Sand
4. Tiles
5. Paint
6. Hardware
7. Other
23
Other Construction Products in
which dealers are dealing
Other Brikes
12% 20%
Hardware Aggregat
30%
Sand es
Paint Tiles 5% 15%
8% 10%
1.8 Graph shows other construction product in which dealers are dealing
This Pie Chart shows that other Construction Products in which dealers are dealing 30%
Dealers are deals with hardware, 20% with Bikes with cement, 15% Dealers deals with
Aggregates with cements and on the other hand 8% are deals with paints, 10% deals with
Tiles and 12% dealers are dealing with other product also along with cement.
1 ACC
2 AMBUJA
3 UTCL
4 BIRLA PLUS
24
Analysis and interpretation
I am authorized dealer of ACC Limited, but I am also dealing with Ambuja cement, Birla plus
and some mini plant cements.
9. Please give a brief on present and past sales performance Brand wise:
1.9 Table shows present and past sales performance brand wise of individual dealers
In spite of all these ACC Limited maintains their sales record from 2004 to 2007, there is
hues increment in sales of Acc cement in 2007, all these are possible only due to proper
distribution of cement product, adaptation of flexible policies, analysis of market demand and
quality of product.
25
7. SUGGESTIONS
ACC should come out with such an advertisement, which can block the customers mind
and can change the customer’s perception about the product.
In the new market scenario price is considered as the main attribute of a product, which
can stimulate maximum number of customers.
More improvement is required in the distribution network in the out skit and in the remote
areas, because in the peak season the small dealers are taking goods twice or thrice
and in between if the distributors could not supply them, the competitors will get the
opportunities to supply the goods.
Salesmen should have good interaction with dealers, which result company in increases
sales.
Executive should take the feedback from the dealers about the services of the salesman
and distributors.
The entire ACC product should be displayed at one place so that the customer can be
aware about the different types of cement.
The company has to take serious step for changing its packaging style as many local
companies are imitating the same and confusing the customers.
Regular visit of sales force is required to solve the problem of dealers in the market at
the right time.
26
8.CONCLUSION
The conclusion of this project report is that ACC Limited company 7 its product are
the profitable not only in India but also in the whole world. Its main competitor is
Lafarge. In Duopoly market cement product has 65% market share. As far as ACC
Cement works has got a brand name which is very popular among the consumers
due to its good quality service chain. Keeping pace with changing times and an ever-
growing need for specialized services, ACC has begun offering its marketing
expertise and distributaries facilities to other producers in cement and related areas.
However a precondition of all such agreement is quality control supervision to be
carried out by an ACC expert located at the franchisee’s plant. Each of the regional
Marketing offices has a customer services cell that is manned by qualified civil
engineers. These, in addition to handling after-sales servicing, function as advisory
bodies that can help customers, make the right choice of cement for a specific area
of application. ACC can provide expert advice on getting the best value from cement
and offer assistance on related issues in civil construction projects.
Most outlet owners are experienced and old hand in this business. The scope for
increasing the presence (Channel Members) exists for all companies through ACC
and JP are in a relatively comfortable position here. No. of dealers of ACC is more in
comparison to other cement brand. Even if JP is at per with ACC. Generally
companies are using one level of channel of distribution. But sometime zero level is
used also.e.g.
Manufacturer – End-user
Zero level is any possible when marketing department gives order to end-user to
take their cement from manufacturing unit. The co. ( A.C.C or about cement brand )
produce facilities to his channel members such as provision for settlement of claims
regarding quality, less wt. Of packages and lumps formation of the product for a
particular period of time. ACC is preferred because it is the market leader amongst
the cement while JP is preferred due to market demand. JP does the maximum
sales promotion (i.e advertisement) in the opinion of dealers. But ACC does not give
more advertisement to promote sales. Mode of transportation of cement by road is
better one in the dealers whose shop are near to railway godown.
Minimum order acceptance by every company is 9 tonnes i.e. one truck company of
any cement don’t accept less then 9 tonnes.
From selling point of view ACC brand is no 1, JP has got 2 nd rank and TATA has got
3rd rank. It means that selling ACC brand cement is easier to other.
27
9. LIMITATIONS OF THE STUDY
In order to have a clear-cut idea of the market activities in ACC limited, I tried my level best
to cover all the aspects of the marketing activities.
10. BIBLIOGRAPHY
Books:
Journal:
Singh, S.K.” A view across global marketing”. India Journal of commerce. Vol-54
Web-Sites:
www.Acclimited.com.in
www.askACC.com
www.channelmgt.com
28