A PROJECT REPORTON

“Usage of WCP in New Construction segment:Challenges, Opportunities and Suggestions to improve in this segment.”

SUBMITTED TOMAEER’s MIT SCHOOL OF BUSINESS

BY

(HIMANSHU TIWARI)Roll No.:2804314

1

Batch No.:28TH

IN PARTIAL FULFILLMENT OFPOST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) –

Marketing

JUNE, 2011-0Y

MAEER’s MIT SCHOOL OF BUSINESS Table of

C O N T E N T S

Chapter No. Title Page No. Declaration from student IiiCertificate from Company/Organisation

Iv

Certificate from Guide VAcknowledgement ViList of Tables ViiList of Graphs ViiiList of Charts IxList if Abbreviations, if any XExecutive Summary Xi

I Introduction Approx No. of Pages. 5 - 10

1.1 Company profile 1.2 Objectives of the study 1.3 Limitations of StudyII Research Methodology Approx No. of Pages. 07-10

2.1 Primary data - if applicable2.2 Secondary data – if applicable2.3 Sample design – if applicable2.4 Population – if applicable2.5 Sample size – if applicable2.6 Sampling method – if applicable

2

2.7 Method of data collection - if applicable

2.8 Instrument for data collection - if applicable

III Theoretical Background – as applicable to the Project.

Approx No. of Pages. 10-15

3.1 Data- analysis techniques IV Data Processing and Analysis Approx No. of Pages. 20-25

V Management Lessons Approx No. of Pages. 05-10

VI Findings Approx No. of Pages. 02-03

VII Recommendations Approx No. of Pages. 01-02

VIII Conclusions Approx No. of Pages. 01-02

BibliographyAppendices / Annexure

Acknowledgements

The project as it stands today is the sincere contributions of a few spirited individuals and the help of some of my friends. I take this opportunity to express my sincere gratitude to my mentor Mr.Avinash Deshpandey for his outstanding and undeniable considerations, Mr.Milind Joshi for providing me the opportunity to work with one of the most prestigious organization.

I am sincerely indebted to Mr. Jitendra Kumar Sharma, Manager – Marketing (Regional Head – Maharashtra & Goa), UltraTech Cement Ltd.(Unit: Birla White) my special thanks to Mr.Vaibhav Pandey, Marketing officer (my company guide), Mr. Sumit Srivastava, Officer HRD Manager for their valuable suggestion, constant encouragement, silent support & unwavering confidence, without which this project would not have been possible. It was they who motivated for this cause (to do something entirely new) and always was present with their expert guidance and disciplined ideas.

I also thank the field officer for giving me a congenial environment to work in.

I would also like to thank all my friends who have bore with me during this project, apart from that, those who have helped up in some way or the other. Last but not the least I would like to extend my heartfelt thanks to my parent, who were with me when I was some expensive about the project. Their help and encouragement also proved to be a handful.

3

Himanshu Tiwari

Executive Summary

The purpose of this report is to literally act as a window to the projects undertaken as a part of the Summer Internship with the Organization Birla White Cement Works that aims to define the breadth depth and scope of the various thinking processes and mechanics that actually synthesized the projects undertaken.

Wall Putty is a new age Product and a replacement of Plaster of Paris (POP). This study was undertaken to gauge the realistic contribution of Wall putty to the surface preparation work and to enhance the scope of market share of Wall Putty in near future.

The Objective of the project that have been assigned as a part of the internship is:

1- To find out the areas in Mumbai where maximum construction is taking place.2- Collecting the database regarding the Architects, Contractors, Project Managers, and

Builders in Mumbai Region.3- Finding out the Share of POP and Wall Putty that is being used at Institutional Sites.4- Finding out the Share of Birla White Wall Care Putty at the Sites.5- Total Construction area that is happening all around Mumbai and the area of Sites which

are at finishing stage where Wall Putty can be applied so that to target those sites.

The survey was conducted in Central and Harbour region of Mumbai. For the first five weeks, I used to go to a different area every day, used to find the construction sites and get my questionnaire filled. For the next three weeks I used to go to those Sites which were already visited and got the permission for the sampling of wall putty at the sites which were in finishing stage.

It can be concluded that the survey was conducted in three parts-

1- To find out the information regarding sites.

4

The first stage of analysis was done to find out the potentials of putty as a substitute to Plaster Of Paris, the buyer’s perception about the product, the awareness level of the User about the benefits of putty, the opportunity for putty at institutional sites.

2- To get the sampling done at the visited sites.

The second stage of analysis was done to find out the key person who takes the decisions regarding the uses of products and to influence his perception regarding Wall Putty.

3- To negotiate with the decision maker of the site to persuade him to use wall putty.

In this stage the Painters were surveyed to find out their perception as the painters are major influencers in the buyer’s decision making process. A few end consumers were also interviewed to find out their attitude and awareness about the product and the different brand offerings.

• Descriptive research was undertaken to fathom the customer’s expectations from this

product and the ability of this product to satisfy the consumer’s stated and latent needs. In

this segment the builders as well the end consumers were surveyed. The construction

sites were surveyed primarily to find out the requirements of wall putty in different

projects.

Data collection was done by personally visiting the respondents at project sites. Some

of the consumer and builder survey was done through telephone as well.

The findings were intriguing. The total market share of plaster of Paris (POP) is enormous.

But this also certifies the opportunity for Putty if it can replace POP from the market. If putty

can penetrate into this market it can make substantial gain from this in the long run. At

present Putty is being primarily used for repairs and patch works, it is also used on damp

prone surfaces to get better strength and durability because of its excellent water repelling

qualities. At the big construction sites the main reason of not using the putty in place of POP

is the undulations and these undulations can only be covered by POP. The undulations cannot

easily be removed from the surfaces because there are time constraints at big projects. The

major chunk of the total market share is with still PoP but Putty is gaining foothold slowly.

The overall perception about putty is extremely favourable. All respondents felt that Putty is

a far superior product compared to plaster of Paris and they also acknowledged the benefits

derived from it. However, the respondents think that putty is a costlier product than POP

5

because they only see the product price. They felt that the price range is a bit too high for

ordinary consumers to afford it. But if we combine all the costs then it is a cheaper and a

better product.

INTRODUCTION

Cement Industry

Fast rising Government Expenditure on Infrastructure sector in India has resulted a higher demand of cement in the country. In the same direction, participation of larger companies in the sector has increased.

For raising efficiency in the sector, the Planning Commission of India in the 10th plan has formed a 'Working Group on Cement Industry'.

With an installed capacity of around 173 million tonnes per annum (mtpa), The Indian cement industry is comprised of 129 large cement plants and 300 mini-cement plants, with installed capacities of 160 mtpa and 13 mtpa respectively. Large cement plants accounted for 93% of the total installed capacity in India. The installed capacity is distributed over across approximately 129 large cement plants owned by around 54 companies.

India is the second largest producer of cement in the world. In 2005, India produced 142 mt of cement, accounting for 6.4% of global production of 2.22 billion tonnes. India is the second largest producer-behind China (1,000 mt), but ahead of the US (99 mt) and Japan (66 mt). India's cement industry-both installed capacity and actual production-has grown significantly over the past three decades, with production increasing at an average rate of 8.1% per year between 1981 and 2004-05.

In India, about 44% of the cement produced is Ordinary Portland Cement (OPC), 47% is Pozzolana Cement (PPC), 8% is Portland Blast Furnace Slag Cement (PBFS), and the remaining 1% are special cements.

The cement industry has witnessed substantial reorganisation of capacities during the last couple of years. Some examples of the consolidation witnessed during the recent past include: Gujarat

6

Ambuja taking a stake of 14% in ACC; Gujarat Ambuja taking over DLF Cements and Modi Cement; India Cement taking over Raasi Cement and Sri Vishnu Cement; Grasim's acquisition of the cement business of L&T; Indian Rayon's cement division merging with Grasim; Grasim taking over Sri Digvijay Cements; L&T taking over Narmada Cements; ACC taking over IDCOL.

Multinational cement companies have also initiated the acquisition process in the Indian cement market. Swiss cement major Holcim has picked up 14.8% of the promoters stake in Gujarat Ambuja Cements (GACL). In January 2006, Holderind Investments (Holcim Mauritius), an indirect, wholly-owned subsidiary of Holcim, acquired 200 million equity shares of GACL at a price of Rs.105 per share from the promoters. Post-sale, the share of promoters in the company is 9%. Holcim also made an open offer to acquire an additional 20% stake in GACL at Rs. 90.64 per share. Earlier, Holcim had entered into a strategic alliance with GACL, and acquired a 67% controlling stake in Ambuja Cement India.

Through this holding company, Holcim acquired a majority in Ambuja Cement Eastern and a substantial stake in ACC. Ambuja Cement India holds a 34% share in ACC and a 97% share in Ambuja Cement Eastern. Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine (capacity of 33.5 mt) and the Aditya Birla group through Grasim Industries and Ultratech Cement (combined capacity of 31.1 mt). Lafarge, the French cement major, had acquired the cement plants of Raymond and Tisco in the recent past, and has an installed capacity of 5 mtpa. Italy based Italcementi has acquired a stake in the K.K. Birla promoted Zuari Industries' cement plant in AP, with a capacity of 3.4 mtpa. Recently, Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia Group controlled Indo-Rama Cement. Heidelberg Cement is expected to take a 50% controlling stake in Indo-Rama's grinding plant of 0.75 mtpa at Raigad in Maharashtra.

Over the years, the share of the public sector in cement production has declined. While the private sector (large companies) accounts for around 95% of the total installed capacity, the share of public sector companies has declined from a level of 11% in FY1996 to around 4.4% in FY2006. The share in production of the public sector companies is even lower at 1.2% in FY2006 as compared to 6.5% in FY1996.

Major Players

As discussed, ACC is the largest player with a capacity of 18.64 mtpa at end-March 2006. UltraTech CemCo Ltd. now occupies the second slot with a capacity of 17 mtpa (which includes 1.5 mtpa of subsidiary Narmada Cement). The Gujarat Ambuja group has emerged as the third largest player with a capacity of 14.86 mtpa. Grasim ranks fourth with a capacity of 14.12 mtpa.

7

Other leading players include India Cements, Jaypee group, Century Textiles, Madras Cements, Lafarge, and Birla Corp.

Major Cement Producing States

Capacity

8

Types of Cement in India

The types of cement in India have increased over the years with the advancement in research, development, and technology. The Indian cement industry is witnessing a boom as a result of which the production of different kinds of cement in India has also increased.

By a fair estimate, there are around 11 different types of cement that are being produced in India. The production of all these cement varieties is according to the specifications of the BIS.

Some of the various types of cement produced in India are:

Clinker Cement Ordinary Portland Cement Portland Blast Furnace Slag Cement Portland Pozzolana Cement Rapid Hardening Portland Cement Oil Well Cement White Cement Sulphate Resisting Portland Cement

9

All Figures are in Percentages

Company Profile-Aditya Birla Group

A US$ 30 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of 130,600 employees, belonging to 40 different nationalities. In the year 2009, the Group was ranked among the top six great places for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates, RBL Group and Fortune magazine. 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 60 per cent of the Group's revenues flow from its overseas operations. The Group operates in 27 countries – Australia, Bahrain, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Singapore, Sri Lanka, Switzerland, Thailand, UAE, UK, USA and Vietnam.

Globally, the Aditya Birla Group is::: 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

10

:: The fourth-largest producer of carbon black

:: The fifth-largest producer of acrylic fibre

:: The eighth-largest cement producer

:: Among the best energy-efficient fertiliser plants

In India: :: One of the leading cement producers

:: The top fashion (branded apparel) and lifestyle player

:: The second-largest producer of viscose filament yarn

:: The second-largest in the chlor-alkali sector

:: Among the top four mobile telephony companies

:: Among top 10 Indian BPO companies by revenue size

:: A leading player in life insurance and asset management

:: Among the top three supermarket chains in the retail business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting.

Beyond business

Transcending business for over 50 years now, the Group has been and continues to be involved in meaningful welfare-driven initiatives that distinctly impact the quality of life of the weaker sections of society in India, South-East Asia and Egypt.

In India, the Group's social projects span 3,000 villages. It reaches out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare, education, sustainable livelihood, infrastructure and espousing social causes.

The Group runs 42 schools, which provide quality education to over 45,000 children in India's interiors. Of these, over 18,000 children receive free education. An additional 8,000 students receive merit scholarships. Likewise at its 18 hospitals in India, more than a million patients are given extremely subsidised medical care. To embed corporate social responsibility as a way of life in organisations, the Group has set up the FICCI – Aditya Birla CSR Centre for Excellence, in Delhi.

The Group transcends the conventional barriers of business and reaches out to the marginalised because of its conviction of bringing in a more equitable society.

11

Grasim Industries Overview

Grasim Industries Limited is the brightest feather in the cap of the Aditya Birla Group which one of the biggest private sector companies in India.

Grasim Industries was set up with the sole purpose of textiles manufacturing in the year 1948 but the company has entered into several commercial activities at a steady rate. Grasim Industries is numero uno in many of the sectors where it operates. 

In order to enter the Indian cement industry, Grasim Industries took over a big chunk of the total shares and also the control of the management of the UltraTech Cement Limited, which was merged with the Larsen and Toubro Cement Company in 2004. Within a very short span of time, the company was able to penetrate a big portion of the market in India. Grasim industries, including its subsidiaries, operates 7 split grinding units, 11 composite plants, 4 bulk terminals, and 10 ready mix concrete units. 

The divisions of Grasim Industries:

Viscose staple fiber: This division of the Aditya Birla Group is the biggest producer of viscose staple fiber worldwide. It fulfills the demand of the domestic market for the viscose staple fiber.

Cement: This division is ranked 11th in the international arena and 7th in Asia. It is further divided into two grey cement and white cement.

Capacities 

12

Capacity

Viscose Staple Fibre (VSF) 333,975 tpa

Joint venture  :: Birla Jingwei Fibres Company Limited 70,000 tpa

:: Rayon grade pulp  :: Harihar, Karnataka 70,000 tpa:: AV Cell Inc 122,500 tpa:: AV Nackawic Inc. 189,000 tpa

Cement (through its subsidiary UltraTech)

::Grey cement 51.9 million tpa (including 3.0 million tpa

overseas capacity):: Ready-mix concrete 9.9 million cubic metres:: White cement 560,000 tpa

Overview Birla White Cements

Birla White is India's largest white cement producer with a production capacity of over 550 thousand tonnes annually. Established in 1988 with an initial production capacity of 80 thousand tonnes, the company has indeed come a long way. Its manufacturing plant is today regarded as one of the most technologically-advanced white cement plants in the world.

Driven by innovation and excellence, Birla White has consistently been improving its product quality through technological advancements. Significant efforts have also been made to diversify its product portfolio. Birla White today boasts of a product portfolio consisting of several surface finishing options. The company has a strong global presence in the developed European and fast-growing Asian markets.

Our Vision

To be a Globally Benchmarked Organisation in White Cement, through our value-added products with continued focus on Quality and Customer Delight, and to have revenue of Rs.3000 crores by FY 2015. 

Our Mission

To deliver superior value to our customers, shareholders, employees and society at large with increased focus on living by our values.

Management Philosophy

Customer Satisfaction Always invest in Latest Technology Huge Distribution Network Creation

13

Expansion through Balancing Equipment

Constant focus on Cost Control & Quality

Invest in Managers & Develop People Skills

Stability of Executive Management & Low Employee turnover Social Welfare - A Priority

Strengths Leading position in attractive Northern India grey cement market

One of the Leading white cement producer in India

Proximity and access to large reserves of high quality limestone

Quality of products and strong brand name

Extensive marketing and distribution network

Experience and technical know-how

Production Process

14

Product Information

White cement

Birla White Cement takes artistic expression in architectural design to the next level. A product of the most advanced technologies and manufacturing processes, it offers a pristine white canvas for crafting architectural elegance. Its exceedingly high refractive index and high opacity imparts

15

brilliant lustre and a smooth finish to surfaces, even when blended with pigments. It offers the freedom to create designs with a wide palette of colours, textures, shapes and sizes. Birla White is the preferred white cement for decorative paints, plasters, Mosaic tiles, Terrazzo flooring and white cement based value-added products.

Wall care putty

The elegant décor of your home can easily be marred by the eyesore of flaking, ruining even the expensive coat of paint on your walls. Birla White Wallcare Putty offers you total protection against flaking. Its superior quality makes it the only putty in India to meet global standards (HDB, Singapore). As a white cement-based putty, it binds strongly with the base plaster, even if the surface is damp, and forms a protective base. It fills up the fine pores in the walls and ceiling, giving you a smooth and dry surface for painting on. With an effective protection against flaking, you are assured of a good looking home for years to come.

Usage

Ideal for finishing and decorating exterior and interior walls of all kinds. Can be used on fresh and old-painted walls (after removing the existing paint and base

coat)It's perfect for homes, offices, bungalows, outhouses, farmhouses, stadiums, shopping malls, technology parks, educational institutes, airports, railway stations, theatres, exhibition halls, flyover walls etc.

Birla White Textura

Bring home one of the most advanced technologies in construction - Birla White Kool-n-Seal. It is a revolutionary coating material, which outperforms every other traditional option. When applied on the roof or exterior walls, its unique formulation cools the building interiors, reducing the need for air conditioning and cutting your electricity bills. In addition, Kool-n-Seal also seals minor cracks in the surface and helps arrest seepage. Unlike other coating materials, it can be easily applied in the form of slurry with a brush. That's why, it is ideal for roofs, terraces, water tanks, cracks in parapet walls and water pipes.

Usage

16

Ideal aesthetic/decorative coating for exterior and interior walls of all kinds.It's perfect for homes, offices, bungalows, outhouses, farmhouses, stadiums, shopping malls, technology parks, educational institutes, airports, railway stations, theatres, exhibition halls, flyover walls etc.

Birla White Kool n Seal

Bring home one of the most advanced technologies in construction - Birla White Kool-n-Seal. It is a revolutionary coating material, which outperforms every other traditional option. When applied on the roof or exterior walls, its unique formulation cools the building interiors, reducing the need for air conditioning and cutting your electricity bills. In addition, Kool-n-Seal also seals minor cracks in the surface and helps arrest seepage. Unlike other coating materials, it can be easily applied in the form of slurry with a brush. That's why, it is ideal for roofs, terraces, water tanks, cracks in parapet walls and water pipes.

Usage

New and existing concrete roof/terrace of buildings.Asbestos cement sheets/walls.Water-tanks, cracks in parapet walls, and the attachment of roof-membranes to parapet walls.Garages, water pipes, cinema halls, pavements, cold storages and barracks.

Birla White GRC

Birla White GRC opens up a whole new world of possibilities for modern architecture. It's a versatile and lightweight mouldable finishing material that's perfect for decorative elevations. It's made from Birla White Cement, high-silica sand, alkali-resistant glass fibres and other mixtures. Naturally occurring oxide pigments can be added to give it the desired shade of colour. It is one of the most versatile building materials available to architects and engineers. This makes it the preferred choice for a wide range of designer applications.

Usage

17

Ornamental Designs: You can create various artefacts with Birla White GRC, like statues, balustrades, flower pots, decorative grills, fountains, garden benches, lamp posts and others.

Ducts: Birla White GRC is the most cost-effective way to manufacture high-quality ducts and channels. It reduces the number of joints between channel lengths and in the support framework, as it can be produced in a variety of lengths and shapes.

Sound Barriers: Birla White GRC helps in curbing noise pollution with three different kinds of noise barriers: Reflective, Dispersive and Absorptive. Reflective is the most common type, which uses the surface mass to reflect and prevent noise from passing through it. Dispersive uses the same principle as reflective, but with a profiled face, which disperses noise more effectively. Absorptive is the best barrier, as it blocks and absorbs noise with specially designed absorbing material. All of these barriers are lightweight, durable, of high quality matrix and non-combustible. That's why, it's suitable for expressways, flyovers, multiplex theatres and other high decibel areas.

Birla White Level Plast

Give your walls the distinction of a smooth and glossy finish with Birla White Levelplast. This water-resistant, white cement-based product is perfect for levelling concrete/mortar walls and ceilings especially when there are major undulations. It fills up the fine pores of concrete/mortar walls and ceilings to give a white, smooth and dry surface for painting. A superior substitute for POP and Gypsum, it possesses more adhesive strength and durability, while increasing the life of your paint. This ensures your walls look freshly painted, even after many years.

Usage

Remove all loosely adhering material and greasy material with a brush/emery stone and wash with water. Mark the undulations with the help of a leveler, and moisten the plastered surface before applying the Levelplast mix. Add clean water to the Levelplast and mix thoroughly

18

with the help of mixing blade/stirrer. The quantity of water should be 25-30% for undulations below 10 mm, and 30-35% for finishing coat (2-3 mm levelling). It is recommended that undulations above 6 mm be done in two steps instead of one go. Check the level and apply Levelplast in patches with the help of a trowel, uniformly in upward directions, to give a patching coat. After the patching coat, apply a uniform coat on the entire wall with the steel/aluminum trowel. It is advisable to keep 4 to 6 hour gap between two coats depending on climatic conditions .Apply a finishing coat of Levelplast up to 1 mm to reduce the undulations and leave the surface to dry overnight. It is highly recommended to apply a coat of Birla White Wall care Putty to get a smooth and glossy finish.

Competitors

Putty was first introduced by Birla as a cement based solution for curing the wall. The introduction in the

market stimulated good response and triggered competitors to foray in the same market.

Two types of wall puttees are available in the market—White Cement Based and Acrylic Based. Since

both are substitutable the market competition gets stiffer.

The competition is stiff with players not only from the White Cement Industry JK Cements, but also

from the Paint industry like, Asian acrylic, Nerolac, Berger, ICI, Sika etc. Some local players like Wall

Plast, Wall Shine, Dew Drpos etc and many are also in the fray.

The fight for market share in this segment is fuelled by unparalleled competition from not only major

brand offerings but from cross segment commodities like POP.

The main competitor of Birla White Putty is J K Wall Putty, because it is the only White Cement based

Putty available in the market.

Birla wall putty was the first white cement based wall putty to be launched in the market and till now it is clearly enjoying the first mover advantage by grabbing the highest chunk of the putty market. However, JK Wall Putty have also shown a sustainable growth in the market and is one of the major competitor of the Birla White Wall care putty in the market. Apart from this there is also a Major competitor of Birla Wall Care putty in the market i.e., WallPlast an emerging competitor from the local market of Mumbai .

J.K. Cement is an affiliate of the JK. Organization, which was founded by Lala Kamlapat Singhania. The J.K. Organization is an association of industrial and commercial companies and has operations in a broad

19

number of industries. Its cement operations commenced commercial production in May 1975 at our first plant at Nimbahera in the state of Rajasthan. The aggregate capacity at Nimbahera is 2.8 million tons as of September 30, 2005. J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India. We are also the second largest white cement manufacturer in India by production capacity. While the grey cement is primarily sold in the northern India market, the white cement enjoys demand in the export market including countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania, UAE and Nepal.

Products

JK Wall Cements JK Wall Putty JK Waterproof

JK has the first mover advantage followed by Birla in the White cement based putty segment and Asian

and Berger are at loggerheads in the acrylic based segment.

The Project- Introduction

The cement Industry consumers are segmented on the basis of the uses of cement in to three parts-

1- Retail Consumers2- Institutional Consumers3- B2B (Industrial) Consumers

Retail Consumers are those who buy the Products from the Exclusive or Non-exclusive Retail Stores. Retail consumers are basically residential users. The sale per consumer is less in case of retail consumers but the no. Of these consumers is very high.

Institutional consumers are those who use the products for commercial purposes, like- Shopping Malls, Residential Societies, Hotels, Colleges & Institutes, and Govt. Buildings etc.

Industrial consumers are those who use the Products as the inventory to make the final product. Like Tiles manufacturers, Paint companies.

My work was related to the Usage of the White Cement based Wall Putty which a replacement of POP. Company is trying to find out how to remove the POP from the market and to enhance its market share in the marketthat is the main motive behind this project.

20

Title of the study “Usage of WCP in New Construction segment in Mumbai area: Challenges, Opportunities and Suggestions to improve in this segment.”

The Problem definition

The putty market is still a nascent one. It is in the growth stage of its product life cycle.

The product was first brought into market by Birla followed by JK and others. In Mumbai

Wall Plast was a late entrant into this segment and is another brand and a very tough

competitor which came into existence in past few years.

Product Life Cycle Curve of Wall Putty

21

Objectives of study

22

The objective of the project is almost clear by the name. Usage of WCP in New Construction segment was what that leaded to the database which will help to increase the Institutional sales of the product. The study is taking care of all sort of information regarding Institutional sites and also notifying about the current scenario of the product.

1- To find out the areas in Mumbai where maximum construction is taking place.2- Collecting the database regarding the Architects, Contractors, Project Managers, and

Builders in Central and Harbour Region of Mumbai.3- Finding out the Share of POP and Wall Putty that is being used at Institutional Sites.4- Finding out the Share of Birla and Other Wall Putty at the Sites.5- Total Construction area that is happening all around Mumbai and the area of Sites which

are at finishing stage where Wall Putty can be applied so that to target those sites.

Since putty is a relatively new offering in the market and is not much hyped by the market

forces, the general awareness level of consumers about Putty had to be gauged as well.

One of the most important objectives was to find out the competitiveness of Birla White Wall

Care Putty. Therefore one of the main aims was to measure the unique advantages that Birla

White Wall Care Putty has over its competitor J.K. Wall Putty and Plaster of Paris.

The consumer decision making process is indeed a very complex process involving many

factors. In the cement sector this decision making process becomes even more complex due to

the involvement of middlemen like,

Architects

Paint contractors

Builders

Owners

Consultants

Project managers

Hence, finding out the major influencers in the consumer decision making process was very

important.

SCOPE OF THE STUDY

23

The project has great scope because any company in this sector need to understand the perception of the customers regarding its product and need to know how to influence their buying behavior. To do that company require all the information regarding its customers. Such projects can really help while Segmenting, Targeting, and positioning the marketing strategies. After the project findings the company can decide which consumers to target- Institutional, Retail, or Industrial.

Birla White cement is trying to grab the opportunity by replacing the POP from the market. For this reason it was imperative to gather maximum data and information from live projects that are taking place in Mumbai region to get the real situation of the market in the Institutional segment.

The first step was to prepare the database of Central and Harbor region of Mumbai. The focus was to cover Institutional sites in the appropriate time frame, which should include every big project.

Scope of further Research

In future when such researches are needed to be carried out, care should be taken to ensure that

the sample size is big enough to produce some viable results. The people who are to be

interviewed have a prior knowledge about the product and are in position to comment on the

issue. The people being interviewed have ample time to devote towards the questionnaire so as to

give constructive suggestions on the matter being discussed.

After the implementation of the project findings another detailed research can be carried

out to find out the response of the market to Birla White Wall Care putty and based on the

consumer’s perception and expectations new policies can be formulated.

Limitations of Research

24

Though a successful survey was conducted there were still certain limitations to the study. Below

are some of the limitations of the research conducted :

As far as limitation is concerned it may mentioned here that time frame was a major constraint particularly for the market survey as because studying and diagnosing the market needs a lot of time but the time constraint made the survey suffered a bit. It may be also mentioned here that as the survey includes a lots of problems were faced regarding the appointment with the concerned person.

It was a great problem and it made the work suffer a lot.

The sample size was very big; interview with more number of specifiers could have given a better picture on the overall acceptability of “Putty” among them.

Research like this which concern with the information that is not revealed easily; generally require a patient hearing and understanding. Since the people interviewed were all busy professional an honest hearing and understanding of the subject from them were very rare.

Some of the people interviewed were not that clear about their opinion.

In some cases views were not communicated properly.

Although efforts have been taken to meet and overcome these limitations yet perhaps if they had not been there more life could be brought in the project.

Research Methodology

25

Type of Research-

We have conducted descriptive research through surveys and collected data through Personal Interviews and Formal Questionnaire.

Sampling

For any research to be effective, useful and relevant the sample population to be surveyed needs

to be determined very carefully keeping in mind the capacity of the sample to be able to

represent the population in effect. The two most important things to keep in mind are:

The sample size becomes very important in this case.

Also the demographic distribution of the population should be covered by the sample

distribution.

The sample population was carefully distributed across the Mumbai Region keeping

in mind the local demographics. The survey was conducted in Central and Harbor region of

Mumbai. All the areas within the sample population were surveyed.

The 3 stages of survey:

1- The first stage of analysis was done to find out the potentials of putty as a substitute to Plaster Of Paris, the buyer’s perception about the product, the awareness level of the User about the benefits of putty, the opportunity for putty at institutional sites.

2- The second stage of analysis was done to find out the key person who takes the decisions regarding the uses of products and to influence his perception regarding Wall Putty.

3- In the third stage the Painters were surveyed to find out their perception as the painters

are major influencers in the buyer’s decision making process. A few end consumers were also interviewed to find out their attitude and awareness about the product and the different brand offerings.

A sizeable number of end customers and builders have formed a part of the research sample

population as well.

26

Test Unit

The total number of sites that were visited is 142 but the size of the sample population is 91

sites where all the information was collected. The number Of respondents were 80 at these

91 sites. Respondents were project managers, painters and builders, Consultants. A few end

customers have also been interviewed however; although their responses have been analyzed

they have not been included in the sample population count to prevent the analysis to get

skewed in favor of the larger sample group.

Questionnaire

The questions have been formed with a view to prepare a database and to measure:1) Attitude, 2) Price sensitivity,3) Perception about competitors,4) Awareness about the benefits of putty in general and Birla White Wall Care Putty in particular.5) The means end needs chain analysis,6) The usual sales pattern of POP and Other Putty

Collection of Data

PRIMARY DATA

Collecting primary data was really a difficult task as taking the precious time of the people in this fast moving world is very difficult. People generally do want to hear something that is different to their work and convincing people is the most difficult task. It took me around 5 weeks to collect the primary data.The main sources were:

Questionnaire

Interview

27

Telephonic calls

SECONDARY DATA

Collecting the secondary data was a hectic job. Going through various magazines and web sites for gathering information was a tough job. It took around a more than a week to collect and compile all the secondary data.The main sources were:

Magazines

Journals

Research articles

Websites

Data Analysis

To identify the reasons while choosing a product or a brand, detailed analysis was performed.

Certain detailed questions were descriptively analyzed for capturing concepts like their past

experience with the product, level of satisfaction, acceptance of the brand and the share of wall

putty against alternative product (POP) ,other brands of putty and the brand (BirlaWhite wall

Care putty) .

Tools for Data Analysis

For interpretation of results concepts covered in Market Research by Phillip Kotller was

used as a reference.

Various pictorial presentations are made to make the interpretation more analytical and clear.

28

Findings

The total Land area on which the construction is going (in Central and Harbor region of Mumbai) = 300000 sqm.(approx)

The total Land area where all the information is collected = 207615 sqm. , which is the 69.20% of the total Land area.

1- Share of Putty, POP and Both at the Visited Institutional sites(91 sites)POP 46Putty 34Both (POP+Putty) 11

46%

34%

11%

popputtyputty + pop

29

2- Share of Birla White Wall Care Putty (91 sites)

Birla Wall Putty 42%J.K.Wall Putty 28%Other (Acrylic and Self made) 30%

30

51% of the sites of Sample taken are using POP Punning, 37% are using Putty Punning and there are few Sites where first of all POP Punning is done then they apply Putty over it

Above is the Share of Birla and J.K. Wall Putty at Construction Sites that I have Visited. Birla White Wall Care Putty is 42%, J.K. is 28% and there are other Wall Putty also in the market having 30% of share.

0

20

40

60

80

100

PoP is Better(2%)

Both are Same(4%)

Putty is Better (94%)

3- Putty vis a vis Pop in terms of Quality

Putty V/S PoPNO. OF RESPONDENTS RESPONSES86 Putty Better4 Both are same1 Pop is better

31

Out of the 91 respondents surveyed:

86 opined that Putty is better in terms of Quality. It is better value for money because

Of the unique benefits it offers.

4 of them felt both are same as per quality because POP serves the basic purpose and it is

cheaper also.

Few of the respondents said that PoP is better because it gives the same finishing at a lesser

price.

0

20

40

60

80

100

PoP is Better(2%)

Both are Same(4%)

Putty is Better (94%)

4-The usual market trend -- POP or Putty

Usual Market TrendNO. OF RESPONDENTS RESPONSES49 POP is in customers demand30 Both POP and putty is in demand12 Only Putty is in demand

0.4954%0.3

33%

0.1213%

popboth pop & puttyonly putty

32

All 54% respondents said POP is the usual trend. 13% respondents said Putty is

catching up.

Here, by “POP is the market trend” we mean to say that no respondents in the sample

reported all customers ask to use only putty at the sites and no POP at all.

5-Market share of acrylic putty v/s cement based putty

Market ShareNO. OF RESPONDENTS RESPONSES41 Acrylic Putty50 Cement Putty

45%

55%

Share of Acrylic and Cement Based Putty

Acrylic Putty Cement Putty

33

The market share of acrylic and cement based putty was almost the same. Out of

91 respondents, 41 said acrylic putty had a bigger market share and 50 said that

cement based putty sold more.

6- Necessity of POP in the construction process of Institutional sites

NecessityNO. OF RESPONDENTS RESPONSES63 POP is essential28 Depends on customer choice

PoP is Es-sential, 69%

depends on cus-tomer, 31%

pop is essentialdepends on customer

34

There is no doubt about the fact that POP has evolved into a commodity of necessity for builders/owners. A whopping 69% opined that POP is necessary for smooth walls and better finishing. 31% of the total 91 respondents surveyed said it depends on customer choice.

SWOT ANALYSIS OF BIRLA WHITE PUTTY

STRENGTHS

Value for money: WallCare Putty

is least liquid absorbent of all the options available for skim- coat in India. Being

smooth & durable, it reduces Paint consumption by 25-30% as compared to other

options available in the market. By protecting expensive paints and retaining its

beauty for long, it reduces the re-painting frequency, thus delivering a better life-time

value as compared to other products. Painters find it easy to apply and hassle free. It

is highly economical compared to POP (Plaster of Paris), Conventional Putty

(Whitening/ Chalk powder mixed with enamel) and Acrylic Putty, as it doesn't need a

Cement Primer (before applying Putty) or Paint Primer (before applying Paint). Its

has high coverage (15-20 sq. ft. / Kg., depending upon the condition of plastered

surface) and ease-of-application adds on to the economy as compared to POP.

No Curing required:

Birla white Wall Care putty even though cement based does not require curing after

application on the surface. Painting can be done on the existing surface just after half

an hour of application of putty thus saving on frequent time interval.

Protection to expensive paint: Since it is

white cement based putty it has superior water resisting properties which prevents the

paint from flaking even if the walls are damp. It is used to fill fine pores in walls and

35

ceilings, so one gets the smooth, dry surface, which is essential for painting. Birla

White Wall care putty has better water-resistance, adhesive strength and durability

than ordinary putties. Being white cement based it has better compatibility with the

base plaster and forms a durable white base for paints.

Better visibility in the market: Birla white

cement putty is first preference of all the applicators. This is mainly because of its

superior quality, hassle free application, forms white base for paints and zero

maintenance for at least 4-5 years after application which has earned it reputation in the

market wherein applicators holds the product in high esteem and likes to be associated

with the product which has resulted in, it having greater market awareness and coverage

area.

36

WEAKNESS

Price:

Price of Birla White WallCare Putty is at a steeper side as compared to any other

branded putty available in the market. Further, recent price hike have further

increased the product cost, as a result dealers, retailer, applicators are finding it

difficult to sell the product in the market. In the long run this may result in loss in

sales and market share to rival competitors.

Service:

As per the data analysis the Company’s service to its applicators and retailers is some

what average. Frequency of personal visits by company officials needs to be

increased. In case of retailers, some shops did not know about the hike in price of the

putty bag and were selling at old rates. The On-site Surprise checks by the company

on its Applicators should be increased.

Expensive for individual’s flat application:

In comparison to POP, Acrylic putty, Birla white putty is almost 80% more

expensive. As a result, it is expensive to apply in individual flats, as it will increase

the overall cost considerably.

Training to Applicators:

The Training to Applicators by the company officials was Average. BWP provides

initial training to all its Applicators about the application of the product, however the

company needs to keep a tab on these applicators by providing periodic checks

because it has been found that some of the applicators were finding it difficult to

37

apply Birla White WallCare Putty in corners, some find that Birla white putty does

not bond on existing painted surface, while some due to lack of knowledge that it is

cement based find that it cut hands.

Payment Option:

The Company accepts payments only in Cheque. The stock is delivered only after

clearing of cheque as a result whatever working capital applicator has; he is not able

to spend for any other use. Since payments are to be made in cheque, the applicator

has to arrange for payments from the clients, which results in delays.

Credit Facility:

Birla white does not provide any kind of credit facility services to its applicators

whereas ICI Company (Ranked Third in paint sector) with its product acrylic putty

provides two months of credit facility to its applicators. The advantage of credit

facility is that if the applicator already has some stock of goods, he can start his work

as soon as he gets a contract and can order for the rest in time thus resulting in no

delays in progress of work.

Product awareness to common man:

Birla White WallCare putty has got better visibility in market through dealers,

retailers and applicators, however the common man is not much aware about the

benefits of Birla White WallCare Putty in comparison to conventional putty and

acrylic as a result customers are reluctant to use the product, the solution is in more

aggressively marketing the product both in print and electronic media simultaneously.

38

OPPOURTUNITIES

Infrastructure boom: In coming years due Globalization and Industrialization more

and more area in and around Mumbai will be under development. As a result, the

demand for White cement based putty is expected to increase.

Birla White Solutions: Birla White should introduce Birla White Putty Solutions

Services wherein an Authorized person from the company visits the site quotes a rate

on a per square foot basis and provides World Class Services to its clients. It should

offer to its clients services such as Call us, sit back, and relax, wherein it provides

hassle-free putty application to its customers.

Discount and Promotional offers:

Birla white should aggressively promote its product by providing bulk discount on

purchases made by applicators. Similarly, Birla White should considering providing

transport concessions to its applicators. Since applicators are already provided with

identity cards, computer based software should be developed wherein after

calculation of annual sales achieved by each applicators, appropriate points can be

allotted to them which can be redeemed for gift vouchers or cash back offers.

Event Oriented Communications:

Birla white should organize for event oriented communications where in existing as

well as new applicators are genuinely interested .In these events the company should

address to the problems faced by applicators, the company should also communicate

the quarterly sales achieved by the company and where the product heading to in the

near future.

39

THREATS

PLASTER OF PARIS (PoP):

PoP which is manufactured by using high grade gypsum and chalk powder is easy

to apply and is available at every hardware and painting shops around Mumbai. It

has greater market penetration and awareness in the market. Since it is available

for just Rs.14 per kg as compared to Rs. 40/kg of Birla white putty it gives better

cost to economy benefit. Secondly, no initial training is required before

application of PoP, just mix with water and it is ready for application.

Acrylic Putty:

Acrylic Putty is composed of butyl methacrylate and calcium carbonate and

certain polymers. It is better product as compared to PoP since it has got better

bonding and can form a white base paint for panting surfaces, however it is not

water resistant and shelf life is poor as compared to Birla white putty. The market

price of acrylic putty is 26/kg as compared to Birla white which is sold for Rs.

40/kg as a result in comparison acrylic putty is almost 65% cheaper and thus it is

better substitute for Birla white putty.

Launching of putty brand from Asian Paints:

Asian paints which is major player in paints sector have come up its own brand of

putty in the market. The Company enjoys better brand loyalty in the market since

it existed in market for more than two decades. The company has already installed

1340 ‘colour worlds’ paints shops in and around Mumbai wherein one can

prepare its own choice of paint colour and is targeting 2100 outlets by the end of

this fiscal. Since customer will prefer to buy all its raw materials from one shop,

40

this may go in favour of Asian Paints outlet and may hamper the sales of Birla

white putty in long run.

Recommendations

Putty is a very promising product and is destined to capture the markets in the future.

Paint Contractors are a very important intermediary between the consumers and the

company. Therefore, company needs to work on Company and Paint contractors

relationship. Regular Painters meet can be organized for this purpose.

Birla can launch its Putty in the lesser price. The existing putty and another variant of

lesser quality can be introduced at a lower price to challenge the POP monopoly. This

will help Birla putty to counter the influx of POP and will also give an edge to the Birla.

brand over its competitor J.K. and third variant can be an Acrylic Putty to compete with

the Paint companies. Because diversification is the only way to become big brand.

Company should promote the combination of Birla White Care Wall Putty, some Paint,

and the labour cost while comparing with POP. They can start construction work also and

can offer its product at lower cost.

Builders and architects can be appraised about the product as a part of a PR building

exercise.

There is no differentiating factor in Birla Wall Putty than its competitor J.K..

Differentiating factor is necessary to get noticed. After this research I strongly believe

that Birla Wall Putty can achieve better results if it can position itself in the market with

unique offerings. I tried to device a positioning for Birla. wall Putty to the best of my

abilities.

We can also try a new packaging which looks modern to differentiate it.

Word of Mouth is very important company should promote its product for WOM

Publicity.

41

CONCLUSION

Sites Survey

42

Major construction areas in Mumbai are – Thane,Ghatkopar,Kurla,Mulund,Dadar,Matunga,Vickroli,Vashi,Nerul,Khargar

Almost 94% respondents feel putty is better. They all felt putty was far superior than POP in terms of quality / benefits offered to the customers. The damp proofing, finishing, longevity was better than POP. Only 2% said Pop is better because it served the same purpose ie, the basic need of the consumer for surface preparation at a lower cost. 4% were indecisive because they were not sure about the effectiveness of putty compared to POP when the two are pitted against each other keeping in mind the huge price difference.

POP is widely used product and comprises 69% of the share. But this can be a big opportunity for Putty if it can replace POP from the market.

The Brand preference is clearly skewed in favour of Birla cement based putty. Birla is getting the Pioneer advantage and enjoying 42% of the share. In fact Putty and Birla are synonyms to each other. Birla putty has great brand recognition value and a powerful brand.

POP is the usual trend. But Putty is catching up but slowly, the main reason is the lack of awareness among the consumers. All the users of POP feels that POP is a cheaper affair but if we add the Material, Paint, and the Labour cost than the Putty is cheaper smoother and durable. If we use the paint on putty punning wall the less material is required.

At the institutional sites POP is the necessity and 98% respondents agree to it. Pop is treated as brick and mortar for the construction process which is absolutely indispensable. This was the more or less the opinion of all the respondents in the painter group. There are reasons behind it. The big sites have many constraints like- Completion of the site on time due to which undulations are there and these undulations can not be removed with Putty.

The market share of acrylic and cement based putty was almost the same.

I also tried to introspect the consumer decision making process to find out the major influencers / motivators. End consumers were also asked this question informally. They felt that painters influence the consumers the most. Actual purchases in most case are made by the painters and many a times consumers do not even take a note of the brand that is getting used on the walls. Therefore the painters play a major role in popularizing any product. A very important factor was thus brought to light:

“THE PAINT CONTRACTORS ARE THE REAL CUSTOMERS”

43

BibliographyReports

1. Annual Reports of Birla White Cement Ltd.

2. Report of ICRA on Cement Industry.

Books

44

3. Marketing Management –Phillip Kotler

Websites

4. www. wikipedia .com

5. www.Birlacement.com

ANNEXURE: Questionnaire

FORMAT-SITE/PROJECT VISIT

45

1. Name of Site/Project : .....................................................

2. Location of Site/Project : .....................................................

3. Type of Building : Commercial or Residential

4. Area of Building : ....................................................

5. Height and No. Of Floor : .....................................................

6. Cost of Project : .....................................................

7. i) Is it a Group Housing Society Co-Op. Society Any other.

ii) Key persons to be contacted …………………………………… Contact Nos. ……………………………………

8. Comment on stages of work : ......................................................

i) Foundation work :

ii) Progress on construction done :

iii) Estimated month of completion

46

9. Architects :

i) Name of Address / Tele No.: ...................................................................................................................................................................................................

ii) Key person to contact / Tele No.: ................................................................................................

10. Contractors : .................................................

11.Other Site Addresses

i) Name & Address / Tele No. : ...................................................................................................................................................................................................

ii) Key person to contact / Tele No. : ................................................................................................

Putty Demonstrations

i) Nos. Done ................................................

ii) Nos. Planned .................................................

Technical Presentations

i) No. Done

47