Market Survey of Cement Industry by Sneha

8/3/2019 Market Survey of Cement Industry by Sneha

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Market survey of cement industrywith reference to

A presentation by

SNEHA SINHABBA/4555/08

DEPARTMENT OF MANAGEMENT

BIRLA INSTITUTE OF TECHNOLOGY

NOIDA CAMPUS


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COMPANY PROFILE

India is the fifth largest producer of cement in the world.

ACC was formally established on August 1, 1936 byF E

Dinshaw.

The first success came in a move towards cooperation in the

countrys 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.

At present ACC is India's foremost manufacturer of cement

and concrete.


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More about ACC: The company uses the process of ESP (Electro Static Precipitation) to avoid

pollution.

Marketing policies:ACC launches new products according to changes inenvironment & work situation. ACC has taken manifold steps:

Brand strengthening

After sales services

SWOT ANALYSIS ACC STRENGTHS :Quality dealer network,Cement quality,High corporate

image

WEAKNESSES :Logistics management,Fluctuation in price across theborder,Irregular availability of cement

OPPORTUNITIES :Brand name,Government projects

THREATS :Higher transportation cost


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Problem formulation

The achievement of marketing objectives are twofoldi.e. consumer satisfaction and profitable sale.Customer satisfaction is gained in the manner inwhich the marketing functions are organized. Hence,demand in cement industry is considered as an

important one. The penetration of other companies in the market is

the main problem faced by the company due to whichconsiderable less shares appear in the market.

Conducting a market survey and collecting dealersopinion about pricing, quality, servicing and themargin provided by the company is equallyimportant. Hence a study on there behavior is takenand also the future prospective are derived.


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objective

Basic objectives are:

To study various competitors and their

behavior in cement industry. To study market strategies adopted by

cement companies.

Market and dealers feedback for

enhancing the cement sales.


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Research methodology

SAMPLE SIZE :

In Kolkata area office, there are nearly 80 authorized cement dealers of

ACC.Owing to the time and a monetary constraint it was impossible to

visits all these dealers. Hence nearly 32 cement dealers in Kolkata were

chosen for the study. The conclusion and findings are based on the replies

from these dealers.

DATA COLLECTION :

The methodology used for data collection was based on field survey,

personal observation and personal interview. For this purpose a

questionnaire was designed based on the topic for which the research was

being conducted. Personal visits were made to all these 32 dealers.


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Analysis and Interpretations

Break up of dealers (Acc and Ambuja) according

to their stock :

Out of 32 dealers, 6 dealers

maintain more stocks of ACCthan ambuja for per 100 bags.

Stocks for per 200 bags are

same for both.

And 3 dealers said that they

maintain higher stocks of ACC

for per 400 bags than Ambuja

cement.


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Maximum sales(quarterly) of Acc &

Ambuja :

Quarter ACC AMBUJAAprilJune 61% 30%

JulySeptember 39% 70%

0%

10%

20%

30%

40%

50%

60%

70%

April-June July-Sept.

ACC

AMBUJA

Sales of ACC are atits peak during april-

june (summers) as it

requires less water to

prepare its mixturewhile Ambujas sales

maximise inbetweenjuly-sept.


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Promotion Policies: Break up of advertisement

used by Acc & Ambuja :

ACC uses more of print media to advertise its products

whereas Ambuja prefers electronic media over print

media and thus ACC lacks proper communication with

its dealers and customers.


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Break up of reasons for using Acc & Ambuja :

Acc

Market share :


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Satisfaction level of ACCdealers.

Reasons of

dissatisfaction: Supply problem

Lessadvertisement Inadequateincentives


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Break up of reasons for shifting ACC to other

brands :ACCs major problem is its supply

which creates less availability of

cement in stores.

Suppliers who deal in multiple brands,

emphasis to the sale of that cement

brand from where they get highincentives or more Profit margin.

ACC does not provide cement to

dealers or consumers on credit as

followed by others. So it is one of the

reasons for shifting.Advertisement is the main factor of

increasing sales. Compare to ACC

other companies have more

advertisement on TV which attracts the

customers to purchase that brand.


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Product quality

no. of respondents

average

13%

good

25%excellent

62%

average good excellent

Out of 32 dealers, 62% dealer says that the quality of cement of

ACC is excellent.


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Conclusion and findings The average stock demanded by the dealer is 10-12 trucks per

month. The security is fixed at Rs.50,000 per year by ACC.

Average stock maintained by dealer is 300 bags.

Sales are maximum in the month of APRILJUNE & minimumin OCT - FEB.

Average delivery period is 34 days. Dealers make payment through cheques.

Company only gives cement on advance payment.

There is a lot of price fluctuation in cement industry.

ACC has a quality distribution network.

Immediate competitors are Ambuja and Lafarge. Both useextensive advertising programs.

Price of a large is lower than ACC in most of the places.

Competitors adopt promotion measures like gift vouchers andcoupons.


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Some major problems have been faced while conducting the research. These are givenbelow :

Time was a constraint for the study even though attempts were made to study to themaxim limits but only 32 respondents were covered to fill up the questionnaire.

Since all the dealers of Kolkata could not be contacted so the conclusions and theresult are based on the information provided by these 15 dealers.

Sample size of number of candidates for the study varies.

The major limitation of the research was time and monitory constraints due towhich the study had to be restricted to a limited area.

There is lot of price fluctuation in cement business. So the difficulty wasexperienced regarding drawing conclusion.

problems were faced while dealing with the customers as language was a constraintand translation of questionnaire in Hindi and Bengali was required at times.

LIMITATIONS


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Documents

Market Survey of Cement Industry by Sneha