Project.docx

INTRODUCTION

The topic chosen by me for my project is marketing strategy in reference to ACC CEMENTS

especially in the cement industry. At present Acc cement is market leader in the Indian market.

Today there are various companies coming in Indian and these certainly will exist a cutthroat

competition in these field. I have chosen an Acc as a topic essence of my project.

A normal customer is quit puzzled and faces for an uneven some time huge problems in deciding

which vehicle to buy. I realized the problem and decide to take these up as the challenge and

provide answer to as the requirement of the Acc cements.

Today Nagpur is changing very fast. Every corner of Nagpur is having some construction work

which will be finished within 2 years. In this construction work cement is the main ingredient

and it is consumed on mass level. Every major player is looking to grasp the Nagpur’s cement

market. It is estimated that the present market potential of Nagpur is near about 60000 metric

tons in the private as well as in government sector. This project was carried out in the market of

Nagpur of Maharashtra state. There are five market players in cement industry. They are

Ultratech, ACC, K C super, Lafarge, Birlagold, apart from these there are few local brands

selling in the market.

The information about the market was gathered by visiting sites in the different location in

Nagpur. Interview of sites manager was taken depending upon their accessibility.

While doing the project, attempt was made to collect maximum information about the market. To

get actual and correct information, it was not told site managers that the survey is conducted by

ACC Cement for the obvious reasons. Number of sites was visited to get the actual picture of the

market. The sites of each grade (according to the performance) were visited, to get each and

every detail about the market.

1 | P a g e

Most of the time was spent in traveling from one site to other. And every time it is not necessary

that we get the response from them. They were reluctant to give the information, as they do not

want to disclose their business details. They were not ready to give the detail about the price at

which they were purchase the cement. Visits to such sites were loss of time, money and energy.

After collecting the detailed information about the market, analysis is done. In the analysis, the

observations recorded during the project were carefully analyzed and the results are prepared.

The findings and result of the project work are given at the later stage in the report.

2 | P a g e

INDUSTRY PROFILE

OVERVIEW OF THE CEMENT INDUSTRY

The Indian Cement industry is the second largest cement producer in the world, with an installed

capacity of 144 million tonnes. The industry has undergone rapid technological Adilabad

gradation and vibrant growth during the last two decades, and some of the plants can be

compared in every respect with the best operating plants in the world. The industry is highly

energy intensive and the energy bill in some of the plants is as high as 60% of cement

manufacturing cost. Although the newer plants are equipped with the latest state-of-the-art

equipment, there exists substantial scope for reduction in energy consumption in many of the

older plants adopting various energy conservation measures.

The Indian cement industry is a mixture of mini and large capacity cement plants, ranging in unit

capacity per kiln as low as 10 tpd to as high as 7500 tpd. Majority of the production of cement in

the country (94% ) is by large plants, which are defined as plants having capacity of more than

600 tpd. At present there are 124 large rotary kiln plants in the country. The Ordinary Portland

Cement (OPC) enjoys the major share (56%) of the total cement production in India followed by

Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC). A positive trend towards

the increased use of blended cement can be seen with the share of blended cement increasing to

43%. There is regional imbalance in cement production in India due to the limitations posed by

raw material and fuel sources. Most of the cements plants in India are located in proximity to the

raw material sources, exploiting the natural resources to the full extent. The southern region is

the most cement rich region while other regions have almost same cement production capacity.

The Indian cement industry is about 90 years old and its main sources of energy are thermal and

electrical energy. The thermal energy is generally obtained from coal, and the electrical energy is

obtained either from grid or captive power plants of the individual manufacturing units.

2. Salient features of Indian cement industry

3 | P a g e

Indian cement industry is the second largest in the world with an installed capacity of 135

MTPA. It accounts for nearly 6% of the world production. There are 124 large plants and around

365 mini plants. The industry presents a mixed picture with many new plants that employ state-

of-the-art dry process technology and a few old wet process plants having wet process kilns.

Production from large plants (with capacity above 1 MTPA) account for 85% of the total

production.

The cement industry has achieved significant progress in terms of reducing the overall energy

intensity. Dry process plants that the weighted average thermal energy consumption was 734

kCal/kg clinker, and weighted average electrical energy consumption was 89 kWh/tonne of

cement. The best energy consumption are 692 kCal/kg. clinker and 66 kWh/ton of cement.

3. Quantitative details:

The energy intensity of the all the dry process plants (cost of energy as percentage of total

production cost of packed cement) varies from 29 to 61%. This is observed to vary with the

vintage of the plant, the technology employed by the plants and the type of cement produced.

Specific thermal and electrical energy consumption for the plants ranges between 692 –

879kCal/kg. of clinker and 66 – 127 kWh/ton of cement produced (product mix) respectively.

The specific electrical energy also includes the energy consumed in packing, plant utilities and

plant lighting. The reasons for wide range in specific energy consumption can be mainly

attributed to the differing equipment configuration employed in different sections of the plants .

Total Production

The cement industry comprises of 125 large cement plants with an installed capacity of 148.28

million tonnes and more than 300 mini cement plants with an estimated capacity of 11.10 million

tonnes per annum. The Cement Corporation of India, which is a Central Public Sector

Undertaking, has 10 units. There are 10 large cement plants owned by various State

Governments. The total installed capacity in the country as a whole is 159.38 million tonnes. 4 | P a g e

Actual cement production in 2002-03 was 116.35 million tonnes as against a production of

106.90 million tonnes in 2001-02, registering a growth rate of 8.84%. Major players in cement

production are Acc cement, Aditya Cement, J K Cement and L & T cement.

Apart from meeting the entire domestic demand, the industry is also exporting cement and

clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million tonnes and 6.92

million tonnes respectively. Export during April-May, 2003 was 1.35 million tonnes. Major

exporters were Gujarat Acc Cements Ltd. and L&T Ltd.

The Planning Commission for the formulation of X Five Year Plan constituted a 'Working Group

on Cement Industry' for the development of cement industry. The Working Group has identified

following thrust areas for improving demand for cement;

i. Further push to housing development programmes;

ii. Promotion of concrete Highways and roads; and

iii. Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement Industry, the

Department of Industrial Policy & Promotion commissioned a study on the global

competitiveness of the Indian Industry through an organization of international repute, viz.

Table given here is representing the cement industry growth through five year plans……

Five years plan Years Capacity (mt) Production (mt)Pre plan 1950-51 3.28 2.22nd plan 1951-56 5.02 4.63rd plan 1956-61 9.3 7.974rth plan 1961-66 12 10.975th plan 1969-74 19.76 14.666th plan 1974-79 22.58 19.427th plan 1980-85 42.4 30.138th plan 1985-90 61.31 45.419th plan 1992-97 105.26 76.2210th pl 1997-02 146.13 108.4

Cement industry has been decontrolled from price and distribution on 1st March 1989 and de-

licensed on 25th July 1991. However, the performance of the industry and prices of cement are 5 | P a g e

monitored regularly. Being a key infrastructure industry, the constraints faced by the industry are

reviewed in the Infrastructure Coordination Committee meetings held in the Cabinet Secretariat

under the Chairmanship of Secretary (Coordination). The Committee on Infrastructure also

reviews its performance.

Technological change

Continuous technological Adilabad grading and assimilation of latest technology has been going

on in the cement industry. Presently 93 per cent of the total capacity in the industry is based on

modern and environment-friendly dry process technology and only 7 per cent of the capacity is

based on old wet and semi-dry process technology. There is tremendous scope for waste heat

recovery in cement plants and thereby reduction in emission level. One project for cogeneration

of power utilizing waste heat in an Indian cement plant is being implemented with Japanese

assistance under Green Aid Plan. The induction of advanced technology has helped the industry

immensely to conserve energy and fuel and to save materials substantially. India is also

producing different varieties of cement like Ordinary Portland Cement (OPC), Portland

Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid

Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement etc. Production

of these varieties of cement conform to the BIS Specifications. Also, some cement plants have

setAdilabad dedicated jetties for promoting bulk transportation and export.

State- wise major cement plants

6 | P a g e

State No.of plants Capacity mtAndhra Pradesh 24 23.96

Assam 1 0.2Bihar 1 1

Chhatisgarh 9 10.36Delhi 1 0.5Gujrat 12 17.12

Haryana 1 0.17Himachal Pradesh 4 4.06

J and k 1 0.2Jharkhand 5 4.57Karnatka 9 10.07Kerala 1 0.42

Madhya Pradesh 12 16.39Maharashtra 8 10.95Meghyalaya 1 0.2

Orrisa 3 2.76Punjab 3 2.84

Rajasthan 14 17.95Tamil nadu 13 14.79

Uttar Pradesh 7 5.07West Bengal 4 3.13

Total 134 146.71

Current status of Indian cement industry

The Indian cement industry has grown remarkably in the last two decades to emerge as the

second largest in the world after china. In terms of technology, quality and productivity, India

cement industry is remarkably is undeniably at the top. Today, the country has 134 major plants

with an installed capacity of 146.71 million tones. There are also 60 surviving mini and tiny units

with a capacity of 6.3 million tones The combined capacity of the cement industry is 153.01

million tones. in recent years , the production of blended cement has increased in India as more

and more companies shifting their emphasis from opc to blended cement. With increased cement

production, the cement supplies have increased substantially resulting into depressed prices, with

producers are getting inadequate returns on their investment, affecting the bottom lines of several

7 | P a g e

companies. Today, the Indian cement industry is passing through are alignment and

consolidation.

Multi nationals have a strong entry in the cement market and are trying to get their presence by

acquisitions and mergers. The per capita consumption of cement in India, which currently is very

low at 99 kg, has huge scope of growth. According to industry sources with the intiative taken by

the government on the infrastructure, particularly the north and south corridor particularly known

as “golden qualidateral” the working group on the cement industry constituted by the planning

commission.

COMPANY PROFILE

8 | P a g e

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations

are spread throughout the country with 14 modern cement factories, 19 Ready mix concrete

plants, 19 sales offices, and several zonal offices. It has a workforce of about 9000 persons and a

countrywide distribution network of over 9,000 dealers. ACC's research and development facility

has a unique track record of innovative research, product development and specialized

consultancy services. Since its inception in 1936, the company has been a trendsetter and

important benchmark for the cement industry in respect of its production, marketing and

personnel management processes. Its commitment to environment-friendliness, its high ethical

standards in business dealings and its on-going efforts in community welfare programs have won

it acclaim as a responsible corporate citizen. ACC has made significant contributions to the

nation building process by way of quality products, services and sharing its expertise.

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 utilization, 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.

The company's various businesses are supported by a powerful, in house research and technology

backup facility - the only one of its kind in the Indian cement industry. 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

9 | P a g e

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.

ACC is among the first companies in India to include commitment to environmental protection

as one of its corporate objectives, long before pollution control laws came into existence. The

company installed pollution control equipment and high efficiency sophisticated electrostatic

precipitators for cement kilns, raw mills, coal mills, power plants and coolers as far back as

1966. Every factory has stateof- the art pollution control equipment and devices.

ACC demonstrates the practices of being a good corporate citizen undertaking a wide range of

activities to improve the living conditions of the under-privileged classes living near its factories.

History & Profile of ACC Cement Works

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 Din Shaw 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 Din Shaw

groups. ACC was formally established on August 1, 1936. Sadly, F E Din Shaw, the man

recognized as the founder of ACC, died in January 1936. Just months before his dream could be

realized.10 | P a g e

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’ The ACC Board comprises of 13 persons. These include executive, non-executive, and

nominee directors. This group is responsible for determining the objectives and broad policies of

the Company - consistent with the primary objective of enhancing long-term shareholder value.

The Board meets once a month. Two other small groups of directors - comprising

Shareholders'/Investors' Grievance Committee and Audit Committee of the Board of Directors -

also meet once a month on matters pertaining to the finance and share disciplines. During the last

decade, there has been a streamlining of the senior management structure that is more responsive

to the needs of the Company's prime business. A Managing Committee - comprising, in addition

to the

Managing Director and the two executive directors, the presidents representing multifarious

disciplines: finance, production, marketing, research and consultancy, engineering and human

resources – meets once a week. Besides these bodies, there are senior executives and other

regional managers - based at the Company's corporate office and at its marketing offices and

manufacturing units -who contribute to the development and operation of the various functions.

While these groups form the core management team that frames and guides corporate policy,

ACC is proud of its manpower strength of about 9,000 people, who comprise experts in various

disciplines assisted by a dedicated workforce of skilled persons. Quite a number of them have

logged many years of service with the organization. They come from all parts of the country and

belong to a variety of ethnic, cultural and religious backgrounds. Because of such a cosmopolitan

make-up, ACC can rightly be said to embrace within its fold a family that forms a 'mini-India'

Plants & Their Capacity:11 | P a g e

S.Units State Capacity (MTPA)

No.1 Bargarh Bargarh Cement Works 0.962 Chaibasa Chaibasa Cement Works 0.873 Chanda Chanda Cement Works 1.004 Damodhar Damodar Cement Works 0.535 Gagal Gagal Cement Works 4.4 (Gagal I and II)6 Jamul Jamul Cement Works 1.587 Kymore Kymore Cement Works 2.208 Lakheri Lakheri Cement Works 1.509 Madukkarai Madukkarai Cement Works 0.9610 Sindri Sindri Cement Works 0.9111 Wadi Wadi Cement Works 2.5912 New Wadi Plant Wadi Cement Works 2.6013 Tikaria Tikaria Cement Grinding and Packing Plant 2.31

Mission of ACC

12 | P a g e

Leadership Maintain our leadership of the Indian cement industry through the continuous modernization and expansion of our manufacturing facilities and activities, and through the establishment of a wide and efficient marketing network.

Profitability Achieve a fair and reasonable return on capital by promoting productivity throughout the company.

Growth Ensure a steady growth of business by strengthening our position in the cement sector.

Quality Maintain the high quality of our products and services and ensure their supply at fair prices.

Equity Promote and maintain fair industrial relations and an environment for the effective involvement, welfare and development of staff at all levels.

Pioneering Promote research and development efforts in the areas of product development and energy, and fuel conservation, and to innovate and optimize productivity.

Responsibility Fulfill our obligations to society, specifically in the areas of integrated rural development and in safeguarding the environment and natural ecological balance.

Achievement of ACC Limited:

13 | P a g e

Milestones of

1936 The Associated Cement Companies Limited incorporated on

August 1

1947 India's first entirely indigenous cement plant installed at Chaibasa.

1955 ACC Sindri uses waste material - calcium carbonate sludge -from fertilizer factory at Sindri

to make cement.

1956 Bulk Cement Depot established at Okhla, Delhi

1961 Blast furnace slag, (a waste by-product from steel) from TISCO used at ACC Chaibasa to

manufacture Portland Slag Cement.

1961 Oilwell Cement manufactured at ACC Shahabad for cementation of oil wells up to adepth

of 6,000 feet.

1961 Manufacture of Hydrophobic (waterproof) cement at ACC Khalari.

1965 Manufacture of Portland Pozzolana Cement using naturally available materials. An Eco-

friendly cements using an eco-friendly process.

1966 ACC inducts use of pollution control equipment and high efficiency sophisticated

electrostatic precipitators for its cement plants and captive power plants decades before it

becomes mandatory to do so.

1978 Introduction of the energy efficient pre-calcination technology for the first time in India.

1982 Commissioning of the first 1 MTPA (million tonne per annum) plant in the country at

Wadi, Karnataka.

1984 ACC achieves a breakthrough in import substitution by developing and supplying a special

G type of oil well cement to ONGC.

1987 ACC develops a new binder, working at sub-zero temperature, which is successfully used

in the Indian expedition to Antarctica.

1992 Incorporation of Bulk Cement Corporation of India, a JV with the Government of India.

1993 Commercial manufacture of ready-mixed concrete at Mumbai.

14 | P a g e

Rr

ACC Cement Industry at one glance.

THEORETICAL BACKGROUND

15 | P a g e

MARKETING STRATEGY OF ACC CEMENTS LIMITED

1. SEGMENTATION:-

The company has segmented the market geographically. It sells its products all over India with

major presence in northern region

2. PRICING STRATEGY

Before deciding the price of the cement company has considered the following points:--

Cost factor:-

Manufacturing cost

Transporting cost

Storing and material handling

Other cost

Officer expenses

Other expenses

Tax and interest

Competitor’s price and offering

MARKETING STARTEGY

16 | P a g e

Company conducts market surveys to identify market trends and customer’s response, company

position in the market etc. There is R and D department which continuously trying to improve

the quality of the product at the minimum cost and trying to meet the demand of the customer.

MARKETRING STRATEGY FOR COMPETITORS

Company always keeps an eye over its competitors activities and its offerings like different

promotional schemes, product price etc. It also takes proper action according to competitors

strategy.

DISTRIBUTION STRATEGY

The company is distributing cement by following ways:-

Direct to consumer

Depot

1.whole seller

2.retailer

Director General of sales and disposal

1. Tender sales

2. Government department

Non trading sales

1. wagon load

2. Institutional sales

Method of developing dealers:-

17 | P a g e

Company conducts the market survey also to motivate the sub dealer and advertise the

programmer. The company takes profile of the dealers and gives dealership only to those in a

particular area where the company is not having already existing dealer.

Key factor of marketing strategy

Segmentation of acc cements: -

Geographical Segmentation

Geographic Segmentation calls for division of the market into different geographical units such

as nations, states, regions, countries, cities, or neighborhoods. In the South Asian context,

geographic segmentation assumes importance due to variations in consumer preferences and

purchase habits across different regions, across different countries, and across different states in

these countries.

Demographic Segmentation

In Demographic Segmentation, we divide the market into groups on the basis of variables such

as age, family size, family life cycle, income, occupation, education, religion, race, generation,

nationality and social class. One reason demographic variables are so popular with marketers in

that they’re often associated with consumer needs and wants. Another is that they’re easy to

measure. Even when we describe the target market in non demographic terms (say, by

personality type), we may need the link back to demographic characteristics in order to estimate

the size of the market and the media we should use to reach it efficiently.

Psychographic Segmentation

Psychographics is the science of using psychology and demographics to better understand

consumers. In psychographic segmentation, buyers are divided into different groups on the basis

of psychological/personality traits, lifestyle, or values. People within the same demographic

group can exhibit very different psychographic profiles. Values and lifestyles significantly affect

product and brand choice of consumers. Religion has a significant influence on values and

18 | P a g e

lifestyles. The strict norms that consumers follow with respect to food, habits or even dress codes

are representative examples in this regard.

The four groups with higher resources are:19 | P a g e

Thinkers Achievers experiencers

Believers StriversMakers

Innovators

SurvivorsLow Recourses

Low Innovation

Primary MotivationHigh Resources

High Innovation

1. Innovators: - successful, sophisticated, active, “take- charge” people with high self-esteem.

Purchases often reflect cultivated tastes for relatively upscale, niche-oriented products and

services.

2. Thinkers- mature, satisfied, and reflective people who are motivated by ideals and who value

order, knowledge and responsibility. They seed durability, functionality, and value in products.

3. Achievers- successful, goal-oriented people who focus on career and family. they favor

premium products that demonstrate success to their peers

4. Experiences- Young, enthusiastic, impulsive people who seek variety and excitement.

They spend a comparatively high proportion of income on fashion, entertainment and

socializing.

The four groups with lower resources are:

1. Believers- conservative, conventional, and traditional people with concrete beliefs. They

prefer familiar products and are loyal to established brands.

2. Strivers- trendy and fun-loving people who are resource constrained. They favor stylish

products that emulate the purchases of those with greater material wealth.

3. Makers- Practical, down-to-earth, self-sufficient people who like to work with the hands.

They seek products with a practical or functional purpose.

4. Survivors- Elderly, passive people who are concerned about change. They are loyal to their

favorite brands.

Behavior Segmentation: -

In behavioral segmentation, marketers divide buyers into groups on the basis of their knowledge

of, attitude toward, use of, or response to a product.

Decision Roles:20 | P a g e

People play five roles in a buying decision: Initiator, Influencer, Decider, Buyer and User.

Recognition of the different buying roles and specification of the people who play these roles for

specific products and services are vital for marketers. This is especially useful for designing the

communication strategy.

Behavioral Variables:

Many marketers believe behavioral variables-occasions, benefits, user status, usage rate, buyer

readiness stage, loyalty status, and attitude-are the best starting points for constructing market

segments.

Market Targeting: -

Effective Segmentation Criteria

To be useful, market segments must rate favorably on five key criteria:

➢ Measurable, the size, purchasing power and characteristics of the segments can be measured.

➢ Substantial, The segments are large and profitable enough to serve. A segment should be the

largest possible homogenous group worth going after with a tailored marketing program. It

would not pay, for example, for an automobile manufacture to develop cars for people who are

less four feet tall.

➢ Accessible, The segments can be effectively reached and served.

➢ Differentiable, The segments are conceptually distinguishable and respond differently to

different marketing-mix elements and programs. If married and unmarried women respond

similarly to a sale on perfume, they do not constitute separate segments.

➢ Actionable, Effective programs can be formulated for attracting and serving the segments.

MARKET POTENTIAL:

21 | P a g e

Decisions related to products and services - where to offer them, how to set revenue targets for

them, how much to spend in support of them - all start with a realistic, accurate and confident

understanding of Market Potential.“A Market Potential is an estimate of the maximum possible

sales opportunities present in a particular market segment and open to all sellers of a good or

service during a stated future period.”

A market potential indicates how much of a particular product can be sold to a particular market

segment over some future period assuming the application of appropriate marketing methods.

Market Potential data measures the likely demand for a product or service in a county, ZIP Code,

or any other defined trade area. Businesses and other organizations use Market Potential data to

make decisions about where to offer products and services.

A Market Potential is an estimate of the maximum possible sales opportunities present in a

particular market segment and open to all sellers of goods or services during a stated future

period.

Thus, a market potential indicates how much of a particular product can be sold to a particular

market segment over some future period, assuming the application of appropriate marketing

methods.

Sales potential:

A sales potential is an estimate of the maximum possible sales opportunities present in a

particular market segment and open to a specified company selling a good or service during a

stated future period. Thus, sales potential represents sales opportunities available to a particular

manufacturer, while market potential indicates sales opportunities available to entire industry.

With Market Potential Data One Can-

· Optimize organization merchandise mix

· Develop successful advertising and marketing plans

· Decide which expansions are most profitable

· Increasing Share of Wallet/Untapped Potential

Increasing market share requires an understanding of "Untapped Potential," which is different

than simply taking the difference between Total Potential and your current market share.

· Maximize Marketing Budgets & Efficiencies22 | P a g e

With a realistic picture of Market Potential you can focus resources intelligently, maintaining a

presence where you're strong and investing heavily where opportunity is greatest i.e., investing

marketing budget more effectively.

· Set Aggressive & Attainable Revenue Targets

The best way to establish revenue goals and sales quotas for products, territories or

stores/branches is to base them on the true consumer demand/market potential within the area.

Sales Forecast:-

A sales forecasting is an estimate of sales in physical units in a future period under a particular

marketing program and assumed set of economic and other factors outside the unit for an entire

product line. It may be for a manufacturer’s entire marketing area or for any subdivision of it.

Such forecasts are short term or operating it is important to the sales executive.

ANALYZING THE MARKET POTENTIAL

Market Identification:-

The first step in analyzing a product’s market potential is to identify its market. Market

identification required finding out

Who buys the product?

Who use it?

Who are the prospective buyers and users?

Some companies find answer to these questions in their internal records but most of the

companies especially those that use long marketing channels, in consumer- good marketing,

Buyers, user, and prospectus are identified and classified according to such characteristics as age,

sex, income, and social class. In Industrial goods marketing, buyers, users, and prospectus are

identified and classified by size of firm, geographical location, type of industry and the like.

Market identification studies reveal the characteristics that differentiate the market segments

making up the product’s market potential. market identification studies provides, as a side result, 23 | P a g e

customer data on such factors as purchase frequency, searching time expended unit of purchase,

and seasonal buying habits. When assembled and analyzed, these data help in estimating market

potential.

Market Motivation:-

The second step in analyzing market potential is to detect the reasons why customers buy the

product and the reasons why potential customers might buy it. Market motivation studies answer

twin questions: why do people buy? & why don’t buy?

The answer helps not only in estimating market potential but assist the sales executive to

increase the effectiveness of promotional programs.

Motivation research techniques vary, but the most widely used are the projective techniques, in

which respondents projects themselves, their attitudes interests and opinions into interpretation

of special materials presented by the researcher. Analysis of results by trained specialist lays bare

what goes on in buyer’s minds, including, importantly, the real reasons for buying or not buying

the product. Most motivation studies are directed towards explaining the buying behaviour of

ultimate consumers rather than industrial users. Information from motivation studies helps not

only in estimating a product’s market potential but also assists in deciding

1. How best to present the product in sales talks

2. The relative effectiveness of different selling appeals

3. The relative appropriateness of various promotional methods

Analysis of Market Potential:-

Third Step is to analyze the market potential. Market potential cannot be analyze directly, so

analysis make use of market factors (Market factor is a market feature or characteristics related

to the product’s demand) using market factor for analyzing market potential is a two step process

1. Select the market factor associated with the product’s demand24 | P a g e

2. Eliminate those market segments that do not contain prospective buyers of the product

Why Use Market Potential Data

Market Potential data helps companies to understand, predict, and influence consumer behavior

by providing insight into areas with the highest growth potential. This allows you to make

informed decisions about products and services based on the latest trends and consumer demand.

SCOPE OF THE STUDY

This study includes direct interaction with the customers and this helps us to know the ‘A

STUDY OF STRATERGIES AND MARKETING TRENDS OF ACC CEMENT ‘to great

accuracy. This study is of great importance to the company which will know about the customer

25 | P a g e

preference to buy a particular brand. The company will gain information about customer’s

preference depending on the following factors:-

1. Price factor

2. Fineness of the cement

3. Setting time

4. Attractive packaging

5. Brand image—one of the important factor

6. Quick delivery time

7. Wide availability

So, scope of this study is to achieve customer satisfaction because customer satisfaction and

quality maintenance is company’s primary objective…

OBJECTIVE OF THE STUDY

1. To increase sales in high realization

2. To develop stockiest network consisting of retailer or final outlet which directly sells?

26 | P a g e

3. Increasing sales of branded cement ie Acc white cements

4. Marketing distribution network more efficient and cost effective.

The company has a dedicated team of highly skilled professionals and experienced application

engineering. They are functioning in an advisory capacity. Besides handling their constructional

problem the cell offering all kind of assistance in the selection of the right cement for different

application to ensure cost effective, durable and safe construction.

≈} To know the customers’ expectations towards Acc cements

≈} to find out the customer opinion regarding various aspect of the cements.

≈} To give the appropriate suggestion to the company regarding he performances.

HYPOTHESIS

Related to the study undertaken, following statements can be the statements for hypothesis,

1) ACC Cement has well in marketing strategies.

27 | P a g e

2) ACC Cement has not well in marketing strategies.

HYPOTHESIS TESTING

28 | P a g e

It is the blue print of the detail procedure of testing the hypothesis and analysis they obtained

data. The research design in a way tell us what observations to make and how to analysis the

quantitative representations of the observation.

Testing the above hypothesis using below methods:

1. Survey and Observation Method

2. Questionnaire

3. Personal Interview

4. Telephonic Interview

5. Graphical Representation

6. Interpretations

29 | P a g e

RESEARCH METHODOLOGY

Data collection method—

I have selected around 50 persons for the interview.

I have taken help of the questionnaire, personal and Telephonic interview.

I have collected the data through focus interviews. I have concentrated on taking interview

mainly from the following group of people.

1. Masons—20%

2. Architects/ engineers--- 10%

3. Retail stockiest---- 2

4. Wholesale---- 10%

5. Industrial bulk consumer—10%

6. General consumer---- 30%

The survey was descriptive and sample chosen was mainly on the judgment of the researcher

with the help and proper consultation of project guide..

In this kind of sampling method, the population elements are based on the judgment of the

researcher. The researcher exercises judgment or expertise, chooses the elements to be included

in the sample, because he or she believes that they are representative of the population of interest

or are otherwise appropriate.

In this survey, I visited the dealers of cement also to know the strategy of the companies ,

especially Acc cements to satisfy the customer as they buy the cement of any particular

company….

The main purpose of the descriptive research is description of the state of affairs as they exist at

present.

30 | P a g e

DATA ANALYSIS & INTERPETATION

DATA ANALYSIS:

In this section, we will analyze the data which was obtained through different means of data

analysis like questionnaire, personal interviews. Since this survey was related to the cement

industry, so people related to it like masons, bulk consumer , retailer and Above all general

consumer were interviewed.

The whole data analysis section is done with help of different charts, bars and other techniques

available. The interview was mostly done on selected persons of selected category. I have done

survey mainly on the basis of following structure…..

1. Masons—20%

2. Arch/ Engineers—10%

3. Retail stockiest--- 20%

4. Wholesalers--- 10%

5. Bulk consumers—10%

6. General consumer—30%

For doing the survey, a questionnaire was designed as a scientific tool so as to know the

customer’s attitude towards the Acc Nagpur cement works limited. The main purpose of this

survey was to know the customer satisfaction level

. This survey was done partially Nagpur land some parts of NCR also. Some other parts of the

country like the neighboring Amravati were also touched for the survey.

31 | P a g e

This page and onwards will contain step by step analysis of different questions…

1 How important is price for you while buying the cement?

1. MASONS

Choices / optionsNo of respondents

1. Extremely important 32. Rarely important 23. Not at all important 0

2. Arch / engineers


1. Extremely important 22. Rarely important 13. Not at all important 0

32 | P a g e

0

0.5

1

1.5

2

2.5

3

3

2

0

2

1

0MASONSArch / engineers

INTERPRETATION:

The above table shows that majority of respondents consider price is more important while

purchasing.

2 Do you consider colour of cement as an important factor for buying of the cement?

1. Masons


1.Definitely important 22.Not so important 13.Sometimes important 14..Not sure 1

2. Retail stockiest.

Choices / options No of

33 | P a g e

respondents1.Definitely important 12.Not so important 23.Sometimes important 14..Not sure 1

3. General consumer


1.Definitely important 12.Not so important 43.Sometimes important 14..Not sure 1

34 | P a g e

1.Definitely important

2.Not so important

3.Sometimes important

4..Not sure0

0.5

1

1.5

2

2.5

3

3.5

4

2

1 1 11

2

1 11

4

1 1

MasonsRetail stockistsGeneral consumer

INTERPRETATION:

Above interpretation indicates that colour of the cement is not an important factor. From survey

done on different group of people, it is evident that masons, retail stockists and general

consumer, all of them do not give too much attention to colour of the cement….

3 Is early setting time an important factor in buying of the cement?

1 Architects / engineers

ParametersNo of respondents

1.Important 12.Not important 03.Extremely important 24.Not sure 0

2 Retail stockiest

35 | P a g e



3 General consumers



36 | P a g e

0

0.5

1

1.5

2

2.5

3

3.5

4

1

0

2

0

1

0

3

1

2

1

4

0

Architects / engineersRetail stockiestGeneral consumers

INTERPRETATION:

The above interpretation clearly indicates that early setting time is one of the important factor

with all group of people giving more weightage to it.

37 | P a g e

4 Do you think that attractive packaging is an important factor while buying cement?

1. Retail stockiest.

Parameters No of respondents1. Very much 22. Not so much 23. Can’t say 1

2. Whole salers


3. General consumer


38 | P a g e

1. Very much 2. Not so much 3. Can’t say0

0.5

1

1.5

2

2.5

3

3.5

4

2 2

11 1 1

2

4

1

Retail stockiestWhole salersGeneral consumer

INTERPRETATION:

The response to this question clearly indicates that people do not tend to buy those cement which

have good and attractive packaging as after all quality matters.

39 | P a g e

5. Rate the following on the scale of 1 to 5!!

Parameters

Brand name Brand image Delivery time Price Packaging

Ambuja 4 3 3 4

GUJ ACC 3 3 3 3

ACC NAGPUR

CEMENTS

3 2 3 2

LAFARGE 4 3 3 3

Brand image

Delivery time

Price Packaging0

0.5

1

1.5

2

2.5

3

3.5

44

3 3

4

3 3 3 33

2

3

2

4

3 3 3

AmbujaGUJ ACCACC MANCHERIAL CEMENTSLAFARGE

INTERPRETATION:

Table given here is determining the customer’s preference of different brands depending on

different parameters. It is evident from the table that ACC and LAFARGE excel on every

40 | P a g e

parameter i.e. brand image, delivery time, price and packaging etc. Brand image and price are

one of the important factors in the selection of any Cement.

6. Do you prefer the cement which is very fine (i.e. fineness of the cement)?

1. Masons


1. Sometimes 12. Always 23. Never 14.Can’t decide 1

2. Retail stockiest


1. Sometimes 12. Always 33. Never 14.Can’t decide 0

3. General customer

Parameters No of respondents

1. Sometimes 3

2. Always 3

3. Never 1

4.Can’t decide 0

41 | P a g e

1. Sometimes 2. Always 3. Never 4.Can’t decide

0

0.5

1

1.5

2

2.5

3

1

2

1 11

3

1

0

3 3

1

0

MasonsRetail stockiestGeneral customer

INTERPRETATION:

We can interpret from the response received that fineness of the cement is one of the Important

factor that consumer takes into account while buying a cement.

7. How many retailers of Acc Cement do you find in your city?

42 | P a g e

1. Masons

No. of retailers Response1 . 1-5 22. 5-7 33. 7-10 04. More than ten 0

2. Wholesalers

OptionsResponse

1 . 1-5 12. 5-7 23. 7-10 04. More than ten 0

43 | P a g e

1 . 1-5 2. 5-7 3. 7-10 4. More than ten

0

0.5

1

1.5

2

2.5

3

MasonsWholesaler

INTERPRETATION:

The response received from the customers indicates that there are enough cement retailers in

their city.

44 | P a g e

8. If you were a dealer which type of schemes and incentives do you except from the

company?

OptionsNo of respondents

1. Gift items given 12. Award for best retailing 23.Promoting certain incentive schemes 04.Educate about the company’s policy 05. Foreign tours 2

1. Gift

items g

iven

2. Award

for b

est re

tailin

g

3.Promoti

ng cert

ain in

centiv

e sch

emes

4.Edu

cate a

bout th

e com

pany’s

polic

y

5. Fore

ign tou

rs0

0.40.81.21.6

2

1

2

0 0

2

No of respondents

INTERPRETATION: It is evident that the retailers want awards, tours and gifts on

equal basis.

45 | P a g e

9. Do you find your desired cement easily in your city?

1. Masons

OptionsResponses

1.sometimes 22.Always 23.Never 1

2. Industrial bulk consumer

OptionsResponses


3. General customer

OptionsResponses


46 | P a g e

Masons Industrial bulk consumer

General customer0

0.5

1

1.5

2

2.5

3

3.5

4

2

1

22 2

11

0

4

1.sometimes2.Always3.Never

INTERPRETATION: The above table shows that most of the customers always find their

desired cement easily in the town.

47 | P a g e

10. Which medium of information made you aware about Acc Nagpur cements?

1. General customer

OptionsLevel of responses

1. Newspapers 22.Hoardings 33. TV ads 14. Meeting with dealers 1

2. Industrial bulk consumer

OptionsLevel of responses

1. Newspapers 02.Hoardings 13. TV ads 04. Meeting with dealers 2

48 | P a g e

1. Newspapers 2.Hoardings 3. TV ads 4. Meeting with dealers

0

0.5

1

1.5

2

2.5

3

2

3

1 1

0

1

0

2

General customerIndustrial bulk consumer

INTERPRETATION:

Analysis of this question reveals that hoardings are the best means of the communication as any

illiterate person can also read the various signs which could be there on the hoardings and also

there should be regular dealer meeting to know the customer aware of the cement.

49 | P a g e

11. Do you find compressive strength of the cement as a major factor while buying any

cement?

1. Masons.

Options Level of responsesVery much 3Not Much 2Can’t decide 0

2. General customer

Options Level of responsesVery much 5Not Much 1Can’t decide 1

Very much Not Much Cant decide0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

3

2

0

5

1 1

MasonsGeneral customer

INTERPRETATION:

Analysis of this question reveals that customers don’t comprise on the matter of quality.50 | P a g e

12. Is the response time of the company to the complaints satisfactory?

1. Wholesalers

Parameters Response level1. Satisfactory 12.Good 13. Not so good 14. Not sure 0

2. General customer

Parameters Response level1. Satisfactory 32.Good 23. Not so good 14. Not sure 1

1. Satisfactory 2.Good 3. Not so good 4. Not sure0

0.5

1

1.5

2

2.5

3

1 1 1

0

3

2

1 1

WholesalersGeneral customer

INTERPRETATION:

Hence, we analyze that response time of the company to the complaints is overall satisfactory….

51 | P a g e

CONCLUSIONS & SUGGETIONS

On the basis of analysis of the questionnaire and data analysis, we find that: ----

1. Market potential of the Acc cement limited is very good in the northern parts despite the

presence of so many branded cement companies like Acc, GUJRAT ACC etc.

2. Customer satisfaction with respect to the ACC cement is satisfactory.

3. Despite the increasing cost of the raw material the company is able to bring down the cost of

manufacturing through procurement of raw materials by the mines which are located nearby.

3. Customers come to know about ACC cements mainly from hoardings as many people are

illiterate.

4. Customers want more prizes and dealers want more incentives, gifts and tours. Dealers also

want more meeting with officials of the cement companies.

5. Bulk consumers want more and more cash discount.

52 | P a g e

SUGGESTIONS

1. The company should concentrate on more aggressive advertisement to promote their products.

2. The company should launch more and more promotional schemes like “two for the price of

one” or more discount coupons.

3 Company should do more to promote their brand as customer prefers good brand while buying

any cement.

4. Customer prefer price as an important factor while buying any cement so the company should

fix the price accordingly.

5. Company should concentrate on direct meeting with the customer as they are the most vital

element in deciding the growth or decline of any company.

6. Company should decrease the response time to the complaint received.

7. The company should fix certain amount of cement especially for the dealers and give them

free of cost as incentives.

8. The company should appoint more and more persons for the promotions of the brand.

9. The company should expand its market and concentrate in deep penetration in northern part of

India.

10. Company should decrease delivery time of the cement.

53 | P a g e

BIBLIOGRAPHY

1. www.acccement.com

2. www.accindia.com

3. www.acccement.com\nagpur

4. Labour and Industrial chronicle-- Survey of major cement plants

5. Marketing research—Naresh kumar Malhotra , Pearson education

6. Marketing Management—Phillip Kotler

54 | P a g e

http://www.acccement.com\nagpur

http://www.accindia.com/

http://www.acccement.com/

ANEXURE

QUESTIONNAIRES

Q 1. How important is price for you while buying the cement?

1. Extremely important 2. Rarely important 3. Not at all important

Q2. Do you consider colour of cement as an important factor for buying of the cement?

1. Definitely important 2.Not so important

3. Sometimes important 4.Not sure

Q3. Is early setting time an important factor in buying of the cement?

1. Important 2.Not important

3. Extremely important 4.Not sure

Q4. Do you think that attractive packaging is an important factor while buying cement?

1. Very much 2. Not so much 3. Can’t say

Q5. Do you prefer the cement which is very fine (i.e. fineness of the cement)?

1. Sometimes 2. Always

3. Never 4.Can’t decide

55 | P a g e

Q6. How many retailers of Acc Cement do you find in your city?

1. 1-5 2. 5-7

3.7-10 4. More than 10

Q7. If you were a dealer which type of schemes and incentives do you except from the company?

1. Gift items given 2. Award for best retailing

3. Promoting certain incentive schemes 4.Educate about the company’s policy

5. Foreign tours

Q8. Do you find your desired cement easily in your city?

1. Sometimes 2.Always 3.Never

Q9. Which medium of information made you aware about Acc Nagpur cements?

1. Newspapers 2.Hoardings

3. TV ads 4. Meeting with dealers

Q10. Do you find compressive strength of the cement as a major factor while buying any

cement?

1. Very much 2. Not much 3. Can’t decide

56 | P a g e

Q11. Is the response time of the company to the complaints satisfactory?

1. Satisfactory 2.Good

3. Not so good 4. Not sure

57 | P a g e

Documents

Project.docx