MARKET ANALYSIS AND STUDY OF PRICE
PREMIUM OF ACC VS. IT’S COMPETITORS
BYSHEKHAR ANAND
15BSP2532
ABOUT ACC
• ACC (ACC LIMITED) IS INDIA'S FOREMOST MANUFACTURER OF CEMENT AND CONCRETE. • ACC'S OPERATIONS ARE SPREAD THROUGHOUT THE COUNTRY WITH 17 MODERN CEMENT
FACTORIES, MORE THAN 50 READY MIX CONCRETE PLANTS, 21 SALES OFFICES, AND SEVERAL ZONAL OFFICES.
• IT HAS A WORKFORCE OF ABOUT 9,000 PERSONS AND A COUNTRYWIDE DISTRIBUTION NETWORK OF OVER 9,000 DEALERS.
• SINCE INCEPTION IN 1936, THE COMPANY HAS BEEN A TRENDSETTER AND IMPORTANT BENCHMARK FOR THE CEMENT INDUSTRY IN MANY AREAS OF CEMENT AND CONCRETE TECHNOLOGY.
• ACC HAS A UNIQUE TRACK RECORD OF INNOVATIVE RESEARCH, PRODUCT DEVELOPMENT AND SPECIALIZED CONSULTANCY SERVICES.
• ACC’S BRAND NAME IS SYNONYMOUS WITH CEMENT AND ENJOYS A HIGH LEVEL OF EQUITY IN THE INDIAN MARKET. IT WAS THE FIRST CEMENT COMPANY TO FIGURE IN THE LIST OF CONSUMER SUPER BRANDS OF INDIA.
OBJECTIVE OF THE PROJECT• PRODUCT ANALYSIS –TO UNDERSTAND THE PRODUCT OFFERING BY VARIOUS COMPANIES
AND IDENTIFY THE PRODUCT QUALITY GAP ACROSS VARIOUS BRANDS.• PRICE ANALYSIS – TO UNDERSTAND THE VARIOUS PRICING STRATEGY OF THE OTHER
CEMENT COMPANIES ESPECIALLY THE ONE LEADING THE MARKET.• SCHEMES ANALYSIS – OBSERVING THE SCHEMES AND OFFERING OFFERED TO THE DEALERS
BY THE OTHER COMPETITORS IN THE MARKET.• SLAB STRUCTURE – KEEPING CHECK THAT EQUAL MARGIN GIVEN BY THE COMPANY
WHOLESALERS TO THE RETAILERS.• CUSTOMER SERVICE – PROVIDING CUSTOMER WITH THE ENGINEERING ASSISTANCE AND
FURTHER IMPROVISING THIS CONNECTIVITY.• BRAND EQUITY – TO UNDERSTAND THE FOLLOWING GAPS *BRAND AWARENESS *BRAND LOYALTY
METHODOLOGY
DATA COLLECTION• BY COLLECTING THE PRIMARY DATA FROM THE RETAILERS AS WELL AS THE
CONSUMERS, BY CARRYING OUT A SURVEY OVER A SPECIFIED PERIOD OF TIME.DATA ANALYSIS• ANALYZING THE DATA COLLECTED FROM THE SURVEY ON VARIOUS STRONG POINTS
NECESSARY FOR THE ANALYSIS.INTERPRETING THE RESULTS• INTERPRET THE RESULT OF THE SURVEY ON THE BASIS OF THE ANALYSIS AND
SUGGEST WAY FORWARD AND FORMULATE A STRATEGY THAT WOULD HELP ESTABLISH ACC PRODUCTS AS A STRONG PLAYER IN THE PATNA MARKET.
PRODUCT ANALYSIS
• 43GRADE OPC ORDINARY PORTLAND CEMENTACC CEMENT IS THE MOST COMMONLY USED CEMENT IN ALL CONSTRUCTIONS INCLUDING PLAIN AND REINFORCED CEMENT CONCRETE, BRICK AND STONE MASONRY, FLOORS AND PLASTERING. IT’S IS ALSO USED IN THE FINISHING OF ALL TYPES OF BUILDING , ROADS , BRIDGES , CULVERTS , ROADS , WATER RETAINING STRUCTURE ETC.• 53 GRADE OPC
PRODUCED FROM HIGH STRENGTH AND DURABILITY TO STRUCTURE BECAUSE OF ITS OPTIMUM PARTICLE SIZE DISTRIBUTION, SUPERIOR CRYSTALLINE STRUCTURE AND BALANCE PHASE COMPOSITION.• PPC
FLY ASH BASED PORTLAND POZZOLANA CEMENT .THIS IS A SPECIAL BLENDED CEMENT PRODUCED BY INTER GRINDING HIGHER STRENGTH OPC CLINKER WITH HIGH QUALITY PROCESSED FLY ASH – BASED ON NORMS SET BY THE COMPANY R&D.
PRODUCT ANALYSIS(CONTD.)
• PSC
THIS IS A SLAG BASED BLENDED CEMENT THAT IMPARTS STRENGTH AND DURABILITY TO ALL STRUCTURES. IT IS MANUFACTURED BY BLENDING AND INTER - GRINDING OPC CLINKER AND GRANULATED SLAG IN SUITABLE PROPORTIONS AS PER OUR NORMS OF CONSISTENT QUALITY. PSC HAS MANY SUPERIOR PERFORMANCE CHARACTERISTICS WHICH GIVE IT CERTAIN EXTRA ADVANTAGE WHEN COMPARED TO ORDINARY PORTLAND CEMENT.
PRODUCTION DEMAND (Y O Y)
2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
50
100
150
200
250
300
350
400
MILLION TON PER ANNUM DEMAND
MILLION TON PER ANNUM DEMAND
DISTRIBUTION OF STATEWISE INSTALLED CAPACITY CEMENT PLANTS IN INDIA
ANDHRA PRADESHASSAMBIHAR
CHHATISGARHGUJRAT
HARYANAH.P.
JHARKHANDKARNATAKA
M.P.MAHARASTRA
MEGHALAYAODISHAPUNJAB
RAJASTHANTAMIL NADU
UTTAR PRADESHUTTARAKHAND
21.330.670.67
5.337.33
1.333.33
25.33
7.336
0.672.67
1.3312
11.335.33
1.33
% STATE SHARE OF PRODUCTION % STATE SHARE OF PRODUCTION
ACC PRODUCTS IN THE BIHAR MARKET
PRICE ANALYSISCOMPANY /BRAND PRICE of cement per 50kg bag.(Rs.)
ACC F2R/PSC 360-375/350
LAFARGE CONCRETO/ PSC
350-365/280-310
ULTRA TECH SUPER 355
BIRLA GOLD/ BIRLA SAMRATH 270-290
JAYPEE BUNIYAD 270-290
SHREE ULTRA 250-280
K.C SUPER(KONARK CEMENT) 280-310
MARKET ANALYSIS ON PRICING
02468
ARE YOU SATISFIED WITH THE HIGH PRICE OF ACC
MARKET RESEARCH ON PRICING
REGION1
REGION2
REGION3
REGION4
REGION5
REGION6
0
5
10
HOW WOULD YOU RATE THE QUALITY VS PRICE OF ACC PRODUCTSQUALITY PRICE
SCHEME ANALYSIS
LAFARGE ULTRA TECH JAYPEE BIRLA CORPS
SHREE CEMENT
KONARK CEMENT
0123456
GIFTS AND HAMPERS
FAMILY TOUR
Chart Title
GIFTS AND HAMPERS CASH AND OTHER DISCOUNTS FAMILY TOUR
CUSTOMER SERVICE
CUSTOMER FACILITIES(RMX OR RMC)
BRAND EQUITY
ACCULTRA TECH
LAFARGEBIRLA CORPS
AMBUJASHREE
KONARKKALYANPUR
OTHERS
0 0.5 1 1.5 2 2.5 32.5
1.52
10.1
0.40.8
0.21.5
Cement brand which first comes to your mind
MARKET SHARE OF COMPANIES IN THE INDIAN CEMENT INDUSTRY
22%
15%
13%10%
7%
6%
5%
5%
5%4%
4% 4%
% SHAREULTRA TECHACCAMBUJAJAI PRAKASHTHE INDIA CEMENTSHREE CEMENTCENTURY TEXTILESMADRAS CEMENTSLAFARGE CEMENTBIRLA CEMENTBINANI CEMENTOTHERS
MARKET ANALYSIS
HIGH PRICE LACK OF AWARNESS WEAK SALES & DISTRIBUTION NETWORK
LACK OF SCHEMES AND OFFERS LACK OF ADVERTISING0
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2
3
4
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8
BARRIER FOR ACC PRODUCT TO BE SOLD
MARKET ANALYSIS
• .
Individual construction
Roof casting
Repair work
plaster purpose
0 1 2 3 4 5 6 7 8 9
Primary purpose for the consumption of premium grade cement
MARKET ANALYSIS
• .
PURCHASE ANOTHER BRAND
MOVE TO OTHER RETAILER WAIT FOR IT TO BE AVAILABLE
BUY WHAT IS OFFERED BY THE RETAILER
0
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8
IF YOUR BRAND IS NOT AVAILABLE IN THE OUTLET,WHAT WOULD YOU DO?
SWOT ANALYSISSTRENGTH-• ACC BEING OLDEST BRAND IN THE MARKET APPROX. 8 DECADES OLD, HAVING PAN INDIA PRESENCE.• TRUST OF OLD GENERATION HAVE INFLUENTIAL ROLE ON THE FOLLOWING GENERATION ABOUT IT • THERE IS NO MATCH FOR CONSISTENT QUALITY, DURABILITY AND VARIABILITY OF ACC PRODUCT INTO THE
MARKET.• ACC IS HAVING VERY OLD AND DEDICATED NETWORK OF DEALERS, WHOLESALERS AND DECADE RELATIONSHIP.WEAKNESS-• DUE TO MAXIMUM EVACUATION OF LIME IN LAST FEW DECADES HAS RESULTED INTO LOW QUALITY OF LINE THUS
HAVING COLOR VARIATION IN PRODUCT.• (QUANTITY DISCOUNTS AND OTHER DISCOUNTS). HOWEVER THE COMMUNICATION OF DISCOUNT BY THE
COMPETITORS IS FASTER THAN ACC.• HIGH PRICING OF ACC IS ITS MAIN CONCERN. • MAINTENANCE OF OLD ACC COLONIES .
SWOT ANALYSIS(CONTD.)OPPORTUNITY• EXIT OF LAFARGE FROM THE EXISTING MARKET ESPECIALLY IN THE EASTER INDIA WHERE IT HAS GOT HUGE
PRESENCE.• ACC BEING OLDEST BRAND IN THE MARKET APPROX. 8 DECADES OLD, HAVING PAN INDIA PRESENCE. WHICH IS THE
GREAT ADVANTAGE IT HAS TO COMPETE WITH THE NEW PLAYERS COMING IN TO THE MARKET.THREAT
• IN THE STATE OF BIHAR THE COMPETITORS LIKE SHREE, KALYANPUR HAS ESTABLISHED IT’S GRINDING UNIT HAVING ADVANTAGE OF EX- FACTORY SALE THROUGH ROAD MOVEMENT.
• NO A DAY’S GAP BETWEEN LAUNCHING PREMIUM PRODUCT HAS NARROWED TO GREAT EXTENT.• UNFAIR TRADE PRACTICES OF COMPETITORS IN COMPARISON TO ETHICAL APPROACH OF ACC.• ACC URBAN MARKET SHARE IS DECLINING BECAUSE OF THE FACT THAT TREND OF PEOPLE SHIFTING
FROM RURAL TO URBAN AREA IN WAIT OF EDUCATION ETC.
RECOMMENDATIONS AND STRATEGY
THE 4 P’S STRATEGY
• PRODUCT (OR SERVICE)• PRICE • PLACE• PROMOTION
MAJOR RECOMMENDATIONS
• STRENGTHENING THE SALES NETWORK.
• STRATEGIC SPONSORSHIP THAT APPEALS TO THE ASPIRATIONAL NEEDS.
• SPONSORING A CAMPAIGN TO EMOTIONALLY CONNECT WITH THE TARGET MARKET.
• PREMIUM SHOULD BE EXPLAINED TO CUSTOMERS THROUGH CSR ACTIVITIES.
OTHER RECOMMENDATIONS
• THE DEMAND AND SUPPLY RATIO NEED TO BE MATCH.
• ACC IS STILL CONSIDERED AS A BRAND OF TRUST BUT SOMEWHERE THE RISING INFLATION IS DECAYING ITS MARKET SHARE.
• PROPER & STRATEGIC ADVERTISEMENT.
• SUGGESTIONS RECEIVED BY MOST OF THE RETAILERS WAS TO IMPROVE THE SALES NETWORK BETWEEN THE COMPANY AND THE RETAILERS
CONCLUSION
IT IS CLEAR THAT ACC HAS STRATEGIC ADVANTAGE OVER THE OTHER COMPETITORS IN NAMELY LAFARGE, ULTRA TECH, BIRLA CORPS AND ETC.ITS PRESENCE IN THE DOMESTIC MARKET FOR MORE THAN 75 YEARS AND THE QUALITY PREMIUM PRODUCT ALONG WITH THE PRODUCTION CAPACITY OF ITS EFFICIENT PERFORMING PLANT HAS GIVEN IT A SWEET SECOND SPOT IN THE INDIAN MARKET BEHIND THE MARKET LEADER ULTRA TECH WHICH IS CONTINUOUSLY FOCUSING ON INCREASING ITS PRODUCTION CAPACITY ACC HAS GOT A GREAT OPPORTUNITY TO ACQUIRE THE MARKET SHARE OF LAFARGE WHICH HAS GOT STRONG MARKET IN THE EASTER PARTS OF INDIA. AS LAFARGE HAPPENS TO EXIT FROM THE INDIAN MARKET BY THE END OF THE YEAR.AFTER THE CONTROLLING STAKES OF ACC GOING TO HOLCEM THERE WAS CHANGE IN THE COMPANY MANAGEMENT STRUCTURE THUS FOCUSING ON MAINTAINING THE QUALITY OF THE PRODUCT
THANKYOU GENTLEMEN'S FOR YOU TIME
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