REPORT

“ Assessment of market performance of JK

cement and designing strategies for

enhancement”

1

CONTENTS

CHAPTER NO. DESCRIPTION PAGE NO.

1 INTRODUCTION 2-6

2 ABOUT CEMENT 7-12

3 MARKETING DEPARTMENT 13-18

4 INDUSTRY & MARKET SCENARIO 19-24

5 RESEARCH METHODOLOGY 26-27

6 SWOT ANALYSIS 27-29

7 FINDINGS AT A GLANCE 29-30

8 SUGGESTIONS 31-32

9 LIMITATIONS 33

ANNEXURE-1 QUESTIONNAIRE-1ANNEXURE-2 QUESTIONNAIRE-2ANNEXURE-3 BIBLIOGRAPHY

2

CHAPTER-1 INTRODUCTION

1.1 ORIGIN & DEVELOPMENT OF J.K.CEMENT

1.2 COMPANY PROFILE

1.3 PLANT LOCATION

1.4 PRODUCT

1.5 SALIENT FEATURES

1.6 QUALITY PARAMETERS

1.7 ACHIEVEMENT

3

CHAPTER-1 INTRODUCTION

1.1 ORIGIN AND DEVELOPMENT OF J.K.ORGANIZATION

The founder to whom J.K organization owes. its name was a Father son, Late Lala Jhuggilal Singhania and Late.. Lala Kamlapat Singhania. They started their business activities from Kolkata as financial investors over 100 years ago in 1887. in 1914 they shifted towards the Cotton –textile industries at Kanpur (U.P.)

Today in India. J.K Organization occupies a place of pride in industrial. and commercial. Fields . The Singhania family struggled over last two centuries and contributed to the economic and social growth of India. In the process of industrialization. They attend the present place of destination among the top industrial pioneers of the country.

M/S J.K.Cement works is a division of J.K. Synthetics Limited. Kanpur a member of J.K.Organization. Which is a multi product and multi unit company with diversified operation in synthetic fibers, Cement plants (gray & white) , Power generation etc.

M/S J.K. synthetics Limited established their first gray Portland cement plant based on dry process technology at Nimbahera in the year 1974 The main aim to set up the plant was to fulfill the demand of cement in the country. The main reason of establishing this plant in Nimbahera was easy availability of raw materials (Limestone) in sufficient quantity. The whole Maarwad Malwa belt is carrying plenty of Limestone i.e. primary raw material for cement manufacturing.

Then first kiln of this plant was started at 900 tons per day ( TPI) and subsequently the capacity was increased by addition of two more kilns f 1200 TPD 1350 TPD & 3400 TPD in 1979 . 1982 & 1988 respectively.

In 2002. new Grey Cement plant was installed at Mangrol with initial production capacity of 2500 TPD.

Today Nimbahera plant production is around 7000 TPD and Mangrol plant production is about 3000 TPD contributing to total production of 10000 TPD.

J.K.Cement has been awarded by ISO -9000 . ISO-9002 and ISO-14000 & OHSAS-18000.

4

1.2 COMPANY PROFILE

1.2.1 PLANT LOCATION :

J.K. Cement works is located at Nimbahera , District

Chittorgarh , ,Rajasthan, Nimbahera is situated 30 K.M. south of Chittorgarh and

connected to Jaipur by meter gauge railway line. udaipur the nearest domestic airport

is 100 K.M. southeast of Nimbahera by rail and road. It is well connected with ,

Indore ,Chittorgarh , Ajmer , Jaipur, and Gujrat etc. The plant is approximately 2

K.M. away from Nimbahera railway & bus station.

1.2.2 PRODUCT:

J.K.Cement works Nimbahera is leading producer of Ordinary Grey

Cement and Blended Cement, Plant was set up in technical assistance with M/S

F.L.smidth of Copenhagen. Denmark and started commercial production in 1974

with an initial production capacity of 900 TPD and subsequently upgraded in phase

to 7000 TPD.

1.2.3 SALIENT FEATURES:

- First dry process plant in India.

- Latest Process Precaleinator technology for clinker

- Unit II was first PLC controlled cement plant in India.

- Most advanced and sophisticated central control room for entire process

control from one point.

- On line quality control by X-ray analyzer.

- Computerized maintenance management system extended to stores, purchase

sales. account personnel function etc.

- Continuous on going process of training & development at Regional Training

Centre (North) Nimbahera.

5

1.2.4 QUALITY PARAMETERS:

J.K.Cement Nimbahera is using the latest dry process precalicination

technique is its plant. This teehnique incorporates a five stage precheater,

Precalcinator. air swept vertical roller mills and electronically controlled packaging

machine. The major produced grade is “Sarvashaktiman” 43 grade cement. It is also

an ISO 9002 certified manufacturing company. a certificate given by Lloyed.

Register of quality assurance U.K.

Cement has different quality parameters which can be classified broadly in

two categories Chemical and physical generally cement is of three different grades

i.e. 33, 43, 53 based upon cement’s 3.7 or 28 days compressive strength. J.K.

Cement is pioneering in 43 grade cement because of its quality consciousness.

1.2.4 ACHIEVEMENTS :

National award for highest production in 1978.

104% production in 1990-91.

Record production 1.86 million tons against capacity of 1.50 million tons per

annum.

Power consumption reduced to 115 Units per ton of cement in spite of

multiple and old units. Now it has touched as low as 100 units per tone.

Specific heat consumption achieved up to 760 Kilo Calorie per Kg. of clinker.

Selected as one of the lead plant by world bank & DANIDA for setting up the

Regional Training Centre.

Received ISO 9002 certificate for manufacturing and marketing of White as

well as Grey cements both in 1995.

6

PRODUCT

SPECIFICATION

RAW MATERIAL

TRADE NAME

TRADE MARK

PRODUCT GRADES

PACKING CAPACITY

M.R.P.

GREY CEMENT

LIME STONE & GYPSUM

SARVSHAKTIMAN

VIJAYSTAMBH

43,53 AND PPC

50 KG.PER BAG

Rs.210 TO 230 PER BAG

(Table -1)

CHAPTER-2

CEMENT

7

2.1 CEMENT , TYPES OF CEMENT

2.2 MANUFACTURING PROCESS

CHAPTER -2

Cement can be defined as a substance, which can join or unite two or

more pieces of some other substances together to form a unit mass.

In this way cement is a building material. Today different types of

organic compound’s mixtures are also available as a building material e.g. Pidilite,

Feviquick, Fevicole etc. But in general “Hydraulic Cement” is used for construction

and other (bricks, other solids etc.) purposes.

2.1 TYPES OF CEMENT

There are several types of hydraulic cement available. Major categories are-

- Hydraulic Limes

- Natural Cement

- Portland Cement

Out of these categories , the Portland cement is the most important and extensively

manufactured in India. Portland cement is so common that we call it simply cement.

Portland cement is composed of –

- Tricalecium Silicate

- Diacaleium Silicate

- Teracalcium Silicate and

- Teracalcium Aluminoferrate

8

These substances are essentially present in cement. Presence of more or less of the

above constitutes in the Portland cement imparts the different properties required for

different properties required for different types of cement such as-

- Ordinary Portland cement(OPC) manufactured at NIMBAHERA .J.K.Cement

plant

- Moderate heat PC

- Rapid hardening PC

- Low heat PC.

- Sulphate resisting cement

- Oil well cement

- White cement

There are also some natural or man made inorganic complexes which mixed with

Portland cement clinker gives cement more suitable for certain jobs. These

compounds are Pozzolanas. Slag, Limestone and Sandstone;

2.3 MANUFACTURING PROCESS

Every manufacturing process starts with the procurement of raw

materials. For production of cement the raw materials required are-

- Limestone

- Laterite

- Gypsum and

- Clay

Lime stone mainly contains calcium carbonate. Which is the major component of

cement. Laterite contains iron oxide and Clay provides silica as well as alumina.

Gypsum helps in increasing the setting time of cement.

There are three production lines involving five significant manufacturing

stages namely crushing. raw mill grinding. Clinkerisation. cement grinding and

packing.

9

At Nimbahera plant Limestone is produced by open Cast Miting . First

the holes of 6-8 ft. are drilled and then they are filled with explosive ( e.g.ANFO as a

stimulant + some other explosion sensitive material). Afterwards the blasting takes

place and rocks of different sizes are out. These rocks are then loaded in Dupmpers

so as to dump it into Crusher Hopper storing place of raw material for a short

period).

From hopper the material (rocks of not more than 1x1 meter size) is fed

in to crusher by feeder. Crusher reduces the size up to certain fixed level but finally

secondary crusher gives it final size that is of appprox. 25 mm.

The crushed limestone is then stacked in Limestone stockpiles by

stacker according to low grade and high-grade limestone. Then the Reclaimed blends

the limestone and provides homogenous grade of Limestone. Then this bland of

Limestone is conveyed to gantry yard of limestone hoppers through belt conveyer

from gantry yard/ hoppers blended limestone as well as Literate is fed into raw mill

with the help of EOT cranes The material is discharged from hoppers to raw mill by

rotary feeders though belt conveyers grinding.

In raw mill, the material is ground as fine powder. This fine powder is

called as raw meal. This raw meal is then sent O Silo (a big cylindrical tank) for

homogenization. This Silo is called as Blending Silo. Because Blending of Raw

Meal is extracted from bottom of silo by Fluxo channels and converyed to passage

hopper by screw conveyer, from where the material goes to weighing belts by

Elevator and air slide. Fixed quantity then goes to F.K. Pump by air slide and excess

material goes back to weighing hopper F.K.pump feeds this material to preheated

tower which consist of Cyelones (Conical shaped from bottom) and Raiser duets.

The height of this tower is approximately 70 meters. All the Cyelones

and Raiser ducts get heat from the Rotator kiln with the help of high capacity

10

preheater fan which diverts mainly the waste gases and thus reduce energy

requirements. A portion of raw meal is preheated in the preheater tower At this stage

the temperature profile given below-

TEMP.(DEGREE CENT.) CYCLONE

350 To 380 Ist

560 To 600 2nd

700 To 760 3rd

820 To 840 4th

Here the Limestone is partially converted into Calcium Oxide.

Others chemical reactions take place inside the kiln as from precheater the material

goes to Rotator Kiln. The Rotatory Kiln is the heart of cement plant because it is

completely responsible for cement clinker production and the quality of the cement.

The kiln rotates with the help of electric motors. From inside the kiln is completed

insulated with heavy duty fire bricks (Refectory bricks) . Which protects the metallic

surface of the kiln from getting overheated. According to the temperature profile, the

kiln is divided in to following three zones.

ZONE TEMP.(Degree Cent.)

Coohng Zone 850 to 950

Calcining Zone 940 to 980

Burning Zone 1350 to 1450

To heat up the kiln fine coal powder is injected though jet from the outlet side of kiln

and this way material is converted into clinker coal is fed from coal yard into coal

hopper by front end Loaders and then crushed in coal crushers. Which finally

conveyed to coal mill?

The coal power is then stored in coal bin. The coal powder of a

prescribed particle size is extracted from bin by coal screw. This coal comes into

11

burner pipe with primary air fan. Coal powder is burnt inside the kiln with flame

zone nearer to outlet side.

Burning Zone the hottest zone of the rotatory kiln where the temperature

reaches up to 1450-degree centigrade. At this temperature, chemical reaction takes

place. Reaction is Exothermic (releases heat when takes place ) so the liberation of

heat occurs. Calcium Oxide rates with silica so the formation of Dicalcium Silicate

takes place and finally Dicalcium Silicate racts again with Calcium Oxide to form

Tricalcium silicate. Which is the final form of cement clinker.

From the clinker yard. Clinker and Gypsum are fed into respective

hoppers though E.O.I. crane. They are fed to the cement mill in prescribed

proportion though electronic E.O.I. feeder and subsequently conveyed with the help

of belt conveyer up to cement mill. Cement mill is the tube link structure which is

loaded with balls of different sizes as grinding media balls grinds the material into

fine powder which is called “Cement from Cement mill the cement is stored with the

help of Fluxo pump which is the pneumatic

Pressure Pump cement is extracted from bottom of silo though

Fluxo channels and conveyed to elevator by serew conveyer Elevator feeds this

cement into packaging hopper though rotatory screen.

Packers till 50 Kf. cement into Gunny / H.D.P.E. bags and these

bags are coveyed to railway wagon and trucks by Rubber belt conveyer (RBC) and

these bags are arranged in Wagons/ Trucks manually.

12

CHAPTER -3 MARKETING DEPARTMENT

3.1 MARKETING DEPARTMENT SET-UP3.2 SALES DEARTMENT SET-UP3.3 DEPOTS OF DIFFERENT STATES3.4 DESPATCH MODE

MARKETING DEPARTMENT SET UP AND DISTRIBUTION NETWORK

3.1 MARKETING DEPARTMENT OF J.K. CEMENT:

DIRECTOR

VICE PRESIDENT (MKTG.)KANPUR H.O.

D.G.M. & Sr.Manager Works At H.O.

GUJRAT HARYANA DELHI MAHARASTRA

13

RAJASTHAN MP UP PUNJAB ,J&k GM(MKTG.) REGN.MGR. SR.MGR. SR.MGR.

(JAIPUR) (INDORE) (GAZABAD) (CHANDIGARH)

RGN.MGR. (AGRA)

(Fig-2)

SALES DEPARTMENT SET UP AND DISTRIBUTION NETWORK

3.2 SALES DEPARTMENT NIMBAHERA PLANT:

V.P. (WORKS) AT NIMBAHERA PLANT

G.M.(WORKS)

D.G.M.(MKTG.)

Sr.Manager (MKTG.)

MANAGER (MKTG.)

Dy.Manager (MKTG.)

ASST.MANAGER (MKTG.)

14

SR.OFFICER (MKTG.)

OFFICER (MKTG.)

OTHER STAFF MEMBERS

(Fig-3)

DEPOTS

3.3 DIFFERENT DEPOTS OF DIFFERENT STATES:

1. Gujrat: Three Depots

- Ahemedabad

- Baroda

- Himmatnagar

2- Rajasthan : In Rajasthan there are four Transit offices which are not actually

depots . The cement is generally sent to these offices as and when it is convenient.

These are the storage places.

- Balabala (Jaipur) Ajmer

- Chanderia (Chittorgarh) Alwar

- J.S.Raod (Jaipur) Bhilwara

- Kishangarh Udaipur

- Bikaner Kota

3- Punjab , J&K : Six depots (all are in Punjab there was a depot in jammu but it

was shut down before some time).

- Bhatinda

- Chandigarh

- Jalandhar

15

- Ludhiana

- Mohali

- Patiala

4- Haryana – Eleven depots

- Ambala -Karnal

- Bhiwani - Rewari

- Faridabad - Rohtak

- Gurgaon - Sirsa

- Hissar - Sonipat - Jind

5- U.P. : Four depots

- Agra

- Gaziabad

- Mathura

- Meerut

6- Delhi : One depot only

- New Delhi

7- M.P. : Two depots

- Indore

- Neemuch

8- Maharashtra : One depot only

- Mumbai

TRANSPORTATION

3.3 MODES OF DESPATCH

There are mainly two modes of transportation are available. One is Railways and another is Roadways.

16

A) BY RAILWAYS:-

1- By M.G. Wogons: 4 Wheelers – Capacity is 377 bags per wagon 8 Wheelers- Capacity is 746 bags per wagon

2- By B.G. Wagons: In CRT wagons – Capacity is 550 bags per wagonIn BCX & BCN wagons Capacity is 1100 Bags per

wagon

3- By Containers: Generally there are two contains in one wagon with each having capacity of 550 bags.

B) BY ROADWAYS:-

Trucks are the only transportation medium on roads. Some trucks are dedicated

trucks. Means the truck owner is totally dedicated to the company and his truck

carries the cement as per company’s convenience as and when required. We can

assume these trucks as company owned. There are approximately 40 trucks of these

types.

The capacity of a truck is 180-740 bags for different types of trucks big or small.

The process of dispatching in the case of trucks begins when a Dispatch instruction

(DI) is given by the sales & Marketing department . According to order received. to

the truck transporter and he takes it in to the packaging department where instructed

quantity is handed over to the truck.

Foe dispatching the goods by Railways. Sales department also prepares a DI

according to which packaging department loads the goods into railway wagon and a

Railway receipts ( RR) is given to packaging department by railway office which it

sends to sales department. RR shows the detail what quantity railway has taken from

the company.

Excises duty 408 Rs. per ton of Cement

Sales Tax 19% inclusive service Tax

17

CHAPTER -4 INDUSTRY & MARKET SCENARIO

4.1 NATIONAL PERSPECTIVE

4.2 DEMAND AND SUPPLY PATTERN

4.3 PRESENT SCENARIO OF J.K. CEMENT IN BIKANER

4.3.1. PRESENT BUSINESS DETAILS

4.3.2 LAST FIVE YEAR BUSINESS DETAIL

4.3.3 ZONE WISE DESPATCH PLAN

18

CHAPTER -4 INDUSTRY & MARKET SCENARIO

4.1 NATIONAL PERSPECTIVE

Cement industry in India has grown steadily science independence.

The growth in the industry has followed the pattern of economic growth. i.e.

moderate to low growth during the fifties. the sixties & the seventies and high

growth during the eighties and nineties.

Diagram -1 depicts the movement of cement production alongside the

movement of national income during the last twenty-three years.

Since the decontrol of cement. the industry shows the typical symptoms

of “free market conditions. where producers build capacities ahead of demand in

the expectation of netting the demand explosion.

4.2 DEMAND AND SUPPLY PATTERN

In the cement industry demand is represented by actual consumption

hence these two terms are used interchangeably. Cement consumption growth in

the country, over the last decade has exhibited a strong correlation to the GDP

growth with an elasticity of approximately 1.37 times. i.e. a growth of 1% in the

GDP correlates to a growth of 1.37% in cement consumption. The future growth

in cement is calculated based on assumption of the expected GDP growth rate.

This methodology however does not take into account. The impact of any

unforeseen event like earthquakes or cyclones on cement demand.

19

The following table depicting the GDP growth rates foe future years. The

effective growth rates also takes into account the mini cement plant dispatches.

which are assumed not to grow.

(Table -2 )

Year GDPgrowth

rate (%)

CementConsumption

growthrate (%)

Dispatcheslarge plants(Mio t)

Dispatchesmini plants

(Mio t)

Total Consump-

tion(Mio t)

Effective growth

rate (%)

2001-2002 5.0 6.0 95.6 6.1 148 5.92002-2003 6.0 7.5 102.77 6.1 137 6.82003-2004 6.0 8.2 111.20 6.1 126 7.3

2004-2005 6.0 8.2 120.31 6.1 117 7.72005-2006 6.2 8.5 130.54 6.1 109 8.72006-2007 6.2 8.5 141.60 6.1 148 8.0

Production projections are based on the estimated maximum

achievable production of existing and expected plants in the future year.

Estimates of future capacity additions are based on media announcements

regarding the future plans of cement players. The future outlook of the Indian

cement industry is depicted in the following graph. The graph provides a

comparison between national demand and the production for the next six years.

20

Graph -1

0

20

40

60

80

100

120

140

160

MIO TONNES

YEAR

DEMAND V/S PRODUCTION

DEMAND

PROD.

DEMAND 102 108 117 126 137 148

PROD. 109 120 132 139 143 146

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Hence from the above comparison total demand will exceed the total

production if no capacity. other than already announced is added.

4.3 PRESENT SCENARIO OF J.K. CEMENT STATUS IN BIKANER ,2005

4.3.1PRESENT BUSINESS DETAILS:

Market potential 60,000 MTN/annum

Annual demand 2,80,000 TN/ annum

Market Share 12%

21

Price of cement 210-230 per bag

4.4 LAST FIVE YEAR BUSINESS DETAIL OF J.K. CEMENT

(Table – 3)

YEAR PRICEPER BAG

(Rs.)

DEMANDTN/ANNUM

FRT.RATERS./TN

DISCOUNT PER TN.

(RS.)2000-01 124 640000 348 1502001-02 129 640000 366 1602002-03 120 750000 360 1752003-04 124 835000 390 1602004-05 140 860000 380 180

2005-2006 165 120000 410 200

The pictorial view is given below: Graph 2 & 3

0

50

100

150

200

250

300

350

400

VALUES IN Rs.

YEAR

Graph-2

PRICE

FRT.

DISCOUNT

PRICE 124 129 120 124 140 162

FRT. 348 366 360 390 380 395

DISCOUNT 150 160 175 160 180 185

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

22

0

100

200

300

400

500

600

700

800

900

1000

TN./ANNUM

YEAR

Graph-3

DEMAND

DEMAND 640 640 750 835 860 920

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

4.3.3 IN RAJASTHAN ZONE WISE DESPATCH PLAN WITH RETENTION FOR THE MONTH JULY -05

(Table – 4)ZONE QTY.

DEMAND(MT)

AVG.RATEPER BAG

RS.

AVG.FRTPER BAG

RS.

AVG.DISCOUNTPER BAG

RS.

AVG. RETENTION

RS.

SOUTH 15000 141 10.5 8 1501CENTRA

L12000 143 20.5 8 1373

WEST 13000 143 19 8 1398EAST 11400 145 26 8 1314

NORTH 9000 148 28 8 1331TOTAL 60400 143.65 19.93 8 1393

23

Graph -4

24

DEMAND(IN 00,S) IN DIFFERENT ZONES IN RAJASTHAN

SOUTH, 150, 24%

CENTRAL, 120, 20%

WEST, 130, 22%

EAST, 114, 19%

NORTH, 90, 15%

SOUTH

CENTRAL

WEST

EAST

NORTH

CHAPTER -5 RESEARCH METHODOLOTY

5.1 THE RESEARCH OBJECTIVES ARE :

1. To find out the brand performance of J.K. Cement in the market.

2. To find out the problems of dealers and retailers in business with this

brand/Company

3. To find out the scope of expansion of business by providing more new

dealership.

5.2 ADOPTED RESEARCH METHODOLOGY AS FOLLOWS:

Sample size Dealers -3

Retailers – 37

Contractors-10

Total – 50

Sampling unit Bikaner

Sampling Procedure Judgment sampling

Research design Exploratory

Data collection method Survey

Date source Primary data

Research instrument Questionnaire

Type of questionnaire Structured

Type of questions Close and open ended

Area covered Dealers Retailers and

Contractors

25

CHAPTER -6 SWOT ANALYSIS

S-STRENGTHS

-J.K.Cement possess good brand image in the existing market which is

definitely a part of pavement brick for it.

Location has always been an important factor. in Rajasthan extensive (about

2500 MT) of cement grade limestone available.

Older plant and has a well known brand name in market.

Good plant having 10,000 tons per day production capacity.

W-WEAKNESSES

-Low sales as compared to market potential. The market potential of the

Bikaner market is high but as compared to it the stake of J.K. Cement is low.

-Lack of self enthusiasm in the working pattern of the executives as a result

the aggressiveness towards sales is low.

High complaints of quality deterioration in J.K. super brand.

Less advertisement and negligible sales promotion schemes as compared to

other brands.

Monopoly of dealers is affecting the sales.

26

O-OPPORTUNITIES

-Exposure of quality. which is already good but not displayed in market.

-More advertisement.

Competitive prices.

Making good dealers and penetrate the market up to retailer level.

May increase the discount and margin structure for retailers and dealers.

T-THREATS

-Some dealers are available at present which were not reputed / efficient.

-Other companies advertising policy.

-Price fluctuation and price war which is a general phenomenon in this

cement industry.

-Quick availability/ Supply of cement of other cement industries are creating

threat for J.K. cement.

27

CHAPTER -7

FINDINGS AT A GLANCE

- Good brand image of J.K.Cement in existing market.

- Low sales as compared to market potential. which is around 12% of the total

Bikaner market.

- Vikram, Binani,& Ambuja have maximum market shares viz.

15% ,14%,14%, respectively.

- Price of J.K.Cement is very high ( approx.4-5 Rs. per bag) with respect to

other companies.

- Transit time is higher from depot to stockiest’s to warehouse as compared to

other major cement companies.

- Lack of sales aggressiveness.

- Pricing policy of company is not stable. It change very frequently and without

any prior information. Due to this customer are switching over to other

brands.

- there is a big problem of loading of goods. customer has to wait for a long

time for loading.

- Company neglects the semi dealers/retailers and has no certain policies for

them. Company has attention only on dealers.

- Profit margin given by company is less and no any promotional schemes for

retailers and semi dealers.

- Less advertisement of the product as compared to other company

- Quality deterioration complaints in J.K. Super cement.

-High black particles found which are insoluble in water.

- Setting time is higher than other cement of same category.

- Lack of self-enthusiasm is working patterns of executives.

- Improper communication between executives and dealers & other parties.

28

- No facility for removal of complaints from the side of dealers/ retailers on

time.

- There is a need of a depot at Bikaner for timely delivery.

- There is a complaint from the side of retailers is that dealers deal customer

directly and sell cement on lower price. Due to this customer does not go to retailer

and purchase from dealer. Thus retailers are not interested to keep stock of

J.K.Cement. They are switching over to other brands. It may have a big impact on

the sale of J.K.Cement.

- 80% retailers are not happy with their business as they are getting low or

negligible margin and facing intense competition. Dealers are happy with their

business (Only I dealer Friend’s cement suppliers fell that his business is not

successful). Survey made clear that dealers have their monopoly over market and

retailers are suffering.

29

CHAPTER-8

SUGGESTIONS

A company would be wise to measure customer satisfaction regularly the key

to customer retention is customer satisfaction.

Company can increase the role of retailer by considering their suggestions or

complaints about service or product so that necessary action can be taken.

Review meeting should be often held so that the working pattern of the

executives can be checked and improved if needed.

Executives need to be more self-enthusiastic and aggressive towards sales, for

these appraisals should be given to those executives who worked hard.

Company representatives should visit retailers and should make a long-term

relationship with retailer so that they can push the product.

Since customers are value maximizes and their expectation to this brand is

high, as the brand image shows their complaints should be attended

immediately to make them remain brand loyal.

It should be checked that the non-trade consignment is not sold in the market

so that it does not disturb the retail price of the market.

Since transportation forms the major part of the cement cost. Market potential

of the region should be properly accessed so that emphasis can be more on

high retention Zone. Which employing more authorized retailers can do.

Stockiest should be convinced to pass the incentives to the retailers so that

they are motivated to promote this brand.

Company should increase the promotional and advertisement activities from

giving the popularity to the product.

Company should set the policy on pricing. There should be a certain time

period from increment and decrement in the pricing. Company should also

give the prior information for this to dealers and retailers.

30

There should be proper loading facility in the plant and out side the plant.

Delivery of goods should be on time.

Top management and executives should maintain proper communication with

dealers and retailers.

Increase the number of dealers and retailers as this will help in making high

sales volume.

Cash discount should be competitive and luring.

Try to remove dealer’s monopoly.

31

CHAPTER-9 LIM

CHAPTER -9

LIMITATIONS

The research conducted was limited to Bikaner city only.

Due to time constrains more time could not be devoted to individual

respondent.

Due to unwillingness of providing any information, the respondents filled the

questionnaire casually which might have effected the consolation.

Marketing manager being quite busy with his job. He was not able to spare

enough time for our proper guidance.

A busy schedule of dealers/ retailers also makes the collation of information a

very difficult one.

Full district was not covered, as this is very tedious job to be done in 7 days

however almost all main areas of district were covered.

The projection is purely based on verbal meetings and may be influenced by

unprecedented factors.

Non-co-operative behavior of respondent was a big problem in this survey.

White studying the report the above fact should be taken into consideration.

32

ANNEXURE

QUESTIONNAIRE-1

QUESTIONNAIRE-2

BIBLIGRAPHY

ANNEXURE-1

QUESTIONNAIRE-1

Name of the

dealer/retailer……………………………………………………………...

Phone………………………Email …………………………………………………

Address………………………………………………………………………………

……………………………………………………………………………………….

Town …City………………………District…………………………………………

1- No of years in Cement trades: -

…………………………………………………………………………………………

2- Brands dealing in:

S.No. Name Brand wise

sales (Per

Month)

Brand wise

prices (Per

Bag)

Brand wise

discount

Structure

B1

B2

33

B3

B4

B5

3- Dealing with which company/dealer:

Company

…………………………………………………………………..

Dealer

……………………………………………………………………..

4- Are you regular customer of?

Company Yes No

Dealer: Yes No

5-If No (Kindly give the specific reason):

High price High transportation cost

Quality Other reason…………………

6- Your mode of payment (Please tick):

- Cash

- Credit

- Both

7- Most demanded brand:

………………………………………………………………………………

7(A) Why?

………………………………………………………………………………

………………………………………………………………………………

8. Market potential of demanded brand:

………………………………………………………………………………

9. Which brand is more advertised?

34

………………………………………………………………………………

10- Which type of advertising do you feel is the most effective? (Please tick)

- Newspaper

- Hoardings

- Wall painting

- T.V.

Others

11-Your suggestions (Please tick):

(Sequence of brands as per the above table )

B1 B2 B3 B4 B5

* Publicity

High ………………………………………………………………

Moderate ………………………………………………………………

Low ………………………………………………………………

* Pricing

High ………………………………………………………………

Reasonable ………………………………………………………………

Big margin ………………………………………………………………

* Product

Quality

Good ………………………………………………………………

Average ………………………………………………………………

Below average …………………………………………………………

* Packaging

Good ………………………………………………………………

Average ………………………………………………………………

35

Belowaverage ……………………………………………………………

* Availability -

Easy ………………………………………………………………

Sometimes ……………………………………………………………..

Hardly Available……………………………………….

12- For Multi brand seller:

- Do you feel that your business is successful? (Please tick)

Yes

No

If “Yes” then which brand do you think helped most in your success?

………………………………………………………………

If “No” than way?

………………………………………………………………

………………………………………………………………

13- For mono brand Seller:

Do you feel that your business is successful? (Please tick)

Yes:

No:

If “No” then do you think that your present brand in which you are trading is

responsible for that? (Please tick)

Yes:

No:

If “Yes” which brand it is and why do you feel so?

………………………………………………………………

………………………………………………………………

14- “Yes” which brand it is and why do you feel so?

43

53

36

15- Why it is so?

………………………………………………………………

………………………………………………………………

16- Are you interested to take dealership of J.K.Cement?

Yes

No

17- If Yes/No please mention the reason.

………………………………………………………………

………………………………………………………………

18- General Problem faced by you in this trade:

………………………………………………………………

………………………………………………………………

19- Any comments on J.K.Cement (Sarvasktiman)

………………………………………………………………

………………………………………………………………

Thanking You

ANNEXURE-2 QUESTIONNAIRE-2

Pricing of cement according to consumers/contractor in Bikaner

Name

……………………………..Occupation…………………………………

Phone

No………………………………………………………………………...

Address………………………………………………………………………

……………………………………………………………………….

1- Which brand of cement did you buy at present/last time?

37

J.K. (Sarvashaktiman) Shree

Binani Birla

Chetak Vikram

Ambuja Other………………………..

2- Which brand you suggest to consumer and why? (For contractor)

………………………………………………………………

………………………………………………………………

3- Why did you choose that brand?

………………………………………………………………

………………………………………………………………

4- How do you rate the quality of chosen brand?

Very good

Good

Average

Fair

Poor

5- Who has suggested you for that brand?

………………………………………………………………………...

………………………………………………………………………...

6- From where you purchased?

………………………………………………………………………...

………………………………………………………………………...

7- Please give rating (Tick) to following according to your choice: -

8-

Rating J.K. Chetak Vikram Shree Binani Birla Ambuja

1

2

3

38

4

5

6

7

8- Your comments regarding J.K.Cement:

………………………………………………………………………...

………………………………………………………………………...

Thanking You

39

ANNEXURE-3

BIBLIOGRAPHY

Kothari C. R. ; Research Methodology; Second Edition; New Age International (p) Limited, publisher; 2004 , pp. (1-229).European Journal of Social Kotler, Philip, “Marketing Pearson Publishers, New Delhi.Magazines and JournalsBusiness TodayBusiness India India TodayJournal of Organizational BehaviorAmerican Journal of Industrial MedicineStrategic Management Journal PsychologyWWW.JKCEMENT.COM

40

41