27404296 Indian Cement Industry

8/8/2019 27404296 Indian Cement Industry

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SUBHOJEET NASKAR

SUBHOBRATA SENGUPTOSWASTI RANJAN SAHU

TAHSIN AKHTARTATHAGATO BISWAS

TANIYA DATTATRIPTIURMIMALA PAUL

PRESENTED BY THE QUALITY ALL GROUPPRESENTED BY THE QUALITY ALL GROUP


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INDUSTRY OVER VIEW:INDUSTRY OVER VIEW:--


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SEGMENTATION SEGMENTATION

Cement is a bulkcomm odi ty, so the indus try is main ly produc t

bas ed.Segment a t ion in cement indus try is bas ed o n itsvarious p roduc ts .eg-Po rt land pozzala nacement, quick ha rden ing cement, re ad y m ixcement .


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SEGMENTATION SEGMENTATIONIndus try focus es o n relationship approach , so as to build a nd maint ain trust centere d

re lat ionsh ip.

The cement Indus try is mos t ly do ne thr ou gh m ass m arketing , as i t do esn t have any cus tom ized p roduc t for any sp ecific group of cus tomer s.

Cement indus try was

p rima rily co ncentr a te d tothe u rba n & sem i-u rba n

secto rs wi th fly-over s, roads , housi ng s, re al s ta te .

how ever now focus is

sh if t ing to ru ral s ecto r with ne w riral d eve lop ment

p rograms suc h as NHRD , Indira Awas Yoja na et c.


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DEMAND DRIVERSDEMAND DRIVERS

1)Strong GDPgrow th of ov er 8per cent over the

pas t three yea rswh ich is like ly tosus tain in fu ture

2)Huge Inf ras tr uc ture sp en ding on

Roads , irr iga t ion, urba n

inf ras tr uc ture, seapo rt s, air-po rt s.

3)Over Rs 100000 cr. of i nvestment line d up fo r SEZs

over ne xt five years

4)Boo m ing RealEsta te ma rket s ledby unpre cedente d

fore ign investment .


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MARKETING MIX MARKETING MIX

Marketing mix is the combina t ion of e lement s th a t you will us e to ma rket you r produc t .(4 P s)


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MARKETING MIX MARKETING MIX CONTINUED..CONTINUED..

Prices ac ross the cou ntry have risen

subs tant ially buo yedby the robus t

dem and fo r cement .

the local d em and ismore th an 60 per cent of the capaci ty

the p rices e lsewhere in the cou ntry a re re ac h ing the viabl e leve ls of Rs180 to Rs 200 per ba g.

TheThe keykey factorsfactors affectingaffecting priceprice sensitivitysensitivity: :ii)) stockstock priceprice movementsmovements (IPO)(IPO) ofof cementcement companiescompanies..ii)Seasonalii)Seasonal changeschanges ..iii)Naturaliii)Natural calamitycalamity


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MARKETING MIX MARKETING MIX CONTINUED.. DEVESHCONTINUED.. DEVESH

Every yea r the p rice israisi ng by Rs.10 -15 .200 8-09 the avg. p rice wasRS.250 -265 bu t it hasrais ed to Rs. 280-290 .REASONS:incre as e in the p rice of rawma ter ial, andtr anspo rt a t ion cos t

EFFECT OFEFFECT OFINFLATIONINFLATION

Distribution channel of cement has 3 level distribution channel.Distribution channel of cement has 3 level distribution channel.

1)Carry &1)Carry &Forward AgencyForward Agency

[CFA][CFA]2)Dealers2)Dealers 3)Sub3)Sub--DealersDealers


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MARKETING MIX MARKETING MIX CONTINUED..DEVESHCONTINUED..DEVESHmain shortcomings in the distribution are:main shortcomings in the distribution are:- -Lack of good communication channel

Roadways Distantly located plants

High sales tax on importfrom other states

High transportation cost

MAJOR CHALLENGES & PROBLEMSMAJOR CHALLENGES & PROBLEMSMAJOR CHALLENGES & PROBLEMSMAJOR CHALLENGES & PROBLEMS

Channe lConflict/ Conflict

bet ween dis tr ibu ter s

Transpo rt at ion Probl em s

Cost Of Availabili ty Of Raw Ma ter ials


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Cement indus try main ly appli es a pus h str ategy as c ement is essent ially viewed as co mm odi ty by the en d us er. So co mpa ny main ly target s the dealer s, eng ineer s w ho ul t imate ly influen ce pu rchas e of the p roduc t, thr ou gh m eeting,se m inars, ca m ps and dis tr ibu t ing gif ts. it sp en ds max of i ts p romo t ional fu nds i n pus h str ategy, and o n the dealer s, eng ineer s, as they influen ce the individual home build er s.

Is Cement Me Jaa n Hai

Jaan Wahi, Pehchan Nai - ULTRATECH


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But with increase in large number of But with increase in large number of fragmented customers pullfragmented customers pull stra tegy

has

now b een adop te d b y top

leadi ng compa nies thr ou gh adv ert isement in T.V. , newsT.V. , news

p a p ers, hoardings, s p onsoring shows p a p ers, hoardings, s p onsoring shows , , et cet c

Eg- ultratech- Engineer s choice

Cement sector(specially ACC Cement) is now adoptingsustainable development practices & they are trying tomake cement which reduces the impact of green housegases.


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B RANDING & ADVERTISEMENT B RANDING & ADVERTISEMENT

Though being a commodity product, branding is important forThough being a commodity product, branding is important fora cement company.a cement company.

ACC CEMENTSACC CEMENTS

PPCPBFSC

AMBUJAAMBUJACEMENTSCEMENTS

PPCPBFSC

ULTRATECHULTRATECHCEMENTSCEMENTS

PPCPBFSC

REVENUE:REVENUE:--As ACC is the most trusted brand in cement it enjoys theexcess revenue and profit than others.Revenue for the year 2009, acc-Rs.8749 cr

konark cement-Rs.780 cr


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Branding & AdvertisementBranding & Advertisementcontinued..continued..

The cement indus try us es less a mou nt for adv ert ising as the T.V. and hoardings , and p rint

me dia cou nt very less as co mpa re d to the abov e two.

The film Chak De India , promotingwomen's hockey in India, became an all-time hit. In the movie UltraTech was the

sponsor of the Indian women's hockeyteam


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SALES MANAGEMENT SALES MANAGEMENT

Cement industry has scope lies mainly inB2B rather than B2C. The reason being:

1. Number of housing companies, realestate business is continuously rising.Demand for cement has increased in thehousing sector ~53%

2. most importantly, govt. has allocated

Rs.1000 cr. To the cement industry forirrigation purpose.

Relationship with the distributers/dealers isa key factor for the success and growthbecause the success of cement industry lieson long term relationship. E.g, IndiaCements with Gammon in Kolkata Metroconstruction.Relationship also indicates how it can attachits product with the individual homebuilders, which is also another key factor .


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SALES MANAGEMENT SALES MANAGEMENT CONTINUEDuCONTINUEDu

. For maint ain ing good re lat ionsh ipco mpa n ies followva rious s tr a tegy; they p rovid e gif tson every ann ual

meet ing, f ree tou r p rograms ,et c..

STRUCTURE OFSTRUCTURE OFSALES FORCESALES FORCE

The str uc ture of the sales te am co nsistsof sal es manager ,

assis tant salesmanager , te am lead er and sal esper so n .

Nu mber of sal esper so n depen d

upo n the po tent ial

of the a re a , cus tomer bas e .

SALESSALESCOMPENSATIONCOMPENSATION

Sales fo rce get s basic

sala ry, incent ives o n ac h ievement of p re fixedta rget, D.A. bo nus es ETC

27404296 Indian Cement Industry

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