A project report on customer satisfaction and market potential of Ambuja cements - Document Transcript

1. A PROJECT REPORT On CUSTOMER SATISFACTION AND MARKET POTENTIAL OF AMBUJA CEMENTS PREPARED BY: NEW DELHI

2. CONTENTS

3. Chapter-1

a) Introduction about the cement industry

4. Chapter-2 Introduction to the organization Background of problem task Rationale Scope of the project

5. Chapter-3 Objective of the study Main objective Specific objective Chapter-4 Methodology Data collection method Research methodology Swot analysis Pest analysis Chapter-5 Data analysis Chapter-6 Limitations of the study Chapter-7 Findings Chapter-8 Recommendations Chapter-9 Bibliography Chapter-10 Sample questionnaires

6. 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 tones. The industry has undergone rapid technological up 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 income 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 tad. At present there are 124large 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 positivetrend towards the increased use of blended cement can be seen with the shareof blended cement increasing to 43%. There is regional imbalance in cementproduction 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

7. sources, exploiting the natural resources to the full extent. The southern region isthe most cement rich region while other regions have almost samecement production capacity. The Indian cement industry is about 90 years oldand its main sources of energy are thermal and electrical energy. The thermalenergy is generally obtained from coal, and the electrical energy is obtainedeither from grid or captive power plants of the individual manufacturing units.2. Salient features of Indian cement industry• Indian cement industry is the second largest in the world with an installedcapacity 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 amixed picture with many new plants that employ state-of-the-art dry processtechnology and a few old wet process plants having wet process kilns.· Production from large plants (with capacity above 1 MTPA) account

for 85% ofthe total production.· The cement industry has achieved significant progress in terms of reducing theoverall energy intensity. Dry process plants that the weighted average thermalenergy consumption was 734 kCal/kg clinker, and weighted average electricalenergy consumption was 89 kWh/tonne of cement. The best energy consumptionare 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 aspercentage of total production cost of packed cement) varies from 29 to 61%.

8. This is observed to vary with the vintage of the plant, the technology employedby the plants and the type of cement produced.Specific thermal and electrical energy consumption for the plants rangesbetween 692 – 879 kCal/kg. of clinker and 66 – 127 kWh/ton of cement produced(product mix) respectively. The specific electrical energy also includes the energyconsumed in packing, plant utilities and plant lighting. The reasons for widerange in specific energy consumption can be mainly attributed to the differingequipment configuration employed in different sections of the plants . Total productionThe cement industry comprises of 125 large cement plants with an installedcapacity of 148.28 million tonnes and more than 300 mini cement plants with anestimated capacity of 11.10 million tonnes perannum.The Cement Corporation of India, which is a Central Public Sector Undertaking,has 10 units. There are 10 large cement plants owned by various StateGovernments. The total installed capacity in the country as a whole is 159.38million tonnes. Actual cement production in 2002-03 was 116.35 million tonnesas against a production of 106.90 million tonnes in 2001-02, registering a growthrate of 8.84%. Major players in cement production are Ambuja cement,Aditya Cement, J K Cement and L & T cement.Apart from meeting the entire domestic demand, the industry is also exportingcement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14million tonnes and 6.92 million tonnes respectively. Export during April-May,

9. 2003 was 1.35 million tonnes. Major exporters were Gujarat Ambuja CementsLtd. and L&T Ltd.The Planning Commission for the formulation of X Five Year Plan constituted aWorking Group on Cement Industry for the development of cement industry. TheWorking Group has identified following thrust areas for improving demand forcement;i. Further push to housing development programmes;ii. Promotion of concrete Highways and roads; andiii. Use of ready-mix concrete in large infrastructure projects.Further, in order to improve global competitiveness of the Indian CementIndustry, the Department of Industrial Policy & Promotion commissioned a studyon the global competitiveness of the Indian Industry through an organization ofinternational repute, viz.Table given here is representing the cement industry growth through five yearplans……Five years plan Years Capacity (mt) Production (mt) Pre plan 1950-51 3.28 2.20 2nd plan 1951-56 5.02 4.60 3rd plan 1956-61 9.30 7.97 4rth plan 1961-66 12.00 10.97 5th plan 1969-74 19.76 14.66 6th plan 1974-79 22.58 19.42 7th plan 1980-85 42.40 30.13 8th plan 1985-90 61.31 45.41 9th plan 1992-97 105.26 76.22 10th pl 1997-02 146.13 108.40

10. Cement industry has been decontrolled from price and distribution on 1stMarch 1989 and de-licensed on 25th July 1991. However, the performance of theindustry and prices of cement are monitored regularly. Being a key infrastructureindustry, the constraints faced by the industry are reviewed in the InfrastructureCoordination Committee meetings held in the Cabinet Secretariat under theChairmanship of Secretary (Coordination). The Committee on Infrastructure alsoreviews its performance. Technological changeContinuous technological upgrading and assimilation of latest technology hasbeen going on in the cement industry. Presently 93 per cent of the total capacityin the industry is based on modern and environment-friendly dry

processtechnology and only 7 per cent of the capacity is based on old wet and semi-dryprocess technology. There is tremendous scope for waste heat recovery incement plants and thereby reduction in emission level. One project for co-generation of power utilizing waste heat in an Indian cement plant is beingimplemented with Japanese assistance under Green Aid Plan. The induction ofadvanced technology has helped the industry immensely to conserve energy andfuel and to save materials substantially. India is also producing different varietiesof cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement(PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, RapidHardening Portland Cement, Sulphate Resisting Portland Cement, White Cementetc. Production of these varieties of cement conform to the BIS Specifications.

11. Also, some cement plants have set up dedicated jetties for promoting bulktransportation and export. State- wise major cement plants state No.of plants Capacity mt Andhra pradesh 24 23.96 Assam 1 0.20 Bihar 1 1.00 Chhatisgarh 9 10.36 Delhi 1 0.50 Gujrat 12 17.12 Haryana 1 0.17 Himachal pradesh 4 4.06 J and k 1 0.20 Jharkhand 5 4.57 Karnatka 9 10.07 Kerala 1 0.42 Madhya pradesh 12 16.39 Maharashtra 8 10.95 Meghyalaya 1 0.20 Orrisa 3 2.76 Punjab 3 2.84 Rajasthan 14 17.95 Tamil nadu 13 14.79 Uttar pradesh 7 5.07 West Bengal 4 3.13Total 134 146.71

12. Current status of Indian cement industryThe Indian cement industry has grown remarkably in the last two decades toemerge as the second largest in the world after china. In terms of technology ,quality and productivity, India cement industry is remarkably is undeniably at thetop. Today, the country has 134 major plants with an installed capacity of 146.71million tones. There are also 60 surviving mini and tiny units with a capacity of6.3 million tones . The combined capacity of the cement industry is 153.01million tones . in recent years , the production of blended cement has increasedin India as more and more companies shifting their emphasis from opc toblended cement.With increased cement production, the cement supplies have increasedsubstantially resulting into depressed prices, with producers are gettinginadequate returns on their investment, affecting the bottom lines of severalcompanies.Today, the Indian cement industry is passing through are alignment andconsolidation . Multi nationals have a strong entry in the cement market and aretrying 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

13. Introduction of Jk cement limitedJ.K. Cement is an affiliate of the J.K. Organization, which was founded by LalaKamlapat Singhania. The J.K. Organization is an association of industrial andcommercial companies and has operations in a broad number of industries.Our cement operations commenced commercial production in May 1975 at ourfirst plant at Nimbahera in the state of Rajasthan. At Nimbahera, we started witha single kiln with a production capacity of 0.3 million tons. We added a secondkiln in 1979 with production capacity of 0.42 million tons, and a third kiln in 1982with a production capacity of 0.42 million tons. We added a precalciner with acapacity of 0.4 million tons in 1988, which increased our capacity at Nimbaherato 1.54 million tons. During the years 1998 through 2003, we continued toimplement modifications to each of our kilns, which increased our aggregatecapacity at Nimbahera to 2.8 million tons as of September 30, 2005.We commissioned a second grey cement plant at our Mangrol plant in 2001,

witha production capacity of 0.75 million tons. As of September 30, 2005, we had anaggregate production capacity of 3.55 million tons per annum of grey cement.Our white cement plant was completed in 1984 with a capacity of 50,000 tons.Our continuing modifications to the plant have increased its production capacityto 300,000 tons as of September 30, 2005.Today, J. K. Cement Ltd. is one of the largest cement manufacturers in NorthernIndia. We are also the second largest white cement manufacturer in India byproduction capacity. While the grey cement is primarily sold in the northern India

14. market, the white cement enjoys demand in the export market including countrieslike South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya,Tanzania, UAE and Nepal.Our access to high quality limestone reserves that are suitable for production ofwhite cement provides us with a competitive advantage. Based on geologicalsurveys conducted by independent agencies on our mines between 1996 and2001, our limestone reserves for both grey and white cement are expected tomeet our existing and planned limestone requirements of 4.0 MnTPA of greycement and 0.4 MnTPA of white cement, for approximately 40 years.Backed by state-of-the-art technology and highly skilled manpower against thebackdrop of India’s infrastructural growth in an overdrive, we are upbeat aboutthe future. We are confident of contributing heavily in India’s journey ofdevelopment. We see a world of concrete ideas on the horizon. Types of product of JK cementGrey cement produced by us consists of OPC and PPC. There are also othercements in the market that we do not produce, such as Portland slag cement, oilwell cement, sulphate resistant cement, rapid gardening cement, low alkalicement, low heat cement and super finish cement.OPC has three grades that weproduce, that are differentiated by their compressive strengths, expressed inmega pascals (“MPa”), as specified by the BIS.These grades are 53-grade OPC,43-grade OPC and 33-grade OPC, with 53-grade OPC having the highest

15. compressive strength.The customer selects the grade of OPC based on theintended application. Our most popular cement, by sales volume, is 43-gradecement, with 53-grade cement being used in applications which require highstrength characteristics.Ordinary Portland CementOPC is produced by inter-grinding cement clinker prepared in a rotary cementkiln with gypsum. Each metric ton of OPC requires approximately 0.95 metrictons of clinker and approximately 0.05 metric tons of gypsum. The range ofapplications, the physical and chemical requirements specified by BIS andstrength of the three grades of OPC are discussed below:53-grade OPC (IS:12269-1987): 53-grade OPC is a high strength cement.According to the BIS requirements, 53-grade OPC must have a 28-daycompressive strength of no less than 53 MPa. For certain specialized products,such as pre-stressed concrete and certain pre-cast concrete items requiring highstrength, 53-grade OPC is considered useful as it can produce high-gradeconcrete at lower cement content levels. We produce 53-grade OPC by exposingthe clinker to the grinding process for longer period of time,whichresults in ahigher density and stronger cement. As the grinding process requires asignificant amount of power, finer grinding for the 53-grade OPC requires morepower and is therefore priced higher compared to lower grades of OPC.53-gradeOPC can be used for the following applications:

16. Portland Pozzolana CementWe also manufacture PPC (IS:1489 (Part-1) – 1991) under the brand name J.K.Super. PPC is also known as blended cement or silicate cement, and thisblended cement has become increasingly popular in the market in recent years.Each ton of PPC requires approximately 0.75 tons of clinker, 0.05 tons ofgypsum and 0.20 tons of fly ash, a pozzolanic material that is a by-product ofthermal power plants. In the manufacture of PPC, a portion of the

clinker isreplaced with fly ash. This enables the cement manufacturer to produce a higherquantity of cement per ton of clinker. As a result, the cement manufacturer canincrease its production capacity by making a limited investment in grindingcapacity without a corresponding investment in earlier.stage productionequipment such as kilns.Further, the only cost incurred for fly ash istransportation cost from the thermal power plants that generate it to the cementmanufacturing site, as fly ash is currently available free of cost. The use of fly ashtherefore significantly reduces the overall cost of production of cement.The advantage of PPC is its low heat of hydration and corresponding resistanceto exposure to various environmental chemicals such as salt water. It isparticularly suitable for marine and hydraulic construction and other massconcrete structures. This cement has durability that is equivalent to OPC and canbe used most of the applications where OPC is used. As PPC is generally sold ata comparable price to OPC and the cost of production of PPC is comparativelylower, PPC’s margins per ton are generally higher compared to OPC.

17. White cementsWe manufacture white cement under the brand names J.K. White and Camel.White cement is produced using a different quality of limestone and isdistinguished from grey cement by its white colour. Each ton of white cementrequires approximately 1.33 tons of limestone, 0.02 tons of gypsum and 0.2 tonsof additives including white clay, feldsparand fluorspar.White cement is typically used in three principal areas of application, as set forthbelow:• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout,wall applications, such as decorative white cement paints and plain and sprayplasters; andWhite cement is typically used in three principal areas of application, as set forthbelow:• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout,wall applications, such as decorative white cement paints and plain and sprayplasters; andOther specialized applications including glass fibre reinforced concrete, gardenfurniture, lamp posts, as pointing for brick and stone works and as pre-castcladding panels.

18. We sell white cement primarily in the Indian market. We also export white cementto a number of countries, including South Africa, Nigeria, Singapore, Bahrain,Bangladesh, Sri Lanka, Kenya, Tanzania, United Arab Emirates and Nepal. Plants of jk cements limitedWe manufacture grey cement in two facilities located at Nimbahera and Mangrolin the state of Rajasthan in Northern India. White cement is produced at ourfacility at Gotan in the state of Rajasthan. Our plants have obtained manyaccolades and recognition, the most noteworthy being : ISO-9001:2000 QMSand ISO-14001:2004 EMS for the grey cement facility at Nimbahera andISO-9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-18001:2005Occupational Health and Safety for the white cement facility at Gotan. Theconstruction of our first most modern dry cement plant began in 1970 inNimbahera in Rajasthan.The following table shows a breakdown of production of the Nimbahera, Mangroland Gotan cement facilities for the periods indicated: PRODUCTION (IN METRIC TONS) Six months ended Fiscal 2003 Fiscal 2004 Fiscal 2005 September 30, 2005 2,323,283 2,272,760 2,414,196 1,256,942 Nimbahera

19. 570,464 718,572 912,419 493,211 Mangrol 200,149 215,538 224,481 99,343 Gotan Nimbahera Unit (Grey Cement)Commenced commercial production in 1975 with an initial capacity of 0.3MnTPA. In the year 1979, second production line was added to enhance theproduction capacity to 0.72 MnTPA. 1982 witnessed the incorporation of anotherproduction line taking the production capacity to 1.14 MnTPA. In 1988 a pre-calciner was installed and the production capacity touched 1.54 MnTPA.Constant modernization and up-gradation was instrumental in bringing the plantto its present capacity of 2.8 MnTPA.Capacity utilization of around 90%Can

produce up to 3.1 MnTPA with production of silicate cement on capacity of2.8 MnTPARecognition : ISO-9001:2000 QMS and ISO-14001:2004 EMS

20. Mangrol Unit (Grey Cement)Commenced commercial production in Dec’2001 with a capacity of0.75 MnTPA. Its close to Nimbahera plant (10kms away) – offers itsignificant synergy benefits like assistance from technical &commercial staff of Nimbahera Complex.Additional Grinding facility of 0.25 MnTPA .

21. The production processThe production process for cement consists of drying, grinding and mixinglimestone and additives like bauxite and iron ore into a powder known as “rawmeal”. The raw meal is then heated and burned in a pre-heater and kiln and thencooled in an air cooling system to form a semi-finished product, known as aclinker. Clinker (95%) is cooled by air and subsequently ground with gypsum(5%) to form Ordinary Portland Cement (“OPC”). Other forms of cement requireincreased blending with other raw materials. Blending of clinker with othermaterials helps impart key characteristics to cement, which eventuallygovern itsend use. The basic differences between these processes are the form in whichthe raw meal is fed into the kiln, and the amount of energy consumed in each ofthe processes. In the dry process, the raw meal is fed into the kiln in the form of adry powder resulting in energy saving, whereas in the wet process the raw mealis fed into the kiln in the form of slurry. There is also a semi-dry process, whichconsumes more energy than the dry process but lesser than the wet process.The basic steps involved in the production process is set out below: Dry processAll J.K. Cement plants are dry process plants. Limestone is crushed to a uniformand usable size, blended with certain additives (such as iron ore and bauxite)

22. and discharged on a vertical roller mill, where the raw materials are ground tofine powder. An electrostatic precipitator dedusts the raw mill gases and collectsthe raw meal for a series of further stages of blending. The homogenized rawmeal thus extracted is pumped to the top of a preheater by air lift pumps. In thepreheaters the material is heated to 750°C. Subsequently, the raw mealundergoes a process of calcination in a precalcinator (in which the carbonatespresent are reduced to oxides) and is then fed to the kiln. The remainingcalcination and clinkerization reactions are completed in the kiln where thetemperature is raised to between 1,450°C and 1,500°C. The clinker formed iscooled and conveyed to the clinker silo from where it is extracted and transportedto the cement mills for producing cement. For producing OPC, clinker andgypsum are used and for producing Portland [Pozzolana] Cement (“PPC”),clinker, gypsum and fly ash are used. In the production of Portland Blast FurnaceStag Cement (“PSC”), granulated blast furnace slag from steel plants is added toclinker. Awards given to the JK White cements limitedArchitect of the Year Award (AYA)Architecture was more or less identified with housing & more so with elitehousing. However, many countries have used architecture effectively for publicstructures also, such as highways, metro rails, factories, harbours & any otherpublic facilities. These projects/structures shall consume lot of building materials.

23. If these structures have to look pleasing, relevant architecture has to be appliedin their designs.The subject of challenges to architecture vis-a-vis town planning, infrastructuredevelopment & affordable housing is being discussed in various countriesthrough various forums. Mr.Yadupati Singhania, Managing Director,J.K. Cement Ltd., thought that we could contribute to this cause by encouragingoutstanding talent in the profession of architecture as a continuous process &thereby set an example for others in this profession to do better & better.This is how Architect of the Year Award (AYA) began way back in the year 1990(1st

Architect of the Year Award). Awards were subsequently extended toarchitects of neighbouring countries from the year 1996 (7th Architect of the YearAward). To encourage state level architecture, State Architecture awards werealso introduced from the award year AYA-98 (9th Architect of the Year Award) Quality policyTechnologies change, needs change, and in turn products change. What remainunchanged, are values and ideas that propel any entity forward. Ideas that areconcrete and unwavering, just like their outcome.At JK Cement we are crossing milestones, one after another, propelled by thefollowing concrete ideas :1. To provide products that fully comply with technical specifications committed to our customers, at the most competitive price.

24. 2. To ensure complete reliability in our dealings with customers, distributors,suppliers & other partners.3. To operate our manufacturing facilities in such a way, that they help sustainthe environment & provide new opportunities for the underprivileged in thatregion.4. To ensure that every department of our every office encourages new & betterideas and freedom of expressing the same, and cultivate a work environmentthat rewards excellence in every employee’s chosen area of work leading to aharmonious & fulfilling atmosphere.5. To motivate every team member to challenge his last best performance andout do it continually6. To remain abreast and imbibe the latest technological trends for the benefit ofour customers.

25. The rationale of the studyAs my project topic suggests, I have tried to find out the CUSTOMERSATISFACTION AND MARKET POTENTIAL OF JK WHITE CEMENTSThis topic was chosen mainly to find whether the customers who buy JKCEMENTS require some more modifications in the brand i.e.changes in price or improvement in the quality of the cement etc.the quality of the cement and for this purpose people from different strata werechosen like general customers, dealers, masons, bulk consumers etc… I have used questionnaire and other scientific tools like personnalinterviews and telephonic interviews to know about the customer mood and theI have also tried to find the market potential of jk cement in Delhi and NCR. Forthis I had conducted market research in different parts of Delhi like Sarita vihar ,Nehru plce, some parts of Ghaziabad, Gurgaon and faridabad.For this I met different dealers , retailers and masons as well as industrial bulksuppliers in different parts of the DELHI NCR

26. Scope of the studyThis study includes direct interaction with the customers and this helps us toknow the ‘Market potential and customer satisfaction level ‘to greataccuracy. This study is of great importance to the company which will knowabout the customer preference to buy a particular brand. The company will gain information about customer’s preference depending onthe 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 satisfactionbecause customer satisfaction and quality maintenance is company’sprimary objective…

27. Objective of the study:-Main objective:- The main objective of this study is to find out the MARKETPOTENTIAL AND CUSTOMER SATISFACTION LEVEL through scientific toolslike interviews and questionnaire .Specific objectives:- The specific objectives will be met by finding the customersatisfaction level through direct interaction with the customer and by knowingtheir preference. This will include all the processes like asking questions fromthe customers through questionnaire which will be included in the primary survey. once the primary survey is done , secondary survey will be done . The path ofthe secondary survey will be decided depending on the conclusions coming outof the primary survey.

28. Research methodologyData collection method—I have selected around 50 persons for the the interview.I have taken help of the questionnaire , personal andTelephonic interview. I have collected the data through focus interviews. I have concentratedon 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%

29. The survey was descriptive and sample chosen was mainly on the judgement ofthe researcher with the help and proper consultation of project guide.. In this kind of sampling method , the population elements are based on thejudgement of the researcher. The researcher exercises judgement or expertise ,chooses the elements to be included in the sample , because he or she believesthat they are represntative of the population of intrest or are otherwiseappropriate.In this survey , I visited the dealers of cement also to know the strategy of thecompanies , especially jk cements to satisfy the customer as they buy thecement of any particular company…. The main purpose of the descriptive research is description of the state ofaffairs as they exist at present.Swot analysis of JK white cementsStrengths : 1. Leading position in attractive Northern India grey cement market: Based on CMA data, Northern Indian cement manufactuers have consistentlyoperated at the highest levels of capacity utilization among India’s five regions.We believe this reflects the strong demand in Northern India for cement productsrelative to supply. Further, based on capacity expansions announced by cementmanufacturers, we expect cement plants in Northern India to continue to operateat high utilization levels and anticipate continued strong demand for our greycement products in the near and medium-term. We believe that we are well

30. positioned to take advantage of this demand, as the fourth largest grey cementmanufacturer in Northern India, and the largest grey cement manufacturer in thestate of Rajasthan. 2. Second largest white cement producer in India: White cement accounted for 16.6% of our total cement revenue and 35.2% of adjusted EBITDA from our cement operations in fiscal 2005, and 15.5% of revenues and 26.7% of our adjusted EBITDA from our cement operations in the six months ended September 31, 2005. Unlike grey cement, the white cement industry in India is highly concentrated with the two largest players accounting for the substantial majority of India’s production capacity. Consequently, prices of white cement have been relatively less volatile and sales of white cement have generated more stable cash flows for us even during industry downturns in grey cement. We also believe our position as the second largest producer of white cement in India, together with our nationwide delivery network, significantly enhances the overall brand image of JK Cement. 3. Proximity and access to large reserves of high quality limestone: We have access to large reserves of limestone for both our grey and white cement operations, which we believe are sufficient to sustain our operations well into the future. Based on independent geological surveys of different mines during 1996 to 2001, we believe that our limestone reserves are sufficient to support our current and planned capacity for approximately 40

31. years for both grey and white cement. (Put in risk - assuming we are able to renew our existing leases upon their expiry) As one of the first cement producers in Northern India, we were able to choose our limestone reserves in an area with high quality limestone resources. 4. Quality of products and strong brand name: We believe that brand name and reputation are important to retail purchasers of cement in India. We have built a strong reputation among cement purchasers by consistently providing high quality products. We believe that there is strong customer

awareness of our brands, JK Cement (“Sarvashaktiman”), for grey cement in our principal market in Northern India, and JK White (“Camel”), for white cement across India. Further, we believe that our brand name and our reputation for consistently supplying high quality products provide us with a competitive advantage in ensuring that cement dealers carry our products. 5. Extensive marketing and distribution network: We have a wide distribution network for grey cement in Northern India. Wealso have a strong all-India distribution network for white cement. Our distributionnetwork for grey cement products consists of 44 feeder depots serviced by sevenregional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan,Madhya Pradesh and Gujarat. Our white cement network comprises 20 feederdepots serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar Pradesh,West Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharasthra,

32. Gujarat, Madhya Pradesh and Rajasthan. In addition, we have more than 4,000retail stores that stock our grey and white cement products, as well as 22 salespromoters and four handling agents. We believe that the extent of this network,and our relationships with our dealers, enables us to maket and distribute ourcement widely and efficiently.6. Experience and technical know-how:We have 30 years of experience in the Indian cement industry, which we believeprovides us with the skills to maximize production efficiency, expand productioncapacity quickly and reduce costs. Over the years, we believe that we havedeveloped long-term customer relationships and a strong reputation for quality. Inaddition, we have a proven track record of upgrading and modernizing ourproduction capabilities efficiently, having increased our production capacity atNimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tonsas of September 30, 2005.Weaknesses : 1. It is at relatively low position in other parts of the country except north. 2. Low attention on customer relationship management in some parts of INDIA.

33. 3. No high revenue from the white cement market because there are only two players who have considerable market share and this has resulted in the stable cash flows. 4. Due to presence of other cement producers in Delhi and its adjoining areas the market share of the JK cement remains low. 5. It has its own mines reserves but it has to consistently renew the lease failing which it will have no source of production at its major production site. Opportunities : 1. Rural projects of state governments and central governments like dams and bridges can be a major opportunity for the company. 2. Company is a part of reputed and huge jk group. So it can expand its market in foreign areas also utilizing its brand leverage. 3. Prestigious Projects can be major opportunities. 4. It has major opportunities in real estate industry due to boom in the relatedprojects. 5. Indian infrastructure is seeing a two fold increase. So there is also a lot ofopportunity in the concerned sector 6. Major foreign projects of governments can also be a major opportunity.

34. Threats 1. Cost of production is high. So company needs to reduce the cost of production and should concentrate on promotional schemes too. 2. Presence of other big players in delhi region is a major threat for the company. 3. Rising cost of raw material is also a threat for the company Marketing strategy of jk cements limited 1.SEGMENTATION:- The company has segmented the market geographically . it sells its products all ovwer India with major presence in northern region PRICING STRATEGY1. . 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

35. MARKETING STARTEGYCompany conducts market surveys to identify market trends and customer’sresponse, company position in the market etc. There is R and D departmentwhich continuously trying to improve the quality of the product at theminimum cost and trying to meet the demand of the customer. MARKETRING STRATEGY FOR COMPETITORSCompany 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 consumerDepot1.whole seller2.retailer

36. Director General of sales and disposal1. Tender sales2. Government department on trading sales1 wagon load2. Institutional sales Method of developing dealers:-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. MARKETING STRATEGIES1. To increase sales in high realization2. To develop stockiest network consisting of retailer or final outlet which directly sells to customer.3. Increasing sales of branded cement ie jk white cements4. Marketing distribution network more efficient and cost effective. The company has a dedicated team of highly skilled professionals andExperienced application engineering. They are functioning in an advisorycapacity. Besides handling their constructional problem the cell offering all

37. kind of assistance in the selection of the right cement for different applicationto ensure cost effective , durable and safe construction.

38. DATA ANALYSISIn this section , we will analyze the data which was obtained through different means ofdata analysis like questionnaire, personal interviews. Since this survey was related tothe cement industry, so people related to it like masons, bulk consumer , retailer andabove all general consumer were interviewed. The whole data analysis section is done with help of different charts, barsand other techniques available. The interview was mostly done on selectedpersons of selected category. I have done survey mainly on the basis of followingstructure…..1. Masons—20%2. Arch/ Engineers—10%3. Retail stockists--- 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 toknow the customer’s attitude towards the satna cement works limited. The main purpose of this survey was to know the customer satisfactionlevel. This survey was done partially DELHI and somepartsd of NCR also. Someother parts of the country like the neighboring UP was also touched for thesurvey.

39. DATA ANALYSISThis page and onwards will contain step by step analysis of differentquestions…Q 1 How important is price for you while buying the cement? 1. MASONS Choices / options No of respondents 1. Extremely important 3 2. Rarely important 2 3. Not at all important 0 Importance of price respondents 4 3 no of 2 1 0 Extremely Rarely important Not at all important important choices /options

40. 2. Arch / engineers Options / choices No of respondents 1.Extremely important 2 2.Rarely important 1 3.Not at all important 0 2 1.5 1 0.5 0 Extremely Rarely Not at all important important importantQ .2 Do you consider colour of cement as an important factor for buying of thecement? 1. Masons Options /choices No respondents 1.Definitely important 2 2.Not so important 1 3.Sometimes important 1 4..Not sure 1 colour of cement 5 4 no of 3 responde 2 nts 1 0 Definitely sometimes important important choices

41. 2. Retail stockists. Options No of respondents 1.definitely important 1 2 .not so important 2 3.sometimes important 1 4. not sure 1 Definitely important Not so important sometimes important Not sure3. General consumer Options No of respondents 1.Definitely important 1 2.Not so important 4 3.sometimes important 1 4.not sure 1 Importance of colour 4 No of 2 respondents 0 Definitely Not sure important ParametrsAbove interpretation indicates that colour of the cement is not an importantfactor. 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 attentionto colour of the cement….Q .3 Is early setting time an important factor in buying of the cement?

42. Architects / engineers No of respondentsParameters1.Important 12.Not important 03.Extremely important 24.Not sure 0 2 1.5 1 0.5 0 Important extremely important3. Retail stockiest No. of respondentsParameters1.Important 12.Not important 03.Extremely important 34.Not sure 1

43. Important Not important extremely important Not sure4.General consumerParametrs No. of respondents1. Important 22. Not important 13.Extremely important 44. Not sure 0 4 3 2 1 0 Important Not extremely Not sure important importantThe above interpretation clearly indicates that early setting time is one of theimportant factor with all group of people giving more weightage to it.Q .4 Do you think that attractive packaging is an important factor while buying acement?1. Retail stockiest.Parametrs No of respondents1. Very much 22. Not so much 2

44. 3. Can’t say 1 2.5 2 1.5 1 0.5 0 very much not so much cant say2. Whole salersParametrs No. of respondents1. Very much 12. Not so much 13.Can’t say 1 1.5 1 Series1 0.5 0 very much not so much cant say3. General consumerParameters No of respondents1.Very much 22. Not so much 43.cant say 1

45. 5 4 3 2 1 0 very much not so much cant sayThe response to this question clearly indicates that people do not tend to buythose cement which have good and attractive packaging as after all qualitymatters.4. Rate the following on the scale of 1 to 5!! ParametersBrand Brand Delivery Price Packagingname image timeACC 4 3 3 4GUJ 3 3 3 3AMBUJASATNA 3 2 3 2CEMENTSLAFARGE 4 3 3 3Table given here is determining the customer’s preference of different brandsdepending on different parameters. It is evident from the table that ACC and LAFARGE excel on everyparameter i.e. brand image, delivery time, price and packaging etc…. Brand image and price are one of the important factors in the selection ofany Cement.Q5. Do you prefer the cement which is very fine (i.e. fineness of the cement)?1. Masons

46. Parametrs No of responses recieved1. Sometimes 12. Always 23. Never 14.Can’t decide 1 Fineness of the cement2.5 21.5 10.5 0 Sometimes Always Never Cant decide2. Retail stockiestOptions Response1. Sometimes 12. Always 33. Never 14.Cant decide 0 Sometimes Alw ays Never Cant decide

47. 3. General customerChoices / options Responses1. Sometimes 32. Always 33.Never 14.Cant decide 0 3.5 3 2.5 2 1.5 1 0.5 0 Sometimes Always Never Cant decideWe can interpret from the response received that fineness of the cement is one of theImportant factor that consumer takes into account while buying a cement.Q6. How many retailers of Ambuja Cement do you find in your city?1. MasonsNo. of retailers Response1 . 1-5 22. 5-7 33. 7-10 04. More than ten 0

48. no. of retailers 4 3 2 1 0 one-five five-seven seven -ten more than 102. WholesalersOptions NO. Of responses1. 1-5 12.5-7 23.7-10 04. more than 10 0 3 2 1 0 one-five five-seven seven -ten

more than 10The response received from the customers indicate that there are enoughcement retailers in their city.7. If you were a dealer Which type of schemes and incentives do you exceptfrom the company?Options No of responses1. Gift items given 12. Award for best retailing 23.Promoting certain incentive 0

49. schemes4.Educate about the 0company’s policy5. Foreign tours 2It is evident that the retailers want awards, tours and gifts on equal basis. 2.5 2 1.5 1 0.5 0 gifts items awards incentive education foreign tours schemes8. Do you find your desired cement easily in your city?1.MasonsOptions Responses1.sometimes 22.Always 23.Never 1

50. sometimes always never2. Industrial bulk consumeroptions No. of respondents1. Sometimes 12.Always 23.Never 0 2 1.5 1 0.5 0 sometimes alw ays never3. General customer choices responses 1. sometimes 2 2. never 1 3. always 4

51. 5 4 3 2 1 0 sometimes never alwaysQ 9. Which medium of information made you aware about satna cements?1.General customerOptions Level of responses1. Newspapers 22.Hoardings 33. TV ads 14. Meeting with dealers 1 3.5 3 2.5 2 1.5 1 0.5 0 newspaper hoardings tv ads meeting with dealers

52. 2. Industrial bulk consumeroptions No of respondents1.Newspaper 02.Hoardings 13.Tv ads 04.Dealers meet 2Analysis of this question reveals that hoardings are the best means of thecommunication as any illiterate person can also read the various signs whichcould be there on the hoardings….. and also there should be regular dealer newspapermeeting to know the customer aware of the cement… hoardings tv ads meeting with dealersQ9. Do you find compressive strength of the cement as a major factor whilebuying any cement?1. Masons.Options Response rateVery much 3Not much 2Cant decide 0 3.5 3 2.5 2 Series1 1.5 1 0.5 0 very not much cant much decide2. General customer

53. Options Response levelVery much 5Not much 1Can’t decide 1 6 5 4 3 2 1 0 very much not much cant decideAnalysis of this question reveals that customers don’t comprise on the matter ofquality…Q 10. Is the response time of the company to the complaints satisfactory?1. WholesalersParameters Response level1. Satisfactory 12.Good 13. Not so good 14. Not sure 02. General customerParameters Response level1. Satisfactory 32 Good 23. Not so good 14. Not sure 1 Hence , we analyze that response time of the company to the complaints is overall satisfactory….

54. Chapter –6Limitations This survey was conducted partially in DELHI , northern part of India and some parts of UP. So market potential of the JK cement in other parts of the country couldn’t be determined. Some customers were not able to understand some of the questions. The sample size was not enough and it failed to give the clear picture or the results of the survey.(Sample size =50 ) Some customers or dealers did not cooperated well. The questionnaire did not cover the whole aspect of the market potential of JK cements limited.

55. FindingsOn the basis of analysis of the questionnaire and data analysis, we find that:----1. Market potential of the Jk cement limited is very good in the northern partsdespite the presence of so many branded cement companies like ACC ,GUJRAT AMBUJA etc.2.Customer satisfaction with respect to the JK cement is satisfactory.

56. 3. Despite the increasing cost of the raw material the company is able to bringdown the cost of manufacturing through procurement of raw materials by themines which are located nearby .3.

Customers come to know about JK cements mainly from hoardings as manypeople are illiterate .4. Customers want more prizes and dealers want more incentives , gifts andtours.Dealers also want more meeting with officials of the cement companies.5. Bulk consumers want more and more cash discount. Suggestions1. The company should concentrate on more aggressive advertisement topromote their products.2. The company should launch more and more promotional schemes like “ twofor the price of one” or more discount coupons.3 Company should do more to promote their brand as customer prefer goodbrand while buying any cement.

57. 4. Customer prefer price as an important factor while buying any cement so thecompany should fix the price accordingly.5. Company should concentrate on direct meeting with the customer as they arethe 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 dealersand give them free of cost as incentives.8. The company should appoint more and more persons for the promotions of thebrand.9. The company should expand its market and concentrate in deep penetration innorthern part of India.10. Company should decrease delivery time of the cement. BIBLIOGRAPHY 1. www.jkcement.com 2. www.jk-white.com/ 3.Labour and Industrial chronicle-- Survey of major cement plants 4. Marketing research—Naresh kumar Malhotra , Pearson education 5. Marketing Management—Phillip Kotler