A STUDY ON COMPETITION ANALYSIS DONE FOR

ZUARI CEMENTS LTD

Yerraguntla, Kadapa (Dt)

PROJECT REPORT

Submitted in partial fulfillment of the

Requirement for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

(Sri Venkateshwara University)

BY

J. KIRAN KUMAR

( Reg.No. 380998018 )

Under the Esteemed Guidance of

Mr. GURUNATHAM NAIDU, MBA

Assistant Professor

Department of management studies

SRI VIDYANIKETHAN INSTITUTE OF MANAGEMENT

( Affliated to Sri Venkateswara University )

Sree sainath nagar, A.Rangampet

TIRUPATI-517102

2008-2010

ACKNOWLEDGEMENT

I express my sincere thanks to Mr. PAVAN KUMAR, HR MANAGER. For

his valuable suggestions and co-operation during the completion of project work.

I express my sincere thanks to Mr. K.R.VENKATESH, MARKETING

MANAGER for his valuable suggestions and co-operation during the completion of

project work.

I express my sincere thanks to Mr.CH.RAVI, MANAGER(P&A), for his

valuable suggestions and co-operation during the completion of project work.

I express my sincere thanks to Mr.R.RAJA SEKHAR REDDY, for his

valuable suggestions and co-operation during the completion of project work.

I express my sincere thanks to Dr.C.S.G.KRISHNAMACHARYULU

DIRECTOR, SVIM, TIRUPATI, &, SVIM for encouragement, guidance and

valuable suggestions.

(J.KIRAN KUMAR)

DECLARATION

I here by declare that the project report entitled “A STUDY ON

COMPETITION ANALYSIS DONE FOR ZURARI CEMENTS LTD” is actual

work done by me for the partial fulfillment for the award of Master Degree in Business

Administration Affiliated to SVU,TIRUPATI.

(J.KIRAN KUMAR)

CONTENTS

Chapter 1

Introduction

Industry profile

Company profile

Product profile

Chapter 2

Deals with topic under study

Need for the study

Objectives

Scope of the statement

Limitations

Chapter 3

Research methodology

Chapter 4

Data analysis & interpretation

Chapter 5

Findings

Suggestions

Conclusion

Appendix

Questionnaire

Bibliography

INTRODUCTION

Cement finds its use in various construction activities like building, dams,

bridges, Colonies, railway sleepers, aerodromes etc., Different grades of cement are

being use in different kinds of work depending on the strength and load - bearings

requirements. However in all colonial housing construction activities, it is the 43 and 53

grades of cement that are in prevalent use in the society, at large.

For various reasons, particularly population explosion and urge on the part of

major chunk of the population to build their own houses, however small may be, within

the budget constraints and also because of the housing loan schemes as offered by banks,

both nationalized and private and other co-operative societies and other cooperation etc.

The 43 & 53 grade cement market is fast expanding and managerial skills are supporting

its growth. But the branded cements are in developing stage.

Though there were only a few players in the cement market in sixties and

seventies, of late the competition, with so many players more or less the same quality of

cement, at least in the eyes of the individual and at more or less the same price.

What makes a particular brand click and what makes a particular brand a flop is

the subject of this project and the purpose of this survey meant elicit the perceptions of

individual and their preferences which have a substantial bearing on the sales turn over of

any brand cement.

The present study is descriptive in character all the information gathered from primary

sources and secondary sources. Because of time constrain, the entire population of

audience could not be covered and hence a stratified random sampling was restored to in

lien of census.

Though every care was taken to eliminate bias, both on the part of the interviewer

and the respondents, an element of the bias, to some extent might have crept in the

tendency on the part of humans to behave artificially particularly when observed can’t by

passed altogether. However, there was the enthusiasm on the part of the surveyor as a

business Study and a lot of encouragement was forth coming of the executive circles

spread across a spectrum of cement industries.

Based on the survey, an analysis, comprising graphical and statistical tools was

make and consequently the research has arrived at various findings and conclusions and

based on these, a list of recommendations were made to the ZUARI CEMENT in view of

the cut throat competition and the predicament of the dealers while selecting a brand of

cement.

INDUSTRY PROFILE

ABOUT THE INDUSTRY:

Cement, and steel, is one of the basic materials for the technical development of

the country. Consumption is universally recognized as an index of the economic

development of country.

Cement industry in India is nearly eight decades old, the first cement plant

having been commissioned in 1914 at Boradhpur(Gujarat).The cement industries growth

has been slow and even mainly on account of the statutory price and distribution control

for over forty years. Consequently, the targets of capacity and production fixed under

successive five-year plans did not fully materialize. This trend was reversed in 1977 and

climate of accelerated growth set in with the announcement of a formula for new

investment based on 12% post return, the policy of partial decontrol announced in 1982

gave further boost to the cement industry.

In the wake of new policy, ambitious and comprehensive modernization

expansion programs have been under taken by the industry which include conversion

measures; comprehensive adoption of latest technology, such as the use of vertical raw

materials precalcinators and installations of pollution control devices, setting up of

captive power units, modernization of quarry operations etc.

India is the third largest producer of cement in the world after China and Japan.

Though the Indian cement industry has come a longer way in terms of production yet the

percapita consumption is 87 kgs in India is abysmally low when comparing to the world

average of 200 kgs.

The cement industry has passed through various stages. Tight price and

distribution control in the 70’s with resultant sluggish growth, partial decontrol and

massive investment in the late 80’s and severe market recession and abrupt slow down of

pace of growth is the early 90’s and in the last two years. With firming up cement prices,

the industry witnessed a recovery in 1994, which turned up a boom in 1994-1995.

As such all the cement players have shown lower bottom lines and some even

have shown huge losses as the capacity addition outpacing the growth in demand. The

implication is that prices are likely to remain under pressure mainly northern and central

part of the country where the capacities are very high.

The Indian cement industry now in the midst of consolidation phase, has seen its

fortunes flagging in the 4 last 18-24 months, A full in construction activity and dismal

infrastructure development have led to poor off take and as result low capacity utilization

and falling prices have dogged the industry. However, recent developments. Suggest

signs of modest revival. The last five years of 2002-2008 have shown a definite change

for the better.

PERFORMANCE OF CEMENT INDUSTRY:

(Including mini and white cements, in million tones)

Price and distribution controls:

During Second World War, cement was declared essential under the defense of

India rules and brought under price and distribution controls which resulted in sluggish

growth. The installed capacity reached only to 27.9 MT by the year 1980-81 partial

decontrolling in February 1982, was announced under this scheme levy cement quota was

fixed for the units and the balanced could be sold in the opened market. This resulted in

extensively modernization and expression drive, which can be seen from the increase in

the installed capacity to 59 MT in 1988-89. In comparison with the figure of mere

27.9MT in 1980-81, an increase of almost 111percent.

At present there are 60 companies in large sector having 1230 plants constituting a

total installed capacity of 100.30 MT industry total turnover is around Rs.20,000 cores

the total production was about 96.73 MT during the 2005-06 which is around 14.61%

more than 2004-05. in 2006-07 the industry grew by 11 present in the current it is

expected to grow by 13 percent over the year between 1982-83 to 2006-07 the cement

consumption recorded a growth of 12-13 percent compounded annually against the

GDP growth. The demand as improved and there is pick in the rural market.

During the current year the production have increased to 37.64 MT in the first 6

months-registering 5.02 percent growth over the corresponding period in the year.

Export:

Cement, a high volume product is extremely thinly traded commodity recently India

did not export any cement at all. Therefore though the country is the third largest

producer of cement in the world yet its presence in the global market is negligible. Our

exports have reached 8 MT only in 2006-07.

Future:

The consumption of cement is determined by factors influencing the level of housing

and industrial construction irrigation projects, roads and lying of water supply and

drainage pipe etc. These factors in turn are determined by the level and the growth of

GDP and its sectional composition, capital formation, Development expenditure, growth

in population level of urbanization, cost of obtaining credit and other factors. But the

domestic market for cement is mainly from the housing and building activities. While the

consumption for infra structure development has been low. Exactly reverse is the

scenario of the developed nations where bulk of the cement is consumed for constructing

roads, bridges, dams etc.

Considering a huge capacity addition particularly in the northern region out; acing

the demand growth has created a surplus situation in the respective area, such capacity

utilization is likely to comedown and price realization also might continue to be under

pressure there by squeezing in the margins.

But the southern region is likely to enjoy the present status for some more time. At the

same time the inter region price differences is also likely to vanish more(or) less with

number of Gujarat based plants making in road to the southern marked by using sea route

transport. To sum up, the industry is heading towards a situation of competitions and

price wars. As such only cost efficient and strong brand image companies are expected to

perform well. There will be more mergers and acquisitions taking part as seen in the last

one year. Another major development in the industry will be the emergence of the new

concepts ready-mix concrete (RMC). RMC will be an eco-friendly and high quality

product with a lot of time saving. Another major development be large players will be to

set up bulk terminals to minimize the distribution chain.

COMPANY PROFILE

Zuari cement and Italcementi, the new binding strength

Zuari cement is now fully owned by the Italcementi group, the fifth largest

cement producer in the world and the biggest in the Mediterranean region. With net sales

of five billion Euros in 2005 and a capacity of 70 million tones, Italcementi has a strong

presence in over 19 countries. Now in India, with its inherent strengths, Italcementi is all

Italcementi set to give the building industry, cement that’s truly international.

Italcementi believes in customer satisfaction through continuous quality

improvement. This belief reflects in the group’s Quality Management system that

compiles with ISO9001:2000 standards. This system covers all the processes, across all

the group companies, to ensure that the product delivered to costumers is nothing short of

world class.

The export market is Zuari’s another key focus area. In fact, in the year 2005-

2006, the company’s innovative marketing strategies have earned it’s the reputation of

being the leading exporter of cement in South India. Recognizing Zuari’s noteworthy

efforts in the exports front is the fact that, Sri Vishnu Cement Limited has won the

prestigious CAPEXIL certificate of merit for the year 2005-06.

While technology is just one of its strengths, there are many other factors that

contribute equally to Zuari’s success. These include superior work force and de-

centralized quality assurance teams, which ensure every bag of cement that leaves the

plant matches customers’ expectations.

The Zuari Agro Limited (ZACL) was conceptualized on 12th May, 1967 with

main object of manufacturing, distributing and marketing of fertilizer and other

agriculture inputs. Zuari cements is a division of Zuari Industries Limited, a company

prompted by the house of Birla and multination giant USX, having its registered office at

jai Kissan office at jai kissan bhawan, Zuari Nagar, Goa.

Zuari cement is running under the flagship of Zuari Agro chemicals Limited.

Zuari cement is strategically located 6Kms away from Yerraguntla town of Kamalapuram

Taluk in Kadapa, Andhra Pradesh. Railway line has been laid connecting the Yerraguntla

station.

Zuari cement formerly known as Texmaco Cement, taken over by Zuari Agro

Chemicals limited in year 1994. The plant was modernized and upgraded to increase the

production capacity of 1500 TPD to 5000 TPD. In 1994 Zuari Agro Chemicals Limited

took over Texmaco Cement on a lease basis and later in 1995 February 7 th it acquired it

for amount of Rs.137.78 crores. Texmaco Limited commenced its production in 1985

with an installed capacity of 150 TPD. By the introduction of best technology, the

capacity enhanced to 5500 TPD. By the Acquisition of Vishnu cements the annuals

capacity of the plant has gone up to 3.5 million tones.

Zuari Groups have identified cement as one of the core business to grow. It has

therefore, been decided to constitute a separate corporate entity and hire off cement

business to it. To accelerate the growth and achieve capacity addition quickly, it decided

to from a joint Venture with Ital cement group was identified to be suitable partner for

pursuing growth.

Zuari and Italcementi group have agreed to form a 50:50 joint venture.

Italcementi group is the largest producer and distributor of cement in Europe and one of

the leaders in World Market place. The group operates in 13 countries including

Belgium, Canada, France, Greece, Italy, Moracco, Spain, Turkey and U.S. with recent

acquisitions, in Bulgaria, Kazakhastan and Thailand.

SOURCE OF RAWMATERIAL:

The core raw materials required for manufacture of Zuari Cement plant are

Limestone, Iron core bauxite and gypsum. The Lime stone is being excavated from the

plant which in the leased area another vital called coal is supplied by Singareni Collieries

Co Limited and Western Coal fields by surface transport to the plant.

The required water for the process is being met from bore well located in the

plant. The required water for the process is being met from bore well located in the plant

site. Zuari Cement manufactures both 43 and 53 Grade and Super fine and offers superior

quality products monitoring at each stage of production process with help of

computerized control system.

KEY FEATURES OF ZUARI CEMENTS PROCESS TECHNOLOGY:

Complete homogenization of limestone is achieved by stacking the limestone

in stockpiles with the used of stackers and reclaiming it through reclaimers.

The optimum ratio of raw mix is attained by the use of X-Ray Analyzer and

Automatic Weigh Feeders, which are liked to the centralized Computer Control

Room.

Sorting it in Continuous Fluidized Silo attains reduced variability in kiln feed

and complete homogenization of raw meal. This ensures that every grain of

cement is of consistent quality.

The totally computerized monitoring systems enable quality clinkerisation. It

dictates the optimum retention time in the precalciner and the kiln Equipped

with a six-stage double stream preheated cyclone system, the precalciner only

adds to the quality.

The modern closed circuit grinding units have a high efficiency separator that

produces finer particles of cement hydrates, this yields cement matrix with a

lower pore diameter. This in turn gives concrete of high density and low

permeability.

ADVANTAGE OF ZUARI CEMENT:

With a superior and wide range of cement catering to every conceivable building

need, ZUARI CEMENT is today a formidable player in the cement market. Here are just

a few reasons why Zuari Cement is the choice of millions of India.

Very low free lime content and high proportion of silicates, providing silicate

gels of high impermeability, makes ZUARI CEMENT extremely resistant to

acids, alkalis, chlorine and sulphur. Lowest magnesia content ensures reduced

tensile cracks.

Owing to greater fineness ZUARI CEMENT, concrete obtained is dense and

highly impermeable. Hence, it is free from segregation, honeycombing and sand

rum. This prevents the passage of air and water (the two chief agents of

corrosion) through the hardened concrete.

The later requirements for zuari cement are less because of very low lime

content. This leads to low heat of hydration and drying shrinkage, as a result, cracks don’t

appear in the concrete. Captive power plant with diesel gensets takes care of 80% of the

total power requirement state-of-the-art wagon tippler efficiently handles good quality

coal, which is the homozinized with stacker and reclaimed for generating power. The

plant it is also equipped with vertical coal mill.

Product profile

Product profile

Zuari Cement manufactures and distributes its own main product lines of cement .We aim to optimize

production across all of our markets, providing a complete solution for customer's needs at the lowest

possible cost, an approach we call strategic integration of activities.

Cement is made from a mixture of 80 percent limestone and 20 percent clay. These are crushed and

ground to provide the "raw meal”, a pale, flour-like powder. Heated to around 1450° C (2642° F) in

rotating kilns, the “meal” undergoes complex chemical changes and is transformed into clinker. Fine-

grinding the clinker together with a small quantity of gypsum produces cement. Adding other

constituents at this stage produces cements for specialized uses.

Zuari Cements range of cement

Zuari Superfine Cement Zuari 43 Grade Cement Zuari Superfine P53 Cement

PPC Superfine

Quality Parameters Of Zuari Superfine Cement

Test

Physical Properties

Zuari

Superfine

BISI 489 -

(Part-1):1991

FINENESS

Setting Surface M2/Kg 350.0 300.0

SOUNDNESS

Lechatlier Method (mm)

Auto clave (%)

1.0

0.02

Not more than 10

Not more than 0.8

SETTING TIME

Initial minutes

Final minutes

120-140

200-220

Not less than 30

Not more than 600

COMMPRESSIVE STRENGTH MPa

3days

7days

28days

38.0

47.0

60.0

Not less than 16.0

Not less than 22.0

Not less than 33.0

CHEMICAL REQUIREMENTS

Loss of ignition

Insoluble residue

Magnesium Oxide

Lime saturation factor

Sulphuric Anhydride

Alkalis

Chlorides

Declared % of fly ash used

1

12

1.3

1.3

-

0.01 (X) 15%

Not more than 5%

X + 4.0(100-X)/100

X= Declared % of

Fly ash % will not

vary more than +- 3.0%

Not more than 6%

Not more than 3%

Not more than 0.05

Products - OPC 43 Grade

Quality Parameters Of Zuari 43 Grade Cement

Test

Physical Properties

Zuari

53 Grade

BIS

8112-1989

FINENESS

Setting Surface M2/Kg 300.0 225.0

SOUNDNESS

Lechatlier Method (mm)

Auto clave (%)

0.5-1.0

0.05-0.06

Not more than 10

Not more than 0.8

SETTING TIME

Initial minutes

Final minutes

85-110

150-180

Not less than 30

Not more than 600

COMMPRESSIVE STRENGTH Map

3days

7days

28days

35.0

45.0

58.0

Not less than 23.0

Not less than 33.0

Not less than 43.0

CHEMICAL REQUIREMENTS

Loss of ignition

Insoluble residue

Magnesium Oxide

Lime saturation factor

Sulphuric Anhydride

Alkalies

Chlorides

Declared % of fly ash used

0.8-1.0

0.6-0.8

1.0-1.5

0.85-0.90

1.0-1.2

0.12

Not more than 5%

Not more than 2%

Not more than 6%

0.66-1.02

3.00

Not more than 0.8

Products - OPC 53 Grade

Quality Parameters Of Zuari 53 Grade Cement

Test

Physical Properties

Zuari

43 Grade

BIS

12269-1987

OPC-53

FINENESS

Setting Surface M2/Kg 330.0 225.0

SOUNDNESS

Lechatlier Method(mm)

Auto clave(%)

0.5-1.0

0.05-0.06

Not more than 10

Not more than 0.8

SETTING TIME

Initial minutes

Final minutes

85-110

150-180

Not less than 30

Not more than 600

COMMPRESSIVE STRENGTH MPa

3days

7days

28days

39.0

52.0

63.0

Not less than 27.0

Not less than 37.0

Not less than 53.0

CHEMICAL REQUIREMENTS

Loss of ignition

Insoluble residue

Magnesium Oxide

Lime saturation factor

Sulphuric Anhydride

Alkalies

Chlorides

Declared % of fly ash used

0.8-1.0

0.6-0.8

0.5-1.0

0.90-0.93

1.0-1.2

0.16

Not more than 4%

Not more than 2%

Not more than 6%

0.80-1.02

3.00

Not more than 0.8

NEED FOR THE STUDY

In the current scenario, there is heavy competition in the cement industry. Zuari

cement is one of the major companies in the cement industry facing cut-throat

competition. “Unless we tell them, we can’t sell them”, which means that people will not

buy products until they become aware.

“A STUDY ON COMPETITION ANALYSIS DONE FOR ZUARI

CEMENTS” will help in studying the awareness of zuari cement in the market when

comparing to other brands, which enables to analyze sales of the company in the view of

competition. A careful and thorough study of the different factors enables the company to

withstand to the changing situations of the environment and suggests suitable strategies to

the company.

OBJECTIVES

To find the main competitors of zuari cement.

To find the retailers Brand awareness on zuari cement when compare to other

brands.

To find the effect of advertisement by zuari cement on retailers.

To compare the Brand awareness of zuari cement with other brands.

To find the customers awareness on zuari cement with other brands.

To find out most selling brand in the market.

SCOPE OF THE STUDY

The project work “A STUDY ON COMPETITION ANALYSIS DONE FOR

ZUARI CEMENTS” with reference to zuari cements ltd in kadapa district, to find how

the competition is going on cement industry in kadapa district.

It is also intended to know the effect of advertisement on building awareness on

zuari cements.

This study also considers the comparisons of awareness of other cement brands

with zuari cement.

This study also considers finding the major competitors for the zuari cement in

kadapa district.

LIMITATIONS

The study is conducted from retailers’ point of view.

The study is confined to kadapa district region only.

The biasing in the respondents view can be ignored.

The accuracy of the answers depends upon the mode and interests of

respondents.

The study is limited to 8 weeks.

RESEARCH METHODOLOGY

RESEARCH DESIGN:

A research design is considered as the frame work or plan for a study. That guides

as well as helps in collection and analysis of data. A sound research is the basis of

success of any formal market research. The present study is descriptive type.

Nature of data:

The data collected for this study were mainly primary in nature. There are first

hand information which is retailers opinions, expectations and awareness to wards the

help line. Besides the secondary data were also collected from company brochures,

journals and websites.

Source of data:

Primary data collected from the target retailers in Kadapa district.

Secondary data were collected from company brochures, records and websites.

Methods of data collection:

The method adapted to elicit information from retailers in through a structured

questionnaire that contains closed, open ended questions. The reasons for choosing the

questionnaire method are primary due to qualitative nature of the study.

(1) primary data:

The primary data are that information which is collected afresh and

for the first time, and thus happen to be original in character. Primary data can be

collected in marketing research by three basic methods. Viz., survey, observations

and experiments.

SURVEY METHOD:

Survey is the most commonly used method of primary data collection in

marketing research. This method is highly flexible. Survey research is the systematic

gathering of data from respondents’ through questionnaires. A questionnaire will

contain a list of questions to be answered in the survey.

(2) Secondary data:

The secondary data are those which have already been collected by some

other agency and which have already been processed. In this study researcher used the

secondary method for collecting details from the company records, magazines and other

marketing journals.

Survey:

Wide range of information about retailers opinions, exceptions and awareness

were gathered through survey from kadapa district with structured questionnaire.

SAMMPLE DESIGN:

Sample unit:

The sample units were the retailer of Cement Company.

Sample size:

The sample size is 100, in kadapa district.

Sample method:

A simple random sampling was adapted in Kadapa district.

STATISTICAL TOOLS USED:

For the purpose of analysis, Chi-square test, weight average method and

percentage method are used for calculations and the results were interpreted. This test

was used to minimize the error of the data collected. Graphs were used to represent the

data for the better and accurate interpretation of the results.

Simple tools are used for analysis purpose. They are as follows:

1. percentages analysis

2. weighted Average method

PERCENTAGES ANALYSIS

Percentages refer to a special kind of ratio in making comparison between two or

more data and to describe relationships between the data. Percentage can also be used to

compare the relative terms, the distribution of two or more series of data.

Percentage = No. of Respondents X 100

Total Respondents

WEIGHTED AVERAGE ANALYSIS

There are cases where the relative importance of the different items is not

the same. When, this is so, the researcher can use the weighted arithmetic mean. The

‘weight’ stands for the relative importance of the different items. The formula for

computing weighted arithmetic mean is:

Xw =WX / W

Where -- Xw represents the weighted arithmetic mean

--X represents the variable values, i.e.,X1,X2,……Xn.

--W represents the weights attached to variable values, i.e.

W1, W2………Wn, respectively.

An important problem that arises while using weighted mean is regarding

selection of weights. Weights may be either actual or arbitrary. i.e., estimated. Needless

to say, if actual weights are available, nothing likes this. However, in the absence of

weights, arbitrary or imaginary weights may be used. The use of arbitrary weights may be

lead to some error, but it is better that no weights at all. In practice, it is found that if

weights are logically assigned keeping the phenomenon in view, the error involved will

be so small that it can be easily over looked.

DATA ANLYSIS & INTERPRETATION

TABLE-1

TYPE OF BUSINESS RUNNING BY RESPONDENTS

Options Number of respondents Percentage

Retailing 52 52

Wholesaling 48 48

Total 100 100

FIGURE-1

Retailing Wholesaleing46

47

48

49

50

51

52

53

Options

no

of

resp

on

den

ts

INFERENCE:

From the above table it can be inferred that 54% of respondents are

dealing through retailing and 48% are dealing through wholesaling.

TABLE-2

EXPERIENCE OF THE RESPONDENTS

IN THE FIELD OF DEALERSHIP

years Number of respondents Percentage

Less than 1 year 11 11

1 – 5 years 42 51

5 –10 years 31 22

More than 10 years 16 16

FIGURE-2

Less than 1 year

1 – 5 years 5 –10 years

More than 10 years

0

10

20

30

40

50

No of years

Pe

rce

nta

ge

INFERENCE:

From the above table it can be inferred that 11% of respondents

are having below 1 year of experience, 42% of respondents are having 1-5

Years of experience, 31% are having 5-10 years of experience and 16% are

having more than 10 years of experience.

TABLE-3

TYPE OF SHOP WHERE PRODUCT IS SELLING

Type of shop No of respondents Percentage

Exclusive cement shop 72 72

Cement /hardware 24 24

All building materials 4 4

Figure-3

Exclusive cement shop

Cement /hardware

All building mate-rials

0

10

20

30

40

50

60

70

80

Type of shop

No

of

res

po

nd

en

ts

INFERENCE:

From the above table it is clear that 72% of respondents are dealing the

product through exclusive cement shops, 24% are dealing through cement /hardware

shops and 4% through all building material shops.

TABLE-4

PRESENTLY DEALING BRANDS

Brands No of respondents Percentage

Ultratech 24 16.66

Zuari 48 33.33

Penna 35 24.3

Coromandel 18 12.5

ACC 5 3.47

Others 14 9.72

Figure-4

Ultrat

ech

Zuari

Penna

Corom

ande

lACC

Other

s0

5

10

15

20

25

30

35

Brands

Pe

rce

nta

ge

INFERENCE:

From the above facts, it can be inferred that 33.3% of the respondents are

dealing zuari followed by 24.3% dealing penna, 16.66% dealing ultratech, 12.5% dealing

coromandel, 3.47% dealing ACC, 9.72% dealing other brands.

TABLE-5

DEALERS WHO HAVE DEALT WITH ZUARI CEMENT

Response No of respondents Percentage

YES 42 42

NO 58 58

FIGURE-5

YES42%

NO58%

YES

NO

INFERENCE:

From the above facts, it can be inferred that 58% of the dealers have not

yet dealt with zuari cement and 42% have dealt with zuari cement at least once.

TABLE-6

FACTORS INFLUENCING TO BE A DEALER (for all brands)

Factors No of respondents Percentage

Sales volume 8 8

Quality 64 64

Customer choice 10 10

Good service 3 3

price 15 15

FIGURE-6

Sales volume Quality Customer choice

Good service price0

20

40

60

80

factors

No

of

res

po

nd

en

ts

INFERENCE:

From the table , it can inferred that 64% of respondents preferred the

product due to quality, 15% of respondents preferred due to price, 10% due to customer

choice, 8% due to sales volume,3% due to good service.

TABLE – 7

FACTORS INFLUENCING TO BE A DEALER (for zuari)

Factors No of respondents Percentage

Sales volume 5 10.4

Product quality 34 70.8

Customer choice 6 12.5

Good service 3 6.8

price 0 0

FIGURE-7

Sales volume

Product quality

Customer choice

Good service

price0

20

40

60

80

factors

pe

rce

nta

ge

INFERENCE:

From the above table it is clear that 70.8% of respondents preferred zuari

cement due to quality, 12.5% due to customer service, 10.4% due to sales volume, 6.8%

due to good service and none for price.

TABLE – 8

MAJOR CUSTOMERS FROM THE DEALERS

Options No of respondents Percentage

Household customers 72 72

Builders/contractors 28 28

FIGURE – 8

72%

28%Household customers

Builders/contractors

INFERENCE:

From the above facts, it is clear that 72% of customers are household

customers and remaining are builders / contractors.

TABLE – 9

MOST PREFERED GRADE BY CONSUMERS

Options No of respondents Percentage

Opc 53 grade 65 65

Opc 43 grade 0 0

Ppc super fine 15 15

Others 20 20

FIGURE – 9

Opc 53 grade

Opc 43 grade

Ppc super fine

Others0

10203040506070

No of respondents

Grades

No

of

resp

on

den

ts

INFERENCE:

From the above table, it can be inferred that 65% of respondents revealed

that customers prefer opc 53 grade and 15% revealed that customers prefer for ppc

superfine and 20% revealed that customers prefer for others.

TABLE – 10

TABLE SHOWING PRICING OF ZUARI CEMENT

Level No of respondents Percentage

High 64 64

Moderate 8 8

Low 0 0

Not known 28 28

FIGURE – 10

High Moderate Low Not known

0%

10%

20%

30%

40%

50%

60%

70%

64%

8%0%

28%

INFERENCE:

From the above table, it can be inferred that 64% of the respondents

opines that pricing of zuari cement is high, 8% opines that it is moderate, none are opines

that it is low, 28% are not aware of pricing of zuari cement.

TABLE –11

TABLE SHOWING PACKING OF ZUARI CEMENT

Level No of respondents Percentage

Excellent 12 12

Very good 14 14

Good 25 25

Fair 14 14

Poor 7 7

Not known 28 28

FIGURE – 11

Excel

lent

V.goo

dGoo

dFai

rPoo

r

Not kn

own

0%

5%

10%

15%

20%

25%

30%

Pe

ce

nta

ge

INFERENCE:

From the above table, it can be inferred that, 12% of respondents opines

that packing of zuari cement is excellent, 14% said it is very good, 25% said it is good,

14% said it is fair, 7% said it is poor and 28% are not aware of packing zuari cement.

TABLE – 12(a)

EFFECT OF THE INCREASING ADVERTISEMENT ON IMPROVING SALES

Response No of respondents Percentage

Yes 74 74

No 26 26

FIGURE –12(a)

Yes74%

No26%

INFERENCE:

From the above table, it is clear that 74% of respondents are think that

advertisements play a major role in improving sales and 26% are think that it is not plays

a major role.

TABLE –12(b)

THEN WHAT MEDIA PREFERENCE FOR CEMENT PRODUCTS

Media No of respondents percentage

Print Media 6 6

Electronic Media 29 29

Outdoor Media 65 65

FIGURE – 12(b)

Print 6%

Electronic 29%

Outdoor 65%

INFERENCE:

From the above facts, it can be inferred that 65% of dealers said that

outdoor media is good, 29% said that electronic media is good, 6% said that print media

is good for cement advertisements.

TABLE-13

WHAT DOES THE CUSTOMERS LOOKS FOR

IN ANY BRAND FOR CONSUMPTION

Particulars No of respondents Percentage

High quality 18 18

Low price 29 29

Brand image 10 10

All the above 43 43

FIGURE-13

18%

29%

10%

43%

High quality

Low price

Brand image

All the above

INFERENCE:

From the above table it can be inferred that, for consumption the product,

18% of customers looks for in the brand for high quality, 29% looks for low price, 10%

for brand image,43% prefer for all the above.

TABLE-14

AWARENESS OF SALES PROMOTIONAL TECHNIQUES

FOLLOWED BY THE COMPANY

Awareness No of respondents Percentage

Yes 34 34

No 66 66

FIGURE-14

Yes34%

No66%

Awareness

INFERENCE:

From the table it can be inferred that, 34% of the respondents are aware of

sales promotion techniques followed by the company and 64% of the respondents are not

aware.

TABLE-15

BEST BRAND PREFERRED BY THE DEALERS

Brands No of respondents Percentage

Ultratech 20 20

Zuari 33 33

Penna 24 24

Coromandel 12 12

ACC 4 4

Others 7 7

FIGURE-15

ACC

Corom

ande

l

Other

s

Penna

Ultrat

ech

Zuari

05

101520253035

4

127

2420

33

BRAND

PE

RC

EN

TA

GE

INFERENCE:

From the table it can be inferred that, 33% of respondents prefer zuari as a

best brand followed by, penna with 24%, ultratech with 21%, coromandel with 12%,

ACC with 4%, others with 7% .

TABLE-16

BEST BRAND PREFERED BY THE CUSTOMERS

Brands No of respondents percentage

Ultratech 15 15

Zuari 35 35

Penna 27 27

Coromandel 10 10

ACC 4 4

Others 9 9

FIGURE-16

Ultrat

ech

Zuari

Penna

Corom

ande

lACC

Other

s0

10

20

30

40

15

3527

104

9

Brands

pe

rce

nta

ge

s

INFERENCE:

From the above facts, it can be inferred that 15% of respondents said that

customers prefer for ultratech, 35% of respondents said that zuari, 27% said that penna,

10% said that coromandel, 4% said that ACC, 9% said that others.

WEIGHTED AVERAGE METHOD-1

TABLE-17

RANKING OF FACTORS THAT INFLUENCE THE DEALERS

TO PURCHASE ZUARI CEMENT

Factors R1(X1)

W=6

R2(X2)

W=5

R3(X3)

W=4

R4(X4)

W=3

R5(X5)

W=2

R6(X6)

W=1

Quality

56 30 10 2 1 1

Sales

Volume 36 25 20 10 7 2

Customer

Choice 6 8 9 20 28 29

Price

2 8 10 12 38 30

Packing

1 2 4 10 35 48

Food

service 8 21 9 21 20 21

Formula Weight = Wx / W

Quality = (56 x 6) + (30 x 5) + (10 x 4) + (2 x 3) + (1 x 2) + (1 x

1)

= 535 / 21

= 25.47

Sales Volume = (36 x 6) + (25 x 5) + (20 x 4) + (10 x 3) + (7 x 2) + (2x 1)

= 467 / 21

= 22.23

Customer

choice = (6 x 6) + (8 x 5) + (9 x 4) + (20 x 3) + (28 x 2) + (29 x 1)

= 257/21

=12.23

price = (2 x 6) + (8 x 5) + (10 x 4) + (12 x 3) + (38 x 2) + (30 x 1)

= 234/21

= 11.14

packaging = (1 x 6) + (2 x 5) + (4 x 4) + (10 x 3) + (35 x 2) + (48 x 1)

= 180/21

= 8.57

good service = (8 x 6) + (21 x 5) + (9 x 4) + (21 x 3) + (20 x 2) + (21 x 1)

= 313/21

= 14.90

Factors Weights Percentage Overall Ranking

Quality 25.47 27 1

Sales volume 22.23 23.5 2

Customer service 12.23 12.9 4

Price 11.14 11.78 5

Packaging 8.57 9.06 6

Good service 14.90 15.76 3

WEIGHTED AVERAGE METHOD-2

TABLE-18

RANKS OF THE MOST SELLING BRAND

Brands R1(X1)

W=9

R2(X2)

W=8

R3(X3)

W=7

R4(X4)

W=6

R5(X5)

W=5

R6(X6)

W=4

R7(X7)

W=3

R8(X8)

W=2

R9(X9)

W=1

Zuari

44 27 15 8 3 1 1 1 --

Ultratech

18 15 11 10 5 4 9 15 13

Penna

25 20 16 10 6 6 5 5 7

Coromandel

9 8 4 7 6 7 16 24 19

ACC

4 5 -- 5 4 5 19 36 25

Nagarjuna

-- -- 1 1 1 -- 1 37 59

Priya

2 -- 2 -- 8 4 5 30 39

Panyam

1 -- -- 1 2 2 9 40 45

DC

diamonds 1 -- -- 1 -- 2 2 44 50

Formula weights = Wx / W

Zuari = (44x9)+(27x8)+(15x7)+(8x6)+(3x5)+(1x4)+(1x3)+(1x2)+(0x1)

= 789 / 45

= 17.53

ultratech = (18x9)+(15x8)+(11x7)+(10x6)+(5x5)+(4x4)+(9x3)+(15x2)+(13x1)

= 530 / 45

=11.77

Penna = (25x9)+(20x8)+(16x7)+(10x6)+(6x5)+(6x4)+(5x3)+(5x2)+(7x1)

= 623 / 45

=13.8

coramandel = (9x9)+(8x8)+(4x7)+(7x6)+(6x5)+(7x4)+(16x3)+(24x2)+(19x1)

= 388 / 45

= 8.62

ACC = (4x9)+(5x8)+(0x7)+(5x6)+(4x5)+(5x4)+(19x3)+(36x2)+(25x1)

= 300 / 45

= 6.66

Nagarjuna = (0x9)+(0x8)+(1x7)+(1x6)+(1x5)+(0x4)+(1x3)+(37x2)+(59x1)

= 154 / 45

= 3.42

priya = (2x9)+(0x8)+(2x7)+(0x6)+(8x5)+(4x4)+(5x3)+(30x2)+(39x1)

= 202 / 45

= 4.48

panyam = (1x9)+(0x8)+(0x7)+(1x6)+(2x5)+(2x4)+(9x3)+(40x2)+(45x1)

= 185 / 45

= 4.11

Dc.diamonds = (1x9)+(0x8)+(0x7)+(1x6)+(0x5)+(2x4)+(2x3)+(44x2)+(50x1)

= 167 / 45

= 3.71

Brands Weight Percentage Overall Ranking

Zuari 17.53 23.56 1

Ultratech 11.77 15.8 3

Penna 13.8 18.5 2

Coromandel 8.62 11.58 4

ACC 6.66 8.9 5

Nagarjuna 3.42 4.5 9

Priya 4.48 6.02 6

Panyam 3.71 4.98 8

DC

diamonds 4.11 5.52 7

Findings

FINDINGS

Based on the information collected, it is clear that 52% are dealings through

retailing and 48% dealing through wholesaling.

16% of respondents have more than 10 years experience in their field and they

were in a better position to rate the attributes and satisfaction level regarding

varies brands of cements, 42% have 1-5 years of experience, 31% have 5-10 years

of experience and 11% have less than 1 year experience.

It is clear from the data collection that 33.33% of the respondents prefer zuari

cement.

Based on information collected, it is clear that 64% of the respondents to prefer

product quality.

Through the analysis I found that 70% of the respondents are said to quality of

zuari cement is good when comparing to other brands.

Through this based on respondents respondence,65% of customers prefer for opc

53 grade and 15% prefer to ppc superfine and 20% prefer for other cements.

Media preference for cement products is mainly out door media which is

65%followed by outdoor media with 29% prefer to electronic media & 6%prefer

to print media.

Based on information collected, it is clear that most of the respondents said that

the price is high for all cement brands.

Regarding the packing of zuari cement, majority of respondents opines that it is

good and it is of 25%, followed by excellent with 12%, v.good with 14%, fair

with 14%, poor with 7%.

34% of dealers prefer to zuari, followed by penna with 24%, ultratech with 17%,

and coromandel with 13%, others with 12%.

Through weighted average method, it can be find out that quality is the main

factor that influences dealers to purchase zuari cement followed by sales volume,

good service, customer choice, price, packing.

In the ranking, among the most selling brands, zuari is the top selling brand and it

occupies first place followed by penna, ultratech, coromandel, ACC and others.

Suggestions

SUGGESTIONS

Company should try to make more dealers.i.e. the distribution network needs to

be strengthened and dealers should be encouraged by the way of incentive

schemes to rush the product.

The management should take care of smaller dealers along with bigger dealers.

The management should maintain consistent rating policy for all the dealers.

Zuari cements may concentrate extensively on advertising as to improve the

awareness of the product.

According to my perception through maximum people said the price of zuri

cements is high, the management has to concentrate on the pricing strategies for

the increase of sales of zuari cements.

Zuari needs to maintain more flexibility in packing, so that the product will be

made more attractive to all the consumers, contractors and masons.

For creating high brand image, a clear promotional strategy and a planned

advertising campaign is necessary.

The company has to conduct different types of meetings in order to improve the

communication with the contractors, dealers, masons and engineers.

The company can undertake promotional activities specifically directed to the

builders and dealers to boost sales.

The company may go with a competitive scheme with price allowance for bulk

package, transport, warehousing facilities and gift schemes etc.,

Conclusion

CONCLUSION

In the recent years we will find a growing consumers demand for cement due to

the infrastructure development and housing. Because of intensive demand fort

cement more than 15 players came into the market with their marketing

strategies. The dealers are major sellers of the cement and whole perception will

really makes the difference. The dealers are becoming very conscious about the

quality, credit, price, strength and durability of cement. They need better cement

at competitive price.

In zuari cement, advertisements have to play a vital role to attract more no. of

consumers to purchase their products and also play an important role to improve

their sales.

The zuari cement is slowly setting the insights of builders because of its quality

and affordability. There was a good satisfaction among the dealers of zuari

despite its market reach is limited.

On the whole, the quality aspects of zuari cement are superior in the views of

dealers and it is positional as “quality-affordable cement” in the market.

Questionnaire

A STUDY ON COMPETITION ANALYSIS DONE FOR ZUARI CEMENTS

NAME :

ADDRESS :

PHONE NO. :

1.Type of business [ ]

(a) Retailing (b) Wholesaling

2. How long have you been in this field? [ ]

a)Less than 1 year b)1-5 years

c)5-10 years d)above 10 years

3. What type of shop is this ? [ ]

a)Exclusive cement shop b)cement/hardware

c)All building materials

4. At present Which brands of cements are you dealing ? [ ]

a)Ultra tech b) Zuari c)coromandel

d) penna e)ACC f)Others

5. If zuari , which factors influence you to be a dealer of Zuari cement? [ ]

a) Sales volume b) Quality c) Customer choice

d) Good service e) Others

6. If others, which factors influence you to be a dealer? [ ]

a) Sales volume b) Quality c) Customer choice

d) Good service e) Others

7. Who are the major buyers from you? [ ]

a) Household customers

b) Contractors/builders

c) Others

8. Which cement grade would most preferable by the customers? [ ]

a)Opc 53 grade b)Opc 43 grade

c) Ppc super fine d)others :

9. Why did you prefer the brands you are dealing with? Rank accordingly.

BrandSalesVolume Quality Customer

choice

Good

Service

others

Ultratech

Zuari

Penna

Coromandel

ACC

others

10. (i) Do you think that advertisements play a major role in improving [ ]

Sales of cement?

a)yes b)No

(ii)Which media do you prefer for cement advertisement? [ ]

a)Electronic :i)T.V ( ) ii)Radio ( ) iii )Internet ( )

b)Print :i)Newspaper( ) ii)Magazine ( ) iii)others ( )

c)Outdoor :i)Hoarding ( ) ii)Bill boards( ) iii)Wall painting ( )

11. In case of price, how do you feel about the pricing of the product ?

Brand High Moderate Low

Ultratech

Zuari

Penna

Coromandel

ACC

others

12. In case of quality, Rank according to your preference.

Brand Setting time Strength Fineness ColourOverall Rank

Ultratech

Zuari

Penna

Coromandel

ACC

others

13. In case of packing, how do you feel about the packing of the product ?

Brand Excellent V.Good Good Fair Poor

Ultratech

Zuari

Penna

Coromandel

ACC

others

14. Are you aware of sales (trade & customer) promotional techniques?

given by the company ?

(a) (b)

15. Based on the above factors , which is the most preferred brand by the customers ?

Brand Rank

Ultratech

Zuari

Penna

Coromandel

ACC

others

16. According to you , which is the best brand taking into consideration all the factors

specified in the above questions ?

Brand: (1)

(2)

(3)

Comments:

Suggestions:

Thank you very much sir for spending your valuable time.

( Signature&seal )

BIBLIOGRAPHY

Marketing Management: PHILIP KOTLER

11th Edition

PHI publications

Marketing Research: (i) Gilbert A . churchill,Jr. &

Dawn lacobucci

9th Edition

THOMSON&SOUTH-WESTERN crp

(ii) Dr.D.D.Sahrma

2nd Edition,published year, 2000

Sultan Publishing House.

Research Methodology: C.R. Kothari

2nd Edition, published year 2002

Wishwa prakaasham publications

Statistical Techniques: S.P.Gupta

11th Edition

S.C & Co. publication, 1997.

Websites: http://www.google.com

http://www.zuari.com