TRAINING PROJECT REPORT ON

``SALES PROMOTION ACTIVITIES IN CEMENT INDUSTRY`` FOR MANGLAM CEMENT LIMITED KOTA DIVISION

A Training Project Report Submitted in partial fulfillment of the degree of Master of Business Administration

Form Rajasthan Technical University of Kota (Raj.) Academic Session 2008-2010

PROJECT GUIDE:
Mr.K.D.Sharda ( Dy. Manager)

SUBMITTED BY:
Nandesh Kumar MBA II SEM MAIIT, KOTA

Maharishi Arvind INTERNATIONAL INSTITUTE OF TECHNOLOGY, KOTA

(Approved by All India Council for Technical Education (AICTE), Ministry of H.R.D., Affiliated to Rajasthan Technical University, Kota)

DECLARATION

I hereby declare that the presented report entitled Sales Promotion Activities in cement industry

Is based on the original work and Indebtedness on other work publication has been duly acknowledged at relevant place.

Submitted By Nandesh Kumar Meena MBA Part-II

ACKNOWLEDGEMENT

It gives me great pleasure and satisfaction and the successful completion of this project. Every successful piece of work has many invisible helping hands with their in value grateful to people who have in what every capacity and they are throughout my project. That interact with them have helped me in completion of the project and gave me encouragement during the project. I would like to express my gratitude to Mr.N.K. Maheshwari (AVP of P&A) For giving me an opportunity to work as a summer trainee in Mangalam I would like to thank Mr.K.D. Sharda (Dy. Manager) & Mr. sukesh Sharma and the entire them for granting an excellent opportunity and their co-operation in providing the necessary information that was needed for the completion of project in spite of their busy schedule I specially wish to thank Mr.G.S.Chandak. & other officers of Mangalam cement Ltd. Who support during industry visit. I also extend my thanks to Miss Chitra Sharma & Mr. Sandeep shukla faculty of MAIIT for their encouragement and support Last but definitely not the least. I extend my sincere thanks to all my friends and colleagues of the organization for supporting me in my entire thought throughout my project.

Nandesh Kumar Meena

PREFACE
Good decisional research project result in helping to make the best decisions that can be made at the least cost of making it. Marketing is a subject for all people and all seasons. We all live be exchanging something so marketing is the study of exchange process, how transitions are initiated, motivated, facilitated, and consummated. Marketing management deals with how organization and people can better manager their exchange activities to produce income for themselves and satisfactions for others. Marketing consist of asset of principles for choosing target markets, evaluating customer needs, developing wants satisfying products and service, and delivering value to customer and profit to the company. Effective marketing decisions are based on sound information; the function of marketing research is to provide information that will assist marketing manager in making decisions. Today, in the period of down swing of the economy. I have decided to do research work on cement industry as it affects directly to economic growth a nation. The impact of decisions can be seen clearly in the cement Ltd. I have tried to make this report readable by suggesting techniques to overcome this depression.

Nandesh Kumar Meena

EXECUTIVE SUMMARY
In today market competitive market scenario, sales promotion looks to be essential activities for marketing of any product. In earlier days when it was levy market for cement then there was no any sales promotion activities but as a time passes and cements supplies decontrol than to attract the customers cement industries started using different sales promotion activities. This study emphasizes on the comparison of the sales promotion activities performed by different suppliers in Kota divisional market. Marketing consist of a set of principal for choosing target markets evaluating customer needs, developing want satisfying products and service, and delivering value to customer needs, developing wants satisfying products and service, and developing value to customer and profit to the company. All such principal plays an important role in sales promotion activities. In this study we cover all the districts of Hadoti We collect information regarding Mangalam cement as well as other available brand in the city this study emphasizes on the comparison of the sales promotion activities of Mangalam cement Ltd. In this study I am using simple and easily understandable words, which are beneficial for reader. Hope the study will be useful for the Mangalam cement Ltd. For sales promotion activities in the market.

NANDESH KUMAR MEENA MBA-II SEM

TABLE OF CONTENTS
1. CEMENT INDUSTRY INDIA OVREVIEW 2. COMPANY PROFILE 3. CONCEPTUAL FRAME WORK 4. RESEARCH METHODOLOGY 5. SALES PROMOTION ACTIVITIES AT MANGALAM CEMENT 6. DATA CALLECTION AND INTERPRETATION 7. COMCLUSION AND SUGGESTION 8. BIBLOGRAPHY 9. ANNEXURE

CHAPTER-1 CEMENTINDUSTRY AN OVERVIEW

CONCEPT OF CEMENT
The word cement may be defined as a substance, which can join two of more pieces of some other substance together to form a unit mass. Cement is a fine power which when mixed with water and allowed to set and harder can join different components together to give a strong structure mechanically. Thus cement can be used as a founding material for bricks of for founding solid particles of different sizes (rubble masonry) to form a monolish. It was about 150 years ago or so that cement as we know and use it today was invented of prepared. Mr. joseph aspadin of England first of all patented the manufacture of an improved type of cementations material for construction of building in the year 1824 and gave it the name Portland cement. This was because of the fact that hardened stone from the cement; joseph aspadin invented resembled Portland stone found in England. However some other persons also claimed that they had made similar cement each of them adopted a different process of manufacturing Portland cement was adopted on modern lines. As we know it today. The basic row materials used in the manufacture of Portland cement are Limestone and clay, both of which occur in nature in abundance in addition. The requirements of the product may need one or more of the corrective materials like literate, bauxite. Iron ore etc. in addition additives are sometime also used to suit specific needs. Portland cement are made of grinding a mixture of limestone and clay matter, burning the mixture at a very high temperature, cooling the resultant product called clinker and then grind the same to an impalpable powder. The essential constituents of Portland cements are lime, silica, alumina and iron oxide, some gypsum is also added during the final grinding operation. Usually Portland cement is divided into the following seven classes. (I) (II) (III) (IV) (V) (VI) (VII) Ordinary Portland cement Moderate heat Portland cement Rapid hardening cement Low heat Portland cement Soleplate resisting cement Oil well cement White cement in

The method of manufacturing of all the types of Portland cements is practically the same; they vary only in chemical composition to impact the desired properties of a particular type.
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CEMENT INDUSTRY IN RAJASTHAN

Position of cement industry in Rajasthan. The manufacture of cement produces recent development in India .The increasing home market due to increased activity in building construction and new users of concrete has led to considerable expansion. The choice of location for the manufacture of cement is generally influenced by transport cost where the raw material used is bulky. There is a tendency for the industry to the located near the source of row material so that the heavy transport costs on material could be avoided for the manufacture of 100 tons of cement. 160 tons of limestone.38 is bulky in weight and cheap in price hence ,cement industry is generally seen out cropping that places but it does not raise more than a few Metre above the plain area. Before independence Lakheri was a popular place which is a still famous for its quality cement. At recent these are the following cement industries functioning in Rajasthan

MAJOR CEMENT INDUSTRIES WORKING IN RAJASTHAN

1. Acc ltd Lakheri, Bundi (1951) 2. Birla cement works, Chittorgarh. 3. Aditya cement works, Chittorgarh 4. Mangalam cement, Morak (Kota) 5. Shree cement Beawar 6. J.K. Cement, Nimbaheda 7. J.K. coporation Limited, Sirohi. 8. Shri Ram cement, Shri Ram Nagar, Kota 9. Binani cement ltd, Sirohi. 10.Bangur cement, Beawar 11. Ambuja Cement, Pali As far as cement production in Rajasthan is concerned shree cement, Beawar tops in the list, according to the production. Now Birla Uttam also tries to increase its capacity by generation electricity through their own thermal power plant. The total capacity of birla uttam 4500 MT/day.
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CEMENT INDUSTRY IN INDIA

A report from ICRA says cement industry to grow at 8 percent in medium terms. It added, With the economy looking up the cement industry is likely to grow at8 percent in the next couple of months even as the aggregate earnings might not improve drastically. The fundamental look bright and cement demand in the medium term are expected to grow at around 7-8 percent ICRA has also predicted a supply surplus situation for the industry in the near to medium term. The cement companies are expected to continue to face the problem of rising input costs, as they do not have control on external cost elements such as energy and freight the earnings of the cement industry on an aggregate may not improve significantly, there may be select players in the industry, who may show improve earnings. ICRA said. This would include players who are constantly focusing on rising operating efficiently, have high economics of scale and are not dependent on few regional markets above have good distribution logistics and process a good brand name, cement sector is expected to witness a consumption growth in tune with the overall economic growth because of the strong co-relation with tune with the overall economic growth because of the strong co-relation with GDP ICRA pointed to on going road and housing projects to be the main driver of future demand of cement. The infrastructure sector grew by 5.9% in January 2004 against 4.9% in the corresponding period last year. However, the growth was at the same level as in December 2003. The index of the six infrastructure industries (crude petroleum, petrol refining coal, electricity, cement steel) which accounts for almost 27 percent of the industrial production index (IIP) went up by 4.7 percent in the first ten months of 2003-04 against 5.8 percent in April to January 2003-04. Indian cement industry has posted a healthy growth rate of 7.81 during the year 2004-05. Cement production increased from 117.50 million tones in the fiscal 2003-04 to 125.86 million tones in 2004-05 and the installed capacity of the industry increased from 146.38 million tones on March 2004 to 152.09 million tones in March 2005.
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IMPORTANCE OF CEMENT INDUSTRY IN INDIAN ECONOMY

Cement plays a crucial role in the building operation. Almost every phase of human activity involves construction work and the industrial development and progress of a nation in directly related with the extent of its construction activities, which are mainly base on the consumption of cement. The importance of cement industry may be given as under: Basic ingredient in construction work Generation of employment Contribution to national exchequer Contribution to Indian railways revenues Helpful in the development of other industries In a nutshell, the cement industry plays a pivotal role in the national economy. The consumption of cement is the key indicator of the countrys prosperity, development and constructive activities. If proper steps were taken for the sound development of the industry with the latest technology the industry is sure to serve the people and nation in a better way. It is a matter of pleasure and satisfaction that the government is alive on the issue and is keen to better the position of the industry with a realistic and balanced development strategy so that the industry may be brought out of the whirlpool of stagnation.

PROSPECTS FOR DOMESTIC CONSUMPTION GROWTH

International experience suggests that the per capital consumption of cement increased dramatically in the early stages of development of a nation and as the nation develops it reaches a plateau. I have all the advanced nations have reached a plateau. The per capital cement consumption of the less developed countries (LDC) are well below the world average, given the fact that Indias per capital income is well below the world average the future prospects for growth of the cement industry appear bright. Firstly, at the existing level of per capita consumption, total cement consumption will grow in line with per capita consumption; total cement consumption will grow in line with per capita income. Secondly, as suggested by the experience of other countries, the cement intensity of the economy is higher at higher levels of per capita income. Both this factors supports the optimistic assessment of prospects of domestics consumption growth.
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The development economical noted that the cement industry witnessed recessionary trends. During the last few years the prime reasons for such situation. Were substantial back, particulars in govt. of take of cement and industry crunch in the market. But now gevt. Bold & pragmatic liberalization policy coupled with structural changes has brought India on the threshold of a new are of economic progress. Recently our prime minister has amended to create concrete roil in over India. Govt. has provided special to infrastructure sector and Housing Corporation, so this will create new demand in cement industry. Housing Corporation is providing loan from house on low rates, which will enhance the demand of cement and may after reason like earthquake in Turkey and Kargil incident etc.

CLOSURE OF CEMENT PRODUCTION

Fifteen large cement plants are closed or have stopped production due to various reasons such as technological obsolescence and economic non-viability. Out of fifteen cement plants, three are in Madhya Pradesh, two each in Utter Pradesh, Haryana, Karnataka and Gujarat one each in Andhra Pradesh, Bihar, Maharashtra and Rajasthan. The govt. has taken a number of steps for revival of sick industries units. These include guide lines of Reserve Bank of India to banks, amalgamation of sick units with healthy units and setting up of board for industrial and financial reconstruction (BIFR) under sick industrial companies act, national renewal fund, national equity funds etc.

Export and domestic demand of cement

The total quality of various types of cement produced on the country and exported during the last three years as under: As per the task force report on cement industry for the ninth plan there are bright prospects for exports particularly to countries in the Indian sun-continent, middles and Southeast Asia.

Financial problem in cement industry

Inter regional price of cement vary on account of factors such as local demand and supply, distance of market the cement producing centers etc. on account of demand recession, at present there is an mis match between the existing production capacity and demand of cement. Since there is excess capacity at present, there is a major capacity expansion plan on avail by the cement industry.
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CHAPTER 2 COMPANY PROFILE OF MCL

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(An ISO 9001:2000 Company)

An Introduction:
Manglam cement ltd. belongs to the B.K. Birla group companies. Manglam was incorporated in 1978 and commercial production was started in 1982. The total capacity was 4500 tones\day. It was established at Morak, dist. Kota. It is professionally and well-established cement manufacturing company which has a strong commitment for producing best quality cement, it is also satisfy its consumers by its superior product and excellent customer service. The company has established its new cement plant; name of plant was Neer Shree Cement plant at the existing at Morak, Kota. The company uses new German technology for producing capacity of 7 lacks tones per annum. The MCL has made collaboration with German company which is known as Krupp plysis & its counter parts Krupp industries India Ltd. to produce Birla Uttam Premium, 43 grade & 53 mpa Portland cement using ultra modern technology. The MCL is committed for producing quality product by ensure this entire manufacturing process has been automatic and following latest equipments are use to achieve this goal. Vibrating screen: - commencing with a 500 tph crusher with latest vibrating screen to ensure that only very clean stone goes in manufacturing process. Stacker Reclaimer: - to perfectly homogenize the main raw material i.e. Limestone. X-Ray Analyzer: - for quick and accurate analysis of all the raw material, clinker and cement. Computerized central control room: - for stable and efficient operation. Vertical roller mills: - latest roller mills for coal grinding and roller presses for clinker grinding to ensure uniform particle size of cement for greater strength. Electronic packing: - for consistent results and prompt delivery.
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Main Objectives of MCL

To achieve their goals by making a continuous efforts to sustain and improve the quality and productivity levels and attain consistent results. Maximum utilization of available resources. To adopt the knowledge and skill of new technological development. To making a healthy working environment & encourage teamwork for finding solutions to the problems of quality and productivity and their implementation leading to enhanced commitment. Excellence in all spheres of management through consensus, consultation, system perfection, delegation, decentralization and human resources development for knowledge integration and skill development.

CORPORATE PHILOSOPHY OF MCL

To adopt, the concept of total productivity management in all spheres of excellence in the quality management, for attaining perfection. To derive, the advantage from the synergies of the group companies. To incorporate within the group a common business philosophy and management practices. To aim at various strategies for growing challenges and opportunity. To promote friendship and camaraderie at all levels of individuals of group companies. To decentralize decision and delegate authority for freedom of value added activity. Shouldering more responsibility to participate in decision-making process with at all levels. To produce quality cement and render services to entire satisfaction of the valued customers and diversification of business.

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MARKETING POLICY OF MCL

Cover more market share Always stay in profitability Maximum consumer satisfaction Make our brand more visible & different in the market To create market demand & proper supply

Total Production Maintenance (T.P.M.)

TPM is a maintenance program; there is done maintenance of each & every thing & activity in the industry with the involvement of all employees.

Main concept of TPM

Building up more effective maintenance All workers participation Culture preventive philosophy Automation & unmanned plant operations Our Corporate Vision The 21st Century Atlas

Atlas, The Titan - Collective strength of the Group: This Symbol as a whole, represents the collective strength of the Group. The astute and dynamic management which binds the group together and gives it leadership and direction is personified in the figure of Atlas. A pillar of strength, Atlas also stands for steadfastness, consistency and reliability. The Sun - Enlightenment and Growth: The head of the Atlas also represents the Sun. In this context, the Sun stands for a luminous and powerful presence that the Group has over the industrial arena on one hand, and resourcefulness in terms of finance, technological skill, and intellectual leadership on the other.

Earth Segments - Diversified Activities: Each latitude around the Titan, represents the different industries or activities that constitute the Group. They individually draw and give strength and support to the central figure of atlas

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 The Globe - Global Vision: The Group's Global Vision and presence is visually inherent in the figure of the Earth.

ORGANISATION SET UP OF MANGALAM CEMENT LTD.

Location Year of incorporation Commercial production Total project cost Capacity Man power Brand name Product manufactured

: : : : : : : :

Morak 65 km form Kota Mangalam Neer Shree 1978 1992 Mangalam Neer Shree 1982 1994 400 Crores Mangalam 1200 MT/day Neer Shree 3300 MT/day

750 workers 320 Staff employees Birla Uttam Birla Uttam cement OPC 43 Grad PPC 53 Mpa P.O. Aditya nagar Morak Distt. Kota (Rajasthan) 9/1, R.N. Mukherjee Road Kolkata - 700001
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Registered office and plant : Head Office :

ORGANISATION STRUCTURE OF MANGALAM

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ROLE & FUNCTION OF MARKETING DEPARTMENT

In the hiererchy of marketing department overall control lies with the president. He forms the policies, takes decisions on the key issues like prices, dispatch transportation realization, outstanding etc. He also interacts and is answerable to the board of directors. The joint president carries out the policies framed by the president & reports directly to the president. Under president, two AVPs marketing look after the day-to-day functioning of the marketing department who are in direct control of the marketing staff. In addition to carrying out the policies of the company the GMs are responsible for sending the feedback from the market to the joint president and the president. The AVPs also look after the welfare of the staff & their families, and to send the sales reports to the head office. Manager sales report directly to AVPs marketing & look after the day-to-day functioning of the department and the field staff under them, they implement the policies formulated by higher management and are responsible for the smooth functioning of the marketing field staff. Manager (Sales) also looks after the quality complaints and interacts with the other department field staff in directly involved and is in regular contact with the end users for marketing of product, for solution of problems, getting feedback from the customers, assessing the marketing potential & reporting it to the higher authority, lessoning with government and private builders, sales promotional activities and collection of payment.

PlanningFor

marketing of cement, planning for dispatch is being on month-to-month basis looking to the demand & supply scenario, previous dispatch trend and forth coming major projects.

ReviewingTo review the present market position of Mangalam cement is

using the following internal reports which they are reviewing time to time. Bulk lifting charts of dealers Pending order list Outstanding position Review of cement deliveries
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monthly daily daily daily

Net realization basic

fortnightly

Feed back
For a company, customer feedback is very important as it gives the idea about the product so that if market demands a company can improve its products. Mangalam cement has a system of customer satisfaction feedback. It gets the feedback through customer satisfaction feedback from, through dealers meet & through mason meet.

MANAGEMENT
1. 2. 3. 4. 5. 6. Mr. O.P. Gupta Mr. T.S. Vishwanath Mr. N.G. Khaitan Mr. K.K. Mudgil Mr. Aruna Makhan Mr. K.C. Jain Chairman Director Nominee of UTI Director Director Special Director Appointed by BIFR Managing Director

KEY MANAGEMENT PERSONNEL

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Mr. R.C. Gupta Mr. Yashwant Mishra Mr. S.K. Agarwal Mr. S.K. Pokharna Mr. Anil Mandot Mr. V. Ragupati Mr. R. Giri Mr. R.K. Shodhani Mr. G.S. Chandak Mr. Anup Walia Mr. N.K. Maheshwari President (F&A)&company Secretary Joint President (commercial) Joint President (Tech.) Sr. Vice President (Tech) Sr. Vice President (A&T) Vice President (Power Plant) Vice President (Elect. & Instrumenat.) Vice President (Production) Vice President (Sales and Sales Acc.) Vice President (Marketing) AVP (Personnel)

ACHIEVEMENTS
During mines environment and mineral conservation week (2005-06) Overall performance Third Price
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Reclamation, rehabilitation, restoration of land Second Price Air pollution control - Third Price Poster competition Second Price

During mines safety week (2005) Transport road and cults suppression Second Price Welfare amentied and protective equipment, publicity propaganda and housing keeping - Second Price Opencast working places and supervision First Price

SWOT ANALYSIS
Strengths: It is the best quality manufacturer of cement. One of the best technologies in Rajasthan. Neer Shree latest technology is given the best output. It is attributed by healthy work environment and sound management system. Goodwill of B.K. Birla group is also strength of Mangalam cement ltd. Its site selection is in a way its biggest strength for there is easy access to the raw material, manual labor and electricity. Mangalam cement limited is an ISO 9001:2000 certified company. Its strong dealers and retailers network is also its strength. Superior strength of its products. Superior fineness & consistent quality of its cement. Durability and soundness. Optimum setting time of cement. Ideal water cement ratio. Flexibility in design and usage. Specification in accordance with BIS standards. Electronic packaging system for prompt delivery. Sales depots and offices for prompt delivery and immediate attention for customer grievances. Weaknesses:
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 Worsening power situations, facing companies to invest huge amounts in captive power plants. Infrastructure bottlenecks like transportation for raw material, fuel support and cement. Inadequacy of finance for modernization. Increasing freight prices. Continuous loses may affect its goodwill and market value of its shares. Improper supply & distributor chain. Opportunities: Its superior quality attracts brand loyal and quality conscious customers. Expected infrastructure growth will add to the current demand. By establishing their own power plant, cost of production will be minimized. Mangalam cement limited can get profit by controlling its cost of production. Experts quote that; only those companies will survive in cement industry, whose cost of production is minimum. By increasing its investments in promotional activities, it can enhance its market share.

Threats: Large companies are coming up. This may put pressure on realization in central north India. Cement industry is facing price war; it may comple Mangalm cement limited to reduce its cement price. There is depressed market condition cause by demand recession and commissioning of large capacity in cement, resulting in higher competition. If excess supply conditions persist, it may lead to shut down of various cement plants.

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BIRLA UTTAM CEMENT - 43 GRADE

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Physical Characteristics Sp Surface A. By Le Chatelier Method Soundness Test B. By Autoclave Method Initial Set Setting Time (Minutes) Final Set 3 days Compressive 7 days strength in MPa 28 days

Birla Uttam Cement 325 0.75 0.02 120 215 34.8 48.6 68.0

BIS Specification Should not be less than 225 M2/Kg. Should not exceed 10 mm Should not exceed 0.8 % Should not be less than 30 Min. Not more than 600 Minutes Not less than 23 MPa Not less than 33 MPa Not less than 43 MPa

BIRLA UTTAM CEMENT - 53 GRADE

Physical Characteristics Sp. Surface Soundness Test Setting Time (Minutes) Compressive strength in MPa A. By Le Chatelier Method B. By Autoclave Method Initial Set Final Set 3 days 7 days 28 days Birla Uttam Cement 370 0.75 0.012 110 200 38.2 54.8 70.0 BIS Specification Should not be less than 225 M2/Kg Should not exceed 10 mm Should not exceed 0.8 % Should not be less than 30 Minutes Not more than 600 Minutes Not less than 27 MPa Not less than 37 MPa Not less than 53 MPa

BIRLA UTTAM CEMENT PPC

Physical Characteristics Sp Surface Soundness Test Setting Time (Minutes) Compressive strength in MPa A. By Le Chatelier Method B. By Autoclave Method Initial Set Final Set 3 days 7 days 28 days Birla Uttam Cement 380 0.75 0.014 130 230 32 45 64 BIS Specification Should not be less than 300M2/Kg. Should not exceed 10 mm Should not exceed 0.8 % Should not be less than 30 Minutes Not more than 600 Minutes Not less than 16 MPa Not less than 22 MPa Not less than 33 MPa

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CHAPTER III CONCEPTUAL FRAME WORK

MARKETING
Marketing is an exciting dynamic and contemporary field. It influences us each day in both our roles as providers of good and services and as customer
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Any business is likely to be more successful when strong marketing viewpoint or philosophy permeates the thinking and guides the decision of everyone in the business. Marketing may also be defined as the performance of business activities, which effect change in the ownership and possessions of goods and services. MARKETING FUNCTIONS The marketing function may be classified in to five groups these are Coordinate ting marketing activities (MANAGEMENT) Developing marketing executive (sales promotion) Determining marketing objectives (RESEARCH) Budgeting sales expenses and profits (DISTRIBUTION) Developing marketing plan (PRODUCT) SALES PROMOTION OBJECTIVE 1. To encourage trial purchase of new products by consumers. 2. To encourage middleman to increase their order size. 3. To encourage consumers to bay several units of the products at one time. 4. To encourage a middleman sales force to give extra selling effort to a mature product. 5. To encourage retailers to devote more shelf space to the products. 6. To encourage wholesalers to cooperate in a manufacture efforts to generate more feed back from retailers. 7. To encourage company sales personal to increase sales effort for a new product. 8. To acquaint consumers or industrial users with product modification. 9. To identify new consumers. 10. To develop mailing list. 11. To build customer loyalty. 12. To encourage off-season purchase by retailers. 13. To gain entry into new retail outlets. 14. To encourage brand switching by consumer.

ROLE OF SALES PROMOTION

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Sales promotions roles are derived from border promotion role are objective, which are derived from more basic marketing objective developed for the product. The specific roles Sat for sales promotion will very with the type of target market. Sales promotion role for retailers, include inducing retailers to carry items and higher levels of inventory, encoring off season buying Encoring stocking of related items, offsetting competitive promotions, building brand loyalty of retailers, and gaining entry into new retail outlets. Sales promotion for consumer include encouraging for large scale purchase building trial among non users and attracting switchers away fro competitor brands. For sales force, sales promotion role include encouraging support of a new product on modal, encouraging more prospecting, and stimulating off season sales. In addition to these specific roles, there are certain general roles of sales promotion, which are stated as below. To promote the larger sale in certain market or specified segment of the market. To develop patronage habit among the customer. To make the advertising more effective and to facilities coordination between personal selling and advertise To find suitable market for a new product to be introduce in the market. To facilitate the market research study on customers psych0logy, motives, to prove the product changer in demand etc. To prove the product better in quality and use, then of the similar product of competitors. To popularize goods and services of the producer among the potential consumer ant to motivate then towards larger purchase.
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 To present a customer promotional programmed against the competitors. To activate the dealers towards larger purchases and maintain regular stock of the sellers product. To educate the customer dealers and salesman about to promotional techniques. To motivate the existing customers for maximum purchase. To maintain the sales up to the normal level even during seasonal variations and during the declining stage of the products life cycle. To simplify the efforts of sales force and motivate them for getting larger sales orders. To facilities for maximum sales on specials occasions such as New Year eve religious festivals and other such occasion. TECHNIQUES OR ROOLS OF SALES PROMOTION Sales promotion consists of adverse collection of incentives tools mostly short term designed to stimulate quicker and greater purchase of a particular product by dealer and customer. The main sales promotion tools are given below: FOR CONSUMERS The consumers of users promotion techniques are the various devices directly used motivate and stimulate the consumers towards larger purchases. The techniques may be executed by house to house visit of the customers or by visiting their offices, or by distributing them to shops of the middle men. Some important consumers/users promotion techniques are briefly stated below Free trials Coupons Contests Free trainings After sales services Warranties Premiums Trade show and exhibition Free sample special sale Weekly special Free gifts FOR DEALERS
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The important tools used for trade promotion and brief description of each tool are given below. Advertising and displayed ads The producer assists their wholesalers and retailers in advertisings the products and shop display, in many ways some of such ads are: Advertising allowances Out door adverting Displays allowance Local news paper advertising Cooperative advertising Direct mail advertising Store and window display materials Promotional novelties Organizing of fashion shows Sales assistance /merchandising ads For successful organization of sales functions the producers the following kind of assistance to the dealers Sales meeting Training of sales man Brand deal allowance Special trade terms Building up sales plan Training of sales man Prize off or buying allowance
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MANAGEMENT ASSISTANCE It is vary difficult to manage the wholesale and retail trades. Many of the middlemen do not posses the knowledge of various management techniques. With the result they will not be in position to utilize their ability and funds in a proper manner. The producers the following types of managerial assistance to mitigate these draw backs: Providing the general information Guidance in setting up internal organization Sales management functions Advice towards police matters Other assistance and incentive Dealer contests Dealer premium Credit facilities

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CHAPTER-IV RESEARCH METHODOLOGY

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RESEARCH AIM
The aim of this study was to identify the sales promotion activities for Mangalam cement and to understand the expectation and opinion of retailers and dealers regarding sales of birla uttam cement in Kota district.

Objective
Primary objective To review the sales promotion activities regulating in the company Secondary objective To find out the advertising activities followed by mangalam cement To compare the sales promotion activities of the company with the competitor. To suggest proposed sales promotion activities to cement industry in general and in particular to the company (proposed model) Hypothesis The hypothesis on which the research was conducted was as follows: The need of sales promotion increase in a particular season.(rainy season, festival season) to maintain and to increment of business, the sales promotion activities are required

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Scope of study
This study will yield a great benefit to the organization as a lot of scope is there, particularly in distributor and retailer segment. This will help to increase the sale of organization.

DATA SOURCE
Primary data It is those data, which are collected fresh and first and first time and they happened to be original in characteristics. This may be done by either surveying and asking person to survey or going in the field and collocating data. This type of data is more confidential and chance or error is minimized. In this project surveying he retailers is the source of collecting primary data normal procedure is to conduct personal interview and telephonic interview for primary data. A primary survey was conducted at Kota city and survey was carried out at various levels and the target group was retailer and distributor. Secondary Data:It those data which are already collected by someone else and which have already been past thought the statistical process, secondary data provide the starting point research and offer the advantage of low cost and ready availability. Previous records of company. From various commercial magazines, book, articles, internet. Research Approach Survey with structured schedule at different areas of Kota city Tele calling. Cold calling in different areas of Kota city Random visits to retailers. Research Instrument

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A structured scheduled was provided by MANGALAM CEMENT LTD. MORAK. And apart from this some other relevant information was also collected from the respondents.

SAMPLE PLAN
Population Definition:Element: - Distribution and retailers Sr. N o 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Area AKLARA JHALAWAR KHANPUR CHAUMAHLA BHAWANI MANDI CHACHAT RAMGANG MANDI PACHPHAD M.N.EXT.KOTA RANGBARI BASANT VIHAR DADABARI KASHAV PURA MORAK Sample Frame: - Kota city No. of Retailers 10 11 9 7 11 5 19 5 8 7 5 3 4 5

Sampling Units: - Distribution and retailers of Kota City

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Data collection Method Personal interviews Telephonic interviews Sample size: 100 Research Design:-Exploratory Sampling Method: - Random sampling

CHAPTYER-V SALES PROMOTION ACTIVITIES AT

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MANGALAM CEMENT

INTRODUCTION
Sales promotion activities are instinct to the marketing of any product in today customer oriented marketing structure of our economy now a day the market is flooded with several items /products which are in fierce competition among each other within the country as will as with MNC s. There is no shortage of any product, any where in the country with so many product vying with each other is bound to gat the customer confused on what to buy &which companys product he likes. In such a mental state of the customer, sales promotion activities play an important role. It dose help a customer to take a buying decision. Mangalam cement ltd. Unit I started its production on 17 th October 1980.at that time there were not too many cement companies was controlled by the government of India. The manufacture had to sell a certain percentage of their production to the government and the rest to the public but with the permit of the government. This was the control market situation.

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In 1995 Government of India. Finally decontrolled the cement commodity and the manufacturers were free to sell their cement in the open market. This scenario resulted in the increase of cement manufacturing capacities in India. More & more new units came up during this period. Liberalized government industrial policies. Availability of power discovery of newer limestone deposits and the demand in the market also added to this. During the period of opening up market every band of cement started vying for a place in the market. Since all brand had to follow the standards lay down by BIS and to have ISI certified mark on the product, it become increasingly important for the manufacturers to sort some sales promotional activities to lure the customers. It was than that mangalam cement also started sales promotional activities initially mangalam cement started the following sales promotional activities. Gift item distribution to consumers Cash discount for dealers Picnic /excursion for dealers In 1993 since cement market was upswing and the demand continuously increasing expansion of mangalam cement was undertaken and unit II was commissioned and started production in Aug 1993 with this increased quantity of cement to sell the enhancement of sales promotion activities was also imperative so the following activities were added. Mason meet Dealers meet Gift item increased With the fast spread of electronic media in the country the company added India tour for dealers, in its sales promotion activities. In future company has plans has plans to introduce the scheme of foreign tours for dealers.

SALES PROMOTION ACTIVITIES

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FOR COSTOMERS Mangalam cement ltd. Is performing following sales promotion activities for customers Gift item distribution For consumer sales promotion company distribution following items calamander, diaries, pen, slip pads, key rings, stepny covers, Danglers, telephone indexes, shopping bags, will clocks, etc. gift items other then the general are also distributed in mason meet/ dealer meet /architect meet like leather bags, wrist watches paintings, crockery set etc. Mason meet Masons are the people who largely influence the buying decisions of any house owners. To create the awareness among masons and also to give them the knowledge of proper use of over cement, mason meeting are conducted. These are of about two horse duration in which a person from technical call explains the use of product and also answers the queries raised. The meeting is followed by lunch/Dinner.

Architect/builders/contractors meet The company organized architect/contractor boulders meet separately because of the intellectual level difference with the mason. Such meetings are of abut an hours duration wherein the discussions are created on technicalities, such meetings are also followed by lunch/dinner and gift distribution. For dealers &retailers Dealers meet Dealers meet are organization from time to explain the company marketing policies any changes any amendments. Any new policies such meetings also serve the important purpose of getting the feed back from the market and also to learn the competitive brand strategies. Such meetings are of the duration of 2hour following by high tea /dinner.
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 Picnic /excursion tours Picnic /excursion /tours are organization with the aim of getting to know the dealers and their families, to create a bond of friendship and to improve the interpersonal relationship among the dealers as well as with the company. These tours are held most at any hill station or sea side resort such tours are mainly meant for fun. Retailers meet Retailers are the important link who has direct contacts with the customer that is way the company also organizes meeting with the retailers in order to get the feed back from the market and prices prevailing in the market and to review competitors polices. Such meeting serves an important function of creating a sense of belongingness among the retailers. Cash discount Cash discounts are given in order to facilitate fast cash recovery for dealers &retailers the company has a cash discount scheme as given below. The dealers or retailers may transfer has discount to the customer. This is a general discount scheme followed by all cement companies.

Rs. 4/- per bag on advance payment Rs. 3/- per bag if payment received within 3 days after delivery Rs. 2/- per bag if payment received within 7days after delivery Rs. 1/- per bag if payment received within 15days after delivery Quantity Discount To encourage the dealers/retailers to sell more company has a scheme of quantity discount as given Rs. 20/-per MT up to 50 MT Rs. 40/-per MT from 51 MT to 120 MT Rs. 50/-per MT from 120 MT to 120 MT Rs. 60/-per MT for beyond 250 MT
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Distribution channel Distributions channels are set of inter dependent organs involved in the process of making a product for use or consumption. So deciding marketing channel is a very critical decision because it affects all marketing decisions. Cement is regarded as one of the basic material for the growth of any country, so it very essential that the distribution channel should be such that it makes the product available to all potential customers. Since inception of cement industry in India the distribution of cement was fully control by Govt., but after adoption of the decontrol distribution channel of mangalam cement ltd. The company in Rajasthan has four sales promoters which covers risks regarding sales. The stockiest of the company may appoint retailer for the purpose of attending tender and lessoning with govt. department sales promoters of magalam cement are arranging the distribution cement through dealers stockiest.

Advertisement
Advertisement is one of the major tool companys uses to advertise their products to pursue their potential customers to favor their product. There are numbers of way like: newspaper, wall panting, hoardings, panels, pamphlets etc. generally used by the marketing managers to objective and established their brand in the eyes of customers. Mangalam cement ltd. Is also doing advertising through different media. The different means by which mangalam cement ltd advertising is as given below Hoarding
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 Wall paintings Pamphlets Brochures News paper Advertising Tractor trolley & truck painting Placard displaying of Birla Uttam cement.

DATA INTERPRETATION & GRAPHICAL PRESENTATION

In this study we cover 100 dealers & retailers in distinct of Hadoti.
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Different responses are given by different person. Similarly we collect data from dealers & retailers who are using different cement. So I present different data in graphical form.

Q.1

How many Brands are you selling at this time at your shop?

No. of Brands 1 2-4 4-6 More than 6

No. of Retailers/Dealers 79 18 2 1

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80 70 60 50 40 30 20 10 0 1 2&4 4&6 More than 6 No. of Retailers/Dealers

Q.2 Which Brand you to use more & why?

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Name of Brands
Birla uttam Ambuja Ultra tech Tuff cemento Shree- ram ACC Bangur Binani Berla samarat JK Laksme

Demand of Brands
32 9 16 4 9 6 3 12 3 6

Demand

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Birla uttam Ambuja Ultra-tech Tuff cemento Shree-ram binani jk laksme berla samarat bangar Acc

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Q.3 Motive Demand Price Quality availability Total

What criteria you have select for a Brand? No. of Dealers & retailers 13 21 58 8 100

60 50 40 30 20 10 0

Demand Price Quality availability

Demand

Price

Quality

availability

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Q.4 Ranking brand on the basis of your Ranking preference:Birala Ultra tech Binani Ambuja Shree ram 1 2 3 4 5

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Birala Ultra tech Binani Ambuja Shree ram

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Q.5

What is your sale per month?

No. of Bags
0-500 500-1000 1000-5000

No. of retailers/Dealers

6 39 31 More than 5000 24 Total 100

More than 5000

24

1000-5000

31

500-1000

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0-500

6 0 5 10 0-500 15 500-1000

49 20

25

30 More than 5000

35

40

45

1000-5000

Q.6 Response YES NO Total

Are you satisfied with the problem solving strategy of the company? No. of Dealers/Retailers 90 10 100

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90 80 70 60 50 40 30 20 10 0

No of retailers/Dealer

Yes

No

Q. 7 Response YES NO Total

Q.7 In your opinion there any Impact of Advertising on the purchase of a cement Brand? No. of Dealers/Retailers 100 00 100

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120 100 80 60 40 20 0 Yes No

No of retailers/Dealer

Q.8

What are you suggest to Improve sales?

Response
Improve Price Structure Improve the product quality Improve the Advertisement policy Improve the distribution chain

Total

No. of dealers/Retailers 26 20 41 13 100

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Improve Price Structure Improve the product quality Improve the Advertisement policy Improve the distribution chain

Q.9

Which type of sales motivation do you get from Birla Uttam?

Response Cash discount Promotional schemes Timely availability

No. of dealers / retailers 41 29 26

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Satisfaction Total

4 100

45 40 35 30 25 20 15 10 5 0
Cash discount Promotional schemes Timely availability Satisfaction

Cash discount Promotional schemes Timely availability Satisfaction

Q.10

What is your opinion regarding Birla Uttam in terms of distribution strategy adopted by the company?

Response Excellent Very Good Good Satisfactory

No. of Dealers & Retailers 10 36 12 22

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Poor

20 100

40 35 30 Retailer/Dealer 25 20 15 10 5 0
Ex ce lle nt Ve ry G oo d Sa tis fa ct or y G oo d Po or

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Q.11

Which is the major competitor of Birla in this Local market?

Response Ambuja Birla Uttam Binani Ultra tech

No. of Dealers & Retailers 22 35 22 21

Ambuja Birla Uttam Binani Ultra tech

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Q12 Response YES NO Total

Are you satisfied with the Distribution strategy of the company?

No. of Dealers/Retailers 92 8 100

100 90 80 70 60 50 40 30 20 10 0 Yes

No of retailers/Dealer

No 57

CHAPTER VII CONCLUSION & RECOMMNDATION

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CONCLUSION
The 80% of cement sales is done through trade channel and 20% through institutional or non-trade. Graphic and fining show that among various brand the BIRLA UTTAM is that brand which is most available at various counter due to nearly production or its plant is situated near by Kota city (at 65 k.m. far from Kota city). So there is no problem of availability of this brand. The secondary data proved it in district city of hadoti and its demand as well as sale is maximum. All cement having two grades Opc & Ppc generally the opc cement is more preferred by the wholesaler / retailers. But in the case of final customer very few customer are having knowledge about OPC&PPC. The various factor that effect the demand of cement as well as particular brand sales are like quality, prices, season, promotion strategy of company or competitors, relationship with suppliers, discount and supply position because all these helps to create demand of cement. But the quality is the factor, which is considered by most of suppliers as well as customer. This is reason that all cement companys emphasis on quality in their advertising. Price is the second consideration factor because the price difference among various brands is generally very less as price determined for basis and determines the prices. There is no price elasticity of demand as cement is essential commodity its demand is not influenced with increases or decreases
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price in case of final consumer. But wholesales and retailers are slightly influenced by prices. There is no seasonal impact on demand but generally April, May and June are considered as a peak time. Promotional strategy of company / competitors have a crucial role in positioning the brand image as it is clear that quality is most important factor, so advertisement mainly emphasis on quality (for Ambuja Virat compressive strength and for Biral plus Har nirvan ki jaan). Statistically it can be proved that cement consumption is on rising trend the sales of Mangalam cement in year 2004-2005. In Kota city Birla Uttam is market leader due to its quality and availability.

RECOMMENDATION
Current pricing system is not up to the mark as some time price difference is very high than previous prices it has bad impact on sales, pricing should base on x-factor system. Company should provide training to retailers to give them the basis knowledge and techniques of marketing to increases sales. The order billing system is not satisfactory so there so there should be changes from the rate prevailing on date of dispatch to the rate prevailing on date of order. Company should increase their network in such areas where Birla Uttam sales is very low. Packaging should be improved. They should increase advertising. Company target market is kota city or area near by kota city then there is no need to spend more on promotions but company want to capture whole Rajasthan as well as other states then it should give their major consideration towards media advertisement, Masons meeting should be conducted in rural area. MCL should try to reduce its cost of production. Regular survey should be conducted. Non-trade should be started.
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Birla Uttam is well known brand but still people are confused and think that Birla uttam and Birla Plus belong to same brand. So it is necessary for Birla Uttam to create separate image in customer mind. Company dealer or representative should regularly meet contractor, builders so as to give them complete knowledge about our brand, once the contractor, builders have full knowledge of our brand. Then they definitely prefer the Birla Uttam. Color of HDPE bags should be change, so that it create different image in customer brand.

BIBLIOGRAPHY
Conceptual framework: www.Mangalamcementltd.com www.answer.com Company profile: Annual report of Mangalm cement ltd.

www.mangalamcementltd.com Research Methodology: Marketing research (1)Author- P.N. Mishra

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(2)Author- C.R. kothari Marketing Management (1)Author- Philip Kotler Statistical Method (1)Author- Jain & khandelwal & Pareek (2)Author- S.P. Gupta

MANGALAM CEMENT LIMTED

Sales Promotion survey (For Dealers and Retailers) Name of the Firm__________________________________________________ Name of Owner ____________________________ Address _______________ ___________________________________ Contact No.___________________ Q.1 How many Brands are you selling at this time at your shop? (A) 1 (C) 4-6 (B) 2-4 (D) More than 6

Q.2 Which Brand you to use more & why? (A) Ambuja (B) Birla Uttam

(C) Binani (D) Ultra tech Reason:-________________________________________________________ Q.3 what criteria you have select for a Brand? (A) Price (B) Quality
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(C) Availability

(D) Demand

Q.4 Ranking brand on the basis of your preference:1._________________________________________________________ 2. _________________________________________________________ 3._________________________________________________________ Q.5 What is your sales per month? (A) 0-500 bags (C) 1000-5000 bags (B) 500-1000 bags (D) more than 5000 bags

Q.6 Are you satisfy with the problem solving strategy of the company? (A) Yes (B) No

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Q.7 In your opinion there any Impact of Advertising on the purchase of a Cement Brand? (A) Yes (B) No

Q.8 What are you suggest to Improve sales? (A) Improve Price Structure (B) Improve the product quality (C) Improve the Advertisement policy (D) Improve the distribution chain Q.9 which type of sales motivation does you get from Birla Uttam? (A) Cash Discount (C) Timely availability (B) Promotional Schemes (D) Satisfaction

Q.10 What is your opinion regarding Birla Uttam in terms of distribution Strategy adopted by the company? (A) Excellent (B) Very Good (C) Good

(D) Satisfactory (E) Poor Q.11 Which is the major competitor of Birla in this Local market? (A) Ambuja (C) Binani (B) Birla Uttam (D) Ultra tech

Q.12 Are you satisfy with the Distribution strategy of the company? (A) Yes (B) No

Q.13 Any Suggestion:___________________________________________________________ ___________________________________________________________ ___________________________________________________________

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Signature:

Date:

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