CHAPTER-I

Introduction
Need for study
Objectives of the study
Methodology
Limitations of the study

INTRODUCTION
Definition:
Consumer behavior involves study of how people buy, what they buy, when they buy.
It also tries to assess the influence on the consumer from groups such as family, friends,
reference groups and society in general.
Buyer behavior has two aspects: the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of complex
variables not visible to anyone.
What influences consumers to purchase products or services? The consumer buying
process is a complex matter as many internal and external factors have an impact on the
buying decisions of the consumer.
When purchasing a product there several processes, which consumers go through.
These will be discussed below.

Purchase decision
The evaluation process discussed above consumers will reach their final purchase
decision and they reach the final process of going through the purchase action e.g. The
process of going to the shop to buy the product, which for some consumers can be as just as
rewarding as actually purchasing the product. Purchase of the product can either be through
the store, the web, or over the phone.

Post Purchase Behavior

Ever have doubts about the product after you purchased it? This simply is post
purchase behavior and research shows that it is a common trait amongst purchasers of
products. Manufacturers of products clearly want recent consumers to feel proud of their
purchase, it is therefore just as important for manufacturers to advertise for the sake of their
recent purchaser so consumers feel comfortable that they own a product from a strong and
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reputable organization. This limits post purchase behavior. I.e. you feel reassured that you
own the latest advertised product.
Factors influencing the behavior of buyers
Consumer behavior is affected by many uncontrollable factors. Just think, what
influences you before you buy a product or service? Your friends, your upbringing, your
culture, the media, a role model or influences from certain groups?
Culture is one factor that influences behavior. Simply culture is defined as our
attitudes and beliefs. But how are these attitudes and beliefs developed? As an individual
growing up, a child is influenced by their parents, brothers, sister and other family member
who may teach them what is wrong or right. They learn about their religion and culture,
which helps them develop these opinions, attitudes and beliefs (AIO). These factors will
influence their purchase behavior however other factors like groups of friends, or people they
look up to may influence their choices of purchasing a particular product or service.
Reference groups are particular groups of people some people may look up towards to that
have an impact on consumer behavior. So they can be simply a band like the Spice Girls or
your immediate family members. Opinion leaders are those people that you look up to
because your respect their views and judgments and these views may influence consumer
decisions. So it maybe a friend who works with the IT trade who may influence your decision
on what computer to buy. The economic environment also has an impact on consumer
behavior; do consumers have a secure job and a regular income to spend on goods?
Marketing and advertising obviously influence consumers in trying to evoke them to
purchase a particular product or service.
Peoples social status will also impact their behavior. What is their role within society?
Are they Actors? Doctors? Office worker? And mothers and fathers also? Clearly being
parents affects your buying habits depending on the age of the children, the type of job may
mean you need to purchase formal clothes; the income which is earned has an impact. The
life Performance of someone who earns 250000 would clearly be different from someone
who earns 25000. Also characters have an influence on buying decision. Whether the person
is extrovert (out going and spends on entertainment) or introvert (keeps to themselves and
purchases via online or mail order) again has an impact on the types of purchases made.

Maslows Hierarchy of Needs

Abraham Maslow hierarchy of needs theory sets out to explain what motivated
individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests
individuals aim to meet basic psychological needs of hunger and thirst. When this has been
met they then move up to the next stage of the hierarchy, safety needs, where the priority lay
with job security and the knowing that an income will be available to them regularly. Social
needs come in the next level of the hierarchy, the need to belong or be loved is a natural
human desire and people do strive for this belonging. Esteem need is the need for status and
recognition within society, status sometimes drives people, the need to have a good job title
and be recognized or the need to wear branded clothes as a symbol of status.
But how does this concept help an organization trying to market a product or service?
Well as we have established earlier within this website, marketing is about meeting needs and
providing benefits, Maslows concept suggests that needs change as we go along our path of
striving for self-actualization. Supermarket firms develop value brands to meet the
psychological needs of hunger and thirst. Harrods develops products and services for those
who want have met their esteem needs. So Maslows concept is useful for marketers as it can
help them understand and develop consumer needs and wants.

NEED FOR THE STUDY

Customers consider various factors before purchasing any product. The factors they c
onsider are based on certain demographic variables such as income, age, occupation, etc.
It also depends on attributes and Performance of the item. Customer buying behavior has
becomes essential to get a competitive edge. Following are the things consumer will look
before purchasing a product.
Consumers search for those things that suit their needs in the product.
Consumers evaluate the products by comparing them before they buy.
Consumers identify the reasons for dissatisfaction before purchasing the product.
What kinds of promises the company made in advertising their products.
The following are the questions that are to be posed before making a consumer to buy a
product.

How consumers search for things that they need.

How consumers evaluate the products that they buy.

What is the impact on dissatisfaction on consumer purchases?

How do consumers make purchase decisions?

What kinds of advertising is the most effective

OBJECTIVES OF THE STUDY

1. To study the buying motives of the customers regarding purchasing of Kesoram

Cement
2. To gain an understanding of the theories and concepts of Buyer Behavior
3. To find the reason for purchasing Kesoram Cement
4. To know the importance the respondents give to each factor while Purchasing Cement
in Kesoram
5. To know the customer satisfaction towards Kesoram Cement
6. To know the customer brand awareness

RESEARCH MOTHDOLOGY
SOURCES OF DATA:
PRIMARY METHOD:
Primary data are those, which are collected fresh and for the first time and this happen
to be original in character. In this study primary data was collected by interview schedule
method.
SECONDARY METHOD:
Secondary data are those, which are collected from existing data. Secondary data for
this study include appropriate material from newspaper, Magazines, Broachers, Company
Reports, Standard Text Books, and information from Internet has also been acquired
wherever necessary.
DATA COLLECTION INSTRUMENTS:
The instrument used for this study is an interview schedule. Questions related to
objectives of the study from the major portion of the interview schedule. It mainly consists
of multiple-choice questions so that the respondents can mark one or more of the several
choice of answers. Secondary data has been gathered from many published sources such as
Newspapers, Journals, Magazines, Company Reports, standard textbooks and information
from Internet has also been acquired wherever necessary.
FIELD WORK:
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The project involved a fieldwork of around 1 month 15 days where in the survey was
carried out of around
The survey was conducted in different of Hyderabad and secunderabad such as Koti,
bowenpally, Ameer pet, L.B Nagar, Picket.
METHODOLOGICAL ASSUMPTIONS:
The primary data has been collected by an interview schedule.
The sample for the study was selected on a convenience basis
All primary data collected is true and reflects the actual actions of the respondents.
The data collected has been coded, tabulated and analyzed into logical Statement using
simple statistical methods, pie charts, etc.
DESCRIPTION OF THE RESEARCH DESIGN:
A research design is a logical and systematic plan prepared for directing a research
study it specifies the methodology and technique to be adopted for achieving the objectives.
It constitutes the blueprint for the collection, measurement and analysis of data.
The main aim of the study is to evaluate the brand image of KESORAM. The
study is descriptive in nature. Surveys are best-suited method for descriptive research. So
survey method is used for the study.
The preparation of a research plan for a study aids in establishing direction to the
study and knowing exactly what has to be done and how and when it has to be done at every
stage.
A research plan describes the boundaries of research activities and enables the
research to channel his energies in the right work. With clear research objectives, in view the
research can proceed systematically towards his achievements.
SAMPLING PROCEDURES:
Sampling is a systematic approach for selecting a few elements from an entire collection of
units (population) in order to make some inference about the total population it is a small
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specimen or a segment of the whole population representing its general qualities as for as
possible. The study was undertaken by convenience sampling.
CONVENIENCE SAMPLE:
Convenience sampling is a non-profitability sampling. T means selecting sample
units in just hit and miss fashion i.e., interviewing people whom you happen to meet.
SAMPLE SIZE:
The study is conducted on a sample of 100 respondents.

LIMITATIONS
1. The time period of project is 45 days.
2. Though the customers wanted to give information they could not give as it wastes
their business time.
3. The accuracy of the answers depends upon the mode of interest of respondents.
4. Though the customers wanted to give information they could not, as they felt it takes
away their business time.
5. The accuracy of the answers depends upon the mode of interest of respondents.
6. The opinions of the sample may or may not depict the exact opinions of the total
population.

CHAPTER-II
INDUSTRY PROFILE
&
COMPANY PROFILE

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11

INDUSTRY PROFILE
The Indian cement industry is directly related to the country's infrastructure sector and
thus its growth is paramount in determining the development of the country. With a current
production capacity of around 366 million tonnes (MT), India is the second largest producer
of cement in the world and fueled by growth in the infrastructure sector, the capacity is
expected to increase to around 550 MT by FY20.
India has a lot of potential for development in the infrastructure and construction
sector and the cement sector is expected to largely benefit from it. Some of the recent major
government initiatives such as development of 100 smart cities are expected to provide a
major boost to the sector.
Expecting such developments in the country and aided by suitable government
foreign policies, several foreign players such as the likes of Lafarge, Holcim and Vicat have
invested in the country in the recent past. Another factor which aids the growth of this sector
is the ready availability of the raw materials for making cement, such as limestone and coal.
Market Size
According to data released by the Department of Industrial Policy and Promotion
(DIPP), cement and gypsum products attracted foreign direct investment (FDI) worth US$
2,984.29 million between April 2000 and September 2014.
In India, the housing sector is the biggest demand driver of cement, accounting for
about 67 per cent of the total consumption. The other major consumers of cement include
infrastructure at 13 per cent, commercial construction at 11 per cent and industrial
construction at nine per cent.
To meet the rise in demand, cement companies are expected to add 56 MT capacity
over the next three years. The cement capacity in India may register a growth of eight per
cent by next year end to 395 MT from the current level of 366 MT. It may increase further to
421 MT by the end of 2017. The country's per capita consumption stands at around 190 kg.
A total of 188 large cement plants together account for 97 per cent of the total
installed capacity in the country, while 365 small plants account for the rest. Of these large
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cement plants, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. The
Indian cement industry is dominated by a few companies. The top 20 cement companies
account for almost 70 per cent of the total cement production of the country.
INVESTMENT
On the back of growing demands, due to increased construction and infrastructural
activities, the cement sector in India has seen many investments and developments in recent
times. Some of them are as follows:
Lafarge and Holcim plans to request for the European Commission's approval for
their possible merger. The two companies had earlier unveiled plans in April 2014 to create
the world's biggest cement group with US$ 44 billion in yearly sales.
JSW cement plans to enter the Kerala market to cash in on the construction frenzy in
the state. JSW is presently building a three million tonnes per annum (MTPA) capacity plant
at Chitrapur in Karnataka to add to the current 5.4 MTPA capacity in South India.
Zuari Cement through its subsidiary Gulbarga Cement Limited (GCL) plans to set up
a 3.23 MT cement plant in Gulbarga, Karnataka. The company along with the cement plant is
setting up a 50 MW captive power plant in the region.
Malabar Cements plans to set up an automated cement handling and bagging unit as
well as raw materials import facility in the Kochi port. Malabar Cements has projected a
minimum throughput of 300,000 tonnes per annum which can be extendable up to 600,000
tonnes per annum, apart from intermediate products and raw materials such as clinker,
limestone and coal.
Reliance Cement Company (RCC), a subsidiary of Reliance Infrastructure, has
entered into the cement market of Bihar where the demand for the building material is on the
rise due to a realty boom. RCC presently has plants with total installed capacity of 5.8 MTPA.
GOVERNAMENT INITIATIVES
In the 12th FiveYear Plan, the government plans to increase investment in
infrastructure to the tune of US$ 1 trillion and increase the industry's capacity to 150 MT.

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The Cement Corporation of India (CCI) was incorporated by the Government of India
in 1965 to achieve self-sufficiency in cement production in the country. Currently, CCI has 10
units spread over eight states in India.
In order to help the private sector companies thrive in the industry, the government
has been approving their investment schemes. Some such initiatives by the government in the
recent past are as follows:
The Andhra Pradesh State Investment Promotion Board (SIPB) has approved
proposals worth Rs 9,200 crore (US$ 1.48 billion) including three cement plants and
concessions to Hero MotoCorp project. The total capacity of these three cement plants is
likely to be about 12 MT per annum and the plants are expected to generate employment for
nearly 4,000 people directly and a few thousands more indirectly.
India has joined hands with Switzerland to reduce energy consumption and develop
newer methods in the country for more efficient cement production, which will help India
meet its rising demand for cement in the infrastructure sector.
The Government of India has decided to adopt cement instead of bitumen for the
construction of all new road projects on the grounds that cement is more durable and cheaper
to maintain than bitumen in the long run.
Road Ahead
With the Government of India providing a boost to the infrastructure and various
housing projects coming up in urban as well as rural areas, the cement sector has enough
scope for development in the future.
Market Size
The Indian cement sector is expected to witness positive growth in the coming years,
with demand set to increase at a CAGR of more than 8 per cent in the period FY 2013-14 to
FY 2015-16, according to the latest report titled Indian Cement Industry Outlook 2016 by
market research consulting firm RNCOS. The report further observed that Indias southern
region is creating the maximum demand for cement, which is expected to increase more in
future.

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The cement and gypsum products sector has attracted foreign direct investments
(FDI) worth US$ 2,656.29 million in the period April 2000August 2013, according to data
published by the Department of Industrial Policy and Promotion (DIPP).
Investments
Prism Cement Ltd has become the first Indian company to get the Quality Council of
India's (QCI) certification for its ready-mix concrete (RMC) plant in Kochi, Kerala. The
company received the certification from Institute for Certification and Quality Mark (ICQM),
a leading Italian certification body authorised to oversee QCI compliance.
UltraTech Cement, an Aditya Birla Group Company, has acquired the 4.8 million
tonne per annum (MTPA) Gujarat unit of Jaypee Cement Corp for Rs 3,800 crore (US$
595.61 million).
ACC Ltd plans to invest Rs 3,000 crore (US$ 470.22 million) to expand its capacity
by nearly 4 MT a year in three eastern region states, over the next three years.
Reliance Cements Co Pvt Ltd will set up a 3 MTPA grinding unit at an estimated cost
of Rs 600 crore (US$ 94.04 million). The unit is likely to come up at Raghunathpur in
Purulia, West Bengal.
Reliance Cement Co, a special purpose vehicle (SPV) of Reliance Infrastructure Ltd,
is commissioning its first 5 MTPA plant in Madhya Pradesh. The project has been
implemented at a cost of approximately Rs 3,000 crore (US$ 470.22 million).
Zuari Cement plans to set up a cement grinding unit at Auj (Aherwadi) and
Shingadgaon villages in Solapur, Maharashtra. The new unit will have a production capacity
of 1 MTPA and is expected to be operational by the second quarter of 2015.
JSW Steel has acquired Heidelberg Cement India's 0.6 MTPA cement grinding facility
in Raigad, Maharashtra, for an undisclosed amount.
Government Initiatives
Giving impetus to the market, the Indian government plans to roll out public-private
partnership (PPP) projects worth Rs 1 trillion (US$ 15.67 billion) over the next six months.
The Principal Secretary in the Prime Minister's Office (PMO) will monitor these projects.
15

Also, the steering group appointed by Dr Manmohan Singh, Prime Minister of India,
to accelerate infrastructure investments, has set deadlines for the awarding of projects such as
Mumbai rail corridor and Navi Mumbai Airport, among others.
The Goa State Pollution Control Board (GSPCB) has signed a memorandum of
understanding (MoU) with Vasavdatta Cement, a company with its plant in Karnataka. The
firm would use the plastic waste collected by the state agencies and village panchayats from
Goa as fuel for its manufacturing plant.
Road Ahead
The globally-competitive cement industry in India continues to witness positive trends
such as cost control, continuous technology upgradation and increased construction activities.
Furthermore, major cement manufacturers in India are progressively using other
alternatives such as bioenergy as fuel for their kilns. This is not only helping to bring down
production costs of cement companies, but is also proving effective in reducing emissions.
With the ever-increasing industrial activities, real estate, construction and
infrastructure, in addition to the various Special Economic Zones (SEZs) being developed
across the country, there is a demand for cement.
It is estimated that the country requires about US$ 1 trillion in the period FY 2012-13
to FY 2016-17 to fund infrastructure such as ports, airports and highways to boost growth,
which promises a good scope for the cement industry.
The 4th Annual India Cement Sector Business Sentiment Survey is nearly out and the
India Construction & Building Materials Journal provides the opportunity of an exclusive
look at the surveys results before their sharing with the wider audiences. We are glad to be
able to present here some of the survey highlights and provide our readers with before-hand
data regarding the views and expectations of cement industry professionals.
Optimism continues to be the name of the game for the Indian cement industry a
function of long-term trends as well as human nature. But on a closer look, the survey shows
that the optimism only runs skin deep and that it has already been eroded by an increasing
percentage of industry members who feel dissatisfied with the overall performance of the
field last year.
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For instance, the percentage of those who believe the industry performed well
dropped from 43 percent in 2012 to 26 percent in 2013, while the number of respondents who
believe the industry performed poorly almost tripled from 8 percent last year to 22 percent in
2013. Regarding the future evolution of the industry, survey participants continue to be on the
optimistic side and hope for a somewhat better or much better performance compared to
the last 6 months.
China tackles pollution and overcapacity
2013 has been the year that China's central planners took action against cement
production overcapacity and pollution. Consolidation plans for the industry followed falling
profits for cement producers in 2012. However, record air pollution levels in Beijing in early
2013 shut the city down, raised public awareness and gave the government a strong lever to
encourage further industry consolidation through environmental controls. By the middle of
year profits of major producers were up but production was also up. Finally in December
2013, China started to launch its emissions trading schemes (ETS), led by Guangdong
province, to create what will be the second largest carbon market in the world after the EU
ETS.
India faces a sticky wicket
Mean while, the world's second largest cement producing country has faced poor
profits and growth for cement producers blamed on paltry demand, piddling prices and
proliferating production costs. Compounding that, the Indian Rupee fell to a historic low
relative to the US Dollar in mid-2013, further putting pressure on input costs. Holcim reacted
to all of this by releasing plans to simplify its presence in the country between Holcim India,
Ambuja and ACC.
Sub-Saharan Africa draws up the battle lines
Competition in sub-Saharan Africa is set to intensify when Nigeria's Dangote
Cement opens its first cement plant in South Africa in early 2014. It is the first time Africa's
two largest cement producers, Dangote and South Africa's PPC, will produce cement in the
same country. Future clashes will follow across the region as each producer increasingly
advances toward the other.

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The Kingdom needs cement... and workers

Saudi Arabian infrastructure demands have created all sorts of reverberations across
the Middle Eastern cement industry and beyond as the nation pushes on to build its six
'economic' cities amongst other projects. Back in April 2013 King Abdullah bin Abdulaziz Al
Saud of Saudi Arabia issued an edict ordering the import of 10Mt of cement. Then some
producers started to report production line shutdowns in the autumn of 2013 as they buckled
under the pressure, although they consoled themselves with solid profit rises. Now, cement
sales have fallen following a government crackdown on migrant workers that has hit the
construction sector.
Competition concerns in Europe
Europe may be slowly emerging from the economic gloom but anti-trust regulators
have remained vigilant. An asset swap between Cemex and Holcim over units in the Czech
Republic, Germany and Spain has received attention from the European Commission. In the
UK the Competition Commission has decreed that further action is required for the cement
sector following the creation of new player Hope Construction Materials in 2012. Lafarge
Tarmac may now have to sell another one of its UK cement plants to increase more
competition into the market. Elsewhere in Europe, Belgium regulators took action in
September 2013 and this week we report on Polish action against cartel-like activity.
Don't forget South-East Asia, Brazil or Russia!
Growth continues to dominate these regions and major sporting tournaments are on
the way in Brazil and Russia, further adding to local cement demand. Votorantim may have
cancelled its US$4.8bn initial public offering in August 2013 but it is still has the highest
cement production capacity in Brazil. Finally, Indonesia may not have had any 'marquee'
style story to sum up 2013 but it continues to regularly announce cement plant builds. In July
2013 the Indonesian Cement Association announced that cement sales growth had fallen to
'just' 7.5% for the first half of 2013.
In the most general sense of the word, a cement is a binder, a substance which sets
and hardens independently, and can bind other materials together. The word "cement" traces
to the Romans, who used the term "opus caementicium" to describe masonry which
resembled concrete and was made from crushed rock with burnt lime as binder. The volcanic
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ash and pulverized brick additives which were added to the burnt lime to obtain a hydraulic
binder were later referred to as cementum, cimentum, cment and cement. Cements used in
construction are characterized as hydraulic or non-hydraulic.
The most important use of cement is the production of mortar and concretethe
bonding of natural or artificial aggregates to form a strong building material which is durable
in the face of normal environmental effects.
Concrete should not be confused with cement because the term cement refers only to
the dry powder substance used to bind the aggregate materials of concrete. Upon the addition
of water and/or additives the cement mixture is referred to as concrete, especially if
aggregates have been added.
It is uncertain where it was first discovered that a combination of hydrated nonhydraulic lime and a pozzolan produces a hydraulic mixture (see also: Pozzolanic reaction),
but concrete made from such mixtures was first used on a large scale by Roman
engineers.They used both natural pozzolans (trass or pumice) and artificial pozzolans (ground
brick or pottery) in these concretes. Many excellent examples of structures made from these
concretes are still standing, notably the huge monolithic dome of the Pantheon in Rome and
the massive Baths of Caracalla. The vast system of Roman aqueducts also made extensive use
of hydraulic cement. The use of structural concrete disappeared in medieval Europe, although
weak pozzolanic concretes continued to be used as a core fill in stone walls and columns.
Modern cement

Modern hydraulic cements began to be developed from the start of the Industrial
Revolution (around 1800), driven by three main needs:

Hydraulic renders for finishing brick buildings in wet climates

Hydraulic mortars for masonry construction of harbor works etc, in contact with sea
water.

Development of strong concretes.

In Britain particularly, good quality building stone became ever more expensive

during a period of rapid growth, and it became a common practice to construct prestige
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buildings from the new industrial bricks, and to finish them with a stucco to imitate stone.
Hydraulic limes were favored for this, but the need for a fast set time encouraged the
development of new cements. Most famous was Parker's "Roman cement." This was
developed by James Parker in the 1780s, and finally patented in 1796. It was, in fact, nothing
like any material used by the Romans, but was a "Natural cement" made by burning septaria nodules that are found in certain clay deposits, and that contain both clay minerals and
calcium carbonate. The burnt nodules were ground to a fine powder. This product, made into
a mortar with sand, set in 515 minutes. The success of "Roman Cement" led other
manufacturers to develop rival products by burning artificial mixtures of clay and chalk.
John Smeaton made an important contribution to the development of cements when
he was planning the construction of the third Eddystone Lighthouse (1755-9) in the English
Channel. He needed a hydraulic mortar that would set and develop some strength in the
twelve hour period between successive high tides. He performed an exhaustive market
research on the available hydraulic limes, visiting their production sites, and noted that the
"hydraulicity" of the lime was directly related to the clay content of the limestone from which
it was made. Smeaton's work, the same principle was identified by Louis Vicat in the first
decade of the nineteenth century. Vicat went on to devise a method of combining chalk and
clay into an intimate mixture, and, burning this, produced an "artificial cement" in 1817.
James Frost,orking in Britain, produced what he called "British cement" in a similar manner
around the same time, but did not obtain a patent until 1822. In 1824, Joseph Aspdin patented
a similar material, which he called Portland cement, because the render made from it was in
color similar to the prestigious Portland stone.
All the above products could not compete with lime/pozzolan concretes because of
fast-setting (giving insufficient time for placement) and low early strengths (requiring a delay
of many weeks before formwork could be removed). Hydraulic limes, "natural" cements and
"artificial" cements all rely upon their belite content for strength development. Belite
develops strength slowly. Because they were burned at temperatures below 1250 C, they
contained no alite, which is responsible for early strength in modern cements. The first
cement to consistently contain alite was made by Joseph Aspdin's son William in the early
1840s. This was what we call today "modern" Portland cement. Because of the air of mystery
with which William Aspdin surrounded his product, others (e.g. Vicat and I C Johnson) have
claimed precedence in this invention, but recent analysis of both his concrete and raw cement
20

have shown that William Aspdin's product made at Northfleet, Kent was a true alite-based
cement. However, Aspdin's methods were "rule-of-thumb": Vicat is responsible for
establishing the chemical basis of these cements, and Johnson established the importance of
sintering the mix in the kiln.
William Aspdin's innovation was counter-intuitive for manufacturers of "artificial
cements", because they required more lime in the mix (a problem for his father), because they
required a much higher kiln temperature (and therefore more fuel) and because the resulting
clinker was very hard and rapidly wore down the millstones which were the only available
grinding technology of the time. Manufacturing costs were therefore considerably higher, but
the product set reasonably slowly and developed strength quickly, thus opening up a market
for use in concrete. The use of concrete in construction grew rapidly from 1850 onwards, and
was soon the dominant use for cements. Thus Portland cement began its predominant role. it
is made from water and sand
Types of modern cement
Portland cement
Cement is made by heating limestone (calcium carbonate), with small quantities of
other materials (such as clay) to 1450C in a kiln, in a process known as calcination, whereby
a molecule of carbon dioxide is liberated from the calcium carbonate to form calcium oxide,
or lime, which is then blended with the other materials that have been included in the mix .
The resulting hard substance, called 'clinker', is then ground with a small amount of gypsum
into a powder to make 'Ordinary Portland Cement', the most commonly used type of cement
(often referred to as OPC).
Portland cement is a basic ingredient of concrete, mortar and most non-speciality
grout. The most common use for Portland cement is in the production of concrete. Concrete
is a composite material consisting of aggregate (gravel and sand), cement, and water. As a
construction material, concrete can be cast in almost any shape desired, and once hardened,
can become a structural (load bearing) element. Portland cement may be gray or white.

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Portland cement blends

These are often available as inter-ground mixtures from cement manufacturers, but
similar formulations are often also mixed from the ground components at the concrete mixing
plant.
Portland blast furnace cement
It contains up to 70% ground granulated blast furnace slag, with the rest Portland
clinker and a little gypsum. All compositions produce high ultimate strength, but as slag
content is increased, early strength is reduced, while sulfate resistance increases and heat
evolution diminishes. Used as an economic alternative to Portland sulfate-resisting and lowheat cements.
Portland flyash cement
It contains up to 30% fly ash. The fly ash is pozzolanic, so that ultimate strength is
maintained. Because fly ash addition allows a lower concrete water content, early strength
can also be maintained. Where good quality cheap fly ash is available, this can be an
economic alternative to ordinary Portland cement.
Portland pozzolan cement
It includes fly ash cement, since fly ash is a pozzolan, but also includes cements made
from other natural or artificial pozzolans. In countries where volcanic ashes are available (e.g.
Italy, Chile, Mexico, the Philippines) these cements are often the most common form in use.
Portland silica fume cement.
Addition of silica fume can yield exceptionally high strengths, and cements
containing 5-20% silica fume are occasionally produced. However, silica fume is more
usually added to Portland cement at the concrete mixer.
Masonry cements
Masnory cements are used for preparing bricklaying mortars and stuccos, and must
not be used in concrete. They are usually complex proprietary formulations containing
Portland clinker and a number of other ingredients that may include limestone, hydrated lime,
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air entrainers, retarders, waterproofers and coloring agents. They are formulated to yield
workable mortars that allow rapid and consistent masonry work. Subtle variations of
Masonry cement in the US are Plastic Cements and Stucco Cements. These are designed to
produce controlled bond with masonry blocks.
Expansive cements
Expansive cements contain, in addition to Portland clinker, expansive clinkers
(usually sulfoaluminate clinkers), and are designed to offset the effects of drying shrinkage
that is normally encountered with hydraulic cements. This allows large floor slabs (up to 60
m square) to be prepared without contraction joints.
White blended cements
It may be made using white clinker and white supplementary materials such as highpurity metakaolin.
Colored cements
They are used for decorative purposes. In some standards, the addition of pigments to
produce "colored Portland cement" is allowed. In other standards (e.g. ASTM), pigments are
not allowed constituents of Portland cement, and colored cements are sold as "blended
hydraulic cements".
Very finely ground cements
These are made from mixtures of cement with sand or with slag or other pozzolan
type minerals which are extremely finely ground together. Such cements can have the same
physical characteristics as normal cement but with 50% less cement particularly due to their
increased surface area for the chemical reaction. Even with intensive grinding they can use up
to 50% less energy to fabricate than ordinary Portland cements.
Non-Portland hydraulic cements
Pozzolan-lime cements.
Mixtures of ground pozzolan and lime are the cements used by the Romans, and are
to be found in Roman structures still standing (e.g. the Pantheon in Rome). They develop
23

strength slowly, but their ultimate strength can be very high. The hydration products that
produce strength are essentially the same as those produced by Portland cement.
Slag-lime cements.
Ground granulated blast furnace slag is not hydraulic on its own, but is "activated" by
addition of alkalis, most economically using lime. They are similar to pozzolan lime cements
in their properties. Only granulated slag (i.e. water-quenched, glassy slag) is effective as a
cement component.
Supersulfated cements.
These contain about 80% ground granulated blast furnace slag, 15% gypsum or
anhydrite and a little Portland clinker or lime as an activator.
They produce strength by formation of ettringite, with strength growth similar to a
slow Portland cement. They exhibit good resistance to aggressive agents, including sulfate.
Calcium aluminate cements
Calcium aluminate cements are hydraulic cements made primarily from limestone and
bauxite. The active ingredients are monocalcium aluminate CaAl2O4 (CaO Al2O3 or CA in
Cement chemist notation, CCN) and mayenite Ca12Al14O33 (12 CaO 7 Al2O3 , or C12A7
in CCN). Strength forms by hydration to calcium aluminate hydrates. They are well-adapted
for use in refractory (high-temperature resistant) concretes, e.g. for furnace linings.
Calcium sulfoaluminate cements
Calcium sulfoalumminate cements are made from clinkers that include ye'elimite
(Ca4(AlO2)6SO4 or C4A3

in Cement chemist's notation) as a primary phase. They are

used in expansive cements, in ultra-high early strength cements, and in "low-energy"

cements. Hydration produces ettringite, and specialized physical properties (such as
expansion or rapid reaction) are obtained by adjustment of the availability of calcium and
sulfate ions. Their use as a low-energy alternative to Portland cement has been pioneered in
China, where several million tonnes per year are produced. Energy requirements are lower
because of the lower kiln temperatures required for reaction, and the lower amount of
limestone (which must be endothermically decarbonated) in the mix. In addition, the lower
24

limestone content and lower fuel consumption leads to a CO2 emission around half that
associated with Portland clinker. However, SO2 emissions are usually significantly higher.
"Natural" Cements
Natural cements correspond to certain cements of the pre-Portland era, produced by
burning argillaceous limestones at moderate temperatures. The level of clay components in
the limestone (around 30-35%) is such that large amounts of belite (the low-early strength,
high-late strength mineral in Portland cement) are formed without the formation of excessive
amounts of free lime. As with any natural material, such cements have highly variable
properties.
Geopolymer cements
Geopolymer cements are made from mixtures of water-soluble alkali metal silicates
and aluminosilicate mineral powders such as fly ash and metakaolin.

25

COMPANY PROFILE
Kesoram Industries Limited ("KIL") was incorporated as a public company under the
name Kesoram Cotton Mills Limited ("KCML") as per the provisions of the Indian
Companies Act, 1913 and received a Certificate of Incorporation dated 18 October 1919 from
the Registrar of Companies, West Bengal ("ROC"). The name of KCML was altered to
'Kesoram Industries and Cotton Mills Limited ("KICM") effective 30th August, 1961.
Through a Fresh Certificate of Incorporation consequent on change of Name obtained from
the ROC. The name of KICM was altered to KIL effective 9th July, 1986.
For over 40 years, Birla Shakti has helped laid the foundations of buildings
everywhere. From schools and homes, to hospitals and skyscrapers, Birla Shakti helps build
the dreams of people. When the safety of people depends on your product, you know that
quality is of upmost importance. That is why Birla Shakti practices Total Productivity
Maintenance (TPM). Combining the key principles of plant utilization, quality management
and downtime minimisation, every stakeholders aim is to achieve zero product defects, zero
equipment unplanned failures and zero accidents.
To support Birla Shaktis production capabilities, a network of 491 sales engineers
and 1,544 dealers are located conveniently throughout the region, so that every customers
need can be met.
Birla Shaktis quality and efficiency is certified by the International Organisation for
Standardisation for its world-class standards. Learn more about our certifications below.
Certification for conformation with the occupational health and safety management system in
accordance with IS/ISO 18001 : 2007 for Kesoram Cement Plant.2 November 2014
Certification for conforming with the environmental management system in accordance with
IS/ISO 14001 : 2004 for Kesoram Cement Plant.7 August 2013

Certification for

conformation with the quality management system in accordance with IS/ISO 9001 : 2008 for
Kesoram Cement Plant.31 October 2014.
Under the cement division of Kesoram Industries Limited, Birla Shakti manufactures
and sells cement. We are widely recognised for our quality, strength and technology, which
has enabled us to build strong working relationships and gain the trust of our customers and

26

builders. As a mark of our quality management best practices, we have been certified an ISO
9001 company.
Birla Shakti has two cement manufacturing plants located at Sedam, Karnataka (the
"Vasavadatta Cement Plant") and Basantnagar, Andhra Pradesh (the "Kesoram Cement
Plant"). Our cement business has been in operation for over 40 years, catering to the regional
demands predoimnently in Karnataka, Andhra Pradesh and Maharashtra. Our plants are
strategically located near our leased limestone deposits in the states of Karnataka and Andhra
Pradesh. Presently, we have a combined total installed capacity of 7.25 million MT.
MISSION / VISION
MISSION
To inspire and touch lives through our services and products.
VISION
We Endeavour to shape tomorrows urban landscape and provide a better quality of
living for all mankind.
Following are some of the key events and milestones in relation to KIL:
KIL has diversified business interests in various sectors including tyres, cement and
rayon. It owns and operates two integrated tyre manufacturing plants located at Balasore,
Odisha (the "Balasore Tyre Plant") and Haridwar, Uttarakhand (the "Laksar Tyre Plant") with
a combined total installed capacity of 298,660 MT of tyres as of 31 March 2013. The tyres
are marketed under the brand name "Birla Tyres".
KIL is setting up a new manufacturing unit at its Balasore Tyre Plant for the
production of passenger car radial tyres. Once completed, this new capacity will make KIL
one of the few tyre companies in India that would be able to offer a complete range of tyres
across all vehicle sectors. KIL's Laksar Tyre Plant is at present exempt from excise duty on
tyres manufactured and sold. This exemption expires on various dates between 27th March,
2018 and 9th March, 2020 depending upon commencement of operations of individual units
of the plant.

27

KIL owns and operates two cement manufacturing plants, located at Sedam,
Karnataka (the "Vasavadatta Cement Plant") and Basantnagar, Andhra Pradesh (the "Kesoram
Cement Plant"). Its cement business has enjoyed an operating history of over 40 years,
catering to regional demands in Karnataka, Andhra Pradesh and Maharashtra. The plants are
strategically located near limestone deposits in the states of Karnataka and Andhra Pradesh
and have a combined total installed capacity of 7.25 million MT of Cement as of 31 March
2013. Its cement grinding units are also located close to captive power plants. Further, KIL
procures much of its fly ash from NTPC which has power plants in close proximity to both
the Vasavadatta Cement Plant and Kesoram Cement Plant. Cement produced at the plants is
marketed under the brand names "Birla Shakti" and "Vasavadatta Cement".
All KIL Businesses maintain separate marketing and distribution networks.
KIL also manufactures viscose rayon, filament yarn and transparent paper at its plant
at Tribeni, District Hooghly, West Bengal. The rayon is marketed under the brand name
"Kesoram Rayon", while transparent paper is marketed under the brand name "Kesophane".
The tyre, cement and rayon (including transparent paper and chemicals) business
operations contributed 59.3%, 35.2% and 5.5%, respectively, of KIL's total revenues for the
year ended 31 March 2013.
KIL has also started expansion of its existing truck and bus radial tyre manufacturing
capacity at Laksar.
KIL's Equity Shares are currently listed on the Bombay Stock Exchange, National
Stock Exchange and Calcutta Stock Exchange in India. GDRs are listed on the Luxembourg
Stock Exchange.
Products
Cement
(1)One

MT

of

OPC

generally

contains

0.96

0.97

MT

of

clinker.

One MT of PPC generally contains 0.67 / 0.70 MT of clinker.

28

Rayon and Transparent Paper

KIL also manufactures viscose rayon filament yarn, transparent paper and other
related products. KIL currently manufactures deniers of varying thickness from 75 deniers to
700 deniers.
KIL's rayon and transparent paper plant is located Hooghly, West Bengal. Its rayon is
marketed under the brand name "Kesoram Rayon," while transparent paper is marketed under
the brand name "Kesophane".
KIL's tyre and cement sales have historically contributed a substantial part of its
revenue. It expect these businesses to continue contributing significantly to its overall
revenue. KIL also has active manufacturing operations in the fields of rayon and transparent
paper.
Tyres
KIL presently manufactures the following types of tyres under the "Birla Tyres" brand
truck and bus bias tyres;
truck and bus radial tyres;
farm tyres;
off-the-road vehicle tyres; and
two - and three - wheeler tyres.
A new manufacturing unit is under construction at the Balasore Tyre Plant for
manufacturing passenger car radials.
Truck and Bus Bias Tyres
KIL manufactures a comprehensive range of bias tyres for the truck and bus sectors.
The truck and bus bias tyres are marketed under four different categories, namely, high load,
high mileage, load and mileage, and load economy, catering to the various requirements of
customers. Truck and bus bias tyre sales accounted for approximately 64.3% and 66.9% of

29

KIL's total tyre and tyre-related product sales for the years ended 31 March 2012 and 2013,
respectively.
Truck and Bus Radial Tyres
KIL manufactures a comprehensive range of radial tyres for trucks and buses. It has
historically achieved higher gross margins from selling radial tyres as compared to bias tyres.
In recent years, KIL has been successful in realising its strategy to increase sales of radial
tyres. Radial tyre sales accounted for approximately 10.1% and 12.4% of our total tyre and
tyre-related product sales in the years ended 31 March 2012 and 2013, respectively.
Farm Tyres
KIL manufactures a wide range of tractor tyres for farm vehicles. Tractor tyre sales
accounted for approximately 2.7% and 2.6% of total tyre and tyre-related product sales for
the years ended 31 March 2012 and 2013, respectively.
Off-the-road Vehicle Tyres ("OTR")
KIL manufactures a wide range of OTR tyres, primarily for earth moving equipment
vehicles. OTR tyre sales accounted for approximately 0.8% and 1.1% of total tyre and tyrerelated product sales for the years ended 31 March 2012 and 2013, respectively.
Two - and three - wheeler Tyres
KIL manufactures a comprehensive range of two- and three-wheeler tyres. The sale of
two - and three - wheeler tyres has achieved higher margins compared to other tyre products.
Two - and three - wheeler tyre sales accounted for approximately 4.6% and 6.0% of total tyre
and tyre-related product sales in the financial years ended 31 March 2012 and 2013,
respectively.
Tubes and Flaps and others
KIL's tube product lines include pneumatic tubes for a wide range of trucks, buses,
two - and three - wheelers and farm vehicles. Tubes and flaps and others are produced at both
of the tyre plants. KIL's flap product lines include flaps for the trucks, buses, two - and three wheelers and farm vehicles. Sales of tubes and flaps and others accounted for approximately

30

17.5% and 11.1% of total tire and tyre-related product sales in the financial years ended 31
March 2012 and 2013.
Our business
We are part of one of the oldest conglomerates in India and were incorporated in
October 1919. Since 1924, we have been under the leadership of late G.D. Birla, late B.M.
Birla, and our current Promoter, Mr. B.K. Birla. We have diversified business interests in
various sectors including tyres, cement and rayon.
We are among the top five largest tyre manufacturing companies in India by
production volume for the year ended 31 March 2012 (Source : Automotive Tyre
Manufactures Association 2011-12 ("ATMA")). We own and operate two integrated tyre
manufacturing plants located at Balasore, Odisha (the "Balasore Tyre Plant") and Haridwar,
Uttarakhand (the "Laksar Tyre Plant") with a combined total installed capacity of 298,660
MT of tyres as of 31 March 2013. Our tyres are marketed under the brand name "Birla
Tyres".
We own and operate two cement manufacturing plants, located at Sedam, Karnataka
(the "Vasavadatta Cement Plant") and Basantnagar, Andhra Pradesh (the "Kesoram Cement
Plant"). Our cement business has enjoyed an operating history of over 40 years, catering to
the regional demands in Karnataka, Andhra Pradesh and Maharashtra. Our plants are
strategically located near our leased limestone deposits in the states of Karnataka and Andhra
Pradesh. We have a combined total installed capacity of 7.25 million MT as of 31 March
2013. Our cement is marketed under the brand name "Birla Shakti" and "Vasavadatta
Cement".
We maintain separate marketing and distribution networks for our tyre and cement
operations, comprising internal sales and marketing teams of 491 persons for tyre products
and 132 persons for cement products. We also have agreements with approximately 209 tyre
agents and 16 cement agents and a network of more than 8,831 tyre dealers and 1,544 cement
dealers as of 31 March 2013, who market our tyre and cement products. Our tyre products are
primarily distributed to purchasers located across India, while our cement and clinker is sold
regionally to purchasers located in Karnataka, Andhra Pradesh and Maharashtra.

31

In addition, we also manufacture viscose rayon, filament yarn and transparent paper.
Our rayon and transparent paper plant is located at Hooghly, West Bengal. Our rayon is
marketed under the brand name "Kesoram Rayon", while our transparent paper is marketed
under the brand name "Kesophane".
The tyre, cement and rayon (including transparent paper and chemicals) business
operations contributed 62.6%, 32.9% and 4.5%, respectively, of our total revenues for the
year ended 31 March 2012 and 59.3%, 35.2% and 5.5%, respectively, of our total revenues
for the year ended 31 March 2013. For the years ended 31 March 2012 and 2013, our loss
before tax was Rs. 710.3 crore and Rs. 377.2 crore, and our net loss for the year was Rs.
379.7 crore and Rs. 329.2 crore, respectively.
We plan to recommence construction of a new manufacturing unit at our Balasore
Tyre Plant for the production of passenger car radial tyres with an expected capacity of 80
MT per day, subject to certain regulatory approvals. See "-On going capacity expansion
initiative-Passenger car radial unit at Balasore Tyre Plant". We believe that this new capacity
when added will make us one of few tyre companies in India that is able to offer a complete
range of tyres across all vehicle sectors. We have also started expansion of our existing truck
and bus radial tyre manufacturing capacity. See "-On going capacity expansion initiativeTruck and bus radial expansion at Laksar Tyre Plant".
We own our registered office at 8th floor, Birla Building, 9/1, R.N. Mukherjee Road,
Kolkata 700 001, India. Our Equity Shares are currently listed on the BSE, NSE and CSE in
India. Our Equity Shares are currently not traded on the CSE. The GDRs of our Company are
listed on the Luxembourg Stock Exchange. The closing price of our Equity Shares on 21 May
2013 on the BSE was Rs. 73.95 per Equity Share and on the NSE was Rs. 74.15 per Equity
Share. As of 21 May 2013, our market capitalization on the BSE was Rs. 338.25 crore and on
the NSE was Rs. 339.17 crore.
The Board of Directors (the "Board") of the Company has adopted the following
Code of Business Conduct and Ethics (the "Code") for directors and senior Management
personnel of the Company. Senior Management personnel mean all members of the
management one level below the Board i.e. Sr. President/President of each Division of the
Company. This code is intended to focus on the Board members including each of the
executive directors and senior management personnel on areas of ethical risk, integrity and
32

honesty providing guidance to help them recognize and deal with ethical issues; mechanisms
to report unethical/dishonest conducts; and help foster a culture of honesty, integrity and
accountability.
The Code of Conduct as approved by the Board and subsequent amendments thereto
by the Board shall be posted on the Website of the Company.
INTERPRETATION OF CODE
In this code wherever the word "Director" is appearing, it also means and includes
senior management personnel to the extent applicable. Any question or interpretation under
this Code of Ethics and Business Conduct will be considered and dealt with by the Board or
any committee or any person authorized by the Board in this behalf. The Board or any
designated person/committee so authorised has the authority to waive compliance with this
Code of business conduct for any director, officer or employee of the Company. The personseeking waiver of this Code shall make full disclosure of the particular circumstances of the
case to the Board or the designated person/committee.
Any waiver of this Code as may be made by the Board and/or so authorised
person/committee shall be promptly posted on the Website of the company.
Each and every director and senior management personnel is expected to comply with
the letter and spirit of this Code.
I. CONFLICT OF INTEREST
Directors must avoid any conflicts of interest with the Company. Any situation that
involves, or may reasonably be expected to involve, a conflict of interest with the Company,
should be disclosed promptly to the Board. A "conflict of interest" can occur when :
i.

A director's personal interest is adverse to or may appear to be adverse to the

interests of the Company as a whole.

ii.

A director, or his/her relative, receives improper personal benefits as a result

of his/her position as a director of the Company.

Explanation : Relatives here means dependant-parents, brothers, sisters, spouse,
children, daughters-in-law and sons-in-law.
33

As illustrations only and being not exhaustive, some of the more common instances of
conflict of interest which directors should avoid, are listed below :
A .Relationship of Company with third parties
Directors shall not receive a personal benefit from a person or entity, which is seeking
to do business or to retain business with the Company. Shall not participate in any decision
making process of the Board involving another entity in which the director has direct or
indirect interest.
b. Compensation from non-Company sources
Directors shall not accept compensation (in any form) for services performed for the
Company from any source other than the Company.
c. Gifts
Directors shall not offer, give or receive gifts from persons or entities that deal with
the Company, where any such gift, is perceived as intended directly or indirectly to influence
the directors' actions as members of the Board, or where acceptance of such gift could create
the appearance of a conflict of interest.
d.Personal use of Company assets
Directors shall not use Company assets, labour or information for personal use.

34

CHAPTER-III
THEORITICAL FRAMEWORK

35

CUSTOMER GETTING SMARTER

A competitor, in order to achieve the loyalty of the customers, offer an endless
information flow on the products and services and thereby continuously educates the
customer about the opportunities in the market. Therefore today even an ordinary person, is
in possession of the large amount of data to use for the purpose of making a decision as to
which products/ services he would go in for. The competitive environment is making the
customer wisher day by day and he is able to take a large number of decisions on his own.
The experts advice of the olden days is being replaced by the customers own wisdom. This
is making the market place more complicated and unpredictable. The customer is getting
smarter today and he is able to decide his own moneys worth and therefore, organization
across the board are `pursuing the customers views to streamline their business strategies to
remain customer- worthy.
People are the prime factor for any organization to maintain the effectiveness and thus
develop the right focus for the people, so that each one perceives as clearly as possible his
position in the cycle of growth and prosperity of the organization. Agendas will have to be
drawn in such a manner and communicated so effectively that the individual is able to enjoy a
meaningful life in the organization, endowed with authority and responsibility for the role he
plays.
One should be able to see for oneself the impact of the contributions one has made
towards the growth and prosperity cycle of the organization.

As a matter of fact the

relationship between the people and the organization should be so designed that each one is
here to experience the pleasure of winning and pain of losing. People alone are of no
significance unless and until they have an intimate and continuous interaction with the
process.
Therefore organization have to take continuous care to update their quality of the
people and that of processes simultaneously so that a healthy relationship is built up and
maintained making the relationship happy and healthy one. This, when done, should generate
in people a sense of entrepreneurship ownership of the organization.

36

Since the customer are the main focus of any organization its structure should be so
flat i.e., people fluently interact with the customer and maintain continuous feedback about
the customers moods and methods in order to shape its business portfolio and strategies.

Start

Consumers Buyer Behavior:

Consumer buyer behavior is influenced by four keys sets of buyer characteristics;
cultural, social, personal, and psychological. Although many of these factors cannot be
influenced by the marketer, they can be useful in identifying interested buyers and in shaping
products and appeals to severe consumer needs better. Culture3 is the most basic determinant
of a persons wants and behavior. It includes the basic values, perceptions, preference, and
behavior \s that a person learns from family and other important instructions. Subcultures are
cultures within cultures that have a distinct values and lifePerformences and can be based
37

on anything from age to ethnicity.

People with different culture and sub culture

characteristics have different product and brand preferences. As a result, marketers may want
to faces their marketing programs on the special needs of certain groups.
Social factors influence buyers behavior. A persons reference group-family, friends,
social organizations, professional associations- strongly affect product and brand choices.
The buyers age, life-cycle stage, occupation, economic circumstances, lifePerformence,
personality, and other personal.

Characteristics influence his or her buying decisions.

Consumer life-Performences the pattern of acting and interacting in the world are also an
important influences on purchase decisions.
Finally, consumer-buying behavior is influenced by four major psychological factorsmotivation, perception, learning, and beliefs and attitudes. Each of these factors provides a
different perspective for understanding the workings of the buyers black box.

Need
Need Recognition
Recognition
Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological
Psychological
Factors
Factors
affect
affect
all
all steps
steps

Information
Information Search
Search
Evaluation
Evaluation
of
of Alternatives
Alternatives
Purchase
Purchase
Postpurchase
Postpurchase
Behavior
Behavior

38

CONSUMER PERCEPTION
It can be defined as the process by which an individual selects, organizes, and
interprets stimuli into a meaningful and coherent picture of the world. A stimulus is a unit of
input to any of the senses.

Examples of stimulus ie, sensory input include products,

packages, brand names, advertisements, and commercials, sensory receptor.

Marketers do not want their target audience to look only at the models in their ads.
They want to communicate something about their products as well. Marketers often use
attractive models,humour, other factors to attract the target markets interest. Information
processing is a series of activities by which stimuli are perceived, transformed in to
information, and stored. Information processing model has four major steps or stages,
a) Exposure\

c) Interpretation, and

b) Attention

d) Memory

39

The first three constitute perception.

Exposure occurs when a stimulus such as an Advertisement hoarding comes within
the range of a persons vision. Attention occurs when the information from vision pass on to
the brain for processing.

Interpretation is the assignment of meaning to the received

sensations. Memory is the short term use of the meaning for immediate decision-making or
the longer-term retention of the meaning.
The basic components shown in the figure can be arranged into four groups:
Stimuli, which serve as the raw material to be processed.
The stages of processing activities, which are linked by arrows and mainly internal to
the customer.
Situational and consumer characteristics which can influence the nature of these
processing activities, and an executive system, which guides the process by regulating
the type and intensity of processing activities engaged in, at any time.
Consumer Buying Behavior
Possibly the most challenging concept in marketing deals with understanding why
buyers do what they do (or dont do). But such knowledge is critical for marketers since
Wanting a strong understanding of buyer behavior will help shed light on what is important to
the customer and also suggest the important influences on customer decision-making. Using
this information, marketers can create marketing programs that they believe will be of interest
to customers.
As you might guess, factors affecting how customers make decisions are extremely
complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in
just to make things more interesting. Since every person in the world is different, it is
impossible to have simple rules that explain how buying decisions are made. But those who
have spent many years analyzing customer activity have presented us with useful
guidelines in how someone decides whether or not to make a purchase.
In fact, pick up any textbook that examines customer behavior and each seems to
approach it from a different angle. The perspective we take is to touch on just the basic

concepts that appear to be commonly accepted as influencing customer behavior. We will

devote two sections of the Principles of Marketing Tutorials to customer behavior. In this
section we will examine the buying behavior of consumers (i.e., when people buy for
personal reasons) while in the Business Buying Behavior tutorial we will examine factors that
influence buyers decisions in the business market.
Why Consumers Buy
As we discussed in the What is Marketing? tutorial, customers make purchases in
order to satisfy needs. Some of these needs are basic and must be filled by everyone on the
planet (e.g., food, shelter) while others are not required for basic survival and vary depending
on the person. It probably makes more sense to classify needs that are not a necessity as
wants or desires. In fact, in many countries where the standard of living is very high, a large
portion of the populations income is spent on wants and desires rather than on basic needs.
In this tutorial when we mention the consumer we are referring to the actual buyer,
the person spending the money. But is should also be pointed out that the one who does the
buying is not necessarily the user of what is bought and that others may be involved in the
buying decision in addition to the actual buyer. While the purchasing process in the consumer
market is not as complex as the business market, Wanting multiple people involved in a
purchase decision is not unusual. For example, in planning for a family vacation the mother
may make the hotel reservations but others in the family may have input on the hotel choice.
Similarly, a father may purchase snacks at the grocery store but his young child may be the o
So understanding consumer purchase behavior involves not only understanding how
decisions are made but also understanding the dynamics that influence purchases.
What Influences Purchasing
As we discussed the decision-making process for consumers is anything but straight
forward. There are many factors that can affect this process as a person works through the
purchase decision. The number of potential influences on consumer behavior is limitless.
However, marketers are well served to understand the KEY influences. By doing so they may
be in a position to tailor their marketing efforts to take advantage of these influences in a way
that will satisfy the consumer and the marketer (remember this is a key part of the definition
of marketing).

For the purposes of this tutorial we will break these influences down into three main
categories: Internal, External and Marketing. However, those interested in learning more
about customer buying activity may want to consult one or more consumer behavior books
where they will find additional methods for explaining consumer buying behavior.
For the most part the influences are not mutually exclusive. Instead, they are all
interconnected and, as we will see, work together to form who we are and how we behave.
For each of the influences that are discussed we will provide a basic description and
also suggest its implication to marketers. Bear in mind we only provide a few marketing
implications for each influence; clearly there are many more.
Internal Influences: Perceptual Filter
We start our examination of the influences on consumer purchase decisions by first
looking inside ourselves to see which are the most important internal factors that affect how
we make choices.
Perceptual Filter
Perception is how we see ourselves and the world we live in. However, what ends up
being stored inside us doesnt always get there in a direct manner. Often our mental makeup
results from information that has been consciously or subconsciously filtered as we
experience it, a process we refer to as a perceptual filter. To us this is our reality, though it
does not mean it is an accurate reflection on what is real. Thus, perception is the way we filter
stimuli (e.g., someone talking to us, reading a newspaper story) and then make sense out of it.
Perception has several steps.
Exposure sensing a stimuli (e.g. seeing an ad)
Attention an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad)
Awareness assigning meaning to a stimuli (e.g., humorous ad for particular product)
Retention adding the meaning to ones internal makeup (i.e., product has fun ads)

How these steps are eventually carried out depends on a persons approach to
learning. By learning we mean how someone changes what they know, which in turn may
affect how they act. There are many theories of learning, a discussion of which is beyond the
scope of this tutorial, however, suffice to say that people are likely to learn in different ways.
For instance, one person may be able to focus very strongly on a certain advertisement and be
able to retain the information after being exposed only one time while another person may
need to be exposed to the same advertisement many times before he/she even recognizes
what it is. Consumers are also more likely to retain information if a person has a strong
interest in the stimuli. If a person is in need of new car they are more likely to pay attention to
a new advertisement for a car while someone who does not need a car may need to see the
advertisement many times before they recognize the brand of automobile.
MARKET IMPLICATIONS:
Marketers spend large sums of money in an attempt to get customers to have a
positive impression of their products. But clearly the existence of a perceptual filter suggests
that getting to this stage is not easy. Exposing consumers to a product can be very challenging
considering the amount of competing product messages (ads) that are also trying to
accomplish the same objective (i.e., advertising clutter). So marketers must be creative and
use various means to deliver their message. Once the message reaches consumer it must be
interesting enough to capture their attention (e.g., talk about the products benefits). But
attending to the message is not enough. For marketers the most critical step is the one that
occurs with awareness. Here marketers must continually monitor and respond if their
message becomes distorted in ways that will negatively shape its meaning. This can often
happen due in part to competitive activity (e.g., comparison advertisements). Finally, getting
the consumer to give positive meaning to the message they have retained requires the
marketer make sure that consumers accurately interpret the facts about the product.

Internal Influences: Knowledge

Knowledge is the sum of all information known by a person. It is the facts of the
world as he/she knows it and the depth of knowledge is a function of the breadth of worldly
experiences and the strength of an individuals long-term memory. Obviously what exists as

knowledge to an individual depends on how an individuals perceptual filter makes sense of

the information it is exposed to.
Marketing Implications:
Marketers may conduct research that will gauge consumers level of knowledge
regarding their product. As we will see below, it is likely that other factors influencing
consumer behavior are in large part shaped by what is known about a product. Thus,
developing methods (e.g., incentives) to encourage consumers to accept more information (or
correct information) may affect other influencing factors.
Internal Influences: Attitude
In simple terms attitude refers to what a person feels or believes about something.
Additionally, attitude may be reflected in how an individual acts based on his or her beliefs.
Once formed, attitudes can be very difficult to change. Thus, if a consumer has a negative
attitude toward a particular issue it will take considerable effort to change what they believe
to be true.
Marketing Implications:
Marketers facing consumers who have a negative attitude toward their product must
work to identify the key issues shaping a consumers attitude then adjust marketing decisions
(e.g., advertising) in an effort to change the attitude. For companies competing against strong
rivals to whom loyal consumers exhibit a positive attitude, an important strategy is to work to
see why consumers feel positive toward the competitor and then try to meet or beat the
competitor on these issues. Alternatively, a company can try to locate customers who feel
negatively toward the competitor and then increase awareness among this group.

Internal Influences: Personality

An individuals personality relates to perceived personal characteristics that are
consistently exhibited, especially when one acts in the presence of others. In most, but not all,
cases the behaviors one projects in a situation is similar to the behaviors a person exhibits in
another situation. In this way personality is the sum of sensory experiences others get from
experiencing a person (i.e., how one talks, reacts). While ones personality is often interpreted
by those we interact with, the person has their own vision of their personality, called Self
Concept, which may or may not be the same has how others view us.
Marketing Implications:
For marketers it is important to know that consumers make purchase decisions to
support their self concept. Using research techniques to identify how customers view
themselves may give marketers insight into products and promotion options that are not
readily apparent. For example, when examining consumers a marketer may initially build
marketing strategy around more obvious clues to consumption behavior, such as consumers
demographic indicators (e.g., age, occupation, income). However, in-depth research may
yield information that shows consumers are purchasing products to fulfill self-concept
objectives that have little to do with the demographic category they fall into (e.g., senior
citizen may be making purchases that make them feel younger). Appealing to the consumers
self concept needs could expand the market to which the product is targeted.
Internal Influences: LifePerformence
This influencing factor relates to the way we live through the activities we engage in
and interests we express. In simple terms it is what we value out of life. LifePerformence is
often determined by how we spend our time and money.
Marketing Implications:
Products and services are purchased to support consumers life Performences.
Marketers have worked hard researching how consumers in their target markets live their
lives since this information is key to developing products, suggesting promotional strategies
and even determining how best to distribute products. The fact that life Performence is so

directly tied to marketing activity will be further examined as we discuss developing target
market strategies.
Internal Influences: Motivation
Motivation relates to our desire to achieve a certain outcome. Many internal factors
we have already discussed can affect a customers desire to achieve a certain outcome but
there are others. For instance, when it comes to making purchase decisions customers
motivation could be affected by such issues as financial position, time constraints, overall
value, and perceived risk.
Marketing Implications:
Motivation is also closely tied to the concept of Involvement, which relates to how
much effort the consumer will exert in making a decision. Highly motivated consumers will
want to get mentally and physically involved in the purchase process. Not all products have a
high percentage of highly involved customers (e.g., milk) but marketers who market products
and services that may lead to high level of consumer involvement should prepare options that
will be attractive to this group. For instance, marketers should make it easy for consumers to
learn about their product (e.g., information on website, free video preview) and, for some
products, allow customers to experience the product (e.g., free trial) before committing to the
purchase
Internal Influences: Roles
Roles represent the position we feel we hold or others feel we should hold when
dealing in a group environment. These positions carry certain responsibilities yet it is
important to understand that some of these responsibilities may, in fact, be perceived and not
spelled out or even accepted by others. In support of their roles, consumers will make product
choices that may vary depending on which role they are assuming. As illustration, a person
who is responsible for selecting snack food for an office party his boss will attend may
choose higher quality products than he would choose when selecting snacks for his family.
Marketing Implications:
Advertisers often show how the benefits of their products aid consumers as they
perform certain roles. Typically the underlying message of this promotional approach is to

suggest that using the advertisers product will help raise ones status in the eyes of others
while using a competitors product may have a negative effect on status.
External Influences: Culture
Consumer purchasing decisions are often affected by factors that are outside of their
control but have direct or indirect impact on how we live and what we consume. One
example of this are cultural factors
Culture represents the behavior, beliefs and, in many cases, the way we act learned by
interacting or observing other members of society. In this way much of what we do is shared
behavior, passed along from one member of society to another. Yet culture is a broad concept
that, while of interest to marketers, is not nearly as important as understanding what occurs
within smaller groups or Sub-Cultures to which we may also belong. Sub-cultures also have
shared values but this occurs within smaller groups. For instance, sub-cultures exist where
groups share similar values in terms of ethnicity, religious beliefs, geographic location,
special interests and many others.
Marketing Implications:
As part of their efforts to convince customers to purchase their products, marketers
often use cultural representations, especially in promotional appeals. The objective is to
connect to consumers using cultural references that are easily understood and often embraced
by the consumer. By doing so the marketer hopes the consumer feels more comfortable with
or can relate better to the product since it corresponds with their cultural values. Additionally,
smart marketers use strong research efforts in an attempt to identify differences in how subculture behaves. These efforts help pave the way for spotting trends within a sub-culture,
which the marketer can capitalize on through new marketing tactics (e.g., new products, new
sales channels, added value, etc.).
External Influences: Group Membership
In addition to cultural influences, consumers belong to many other groups with which
they share certain characteristics and which may influence purchase decisions. Often these
groups contain Opinion Leaders or others who have major influence on what the customer
purchases. Some of the basic groups we may belong to include:

 Social Class represents the social standing one has within a society based on such
factors as income level, education, occupation
Family ones family situation can have a strong effect on how purchase decisions
are made
Reference groups most consumers simultaneously belong to many other groups with
which they associate or, in some cases, feel the need to disassociate
Marketing Implications :
Identifying and understanding the groups consumers belong to is a key strategy for
marketers. Doing so helps identify target markets, develop new products, and create
appealing marketing promotions to which consumers can relate. In particular, marketers seek
to locate group leaders and others to whom members of the group look for advice or
direction. These opinion leaders, if well respected by the group, can be used to gain insight
into group behavior and if these opinion leaders accept promotional opportunities could act as
effective spokespeople for the marketers products.
External Influences: Purchase Situation
Purchase Situation
A purchase decision can be strongly affected by the situation in which people find
themselves. In general, a situation is the circumstances a person faces when making a
purchase decision, such as the nature of their physical environment, their emotional state, or
time constraints. Not all situations are controllable, in which case a consumer may not follow
their normal process for making a purchase decision. For instance, if a person needs a product
quickly and a store does not carry the brand they normally purchase, the customer may
choose a competitors product.
Marketing Implications:
Marketers can take advantage of decisions made in uncontrollable situations in at least
two ways. First, marketers can use promotional methods to reinforce a specific selection of
products when the consumer is confronted with a particular situation. For example,
automotive services can be purchased that promise to service vehicles if the user runs into

problems anywhere and at anytime. Second, marketers can use marketing methods that
attempt to convince consumers that a situation is less likely to occur if the marketers product
is used. This can also be seen with auto products, where marketers explain that using their
product will prevent unexpected damage to their vehicles.
Types of Consumer Purchase Decisions
Consumers are faced with purchase decisions nearly every day. But not all decisions
are treated the same. Some decisions are more complex than others and thus require more
effort by the consumer. Other decisions are fairly routine and require little effort. In general,
consumers face four types of purchase decisions:
Minor New Purchase these purchases represent something new to a consumer but
in the customers mind is not a very important purchase in terms of need, money or
other reason (e.g., status within a group).
Minor Re-Purchase these are the most routine of all purchases and often the
consumer returns to purchase the same product without giving much thought to other
product options (i.e., consumer is brand loyalty).
Major New Purchase these purchases are the most difficult of all purchases
because the product being purchased is important to the consumer but the consumer
has little or no previous experience making these decisions. The consumers lack of
confidence in making this type of decision often (but not always) requires the
consumer to engage in an extensive decision-making process..
Major Re-Purchase - these purchase decisions are also important to the consumer
but the consumer feels confident in making these decisions since they have previous
experience purchasing the product.
For marketers it is important to understand how consumers treat the purchase decisions
they face. If a company is targeting customers who feel a purchase decision is difficult (i.e.,
Major New Purchase), their marketing strategy may vary greatly from a company targeting
customers who view the purchase decision as routine. In fact, the same company may face
both situations at the same time; for some the product is new, while other customers see the

purchase as routine. The implication of buying behavior for marketers is that different buying
situations require different marketing efforts.

How Consumers Buy

So now that we have discussed the factors influencing a consumers decision to
purchase, lets examine the process itself. This process is presented in a sequence of 5 steps
as shown below.

However, whether a consumer will actually carryout each step depends on the type of
purchase decision that is faced. For instance, for minor re-purchases the consumer may be
quite loyal to the same brand, thus the decision is a routine one (i.e., buy the same product)
and little effort is involved in making a purchase decision. In cases of routine, brand loyal
purchases consumers may skip several steps in the purchasing process since they know
exactly what they want allowing the consumer to move quickly through the steps. But for
more complex decisions, such as Major New Purchases, the purchasing process can extend
for days, weeks, months or longer. So in presenting these steps marketers should realize that,
depending on the circumstances surrounding the purchase, the importance of each step may
vary.
Purchase Decision Steps 1 and 2
1. Need/Want/Desire is Recognized

In the first step the consumer has determined that for some reason he/she is not
satisfied (i.e., consumers perceived actual condition) and wants to improve his/her situation
(i.e., consumers perceived desired condition). For instance, internal triggers, such as hunger
or thirst, may tell the consumer that food or drink is needed. External factors can also trigger
consumers needs. Marketers are particularly good at this through advertising, in-store
displays and even the intentional use of scent (e.g., perfume counters). At this stage the
decision-making process may stall if the consumer is not motivated to continue (see
Motivation above). However, if the consumer does have the internal drive to satisfy the need
they will continue to the next step.
2. Search for Information
Assuming consumers are motivated to satisfy his or her need, they will next undertake
a search for information on possible solutions. The sources used to acquire this information
may be as simple as remembering information from past experience (i.e., memory) or the
consumer may expend considerable effort to locate information from outside sources (e.g.,
Internet search, talk with others, etc.). How much effort the consumer directs toward
searching depends on such factors as: the importance of satisfying the need, familiarity with
available solutions, and the amount of time available to search. To appeal to consumers who
are at the search stage, marketers should make efforts to ensure consumers can locate
information related to their product. For example, for marketers whose customers rely on the
Internet for information gathering, attaining high rankings in search engines has become a
critical marketing objective.
Purchase Decision Steps 3, 4 and 5
3. Evaluate Options
Consumers search efforts may result in a set of options from which a choice can be
made. It should be noted that there may be two levels to this stage. At level one the consumer
may create a set of possible solutions to their needs (i.e., product types) while at level two the
consumer may be evaluating particular products (i.e., brands) within each solution. For
example, a consumer who needs to replace a television has multiple solutions to choose from
such as plasma, LCD and CRT televisions. Within each solution type will be multiple brands
from which to choose. Marketers need to understand how consumers evaluate product
options and why some products are included while others are not. Most importantly,

marketers must determine which criteria consumers are using in their selection of possible
options and how each criterion is evaluated. Returning to the television example, marketing
tactics will be most effective when the marketer can tailor their efforts by knowing what
benefits are most important to consumers when selecting options (e.g., picture quality, brand
name, screen size, etc.) and then determine the order of importance of each benefit.
4. Purchase
In many cases the solution chosen by the consumer is the same as the product whose
evaluation is the highest. However, this may change when it is actually time to make the
purchase. The "intended" purchase may be altered at the time of purchase for many reasons
such as: the product is out-of-stock, a competitor offers an incentive at the point-of-purchase
(e.g., store salesperson mentions a competitors offer), the customer lacks the necessary funds
(e.g., credit card not working), or members of the consumers reference group take a negative
view of the purchase (e.g., friend is critical of purchase). Marketers whose product is most
desirable to the consumer must make sure that the transaction goes smoothly. For example,
Internet retailers have worked hard to prevent consumers from abandoning online purchase
(i.e., online shopping carts) by streamlining the checkout process. For marketers whose
product is not the consumers selected product, last chance marketing efforts may be worth
exploring, such as offering incentives to store personnel to "talk up" their product at the
checkout line.
5. After-Purchase Evaluation
Once the consumer has made the purchase they are faced with an evaluation of the
decision. If the product performs below the consumers expectation then he/she will reevaluate satisfaction with the decision, which at its extreme may result in the consumer
returning the product while in less extreme situations the consumer will retain the purchased
item but may take a negative view of the product. Such evaluations are more likely to occur
in cases of expensive or highly important purchases. To help ease the concerns consumers
have with their purchase evaluation, marketers need to be receptive and even encourage
consumer contact. Customer service centers and follow-up market research are useful tools in
helping to address purchasers concerns.

CHAPTER-IV
DATA ANALYSIS & INTERPRETATION

1. Age group of the respondents:

Age

No of respondents

Percentage of respondents

18-28

28-38

28

28

38-48

10

10

Above 48

54

54

Total

100

100

No Of Respondents
120
100
80

No Of Respondents

60
100
40
54

20
0

8
18-28

28
28-38

10
38-48 Above 48 Total

Interpretation
From the above table, 8% of the respondents belong to the age group of 18-28 years, 28% of
the respondents belong to the age group of 28-38 years, 10% of the respondents belong to the
age group of 38-48 years, 54% of the respondents belong to the age group of above 48 years.

2. Occupation of the respondents:

Percentage of
Occupation

No of respondents

respondents

Student

Business

50

50

Private employee

32

32

Govt employee

18

18

Total

100

100

No Of Respondents
60
50
40
30
20
10
0

50
32
18

No Of Respondents

Interpretation
from the above table 0% of the respondents are students, 50% of the respondents are
businessmen, 32% of the respondents are private employee, 18% of the respondents are govt
employee.

3. Type of cement that the respondent is wanting:

Percentage of
Type of cement

No of respondents

respondents

53 grade

51

51

43 grade

14

14

Opc grade

26

26

Ppc grade

09

Total

100

100

No of respondents
60
50
40

No of respondents

30
20
10
0
53 grade

43 grade OPC grade PPC grade

Interpretation
from the above table 51%of the respondents are wanting kesoram 53 grade cement. 14%of
the respondents are wanting 43 grade cements. 26%of the respondents are wanting opc
cement.9% of the respondents are wanting ppc cement.
4. Satisfaction with kesoram cement?

Kesoram

Performance Transport

Features Price

Paking

Reliability

Brand image

Excellent

10

25

24

02

05

08

20

Very good 25

24

15

18

06

02

20

Good

10

21

25

12

15

35

25

Average

21

10

10

14

Poor

90
80
70
60
50

Poor

40

Average

30

Good

20

Very good

10

Excellent

Interpretation:
The above table clearly shows that 25% of respondents were satisfied with performance, 25%
said transport is excellent, 24% were satisfied with features, 18% are satisfied with price and
15% were satisfied with packing and 35% were satisfied with reliability and 25% were
satisfied with brand image of kesoram.

5. While purchasing cement whose advice will you take?

Advice while purchasing

Respondents

Percentage of

cement

respondents

Engineer

43

43

Friends

16

16

Manson

Dealers

20

20

Others

16

16

Total

100

100

No.of respondents
50

43

40
No.of respondents

30
20

16

20
10

16

0
ENGINEER FRIENDS MANSON DEALERS OTHERS

Interpretation:
From the above table it is clear that 43% of respondents take advice of engineer while
purchasing the cement and 20% takes the advice of dealers and 16% takes advice of friends
and others.

6. Which of the following modes has impact on purchasing cement?

Factors impact on purchase

No.of respondents

Percentage of
respondents

T.v

47

47

News paper

20

20

Friends

Dealers

24

24

Total

100

100

NO.OF RESPONDENTS
50
45
40
35
30
25
20
15
10
5
0

NO.OF RESPONDENTS

T.V

NEWS PAPER

FRIENDS

DEALERS

Interpretation:
47% of respondents felt that tv plays a major role in their purchasing decisions followed by
dealers , newspapers and only 9% opined that friends plays a role while buying the cement.

7. Which brand of cement do you purchase?

Percentage of
Brand

No of respondents

respondents

Kesoram

32

32

Penna

35

35

K.c.p

30

30

Rasi

03

03

Total

100

100

No of respondents
120
100
80

No of respondents

60
40
20
0
KESORAM PENNA

K.C.P

RASI

Total

Interpretation
The above table shows that while purchasing the cement majority of people purchases
kesoram and kcp i.e., 32% and 30% respectively. This shows that these are the brands which
comes into the mind of the respondents when brand of cement is considered.

8. Which of the following brand of cements will you prefer as regards to price is considered?

Brand

No of respondents

Percentage of respondents

Kesoram

31

31

Penna

18

18

K.c.p

42

42

Rasi

Total

100

100

No of respondents
120
100
80

No of respondents

60
40
20
0
KESORAM PENNA

K.C.P

RASI

Total

Interpretation
from the above table it is clear that majority of the respondents prefers kcp followed by
kesoram as price of cement is considered. This shows that kcp is the competitor for kesoram.

9. While purchasing cement which of the following brands will comes into mind first?

Brand image

No of respondents

Percentage of respondents

Kesoram

40

40

Penna

20

20

K.c.p

30

30

Rasi

10

10

Total

100

100

No of respondents
120
100
80

No of respondents

60
40
20
0
KESORAM PENNA

K.C.P

RASI

Total

Interpretation
40% of respondents opined that while purchasing cement kesoram comes into their mind first
and then kcp and 20% opined that penna comes into their mind and only 10% opined that rasi
comes into their mind.

10. Which brand of cement do you prefer most?

Brand

No of respondents

Percentage of respondents

Kesoram

40

40

Penna

15

15

K.c.p

30

30

Rasi

15

15

Total

100

100

No of respondents
120
100
80

No of respondents

60
40
20
0
KESORAM PENNA

K.C.P

RASI

Total

Interpretation
the above table shows 40% of the respondents want to prefer kesoram cement. 30%
wants to buy kcp and 15% for both penna and rasi cements.

11. Which of the following factors do you consider while purchasing cement?

Factors

No of respondents

Percentage of respondents

Brand image

32

32

Price

58

58

Covience of location

10

10

Total

100

100

No of respondents
70
60
50
40
30
20
10
0

No of respondents

Interpretation:
From the above analysis 58% of respondents considers price before purchasing the cement
followed by brand image.

12. Which type of advertising do you find more effective?

Mode of advertising

No of respondents

Percentage of respondents

News paper

21

21

T.v

45

45

Wall paintings

11

11

Holdings

23

23

Total

100

100

No of respondents
50
45
40
35
30
25
20
15
10
5
0

No of respondents

Interpretation:
From the above table it is clear that majority of respondents are opined that tv is the most
effective mode of advertising followed by holdings.

CHAPTER V
SUMMARY

 FINDINGS
SUGGESTIONS

SUMMARY
Consumer behavior involves study of how people buy, what they buy, when they buy.
It also tries to assess the influence on the consumer from groups such as family, friends,
reference groups and society in general.
Buyer behavior has two aspects: the final purchase activity visible to any observer and
the detailed or short decision process that may involve the interplay of a number of complex
variables not visible to anyone.

The Indian cement industry is directly related to the country's infrastructure sector and
thus its growth is paramount in determining the development of the country. With a current
production capacity of around 366 million tonnes (MT), India is the second largest producer
of cement in the world and fueled by growth in the infrastructure sector, the capacity is
expected to increase to around 550 MT by FY20.
India has a lot of potential for development in the infrastructure and construction
sector and the cement sector is expected to largely benefit from it. Some of the recent major
government initiatives such as development of 100 smart cities are expected to provide a
major boost to the sector.
According to data released by the Department of Industrial Policy and Promotion
(DIPP), cement and gypsum products attracted foreign direct investment (FDI) worth US$
2,984.29 million between April 2000 and September 2014.
In the 12th FiveYear Plan, the government plans to increase investment in
infrastructure to the tune of US$ 1 trillion and increase the industry's capacity to 150 MT.
The Cement Corporation of India (CCI) was incorporated by the Government of India
in 1965 to achieve self-sufficiency in cement production in the country. Currently, CCI has 10
units spread over eight states in India.
In order to help the private sector companies thrive in the industry, the government
has been approving their investment schemes. Some such initiatives by the government in the
recent past are as follows:
Kesoram Industries Limited ("KIL") was incorporated as a public company under the
name Kesoram Cotton Mills Limited ("KCML") as per the provisions of the Indian
Companies Act, 1913 and received a Certificate of Incorporation dated 18 October 1919 from
the Registrar of Companies, West Bengal ("ROC"). The name of KCML was altered to
'Kesoram Industries and Cotton Mills Limited ("KICM") effective 30th August, 1961.
Through a Fresh Certificate of Incorporation consequent on change of Name obtained from
the ROC. The name of KICM was altered to KIL effective 9th July, 1986.
KIL has diversified business interests in various sectors including tyres, cement and
rayon. It owns and operates two integrated tyre manufacturing plants located at Balasore,

Odisha (the "Balasore Tyre Plant") and Haridwar, Uttarakhand (the "Laksar Tyre Plant") with
a combined total installed capacity of 298,660 MT of tyres as of 31 March 2013. The tyres
are marketed under the brand name "Birla Tyres".
KIL is setting up a new manufacturing unit at its Balasore Tyre Plant for the
production of passenger car radial tyres. Once completed, this new capacity will make KIL
one of the few tyre companies in India that would be able to offer a complete range of tyres
across all vehicle sectors. KIL's Laksar Tyre Plant is at present exempt from excise duty on
tyres manufactured and sold. This exemption expires on various dates between 27th March,
2018 and 9th March, 2020 depending upon commencement of operations of individual units
of the plant.
KIL presently manufactures the following types of tyres under the "Birla Tyres" brand
truck and bus bias tyres;
truck and bus radial tyres;
farm tyres;
off-the-road vehicle tyres; and
two - and three - wheeler tyres.
A new manufacturing unit is under construction at the Balasore Tyre Plant for
manufacturing passenger car radials.
A competitor, in order to achieve the loyalty of the customers, offer an endless
information flow on the products and services and thereby continuously educates the
customer about the opportunities in the market. Therefore today even an ordinary person, is
in possession of the large amount of data to use for the purpose of making a decision as to
which products/ services he would go in for. The competitive environment is making the
customer wisher day by day and he is able to take a large number of decisions on his own.
The experts advice of the olden days is being replaced by the customers own wisdom. This
is making the market place more complicated and unpredictable. The customer is getting
smarter today and he is able to decide his own moneys worth and therefore, organization

across the board are `pursuing the customers views to streamline their business strategies to
remain customer- worthy.
Social factors influence buyers behavior. A persons reference group-family, friends,
social organizations, professional associations- strongly affect product and brand choices.
The buyers age, life-cycle stage, occupation, economic circumstances, lifePerformence,
personality, and other personal.

Characteristics influence his or her buying decisions.

Consumer life-Performences the pattern of acting and interacting in the world are also an
important influences on purchase decisions.
Marketers do not want their target audience to look only at the models in their ads.
They want to communicate something about their products as well. Marketers often use
attractive models,humour, other factors to attract the target markets interest. Information
processing is a series of activities by which stimuli are perceived, transformed in to
information, and stored.
Possibly the most challenging concept in marketing deals with understanding why
buyers do what they do (or dont do). But such knowledge is critical for marketers since
Wanting a strong understanding of buyer behavior will help shed light on what is important to
the customer and also suggest the important influences on customer decision-making. Using
this information, marketers can create marketing programs that they believe will be of interest
to customers.

FINDINGS
1. 50% of the KESORAM customers are business people and 32% of the customers are
private employees.
2. Most of the respondents belong to the age group of above 48 years.
3. KESORAM 53 grade is the most preferred model in the KESORAM products.
4. Most of the respondents take the advice of engineers before purchasing the cement.

5. Most of the respondents are motivated by TV ads for purchasing the cement.
6. Most of the respondents have good satisfaction with the performance of their cement
strength.
7. 32% of the respondents are considering KESORAM brand for purchasing cement.
8. Most of the respondents felt that the price of KESORAM is reasonable.
9. 40% of respondents opined that KESORAM comes into their mind first when they
want to purchase the cement.
10. Majority of the respondents are purchasing KESORAM cement.
11. Most of the respondents are considering price while purchasing cement in the market.
12. Most of the respondents felt that advertising in TV and holdings helps them in getting
information about the product.

SUGGESTIONS

1. The CEMENTs recently introduced by KESORAM are mostly concerned about

home base. So, they should also consider commercial people while Manufacturing.
2. Indian market is a price sensitive markets the CEMENTs should be at Minimum
price with maximum quality.
3. The standard of packing should be improved.
4. Advertisements in Televisions, offers should be increased to attract the People.
5. If KESORAM can improve in Performance and brand image it will be the best in all
the Other competition brands.

BIBILIOGRAPHY
Text Books:
1. PHILLIP KOTLER

Principles of Marketing 11th Edition Prentice Hall India.

2. PHILLIP KOTLER

Marketing Management Millennium Edition.Prentice Hall

India
3. V.S.RAMASWAMY & NAMAKUMARI Marketing Management -7th Edition
Millennium India Ltd.
4. RICHARD R STILL Sales Management -5th Edition Prentice Hall India.
5. G.C.BERI Marketing Research -6th EditionTata McGraw Hill Co.Ltd.
6. LUCK DAVID & ROBIN RONALD Marketing Research -7th Edition Prentice Hall
India.
WEB SITES
WWW.GOOGLE.COM
WWW.KESORAM.COM
WWW.GOOGELFINANCE.COM
WWW.INDUSTRYSINDIA.COM

QUESTIONNAIRE
1.

Age group of the respondents

A) 18-28

2.

b) 28-38

d) above 48

Occupation of yhe respondents

a. Students

3.

c) 38-48

b. Private employees c. Govt employees

d. Businessman

Type of cement that the respondent is wanting

a. 53 grade

b. 43 grade

c. Opc grade

d.

Ppc

grade
4.

Satisfaction with kesoram cement:

a. Excelent

b. Very good c. Good

d. Average

e.

Poor
5.

While purchasing cement whose advice will you take?

A. Engineer

b. Friends

c. Manson

d. Dealers

e .others
6.

Which of the following modes has impact on purchasing cement?

A.t.v

7.

c. Friends

d. Dealers

Which brand of cement do you purchase?

a. Kesoram

8.

b.news paper

b. Penna

c. K.c.p

d. Rasi

Which of the following brand of cement will you prefer as regards to price is

considered?
A. Kesoram

b. Penna

C. K.c.p

d. Rasi

9. While purchasing cement which of the following brands comes into mind first?
A. Kesoram

b. Penna

c. K.c.p

d. Rasi

10. Which brand of cement do you prefer most?

A. Kesoram

b. Penna

C. K.c.p

d. Rasi

11. Which of the following factors do you consider while purchasing cement?
A. Brand image

b. Price

C. Covience of location
12. Which type of advertising do you find more effective?
A. News paper

b. T.v

C.wall paintings

d. Holdings