Summer Training Project Report

on Title

Market Analysis of Cement Industry

submitted in partial fulfillment of the requirements for the Post

Graduate Diploma in Management
At
Jaipuria Institute of
Management, Lucknow By
Shaiwal Bajpai
JL18PG131
Faculty Mentor
Prof. Rashmi Chaudhary

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 TO WHOMSOEVER IT MAY CONCERN

This is to certify that the Summer Project Study Report, Titled “submitted by Mr./ Ms. as
partial fulfilment of requirement of the two year PGDM (2017-2019) is a bonafide work
carried out by the student at our Institute. This Summer Project Study is his/her original work
and has not been submitted to any other University/Institute.

Prof. ………………………… Prof. ………………………….

Faculty Mentor Program Director-

PGDM Date:
Place:

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 DECLARATION CERTIFICATE BY STUDENT
I,…………………………………………., student of PGDM / PGDM FS / PGDM RM
batch (2018-20) declare that the project entitled…………………………………………….,
is my own work conducted under the supervision of ……………………………….. as a
partial fulfilment of Summer Internship Program for the course of PGDM submitted to ........ and
Jaipuria Institute of Management, Lucknow.

I further declare that to the best of my knowledge the project does not contain any part of
any work which has been submitted for any other project either in this institute or in any
other without proper citation.

Place :

Date:…………………………..
Signature of the Candidate

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 NO DUES CERTIFICATE (BY THE COMPANY)
Mr./ Ms.…………Shaiwal Bajpai………………………………………………………
worked with our company for his/ her Summer Internship Project from …………15 May
2019… (date) to ………30 June 2019 …………………………..(Date).
During this period his/ her conduct was good. We have no complaints against him/ her. All
the files, books, reports or any other material issued to him/ her during the process of his/
her project have been returned and there is no due against him/ her in our Company.

We wish him/ her best in all his/ her endeavours.

(Name & Signature of Company Mentor )

Arun Kumar Gupta

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 Acknowledgement
The last two months with ACC Ltd has been full of learning and sense of contribution
toward the organization. I would like to thank ACC Ltd for giving me an opportunity of
learning and contributing through this project. And also like to thanks all the people who
knowingly and unknowingly supported me in my endeavor.
I gratefully acknowledge my indebtedness to Mr. Arun Kumar Gupta (Area Incharge-
Lucknow Of ACC Ltd. ) for allowing me to undergo a training session under his supervision &
guidance and for providing me an in depth knowledge about the cement market.
I am thankful to my faculty mentor Mrs. Rashmi Chauudhary who gave me direction in
which my project had to move which was very crucial for successful completion of the project.
This Internship would not have been completed without friendly efforts of all the concerned
authorities. Also, this project enables me to know the working of the team spirit. Its web like
structure helps me to have added potential in myself to adjust easily to the tense & result oriented
environment of the organization.
I also would like to thank the entire staff of ACC Ltd and all my friends and colleagues
who helped whenever I faced any difficult situation.
I hope this report, reflecting my learning in the past six weeks and beneficial to the organization
as it had been to me. Again, I sincerely thank all of them.

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 CERTIFICATE FOR ANNEXURE -7
This is to certify that Mr / Ms Shaiwal Bajpai has completed summer
training form our organization and has submitted the Summer Training Report.

We have received the Annexure 7 (Evaluation of student) we have submitted / in process of

submitting the same by 2 July 2019 (Date)

Industry Mentor’s

Name Arun Kumar Gupta

Signature

Date 2 July 2019

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Executive Summary

This internship report is based on six weeks practical experience of market research at ACC Ltd
as required by industry mentor Mr. Arun Kumar Gupta, Area Incharge Lucknow at ACC Ltd.
The objectives of the study are to analyze the market for ACC Cement in the brickfields and
cement shops, To analyze the sales performance of Acc cement in General, To analyze the
general problems in marketing of ACC cement, To know consumer preference towards various
brands of cement especially towards ACC Cement.

This report is divided into five chapters. These chapters will take to the path of this study. These
chapters will make us understand from the introduction of study to the findings and conclusion
of the study.

The main findings of the study are as the dealership and retailership is very restrictive, the return
on sale is very less for retailers as compared to other cement brands.

The recommendations of the study are: To remove the ACC restriction from specific regions for
certain period, To increase the sales margin of ACC Cement which is suitable for dealers or
retailers and the organization.

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Table of Contents
Chapter 1 Introduction....................................................................................................................

1.1 Problem Statement ...................................................................................................................

1.2 Rationale of Problem ................................................................................................................
1.3 Scope of the Study....................................................................................................................
1.4 Methodology ............................................................................................................................
1.5 Scope of Study .........................................................................................................................
1.6 Limitation of Study ..................................................................................................................

Chapter 2 DETAILS OF THE ORGANIZATION .....................................................................

2.1 Company Overview ..................................................................................................................

2.1.1 Vision ...........................................................................................................................

2.1.2 Mission ..............................................................................................................................

2.1.3 SWOT Analysis ..............................................................................................................

2.2 Industry Overview ....................................................................................................................

2.2.1 PESTEL Framework Analysis of Company ....................................................................

2.2.2 Michael Porter’s Five Forces Model .............................................................................

2.2.3 Competition Analysis .....................................................................................................

Chapter 3 APPROACH & METHODOLOGY ............................................................................

3.1 Tasks to be performed ............................................................................................................

3.2 Detailed Analysis of the Task ...............................................................................................

3.3 Approach of performing Tasks .................................................................................................

3.4 Final Conclusion of Tasks .........................................................................................................

Chapter 4 ANALYSIS & OUTCOME ...........................................................................................

4.1 Choice of Data Analysis Techniques ...................................................................................

4.2 Outcomes and Interpretation of Outcomes ..........................................................................

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Chapter 5 Conclusion & Learning Outcome ................................................................................
5.1 Brief Description of Recommendations...............................................................................

5.3 Learning from the project .....................................................................................................

5.3 Limitation of the Project ....................................................................................................

5.4 Scope of further Work .......................................................................................................

6. References .....................................................................................................................................

7 Appendices .....................................................................................................................................

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Chapter 1: Introduction
1.1 Problem Statement
The organization wants to increase the sales in the areas where cement shop owners and
customers are shifting to other brands. Company has brand value which is achieved over 70
years. They need good market strategy to penetrate modern market. They are facing problems
where new entrants are coming in the competition with very low rate which attracts the customer
and High margin rate attracts the dealers and retailers.

1.2 Rationale of the Problem

1. To analyze the sales performance of ACC Cement.
2. To analyze the market strategy of ACC Cement.
3. To know consumer preference towards various brands of cement especially towards ACC
Cement.

1.3 Methodology
The Method adopted to conduct this study may be classified into 2 types. The information
has been gathered through two sources.

1. Primary data.
2. Secondary data.

The primary data has been collected through personal interview and by observation. It has
been collected directly from the Firm Proprietor’s information are collected by observational
methods. Sources of Secondary data like News papers, Magazines, Books, Internet helped a lot
in preparing this study.

1.4 Scope of the study

The scope of study reconfirmed to Lucknow only. The reference has been drawn with the
help of opinion of brickfields of Lucknow and dealers or retailers of Indiranagar, Jankipuram,
Jankipuram Extension of Lucknow.

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1.5 Limitations of the Study
1. There are respondent issues being this chance whether it may be a wrong or right this may
create a bias in response. However it has been avoided as for as possible.
2. It is also difficult to know the opinion of respondents where each and every one will have
qualitative knowledge about Cement.
3. The opinions are taken in Lucknow region only.
4. The factors taken to study may be insufficient .However we have taken most effective
factors.

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Chapter 2 : DETAILS OF THE ORGANIZATION

2.1 Company Overview

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's
operations are spread throughout the country with 14 modern cement factories, 19 Ready mix
concrete plants, 19 sales offices, and several zonal offices. It has a workforce of about 9000
persons and a countrywide distribution network of over 9,000 dealers. ACC's research and
development facility has a unique track record of innovative research, product development and
specialized consultancy services. Since its inception in 1936, the company has been a trendsetter
and important benchmark for the cement industry in respect of its production, marketing and
personnel management processes. Its commitment to environment-friendliness, its high ethical
standards in business dealings and its on-going efforts in community welfare programs have won
it acclaim as a responsible corporate citizen. ACC has made significant contributions to the
nation building process by way of quality products, services and sharing its expertise.

In the 70 years of its existence, ACC has been a pioneer in the manufacture of cement and
concrete and a trendsetter in many areas of cement and concrete technology including
improvements in raw material utilization, process improvement, energy conservation and
development of high performance concretes.

ACC’s brand name is synonymous with cement and enjoys a high level of equity in the
Indian market. It is the only cement company that figures in the list of Consumer Super Brands
of India.

The company's various businesses are supported by a powerful, in-house research and
technology backup facility - the only one of its kind in the Indian cement industry. This ensures
not just consistency in product quality but also continuous improvements in products, processes,
and application areas.

ACC has rich experience in mining, being the largest user of limestone, and it is also one of
the principal users of coal. As the largest cement producer in India, it is one of the biggest
customers of the Indian Railways, and the foremost user of the road transport network services
for inward and outward movement of materials and products.

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 ACC has also extended its services overseas to the Middle East, Africa, and South America,
where it has provided technical and managerial consultancy to a variety of consumers, and also
helps in the operation and maintenance of cement plants abroad.

ACC is among the first companies in India to include commitment to environmental

protection as one of its corporate objectives, long before pollution control laws came into
existence. The company installed pollution control equipment and high efficiency sophisticated
electrostatic precipitators for cement kilns, raw mills, coal mills, power plants and coolers as far
back as 1966. Every factory has state-of-the art pollution control equipment and devices.

ACC demonstrates the practices of being a good corporate citizen undertaking a wide range
of activities to improve the living conditions of the under-privileged classes living near its
factories.

The ACC is the only cement company having the research centre using. It has the central
research at Thane of Maharastra which was established in 1965.

Here various type cement and cement based products are developed for the first time in
India. Many of them are substituted with some of the export from western countries.

It is the only company in India which products variety and of cement and cement based
product. Its products are export from India. The company produces such a class of goods which
produced in the west. Only ACC produced such variety of products in India with completely
ingenious technology. The company is known develops its own technology called “ACC
TECHNOLOGY”.

Over the years, ACC realized that people are as different as they are similar. Different
needs, different lives, different dreams. With its depth of knowledge and width of experience
ACC, today, is poised to fulfill the hopes and aspirations of people across the length and breadth
of the country.

For decades now, ACC has been forging a pioneering path making cement. Along the way,
it sharpened its expertise on the cutting edge of the latest processes and technologies:

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learning/adapting - not just transplanting - to meet the specifics of local operating parameters in
the process - setting standards, innovating, not just meeting needs, but anticipating them.

A strategic alliance

The house of Tata was intimately associated with the heritage and history of ACC, right
from its formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata group sold all
14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat
Ambuja Cements Ltd (GACL), who are now the largest single shareholder in ACC. This has
enabled ACC to enter into a strategic alliance with GACL; a company reputed for its brand
image and cost leadership in the cement industry.

Holcim - a new partnership

A new association was forged between ACC and the Holcim group of Switzerland in
2005. In January 2005, Holcim announced its plans to enter into a long-term strategic alliance
with the Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL),
which at the time held 13.8 per cent of the total equity shares in ACC. Holcim simultaneously
announced its bid to make an open offer to ACC shareholders, through Holdcem Cement Pvt
Limited and ACIL, to acquire a majority shareholding in ACC. An open offer was made by
Holdcem Cement Pvt. Limited along with Ambuja Cements India Ltd. (ACIL), following which
the shareholding of ACIL increased to 34.69 per cent of the Equity share capital of ACC.
Consequently, ACIL has filed declarations indicating their shareholding and declaring itself as a
Promoter of ACC.

Holcim is the world leader in cement as well as being large suppliers of concrete,
aggregates and certain construction-related services. Holcim is also a respected name in
information technology and research and development. The group has its headquarters in
Switzerland with worldwide operations spread across more than 70 countries. Considering the
formidable global presence of Holcim and its excellent reputation, the Board of ACC has
welcomed this new association.

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 2.1.1 Vision:
To be one of the most respected companies in India; recognized for challenging conventions
and delivering on our promises.

2.1.2 Mission:

Maintain our leadership of the Indian cement industry through the

Leadership continuous modernization and expansion of our manufacturing facilities

and activities, and through the establishment of a wide and efficient
marketing network.

Achieve a fair and reasonable return on capital by promoting productivity

Profitability throughout the company.

Ensure a steady growth of business by strengthening our position in the

Growth cement sector.

Maintain the high quality of our products and services and ensure their
Quality supply at fair prices.

Promote and maintain fair industrial relations and an environment for the
Equity effective involvement, welfare and development of staff at all levels.

Promote research and development efforts in the areas of product

Pioneering development and energy, and fuel conservation, and to innovate and
optimize productivity.
Fulfill our obligations to society, specifically in the areas of integrated

Responsibility rural development and in safeguarding the environment and natural

ecological balance.

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2.1.3 SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of ACC Limited.
Strengths are:
1. ACC has been ranked India’s most admired company in the cement sector.
2. It also received the Golden Peacock Environmental Management award
3. One of the top cement and construction companies based out of India
4. ACC also received Green Manufacturing award and many other rewards
5. ACC has a vast distribution network of 9,000 dealers in the country.
6. Operations since last 80 years have made ACC a strong brand
7. It has a strong efficient workforce of around 10,000 employees.
Weaknesses are:
1. ACC Cement has high price range products which is not attracting low annual income
population. In India ,huge amount of population has low annual income.
2. ACC Cement has restriction with dealers that they can sell only ACC cement in their shops
but dealers want to fulfill all demands of consumers.
3. ACC is present only in India.
Oportunities are:
1. ACC can leverage the Indian market leadership and expand to other parts of the world.

2. It can do extensive branding in the country that can help them increase brand recall and thus
help the brand to grow as a whole

3. Extended services in the field of construction.

Threats are:
1. Many local players offering low cost products are one of the threats for the ACC cements and
company.

2. It also faces strong competition from global players in Indian markets.

2.2 Industry Overview

India’s Cement Industry has experience steady progress. Since 1914, The output of the
major and mini cement plants has increased from 57.6 million tons in 2001-02. The output of
cement may be high at 68 million tons in 2002-03. India is the fifth largest cement production

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after China, Russia, Japan and U.S.A. with the turnover of Rupees 120 billion comprising 52
companies with 101 plants.

The cement industry in India is poised to scale new heights thanks to the liberalization
policies of the Government adoption of state of the art Technology and the massive investment
of rupees 100 billion. By the year 2010 A.D. capacity of this Industry to reach the impressive
level of 120 million tons.
India is presently producing several varieties of cement. These includes to ordinary
Portland Cement(OPC), Portland Pozzalana cement (PPC), Portland Blast furnace slag cement
(PBFS), Rapid setting cement , oil well cement and white cement. India is also producing high
strength cement like 43 grades and 53 grades. Low heat cement is produce for the massive
construction of Dames, Barrages, Deep foundation for high rise building etc.

The domestic demand is assumed to grow at 8% per annum. The cement capacity which
was 62.05 million ton’s in 1992-93 rise to 84.03 million ton in 2000-01. Around 7.85 million
tons large cement capacity was proposed to add during 2004-05 of which 5.50 million ton was to
be operational in 2005-06 and the remaining 2.35 million ton would be operational; in 2006-07.
Cement consumption may reach a level of 92.65 million tons by 2010.

Mini cement plants were setup at the governments insistence during the early 1980’s due
to the storage of cement. India has been one of the pioneering countries as for as mini cement
plant sprouted up around restricted and scattered limestone deposit areas. Because of low
overheads and excise duty, the cement manufactured by mini plant is much cheaper. Mini plant
enjoy concession in excise duty to the extent of rupees 7.50 per bag. However, these plants
depend upon traditional technology leading to poor quality of cement.

Cement Machinery segment is witnessing a boom. Segment is capable of manufacturing

and supplying complete cement plants based on the dry process and pre-calcinations technology
for capacities upto 5000 tons per day. There are 18 units in the organized sector for the
manufacture of complete cement plant with total installed capacity worth rupees 2000 million
per annum. The total production rise from rupees 1900 million in 2000-01 to rupees 2250 million

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in 2001-02.

Inspite of some problem, the cement industry is at present well pleading. It looks 14
years to double the capacity to 29 million tons in 1998. Since then upto the end of March 2000,
it had gone upto 96.5 million tons and increase of 140 %. Like wise in 1999-2000 consumption
has gone up by 6% after 1% fall in previous year of course, government consumption has down
from 50% in the early 1980’s to about 20%.
The Cement has great future however certain measures as needed to setup the space of
growth of cement industry. There is need for accelerating the building of concrete road and
multi purpose hydro project. The storage of dwelling units is currently at 35 million.
Construction of houses should priority area.

Currently India exporting cement to Bangladesh, Srilanka, Nepal, U.A.E., Maldives,

Philippines, Yemen, Dubai, Qatar, and of few other countries.

The international cement rate is mostly in bulk for which, India has virtually no facilities
either in the cement or in the transportation and handling.

The infrastructural facility in our ports are inadequate for receipts, storage, handling,
loading and unloading of cements for instance Japan loads over 10,000 tons of cement clinker a
day as compared to India’s 3,000 ton a day.
The availability and movement of coal has been of perennial problem of the cement industry.
90% of the coal deposits are located in four states in Bihar, Orissa, West Bengal, and Madhya
Pradesh. Also burning Madhya Pradesh none of the other states have any sizable lime stones
deposit. This coal has to be handled or very long distance.

Coal requirement by the industry today stands at 13 million tons at the 6% of the coal
production. Cement manufacturer are left the mercy of traders in coal who charge exorbitant
prices. The coal requirements may go upto 21 million tons in 2004-05 and 25 million tons by
2010.
Transportation whether by rail, road or sea plays a crucial role in the marketing and
pricing of cement. Transportation cost has gone up by over 100% during the last 10 years. The

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bright for movement of cement for a distance of 750 km was increased from rupees 134 per ton
in May 1982 to rupees 456 in April 2001. This was further stepped upto rupees 484 by the
railway budget for 2004-05.

According to cement manufacturing association (CMA) on investment of rupees 500.00

million will be needed by the industry in the next 10 years in order to double its capacity, if it is
to meet the countries demand on other rupees 150.000 million would be required for expansion.
The cement industry has taken rapid strides in area like energy conservation, mining,
cement manufact5urer and environment protection, thanks to efforts made by the nation council
for cement and building material (NCBM) and other research organization.

As a result of large scale modernization and technology up gradation, the industry is able
to produce Cement at High quality comparable to the best in the world. During the last two
decades the industry did experienced some technological changes.

The cost of transportation and distribution constitutes a large chunk of the price the
customer pays for cement - it can be as much as 30% at many locations in the country. For a low
value basic product like cement, minimizing of transportation and distribution is in national
interest to make the economy more cost competitive.

Today nearly 60% of cement of production units to supply points is transported by road
and rest by rail. For long distance movement of cement, rail is still the preferred option due to its
lower cost. Nearly all the cement from supply points to customer is transported by road. The
cost competitiveness of both rail and road transport has important bearing on the price of cement.
Railways have been steadily losing cement traffic due to the inflexibility of freight and the
operational; restrictions imposed on the customer. The recent improvements of operational
efficiencies of railways is indeed laudable but if this is achieved by passing on the entire burden
to its customers, We fear that the cost competitiveness of railways will worsened in a long run -
at least for a large volume low price product like cement. Railways must examine all secondary
incurred by cement producer in transportation of cement from rail heads if the cost
competitiveness of rail movement is to be improved. Railway should also consider allowing
cement producer to operate point-to-point rakes, with multiple unloading points.

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 Road transportation during the last years was adversely effected due to sharp and
repeated increase in the price of diesel. Taking advantages of the effective caring capacity of
trucks, road transporter were offering competitive freight rate by carrying mare than stipulated
loads. However the enforcement of carrying load restriction in the recent past in many states has
seriously disrupted road transport system in the country. Freight has shot up with the demand for
a higher number of vehicles for the same impact on the cement industry will ever more severe.
Also pollution and traffic will increase if the same volume is transported by large number of
vehicle.

It is apparent that motor Vehicles produced in the country have the capacity to carry large
loans per axle than is currently stipulated, with out compromising safety. It will in the national
interest to consider upward revision of the present stipulated permissible loads per axle is that the
existing stock of vehicles is more productively used. This will also meet the needs of the cement
industry which one of the largest used of road transport. Indian railway has revised upward the
effective capacity of their wagons; a similar move is called for in respect of road transport to tie
over the looming crisis.

2.2.1 PESTEL Framework Analysis of Company

Pest analysis includes political, environmental, social and technological factors which
affects both the companies as well as industry.

Political : The price of cement is primarily controlled by the coal rates, power tariffs,
railway tariffs, freight, royalty and cess on limestone. Interestingly, government controls all
of these prices. Government is also one of the biggest consumers of the cement in the
country. Most state governments, in order to attract investments in their respective states,
offer fiscal incentives in the form of sales tax deferrals. States like Haryana offer a freeze
on power tariff for 5 years, while Gujarat offers exemption from electric duty.

Economic : The industry is on the boom, with a lot of government infrastructure and
housing projects under construction. The export segment of the industry is expected to

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grow again on account of various infrastructure projects that are being taken up all over the
world and numerous outstanding cement plants coming up in near future in the country.

Social : The cement industry in India consists of both the organized sector and the
unorganized sector. Organized sector comprises of the well-known cement manufacturing
companies while the main players of the unorganized sector are the regional and local
cement-producing units in various states across the country. Indian consumers prefer
buying branded cement like Ultratech, Jaypee Cement, Lafarge Cement etc. A population
of more than 100 billion people, it is expected that cement industry will create another 25
lakhs jobs in the next 4-5 years.

Technology : The Government of India plans to study and possibly acquire new
technologies from the cement industry of world. The government is discussing technology
transfer in the field of energy conservation and environment protection to help improve
efficiency of the Indian cement industry. Cement industry has made tremendous strides in
technological up-gradation and assimilation of latest technology. At present 93% of the
total capacity in the industry is based on modern and environment-friendly dry process
technology.

2.2.2 Michael Porter’s Five Forces Model

1. Bargaining Power of Suppliers - High: excessive control on Coal and Power Prices &
Supply. Govt. authorities also control the transportation sector.
2. Threat of Substitute – Low: Use of Bitumin in Road construction and Engineering plastic
in Building creates some concern for the industry.
3. Barriers to entry – Medium to High: High Capital Investment (Rs. 3500 per Ton),
Distribution Network and Oversupplied market deters new entrants. However, Technology
and Manpower are easily available.
4.Bargaining Power of Buyers – Low: In recent past the cement industry is witnessing
major change in purchase Quantity. Now the share of Retail Purchase has been rising as

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compared to bulk. Now with the industry operating at 90% level increases the bargaining
power of manufacturers.
5.Rivalry among the Firms - High: Large number of players, overcapacity, High degree of
product homogeneity, High storage cost and high exist barriers, creates intensive rivalry
among the firms.

2.2.3 Competition Analysis

Below are the top 4 ACC Limited competitors:
1. Ultratech Cement
2. Mycem Cement
4. Prism Cement
5.Birla Cements
ACC cement was the first brand to win the Superbrand award in 2006 and 2007, Ultratech won
the same award in 2011. This shows that Ultratech has won the brand equity which once
belonged to ACC cement and the same is visible in statistics.
The other brands are penetrating the market where people can’t buy high price range cement.
Other brand like mycem cement goes to construction plants regularly and convert them by giving
services, perks and low prices. Dealers are shifting towards other brand because there is
restriction of selling only ACC cement which has less demand today.

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Chapter 3 APPROACH & METHODOLOGY

3.1 Tasks to be performed:

To accomplish the objective , I have performed various tasks in these six weeks. The main
objective was to know the sales performance of the ACC Cement and interest level of ACC
Cement. Organization wants to know the dealers’ and retailers’ turnover and the preference and
their opinion. So I have done following tasks:

1. Survey of Brickfields

2. Survey of cement shops

3.2 Detailed Analysis of the Task:

3.2.1 Survey of Brickfields: In this survey , Organisation needs the details of brickfields who
are interested in cement business. Organisation is ready to provide high margin to the
brickfields if they are ready to do business.

3.2.2 Survey of Cement shops: In this survey, Organisation needs the Cement preference and
present trend in the market. So that they can make their strategy accordingly. Also organization
wants the shop’s potential in terms of turnover, years in cement business, cement contribution in
shop and the extra services provided by other brands.

3.3 Approach of performing Tasks:

I explored different brickfields in the Lucknow region. And explored cement shops in area
Jankipuram,Jankipuram Extension and Indiranagar.As per the objective ,we have formed the
questionnaire to cover all the factors .I reached to every possible respondents and tried to know
the interest level and the reasons of shifting to other brands. In this six week Internship, I have
taken around 35 brickfield surveys and 100 cement shops surveys. This helped me in further
analysis of data

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3.4 Final Conclusion of Tasks:
In the end, Tasks have significance in providing suggestion to ACC Limited. ACC brand equity
is reducing in the area Jankipuram an Jankipuram Extension. Other brands such as Ultratech,
Mycem, Prism, Birla etc are covering the market there. ACC needs good market strategy to
maximize the sales in that areas.

Chapter 4 ANALYSIS & OUTCOME

4.1 Choice of Data Analysis Techniques:

I have used Quantitative marketing research technique to conduct surveys . In this type
of Market research technique , we have taken face to face interview and judgmental sampling
of the respondents. Primary data from the survey and secondary data from libraries, book and
internet are utilized.

For collecting more hard facts and shop’s potential in numbers ,I have selected quantitative
research technique. Face to Face Interview is taken to involve people more and take required
information in detail which is not possible by other means like phone, email etc. Our industry
mentor has selected the area by experience and skills so this is judgmental sampling.

4.2 Outcomes and Interpretation of Outcomes:

Market Analysis of Cement Industry
Indira Nagar region:
Que: Type of business Que: No. of years in cement business?

Interpretation: It is seen that Major shops are of cement. Interpretation: It is seen that
Maximum of 8 years old
cement shops
.

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 Que: Location of Shop Que:Home delivery System?

Interpretation: It is seen that Type of

Location is good majorly Interpretation: It is seen that All have home
delivery system

Que: What other construction materials do you deal in?

Interpretation: It is seen that Majorly Brick and sand as other construction materials

Que: How much does Cement contribute to your total sales?

Interpretation: It is seen that 26-50% cement contribution majorly in cement shops.

Que: What are the end customer-types you deal with?

Interpretation: It is seen that majorly Individual customer comes in the cement shops

Que: How many bags cement is sold in a month ?

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Interpretation: It is seen that 500-1000 bags and 1000-2000 bags cement is sold in month majorly
.

Que: current sales performance

Interpretation: It is seen that In this region ACC has nice sales performance

Que: Which Cement Brand do preferred the most?

Interpretation: It is seen that ACC is preferred most in this region

Que: future plan to Switch on other Brand?

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Interpretation: It is seen that Majority has plan to switch on other brand.

Chi-Square Test:

Null Hypothesis: Cement Contribution and Bags sold in month are independent.
Alternate Hypothesis: Cement Contribution and Bags sold in month are not independent.
In Chi-Square test, p-value=0.00010 which is < 0.05.
Interpretation: Alternate Hypothesis is true. That is Cement Contribution and Bags sold in
month are not independent.

Null Hypothesis: No of years in cement shop and future plan to switch are independent.
Alternate Hypothesis: No of years in cement shop and future plan to switch are not
independent.
In Chi-Square test, p-value=0.16631 which is > 0.05.
Interpretation: Null Hypothesis is true. That is No of years in cement shop and future plan to
switch are independent.

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Null Hypothesis: Bags sold in month and future plan to switch are independent.
Alternate Hypothesis: Bags sold in month and future plan to switch are not independent.
In Chi-Square test, p-value=0.00401 which is < 0.05.
Interpretation: Alternate Hypothesis is true. That is Bags sold in month and future plan to
switch are not independent.

Null Hypothesis: Cement Contribution and future plan to switch are independent.
Alternate Hypothesis: Cement Contribution and future plan to switch are not independent.
In Chi-Square test, p-value=0.05506 which is approximately equal to 0.05.
Interpretation: Here p-value shows that Cement Contribution and future plan to switch are
moving towards dependency.

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Jankipuram region:
Que:Type of business Que:No. of years in cement
business?

Interpretation : Major shops are of cement. Interpretation: It is seen that

Maximum of 8 years old
cement shops

Que:Location of Shop Que:Home delivery System?

Interpretation: It is seen that Type of Location

is good majorly Interpretation: It is seen that All have home
delivery system
Que: What other construction materials do you deal in?

Interpretation: It is seen that Majorly Brick and sand as other construction materials

Que: How much does Cement contribute to your total sales?

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Interpretation: It is seen that 26-50% cement contribution majorly in cement shops

Que: What are the end customer-types you deal with?

Interpretation: It is seen that majorly Individual customer comes in the cement shops

Que: How many bags cement is sold in a month ?

Interpretation: It is seen that 500-1000 bags cement is sold in month majorly .

Que:Current sales performance

Interpretation: It is seen that In this region Ultratech,mycem and Birla samrat has nice sales

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performance

Que: Which Cement Brand do preferred the most?

Interpretation: It is seen that Ultratech, mycem and Birla Samrat are preferred most in this region

Que: future plan to Switch on other Brand?

Interpretation: It is seen that Majority has plan to switch on other brand.

Chi Square Test:

Null Hypothesis: Cement Contribution and Bags sold in month are independent.
Alternate Hypothesis: Cement Contribution and Bags sold in month are not independent.
In Chi-Square test, p-value=0.00063 which is < 0.05.
Interpretation: Alternate Hypothesis is true. That is Cement Contribution and Bags sold in
month are not independent.

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Null Hypothesis: No of years in cement shop and future plan to switch are independent.
Alternate Hypothesis: No of years in cement shop and future plan to switch are not
independent.
In Chi-Square test, p-value=0.49894 which is > 0.05.
Interpretation:Null Hypothesis is true. That is No of years in cement shop and future plan to
switch are independent.

Null Hypothesis: Bags sold in month and future plan to switch are independent.
Alternate Hypothesis: Bags sold in month and future plan to switch are not independent.
In Chi-Square test, p-value=0.50465 which is > 0.05.
Interpretation: Null Hypothesis is true. That is Bags sold in month and future plan to switch
are independent.

Null Hypothesis: Cement Contribution and future plan to switch are independent.
Alternate Hypothesis: Cement Contribution and future plan to switch are not independent.
In Chi-Square test, p-value=0.57332 which is > 0.05.
Interpretation: Null Hypothesis is true. That is Cement Contribution and future plan to
switch are independent.

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Jankipuram Extension :

Que: Type of business Que: No. of years in cement

business?

Interpretation: It is seen that Major shops are of cement. Interpretation: It is seen that
Maximum of 5 years old
cement shops
Que: Location of Shop Que: Home delivery System?

Interpretation: It is seen that Type of Location

is good majorly
Interpretation: It is seen that All have home
delivery system

Que: What other construction materials do you deal in?

Interpretation: It is seen that Majorly Brick and sand as other construction materials

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Que: How much does Cement contribute to your total sales?

Interpretation: It is seen that 26-50% cement contribution majorly in cement shops

Que: What are the end customer-types you deal with?

Interpretation: It is seen that majorly Individual customer comes in the cement shops

Que: How many bags cement is sold in a month ?

Interpretation: It is seen that 500-1000 bags and 1000-2000 bags cement is sold in month majorly
.

Que:current sales performance

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Interpretation: It is seen that In this region Ultratech and mycem has very good sales
performance

Que: Which Cement Brand do preferred the most?

Interpretation: It is seen that Ultratech and Mycem are preferred most in this region

Que: future plan to Switch on other Brand?

Interpretation: It is seen that Almost Half of respondents have plan to switch on other brand.

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Chi- Square Test :

Null Hypothesis: Cement Contribution and Bags sold in month are independent.
Alternate Hypothesis: Cement Contribution and Bags sold in month are not independent.
In Chi-Square test, p-value=0.00294 which is < 0.05.
Interpretation: Alternate Hypothesis is true. That is Cement Contribution and Bags sold in
month are not independent.

Null Hypothesis: Cement Contribution and Future plan to switch are independent.
Alternate Hypothesis: Cement Contribution and Future plan to switch are not independent.
In Chi-Square test, p-value=0.27 which is > 0.05.
Interpretation:Null Hypothesis is true. That is Cement Contribution and Future plan to
switch are independent.

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Null Hypothesis: Bags Sold in Month and Future plan to switch are independent.
Alternate Hypothesis: Bags Sold in Month and Future plan to switch are not independent.
In Chi-Square test, p-value=0.09379 which is > 0.05.
Interpretation: Null Hypothesis is true. That is Bags sold in month and Future plan to switch
are independent.

Null Hypothesis: ACC preference and Future plan to switch are independent.
Alternate Hypothesis: ACC preference and Future plan to switch are not independent.
In Chi-Square test, p-value=0.06001 which is > 0.05.
Interpretation: Null Hypothesis is true. That is ACC preference and Future plan to switch
are independent.

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Chapter 5 Conclusion & Learning Outcome
5.1 Brief Description of Recommendations:
 ACC needs good branding strategy in the village areas of Jankipuram and Jankipuram
Extension.

 ACC needs to do financial study to increase some margin rates for the dealers who are
enjoying enough margin with other brands.

 ACC should remove restriction of selling only ACC products with dealers and retailers
from certain areas of Lucknow.

 ACC should expand its market outside India.

5.2 Learning from the project:

 I have learnt to deal with different people which has increased my people skills

 Work with team was the good experience as it increases the team spirit and coherence
which make work better by different brain and talents.

 I have learnt to use voice modulation, variations and loudness wherever it is necessary.

 I have taken knowledge of the industry and culture of working in the industry.

 I have learnt to manage time and health in these summer days.

 Every difficulty was the learning and made me more stronger next day to tackle the
situations.

5.3 Limitation of the Project:

 The location of the project was Lucknow region.

 The different people may give different responses as per their quality knowledge.

5.4 Scope of further Work:

 There are other areas of UP region where this study can take place.

 There may be more factors to do study for more accurate results.

 We can also take consumer surveys for more inputs to the study.

6. References:
www.acclimited.com
www.acchelp.in
7 Appendices:

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Page | 39
9 Out of 10 customers coming to your counter, how many ask for (in numbers)
ACC Ambuja JK JP
Birla Gold Shree Mycem Lafarge
Birla Samrt Prism Others (pl specify) Perfect
ULTRATECH

10 Are you having any future plan to Switch on other Brand ?

(1) Yes
(2) No

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