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Summer project report on

Factors leading to improvement of Brand Equity


for Ultratech Cement
SUMMER TRAINING/PROJECT REPORT SUBMITTED FOR THE PARTIAL
FULFILLMENT OF THE RERQUIREMENT FOR POST GRADUATE DIPLOMA IN
BUSINESS MANAGEMENT.

SUBMITTED BY:
AVIK KUMAR MUKHERJEE
PGDM 2009-2011
SBS NO. - SBS910387

Name of the Organization: ADITYA BIRLA GROUP, ULTRATECH


CEMENT
Place: ASANSOL, WEST BENGAL

SINHGAD INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION


NARHE, AMBEGAON
(PUNE - 411041)
DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “Factors
leading to improvement of Brand Equity for Ultratech Cement ” written and
submitted by me to the All India Council of Technical Education in partial
fulfillment of the requirements for the award of degree of Post graduate
diploma in Management under the guidance of
………………………………………………………….. is my original work and the
conclusions drawn therein are based on the material collected by myself.

Place : Pune (Name) AVIK KUMAR MUKHERJEE

Date: Research Student


GUIDE’S CERTIFICATE

This is to certify that the Project Report entitled “Factors leading to


improvement of Brand Equity for Ultratech Cement” which is being
submitted herewith for the award of the degree of Post graduate diploma in
Management of All India Council of Technical Education, is the result of the
original research work completed by Mr. AVIK KUMAR MUKHERJEE under
my supervision and guidance and to the best of my knowledge and belief
the work embodied in this Project Report has not formed earlier the basis for
the award of any degree or similar title of this or any other University or
examining body.

Place : Pune (Name of the Guide)

Date: Research Student


ABSTRACT

T
he project gives a broad outline on average monthly sales of different
brands of cement in Asansol market and Brand equity of different
brands in comparison to total sales and their present market share.
From the research I came across several interesting results about the dealer
and the retailer’s behaviour and response towards increment in sales of any
particular brand, and then steps are to be taken to matching the expectation
in case of UltraTech cement. From the analysis we are able to make aware
about the fact that the role of masons and dealers are impressive in hiking
the sales of any particular brand by influencing the customer.

The dealers and the sub-dealers dealing with UltraTech cement mainly for
customer’s demand, good quality, and the promotional activities. The factor
that attracts most for dealing with a particular brand is high margin. In
Asansol market, there are Three market leaders AMBUJA, LAFARGE and
ULTRATECH. There is a competition of beating each other in price because
most of the customers are price sensitive. From this project, I got a very
clear message from the respondents is that the best medium for
advertisement of cement is TV, followed by WALL PAINTING and
HOARDINGS. The overall brand image of UTCL is not fair enough in the
market. So UTCL has to grab the market by applying various marketing
strategies.

Some of the respondents said that the price of ultra tech cement is higher
than the market price, but also most of the respondents said that it has to
maintain high price for the shake of brand name. So UTCL can apply such a
policy that it can maintain brand value as well as it can fix the price as per
the market.

When we are talking about non-conventional or prospective cement retailers


who are running a shop which is related to construction supplies, those
retailers are interested to go for cement retailing but they want a high
margin. But this is the area in which UTCL can cover by converting those
prospective retailers into dealers or sub-dealers of UTCL. Maintaining a
effective relationship with dealers is required in most places.

From this project I got a lot exposure to cement market in Asansol and got
the insight of the relationship between manufacturer, retailers, and
customers.
PREFACE

I
t affords me a great pleasure to present this project report, since it
deals with a matter in which I am glad to take an active part. The goal
of this project report writing is to highlight some important outcomes
from the survey of brand positioning in the field of marketing.

This report has its coverage of all types of questions and the analytical and
graphical representation of those. The analysis has been made simple and
the graphical interpretation of those data have been made very clear to the
lay man too.

In writing this report I have consulted many books, references, and web
portals, they pay profound and grateful thanks.

Every effort has been made to present the subject in easy, clear, lucid, and
systematic manner. References at the end of report are given to cover more
advanced extension of the topics presented.

I convey my gratitude to all the persons who took an active part and always
served me their helping hand for the completion of my project work.

Avik Kumar Mukherjee


CONTENT PAGE

CONTENTS Page No

ACKNOWLEDGMENT 7

LIST OF TABLES 8

LIST OF FIGURES 9

CHAPTER I :Introduction 11

1.1 Basic Theoretical Concepts and Context of the topic 12


Brand Equity
Measurement of Brand Equity
Positive Brand equity VS. Negative Brand equity
Family branding VS. Individual branding strategies
1.2 Literature Review 13
1.3 Need of the study 15
1.4 Objectives of the study 16
1.5 Research Hypothesis 17
1.6 Scope of the study 18

CHAPTER II : Profile of the organization 19

2.1 Current status of the company 20


Jaan wahi Pehchaan Nayi
Strategy
Chak de India
Branded channels
Ultratech Concrete
Brand UltraTech
2.2 Future Plans of the organization 31

CHAPTER III : Research design & Methodology 33

3.1 Sampling Design 34


Sample Size
Sampling procedure
3.2 Source and methods of Data collection 35
Tools used
Instrument design
3.3 Limitations of the study 37
CHAPTER IV : Overview of Aditya Birla Group and UltraTech cement 38

4.1 History of Aditya Birla Group 39


Beyond business
4.2 UltraTech Cement 41
Milestones of UltraTech Cement
Products
4.3 L&T cement is now UltraTech cement 46
Distribution logistics
Different plant of UltraTech over India
Quality assurance system

CHAPTER V : Data presentation, Analysis and Interpretation 52

5.1 Data Interpretation of questionnaires for Cement sellers 53


Overall market share of different Brands in Asansol city
5.2 Analysis of questionnaires for Cement sellers 59
5.3 Analysis of questionnaires for Masons 67
5.4 Analysis of questionnaires for Individual House holders 68
5.5 Analysis of questionnaires for Petty contractors 69

CHAPTER VI : Conclusion 70

How do we research the Brand Equity 72


Executive summary of my work done 73
Recommendations 74

REFERENCE & BIBLIOGRAPHY : 78

ANNEXURE : 80

Questionnaire for Cement sellers 81


Questionnaire for Individual House holders 84
Questionnaire for Petty contractors 86
Questionnaire for Masons 89
Acknowledgement

This project is an analysis of different brands of cement in trade sector in


the Asansol market. This is an outcome of an honest conscious and sincere
effort spread over 60 days.

So I express my sincere thanks to all those with whom I have had the
opportunity to work and whose thoughts and insights have helped me in
competition of the project.

My sincere regards to Mrs. Apoorva Palkar (Director, Simca) for her


valuable guidance, encouragement and inspiration during all time in SIMCA.

My sincere regards to Prof. B. Sankaye (H.O.D, MKTG.) for his valuable in


Marketing, Strategy Building during the course of the project.

My sincere regards to Mr. Gaurav Dixit for his valuable guidance during the
course of the project.

My sincere regards to Mr. Partho Mukhopadhyay (UTCL) for his valuable


guidance, encouragement and inspiration during the course of the project.
He always give spread his helping hand in every possible way he can.
Without him the project cannot be done.

I am also indebted towards the respondents (dealers, petty contractors,


individual house builders and masons) for giving their steady response and
share their views and experiences.

My sincere thanks to the Dealers / sub-dealers for their valuable inputs.

All of above My sincere regards to my Parents, family, to god and a special


person for always giving me the positive energy to go out in the sizzling
heat and do my research.
LIST OF TABLES
LIST OF TABLES

Table No. Title of the Table Page No.

Table No. 5.1 Brand equity of leading brand in Zone-1 56

Table No. 5.2 Brand equity of leading brand in Zone-2 57

Table No. 5.3 Brand equity of leading brand in Zone-3 58

Table No. 5.4 Brand equity of different brands in Asansol market 59


LIST OF FIGURES

LIST OF FIGURES

Figure No. Title of the Figure Page No.

Figure No. 5.1 Market share for Zone-1 55

Figure No. 5.2 Market share for Zone-2 57

Figure No. 5.3 Market share for Zone-3 58

Figure No. 5.4 Overall market share in Asansol city 59

Figure No. 5.5 Most preferred brand by cement sellers of Asansol 61

Figure No. 5.6 Most preferred customer brand of Asansol 62

Figure No. 5.7 Frequency of marketing officers meet with retailers 62

Figure No. 5.8 Brand giving customized service in Asansol 62

Figure No. 5.9 Most effective promotional medium in Asansol 63

Figure No. 5.10 Factors attracts more while dealing with Brand 63

Figure No. 5.11 Why UTCL 64

Figure No. 5.12 Why not UTCL 64

Figure No. 5.13 Over all brand image of UTCL in Asansol 65

Figure No. 5.14 Expected services from manufacturers 66

Figure No. 5.15 What customer want 67

Figure No. 5.16 Suggestions from respondents 67

Figure No. 5.17 Rating of UTCL by Masons in Asansol area 69

Figure No. 5.18 Most preferred brand by Masons in Asansol 69

Figure No. 5.19 Most preferred brand by Individual House builders in Asansol 70

Figure No. 5.20 Most preferred brand by Petty contractors in Asansol 71


Chapter I

Introduction
1.1 Basic Theoretical Concepts and Contexts of
the Topic

Brand equity

Brand equity refers to the marketing effects or outcomes that accrue to a


product with its brand name compared with those that would accrue if the
same product did not have the brand name. And, at the root of these
marketing effects is consumers' knowledge. In other words, consumers'
knowledge about a brand makes manufacturers/advertisers respond
differently or adopt appropriately adept measures for the marketing of the
brand. The study of brand equity is increasingly popular as some marketing
researchers have concluded that brands are one of the most valuable assets
that a company has. Brand equity is one of the factors which can increase
the financial value of a brand to the brand owner, although not the only one.

Brand Equity is the value of a brand built up over a period of time. It is


composed of four components namely Image, Perception, Awareness and
Loyalty. However some researchers say that image and awareness are the
main components and the other two get covered in these two. To calculate
brand equity, both the tangible (functional) and intangible (emotional)
attributes are measured. The end result of the measurement is brand
equity. It’s quite complex and difficult to calculate brand equity. But to make
it easier to understand, I would say brand equity is the difference between
the expected future sales of a branded product and an unbranded product.
Now marketing masterminds have also come up with a new theory
"Customer Based Brand Equity" with models to measure it. The models to
measure brand equity are based mainly on conjoint analysis. However there
are many models and they may have different algorithms.... For detailed
information on Brand Equity you can refer "Managing Brand Equity" by
David Aaker and Economist Series on Brand Equity.
Measurement of Brand Equity

There are many ways to measure a brand. Some measurements approaches


are at the firm level, some at the product level and still others are at the
consumer level.

Firm Level: Firm level approaches measure the brand as a financial asset.
In short, a calculation is made regarding how much the brand is worth as an
intangible asset. For example, if you were to take the value of the firm, as
derived by its market capitalization - and then subtract tangible assets and
"measurable" intangible assets- the residual would be the brand equity. One
high profile firm level approach is by the consulting firm Interbrand. To do
its calculation, Interbrand estimates brand value on the basis of projected
profits discounted to a present value. The discount rate is a subjective rate
determined by Interbrand and Wall Street equity specialists and reflects the
risk profile, market leadership, stability and global reach of the brand.

Product Level: The classic product level brand measurement example is to


compare the price of a no-name or private label product to an "equivalent"
branded product. The difference in price, assuming all things equal, is due to
the brand. More recently a revenue premium approach has been advocated.

Consumer Level: This approach seeks to map the mind of the consumer to
find out what associations with the brand the consumer has. This approach
seeks to measure the awareness (recall and recognition) and brand image
(the overall associations that the brand has). Free association tests and
projective techniques are commonly used to uncover the tangible and
intangible attributes, attitudes, and intentions about a brand. Brands with
high levels of awareness and strong, favorable and unique associations are
high equity brands.

All of these calculations are, at best, approximations. A more complete


understanding of the brand can occur if multiple measures are used.

Positive brand equity vs. negative brand equity

A brand equity is the positive effect of the brand on the difference between
the prices that the consumer accepts to pay when the brand known
compared to the value of the benefit received.

There are two schools of thought regarding the existence of negative brand
equity. One perspective states brand equity cannot be negative,
hypothesizing only positive brand equity is created by marketing activities
such as advertising, PR, and promotion. A second perspective is that
negative equity can exist, due to catastrophic events to the brand, such as a
wide product recall or continued negative press attention (Blackwater or
Halliburton, for example).
Colloquially, the term "negative brand equity" may be used to describe a
product or service where a brand has a negligible effect on a product level
when compared to a no-name or private label product. The brand-related
negative intangible assets are called “brand liability”, compared with “brand
equity” .

Family branding vs. individual branding strategies

The greater a companies brand equity, the greater the probability that the
company will use a family branding strategy rather than an individual
branding strategy. This is because family branding allows them to leverage
the equity accumulated in the core brand. Aspects of brand equity includes:
brand loyalty, awareness, association, and perception of quality.

Examples

In the early 2000s in North America, the Ford Motor Company made a
strategic decision to brand all new or redesigned cars with names starting
with "F". This aligned with the previous tradition of naming all sport utility
vehicles since the Ford Explorer with the letter "E". The Toronto Star quoted
an analyst who warned that changing the name of the well known Windstar
to the Freestar would cause confusion and discard brand equity built up,
while a marketing manager believed that a name change would highlight the
new redesign. The aging Taurus, which became one of the most significant
cars in American auto history, would be abandoned in favor of three entirely
new names, all starting with "F", the Five Hundred, Freestar and Fusion. By
2007, the Freestar was discontinued without a replacement. The Five
Hundred name was thrown out and Taurus was brought back for the next
generation of that car in a surprise move by Alan Mulally. "Five Hundred"
was recognized by less than half of most people, but an overwhelming
majority was familiar with the "Ford Taurus".
1.2 Literature Review

India is the 2nd largest cement producer in world after china .Right from
laying concrete bricks of economy to waving fly over’s cement industry has
shown and shows a great future. The overall outlook for the industry shows
significant growth on the back of robust demand from housing construction,
Phase-II of NHDP (National Highway Development Project) and other
infrastructure development projects. Domestic demand for cement has been
increasing at a fast pace in India. Cement consumption in India is forecasted
to grow by over 22% by 2009-10 from 2007-08.Among the states,
Maharashtra has the highest share in consumption at 12.18%,followed by
Uttar Pradesh, In production terms, Andhra Pradesh is leading with 14.72%
of total production followed by Rajasthan. Cement production grew at the
rate of 9.1 per cent during 2006-07 over the previous fiscal's total
production of 147.8 mt. (million tons). Due to rising demand of cement the
sales volume of cement companies are also increasing & companies
reporting higher production, higher sales and higher profits. The net profit
growth rate of cement firms was 85%. Cement industry has contributed
around 8% to the economic development of India.

Outsiders (foreign players) eyeing India as a major market to invest in the


form of either merger or FDI (Foreign Direct Investment). Cement industry
has a long way to go as Indian economy is poised to grow because of being
on verge of development.

Despite the growth of Indian cement industry India lags behind the per
capita production. Supply for cement is expected to remain tight which, in
turn, will push up prices of cement by more than 50%. The most important
factor for better prices is consolidation of the industry. It has just begun and
we will see more consolidation in the coming years. Other budget measures
such as cut in import duty from 12.5 per cent to nil etc. are all intended to
cut costs and boost availability of cement.

Sadly the adverse effects of global slowdown have not speared this industry
too. Demand is sluggish, the government is keeping an eagle eye on prices,
domestic coal and pet coke, prices have increased sharply and utilizations
rates are down. The numbers coming out are a reflection of grim times. ACC
the country’s largest cement company that’s controlled by Swiss giant
HOLCIM, registered 2% fall in august sales. The biggest fall since Feb. 2007.
Production fell by 5%. To stand against the problematic situation,
government as well as cement industry has taken some steps. Companies
are focusing on cost of transportation.
One of the strategy is to decrease dependence on road & opt for sea
logistics as that can cut transportation cost by 30- 50 %. Some plants are
adopting futuristic plan such as setting up captive power plant, moving
closer to the customers by creating clicker, crushing, and capacity in key
markets, to be more customer centric to generate better revenue. India
should push for stricter regulations of market place as to control the prices
of big companies and prevent them from forming cartels and exchanging
information. To fight with the high inflation, government wants to import
more cement from Pakistan .However cement prices are not very much high
as other items but still they are increasing. And the reason of high price is
surging cost of raw material and transportation cost. Apart from this
government also discussed with cement industry not to have increase in
prizes and keep consumer interest in mind.

Now the question arise in front of the government is whether the demand by
the government is possible to increase through expenditure on
infrastructure or not according to the current state of economy when so
many crises are going on or how the government allocation of US$ 3.23
billion for the National Highway Development, Project will keep the demand
for cement alive? And to what extent the prices of cement should be
increase so that consumer can’t affect.
1.3 Need of the study:
• The Cement industry is one of the largest and most exciting sectors to
be working in today. It is a rapidly changing environment where many
advances have taken place over the past 20 years. Furthermore, it will
continue to develop and evolve at an ever- increasing pace over the
next decade. New technologies and exciting new discoveries have
driven this evolution.
• This is one of the research done for fulfillment of my study programme
of Post graduate diploma in Management.
1.4 Objectives of the Project

The objective can be achieved with respect to the following parameters.


• To know brand equity of different brands of cement in Asansol market.
• Especially to find out the brand equity of UTCL in Asansol area.
• To find out the market share of different brands in cement market of
Asansol.
• To know the thoughts and behavior of consumers towards UTCL in
Asansol Market.
• For conducting a comparative study of UTCL with respect to other
brands in Asansol.
• To understand the retail practices of UTCL in Asansol market.
• To find out the dealers and sub dealers perception towards UTCL.
• To Know the retailers services towards consumers in Asansol market.
• To find out the growth prospective of UTCL including the Behavior of
nonconventional retailers or the potential retailers of cement market in
Asansol area.
1.5 Research Hypothesis
Research Hypothesis is a tentative statement (“educated guess”) about the
expected relationship between two or more variables.

From this study what I wish to investigate is stated below.


• To know brand equity of different brands of cement in Asansol market.
• Especially to find out the brand equity of UTCL in Asansol area.
• To find out the market share of different brands in cement market of
Asansol.
• To know the thoughts and behavior of consumers towards UTCL in
Asansol Market.
• To find out the dealers and sub dealers perception towards UTCL.
• To Know the retailers services towards consumers in Asansol market.
• To find out the growth prospective of UTCL including the Behavior of
nonconventional retailers or the potential retailers of cement market in
Asansol area.
• To know how the cement market is working in each and every segment
of Asansol market.
• To know how the companies build any strategy to solve a problem.
• To know the Marketing strategy of UTCL and other companies.
• How the companies building relationship with dealers, sub-dealers,
retailers, whole sellers and end users.
• How Whole sellers, dealers, retailers building relationship with the
customer.
1.6 Scope of the Study

Though this research has been made for fulfillment of my course structure of
Post graduate diploma in Management, even I can say from this study I
have learnt a lot and the fulfillment of below said matters.

• I have learnt a lot about the Cement selling details, about promotion of
cement, about distribution of cement, about pricing of cement, about
the cement market etc.

• The learning can give me a exposure in a cement company or any


FMCG or FMCD or any Pharmaceutical company, as a fresher.

• This research is fully made on Primary data Collection, it’s shows that I
can handle pressure & it’s a added advantage to grab a good company
after completion of my course.

• With the help of this research, I can easily conduct any research if
after getting a job my company give me any responsibility to conduct a
research programme.
Chapter II
Profile of the Organization
2.1 Current status of the company
In step with its global agenda, the cement business of the Aditya Birla
Group, is orchestrating a contemporary brand makeover. With UltraTech
Cement, the Aditya Birla Group has established itself as not only the most
respected domestic player but also among the global leaders in cement.
Associate Editor Vidyut Kumar Ta in an exclusive interview with O.P.
Puranmalka, Group Executive President, Grasim Industries and Chief
Marketing Officer, UltraTech Cement Limited, analyses the strategy behind
promoting a single brand identity of the company's cement products.

The Indian cement industry is on a roll. Driven by vertical-trajectory


infrastructure development, a booming housing sector and surging global
demand, the cement industry has ramped up production capacity, sparking
off a spate of mergers and acquisitions to spur growth.

The demand for cement is linked to the pace of economic development in


any country. Broadly, this can be categorised into demand for housing
construction (homes, offices, etc.) and for infrastructure creation (ports,
roads, dams, power plants, etc). The real driver of cement demand is new
infrastructure. Although cement is a typical cyclical industry, a huge
potential market and rapid growth have led to a surge in cement demand.

Keeping pace with the expanding demand for cement, the cement business
of the Aditya Birla Group has integrated its national cement brands into one
entity — UtlraTech Cement. Jaan Wahi, pehchaan nayi — this new brand
identity sums up the ultimate promise — a forceful statement that
communicates the business benefit of the level of service and quality that
the company provides to its customers and partners.

Just a few years ago, the Aditya Birla Group bought over the cement
business of L&T for around Rs. 2,200 crore. L&T allowed its name to be used
for about a year. O.P. Puranmalka, Group Executive President, Grasim
Industries, and Chief Marketing Officer, observes that in a very short time
the company had to establish a new brand name in the minds of the people
and use the L&T mind space. The task was Herculean. Explaining the
strategy behind the new brand name, Mr. Puranmalka says: "We wanted to
capture the gene code of L&T in the new brand name. So we commissioned
research on customer perception about the L&T Cement brand. Of course,
we were very sure in our minds that L&T Cement epitomised engineering
prowess, technology quality and modernity."
The research findings threw up the same qualities, but the name itself was
not associated with anything tangible because L&T was not by itself a
meaningful word. Moreover, the group wanted a new brand image, which
portrayed the intrinsic premium value of the brand — on cue from the
findings of the survey. The outcome was UltraTech Cement. Mr. Puranmalka
insists "nothing has changed except the name". There is no doubt that, with
the unveiling of this new brand identity, the Aditya Birla Group implemented
one of the largest brand transition exercises in India in the category.

Says Puranmalka: "The name UltraTech with the signature line, 'The
Engineer's Choice', admirably captures the premium nature of the brand and
its salience." According to Mr. Puranmalka, excellent product quality and
customer care will remain the hallmark of UltraTech cement.

Jaan Wahi Pehchaan Nayi

Keeping pace with the current industry


trend and taking the UltraTech brand to
a new pedestal, the group decided to
have one national brand. Birla Plus with
its very strong presence in the North
was a very well known brand. Its tag
line 'Har Nirman Ki Jaan' and 'Is cement
mein Jaan Hain' had become household
phrases. Observes Mr. Puranmalka: "We
opted for UltraTech as the national brand because while on the one hand, it
gives us the opportunity to strengthen common attributes of a premium
brand, scale of operations and the Aditya Birla Group's reputation, it also
provides an opportunity to build on the positioning platform of 'expert' and
imagery signifying 'progress', 'cutting edge technology' and 'modernity'.

While highlighting the need to present a single and unified brand identity
across the country, Mr. Puranmalka stressed the fact that with this change,
only the name of Birla Plus was being changed to UltraTech Cement and the
core values and fundamentals on which Birla Plus was built will remain the
same. "While both the brands have different identities and personalities, the
core or the soul of both the brands is the same - i.e., Aditya Birla Group's
lineage, superior product quality, premium cachet, trust and reliability. That
is not changing and therefore our campaign is centred on the theme of 'Jaan
Wahi, Pehcaan Nayi'," says Mr. Puranmalka.
Strategy
Although cement is said to be a low-involvement category, the brand
awareness in this category is very high. Major brands like ACC, Ambuja and
some strong regional brands have been fighting for mind space. Says Mr.
Puranmalka: "Brand awareness is the category driver. We wanted to be
different and were constantly on the look out for high visibility media. We
found that cricket has a great following in our country and we wanted to
explore the possibility of associating with this sport.

"Starting with in-stadia branding, we moved on to be the co-sponsor to the


Indo-Pak series held in Pakistan. This turned out to be a great success for
both the Indian team as well as us. To further strengthen the bonding with
the channel partners, over 400 of them were taken to witness the match. It
was a glorious and unforgetful experience of visiting Pakistan. This was an
event by itself."

Chak De India

India, the world's largest producer of movies in as many as 10-12 different


languages, provides a great opportunity for advertisers to reach the masses.
Films are a great entertainment platform for
most Indians. Many FMCGs have encashed
this opportunity. The in-film branding
opportunity was used by UltraTech for the
first time ever in the cement industry. The
film Chak De India, promoting women's
hockey in India, became an all-time hit. In
the movie UltraTech was the sponsor of the
Indian women's hockey team. UltraTech branding was all over, throughout
the movie. 'It was a big gamble we took," says Mr. Puranmalka. "Initially we
were sceptical, with many big banners with big stars failing in the recent
past. After a lot of deliberation, we decided to go ahead with this gamble
and finally Chak De India almost became like a national anthem, with India
winning the women's hockey title in reality and our cricket team winning the
inaugural 20-20 World Cup."

Branded channels

Surging ahead of competition, the cement business brought in a new


concept in cement marketing — UltraTech Building Solutions, a one-stop
shop for all construction needs. "This is a unique concept and was tested in
Rajkot which is one of the fastest-growing cities in construction in the
country today," says Mr. Puranmalka. "Advocating our Plan, Build and
Support" philosophy, it seeks to enhance the shopping experience of
customers and strengthen existing trade partnerships, by upgrading the
service proposition. It offers a wide spectrum of end-to-end home building
solutions, high quality construction materials and allied value-added
services. As a business model, UltraTech Building Solutions offers home
building solutions from planning to completion.

Basically, every customer who walks in to UltraTech Building Solutions outlet


receives guidance on construction-related issues as well as value-added
services like Vastu, usage of budget software to estimate costs involved for
construction, paper clearance procedures, etc. The customer gets a ready
reckoner of information on how to choose and buy quality construction
materials. With the Rajkot success and with key learning points, the
company intends to open many more outlets across the country.

UltraTech Concrete:

While the economy is growing, timely completion


of infrastructure projects has become more
challenging. With emerging technologies, one no
longer has to maintain huge stocks of cement
and allied products, create chaotic environment
and increase costs; ready-made concrete is the
answer. The company forayed into the ready mix
concrete about eight years back. With its first
plant commissioned in Hyderabad, ready mix concrete was sold as a brand,
'Birla Ready Mix'. True to its tagline 'concrete on call', the company was able
to capture the imagination of customers and service them round the clock.
"The concept was new then," says Mr. Puranmalka. "It was more of concept
selling than a product. We had to tailor-make our communication around
issues in comparison with the site mixed concrete, quality consistency,
concrete testing facility, ease of handling, technology, etc. In a very short
time Birla Ready Mix Concrete became a generic name. The success of the
brand led to the opening of a few more plants in Hyderabad itself and
expansion to other states pan-India. With the transition of Birla Plus to
UltraTech Cement, even Birla Ready Mix Concrete was rechristened
UltraTech Concrete'.

"Our UltraTech concrete plants are present in Mumbai, Pune, Nasik, Nagpur,
Ahmedabad, Surat, Gurgaon, Noida, Jaipur, Chandigarh, Chennai,
Bangalore, Hyderabad, Cochin, Vizag, Ludhiana, Raipur and Kolkata and
many more are coming up," says Mr. Puranmalka.

Keeping in tune with the latest technology, UltraTech Concrete offers


speciality concrete like UltraTech Fibrecon, a fibre reinforced concrete,
UltraTech Free flow, UltraTech colorcon, UltraTech stainless, a corrosion
resistant concrete, and UltraTech Thermocon. This wide array of choices will
help customers choose the right type of concrete that suits their
construction needs.

UltraTech Cement has 11 integrated plants, seven split grinding units and
five bulk terminals, including one in Sri Lanka. UltraTech is India's largest
exporter of cement and clinker. The total cement capacity of the Aditya Birla
Group is 31million tpa.

O.P. Puranmalka: Brand UltraTech


Excerpts from an interview with O.P. Puranmalka, Group Executive
President, Grasim Industries and Chief Marketing Officer, UltraTech Cement
Ltd.

Why are you opting for a single national brand?


Cement is an integral part of the Aditya Birla Group's business and a clear
focus area. The integration into one national brand is proof of that and a
signal of the Group's commitment to take it further. The new beginning with
UltraTech Cement as a national brand for the Group will not be a departure
from the fundamentals that created Birla Plus. In fact, it will be an
acceleration of that.

We would like to present a common and unified brand identity across the
country. We have therefore chosen UltraTech Cement as the national brand
for the Aditya Birla Group's cement business. Presently, we have two power
brands in the country, but they operate in different markets and neither of
them is a pan-India brand, in the real sense. While both the brands have
different identities and personalities, the core or the soul of both brands is
the same, i.e. the Aditya Birla Group's lineage, superior product quality,
premium cachet, trust and reliability.

Since the DNA of the brands is same and the core promise of the brands is
also similar, we felt that we would be better off with one national brand.
With over 25 million tonnes per annum volumes, we now have UltraTech as
the single largest cement brand in the country. With a single brand, it is
easier to enter the hearts and minds of the consumer. We feel that
combining the strengths of the two brands and two teams will have a
multiplier effect on the quality of our service and therefore the brand equity.

Why have you opted for Ultratech Cement when you have strong
existing brands such as Birla Plus? Why not vice-ersa?
Once we internally analysed that there
were great synergistic benefits that
accrue to consumers as well as the
companies by transiting to a single
national brand, it was a question of
choosing either of our two national
brands, i.e. Birla Plus or UltraTech
cement.

This was not easy as both brands enjoy


substantially high brand equity in their
respective markets of operation and have a very high emotional connect
with customers. Both are the most recognised brands in the category.
Birla Plus came through as a good quality brand with a very powerful and
popular brand name. What remained peripheral were technology and
dynamism. UltraTech on the other hand came across with a more
contemporary and modern imagery.

We opted for UltraTech as the national brand because while on the one hand
it gives us the opportunity to strengthen common attributes of a well-known
brand, scale of operations and the Aditya Birla Group's reputation, it also
provides an opportunity to build on the positioning platform of "expert" and
imagery signifying progress, cutting edge technology and modernity. The
brand UltraTech has extremely positive associations and awareness even in
non-UltraTech markets such as the north zone.

Why are you not using the “Birla” brand name?


As mentioned earlier, the Aditya Birla Group's lineage is our core strength
and the UltraTech brand also has benefited from this association.

While for the product brand name we are not using the "Birla" brand name,
but in all our communication, whether to mass media like press, television,
outdoor or retail branding, the Aditya Birla Group lineage comes across very
strongly.

In fact, that is why we used the Jaan Wahi, Pehchhan Nayi as our campaign
theme. It is a change we are making with great care, as we do not wish to
jettison the strengths we have currently and move to unchartered territory.
The core of Birla Plus' positioning - trust, reliability and the Aditya Birla
Group's lineage - will continue in its new avatar, i.e. UltraTech. The change
will add and not subtract from the equation.

Will there be financial / economical gains due to the single national


brand?
As pointed out earlier, the single national brand exercise is aimed primarily
at developing a common and unified brand identity across the country. This
exercise is not driven by financial gains.

How different were the two brands and how do you see UltraTech
evolving post this transition?
Birla Plus had evolved into a significant brand and it stood for a set of values
of simplicity, smartness and reliability. With our campaigns of establishing it
as Har Nirmaan Ki Jaan we brought in a bit of gorgeousness and lot of
charm into the brand whereas UltraTech Cement was a brand on its own
without any history. Our brand track researches suggest that it is probably
the fastest growing cement brand in terms of equity and brand awareness.

By combining the soul of Birla Plus with the imagery of UltraTech, the brand
will be distinctive and powerful, have distinctive lineage, with clear
"technology" perceptions. In other words, we see UltraTech as being truly
competitive, differentiated and having a strong and clear equity. The
UltraTech brand aims to generate its strength by creating and consistently
delivering distinctive performance benefits with compelling emotional
benefits found in the brand personality.

How much will change now that Birla Plus will not be used as a
brand? What are the changes being incorporated after the launch of
UltraTech as the national brand?

Nothing much will change after this brand


name change. Birla Plus will now be
known as UltraTech cement and that is
the only change. The same state-of-the-
art technology will continue to provide the
same unmatched quality. The same team
of efficient technicians will manage these
production facilities to provide a world-
class product that consumers have been
used to all these years. The same
committed and dedicated field force will be there in the market to provide
the same level of customer care, which has made this product so loved by
consumers.

Therefore technically speaking it is not a new brand but only a new name for
Birla Plus. Nothing else has changed and hence Jaan Wahi, Pehchaan Nayi.

What is the risk that the premium enjoyed by Birla Plus brand will
not be lost in this brand transition?
Since essentially the Jaan of the brand is not changing and we are only
giving it a new Pehchaan, we are confident that there will be no dilution in
either the volumes or the premium commanded by the brand.

A brand, as perceived by the only legitimate judges - our customers - is the


sum of all their interactions with our company. Every place a customer can
interact with our company is a touch point, and that touch point affects how
we are perceived. A poor experience with one touch point can negate all the
brand equity we build in other touch points. The premium is built on the
basic characteristics of the brand. This basic character has its origin in the
people who own the brand, the internal processes that support the brand
and the trade partners who distribute the brand.

As I have said at various points the only thing that will change in this entire
process of transformation is the name of the brand and everything else
remains the same. The premium quality, the enormous technological
backing, a dedicated team of technicians and managers and a commitment
to serve the nation was what made Birla Plus so successful. Added to this
were a team of dedicated, committed and resourceful trade partners and
other service providers. This combination was responsible for placing Birla
Plus cement so high in consumers' estimation and that combination is still
intact.
Will you have a common team to look after the brand and what will
the advantages of that?
With a common team looking after one national brand, we would be in a
better position to provide a synergistic, consistent and superior service
across the country. A common team has already been put in place
internally. These teams are now building on each other's strengths,
providing knowledge integration and exploiting synergistic opportunities. We
now intend to take this forward to our team of dedicated, committed and
resourceful trade partners and other service providers.

What are your major markets and where do you plan to expand?
With this brand transition of Birla Plus to UltraTech, the brand UltraTech
Cement enjoys a leadership position in practically all the markets it sells in.
It also becomes the single largest cement brand in the country with a pan-
India presence. We plan to consolidate our leadership position in these
markets and complete the process of transition to UltraTech in the next few
months. Certain capacity expansions have already been announced. We will
be adding 15 million tonnes capacity in 2008-09.

Ready Mix Concrete is a key focus area for us and we have lined up
expansion plans for this business.

How are you going to generate awareness about the brand?


Instead of focusing the brand essence on merely product attributes or brand
personality, a conscious effort is being made to focus brand essence on a set
of touch points through which the brand can deliver a consistently distinctive
and inspiring customer experience.

We have planned a series of product awareness launches across the country


over the next couple of months. These ground events will be accompanied
by road shows to create awareness about the product amongst consumers
and trade partners. We will also organise technical meets with dealers,
stockists, retailers, individual house builders, engineers, architects, masons
and contractors to reassure them that UltraTech will have the same quality
that they have come to expect in a premium product. In addition, a brand
new television commercial, an innovative press campaign and creative
usage of outdoor media will also be helping spread awareness about the new
product.

What kind of marketing spends are envisaged in next few months?


The strength of such brands is matched only by the speed at which they are
being built. Given the scope and scale of the brand leverage effort, an
attempt has been made to build a much tighter link between corporate
strategy and brand strategies. The brand is being seen as an asset that can
drive growth and its positioning reflects not only existing markets, but also
emerging opportunities.
The spending on the brand is being truly viewed as an investment in a
dynamic asset that can be leveraged into new offerings, markets and
audiences. The spending on the brand will be enough to communicate the
transition and will not be wasteful.

What was the brief given to the


advertising agency and its creative
team? Are there any new promotional
schemes for the next few months?

Since Birla Plus cement had developed


strong personality dimension, it was
decided that UltraTech would appropriately
maintain a focus on the core personality
elements to ensure that there is no dilution
in core equities during the re-naming
exercise.

The agency was asked to design communication at all touch points to


effectively communicate that the only thing that has changed in this entire
process of transformation is the name of the brand and everything else
remains the same. Hence the campaign - Jaan Wahi, Pehchaan Nayi.

The brief also ensured that in this process of transition, none of the values
or attributes should be lost or diluted. The communication had to be
designed in such a manner.

What is the industry scenario for 2008?


The continued emphasis given by the government in the recent past on the
development of infrastructure like roads, ports and urban infrastructure like
flyovers, etc. means that cement demand will continue to rise. Similarly,
developments in the housing (especially rural housing) sector have also
added to the growth of the cement market. This is in spite of the fact that
the per capita consumption of 110 kgs is below the world average of 356
kgs and far below that of the Asian economies like China and South Korea.
This provides a tremendous opportunity and the cement sector is poised for
exponential growth. We may witness continued consolidation efforts in the
industry.

What are your rural marketing plans?


The various initiatives taken by the government recently have given a boost
to the rural economy. The rate of growth of the housing sector in the rural
segment is increasing every year. UltraTech is already well represented in
the rural markets and we are planning various initiatives, which will help us
grow in this sector. For obvious reasons I am unable to share these plans at
this stage. These will include providing technical assistance to masons and
contractors, teaching them more cost-efficient construction methods and
usage of eco-friendly cement and cement products.

UltraTech unveils a new campaign


What do consumers expect from a leader?
Everyone looks up to a visionary leader to understand the possibilities
tomorrow holds. And you have a greater responsibility to bear when you are
India’s largest cement company.

In the present day context, UltraTech is playing an important role in the


infrastructural development of the country. No wonder, UltraTech’s every
creation is a window to tomorrow. And an effective communication was
needed to reflect the same.

According to Mr. O.P. Puranmalka, Group Executive President, Cement


Business, Aditya Birla Group, the challenge was to create an emotional
connect while retaining the technological superiority. The communication had
to furthermore reinforce UltraTech’s position, cue leadership and take the
brand to the next level.

It was quite a daunting task for Interface Communications, the advertising


agency for UltraTech, to get the right mix of emotions and technological
superiority that appeals to everyone right across IHBs to architects and large
commercial establishments.

The agency developed an idea that turned out to be one of the most distinct
and clutter-breaking films the Indian viewer has seen. It is also a logical
extension to the expert platform that seamlessly cuts across segments and
takes the communication to the next level through a simple theme – ‘Har
badalte aaj mein, maine kal ko dekha hain.’

According to Puranmalka, “The film provides a great mix of emotions blended


with eye-catching technology through superior graphic work. The
communication reinforces UltraTech as an expert in continuous pursuit to
achieve perfection.”

The film has received rave reviews from everyone in the industry and
consumers. According to Rajesh Saathi, Director, Keroscene Films, “It’s the
simplicity of the idea that actually made this a piece of marvel.” Evidently,
the campaign is able to cut across the masses and connect with people in
cities as well as villages. That’s the power of an idea. And today along with
the leader, every Indian says: ‘Har badalte aaj mein, maine kal ko dekha
hain.’
2.2 Future plans of the Organization
As of December 2009, UTCL has planned a capex of Rs.2,000 cr over FY10-
12 for setting up a 25MW Thermal Power Plant at its unit in Awarpur,
Maharashtra; additional grinding and evacuation facility at its unit in Gujarat
and waste heat recovery systems across units for generating power out of
waste gases. The funding of the same will be done through internal accruals.
The current 256MW captive thermal power plant caters currently to ~80% of
the power required by UTCL. About Rs.800 cr of the total capex is assumed
to have been spent in FY10, Rs.1,000 cr would be spent in FY11 and the
balance would be utilized by FY12.

The current cement capacity stands at 23.1 mtpa. The 4.9 mtpa capacity
Tadpatri plant commissioned in Q4FY10 could help in boosting volumes in
FY11 and FY12. However, given the additional capacities coming in the
industry, this could result in cement prices softening and thereby leading to
lower overall realisations on y-o-y basis in FY11.

UTCL plans to minimise the impact of lower realisations and softening of


prices by strengthening their logistics infrastructure and keeping power and
fuel cost under control.

The Board of Directors at its meeting held on April 29, 2010 have approved
the acquisition of ETA Star Cement Co. LL, Dubai. At an enterprise value of
Rs.1,700 cr, which translates into an EV/Ton of US$126. It has cement
operations UAE, Bahrain and Bangladesh. The acquisition will be carried out
by capitalizing ‘UltraTech Cement Middle East Investment Ltd, UTCL’s wholly
owned subsidiary. The deal will be funded through a mix of debt and internal
accruals. ETA Star has a market share of 10% and 20% in Abu Dhabi and
Bahrain, respectively. ETA Star’s manufacturing facilities include a 2.3
million ton clinker plant and a 2.1 million ton grinding plant, both in the
United Arab Emirates, a 0.4 million-ton grinding plant in Bahrain and a 0.5
million ton grinding plant in Bangladesh. This acquisition along with the
amalgamation of Samruddhi Cement will increase UTCL’s total capacity to
52 MTPA.
As per the management, the transaction would be completed by end of
Q1FY11, and would be accretive to its earnings per share. The acquisition is
in line with UTCL’s long-term strategy of expanding its global presence
across businesses. The acquisition would give UTCL the advantage of size.
Apart from adding value to its capacity, it will benefit UTCL as Abu Dhabi
and Bahrain’s real estate markets are not as depressed as Dubai. The
economies of both Abu Dhabi and Bahrain are largely driven by oil, which,
given the recent rise in crude prices, could soon revive construction activity
and boost demand for cement.

The Board of Directors at its meeting held on November 15, 2009 approved
the amalgamation of Samruddhi Cement Ltd with UTCL in terms of a
Scheme of Amalgamation under sections 391 to 394 of the Companies Act,
1956 (“the Scheme”). The appointed date of the amalgamation is 1st July,
2010. The Board has also approved the share exchange ratio of 4 (four)
equity shares of the Company of face value Rs. 10/- each for every 7
(Seven) equity shares of Samruddhi of face value Rs. 5/- each. The Cement
Business of Grasim Industries Limited (“Grasim”), the holding company, is
currently under demerger to Samruddhi and the Scheme will take effect only
upon completion of the demerger and issuance of shares of Samruddhi to
the shareholders of Grasim pursuant to the demerger. On the completion of
this scheme, UltraTech is expected to emerge as the largest Cement and
RMC entity in the country, and 10th largest in the world in cement capacity.

Grasim, announced demerger of its cement business into its wholly owned
subsidiary Samruddhi Cements Ltd, which will ultimately be merged with
UTCL to make it the largest pure cement player in the country. The board of
UTCL has approved the restructuring. The first leg of the restructuring
process i.e. demerger of Samruddhi from Grasim has been sanctioned at the
High Court of Indore on March 31, 2010 but is yet to be sanctioned by the
High Court of Gujarat. The second leg of restructuring is expected to be
completed by July/August 2010.

Going forward, UTCL has indicated that the industry demand for cement
could grow by 10% due to initiatives being taken by the Government on the
infrastructure front. However, it is expected that the industry will witness a
surplus scenario in FY11 with the management expecting addition of 30
MTPA during the year and this could result in pressure on margins. Capacity
utilization rate is expected to be ~80% and this too could put pressure on
margins. The management has indicated that it will focus on higher growth
together with cost efficiency that could partially offset the pressure on its
margins it could face due to the oversupply scenario.
Chapter III
Research Design and Methodology
3.1 Sampling Design

Survey has conducted by circulating questionnaires among the dealers


and sub-dealers, in Asansol market.
Data source: Data collected first hand directly from the retailers /
stockiest by questioning them.
Sampling unit: Since there are so many cement outlets in Asansol, the
universe of survey included all cement retailers of Asansol city. As well as I
have to cover the potential retailers of cement like:
a) Paint shops
b) Hardware shops
c) Marble shops

SAMPLE SIZE
a) 50 samples have been taken from the all cement outlets of Asansol.
b) 30 samples have been taken from the Petty Contractors of Asansol.
c) 30 samples have been taken from the individual house builder
d) 30 samples have been taken from masons.

SAMPLING PROCEDURE
A sample is that by selecting some element from the population and by
using the information we got from the sample we can draw conclusion about
the population. All the samples have randomly selected by zone wise.
3.2 Source and methods of Data collection
Area of study: Asansol, West Bengal.
The design guides selection of sources and types of information. A research
design is based on research questions. The market survey conducted on
dealers, sub-dealers over Asansol city.
For convenience I have divided the whole Asansol in to 3 zones those
zones with covering area are given below. I have taken my sample from
these 3 zones.
• Zone-1 – area from Asansol Court to Mahishila.
Asansol Court market, Sreepally more, Budha more, Ismail more, SD
Hospital more, Battala Bazar, Mahishila.
• Zone-2 – area from LIC Asansol more to Asansol Bazar
Bhagat Singh more, Kalyanpur housing colony, Asansol Bazar
• Zone-3 – Court more to Burnpur Busstand
Court more, Rabindranagar, Chitra more, Nimtala more, Burnpur.
TOOLS USED
Various tool which will be used in this research are given below
1) Questionnaire of four types
a) for cement sellers.
b) for Petty Contractors.
c) for Individual house builders.
d) for Masons.
2) For analysis of data
MS Excel
INSTRUMENT DESIGN
Questionnaire will be selected as research instrument with the following
features
1) Closed end questions
2) Open end questions
Facts kept in mind while preparing the Questionnaire
A) Questionnaire made simple and easy to understand.
B) Respondents were provided with multiple-choice questions.
C) Questions on suggestions and comments were kept open ended.
3.3 Limitation of the Study
The research method and research reports may not be completely free
errors and drawbacks. There will be some of the study, which should be
known to the researcher and must be accepted while preparing the report.
The hide out limitations must be dangerous to the research as well as to the
executive because they may use the conclusion and recommendation
without caring for the limitations. That may be prove to be fatal organism
while implementing the measure suggested after the analysis of the report.

• The project was done only for Asansol city. Therefore, the report could
have been better one if it can cover more areas of Asansol.
• This project report covers mostly urban areas so the perception of the
rural people might be differ from it.
• The respondents are unenthusiastic to answer the questions in the
absence of the owner.
• Some of the respondents really had no sales information as they said
they have never calculated the average sales.
• The respondents refused to answer during the business hours for
which I had it visit them several times.
• Some of the respondents were very casual when answering the
questions.
• The prospective cement respondents have shown their anger while
answering the questions the question because they said they don’t
want to start cement business and refused to give any suggestion for
improvements in UTCL’s marketing.
• Due to time, money and piercing heat constraint I could not cover all
the cement retailers in Asansol city.
CHAPTER: IV
OVER VIEW OF ADITYA BIRLA
GROUP AND
ULTRA TECH CEMENT
4.1 HISTORY OF ADITYA BIRLA GROUP
The Aditya Birla Group is India’s first truly multinational corporation.
Global in vision rooted in India values, the Group is driven by a performance
ethic pegged on value creation for its multiple stakeholders. A US$ 8.3
billion conglomerate, with a market capitalization of US$ 14 billion, it is
anchored by an extraordinary force of 72,000 employees belonging to over
20 different nationalities. Over 30 percent of its revenues flow from its
operations across the world. The Group’s products and services offer
distinctive customer solutions. Its 72 state-of-the-art manufacturing units
and sectoral services span India, Thailand, Indonesia, Malaysia, Philippines,
Egypt, Canada, Australia and China.
A premium conglomerate, the Aditya Birla Group is a dominant player
in all of the sectors in which it operates. Such as viscose staple fiber, non-
ferrous metals, cement, viscose filament yarn, branded apparel, carbon
black, chemicals, fertilizers, sponge iron, insulators and financial services. It
is:
The world No. 1 in viscose staple fiber
The world’s largest single location palm oil producer
A non-ferrous metals powerhouse and among the world’s most cost
efficient producers of aluminium and copper.
The world’s largest single location world-scale copper smelter
The world’s No.1 in insulators, with its joint venture with NGK of Japan
Globally, the fourth largest producer of carbon black
The 11th largest cement producer in the world and the seventh largest in Asia
India’s Premier branded garments player
Among the world’s best energy efficient fertilizer plants
India’s second largest producer of viscose filament yarn
The No.2 private sector insurance company, and the fourth largest
asset management company in India
BEYOND BUSINESS
A value-based, caring corporate citizen, the Aditya Birla Group
inherently believes in the trusteeship concept of management. Part of the
Group’s profits are ploughed back into meaningful welfare-driven initiatives
that make a qualitative difference to the lives of marginalized people. These
activities are carried out under the aegis of the Aditya Birla Centre for
Community Initiatives and Rural Development, which is spearheaded by
Mrs. Rajashree Birla.

A US $28 billion corporation with a market cap of US $31.5 billion and in the
league of Fortune 500, the Aditya Birla Group is anchored by an
extraordinary force of 100,000 employees, belonging to 25 different
nationalities. In India, the Group has been adjudged "The Best Employer in
India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall
Street Journal Study 2007. Over 50 per cent of its revenues flow from its
overseas operations.

The Group operates in 20 countries: India, Thailand, Laos, Indonesia,


Philippines, Egypt, China, Canada, Australia, USA, UK, Germany, Hungary,
Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea.

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where
success does not come in the way of the need to keep learning afresh, to
keep experimenting.

The Aditya Birla Group, India's first multinational corporation, traces its
origins back to the tiny village of Pilani in the Rajasthan desert, where Seth
Shiv Narayan Birla started cotton trading operations in 1857. Today, the
Group's footprint extends to 20 countries and its revenues are US$ 28
billion.
4.2: ULTRA TECH CEMENT
UltraTech Cement Limited, a Grasim subsidiary has an annual capacity of
48.8 mt. It manufactures and markets Ordinary Portland Cement, Portland
Blast Furnace Slag Cement and Portland Pozzolana Cement.

UltraTech has five integrated plants, five grinding units and three terminals
— two in India and one in Sri Lanka. These include an integrated plant and
two grinding units of the erstwhile Narmada Cement Company Limited, a
subsidiary, which has been amalgamated with the company in May 2006.

UltraTech is the country's largest exporter of cement clinker. The company


exports over 2.5 million tonnes per annum, which is about 30 per cent of
the country's total exports. The export markets span countries around the
Indian Ocean, Africa, Europe and the Middle East.

The cement division of L&T was demerged in 2004 after Grasim made the 30
per cent open offer for equity shares, gaining control over the new
company, christened UltraTech. Besides the long term strategic value in the
wake of rising demand for cement, with the growth of housing and
infrastructure sectors in the country, the acquisition brings significant
synergy gains to the parent company.
Ready Mix Concrete is likely to see substantial growth in the coming years.
Recognising the opportunities that this business will offer, UltraTech has
commenced setting up of Ready Mix Concrete plants at various places in the
country. Ultra Tech Cement Limited, makers of premier cement, is a
subsidiary of Grasim Industries Ltd., the flagship company of the Aditya
Birla Group. The group is the eleventh largest cement manufacture in the
world and number one in India. Its basket of products includes ordinary
Portland cement, Portland blast furnace slag cement, Portland Pozzolana
cement and Grey Portland cement. It also exports clinker and cement.

Ultra Tech has five integrated plants, five grinding units, and three
terminals – two in India and one Sri Lanka. All the plants have ISO 9001
certification. Most of the plants have also been certified for ISO 14001 and
OSHAS 18001.
Ultra Tech is the country’s largest exporter of cement clinker. The
company exports over 2.5 million tones per annum, which is about 30
percent of the country’s total clinker exports. The export market comprises
of countries around the Indian Ocean, Africa, Europe and the Middle East.
Export is a thrust area in the company’s strategy for growth.
The cement division of L&T was demerged in 2004 after Grasim made
the 30 percent open offer for equity shares, gaining control over the new
company, christened Ultra Tech. Besides the long term strategic value in the
wake of rising demand for cement, with the growth of housing and
infrastructure sectors in the country, the acquisition brings significant
synergy gains to the parent company. Narmada Cement Company Limited, a
subsidiary, was amalgamated with Ultra Tech in May 2006.
MILESTONES OF ULTRATECH CEMENT
As part of the eighth biggest cement manufacturer in the world, Ultra
Tech cement has five integrated plants, five grinding units as well as three
terminals of its own (One overseas, in Colombo, Sri Lanka). These facilities
gradually came up over the years, as indicated below
2006
Narmada Cement Company Limited amalgamated with Ultra Tech
pursuant to a Scheme of Amalgamation being approved by the Board for
Industrial & Financial Reconstruction (BIFR) in terms of the provision of Sick
Industrial Companies Act (Special Provisions).
2004
Completion of the implementation process to demerge the cement
business of L&T and completion of open offer by Grasim, with the latter
acquiring controlling stake in the newly formed company Ultra Tech
2003
The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement
business into a separate cement company (Cem Co). Grasim decides to
acquire an 8.5 percent equity stake from L & T and then make an open offer
for 30 percent of the equity of CemCo, to acquire management control of
the company.
2002
The Grasim Board approves an open offer for purchase of up to 20
percent of the equity shares of Larsen & Toubro Ltd (L & T), in accordance
with the provisions and guidelines issued by the Securities & Exchange
Board of India (SEBI) Regulations, 1997.
Grasim increases its stake in L & T to 14.15 percent, Arakkonam grinding
unit
2001
Grasim acquires 10 percent stake in L&T. Subsequently increases stake to
15.3 percent by October 2002, Durgapur grinding unit.
1998-2000
Bulk cement terminals at Mangalore, Navi Mumbai and Colombo.
1999
Narmada Cement Company Limited acquired, Ratnagiri Cement Works.
1998
Gujarat Cement Works Plant II, Andhra Pradesh Cement Works.
1996
Gujurat Cement Works Plant I
1994
Hirmi Cement Works
1993
Jharsuguda grinding unit
1987
Awarpur Cement Works Plant II
1983
Awarpur Cement Works Plant I

PRODUCTS
Ultra Tech is India’s largest exporter of cement and clinker. The
company’s Production facilities are spread across five integrated plants, five
grinding units, and three terminals – two in India and once in Sri Lanka. All
the plants have ISO 9001 certification, and all but one have ISO 14001
certification. While two of the plants have already received OSHAS 18001
certification, the process is underway for the remaining three. The company
exports over three million tones per annum to countries around the Indian
Ocean, Africa, Europe, and the Middle East, accounting for about 47 percent
of India’s total clinker and cement exports.
Ultratech’s products include Ordinary Portland cement, Portland
Pozzolana cement and Portland blast furnace slag cement.
• Ordinary Portland cement
• Portland blast furnace slag cement
• Portland Pozzolana Cement
• Cement to European and Sri Lankan norms.
Ordinary Portland cement
Ordinary Portland cement is the most commonly used cement for a
wide range of applications. These applications cover dry – lean mixes,
general – purpose ready – mixes, and even high strength pre-cast and pre-
stressed concrete.
Portland blast furnace slag cement
Portland blast-furnace slag cement contains up to 70 percent of finely
ground, granulated blast-furnace slag, a nonmetallic product consisting
essentially of silicates and alumino-silicates of calcium. Slag brings with it
the advantage of the energy invested in slag making. Grinding slag for
cement replacement takes only 25 percent of the energy needed to
manufacture Portland cement in a concrete mixture is a useful method to
make concrete better and more consistent. Portland blast – furnace slag
cement has a lighter colour, better concrete workability, easier finishability,
higher compressive and flexural strength, lower permeability, improved
resistance to aggressive chemicals and more consistent plastic and
hardened consistency.

Portland Pozzolana Cement


Portland Pozzolana Cement is ordinary Portland cement blended with
pozzolanic materials (Power – station fly ash, burnt clays, ash from burnt
plant material or silicious earths), either together or separately. Portland
clinker is ground with gypsum and pozzolanic materials which, though they
do not have cementing properties in themselves, combine chemically with
Portland cement in the presence of water to from extra strong cementing
material which resists wet cracking, thermal cracking and has a high degree
of cohesion and workability in concrete and mortar.
4.3: L&T CEMENT IS NOW ULTRATECH
CEMENT

Launching Ultra Tech Cement, the new name of L & T Cement, in


Mumbai, Mr. Kumar Mangalam Birla, Chairman, Ultra Tech Cement Ltd,
stated that “nothing has changed except the name. So essentially what was
earlier L & T cement, now transforms into Ultra Tech Cement.”
Mr. Birla added that “In the cement sector, the erstwhile L & T Cement
brand was indeed a much admired brand. I am confident this transition to
Ultra Tech Cement will only help strengthen it further. Fundamentally, the
quality, the technology, the plants and the people will remain unmatchable.”
Ultra Tech Cement will continue to be manufactured in state-of-the-art
plants at Kovaya and Jaffarabad in Gujurat, Awarpur in Maharashtra, Hirmi
in Chattisgarh and Tadipatri in Andhra Prasad. Likewise, they will continue to
be supported by the grinding units at Durgapur, Jharsuguda, Aarkonam,
Magadalla and Ratnagiri and the packing terminals at Mangalore, Mumbai
and Sri Lanka. “Excellent product quality and customer care will remain the
hallmark of Ultra Tech,” averred Mr. Birla. Briefing the media on the brand
transition, Mr. Birla remarked that the name Ultra Tech was the outcome of
an in depth research across the country. “We wanted to mirror the DNA of L
& T cement in the new brand name. Our research study indicated that in the
customer’s mind, L & T stood for quality, technology and expertise. The
name Ultra Tech with the tag line “The Engineer’s Choice” aptly captures
these features,” commented Mr. Birla. The brand transition is expected to be
completed in India by the end of December 2004.
Ultra Tech’s distribution network is very widely spread out in the
country with over 5,500 dealers and 30,000 retailers. Ultra Tech enjoys a
leadership position in all of the markets that it serves. Mr Birla took great
pride in the Ultra Tech team who he said “are committed to preserving the
brand’s premium and its market share”. The Company has enlisted the
support of all of its business associates. This includes dealers, stockists,
retailers, builders and engineers among others. “Our thrust is an enhancing
our markets through augmenting our capacities and bringing in higher
volumes, adding 2.5 million tones largely through debottlenecking. We have
plans to maximize operational efficiencies and to sweat the assets. To do so,
we have earmarked an immediate investment of Rs. 200 crore for the
current financial year. We wish to grow aggressively, “ stated Mr.Birla.
added that cement was clearly a focus area for the Group and that the Ultra
Tech acquisition signaled its commitment to take this business even further.
Ultra Tech’s plants and markets complement those of Grasim, the Aditya
Birla Group’s cement capacity is in excess of 31 million tpa, of which 17
million tpa capacity comes from Ultra Tech. This makes the Aditya Birla
Group the eighth largest cement player in the world.
The Group now has 11 composite plants, seven split grinding units,
four bulk terminals (inclusive of one in Sri Lanka), and eight ready mix
concrete plants. This accords the Group a strong national presence in the
cement sector, with a leadership position in several states. “We at Ultra
Tech will leverage synergies and further strengthen our ability to complete
in the Indian and the overseas markets. We expect Ultra Tech to grow faster
than the market and to improve market shares. At the same time
developing beachheads overseas through a profitable exports business is a
priority for us, “ remarked Mr. Birla. In his view, the cement business to be
in. Giving an overview of the sector, Mr. Birla commented that India has
enormous potential for growth, given the lower per capita consumption of
only 110 Kilos against the global average of 260 Kilos at present. The per
capita consumption of cement in India is perhaps the lowest in South East
Asia. In Thailand it is 293 Kilos, China – 429 Kilos, Malaysia – 529 Kilos, and
in South Korea – 951 Kilos. India thus offers a tremendous growth
opportunity given its lower per capita consumption. The rise in per capita
consumption would be fuelled by the strong growth in the housing sector
and the government’s thrust on infrastructure development. This is will
propel a robust volume growth. Said Mr. Birla, “I believe that Ultra Tech is
uniquely positioned to capitalize on these developments, given its unique
brand values and customer orientation. I see a great future ahead.”
Distribution Logistics:
Cement is manufactured in continuous process plants. Cement is
stored in soils but the silo capacities are limited. Therefore cement has to be
evacuated from the works. Cement can be transferred by rail, road or sea,
by rail it is loaded in rakes for a railhead which can be inside or outside the
plant. From the railhead it has to be cleared i.e. unloaded on to the platform
and loaded into trucks, from where it can be transported directly to the
customers or dealers or can be send to the marketing dump and then
dealers and customers time to time in case of road too trucks can be sent to
transit dumps outside the factory normally the truck generation center it can
be transported directly to the customers or dealers or can be send to the
marketing dump and then dealers and customers. In case of sea
transportation firstly conveyed by conveyers to the captive jetty (Port) and
then loaded in to ships from where it is sent to receiving port of terminal
operations bulk cement from the receiving port is again sent by conveyers
or by browsers (by road in tanker) or the terminal. From the terminal it is
sent to the dealers or customers by road.

DIFFERENT PLANT OF ULTRATECH OVER INDIA


We have now many plants located in different parts of India. The
selection of location is based on many factors but primarily they are based
on following points.
• Very rich limestone available close to the plant
• Uninterrupted power supply (from state electricity board or captive
thermal power plant, gas based generators, DG sets)
• Availability of high grade coal
• The plant location must be such that we can dispatch and distribute
cement by either rail or road
1. AWARPUR CEMENT WORKS (ACW)
Awarpur cement works is located at village Awarpur in Chandrspur district in
Maharastra. It is 212 Kms away from Nagpur city towards south. The plant
capacity is 2.5 MTPA. This plant is having two units and equipped with all
latest generation equipments. The plant is having huge railway sliding as
well as truck loading system. This railway line is connected to central railway
2. JHARSUGUDA CEMENT WORKS (JCW)
Jharsuguda cement works is grinding unit having installed capacity of
0.7 MTPA. This is located at Dhutra village of Jharsuguda district in Orissa,
which is 15 Kms away from Jharsuguda town. The plant is having latest
facilities required for slag cement grinding, soils as well as packing plant.
The plant has its own siding for dispatching cement to different destinations
a swell as truck loading system. This plant producing high quality slag
cement conforming to Indian standard this plant has a very sophisticated
laboratory for monitoring quality control.
3. HIRMI CEMENT WORKS
This plant located at village Hirmi of Raipur district in Madhyapradesh,
which is 64 Kms away from Raipur city. The installation capacity of the plant
is 1.45 MTPA. The plant is having a well-compacted layout and is inducted
with all latest equipments. It has been performing very well in all aspects.
This plant is having very high efficiency cement mils, raw mill, kiln as well as
control system.
4. GUJURAT CEMENT WORKS (GCW)
This plant is located at the village Kovaya in Amreli district of Gujarat.
The total installed capacity is 4 MTPA. This is the largest installation capacity
of the plant is 1.45 MTPA. The been performing very close to Arabian Sea
and having captive jetty which can accommodate ships for loading of
cement, clinker, and unloading of coal.
5. ANDHRA PRADESH CEMENT WORKS (APCW)

This is the youngest plant which is located at Tadpatri, district


Anantpur in A.P. This plant having very well compact layout in multilevel.
This plant is inducted with all latest equipments and have been producing
very high quality cement. This plant is having its own railway siding which is
connected is connected to Chennai /Delhi truck route.

INGREDIENTS AND FUNCTIONS


OXIDES
1. Lime (60-65%): - a sufficient quantity of lime is required for its
reaction with impart of strength.
2. Silica (20-25%): - Silica compounds provide strength and hence
lower silica content is not acceptable.
3. Alumina (3-8%): - Its lowers clinkering temperature. An excess
alumina weakens cement and produces a contracting quick setting
mixture.
4. Magnesia (1-4%): - Magnesia impairs soundness of cement if it is
over 5% it cause unsoundness.
5. Iron Oxide (2-4%): - It impairs the grey color and acts as flux.
6. Gypsum (3-8%): - It retards setting time, thus providing
workability.

COMPOUND
Tricalcium Silicate (50 to 60%): - it imparts strength to the concrete
from inception and attains greater part of its strength in seven days. But
this evolves more heat generation than diacalcium silicate.

Diacalcium silicate (20 to 30%): - It gives negligible strength to there


concrete in the first seven days and gains steadily in strength at later ages
and attains greater part of its strength in 28 days.
Tricalcium aluminate (3-10%): - This produces some strength in one day
but shows no subsequent development this and gypsum content in cement
to form calcium sulpho aluminate which decides the setting time.

Teracalcium ferrite (10 to 15%): - It acts as a flux and helps to bring


down temperature. It imarts color of the cement.

QUALITY ASSURANCE SYSTEMS


The seven steps for quality assurance
1. Computerized mine planning and prospecting
2. Methodically storing and reclaiming from PBSP in blending silo.
3. Through checks and monitoring of incoming raw materials
4. Kiln scanning heat and temp control.
5. Online QCX (right proportion and instant analysis).
6. Storing of raw material under covered shed.
7. Continuous supervision by computers and highly qualified dedicated
professionals.
Chapter V
Data Presentation, Analysis and
interpretation
5.1: DATA INTERPRETATION OF QUESTIONNAIRES
FOR CEMENT SELLERS
There are a set of questionnaire had given to the cement sellers. Let’s
analyze the information collected from the cement sellers in Asansol city.
There are Six major players in Asansol cement market, to get the
monthly average sales of Asansol city I have divided the whole Asansol city
into three zones they are give below.
• Zone-1 – area from Asansol Court to Mahishila.
• Zone-2 – area from LIC Asansol more to Asansol Bazar.
• Zone-3 – Court more to Burnpur Bus stand.
Fig. 5.1

Market share for Zone 1

35 32
30
25
25
Sales in %

20
20 18
Series1
15
10
4
5 1
0
UTCL AMBUJA LAFARGE JAYPEE ACC KONARK
Brand

ZONE 1: includes area from Asansol Court market, Sreepally more,


Budha more, Ismail more, SD Hospital more, Battala Bazar, Mahishila.

From the above figure we can observe that in this zone from the total
average sales (for zone-1) Ambuja is the leader with acquiring 32% of the total
average sales of cement. Followed by Lafarge, with a market share of 25%.
Followed by Konark having its market share of 20% and Ultratech is having 18%.
In this locality due to price structure & due to some marketing fault Ultratech is far
behind from these brand. Many retailers saying that Ultratech is a good brand but
their marketing effort is not good their management is not good, so they don’t
want to do business with Ultratech.
BRAND EQUITY OF LEADING BRANDS IN ZONE-1

Sl. Name SALES in MKT Share Position


No. Bags (%)
1 AMBUJA 16000 32 FIRST
2 LAFARGE 12500 25 SCOND
3 KONARK 10000 20 THIRD
4 UTCL 9000 18 FOURTH
Table: 5.1
It is observed that the people of this zone is very much price sensitive. This
zone includes the area where there is an ample opportunity present for the
development of the locality. Also there are several earl estate firms are
growing up who are going to construct buildings very soon. Also some good
technical institutions are in this zone, those are very much involved in
competing with each other by constructing new buildings. So lot of scope is
still present for the development of the locality. Also there are several real
estate firms are growing up who are going to construct buildings very soon.
Also some good technical institutions are in this zone, those are very much
involved in competing with each other by constructing new buildings. So lot
of scope is still present in this market. UTCL should start more trading and
non-trading cement supplies in this area. So there is a good market for the
company to establish the position of UTCL in this market.
Zone-2 – area from LIC Asansol more to Asansol Bazar, Bhagat Singh
more, Kalyanpur housing colony, Asansol Bazar

Figure:5.2

Market share for Zone 2

40
34
35
30 28

25 22
Sales in %

20 Series1
15
10 8
5
3
5
0
UTCL AMBUJA LAFARGE JAYPEE ACC KONARK
Bra nd

BRAND EQUITY OF LEADING BRANDS IN ZONE-2


Sl. Name SALES in MKT Share Position
No. Bags (%)
1 LAFARGE 17000 34 FIRST
2 AMBUJA 14000 28 SCOND
3 UTCL 11000 22 THIRD
4 KONARK 4000 8 FOURTH
Table:5.2
From the above figure we can observe that in this zone (For zone-2) Lafarge
is the leader with acquiring 34% of the total average sales of cement
followed by Ambuja, with a market share of 28%. And here UTCL is in third
position in market. In this zone there are some like kalianpur housing colony
where a lot of scope for new construction is there. Real estate companies
are competing with each other like anything, so this area can be taken in
consideration for market penetration for UTCl. Here Lafarge leading for its
High quality Low Price Brand name. Lafarge is the potential market leader so
UTCL should plan accordingly to beat Lafarge in price as well as in quality.
Here the Zone 1 market leader Ambuja is in second position.
ZONE-3
Zone-3 – Court more to Burnpur Bus stand.
Court more, Rabindranagar, Chitra more, Nimtala more, Burnpur.
Figure:5.3

Market share for Zone 3

40 36
35
30 28
Sales in %

25 20
20 Series1
15
10 8
6
3
5
0
UTCL AMBUJA LAFARGE JAYPEE ACC KONARK
Bra nd

BRAND EQUITY OF LEADING BRANDS IN ZONE-3


Sl. Name SALES in MKT Share Position
No. Bags (%)
1
AMBUJA 18000 36 FIRST
2
LAFARGE 14000 28 SCOND
3
UTCL 10000 20 THIRD
4
KONARK 4000 8 FOURTH
Table : 5.3
From the above figure we can observe that in this zone (For zone-3) Ambuja
again is the leader with acquiring 36% of the total average sales of cement
followed by Ambuja, with a market share of 28%. And here UTCL is in third
position in market having 20% market share. In this zone there are some
like kalyanpur housing colony where a lot of scope for new construction is
there. Real estate companies are competing with each other like anything,
so this area can be taken in consideration for market penetration for UTCL.
Here Lafarge leading for its High quality Low Price Brand name. Lafarge is
the potential market leader so UTCL should plan accordingly to beat Lafarge
in price as well as in quality.
OVERALL MARKET SHARE OF DIFFERENT
BRANDS IN ASANSOL CITY

Figure : 5.4

M a rk e t s h a re in A s a n s o l

45 39.8
40 35.66
35
30
Sales in %

25
20 14.9 14.53
15
10 6.59
3.7
5
0
U TC L A M B UJA LA FA RG E JA Y P E E A CC K O NA RK
Bra n d s

BRAND EQUITY OF DIFFERENT BRANDS IN ASANSOL MARKET

Sl. Name SALES in MKT Share Position


No. Bags (%)
1 AMBUJA 47760 39.80 FIRST
2 LAFARGE 42790 35.66 SCOND
3 UTCL 17872 14.90 THIRD
4 KONARK 17445 14.53 FOURTH
5 JAYPEE 7900 6.59 FIFTH
6 ACC 4450 3.70 SIXTH
Table : 5.4
From the above figure and table we can understand that Ambuja is the
ultimate leader in the market because of its quality and brand name, really
leading in the market. While visiting cement outlets dealers said that
Ambuja has the maximum number of loyal customers in the market Ambuja
is having 39.8% share of the whole market in Asansol.

In the second place, Lafarge is having almost 35.6% of share, which is


a very big achievement for Lafarge because when we compare Ambuja with
Lafarge, Lafarge is a new brand itself so we can say that Lafarge is giving a
very tough competition to Ambuja, as the retailers said if UTCL can change
some of its marketing strategies like mason meeting, dealers meeting it can
be the leader as it having the fame of premium quality.
In third position UTCL cement is present with 14.9% of market share.
It has also some specific product fro concrete which is very popular. Like the
ad says “Engineers Choice” this is a very touching statement to the
customer. Also the advertising strategies made by UTCL is really wonderful.
Konark is in the fourth position.
5.2: Analysis of questionnaire for cement sellers.
Q1. All the retailers are asked to tell the brand name they prefer
most?
Figure: 5.5

18% 21%

UTCL
5% AMBUJA
1% LAFARGE
JAYPEE
ACC
KONARK
22%
33%

While answering this question 33% of respondents said Ambuja is the


most preferred brand, 22% said Lafarge is the best brand, 21% for UTCL,
18% for Konark. So from this we can say that UTCL is still in a commanding
position in the customers mind. The company should grab those customers
by the retailers. All other brand have a negligible share.

Q2. All the retailers are asked to tell the brand name which their
customer preferred most.

Figure: 5.6

16%
23%

UTCL
AMBUJA
2% LAFARGE
JAYPEE
4%
ACC
32%
KONARK

23%
Q3. All the retailers are asked to tell the frequency of different
brands marketing officers visit to their outlets/phone call follow up
done?

Figure: 5.7

25%
UTCL
35%
AMBUJA
LAFARGE
JAYPEE
2%
ACC
4% KONARK
12%
22%

Q4. All the retailers are asked to tell that which brand they think
giving customized service?

Figure: 5.8

12% 1% 4%
UTCL
27% AMBUJA
LAFARGE
JAYPEE
33%
ACC
KONARK
23%
Q5. All the retailers are asked that which promotional medium they
think is most effective?

Figure: 5.9

OTHERS
1%

WALL PAINTING TV TV
33% 37% HOARDING
PAPER AD
WALL PAINTING
OTHERS
PAPER AD
12% HOARDING
17%

Q6. - The retailers are asked that which factors attracts more while
dealing with a particular brand.

Figure: 5.10
70
58
60

50

40
26 Series1
30

20 10
5
10 1

0
C. DEAMAND HIGH TO ADD QUALITY OTHERS
MARGIN VARIETY
Q7. – This question asked to the respondents who are dealing with
UTCL, that why are you dealing with UTCL.

Figure: 5.11

W HY UTCL ?

NO COMMENTS
TO ADD VARIETY 6%
11%
HIGH MARGIN
15% C. DEMEND
68%

Out of 50 respondents 24 are dealing with UTCL. But out of 50 respondents


68% have said they are dealing with UTCL because of customer’s demand
that shows, there is a very good customer demand for UTCL. 15% of
respondents said due to high margin they are dealing with UTCL, it means
UTCL should give more margin to the retailers. 11% off respondents said
they are dealing with UTCL only to add variety. 6% did not give any
comments.

Q8. – This question asked to the respondents who are not dealing
with UTCL that why you are not dealing with UTCL

Figure: 5.12
WHY NOT UTCL ?

NO
THOUGHT
NO CMP.
NO DEMEND 9%
VISIT
42% 11%
BAD
BEHAVIOUR
18%
LOW MARGIN
20%
Q9. – When the respondents are asked to give their views on the

overall brand image of UTCL they had given their responses as

shown below.

Figure: 5.13

OVERALL BRAND IMAGE OF UTCL

V. POOR EXCELLENT
2% 14%
POOR
11%

GOOD
47%

MANAGABLE
26%

Q10. - When the respondents are asked to give their views on the
who influence a customer to buy a particular brand of cement. The
responses they had given are shown below.
Figure: 5.14

B E S T IN F L U E N C E R
70%
59%
60%
50%
40%
30%
20% 15% 13% 13%
10%
0%
D EA LER E N G IN EE R MAS SO N ME D IA
Q11- When the respondents are asked to give their views on what
are their expectation from the company or what service the
company should provide, the responses they had given are shown
below.

Figure: 5.15

EXPECTED SERVICES FROM MANUFACTURER

20.00% 18.50%
17.50%
18.00%
16%
16.00%
14% 14%
14.00%
12.00%
10% 10%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%

18.5% of the respondents are saying they want stock at time. So company
should give the supply according to the demand otherwise they will lose the
market share. Some of the retailors complaining about the fact that UTCL’s
Durgapur cement factory is not giving the supply of cement due to its
breakdown in factory. They are suffering a lot for it. Also they want high
credit holding period so that they can do more business, 14% saying they
should give more discount so that the margin will increase, they should
maintain quality. 10% saying they should give technical knowledge as well
as special offer. And 16% of the people avoided its question very efficiently
by they don’t want anything from company.
Q12. When the respondents are asked to give their views on what
customers want. The responses they had given are shown below.

Figure: 5.16
WHAT CUSTOMERS WANT

60%
49%
50%

40% 36%

30%

20%
10%
G
A
N
C
R
E
P
T

10% 5%

0%
HIGH QUALITY H. QUALITY- L.QUALITY- NO
-H. PRICE L.PRICE L.PRICE COMMENTS

Q13 When the respondents are asked to give their suggestion for
improvement of marketing of UTCL. The responses they had given
are shown below.
Figure : 5.17
SUGGESTIONS

20%
17.5%
18% 16%
16%
14% 12.5%
PERCENTAGE

12% 12%
12% 10%
10%
8% 6%
6% 5% 5%
4%
4%
2%
0%
G

TS
T

EY
G
T

E
S
EE

VT
EE

N
R

IC
R

EN
TI

N
TI
LE
TE

PR
M

AD
M

O
EE

EE

M
AI

M
N
RS

E
M

E
CE

ET

M
LE

Y
C
O
R
TO

IT
N

IC
O

U
EA

C
P

SO

UR
ED
M
C

BL
EL

O
H
D
RA

IT

N
AS

C
R
PU
H

SE
CT

M
CH

E
N

C
O

U
C

TO

ED
EP

R
KE
The customers are asked to give suggestions, various types of suggestions
given by the respondents for the improvement marketing of UTCL. From the
above figure we can understand that 17.5% have given suggestion that
company should go for regular mason meeting because masons are the best
influencer. 12.5% respondents think that UTCL should do more advertising
so that the company can become a ladder in the market.
12% of respondents think that company should arrange regular dealer
meetings and reduce the security money deposited by the dealers so that
the number of outlets in the market can increase which will lead UTCL to the
position of market leader. 10% of the respondents said to reduce price so
that it can beat in price the brand like Lafarge and can get some part of the
market share of Lafarge and other Andhra brands.
6% of respondents said to arrange public meeting and tell the features
about the cement and the core competency of the company. So that the
public can become aware of the product and that will help UTCL to cover the
market. 5% of the respondents said that UTCL should start help centers like
ACC so that public can get help while constructing their houses 5% of
respondents said UTCL to keep touch with the retailers regularly so that the
both party can make a strategy and can push the product to the market. $5
of the retailers said to arrange contractors and builders meeting so that it
can spread in nontrade sector. 16% of the respondents did not say anything
for the improvements of UTCL however they avoided the question and said
they don’t know anything about the company.
5.3 : ANALYSIS OF DATA COLLECTED FROM MASON

Q1 : Give your preference for Ultratech Cement.

Figure: 5.18

RATING OF UTCL

POOR EXCELLENT
10% 20%

MANAGABLE
30% GOOD
40%

Q2 : Which brand of cement they prefer most?


Figure: 5.19

UTCL
LAFARGE 12%
25%
KONARK
15%

AMBUJA
48%
5.4: ANALYSIS OF DATA COLLECTED FROM
INDIVIDUAL HOUSE BUILDERS

Q1 : Which brand of cement they prefer most for House building?


Figure: 5.20

LAFARGE UTCL
23% 22%

KONARK
17%
AMBUJA
38%
5.5 : Analysys of questionnaire for Petty Contractors

Q1 : Which brand of cement they prefer most for your project?

Figure: 5.21

KONARK
9% UTCL
27%
UTCL
AMBUJA
LAFARGE
LAFARGE KONARK
45% AMBUJA
19%
Chapter VI
CONCLUSION
When a new brand appears in the market, the consumer gets acquainted
with it and starts collecting information about it. On the basis of this
information the consumer creates an opinion of the brand and establishes a
brand image. For a stable market position of a brand, consumer awareness
of the new brand on the market is not sufficient. The consumer must prefer
a brand and have a positive assessment of it as well as considering it in its
purchasing decisions. By watching the positioning of different brand we can
judge the Brand equity of different brands.

All trade marks on the market within trade groups could be classified
according to the consumers (un)-awareness and assessment as shown in
the picture below:

If a brand is familiar to the consumer it does not mean that it is also a


possible alternative for the consumer's choices. To some (recognized)
brands the consumer may have a negative reaction and therefore have no
intention of using them. The consumer is also familiar with neutral brands,
which are unimportant to him, or about which he does not have the
sufficient information to consider purchasing them.
HOW DO WE RESEARCH THE BRAND EQUITY?

It is optimal for a company to first decide on the method of conducting the


brand image research, with which the company can investigate the key
values and dimensions of the brand. When a company is thoroughly
acquainted with its brand and its image in the market it is sensible to focus
on more competitive brands and to compare these brands to theirs. It is
important to find out how consumers categorize brands within a specific
trade group and how they focus on the most competitive ones.

The market position of a brand is measured using the quantitative methods


of research, which are based on the results of qualitative work. That is how
quantitative phase research uses the image dimensions and positions, which
are of major importance to the specific brand and trade group.

The most sensible thing is to compare the results with competitative brands
and/or throughout time. A company can therefore continuously follow the
(un)-stable market position of its brand, measure the market
communication action influence on the market position and find out in which
areas further actions should be directed to.
EXECUTIVE SUMMARY OF MY WORK DONE:

The project gives a broad outline on average monthly sales of different


brands of cement in Asansol market and position of different brands in
comparison to total sales and their present market share. From the research
I came across several interesting results about the dealer and the retailer’s
behaviour and response towards increment in sales of any particular brand,
and then steps are to be taken to matching the expectation in case of
UltraTech cement. From the analysis we are able to make aware about the
fact that the role of masons and dealers are impressive in hiking the sales of
any particular brand by influencing the customer.

I have prepared 4 types of questionnaire (Cement sellers, individual house


builders Petty contractors and for masons). Then I started my survey by
visiting all of them area wise and recorded their feed back according to the
question asked to them from my questionnaire. Then I summarize all the
data collected and make comparative charts and diagrams to present my
findings.

From this project I got a lot exposure to cement market in Asansol and got
the insight of the relationship between manufacturer, retailers, and
customers. During the work I have interacted some high profile executives
of a big giant market player-ADTYA BIRLA GROUP. It gives me a lot of
exposure to the high level corporate world. Meeting with the respondents
also increase my potential and my over all view about the consumer market.
RECOMMENDATIONS
The customers are the real king in today’s competitive market. Therefore for
every company should try in such a way that not a single customer can
complain against your product as well as you should be the leader in the
market. The company should consider every customers complain and
suggestions and should try to rectify if it is possible. But ultimately every
company should win customer’s heart which can help the company to
become the market leader.

1. UltraTech is positioned as the premium category in the pricing


strategy. The company should set the price according to the value
delivered to the customers. What I got from this project is that the
price is slightly higher than the perceived value, that is the reason why
company is loosing potential customers. We can say the customers of
Lafarge because its price structure is lower than UTCL as well as
Ambuja but the value delivered by Lafarge & Ambuja is almost same
with others. So a price of Rs. 5 can make a lot of difference because
the customers know that UTCL is famous for its quality if the same
quality they are getting in the price of Lafarge they will must go UTCL
instead of others.
2. Some of the retailers complained that the PPC of UTCL is blackish in
color, which new customers do not like, so if possible company should
look after this factor.
3. Credit period should increase to give a chance to the stockiest to
maintain high stock, which will make the difference as said by the
respondents.
4. Respondents said that UTCL should touch each and every retailers
once in two months because by doing this the network of manufacture,
dealer and sub-dealer will grow which will help UTCL in future.
5. The security money should be decreased for the rural area retailers
as compared to the urban area, because they can not able to achieve
the sales target and deposit the security money.
6. Sales promotion and awareness should be done in all the Zones
zone-1, zone-2 & zone-3
7. A booklet containing technical information about the specialty of the
variant of the cement should be given to the retailers so that they can
convince customers.
8. As we have seen the Masson are the best influence of a customer to
purchase particular brand so regular Masson meeting should be
organized so that they can promote the product.
9. As some of the retailers complained that they have not got the
boards and displays, so company should look after this matter.
10. Company should arrange contractors meeting to spread the
business in non-trade sectors. Some of the contractors said that after
finishing the project they just forgot us. They will be extremely happy
if company give some kind of get together with the company officials.
They wish to work with the Project cement.
11. Company should go for road shows and trade fairs so that the public
can be aware of the core competency of the product.
12. As far as the prospective retailers are concern there are a lot of
possibilities in that market. But most of the respondents want financial
assistance, if company will issue the cement for a longer credit period
and in the return company should make them exclusive UTCL shops
then it will become one of the revolutionary step towards the untapped
market.
13. The Marble and ceramics shops have space to store cement so they
can be the most appropriate prospective retailer of cement because
others have less storage place in their shops, so marbles shops should
be targeted.
14. The company should start societal marketing by taking awareness
projects like plantation, passenger shed at the bus stop or drinking water
supply.
15. The company should do more outdoor advertising like putting more
hoardings in the crowded area, neon light boards.
16. The company should keep a proper watch over the market and the
competitors accordingly it should react.

REFERENCE

AND

BIBLIOGRAPHY
1. Marketing Management by Philip Kotler.
2. www.ultratech.com
3. www.cementindia.com
4. www.google.com
ANNEXURES
QUESTIONNAIRE FOR CEMENT SELLERS
Dear Sir/Madam,
I am conducting a survey on major Cement brands available in Asansol Mkt.
as a part of my ‘summer training project. I would be extremely benefited if
you answer the following questions. I assure you that the information
provided by you will be used for my project work only.

NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS & CONTACT NO. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


_________________

1 How Many Brands you are dealing in ? Who are they?

Lafarge Ultratech Acc Ambuja Konark

2 Which Brand do you prefer most?

Lafarge Ultratech Acc Ambuja Konark

3 Your average monthly sale (tonnes/bags) ___________________________

4 Please specify the Percentage of wholesale and Retail

_____________________________________________________________

5 Rank the companies by your customers preference.

Lafarge Ultratech Acc Ambuja Konark

6 Give average monthly sale of different brands.

Co. Lafarge Ultratech Acc Ambuja Konark

Tonnes/Bags

7 Rank the companies in 1-5 scale in terms of Representaives/Officers Mkt visits/Phone follow up.

Co. Lafarge Ultratech Acc Ambuja Konark

Rank
QUESTIONNAIRE FOR INDIVIDUAL HOUSE HOLDERS

Dear Sir/Madam,
I am conducting a survey on major Cement brands available in Asansol Mkt.
as a part of my ‘summer training project. I would be extremely benefited if
you answer the following questions. I assure you that the information
provided by you will be used for my project work only.

NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS & CONTACT NO. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


_________________

1 Which brand do you prefer most?

Lafarge Ultratech Acc Ambuja Konark

2 Which Brand do you use for your house building?

Lafarge Ultratech Acc Ambuja Konark

3 Who Influence you to take this decision?

Engineer Mason Friend Family Own Other

4 What is the most important facrot to choose that Brand?

Brand Masons
Price Quality Services Volume Colour Other
name advice

Explanation : ______________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

5 Are you Satisfied??


If So Why?________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
If Not Why? _______________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

6 Rank the companies on 1-5 scale.

Lafarge Ultratech Acc Ambuja Konark

7 Have you ever heard the brand name before you have used it?
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

8 Do you happy with the supply of the cement?


_________________________

Why? ____________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

9 Any suggestion you want to give.


_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
QUESTIONNAIRE FOR PETTY CONTRACTORS
Dear Sir/Madam,
I am conducting a survey on major Cement brands available in Asansol Mkt.
as a part of my ‘summer training project. I would be extremely
benefited if
you answer the following questions. I assure you that the
information
provided by you will be used for my project work only.

NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS & CONTACT NO. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


__

1 Which brand do you prefer most?

Lafarge Ultratech Acc Ambuja Konark

2 Which Brand do you use for your project?

Lafarge Ultratech Acc Ambuja Konark

3 Who Influence you to take this decision?

Engineer Mason Friend Family Own Other

4 What is the most important facrot to choose that Brand?

Credit facility
Brand
Price Quality Services Volume provided by Colour OTHER
name
the dealer

Explanation : _________________________________________________________
____________________________________________________________________
____________________________________________________________________
5 Do you happy after using the cement?
_______________________________

Why? _______________________________________________________________
____________________________________________________________________
____________________________________________________________________

6 Rank the companies on your perspective.

Lafarge Ultratech Acc Ambuja Konark

7 Have you ever heard the brand name before you have used it?
________________________________________________________________________
________________________________________________________________________

8 Are you satisfied after using the Brand?


________________________________________________________________________
________________________________________________________________________

9 Do you happy with the supply of the cement?


_________________________

Why? ___________________________________________________________________
________________________________________________________________________
________________________________________________________________________

10 Have you ever invited by any Cement Company?

Lafarge Ultratech Acc Ambuja Konark

Why?___________________________________________________________________
________________________________________________________________________
________________________________________________________________________

11 Did you like their programme?


___________________________________________________________

Why?___________________________________________________________________
________________________________________________________________________
________________________________________________________________________
12 Rank the companies on the basis of their timely delivery.

Co.
Lafarge Ultratech Acc Ambuja Konark
Name

Rank

13 Rank the companies on the basis of Relationship making with you on the basis of 1 to 5.

Co. Lafarge Ultratech Acc Ambuja Konark

Rank

14 Any suggestions you want to give.


___________________________________________________________________
___________________________________________________________________

___________________________________________________________________
QUESTIONNAIRE FOR MASONS

Dear Sir/Madam,
I am conducting a survey on major Cement brands available in Asansol Mkt.
As a part of my ‘summer training project. I would be extremely benefited if
you answer the following questions. I assure you that the information
Provided by you will be used for my project work only.

NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS & CONTACT NO. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _


_________________

1 Which brand do you prefer most?

Lafarge Ultratech Acc Ambuja Konark

What is the most important facrot to choose


2 that Brand?

Brand Commission
Price Quality Services Volume Colour Other
name from Dealer

Explanation :
____________________________________________________________
____________________________________________________________
____________________________________________________________

3 Rank the companies on 1-5 scale.

Lafarge Ultratech Acc Ambuja Konark


4 Have u faced any problem while using that particular brand ?

Late More/Less
Fast Setting Setting Water Consumption

5 Do you happy with the supply of the cement?


_____________________________________

Why? _________________________________________________________
______________________________________________________________
______________________________________________________________

6 Any suggestion you want to give?


______________________________________________________________
______________________________________________________________
______________________________________________________________

7 Have you ever invited by any Cement Company in their Mason Meet programme?

Lafarge Ultratech Acc Ambuja Konark

8 What have you liked in that meeting ?


______________________________________________________________
______________________________________________________________
______________________________________________________________

9 What do you expect from the Cement Companies?


______________________________________________________________
______________________________________________________________
______________________________________________________________
"You will never find time for anything. You must make it."

Thanking You

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