Professional Documents
Culture Documents
SUBMITTED BY:
AVIK KUMAR MUKHERJEE
PGDM 2009-2011
SBS NO. - SBS910387
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.
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.
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.
CONTENTS Page No
ACKNOWLEDGMENT 7
LIST OF TABLES 8
LIST OF FIGURES 9
CHAPTER I :Introduction 11
CHAPTER VI : Conclusion 70
ANNEXURE : 80
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 Mr. Gaurav Dixit for his valuable guidance during the
course of the project.
LIST OF FIGURES
Figure No. 5.10 Factors attracts more while dealing with Brand 63
Figure No. 5.19 Most preferred brand by Individual House builders in Asansol 70
Introduction
1.1 Basic Theoretical Concepts and Contexts of
the Topic
Brand equity
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.
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.
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” .
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.
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
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.
• 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.
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.
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.
Chak De India
Branded channels
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.
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.
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.
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.
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.
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?
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.
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.
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.
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.’
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.
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
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 $31.5 billion and in the
league of Fortune 500, the Aditya Birla Group is anchored by an
extraordinary force of 100,000 employees, belonging to 25 different
nationalities. In India, the Group has been adjudged "The Best Employer in
India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall
Street Journal Study 2007. Over 50 per cent of its revenues flow from its
overseas operations.
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where
success does not come in the way of the need to keep learning afresh, to
keep experimenting.
The Aditya Birla Group, India's first multinational corporation, traces its
origins back to the tiny village of Pilani in the Rajasthan desert, where Seth
Shiv Narayan Birla started cotton trading operations in 1857. Today, the
Group's footprint extends to 20 countries and its revenues are US$ 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.
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.
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.
35 32
30
25
25
Sales in %
20
20 18
Series1
15
10
4
5 1
0
UTCL AMBUJA LAFARGE JAYPEE ACC KONARK
Brand
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
Figure:5.2
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
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
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
18% 21%
UTCL
5% AMBUJA
1% LAFARGE
JAYPEE
ACC
KONARK
22%
33%
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%
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
shown below.
Figure: 5.13
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
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
Figure: 5.18
RATING OF UTCL
POOR EXCELLENT
10% 20%
MANAGABLE
30% GOOD
40%
UTCL
LAFARGE 12%
25%
KONARK
15%
AMBUJA
48%
5.4: ANALYSIS OF DATA COLLECTED FROM
INDIVIDUAL HOUSE BUILDERS
LAFARGE UTCL
23% 22%
KONARK
17%
AMBUJA
38%
5.5 : Analysys of questionnaire for Petty Contractors
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:
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:
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.
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: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_____________________________________________________________
Tonnes/Bags
7 Rank the companies in 1-5 scale in terms of Representaives/Officers Mkt visits/Phone follow up.
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: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Brand Masons
Price Quality Services Volume Colour Other
name advice
Explanation : ______________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
7 Have you ever heard the brand name before you have used it?
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Why? ____________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Credit facility
Brand
Price Quality Services Volume provided by Colour OTHER
name
the dealer
Explanation : _________________________________________________________
____________________________________________________________________
____________________________________________________________________
5 Do you happy after using the cement?
_______________________________
Why? _______________________________________________________________
____________________________________________________________________
____________________________________________________________________
7 Have you ever heard the brand name before you have used it?
________________________________________________________________________
________________________________________________________________________
Why? ___________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Why?___________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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.
Rank
___________________________________________________________________
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: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Brand Commission
Price Quality Services Volume Colour Other
name from Dealer
Explanation :
____________________________________________________________
____________________________________________________________
____________________________________________________________
Late More/Less
Fast Setting Setting Water Consumption
Why? _________________________________________________________
______________________________________________________________
______________________________________________________________
7 Have you ever invited by any Cement Company in their Mason Meet programme?
Thanking You