To Study The Sales Promotion Activities All of The Cement Company in East Singhbhum

To Study the Sales Promotion Activities all of the Cement Company in East Singhbhum
A Summer Internship Project Report Submitted in partial fulfillment of the Post Graduation Diploma in Management Under NIST Business School, Orissa. By
BIKRAM KUMAR Roll No.: 201076026 Regd. No.: PGDM 10026
July - 2011
Under the guidance of
Mr. Kumar Srikanta Nayak
NIST BUSINESS SCHOOL Palur Hills, Berhampur-761008, Orissa, India
ACKNOWLEDGEMENT
No work can be done in isolation and this work was no exception. It required the time and efforts of many people without which this would have been very difficult. This project is a result of few persons whose guidance and efforts were vital for me. I am highly grateful to ACC Ltd. And Mr. Kshitij Sharma Sir, Mr. Prajnan Sir and various Sales Officers of the of ACC Ltd. Area Office jamshedpur who showed me proper direction and devoted their valuable time to accomplish my project. I would also like to thank to our Director Prof. Sangram Mudali, DEAN- Mr. Shom Prasad Das who gave me this opportunity to work on the Summer Training Project as directed by the NIST B SCHOOL. I express my sincere gratitude towards my college mentor, Mr. Kumar Srikanta Nayak, Mr. Chinmaya Sahu, Batch Coordinator for his suggestions and help for making this project a reality. I express my gratefulness towards Mr. Shom Prasad Das, Course Coordinator PGDM, my other faculty members; Mr. Arun Mahapatra, Mr. Pramath Nath Acharya, Dr. E. Raja Rao, Dr. Sisira Kanti Mishra, Mr. Susanta Tripathy, Mr. Bhaskar Banerjee, Mohapatra, Last but not the least I will thank my parents and friends who were consistent source of inspiration and gave me courage and resources to complete my research. Mrs. Gayatri Panda, Ms. Aprajeeta Pattnaik, Mrs. Sanjukta
Bikram Kumar
TABLE OF CONTENTS
ACKNOWLEDGEMENT..............................................................................................i TABLE OF CONTENTS...............................................................................................ii LIST OF FIGURES......................................................................................................iii 1. INTRODUCTION......................................................................................................4
1.1 GENERAL OVERVIEW..........................................................................4 1.2 OBJECTIVE OF THE STUDY..................................................................4 1.3 COMPANY PROFILE.............................................................................4 1.3.1 PAST OF THE COMPANY................................................................6 1.3.2 PRESENT OF THE COMPANY.........................................................6 1.3.3 WHAT IS CEMENT? .......................................................................8 1.3.4 SWOT ANALYSIS.........................................................................13 1.3.5 ORGANIZATIONAL STRUCTURE AND HIERARCHY.......................14
2. METHODOLOGY ..................................................................................................17
2.1 RESEARCH DESIGN...........................................................................17 2.2 SOURCES OF DATA...........................................................................17 2.3 SAMPLE DESIGN...............................................................................18 2.4 Sample Size......................................................................................18 2.5 SAMPLING TECHNIQUE.....................................................................18 2.6 AREA OF STUDY................................................................................18 2.7 LIMITATIONS.....................................................................................18
3. DATA ANALYSIS..................................................................................................20 4. CONCLUSION AND RECOMMENDATIONS.....................................................30 Annexure .....................................................................................................................31 BIBLIOGRAPHY........................................................................................................33
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LIST OF FIGURES
Figure 1.1 Hierarchy of Various Offices to Control the Functions..............................15 Figure 3.1 Whether he is retailer/ whole seller or both................................................21 Figure 3.2 Dealing of Cements brands ........................................................................22 Figure 3.3 Tonnage of each brand which the dealer, retailers has kept for selling......24 Figure 3.4 How many your sale in cash discount given by the different....................25 ......................................................................................................................................25 ......................................................................................................................................25 Figure 3.5 Additional discount per bag........................................................................27 Marketing Activities done by the companies?.............................................................27 Mason meeting ............................................................................................................27 Shop Wall Painting.......................................................................................................27 Gifts on various Occasions...........................................................................................27 Figure 3.6 Rake discount..............................................................................................29
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TO STUDY THE SALES PROMOTION ACTIVITIES ALL OF THE CEMENT COMPANY IN EAST SINGHBHUM
1. INTRODUCTION
1.1 GENERAL OVERVIEW
ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000 persons and a countrywide distribution network of over 9,000 dealers.
1.2 OBJECTIVE OF THE STUDY

1. 2. 3.
To study the sales promotion activity (ies) being done by the cement industry. To find sales promotion activity being done by the competitors of ACC. To study the different discount given by the cement company and its impact.
1.3 COMPANY PROFILE

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000 persons and a countrywide distribution network of over 9,000 dealers. Since inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in many areas of cement and concrete technology. ACC has a unique track record of innovative research, product development and specialized consultancy services. The company's various manufacturing units are backed by a central technology support services centre - the only one of its kind in the Indian cement industry. ACC has rich experience in mining, being the largest user of limestone. As the largest cement producer in India, it is one of the biggest customers of the domestic coal
industry, of Indian Railways, and a considerable user of the countrys road transport network services for inward and outward movement of materials and products. Among the first companies in India to include commitment to environmental protection as one of its corporate objectives, the company installed sophisticated pollution control equipment as far back as 1966, long before pollution control laws came into existence. Today each of its cement plants has state-of-the art pollution control equipment and devices. ACC plants, mines and townships visibly demonstrate successful endeavors in quarry rehabilitation, water management testing, suggestions for reuse, recycling and coprocessing. ACC has taken purposeful steps in knowledge building. It runs two institutes that offer professional technical courses for engineering graduates and diploma holders which are relevant to manufacturing sectors such as cement. The main beneficiaries are youth from remote and backward areas of the country. ACC has made significant contributions to the nation building process by way of quality products, services and sharing expertise. Its commitment to sustainable development, its high ethical standards in business dealings and its on-going efforts in community welfare programs have won it acclaim as a responsible corporate citizen. ACCs brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer Super Brands of India.
1.3.1 PAST OF THE COMPANY Heritage - It has an interesting story. ACC was formed in 1936 when ten existing cement companies came together under one umbrella in a historic merger - the country's first notable merger at a time when the term mergers and acquisitions was not even coined. The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer F.E.Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry. Their efforts to face competition for survival in a small but aggressive market mingled with the stirring of a country's nationalist pride that touched all walks of life - including trade, commerce and business. The first success came in a move towards cooperation in the country's young cement industry and culminated in the historic merger of ten companies to form a cement giant. These companies belonged to four prominent business groups - Tatas, Khataus, Killick Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in January 1936; just months before his dream could be realized. F. E. Dinshaw The Founder of ACC ACC stands out as the most unique and successful merger in Indian business history, in which the distinct identities of the constituent companies were melded into a new cohesive organization - one that has survived and retained its position of leadership in industry. In a sense, the formation of ACC represents a quest for the synergy of good business practices, values and shared objectives. The use of the plural in ACC's original name, The Associated Cement Companies Limited, itself indicated the company's origins from a merger. Many years later, some stockbrokers in the country's leading stock exchanges continued techniques and greening
activities. The company actively promotes the use of alternative fuels and raw materials and offers total solutions for waste management including to refer to this company simply as 'The Merger'.
1.3.2 PRESENT OF THE COMPANY Holcim - A New Partnership

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The house of Tata was intimately associated with the heritage and history of ACC, right from its formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements Ltd (later called Ambuja Cement Ltd), who then became the largest single shareholder in ACC. A new association was forged between ACC and the Holcim group of Switzerland in 2005. In January 2005, Holcim announced its plans to enter into a long-term strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL), which at the time held 13.8 per cent of the total equity shares in ACC. Holcim simultaneously announced its bid to make an open offer to ACC shareholders, through Holcim Cement Pvt Limited and ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holcim Cement Pvt. Limited along with Ambuja Cements India Ltd. (ACIL), following which the shareholding of ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently, ACIL filed declarations indicating their shareholding and declaring itself as a Promoter of ACC. Holcim is the world leader in cement as well as being large suppliers of concrete, aggregates and certain construction-related services. Holcim is also a respected name in information technology and research and development. The group has its headquarters in Switzerland with worldwide operations spread across more than 70 countries. Considering the formidable global presence of Holcim and its excellent reputation, the Board of ACC welcomed this new association. ACCs registered office was first located at Esplanade House in South Mumbai, a graceful edifice that still stands out in its neighbourhood. The head office then shifted to its own premises in Cement House shown here. The address of this stately building was then Number 1, Queens Road, Churchgate. An all-India competition in 1938 had invited leading architects of the time to send in their designs of which this elegant design made by Ballardie Thompson & Mathews was chosen as the winning entry. Work on its construction began in 1939 and was completed during the War period. The building was occupied by the Royal Air Force and vacated only in 1946.
In 2009, a unique project, has transformed Cement House into an energy efficient environment-friendly building. Its attractive refurbished faade now houses an ultramodern office equipped with space-saving modular workstations, access control and intelligent lighting with motion and light sensors, waste management systems and water saving devices set amid greenery and a central atrium that further expands the sense of light and space. BOARD OF DIRECTORS Mr N. S. Sekhsaria Chairman
Mr Paul Hugentobler Deputy Chairman
Mr Sumit Banerjee Managing Director
Mr S M Palia Mr Naresh Chandra Mr Markus Akermann Mr M L Narula Mr D K Mehrotra Mr R A Shah Mr Shailesh Haribhakti Mr Kuldip Kaura Mr Aidan Lynam 1.3.3 WHAT IS CEMENT? Cement is a mixture of limestone, Clay, Silica and Gypsum. It is a fine powder which when mixed with water sets to a hard mass as a result of hydration of the constituent compounds. It is the most commonly used construction material. Cement is manufactured by burning a mixture of limestone and Clay at high temperatures in a
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kiln, and then finely grinding the resulting clinker along with Gypsum. The end product thus obtained is called Ordinary Portland Cement (OPC). Different Types of Cement There are different varieties of cement based on different compositions according to specific end uses, namely Ordinary Portland Cement, Portland Pozolona Cement, Portland Blast Furnace Slag Cement, White Cement and Specialized Cement. The basic difference lies in the percentage of clinker used. 1. Ordinary Portland cement (OPC): OPC, popularly known as grey cement, has 95% clinker and 5% of Gypsum and other materials. It accounts for 70% of the total consumption. White cement is a variation of OPC and is used for decorative purposes like rendering of walls, flooring etc. It contains a very low proportion of iron oxide. 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. 2. Portland Pozolona Cement (PPC): Portland pozzolana cement is Ordinary Portland Cement blended with pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant material or Siliceous 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 form extra strong cementing material which resists wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete. PPC has 80% clinker, 15% pozolona and 5% gypsum and accounts for 18% of the total cement consumption. It is cheaply manufactured because it uses fly ash/burnt clay/coal waste as the main ingredient. It has a lower heat of hydration, which helps in preventing cracks where large volumes are being cast.
3. Portland Blast Furnace Slag Cement (PBFSC): PBFSC consists of 45% clinker, 50% blast furnace slag and 5% Gypsum and accounts for 10% of the total cement consumed. It has a heat of hydration even lower than PPC and is generally used in construction of dams and similar massive constructions. Portland blast-furnace slag cement contains up to 70 per cent of finely ground, granulated blast- furnace slag, a nonmetallic product consisting essentially of Silicates and Aluminum-silicates of Calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding slag for cement replacement takes only 25 per cent of the energy needed to manufacture Portland cement. Using slag cement to replace a portion of 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 finish ability, higher compressive and flexural strength, lower permeability, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency. 4. White Cement: White Portland cement has essentially the same properties as gray cement, except for color, which is a very important quality control issue in the industry. It is manufactured using fuel oil (instead of coal) and with iron oxide content below 0.4% to ensure whiteness. Special cooling technique is used. It is used to enhance aesthetic value, in tiles and for flooring. White cement is much more expensive than grey cement. 5. Specialized Cement: Oil Well Cement: is made from clinker with special additives to prevent any porosity. Rapid Hardening Portland cement: It is similar to OPC, except that it is ground much finer, so that on casting, the compressible strength increases rapidly Here is a list of our cement plants, showing Plant-wise capacity and their postal address:1. Bargarh - [Capacity (MTPA) 1.20] Bargarh Cement Works Cement Nagar, PO Bardol
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District Bargarh Orissa -768038 2. Chaibasa - [Capacity (MTPA) 0.87] Chaibasa Cement Works P.O. Jhinkpani - 833 215 District Singhbhum Jharkhand 3. Chanda - [Capacity (MTPA) 1.00] Chanda Cement Works P.O. Cementnagar Pin - 442 502 Dist Chandrapur Maharashtra 4. Damodhar - [Capacity (MTPA) 0.53] Damodar Cement Works P.O. Sunuri 723 121 Madhukunda District Purulia West Bengal 5. Gagal - [Capacity (MTPA) 4.40 - Gagal I and II] Gagal Cement Works P.O. Barmana - 174 013 District Bilaspur Himachal Pradesh 6. Jamul - [Capacity (MTPA) 1.58] Jamul Cement Works P.O. Jamul Cement Works Pin- 490 024 District Durg Chhattisgarh 7. Kymore - [Capacity (MTPA) 2.20] Kymore Cement Works P.O. Kymore Pin- 483 880
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Dist. Katni Madhya Pradesh 8. Kudithini - [Capacity (MTPA) 1.10] Kudithini Cement Works Kurugodu Road P.O.Kudithini Dist Bellary 583 115 Karnataka 9. Lakheri - [Capacity (MTPA) 1.50] Lakheri Cement Works P.O. Lakheri Pin- 323 603 Dist Bundi Rajasthan 10. Madukkarai - [Capacity (MTPA) 1.18] Madukkarai Cement Works P.O. Madukkarai District Coimbatore Tamil Nadu 11. Sindri - [Capacity (MTPA) 0.91] Sindri Cement Works P.O. ACC Colony Pin- 828 124 District Dhanbad Jharkhand 12. Wadi - [Capacity (MTPA) 2.59] Wadi Cement Works P.O. Wadi Pin- 585 225 District Gulbarga (C. Rly) Karnataka
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13.
New Wadi Plant - [Capacity (MTPA) 3.20] Wadi Cement Works P.O. Wadi Pin- 585 225 District Gulbarga (C. Rly) Karnataka
14.
Thondebhavi - [Capacity (MTPA) 1.60] Thondebhavi Cement Works Madugiri Road Thondebhavi Gauribidannur Taluk Dist Chikballapur 561 213 Karnataka
15.
Tikaria - [Capacity (MTPA) 2.31] Tikaria Cement Grinding and Packing Plant ACC Limited Tikaria Industrial Area P.O. Tehsil Gauriganj District Sultanpur 227 409 Uttar Pradesh Phone: 91-5368-44279 Fax: 91-5368-44479
1.3.4 SWOT ANALYSIS Strengths 1. 2. 3. 4. 5. Privilege dealer and sub-dealer policy has created a image of quality product shops for the dealers and sub- dealers. An effective distribution system. A well framed network of dealers and sub-dealers in the urban and rural areas. A brand image of quality product in the eyes of the public. Lucrative schemes and discounts for its dealers and sub-dealers.
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Weaknesses 1. 2. Shortage of material during the peak season of sales demotivates the dealers. High prices in comparison to other brands are preventing ACC to gain popularity in the rural areas. Opportunity 1. 2. 3. 4. There is a boost in the development of nearby rural areas of Moradabad and other districts which will generate a great demand for cement. Development work going beside the newly constructed highway under the Swarnim Chaturbhuj yojna. Change in the mentality of the rural people from cost to quality has generated demand for ACC. Increase in the intensity of Standard marketing activity will generate its demand in the rural areas. Threats 1. 2. 3. 4. Entry of the new brands in the market. Conflict between the Privilege dealers and sub dealers. New production plant of competitive brands in nearby areas. High intensity of promotional activity on national level by competitive brands.
1.3.5 ORGANIZATIONAL STRUCTURE AND HIERARCHY ACC Ltd has a very unique organisational structure which is highly efficient to run the various functions of the organization. It is structured in such a manner that the smooth flow of information is in all direction horizontal and vertical is maintained. ACC is also known for its distribution system which is directly related to its organizational structure. Head office of ACC Ltd is in Delhi and it controls all the regional offices, sales units, and area offices.
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Head Office
Regional Offices
Sales Units
Area offices
Ware Houses
Figure 1.1 Hierarchy of Various Offices to Control the Functions
Details of the Offices As mentioned above ACC has formed offices of different level to control its business functions. These offices are based in the various parts of the country according to the requirement. Each office has its own Head who report to its superior in the organizational hierarchy.
1.
Head Office: - Head office of ACC ltd is in Mumbai. It controls all the functions of the organization. It has the office of the Chairman, Deputy Chairman, Managing Director (MD), and also the offices of all the Corporate Heads including Board of Directors.
2.
Regions:- ACC has divided the whole country in three Regions. North Region South-West Region East Region.
Each Region has a Regional Office. This Office reports to the Head office in Mumbai. Every Regional Office has a Business Head, Sales Head and Departmental Heads. Our study is going on in North Region and its Regional Office is in Delhi.
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3.
Sales Units:- Each Region is divided in various Sales Units. North Region: SU Punjab SU Bhopal SU Chandigarh SU Lucknow SU Deharadun
South-West Region: SU Hubli SU Bangalore SU Nagpur
East Region: SU Raipur SU Asansol SU Kolkata
In every SU office there is a Sales Head, Sales Unit Incharges as per Department, Sales and Marketing Expertise, Deputy Manager and Joint Manager.
4.
Area Office: - Area Office is smaller unit than SUs. Each SU has many area offices. SU itself also could be an area office. This project is going on in the Moradabad district which comes under SU Deharadun. It has three area offices. Area Offices in SU Deharadun:a. Moradabad b. Haldwani c. Deharadun
Ware House Controlling Point: - Each area office has Ware Houses from where the actual distribution of the cement takes place to various dealers of the district
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2. METHODOLOGY
2.1 RESEARCH DESIGN
To formulate a good research design it is necessary to know that what kind or what nature of research is to be conducted. Nature and objective of the research- Nature of this research is descriptive because the responses which are required for the research should not be confined in any boundary. The organization wants to know that what kind of opinion its dealers have about it and also the opinion about the competitor brands of the organization. Due to this nature of research the questionnaire should have open ended questions.
2.2 SOURCES OF DATA

This research is based on the sales promotion done by activities being done by the Cement Companies in the open market. As there are near about 20 companies in the eat singhbhum market although all of them are not active in all over India. But few of them have captured a market in the east singhbhum market. Now to find out the activities being done in the market it is necessary to visit the market and to ask from the people of the market. Now one more thing should also be kept in mind that the nature of the market depend on the environment of that area so to gather the data it is necessary to survey the market because market changes rapidly no previous data is reliable for the study. So in this research Primary Data is used. Method of data collection- In this research as described earlier primary data is required. Best method to collect this data is Survey Method. In this research according to the requirement of the research- Open ended questions is asked to the wholesaler, retailer,
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2.3 SAMPLE DESIGN

The objects which are to be studied in the research are the cement companies. The units are those areas where these cement brands are sold out. These areas are distributed in various area nearby the area of research. The sample is to be drawn from the large number of dealers and retailers who deal in various cement brands.
2.4 Sample Size

As there are more than 100 dealers, retailers and sub-dealers in the east singhbhum. Time to complete this research is limited. After discussion with the area in charge kshitij sharma and I decided to take Sample Size of 70 dealers, retailers and sub-dealers including all in it.
2.5 SAMPLING TECHNIQUE

In this research Judgement Sampling Technique is used.
2.6 AREA OF STUDY

Areas of study in this research are the east Singhbhum market, which comes under the Area Office Jamshedpur. These place are mango Azad Basti, Old Purulia Road, Jawahar Nagar, Chapapul, Dimna Road Mango, Pardih, Kadma, Sonari, Uliyan, Adityapur, Gamharia, Baridih, Sidgora, Bidyapati, Maubhandar, Ghatsila, Baharagora, Dhalbhumgarh, Patamda, Boram, Katin, Sastrinagar
2.7 LIMITATIONS
During the survey and preparation of this report lots of problems were faced in the form of limitations. These limitations are as follows: 1. First limitation in the research is its time duration because no research work could be completed within the time span of 41 days
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2. 3.
Next thing was the area of survey which was distributed in the form of 22 market. Such a large area was difficult to cover within 41 days time limit. Cost effectiveness is also one of the major problem in this research to travel in each district daily and visit several shops distributed all over the districts took lots of bus and rickshaw fair. And at the same time no stipend and travelling allowance is being paid.
4.
Next problem which I faced was the weekly off of the markets. It caused lots of trouble because every area has different day for the weekly off day and I was not known to the fact and the week off. Which caused me two day visit of the place where one day was only required.
5.
For the cement shops the time from 9.00 am to 12.00pm is important for work between which they do not entertain any visitor if he is not a customer. And in the evening after 5.00 pm they use to deny talking. This gave me only 5 to 6 hour only in a day for survey.
6. 7. 8. 9.
The respondents of the survey often deny to give the answer of the questions as it discloses their facts about business. There were many biased answers were also given in favor of the brands in which they are dealing. There is lack of consistency in the number of dealers and retailers visited in different districts which has affected the results of the research. In few areas few brands were highly in demand due to which there were more numbers of dealers and retailers were present in that area which has affected the uniformity of the sample.
10.
Respondents were not able to give the exact quantity of sale of each brand of cement from their shop due to which sample of quantity of sale of brands was not gathered.
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3. DATA ANALYSIS
Before starting the analysis of the data few points should be made clear so that the analysis will be easy to understand. 1.
2.
An individual dealer and retailer can sell any number of brands. Although the population of this research is 70 but as one can sell many brands so in few questions number of opinion is used in place of number of population.
3.
Question in both the questionnaire for a certain reason which is described in the interpretation of the question.
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Ques 1. I kept the question number 1 to know the whether he is retailer/ whole seller or both 1. You are a Wholesaler Retailer Both Interpretation of the Question 1 This question was kept common so that the wholesaler retailer be found. It also tells that how many dealers are wholesaling and retailing or only whole selling. The total 31retailer found during the survey who only retails the cement bags. And 39 firms are wholesaling and retailing both .The name of the retailer and whole sale are there of
31, 44%
39, 56%
0, 0%
45 40 35 30 25 20 15 10 5 0 0 1 0 2 0 3 4 31 39 Series2 Series1
Figure 3.1 Whether he is retailer/ whole seller or both
INTERPRETATION OF QUESTION The second question was kept so common so that it could be easily known Which dealers, retailers, has kept which ,brand of cement
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2. Which cements brands you deal with?
40 35 30 25 20 15 10 5 0
AC C
38 26 20 7 7 19 6 Series1 4 3 2 3
J RA P TE C H P G O M LD AH AS A K AM TI BU M J AD RA A RA M S CO C EM EN T PR KA IS M BI MD R HE LA NU SA M R AT
LA F
BG AR G E
UL T
ACC 2% 4% 1% 2% 3% 13% 5% 18% BG LAFARGE JP ULTRATECH P GOLD MAHASAKTI AMBUJA RAMCO 14% 5% 28% MADRAS CEMENT PRISM KAMDHENU BIRLA SAMRAT
3% 2%
Figure 3.2 Dealing of Cements brands
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Interpretation of question 3 The third question is tonnage of each brand which the dealer, retailers has kept for selling . This question was made to know that what the tonnage of each brand in east singhbhum Tonnage of each brand
. . . .. .
7560
.. .. .
tonne
8000 7000 6000 5000 4000 3000 2000 1000 0

C O M R A
tonne 2710 2108 650 250

G O LD R G E
2618 740
1542 290 205

D
315
R K
30
N U H E
65 200
T L&
50
20
E N T
30
E G O L
C C
LA
O N A
R IM
A M
LA
IR
T A
A C
E M
tonne
RAMCO MADRAS BIRLAGOLD
1% 1% 4% 14%
0%0% 0% 2% 1% 3% 1%
JP 11% 8% LAFARGE AMBUJA ACC MAHA SAKTI PRIMEGOLD ULTRATECH 39% KONARK IDEA KAMDHENU BIRLASAMRAT
14%
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Figure 3.3 Tonnage of each brand which the dealer, retailers has kept for selling
Interpretation of question 4 Cash discount is given by the company for earlier payment. Cd differs from company to company . and it also differs among dealers and retailers How many your sale in cash discount given by the different Cement company. Company name Lafarge Ambuja Birla gold Acc Ultratech Jp Konark Ramco Prime gold Kamdhenu Interpretation
Cash discount for dealer 3 4 4 3 3 to 4 6 5 4 3 2 1 0
Jp Ra m co Ko na r dh en u k go ld
Cash discount for dealer 3 4 4 3 3 to 4 3 4 4 5 4
Cash discount for retailer 1.50 to 2 2 1.50 1 to 1.50 2 1 to 1.50 2 2.50 3 2.50
5 4 3 4 4 Cash discount for dealer 3 4 4 3 3 to 4
Pr im
am
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Cash discount for retailer 1.50 to 2 2 1.5 1 to 1.50 2 1 to 1.50 3.5 3 2.5 2 1.5 1 0.5 0 Konark Ramco Prime gold Kamdhenu 2 2.5
3 2.5 Cash discount for retailer 1.50 to 2 2 1.5 1 to 1.50 2 1 to 1.50
Figure 3.4 How many your sale in cash discount given by the different
Cash discount for dealer 3 4 4 3 3 to 4
4, 20%
3, 15% Jp Konark 4, 20% Ramco Prime gold Kamdhenu 4, 20%
5, 25%
Cash discount for retailer 1.50 to 2 2 1.5 1 to 1.50 2 1 to 1.50
25%
20% Konark Ramco Prime gold 25% Kamdhenu
30%
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Interpretation of question 5 4. Discount / yearly Cash discount... Quantity discount... Annual discount Exclusive discount Company name Quantity discount Annual discount(percent) Acc Ambuja Birla gold Ultratech Jp Konark Ramco Prime gold Kamdhenu 1 1.50 .50 2 1 2 3 3 2 to 3 Total sale 1 2% .50 1 2 2 2 2 2 to 2.50 Exclusive discount 1 2 1.50 2 2 2 to 3 3 3 3
Interpretation of question This discount is given to the dealers and retailers for crossing the target Sale. There are different additional discount given by the company.
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Ques- Additional sales discount. .. Company brand name Lafarge Ambuja Birla gold Acc Ultratech Jp Konark Ramco Prime gold Kamdhenu
Additional discount per bag 2.5 2 1.5 1 0.5 0
La fa rg Am e b B i uja rla go ld Jp Ko na rk Ra P r mc o im e go Ka ld m dh en u A Ul cc tra te ch
Additional discount per bag 1 1.50 1 1 2 1 1 2 1 1.50
1.5
2 1 1 1 1
2 1
Additional discount per bag 1.5
Figure 3.5 Additional discount per bag Marketing Activities done by the companies? Mason meeting Shop Wall Painting Gifts on various Occasions
Brands
No. of Responses 19
Shop Painting Yes No -
Mason Meeting Yes 12 No 7
Gifts on Occasion Yes 12 No 7
ACC
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27
Shree Ultra Ultra Tech Ambuja Jay Pee Mycem Birla Gold
7 3 2 4 5 2
7 3 2 4 4 2
1 -
4 3 2 2 5 -
3 2 2
4 3 2 2 5 -
3 2 2
Interpretation of question Different scheme are also provided to the dealers ,retailers . all the cement industry Provides the almost same retailers wholesaler scheme. retailers /wholesaler scheme . . Most of the cement company in east singhbhum are dealing with dealers and retailers almost same type of scheme .in scheme. They provide in scheme gold, silver, scratch coupon, foreign tour etc. Interpretation of question Rake discount . . . Cement company Lafarge Ambuja Birla gold Acc Ultratech Jp Konark Ramco Prime gold Kamdhenu Rake discount 3 3 2 3 2 3 3 3 4 4
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Rake discount 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
ge La fa r
4 3 3 2 3 2 3 3 3
Rake discount
Jp Ko na rk R am co Pr im e go ld Ka m dh en u
bu ja
go ld
Ac c
Am
Bi rla
Ul t ra
te
ch
Rake discount Lafarge 4, 13% 4, 13% 3, 10% 3, 10% 2, 7% Ambuja Birla gold Acc Ultratech Jp 3, 10% 3, 10% 3, 10% 2, 7% 3, 10% Konark Ramco Prime gold Kamdhenu
Figure 3.6 Rake discount
29
4. CONCLUSION AND RECOMMENDATIONS

Promotional activity is the one of the major determinants in the industry which is sales and target based and it is very true in the cement industry. To understand the new trend and mentality of customer and to change the strategies according to it will only make the company lead always. The competitors always try to take an edge over the leading brand and for that they apply various tricks but it is the job of employees to tackle with these types of tricks and plans. For the new challenges of the future. In the present scenario to retain the leading position ACC will have to keep itself update with new strategies and plans for the future.
30
Annexure
QUESTIONNAIRE Name Firms name. .. Address and mob no (if applicable) .. 1. You are a Wholesaler Retailer Both 2. Which cements brands you deal with? . Tonnage of each brand . . . .. . .. .. .
3. How many percentage of your sale in cash discount given by the different Cement company. .. .. 4. Discount / yearly Cash discount... Quantity discount...
31
Annual discount Exclusive discount 5. Additional sales discount. .. 6.Retailers/wholesaler scheme. .. 7. marketing scheme. . . 8. Customer scheme. . . 9. Price equalization + rake discount. . . . 10. Margin expected by the retailer from the cement company. (1) . (2) . (3) . (4) .....
32
BIBLIOGRAPHY
[1] [2]
www.acclimited.com www.lafargelimited.com
33

To Study The Sales Promotion Activities All of The Cement Company in East Singhbhum

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To Study the Sales Promotion Activities all of the Cement Company in East Singhbhum

BIKRAM KUMAR Roll No.: 201076026 Regd. No.: PGDM 10026

Under the guidance of

Mr. Kumar Srikanta Nayak

NIST BUSINESS SCHOOL Palur Hills, Berhampur-761008, Orissa, India

1.2 OBJECTIVE OF THE STUDY

1.3 COMPANY PROFILE

1.3.2 PRESENT OF THE COMPANY Holcim - A New Partnership

Mr Paul Hugentobler Deputy Chairman

Mr Sumit Banerjee Managing Director

South-West Region: SU Hubli SU Bangalore SU Nagpur

East Region: SU Raipur SU Asansol SU Kolkata

2.2 SOURCES OF DATA

2.3 SAMPLE DESIGN

2.4 Sample Size

2.5 SAMPLING TECHNIQUE

2.6 AREA OF STUDY

Figure 3.1 Whether he is retailer/ whole seller or both

2. Which cements brands you deal with?

Figure 3.2 Dealing of Cements brands

8000 7000 6000 5000 4000 3000 2000 1000 0

tonne 2710 2108 650 250

1542 290 205

RAMCO MADRAS BIRLAGOLD

Cash discount for dealer 3 4 4 3 3 to 4 3 4 4 5 4

5 4 3 4 4 Cash discount for dealer 3 4 4 3 3 to 4

3 2.5 Cash discount for retailer 1.50 to 2 2 1.5 1 to 1.50 2 1 to 1.50

3, 15% Jp Konark 4, 20% Ramco Prime gold Kamdhenu 4, 20%

Cash discount for retailer 1.50 to 2 2 1.5 1 to 1.50 2 1 to 1.50

20% Konark Ramco Prime gold 25% Kamdhenu

Additional discount per bag 1 1.50 1 1 2 1 1 2 1 1.50

Additional discount per bag 1.5

Shop Painting Yes No -

Mason Meeting Yes 12 No 7

Gifts on Occasion Yes 12 No 7

Figure 3.6 Rake discount

4. CONCLUSION AND RECOMMENDATIONS

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