You are on page 1of 93

TABLE OF CONTENTS

Preface Declaration Acknowledgment Introduction of the Company


Company Overview Objectives of the study Companys product

2 3 7 26 56 61 74 80 90 92 96 98

Swot Analysis Marketing Research Research Methodology Rating Scale of Company Conclusion Conclusion and Suggestions for further Research Annexure Bibliography

INTRODUCTION OF THE PROJECT TOPIC

J.K. Cement is an affiliate of the J.K. Organization, which was founded by LalaKamlapat Singhania. The J.K. Organization is an association of industrial and commercial companies and has operations in a broad number of industries. Their cement operations commenced commercial production in May 1975 at their first plant at Nimbahera in the state of Rajasthan. At Nimbahera, we started with a single kiln with a production capacity of 0.3 million tons. They added a second kiln in 1979 with production capacity of 0.42 million tons, and a third kiln in 1982 with a production capacity of 0.42 million tons. They added a precalciner with a capacity of 0.4 million tons in 1988, which increased their capacity at Nimbahera to 1.54 million tons. During the years 1998 through 2003, they continued to implement modifications to each of their kilns, which increased our aggregate capacity at Nimbahera to 2.8 million tons as of September 30, 2005. They commissioned a second grey cement plant at their Mangrol plant in 2001, with a production capacity of 0.75 million tons. As of September 30, 2005, they had an aggregate production capacity of 3.55 million tons per annum of grey cement. Their white cement plant was completed in 1984 with a capacity of 50,000 tons.

Their continuing modifications to the plant have increased its production capacity to 300,000 tons as of September 30, 2005. Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India. They are also the second largest white cement manufacturer in India by production capacity. While the grey cement is primarily sold in the northern India market, the white cement enjoys demand in the export market including countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Ken

EXECUTIVE SUMMARY
In modern era, there is too much competition. Every company is running for profit and maintains a good value in consumers mind, but this is not an easy task. For making regular profit and maintain good value, it is very important that company making good policy and also changing time to time. Your product has a good value, but this not means that you get good profit if your product is not available in the market. So for Availability Company has to select a channel by which consumer get that product from market. This is varying from company to company and product to product that what kind of Channel Company adopted for their product to sell out in market. There are many types of channel of marketing, but distribution channel is simpler and more profitable for companies. Distribution channel is more systematic way of selling different product in different market, because in this type of channel company dont have to go to sell their product direct to customer, and they dont have to hire too many teams of marketing executive. Companies just hired good distributer who have knowledge

about that market and have good wealth by which he can give credit to local retailers. Companies just have to give some extra margin to distributer. J.K. Cement is an affiliate of the J.K. Organization, which was founded by Lala Kamlapat Singhania. There cement operations commenced commercial production in May 1975 at their first plant at Nimbahera in the state of Rajasthan. , J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India. They are also the second largest white cement manufacturer in India by production capacity. There access to high quality limestone reserves that are suitable for production of white cement provides us with a competitive advantage. White cement accounted for 16.6% of their total cement revenue and 35.2% of adjusted EBITDA from their cement operations in fiscal 2005, and 15.5% of revenues and 26.7% of their adjusted EBITDA from their cement operations in the six months ended September 31, 2005. The analysis is done in the J.K white cement, kamla tower, Kanpur. I find that in the segment of white cement J.K white cement is Number 1. But in wall putty they are Number 2. I asked some important question to distributer channel of J.K white cement. In my survey; I found that there is some communication gap between company and local retailers. I also found that company marketing executives did not perform their job as they have to do. Company is also lacking in the field of marketing. Their

competitor is stronger in marketing. And their marketing team is also very strong. So thats why J.K losing their shares is white cement and putty also. After analysis some recommendation are given to the organization, which will help the organization in the field of marketing.

OBJECTIVE OF THE STUDY

OBJECTIVE

Objective of the project is to understand the comparative analysis of marketing strategy of the JK White cement and Birla White cement. And to know the perception of customers and dealers about the product. To know the effectiveness of sales in project work. To analyze the market potential in the cement and wall putty segment. To analyze the problems which supplier faces in supplying the product.

SCOPE OF THE STUDY

The project will help the company to concluding further study about their channel distribution. What kind of changes they have to adopt in their distribution channel by which they can make more ground for their products. Also by this project company know about their marketing strategy, how they can acquire more market for their product.

INDUSTRY OVERVIEW OF JK WHITE CEMENT

J.K.

Cement

is

an

affiliate of the J.K.

Organization, which was founded by Lala Kamlapat Singhania. The J.K. Organization is an association of industrial and commercial companies and has operations in a broad number of industries. Their cement operations commenced commercial production in May 1975 at their first plant at Nimbahera in the state of Rajasthan. At Nimbahera, we started with a single kiln with a production capacity of 0.3 million tons. They added a second kiln in 1979 with production capacity of 0.42 million tons, and a third kiln in 1982 with a production capacity of 0.42 million tons. They added a precalciner with a

10

capacity of 0.4 million tons in 1988, which increased their capacity at Nimbahera to 1.54 million tons. During the years 1998 through 2003, they continued to implement modifications to each of their kilns, which increased our aggregate capacity at Nimbahera to 2.8 million tons as of September 30, 2005. They commissioned a second grey cement plant at their Mangrol plant in 2001, with a production capacity of 0.75 million tons. As of September 30, 2005, they had an aggregate production capacity of 3.55 million tons per annum of grey cement. Their white cement plant was completed in 1984 with a capacity of 50,000 tons. Their continuing modifications to the plant have increased its production capacity to 300,000 tons as of September 30, 2005. Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India. They are also the second largest white cement manufacturer in India by production capacity. While the grey cement is primarily sold in the northern India market, the white cement enjoys demand in the export market including countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania, UAE and Nepal.

Their access to high quality limestone reserves that are suitable for production of white cement provides them with a competitive advantage. Based on geological

11

surveys conducted by independent agencies on their mines between 1996 and 2001, their limestone reserves for both grey and white cement are expected to meet our existing and planned limestone requirements of 4.0 MnTPA of grey cement and 0.4 MnTPA of white cement, for approximately 40 years. Backed by state-of-the-art technology and highly skilled manpower against the backdrop of Indias infrastructural growth in an overdrive, they are upbeat about The future. They are confident of contributing heavily in Indias journey of development. They see a world of concrete ideas on the horizon.

Lt. Lala Juggilal Singhania

12

Lt. lala Kamlapat Singhania (The founder)

Lt. Sir Padmpat singhania (The architect)

13

Dr.Gaur Hari Shinghania (The torchbearer)

Mr.Yadhupati Singhania (The propagator)

14

COMPANY PLANT, & PRODUCTION

15

Company manufacture grey cement in two facilities located at Nimbahera and Mangrol in the state of Rajasthan in Northern India. White cement is produced at their facility at Gotan in the state of Rajasthan. Company plants have obtained many accolades and recognition, the most noteworthy being: ISO-9001:2000 QMS and ISO-14001:2004 EMS for the grey cement facility at Nimbahera and ISO9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-18001:2005 Occupational Health and Safety for the white cement facility at Gotan. The construction of their first most modern dry cement plant began in 1970 in Nimbahera in Rajasthan. Gotan, Rajasthan:

16

Commenced commercial production in 1984 with an initial capacity of 0.05 MnTPA. Constant up-gradation and modernization, especially in the year 2000, saw the installed capacity rise to 0.21MnTPA. The increase in demand for this product and focus on installed capacity backed by state-of-the-art technology, has taken its installed capacity to 0.3 MnTPA. Capacity utilization of around 75%. Operating profit: 30% consistently. Recognition: ISO-9001:2000 QMS, ISO14001:1998 EMS & OHSAS-18001:2005

17

Chanderia

Cluster,

Rajasthan

Commenced commercial production in 1975 with an initial capacity of 0.3 MnTPA. In the year 1979, second production line was added to enhance the production capacity to 0.72 MnTPA. 1982 witnessed the incorporation of another production line taking the production capacity to 1.14 MnTPA. In 1988 a pre-calciner was installed and the production capacity touched 1.54 MnTPA. Constant modernization and up-gradation was instrumental in bringing the plant to its present capacity of 2.8 MnTPA. Capacity utilization of around 90% Can produce up to 3.1 MnTPA with production of silicate cement on capacity of 2.8 MnTPA Recognition : ISO-9001:2000 QMS and ISO-14001:2004 EMS The following table shows a breakdown of production of the Nimbahera, Mangrol and Gotan cement facilities for the periods indicated.

Fiscal 2003 Nimbahera 2,323,283

Fiscal 2004 2,272,760

Fiscal 2005 2,414,196

Six months ended September 30, 2005 1,256,942

18

Mangrol Gotan

570,464 200,149

718,572 215,538

912,419 224,481

493,211 99,343

MANAGEMENT PHILOSOPHY

Customers Satisfaction Always invest in Latest Technology Huge Distribution Network Creation Expansion through Balancing Equipment

19

Constant focus on Cost Control & Quality Invest in Managers & Develop People Skills Stability of Executive Management & Low Employee turnover Social Welfare - A Priority

THEIR STRENGTH

They enjoy a number of key competitive advantages, which have helped them maintain our position as one of the leading cement manufacturers in the Northern Indian cement market. Their principal strengths and competitive advantages are as follows:

20

Leading position in attractive Northern India grey cement market. Based on CMA data, Northern Indian cement manufactures have consistently operated at the highest levels of capacity utilization among Indias five regions. They believe this reflects the strong demand in Northern India for cement products relative to supply. Further, based on capacity expansions announced by cement manufacturers, we expect cement plants in Northern India to continue to operate at high utilization levels and anticipate continued strong demand for our grey cement products in the near and medium-term. They believe that they are well positioned to take advantage of this demand, as the fourth largest grey cement manufacturer in Northern India, and the largest grey cement manufacturer in the state of Rajasthan. One of the Leading white cement producer in India: White cement accounted for 16.6% of our total cement revenue and 35.2% of adjusted EBITDA from their cement operations in fiscal 2005, and 15.5% of

21

revenues and 26.7% of their adjusted EBITDA from our cement operations in the six months ended September 31, 2005. Unlike grey cement, the white cement industry in India is highly concentrated with the two largest players accounting for the substantial majority of Indias production capacity. Consequently, prices of white cement have been relatively less volatile and sales of white cement have generated more stable cash flows for us even during industry downturns in grey cement. They also believe their position as the second largest producer of white cement in India, together with their nationwide delivery network, significantly enhances the overall brand image of JK Cement.

Proximity and access to large reserves of high quality limestone:

They have

access to large reserves of limestone for both their grey and white cement

22

operations, which they believe are sufficient to sustain their operations well into the future. Based on independent geological surveys of different mines during 1996 to 2001, they believe that our limestone reserves are sufficient to support their current and planned capacity for approximately 40 years for both grey and white cement. (Put in risk - assuming they are able to renew their existing leases upon their expiry) As one of the first cement producers in Northern India, they were able to choose their limestone reserves in an area with high quality limestone resources. In addition to allowing them to produce white cement, which requires high quality limestone, it also provides them with a cost advantage, as they are not required to purchase sweeteners to improve the quality of limestone. Further, their manufacturing plants are in close proximity to their limestone reserves, resulting in lower transportation costs. Finally, their mines that supply their white cement plant at Gotan also have a supply of white clay, an important additive necessary for white cement production.

Quality of products and strong brand name: They believe that brand name and reputation are important to retail purchasers of cement in India. They have built a strong reputation among cement purchasers by consistently providing high quality products. They believe that there is strong customer awareness of their brands, JK Cement (Sarvashaktiman), for grey cement in their principal market in Northern India, and JK White (Camel), for white cement across India. Further, they believe that their brand name and their

23

reputation for consistently supplying high quality products provide them with a competitive advantage in ensuring that cement dealers carry their products.

COMPANY PRODUCT

24

Extensive marketing and distribution network:

They have a wide distribution network for grey cement in Northern India. They also have a strong all-India distribution network for white cement. Their distribution network for grey cement products consists of 44 feeder depots serviced by seven regional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh and Gujarat. Their white cement network comprises 20 feeder depots serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar Pradesh, West

25

Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharashtra, Gujarat, Madhya Pradesh and Rajasthan. In addition, they have more than 4,000 retail stores that stock our grey and white cement products, as well as 22 sales promoters and four handling agents. They believe that the extent of this network, and their relationships with dealers, enables them to market and distribute our cement widely and Experience and technical know-how: They have 30 years of experience in the Indian cement industry, which they believe provides them with the skills to maximize production efficiency, expand production capacity quickly and reduce costs. Over the years, they believe that they have developed long-term customer relationships and a strong reputation for quality. In addition, they have a proven track record of upgrading and modernizing their production capabilities efficiently, having increased their production capacity at Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons as of September 30, 2005. Further, they have a stable and experienced middle and senior level management team, many of whom have been working in their cement operations for more than 20 years. Their Nimbahera manufacturing facility was chosen by the World Bank and The Danish International Development Agency as one of the four training centers in India to serve as the Regional Training Center for Northern India. There are only four regional training centers for the cement industry in India, and they believe efficiently.

26

their operation of the training center provides us with access to state of art training aids, live working models, and technical expertise developed by well known national and international cement producers.

27

PRODUCT PORTFOLIO
They produce grey cement and white cement. Grey cement produced by them consists of Ordinary Portland cement (OPC) and Portland Pozzolana Cement (PPC). OPC has three principal grades that are differentiated by their compressive strengths, and consist of 53-grade, 43-grade and 33-grade OPC. All their products comply with the quality standards specified by the Bureau of Indian Standards (BIS). Their cement products are marketed under the brand names J.K. Cement and Sarvashaktiman for OPC products, J.K. Super for PPC products and J.K. White and Camel for white cement products, which believe are well known brands.

28

TYPES OF PRODUCT

29

Types of Cement:

Grey Cement
Grey cement produced by us consists of OPC and PPC. There are also other cements in the market that we do not produce, such as Portland slag cement, oil well cement, sulphate resistant cement, rapid gardening cement, low alkali cement, low heat cement and super finish cement.OPC has three grades that we produce, that are differentiated by their compressive strengths, expressed in mega pascals (MPa), as specified by the BIS.These grades are 53-grade OPC, 43-grade OPC and 33-grade OPC, with 53-grade OPC having the highest compressive strength. The customer selects the grade of OPC based on the intended application. Our most popular

30

cement, by sales volume, is 43-grade cement, with 53-grade cement being used in applications which require high strength characteristics.

Ordinary Portland cement


OPC is produced by inter-grinding cement clinker prepared in a rotary cement kiln with gypsum. Each metric ton of OPC requires approximately 0.95 metric tons of clinker and approximately 0.05 metric tons of gypsum. The range of applications, the physical and chemical requirements specified by BIS and strength of the three grades of OPC are discussed below: 53-grade OPC (IS:12269-1987): 53-grade OPC is high strength cement. According to the BIS requirements, 53-grade OPC must have a 28-day compressive strength of no less than 53 MPa. For certain specialized products, such as pre-stressed concrete and certain pre-cast concrete items requiring high strength, 53-grade OPC is considered useful as it can produce high-grade concrete at lower cement content levels. They produce 53-grade OPC by exposing the clinker to the grinding process for longer period of time, which results in a higher density and stronger cement. As the grinding process requires a significant amount of power, finer grinding for the 53-grade OPC requires more power and is therefore priced higher compared to lower grades of OPC.53-grade OPC can be used for the following applications:
1) Pre-cast concrete items such as paving blocks, tiles and building blocks.

31

2) Pre-stressed concrete components and (3)Runways, concrete roads and bridges. 43-grade OPC (IS-8112:1989): According to the BIS requirements, 43-grade OPC must have a 28-day compressive strength of no less than 43 MPa. 43-grade OPC is commonly used in the following applications: 1) General civil engineering construction work. 2) Pre-cast items such as blocks, tiles and pipes. 3) Asbestos products such as sheets and pipes and 4) Non-structural works such as plastering and flooring. 33-grade OPC (IS-269:1989): 33-grade OPC has been commonly used for general civil construction work under normal environmental conditions. According to the BIS requirements, 33-grade OPC must have a 28-day compressive strength of no less than 33 MPa. The increased availability of higher grades of OPC has decreased the use of 33-grade OPC in India and now 43-grade OPC is normally used for general construction work rather than 33-grade OPC. 33-grade OPC is now more commonly used for mass concreting and plain cement concreting and is produced on a made to order basis. It can also be used for plastering and single storey individual houses.

32

Portland Pozzolana Cement:


They also manufacture PPC (IS:1489 (Part-1) 1991) under the brand name J.K. Super. PPC is also known as blended cement or silicate cement, and this blended cement has become increasingly popular in the market in recent years. Each ton of PPC requires approximately 0.75 tons of clinker, 0.05 tons of gypsum and 0.20 tons of fly ash, a pozzolanic material that is a by-product of thermal power plants. In the manufacture of PPC, a portion of the clinker is replaced with fly ash. This enables the cement manufacturer to produce a higher quantity of cement per ton of clinker. As a result, the cement manufacturer can increase its production capacity by making a limited investment in grinding capacity without a corresponding investment in earlier stage production equipment such as kilns. Further, the only cost incurred for fly ash is transportation cost from the thermal power plants that generate it to the cement manufacturing site, as fly ash is currently available free of cost. The use of fly ash therefore significantly reduces the overall cost of production of cement. The advantage of PPC is its low heat of hydration and corresponding resistance to exposure to various environmental chemicals such as salt water. It is particularly suitable for marine and hydraulic construction and other mass concrete structures. This cement has durability that is equivalent to OPC and can be used most of the

33

applications where OPC is used. As PPC is generally sold at a comparable price to OPC and the cost of production of PPC is comparatively lower, PPCs margins per ton are generally higher compared to OPC.

White Cement:
They manufacture white cement under the brand names J.K. White and Camel. White cement is produced using a different quality of limestone and is distinguished from grey cement by its white color. Each ton of white cement requires approximately 1.33 tons of limestone, 0.02 tons of gypsum and 0.2 tons of additives including white clay, feldspar and fluorspar.

34

White cement is typically used in three principal areas of application, as set forth below:

Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout, wall applications, such as decorative white cement paints and plain and spray plasters; and

Other specialized applications including glass fiber reinforced concrete, garden furniture, lamp posts, as pointing for brick and stone works and as pre-cast cladding panels.

They sell white cement primarily in the Indian market. They also export white cement to a number of countries, including South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania, United Arab Emirates and Nepal.

WHY J.K WHITE CEMENT

35

World- class technology o State of the art technology to ensure consistent quality at every stage.

Best raw materials


o

Gotan ( Rajasthan) having one of the best known source of chemically pure high grade limestone.

Stringent quality control o Quality control facility involves technical expertise of F.L.Smidth & Co. Denmark, the world leader in cement technology.

Management system o Certified to QMS ( ISO 9001 : 2000), EMS (ISO 14001), OHSAS 18001 & SA 8 8000.

On-line quality control equipment


o

QCX : Quality control by computer & X-ray analyzers at all stages of production.

36

Fuzzy logic : production activity from mining to cement packing controlled by computerized technology.

Excellent whiteness
o

Perfect white cement free from coloring impurities.

Economy to paint industry o Higher fineness reduces milling time and also gives higher spreading capacity. The result is saving on white cement cost.

Water Proof:

37

JK Water proof is another product from JK Cements Ltd. which is ISI approved. Its a water repellent material in powder form which specially formulated and designed to prevent passage of water through pore and capillaries of the concrete, thereby imparting to concrete an efficient, dependable and durable water proofing protection against rain, ground water, moisture, dampness, humidity etc. JK Water proof is free from chlorides and is based on material which disperses rapidly and makes a homogenous mix with cement. It conforms with IS:2645-1975 (Reaffirmed 1987). JK Water Proof pack is available in 2 different sizes i.e. 1 kg & 25 kg.

JK Wall Putty:
White cement based putty for luxurious and silky interior/exterior finish of your dream home. JK Wall Putty is White Cement based putty for cement plastered walls and ceilings. J.K. Wall Putty is used to fill the uneven surfaces of cement plastered walls and concrete walls. Application of J.K. Wall putty provides smooth and strong finish to the walls for further application of all kinds of paints. The smooth finish gives better look to interiors and exteriors.

38

Treatment of New Surface


The new surface requires only soft treatment such as removal of dust, dirt and foreign matter. In case of cracks, voids and damages; it should be patched up prior to application of J. K. Wall Putty with grey/white cement.

Treatment of Old Surface


All loose material and/ or organic growth must be removed with Putty blade or brush. In case of old painted surface scrub the surface with coarse emery stone/paper.

Preparation of J.K. Wall Putty Paste


J. K. Wall Putty is a fine powder. Mix slowly J. K. Wall Putty with approx. 40% water by volume to prepare paste of desired consistency. Mix vigorously for 5-10 minutes for making lump free, uniform and smooth putty paste. Product should be mixed in required quantities to be used within 2-3 hrs of its preparation.

39

Application
Apply uniformly the first coat of J.K. Wall Putty with blade/trowel on the wall from bottom to top. Apply second coat after the first coat has dried completely. Limit the total thickness of 2 coats to 1.5 mm. Allow complete drying and then use fine emery paper to remove the application mark if any. Any kind of paint can be applied on this surface. Use water for curing before applying paint.

Precaution
Although J.K. Wall Putty does not contain any toxic material, use rubber gloves while mixing, as prolonged exposure with water may soften the skin resulting in fine cuts/legions due to cement particles. Precaution should be taken to avoid dust inhalation while handling the powder putty.

Storage
Store J.K. Wall Putty in a dry place and open the pack just before use. Keep out of reach of children.

40

Comparison Between J.K. Wall Putty and Traditional Putty Properties J.K. Wall Putty Traditional Putty Due to only chalk powder, Binding Property J.K. Wall Putty is white cement based putty. it has very less binding Hence it possesses good binding property. property. Due to its cement base, J.K. Wall Putty Durability becomes an integral part of plaster and hence more durable. J.K. Wall Putty covers more surface area Coverage Area exceeding 20 Sq. ft./kg. In 2 coats on a new plastered wall. Water J.K. Wall Putty resists dampness. Resistance Flaking occurs when it Flaking No Flaking. comes in contact with water. Consumption of J.K. Wall Putty requires less paint due to Paint low absorption. Requires more paint due to high absorption. Does not resist dampness. Covers less surface area. Less durable

41

Primer Coat

No primer coat is required. Better appearance due to very high

Primer coat is must.

Appearance

whiteness of Putty. NCCBM certifies 93% whiteness.

Appearance is yellowish.

High pigmentation. Pigmentation Less pigment consumption yet bright colors. Consumption yet dull colors. Consistency in quality as it is made under stringent quality control with tested Consistency ingredients under one roof at company premises. Ultimate cost is less due to (a) Long life span (b) No Primer cost Cost (c) Less paint consumption & (d) No use Of enamel & varnish while preparing putty paste. Ultimate cost is more. No consistency.

42

Advantages over Plaster of Paris (POP) 1. White cement based product therefore strength is more than gypsum based POP. 2. J.K. Wall Putty can be applied on exteriors/exposed surfaces whereas the same is not possible with POP. 3. J.K. Wall Putty is very white in appearance while POP is yellowish. 4. In case of J.K. Wall Putty no primer is required before painting, whereas it is compulsory for POP surfaces. 5. J.K. Wall Putty resists seepage while POP does not.

POLICY

43

Technologies change, needs change, and in turn products change. What remain unchanged, are values and ideas that propel any entity forward. Ideas that are concrete and unwavering, just like their outcome. At JK Cement we are crossing milestones, one after another, propelled by the following concrete ideas:

To provide products that fully comply with technical specifications committed to our customers, at the most competitive price.

To ensure complete reliability in our dealings with customers, distributors, suppliers & other partners.

To operate our manufacturing facilities in such a way, that they help sustain the environment & provide new opportunities for the underprivileged in that region.

44

To ensure that every department of our every office encourages new & better ideas and freedom of expressing the same, and cultivate a work environment that rewards excellence in every employees chosen area of work leading to a harmonious & fulfilling atmosphere.

To motivate every team member to challenge his last best performance and out do it continually.

To remain abreast and imbibe the latest technological trends for the benefit of our customers.

Technical services offered

CSM Counter services meet CSW Contractors & supervisors workshop

45

DIP Downstream industry promotion for technical & managerial help to industry

DOA Demonstration of application EAA External application agency recommendation to customers EXH Exhibitions for application Interaction ICC Industrial clients contact to solve their problem LIT Literature based on application R & D MTW Masons technical workshops PAS Product application seminars PTW Painters technical workshops RCC Rural consumers contact SDA Stockiest & dealer awareness applications UCC Urban consumers contact

Any other technical services/advice desired by custom

46

Prompt technical services


Specialty of executive
Experience Nearness to you

47

Speaking your language

Specialty of services
Before purchase Before application During application

CARPORATE SOCIAL RESPONCIBILITY


WHITE CEMENT UNIT

Concrete Road with proper drainage system at Gotan village Sponsorship of annual Eye camps at Gotan Street Light for Gotan village

48

Tree plantation along the road leading to Gotan Organizing Social event for residents of Local area Funding & Technical support for Infrastructure projects of Local Community

Tube Well to provide drinking water for villagers Temple (Renovation of two old temples) Dharamshala (Inn) at Gotan Village Free education to the wards of Kargil war heroes Free bus service for students of nearby villages Building for girls school at Gotan village

GRAY CEMENT UNIT


Construction of Hospitals Sponsorship in eye camps Construction of Dharamshalas Construction of Panchayat building Construction of Temple in township

49

Construction of school buildings in nearby villages Construction of roads connecting with the highways Provide drinking water facilities in nearby villages by bore wells Operating an Industrial Training Institute affiliated with National Council for Vocational Training, Govt. of India

Running two schools : Padam Vidya Vihar- From K.G. to Vth Class & Kailash Vidya Vihar From VIth to XII affiliated with Central Board of Secondary Education (CBSE) Govt. of India. More than 1000 students study in these schools

MANUFACTURING PROCESS

50

The production process for cement consists of drying, grinding and mixing limestone and additives like bauxite and iron ore into a powder known as raw

51

meal. The raw meal is then heated and burned in a pre-heater and kiln and then cooled in an air cooling system to form a semi-finished product, known as a clinker. Clinker (95%) is cooled by air and subsequently ground with gypsum (5%) to form Ordinary Portland Cement (OPC). Other forms of cement require increased blending with other raw materials. Blending of clinker with other materials helps impart key characteristics to cement, which eventually govern its end use. There are two general processes for producing clinker and cement in India : a dry process and a wet process. The basic differences between these processes are the form in which the raw meal is fed into the kiln, and the amount of energy consumed in each of the processes. In the dry process, the raw meal is fed into the kiln in the form of a dry powder resulting in energy saving, whereas in the wet process the raw meal is fed into the kiln in the form of slurry. There is also a semi-dry process, which consumes more energy than the dry process but lesser than the wet process.

52

PRODUCTION PROCESS

53

54

SWOT ANALYSIS

SWOT ANALYSIS

55

STRENGTH:
MARKET STANDING: Strong presence in the market; steady growth in sales. MARKET COVERAGE: Nationwide coverage; semi-urban and rural areas also well covered. MARKET SHARE: Market leader in white cement. INNOVATION IN MARKETING: Very innovative; especially in distribution. PRODUCT MIX: Wide range. PACKAGING: Small packs, a major strength. NEW PRODUCT CAPABILITY: Limited strength. PRICING: Costs are controlled and prices pegged; High volumes are released. PHYSICAL DISTRIBUTION SERVICE LEVEL: High.

56

INVENTORY MANAGEMENT: Very good inventory holding cost lowest in the industry.

WEAKNESS:
INNOVATION IN MARKETING: Wide product mix puts strain on production, distribution, accounting and administration. NEW PRODUCT CAPABILITY: Innovation in new products inadequate. INVENTORY MANAGEMENT: Ever expanding product mix exerts some strain on inventory management. MARKETING CAPABILITY OVERALL: More innovation needed for the future; Competition is catching up fast.

57

OPPORTUNITY:
THE CONSUMER/DEMAND: Large consumer base; growing urban middle class. Demand is constantly on the increase.
THE INDUSTRY/COMPETITION: Industry attractiveness/profitability

generally good in the medium term. Industry is gaining expert orientation. TECHNOLOGY: I\those who command the best technology have the scope to stay on top. NATURAL ENVIRONMENT: Generally India is full of raw material.

THREAT:
THE CONSUMER/DEMAND: Consumers are becoming choosier. THE INDUSTRY/COMPETITION: the rapid change in industry structure. For the new entrants too competition is a major factor to reckon with. Intense competition and overcrowding likely to lead to a shakeout in the coming year. The demand cannot support so many problems TECHNOLOGY: More investments and effort in technology and R&D are required.

58

NATURAL ENVIRONMENT: Though availability of main raw material stone is no problem, cost competitiveness is lacking. Productivity has to improve compared to international standard.

59

MARKETING RESEARCH

60

What is a market?
Traditionally, a market was a physical place where buyers and sellers gathered to buy and sell goods. Economists describe a market as a collection of buyers and sellers who transact over a particular product.

What is marketing?
Marketing deals with identifying and meeting human and social needs. In one line meeting need profitably. In the social terms deliver a higher standard of living so marketing means from creating to delivering value to customers and for managing customer relationship is marketing.

Importance of marketing
It is very important that a company always makes profit, and for this every aspect of department works regular. Like finance, production and so on. But if there is not sufficient demand for products or services so the company can make profit. So then there is a need of marketing, by which company know how to sell their product or services to consumer. Now every company has confronted newly empowered customers and new competitors, and has had to rethink their business models.

The scope of marketing

61

To prepare to be a marketer, you need to understand what marketing is, how it works, what is marketed, and how does the marketing.

Marketing channel
Most producers do not sell their goods directly to the final users; between them stands a set of intermediaries performing a variety of function. These intermediaries constitute a marketing channel (also called a trade channel or distribution channel). Formally, marketing channel are set of interdependent organization involved in the process of making a product or services available for use or consumption. They are the set of pathways a product or services follows after production, culminating in purchase and use by the final end user. Some intermediaries such as wholesalers and retailers buy, take title to and resell the merchandise; they are called merchants. Others brokers, manufactures representatives, sales agents search for customers and may negotiate on the producers behalf but do not take title to the goods; they are called agents.

62

The importance of channels


A marketing channel system is particular set of marketing channels employed by a firm. Decisions about the marketing channel system are among the most critical facing management. Marketing channel also represent a substantial opportunity cost. One of the chief roles of marketing channel is to convert potential buyers into profitable orders. Marketing channels must not just serve markets, they must also make markets. The channels chosen affect all other marketing decisions. The companys pricing depends on whether it uses mass merchandisers or high quality boutiques. The firms sales force and advertising decisions depends on how much training and motivation dealers need. In addition, channel decisions involve relatively long term commitments to other firms as well as a set of policies and procedures. When an automaker cannot buy them out the next day and replace them with company owned outlets. In managing its intermediaries the firm must decide how much effort to devote to push verses pull marketing. A push strategy involves the manufacture using its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users. Push strategy is appropriate where there is low brand loyalty in a category, brand choice is made in the store, the product is

63

an impulse item, and product benefits are well understood. A pull strategy involves the manufacture using advertising and promotion to persuade consumers to ask intermediaries for the product, thus inducing the intermediaries to order it. Pull strategy is appropriate when there is high brand loyalty and high involvement in the category.

Channel development
It depend on the company, what kind of channel they have, if the company is very successful, it might branch into new market and use different channel in different markets, the firm might sell directly to retailers; in larger markets it might sell through distributers. In rural areas it might works with general goods merchants; in urban areas, with limited line- merchants, in one part of the country it might grant exclusive franchises; in another, it might sell through all outlet willing to handle the merchandise. In one country it might use international sales agent; in another, it might partner with local firms. In short, the channel system evolves in response to local opportunities and conditions. Consumers is also seeks different types of channel for different functions in making a purchase

64

The role of marketing channel


Intermediaries bring in pooled financial resources. They help bulk and create assortment for the customer. They are normally more cost- effective due to specialization

65

Channel function and flows


A marketing channel performs the of moving goods from producers to consumers. It overcomes the time, place and possession gaps that separate goods and services from those who need or want them. Members of the marketing channel perform a number of functions.

Physical flow
Supplier s Transporters warehouses

Manufactur e

Transporte rs warehouse

Dealers

Transporters

Customers

Title flow
Suppliers
Manufacture Dealers Consumers

66

Channel levels
The producer and the final customer are part of every channel.

Consumer marketing channel

0 level
Manufactur

1 level
Manufact

2 level
Manufactu

3 - level
Manufactur e

ure

re

Wholesal er

Wholesale r

Jobber

Retailer

Retailer

Retailer

Consumer

Types of intermediaries

Consume r

Consume r

Consume r

67

A firm needs to identify the types of intermediaries available to carry out its channel work. For example- Companies should search for innovative marketing channels. Initially, for reaching subsidized foods grains to remote villages some state governments used mobile vans for direct distribution. Later, with insight into tribal customer buying behavior, these vans started distributing food grains from by visiting periodic market, with a substantial reduction in distribution costs. HLLs operation shakti, involving self help groups of women for reaching its products in rural area; India times web marketing site; and ITCs e-choupal fall in this category.

Number of intermediaries
Companies have to decide on the number of intermediaries to use at each channel level. Three strategies are available:

68

Exclusive distribution
It means severely limiting the number of intermediaries. It is used when the producer wants to maintain control over the service level and outputs offered by the resellers. Often it involves exclusive dealing arrangements. By granting exclusive distribution, the producers hopes to obtain more dedicated and knowledgeable selling. It requires greater partnership between seller and reseller and is used in distribution of new area.

Selective distribution
It involves the use of more than a few less than

all of the intermediaries who are willing to carry a particular product. It is used by established companies and by new companies seeking distributors. The company does not have to worry about too many outlets; it can gain adequate market coverage with more control & less cost than intensive distribution.

Intensive distribution
It consists of the manufacture placing or services in as many outlets as possible. This strategy is generally used for items, such as

69

tobacco products, soap, snack, foods, and gums products, for which the consumer requires a great deal of location convenience. Manufactures are constantly tempted to move from exclusive or selective distribution to more intensive distribution to increase sales. This kind of strategy helps in short term, but often hurts long term performance. Intensive distribution increases product and service availability, but May also result in retailers competing aggressively, if price wars ensue, retailers profitability may also decline, potentially dampening retailer interest in supporting the product. It may also harm brand equity.

Channel management decision


In this there are five step in which a company make a better channel to sell their product or services:

70

Selecting channel members Training channel members Motivating channel members I. II. III. IV. V. Coercive power Reward power Legitimate power Expert power Referent power

Evaluating channel members Modifying channel arrangements

No marketing channel will remain effective over the whole product life cycle. So this is most important that companies always make changes in their marketing channel.

71

72

RESEARCH METHODOLOGY

Research Definition
Simply speaking the purpose of research is to find a solution to a particular type of problem or showing the problem a direction towards solution or putting some light in the unknown areas of knowledge for your enlightenment to that particular area of knowledge-thus research actually help us to understand our reality more clearly as well as help us to enjoy better living standard. So, research is kind of a project to find out some answers or solutions for a particular area-research is kind of

73

project because every project has its scope of work, time-line and resources, thats why you may easily interrelate research work with a project-in fact every research work works on based on a well-devised project plan

How Research Works? Like every system of this world, research also follow certain rules and take the help of certain organized procedures in order to get the intended result. In a word, a research works on its methods to serve its true purpose in any area of the knowledge domains. So, for working of a research project, you need to approach your study area in a systematic way, which is also recognized and familiar with the rest of the world-what I mean by this is that your research method must be recognized by all over the world or at least by the majority of the scientific community.

74

What is the value of Research? 1. Every research works either identify new opportunities for us or give us novel ideas. 2. Research helps us to diagnosing any known problems or opportunities; 3. Help us to establish a standard of taking action on any chosen area of the knowledge domain. 4. Evaluate and develop the current technologies and systems.

75

SOURCES OF DATA
Data was gathered through secondary sources or both for problem, or project analysis.

Secondary Data:
Secondary data is data that was collected for another purpose and already exist somewhere. Secondary data can solve problem partly or wholly. Secondary data offer the advantages of low cost and ready availability. Secondary sources are Internet (websites), Books, Journals, Magazines, and Newspaper etc. . Instruments of primary data are Questionnaires, Personal Interview etc.

Sources of Data
Secondary Data Books, Website

76

Tools and Techniques of Data Collection


Inferences are drawn by quantitatively from the response percentage. Through observations some findings are made. Recommendations are made to improve the present policy and procedures.

77

RATING SCALE

78

JK White Cement Ltd.


Customer Satisfaction Survey
Customer Name Customer Representative DESCRIPTION Signature Date

OF THE RATING SCALE Surveyed By

Rating to be done from 1 to 10 scale Satisfaction level based on 1 to 10 scale: from 1for totally dissatisfied to 10-for truly satisfied Level 4 -for quite dissatisfied, 7 for quite satisfied. 1 1 2 3 4 5 6 7 8 9 0 The Importance level is based on 1~10 scale, from 1 for not important at all & 10-for extremely important. Level 4 -for somewhat unimportant to level 7 for somewhat important. Description Purchase Department Related Issues Scale Presale related attributes Accessibility of Marketing personnel Level Satisfacti on Importan ce Satisfacti on Importan ce Satisfacti on Importan ce Satisfacti on Importan ce Satisfacti on Importan ce Satisfacti on Importan ce Satisfacti 1 2 3 4 5 6 7 8 9 1 0

Understanding of your requirements

Response to your requirements

Providing product stock information

Behavior of sales person

Follow up/ continuous interaction Communication during completive execution of

79

This customer satisfaction survey is based on rating scale system, it is a very popular methodology for analyzing the perception of customers about the product, about the brand name, about their service, are they satisfied their service or not. In this scale we use their rating system. In this scale there have been given some attributes as Purchase department related attributes, Delivery related attributes, Order processing related attributes, Packaging related attributes, Over all perception about supplier related attributes, Technical support related attributes.

These attributes have some related sub-attributes. In front of these attributes marking has been given till 1 to 10. If the customers are satisfied the given points (attributes) he will mark till 7 to 10. If someone gives 10 marks it will show highly satisfaction. If the customers are dissatisfied in the given points he can mark till 1 to 3. And if someone gives 1 mark it will show his truly dissatisfaction.

80

For example

81

JK White Cement Ltd.


Customer Satisfaction Survey
Customer Name: Mohini Enterprises Date 12/06/08

Customer Representative Signature

Surveyed By

Rating to be done from 1 to 10 scale Satisfaction level based on 1 to 10 scale: from 1for totally dissatisfied to 10-for truly satisfied Level 4 -for quite dissatisfied, 7 for quite satisfied. 1 2 3 4 5 6 7 8 9 10 The Importance level is based on 1~10 scale, from 1 for not important at all & 10-for extremely important. Level 4 -for somewhat unimportant to level 7 for somewhat important. Description Purchase Department Related Issues Presale related attributes Accessibility of Marketing personnel Level Satisfactio n Importance Satisfactio n Importance Satisfactio n Importance Satisfactio n Importance Satisfactio n Importance Satisfactio n Importance Satisfactio n Importance Level Satisfactio n Importance Scale 82 1 2 3 4 5 6 7 8 Scale 1 2 3 4 5 6 7 8 9 10

Understanding of your requirements

Response to your requirements

Providing product stock information

Behavior of sales person

Follow up/ continuous interaction

Communication during completive execution of sales Delivery Related attributes Delivery as per order ( Qty)

9 10

CONCLUSION

If we go through the SWOT analysis of JK White Cement product as a whole then I found that company have a very good standing at market place and JK White Cement have a very good corporate image among present companies and they should cash their image by effective use of marketing mix.

83

The advertisement campaign of JK White Cement is not too good then others. There is no field level activities is to be performed for increasing sales.

From the survey, I found that lot of people aware of JK Wall putty . They ask only Birla wall putty to the retailer.

In my research , I found that if J.K White Cement wants to stand in top position then they have to maintain themselves in some areas: 1. Advertising 2. Dealer board 3. Availability ( distribution network) 4. Ad material 5. Daily visit of retailer shop by sales and marketing team.

In my research, I found that JK White Cement have more market share in white share in white cement as compare to Birla White Cement.

However JK White Cement have good image in market. But still company is not able to cash all opportunity, which are existing in the market.

84

RECOMMENDATIONS

85

In my survey, I found that JK White Cement had already a well position in the market now white cement means JK White Cement. The proof was that when I asked retailer which brand is more sell, and then he told me only one name. So the sage is shown is my data analysis. By following recommendation company can increases their market share:

Company must emphasize on advertising and creating customer awareness. They should launch some other advertising campaign and also increase the frequency of old advertisement. The company must arrange very well structured and strong Distribution Network, while have a major role in any brand success of any brand. Company must provide dealer board display board and pop to the retailers by which awareness of consumer increases. They also have to give proper scheme & Stationary materials to the retailers. In my research, the biggest road block which I found is the visit of a sales person to the retailers shop. Every retailers told me that no company person comes to their shop for any kind of communication. Some retailers

86

not seen any companys person from last six month. So company give more consideration on this topic, just because of this point company lose their market share from their competitors. To become the market leader the company should increase the customers in the market. The company should have proper stock so that the demand of the customers can be easily full filled. The frequency of the advertisement must be increased throughout the year, The company should make regularly calls to its customer, so that they cannot think for others. The company should immediately respond to its customers. There must be fast action for complaints. The company should target project sell also. The company should maintain the approach to contact the project customers. A descriptive study with primary survey (questionnaire based) should be conducted to obtain quantitative results.

87

Productivity should be improved regularly. Regular feedback should be taken for complaints. Company should also concentrate on delivery of goods within given time of period.

Sales person of company must be do regular visit on customer. Make aware the consumers for your brand, for your product. Make them believe that your products quality is the best option for them. Target new customers. Try to use media for advertise the product. After selling the product your responsibility is not finish, but it is starts now. Always try to innovate the product. Make good relations with all your customers. Increase customers loyalty.

Ways to increase customers loyalty Prompt action. Honesty. The customer is always loyal.

88

More than just the money. Mutual trust. Giving the benefit of the doubt. Walking the extra mile.

89

ANEXTURE
1. How did you come to know of JK WHITE Cement? (a) Advertisements (b) Friends and relatives 2. Have you got the finish you expected? (a) Yes (b) No 3. Do you aware of the services offered by the JK WHITE Cement? (a) Yes (b) No 4. Have you used any of the services offered by the JK WHITE Cement? (a) Yes (b) No 5. What is your opinion about the services offered by the JK WHITE Cement? (a) Very good (b) Good 6. (c) satisfactory (d) poor

How was your experience of the product you used? (a) Very dissatisfied (b) Dissatisfied (c) Neither satisfied nor dissatisfied (d) very satisfied

Are you satisfied with the quality of the JK WHITE? (a) Very dissatisfied (b) Dissatisfied (c) Neither satisfied nor dissatisfied (d) very satisfied

90

8.

What is your opinion about the durability of the JK WHITE? (a) Very dissatisfied (b) Dissatisfied (c) Neither satisfied nor dissatisfied (d) very satisfied

9.

Are you using JK WHITE first time? (a) Yes (b) No

10.

Did you ask for the JK WHITE when you go the dealer? (a) Yes (b) No if no , How did you decide to purchase the JK WHITE? (a) Dealers Advice (b) Friends and relatives Advice (c) Advertisements

11.

Are you satisfied with the advertisement campaign of JK WHITE? (a) Very dissatisfied (b) Dissatisfied (c) Neither satisfied nor dissatisfied (d) very satisfied

12.

Have you suggested to others to use JK WHITE? (a) Yes (b) No

91

BIBLOGRAPHY
REFERENCES:
1.

Kotler Philip,2003-Marketing Management 11th edition, Prentice Hall publication. http://www.marketingteacher.com/Lessons/lesson marketing research primary.htm. http://www.marketingteacher.com/Lessons/lesson marketing research secondary .htm.

2.

3.

92

93

You might also like