balaji s project to pra
TRANSCRIPT
A STUDY ON THE EFFECTIVENESS OF CHANNEL DISTRIBUTION
SYSTEM OF CHETTINAD CEMENT CORPORATION LTD”
PROJECT REPORT
Submitted to
UNIVERSITY OF MADRAS
In partial fulfillment of the
Requirements for the award of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
BALAJI.V
(REG NO MA00605)
Under the guidance of
MR.D.SUGUMAR, M.COM, M.PHIL, M.B.A, PGDPMIR,,
DEPARTMENT OF MANAGEMENT STUDIES
VEL SRI RANGA SANKU COLLEGE (ARTS & SCIENCE)
Approved by AICTE, New Delhi & Affiliated to
University of Madras
Avadi, Chennai-600062
April 2011-June2011
CERTIFICATE
This is to certify that the project work title” A STUDY ON THE EFFECTIVENESS OF
CHANNEL DISTRIBUTION SYSTEM OF CHETTINAD CEMENT CORPORATION
LTD” submitted to Department of Management Studies, University of Madras, in
partial fulfillment of the requirement for the award of degree of Master of Business
Administration is a record of bonafide work done by MR.BALAJI.V (Reg No:
MA00605) Vel Sri Ranga Sanku College, during the Academic Year 2010-2012.
Internal Guide Head of the Department
External Examiner Principal
Vel Sri Ranga Sanku College (Arts & Science)
No.42&60, Vel tech road, Avadi
Chennnai-600062
Phone- 044-29036931
BONAFIDE CERTIFICATE
This is certify that MR.V.BALAJI, Reg no.MA00605, a student of first
year MBA has prepared a project report titled “A STUDY ON THE
EFFECTIVENESS OF CHANNEL DISTRIBUTION SYSTEM OF CHETTINAD
CEMENT CORPORATION LTD” as a partial fulfillment of MBA degree for
the academic year 2010-2012.
External examiner HOD signature
ACKNOWLEDGEMENT
I convey my heartful gratitude to our chairman Dr.R.Rangarajan, B.E (Elect)., B.E
(Mech)., M.S (Auto)., Ph.D., for giving me an opportunity to conduct the study.
I would like to thank our college principal Dr. A.Sreenivasalu, B.com, M.com,
M.Phil, Ph.D, for his encouragement and inspiration.
I convey my deep sense of gratitude to Our HOD MR.D.SUGUMAR, M.COM,
M.PHIL, M.B.A, PGDPMIR, Head of the department of Management Studies for
his motivation and providing me moral support during the course of this work.
I am grateful to my Guide MR.D.SUGUMAR, M.COM, M.PHIL, M.B.A,
PGDPMIR,for his valuable advice and supported me to complete this project in a
successful manner
I have great pleasure in thanking Mr.SRIDHAR, Assistant Manager of
CHETTINAD CEMENT LTD who spared his valuable time in guiding me to undergo
this project.
I thank all other faculty member of the department for their constant co-operation
and encouragement in pursuing my project work.
DECLARATION
I, BALAJI.V (Reg.No.MA00605), II MBA of VEL TECH
VEL SRI RANGA SANKU COLLEGE(ARTS AND SCIENCE)
hereby declare that the project entitled “A STUDY ON THE
EFFECTIVENESS OF CHANNEL DISTRIBUTION SYSTEM OF
CHETTINAD CEMENTS CORPORATION LTD”, in partial
Fulfillment of Madras University for the award of the degree in
Master of Business Administration is my original work and that it
has not formed the basis for the award of any degree, associate ship,
diploma or any other similar title.
(BALAJI.V
ABSTRACT
The topic taken for the study is “A STUDY ON THE EFFECTIVENESS OF
CHANNEL DISTRIBUTION SYSTEM OF CHETTINAD CEMENT
CORPORATION LTD”. The main aim of the study is to find out whether their
distribution system is effective. The study helps to know about the credit facilities
provided to the industrial customers.
The study was conducted by the sample size of 75 customers. Questionnaire
was circulated to the companies, their feedback was received, and analysis was
made effectively.
The research undertaken is a descriptive type and statistical tools used for
the study are percentage analysis and chi-square analysis. The 90% of the
customers says that their distribution system is effective. The customers are also
satisfied with the credit facilities provided to them.
TABLE OF CONTENTS
Chapter Index Page No.
1
Introduction
INTRODUCTION 1
OBJECTIVE OF THE STUDY 5
NEED OF THE STUDY 6
SCOPE OF THE STUDY 7
RESEARCH METHODOLOGY 8
LIMITATIONS OF THE STUDY 11
2 REVIEW OF LITERATURE 12
3 COMPANY PROFILE 15
4
Data Analysis and Interpretation
PERCENTAGE ANALYSIS 20
CHI – SQUARE TEST 52
5
Summary And Conclusion
SUMMARY OF FINDINGS 55
SUGGESTIONS 58
CONCLUSION 59
Annexure
QUESTIONNAIRE 60
Reference 62
LIST OF TABLES
Table
No. Title
Page
No.
4.1.1
THE RESPONDENT GETS THE CREDIT FACILITY FROM
CHETTINAD CEMENTS 20
4.1.2 CREDIT PERIOD GIVEN BY THE CHETTINAD CEMENTS 22
4.1.3
THE SATISFACTION LEVEL OF PRESENT CREDIT
FACILITY 24
4.1.4
THE COMFORTABLE CREDIT PERIOD REQUIRED BY
THE RESPONDENT 26
4.1.5
THE SATISFACTION LEVEL OF CURRENT
DISTRIBUTION SYSTEM 28
4.1.6
REASONS FOR NOT SATISFIED WITH THE
DISTRIBUTION SYSTEM 30
4.1.7
THE OTHER COMPETITIVE PRODUCTS AVAILABLE IN
THE MARKET 32
4.1.8 WHICH BRAND ENJOYS HIGHER MARKET SHARE 34
4.1.9 FACTORS TO GAIN GOOD MARKET SHARE 36
4.1.10 DISCOUNTS PROVIDED TO RESPONDENT 38
4.1.11
PERCENTAGE OF DISCOUNT RECEIVED BY THE
RESPONDENT 40
4.1.12 SATISFACTION LEVEL OF DISCOUNT PROVIDED 42
4.1.13 MODE OF PAYMENT GIVEN TO THE COMPANY 44
4.1.14 FREQUENCY OF SUPPLY 46
4.1.15 DELAY BETWEEN ORDER AND SUPPLY 48
4.1.16
TIME DURATION BETWEEN DELAYS OF ORDER &
SUPPLY 50
LIST OF CHARTS
Table
No. Title
Page
No.
4.1.1
THE RESPONDENT GETS THE CREDIT FACILITY FROM
CHETTINAD CEMENTS 21
4.1.2 CREDIT PERIOD GIVEN BY THE CHETTINAD CEMENTS 23
4.1.3
THE SATISFACTION LEVEL OF PRESENT CREDIT
FACILITY 25
4.1.4
THE COMFORTABLE CREDIT PERIOD REQUIRED BY
THE RESPONDENT 27
4.1.5
THE SATISFACTION LEVEL OF CURRENT
DISTRIBUTION SYSTEM 29
4.1.6
REASONS FOR NOT SATISFIED WITH THE
DISTRIBUTION SYSTEM 31
4.1.7
THE OTHER COMPETITIVE PRODUCTS AVAILABLE IN
THE MARKET 33
4.1.8 WHICH BRAND ENJOYS HIGHER MARKET SHARE 35
4.1.9 FACTORS TO GAIN GOOD MARKET SHARE 37
4.1.10 DISCOUNTS PROVIDED TO RESPONDENT 39
4.1.11
PERCENTAGE OF DISCOUNT RECEIVED BY THE
RESPONDENT 41
4.1.12 SATISFACTION LEVEL OF DISCOUNT PROVIDED 43
4.1.13 MODE OF PAYMENT GIVEN TO THE COMPANY 45
4.1.14 FREQUENCY OF SUPPLY 47
4.1.15 DELAY BETWEEN ORDER AND SUPPLY 49
4.1.16
TIME DURATION BETWEEN DELAYS OF ORDER &
SUPPLY 51
CHAPTERISATION
CHAPTER – 1
Chapter -1 deals with introduction, need of the study, scope of the study, objectives, limitation
and research methodology,
CHAPTER – 2
Chapter - 2 deals with review of literature .
CHAPTER – 3
Chapter – 3 deals with company profile.
CHAPER-4
Chapter-4 deals with data analysis and interpretation
CHAPER-5
Chapter-5 is summary of findings, suggestions, conclusion, annexure(questionnaire) and
bibliography that includes list of references.
C H E P T E R - 1
I N T R O D U C T I O N
Distribution (or "Place") is the fourth traditional element of the
marketing mix. The other three are Product, Price and Promotion.
The Nature of Distribution Channels
Most businesses use third parties or intermediaries to bring
their products to market. They try to forge a "distribution
channel" which can be defined as"all the organisations
through which a product must pass between its point of
production and consumption"
Why does a business give the job of selling its products to
intermediaries? After all, using intermediaries’ means giving up
some control over how products are sold and who they are sold
to.
The answer lies in efficiency of distribution costs. Intermediaries
are specialists in selling. They have the contacts, experience and
scale of operation which means that greater sales can be
achieved than if the producing business tried run a sales
operation itself.
Functions of a Distribution Channel
The main function of a distribution channel is to provide a link
between production and consumption. Organisations that form
any particular distribution channel perform many key functions:
Information Gathering and distributing market research and
intelligence - important for marketing planning
Promotion Developing and spreading communications about
offers
Contact Finding and communicating with prospective
buyers
Matching Adjusting the offer to fit a buyer's needs,
including grading, assembling and packaging
Negotiation Reaching agreement on price and other terms of
the offer
Physical
distribution
Transporting and storing goods
Financing Acquiring and using funds to cover the costs of
the distribution channel
Risk taking Assuming some commercial risks by operating
the
channel (e.g. holding stock)
All of the above functions need to be undertaken in any market.
The question is - who performs them and how many levels there
need to be in the distribution channel in order to make it cost
effective.
Numbers of Distribution Channel Levels
Each layer of marketing intermediaries that performs some work
in bringing the product to its final buyer is a "channel level". The
figure below shows some examples of channel levels for
consumer marketing channels:
In the figure above, Channel 1 is called a "direct-marketing"
channel, since it has no intermediary levels. In this case the
manufacturer sells directly to customers. An example of a direct
marketing channel would be a factory outlet store. Many holiday
companies also market direct to consumers, bypassing a
traditional retail intermediary - the travel agent.
The remaining channels are "indirect-marketing channels".
Channel 2 contains one intermediary. In consumer markets, this is
typically a retailer. The consumer electrical goods market in the
UK is typical of this arrangement whereby producers such as
Sony, Panasonic, Canon etc. sell their goods directly to large
retailers such as Comet, Dixons and Currys which then sell the
goods to the final consumers.
Channel 3 contains two intermediary levels - a wholesaler and a
retailer. A wholesaler typically buys and stores large quantities of
several producers goods and then breaks into the bulk deliveries
to supply retailers with smaller quantities. For small retailers with
limited order quantities, the use of wholesalers makes economic
sense. This arrangement tends to work best where the retail
channel is fragmented - i.e. not dominated by a small number of
large, powerful retailers who have an incentive to cut out the
wholesaler. A good example of this channel arrangement in the
UK is the distribution of drugs.
OBJECTIVES OF THE STUDY
Primary Objective:
To study the effectiveness of distribution of cement products with special
reference of the Franky Hub in Chennai
Secondary Objectives:
To study the credit facilities provided to the industrial customers by Franky
Hub
Brand preferences of existing industrial customers of Franky Hub
To study on discounts provided to the industrial customers by Franky Hub
To study about the delay in order and supply of product by Franky Hub
NEED OF THE STUDY
It is to study how effective the Franky Hub products move efficient to the
various customers.
To know the credit facilities available to the customers and its effect on
distribution.
To know the satisfaction level of the customers.
SCOPE OF THE STUDY
The main scope of this study is to ascertain the effectiveness of channel of
distribution and various methods to increase the sales volume of the concern.
The methods include regular information to the buyers creating a brand
position in the market and taking measures to make the brand remain in its
position.
One of the important aspects of this study is also to increase the market
segment for the product.
RESEARCH METHODOLOGY
Methodology is one of the main aspects of any research. Extreme care must
be taken in every step of research for the project to provide reliable data. The
following methodology has been adopted in conducting the RESEARCH
DESIGN.
RESEARCH DESIGN:
A Research design specifies the methods and procedures of conducting a
particular study. It is the map or blue print according to which the research is to
be conducted.
The study is descriptive in nature. The study is designed to describe the
attitude, option, perception & preferences of the correspondents towards
distribution network.
NATURE OF DATA:
Required data gathered from primary and secondary sources.
SOURCES OF DATA:
PRIMARY DATA:
The data from primary sources has been collected by conducting survey with
the help of structured undisguised questionnaire
The primary data was collected from respondents.
Interview techniques have been simultaneously used to make the study about
and relevant.
SECONDARY DATA:
It has been collected from company publication which include pamphlets
and annual reports, other require information has been collected from text books,
journals and other collected magazines.
DESIGN OF QUESTIONNAIRE:
Before the questionnaire was prepared required information were listed in
details. The questionnaire used in primary data collection was structured non
disguised questionnaire consists of:
Open ended questions.
Close ended questions.
Multiple choice questions.
Rankings.
Dichotomous questions.
ANALYTICAL TOOLS:
Analytical techniques are used to obtain findings and arrange information in
a logical sequence from the raw data collected
After tabulation of data researcher used following qualitative techniques.
Percentage analysis
Chi square test
Graphs
Weighted arithmetic mean
SAMPLING:
For selecting the respondents in Chennai city was used.
The respondents were chosen by cluster sampling.
SAMPLE SIZE:
The sample size have chosen from different universe.
A sample size(N) is 75 respondents have been taken from Chennai city.
N = 75
LIMITATIONS OF THE STUDY
The study was limited to Chennai city and all inference made of for the city
only and cannot be generalized to other cities
The answers given by the retailers cannot be taken as face value for their
could be bias.
The study conducted considering the prevailing condition which is subject to
change in future.
CHAPTER 2
REVIEW OF LITERATURE
Channel Management is the Process by which a producer or supplier directs
marketing activity by involving and motivating the entities comprising its channel
of distribution.Channel management program that includes:
1. Goals. Define the specific goals you have for each channel segment.
Consider your goals for the channel as a whole as well as individual
accounts. And, remember to consider your goals for both acquisition and
retention.
2. Policies. Construct well-defined polices for administering the accounts
within this channel. Be sure to keep the unique characteristics of each
segment in mind when defining policies for account set up, order
management, product fulfillment, etc.
3. Products. Identify which products in your offering are most suited for each
segment and create appropriate messaging. Also, determine where your up
sell opportunities lie.
4. Sales/Marketing Programs. Design support programs for your channel that
meet THEIR needs, not what your idea of their needs are. To do this, you
should start by asking your customers within this segment, “how can we best
support you in the selling and marketing of our products?” That being said,
the standard considerations are product training, co-op advertising, seasonal
promotions, and merchandising. Again, this is not a one-size fits all, so be
diligent about addressing this segment’s SPECIFIC needs in these areas.
Bowers ox
A distribution channel is, ultimately, an economic entity that is orchestrated
by its participants to achieve their desired profitability and return on
investment.
He suggests that measuring the distribution effectiveness shows results on
the profit and ROI.
Russell W. McCalley
Branches in the Channel Recall that the marketing channel runs parallel to
the physical distribution channel.
The physical distribution channel may involve separate branches feeding
into or bypassing the main channel of distribution
Abrahamson
He describes the evolution of logistics (or the evolution of supply chain
management if you wish) as having gone through four phases:
optimization of flows and specialization of tasks,
economies of scale with centralization of tasks,
economies of scope with flexibility in tasks, and
economies of integration with tasks interfacing directly with the end
customer.
This, he says, has readied the ground for an agile and “opportunity-driven” supply-
chain.
Omera Khan
The literature on purchasing and risk, and supply chain management and
risk, fails to draw on or locate itself within the wider theory of risk and the practice
of risk management.
Though the general literature on risk offers a wide range of tools and
techniques for managing risk, these do not appear to have been adapted for use in
managing supply chain risk. Rather, what appears to be on offer is a range of
general prescriptions on how to reduce risk.
CHAPTER 3
COMPANY PROFILE
Chettinad cements Cement Corporation Limited is an India-based
company. The Company is engaged in the manufacture and sale of
cement. Its manufacturing unit is located at Puliyur, Karur. The Company’s
cement products include Pavithram, Chettinad cements Royal Grade 53,
Chettinad cements Grade 43, Chettinad cements PPC and Sulphur
Resistant Cement.
Dr. Rajah Sir Muthiah Chettiar's urge to contribute to the nation building cause
combined with his business acumen culminated in establishing the company "M/s.
Chettinad cements Cement Corporation Limited" in 1962 to cater to growing
demands of Cement in the country. The manufacturing unit located at Puliyur,
Karur an Industrially backward area in Tamil Nadu commenced production in
April 1968. Further Green filed plant at Karikkali, Dindigul District was
commissioned in October 2001.
VISION:
Acquire new markets with product development and customer satisfaction.
PRODUCTS MANUFACTURED
PRODUCTS
Pavithram - An unique cement manufactured at Puliyur works having very high
quality for special concrete applications
Chettinad cements Royal Grade 53- Superior finely ground cement, suitable for
plastering works, giving a silky finished look. For RCC applications Laser
controlled manufacturing would yield best results.
Chettinad cements Grade 43- Multipurpose cement, suitable for plastering and
binding.
Chettinad cements PPC- A finely blended cement, providing very fine result for
plastering work, devoid of hair line cracks and giving excellent appearance to the
building.
Sulphur Resistant Cement- Finds applications in the construction activity in the
coastal areas to save from corrosiveness due to salty environment.
MANAGEMENT
Date of Establishment 1962
Revenue 339.656 ( USD in Millions )
Market Cap 16112.3373564 ( Rs. in Millions )
Corporate Address Rani Seethai Hall Building,No 603,,Annasalai.Chennai-600006, TamilNadu
www.chettinadcement.com
Management Details
Chairperson - M A M Ramaswamy
MD - M A M R Muthiah
Directors - K Ganapathy, K Ganapathy, M A M R Muthiah, M A M R Muthiah, M A M
Ramaswamy, R Krishnamoorthy, Ramanathan Palaniappan, S Hariharan, S Hariharan, S P S T
Palaniappan, Sheela Rani Chunkath, Sp St Palaniappan
Business Operation Cement & Construction Materials
Background
Chettinad Cement Corporation incorporated in 1962, is engaged in the business of manufacturing
cement. The company was promoted by Dr. Rajah Muthiah Chettiar. In 1968 company started
commercial production of its manufacturing unit located in Puliyur, in Tamil Nadu. Later in
October 2001, CCCL set up greenfield plant at Karikkali.
Financials Total Income - Rs. 13734.9 Million ( year ending Mar 2010)
Net Profit - Rs. 966.3 Million ( year ending Mar 2010)
Company Secretary S Hariharan
Bankers Auditors PB Vijayaraghavan & Co, Krishaan & Co, Seshadri & Jayaraman
COMPANY HISTORY
Chettinad Cement Corporation incorporated in 1962, is engaged in the business of manufacturing
cement. The company was promoted by Dr. Rajah Muthiah Chettiar. In 1968 company started
commercial production of its manufacturing unit located in Puliyur, in Tamil Nadu. Later in
October 2001, CCCL set up greenfield plant at Karikkali.
Company started production of cement with installed capacity of 2 Lac tonnes capacity per
annum. Now the production capacity has increased to 2.2 Million tonnes per annum. Company’s
plants are well equipped with modern dry process technology. Company operates modern
Computer controlled LOESCHE lignite mill and five stage pre-heater kiln and electronic packing
plant. It is also equipped with centralised control room for process control and elaborates display
screen give up-to-the minute information on the production process so that any deviation can be
promptly corrected.
The Company has received ISO 9001:2000 and ISO 14001:2004 certification for its quality
management.The Company commissioned a 15 MW Captive Thermal Power Plant at its unit at
Karikkali in October 2004 and at Puliyur in March 2008 to cater to the entire power requirements
of the facilities thus reducing the power cost.
Company is part of Chettinad Group which has business interest in areas of granite, engineering,
silica, garnet, information technology, education, medical, plantations, shipping, transportation,
stevedoring, clearing and forwarding and logistics having a combined turnover of about Rs.
10,000 million.
Products
Company manufactures a range of cement such as Grade 53, Grade 43, Sulphur Resistant
Cement, Ready Mix Concrete and Portland Slag Cement. CCCL markets these products under
the brand name Pavithram, Chettinad Royal Grade 53, Chettinad Grade 43 and Chettinad PPC.
Awards
Chettinad Cement Corporation was given TNEB Energy Conservation Award - (One
among the 15 Energy Efficient H.T. Industries of 2000 KVA) in 1998-99.
The company received NCBM National Awards (Improvement in Energy Performance)
in 1998-99.
CCCL was awarded ‘Conservationist of the year’ (for outstanding progress in the field of
Conservation of Energy, Metal Components & Machinery) 1987.
Recent Development
Chettinad Cement Corporation is setting up two greenfield cement manufacturing units with an
installed capacity of 2 Million Tonnes each at Ariyalur, Tamilnadu. This unit will also be
equipped with 2X15 MW captive thermal power plants. This unit will commence its operation in
near future.
COMPETITORS
Ultratech Cement, Ambuja Cement, Grasim Industries, Samruddhi Cement, Birla Corp, India
Cements and Madras Cement etc……
CHAPTER 4
4.1 DATA ANALYSIS AND INTERPRETATION
Table No: 4.1.1 THE RESPONDENT GETS THE CREDIT FACILITY
FROM CHETTINAD CEMENTS
S.
No
Credit
facilit
y
No. of
respondent
s
Percentage of
Respondents
1 Yes 75 100%
2 No 0 0%
Total 75 100%
THE RESPONDENT GETS THE CREDIT FACILITY FROM CHETTINAD
CEMENTS
0%20%40%
60%80%
100%
PERCENTAGE
Yes No
CREDIT FACILITY
THE RESPONDENT GETS THE CREDIT FACILITY FROM CHETTINAD CEMENTS CEMENTS
Inference:
From the above table 100% of respondents have credit facility given by the
Chettinad cements and 0% of respondents have no credit facility.
Table No: 4.1.2 CREDIT PERIOD GIVEN BY THE CHETTINAD
CEMENTS
S.
No
Credit
facility
No. of
respondents
Percentage of
Respondents
1
One
week 35 47%
2 15 days 25 33%
3 Monthly 10 13%
4 Quarterly 5 7%
Total 75 100%
Inference:
From the above table indicates the period of credit received by 75 respondents 47%
get one week, 33% get in 15 days and 13% received monthly and 7% gets in
quarterly.
CREDIT PERIOD GIVEN BY THE CHETTINAD CEMENTS CEMENTS
47%
33%
13%7%
One week
15 days
Monthly
Quarterly
Chart No: 4.1.2 CREDIT PERIOD GIVEN BY THE CHETTINAD
CEMENTS
Table No: 4.1.3 THE SATISFACTION LEVEL OF PRESENT CREDIT
FACILITY
S.
No
Satisfaction
level of
credit
No. of
respondent
s
Percentage of
Respondents
1
Highly
Satisfied 27 36%
2 Satisfied 16 21%
3 Dissatisfied 20 27%
4
Highly
Dissatisfied 12 16%
Total 75 100%
Inference:
From the table 36% of respondents are highly satisfied, 21% are satisfied,
27% are dissatisfied and 16% are highly dissatisfied with the current credit facility.
Chart No: 4.1.3 THE SATISFACTION LEVEL OF PRESENT CREDIT
FACILITY
THE SATISFACTION LEVEL OF PRESENT CREDIT FACILITY
36%
21%
27%
16%
Highly Satisfied
Satisfied
Dissatisfied
Highly Dissatisfied
Table No: 4.1.4 THE COMFORTABLE CREDIT PERIOD REQUIRED BY
THE RESPONDENT
S.
No
Comfortable
credit period
No. of
respondent
s
Percentage of
Respondents
1 15 days 12 36%
2 Month 21 64%
3
More than a
month 0 0%
Total 33 100%
Inference:
From the above table 64% respondents comfortable with one month credit
period, 36% of respondents responded 15 days and no one opted for more than one
month.
Chart No: 4.1.4 THE COMFORTABLE CREDIT PERIOD REQUIRED BY
THE RESPONDENT
36%
64%
0%0%
10%20%30%40%50%60%70%
PERCENTAGE
15 days Month More than amonth
COMFORTABLE CREDIT PERIOD
THE COMFORTABLE CREDIT PERIOD REQUIRED BY THE RESPONDENT
Table No: 4.1.5 THE SATISFACTION LEVEL OF CURRENT
DISTRIBUTION SYSTEM
S. No
Satisfaction level of the
Current Distribution System
No. of
respondent
s
Percentage
of
Respondent
s
1 Highly Satisfied 37 49%
2 Satisfied 10 13%
3 Dissatisfied 18 24%
4 Highly dissatisfied 10 13%
Total 75 100%
Inference:
From the above table 49% of respondents are highly satisfied and 13% are
satisfied, 24% are dissatisfied, 13% are highly dissatisfied with the current
distribution system.
Chart No: 4.1.5 THE SATISFACTION LEVEL OF CURRENT
DISTRIBUTION SYSTEM
THE SATISFACTION LEVEL OF CURRENT DISTRIBUTION SYSTEM
49%
13%
24%
13%
Highly Satisfied
Satisfied
Dissatisfied
Highly dissatisfied
Table No: 4.1.6 REASONS FOR NOT SATISFIED WITH THE
DISTRIBUTION SYSTEM
S.
No Reasons
No. of
respondent
s
Percentage of
Respondents
1
Delayed
supply 12 44%
2 No response 15 56%
Total 27 100%
Inference:
From the above table, 44% of respondents replied that there is a delayed
supply in the distribution of the products and 56% replied that there is no proper
response from the company.
Chart No: 4.1.6 REASONS FOR NOT SATISFIED WITH THE
DISTRIBUTION SYSTEM
0%10%20%30%40%50%60%
PERCENTAGE
Delayed supply No response
SATISFACTION LEVEL OF RESPONDENTS
REASONS FOR NOT SATISFIED WITH THE DISTRIBUTION SYSTEM
Table No: 4.1.7 THE OTHER COMPETITIVE PRODUCTS AVAILABLE
IN THE MARKET
S.
No
Other
products
available
No. of
respondent
s
Percentage of
Respondents
1 Cement 37 49%
2 Clinker 13 17%
3
Ready Mix
Concrete 20 27%
4 Others 5 7%
Total 75 100%
Inference:
From the above table 49% of respondents replied that the other competitive
products available for Chettinad cements are Cement, 17% replied its Rea molders,
27% replied its Miscellaneous Sales and 7% replied others.
49%
17%
27%
7%
0% 10% 20% 30% 40% 50%
PERCENTAGE
Cement
Clinker
Ready Mix Concrete
Others
CO
MP
ET
ITI
VE
C
OM
PA
NY
THE OTHER COMPETITIVE PRODUCTS AVAILABLE IN THE MARKET
Chart No: 4.1.7 THE OTHER COMPETITIVE PRODUCTS AVAILABLE
IN THE MARKET
Table No: 4.1.8 WHICH BRAND ENJOYS HIGHER MARKET SHARE
S.
No
Higher
Market Share
No. of
respondent
s
Percentage of
Respondents
1 Cement 15 20%
2
Ready Mix
Concrete 49 65%
3 Clinker 5 7%
4
Miscellaneous
Sales 4 5%
5 Others 2 3%
Total 75 100%
Inference:
From the above table 20% of respondents replied that the brand that have
higher market share are premier industrial cement, 65% replied its Ready mix
concrete, 7% replied its clinker, 5% replied its Miscellaneous and 3% replied
others.
Chart No: 4.1.8 BRAND WHICH ENJOYS HIGHER MARKET SHARE
BRAND WHICH ENJOYS HIGHER MARKET SHARE
20%
65%
7%5%3%
Cement
Ready Mix Concrete
Clinker
Miscellaneous Sales
Others
Table No: 4.1.9 FACTORS TO GAIN GOOD MARKET SHARE
S. No
Factors to gain good
Market Share
No. of
respondents
Percentage of
Respondents
1 Price 55 73%
2 Quality 20 27%
Total 75 100%
Inference:
From the above table 73% of the respondents replied that the factor to gain
good market share is price and 27% replied its quality
Chart No: 4.1.9 FACTORS TO GAIN GOOD MARKET SHARE
Price, 73%
Quality, 27%
Price
Quality
Table No: 4.1.10 DISCOUNTS PROVIDED TO RESPONDENT
S.
No Discounts provided
No. of
respondents
Percentage of
Respondents
1 Yes 75 100%
2 No 0 0%
Total 75 100%
Inference:
From the above table 100% of the respondents receives discount from
Chettinad cements.
Chart No : 4.1.10 DISCOUNTS PROVIDED TO RESPONDENT
0%
20%
40%
60%
80%
100%
NO OF RESPONDENT
S
Yes No
DISCOUNTS PROVIDED
DISCOUNTS PROVIDED TO RESPONDENT
Table No : 4.1.11 PERCENTAGE OF DISCOUNT RECEIVED BY THE
RESPONDENT
S. Discounts Received No. of Percentage of
No respondents Respondents
1 1% 0 0%
2 2 to 4% 55 73%
3 4 to 6% 20 27%
Total 75 100%
Inference:
From the above table 73% of the respondents receives discounts of 2 to 4%
and 27% receives discounts of 4 to 6%.
Chart No: 4.1.11 PERCENTAGE OF DISCOUNT RECEIVED BY THE
RESPONDENT
PERCENTAGE OF DISCOUNT RECEIVED BY THE RESPONDENT
0%10%20%30%40%50%60%70%80%
1% 2 to 4% 4 to 6%
DISCOUNT RECEIVED
PE
RC
EN
TA
GE
Table No: 4.1.12 SATISFACTION LEVEL OF DISCOUNT PROVIDED
S.
No Satisfaction Level
No. of
respondents
Percentage of
Respondents
1 Yes 49 65%
2 No 26 35%
Total 75 100%
Inference:
From the above table 65% of the respondents are satisfied with the discount
provided by Chettinad cements and 35% are not satisfied.
Chart No: 4.1.12 SATISFACTION LEVEL OF DISCOUNT PROVIDED
SATISFACTION LEVEL OF DISCOUNT PROVIDED
65%
35%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
SATISFACTION LEVEL
PE
RC
EN
TA
GE
Table No: 4.1.13 MODE OF PAYMENT GIVEN TO THE COMPANY
S. No
Mode of
payment
No. of
respondent
s
Percentage of
Respondents
1 Cash 20 27%
2 Cheque 40 53%
3 Both 15 20%
Total 75 100%
Inference:
From the above table, 27% of the respondents pay by cash, 53% through
cheque and 20% pays through both cash and cheque
Chart No: 4.1.13 MODE OF PAYMENT GIVEN TO THE COMPANY
27%
53%
20%
0% 10% 20% 30% 40% 50% 60%
PERCENTAGE
Cash
Cheque
Both
MO
DE
OF
PA
YM
EN
T
MODE OF PAYMENT GIVEN TO THE COMPANY
Table No:4.1.14 FREQUENCY OF SUPPLY
S. No Frequency of Supply
No. of
respondent
s
Percentage
of
Respondent
s
1 Daily 75 100%
2 Weekly 0 0%
3 15 days 0 0%
4 Monthly 0 0%
Total 75 100%
Inference:
From the above table 100% of all the 75 respondents are supplied daily
Chart No: 4.1.14 FREQUENCY OF SUPPLY
FREQUENCY OF SUPPLY
100%
0%
0%
0%
0% 20% 40% 60% 80% 100% 120%
Daily
Weekly
15 days
Monthly
FR
EQ
UE
NC
Y O
F S
UP
PL
Y
PERCENTAGE
Table No: 4.1.15 DELAY BETWEEN ORDER AND SUPPLY
S.
No
Delay between Order
& Supply
No. of
respondents
Percentage of
Respondents
1 Yes 21 28%
2 No 54 72%
Total 75 100%
Inference:
From the above table 28% of the respondents replied that there is a delay
between the order and the supply and 72% are satisfied with it.
Chart No: 4.1.15 DELAY BETWEEN ORDER AND SUPPLY
28%
72%
0%10%20%30%40%50%60%70%80%
PERCENTAGE
Yes No
DELAY BETWEEN ORDER AND SUPPLY
DELAY BETWEEN ORDER AND SUPPLY
Table No: 4.1.16 TIME DURATION BETWEEN DELAYS OF ORDER &
SUPPLY
S. No Time duration of delay
No. of
respondent
s
Percentage
of
Respondent
s
1 6 Hours 12 55%
2 12 Hours 10 45%
3 One day 0 0%
4 More than a day 0 0%
Total 22 100%
Inference:
From the above table, 55% of the non satisfied respondents replied that there
is 6 hrs of delay in the supply of orders and 45% replied that there is 12 hrs of
delay.
TIME DURATION BETWEEN DELAYS OF ORDER & SUPPLY
55%45%
0% 0%0%
10%
20%
30%
40%50%
60%
PERCENTAGE
6 Hours 12 Hours One day More than aday
DELAY PERIOD
TIME DURATION BETWEEN DELAYS OF ORDER & SUPPLY
4.2 CHI – SQUARE TEST
Chi Square – 1
RELATIONSHIP BETWEEN BRANDS WHICH ENJOY HIGHER
MARKET SHARE
S. No Attributes Price Quality Rows
1 Cements 11 4 15
2
Ready mix
concrete 36 13 49
3 Clinker 4 1 5
4
Miscellaneous
sales 4 2 6
Columns 55 20 75
Null hypothesis:
There is no significant difference between the brands that shares the higher
market share
Alternative hypothesis:
There is no significant difference between the brands that shares the higher
market share
Calculation:
O E O-E (O-E)2 (O-E)2/E
11 11 0 0 0
36 35.9 0.1 0.01 0.000279
4 3.7 0.3 0.09 0.024324
4 4.4 0.4 0.16 0.036364
4 4 0 0 0
13 13 0 0 0
1 1.4 0.4 0.16 0.114286
2 1.6 0.4 0.16 0.1
0.275252
Calculated value: 0.275252
Degree of Freedom=(r-1)(s-1)= 3*1=3
Tabulated Chi square value @ 5% significance level = 2.366
Calculated value < tabulated value
Hence Null Hypothesis is accepted.
INFERENCE:
There is no significant difference between the brands that shares the higher
market share
Weighted Average Rank Method:
RANK OF WHICH BRAND ENJOYS HIGHER MARKET SHARE
weighted point
option 4 3 2 1
Weighted
Average Rank
Pavithram 6 4 3 2 44 3
Chettinad cements
Royal grade 53
4 23 12 10 172 1
Chettinad cements
ppc
2 2 0 1 64 2
Sulphur resistant
cement
2 1 1 2 8 4
INFERENCE:
From the table the respondent ranks the Chettinad cements to be first, cipla to the
second place.
CHAPTER 5
SUMMARY OF FINDINGS
1. From the study, it is observed that 100% of respondents have credit facility
given by the Chettinad cements and 0% of respondents have no credit
facility.
2. From the study, it is observed that the period of credit received by 75
respondents 47% get one week, 33% get in 15 days and 13% received
monthly and 7% gets in quarterly.
3. From the study, it is observed that 36% of respondents are highly satisfied,
21% are satisfied, 27% are dissatisfied and 16% are highly dissatisfied with
the current credit facility.
4. From the study, it is observed 64% respondents comfortable with one month
credit period, 36% of respondents responded 15 days and no one opted for
more than one month.
5. From the study, it is observed 49% of respondents are highly satisfied and
13% are satisfied, 24% are dissatisfied, 13% are highly dissatisfied with the
current distribution system.
6. From the study, it is observed, 44% of respondents replied that there is a
delayed supply in the distribution of the products and 56% replied that there
is no proper response from the company.
7. From the study, it is observed 49% of respondents replied that the other
competitive products available for Chettinad cements are Cement, 17%
replied its Rea molders, 27% replied its Miscellaneous Sales and 7% replied
others.
8. From the study, it is observed 20% of respondents replied that the brand that
have higher market share are Cement, 65% replied its Chettinad cements,
7% replied its Rea molders, 5% replied its Miscellaneous Sales and 3%
replied others.
9. From the study, it is observed 73% of the respondents replied that the factor
to gain good market share is price and 27% replied its quality
10.From the study, it is observed 100% of the respondents receives discount
from Chettinad cements.
11.From the study, it is observed 73% of the respondents receives discounts of
2 to 4% and 27% receives discounts of 4 to 6%.
12.From the study, it is observed 65% of the respondents are satisfied with the
discount provided by Chettinad cements and 35% are not satisfied.
13.From the study, it is observed, 27% of the respondents pay by cash, 53%
through cheque and 20% pays through both cash and cheque
14.From the study, it is observed 100% of all the 75 respondents are supplied
daily
15.From the study, it is observed 28% of the respondents replied that there is a
delay between the order and the supply and 72% are satisfied with it.
16.From the study, it is observed, 55% of the non satisfied respondents replied
that there is 6 hrs of delay in the supply of orders and 45% replied that there
is 12 hrs of delay.
17.From the study it is observed that there is no significant difference between
the brands that shares the higher market share
18.From the table the respondent ranks the Chettinad cements to be first, cipla
to the second place.
SUGGESTIONS
Among the 75 respondents 44% are dissatisfied and highly dissatisfied with
the credit period. So it is suggested to increase the credit facility and remove
the dissatisfaction level
Current distribution system is not favorable since 36% replied No regarding
the distribution system. So it is suggested that to improve the performance of
the present distribution system
Among 75 respondents 25% of respondents replied No regarding the
satisfaction level of time delivery. So it is emended that to the company to
concentrate on it to reduce dissatisfaction level.
CONCLUSION
Every company needs to monitor the target focus in its distibution if it wants to
improve its products, service and market position. As today’s market is becoming
more competitive the company needs to constantly scan its service which enable it
to increase the service and grab higher market share.
The researcher has revealed that the company should improve its distribution
network to being competitive in the market.
Annexure
5.1 Questionnaire
Name of the Company:
Address :
Phone Number :
1. Do you get any credit facilities from your distributors?
(a)Yes (b) No
2. If yes, the period of credit you get?
(a)One week (b) 15 days (c) Monthly (d) Quarterly
3. Specify the level of satisfaction with the present credit facility?
(a)Highly Satisfied (b) Satisfied (c) Dissatisfied (d) Highly
Dissatisfied
4. If not satisfied, specify your comfortable credit period?
(a) 15 days (b) Month (c) More than a month
5. Are you satisfied with the current distribution system?
(a)Yes (b) No
6. If no, specify reasons
(a)Delayed Supply (b) No proper response
7. What are the other competitor’s products you are dealing with?
(a) Cement
(b)Ready mix concrete
(c)Clinker
(d)Others
8. Which brand enjoys higher market share?
(a) Cement
(b) Ready mix concrete
(c) Clinker
(d)Miscellaneous sales
e) Others
9. If CHETTINAD CEMENTS which feature helps to gain good market
share?
(a)Price (b) Quality
10. Are you provided with any discounts?
(a)Yes (b) No
11. If yes, say about the discount you get?
(a)less than 1% (b)2 to 4% (c)4 to 6%
12. Are you satisfied with the discount provided?
(a)Yes (b) No
13. What is the mode of payment?
(a)Cash (b)Cheque (c)Both
14. How often do you get supply?
(a)Daily (b)Weekly
(c) 15 days (d)Monthly
15. Is there any delay between order and supply?
(a)Yes (b) No
16. If yes please mention the time particular?
(a)Hours (b) 12 Hours
(c)One day (d) More than one day
References
BIBLIOGRAPHY
BOOK NAME:
Marketing Management Philip Kotler
Research Methodology C.R.Kothari
Marketing Research G.C.Beri
Statistical Methods S.P.Gupta
ELECTRONIC REFERENCE:
http://www.chettinad.com/cement.htm
http://economictimes.indiatimes.com/chettinad-cement-corporation-ltd/
finishedproducts/companyid-12640.cms