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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)

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Page 1: Balaji s Project to PRA

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

Page 2: Balaji s Project to PRA

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

Page 3: Balaji s Project to PRA

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

Page 4: Balaji s Project to PRA

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.

Page 5: Balaji s Project to PRA

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.

Page 6: Balaji s Project to PRA

(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.

Page 7: Balaji s Project to PRA

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

   

Page 8: Balaji s Project to PRA

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

Page 9: Balaji s Project to PRA

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

Page 10: Balaji s Project to PRA

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.

Page 11: Balaji s Project to PRA

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.

Page 12: Balaji s Project to PRA

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)

Page 13: Balaji s Project to PRA

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:

Page 14: Balaji s Project to PRA

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.

Page 15: Balaji s Project to PRA

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

Page 16: Balaji s Project to PRA

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.

Page 17: Balaji s Project to PRA

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.

Page 18: Balaji s Project to PRA

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.

Page 19: Balaji s Project to PRA

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:

Page 20: Balaji s Project to PRA

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

Page 21: Balaji s Project to PRA

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.

Page 22: Balaji s Project to PRA

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.

Page 23: Balaji s Project to PRA

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.

Page 24: Balaji s Project to PRA

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.

Page 25: Balaji s Project to PRA

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.

Page 26: Balaji s Project to PRA

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.

Page 27: Balaji s Project to PRA

 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)

Page 28: Balaji s Project to PRA

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.

Page 29: Balaji s Project to PRA

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……

Page 30: Balaji s Project to PRA

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

Page 31: Balaji s Project to PRA

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.

Page 32: Balaji s Project to PRA

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.

Page 33: Balaji s Project to PRA

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

Page 34: Balaji s Project to PRA

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.

Page 35: Balaji s Project to PRA

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

Page 36: Balaji s Project to PRA

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.

Page 37: Balaji s Project to PRA

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

Page 38: Balaji s Project to PRA

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.

Page 39: Balaji s Project to PRA

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

Page 40: Balaji s Project to PRA

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.

Page 41: Balaji s Project to PRA

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

Page 42: Balaji s Project to PRA

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.

Page 43: Balaji s Project to PRA

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

Page 44: Balaji s Project to PRA

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

Page 45: Balaji s Project to PRA

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

Page 46: Balaji s Project to PRA

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

Page 47: Balaji s Project to PRA

Price, 73%

Quality, 27%

Price

Quality

Table No: 4.1.10 DISCOUNTS PROVIDED TO RESPONDENT

Page 48: Balaji s Project to PRA

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

Page 49: Balaji s Project to PRA

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

Page 50: Balaji s Project to PRA

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

Page 51: Balaji s Project to PRA

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

Page 52: Balaji s Project to PRA

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

Page 53: Balaji s Project to PRA

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

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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

Page 55: Balaji s Project to PRA

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

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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

Page 57: Balaji s Project to PRA

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

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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

Page 59: Balaji s Project to PRA

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

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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

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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

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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

Page 63: Balaji s Project to PRA

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:

Page 64: Balaji s Project to PRA

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

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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.

Page 66: Balaji s Project to PRA

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

Page 67: Balaji s Project to PRA

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

Page 68: Balaji s Project to PRA

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

Page 69: Balaji s Project to PRA

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

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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

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(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

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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