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Market survey of cement industrywith reference to
A presentation by
SNEHA SINHABBA/4555/08
DEPARTMENT OF MANAGEMENT
BIRLA INSTITUTE OF TECHNOLOGY
NOIDA CAMPUS
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COMPANY PROFILE
India is the fifth largest producer of cement in the world.
ACC was formally established on August 1, 1936 byF E
Dinshaw.
The first success came in a move towards cooperation in the
countrys young cement industry and culminated in the
historic merger of ten companies to form a cement giant.
These companies belonged to four prominent business groups
Tatas, Khataus, Killick Nixon and F E Dinshaw groups.
At present ACC is India's foremost manufacturer of cement
and concrete.
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More about ACC: The company uses the process of ESP (Electro Static Precipitation) to avoid
pollution.
Marketing policies:ACC launches new products according to changes inenvironment & work situation. ACC has taken manifold steps:
Brand strengthening
After sales services
SWOT ANALYSIS ACC STRENGTHS :Quality dealer network,Cement quality,High corporate
image
WEAKNESSES :Logistics management,Fluctuation in price across theborder,Irregular availability of cement
OPPORTUNITIES :Brand name,Government projects
THREATS :Higher transportation cost
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Problem formulation
The achievement of marketing objectives are twofoldi.e. consumer satisfaction and profitable sale.Customer satisfaction is gained in the manner inwhich the marketing functions are organized. Hence,demand in cement industry is considered as an
important one. The penetration of other companies in the market is
the main problem faced by the company due to whichconsiderable less shares appear in the market.
Conducting a market survey and collecting dealersopinion about pricing, quality, servicing and themargin provided by the company is equallyimportant. Hence a study on there behavior is takenand also the future prospective are derived.
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objective
Basic objectives are:
To study various competitors and their
behavior in cement industry. To study market strategies adopted by
cement companies.
Market and dealers feedback for
enhancing the cement sales.
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Research methodology
SAMPLE SIZE :
In Kolkata area office, there are nearly 80 authorized cement dealers of
ACC.Owing to the time and a monetary constraint it was impossible to
visits all these dealers. Hence nearly 32 cement dealers in Kolkata were
chosen for the study. The conclusion and findings are based on the replies
from these dealers.
DATA COLLECTION :
The methodology used for data collection was based on field survey,
personal observation and personal interview. For this purpose a
questionnaire was designed based on the topic for which the research was
being conducted. Personal visits were made to all these 32 dealers.
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Analysis and Interpretations
Break up of dealers (Acc and Ambuja) according
to their stock :
Out of 32 dealers, 6 dealers
maintain more stocks of ACCthan ambuja for per 100 bags.
Stocks for per 200 bags are
same for both.
And 3 dealers said that they
maintain higher stocks of ACC
for per 400 bags than Ambuja
cement.
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Maximum sales(quarterly) of Acc &
Ambuja :
Quarter ACC AMBUJAAprilJune 61% 30%
JulySeptember 39% 70%
0%
10%
20%
30%
40%
50%
60%
70%
April-June July-Sept.
ACC
AMBUJA
Sales of ACC are atits peak during april-
june (summers) as it
requires less water to
prepare its mixturewhile Ambujas sales
maximise inbetweenjuly-sept.
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Promotion Policies: Break up of advertisement
used by Acc & Ambuja :
ACC uses more of print media to advertise its products
whereas Ambuja prefers electronic media over print
media and thus ACC lacks proper communication with
its dealers and customers.
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Break up of reasons for using Acc & Ambuja :
Acc
Market share :
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Satisfaction level of ACCdealers.
Reasons of
dissatisfaction: Supply problem
Lessadvertisement Inadequateincentives
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Break up of reasons for shifting ACC to other
brands :ACCs major problem is its supply
which creates less availability of
cement in stores.
Suppliers who deal in multiple brands,
emphasis to the sale of that cement
brand from where they get highincentives or more Profit margin.
ACC does not provide cement to
dealers or consumers on credit as
followed by others. So it is one of the
reasons for shifting.Advertisement is the main factor of
increasing sales. Compare to ACC
other companies have more
advertisement on TV which attracts the
customers to purchase that brand.
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Product quality
no. of respondents
average
13%
good
25%excellent
62%
average good excellent
Out of 32 dealers, 62% dealer says that the quality of cement of
ACC is excellent.
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Conclusion and findings The average stock demanded by the dealer is 10-12 trucks per
month. The security is fixed at Rs.50,000 per year by ACC.
Average stock maintained by dealer is 300 bags.
Sales are maximum in the month of APRILJUNE & minimumin OCT - FEB.
Average delivery period is 34 days. Dealers make payment through cheques.
Company only gives cement on advance payment.
There is a lot of price fluctuation in cement industry.
ACC has a quality distribution network.
Immediate competitors are Ambuja and Lafarge. Both useextensive advertising programs.
Price of a large is lower than ACC in most of the places.
Competitors adopt promotion measures like gift vouchers andcoupons.
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Some major problems have been faced while conducting the research. These are givenbelow :
Time was a constraint for the study even though attempts were made to study to themaxim limits but only 32 respondents were covered to fill up the questionnaire.
Since all the dealers of Kolkata could not be contacted so the conclusions and theresult are based on the information provided by these 15 dealers.
Sample size of number of candidates for the study varies.
The major limitation of the research was time and monitory constraints due towhich the study had to be restricted to a limited area.
There is lot of price fluctuation in cement business. So the difficulty wasexperienced regarding drawing conclusion.
problems were faced while dealing with the customers as language was a constraintand translation of questionnaire in Hindi and Bengali was required at times.
LIMITATIONS
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