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Comparative study of MP Birla perfect cement with other competitive
brand with respect to Marketing Mix in Varanasi area.
I ,Sagar Kapoor student of MBA 3rd semester of ―School of Management Sciences‖, Varanasi hereby
declare that the study and the report on ―Comparative study of MP Birla perfect cement with other
competitive brand with respect to Marketing Mix in Varanasi area.‖ with reference to MP Birla perfect
is entirely done by me in the summer training. All the information collected through the questionnaire
is correct in accordance with the sample size. All the statistical diagrams are derived from the
information collected through the questionnaire.
I also declare that the information included in the project has been researched by me. The project is
written by me. The information collected or presented in the report is correct to the best of my
knowledge & belief. I declare that this report has not been submitted to any other university or
Sagar Kapoor
1
PREFACE
The course of MBA requires one to undergo a summer training project with the end of the 2nd
Semester, so as to get a practical knowledge and understanding the practical aspects of all the
theories . It helps us make the best use of our skills and intelligence so as to make a better
person for future. It is really the most important thing during the course of the study.
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ACKNOWLEDGEMENT
Success is an effort involving the co-operation of all. To create and formulate this project report, I
would be thankful to all individuals who served me as a true guide and epitome of knowledge.
I would like to thank Mr. Vikram Rajpurohit (Branch Head, MP Birla Cement) for his anytime
guidance and continuous support. Their experience and methodology of providing training helped me
not to perform the desired activity but to accomplish creativity.
Sagar Kapoor
DATE:
SIGNATURE
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TABLE OF CONTENT
SECTION-A
1. Introduction
1. Industry Overview
2. Company Overview
3. SWOT Analysis
4. Marketing Mix
2. Experiential Learning
1. Experience Learning
2.Job Description
3.Experienced Gained
4. Thoughts, Views & Comments
5.Suggestions for improvement
SECTION-B
1. Introduction
2. Outline of the project
3. Objectives of the project
4. Scope of the study
4. Literature Overview
5. Research Methodology
6. Data Analysis Results & Interpretation
7. Conclusions
8. Limitation
9. Appendix
10. Bibliography
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CEMENT INDUSTRY- AN OVERVIEW
Cement industry of India is the second largest producer of cement in the world. In financial
year 2012-2013, the total cement production capacity was about 347 million tonnes. It
contributes very high in Indian GDP. Housing is the major sector of cement consumption
about 67% of the total consumption. Cement industry is very vast and higher revenue is being
In the last decade cement industry has a compound growth of 8% with increase in housing
sector. In recent years the growth is not so good as compared to earlier decade, because of
slow economic growth. Cement, being a bulk commodity, the per capita consumption is still
very less, and because of this there is high possibility of growth of cement industry. At present
Lafarge, Ultratech and Wonder cement have installed high capacitive plants which will further
Since India is very vast, the cement industry to divide in five regions. North, East, West, South
and Central region, so that transport be easy for cement dealers and consumers. The south
region has the highest installed capacity of cement from other regions. One third of total
Lafarge cement and other cement companies have ventured into Indian market with new high
capacitive plants. Holcim has acquired the two major cement companies and now become the
leader of one third of the total cement production. At present the economy is likely to remain
sluggish for cement industry, but with the increase in GDP, cement production and
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consumption both will rise . Overall growth of Indian economy affects the housing sector and it
India is producing 350 million tonnes per year and it is expected to grow to 550 million tonnes
by financial year 2020. India is very vast, so the development of cities and rural areas will
certainly start from infrastructure and demand of cement will increase also.
When economy will rise, development of cities and rural areas would increase cement demand
in India. Cement industry plays an important role in development of a country and has a
Indian cement industry will be soon among the highest contributors in the growth of economy.
As potential market of cement is increasing day by day, production of cement will raise and
It is expected that in the coming years cement industry will grow because of the upcoming
housing projects and infrastructure development programs in India. Ultratech cement, Ambuja
cement, J.K.cement, Shree cement and ACC cement are the top players of cement industry in
India.
FDI worth Rs 13,546.47 crore was attracted by gypsum and cement in the year 2000 June and
July 2014
Ambuja cement is going to invest approximately 800 crore in various regions of India.
Ultratech will start its third plant in adityapuram with a very high capacity production plant.
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History of Cement Industry
Cement industry was started in the year 1914. At that time the only plant of cement production
was set in Porbandar; Gujrat. Its capacity was only 1000 tonnes per annum. It was the starting
Now India is the second largest producer of cement in whole world. India is having more than
85 cement companies with more than 210 plants so far. In cement industry there are grinding
Cement plant started with its capacity from 1000 tonnes per annum. The first cement produced
was by Portland cement in Calcutta. In1889, directory of George Watts wrote ―Economic
Products of India‖ stated Portland cement but it was an unorganised procedure for
manufacturing cement. In 1914, Porbandar plant showed direction to others. It got succeeded
Two plants came into existence, one was in Lakheri in Rajasthan and other was from Katni
from Madhya Pradesh. In 1918, cement production capacity was raised to 85000 tonnes per
annum. Between 1919 and 1924, six new plants came into existence and the earlier plant‘s
capacity got raised which results in increased capacity of cement production of India.
In 1924 total capacity of cement production came to 0.56 million tonnes per annum. In early
twentieth century demand of cement by government decreased and it affected the production
of cement. This was a downfall for cement industry and suppliers and dealers got affected by
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that too. In 1925 committees were formed by the government to control the prices and tariffs
of cement.
The 70‘s saw a boost in cement production and capacity raised to 17.6 million tonnes per
annum. In 1979-80 it touched 24.3 million tonnes per annum. From here both rise and
downfall starts but rise in production capacity was tremendous as compared to downfall that
time. In 2003 many other companies came into cement market by investing in small cement
plants. Those mini plants now become the major plants of India. At present India was having a
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2.3 Indian Companies Details Given By a Journal Survey
Indian cement companies which were described by ―Labour and Industrial Chronicle‖. Survey
rd
of cement industry and directory, 2012, 3 edition. It states about cement industry capacity
per plant and number of plants of each cement company in India. It gives an idea about the
capacity of cement and number of plants of company. Two to three plants expansion may be
Table 2.1 - Indian cement companies which were described by ―Labour and Industrial
rd
Chronicle‖ survey of cement industry and directory, 2012, 3 edition
Plants
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14. Penna Cement Industries Ltd 7.00 04
6
Key Drivers of Cement Industry
Cement industry is driven by many factors or by many sectors such as infrastructure, housing
sector, Indian government economy, GDP of India, government rural development programs
etc.
GDP of India affects housing and infrastructure development of India and this results in
changed prices of cement. These changed prices of cement ultimately affect demand and
Indian infrastructure scenario
Government programs like rural or urban development etc.
GDP of India
A few years back Indian cement industry was going through crucial condition when
companies stopped their running plant of cement production due to decrease in demand of
cement.
This happened because of the downfall in Indian economy and this resulted in price reduction
of cement too. Rise and downfall in Indian economy directly affects demand and supply of
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Government
programmes
like rural or Indian real
urban estate market
development
etc
KEY DRIVERS
OF CEMENT
INDUSTRY
Indian
GDP of
India
8
State Wise Major Cement Plants and Their Capacity
Table 2.2 -State Wise Major Cement Plants and Their Capacity described by ―Labour and
rd
Industrial Chronicle‖ Survey of Cement industry and Directory, 2012, 3 Edition.
2012
2. Assam 04 2.73
3. Bihar 01 1.00
4. Chhattisgarh 10 16.11
5. Delhi 01 0.50
6. Gujarat 14 27.49
7. Haryana 04 3.52
8. Himachal 07 13.04
9
17. Punjab 03 4.75
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Four P‟s of cement industry
Product
Price
Promotion
Place
Product
Cement is the product for customers in cement industry. This tangible good is the need of
Indian and overseas people for housing and infrastructure. Government need cement for rural
or urban development programs, dams, bridges, housing schemes etc. Cement is of many types
Price
Price means amount paid for the product to its customer. By deciding the price of product
company fixes its profit margin per bag. Demand and supply of a product decides its price.
Company‘s critical work is to fix the price of cement as it directly affects business profits.
Place
Place means the location of product where it is easily available to customers, dealers. Final
product is first delivered to dealers and sub- dealers. Customers can directly buy desired
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Promotion
Several schemes are applied to communicate customers and dealers for promotion of product.
Advertisements on television and radio are most frequently methods of promotion. Internet,
web portals, print media are very helpful in promoting cement. Promotion plays an important
Strengths describe what an organization excels at and separates it from the competition: a
strong brand, loyal customer base, a strong balance sheet, unique technology and so on. For
example, a hedge fund may have developed a proprietary trading strategy that returns market-
beating results. It must then decide how to use those results to attract new investors.
Weaknesses stop an organization from performing at its optimum level. They are areas where
the business needs to improve to remain competitive: higher-than-industry-average turnover,
high levels of debt, an inadequate supply chain or lack of capital.
Opportunities refer to favorable external factors that an organization can use to give it a
competitive advantage. For example, a car manufacturer can export its cars into a new
market, increasing sales and market share, if a country cuts tariffs.
Threats refer to factors that have the potential to harm an organization. For example, a
drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield.
Other common threats include things like rising costs for inputs, increasing competition, tight
labor supply and so on.
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Strength
Weakness
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Increased cost of production or coal.
High interest rates on housing sector.
Opportunities
cement in India.
Rise in housing sector.
Growing middle class.
FDI.
Threats
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Classification of cement
Bonding minerals with the help of its adhesive and cohesive properties firmly is known as
cement. It is adhesive in nature. It is used to bond bricks, stones, sand and other materials used
in building. It is known as hydraulic as with the use of water, it got more hard and strong.
There are different types of cement in markets. Every cement is used for its specific purpose in
building. India produces different types of cement which are defined below and consist of
It is known as OPC cement in short and also known as grey cement in India. It consists of 95%
clinker and only 5% gypsum and a few percentages of other materials. It accounts for 69
It is known as PPC cement in short and also known as grey cement in India. It consists of 80%
clinker, only 5% gypsum, 15% pozzolana and a few percentages of other materials. It accounts
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White Cement
It is white in colour and uses fuel oil with iron oxide .For whiteness it has to be below 0.4
percentage and it does not use coal into it. Its main use is in flooring and tiles. It is very
Also known as PBFSC in short. It consists of 50 % blast furnace slag, 45% clinker and 10% of
gypsum. It accounts 10% of total consumption. It is generally used for massive construction
Specialized Cement
Clinker and special adhesives are used in preparation of cement for prevention of any porosity.
Rapid hardening Portland cement has more strength as its grains are much finer than OPC. It
is very much similar to OPC but on casting, its strength increases rapidly.
It is also same as OPC but it is water proof. A small portion of calcium stearate ornon-
All these cement types have different chemical properties and are used for different purpose.
Somewhere more strength is used like dams and bridges or other purpose, the cement used is
different. As per its chemical composition and manufacturing cost and its transportation,
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results in the price of cement per bag. That‘s why the region of where cement plant is situated
The players of cement industry contribute in economic growth of India. These top cements are
exported to overseas and thus, foreign money comes to India and these top cement companies
contribute in financial growth of India. The rank of cement companies is given by Economic
Times among the top 500 companies of world. The ranking of cement companies along with
its turnover and its profit figures are also shown in the table. As per this table Ultratech, ACC,
and Ambuja are the top players of cement industry. Cement productions companies are many
in numbers but there are very few companies are there which came into the fortune 500
companies.
Ultratech Cement
ACC Cement
Ambuja Cement
Shree Cement
India Cement
Prism Cement
Rain Cement
J.K Cement
Birla Cement
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Table 2.3 Cement company figures in crores
Ultratech Cement
Et 500 Rank 52
Acc Cement
Et 500 Rank 79
Ambuja Cement
Et 500 Rank 93
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Madras Cement Ltd
Prism Cement
Birla Cement
Shree Cement
19
Rain Cement
J.K Cement
India Cement
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COMPANY PROFILE
21
The Company has acquired 100% shares of Reliance Cement
Company Private Limited (Reliance Cement), a subsidiary of
Reliance Infrastructure Limited (RIL). After this acquisition,
Reliance Cement has become a wholly-owned material subsidiary
of Birla Corporation Limited. The entire cement business of RIL
has been acquired for an Enterprise Value of Rs. 4,800 crores. This
acquisition provides Birla Corporation Limited with the ownership
of high-quality assets, taking its total capacity from 10 MTPA to
15.5 MTPA.
Installed Capacity
OBJECTIVES
To serve the national interests in the Product and related sectors in accordance and consistent
with Government policies.
To earn a reasonable ate of on interest.
To maximize utilization of the existing facilities in order to improve efficiency and increase
productivity.
To work towards the achievement of self-sufficiency in the field of cement market by setting up
adequate capacity and to build up expertise in lying of crude.
To further enhance distribution network for providing assured service to customers throughout
the country through expansion of reseller network as per Marketing Plan/ Government approval
BUSINESSES
a) UNIVERSAL CABLES LIMITED: is in the Indian Cables Industry, and its cables and capacitors
are known by the brand name "UNISTAR"
b) VINDHYA TELELINKS LIMITED: manufactures jelly filled Telephone Cables in technical
collaboration with M/s. Ericsson Cables AB of Sweden
c) BIRLA ERICSSON OPTICAL LIMITED: has technical and financial collaboration with Ericsson
Cables AB of Sweden to produce Optical Fibre Cables. The company also produces Polyurethane
Jelly filled insulated Cables.
d) BIRLA FURUKAWA FIBRE OPTICS PRIVATE LIMITED: manufacturers of Optical Fibre.
e) HINDUSTAN GUM & CHEMICALS LIMITED: manufactures Guar Gum and exports to various
countries the world over. Rhone-Poulenc Inc. of France has 50% financial stake in the company.
The company has 3 manufacturing units in India.
f) BIRLA DLW LIMITED: was set up with a 50:50 Joint Venture with DLW Aktiengesellchaft,
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Germany to produce linoleum flooring for exports.
g) BIRLA FINANCIAL CORPORATION LIMITED: has activities in the financial sector.
PHILANTHROPY
The M.P.Birla Group, besides its industrial activities, runs several institutions, including the
M.P.Birla Planetarium, Belle Vue Clinic, South Point School and the M.P.Birla Foundation Higher
Secondary School in Kolkata as well as various prestigious medical institutions like Bombay Hospital
in Mumbai, Birlapur Hospital in Birlapur, 24 Parganas(South), West Bengal, M.P.Birla Hospital and
Research Centre in Chittorgarh(Raj.), Birla Vikas Hospital in Satna, Sidhi and Indore(M.P). The
M.P.Birla Eye Clinic was started in 2001.
SCHOOLS
HOSPITALS
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25
LOCATION OF PLANTS IN INDIA
FIGURE -14
BRANDS
The cement is marketed under the brand names of MP Birla Cement PERFECT, ULTIMATE,
UNIQUE, CHETAK, PSC, SAMRAT, MULTICEM & CONCRECEM, bringing the product under the
common brand of M P Birla Cement.
silica. The grains of the cement are so fine that they spread over large
surface areas, making them leak-proof and durable. The product is packaged
in moisture-proof and tamper-proof Laminated Polypropylene (LPP) bags to ensure.
freshness and a long shelf life. Whether for foundations, structures or roofs, you can always rely
on Controlled Particle Size Distribution technology to do a unique job. The Pozzolanic material
(slag) found in the cement is dried and passed through a roller press before the manufacturing
process begins. The treated slag is then mixed with OPC to produce MP Birla Cement Unique.
Produced at Durgapur Cement Works, it is amongst one of the renowned brands in E astern lndia.
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MP BIRLA CEMENT SAMRAT (PPC)
MP Birla Cement Samrat is ideal for all constructions, mass concrete and
RCC/pre-stressed/precast structure.
MP Birla Cement PSC, is the High Blaine Slag Cement, packed in regular
HDPE bags, recommended for all types of construction.
VERSATILE APPLICATIONS
Perfect cement can be used in a number of areas of application some of which are the following:
• on-site expert mobile testing van estimating, costing and cube testing.
• Slab supervising.
• Cover block.
• Masking tape for shuttering.
• Rebound hammer testing.
• Sieve analysis.
• Silt determination test.
• Instant mix proportioning.
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• Concrete mixing design services.
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BCL, counted among the top cement enterprises of India. Available in four variants (PPC, OPC
43, OPC 53 and SRC), MP Birla Chetak comes with the promise of strength and durability. The
fly ash used in the product is rich in silica, which reacts with lime to produce a binding gel. This
gel, in turn, makes the construction strong and lasting.
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THE OBJECTIVE OF THIS POLICY IS TO:
(i) specify the parameters (including internal and external factors) that shall be considered while
declaring the dividend.
(ii) lay down the circumstances under which the shareholders of the Company may or may not expect
dividend.
(iii) provide for the manner of utilization of retained earnings.
ARCHIVAL POLICY
Regulation 30 (8) of Securities and Exchange Board of India, (Listing Obligations and Disclosure
Requirements) Regulations, 2015, mandates the listed companies to frame a Policy and upload the
same on its website, laying down the framework for disclosure on information and their archival on the
Company‘s website.
The Company is committed to establish and maintain information that meets its business needs,
accountability requirements and stakeholder expectations.
The Policy aims at nourishing the transparency, accountability and better relationship with
stakeholders.
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purpose of proper, sufficient and timely disclosure of the same to the Stock Exchange(s).
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AWARDS & RECOGNITION
Birla Corporation Limited has made it to the prestigious list of "200 Best Under a Billion $" companies
in the Asia-Pacific region, published by Forbes Asia, in its October 9, 2009 issue.
Birla Corporation Limited received the Best Corporate Ethics Award for 2008 from the Indian Institute
of Planning and Management.
Satna Cement Works & Birla Vikas Cement have received the IS/ISO 14001 certificate, an
international recognition for "Implementation of environmental management system".
SCW has received National Award for Excellence in Water Management from CII, Hyderabad 'First
Prize for Lowest Thermal Energy Consumption K. Cal/kg clinker under the 10th FLS Energy Award
2007. SCW received the Best Energy Consumption Implementation Gold Award under the Rajiv
Gandhi Memorial National Award, Hyderabad, in 2004. It also received the First Prize for Maximum
Reduction in KWH/Ton of Cement in M.P. under FLS Energy Award, Bhopal, in 2008.
SCW has been awarded Green Tech Environment Excellence Award in 2008 by Green Tech
Foundation, New Delhi.
NCBM has given BVC the "Second Best Improvement in Electrical Energy Performance" Award for
2006-07.
BVC has received the National Award for Excellence in Water Management from CII, Hyderabad
"National Award For Energy Efficiency in Indian Cement Industry form NCCBM, New Delhi, Lowest
Electrical Energy ConsumptionCal/kg clinker under the 10th FLS Energy Award in 2007. The Satna
Unit received the Quality Circle Excellent Award from Quality Circle Forum of India, Durgapur
chapter "Quality Circle Excellence Award and Quality Circle Distinguish Award From Quality Circle
Forum of India, Kanpur Chapter, in 2008.
All our cement plants are ISO 9001:2000 Certificated, covering the entire range of production and
marketing. BCW & CCW also the IS/ISO: 14001 Certification for "Implementation of Environmental
33
Management System". BCW & CCW have bagged various awards from the NPC & NCCBM.
The laboratories of BCW & CCW have been accredited by NABL (National Accreditation Board of
Testing and Calibration Laboratories) as per ISO/IEC 17025 w.e.f. 07.07.2005.
CCW has won the "Lal Bahadur Shastri Memorial National" award for "Excellent Pollution Control
Implementation" for 2001-02 by International Greenland Society. VEC, Chennai chose the Chanderia
Units for sustained implementation of condition monitoring and continued Machine Health
Improvement award during 2001-02. The "Workers Education Trophy" was awarded by the Central
Board of Workers Education, Udaipur Ministry of Labour, Government of India, for excellent
contribution and implementation of workers' training programmes during 1998-99 & again in 2001-02.
BCL has regularly been receiving CAPEXIL awards for cement exports since the last more than 15
years.
CORPORATE SUSTAINABILITY
Birla Corporation Limited has been playing a pro-active role in the socio-economic upliftment in and
around its facilities in terms of health, education, rural infrastructure development, etc.
HEALTH INITIATIVES
It has actively supported establishment of Priyamvada Birla Cancer Research Institute at Satna
(MP).
The Medical Officer and para-medical staffs visit nearby villages in the Satna area every week
to offer free check-up, treatment and medicine.
A 24-hour, fully-equipped dispensary, with a Doctor and para-medical staff is maintained at sag
mania Mines (MP) to benefit the villagers in the vicinity.
34
The Company has provided the required infrastructure for establishing an Ayurvedic
Dispensary at sag mania Mines Colony, run by the Cess and Welfare Department, Government
of India.
Free eye checking and treatment camps were organized to benefit the villagers in the Satna
area.
A family planning camp was organized at Chanderia unit recently wherein 80 operations were
carried out.
Eight pulse polio camps have been organized, at Birlapur (WB), for the wards of our employees
as well as local habitants.
A four-day AIDS awareness camp was also organized at Birlapur on the last AIDS Day.
EDUCATIONAL INITIATIVES
The Company constructed the boundary wall of the Primary School, Baraj village, near Satna.
Sports and stationery materials were also provided free in nearby schools.
Repair and painting works were undertaken at adivasi School, Sag mania, and other schools.
School bus facility was provided for children, living in Satna areas, to attend school in the city.
At Nagri School, Chanderia, the boundary wall and a computer room were constructed.
Vocational trainings are provided to students, pursuing Management and Engineering courses,
at the Companyplants and Corporate Office, in Kolkata.
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SOCIAL WELFARE
Drinking water is being provided regularly in RCC water tanks, constructed by the Company, in
nearby villages of Satna.
The Company contributed in the construction of a canal too to bring water from Bnsagar Dam
to Satna Anikut for providing water to the habitants in Satna area.
The Company constructed a 75,000-litre RCC drinking water tank, at Surjana village, near
Chanderia, and laid the water distribution pipelines too.
Drilling and pipe-laying work was done near Neelkanth Mahadev temple, at Chittorgarh.
At, Birlapur, blood donation camps are organized in association with NGOs for the local
habitants.
Mid Day Meals are provided to the children and destitute in the locality, once in a month.
The Cement Division of Birla Corporation Limited has seven plants, two each at Satna (M.P.) - Satna
Cement Works & Birla Vikas Cement, Chanderia (Rajasthan) - Birla Cement Works &Chanderia
Cement Works, Durgapur (W.B.) - Durgapur Cement Works & Durga Hitech Cement - and one at
Raebareli (U.P.)-Raebareli Cement Works. Now it includes three more plants which they took over
from reliance i.eat Maihar, Kundunganj and Boutiburi
36
They manufacture varieties of cement like Ordinary Portland Cement (OPC), 43 & 53 grades, Portland
Pozzolana Cement (PPC), Fly Ash - based PPC, Low Alkali Portland Cement, Portland Slag Cement,
Low Heat Cement and Sulphate Resistant Cement.
The cement is marketed under the brand names of Birla Cement SAMRAT, Birla Cement
KHAJURAHO, Birla Cement CHETAK ,Birla Premium Cement,Birla Perfect cement bringing the
product under the common brand of Birla Cement while retaining the niche identity of SAMRAT for
blended cement, i.e. PPC & PSC, for all the units, KHAJURAHO and CHETAK.
CORPORATE GOVERNANCE
The Company's philosophy on Corporate Governance is to conduct its business in a manner, which is
ethical and transparent with all stakeholders in the Company, including shareholders, lenders, creditors
and employees. The Company and its Board of Directors firmly believe that strong governance, by
maintaining a simple and transparent corporate structure, is integral to creating value on a sustainable
basis. Good governance is a continuing exercise and the Company reiterates its commitment to pursue
the same in all aspects of its operations in the overall interest of all its stakeholders. The Directors and
employees have accepted a Code of Conduct that sets out the fundamental standards to be followed in
all actions carried out on behalf of the Company.
INTERNAL CONTROL SYSTEM
The Company has a well established framework of internal controls in all areas of its operations,
including suitable monitoring procedures and competent and qualified personnel. In addition to
statutory audit, the financial and operating controls of the Company at various locations are reviewed
by the Internal Auditors, who report their findings to the Audit Committee of the Board. Every unit is
subject to internal audit as per the audit plan approved by the Audit Committee of the Board.
The Audit Committee of the Board is headed by a Non-executive Independent Director and ensures
independence of the function and transparency of the process. The Committee meets to review the
progress of the internal audit initiatives, significant audit observations and the action plans. The
Company conducts its business with integrity and high standards of ethical behaviour and in
compliance with the laws and regulations that govern its business.
BILLING.
37
TREASURY
TAXATION.
ESTABLISHMENT
1. Viratounts Payable (AP):- In this AP module the Viratounting system covers bill sections &
Taxation is a special mode in AP.The Viratounts payable first deals with bills, there are various types
of bills like:-
Raw material bills
Stores/spares/supplier bills
Contractor bills
Employee bills(Transport, Medical, Petty cash)
License for mines Registration.
All these bills are sent to bill section. In Bill section firstly, bills are verified. At the time of verification
taxes are calculated then only Bills are cleared and then only party gets its payment.
BILLING:-
The bill can be passed when they received from the department. First, we have to check service
sheet no. & Virateptance no. and signature of the departmental head & chief engineer &
manager maintenance. Then the bill clerk start processing, check the bill from purchase order
for the purpose of quantity and rates. The bill should be prepared in SAP system.
So, MIR-7 & MIR-4 should be use MIR-7 is used for enter the necessary data & MIR-4 is used
for posting the data .For filling all the necessary data we can simulate the document at the same
time they can check the tax amount. The number which can be issued on MIR-7 than it should
be enter on MIR-4 then the posting no. will come. After that tax amount deducted from the bill.
PURCHASE REQUISTION: - In AP module finance department make purchase
requisition that is all about the material.PR is the process to till the payment of goods.
38
The PR contains all kinds of details about the material like; quality of product, how much cost
efficiency product specification etc. It can be consisting on two types:-
AUTOMATIC: - It‘s only related to material of plant. It generated automatically.
ENQUIRY: - Finance department do enquiry about the material. Material should be satisfied and also
they search a vendor who can supply the material in good way.
VENDOR SENT QUOTATION: - here many vendor sent their quotation for delivered the material to
the company.
PURCHASE: - Here purchase department make a comparative statement, that whose material is more
cost effectiveness, quality as well as quantity also. Here one vendor is selected for give purchase order.
TENDER COMMITTEE:-For this committee minimum three members should be present head of
finance, head of procurement, and head of technical.
APPROVE: - By the tender committee material is approved for the further process.
PURCHASE ORDER:-If goods will approved by the tender committee then it will order for
purchasing the material.
SUPPLY: - The vendor who is selected him will supply the material Viratording to purchase order.
Mr. B R Nahar
Managing Director
Mr. G Sharma
Joint President (Indirect Taxes) & Company Secretary
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MP BIRLA PERFECT CEMENT
FEATURES
Tamper proof
UPSD Technology
Weather proof bags
Fast setting time
On site expert
VERSATILE APPLICATIONS
Perfect cement can be used in number of areas of application, some of which are the
following.
Residential constructions
All structural construction purposes
Marine structures
Mass constructions ( Roads, dams)
Large foundations
Industrial plants
Concrete roads
Repair and rehabilitation
Sewer and Sewage disposal work.
SERVICES
Ultratech cement is one of the leading cement manufacturers of India with an installed
capacity of 62.5 million tonnes per annum. Ultratech cement is an Aditya Birla Group whose
Chairman is Kumar Manglam Birla, one of the leading businessman of India. Ultratech cement
ULTRATECH CEMENT
Fig-2.2a-Ultratech cement
Company has a huge workforce of around 120000 employees which is from 36 countries and
43 nationalities. Ultratech believes in technology and innovation, that is why its technology is
much superior from other groups. It believes in quality product which makes Ultratech cement
VISION
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MISSION
Values
Commitment
Integrity
Passion
Seamlessness
Speed
The engineer‘s choice is practically the choice of India as it is among the top two cement
producers of India. It relies on technology for better quality of cement product . Aon-Hewitt
ranked Ultratech cement among the top players in ―Best Employer‖ of India. It is known for its
Ultratech cement plant is located in shambhupura district Chittorgarh in Rajasthan. This plant
is 18 km far from the city Chittorgarh. It is among the most modern plants in India. The plant
has a capacity of 6.6 MTPA Now Ultratech cement was having the third line plant at the same
place with increase in production capacity of cement. Ultratech cement has its one more plant
in Kotputli also. Every process of Ultratech cement is systematic which gives a sound flow of
every activity. Now it maintains the level -5 of quality system elevated to IQRS in year 2000.
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Ultratech Cement
Chairman: Kumar
Manglam Birla
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J.K Cement
Its first cement plant was started in 1975. Its first plant is situated in Nimbahera in Chittorgarh
district in Rajasthan. J.K. cement is well known cement supplier in India and overseas both. In
North India it is famous for its cement quality. It started its plant with a production capacity of
0.03 million tonnes per annum. Now it has increased its capacity to 7.5 million tonnes per
annum. Its white cement production capacity is very high and ranked second in North India for
white cement.
J.K. cement has mines of kilometres of high grade limestone used for preparing cement.
Limestone is used to prepare both white and grey cement. In Haryana it has the highest market
share among all other cement brands. It holds almost 18 % of market share only in Haryana as
well. It is famous for its quality cement and has high market share in North India.
Singapore
Kenya
Bahrain
South Africa
Nepal
Tanzania
Nigeria
Bangladesh
Srilanka
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U.A.E
J.K. Cement ltd is an affiliate of industrial conglomerate J.K. organisation. It was founded by
Lala Kamlapat Singhania. His business was further expanded by legendary Sir Padampat
Singhania. Mr Gaur Hari Singhania has now taken the charge of organisation.
J.K. cement is known for its customer oriented approach. J.K. cement is in cement business
since the last three decades. J.K. cement has two more cement plants in Rajasthan in Mangrol
and Gotan. In 2009 J.K. cement set its green field unit in South Karnataka. J.K. cement is
among the leading cement producers of India. It is known for its quality cement.
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J.K. CEMENT
Three Plants
Total Present Ranked Second In
1. Nimbhahera Capacity North India For
White Cement
2. Mangrol 7.5 Million Tonnes Production.
Per Annum
3. Gotan
J.K. cement started its first project in 1975 with a capacity of 0.03 million tonnes per annum in
Nimbahera in Chittorgarh district. It started its operations from Rajasthan, as it has high
reserves of limestone.
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In year 1979 J.K. cement started its second line in Nimbahera plant. By this capacity of the
plant is raised to 0 .72 million tonnes per annum. After three years it again enhanced its
In 1988 this capacity reached to 1.54 million tonnes per annum with the installation of pre-
calciner in same plant. Upgradation in technology was done further which increased its
capacity to 3.3 million tonnes per annum with a power plant of 21 MW CPP.21
ASPIRATION STATEMENT
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2.13 Wonder Cement
WONDER CEMENT
EK PERFECT SHURUAAT
Fig-2.4a-Wonder cement
Corporate Profile
R.K marble group started this cement plant in Nimbahera, district Chittorgarh in Rajasthan.
R.K marble is a leading company famous for its marble and granite also. Wonder Cement is
leading player in the industry. Enriched with the heritage of R.K. Marble. Wonder cement
has high capacitive plant starting from 2.5 million tonnes per annum.
It has proved its capacity in quality which results in high demand of cement in India. It has
been a famous name in cement business within a very short span of time. Its aim is to achieve
a place in cement industry for its premium brand and quality of cement.
Vision
A brand associated with quality, trust and transparency named as wonder cement. Its aim is to
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Mission
Continuous way towards innovation, technology and process to create a sustainable business
in cement market.
WONDER CEMENT
Plant
Wonder cement started its first plant in Nimbahera, district Chittorgarh in Rajasthan. Its
capacity is 3.5 million tonnes per annum with 40 MW captive power plants at R.K Nagar.
Its
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ThyssenKrupp and Pfeizer, the world leading companies in cement technologies has a
technical collaboration with wonder cement and plant was set up with par standards of
technology.
To make cement plant dust-free, Wonder cement has high standards of filters and reverse air
bag house. Wonder cement will be having its second and third line which will increase its
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Shree Cement
Shree cement is a well known name among the cement manufacturers of India. It is known for
It is the first cement plant to get awarded by corporate sustainability report. Total cement
Brand Name
Shree Ultra
Bangur
Rockstrong
Beawar
Ras
Khuskhera
Jobner
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Suratgarh
597 MW
Mission
Shree cement takes care about its brand image, quality of work, customer satisfaction level
and innovation. All these make this a brand company of cement in India with a turnover of
5590.25 crore in 2012-13. Revenue from cement is 4544.31 crore. Overall a company which
has its various plants located with high grade limestone mines has satisfied dealers as well as
customers too.
Total employee strength of Shree cement is 4698 which means a diverse workforce in ndustry.
Retention level of Shree cement is 94%. This retention rate means its concern about employee
is very high and that makes it among the leading top cement manufacturers.
Average age of employees in Shree cement is 35.6 years. Shree cement management team
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Cement Production
Capacity Brand Name
Power Plant
Mission SHREE CEMENT Capacity
597 MW
To Achieve
High Standards
of Quality
Plant Locations in
Rajsthan Revenue from
Beawar Cement
Ras
Khuskhera 4544.31 Crore
Jobner
Suratgarh
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Shree cement identifies for his sustainability practice among the top three companies in
cement industries.
Shree cement has technologies which optimise the utilization of clinker with the help of
innovative projects.
Quality cement, customers and dealers satisfaction, high retention rate, innovative
technologies are its strengths which makes Shree cement a leader in cement industry.
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SWOT ANALYSIS OF MP BIRLA
Strengths:
Second largest in the world in terms of capacity: In India there are approximately 200 large
and 300 mini plants with installed capacity of 360 million tonnes.
Low cost of production: due to the easy availability of raw materials and cheap labour.
The packaging of the products is also better than all other brands.
Weakness:
The demand supply mismatch arising out of burst of new capacity additions (and not
majorly out of lack of normal demand growth) has constricted the capacity utilization levels
of the industry for the last two years in particular. Given the resilient nature of the
economy, India has been able to achieve reasonable GDP growth of 5 % in FY 12 which is
expected to increase to 6 % to 6.5 % in FY 13 is expected to translate into a demand growth
of 8% to 10% over the next few years. While demand for cement grew by 6.6% in FY 12,
there are already encouraging signs of a pick-up in demand with demand spurting by over
10% in the last quarter of FY 12. It is therefore expected capacity utilization to gradually
increase over the next 3 years with parity between supply and demand being restored by
then. While this being the overall scenario, there are still pockets of high demand growth in
certain regions of the country and Industry is already moving significant quantities of
cement to the Eastern markets as far as Assam & Nepal to optimize capacity utilization,
given the overall surplus.Industry's attempts in the short run will be towards striking an
optimum balance between volumes and profitability and achieve best results.
High Interest rates on housing: The re-pricing of the interest rates in the last four years
from 7% to 12% has resulted in the slowdown in residential property market.
Excess overcapacity can hurt margins, as well as prices.
Opportunities:
Strong growth of economy in the long run: Indian economy has been one of the stars of
global economics in the recent years
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Increase in infrastructure projects: Infrastructure accounts for 35% of cement consumption
in India. And with increase in government focus on infrastructure spending, such as roads,
highways and airports, the cement demand is likely to grow in future.
Growing middle class: There has been increase in the purchasing power of emerging
middle-class with rise in salaries and wages, which results in rising demand for better
quality of life that further necessitates infrastructure development and hence increases the
demand for cement.
Technological changes: The Cement industry has made tremendous strides in technological
up gradation and assimilation of latest technology. At present ninety three per cent of the
total capacity in the industry is based on modern and environment-friendly dry process
technology and only seven per cent of the capacity is based on old wet and semi-dry
process technology. The induction of advanced technology has helped the industry
immensely to conserve energy and fuel and to save materials substantially and hence
reduce the cost of production.
Government‘s emphasis on the Infrastructure.
Heavy demand of housing and other sectors in which Cement is to be treated as raw
material
Foreign Direct Investment in the Retail and other Sector may surge demand of Cement in
coming years.
Threats:
Imports from Pakistan affecting markets in Northern India: In 2007, 130000 tonnes in
2008, 173000 Metric tonnes of cement was exported to India. This was done to keep the
price of cement under check.
The ever-rising cost of energy in the form of petroleum products will also have its impact
on the power and transportation costs.
Effect of global recession on real estate: The real estate prices are stabilizing and facing
steady slowdown especially in metros. There are approximately twenty thousand completed
flats without occupancy in Ahmedabad. There has been drastic reduction in property prices
due to reduced demand and increased supply.
Demand-Supply gap, overcapacity: The capacity additions distort the demand-supply
equilibrium in the industry thereby affecting profitability. Increasing cost of production due
to increase in coal prices.
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MARKETING MIX OF MP BIRLA
Price
Promotion
Product
Place
PRODUCT:
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M P Birla Cement Perfect is a superior quality fly ash-based Portland Pozzolana Cement. It
conforms to the guidelines mentioned under the IS: 1489 (Part 1) and is manufactured in hi-
tech plants using cutting-edge technology. This cement is a product of extensive research
and innovation. It is designed in a way so that it gives the concrete structure ultimate
strength and durability. Moreover, it also ensures a reduced construction time. Right from
its manufacturing to packaging, we take extra care to ensure that we deliver you superior
quality products consistently. MP Birla Cement Perfect introduces Uniform Particle Size
Distribution (UPSD) Technology that produces cement with optimum fineness and fast
setting properties. The moisture-proof packing makes sure that your home gets only the
freshest cement. While setting , air, water, harmful chemicals, and CO2 cannot enter easily.
As a result you can build a structure with more strength and durability.
M P Birla Cement launched its new super-premium brand, Perfect Plus, simultaneously
from its Maihar (Madhya Pradesh) and Chanderia (Rajasthan) plants.
Perfect Plus increases the level of inter-bonding among cement particles, forming a 'dense
concrete matrix'. This makes the concrete strong and durable for the most vital sections of
the building – foundation, pillar and roofing.
Perfect Plus' high early strength of concrete helps remove the formwork (shuttering) fast
and ensures speedier progress of construction. The reduced permeability of concrete
automatically resists penetration of aggressive water and chemical. This protects steel
against chloride damage. Corrosion of reinforcing steel is the cause of concrete
deterioration, increasing the durability and life of the concrete structure.
Perfect Plus comes with the assurance of MP Birla Cement's on-site services. Dedicated
customer service is provided by expert civil engineers. Equipped with 'concrete testing
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vans', they guide and demonstrate product quality and provide tailor-made solutions to have
homes built perfectly strong and durable.
PRICE:
For all the commodities Prices are generally decided by demand supply gap, which largely
prevails in cement industry too. Cement as a product doesn‘t have much differentiation.
The cement provided by various companies is more or less the same, so there is not much
difference in the pricing of cement by various companies. Due to various advertising and
marketing strategy the cement companies have been able to categorize themselves into
three categories i.e. A, B & C. The price difference between various categories is Rs. 2-
Rs. 4 per bag.
A brand depending upon its brand equity can sell the cements at higher prices. Similar to
other Commodities cements too see a seasonal variations in their Demands so prices are
fixed considering those factors
Prices of cement are decided not only on the basis of manufacturing cost but it also includes
logistic cost & government levies. Cement companies are offering cement at FOR basis
(Supplying at doorstep), so logistic cost plays a vital role and in order to reduce the logistic
cost cement companies prefer to supply cement to nearby regions or they keep higher prices
in far off places. Cement price fluctuation are cyclic in nature.
PLACE:
In the marketing mix, the process of moving products from the producer to the intended user is
called place. In other words, it is how your product is bought and where it is bought. This
movement could be through a combination of intermediaries such as distributors, wholesalers
and retailers.
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In addition, a newer method is the internet which itself is a marketplace now.
Through the use of the right place, a company can increase sales and maintain these over a
longer period of time. In turn, this would mean a greater share of the market and increased
revenues and profits.
Correct placement is a vital activity that is focused on reaching the right target audience at
the right time. It focuses on where the business is located, where the target market is
placed, how best to connect these two, how to store goods in the interim and how to
eventually transport them.
A distribution channel can be defined as the activities and processes required to move a
product from the producer to the consumer. Also included in the channel are the
intermediaries that are involved in this movement in any capacity. These intermediaries are
third party companies that act as wholesalers, transporters, retailers and provide warehouse
facilities.
The first step to deciding the best distribution channel to use, a company needs to:
PROMOTION:
Promotion in marketing is generally the fourth and final P of the marketing mix. This is
because before promotions, the product, price and place (distribution) should be ready.
Promotions in marketing generally use integrated marketing communication. Integrated
marketing communication is the use of different media vehicles to get the message of the
brand from the company to the consumer.
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Recently MP Birla Cement Perfect Plus was launched by the MP Birla Corporation. It is the
more updated version of Perfect Cement.
PERFECT PLUS is a premium quality specially engineered PPC Cement from the house of
MP Birla Cement for specific applications of Foundation, Pillar & Roofing works. The
product technology has multiple advantages in improving performance & life of the
concrete. The highest quality standards have unique characteristics to make high
performance superior grade concrete.
For creating awareness about this the company did promotional activities, in which the
company gave us chance to learn some promotional activities by making us the part of
those activities.
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EXPERIENTIAL LEARNING
Job Description
The job which I was allotted was of Marketing & Sales where I was allotted the task that I
have to go the Dealers & Retailers of cement because it was b2b business so I had to go to
those customers and tell about the product of our company and tell them why our product is
best from other brands product.
My job was to promote the brand, collecting the information of dealers and retailers which
was beneficial for company.
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EXPERIENCE GAINED
• Time Management.
• Learn from the root mean learn real information of the company at the
beginning.
• Should not depend on anyone, work independently & loyal for the work.
• The most important thing I learn being friendly with everyone and keep handle
your mind in every situation.
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THOUGHTS VIEWS AND COMMENTS ABOUT THE COMPANY
The company is focusing on the customer‘s attention that is affected by changes in brand as
well as competitors. MP Birla Cement is still known as Reliance Cement among normal
people.
Company focuses on quality product and that‘s why its price is little bit high in front of
some brands and this is a reason some customers are not buying this cement. In market a
middle class person sometimes ignores the quality thing and buys the cement which is low
in price so that he can afford that. Although the company has a good image amongst the
customers, people trust the cement quality, but price is the reason that the small companies
are also in competition.
The company is not focused on its dealers and retailers. Some dealers are not satisfied with
the facilities that are being provided by the company and the retailers have some problem
related to price.
The company produces good quality cement and this is the reason the company has good
reputation as well as good brand image in market. The company updated the PERFECT
CEMENT and named it PERFECT PLUS. It has more good qualities and features.
Company always works on CRM.
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SUGGESTIONS FOR IMPROVEMENT
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ABOUT PROJECT
The topic was assigned to me for my entire internship named, - ―Comparative study of MP
Birla perfect cement with other competitive brand with respect to Marketing Mix in
Varanasi area‖
MARKETING MIX
Marketing Mix is about putting the right product or a combination thereof in the place, at the right
time, and at the right price. The difficult part is doing this well, as you need to know every aspect
of your business plan.
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A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in the 1960s. This
classification has been used throughout the world. Business schools teach this concept in basic
marketing classes.
The marketing 4Ps are also the foundation of the idea of marketing mix.
PRODUCT:
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A product is an item that is built or produced to satisfy the needs of a certain group of people. The
product can be intangible or tangible as it can be in the form of services or goods.
You must ensure to have the right type of product that is in demand for your market. So during the
product development phase, the marketer must do an extensive research on the life cycle of the
product that they are creating.
A product has a certain life cycle that includes the growth phase, the maturity phase, and the sales
decline phase. It is important for marketers to reinvent their products to stimulate more demand
once it reaches the sales decline phase.
Marketers must also create the right product mix. It may be wise to expand your current product
mix by diversifying and increasing the depth of your product line.
All in all, marketers must ask themselves the question ―what can I do to offer a better product to
this group of people than my competitors‖.
In developing the right product, you have to answer the following questions:
What features must the product have to meet the client‘s needs?
Are you creating features that are not needed by the client?
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PRICE:
The price of the product is basically the amount that a customer pays for to enjoy it. Price is a very
important component of the marketing mix definition.
It is also a very important component of a marketing plan as it determines your firm‘s profit and
survival. Adjusting the price of the product has a big impact on the entire marketing strategy as
well as greatly affecting the sales and demand of the product.
This is inherently a touchy area though. If a company is new to the market and has not made a
name for themselves yet, it is unlikely that your target market will be willing to pay a high price.
Although they may be willing in the future to hand over large sums of money, it is inevitably
harder to get them to do so during the birth of a business.
Pricing always help shape the perception of your product in consumers eyes. Always remember
that a low price usually means an inferior good in the consumers eyes as they compare your good
to a competitor.
Consequently, prices too high will make the costs outweigh the benefits in customers eyes, and
they will therefore value their money over your product. Be sure to examine competitors pricing
and price accordingly.
When setting the product‘s price, marketers should consider the perceived value that the product
offers. There are three major pricing strategies, and these are:
Neutral pricing
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Market penetration pricing is a pricing strategy that sets a low initial price for a product. The goal
is to quickly attract new customers based on the low cost. The strategy is most effective for
increasing market share and sales volume while discouraging competition.
Best Use
Penetration pricing is most appropriate when demand for a new product is expected to be high and
the product can be easily copied by many competitors. Setting the price low initially discourages
competition from entering the market. It is also an appropriate strategy to use when you intend to
become the market standard, marginalizing the competition. Before implementing a penetration
pricing strategy, a supplier should be sure that it has sufficient production and distribution in place
to meet the demand.
Advantages
In markets with multiple sales or high repeat business, penetration pricing creates an advantage for
firms that can sell products at lower prices than the competition. Having high initial sales usually
results in a lower per-unit cost, allowing an acceptable profit margin while keeping competition at
bay. It creates goodwill for the company if customers perceive that they are purchasing a high-
quality product at a fair price.
Disadvantages
If sales fall short of projected goals, the company could end up with a large inventory and higher-
than-expected costs. Additionally, sales could suffer if customers perceive the product as too
cheap, and the quality brand image could be damaged. Brands that are perceived as "cheap" may
have trouble competing with higher-priced competition. Another significant risk is that the
competition will follow suit, lowering its own prices and creating a price war.
Skimming pricing is used when a product, which is new in the market or just launched, is sold at a
relatively high price because of its uniqueness, benefits to customers or its current Wow factor.
However, slowly but surely when the product gets older in the market, then the price is dropped
and the product is brought at competitive pricing.
Skimming price is mostly used for technological products where the product demand is not
consistent. The typical product which is launched with a skimming price strategy is unique to the
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market, has customers who are ready to pay a premium for the product, and is far ahead from the
competition.
Furthermore, due to the high price, the correct positioning is obtained for the product which helps
in reaching the right target audience. Remember that premium customers want to be unique and
they want products which are status symbols. All these factors are achieved with the use of
skimming price strategy. Thus, skimming price is a smart strategy for smart marketers. And here
on we take an example of the smartest marketer ever – Apple.
When IPhone 4s was introduced in the market 4 years ago, its price was huge. Few people could
actually afford an IPhone. With the passing of time, prices of the IPhone 4s have decreased
gradually, such that nowadays many people can afford an iPhone. A few days ago IPhone 7 has
been launched in the market. Before that Iphone 6 was launched.
Both these phones sold in large quantities and at a very high price. In fact, after long debates and
reviews regarding the quality and the increased price of the phone, people decided to wait until
they will be able to buy the Iphone 7. Presumably, the price of the current IPhone 7 will decrease
drastically in the next year.
The strategy that Apple is using is known as the skimming pricing strategy. And Apple is only just
an example of one of the companies performing skimming pricing, but the list can go on and on,
especially in the electronics industry.
As it can be understood from the Iphone example, the strategy that Apple is using consists keeping
the highest initial price that the first customers will pay and as soon as the demand of the first
customers is satisfied (commonly known as innovators group), the company will lower down the
prices over time.
But if we were to think in matter of perspective, then you wouldn‘t buy an IPhone 4 now because it
will be inferior to the current Iphone. This can be one big disadvantage of the skimming pricing
strategy, as the companies can develop negative publicity if they lower the price too fast and
without significant product changes.
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The initial purchasers can feel frustrated and ripped off by the changes in prices for the same
product that they have purchased at higher costs. Basically the ones that are initially targeted are
the early adopters, and when product reaches into the maturity stage prices drop in order to target
the more price sensitive segments. The word-of-mouth is also a useful part, as the early adopter
will also play the role of spreading the news and convince relatives and friends to purchase the
respective product.
However, depending on the barriers to enter the market, in the long-run, profitability will decrease
as new entrants are going to approach the same market, lowering the prices. A quite good example
can involve the Chinese companies which can come up in a short notice with a cheaper copy of the
IPhone 6.
Neutral Pricing
The neutral pricing strategy is generally a default strategy. In effect, this strategy minimizes the
role of pricing in the marketing mix, not utilizing price to gain or restrict market share. A firm may
select this strategy when it knows its service, promotion, or distribution offers other more powerful
advantages to the customer. The neutral price does not mean a price in between that of competitors,
but in relationship to the firm's value. Apple laptop computers and Sony televisions, for example,
are consistently priced above competitor levels, but because they offer such excellent value, the
market still perceives the price as neutral.
Many new boutique law firms and advertising agencies have been launched in recent years
specifically to take advantage of the discontent over hourly billing. These firms are offering a
broad array of pricing strategies, from fixed prices to risk-sharing plans based on creating results.
The problem is many of them are positioning themselves as ―cheaper alternatives‖ to their larger
competitors, since they have smaller overheads — in effect, justifying price based on costs, not
value. Some have selected a penetration pricing strategy to gain acceptance among customers.
This is a strategic mistake. If these firms are truly offering new and innovative pricing policies,
then at the least they should be utilizing aneutral pricing strategy. An enormous component of their
value proposition lies in the fact that they are aligning the incentives of the firm with that of its
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customers, which is an enormously valuable offering in and of itself. It is folly to provide a cheaper
price simply because your firm has less fixed overhead. What matters is the value you can create,
and if you have remarkable intellectual capital — especially human capital — then offering it for a
lower price is to sacrifice an enormous amount of profits. A case could also be made that these
firms should be using a skim strategy to send the message to those customers frustrated with the
billable hour and willing to pay a premium for certainty in pricing.
Here are some of the important questions that you should ask yourself when you are setting the
product price:
Do you think that the slight price decrease could significantly increase your market share?
Can the current price of the product keep up with the price of the product‘s competitors?
PLACE:
Placement or distribution is a very important part of the product mix definition. You have to
position and distribute the product in a place that is accessible to potential buyers.
This comes with a deep understanding of your target market. Understand them inside out and you
will discover the most efficient positioning and distribution channels that directly speak with your
market.
Intensive distribution
Exclusive distribution
Selective distribution
Franchising
Intensive Distribution
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Intensive distribution mainly means distribution on a large-scale and displaying the product in as
many ways and places as possible so that the customer sells in high volume due to large scale
distribution. The chosen level of distribution generally depends on different factors such as the
production capacity, the size of the target market, pricing and promotion policies as well as the
seasonal requirement of the product by the end user.
The objective of intensive distribution is providing a vast coverage of the existing market by using
all available outlets. Intensive distribution is most commonly used when the product is a very
common product in the market and there are many different alternatives available. So, if the
customer does not buy your brand, he will buy someone else‘s. Hence the complete push is
towards vast distribution of the product due to which the intensive distribution strategyis used.
As total sales are directly linked to the number of outlets displaying the products (example –
cigarettes, alcoholic products, soft drinks, soaps etc), intensive distribution is heavily applied in
product driven companies like FMCG as well as consumer durable.
This strategy covers all the possible outlets and display points that can distribute and sell the
products. Hence, for this kind of products, the key to success relies on the distribution strategy. The
easier it is to find the product for the customer, the more profit the company will get in the long
run.
Any possible outlet where the customer is expected to visit is also an outlet for the distribution of
the respective product. For example – it is not necessary that outlets be strictly physical
showrooms. Even E-commerce is an outlet because end customers can buy products online as well.
Likewise, these products are available in the restaurants or in five star hotels as well as being
available on countless kiosks, sweet shops, tea shops and so on.
In other terms, an intensive distribution strategy is a plan that places products in many different
locations for distribution. Products that are used every day and replaced often may be found in
dozens of different retail outlets in any given area.
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A customer seldom has to go out of his or her own way to find her favorite brand of toothpaste
because of the intensive distribution that is in place by companies like HUL, P&G, Colgate and
others. Other common products that benefit from intensive distribution include soap, deodorant,
laundry, detergent, feminine hygiene products, soft drinks and cigarettes.
The company that produces the product on the first place benefits greatly from intensive
distribution. This is because they get the first mover advantage and can place the product before
anyone else. It can easily become the recipient of brand loyalty.
For the retailers, the benefit of keeping more brands is because they get the reputation of carrying
more items in their display and hence, more customers are bound to visit the retailers. It
increases customer satisfaction and allows the retailer to establish a positive reputation with
producers and customers alike.
However, as revenue generation represents one of the advantages of this strategy, at the same time
it can represent a disadvantage, as sales vary by retail location, and hence your exposure may
become large in an area where sales are not high, thereby causing losses. But overall, you tend to
profit when using intensive distribution strategy.
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Exclusive Distribution
Rolex watches wants a distributor in region A. Now, Rolex knows that it cannot have showrooms
everywhere in Region A because it will dilute the brand equity. So ROLEX appoints an exclusive
distributor for Region A. This exclusive distributor starts his own exclusive ROLEX shops and
also sells the brand through only the cream outlets of Region A.
Now, Rolex is satisfied with this concept of exclusive distribution and repeats it when it wants to
enter Region B. Rolex might use the same distributor as Region A or it might give the exclusive
distribution to another dealer. However, because Rolex does not want to dilute the brand equity, it
will not enter in the region directly and won‘t hire too many distributors so that it has ―premium‖
and ―exclusive‖ positioning of the brand.
A similar model is observed in many different industries. Even in the industrial machinery
segment, many a times exclusive distribution is given to distributors who are good at selling and
have good relations in the local market and who can focus on selling the brand more than the
competitors.
Such exclusive distributors might cover a large region or a small region. Nonetheless, within their
appointed territory, no one else but them can distribute the product for the brand they have tied up
with. These distributors can in turn bill the product to other smaller distributors, wholesalers and
retail shops.
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Focus – Exclusive distribution helps in keeping the focus simple for the firm. The brand need not
worry of losing its own distributor to the competitor. The brand has a trustworthy alliance and
hence it is more focused on winning over competition rather than deciding on its distribution base.
Control – Because the exclusive distributor is himself dependent on the company, the company is
very much in control. Besides distribution, the company can concentrate on marketing and
advertising activities to increase the pull of the brand.
Availability – A key characteristic of Exclusive distributors is that they are financially capable of
stocking huge amount of inventory. As a result, material is easily reachable to retailers and
wholesalers and thereby distribution is increased.
Financial advantages for company – The brand‘s cash crunch is averted as distributor is expected
to have good cash in hand and is expected to carry the inventory and provide payments. As a result,
the risk is mainly on distributor rather than the company and company‘s finances are safe. This is
off course if the distributor they have chosen is ethical and financially stable.
Penetration becomes easier for the company – Because the company does not need to cover its
own back and does not need to spend manpower in finding, convincing and maintaining the
distribution channel, the company can completely concentrate on building the brand and doing
promotional activities so that its penetration in the market becomes much better.
Trust – As can be seen in the advantages above, we mentioned the word ―Trust‖ several times.
There is a reason for this. Your business will be successful in distribution only if the exclusive
distributor is trustworthy. Otherwise, he might take marketing and advertising budgets from use
and use it to fill his own pockets rather than helping the brand rise.
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Dependency – If your brand is new or is not as popular as a Rolex or a BMW, then you will find
that there is a dependency created on the exclusive distributor. Brands like Rolex and BMW can
sell regardless of what type of distributor is selling them. Besides that, known brands have a line of
distributors ready to tie up with the company. However, unknown brands becomes highly
dependent on their exclusive distributors and will have to do as the distributor advices.
Disputes cause huge losses – When considering regular distribution, a dispute with one distributor
means that the single distributor wont perform but the distribution will go one through some other
distributor.
However, if there is a dispute with your exclusive distributor then you might lose the whole
market. This exclusive distributor might have very good relations in local market so it becomes
difficult for another distributor to create the same relations. Thus, in exclusive distribution, if there
is a major dispute then it means huge losses might be incurred, not only in terms of money but in
terms of time lost too.
Choosing the right exclusive distributor – It is very important that you choose the right
distributor who is well aligned with your brand and is aggressive with regards to the sale and
marketing of your brand. Otherwise, you might miss chance of tying up with even better
distributors because your exclusive ones are not ready to budge.
As can be seen, there are several advantages to exclusive distribution and till date there are many
companies which utilize exclusive distribution to good affect. However, it must be said that this
type of distribution is good upto the point that the product is in average demand. Once the product
has mass demand, then exclusive distribution becomes difficult and you enter different types of
agreements with different distributors.
Examples of companies which use exclusive distribution – Samsung, Apple, Gucci, Lamborghini,
Mercedes, BMW etc.
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PROMOTION:
Promotion is a very important component of marketing as it can boost brand recognition and sales.
Promotion is comprised of various elements like:
Sales Organization
Public Relations
Advertising
Sales Promotion
Advertising typically covers communication methods that are paid for like television
advertisements, radio commercials, print media, and internet advertisements. In contemporary
times, there seems to be a shift in focus offline to the online world.
Public relations, on the other hand, are communications that are typically not paid for. This
includes press releases, exhibitions, sponsorship deals, seminars, conferences, and events.
Word of mouth is also a type of product promotion. Word of mouth is an informal communication
about the benefits of the product by satisfied customers and ordinary individuals. The sales staff
plays a very important role in public relations and word of mouth.
It is important to not take this literally. Word of mouth can also circulate on the internet. Harnessed
effectively and it has the potential to be one of the most valuable assets you have in boosting your
profits online. An extremely good example of this is online social media and managing a firm's
online social media presence.
In creating an effective product promotion strategy, you need to answer the following questions:
Will you reach your potential audience and buyers through television ads?
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MARKETING MIX: 4C‟s
The 4Cs marketing model was developed by Robert F. Lauterborn in 1990. It is a modification of
the 4Ps model. It is not a basic part of the marketing mix definition, but rather an extension. Here
are the components of this marketing model:
Cost – According to Lauterborn, price is not the only cost incurred when purchasing a
product. Cost of conscience or opportunity cost is also part of the cost of product
ownership.
Consumer Wants and Needs – A company should only sell a product that addresses
consumer demand. So, marketers and business researchers should carefully study the
consumer wants and needs.
Communication – According to Lauterborn, ―promotion‖ is manipulative while
communication is ―cooperative‖. Marketers should aim to create an open dialogue with
potential clients based on their needs and wants.
Convenience – The product should be readily available to the consumers. Marketers should
strategically place the products in several visible distribution point
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Building a home is not easy. It takes years of meticulous planning and calculation.
Married couples often compromise on their holidays, their comforts and luxuries, to save
enough money to build a house. They find joy in the little pleasures of life. Their mutual
dream of a home sustains them through the course of their married life. This TVC
captures a slice of their lives, and promotes MP Birla Cement as a brand that understands
their needs. The voiceover, along with the background score, makes the narrativemore
endearing and poignant. M P Birla is a group which is known for its ―heart and
strength‖. The ―on-site expert services‖ provided by MP Birla Cement strengthens the
bond that they share with their customers. The new TVC conveys to the home builders
that M P Birla Cement does not stop at supplying the best cement to build a strong and
durable home, but the brand is a guide and a friend who is there to empower them.
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OUTLINE OF THE PROJECT
The project was very helpful for us because with the help of this task we understood the
competition in cement business. Under this project we understand that how the cement
is being made and what are the process are involved to make it more effective and rich
in quality. Our project was fully dependent upon the field work because under it we have
to visit or follow up 10-12 dealers and retailers shop on the daily basis to collect the
proper response and feedback from them. Further, we need to put daily data like name
of the person, firm, contact no. and different responses given by the people. The data
help us to prepare our survey report and it also helps company to collect the information
of a year. Our project questionnaire consists of 12 questions and the total sample
size was 100.
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OBJECTIVES OF THE PROJECT
To find out the market share of MP Birla Perfect Cement in Varanasi market.
To understand the effectiveness of various sales promotion activities for cement.
To know the consumer buying behavior.
To analyze the impact of price on consumer.
To know why dealers are not dealing in MP Birla cement.
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SCOPE OF THE PROJECT
The study undertaken and data collected is useful for the future planning in terms of
strategy formulation for new product launch of the company.
The study is further important to the organization in tuning the company strategies as
per market expectations.
The study is helpful to the organization for understanding current market situations,
i.e. strategies and policies adopted by competitor.
Company should do few more retailers meet in a year.
Company should provide free promotional tools of its product to every retailer.
Company should conduct regular meetings with retailers, dealers, & builders to know
the problem facing by them directly.
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CONTRIBUTION OF THE PROJECT
This project will provide the full details of any dealers and retailers in cement
business in Varanasi.
This project will show the accurate analysis of the company‘s cement demand
This project will conclude and suggest the better way to increase the sale of the
product
This project shows the feedbackof the different dealers and retailers of MP
BIRLA PERFECTCement
This project will show the customers perception about Perfect Plus Brand.
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LITERATURE REVIEW
Retailing includes all the activities involved in selling goods or services directly to final
consumers for personal, non-business use. A retailer store is any business enterprise
whose sales volume comes primarily from retailing.
-Philip Kotler
Retail is the sale of goods to end user, not for resale, but for use and consumption by the
purchaser. Retail involves the sale of merchandise from a single point of purchase,
directly to a customer who intends to use that product. The single point of purchase could
be a brick-and- mortar retail store, an Internet Shopping Website, a catalogue, or even a
mobile phone.
The retail transaction is at the end of the manufacturers sell large quantities of products to
retailers, and retailers attempt to sell those same quantities of products to customers.
-Barbara Farfan
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In the research titled ―Retailing in India – A Historical Perspective‖ Dr.Mandeep Singh
mentioned that retailing is the largest private industry in India and second largest employer
after agriculture. The sector contributions to around 10 % of GDP and 6-7% of employment
with over 15 million retail outlets, India has the highest retail outlet density in the world. The
retailing sector in India significant transformation in the past 10 years. Traditionally, Indian
retail sector has been characterized by the presence of a large number of small- unorganized
retailers. However, in the past decade, there has been the development of organized retailing,
which has encouraged large private sector players to invest in this sector.
The research concludes by standing that the retail landscape of the country in charging at
a rapid pace with malls and multiplexes mushrooming in all major cities. In fact, having
reached a sustained capacity at Tier-I locations, the organized retail revolution is now
percolating to Tier-II & Tier- III cities. Retail has clearly been witnessing a
transformation from the neighbourhood-shopping to the concept of malls and family
entertainment centres.
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The goal of customer experience management is to move customer from satisfied to loyal
and then from loyal to advocate. This research focuses on the role of macro factors in the
retail environment and how they can shape customer experience &behaviors. Several
ways (Brand, Price, Promotion, Supply Chain Management, Location, Advertising,
Packaging, labelling , Service Mix & Atmosphere) to deliver a superior customer
experience are identified which should result in higher customer satisfaction, more
frequent shopping visits, larger wallet shares, and higher profit.
The research provides 10 best ways to make the successful ―customer experience
management‖ are,
Providing branded training to ensure that employees understand the brand story
Research Methodology describes how the research study was undertaken. This includes
the specifications of a source of data, research design and method of data collection, the
sampling method and the tools used. Research Methodology is the way to find out the
result of a given problem on specific matter or problem that is also referred as research
problem. In methodology, researcher uses different criteria for solving/searching the
given research problem. Different sources are different type of methods for solving the
problem.
The design of any research project requires considerable attention to the research
methods and the proposed data analysis. Within this section, we have attempted to
provide some information about how to produce a research design for the study.
Descriptive research can be explained as a statement of affairs as they are at present with the
researcher having no control over variable. Moreover, ―descriptive studies may be characterised
as simply the attempt to determine, describe or identify what is, while analytical research
attempts to establish why it is that way or how it came to be‖.
Descriptive research is ―aimed at casting light on current issues or problems through a process of
data collection that enables them to describe the situation more completely than was possible
without employing this method.‖.
In its essence, descriptive studies are used to describe various aspects of the phenomenon. In its
popular format, descriptive research is used to describe characteristics and/or behaviour of
sample population.
An important characteristic of descriptive research relates to the fact that while descriptive
research can employ a number of variables, only one variable is required to conduct a descriptive
study. Three main purposes of descriptive studies can be explained as describing, explaining and
validating research findings.
Descriptive studies are closely associated with observational studies, but they are not limited
with observation data collection method Case Studies and Surveys can also be specified as
popular data collection methods used with descriptive studies.
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Advantages of Descriptive Research
SAMPLE DESIGN:
Geographical Area :
The study was conducted in Varanasi
Duration of Internship:
The duration of the internship was about 45 days.
Population:
Population for this research is set of retailers who are dealing with cement in Varanasi.
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Sample Units:
The sampling units used for this research are those who are dealing with cement, bricks,
chip stones and sand.
Sample Size:
A total of 100 Retailers & Dealers were interviewed for this study.
Sampling Method:
The sampling method used for this study is Convenience Sampling, which is selected
according to the ease and convenience.
SOURCE OF DATA
• Primary Data:The data collected in both ways during the study through structured
questionnaire and personal interview with retailers.
• Secondary Data: Here the secondary data is collected from the company profile,
industry profile & official websites, news reports & other sources.
Research Instrument -
A research instrument used for data collecting is a questionnaire & interview schedule.
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Interview Schedule– The interview method of collecting data involves presentation of
oral-verbal stimuli and reply in terms of oral verbal responses. Then the responses are
filed up in the questionnaire, for further analysis.
Statistical Tools, Used for Analysis: The data analysis is done through various
statistical tools. The statistical analysis is useful for drawing inference from the collected
information.
1. Simple
percentage
analysis
2. Bar Diagrams
Pie Charts
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DATA ANALYSIS AND DATA INTERPRETATION
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INTERPRETATION
From above we can interpret that ACC has captured a large section of market since it is
old and trusted company among the dealers/retailers whereas MP Birla cement is new in
the market and is less popular among the customers.
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INTERPRETATION
Pricing is the main factor that affects the buying decision of the customers where as the brand
name and its quality are also important.
INTERPRETATION
The main customers of the cement are the contractors (46%) and after that there are builders
(29%).
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(Q.4) On the scale of 1 to 5 where 1 is highly dissatisfied and 5 is highly satisfied how is the
product quality of MP Birla?
1 0
2 1
3 10
4 30
5 59
99
INTERPRETATION
The product satisfaction rate with respect to quality for MP Birla cement is very high.
Ultratech 30
ACC 41
MP Birla 19
Mycem 10
100
INTERPRETATION
The sales of ACC and Ultratech is more than MP Birla cement according to the dealers
perception.
Yes 72
No 28
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INTERPRETATION
According to my survey most people of Varanasi are price sensitive in perception of
dealers.
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(Q.7) Is MP Birla cement worth the price?
1. Yes
2. No
Yes 86
No 14
INTERPRETATION
According to my survey 86% of the people agreed that MP Birla cement is worth the
price and rest 14% think that MP Birla cement is not worth the price.
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(Q.8) According to you which type of media is more effective for promotion of the new cement
product?
a) Newspaper
b) TV advertisement
c) Campaign
d) Hoarding
e) Others
Newspaper 29
TV advertisement 45
Campaign 10
Hoarding 15
Others 1
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INTERPRETATION
According to my survey, 45% of the people think that TV advertisement is the best
media for promoting the new cement product, 29% think it’s newspaper
, 30% think it should be campaigns and only 1% thinks it should be through social media.
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(Q.9)Which type of brand outlet are you currently running?
a) Exclusive
b) Multi-brand
Exclusive 64
Multi-brand 36
INTERPRETATION
According to my survey approx 64% of the cement dealers of Varanasi area run exclusive
cement outlet and rest 36% run multi-brand outlets.
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(Q.10)What is the reason for not being a MP Birla cement customer?
a) Lack of demand in region
b) Lack of awareness
c) Due to price
d) Others
e) I am a MP Birla Cement dealer.
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INTERPRETATION
According to my survey approx 40% of the dealers do not sale MP Birla cement due to price
issue, 33% do not sale it because of the lack of demand and only 13% are there who sale MP
Birla cement.
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INTERPRETATION
According to my survey most of the dealers of cement in Varanasi area suggest company to
improve their pricing and promotion strategy.
Yes, Sometimes. 22
No 78
INTERPRETATION
109
According to my survey 22% of the dealers/retailers have faced problems in supply chain and
rest 78% says they don‘t.
(Q.13) Do people have any complaints regarding the MP Birla Cement product?
a) Yes
b) No
No 70
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INTERPRETATION
During my survey I found out that approx 71% of the dealers get no complaints regarding
product and rest 19% gets it.
FINDINGS
1. MP Birla Perfect Cement has 4th largest share whereas ACC is on first position with
approx. 45% share.
2. Most of the buyers are price sensitive.
3. TV advertisement is the major tool for sales promotion according to dealers.
4. The main buyers of the cement are the contractors.
5. There is high satisfaction regarding the quality of the MP Birla Cement product.
6. Major reason for not being a MP Birla cement dealer is the lack of demand in the
region and lack of awareness in the region.
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CONCLUSION
In the early days the companies used to manufacture the goods according to the market
needs, but the today business model as changed to customers‘ needs. Today‘s market is
much more consumer driven and the goods have to be manufactured according to the
needs of the consumer if the producers want to make profit. The consumer has become
the king and his needs bear the greatest importance. Today, companies have realized the
importance of segmenting, targeting and positioning of the goods as the essence of
success to their long lasting existence.
As per retailers perception MP Birla Perfect has a good brand image in the market. As the
company is going to launch the new product in the market, we concluded from the survey
taken place in Varanasi. This present scenario of cut throat competition evidenced by the
advent of globalization, the corporate world has learned very quickly that differentiating
their products from that of their competitors is of prime importance.
From the result of this survey, we can conclude that MP Birla Perfect Plus is going to
succeed in the market, if the company is able to consider the suggestions from the
retailers such as promotion and more awareness as new product need to promote
aggressively through all the media into the market, then only customer will able to
recognize the product.
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LIMITATIONS OF THE STUDY
1. Field selected was not the prime market for Birla cements.
2. Lack of cooperation from the retailers in regard to giving interview.
3. It was found in some cases dealers showed inclination towards certain brands
which gave them more margins when compared to others.
4. It was experienced during the survey that it was difficult to convince or make the
retailers and dealers understand the important of the project.
5. As the retailers and dealers thought that it was unwise for them to give their
details of business as they feared competitors would take advantage.
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Appendix
(Q.4) On the scale of 1 to 5 where 1 is highly dissatisfied and 5 is highly satisfied how is the
product quality of MP Birla?
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(Q.5) Which is the most selling brand according to you?
a) Ultratech
b) ACC
c) MP Birla
d) Jaypee
(Q.8) According to you which type of media is more effective for promotion of the new cement
product?
a) Newspaper
b) TV advertisement
c) Campaign
d) Hoarding
e) Others
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(Q.12) Do you face problems in the supply of the MP Birla Cement ?
a) Yes
b) No.
(Q.13) Do people have any complaints regarding the MP Birla Cement product?
a) Yes
b) No
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BIBLIOGRAPHY
BOOKS:-
New Delhi
2ndEdition-1995
New Delhi-110001
8thEdition -1995
WEBSITE:-
www.mpbirla.com
www.google.com
www.quickmba.com
www.indianexpress.com
https://www.mbaskool.com/
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