101537253 brand positioning of prism cement

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Indore Indira Business

SchoolDAVV UNIVERSITY INDORE (M.P.)

A

SUMMER TRAINING REPORT

ON

Market Position of Prism Cement

BY

Ujjwal Singh

MBA 3rd SEM.

UNDER THE GUIDANCE OF

Mr. Jalaj Shrivastava


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A PROJECT REPORT SUBMITTED IN PARTIAL FULLFILMENT OF THE

REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS AND

ADMINISTRATION OF

DECLARATION OF STUDENT

I UJJWAL SINGH HERE BY DECLARE THAT THE PROJECT

REPORT ENTITLED MARKET POSITION OF PRISM CEMENT

LTD. SUBMITTED BY ME IN PARTIAL FULLFILMENT OF THE

REQUIREMENT FOR THE M. B. A. TO DAVV UNIVERSITY

INDORE, IS MY OWN WORK AND IT IS NOT SUBMITTED TO

ANY OTHER INSTITUTION OR PUBLISHED ANY WHERE

BEFORE.

WITH REGARDS,

PLACE: SATNA(M. P.)

DATE:

UJJWAL SINGH


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CERTIFICATE

This is to certify that Project Report title MARKET SURVEY OF

SALES PROMOTION IN AREA OF SATNA REGION FOR PRISM

CEMENT LTD. is a bonafide work carried out by Prakash Pandey of

MBA of B.U. Bhopal in the year 2009-2010 for fulfillment of MBA

degree of university of B.U.. He has worked under our guidance

and direction.

With regards,

Place: Satna (M.P.)

Date:


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Acknowledgement

Interdependence is a higher value than independence Knowledge

in itself is a continuous process. Nevertheless, a day getting a

practical knowledge is an important thing & most important thing

is the support, guidance, motivation and inspiration provided by

the different persons of different sections. At this moment of oursubstantial enhancement, I find no words to express my gratitude

towards those who helped me directly or indirectly in making this

report successful. I am indebted & thankful for the assistance

received from various individuals So I think all those people who

contributed to this project from the very beginning till its

successful completion. This project report could not have been

completed guidance of our Prof Jayesh Tiwari . I extended to my

sincere gratitude to Mr. Jalaj Shrivastava GM-Sales of the PrismCement Limited of Satna warehouse. For his constant and able of

guidance has been instrumental in large measure on the success

of project. He suggest this study, and it has been great

opportunity to learn about a subject of which had no previous

knowledge for this, I am very grateful to him. I also extend my

warmest thanks to Mr. Ravi Singh whose constant encouragement

and guidance was immense help for being on track through the

project. Last but not least I would like to thanks my faculties &

colleagues who guided me for project completion.


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Table of Contents

Project Overview

1. Introduction

2. Objective

3. Research Methodology

4. Company Profile

5. Theoretical Background

6. Conclusion

7. Suggestions

8. Limitation

9. Bibliography


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INTRODUCTION

Cement is a binder which sets and hardens independently, andcan bind other materials together. The word "cement" traces tothe Romans, who used the term "opus caementicium" to describemasonry which resembled concrete and was made from crushedrock with burnt lime as binder. Cement is an essential componentof infrastructure development and most important input ofconstruction industry, particularly in the governmentsinfrastructure and housing programs, which are necessary for thecountrys socioeconomic growth and development.

Cement ranks second in volume among the industrial productsmanufactured in the world. And it is the most widely used man-made product and second only to water as worlds most heavilyconsumed substance. Cement is poly-phased inorganic compoundof complex nature formed by burning of calcareous andargillaceous raw materials as a binding material. Cement is usedas a binding material in various types of civil constructions.

Earlier, clay or lime was used for binding materials together. Itsproperties include-

Low cost, high performance

Binder with almost any hard material

Building block

Gain strength progressively with ageing

Substitutes with steel, polyester, epoxy-resin, plasticizers

With advancement in manufacturing technology, today cement is

a completely technical product. Various types of grades of cement

are being manufactured to satisfy different needs of the

construction industry. However, cement is still considered as a


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non-technical product and used in a traditional and often

unscientific manner. Compressive strength is the important

known parameter for approving the quality of cement. Strength of

cement is also affected by water-cement ratio, grading of

aggregates, methods of preparation, methods of compaction,curing conditions and atmospheric conditions.

Cement is the preferred building material in India. It is usedextensively in household and industrial construction. Earlier,government sector used to consume over 50% of the totalcement sold in India, but in the last decade, its share has comedown to 35%. Rural areas consume less than 23% of the totalcement. Availability of cheaper building materials for non-permanent structures affects the rural demand.

The Indian Cement industry is the second largest cementproducer in the world. The industry has undergone rapidtechnological upgradation and vibrant growth during the last twodecades, and some of the plants can be compared in everyrespect with the best operating plants in the world. The industryis highly energy intensive and the energy bill in some of the

plants is as high as 60% of cement manufacturing cost. Althoughthe newer plants are equipped with the latest state-of-the-artequipment, there exists substantial scope for reduction in energyconsumption in many of the older plants adopting various energyconservation measures.

There are around 11 different types of cement that are beingproduced in India. The production of all these cement varieties isaccording to the specifications of the BIS (Bureau of Indian

Standards). Some of the various types of cement produced inIndia are:

Clinker Cement

Ordinary Portland Cement (OPC)

Portland Blast Furnace Slag Cement (PSC)


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Portland Pozzolana Cement (PPC)

Rapid Hardening Portland Cement

Oil Well Cement

White Cement

Sulphate Resisting Portland cement

The production of PPC and PSC are based on Fly Ash and Blast

furnace slag, the waste product of Thermal Power Plant and Steel

Plant respectively.

Today it is fashionable to talk about the new economy. We hear that the

business are operating in globalize economy; things are moving at a

nanosecond pace our market are characterized by hyper competition and

disruptive technologies are challenging every business and so business

must adopt to empower consumer.

To become successful in such a competitive environment the business

organizations have to be customer oriented. Customers need and wantmust be taken care of. Built customer and not only products. Customer

must be delighted. This information about the market could be collected

by the way of proper market survey. Rom the market survey we get the

feed about the good or services of the organization .For this purpose the

said project work is undertaken.

The project was carried out for knowing prevailing market condition ofPrism Cement in Satna Region .The second objective of the project was

to study the sales promotion activities undertaken by Prism and its other

competitors.


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OBJECTIVE OF THE PROJECT

This project was undertaken for two main objectives was

To carry out market survey for knowing prevailing marketcondition of

Prism Cement Limited in Satna (Madhya Pradesh).

To check awareness of Retail shop owner about theproduct.To study the sales and promotion activities undertaken by Prismcement

and other player in the market.

To check if there is some scope for increasing salesthrough some new promotional schemes

To attain these objectives various other sub objective are needed to be achieved.

These are listed below.

To analyze the market share of prism Cement in Satna market.

To know the customers preference for the brands of cement.

To know the preference of retailer for sorting different brands of

cement.

To understand the effectiveness of various sales promotion activities of

cement.


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To know preference of retailers for different gift and incentives.

To analyze the sales promotion activities of various brands.

To analyze the transportation facilities for Prism and other cement

companies.

To analyze the frequency of visits of marketing representative of

various companies

Thus it attempt to find ways to increase market share, to increase customer

satisfaction and thus increase the business prospects.

Scope of the study

1. The study has been done for the Cement so more or less it helps in

understanding the consumer preference towards the cement market.

2. The study can help in analyzing certain weak point, improving on

which a company can overcome the low sales of its cement but only in

Satna region


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Research Methodology

Since the cement is a core product and being used by all types ofconsumers, so our focus for collection data was each and everyman who are directly or indirectly involved with the sale or use ofcement such as stockists, dealers, civil engineers, contractors,individual customers, masons, etc.

To know the position of Prism Cement in the trade and non-tradesegment regarding sale in comparison with the other brands onthe basis of attributes of cement has been done. For this purpose,opinion of stockists, dealers, engineers, contractors, architectsand builders (who posses knowledge regarding different brandsavailable in the market) has been taken. This might be helpful todraw the right picture about the market scenario.

This was convenient in nature because I would have to accountonly those people who actually require or purchase cement inbulk quantity. The survey is conducted with the help ofquestionnaire method and survey is conducted in the Satnaregion.


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Every type of research requires two types of data to be collectedto reach up to any conclusion.

Primary Data are those data, which are directly obtained from

people by approaching them individually, primary data are

generated when the researcher employing mail questionnaire,

telephone surveys, personal interviews, observations and

investigates a particular problem at hand.

For this project primary data was collected from stockists,

dealers, engineers, contractors, architects, masons and builders

by using survey method. Data collection from respondents was

carried out with the help of a structured interview schedule. In

this method data was collected from respondents through

questionnaires.

Secondary Data, on the other hand, includes those data, which

are collected in the past for other research work and are being

used in current project work.

Secondary Data, such as procedures of marketing for cement,

marketing conditions, brief details of M/s Prism Cement and other

competitors, price, quality, and other strategy and planning,specification in relation to other cement companies, all other

information which can be useful to complete this project, was

collected for Sales and Marketing Department of Prism Cement.

Published Documents of Prism Cement and other competitors


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cement plants have also been used for collection of secondary

data.

COMPANY PROFILE

'Prism Cement Limited is an ISO 9001: 2008, ISO 14001:2004, OHSAS 18001: 2007 & SA 8000: 2008 CertifiedCompany promoted by the Rajan Raheja Group. It operatesone of the largest single kiln cement plants in the country atSatna, Madhya Pradesh. Equipped with state-of-the-art

machinery and technical support from F.L Smidth & Co A.SDenmark, the world leaders in cement technology, PrismCement has successfully created a niche for itself in theIndian cement industry.

The Company is managed by a focused Board comprising of

eminent experts from diverse fields ably supported by a


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professional management team. The Management team ensures

high levels of transparency, accountability and equity in all facets

of the companys operations.

Our Vision


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To be acknowledged as a leading

player in the industry with the highest

level of integrity.

Our Mission

State of the art cement plants

Transparent dealings with all stakeholders

Committed to the principles of good corporate governance


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Product

Prism Cement manufactures and marketsPortland Pozzollana Cement (PPC) with thebrand name Champion and the full range ofOrdinary Portland Cement (OPC) of 33, 43and 53 Grades.

Champion Prisms largest selling product isgeneral-purpose cement popular for allapplications during house construction byindividuals. Prism Cements OPC is in

demand for specialised cement concreteapplications like high-rise buildings, bridges,manufacturing AC sheets, pipes, poles etc.

Rich deposits of high quality limestone,highly automated and sophisticated controlsensure that the cement manufactured byPrism meets the highest quality standards.All the cement manufactured by Prism

Cement carry the BIS Certification Mark. Infact, the strength and other characteristicsare much higher than the BIS requirements.Excellent quality has placed Prism Cement inthe premium price segment.


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Overview

Prism Cement Limited is an India-based company, which is engaged incement business. Prism Cement manufactures and markets portland

pozzollana cement (PPC) with the brand name Champion and a range of

ordinary portland cement (OPC) of 33, 43 and 53 Grades. The Companys

OPC cement is used for specialized cement concrete applications,

including high-rise buildings, bridges, manufacturing asbestos cement

(AC) sheets, pipes and poles. The Company has 2.51 million tons capacity

of cement plant. The company has set up a packing unit at Allahabad to

cater to the requirement of customers in eastern/central Uttar Pradesh.

Quick Financial Synopsis

BRIEF: For the fiscal year ended 31 March 2009, Prism Cement Limited's

revenues totaled RS6.4B. Net income totaled RS920.5B. Results are not

comparable since the company has changed its financial year from June

to March. Prism Cement Limited is an India-based cement producer. The

Co. is engaged in manufacturing and marketing of cement and allied

products. It has also set up a packing unit at Allahbad to cater to the

requirement of customers.


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Prism Cement Limited

Prism Cement Limited is Indias largest integrated BuildingMaterials Company; with a wide range from cement, ready-mixed

concrete, tiles, bath products to kitchens. The company has threeDivisions, viz. Prism Cement, H & R Johnson (India), and RMCReadymix (India). Prism Cement Limited also has a 74% stake inRaheja QBE General Insurance Company Limited, a JV with QBEGroup of Australia.

Prism Cement

Prism Cement commenced its production in August 1997 andmanufactures Portland Pozzollana Cement (PPC) with the brandname 'Champion' and Ordinary Portland Cement (OPC). It has thehighest quality standards due to efficient plant operations withautomated controls. It caters mainly to markets of UP, MP andBihar, with an average lead of 340-370 km of its plant at Satna,MP. It has a wide marketing network with about 2,000 dealersserviced from 46 stocking points.

Prism currently sells over 3 MTPA of cement and clinker and is inthe process of establishing another unit at the same location witha proposed cement capacity of 3.6 MTPA by 2010-2011. It is alsoin the process of setting up a 4.8 MTPA capacity cement plant inAndhra Pradesh by 2013-2014. This will take its overall capacityabove 11 MTPA.

H & R JOHNSON (INDIA)

Established in 1958, H & R Johnson (India) is the market leader

in the field of ceramic tiles in India. HRJ has consistentlymaintained its leadership position in the field of tiles over the pastfive decades. Today, HRJ enjoys the reputation of being the onlycompany in India to offer end-to-end solutions of Tiles,Sanitaryware, Bath Fittings and Kitchens.


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Under its flagship brand, Johnson, HRJ offers glazed wall andfloor tiles, bath products, kitchens, laminate and engineeredwooden flooring. Marbonite brand offers a complete range ofvitrified tiles, and Endura offers industrial tiles and tiles for

special applications like bathrooms / high traffic areas /swimming pools etc. HRJ has recently launched top-end,premium range of products under Johnson Ceramics Internationalbrand.

HRJ has a strong service network of technicians and engineersspread across the country. This network complements the rangeof bath products by offering various services like installation,trouble-shooting, repairs, and AMC. HRJ also has a toll-free

customer helpline: 1-800-22-7484.

HRJ's sales volume for the year 2008-09 was 37 million m2 oftiles and plans to achieve 90 million m2 by 2014-15.

RMC READYMIX (INDIA)

RMC Readymix (India) is the third-largest ready-mixed concrete

manufacturer in India. Set-up in 1996, RMC currently operates 57ready-mixed concrete plants in 27 cities/towns across theCountry. RMC has also ventured into the Aggregates business andoperates large quarries and crushers. At present, RMC has 6quarries across the country. RMC has been at the forefront insetting high standards for plant and machinery, production andquality systems and product services in the ready-mixed concreteindustry. RMC plans to scale-up its capacity from 3.87 million m3at present to 11 million m3 by 2014-15.


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THEORETICAL

BACKGROUND

PROMOTION

Promotion is persuasive communication. It is a highly visible element in the

marketing mix. It tells the target customer product, price, and place. It tells also

known as marketing communication. Promotion consist of activities that facility

exchanges with target customers through persuasive communication to stimulatedemand.

According to Professor Philip kotler

Promotion includes all the activities the company undertakes to communicate and

promote its products to the target market.

In modern marketing the question is not whether to promote but rather what to say,

to whom and how often. A good product, an attractive price and an accessible

distribution must be supported by an effective promotion to satisfy customer needs.

Promotion activity include advertising, sales promotion, public relation, and directmarketing. Promotion can also be viewed as the management of the customer

buying process of pre-purchase, purchase and post purchase.

FUNCTION OF PROMOTION

Promotion is a tool to influence target customer and to face competition. It

performs four functions:-

Information

Persuasion

Reminding

Reinforcing


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PROMOTION MIX

The promotion mix is the combination of advertising, public relations, sales

promotion, personal selling and direct marketing tools that help achieve marketing

objective

1. ADVERTISING: -Advertising in any paid form of non-personal

Communication by an identified sponsor to promote

product.

2. PUBLIC RELATION: It refers to programmes designed to promote or protect

a company image and products. Publicity is any unpaidform of communication through media about an

organization, its policies and products.

3. PERSONAL SELLING: Personal selling is personal communication with

customers to persuade them to buy products. It

permits interaction and relationship building. Sales

persons provide feedback about the market,

competitors and customers.

4. DIRECT MARKETING: It is persuasion by manufacturer to specific

customers. The tools of direct marketing are:

1. Face to face selling

2. Mail

3. Catalogue marketing

4. Telephone

5. E-mail

5. SALES PROMOTIONS: Sales promotion has been increasing in popularity as

a tool. Marketers are using it aggressively. Sales

promotion refers to short term incentives to stimulate

demand. It is used to create a stronger and quicker

purchase response. It can be directed at consumers,


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middleman and sales personnel. It supplements

advertising and facilitates personal selling.

According to Professor William J. Stanton

Sales promotion refers to demand stimulating devices designed to supplement

advertising and facilitate personal selling.

According to professor Philip kotler

Sales promotion consists of diverse collection of incentives tools, mostly shortterm, designed to stimulate quicker and or greater purchase of particular product

/services by consumer or trade.

NATURE OF SALES PROMOTION:

It is short term

It provides incentives

It aims at quicker response

It is directed at target audience

OBJECTIVE OF SALES PROMOTION

1. Objective for consumer promotion:-

(a) Encourage greater purchase volume

(b) Attract new customer

(c) Introduce new products

2. Objective for trade promotion:-

(a) Carry and push new item

(b) Increase resellers inventories

(c) Attract new channel members

(d) Offset competitive promotion

(e) Better store display

3. Objective for sales force promotion


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(a) Motivate sales force

(b) Support new product

METHOD OF SALES PROMOTION

Sales promotion methods differ according to the target audience. They can be

directed at consumer promotion, trade promotion, and sales force promotion

(a) Consumer promotion method

Free sample

Coupons

Rebates

Premium

Price off

Contests

Display/Demonstration(b)Trade promotion methods

Free goodsAllowancePrices-offSales contestGift itemsCredit facilities

Trade show

(c) Sales contestsTrade shows and conventionsGift itemsPromotional kitsBonus and commissions


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CONCLUSION

To attain the objective of the project detailed information was collected from the

market of Satna. The market research has revealed many facts and figures aboutthe cement scenario in the market prevailing.

In the market, Prism cement is well known brand of cement. This is the result of

the good quality of the prism cement along with their effective marketing efforts,

which covers the whole market customers of Prism cement are highly satisfied

with the use of it, as they do not face any problem after using it.

There are seven major players in the market but the major completion is betweenthe two brands of cement. But because of good marketing efforts, Prism cement is

able to grasp some share of various other brands.

The market survey undertaken shows that effective marketing efforts play a vital

role in creating the goodwill for the brand. The distribution channel of cement

industry must be well designed and made effective this ensures timely availability

of cement to customers.


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LIMITATION OF THE STUDY

1. Lack of cooperation from the retailers in regard to giving interview

2. It was found in some cases dealers showed inclination towards certain

brands which gave them more margins when compared to others.

3. It was experienced during the survey that it was difficult to convince ormake the retailers and dealers understand the important of the project

4. As the retailers and dealers thought that it was unwise for to give their

details of business as they feared competitors would take advantage.


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BIBLIOGRAPHY

BOOKS

1. Research Methodology: C.K. Kothari

Wishwa Prakashan Darayaganj

New Delhi

2nd Edition-1995

2. Marketing Management: Philip Kotler

Prentice- hall of India Pvt. Ltd.

New Delhi-110001

8th Edition -1995


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