abhijeet project_new

8/9/2019 Abhijeet Project_New

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Executive summary

In todays competitive market survival of any firm has become significant to exist in

the market. Market is volatile, unpredictable and full of competition. Every firm is

trying to beat one another in such fierce competition by adopting different strategies.

To survive in the market understanding and assessment of market is very necessary.

Promotional strategy is a tool to understand market and get competitive advantages

over rival competitors. Promotional strategy is a way to disseminate information of

existing product in the market to consumers in a way that the product remains in the

memory of consumers for a long time.

A REPORT ON A STUDY TO BRING ABOUT IMPROVEMENT IN THE

PROMOTIONAL STRATEGIES OF KALYANPUR CEMENTS LTD(KCL) IN

COMPARISON TO ITS COMPETITORS IN PATNA helps to understand the

promotional strategies of Kalyanpur Cements Limited and its competitors in Patna.

Generally most cement companies follow the same type of promotional strategies but

it is the innovative promotional strategies which give competitive advantage to a firm

over another firm. This project is an effort to produce innovative strategies to enhance

the market share of KCL. The summer Internship Program commenced from 1st June

2008 to 31st July 2008.


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Introduction of the study

In todays competitive market survival of any firm has become significant to exist in

the market. Market is volatile, unpredictable and full of competition. Every firm is

Chapter Name

S.NO Chapters Name Page No.

A. Introduction of the study

B. Scope of the study

C. Objective of the study

D. Research Methodology

E. Limitation


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trying to beat one another in such fierce competition by adopting different strategies.

To survive in the market understanding and assessment of market is very necessary.

Promotional strategy is a tool to understand market and get competitive advantages

over rival competitors. Promotional strategy is a way to disseminate information of

existing product in the market to consumers in a way that the product remains in the

memory of consumers for a long time.

A REPORT ON A STUDY TO BRING ABOUT IMPROVEMENT IN THE

PROMOTIONAL STRATEGIES OF KALYANPUR CEMENTS LTD (KCL) IN

COMPARISON TO ITS COMPETITORS IN PATNA helps to understand the

promotional strategies of Kalyanpur Cements Limited and its competitors in Patna.

Generally most cement companies follow the same type of promotional strategies but

it is the innovative promotional strategies which give competitive advantage to a firm

over another firm. This project is an effort to produce innovative strategies to enhance

the market share of KCL. The summer Internship Program commenced from 1st June

2008 to 31 st July 2008.

B. Scope of the project

Scope of the project was limited for Patna. For this project 60 days duration wastaken.

There was an opportunity to meet mostly all types of retailers and interact with them

directly, which was good experience. Meeting the retailers, who helped us to

understand their needs and requirements regarding cements?


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Interacting directly with people is very joyful experience. Talking with them,

understanding their problems helped to know what could be the promotional strategy

of Cements Company.

It was good opportunity to develop skills and acquire knowledge, which is required

for the field work.

KCL has installed so many hoardings of its cements in all over Patna.KCL has also

installed tube light hoardings in some region of Patna that illuminates at night.

C. Objective of the study

The cement industry has continued its growth trajectory over the past seven years.

Domestic cement demand growth has surpassed the economic growth rate of the

country for the past couple of years. The growth rate of cement demand over the past

five years at 8.37% was higher than the rate of growth of supply at 4.84% as also therate of growth of capacity addition during the same period. Demand for cement in the

country is expected to continue its buoyant ride on the bank of robust economic

growth and infrastructure development in the country. The market has number players

and all wants to expand rapidly; therefore they has to undergo continuous research and

development in order to come up with innovative ideas of products and services. To


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popularized its product the company has to work on its positioning in the market, how

to make an impact of the product on the eyes and minds of the consumer.

By keeping in the mind a detailed study is carried out by analyzing the

response of some consumers and some intermediaries at different localities of Patna

with the general objective listed below:

To know the potential of cement market.

Who are the major players in the cement sector?

What is the share of different firms in the market?

What position do they occupy in the minds of the target consumergroups?

How the KCL brands needs to be positioned?

How the competitive brands are positioned?

How the brand is perceived by the target consumer groups.

To improve promotional strategy of KCL.

To find out promotional strategies of its competitors.

To compare promotional strategies of KCL with its competitors.

To get the feedback from retailers and consumers for adoption of itspromotional strategy.


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To know what promotional strategy motivates prospective customers topurchase Kalyanpur cements.

To know the market status of KCL.

D. Research Methodology

Every project of the study should be followed by the, means to accomplish that

objective. The mean, which will be correct and comprehensive, which will give all of,

the information needed. That means, which will help to know about the loopholes of

other alternatives means. The means here is nothing but kind of methodology adopted

to carry out the study.

The marketing concept is a philosophy. It makes the customer, and the

satisfaction of his or her needs, the local point of all business activities. It is driven by

senior managers, passionate about delighting their customers.

A research design is a type of data related to cement companies prepared

depending on various types of data available for the collection, measurement and

analysis of data. It is overall operational pattern or framework of the project that

stipulates what information is to be collected from which source by what procedures.

Marketing is not only much broader than selling, it is not a specialized activity

at all it encompasses the entire business. It is the whole business seen from the point


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of view of the final result, that is, from the customers point of view, Concern and

responsibility for marketing must therefore permeate all areas of the enterprise.

TYPES OF RESEARCH

Exploratory Research Descriptive Research

EXPLORATORY RESEARCH

Exploratory research is in the nature of preliminary investigation. The objective of it is

to generate new ideas. To achieve this object, respondent should be given sufficient

freedom to express themselves. The primary focus of this is on the discovery of new

ideas. Exploratory research uses a different approach to the problem-solving than the

conclusive study.

DESCRIPTIVE STUDY

This type of research is undertaken in various circumstances. This research is very

useful to know the characteristics of certain groups such as age, sex, educational level,occupation or income. The basic of descriptive research is to find out the answers the

questions relating to, who, what, when, where and how of the subject under

consideration.

Descriptive research is not always factual and simple; they can be complex also,

demanding high degree of scientific skill on the part of researcher.

Though the information present in the report is gathered through different activities

like:-

MARKET DESIGN


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SURVEY: - It has helped a lot in understanding the need of the customers and what the

person who is involved in cement business thinks about different brands. Survey is

done in different areas of Patna and possible outlets are covered to collect information

regarding cement market.

QUESTIONNAIRE:- It is basically for knowing the satisfaction level of the

customer that what they want, what their requirement are? Back to top a set of written

questions, requiring written answers, which ask for information about an organization

or its constituents. A questionnaire might ask for information that may be statistically

useful, or it may be personal.

INTERVIEW:- Interview is done with the customer those who are cement users and

non users that what are their expectation from cement manufactures, which cement

they rank first and why? Why they trust a specific brand etc. It has helped in

understanding the customers demand.

DATA COLLECTION METHOD

Collection of data is the first step in statistics. Data can be secondary or primary can

be collected using variety of tools.

PRIMARY DATAPrimary data is the first hand information, which is collected personally through

interaction with respondents, in form of questionnaires. The data is obtained by us ing

various methods

They are:-

Observation method Interview method Through Questionnaires


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SECONDARY DATASecondary data is the data, which is already in record for e.g. newspaper, Internet

books Reports published and Magazines. The secondary data is obtained through.

Various publications of central, state and local government Various publication Office records Newspapers, Books, Magazines.

THE SEVEN MAJOR STEPS IN MARKET SURVEY:-

Deciding the objectives Specify what information is needed Identify the source of the information Decide on the techniques for acquiring the information Process the gathered information Analyze and interpret the data Present the finding to the decision makers.

E. LIMITATION


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Even though I have conducted the research sincerely, the research is subjected to few

limitations; due to practical difficulties encountered during the courses of conducting

research.

This study is conducted in a limited geographical area. So, the findingmay not be applicable for other region.

There are large amount of population who is said to be continuousfloting from one place to another. May be the people of other territory

have unduly got considerable participation in my research.

Though every possible attempt was made to ensure correct results butthere may be chances of sampling error.

The project was carried out over a span of two months hence timeduration was restrictive factor to understand and solve the competition

involved in the project.

Primary data collected to survey was shaped according to perceptions ofrespondents, so it could be biased.

Respondents were often reluctant to give information. Sample was not representative of all population.

Many of the times, the respondent did not disclose the requisite

information.

Many people are not willing to fill the questionnaire, as they are busy intheir own work.


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Biased views of respondents. Sometimes respondents exhibited basedviews towards particular provider.

Few of the times, respondents has given answer which has no objectivityi.e., the option taken is ridden with dubiousness.

Time is the most important constraint. The detail study required to becompleted in a given time frame.

The result is true for each time period and it may vary with time. To know the perception of people by such limited questions are not

sufficient.

Another limitation of the project is that, I was unable to measure factorslike attitude and motivation etc.

There is a chance of human error. Survey is done in summer season, so scorching heat sometimes makes it

very difficult to move deeper and collects the information.


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S.NO Chapters Name Page No.

A. Organisational Profile

B. Cements Industry in India

C. Cements makers brand building

D. Marketing Network

E. Brand Positioning

F. Marketing & marketing Details

COMPANY PROFILE

Kalyanpur Cements Limited- At a glance:-

Group TheSinha Group


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Company KalyanpurCements Limited

RegisteredOffice 2&3 Clive row, Kolkata-700001

CentralOffice MouryaCentre, 1 Fraser road, Patna

Collaborator Holderbank, Switzerland

Factory BanjariRohtas, Bihar

Constitution Public Ltd.Company

Date ofRegistration 11th

August, 1937

OperationalForm 1946

ManufacturingProcess Dry Process

Capacity 1 millionton peryear

In the corporate division office preside the top authorities and manage the wholeAltair of the company like the Marketing and Sales problem and Personnel and

Technical at Banjari.

ORGANISATION STRUCTURE:

Organization structure is the back bone of management without organizational

structure no management can perform its function smoothly. Organization structure

refers to relationship among position job, which is created to obtain certain objective.

Actually the structure is the relationship among various function of the

organization on an established manner.


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According to Chester Barn ad: A system of co-operative activities of two or

more persons is called organization structure.

According to Mooney & Relay: Organization structure is the form every

human association for the attainment of a common purpose.

Thus structures are cohesive force that integrates different pairs of the enterprise

in to a co-ordinate whole for the attainment of a command purpose.

The SINHA GROUP presently managed by Mr. Satyadev Prakash Sinha and

Mr. Shailendra Prakash Sinha, one of the leadind industrial Groups in Eastern India

with diversified business activity covering paints, weigh feeders, load cells, financing,

cements consultancy, Hotel industry besides cement. The total group turnover is Rs.

225 Cores.

At the Apex of the company is a board of Directors consistency of

representatives of the state Government, the financial institution, the collaborators and

other individual with rich business experience for monitoring the performance of the

company and appraising companys plans. The Chairman-cum-Managing Director ofthe company is Mr. Satyadev Prakash Sinha who is a B.SC I in Economic from

London and has total business experience of 32 years, covering the business interest of

the group. He has been responsible for the diversified business interests of the group.

The second promoters Mr. Shailendra Prakash Sinha is the joint Managing

Director of the company. He is a B.COM and has obtained a certificate in Hotel

Management form Cornell University, U.S.A and has total business experience of 24

years. There are separate department to look after the different function.

The main departments are production, Maintain, Stores, Purchase, Sales,

Finance and personnel & Administration. Qualified and experienced persons head

each department.


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In its management also included corporate division, which did concern

secretarial, Depot Manage. Bulk materials were in charge of legal section dealing with

the legal matters of the concern. There was proves icons for information system deptt.

Headed by D.G.M Information system. Company was earlier engaged in

manufacturing lime and it was known as Kalyanpur lime cement limited till 1988.

From 1946-1994 the company was engaged in manufacturing cement through wet

process and it was started in 1946 with annual capacity of 46,000 tons per annum. It

replaced its 4 lakh ton per annum wet process plant with a million ton per annum dry

process plant with assistance from World Bank, financial institution and Holder Bank

of Switzerland, now it is known as Holcim.

The Sinha group comprises of dozen companies in diverse activities with a

total turnover of approximately Rs.4 billion. The group employs over 5,000 people. A

brief profile of the major companies of the group is as follow:

Jenson &Nicholson(India Ltd):- Jenson &Nicholson (India Ltd) is one of the top

companies in India with a market share in excess of 6%.It manufactures paints,

synthetic resins, varnish enamel &distempers.

Bihar Hotels Ltd:- Bihar Hotels Ltd (BHL)owns Hotel Mourya Patna. The Hotel issituated at a prime location in Patna.It has acquired a five star status with a capacity of

80 rooms & 3 banquet halls. The Hotel has an average occupancy rate of 60%-

70%.The Hotel is undergoing its second phase of modernization &expansion.

HoltecEngineers Private Limited:- Holtec Engineers Private Limited (Holtec) was

formed in 1967 in collaboration with holder bank consulting Ltd ,Canada. Holtec is

the only specialized technical and management consulting company for the cement

industry in India. Holtec is staffed with financial analysts, market specialist,

geologists, mining engineers, architects, civil engineers, process engineers,

mechanical engineers, electrical engineers, instrumentation and control engineers,

computer specialists and management consultants. They are highly qualified to

provide consulting services for the realization of various missions. It has successfully


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designed and commissioned various cements plants. It has carried out various

assignments including abroad.

PHOTO OF FACTORY

KALAYANPUR CEMENTS LIMITED (Factory at Banjari; BIHAR)


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Incorporation

KCL was originally incorporated as KALYANPUR LIME & CEMENT WORKS

LTD. on 11th August 1937 with its Registered Offices in Kolkata (West Bengal). The

name was changed to KALYANPUR CEMENTS LIMITED (KCL) on 9th

March,

1988.

Plant Information

KCL set up its first wet process production unit in 1946 at Banjari, Dist. Rohtas

(Bihar) with an installed capacity of 46,000 tons per annum. Thereafter, the

production capacities were expanded in the following manner:

Year Description Capacity (MT)

1 1946 1st Cement Plant 46,000

2 1958 2nd Cement Plant 1,00,000

3 1968 3rd Cement Plant 2,00,000

4 1980 Capacity Expansion 1,34,000

Total 4,80,000

At the time of setting up of the first plant or during each expansion, KCL went in with

the best available contemporary technology. At the time of setting up the present New

Plant, KCL adopted Roller Press technology including for grinding raw material. This

technology was introduced for the first time in Indian cement industry.


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Setting up of New Plant

All of the above capacity was of wet process technology. With the adoption of dry

process manufacturing technology in the industry, KCL decided to set up a state of art

one million ton dry process cement plant. The implementation of the project

commenced in 1991 and was commissioned in 1994.

The new plant was set up through an IBRD line of credit and in collaboration with the

worlds then largest cement manufacturers M/s. Holder bank (now Holcim),

Switzerland. KCL was the first company in Indian cement industry which received

Foreign Direct Investment (FDI) by way of Equity participation.

Key Features of Plant


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KCL is using latest technology for its current manufacturing line which was set up

almost at the same time as Tata Steel (now Lafarge), Prism and DLF (now Gujarat

Ambuja).

KCL was adjudged the most fuel efficient plant among Holder bank groups 80 plants

worldwide in 1997 both in terms of power and fuel consumption. The plant recorded a

specific power consumption of 78 kwh/ton and fuel consumption of 650 kcals per kg

clinker.

The plant continues to maintain fuel efficiency despite frequent/intermittent

stoppages. Fuel and power efficiencies continue to be comparable with the new plants

of reputed companies like Gujarat Ambuja, ACC etc.

SOURCES OF RAW MATERIALS:

Lime stone from own quarries and from adjoining areas like, MurliBanjari mines.

Coal from CCL and ECL (Singrauli).


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Gypsum from Bikaner Mines (Rajasthan).

Blue dust from Orissa and Chaibasa area mines.

Slag from Bokaro and Durgapur Steel plants.

Packaging material from different places.

TECHNOLOGY USED BY KCL:

Double Grinding Technology:- KCL technology uses the DGT whereseparate roller process from grinning clinker other material is used.

Roller Press:- KCL has adopted high pressure Roller press tech forgrinding . This is new technology which was introduc ed in 1994. KCL

was one of the first few plants in the worlds that adopted this technology

for all its grinding.


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Five Stage Preheated Technology:- This technology was introduced inearlier 90s. These technologies provide slower fuel consumption and a

uniform and complete burning of clinker.

Roll Ox System:- KCL has a KHDROLLCOX computerized systemthat controls and maintain the quality of all the operation and ensure

uniformity of the product.

X-ray Analyzer:- KCL has automatic devices at each stage of theproduction process. KCL has purchased an x-ray analyzer from

Switzerland; which test the sample to provide accurate measurement of

the quality of cement at each stage of the production process.

B. Cement Industry in India:

Cement industry in India is on a roll at the movement. Driven by a booming real estate

sector, global demand and increased activity in infrastructure development such as

state and national highways, the cement industry has witnessed tremendous growth.

Production capacity has gone up and top cement companies of the world are vying to

enter the Indian market, thereby sparking off a spate of mergers and acquisitions.

Indian industry is currently ranked in the world.

The origin of Indian cement industry can be traced back to 1914 when the first

unit was set-up at Porbandar with a capacity of 1000 tones. Today cement industry

comprises of 125 large cement plant and more than 300 mini cement plants. The

cement corporation of India, which is a central public sector undertaking, has 10 units.

There are 10 large cement plants owned by various state governments. Cement


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industry in India has also made tremendous strides in technological up gradation and

assimilation of latest technology. Presently, 93% of the total capacity in the indust ry is

based on modern and environment-friendly dry process technology. The introduction

of advanced technology has helped the industry immensely to conserve energy and

fuel and to save material substantially. Indian cement industry has acquired technical

capability to produce different types of cement like ordinary Portland cement (OPC),

Portland Pozzolana Cement(PPC), Portland Blast Furnace Sulphate Resisting

Portland cement, White cement etc. Some of the major clusters of cement industry in

India are: Satna (Madhyapradesh), Chandrapur (Maharashtra), Gulbarga(Karnataka),

Yerranguntla (Andhra Pradesh), Algona (Andhra Pradesh), Bilashpur (Chhattisgarh)

and Chandoria (Rajasthan).

Cement industry in India is going through a consolidation phase. Some

example of consolidation in the cement industry are: Gujarat Ambuja taking a stake of

14% in Acc and taking over DLF cements and Modi cement; ACC taking over

IDCOL; India cement taking over Rossi cement and Sri Vishnu cement; and Grasims

acquisition of the cement business of L&T.

Indian Rayons cement divison and Sri Digvijay cement. Foreign cement

companies are also picking up stakes in large Indian cement companies.

Swiss cement major Holcim has picked up 14.8% of the promoters stake in

Gujarat Ambuja cement. Holcim acquisition has led to the emergence of two major

groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja cements

combine and the Aditya Birla group through Grasim industries and Ultratech cement.

Lafarge, the French cement has acquired the cement plants of Raymond and Tesco.


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Types of Cement manufactured:

Cement is available in the market in many varieties, for meeting special specification

for the purpose of construction.

Details of different types with their uses are given below:-

Ordinary Portland Cement (OPC)(33grade,43grade,53grade) Portland Slag Cement(PSC) Portland Pozzolana Cement(PPC) White Portland Cement(WPC) Sulphate Resisting Cement(SRC) Aluminous Cement(AC) Masonary Cement(MC) Oil Well Cement(OWC) Rapid Hardening Cement(RHC) Hydraulic Cement(HC) Natural Cement(NC)


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Moderate heat Portland cement(MHPC) Low heat port land cement(LHC) White Cement(WC) Blended Portland Cement(BPC) Portland blast furnace slag cement (PBFSC) Special cement(SC)

OPC 33grade slag cementand pozzolana is having low heat of Hydration, it is

also known as heat cement. It is being used where low heat of hydration is

required, used for building construction.

OPC 43 and 53grade is being used where high early strength is required. Used

this type of cement is generally used for railway sleeper and bridge

construction.

Sulphate resisting cementFor use when high sulphate resistance is required.

Moderation heatof hydration cementFor use in general concreto construction

exposed to moderate sulphate action or where moderation heat of hydration is

required.

Limitingthe ferric oxide to such a value makes white cement that the product isbecome white. Also cement for special purpose are made by modification in

composition of heat treatment such as oil well cement quick setting cement.

Aluminous of high Alumina cement It contains much higher percentage of

alumina than Portland. For that reason it cannot be made from limestone and

clay, but required bauxite to mix with the lime stone. The chemical

composition is quite different with Portland cement. The chemical composition

is quite different with Portland cement. The cement harden very fastly and

getting final maximum. The company also manufactured standard size cement

brick(15*16) as well as cement tiles on demand and for internal use.


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Organizati n Chart:

Selling Arrangements

C sal s area covers t e domestic markets ofBi ar, Eastern U.P, est

Bengal, Nort East states like Assam and export markets ofBangladesh and


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Nepal. Kalyanpur Cements has strong network of sales promoters are the

wholesalers of the company promoting the brand on its behalf further sales

promoters have their network of dealers in the market who push the material.

Kalyanpur has been able to build a strong relationship with its most

important customers, the sales promoters. Company representatives visit not

only the sales promoters but also dealers also on regular basis. In this process

they try solve whatever problem they face related to supply and sales of brand.

Sales promoters meet and dealers meet are organized by the companys

marketing divisons from time to time to strength the relationship further.

CEMENT MAKERS STEP UP BRAND BUILDING

With competition getting intense, cement companies are fine tuning their strategies to

differentiate themselves with brand building measures. Cement producers are banking

on extensive coverage and celebrity endorsements to build top-of-the-mind recall

among users.

Binani Cements Ltd started by signing film personality Amitabh Bachhan as its brand

ambassador last year, JK Lakshmi signed on actor Om Puri and now cement


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Brand Positioning

Theoretical Perspective

The development of a brands position in the market by heightening customer

perception of the brands superiority over other brands of a similar nature. Brand

positioning relies on the nearest competitor and is easily communicated to the

consumer.

Positioning is how a product appers in relation to other products in the market.

Brands can be positioned against competing brands on a perceptual map.

A perceptual map defines the market in terms of the way buyers perceive key

characteristic of competing products.

The basis perceptual map that buyers use maps products in the terms of their price and

quality is given below:-

Low High


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Main factors that go into defining a Brand Positioning:-

Brand Attributes:-

What the brand delivers through features and benefits to consumers.ConsumerExpectation:-

What consumers expect to receive from the brand.Competitor Attributes:-

What the oter brands in the market offer through feature and benefits toconsumers.

Price:-

An easily quantifiable factor- your price vs. your competitors prices.Consumer perception:-

The perceived quality and value of your brand in consumers minds (i.e.,does your brand offer the cheap solution, the good value for the money

solution, the high-end, high price tag solution, etc.? ).

Branding:-

There is more to creating and promoting a brand than making a prettylogo and tagline are just representations of the brand. Following are

several rules to help create, promote and maintain your brand.


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RULES OF BRANDING:-

Be Specific:-

Know what your stands for, and know what your promises. Your brandpromises should be precise and attainable, and you should be able to

stands for quality. Thats a broad statement that any company can make.

How does your brand specifically live and breathe quality? Those

specific are what will make your brand stand out from your competition.

Be Authoritative:-

Once you know what your brand stands for and promises dont be afraidto flaunt it. You need to make everyone else believe youre the leader

and authority in your area of expertise and specialization. Dont meeklycommunicate your message. Say it with powerful words and conviction.

Be Consistent:-

Get your brand message out there and dont waiver on it. Ive readstatistics in the past that state as soon as youre tired of your message;

your customer are just starting to recognize it. A consistent message and

customer experience are critical elements to building your brand.

Be Honest:-

In todays world, people welcome honestly and your business will berewarded for it. Dont offer promotions or guarantees you cant deliver.

Instead, admit your fallibility and deliver on your promises. Integrity

goes a long way.

Be Relentless;-


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Get your brand message out there. Then get it out again and again.People are inundated with a myriad of messages each day. Its not only

critical that you try to stand out from the competition but its equally

important that you are not forgotten. Dont drop the ball on

communicating your brand promise and building your brand image.

Your effort will be rewarded in time.

These rules apply to company, product and personal branding.

They are simple, basic rules that critical to your brands overall success.

MARKETING & MARKETING DETAILS


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Marketing research is a perpetual task, which a company needs to take guage effort

and feedback for the the desire information regarding various activities undertaken,

needless to say, today is the era of tough competition. Marketing is said to be a war,

which is not played in the battle fields. Surpris ingly, this war is not played in the

showrooms shops, shopping, malls, and consumes storage, super markets but its

played in the heart or the mind of the consumers.

So to survive in such a competition the company must try to keep in touch with

the market and consumers along with the markets and consumers along with

competitors activities. Marketing and Marketing Details are controlled by corporate

office Patna. So I cant give more information about it. Some information is given

below which I have occurred from sales & purchase office:-

Company appoints sales promoters and directs dealer, both for

sales. Company mostly appointed sales promoter. Then sales promoter appointed

dealer in their allotted market for sales.

Hierarchy of Marketing is given below:-

Market:- Especially in central and north Bihar and exports nearby states and

Bangladesh.

Marketing Overview (KCL):-

COMPANY

SALES

PROMOTER

DEALER

DIRECT DEALER


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Marketing Network:-

KCL sells over 80% of its cement production in Bihar. It operates depots at:

i. Dehri-on -Soneii. Gaya

iii. Biharshariffiv. Arrahv. Buxar

vi. Chapra

(Ex-Factory+Ex- epot)

Expert

E

LER

Sales romoter

& F

gent

ealer

Retailer

rdinary

Gov. &Institution


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vii. Siwanviii. Muzaffarpur

ix. Chakiax. Darbhanga

xi. Patnaxii. Begusarai

The company also operates depots outside Bihar in the following location:

i. Varansiii. Mau

iii. Lucknow (Sahara India)iv. Ranchiv. Koderma .

vi. Daltonganjvii. Hazaribagh

viii. Giridihix. Bokaro

The government of Bihar is a major customer with the following departments being

the major consumer of cement being manufactured by KCL.

Irrigation department Deputy Development Commissioners


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Agriculture Marketing Boards


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Promotional strategy of Lafarge

Lafarge Cements:-

Lafarge India is a subsidiary of the French Building Materials major Lafarge. Lafargeis the world leader in building materials, with top-ranking positions in all of its

businesses: Cement, Aggregates & Concrete and Gypsum. Lafarge entered the Indian

market in 1999, with the acquisition of the cement business of Tata Steel. This

acquisition was followed by the purchase of the Raymond Cement facility in

2001.Lafarge currently has three cement plants in India: two integrated plants in the

state of Chhattisgarh and a grinding station in Jharkhand.

Total cement production capacity of Lafarge in the Indian market currently stands at

around 5.5 million tons. Lafarge India produces different types cements like Portland

Slag Cement, Portland Pozzolana Cement. Lafarge Cement is famous all over the

world for its premium quality and has been used to build many landmark buildings

globally. The company is a leading cement player in Eastern India. Its brands Lafarge

Cement and Lafarge Concreto Cement enjoy high brand equity here and are amongst

the highest priced brands.

Strategies

Lafarge announces its association with ace cricketer and India Captain, Mahendra

Singh Dhoni as its Brand ambassador.


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The company launched a Home Building Made Easy guide, which provides

potential homebuilders with detailed information on how to plan, finance and

construct a home. In addition, Lafarge started the Lafarge Home Building Centre

the first of its kind in India that provides information concerning the process of home

building, home buying and home improvement.

The company has also undertaken several customer orientated initiatives like starting

a newsletter for customers, organizing customer days in plants and market visits by

managers to interact with customers.

Lafarge cements sometimes introduces traffic awareness programmes especially

among schools and colleges students carrying placards regarding traffic rules with

Lafarge cement written on placards and caps put on by students.

Chhath & Durga Pooja is the sacred and famous festival in Bihar. Lafarge cements

sponsors or contributes money with local-lites to decorate large and impressive

Pandals. These pandals are spread all over the Patna in festive seasons. Lafarge

displays its posters all over in Patna and enjoys promotional strategy.

Lafarge cements has introduced LAFARGE Help Centre at Toll free no. 1800 345

6666 (available to the customers from all of our core markets) regarding all queries on

Home Building.

Promotional Strategies of J P Buland cements

J P Buland cements:-

Jaypee group is the 4th largest cement producer in the country. The groups cement

facilities are located in the Satna Cluster (U.P), which has one of the highest cement

production growth rates in India. The group produces Ordinary Portland cement and

Pozzolana Portland cement under the brand names Buland and Buniyad. Its


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cement division has three modern, computerized process control cement plants

namely, Jaypee Rewa Cement Plant (JRCP), Jaypee Bella Cement Plant (JBCP) with

an aggregate capacity of 7.0 MTPA. With its plans of adding capacities in different

regions of the country, the Group is poised to be a 25 MTPA cement producer by the

year 2010 and 30.5 MTPA by 2011. Thus, it is likely to be third largest cement

producer in the country.

Strategies

J P Cements provides professional training in masonry to the illiterate and

unemployed youth making them employable. The course consists of theory and

practical sessions. The candidates are required to build a low-cost house uponcompletion of the program. Certificates of qualification are awarded after candidates

successfully clear an evaluation process based on a grading system. The masons after

being trained go to different sites and recommends J P Buland Cements.

Sales office of the J P Cements provides money to dealer in Patna and the dealer

provides the same to retailers under him. These retailers in their own localities

advertise Buland cements through cable operator in different areas.

J P Buland cement uses electronic media as promotional strategy.

Buland Cement

Agency:


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A proud couple is excited

about their

son's home coming. He is

received in all due pomp

and splendour.

He promptly suggests a

renovation of their

bungalow which is

scoffed at by his annoyed

father.

He however summons the

labourers and gets to

work over the dilapidated

building. His household

finds itself

goaded into a scurry of

activity...

...and the father too

changes his mind and helps

in the process. Soon the

house stands renovated as

good as new.

Teri neki se is haveli ka hi

nahin, saare gaon ka naksha

badal gaya hai. Hum sab

buland hain", asserts his

doting father. The MVO

adds

Kal aaj aur kal buland rahe

sapnon

ka mahal. Bharat mein

pehli baar 55MPa ki shakti


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laaya JP ka Buland

Cement."

J P cement uses old lot of cements for renovation of old temples, other schools and

hospital buildings in Patna and the adjoining areas. This promotional strategy helps it

in using deteriorating cements in renovation work and getting public acclaim.

Construction/renovation of ten temples has already been completed in various parts of

Patna.

Literacy Campaign

Special attention is given to young girls [8 14 years] who have never attended

school. A pilot project with 42 girls is progressing, which would enable these girls to

become literate. First batch of 6 students have appeared in Class-V examination.


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Conduct adult education campaign.

To help the ladies of Patna to become self-reliant, tailoring classes are organized by

the Sansthan. Qualified lady teachers who are paid for their services by the Sansthan

conduct these classes. On successful completion of the training course, each lady was

is given one Sewing Machine free of cost. 19 such classes were conducted and 361

ladies had been put through this training successfully. A group of selected village

women were trained in making Papads and Wadis.

Health & Hygiene Awareness Camps Through these camps a regular interaction with

Patna ties by way of lecture / demo by co-opting Govt. Health Workers is undertaken

Topics for interaction range from:

Eradication of Malaria

House hold remedies for insect bites

Control of House Fly

Waste disposal

Pre-natal & post natal care

Vaccination & its importance

Health care initiatives help these people living in the Patna to avail medical facilities

which in other cases would be a financial drain on their already meager resources.

J P Cements regularly conduct Customer Perception &Satisfaction Measurement

surveys to align itself with the needs and expectations of our customers and the market

realities (competition, trade dynamics, etc.).

Customer relationship management is a critical success factor in cement business

which is highly competitive. People from top to bottom have been trained and

sensitized to forge better relationships with customers.


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Promotional Strategies of Ultratech cements

ULTRATECHCEMENTS:- UltraTech Cement Limited has an annual capacity of 17

million tonnes. It manufactures and markets ordinary Portland cement, Portland blast

furnace slag cement and portland pozzalana cement.

UltraTech Cement Limited has five integrated plants, five grinding units and three

terminals - two in India and one in Sri Lanka.

UltraTech Cement is the countrys largest exporter of cement clinker. The exportmarkets span countries around the Indian Ocean, Africa, Europe and the Middle East.

Ready Mix Concrete is likely to see substantial growth in the coming years.

Recognising the opportunities that this business will offer, UltraTech has commenced

setting up of Ready Mix Concrete Plants at various places in the country.


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Ultra Techs subsidiaries are Dakshin Cement Limited and UltraTech Ceylinco (P)

Ltd.

Promotional strategies of Ultratech

India, the world's largest producer of movies in as many as 10-12 different

languages, provides a great opportunity for advertisers to reach the masses.

Films are a great entertainment platform for most Indians. Ultratech to pull the

attention of audiences display its ad on film screen of the hall in Patna. Thisway of promotional strategy helps retain the ad in the mind of audience for

long time.

Although cement is said to be a low-involvement category, the brand awareness in this

category is very high. Major brands like ACC, Ambuja and some strong regional

brands have been fighting for mind space. Says Mr. Puranmalka: "Brand awareness is


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the category driver. We wanted to be different and were constantly on the lookout for

high visibility media. We found that cricket has a great following in our country and

we wanted to explore the possibility of associating with this sport. Ultratech organizes

intercollegiate and district level cricket matches on Mohinul haq stadium Patna and

sticks the logo of Ultratech on players helmets and bats.

Sales office of the ultratech confers with dealers, retailers, stockiest and distributors

and according to their advice it uses hoardings as promotional strategy. Ultratech has

used hoardings all over Patna.


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Promotional strategy of KCL

With the help of dealers KCL reaches those area in Patna which is not thickly

populated but the construction work is on war footing stage. These dealers help

retailers in getting their shops opened on those localities with sufficient stock of

cements to cater to the needs of people. The main focus of the KCL here is to reduce

the transportation cost of people in cement. Retailers have opened so many shops that

people generally buy cements from them.

KCL takes help of painters who are spread on various region of Patna. These painters

paint whole walls of city with the product of KCL being displayed on it. While

painting these painters take consent of the concerned owner of the walls and for that

they are given some amount of money for this by KCL.

Time to time KCL advertises about its company and product with capturing two pages

of newspaper. Hindustan Hindi newspaper &The Times of India generally publish its

advertisement.


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SWOT ANALYSIS OF KCL

STRENGTH:-

One of the best technologies in the world. Quality of cement comparable of world standard. Large limestone deposits and adequate coal reserves. No threat of cement import due to uneconomical freight cost.

WEAKNESS:-

Inadequate infrastructure. Poor quality coal and erratic power supply. Low per capita consumption of cement. High and differential excise. Irregular supply.

OPPERTUNITIES:-

Backlog of housing units. Privatization of road and infrastructure projects. Immense export opportunities in neighboring countries and west Asia.

THREATS:-

Possibility of oversupply. Regional imbalance. Lack of government found

SUGGESTION


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On the basic of my survey I have extracted some information, regarding that I want to

give some suggestion to the management of KCL.

The company should open a C&F office in every administrative divison which

exercise jurisdiction over company warehouse operation. This will ensure

maximum avaibility of product in the market at short notice. For example: if a

C&F office is established in Patna, then it was control all warehouse/s and

thereby ensure supplies of entire Patna divison.

The management should change a little bit of the packaging of KCL products.

The company should give more cash discount to the dealers and also gifts to

them.

There are number of complaints of irregular supply of KCL cement particularly

in rainy season, and this season is ideal for roofing. So any shortage of supply

in this duration will give other a chance to consolidate his position.

Manufacturing quality cement and supplying it on a regular basis.

Company should try grip the local market and then urban areas.

Direct marketing efforts through field meeting with small groups of Masons &

customers.

Regional local press to reach opinion leaders viz. Architects, Engineers,Contractors etc.

To magnetize the end users, it is advised to give free gifts; Discounts. The

Company can arrange public meeting to educate them on cement properties,

through these meetings company can have a good public relationship.

Advertisement of KCC through electronic media and an eminent personality as

a Brand Ambassador would help entice customers.

Outdoor for continuous brand awareness.

Introduce KCC help-line number.

Radio as a reminder medium.

Doing performance appraisal of each dealer and find out reason for decrease in

sales.


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Fulfillment of social obligations at the time of local religious occasions and

festivals like contribution in sacred festival Chhath & Durga- pooja with its

banner & hoardings being displayed all over the Pandal in Patna.

KCL can advertise its product inside the cinema during intermission.

CONCLUSION

Different companies have distinct way of promotional strategies for different product.

Cement is a product that requires a different kind of promotional strategy. With the

help of information collected by retailers in Patna one can conclude that whether it isKalyanpur cements limited or its competitors for them main promotional strategies

would be to meet with dealers, stockiest, retailers, individual house builders,

engineers, architects, masons and contractors to assure them that they get right quality

of cement. In addition, a brand new television commercial, an innovative press


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campaign and creative usage of outdoor media will also be helping spread awareness

about the cement product.

Apart from these usual promotional strategies some companies use innovative ideas

such as Ultratech cements uses its advertisement in most cinema hall of Patna during

the interval of the movies to be for a long time in the retention of customers mind. So

many examples of unusual type of promotional strategies have been cited in this

project which should be followed by KCL to improve its promotional strategy.

There are lots of competitors in the market. At present there are number of brands of

different companies circulating in the market of Bihar viz ACC, Lafarge, JP, Birla and

L&T etc. The consumer of KCL are however looks satisfied but there is an

expectation of further improvement

After the interaction/interview/survey at different localities of Patna, I have come to

following conclusion:

KCL has good brand image in the consumers mind but the considerablechunk of market is eaten up by the KC Vajra.

KCL lags because of two reasons viz; KC Vajra and irregular supply.

The two major competitors of KCL are Lafarge and Birla; followed byACC and L&T, among them Lafarge is the major competitor because of

its better performance and penetration in the market.

The degree of grievances with the brand KCL is comparatively lesser.

The customer looked little bit satisfied with the brands of KCL.

The biggest grievance from the side of consumer is irregular supply.


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Advertising is not very much satisfying. It needs some improvement.

Commercial usage i.e. institutional usage of KCL brand iscomparatively lesser.

There was uneasiness for unavaibility of KCL brands in particularseason.

There is enough loyalty for KCL brands from the side of customer.


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DATA ANAL SIS

1. hatis the market share of KCC and its competitors?


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KCC Ultra tech ACC Lafarge J P Buland

15 10 8 20 7

INTERPRETATION: The above pie chart depicts that in the present situation

Lafarge has greater market share than KCC and other competitors.

2. Which media do retailers &consumers prefer to improve promotional

strategy of KCL can be improved?

25%

17%

13%

33%

12%KCL

Ultra tech

ACC

Lafarg

J.P. Buland

Hoardings Print Media Electronic Media

20 15 25


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INTERPRETATION: This pie chart portrays the opinion of retailers 60 taken as

sample size for improving the promotional strategy of KCC. 38% of them have

advised for advertisement through electronic media and 39% & 23% through

hoardings and print media respectively.

39%

23%

38%Hordings

Print Media

Electronic Media


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3. Will advertisement through electronic media help enhance the sale of KCC?

YES No

45 15

INTERPRETATION: 45 retailers during asking question suggested that

advertisement through electronic media will help boost the sale of KCL and15

retailers had adverse opinion. They advocated quality of cements.

4. Does current lot of cement help in promotional strategy of any company?

0

10

20

30

40

50

YesNo

YES NO


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INTERPRETATION: Current lot means cements are produced weekly and it should

not be used for later use. 50 retailers expressed that procurement of current lot cement

enhances brand building image of the company and others 10 had opposite opinion.

5. While purchasing cements which cements strike in your mind?

KCL Ultra tech Lafarge J P Buland ACC

12 10 20 10 8

0

10

20

30

40

50

YesNo

50 10


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INTERPRETATION: In retailers retention of mind KCL is known because of its

quality but sometimes brand image of its competitors doesnt let it strike first in the

memory of retailers. This is why KCL strikes 20% in the mind of retailers.

6. Which company gives you maximum margin for selling cements?

KCL Ultra tech Lafarge ACC J.P. Buland

15 10 20 8 7

20%

17%

33%

17%

13%

KCC

Ult t h

L f

J Buland

ACC


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INTERPRETATION: - For enhancing the sell of cements each and every company

gives margin to retailers for sell of cements. Lafarge gives maximum margin and

J.P.Buland gives minimum margin.KCL gives reasonable margin.

7. Does KCL remain readily available in the market?

YES NO

45 15

15

10

20

87

K L U ra Lafar

P ! a " #

0

5

10

15

20

25


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INTERPRETATION: KCL being local cements company in Bihar remains readily

available as expressed by 45 retailers .Some of the retailers also sells the product of

other competitors so 15 of them said it is not readily available in the market.

8. Does Lafarge cements surpass both in promotional strategy and quality?

YES NO

40 20

75%

25%

YES

NO


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INTERPRETATION: - Lafarge being French based company for being deep rooted

in Bihar it emphasizes on quality product and adopts promotional strategies according

to regions and prevailing circumstances of these regions. 67% retailers exude

confidence that Lafarge do really surpass in quality and promotional strategies but

other 33% think other companies pose good competition before Lafarge.

9. Does KCL lag behind in Quality?

YES NO

10 50

67 $

% % $

Col 1

YES

NO


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INTERPRETATION: - 50 retailers commend the quality of KCL which is generally

used in wall construction but not have a impact in piling and ceiling construction.10

retailers feel it of lower quality because being lacking in pilling & ceiling

construction.

10.

Companies Market Share (%) Ranking

Lafarge 33.44 1

Birla 21.43 2

JP 19.42 3

ACC 15.55 4

KCL 8.03 5

Ambuja 2.13` 6

10

50

0

10

20

30

40

50

60

YE & ' (

Col

Co) 0

m 1 1


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11.

Companies Penetration Of Cement Brand (%)

Lafarge 40

ACC 27


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KCL 18

SATNA 11

Prism 4

12.

Companies Penetration Of Cement Brand (%)

KCL 36

ACC 24SATNA 20

PRISM 15

LAFARGE 5


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13.


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14.


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15.


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16.


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LISTS OF OUTLETS COVERED

P. C StoresSaidpura colony, Danapur.

Devi TradersKhaugal thana, Danapur.

S. K. TradersGandhi school road, Danapur.

Tiwari cementsGandhi school road , Danapur.

Phulwari EnterprisesMain road, phulwarishariff.

National EnterprisesMain road, phulwarishariff.

Ashiyana TradersMain road, phulwarishariff.

R. K EnterprisesKurji mode, Patna.

Vikash cement storesVijay nagar, kankarbagh, Patna.

Bharat TradersMahendru, Patna.

Hari om chauhan TradersDargah road, sanichara more, Patna.

Deepa TradersShahganj chowk, Dargah road, Patna.

Ma Bhawani EnterprisesShahganj chowk, Patna.

Ma Ganga Trading companyShahganj chowk, Patna.

Veena cement


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Postal park, Patna.

Vinay TradersNehru nagar, Patna.

Ma kali cement storeRajiv nagar, Patna.

Baba Vaidhnath EnterprisesAshiyana, digha road, Patna.

Shyam cement storeAmbedkar path, Patna.

Shankar cement storeNitibagh, bailey road, Patna.

Ravi cement storeSaguna more, Patna.

Ajay cement storesJai prakash nagar, Patna

BIBLIOGRAPHY

BOOKS:-

Marketing management Philip Kotler

Marketing research S. R. Bajpai, C. R. Kothari

NEWSPAPERS:-


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The economic times

The times of India

The Hindustan times

MAGAZINES:-

Business today

Business world

India today

WEBSITES:-

Website of Kalyanpur Cement (www.kalyanpurcementsltd.com)

Questionnaire ofKalyanpurCements Limited

1. Name: - 2. Address: - .

..

3. Contact No: - ...4. Year of Experience: - ...5. Education: - ..6. Monthly Income: - ...

7. Which cement will you prefer to use? (0-10)

Ranking Ratinga. Acc

b. Jaypee


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c. BirlaGold

d. Kcl

e. Prism

8. Which is the popular brand in the market? (0-10)

Ranking Rating

a. Accb. Jaypeec. BirlaGoldd. Kcle. Satna

9. Which company rank quality in the selling in market?(0-10)

Ranking Ratinga. Acc

b. Jaypee

c. BirlaGold

d. Kcl

e. Prism

10.How do you rank these cement brands?(Better)Supply Quality Packaging Quantity

a. Acc

b. Jaypee

c. Birla Gold

d. Kcl

e. Satna


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11. How do you rank the suppliers of these cements brand?

Rank 1. Rank 2. Rank 3. Rank 4.a. Acc

b. Jaypee

c. Birla Gold

d. Kcl

e. Prism

12.What the different discount you normally get from the companies?(Company)

Acc Kcl Prism Jaypee Satnaa. Quantity discount

b. Cash discount

c. Quarterly discount

d. Yearly discount

e. Tax discount

13.How much discount you normally get from companies?Rs.8 Rs.10 Rs.15 Rs.20

a. Accb. Jaypeec. Birla Goldd. Kcle. Prism

14.When you normally get discount from companies?Acc Kcl Prism Jaypee Satna

a. Jan-Feb


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b. Mar-Aprc. May-Juned. Aug-Sepe. Oct-Nov

15.Which schemes is the most popular other than conventional schemes?a. Yearly discount

b. Tax discountc. Gold schemed.

Foreign Tour

e. Gift offers16.What problem you normally face dealing with company?

a. Irregular supplyb. Different rates in same marketc. Slow settingd. Packaginge. Any other

17.Do you like to companies give any cash discount or quantity discount?a. Always

b. Time to timec. Peak seasond. Any other

18.What is reason for the rate gap of different brands in?


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a. Qualityb. Brand valuec. Brand priced. Cost differencee. Any other

19. How much retail price you normally get from companies given below on their

retail price?

Company Name Gain

a.

270-290

b. 285-300c. 295-310d. 310-325e. 325-345

20.What is your overall satisfaction in cements brands?(0-10)Rank

a. Accb. Jaypeec. Kcld. Birla golde. Satna

21.How many customer satisfied uses these cement?(0-10)Rank

a. Accb. Birla Goldc. Kcl


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d. Jaypeee. Prism

22.How would you compare kcl brand cements with other cements brands?a. Much better

b. Better..c. Same

23. What improvement do you want in kcl?

24. What you expect from kcl cements?


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