2014

ACC Limited, Kolkata Abhijeet Kasliwal

[TO DETERMINE THE DRIVERS OF PURCHASE OF PREMIUM CEMENT PRODUCTS AND ASSESS ACC’S

POSITION VIS-À-VIS ITS COMPETITORS] A Market Research - to find out the drivers of consumer purchase of premium products. The data is collected from authorized ACC dealers and engineers from Kolkata and different geographic locations nearby Kolkata, including South-24 Parganas, North-24 Parganas, Howrah and Hooghly Districts of West Bengal. The factors coming out to be significantly important in consumer purchase are asked to be ranked by multi-brand dealers, for different brands, to get a perceptual mapping of ACC premium products in relation to its competitors

SUMMER INTERNSHIP REPORT

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ACKNOWLEDGEMENT

First and foremost, I am thankful to the almighty that took care of me during the course of my

project.

I want to express my gratitude to the IMI Kolkata Placement team for arranging the SIP with

ACC Limited. I also want to thank ACC Limited for giving me a chance to work with them.

I want to thank Mr. Gautam Mukhopadhyay, Head, Sales Unit, Dalhousie, Kolkata for giving me

the initial insights and assigning me the two company mentors

I want to thank my faculty mentor – Dr. Mohua Banarjee, Associate Professor marketing and

Retail, IMI Kolkata and my company mentors – Mr. Dibyendu Nandy, Chief Manager and Mr.

Biswadeep Basak, Manager- Sales, Sales Unit, ACC Limited, Dalhousie Kolkata; for their

continuous support and guidance, during the endeavor of the project.

I also want to mention the family support I have got, the sole reason for my motivation during

the course of the project.

I also want to mention the help which was given by Mr Ashok Kumar Padhy sir, Mr. Shankar

Bhattacharya sir and Mr. Arindam De sir, who helped me out with the addresses and contact

numbers of different dealers and engineers.

Last but not the least; I also want to thank all the Respondents (Dealers and Engineers) who

helped me complete my survey.

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I. UNDERSTANDING OF THE COMPANY

I.1 BUSINESS MODEL Indian cement industry follows a ‘del-credere agent (DCA)’ sales model (Italian for belief and

trust) in which the distributor sells good, on behalf of the cement manufacturer on credit, to

the retailers and acts as a surety, who is liable should the retailer makes default. Distributor is

an agent who not only establishes privities of contract between the manufacturer and the

retailers, but who also guarantees to the manufacturer the due performance of the contract by

the retailer. He is liable, however, only when the retailer fails to carry out his contract, e.g., by

insolvency. He is not liable to the manufacturer, if the retailer refuses to carry out his contract

for example, if the customer refuses to take delivery.

In the modern format of the above mentioned sales model, distributors also need to acquire

new customers, generate orders and coordinate for dispatches. He pays the full invoice value to

the manufacturer within 7-10 days from dispatch, while offering open credit to the customer. If

the customer doesn’t pay, then in the worst cases distributors have to face the bad debts as

well. For retail sales, Distributors purchases from the manufacturer and sells directly to the

customers. In all the cases, logistics and pricing is taken care of by the manufacturer. The

current sales model gives liberty to the customers to delay or even default payments and the

distributor has to bear the interest costs associated with them.

I.2 PRODUCTS/SERVICES ACC is a part of the world's largest cement group HOLCIM, which is a Swiss based group

operating in more than 70 countries, with 90,000 employees. ACC, over the last 7 decades, has

been continuously improving and innovating to meet the ever changing demands of different

customer segments. Thus, ACC has introduced two premium cement products, viz., ACC F2R in

2007 and ACC Plus+ in 2013 to address local needs of East India.

1.) ACC F2R is a product manufactured at a world class manufacturing facility, designed to withstand the attack of salt and toxins. The use of blast furnace slag, which is a byproduct of the Steel industry, as a Supplementary Cementitious material, enhances the durability of the structures and helps building long lasting homes. This product is highly recommended for all critical applications in house construction, from foundation to roof. Additionally this is an eco-friendly product as the use of the Blast Furnace Slag helps in considerable savings in energy, conserving natural resources and also protects mother earth from green house gases.

2.) ACC Plus+ is produced by inter grinding high quality Ordinary Portland Cement clinker with superior quality processed Fly ash. The Fly ash contains highly reactive micro silica, which is mixed with high quality clinker based on norms set by ACC's own R&D division. This reactive silica has very good characteristics. It gives a greater degree of fineness to the cement, improves workability during mixing and makes concrete more Dense, Impermeable and Corrosion-Resistant, thus making the structures more durable and long lasting.

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Apart from ACC F2R and ACC Plus+, having their markets in West Bengal, Orissa, Bihar, Jharkhand and most of the North-east, ACC also has 3 more premium product categories marketed throughout the country, as per their demands in those regions These are:- 3.) ACC Gold – water-repellant cement with its markets in Punjab, HP and J&K 4.) ACC Concrete – a PSC with its markets in Maharashtra, Karnataka and AP 5.) ACC Coastal+ – Coastal Karnataka, Goa and Entire Kerala

I.2.1 Cementitious material based characteristics

Since the invention of Portland cement in the early 19th century, concrete has become the

most widely used construction material in the world. In the search for materials which are more

cost-effective or more efficient, cement replacement materials such as natural pozzolans,

calcined clays, shale and soils, slag, rice husk ash or pulverized fuel ash are attracting much

interest. There are some types of cement that always find good demand in the Eastern part of

Indian market. To know their characteristics and in which area they are most required, it will be

better to take a look at some of the details given below.

1. Ordinary Portland cement (OPC): Also referred to as grey cement or OPC, it is of much use

in ordinary concrete construction. In the production of this type of cement in India, Iron

(Fe2O3), Magnesium (MgO), Silica (SiO2), Alumina (AL2O3), and Sulfur trioxide (SO3)

components are used.

2. Portland Blast Furnace slag cement (PBFSC): The rate of hydration heat is found lower in

this cement type in comparison to PPC. It is most useful in massive construction projects,

for example - dams.

PBFSC = Portland + Blast Furnance Slag (a byproduct of steel industry)

3. Portland Pozolona Cement (PPC): As it prevents cracks, it is useful in the casting work of

huge volumes of concrete. The rate of hydration heat is lower in this cement type. Fly ash,

coal waste or burnt clay is used in the production of this category of cement. It can be

availed at low cost in comparison to OPC.

PPC = Portland + Fly Ash (a byproduct of coal energy plants)

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I.3 ORGANIZATIONAL STRUCTURE

I.4 ORGANIZATIONAL POLICIES

ACC has clearly stated guidelines concerning recruitment, termination, career advancement,

performance appraisal, professional and employee ethics and code of conduct. The Company’s

personnel policies and processes enshrine equal opportunities to all and non-discrimination

with regard to gender, caste, creed, ideology or other opinion, whether social, political or

religious. Also ensured is a due process for employee consultation and participation in

organizational development and policy formulation.

I.4.1 Recruitment

Recruitment in ACC is a fair and transparent process with adequate opportunities to look for

suitable candidates internally as well as from outside. Applicants are generally invited on the

basis of specific advertisements in newspapers and websites. A Committee of officers called the

Central Recruitment Committee handles the entire recruitment process comprising screening of

applications, preliminary short-listing, interviews and final selection. Every attempt is made to

make the selection process as objective as possible by incorporating tests of competence. In

some cases, outside consultants are retained. All decisions of the recruitment committee are

recorded in respect of each candidate. Candidates are informed of their short-listing and

selection immediately after the interview or at the earliest thereafter.

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I.4.2 Performance management

The Company’s performance management system provides ample opportunities and

motivational incentives to employees so as to reward and retain good talent within the

Company. These incentives include Performance Linked Incentives, Good Work Awards, Letters

of Appreciation, Special Increments, and Promotions, Nomination to external training programs

in India and abroad, public felicitation and appreciation. Some plants have Best Employee and

Employee of the Month Awards and recognition. Competent employees and those who display

aptitude are invited to become Trainers themselves and receive Train the Trainer facilitation.

I.4.3 Training & Development

Performance Management System incorporates a process called Competency Assessment and

Training and Developmental Needs wherein appraisers are specifically called upon to identify

and assess training needs of employees at specific intervals that do not coincide with

Performance Appraisals. This is so that training needs can be assessed objectively. Training is

imparted to take care of an individual’s career development as well as functional and skill

enhancement. Competency and Development training inputs include Skill and general

performance enhancement, communication skills and Career development. Functional training

needs are identified and conducted by functional departments while Corporate HR organizes

competency and developmental inputs.

I.4.4 Employee welfare & perquisites

Employee welfare receives prime attention at ACC. ACC have several schemes for general

welfare of employees and their families. These cover education, healthcare, retirement

benefits, loans and financial assistance and recreation facilities.

ACC townships have schools that are often the best in the district. Education at these

schools is subsidized for employees’ wards. ACC also offer attractive scholarship allowances

for children studying at places away from their parents, merit scholarships for outstanding

children and financial assistance for employees’ children to pursue higher professional

education.

Liberal medical benefits are made available to employees and their family members by way

of reimbursements towards normal medical treatment, domiciliary treatments and special

sanctions for serious illness. Each of ACC townships has well-equipped health care centers

with qualified medical staff and facilities, ambulance, referrals and tie-ups with reputed

hospitals for specialized treatment. In addition, there are regular health checkups, camps

and programs.

Employees are eligible to apply for loans and financial assistance for various purposes such

as purchase of assets, residential premises as well as a scheme that provides for supply of

cement at subsidized rates to those building their own houses.

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Employees are provided furnished and unfurnished accommodation based on their

entitlements. At many locations, the employees are given free electricity, free water supply

and free bus facility for nearby places and schools. These houses are well-maintained and

periodically upgraded.

I.5 FINANCIAL ANALYSIS

Eastern India will have maximum capacity additions with nearly 15 million metric tonne to be

added in the next three years. In the post election period, a provision in the Union Budget of

2013-2014 provides an investment allowance for projects of INR 1000m and above between 1

April 2014 to 31 March 2015. Once elections related uncertainty is resolved, the Ind-Ra agency

expects clarity of corporate decision-making with regards to Capex and there will be a high

cement demand from 2HFY15.

2014 Outlook: Cement Manufacturers

According to local reports, ACC Ltd is planning an Rs.3000 crore investment in cement facilities

in eastern India. The cement major, part of Switzerland’s Holcim Group, allegedly hopes to

expand capacity by 4 million over the next three years by expanding two facilities and beginning

construction of another. These comments were made at a press briefing for a new brand of

cement, called ACC Plus+, which has been launched in West Bengal.

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II. OBJECTIVE

MANAGEMENT PROBLEM To determine drivers of consumer purchase of premium cement products. MARKET RESEARCH PROBLEM To determine all the intangible and tangible values, a consumer looks for while purchasing a premium cement product. (i) To identify different factors affecting purchase of premium cement products (ii) To assess the ACC’s premium cement products position Vis-à-vis its competitors PROBLEM/ISSUES A new product needs to be managed as if it were an entrepreneurial enterprise. The development may begin with brainstorming activities or from the idea of a creative observer of a marketplace within the organization. These ideas may come from many sources, including monitoring the actions of the competition, merger and acquisition possibilities, research and development, or analysis of market or consumer buying trends. This study, more or less, deals with Market Research as a sources of these ideas. So, there is a need to address the comprehensive set of wants, needs and desires and thus to break down customer value into discrete chunks that span emotional and functional needs, defined within the context of cement products. It will enable ACC to develop a sound solution that meets the identified needs. THEORITICAL FRAMEWORK: THE VOA TOOL

The Value Opportunity Analysis (VOA) tool connects what companies provide through their products and services to what customers need and desire. This tool addresses a comprehensive set of wants, needs and desires, breaking customer value into discrete chunks that span emotional and functional needs. The needs are specified at a general level so that they can be defined within the context of a given product. The result is an understanding of attributes of a product up front, before the product begins to take form. For cement products the proposed needs, which are used in designing the questionnaire, are: Confidence - belief, power - strength, visual - color/ darker or dull, visual - appearance/ dust-freeness or attractive packaging, tactile- smooth finish or fine particles, comfort - availability/ locational distribution, comfort - complaint redressal/ employee behavior, ease of use - workability/ reduced maintenance, reliable – originality assurance, craftsmanship - packaging temper proof/ no variation in composition over time, packaging moisture proof, quantity - volume/ finer particles occupying lesser space. (Please refer Ques.4 of the questionnaire in the appendix)

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III. RESEARCH DESIGN

The Research methodology included secondary data analysis followed by Quantitative research

in sequence. The research is descriptive in nature. The primary data is collected using a random

sampling technique which is a representative of the population.

SAMPLING TYPE As in this case, relatively homogeneous groupings are evident in the population; so, Cluster

sampling technique is being used. Different clusters are initially identified, namely, Shalimar

Area (Howrah and Hooghly Districts), Cossipore Area (North-24 Paraganas District) and Kalighat

Area (South-24 paraganas District). Cluster sampling is most appropriate when the clusters are

approximately the same size. But, if this is not possible, samples proportionate to cluster size

are used from the respective clusters.

SAMPLE SIZE Sample size requirements, in the case of factor analysis, depend on the population (true) factor

model. Arrindell and van der Ende (1985), suggests for a 20 item questionnaire, a subsample of

N=78 is sufficient. This N corresponds to variable-to-factor ratio of 3.9 which is true in this case

as well. These results suggest that subsample, generally smaller than recommended full sample,

might be adequate in some applied factor analysis studies. These researchers used large sample

of observations on 2 different questionnaire and followed procedure, as suggested in Barrett

and Kline’s (1981) study, to draw subsamples and compared their solutions with full sample

solutions.

RESPONDENT PROFILE This charts shows the respondents profile as per their monthly sales data (in tones) and the

time (in years) with which they are attached with the cement business.

9%24%

13%54%

Sales>1000 Tonnes

500-1000 Tonnes

<100 Tonnes

100-500 Tonnes

70%18%

12%

Time

>10 Yrs

1-5 Yrs

5-10 Yrs

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IV. DATA COLLECTION

Areas covered were

Kalighat area (data collection from 34 respondents)

Shalimar area (data collection from 23 respondents)

Cossipore area (data collection from 21 respondents) (Please refer data collection details in the appendix)

Questionnaire Design

A part of Questionnaire was designed using the reference of the before mentioned theoretical framework. Questionnaires to 100, 500 and 1000 tonners included questions related to attribute, cementitious based.

The remaining part was designed using the references of different pamphlets being provided by the company that they use for their products promotions. Questionnaires to Engineers included questions related to cementitious material based characteristics.

The mode of administration for 100, 500 & 1000 tonners, masons and influencers was personal.

All the respondents comprising dealers, retailers and influencers were supposed to know Bengali/Hindi language and thus, there was a a questionnaire designed in Bengali/Hindi language, if in case any particular question was not clear to the respondent.

Field-work required lot of planning before its execution. There were area-wise lists of contact addresses and contact numbers of different dealers and engineers provided by the company. First the Kalighat Area was covered, followed by Cossipore Area and then the last was Shalimar Area. Before going to the field, each and every respondent was asked to brief their location, so that they can be located easily for the face to face survey, on the field. And if the telephone calls were not received or the numbers in the list provided were not working, then those respondents were searched out on internet for contact details (using Just Dial application). Directions to reach the respondents, either collected directly from the respondents or indirectly from the internet, were noted down and a plan was prepared to reach as many as respondents (using Google Maps application). During the fieldwork, there was the first contact with the respondents. The respondents were asked different questions in the order of the questions mentioned in the questionnaire and the responses were captured according to their responses. Whenever there were questions using a 5 point-likert scale, the neutral response was captured as 3 whereas negative and positive responses were captured as 1 or 2 and 4 or 5, respectively. Now, a negative or a positive response was captured as 1 or 5, respectively, when the respondent’s response was very strong; otherwise it was captured as 2 or 4, respectively. Instead the questionnaire was well structured, the respondents were probed to enlarge on, clarify, or explain their answers. This helped in gaining qualitative insights beyond the normal data collection. Apart from this, the response rate was almost 100%, with only 2 respondents refusing to complete the survey. This was because they were contacted in their lunch timings. Otherwise, the respondents never showed any kind of resistance, when they were contacted. Although, it was sometime time-consuming, extending up to 40 minutes, if they were very busy with their customers. The average time to complete the questionnaire was around 20 minutes.

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V. DATA ANALYSIS

Factor Analysis was employed, a commonly used data reduction technique. This multivariate

statistical technique was primarily used for, reducing the number of variables, from large

number to small, on the basis of interdependencies. The analysis included

KMO and Bartlett’s test of spherecity – to know the significance of the analysis

Principle component analysis – that transforms a number of correlated variables into a

smaller number of uncorrelated variables called principal components

Scree plot – that shows the fraction of total variance in the data as explained by each PC

Rotated component matrix – shows estimates of the correlations between each of the

variables and the estimated components to do a factor analysis.

Apart from this, there are excerptss of qualitative insights from the respondents during the

data collection which can be very helpful to understand the customer’s perceptions at very

minute level.

V.1 Factor Analysis – Portland Slag cement or ACC F2R KMO and Bartlett's Test

a

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .514 Bartlett's Test of Sphericity Approx. Chi-Square 110.805

df 45

Sig. .000

a. Only cases for which Have you purchased in the recent past? = Yes are used in the analysis phase. As KMO value is beyond 0.5 and Significance level is below 0.05, these results are significant and can be used for inferring conclusions. Total Variance Explained

a

Component

Rotation Sums of Squared Loadings

Total % of Variance Cumulative %

1 1.800 18.002 18.002 2 1.704 17.045 35.047 3 1.491 14.914 49.961 4 1.376 13.765 63.726

Extraction Method: Principal Component Analysis. a. Only cases for which Have you purchased in the recent past? = Yes are used in the analysis phase. Scree Plot

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Rotated Component Matrix

Component

1 2 3 4

quick setting .147 -.032 .144 .745 thermal cracks .189 .776 .202 .206 drying shrinkage -.204 .800 -.035 -.023 steel bars .333 .641 -.389 .033 road construction .825 -.031 .057 .104 marine .166 .044 .655 .254 bridge .822 .117 .123 -.045 dirt adherence minimum -.372 -.128 .288 -.570 finishing -.022 .040 -.863 .133 reduced water requirement .261 -.128 -.041 -.598

a. Only cases for which Have you purchased in the recent past? = Yes are used in the analysis phase. NAMING OF FACTORS: 1 ROAD, BRIDGE (COMMERCIAL APPLICATIONS) 2 THERMAL CRACKS, DRYING SHRINKAGE, CORROSION RESISTANT (PROBLEMS SOLVER) 3 FINISHING 4 QUICK SETTING, DIRT ADHERANCE MINIMUM, REDUCED WATER REQUIREMENT (WORKABILITY)

V.2 Factor Analysis - Fly ash based cement or ACC Plus+ KMO and Bartlett's Test

a

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .510 Bartlett's Test of Sphericity Approx. Chi-Square 71.176

df 45

Sig. .008

a. Only cases for which how long = >10 years are used in the analysis phase. As KMO value is beyond 0.5 and Significance level is below 0.05, these results are significant and can be used for inferring conclusions Total Variance Explained

a

Component

Rotation Sums of Squared Loadings

Total % of Variance Cumulative %

1 2.033 20.331 20.331 2 1.640 16.396 36.727 3 1.395 13.952 50.679 4 1.321 13.206 63.885

Extraction Method: Principal Component Analysis. a. Only cases for which how long = >10 years are used in the analysis phase. Scree Plot

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Rotated Component Matrix

Component

1 2 3 4

fine -.044 -.532 -.694 .108 reduced water requirement .731 .024 .048 .135 quick setting -.779 .113 -.232 .062 foundation work -.034 .891 -.123 .014 water seepage .247 -.133 .646 .010 aesthetics .704 -.235 -.135 .152 stable -.339 .624 .050 .228 marine -.445 -.118 .628 .241 road construction .138 .257 .097 .651 bridge .032 -.079 -.030 .854

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations. b. Only cases for which how long = >10 years are used in the analysis phase. NAMING OF FACTORS: 1 WATER REQUIREMENT, QUICK SETTING (WORKABILITY) 2 FOUNDATION WORK, STABLILITY (COHESIVENESS) 3 FINENESS, WATER SEEPAGE (FINENESS) 4 ROAD, BRIDGE (COMMERCIAL APPLICATIONS)

V.3 FACTOR ANALYSIS - GENERAL FEATURES OF A TYPICAL CEMENT

PRODUCT

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .502 `Bartlett's Test of Sphericity Approx. Chi-Square 144.274

df 66

Sig. .000

Only cases for which Have you purchased in the recent past? = Yes are used in the analysis phase. Total Variance Explained

a

Component

Rotation Sums of Squared Loadings

Total % of Variance Cumulative %

1 1.903 15.857 15.857

2 1.686 14.052 29.909

3 1.635 13.627 43.536

4 1.589 13.245 56.781

5 1.156 9.632 66.414

Extraction Method: Principal Component Analysis. a. Only cases for which Have you purchased in the recent past? = Yes are used in the analysis phase Scree Plot

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Rotated Component Matrix

a,b

Component

1 2 3 4 5

color .186 -.769 .104 .003 .020 attractive packaging .782 -.349 .109 -.015 -.176 smooth finish .812 .100 .028 .114 .054 faith/ brand name .465 .154 -.418 .000 .439 tamper proof packaging .038 -.177 -.016 .871 -.032 employee relations .246 .526 .523 .055 -.199 water requirements -.115 -.105 .818 .251 -.119 moisture proof packaging .017 .457 .155 .481 .297 availability .433 .491 .150 .138 -.174 status -.096 -.114 -.003 .035 .834 compressive strength .310 .164 .662 -.186 .244 non duplicate assurance .114 .361 .095 .682 .011

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 12 iterations. b. Only cases for which Have you purchased in the recent past? = Yes are used in the analysis phase.

NAMING OF FACTORS: 1 ATTRACTIVE PACKAGING, SMOOTH FINISH, BRAND NAME (OUTLOOK) 2 EMPLOYEE BEHAVIOR, AVAILIBILITY, RESPONSIVENESS (SERVICE) 3 WATER REQUIREMENT, COMPRESSIVE STRENGTH 4 TEMPER PROOF PACK, MOISTURE PROOF PACK, ORIGINALITY ASSURANCE (Bag Strength) 5 STATUS

VI. RESULTS AND DISCUSSIONS

VI.1 FACTOR ANALYSIS RESULTS:

35 Different variables got clubbed into 10 factors at the end of the factor analysis, giving a variable to factor ratio of 3.5, which is a very helpful result to do further analysis. These factors were used to create a perceptual map, showing ACC premium product’s position vis-à-vis its competitors. 1.) SLAG BASED CEMENT FACTORS:

COMMERCIAL APPLICATIONS - ROAD, BRIDGE

WORKABILITY - QUICK SETTING, REDUCED WATER REQUIREMENT, DIRT ADHERENCE PROBLEM SOLVER - THERMAL CRACKS, DRYING SHRINKAGE, CORROSION RESISTANT

FINISHING

2.) FLY ASH BASED CEMENT FACTORS:

COMMERCIAL APPLICATIONS - ROAD, BRIDGE

WORKABILITY - QUICK SETTING, REDUCED WATER REQUIREMENT COHESIVENESS - FOUNDATION WORK, STABLILITY

FINENESS - FINENESS, WATER SEEPAGE

3.) GENERAL FACTORS:

OUTLOOK - ATTRACTIVE PACKAGING, SMOOTH FINISH, BRAND NAME

SERVICE - EMPLOYEE BEHAVIOR/RELATIONS, AVAILIBILITY

PACKAGING - TEMPER PROOF PACK, MOISTURE PROOF PACK, ORIGINALITY ASSURANCE

STATUS

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VI.2 Perceptual mapping

Finally, Different Multi-brand dealers (Dealers keeping the premium cement products of ACC, Ambuja, Lafarge and Ultratech) were asked to rank the different brands on the factors generated from the factor analysis. The result of above exercise is a perceptual map which gives a relative performance of ACC premium products with respect to those factors. Rank 1 means ACC is performing very well as far as that factor is concerned. Rank 3 means that ACC is lagging behind its competitors in those areas of concern. Surprisingly, ACC has not been ranked 4th with respect to any of the factor.

ACC premium products are the first choice of customers for their packaging (look-wise), status and fineness.

ACC premium products are the second choice in service after Ultratech and finishing after Lafarge.

ACC premium products are lagging in bag strength, workability and commercial applicability.

VI.3 Qualitative Findings These are the findings which are not directly used in any statistical analysis but are useful source of qualitative information.

VI.3.1 Frequency Analysis

The frequency analysis of different responses can be a very useful result to assess which variable is more important in the eye of the customer, relatively. The following table tries to show the relative importance of different variable as depicted by the customers during their purchase. These are more or less based on what they ask the dealer while purchasing the cement products. The “% important” column takes into consideration the “important” and “very important” responses in the 5-point likert scale. The”Plus % neutral“column considers the % important responses plus the “sometimes important sometimes not important” responses as well. Finally the variables are arranged in the decreasing order of ”Plus % neutral“ column, from the most important to least important variables.

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% important weighted scores plus % neutral weighted scores

COLOR 84.00% 0.08 100.00% 0.08

COMPRESSIVE STRENGTH 75.00% 0.07 93.00% 0.08

ORIGINALITY ASSURANCE 79.00% 0.08 92.00% 0.07

AVAILIBILITY 76.00% 0.07 91.00% 0.07

RESPONSIVENESS 66.00% 0.06 90.00% 0.07

FAITH IN BRAND 76.00% 0.07 88.00% 0.07

MOISTURE PROOF PACK 81.00% 0.08 87.00% 0.07

ATTRACTIVE PACK 81.00% 0.08 86.00% 0.07

EMPLOYEE BEHAVIOR 74.00% 0.07 86.00% 0.07

SETTING TIME 69.00% 0.07 84.00% 0.07

TEMPER PROOF PACK 72.00% 0.07 83.00% 0.07

SMOOTH FINISH 63.00% 0.06 72.00% 0.06

STATUS 62.00% 0.06 67.00% 0.05

VOLUME 53.00% 0.05 63.00% 0.05

WATER REQUIREMENT 41.00% 0.04 53.00% 0.04

Weighted scores – factors arranged in order of their importance:

1.) COLOR – (Black or White) - 84%

White is more preferable in domestic application whereas Black is preferred more in commercial applications

Black is more preferred for foundation work whereas White is more preferred for brick and roof work.

Some customers also have perception that the cement which looks good/ beautiful will be better in the performance as well. The same customers find black cement as ugly and that’s why they don’t go for it.

Black look more voluminous because of more visibility, so is the first choice of the contractors.

2.) PACKAGING (induces demand) Attractive packaging – 81%

Customer is concerned about - without hooking, dust-freeness and fresh. Tamper proof packaging – 72%

Customers are also concerned about duplicity

Customer buys in bundle, so they need to keep the bags for longer time Moisture proof packaging – 81%

Due to the moisture ridden climatic conditions, many are found to be concerned about it. Although. it was found to be more important for dealers than customers.

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3.) ORIGINALITY – 79%

It is observed that at some places, where many dealers/ retailers are selling duplicate products, customers are more bothered about the originality of the material, even from the authorized dealers.

The cement is coming to the dealers from different places like Madhukonda, Chaibasa, Jharkhand, Orissa, Barghur and many other plants, so originality is a concern for dealers as well.

4.) WATER REQUIREMENT – 61% Most of the region has an abundant water supply. so as large as 61% of the customers don’t’ even bother about the water requirements. Had it been a place like Rajasthan or any other arid or semi-arid region, it might have been one of the main concerns of the customers. 5.) SETTING TIME - 84%

Customer asks for quick setting cement for the foundation or brick work and slow setting cement in the brick work or roof work.

Masons and contractors ask for quick setting cement, so that they get their work done faster.

Quick setting is more preferable in ground work as the water is fast moving in the ground and thereby leads to more water requirement.

6.) VOLUME - 63% (3 v/s 3 ½ “kadhai” )

Due to more fineness of PPC, the volume of same 50 Kg material is more and thus the bag size increases. The customer perceives that they are getting more amount for the same 50 Kg bag. so they choose for Plus+, many a time.

Black color looks more voluminous because of more visibility. so is the first choice of contractors

7.) RESPONSIVENESS/ COMPLAINT REDRESSAL

Knowledge of ACC help vans is very low to the end customers. Dealers themselves don’t want to share this info as they think that this may lose them their customers, if the company didn’t’ assist them with proper service.

8.) MISCELLANEOUS

FAITH IN BRAND NAME – (buying on the namesake) – 76% a clear message that the brand name is not everything and there are many other factors concerning the customers.

Availability – 76% the tendency to switch to another brand if the brand, they are looking for, is not available, suggesting the competition is very tight.

Employee relation –74% how important is it to have a good, friendly nature and good bonding with the customer, according to you?

Compressive strength – this is the main thing which surprisingly 25% customer doesn’t even bother to ask about.

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VI.3.2 Common attributes (comparable)

These results suggest the following customer perceptions:

ACC Plus+ is perceived to consume more water than ACC F2R

ACC Plus+ is perceived as quicker setting cement

ACC Plus+ results in poorer finishing than ACC F2R

ACC Plus+ is presumed to be more preferable in road construction than ACC F2R.

VI.4 Other findings

Beyond the scope of data collection, there were some very insightful findings that came out of

the survey activity, which can be very helpful to the company

The material of newly launched acc plus+ is irritating and masons are not ready to work

with this product because of this reason.

The dealers are very much upset with the continuous usage of hooks to load/unload the

cement bags to the trucks/warehouses.

VII. LIMITATIONS AND FUTURE SCOPE OF STUDY

The results are generalizable only in the East India. It is notable that Brand equity remains a

largely regional factor (given that sales are regional), as far as the context of cement

companies are concerned, with some local players enjoying considerable brand equity in

their areas of operations. So, the findings cannot be generalized at a national level.

No questions on Longevity, as these cement types are all new, implies still have to look for

longevity.

No customer survey was done because of the time constraints.

Reduced Water Requirement

F2R(85%)> PLUS+(30%)

Quick Setting

PLUS+(92%)>F2R(53%)

Finishing

F2R(100%)>PLUS+(50%)

Road Construction

PLUS+(94%)>F2R(30%)

Bridge Construction

(only 18 responded, out of which 13 ≈ 70% says PLUS+ is

preferred than F2R)

Marine environment –

ACC Coastal is used for themarine environment!!!

PLUS+(50%)>F2R(15%)

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VIII. APPENDIX

A. DATA COLLECTION DETAILS:

B. Kalighat area (data collection from 34 respondents)

C. Shalimar area (data collection from 23 respondents)

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D. Cossipore area (data collection from 21 respondents)

B.QUESTIONNAIRE (IN ENGLISH) Q.1 (A) Do you purchase a premium cement product? a.) Yes b.) No

Q.1 (B1) Which brands do you look for while purchasing premium cement products? a.) ACC Plus+ b.) ACC F2R c.) Lafarge Concreto d.) Lafarge Duraguard e.) Ambuja Plus f.) Ambuja Concreto g.) If Others, Please specify___________________________________________________

Q.1 (B2) Do you intend to purchase a premium cement product? a.) Premium cement only b.) Ordinary cement only c.) Both Q.2 How much amount of cement do you purchase on a monthly basis? a.) <100 tonnes b.) 100-500 tonnes c.) 500-1000 tonnes d.) >1000 tonnes

Q.3 Since how long are you into purchasing cement products? a.) <1 year b.) 1-5years c.) 5-10 years d.) >10 years

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Q.4 Rate the following statements in relation to their importance in a purchase of a typical cement product (GENERAL QUESTTIONARE, TO BE FILLED BY EVERYONE) (Rate from 1 to 5 between not important to very important)

1. Does color of cement, as in, black or white or dull, important to you?

1 2 3 4 5

2. Does appearance, as in, attractive packaging or dust-freeness, important to you?

1 2 3 4 5

3. How important is smooth finishing produced by a cement to you?

1 2 3 4 5

4. How important is faith in a company matters to you, while purchasing a cement product of that company? 1 2 3 4 5

5. Do you feel that temper proof packaging claiming no variation in composition over time matters to you?

1 2 3 4 5

6. How important do you feel that availability of a cement product when required matters to you?

1 2 3 4 5

7. How important do you feel that complaint redressal / responsiveness of the company matters to you?

1 2 3 4 5

8. How important is employee behavior/ employee relations/ attachment to the company to you?

1 2 3 4 5

9. How important do you feel reduced water requirement important to you?

1 2 3 4 5

10. How important is the authenticity/ originality/ surety of non spuriousness/ genuineness of the cement matters to you?

1 2 3 4 5

11. Do you feel that moisture proof packaging matters to you? 1 2 3 4 5

12. How important is volume, as in, finer particles occupying lesser space, matters to you?

1 2 3 4 5

13. How important is compressive strength, associated with a cement product, to you?

1 2 3 4 5

14. How important do you feel setting time of the cement matters to

you? 1 2 3 4 5

15. How important do you feel compressive strength of the cement

matters to you? 1 2 3 4 5

Q.5. (A) Are you aware of Slag based cements?

a.) Yes

b.) No

Not

Important

Very

Important

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Q.5.(B) Rate the following statements related to them, on the basis of your experience (to be filled by civil engineers)

1 2 3 4 5

1 Slag based cements (White) result in reduced water requirement

2 Slag based cements give higher rate of development of mechanical strength

3 Slag based cements reduce thermal cracks

4 Slag based cements reduce drying shrinkage

5 Slag based cements protect steel bars from corrosion

6 Slag based cements are preferred in road construction

7 Slag based cements are preferred in marine environment.

8 Slag based cements are preferred in bridge piers and abutments.

9 Slag based cements does not allow dirt to adhere to them.

10 Slag based cements result in a fair-faced finish

Q.6. (A) Are you aware of Fly Ash based cements?

a.) Yes

b.) No

Q.6. (B) Rate the following statements related to them on the basis of your experience (to be filled by civil engineers)

1 2 3 4 5

1 Fly ash based cements (Black) have more fineness

2 Fly ash based cements result in reduced water requirement

3

Fly ash based cements give higher rate of development of mechanical strength

4 Fly ash based cements are preferable in RCC applications

5 Fly ash based cements reduce water seepage

6 Fly ash based cements provide better aesthetics

7

The freshly placed concrete is very stable, and less bleeding is observed.

8 Fly ash based cements are preferred in marine environment

9 Fly ash based cements are preferred in road construction

10 Fly ash based cements are preferred in bridge piers and abutments

Strongly

Disagree

Strongly

Agree

Strongly

Disagree

Strongly

Agree

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IX. REFERENCES

1.) Robert C. MacCallum, Keith F. Widaman, Shaobo Zhang and Sehee Hong, (1999) "“Sample

Size In Factor Anlysis", psychology methods, Vol. 4 No. 1. pp.84– 99

2.) Peter Boatwright, Jonathan Cagan, Dee Kapur, Al Saltiel, (2009) "A step-by-step process to

build valued brands", Journal of Product & Brand Management, Vol. 18 Iss: 1, pp.38 – 49

3.) Malhotra, N. K., & Dash, S. (Eds.). (2013). Marketing Research: An Applied Orientation in

India, Bangladesh, Bhutan, Pakistan,Nepal, Sri Lanka and Maldives

4.) Wienclaw, Ruth A. (2014)“New Product Management -- Research Starters Business”., New

Product Management, p1-1. 10p.

5.) Dilip Roy, Saikat Banerjee, (2007) "CARE-ing strategy for integration of brand identity with

brand image", International Journal of Commerce and Management, Vol. 17 Iss: 1/2, pp.140

– 14

6.) Walfried Lassar, Banwari Mittal, Arun Sharma, (1995) "Measuring customer-based brand

equity", Journal of Consumer Marketing, Vol. 12 Iss: 4, pp.11 - 19

7.) http://www.indiancementreview.com/News.aspx?nId=789NxThttyXVzRhGUSG/Zw==&N

ewsType=Need-to-evolve-a-new-sales-model-India-Sector

8.) http://en.wikipedia.org/wiki/Del_credere

9.) http://acchelp.in/acc_premium.html#acc-plus

10.) http://www.worldcement.com/news/BRICs/articles/Core_industry_growth_in_India_Feb

ruary_2014_978.aspx#.U0-GoqiSwuc