Summer project report onFactors leading to improvement of Brand Equity

for Ultratech Cement

SUMMER TRAINING/PROJECT REPORT SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE RERQUIREMENT FOR POST GRADUATE DIPLOMA IN

BUSINESS MANAGEMENT.

SUBMITTED BY:AVIK KUMAR MUKHERJEE

PGDM 2009-2011SBS NO. - SBS910387

Name of the Organization: ADITYA BIRLA GROUP, ULTRATECH CEMENT

Place: ASANSOL, WEST BENGAL

SINHGAD INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION

NARHE, AMBEGAON(PUNE - 411041)

D E C L A R A T I O N

I, the undersigned, hereby declare that the Project Report entitled “Factors leading to improvement of Brand Equity for Ultratech Cement ” written and submitted by me to the All India Council of Technical Education in partial fulfillment of the requirements for the award of degree of Post graduate diploma in Management under the guidance of ………………………………………………………….. is my original work and the conclusions drawn therein are based on the material collected by myself.

Place : Pune (Name) AVIK KUMAR MUKHERJEE

Date: Research Student

GUIDE’S CERTIFICATE

This is to certify that the Project Report entitled “Factors leading to improvement of Brand Equity for Ultratech Cement” which is being submitted herewith for the award of the degree of Post graduate diploma in Management of All India Council of Technical Education, is the result of the original research work completed by Mr. AVIK KUMAR MUKHERJEE under my supervision and guidance and to the best of my knowledge and belief the work embodied in this Project Report has not formed earlier the basis for the award of any degree or similar title of this or any other University or examining body.

Place : Pune (Name of the Guide)

Date: Research Student

ABSTRACT

he project gives a broad outline on average monthly sales of different brands of cement in Asansol market and Brand equity of different brands in comparison to total sales and their present market share.

From the research I came across several interesting results about the dealer and the retailer’s behaviour and response towards increment in sales of any particular brand, and then steps are to be taken to matching the expectation in case of UltraTech cement. From the analysis we are able to make aware about the fact that the role of masons and dealers are impressive in hiking the sales of any particular brand by influencing the customer.

T

The dealers and the sub-dealers dealing with UltraTech cement mainly for customer’s demand, good quality, and the promotional activities. The factor that attracts most for dealing with a particular brand is high margin. In Asansol market, there are Three market leaders AMBUJA, LAFARGE and ULTRATECH. There is a competition of beating each other in price because most of the customers are price sensitive. From this project, I got a very clear message from the respondents is that the best medium for advertisement of cement is TV, followed by WALL PAINTING and HOARDINGS. The overall brand image of UTCL is not fair enough in the market. So UTCL has to grab the market by applying various marketing strategies.

Some of the respondents said that the price of ultra tech cement is higher than the market price, but also most of the respondents said that it has to maintain high price for the shake of brand name. So UTCL can apply such a policy that it can maintain brand value as well as it can fix the price as per the market.

When we are talking about non-conventional or prospective cement retailers who are running a shop which is related to construction supplies, those retailers are interested to go for cement retailing but they want a high margin. But this is the area in which UTCL can cover by converting those prospective retailers into dealers or sub-dealers of UTCL. Maintaining a effective relationship with dealers is required in most places.

From this project I got a lot exposure to cement market in Asansol and got the insight of the relationship between manufacturer, retailers, and customers.

PREFACE

t affords me a great pleasure to present this project report, since it deals with a matter in which I am glad to take an active part. The goal of this project report writing is to highlight some important outcomes from the

survey of brand positioning in the field of marketing.IThis report has its coverage of all types of questions and the analytical and graphical representation of those. The analysis has been made simple and the graphical interpretation of those data have been made very clear to the lay man too.

In writing this report I have consulted many books, references, and web portals, they pay profound and grateful thanks.

Every effort has been made to present the subject in easy, clear, lucid, and systematic manner. References at the end of report are given to cover more advanced extension of the topics presented.

I convey my gratitude to all the persons who took an active part and always served me their helping hand for the completion of my project work.

Avik Kumar Mukherjee

CONTENT PAGE

CONTENTS Page No

ACKNOWLEDGMENT 7

LIST OF TABLES 8

LIST OF FIGURES 9

CHAPTER I :Introduction 11

1.1 Basic Theoretical Concepts and Context of the topic 12Brand EquityMeasurement of Brand EquityPositive Brand equity VS. Negative Brand equityFamily branding VS. Individual branding strategies

1.2 Literature Review 131.3 Need of the study 151.4 Objectives of the study 161.5 Research Hypothesis 171.6 Scope of the study 18

CHAPTER II : Profile of the organization 19

2.1 Current status of the company 20Jaan wahi Pehchaan NayiStrategyChak de IndiaBranded channelsUltratech ConcreteBrand UltraTech

2.2 Future Plans of the organization 31

CHAPTER III : Research design & Methodology 33

3.1 Sampling Design 34Sample SizeSampling procedure

3.2 Source and methods of Data collection 35Tools usedInstrument design

3.3 Limitations of the study 37

CHAPTER IV : Overview of Aditya Birla Group and UltraTech cement 38

4.1 History of Aditya Birla Group 39Beyond business

4.2 UltraTech Cement 41Milestones of UltraTech CementProducts

4.3 L&T cement is now UltraTech cement 46Distribution logisticsDifferent plant of UltraTech over IndiaQuality assurance system

CHAPTER V : Data presentation, Analysis and Interpretation 52

5.1 Data Interpretation of questionnaires for Cement sellers 53Overall market share of different Brands in Asansol city

5.2 Analysis of questionnaires for Cement sellers 595.3 Analysis of questionnaires for Masons 675.4 Analysis of questionnaires for Individual House holders 685.5 Analysis of questionnaires for Petty contractors 69

CHAPTER VI : Conclusion 70

How do we research the Brand Equity 72Executive summary of my work done 73Recommendations 74

REFERENCE & BIBLIOGRAPHY : 78

ANNEXURE : 80

Questionnaire for Cement sellers 81Questionnaire for Individual House holders 84Questionnaire for Petty contractors 86Questionnaire for Masons 89

Acknowledgement

This project is an analysis of different brands of cement in trade sector in the Asansol market. This is an outcome of an honest conscious and sincere effort spread over 60 days.

So I express my sincere thanks to all those with whom I have had the opportunity to work and whose thoughts and insights have helped me in competition of the project.

My sincere regards to Mrs. Apoorva Palkar (Director, Simca) for her valuable guidance, encouragement and inspiration during all time in SIMCA.

My sincere regards to Prof. B. Sankaye (H.O.D, MKTG.) for his valuable in Marketing, Strategy Building during the course of the project.

My sincere regards to Mr. Gaurav Dixit for his valuable guidance during the course of the project.

My sincere regards to Mr. Partho Mukhopadhyay (UTCL) for his valuable guidance, encouragement and inspiration during the course of the project. He always give spread his helping hand in every possible way he can. Without him the project cannot be done.

I am also indebted towards the respondents (dealers, petty contractors, individual house builders and masons) for giving their steady response and share their views and experiences.

My sincere thanks to the Dealers / sub-dealers for their valuable inputs.

All of above My sincere regards to my Parents, family, to god and a special person for always giving me the positive energy to go out in the sizzling heat and do my research.

LIST OF TABLES

LIST OF TABLES

Table No. Title of the Table Page No.

Table No. 5.1 Brand equity of leading brand in Zone-1 56

Table No. 5.2 Brand equity of leading brand in Zone-2 57

Table No. 5.3 Brand equity of leading brand in Zone-3 58

Table No. 5.4 Brand equity of different brands in Asansol market 59

LIST OF FIGURES

LIST OF FIGURES

Figure No. Title of the Figure Page No.

Figure No. 5.1 Market share for Zone-1 55

Figure No. 5.2 Market share for Zone-2 57

Figure No. 5.3 Market share for Zone-3 58

Figure No. 5.4 Overall market share in Asansol city 59

Figure No. 5.5 Most preferred brand by cement sellers of Asansol 61

Figure No. 5.6 Most preferred customer brand of Asansol 62

Figure No. 5.7 Frequency of marketing officers meet with retailers 62

Figure No. 5.8 Brand giving customized service in Asansol 62

Figure No. 5.9 Most effective promotional medium in Asansol 63

Figure No. 5.10 Factors attracts more while dealing with Brand 63

Figure No. 5.11 Why UTCL 64

Figure No. 5.12 Why not UTCL 64

Figure No. 5.13 Over all brand image of UTCL in Asansol 65

Figure No. 5.14 Expected services from manufacturers 66

Figure No. 5.15 What customer want 67

Figure No. 5.16 Suggestions from respondents 67

Figure No. 5.17 Rating of UTCL by Masons in Asansol area 69

Figure No. 5.18 Most preferred brand by Masons in Asansol 69

Figure No. 5.19 Most preferred brand by Individual House builders in Asansol 70

Figure No. 5.20 Most preferred brand by Petty contractors in Asansol 71

Chapter I

Introduction

1.1 Basic Theoretical Concepts and Contexts of the Topic

Brand equity

Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. And, at the root of these marketing effects is consumers' knowledge. In other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt appropriately adept measures for the marketing of the brand. The study of brand equity is increasingly popular as some marketing researchers have concluded that brands are one of the most valuable assets that a company has. Brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one.

Brand Equity is the value of a brand built up over a period of time. It is composed of four components namely Image, Perception, Awareness and Loyalty. However some researchers say that image and awareness are the main components and the other two get covered in these two. To calculate brand equity, both the tangible (functional) and intangible (emotional) attributes are measured. The end result of the measurement is brand equity. It’s quite complex and difficult to calculate brand equity. But to make it easier to understand, I would say brand equity is the difference between the expected future sales of a branded product and an unbranded product. Now marketing masterminds have also come up with a new theory "Customer Based Brand Equity" with models to measure it. The models to measure brand equity are based mainly on conjoint analysis. However there are many models and they may have different algorithms.... For detailed information on Brand Equity you can refer "Managing Brand Equity" by David Aaker and Economist Series on Brand Equity.

Measurement of Brand Equity

There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level and still others are at the consumer level.

Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalization - and then subtract tangible assets and "measurable" intangible assets- the residual would be the brand equity. One high profile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand.

Product Level: The classic product level brand measurement example is to compare the price of a no-name or private label product to an "equivalent" branded product. The difference in price, assuming all things equal, is due to the brand. More recently a revenue premium approach has been advocated.

Consumer Level: This approach seeks to map the mind of the consumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness (recall and recognition) and brand image (the overall associations that the brand has). Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand. Brands with high levels of awareness and strong, favorable and unique associations are high equity brands.

All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.

Positive brand equity vs. negative brand equity

A brand equity is the positive effect of the brand on the difference between the prices that the consumer accepts to pay when the brand known compared to the value of the benefit received.

There are two schools of thought regarding the existence of negative brand equity. One perspective states brand equity cannot be negative, hypothesizing only positive brand equity is created by marketing activities such as advertising, PR, and promotion. A second perspective is that negative equity can exist, due to catastrophic events to the brand, such as a wide product recall or continued negative press attention (Blackwater or Halliburton, for example).

Colloquially, the term "negative brand equity" may be used to describe a product or service where a brand has a negligible effect on a product level

when compared to a no-name or private label product. The brand-related negative intangible assets are called “brand liability”, compared with “brand equity” .

Family branding vs. individual branding strategies

The greater a companies brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand. Aspects of brand equity includes: brand loyalty, awareness, association, and perception of quality.

Examples

In the early 2000s in North America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F". This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E". The Toronto Star quoted an analyst who warned that changing the name of the well known Windstar to the Freestar would cause confusion and discard brand equity built up, while a marketing manager believed that a name change would highlight the new redesign. The aging Taurus, which became one of the most significant cars in American auto history, would be abandoned in favor of three entirely new names, all starting with "F", the Five Hundred, Freestar and Fusion. By 2007, the Freestar was discontinued without a replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise move by Alan Mulally. "Five Hundred" was recognized by less than half of most people, but an overwhelming majority was familiar with the "Ford Taurus".

1.2 Literature Review

India is the 2nd largest cement producer in world after china .Right from laying concrete bricks of economy to waving fly over’s cement industry has shown and shows a great future. The overall outlook for the industry shows significant growth on the back of robust demand from housing construction, Phase-II of NHDP (National Highway Development Project) and other infrastructure development projects. Domestic demand for cement has been increasing at a fast pace in India. Cement consumption in India is forecasted to grow by over 22% by 2009-10 from 2007-08.Among the states, Maharashtra has the highest share in consumption at 12.18%,followed by Uttar Pradesh, In production terms, Andhra Pradesh is leading with 14.72% of total production followed by Rajasthan. Cement production grew at the rate of 9.1 per cent during 2006-07 over the previous fiscal's total production of 147.8 mt. (million tons). Due to rising demand of cement the sales volume of cement companies are also increasing & companies reporting higher production, higher sales and higher profits. The net profit growth rate of cement firms was 85%. Cement industry has contributed around 8% to the economic development of India.

Outsiders (foreign players) eyeing India as a major market to invest in the form of either merger or FDI (Foreign Direct Investment). Cement industry has a long way to go as Indian economy is poised to grow because of being on verge of development.

Despite the growth of Indian cement industry India lags behind the per capita production. Supply for cement is expected to remain tight which, in turn, will push up prices of cement by more than 50%. The most important factor for better prices is consolidation of the industry. It has just begun and we will see more consolidation in the coming years. Other budget measures such as cut in import duty from 12.5 per cent to nil etc. are all intended to cut costs and boost availability of cement.

Sadly the adverse effects of global slowdown have not speared this industry too. Demand is sluggish, the government is keeping an eagle eye on prices, domestic coal and pet coke, prices have increased sharply and utilizations rates are down. The numbers coming out are a reflection of grim times. ACC the country’s largest cement company that’s controlled by Swiss giant HOLCIM, registered 2% fall in august sales. The biggest fall since Feb. 2007. Production fell by 5%. To stand against the problematic situation, government as well as cement industry has taken some steps. Companies are focusing on cost of transportation.

One of the strategy is to decrease dependence on road & opt for sea logistics as that can cut transportation cost by 30- 50 %. Some plants are adopting futuristic plan such as setting up captive power plant, moving closer to the customers by creating clicker, crushing, and capacity in key markets, to be more customer centric to generate better revenue. India should push for stricter regulations of market place as to control the prices of big companies and prevent them from forming cartels and exchanging information. To fight with the high inflation, government wants to import more cement from Pakistan .However cement prices are not very much high as other items but still they are increasing. And the reason of high price is surging cost of raw material and transportation cost. Apart from this government also discussed with cement industry not to have increase in prizes and keep consumer interest in mind.

Now the question arise in front of the government is whether the demand by the government is possible to increase through expenditure on infrastructure or not according to the current state of economy when so many crises are going on or how the government allocation of US$ 3.23 billion for the National Highway Development, Project will keep the demand for cement alive? And to what extent the prices of cement should be increase so that consumer can’t affect.

1.1 Need of the study: The Cement industry is one of the largest and most exciting sectors to

be working in today. It is a rapidly changing environment where many advances have taken place over the past 20 years. Furthermore, it will continue to develop and evolve at an ever- increasing pace over the next decade. New technologies and exciting new discoveries have driven this evolution.

This is one of the research done for fulfillment of my study programme of Post graduate diploma in Management.

1.3 Objectives of the Project

The objective can be achieved with respect to the following parameters.

To know brand equity of different brands of cement in Asansol market.

Especially to find out the brand equity of UTCL in Asansol area.

To find out the market share of different brands in cement market of

Asansol.

To know the thoughts and behavior of consumers towards UTCL in

Asansol Market.

For conducting a comparative study of UTCL with respect to other

brands in Asansol.

To understand the retail practices of UTCL in Asansol market.

To find out the dealers and sub dealers perception towards UTCL.

To Know the retailers services towards consumers in Asansol market.

To find out the growth prospective of UTCL including the Behavior of

nonconventional retailers or the potential retailers of cement market in

Asansol area.

1.4 Research Hypothesis

Research Hypothesis is a tentative statement (“educated guess”) about the

expected relationship between two or more variables.

From this study what I wish to investigate is stated below.

To know brand equity of different brands of cement in Asansol market.

Especially to find out the brand equity of UTCL in Asansol area.

To find out the market share of different brands in cement market of

Asansol.

To know the thoughts and behavior of consumers towards UTCL in

Asansol Market.

To find out the dealers and sub dealers perception towards UTCL.

To Know the retailers services towards consumers in Asansol market.

To find out the growth prospective of UTCL including the Behavior of

nonconventional retailers or the potential retailers of cement market in

Asansol area.

To know how the cement market is working in each and every segment

of Asansol market.

To know how the companies build any strategy to solve a problem.

To know the Marketing strategy of UTCL and other companies.

How the companies building relationship with dealers, sub-dealers,

retailers, whole sellers and end users.

How Whole sellers, dealers, retailers building relationship with the

customer.

1.6 Scope of the Study

Though this research has been made for fulfillment of my course structure of Post graduate diploma in Management, even I can say from this study I have learnt a lot and the fulfillment of below said matters.

I have learnt a lot about the Cement selling details, about promotion of cement, about distribution of cement, about pricing of cement, about the cement market etc.

The learning can give me a exposure in a cement company or any FMCG or FMCD or any Pharmaceutical company, as a fresher.

This research is fully made on Primary data Collection, it’s shows that I can handle pressure & it’s a added advantage to grab a good company after completion of my course.

With the help of this research, I can easily conduct any research if after getting a job my company give me any responsibility to conduct a research programme.

Chapter II

Profile of the Organization

2.1 Current status of the company

In step with its global agenda, the cement business of the Aditya Birla Group, is orchestrating a contemporary brand makeover. With UltraTech Cement, the Aditya Birla Group has established itself as not only the most respected domestic player but also among the global leaders in cement. Associate Editor Vidyut Kumar Ta in an exclusive interview with O.P. Puranmalka, Group Executive President, Grasim Industries and Chief Marketing Officer, UltraTech Cement Limited, analyses the strategy behind promoting a single brand identity of the company's cement products.

The Indian cement industry is on a roll. Driven by vertical-trajectory infrastructure development, a booming housing sector and surging global demand, the cement industry has ramped up production capacity, sparking off a spate of mergers and acquisitions to spur growth.

The demand for cement is linked to the pace of economic development in any country. Broadly, this can be categorised into demand for housing construction (homes, offices, etc.) and for infrastructure creation (ports, roads, dams, power plants, etc). The real driver of cement demand is new infrastructure. Although cement is a typical cyclical industry, a huge potential market and rapid growth have led to a surge in cement demand.

Keeping pace with the expanding demand for cement, the cement business of the Aditya Birla Group has integrated its national cement brands into one entity — UtlraTech Cement. Jaan Wahi, pehchaan nayi — this new brand identity sums up the ultimate promise — a forceful statement that communicates the business benefit of the level of service and quality that the company provides to its customers and partners.

Just a few years ago, the Aditya Birla Group bought over the cement business of L&T for around Rs. 2,200 crore. L&T allowed its name to be used for about a year. O.P. Puranmalka, Group Executive President, Grasim Industries, and Chief Marketing Officer, observes that in a very short time the company had to establish a new brand name in the minds of the people and use the L&T mind space. The task was Herculean. Explaining the strategy behind the new brand name, Mr. Puranmalka says: "We wanted to capture the gene code of L&T in the new brand name. So we commissioned research on customer perception about the L&T Cement brand. Of course, we were very sure in our minds that L&T Cement epitomised engineering prowess, technology quality and modernity."

The research findings threw up the same qualities, but the name itself was not associated with anything tangible because L&T was not by itself a meaningful word. Moreover, the group wanted a new brand image, which portrayed the intrinsic premium value of the brand — on cue from the findings of the survey. The outcome was UltraTech Cement. Mr. Puranmalka insists "nothing has changed except the name". There is no doubt that, with the unveiling of this new brand identity, the Aditya Birla Group implemented one of the largest brand transition exercises in India in the category.

Says Puranmalka: "The name UltraTech with the signature line, 'The Engineer's Choice', admirably captures the premium nature of the brand and its salience." According to Mr. Puranmalka, excellent product quality and customer care will remain the hallmark of UltraTech cement.

Jaan Wahi Pehchaan Nayi

Keeping pace with the current industry trend and taking the UltraTech brand to a new pedestal, the group decided to have one national brand. Birla Plus with its very strong presence in the North was a very well known brand. Its tag line 'Har Nirman Ki Jaan' and 'Is cement mein Jaan Hain' had become household phrases. Observes Mr. Puranmalka: "We

opted for UltraTech as the national brand because while on the one hand, it gives us the opportunity to strengthen common attributes of a premium brand, scale of operations and the Aditya Birla Group's reputation, it also provides an opportunity to build on the positioning platform of 'expert' and imagery signifying 'progress', 'cutting edge technology' and 'modernity'.

While highlighting the need to present a single and unified brand identity across the country, Mr. Puranmalka stressed the fact that with this change, only the name of Birla Plus was being changed to UltraTech Cement and the core values and fundamentals on which Birla Plus was built will remain the same. "While both the brands have different identities and personalities, the core or the soul of both the brands is the same - i.e., Aditya Birla Group's lineage, superior product quality, premium cachet, trust and reliability. That is not changing and therefore our campaign is centred on the theme of 'Jaan Wahi, Pehcaan Nayi'," says Mr. Puranmalka.

StrategyAlthough 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 the category driver. We wanted to be different and were constantly on the look out 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.

"Starting with in-stadia branding, we moved on to be the co-sponsor to the Indo-Pak series held in Pakistan. This turned out to be a great success for both the Indian team as well as us. To further strengthen the bonding with the channel partners, over 400 of them were taken to witness the match. It was a glorious and unforgetful experience of visiting Pakistan. This was an event by itself."

Chak De India

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. Many FMCGs have encashed this opportunity. The in-film branding opportunity was used by UltraTech for the first time ever in the cement industry. The film Chak De India, promoting women's hockey in India, became an all-time hit. In the movie UltraTech was the sponsor of the Indian women's hockey team. UltraTech branding was all over, throughout the movie. 'It was a big gamble we took," says Mr. Puranmalka. "Initially we were sceptical, with many big banners with big stars failing in the recent past. After a lot of deliberation, we decided to go ahead with this gamble and finally Chak De India almost became like a national anthem, with India winning the women's hockey title in reality and our cricket team winning the inaugural 20-20 World Cup."

Branded channels

Surging ahead of competition, the cement business brought in a new concept in cement marketing — UltraTech Building Solutions, a one-stop shop for all construction needs. "This is a unique concept and was tested in Rajkot which is one of the fastest-growing cities in construction in the country today," says Mr. Puranmalka. "Advocating our Plan, Build and Support" philosophy, it seeks to enhance the shopping experience of customers and strengthen existing trade partnerships, by upgrading the service proposition. It offers a wide spectrum of end-to-end home building solutions, high quality construction materials and allied value-added services. As a business model, UltraTech Building Solutions offers home building solutions from planning to completion.

Basically, every customer who walks in to UltraTech Building Solutions outlet receives guidance on construction-related issues as well as value-added services like Vastu, usage of budget software to estimate costs involved for construction, paper clearance procedures, etc. The customer gets a ready reckoner of information on how to choose and buy quality construction materials. With the Rajkot success and with key learning points, the company intends to open many more outlets across the country.

UltraTech Concrete:

While the economy is growing, timely completion of infrastructure projects has become more challenging. With emerging technologies, one no longer has to maintain huge stocks of cement and allied products, create chaotic environment and increase costs; ready-made concrete is the answer. The company forayed into the ready mix concrete about eight years back. With its first

plant commissioned in Hyderabad, ready mix concrete was sold as a brand, 'Birla Ready Mix'. True to its tagline 'concrete on call', the company was able to capture the imagination of customers and service them round the clock. "The concept was new then," says Mr. Puranmalka. "It was more of concept selling than a product. We had to tailor-make our communication around issues in comparison with the site mixed concrete, quality consistency, concrete testing facility, ease of handling, technology, etc. In a very short time Birla Ready Mix Concrete became a generic name. The success of the brand led to the opening of a few more plants in Hyderabad itself and expansion to other states pan-India. With the transition of Birla Plus to UltraTech Cement, even Birla Ready Mix Concrete was rechristened UltraTech Concrete'.

"Our UltraTech concrete plants are present in Mumbai, Pune, Nasik, Nagpur, Ahmedabad, Surat, Gurgaon, Noida, Jaipur, Chandigarh, Chennai, Bangalore, Hyderabad, Cochin, Vizag, Ludhiana, Raipur and Kolkata and many more are coming up," says Mr. Puranmalka.

Keeping in tune with the latest technology, UltraTech Concrete offers speciality concrete like UltraTech Fibrecon, a fibre reinforced concrete, UltraTech Free flow, UltraTech colorcon, UltraTech stainless, a corrosion resistant concrete, and UltraTech Thermocon. This wide array of choices will help customers choose the right type of concrete that suits their construction needs.

UltraTech Cement has 11 integrated plants, seven split grinding units and five bulk terminals, including one in Sri Lanka. UltraTech is India's largest exporter of cement and clinker. The total cement capacity of the Aditya Birla Group is 31million tpa.

O.P. Puranmalka: Brand UltraTech Excerpts from an interview with O.P. Puranmalka, Group Executive President, Grasim Industries and Chief Marketing Officer, UltraTech Cement Ltd.

Why are you opting for a single national brand?Cement is an integral part of the Aditya Birla Group's business and a clear focus area. The integration into one national brand is proof of that and a signal of the Group's commitment to take it further. The new beginning with UltraTech Cement as a national brand for the Group will not be a departure from the fundamentals that created Birla Plus. In fact, it will be an acceleration of that.

We would like to present a common and unified brand identity across the country. We have therefore chosen UltraTech Cement as the national brand for the Aditya Birla Group's cement business. Presently, we have two power brands in the country, but they operate in different markets and neither of them is a pan-India brand, in the real sense. While both the brands have different identities and personalities, the core or the soul of both brands is the same, i.e. the Aditya Birla Group's lineage, superior product quality, premium cachet, trust and reliability.

Since the DNA of the brands is same and the core promise of the brands is also similar, we felt that we would be better off with one national brand. With over 25 million tonnes per annum volumes, we now have UltraTech as the single largest cement brand in the country. With a single brand, it is easier to enter the hearts and minds of the consumer. We feel that combining the strengths of the two brands and two teams will have a multiplier effect on the quality of our service and therefore the brand equity.

Why have you opted for Ultratech Cement when you have strong existing brands such as Birla Plus? Why not vice-ersa?Once we internally analysed that there were great synergistic benefits that accrue to consumers as well as the companies by transiting to a single national brand, it was a question of choosing either of our two national brands, i.e. Birla Plus or UltraTech cement.

This was not easy as both brands enjoy substantially high brand equity in their respective markets of operation and have a very high emotional connect with customers. Both are the most recognised brands in the category.

Birla Plus came through as a good quality brand with a very powerful and popular brand name. What remained peripheral were technology and dynamism. UltraTech on the other hand came across with a more contemporary and modern imagery.

We opted for UltraTech as the national brand because while on the one hand it gives us the opportunity to strengthen common attributes of a well-known brand, scale of operations and the Aditya Birla Group's reputation, it also provides an opportunity to build on the positioning platform of "expert" and imagery signifying progress, cutting edge technology and modernity. The brand UltraTech has extremely positive associations and awareness even in non-UltraTech markets such as the north zone.

Why are you not using the “Birla” brand name?As mentioned earlier, the Aditya Birla Group's lineage is our core strength and the UltraTech brand also has benefited from this association.

While for the product brand name we are not using the "Birla" brand name, but in all our communication, whether to mass media like press, television, outdoor or retail branding, the Aditya Birla Group lineage comes across very strongly.

In fact, that is why we used the Jaan Wahi, Pehchhan Nayi as our campaign theme. It is a change we are making with great care, as we do not wish to jettison the strengths we have currently and move to unchartered territory. The core of Birla Plus' positioning - trust, reliability and the Aditya Birla Group's lineage - will continue in its new avatar, i.e. UltraTech. The change will add and not subtract from the equation.

Will there be financial / economical gains due to the single national brand?As pointed out earlier, the single national brand exercise is aimed primarily at developing a common and unified brand identity across the country. This exercise is not driven by financial gains.

How different were the two brands and how do you see UltraTech evolving post this transition?Birla Plus had evolved into a significant brand and it stood for a set of values of simplicity, smartness and reliability. With our campaigns of establishing it as Har Nirmaan Ki Jaan we brought in a bit of gorgeousness and lot of charm into the brand whereas UltraTech Cement was a brand on its own without any history. Our brand track researches suggest that it is probably the fastest growing cement brand in terms of equity and brand awareness.

By combining the soul of Birla Plus with the imagery of UltraTech, the brand will be distinctive and powerful, have distinctive lineage, with clear "technology" perceptions. In other words, we see UltraTech as being truly competitive, differentiated and having a strong and clear equity. The UltraTech brand aims to generate its strength by creating and consistently delivering distinctive performance benefits with compelling emotional benefits found in the brand personality.

How much will change now that Birla Plus will not be used as a brand? What are the changes being incorporated after the launch of UltraTech as the national brand?

Nothing much will change after this brand name change. Birla Plus will now be known as UltraTech cement and that is the only change. The same state-of-the-art technology will continue to provide the same unmatched quality. The same team of efficient technicians will manage these production facilities to provide a world-class product that consumers have been used to all these years. The same

committed and dedicated field force will be there in the market to provide the same level of customer care, which has made this product so loved by consumers.

Therefore technically speaking it is not a new brand but only a new name for Birla Plus. Nothing else has changed and hence Jaan Wahi, Pehchaan Nayi.

What is the risk that the premium enjoyed by Birla Plus brand will not be lost in this brand transition?Since essentially the Jaan of the brand is not changing and we are only giving it a new Pehchaan, we are confident that there will be no dilution in either the volumes or the premium commanded by the brand.

A brand, as perceived by the only legitimate judges - our customers - is the sum of all their interactions with our company. Every place a customer can interact with our company is a touch point, and that touch point affects how we are perceived. A poor experience with one touch point can negate all the brand equity we build in other touch points. The premium is built on the basic characteristics of the brand. This basic character has its origin in the people who own the brand, the internal processes that support the brand and the trade partners who distribute the brand.

As I have said at various points the only thing that will change in this entire process of transformation is the name of the brand and everything else remains the same. The premium quality, the enormous technological backing, a dedicated team of technicians and managers and a commitment to serve the nation was what made Birla Plus so successful. Added to this were a team of dedicated, committed and resourceful trade partners and other service providers. This combination was responsible for placing Birla Plus cement so high in consumers' estimation and that combination is still intact.

Will you have a common team to look after the brand and what will the advantages of that?With a common team looking after one national brand, we would be in a better position to provide a synergistic, consistent and superior service across the country. A common team has already been put in place internally.

These teams are now building on each other's strengths, providing knowledge integration and exploiting synergistic opportunities. We now intend to take this forward to our team of dedicated, committed and resourceful trade partners and other service providers.

What are your major markets and where do you plan to expand?With this brand transition of Birla Plus to UltraTech, the brand UltraTech Cement enjoys a leadership position in practically all the markets it sells in. It also becomes the single largest cement brand in the country with a pan-India presence. We plan to consolidate our leadership position in these markets and complete the process of transition to UltraTech in the next few months. Certain capacity expansions have already been announced. We will be adding 15 million tonnes capacity in 2008-09.

Ready Mix Concrete is a key focus area for us and we have lined up expansion plans for this business.

How are you going to generate awareness about the brand?Instead of focusing the brand essence on merely product attributes or brand personality, a conscious effort is being made to focus brand essence on a set of touch points through which the brand can deliver a consistently distinctive and inspiring customer experience.

We have planned a series of product awareness launches across the country over the next couple of months. These ground events will be accompanied by road shows to create awareness about the product amongst consumers and trade partners. We will also organise technical meets with dealers, stockists, retailers, individual house builders, engineers, architects, masons and contractors to reassure them that UltraTech will have the same quality that they have come to expect in a premium product. In addition, a brand new television commercial, an innovative press campaign and creative usage of outdoor media will also be helping spread awareness about the new product.

What kind of marketing spends are envisaged in next few months? The strength of such brands is matched only by the speed at which they are being built. Given the scope and scale of the brand leverage effort, an attempt has been made to build a much tighter link between corporate strategy and brand strategies. The brand is being seen as an asset that can drive growth and its positioning reflects not only existing markets, but also emerging opportunities. The spending on the brand is being truly viewed as an investment in a dynamic asset that can be leveraged into new offerings, markets and audiences. The spending on the brand will be enough to communicate the transition and will not be wasteful.

What was the brief given to the advertising agency and its creative team? Are there any new promotional schemes for the next few months?

Since Birla Plus cement had developed strong personality dimension, it was decided that UltraTech would appropriately maintain a focus on the core personality elements to ensure that there is no dilution in core equities during the re-naming exercise.

The agency was asked to design communication at all touch points to effectively communicate that the only thing that has changed in this entire process of transformation is the name of the brand and everything else remains the same. Hence the campaign - Jaan Wahi, Pehchaan Nayi.

The brief also ensured that in this process of transition, none of the values or attributes should be lost or diluted. The communication had to be designed in such a manner.

What is the industry scenario for 2008?The continued emphasis given by the government in the recent past on the development of infrastructure like roads, ports and urban infrastructure like flyovers, etc. means that cement demand will continue to rise. Similarly, developments in the housing (especially rural housing) sector have also added to the growth of the cement market. This is in spite of the fact that the per capita consumption of 110 kgs is below the world average of 356 kgs and far below that of the Asian economies like China and South Korea. This provides a tremendous opportunity and the cement sector is poised for exponential growth. We may witness continued consolidation efforts in the industry.

What are your rural marketing plans?The various initiatives taken by the government recently have given a boost to the rural economy. The rate of growth of the housing sector in the rural segment is increasing every year. UltraTech is already well represented in the rural markets and we are planning various initiatives, which will help us grow in this sector. For obvious reasons I am unable to share these plans at this stage. These will include providing technical assistance to masons and contractors, teaching them more cost-efficient construction methods and usage of eco-friendly cement and cement products.

UltraTech unveils a new campaignWhat do consumers expect from a leader?Everyone looks up to a visionary leader to understand the possibilities tomorrow holds. And you have a greater responsibility to bear when you are India’s largest cement company.

In the present day context, UltraTech is playing an important role in the infrastructural development of the country. No wonder, UltraTech’s every creation is a window to tomorrow. And an effective communication was needed to reflect the same.

According to Mr. O.P. Puranmalka, Group Executive President, Cement Business, Aditya Birla Group, the challenge was to create an emotional connect while retaining the technological superiority. The communication had to furthermore reinforce UltraTech’s position, cue leadership and take the brand to the next level.

It was quite a daunting task for Interface Communications, the advertising agency for UltraTech, to get the right mix of emotions and technological superiority that appeals to everyone right across IHBs to architects and large commercial establishments.

The agency developed an idea that turned out to be one of the most distinct and clutter-breaking films the Indian viewer has seen. It is also a logical extension to the expert platform that seamlessly cuts across segments and takes the communication to the next level through a simple theme – ‘Har badalte aaj mein, maine kal ko dekha hain.’

According to Puranmalka, “The film provides a great mix of emotions blended with eye-catching technology through superior graphic work. The communication reinforces UltraTech as an expert in continuous pursuit to achieve perfection.”

The film has received rave reviews from everyone in the industry and consumers. According to Rajesh Saathi, Director, Keroscene Films, “It’s the simplicity of the idea that actually made this a piece of marvel.” Evidently, the campaign is able to cut across the masses and connect with people in cities as well as villages. That’s the power of an idea. And today along with the leader, every Indian says: ‘Har badalte aaj mein, maine kal ko dekha hain.’

2.2 Future plans of the Organization

As of December 2009, UTCL has planned a capex of Rs.2,000 cr over FY10-12 for setting up a 25MW Thermal Power Plant at its unit in Awarpur, Maharashtra; additional grinding and evacuation facility at its unit in Gujarat and waste heat recovery systems across units for generating power out of waste gases. The funding of the same will be done through internal accruals. The current 256MW captive thermal power plant caters currently to ~80% of the power required by UTCL. About Rs.800 cr of the total capex is assumed to have been spent in FY10, Rs.1,000 cr would be spent in FY11 and the balance would be utilized by FY12.

The current cement capacity stands at 23.1 mtpa. The 4.9 mtpa capacity Tadpatri plant commissioned in Q4FY10 could help in boosting volumes in FY11 and FY12. However, given the additional capacities coming in the industry, this could result in cement prices softening and thereby leading to lower overall realisations on y-o-y basis in FY11.

UTCL plans to minimise the impact of lower realisations and softening of prices by strengthening their logistics infrastructure and keeping power and fuel cost under control.

The Board of Directors at its meeting held on April 29, 2010 have approved the acquisition of ETA Star Cement Co. LL, Dubai. At an enterprise value of Rs.1,700 cr, which translates into an EV/Ton of US$126. It has cement operations UAE, Bahrain and Bangladesh. The acquisition will be carried out by capitalizing ‘UltraTech Cement Middle East Investment Ltd, UTCL’s wholly owned subsidiary. The deal will be funded through a mix of debt and internal accruals. ETA Star has a market share of 10% and 20% in Abu Dhabi and Bahrain, respectively. ETA Star’s manufacturing facilities include a 2.3 million ton clinker plant and a 2.1 million ton grinding plant, both in the United Arab Emirates, a 0.4 million-ton grinding plant in Bahrain and a 0.5 million ton grinding plant in Bangladesh. This acquisition along with the amalgamation of Samruddhi Cement will increase UTCL’s total capacity to 52 MTPA.

As per the management, the transaction would be completed by end of Q1FY11, and would be accretive to its earnings per share. The acquisition is in line with UTCL’s long-term strategy of expanding its global presence across businesses. The acquisition would give UTCL the advantage of size. Apart from adding value to its capacity, it will benefit UTCL as Abu Dhabi and Bahrain’s real estate markets are not as depressed as Dubai. The economies of both Abu Dhabi and Bahrain are largely driven by oil, which, given the recent rise in crude prices, could soon revive construction activity and boost demand for cement.

The Board of Directors at its meeting held on November 15, 2009 approved the amalgamation of Samruddhi Cement Ltd with UTCL in terms of a Scheme of Amalgamation under sections 391 to 394 of the Companies Act, 1956 (“the Scheme”). The appointed date of the amalgamation is 1st July, 2010. The Board has also approved the share exchange ratio of 4 (four) equity shares of the Company of face value Rs. 10/- each for every 7 (Seven) equity shares of Samruddhi of face value Rs. 5/- each. The Cement Business of Grasim Industries Limited (“Grasim”), the holding company, is currently under demerger to Samruddhi and the Scheme will take effect only upon completion of the demerger and issuance of shares of Samruddhi to the shareholders of Grasim pursuant to the demerger. On the completion of this scheme, UltraTech is expected to emerge as the largest Cement and RMC entity in the country, and 10th largest in the world in cement capacity.

Grasim, announced demerger of its cement business into its wholly owned subsidiary Samruddhi Cements Ltd, which will ultimately be merged with UTCL to make it the largest pure cement player in the country. The board of UTCL has approved the restructuring. The first leg of the restructuring process i.e. demerger of Samruddhi from Grasim has been sanctioned at the High Court of Indore on March 31, 2010 but is yet to be sanctioned by the High Court of Gujarat. The second leg of restructuring is expected to be completed by July/August 2010.

Going forward, UTCL has indicated that the industry demand for cement could grow by 10% due to initiatives being taken by the Government on the infrastructure front. However, it is expected that the industry will witness a surplus scenario in FY11 with the management expecting addition of 30 MTPA during the year and this could result in pressure on margins. Capacity utilization rate is expected to be ~80% and this too could put pressure on margins. The management has indicated that it will focus on higher growth together with cost efficiency that could partially offset the pressure on its margins it could face due to the oversupply scenario.

Chapter III

Research Design and Methodology

3.1 Sampling Design

Survey has conducted by circulating questionnaires among the dealers

and sub-dealers, in Asansol market.

Data source: Data collected first hand directly from the retailers /

stockiest by questioning them.

Sampling unit: Since there are so many cement outlets in Asansol, the

universe of survey included all cement retailers of Asansol city. As well as I

have to cover the potential retailers of cement like:

a) Paint shops

b) Hardware shops

c) Marble shops

SAMPLE SIZE

a) 50 samples have been taken from the all cement outlets of Asansol.

b) 30 samples have been taken from the Petty Contractors of Asansol.

c) 30 samples have been taken from the individual house builder

d) 30 samples have been taken from masons.

SAMPLING PROCEDURE

A sample is that by selecting some element from the population and by

using the information we got from the sample we can draw conclusion about

the population. All the samples have randomly selected by zone wise.

3.2 Source and methods of Data collection

Area of study: Asansol, West Bengal.

The design guides selection of sources and types of information. A research

design is based on research questions. The market survey conducted on

dealers, sub-dealers over Asansol city.

For convenience I have divided the whole Asansol in to 3 zones those

zones with covering area are given below. I have taken my sample from

these 3 zones.

Zone-1 – area from Asansol Court to Mahishila.

Asansol Court market, Sreepally more, Budha more, Ismail more, SD

Hospital more, Battala Bazar, Mahishila.

Zone-2 – area from LIC Asansol more to Asansol Bazar

Bhagat Singh more, Kalyanpur housing colony, Asansol Bazar

Zone-3 – Court more to Burnpur Busstand

Court more, Rabindranagar, Chitra more, Nimtala more, Burnpur.

TOOLS USED

Various tool which will be used in this research are given below

1) Questionnaire of four types

a) for cement sellers.

b) for Petty Contractors.

c) for Individual house builders.

d) for Masons.

2) For analysis of data

MS Excel

INSTRUMENT DESIGN

Questionnaire will be selected as research instrument with the following

features

1) Closed end questions

2) Open end questions

Facts kept in mind while preparing the Questionnaire

A) Questionnaire made simple and easy to understand.

B) Respondents were provided with multiple-choice questions.

C) Questions on suggestions and comments were kept open ended.

3.3 Limitation of the Study

The research method and research reports may not be completely free

errors and drawbacks. There will be some of the study, which should be

known to the researcher and must be accepted while preparing the report.

The hide out limitations must be dangerous to the research as well as to the

executive because they may use the conclusion and recommendation

without caring for the limitations. That may be prove to be fatal organism

while implementing the measure suggested after the analysis of the report.

The project was done only for Asansol city. Therefore, the report could

have been better one if it can cover more areas of Asansol.

This project report covers mostly urban areas so the perception of the

rural people might be differ from it.

The respondents are unenthusiastic to answer the questions in the

absence of the owner.

Some of the respondents really had no sales information as they said

they have never calculated the average sales.

The respondents refused to answer during the business hours for which

I had it visit them several times.

Some of the respondents were very casual when answering the

questions.

The prospective cement respondents have shown their anger while

answering the questions the question because they said they don’t

want to start cement business and refused to give any suggestion for

improvements in UTCL’s marketing.

Due to time, money and piercing heat constraint I could not cover all

the cement retailers in Asansol city.

CHAPTER: IV

OVER VIEW OF ADITYA BIRLA

GROUP AND

ULTRA TECH CEMENT

4.1 HISTORY OF ADITYA BIRLA GROUPThe Aditya Birla Group is India’s first truly multinational corporation.

Global in vision rooted in India values, the Group is driven by a performance

ethic pegged on value creation for its multiple stakeholders. A US$ 8.3 billion

conglomerate, with a market capitalization of US$ 14 billion, it is anchored

by an extraordinary force of 72,000 employees belonging to over 20

different nationalities. Over 30 percent of its revenues flow from its

operations across the world. The Group’s products and services offer

distinctive customer solutions. Its 72 state-of-the-art manufacturing units

and sectoral services span India, Thailand, Indonesia, Malaysia, Philippines,

Egypt, Canada, Australia and China.

A premium conglomerate, the Aditya Birla Group is a dominant player in all of the sectors in

which it operates. Such as viscose staple fiber, non-ferrous metals, cement, viscose filament yarn,

branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators and financial services. It is:

The world No. 1 in viscose staple fiber

The world’s largest single location palm oil producer

A non-ferrous metals powerhouse and among the world’s most cost

efficient producers of aluminium and copper.

The world’s largest single location world-scale copper smelter

The world’s No.1 in insulators, with its joint venture with NGK of Japan

Globally, the fourth largest producer of carbon black

The 11th largest cement producer in the world and the seventh largest in Asia

India’s Premier branded garments player

Among the world’s best energy efficient fertilizer plants

India’s second largest producer of viscose filament yarn

The No.2 private sector insurance company, and the fourth largest

asset management company in India

BEYOND BUSINESS

A value-based, caring corporate citizen, the Aditya Birla Group

inherently believes in the trusteeship concept of management. Part of the

Group’s profits are ploughed back into meaningful welfare-driven initiatives

that make a qualitative difference to the lives of marginalized people. These

activities are carried out under the aegis of the Aditya Birla Centre for

Community Initiatives and Rural Development, which is spearheaded by Mrs.

Rajashree Birla.

A US $28 billion corporation with a market cap of US $31.5 billion and in the

league of Fortune 500, the Aditya Birla Group is anchored by an

extraordinary force of 100,000 employees, belonging to 25 different

nationalities. In India, the Group has been adjudged "The Best Employer in

India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall

Street Journal Study 2007. Over 50 per cent of its revenues flow from its

overseas operations.

The Group operates in 20 countries: India, Thailand, Laos, Indonesia,

Philippines, Egypt, China, Canada, Australia, USA, UK, Germany, Hungary,

Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea.

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where

success does not come in the way of the need to keep learning afresh, to

keep experimenting.

The Aditya Birla Group, India's first multinational corporation, traces its

origins back to the tiny village of Pilani in the Rajasthan desert, where Seth

Shiv Narayan Birla started cotton trading operations in 1857. Today, the

Group's footprint extends to 20 countries and its revenues are US$ 28 billion.

4.2: ULTRA TECH CEMENT

UltraTech Cement Limited, a Grasim subsidiary has an annual capacity of

48.8 mt. It manufactures and markets Ordinary Portland Cement, Portland

Blast Furnace Slag Cement and Portland Pozzolana Cement.

UltraTech has five integrated plants, five grinding units and three terminals

— two in India and one in Sri Lanka. These include an integrated plant and

two grinding units of the erstwhile Narmada Cement Company Limited, a

subsidiary, which has been amalgamated with the company in May 2006.

UltraTech is the country's largest exporter of cement clinker. The company

exports over 2.5 million tonnes per annum, which is about 30 per cent of the

country's total exports. The export markets span countries around the Indian

Ocean, Africa, Europe and the Middle East.

The cement division of L&T was demerged in 2004 after Grasim made the 30

per cent open offer for equity shares, gaining control over the new company,

christened UltraTech. Besides the long term strategic value in the wake of

rising demand for cement, with the growth of housing and infrastructure

sectors in the country, the acquisition brings significant synergy gains to the

parent company.

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. Ultra Tech Cement Limited, makers of premier cement, is a

subsidiary of Grasim Industries Ltd., the flagship company of the Aditya Birla

Group. The group is the eleventh largest cement manufacture in the world

and number one in India. Its basket of products includes ordinary Portland

cement, Portland blast furnace slag cement, Portland Pozzolana cement and

Grey Portland cement. It also exports clinker and cement.

Ultra Tech has five integrated plants, five grinding units, and three

terminals – two in India and one Sri Lanka. All the plants have ISO 9001

certification. Most of the plants have also been certified for ISO 14001 and

OSHAS 18001.

Ultra Tech is the country’s largest exporter of cement clinker. The

company exports over 2.5 million tones per annum, which is about 30

percent of the country’s total clinker exports. The export market comprises

of countries around the Indian Ocean, Africa, Europe and the Middle East.

Export is a thrust area in the company’s strategy for growth.

The cement division of L&T was demerged in 2004 after Grasim made

the 30 percent open offer for equity shares, gaining control over the new

company, christened Ultra Tech. Besides the long term strategic value in the

wake of rising demand for cement, with the growth of housing and

infrastructure sectors in the country, the acquisition brings significant

synergy gains to the parent company. Narmada Cement Company Limited, a

subsidiary, was amalgamated with Ultra Tech in May 2006.

MILESTONES OF ULTRATECH CEMENT

As part of the eighth biggest cement manufacturer in the world, Ultra

Tech cement has five integrated plants, five grinding units as well as three

terminals of its own (One overseas, in Colombo, Sri Lanka). These facilities

gradually came up over the years, as indicated below

2006

Narmada Cement Company Limited amalgamated with Ultra Tech

pursuant to a Scheme of Amalgamation being approved by the Board for

Industrial & Financial Reconstruction (BIFR) in terms of the provision of Sick

Industrial Companies Act (Special Provisions).

2004

Completion of the implementation process to demerge the cement

business of L&T and completion of open offer by Grasim, with the latter

acquiring controlling stake in the newly formed company Ultra Tech

2003

The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement

business into a separate cement company (Cem Co). Grasim decides to

acquire an 8.5 percent equity stake from L & T and then make an open offer

for 30 percent of the equity of CemCo, to acquire management control of the

company.

2002

The Grasim Board approves an open offer for purchase of up to 20

percent of the equity shares of Larsen & Toubro Ltd (L & T), in accordance

with the provisions and guidelines issued by the Securities & Exchange

Board of India (SEBI) Regulations, 1997.

Grasim increases its stake in L & T to 14.15 percent, Arakkonam grinding

unit

2001

Grasim acquires 10 percent stake in L&T. Subsequently increases stake to

15.3 percent by October 2002, Durgapur grinding unit.

1998-2000

Bulk cement terminals at Mangalore, Navi Mumbai and Colombo.

1999

Narmada Cement Company Limited acquired, Ratnagiri Cement Works.

1998

Gujarat Cement Works Plant II, Andhra Pradesh Cement Works.

1996

Gujurat Cement Works Plant I

1994

Hirmi Cement Works

1993

Jharsuguda grinding unit

1987

Awarpur Cement Works Plant II

1983

Awarpur Cement Works Plant I

PRODUCTSUltra Tech is India’s largest exporter of cement and clinker. The

company’s Production facilities are spread across five integrated plants, five

grinding units, and three terminals – two in India and once in Sri Lanka. All

the plants have ISO 9001 certification, and all but one have ISO 14001

certification. While two of the plants have already received OSHAS 18001

certification, the process is underway for the remaining three. The company

exports over three million tones per annum to countries around the Indian

Ocean, Africa, Europe, and the Middle East, accounting for about 47 percent

of India’s total clinker and cement exports.

Ultratech’s products include Ordinary Portland cement, Portland

Pozzolana cement and Portland blast furnace slag cement.

Ordinary Portland cement

Portland blast furnace slag cement

Portland Pozzolana Cement

Cement to European and Sri Lankan norms.

Ordinary Portland cement

Ordinary Portland cement is the most commonly used cement for a

wide range of applications. These applications cover dry – lean mixes,

general – purpose ready – mixes, and even high strength pre-cast and pre-

stressed concrete.

Portland blast furnace slag cement

Portland blast-furnace slag cement contains up to 70 percent of finely

ground, granulated blast-furnace slag, a nonmetallic product consisting

essentially of silicates and alumino-silicates of calcium. Slag brings with it

the advantage of the energy invested in slag making. Grinding slag for

cement replacement takes only 25 percent of the energy needed to

manufacture Portland cement in a concrete mixture is a useful method to

make concrete better and more consistent. Portland blast – furnace slag

cement has a lighter colour, better concrete workability, easier finishability,

higher compressive and flexural strength, lower permeability, improved

resistance to aggressive chemicals and more consistent plastic and

hardened consistency.

Portland Pozzolana Cement

Portland Pozzolana Cement is ordinary Portland cement blended with

pozzolanic materials (Power – station fly ash, burnt clays, ash from burnt

plant material or silicious earths), either together or separately. Portland

clinker is ground with gypsum and pozzolanic materials which, though they

do not have cementing properties in themselves, combine chemically with

Portland cement in the presence of water to from extra strong cementing

material which resists wet cracking, thermal cracking and has a high degree

of cohesion and workability in concrete and mortar.

4.3: L&T CEMENT IS NOW ULTRATECH CEMENT

Launching Ultra Tech Cement, the new name of L & T Cement, in

Mumbai, Mr. Kumar Mangalam Birla, Chairman, Ultra Tech Cement Ltd,

stated that “nothing has changed except the name. So essentially what was

earlier L & T cement, now transforms into Ultra Tech Cement.”

Mr. Birla added that “In the cement sector, the erstwhile L & T Cement

brand was indeed a much admired brand. I am confident this transition to

Ultra Tech Cement will only help strengthen it further. Fundamentally, the

quality, the technology, the plants and the people will remain unmatchable.”

Ultra Tech Cement will continue to be manufactured in state-of-the-art

plants at Kovaya and Jaffarabad in Gujurat, Awarpur in Maharashtra, Hirmi in

Chattisgarh and Tadipatri in Andhra Prasad. Likewise, they will continue to

be supported by the grinding units at Durgapur, Jharsuguda, Aarkonam,

Magadalla and Ratnagiri and the packing terminals at Mangalore, Mumbai

and Sri Lanka. “Excellent product quality and customer care will remain the

hallmark of Ultra Tech,” averred Mr. Birla. Briefing the media on the brand

transition, Mr. Birla remarked that the name Ultra Tech was the outcome of

an in depth research across the country. “We wanted to mirror the DNA of L

& T cement in the new brand name. Our research study indicated that in the

customer’s mind, L & T stood for quality, technology and expertise. The

name Ultra Tech with the tag line “The Engineer’s Choice” aptly captures

these features,” commented Mr. Birla. The brand transition is expected to be

completed in India by the end of December 2004.

Ultra Tech’s distribution network is very widely spread out in the

country with over 5,500 dealers and 30,000 retailers. Ultra Tech enjoys a

leadership position in all of the markets that it serves. Mr Birla took great

pride in the Ultra Tech team who he said “are committed to preserving the

brand’s premium and its market share”. The Company has enlisted the

support of all of its business associates. This includes dealers, stockists,

retailers, builders and engineers among others. “Our thrust is an enhancing

our markets through augmenting our capacities and bringing in higher

volumes, adding 2.5 million tones largely through debottlenecking. We have

plans to maximize operational efficiencies and to sweat the assets. To do so,

we have earmarked an immediate investment of Rs. 200 crore for the

current financial year. We wish to grow aggressively, “ stated Mr.Birla.

added that cement was clearly a focus area for the Group and that the Ultra

Tech acquisition signaled its commitment to take this business even further.

Ultra Tech’s plants and markets complement those of Grasim, the Aditya

Birla Group’s cement capacity is in excess of 31 million tpa, of which 17

million tpa capacity comes from Ultra Tech. This makes the Aditya Birla

Group the eighth largest cement player in the world.

The Group now has 11 composite plants, seven split grinding units,

four bulk terminals (inclusive of one in Sri Lanka), and eight ready mix

concrete plants. This accords the Group a strong national presence in the

cement sector, with a leadership position in several states. “We at Ultra Tech

will leverage synergies and further strengthen our ability to complete in the

Indian and the overseas markets. We expect Ultra Tech to grow faster than

the market and to improve market shares. At the same time developing

beachheads overseas through a profitable exports business is a priority for

us, “ remarked Mr. Birla. In his view, the cement business to be in. Giving an

overview of the sector, Mr. Birla commented that India has enormous

potential for growth, given the lower per capita consumption of only 110

Kilos against the global average of 260 Kilos at present. The per capita

consumption of cement in India is perhaps the lowest in South East Asia. In

Thailand it is 293 Kilos, China – 429 Kilos, Malaysia – 529 Kilos, and in South

Korea – 951 Kilos. India thus offers a tremendous growth opportunity given

its lower per capita consumption. The rise in per capita consumption would

be fuelled by the strong growth in the housing sector and the government’s

thrust on infrastructure development. This is will propel a robust volume

growth. Said Mr. Birla, “I believe that Ultra Tech is uniquely positioned to

capitalize on these developments, given its unique brand values and

customer orientation. I see a great future ahead.”

Distribution Logistics:

Cement is manufactured in continuous process plants. Cement is

stored in soils but the silo capacities are limited. Therefore cement has to be

evacuated from the works. Cement can be transferred by rail, road or sea,

by rail it is loaded in rakes for a railhead which can be inside or outside the

plant. From the railhead it has to be cleared i.e. unloaded on to the platform

and loaded into trucks, from where it can be transported directly to the

customers or dealers or can be send to the marketing dump and then

dealers and customers time to time in case of road too trucks can be sent to

transit dumps outside the factory normally the truck generation center it can

be transported directly to the customers or dealers or can be send to the

marketing dump and then dealers and customers. In case of sea

transportation firstly conveyed by conveyers to the captive jetty (Port) and

then loaded in to ships from where it is sent to receiving port of terminal

operations bulk cement from the receiving port is again sent by conveyers or

by browsers (by road in tanker) or the terminal. From the terminal it is sent

to the dealers or customers by road.

DIFFERENT PLANT OF ULTRATECH OVER INDIAWe have now many plants located in different parts of India. The

selection of location is based on many factors but primarily they are based

on following points.

Very rich limestone available close to the plant

Uninterrupted power supply (from state electricity board or captive

thermal power plant, gas based generators, DG sets)

Availability of high grade coal

The plant location must be such that we can dispatch and distribute

cement by either rail or road

1. AWARPUR CEMENT WORKS (ACW)

Awarpur cement works is located at village Awarpur in Chandrspur district in

Maharastra. It is 212 Kms away from Nagpur city towards south. The plant

capacity is 2.5 MTPA. This plant is having two units and equipped with all

latest generation equipments. The plant is having huge railway sliding as

well as truck loading system. This railway line is connected to central railway

2. JHARSUGUDA CEMENT WORKS (JCW)

Jharsuguda cement works is grinding unit having installed capacity of

0.7 MTPA. This is located at Dhutra village of Jharsuguda district in Orissa,

which is 15 Kms away from Jharsuguda town. The plant is having latest

facilities required for slag cement grinding, soils as well as packing plant.

The plant has its own siding for dispatching cement to different destinations

a swell as truck loading system. This plant producing high quality slag

cement conforming to Indian standard this plant has a very sophisticated

laboratory for monitoring quality control.

3. HIRMI CEMENT WORKS

This plant located at village Hirmi of Raipur district in Madhyapradesh,

which is 64 Kms away from Raipur city. The installation capacity of the plant

is 1.45 MTPA. The plant is having a well-compacted layout and is inducted

with all latest equipments. It has been performing very well in all aspects.

This plant is having very high efficiency cement mils, raw mill, kiln as well as

control system.

4. GUJURAT CEMENT WORKS (GCW)

This plant is located at the village Kovaya in Amreli district of Gujarat.

The total installed capacity is 4 MTPA. This is the largest installation capacity

of the plant is 1.45 MTPA. The been performing very close to Arabian Sea

and having captive jetty which can accommodate ships for loading of

cement, clinker, and unloading of coal.

5. ANDHRA PRADESH CEMENT WORKS (APCW)

This is the youngest plant which is located at Tadpatri, district

Anantpur in A.P. This plant having very well compact layout in multilevel.

This plant is inducted with all latest equipments and have been producing

very high quality cement. This plant is having its own railway siding which is

connected is connected to Chennai /Delhi truck route.

INGREDIENTS AND FUNCTIONSOXIDES

1. Lime (60-65%): - a sufficient quantity of lime is required for its

reaction with impart of strength.

2. Silica (20-25%): - Silica compounds provide strength and hence lower

silica content is not acceptable.

3. Alumina (3-8%): - Its lowers clinkering temperature. An excess

alumina weakens cement and produces a contracting quick setting

mixture.

4. Magnesia (1-4%): - Magnesia impairs soundness of cement if it is

over 5% it cause unsoundness.

5. Iron Oxide (2-4%): - It impairs the grey color and acts as flux.

6. Gypsum (3-8%): - It retards setting time, thus providing workability.

COMPOUND

Tricalcium Silicate (50 to 60%): - it imparts strength to the concrete from

inception and attains greater part of its strength in seven days. But this

evolves more heat generation than diacalcium silicate.

Diacalcium silicate (20 to 30%): - It gives negligible strength to there

concrete in the first seven days and gains steadily in strength at later ages

and attains greater part of its strength in 28 days.

Tricalcium aluminate (3-10%): - This produces some strength in one day

but shows no subsequent development this and gypsum content in cement

to form calcium sulpho aluminate which decides the setting time.

Teracalcium ferrite (10 to 15%): - It acts as a flux and helps to bring

down temperature. It imarts color of the cement.

QUALITY ASSURANCE SYSTEMSThe seven steps for quality assurance

1. Computerized mine planning and prospecting

2. Methodically storing and reclaiming from PBSP in blending silo.

3. Through checks and monitoring of incoming raw materials

4. Kiln scanning heat and temp control.

5. Online QCX (right proportion and instant analysis).

6. Storing of raw material under covered shed.

7. Continuous supervision by computers and highly qualified dedicated

professionals.

Chapter V

Data Presentation, Analysis and interpretation

5.1: DATA INTERPRETATION OF QUESTIONNAIRES FOR CEMENT SELLERS

There are a set of questionnaire had given to the cement sellers. Let’s

analyze the information collected from the cement sellers in Asansol city.

There are Six major players in Asansol cement market, to get the

monthly average sales of Asansol city I have divided the whole Asansol city

into three zones they are give below.

Zone-1 – area from Asansol Court to Mahishila.

Zone-2 – area from LIC Asansol more to Asansol Bazar.

Zone-3 – Court more to Burnpur Bus stand.

Fig. 5.1

Market share for Zone 1

18

32

25

14

20

0

5

10

15

20

25

30

35

UTCL AMBUJA LAFARGE JAYPEE ACC KONARK

Brand

Sal

es i

n %

Series1

ZONE 1: includes area from Asansol Court market, Sreepally more,

Budha more, Ismail more, SD Hospital more, Battala Bazar, Mahishila.

From the above figure we can observe that in this zone from the total

average sales (for zone-1) Ambuja is the leader with acquiring 32% of the total

average sales of cement. Followed by Lafarge, with a market share of 25%.

Followed by Konark having its market share of 20% and Ultratech is having 18%. In

this locality due to price structure & due to some marketing fault Ultratech is far

behind from these brand. Many retailers saying that Ultratech is a good brand but

their marketing effort is not good their management is not good, so they don’t

want to do business with Ultratech.

BRAND EQUITY OF LEADING BRANDS IN ZONE-1

Sl.

No.

Name SALES in

Bags

MKT Share

(%)

Position

1 AMBUJA 16000 32 FIRST

2 LAFARGE 12500 25 SCOND

3 KONARK 10000 20 THIRD

4 UTCL 9000 18 FOURTH

Table: 5.1

It is observed that the people of this zone is very much price sensitive. This

zone includes the area where there is an ample opportunity present for the

development of the locality. Also there are several earl estate firms are

growing up who are going to construct buildings very soon. Also some good

technical institutions are in this zone, those are very much involved in

competing with each other by constructing new buildings. So lot of scope is

still present for the development of the locality. Also there are several real

estate firms are growing up who are going to construct buildings very soon.

Also some good technical institutions are in this zone, those are very much

involved in competing with each other by constructing new buildings. So lot

of scope is still present in this market. UTCL should start more trading and

non-trading cement supplies in this area. So there is a good market for the

company to establish the position of UTCL in this market.

Zone-2 – area from LIC Asansol more to Asansol Bazar, Bhagat Singh more, Kalyanpur housing colony, Asansol Bazar

Figure:5.2

Market share for Zone 2

22

28

34

5 3

8

0

5

10

15

20

25

30

35

40

UTCL AMBUJA LAFARGE JAYPEE ACC KONARK

Brand

Sal

es in

%

Series1

BRAND EQUITY OF LEADING BRANDS IN ZONE-2

Sl.

No.

Name SALES in

Bags

MKT Share

(%)

Position

1 LAFARGE 17000 34 FIRST

2 AMBUJA 14000 28 SCOND

3 UTCL 11000 22 THIRD

4 KONARK 4000 8 FOURTH

Table:5.2

From the above figure we can observe that in this zone (For zone-2) Lafarge

is the leader with acquiring 34% of the total average sales of cement

followed by Ambuja, with a market share of 28%. And here UTCL is in third

position in market. In this zone there are some like kalianpur housing colony

where a lot of scope for new construction is there. Real estate companies

are competing with each other like anything, so this area can be taken in

consideration for market penetration for UTCl. Here Lafarge leading for its

High quality Low Price Brand name. Lafarge is the potential market leader so

UTCL should plan accordingly to beat Lafarge in price as well as in quality.

Here the Zone 1 market leader Ambuja is in second position.

ZONE-3

Zone-3 – Court more to Burnpur Bus stand.

Court more, Rabindranagar, Chitra more, Nimtala more, Burnpur.

Figure:5.3

Market share for Zone 3

20

36

28

36

8

0

5

10

15

20

25

30

35

40

UTCL AMBUJA LAFARGE JAYPEE ACC KONARK

Brand

Sal

es i

n %

Series1

BRAND EQUITY OF LEADING BRANDS IN ZONE-3

Sl.

No.

Name SALES in

Bags

MKT Share

(%)

Position

1 AMBUJA 18000 36 FIRST

2 LAFARGE 14000 28 SCOND

3 UTCL 10000 20 THIRD

4 KONARK 4000 8 FOURTH

Table : 5.3From the above figure we can observe that in this zone (For zone-3) Ambuja again is the leader with acquiring 36% of the total average sales of cement followed by Ambuja, with a market share of 28%. And here UTCL is in third position in market having 20% market share. In this zone there are some like kalyanpur housing colony where a lot of scope for new construction is there. Real estate companies are competing with each other like anything, so this area can be taken in consideration for market penetration for UTCL. Here Lafarge leading for its High quality Low Price Brand name. Lafarge is the potential market leader so UTCL should plan accordingly to beat Lafarge in price as well as in quality.

OVERALL MARKET SHARE OF DIFFERENT

BRANDS IN ASANSOL CITY

Figure : 5.4

Market share in Asansol

14.9

39.835.66

6.593.7

14.53

05

1015202530354045

UTCL AMBUJA LAFARGE JAYPEE ACC KONARK

Brands

Sal

es in

%

BRAND EQUITY OF DIFFERENT BRANDS IN ASANSOL MARKET

Sl.

No.

Name SALES in

Bags

MKT Share

(%)

Position

1 AMBUJA 47760 39.80 FIRST

2 LAFARGE 42790 35.66 SCOND

3 UTCL 17872 14.90 THIRD

4 KONARK 17445 14.53 FOURTH

5 JAYPEE 7900 6.59 FIFTH

6 ACC 4450 3.70 SIXTH

Table : 5.4

From the above figure and table we can understand that Ambuja is the ultimate leader in the market because of its quality and brand name, really leading in the market. While visiting cement outlets dealers said that Ambuja has the maximum number of loyal customers in the market Ambuja is having 39.8% share of the whole market in Asansol.

In the second place, Lafarge is having almost 35.6% of share, which is

a very big achievement for Lafarge because when we compare Ambuja with

Lafarge, Lafarge is a new brand itself so we can say that Lafarge is giving a

very tough competition to Ambuja, as the retailers said if UTCL can change

some of its marketing strategies like mason meeting, dealers meeting it can

be the leader as it having the fame of premium quality.

In third position UTCL cement is present with 14.9% of market share. It

has also some specific product fro concrete which is very popular. Like the

ad says “Engineers Choice” this is a very touching statement to the

customer. Also the advertising strategies made by UTCL is really wonderful.

Konark is in the fourth position.

5.2: Analysis of questionnaire for cement sellers.

Q1. All the retailers are asked to tell the brand name they prefer most?

Figure: 5.5

21%

33%22%

1%

5%

18%

UTCL

AMBUJA

LAFARGE

JAYPEE

ACC

KONARK

While answering this question 33% of respondents said Ambuja is the

most preferred brand, 22% said Lafarge is the best brand, 21% for UTCL,

18% for Konark. So from this we can say that UTCL is still in a commanding

position in the customers mind. The company should grab those customers

by the retailers. All other brand have a negligible share.

Q2. All the retailers are asked to tell the brand name which their customer preferred most.

Figure: 5.6

16%

32%

23%

4%

2%

23%

UTCL

AMBUJA

LAFARGE

JAYPEE

ACC

KONARK

Q3. All the retailers are asked to tell the frequency of different brands marketing officers visit to their outlets/phone call follow up done?

Figure: 5.7

35%

22%12%

4%

2%

25%UTCL

AMBUJA

LAFARGE

JAYPEE

ACC

KONARK

Q4. All the retailers are asked to tell that which brand they think giving customized service?

Figure: 5.8

23%

27%

12% 1% 4%

33%

UTCL

AMBUJA

LAFARGE

JAYPEE

ACC

KONARK

Q5. All the retailers are asked that which promotional medium they think is most effective?

Figure: 5.9

TV37%

HOARDING17%

PAPER AD12%

WALL PAINTING33%

OTHERS1%

TV

HOARDING

PAPER AD

WALL PAINTING

OTHERS

Q6. - The retailers are asked that which factors attracts more while dealing with a particular brand.

Figure: 5.10

15

10

58

26

0

10

20

30

40

50

60

70

C. DEAMAND HIGHMARGIN

TO ADDVARIETY

QUALITY OTHERS

Series1

Q7. – This question asked to the respondents who are dealing with UTCL, that why are you dealing with UTCL.

Figure: 5.11

Out of 50 respondents 24 are dealing with UTCL. But out of 50 respondents 68% have said they are dealing with UTCL because of customer’s demand that shows, there is a very good customer demand for UTCL. 15% of respondents said due to high margin they are dealing with UTCL, it means UTCL should give more margin to the retailers. 11% off respondents said they are dealing with UTCL only to add variety. 6% did not give any comments.

Q8. – This question asked to the respondents who are not dealing

with UTCL that why you are not dealing with UTCL

Figure: 5.12

Q9. – When the respondents are asked to give their views on the

overall brand image of UTCL they had given their responses as

shown below.

Figure: 5.13

Q10. - When the respondents are asked to give their views on the

who influence a customer to buy a particular brand of cement. The

responses they had given are shown below.

Figure: 5.14

Q11- When the respondents are asked to give their views on what are their expectation from the company or what service the company should provide, the responses they had given are shown below.

Figure: 5.15

18.5% of the respondents are saying they want stock at time. So company

should give the supply according to the demand otherwise they will lose the

market share. Some of the retailors complaining about the fact that UTCL’s

Durgapur cement factory is not giving the supply of cement due to its

breakdown in factory. They are suffering a lot for it. Also they want high

credit holding period so that they can do more business, 14% saying they

should give more discount so that the margin will increase, they should

maintain quality. 10% saying they should give technical knowledge as well

as special offer. And 16% of the people avoided its question very efficiently

by they don’t want anything from company.

SUGGESTIONS

4%

12%

5% 5%

17.5%

12.5%

6%

16%

10%

12%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

PE

RC

EN

TA

GE

Q12. When the respondents are asked to give their views on what customers want. The responses they had given are shown below.

Figure: 5.16

Q13 When the respondents are asked to give their suggestion for

improvement of marketing of UTCL. The responses they had given

are shown below.

Figure : 5.17

The customers are asked to give suggestions, various types of suggestions

given by the respondents for the improvement marketing of UTCL. From the

above figure we can understand that 17.5% have given suggestion that

company should go for regular mason meeting because masons are the best

influencer. 12.5% respondents think that UTCL should do more advertising

so that the company can become a ladder in the market.

12% of respondents think that company should arrange regular dealer

meetings and reduce the security money deposited by the dealers so that

the number of outlets in the market can increase which will lead UTCL to the

position of market leader. 10% of the respondents said to reduce price so

that it can beat in price the brand like Lafarge and can get some part of the

market share of Lafarge and other Andhra brands.

6% of respondents said to arrange public meeting and tell the features

about the cement and the core competency of the company. So that the

public can become aware of the product and that will help UTCL to cover the

market. 5% of the respondents said that UTCL should start help centers like

ACC so that public can get help while constructing their houses 5% of

respondents said UTCL to keep touch with the retailers regularly so that the

both party can make a strategy and can push the product to the market. $5

of the retailers said to arrange contractors and builders meeting so that it

can spread in nontrade sector. 16% of the respondents did not say anything

for the improvements of UTCL however they avoided the question and said

they don’t know anything about the company.

5.3 : ANALYSIS OF DATA COLLECTED FROM MASON

Q1 : Give your preference for Ultratech Cement.

Figure: 5.18

RATING OF UTCL

GOOD40%

MANAGABLE30%

POOR10%

EXCELLENT20%

Q2 : Which brand of cement they prefer most?

Figure: 5.19

UTCL12%

KONARK15%

AMBUJA48%

LAFARGE25%

5.4: ANALYSIS OF DATA COLLECTED FROM INDIVIDUAL HOUSE BUILDERS

Q1 : Which brand of cement they prefer most for House building?

Figure: 5.20

UTCL22%

KONARK17%

AMBUJA38%

LAFARGE23%

5.5 : Analysys of questionnaire for Petty Contractors

Q1 : Which brand of cement they prefer most for your project?

Figure: 5.21

UTCL27%

AMBUJA19%

LAFARGE45%

KONARK9%

UTCL

AMBUJA

LAFARGE

KONARK

Chapter VI

CONCLUSION

When a new brand appears in the market, the consumer gets acquainted

with it and starts collecting information about it. On the basis of this

information the consumer creates an opinion of the brand and establishes a

brand image. For a stable market position of a brand, consumer awareness

of the new brand on the market is not sufficient. The consumer must prefer a

brand and have a positive assessment of it as well as considering it in its

purchasing decisions. By watching the positioning of different brand we can

judge the Brand equity of different brands.

All trade marks on the market within trade groups could be classified

according to the consumers (un)-awareness and assessment as shown in the

picture below:

If a brand is familiar to the consumer it does not mean that it is also a

possible alternative for the consumer's choices. To some (recognized)

brands the consumer may have a negative reaction and therefore have no

intention of using them. The consumer is also familiar with neutral brands,

which are unimportant to him, or about which he does not have the

sufficient information to consider purchasing them.

HOW DO WE RESEARCH THE BRAND EQUITY?

It is optimal for a company to first decide on the method of conducting the

brand image research, with which the company can investigate the key

values and dimensions of the brand. When a company is thoroughly

acquainted with its brand and its image in the market it is sensible to focus

on more competitive brands and to compare these brands to theirs. It is

important to find out how consumers categorize brands within a specific

trade group and how they focus on the most competitive ones.

The market position of a brand is measured using the quantitative methods

of research, which are based on the results of qualitative work. That is how

quantitative phase research uses the image dimensions and positions, which

are of major importance to the specific brand and trade group.

The most sensible thing is to compare the results with competitative brands

and/or throughout time. A company can therefore continuously follow the

(un)-stable market position of its brand, measure the market communication

action influence on the market position and find out in which areas further

actions should be directed to.

EXECUTIVE SUMMARY OF MY WORK DONE:

The project gives a broad outline on average monthly sales of different

brands of cement in Asansol market and position of different brands in

comparison to total sales and their present market share. From the research

I came across several interesting results about the dealer and the retailer’s

behaviour and response towards increment in sales of any particular brand,

and then steps are to be taken to matching the expectation in case of

UltraTech cement. From the analysis we are able to make aware about the

fact that the role of masons and dealers are impressive in hiking the sales of

any particular brand by influencing the customer.

I have prepared 4 types of questionnaire (Cement sellers, individual house

builders Petty contractors and for masons). Then I started my survey by

visiting all of them area wise and recorded their feed back according to the

question asked to them from my questionnaire. Then I summarize all the

data collected and make comparative charts and diagrams to present my

findings.

From this project I got a lot exposure to cement market in Asansol and got

the insight of the relationship between manufacturer, retailers, and

customers. During the work I have interacted some high profile executives of

a big giant market player-ADTYA BIRLA GROUP. It gives me a lot of exposure

to the high level corporate world. Meeting with the respondents also

increase my potential and my over all view about the consumer market.

RECOMMENDATIONSThe customers are the real king in today’s competitive market. Therefore for

every company should try in such a way that not a single customer can

complain against your product as well as you should be the leader in the

market. The company should consider every customers complain and

suggestions and should try to rectify if it is possible. But ultimately every

company should win customer’s heart which can help the company to

become the market leader.

1. UltraTech is positioned as the premium category in the pricing

strategy. The company should set the price according to the value

delivered to the customers. What I got from this project is that the

price is slightly higher than the perceived value, that is the reason why

company is loosing potential customers. We can say the customers of

Lafarge because its price structure is lower than UTCL as well as

Ambuja but the value delivered by Lafarge & Ambuja is almost same

with others. So a price of Rs. 5 can make a lot of difference because

the customers know that UTCL is famous for its quality if the same

quality they are getting in the price of Lafarge they will must go UTCL

instead of others.

2. Some of the retailers complained that the PPC of UTCL is blackish in

color, which new customers do not like, so if possible company should

look after this factor.

3. Credit period should increase to give a chance to the stockiest to

maintain high stock, which will make the difference as said by the

respondents.

4. Respondents said that UTCL should touch each and every retailers

once in two months because by doing this the network of manufacture,

dealer and sub-dealer will grow which will help UTCL in future.

5. The security money should be decreased for the rural area retailers

as compared to the urban area, because they can not able to achieve

the sales target and deposit the security money.

6. Sales promotion and awareness should be done in all the Zones

zone-1, zone-2 & zone-3

7. A booklet containing technical information about the specialty of the

variant of the cement should be given to the retailers so that they can

convince customers.

8. As we have seen the Masson are the best influence of a customer to

purchase particular brand so regular Masson meeting should be

organized so that they can promote the product.

9. As some of the retailers complained that they have not got the

boards and displays, so company should look after this matter.

10. Company should arrange contractors meeting to spread the

business in non-trade sectors. Some of the contractors said that after

finishing the project they just forgot us. They will be extremely happy if

company give some kind of get together with the company officials.

They wish to work with the Project cement.

11. Company should go for road shows and trade fairs so that the public

can be aware of the core competency of the product.

12. As far as the prospective retailers are concern there are a lot of

possibilities in that market. But most of the respondents want financial

assistance, if company will issue the cement for a longer credit period

and in the return company should make them exclusive UTCL shops

then it will become one of the revolutionary step towards the untapped

market.

13. The Marble and ceramics shops have space to store cement so they

can be the most appropriate prospective retailer of cement because

others have less storage place in their shops, so marbles shops should

be targeted.

14. The company should start societal marketing by taking awareness

projects like plantation, passenger shed at the bus stop or drinking water

supply.

15. The company should do more outdoor advertising like putting more

hoardings in the crowded area, neon light boards.

16. The company should keep a proper watch over the market and the

competitors accordingly it should react.

REFERENCE

AND

BIBLIOGRAPHY

1. Marketing Management by Philip Kotler.

2. www.ultratech.com

3. www.cementindia.com

4. www.google.com

ANNEXURES

QUESTIONNAIRE FOR CEMENT SELLERSDear Sir/Madam,I am conducting a survey on major Cement brands available in Asansol Mkt.as a part of my ‘summer training project. I would be extremely benefited ifyou answer the following questions. I assure you that the informationprovided by you will be used for my project work only.

NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS & CONTACT NO. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

1 How Many Brands you are dealing in ? Who are they?

Lafarge Ultratech Acc Ambuja Konark  

           

2 Which Brand do you prefer most?

Lafarge Ultratech Acc Ambuja Konark  

           

3 Your average monthly sale (tonnes/bags) ___________________________

4 Please specify the Percentage of wholesale and Retail

_____________________________________________________________

5 Rank the companies by your customers preference.

Lafarge Ultratech Acc Ambuja Konark  

           

6 Give average monthly sale of different brands.

Co. Lafarge Ultratech Acc Ambuja Konark

Tonnes/Bags          

7 Rank the companies in 1-5 scale in terms of Representaives/Officers Mkt visits/Phone follow up.

Co. Lafarge Ultratech Acc Ambuja Konark

Rank          

8 How many days credit do you enjoy from the following Companies?

Lafarge Ultratech Acc Ambuja Konark

           

9 Rank the companies which you think that give you the highest profit.

Co. Lafarge Ultratech Acc Ambuja Konark

Rank          

10 Rank the companies in terms of Advertisement CampaignIN 1-5 Scale(1 lowest ,5 highest) ?

Advt. type   Lafarge Ultratech Acc Ambuja Konark

PAPER AD          

TV AD            

Hoardings          

Wall painting          

Others            

11 Rank the companies on the basis of their timely delivery.

Co. Lafarge Ultratech Acc Ambuja Konark  

Rank            

12 What kind of problem do you generally face with the transportation of Cement?_______________________________________________________________________________________________________________________________________________________________________________________________________________

13 Rank the companies on the basis of the response to customer complaints.

Co. Lafarge Ultratech Acc Ambuja Konark

Rank          

14 Which company do you feel giving customised services?

Co. Lafarge Ultratech Acc Ambuja Konark  

Rank            

15 Overall ranking of the Companies.

Co. Lafarge Ultratech Acc Ambuja Konark

Rank          

16 Any suggestions you want to give.__________________________________________________________________________________________________________________________________________________________________________________________________________________

QUESTIONNAIRE FOR INDIVIDUAL HOUSE HOLDERS

Dear Sir/Madam,

I am conducting a survey on major Cement brands available in Asansol Mkt.as a part of my ‘summer training project. I would be extremely benefited ifyou answer the following questions. I assure you that the informationprovided by you will be used for my project work only.

NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS & CONTACT NO. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

1   Which brand do you prefer most?

Lafarge Ultratech Acc Ambuja Konark

         

2 Which Brand do you use for your house building?

Lafarge Ultratech Acc Ambuja Konark

         

3 Who Influence you to take this decision?

Engineer Mason Friend Family Own Other  

             

4 What is the most important facrot to choose that Brand?

Price Quality ServicesBrand name

VolumeMasons advice

Colour Other

               

Explanation : ________________________________________________________________________________________________________________________________________________________________________________________________________________

5 Are you Satisfied??If So Why?_________________________________________________________________________________________________________________________________________________________________________________________________________________

_

If Not Why? _________________________________________________________________________________________________________________________________________________________________________________________________________________

6 Rank the companies on 1-5 scale.

Lafarge Ultratech Acc Ambuja Konark

         

7 Have you ever heard the brand name before you have used it?___________________________________________________________________________________________________________________________________________________________________________________________________________________________

8 Do you happy with the supply of the cement?_________________________

Why? ______________________________________________________________________________________________________________________________________________________________________________________________________________________

9 Any suggestion you want to give.___________________________________________________________________________________________________________________________________________________________________________________________________________________________

QUESTIONNAIRE FOR PETTY CONTRACTORSDear Sir/Madam,I am conducting a survey on major Cement brands available in Asansol Mkt.as a part of my ‘summer training project. I would be extremely benefited ifyou answer the following questions. I assure you that the informationprovided by you will be used for my project work only.

NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS & CONTACT NO. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

1      Which brand do you prefer most?

Lafarge Ultratech Acc Ambuja Konark  

           

2 Which Brand do you use for your project?

Lafarge Ultratech Acc Ambuja Konark  

           

3 Who Influence you to take this decision?

Engineer Mason Friend Family Own Other  

             

4 What is the most important facrot to choose that Brand?

Price Quality ServicesBrand name

VolumeCredit facility provided by the dealer

Colour OTHER

               

Explanation : _________________________________________________________________________________________________________________________________________________________________________________________________

5 Do you happy after using the cement?_______________________________

Why? _______________________________________________________________________________________________________________________________________________________________________________________________________

6 Rank the companies on your perspective.

Lafarge Ultratech Acc Ambuja Konark  

           

7 Have you ever heard the brand name before you have used it?________________________________________________________________________________________________________________________________________________

8 Are you satisfied after using the Brand?________________________________________________________________________________________________________________________________________________

9 Do you happy with the supply of the cement?_________________________

Why? ___________________________________________________________________________________________________________________________________________________________________________________________________________________

10 Have you ever invited by any Cement Company?

Lafarge Ultratech Acc Ambuja Konark  

           

Why?___________________________________________________________________

________________________________________________________________________

________________________________________________________________________

11 Did you like their programme?___________________________________________________________

Why?___________________________________________________________________

________________________________________________________________________

________________________________________________________________________

12 Rank the companies on the basis of their timely delivery.

Co. Name

Lafarge Ultratech Acc Ambuja Konark  

Rank            

13 Rank the companies on the basis of Relationship making with you on the basis of 1 to 5.

Co. Lafarge Ultratech Acc Ambuja Konark  

Rank            

14 Any suggestions you want to give.___________________________________________________________________

___________________________________________________________________

___________________________________________________________________

QUESTIONNAIRE FOR MASONS

Dear Sir/Madam,

I am conducting a survey on major Cement brands available in Asansol Mkt.As a part of my ‘summer training project. I would be extremely benefited ifyou answer the following questions. I assure you that the informationProvided by you will be used for my project work only.

NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

ADDRESS & CONTACT NO. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

1   Which brand do you prefer most?

Lafarge Ultratech Acc Ambuja Konark

         

2What is the most important facrot to choose that Brand?

Price Quality ServicesBrand name

VolumeCommission from Dealer

Colour Other

               

Explanation : ____________________________________________________________________________________________________________________________________________________________________________________

3 Rank the companies on 1-5 scale.

Lafarge Ultratech Acc Ambuja Konark  

         

4 Have u faced any problem while using that particular brand ?

Fast SettingLate Setting

More/LessWater Consumption

     

5 Do you happy with the supply of the cement?_____________________________________

Why? _____________________________________________________________________________________________________________________________________________________________________________________

6 Any suggestion you want to give?__________________________________________________________________________________________________________________________________________________________________________________________

7 Have you ever invited by any Cement Company in their Mason Meet programme?

Lafarge Ultratech Acc Ambuja Konark

         

8 What have you liked in that meeting ? __________________________________________________________________________________________________________________________________________________________________________________________

9 What do you expect from the Cement Companies?__________________________________________________________________________________________________________________________________________________________________________________________

"You will never find time for anything. You must make it."

Thanking You