A Project ReportON

“ANALYSIS OF SALES AND PROMOTION TECHNIQUES

OF HEILDBERGCEMENT IN BHOPAL REGION”

S

SUBMITTED FOR THE PARTIAL FULFILMENT OFTHE REQUIREMENT FOR THE AWARD

OF

Master of Business Administration

J.P. SCHOOL OF BUSINESS

Mawana Road, Meerut

SUBMITTED TO: SUBMITTED BY:UNDER GUIDANCE OF MRITYUNJAY KUMARMiss. Neha Gupta ROLL NO.-1060970009

Index

Contents

1. Declaration ……………………………….…………………….……. ……..3

2. Acknowledgement………………………………………...…………….……4

3. Executive Summary………….………..……………………………………..60

4. Cement Sector in India……...………………………..………………..…......5

5. Cement Management Association (CMA)……….………………………....10

6. Company Profile………………..……………………………………………13

7. Objectives of study……………………..…………..………………..…........29

8. Introduction Of topic………………………….……….……………………62

9. Research Methodology……………………………...……………....………..76

10. SWOT Analysis…………...………………………………………………….82

11. Finding and Conclusion……………………………………………..……….101

12. Suggestions…………………………………………………………….…….101

13. Limitation…………………………………………………………………….75

14. Bibliography…………………………………………………….…………....102

Declaration

I, Mrityunjay kumar, student of JP School Of Business, Meerut affiliated from MMTU

University, Noida, hereby declare that this project report is the record of authentic work carried

out by me from 23rd June 2011 to 9th Aug 2011 towards partial fulfillment of requirement for the

completion of MBA-Marketing course as prescribed by MMTU University, Noida, and has not

been submitted to any other university or institute for the award of any degree or diploma etc.

Mrityunjay Kumar

MBA-Mktg. 3rd Semester

Acknowledgement

“Interdependence is a higher value than independence” Knowledge in itself is a continuous

process. Nevertheless, a day getting a practical knowledge is an important thing & most

important thing is the support, guidance, motivation and inspiration provided by the different

persons of different sections. At this moment of our substantial enhancement, I find no words to

express my gratitude towards those who helped me directly or indirectly in making this project

successful. I am indebted & thankful for the assistance received from various individuals, so I

thank all those people who contributed to this project from the very beginning till its successful

completion. This project report could not have been completed without guidance of our Miss

Neha Gupta. I extended to my sincere gratitude to Mr. Sachin chathurvedhi (Area In charge)

of the Heidelberg Cement India Ltd. in Bhopal, for his constant and able of guidance which

has been instrumental in large measures on the success of this project. I am very obliged to him. I

also extend my warmest thanks to Mr. Dhritiman Ghosh (Customer Service Head) of Bhopal

Region, whose constant encouragement and guidance was immense help for being on track

through the project. I also sincerely express my gratitude for the help and support rendered by

Mr.Kamal Maheshwari, (GM – Sales).

Last but not the least I would like to thank my faculties & colleagues who guided me enabling

faster and successful project completion.

Mrityunjay

SUMMARY

SUMMARY

The project was carried out at Heidelberg Cement Pvt. Ltd. at Bhopal region.

The Heidelberg cement is one of the biggest market players in cement industries across the

globe. It also has a great market share in India and in the states of Madhya Pradesh, Uttar

Pradesh, Mumbai considered as an important zone in every manner.

Image, as they say, is everything. Successfully measuring brand equity and awareness can help

companies tailor their marketing mix in a way that is not only cost-effective but also strategic in

the long run. Most companies agree that their brand is an asset, yet measuring awareness and

equity of the same asset seems to be more than art than a science. Measuring ROI on your brand

exposure is quite challenging and there are multiple models to effectively measure it.

Under this project, I have analyzed the Sales and promotion of “Mycem” cement as a BRAND

through various methodologies and techniques. By this study I have learnt various marketing

techniques and the ways to judge the company’s market image. Through this project I have

personally met various people and gathered their responses about the brand. More over I have

also analyzed the working conditions of the organization. By this I came to know about the

functioning of the organization like how executives handle different types of work. This study

has given me a good exposure and a personal experience.

CEMENT SECTOR IN

INDIA

Cement Sector in India

Fast rising Government Expenditure on Infrastructure sector in India has resulted a higher

demand of cement in the country. In the same direction, participation of larger companies in the

sector has increased.

India is the world's second largest producer of cement with total capacity of 260 million tonnes

(MT) at the end of FY 2010, according to the Cement Manufacture’s Association.

According to the Cement Manufacturer’s Association, cement dispatches during 20010-11 were

159.43 million tonnes (MT) increasing by 12 per cent over 142.23 in 2009-10. Cement

production during 20010-11 was 160.31 MT an increase of 12.37 per cent over 142.65 MT in

2009-10.

Moreover, the government’s continued thrust on infrastructure will help the key building

material to maintain an annual growth of 9-10 per cent in 2010, according to India’s largest

cement company, ACC.In January 2011, rating agency Fitch predicted that the country will add

about 103 million tonne cement capacity in 2011, taking the total to around 400 million tonne.

New Investments

Cement and gypsum products have received cumulative foreign direct investment (FDI) of US$

1.71 billion between April 2000 and February 2010, according to the Department of Industrial

Policy and Promotion

1) In January 2011, Swiss cement company Holcim announced plans to invest US$ 1 billion

for setting up 2-3 Greenfield manufacturing plants in India in the next five years. The

expansion will take the company’s total cement-making capacity to 60 mtpa (million

tonnes per annum) from 50 mtpa currently.

2) Jaiprakash Associates Ltd. will invest US$ 984.1 million to take its cement

manufacturing capacity from 20 mtpa to 33 mtpa by 2012

3) Madras Cements Ltd. is planning to invest US$ 178.4 million to increase the

manufacturing capacity of its Ariyalur plant in Tamil Nadu to 4.5 MT from 2 MT by

April 2011.

4) Monnet Ispat & Energy (MIEL) will set up cement plants in Chhattisgarh and Gujarat

with an investment of about US$ 527.9 million. Work on the two plants will begin in the

October-December quarter under a new division of the company to be christened Monnet

Cement.

5) Ambuja Cements, the country’s third-largest cement maker, plans to spend around US$

756.3 million to expand its capacity to 24 mtpa from the current 19 mtpa by year-end to

meet strong demand from the infrastructure sector.

Mergers and Acquisitions (M&As)

Dalmia Cement has increased its stake in OCL India to 45.4 per cent from 21.7 per cent

at an investment of US$ 38.24 million as part of its plan to expand its footprint in eastern

India.

In April 2011, French cement maker Vicat bought 51 per cent in Bharathi Cement.

Ultratech Cement, the country’s second-largest cement maker and a part of Aditya Birla

group is acquiring Dubai-based ETA Star Cement for an enterprise value of US$ 382.1

million.

Government Initiatives

Government initiatives in the infrastructure sector, coupled with the housing sector boom and

urban development, continue being the main drivers of growth for the Indian cement industry.

Increased infrastructure spending has been a key focus area. In the Union Budget 2011-

12, US$ 37.4 billion has been provided for infrastructure development.

The government has also increased budgetary allocation for roads by 13 per cent to US$

4.3 billion.

Cement Manufacturers' Association (CMA), the apex body of cement manufacturers in India was

established in 1961. It is a unique body in as much as it has both the private and public sector

cement companies as its members. It is a registered body under the Societies Registration Act. Its

registered office is in New Delhi, Corporate Office in Noida and office in Mumbai. CMA hopes

to open a Branch Office in Hyderabad shortly.

MAIN OBJECTIVES

To promote the growth of the cement industry.

To protect the consumer interests.

To identify newer applications of cement usage.

To establish contacts with similar bodies abroad for exchange of information, data,

publications etc.

President

Mrs. Vinita Singhania

Vice President

Shri M.A.M.R. Muthiah

Administration of CMA (Cement manufacturing Association) in INDIA

Secretary General

Shri N.A. Viswanathan

CEMENT MANAGEMENT ASSOCIATION (CMA)

Services Provided by CMA

Government

• CMA plays a significant role in projecting the cement industry to the Government and

coordinating various activities in respect of formulation of Government policies for the

cement industry through its continuous dialogues and interactions.

• Represents on all major policy making bodies concerned with cement.

• Supplies desired information to all concerned Ministries like Commerce, Railways, Coal,

and Planning Commission.

• Supplies material for answers to Parliament Questions.

• Helps in preparation of important Government documents concerning cement like

Reports for Five Year Plans, etc.

• Submits to the Ministry of Industry Weekly Reports on Infrastructure (Coal, Railways,

Power) for Cabinet Secretariat meetings.

Industry

• CMA identifies and strengthens industry’s role in the economic development of the

country.

• Provides up-to-date statistical data/information to the industry and other agencies.

• Interacts for Industry's problems with the Government and co-ordinates various activities

with bodies like NCB, FICCI, ASSOCHAM, CII, CAPEXIL, etc.

• Focuses infrastructural problems (Rail, Coal, Power, etc) and suggests suitable measures

for their solution.

Consumers

• CMA disseminates information on proper and economic use of cement as well as on

properties and application of different varieties.

• Provides technical advice on concrete roads.

• Creates awareness and supports industry efforts on quality, environment, consumer

protection and similar other issues.

• Creates awareness about eco-friendly packaging.

COMPANY

INTRODUCTION AND

HISTORY

COMPANY PROFILE

The Founding Years

1873

1874

Johann Philipp Schifferdecker purchases

the "BergheimerMühle" - a mill - located

in Heidelberg on the river Neckar and

converts it into a cement factory.

On 5 June 1874, Portland-Cement-Werk

Heidelberg, Schifferdecker&Söhne, is

entered in the commercial register as a

partnership.

1889The company goes public, and trades under the name of Portland-Cement-Werk

Heidelberg AG, previously Schifferdecker&Söhne.

1895After a fire on 4 February 1895, construction of a modern factory begins in Leimen,

some 10 km to the south of Heidelberg.

The Expansion Years

1896 The new plant in Leimen starts operations in 1896; annual production of 80,000 tonnes.

1901 Merger with the Mannheimer Portland-

Cement-Fabrik AG to form

Portland-Cement-Werke Heidelberg und

Mannheim AG, also including the acquisition

of the Mainz-Weisenau cement plant, which

had been founded in 1864. Numerous holdings

in brickyards, gypsum pits and cement plants

follow.

1914 Takeover of the Burglengenfeld cement plant.

1918 As a result of the merger with the real

estate and construction company

“StuttgarterImmobilien- und Bau-

Geschäft AG“, the Schelklingen cement

plant becomes part of the company. The

new company retains the name Portland-

Cementwerke Heidelberg-Mannheim-

Stuttgart AG until 1938.

1922 Acquisition of the Lengfurt cements plant.

1926 Acquisition of the Kiefersfelden cements plant.

1993 till today

Start into new Dimensions

1993 A broad international presence is attained through the takeover of the Belgian S.A.

Cimenteries CBR in Brussels. Division of the areas of responsibility into the regions of

Central Europe West, Western Europe, Central Europe East and North America, with the

business lines of cement, concrete and building materials for each of these.

1994 First-time consolidation of CBR: Group turnover increases to DM 6.3 billion (EUR 3.2

billion); the number of employees reaches 24,000.

1995 Continuation of the internationalization: Entry into the Chinese market through holding

in China Century Cement Ltd.

1996

1998

1999

Foundation of the Turkish joint venture, Akcansa

with Sabanci Group as partner.

Heidelberger Baustofftechnik and Deitermann are

combined to form Heidelberger

BauchemieGmbH.Market entry in Romania

through the acquisition of a majority stake in the

MoldocimBicaz cement plant. In 2000 and 2002

respectively, the Casial Deva and RomcifFieni

plants are purchased.

With the acquisition of the Scandinavian Scancem

Group, Heidelberg Cement expands its

International market presence considerably. The dry mortar activities in Europe are

developed by a majority interest in the Maxit Holding GmbH.

1999/

2000 

HeidelbergCement increases its stake in CBR to 100% through an exchange offer and a

subsequent squeeze-out procedure.

2000 Acquisition of a majority stake in the Kakanj cement plant in Bosnia Herzegovina.

2001 Acquisition of a majority stake in the second-largest Indonesian cement producer,

Indocement.Market entry in the Ukraine through the acquisition of a majority stake in

the KryvyiRih cement plant.

Acquisition of a majority stake in the Russian cement plant Cesla near Saint Petersburg.

2002 In Union Bridge, Maryland, the largest and most

modern cement plant in the US with a capacity of 2

million tonnes is taken into service.

Majority stake in the Ukrainian cement plant,

Dniprocement.

Purchase of the Wetzlar cement plant from Buderus

Group. Closure of the Kiefersfelden cements plant

due to low capacity utilisation rates at the southern

German Group plants.

Conversion of the preference shares into ordinary

shares. The company is renamed HeidelbergCement

AG.

2003 Conversion of the Mainz-Weisenau cement plant into a grinding plant. Heidelberg

Cement increases its participation in AnnelieseZementwerke AG to 97.4% by

purchasing the shares from Dyckerhoff AG. Acquisition of the KönigsWusterhausen

grinding facility near Berlin. Takeover of the Ekocem grinding facility in Katowice,

Poland. Increase of the participation in China Century Cement to 49%.

2004 First-time consolidation of Indocement.

Takeover of the Bosenberg cement plant in Ahlen, Westphalia. Acquisition of a majority

stake in TeutoniaZementwerk AG in Hanover, Lower Saxony.

2005 Following the completion of the takeover bid, Spohn Cement – including the persons

acting in concert and their subsidiaries – holds 77.95% of the shares in Heidelberg

Cement.

Start of the “win” project. The three-year project aimed at strengthening Heidelberg

Cement’s future viability includes: streamlining

the administrative organisation and setting up shared service centres, uniform standards

and key performance indicators, centralising IT, and moving Group functions to

Heidelberg.

Start of production at the new Guangzhou cement plant in the southern Chinese province

of Guangdong with a capacity of 2.3 million tonnes; in addition, HeidelbergCement

forms a joint venture in the northern Chinese province of Shaanxi

which includes the Fufeng cement plant and the construction of a new plant in Xian, the

capital of the province.

Entry into the Kazakhstan market with the acquisition of the cement plant of Buchtarma

Cement Company. By purchasing Doncement, HeidelbergCement expands its market

position in the Ukraine.

2006 Market entry in India and Georgia.

Acquisition of a majority stake in the Russian aggregates and precast concrete elements

company GurovoBeton in the Tula region, around 130 km south of Moscow.

2007 Takeover of the British building materials company Hanson PLC, one of the largest

producer of aggregates in the world.

Commissioning of the new Jingyang cement plant in the Chinese province of Shaanxi.

Expansion of the market presence in Turkey trough the purchase of the Ladik cement

plant by our joint venture Akçansa.

Sale of the 35% stake in the French cement producer Vicat.

Sale of maxit Group to the French building materials producer Saint Gobain.

Today, Heidelberg Cement is the global market leader in aggregates and a prominent player in

the fields of cement, concrete and other downstream activities, making it one of the world’s

largest manufacturers of building materials. The company employs some 61,000 people at 2,700

locations in more than 50 countries.

In more than 50 countries across the world, the name Heidelberg Cement stands for competency

and quality. Heidelberg Cement is the global market leader in aggregates and a prominent player

in the fields of cement, concrete and other downstream activities, making it one of the world’s

largest manufacturers of building materials. In 2010, Group turnover amounted to approximately

EUR 11 billion. The core activities of Heidelberg Cement include the production and distribution

of cement and aggregates, the two essential raw materials for concrete. We supplement our

product range with downstream activities such as ready-mixed concrete, concrete products and

concrete elements, as well as other related products and services. Around 61,000 employees in

more than 2,700 locations make sure on a daily basis that our slogan” for better building “is

brought to life.

A company with a long tradition

Heidelberg Cement has come a long way from the foundation of the first cement plant in

Heidelberg in 1873 to one of the leading international building materials group it is today. The

company was active in the South German region exclusively until the end of the 1960s. First

steps into the international arena followed with the participation in the French cement company

Vicat and the acquisition of Lehigh Cement in the USA in 1977. At the end of the 1980s, the

political changes in the countries of Central and Eastern Europe offered new opportunities, and

Heidelberg Cement became the largest investor in the building materials industry of the region.

In the 1990s, the international expansion accelerated. The acquisition of the leading Belgian and

Scandinavian cement producers CBR and Scancem opened up new markets in Western and

Northern Europe, as well as in Africa and Asia. The entrance into Indonesia followed in 2001

and again created a significant increase in capacity. Our objective” Priority for growing markets

“was the driving force behind our engagements in China, India, Kazakhstan, Georgia, the

Ukraine and Russia over the last several years. By making the biggest acquisition in the building

materials industry – the takeover of the building materials manufacturer Hanson in 2007 – we

have expanded and consolidated our position among the leading companies worldwide.

Organizational reshuffle

Transparent organizational structures and clearly defined responsibilities have noticeably

improved the speed of decision-making, strength of implementation and cost efficiency at

Heidelberg Cement. The organizational reshuffle within the Group is also reflected in the

streamlined reporting format of the Group areas:

Europe

North America

Asia-Australia-Africa

Group Services

Strategic reorientation

In order to safeguard our market position in the long term, we have readjusted our corporate

strategy: Besides the traditional core business of cement, aggregates (sand, gravel and crushed

rock) have become a second strategic pillar. The takeover of Hanson in 2007 was a logical

consequence of this reorientation. This allowed Heidelberg Cement to become a global player

with a broad geographical positioning and a dual raw materials and product focus on cement and

aggregates.

Our strategy is clear and convincing: Concrete, the building material for which there is most

demand worldwide, is by far our most important end product. Concrete is composed of

approximately 75% aggregates and approximately 10% cement. With the takeover of Hanson,

one of the leading aggregates companies worldwide, we are improving our position as a global,

integrated supplier of building materials and are strengthening our raw material base for

aggregates. Hanson has well positioned very extensive raw material deposits in the important

markets of North America, the United Kingdom and Australia.

We supplement our product range with downstream activities such as ready-mixed concrete,

concrete pipes, recast concrete parts, asphalt and other related products and services, particularly

in the industrialized countries with an advanced degree of vertical integration.

Heidelberg Cement is pursuing a clear dual external growth strategy: expansion of the cement

business in growth markets and North America; and focus on aggregates and downstream

activities in mature markets and North America. 

Focus on quality and customer satisfaction

Heidelberg Cement develops, produces and distributes top-quality building materials for

customers all over the world. We are where our customers are, and we place great value on close

collaboration on a local level. We know that the success of our customers is also our success.

Our aim is long-term customer loyalty based on the convincing quality of our products as well as

our extensive range of services.

Continuous innovation and improvement

our performance and the high quality of our products are based on the use of state-of-the-art

technology and production procedures. Our aim is the manufacture of durable products that are

easy to use and offer added value to our customers. To offer customized solutions to our clients,

we continuously invest in the development and improvement of products in the area of cement,

concrete and building materials. Our companies can rely on their own research departments as

well as the experience and professional expertise of our subsidiary Heidelberg Cement

Technology Center, represented all over the world with its highly qualified professionals and

branches in all Group areas. By transfer of knowledge, comparison and optimization of

performance as well as the introduction of so-called best practice solutions throughout the

Group, innovations and new technologies can be implemented quickly, resulting in improved

products and manufacturing procedures to benefit our customers across the world.

Our foundation – committed and qualified employees an excellent management

team and committed, qualified employees are the foundation of our success. As a performance

and result-orientated company, we place great value on the competence of our employees and

management. This is why Heidelberg Cement offers a wide range of possibilities for professional

advancement and looks after occupational health and safety.

Sustainability – a pillar of our corporate strategy

At Heidelberg Cement, a high value is placed on sustainability – a pillar of our corporate

strategy. As we want to be among the world’s best within our industry in this area, we are

committed to ecological, social and economic goals. In 2006, we supplemented the guidelines for

responsible entrepreneurial activity with a Group-wide Code of Business Conduct. In our day-to-

day-work, we apply the highest standards in quality, environmental protection and occupational

safety.

Responsibility for the environment

Heidelberg Cement takes its responsibility for the environment seriously. Environmental

protection is a central part of our strategy of sustainability. In this regard, climate protection and

conservation of resources are our predominant goals. Heidelberg Cement is a member of the

World Business Council for Sustainable Development (WBCSD) and has committed itself to

sustainable cement production. We use natural resources responsibly and our goal is to lower the

specific CO2 emission levels of 1990 by 15% by the year 2010. To reach this goal, production

procedures are optimized continuously and the use of alternative raw materials and fuels is

intensified.

Social responsibility on a local level

Social responsibility has a long tradition and is ranked highly at Heidelberg Cement. We play an

active role in the cities and communities where our production sites are located. We maintain an

open dialogue with the neighbors, the local citizens and politicians and any other stakeholders.

Heidelberg Cement contributes to the economic development of these communities with its

`

regional activities. The examples of our social commitment are as numerous as are the cultures

and people at our locations. Our activities range from cultural and charity projects to the building

of kindergartens, schools and hospitals. Our contribution to the setting up of public buildings and

institutions for education and health, especially in developing countries, underlines our

commitment to the promotion of public welfare.

HeidelbergCement strengthens its position in India

HeidelbergCement plans to take over the majority of the Indian cement company Mysore

Cement Ltd, in order to gain access to the central and southern Indian markets. Mysore Cement

is a publicly listed cement company with integrated cement plants in Damoh (north central India)

and Ammassandra (southern India), and a grinding plant in Jhansi (northern India). Damoh and

Jhansi supply, among others, the market in Bhopal, Lucknow; Ammassandra logistically has a

good access to the rapidly growing Bangalore area. In 2005, the cement and clinker sales

amounted to 2.2 million tonnes with a total capacity of 2.6 million tonnes. 

In the first stage, HeidelbergCement intends to take over a stake of 41.7% by a capital increase.

Upon completion of the capital increase, HeidelbergCement plans to acquire an 8.4% stake from

Birla Group, Mysore Cement’s main shareholder. This acquisition will give HeidelbergCement

more than a 50% stake in Mysore Cement. The buying price for this transaction will amount to

about USD 100 million. Pursuant to Indian law, HeidelbergCement is then obligated to make a

public tender offer. 

In the last 10 years, the Indian cement market has grown about 8% yearly. After China, India is

the second largest cement consumer in the world. Due to large population growth and expansion

of infrastructure, a dynamic development of construction activities is expected in the coming

years. In 2005 the cement consumption grew by 11% to approximately 136 million tonnes. The

domestic cement production facilities are presently operating at full capacity. 

“The acquisition of Mysore Cement is in line with our long-term strategy of step-by-step

expanding our presence in emerging markets,” says Dr. Bernd Scheifele, Chairman of the

Managing Board at HeidelbergCement. “With its activities in central and southern India, Mysore

Cement offers a good starting point for supplying cement to the rapidly developing markets in

the western part of India. With the existing grinding plant in Mumbai, our capacity in India will

reach about 3.5 million tonnes of cement.”

Mr.P.G.Mankad (Chairman)Mr.P.G.Mankad (Chairman)

Dr.Brend ScheifeleDr.Brend Scheifele

Dr.Lorenz NagerDr.Lorenz Nager

Dr. Albert ScheuerDr. Albert ScheuerMr. Ashish Kumar Guha (M.D)Mr. Ashish Kumar Guha (M.D)Mr. Amitabh GhoshMr. Amitabh GhoshMr. S. Kishna KumarMr. S. Kishna Kumar

BOARD OF DIRECTORS BOARD OF DIRECTORS

“ORGANISATIONAL HEIRARCHY IN HEIDELBERG CEMENT-

BHOPAL”

Mr.Kamal Maheshwari

(General Manager- Mktg.)

Mr. Dhritman Ghosh

(Customer Service Head)

Mr. Sachin Chaturvedi

(Area in charge)

Mr. Sunil Pillai

(MIS Head)

Mr. O. P. Purohit

(A/C Dept.)

Mr. Prakhar Chaturvedi

(Senior Sales Officer)

Mr. Adil Azim

(Senior Sales Officer)

OBJECTIVE

The objective was carried out for two main objectives:-

The first objective of project was to study the sales promotion activities undertaken by Mycem

and other competitors.

The second objective was carried out the market survey for knowing prevailing market

condition of Mycem Cement in Bhopal market.

OTHER OBJECTIVES

1. To Increase Sales.

2. To analyse the market share of Mycem Cement in Bhopal market.

3. To know the customer preference for the brands of cement.

4. To know the preference of retailer for sorting different brands of cement.

5. To understand the effectiveness of various sales promotional activities of cement.

6. To create goodwill.

7. To analyse the sales promotion activities of various brands.

8. To introduce new products to consumers to use.

9. To attract new customers.

Mission

The company’s culture and our fundamental values are based on our Corporate Mission.

We are building on the three pillars of sustainable development: 

   - Economy, ecology and social responsibility.

Our economic goals are to continuously increase our earnings through cost

leadership and long-term, profit-oriented growth.

We strive for long-term customer relationship based on reliability and integrity.

Our success is based on competent, dedicated employees and an excellent management

team.

Climate protection and conserving natural resources are a matter of priority for our

objectives in environmental protection.

Our information policy is to provide open communication. We inform truthfully and

responsibly. 

Our dealings with each other are marked by active and open communication.

 

Leadership Principles

Based on our Corporate Mission, the Heidelberg Cement Leadership Principles were

designed to help us build a common management and leadership culture.

Absolute priority is assigned to focusing on comprehensive efficiency and sustainable

profitability while also putting emphasis on customers and profit-oriented growth.

 With this in mind, cost awareness and highly efficient structures and processes are of the

highest importance as well as speed and consistent implementation. To achieve our

objectives, we rely on dedicated and qualified employees and an excellent management team.

We are convinced that a corporate culture, which is primarily based on employee-orientation

and partnership, will lead to the long term success of Heidelberg Cement. 

Partnerships | "Trust and fairness"

Performance and Result Orientation | "Out performance through rigorous benchmarking"

Customer Orientation | "Greatest possible benefit for the customer"

Sustainable Development | "Taking responsibility"

Professional, Social and Management Competence | "Competence as a success factor"

Role Model | "Lead by example"

Communication and Information | "Creating transparency"

Commitment | "Inspiring yourself and others"

Employee Development | "Challenge and support"

Assessment and Feedback | "Development and performance through feedback

Cement

The word “cement” is based on the Latin word “caementum” (=rubblestone). The binder that is

used in the production of concrete and mortar has the ability to harden even in water. Different

applications require the use of various types of cement with a specific composition. The

properties can also be varied through additives.

Standard cements

Specialty cements 

White cements, trass cements

Highly sulphate resisting Aquament and Portland cement for hydraulic engineering

Anti-sulphate for sewage works construction

Microcem, extremely fine cement for soil injection and masonry repair

Depocrete and Procreate for waste dump sealing.

Masonry cement

Specific binders

Tailor-made ready-mixed cement products for geotechnology, environmental technology and

road construction.

Aggregates

The features of aggregates as high quality raw material for ready mixed concrete and concrete

products depend on the specifics of the quarries from which they originate.

Aggregates are further used for structural fill, road base, railway ballast and many other

applications.

Concrete

Ready-mixed concrete, ready-mixed mortar

Concrete-like building materials were already used by the ancient Romans. Concrete, the

compound formed out of binders, such as cement, and aggregates, such as sand and gravel, has

become an integral component in modern architecture and construction engineering.

Optimal provision by an efficient logistic concept: Ready mixed concrete is produced in the plant

under computer control and arrives on time by truck at the construction site.

Concrete products

Light, heavy and aerated concrete building blocks, pavers, prefabricated ceilings and

walls, prefabricated cellar units, prefabricated sewage works units

Building products

Heidelberg Cement offers a comprehensive range of top-quality building materials that includes

traditional materials as well as specific products for various applications.

Limestone and lime products

Limestone aggregates, limestone sand, pulverized limestone, burnt limestone, white pulverized

limestone and limestone hydrate

Sand-lime bricks

Sand-lime brick construction systems, solid, perforated, oversize (KS-Quadro) and facing sand-

lime bricks

PRODUCT &

INNOVATIONS

Product & Innovations

Cement

Besides aggregates, cement is an essential component of the end product of concrete. Different

applications require the use of various types of cement with a specific composition.

The word “cement” is based on the Latin word “caementum” (=rubblestone). The binder that is

used in the production of concrete and mortar has the ability to harden even in water. Different

applications require the use of various types of cement with a specific composition. The

properties can also be varied through additives. 

Standard cements 

Specialty cements 

White cements, trass cements

Highly sulphate resisting Aquament and Portland cement for hydraulic engineering

Anti-sulphate for sewage works construction

Microcem, extremely fine cement for soil injection and masonry repair

Depocrete and Procrete for waste dump sealing.

Masonry cement 

Specific binders

Tailor-made ready-mixed cement products for geotechnology, environmental technology and

road construction.

 

Aggregates

Aggregates including sand, gravel and crushed stone constitute important components of

concrete. The features of aggregates as high quality raw material for ready mixed concrete and

concrete products depend on the specifics of the quarries from which they originate.

Aggregates are further used for structural fill, road base, railway ballast and many other

applications.

Concrete

Concrete, the compound formed out of binders, such as cement, and aggregates, such as sand and

gravel, has become an integral component in modern architecture and construction engineering

Ready-mixed concrete, ready-mixed mortar 

Concrete-like building materials were already used by the ancient Romans. Concrete, the

compound formed out of binders, such as cement, and aggregates, such as sand and gravel, has

become an integral component in modern architecture and construction engineering.

Optimal provision by an efficient logistic concept:Ready mixed concrete is produced in the plant

under computer control and arrives on time by truck at the construction site.

Concrete products 

Light, heavy and aerated concrete building blocks, pavers, prefabricated ceilings and

walls, prefabricated cellar units, prefabricated sewage works units

Building Products

Heidelberg Cement offers a comprehensive range of top-quality building materials that includes

traditional materials as well as specific products for various applications such as Limestone and

lime products, Sand-lime bricks, Environmental technology.

Limestone and lime products 

Limestone aggregates, limestone sand, pulverised limestone, burnt limestone, white pulverised

limestone and limestone hydrate 

Sand-lime bricks 

Sand-lime brick construction systems, solid, perforated, oversize (KS-Quadro) and facing sand-

lime bricks 

Environmental technology 

Specialty products and services for waste stabilisation, landfill construction and immobilisation

of toxic compounds.

Group Services

Group Services comprises mainly the trading activities of the wholly-owned subsidiary HC

Trading.

HC Trading

With an annual trade volume of around 10 million tonnes, our subsidiary HC Trading is one of

the largest international trading companies for cement and clinker in the world. The company has

trading offices in Istanbul, Malta, Singapore, Shanghai and Dubai. 

HC Trading primarily trades cement and clinker as well as white cement, oil well cement,

granulated blast furnace slag, gypsum, limestone and other materials needed by the cement

industry. Just under two thirds of the total trade volume is purchased by Group companies. 

In addition, HC Trading has been active in seaborne trading of coal and petcoke since 2009,

supplying Group cement companies as well as external customers. 

More than 900 ships employed by HC Trading call at ports in almost 100 countries. Thanks to

this global trading network, we are able to increase the capacity utilisation of our own cement

plants by transporting the surplus from one country to another country with high demand. 

 

In summer 2007, HC Trading received BSI Certification under ISO 9001 for its management

system in international cement trading and shipping services.

Innovations made by Heidelberg Cement

The production of new and forward-looking building materials constitutes a permanent challenge

for our research and development teams. With our innovative products and production processes,

we contribute to progress and ensure our future.

Waste heat power

With the aid of novel technology, waste heat - being generated during the cement production

process - can be used for electricity generation. This implies not only cost savings but especially

benefits the environment by reducing the use of natural resource.

TioCem with TXActive – A Cement to improve Air Quality!

The new cement TioCem makes an active contribution to environmental protection. TioCem

with the TX Active function is able to decompose pollutants.

ThermoCem

ThermoCem is a hydraulically-setting dry mortar specially developed for bedding in geothermal

probes.

Waste heat power

With the aid of novel technology, waste heat - being generated during the cement production

process - can be used for electricity generation. This implies not only cost savings but especially

benefits the environment by reducing the use of natural resources.

Heidelberg Cement applied this technology for the first time on a large scale in its Chinese plants

in Jingyang, Fufeng and Zhujiang. Using waste heat from clinker coolers and kiln exhaust gases

as well as when converting water into steam, up to 9 megawatts of electrical power can be

generated. This corresponds to around a third of the total electricity consumption of a cement

plant.

At the Zhujiang cement plant, waste heat power has been generated since November 2007

without any disturbances. Its installed capacity is 7.5 MW. The generator produces around 30

kWh/tonne of clinker.

The volume of waste leather burned at the Zhujiang cement plant will be increased from 1 tonne

per hour to 3 tonnes per hour.

The waste heat power generator at the Zhujiang cement plant was completed in November

2007 and has a capacity of 7.5 MW.

Geothermal probe embedded in Product

ThermoCem® is a hydraulically-setting dry mortar specially developed for bedding in

geothermal probes. Compared with conventional backfilling materials, the thermal

Conductivity of ThermoCem® is twice as high (λ=2.0 W/mk). In addition, ThermoCem®

guarantees an effective and powerful bond between the probe and the soil area.

Application

Geothermic (also referred to as geothermal energy) is the energy stored within the earth. In the

Central European region, for every 100 m below ground the temperature increases by around

3°C. The energy stored in the earth is not dependent on the seasons and is constantly available.

Our current understanding is that this is an inexhaustible source. Using suitable systems,

geothermic can be used to obtain electricity (e.g. hot dry rock procedure) or for heating or

cooling buildings (e.g. using geothermal sensors connected to heat pumps).

Heidelberg Cement India Limited (“the Company”) is committed to being an ethical and

responsible member of the business communities in which it operates. The Company always

endeavors to ensure that highest standards of honesty, integrity and ethics are maintained. While

the Company has instituted a general Code of conduct applicable to all employees, this Code

provides fundamental and broad general standards for the Company, particularly for its Directors

and Senior Management.

a The Company shall operate within all applicable laws and regulations of the land. The

Board and the Directors shall act in accordance with powers granted to them by the

Articles of Association. The duty of the Directors is to act bona-fide in the Company’s

interest, to the best of their ability to use the powers and information available to them for

proper purposes and not for any collateral purpose. The Directors take care that the

Company’s senior executives exercise due care and diligence, and shall have regard to

interests of all stakeholders and essentially for the benefit of all its shareholders.

b The Board shall meet regularly, maintain effective control over the Company and

monitor the executive management. The Board’s prime attention shall be on strategic

issues and their approval, policy and control, delegation of powers, specifying issues that

remain in the Board’s domain and in defining the role of the management.

c The Directors and senior executives shall conduct business and develop its relationships

in a dignified, honest and responsible manner. The Management intends that it shall be

progressive, competent and trustworthy, creating and enhancing value

for stakeholders of the Company. Integrity, transparency and accountability should be

highlights of all operations of the Company.

APPLICABILITY

Heidelberg Cement India Limited (“the Company”) is committed to being an ethical and

responsible member of the business communities in which it operates. The Company always

endeavors to ensure that highest standards of honesty, integrity and ethics are maintained. While

the Company has instituted a general Code of Conduct applicable to all employees, this Code

provides fundamental and broad general standards for the Company, particularly for its Directors

and Senior Management.

1. All Directors and members of the Senior Management as below (collectively called

“seniors”), and all persons reporting to the level of Directors, are expected to abide by

these guidelines at a minimum. They are also expected to lead other employees by

example.

a. All Directors, whether executive, non-executive or nominee directors;

b. All Executives from the rank of General Manager and above;

c. Any other appropriate person that the Board may determine.

2. The Board of Directors of the Company shall be the final internal authority as far as any

interpretation of the Code or its applicability/violation and consequential actions are

concerned.

3. The Code may be expanded and/or improved upon and/or altered and/or varied from

time to time.

COMPLIANCE

Heidelberg Cement India Limited (“the Company”) is committed to being an ethical and

responsible member of the business communities in which it operates. The Company always

endeavors to ensure that highest standards of honesty, integrity and ethics are maintained. While

the Company has instituted a general Code of Conduct applicable to all employees, this Code

provides fundamental and broad general standards for the Company, particularly for its Directors

and Senior Management.

1. Positive Work Environment

a. All Seniors are expected to uphold a culture emphasizing honesty, integrity, fairness,

trust, competence, professionalism, discipline, teamwork, as well as truthfulness and high

moral standards in day-to-day dealings and conduct, both within and outside.

b. All are expected to treat each other and their juniors with respect for individual dignity

and rights, not to discriminate on grounds of race, ethnicity, caste, marital status or

gender, and maintain a work environment free of sexual harassment.

c. All are expected to provide an open, motivating work environment which is conducive to

upholding and achieving the Company’s vision, targets and goals.

d. Entry into and progression within the Company shall be determined on merit and needs

of the business and Seniors shall support the principles of proper, fair and transparent

evaluation processes and professional growth in line with individual capabilities.

e. Any appointment or extension, dismissal, increment or promotion (including the making

of any promise towards appointment, extension, increment or promotion) requires that

procedures in the Rules of the Company be followed.

Promotions and/or increments shall not be automatic or time bound but performance and

merit based.

f. Pride of place shall be given to the best of social, cultural and intellectual values, in

behavior and conduct.

2. Confidentiality

a. All Seniors shall respect the sanctity of confidential and other business information they

may receive or acquire in the course of their professional activities whether from internal

or external sources. Such information shall not be conveyed to anyone, inside or outside the

Company, who is not authorized to receive it. Where disclosed a similar obligation for

confidentiality may be required by the Company. Disclosure of business, technical,

commercial, proprietary or other information in the public domain shall be made only by

specifically authorized persons.

b. Non-public information obtained by any senior may not be used either for personal gain

or by any third party as a result of association with the senior. Use for personal gain

includes taking advantage of such information by trading (or providing others for them to

trade) in Company shares or in shares of other companies with which the Company has

any price-sensitive contact, including but not limited to acquisition evaluation or

negotiation or acquiring property or assets of any kind.

3. Conflict of Interest

a. All Seniors shall avoid situations in which any conflict may arise between their private

interests and those of the Company. Such conflicts could involve, but are not limited to,

customers, suppliers, contractors, competitors and present or prospective employees.

There are specific provisions in the general code of conduct regarding the acceptance or

provision of, or soliciting of, consideration, gratuities, entertainment and gifts.

b. Seniors must not make improper use of the resources of the Company or that of any of its

suppliers or customers, nor permit others in the Company to do so. All concerned

shall be personally accountable for proper expenditure of Company funds and also

responsible for proper use of Company assets over which they exercise control. It is

expressly forbidden to (either directly or indirectly) grant any official favor for personal

collateral interests or to spend money of the Company for personal benefit or purpose.

4. Legal Compliances

a All Seniors are required to comply with all laws and regulations applying in the

jurisdictions in which they operate.

b All Seniors shall abide by any Insider Trading Code of the Company.

c The senior management (including Chief Executive Officer, Chief Operating Officer,

Chief Financial Officer, Secretary, etc.) has additional responsibilities in the preparation

and release of financial and other information into the public domain. In addition to

ethical requirements of this Code they shall have a special responsibility for ensuring :

Full, fair, accurate, timely and understandable disclosure in reports and documents that

the Company may file with or submit to various Stock Exchanges, Securities & Exchange

Board of India, and other public communications made by the Company;

Maintenance of proper accounting and other records and details in accordance with all

laws and regulations.

5. Social Responsibility

a. All concerned shall maintain respect for the environment generally, and the Company

shall conform to all environmental laws.

b. All concerned shall endeavour to ensure total industrial safety.

c. All concerned shall use their best efforts to preserve a healthy work environment in all

the Company offices and plants.

d. The Company shall make efforts to extend support to employee and community welfare,

health and education. It is committed to being a good corporate citizen.

6. Corporate Governance

The Audit Committee shall oversee the effectiveness of the audit and internal audit tasks, to

assist the Board in providing useful supervision of the overall financial reporting process.

a- Due emphasis shall be laid on the audit/internal audit process, as necessary to

safeguard the interests of shareholders. Every Director and Officer of the

Company must extend his

b- full co-operation to the Auditors and ensure that all information as may be

required by them is made available. The Audit Committee may also have

propriety audit conducted from time to time.

7. General

a. This Code should also be read in conjunction with Company policies and procedures that

may be laid down from time to time and all concerned are required to comply with the

same. This Code does not intend to replace or limit any other applicable requirements,

nor is it suggested that any set of rules could be preferable to the basic notions of

propriety and common sense by which all are expected to regularly operate and conduct

themselves.

HEIDELBERG ENTERS INDIA

Heidelberg Cement concluded a 50:50 joint venture agreement in India, consisting of the

grinding plant of Indorama Cement Ltd, owned by the Indorama S P Lohia Group, and located in

Mumbai (Bombay) on the West coast of India.

The plant, which was built in 2000, has a cement capacity of 750,000 tonnes and is in very good

technical condition. It has an excellent market position in the vicinity of the big markets of

Mumbai (17 million residents) and Pune (5 million residents). Due to its location next to a steel

plant of the Ispat Group, led by Mr. P.K. Mittal and Mr. V.K. Mittal, Indorama has also direct

access to blast furnace slag, which is an important factor for sustainable and cost efficient cement

production. Indorama is the only producer of high quality slag cement on the Mumbai market;

the company operates also a terminal near the Mumbai harbor. The approval procedure for the

construction

PLANTS

AMMASANDRA (Karnataka)

DAMOH (Madhya Pradesh)

JHANSI (Uttar Pradesh)

DOLVI (Maharastra)

CHOCHIN (keral)

QUALITY ASSURANCE:

Our policy is to supply excellent quality cement that cater continuously to the

needs and expectation of our customers both in terms of agreed schedule of

delivery and international levels of quality.

 

Our trained personnel ensure that various parameters of quality are maintained

during the process of manufacture so that the end product, Mycem, conforms or

exceeds the standards set by BIS.

 

Our endeavour is to achieve complete customer satisfaction.

 

Mycem’s technical team makes continuous efforts to deliver quality products that

can be benchmarked as the best in the Industry.

Group Areas

Europe-Central Asia

Austria, Belgium, Bosnia-Herzegovina, Croatia, Czech Republic, Denmark, Estonia, Georgia,

Germany, Hungary, Israel, Kazakhstan, Latvia, Lithuania, Netherlands, Norway, Poland,

Romania, Russia, Slovakia, Spain, Sweden, Switzerland, Ukraine, United Kingdom

North America

Canada, U.S.

Asia-Australia-Africa-Mediterranean

Asia:

Bangladesh, Brunei, China, India, Indonesia, Malaysia, Singapore

Australia

Africa:

Benin, Gabon, Ghana, Liberia, Sierra Leone, Tanzania, Togo

Mediterranean:

Turkey, United Arab Emirates

Group Services:

A group service brings together our international trading activities for cement and clinker (HC

Trading) and the purchase of fossil fuels on the international commodity markets (HC Fules).

INTRODUCTION TO THE

TOPIC

INTRODUCTION TO THE TOPIC

Today it is fashionable to talk about the new economy. We hear that the business are operating in

globalize economy; things are moving at a nanosecond pace our market are characterized by

hyper competition and disruptive technologies are challenging every business and so business

must adopt to empower consumer

To become successful in such a competitive environment the business organizations have to be

customer oriented. Customers need and want must be taken care of.” Built customer and not only

products”. Customer must be delighted. This information about the market could be collected by

the way of proper market survey. By the market survey we get the feed about the good or

services of the organization .For this purpose the said project work is undertaken.

The project was carried out for knowing prevailing market condition of Heidelberg Cement in

Bhopal Region .The second objective of the project was to study the sales promotion activities

undertaken by Heidelberg (Mycem) and its other competitors.

The project was carried out in the marker of Bhopal of MP state. There are six market players in

cement industry. They are Jaypee, Prism, Ultratech, ACC, Lafarge, and Corromandel apart from

these there are few local brands selling in the market.

The information about the market was gathered by visiting retailers in the market. Interview of

retailers was taken depending upon there accessibility.

While doing the project attempt was made to collect maximum information about the marker.

To get actual and correct information ,it was not told retailers that the survey is conducted by

Mycem Cement for the obvious reasons .Number of retailers were visited to get the actual

picture of the market. Again, the retailers of each grade (according to the performance) were

visited, to get each and every detail about the market.

Most of the time was spent on traveling for getting the actual picture of Mycem market by visit

retailer who are a few far away from Bhopal city, where retailer were reluctant to give the

information, as they do not want to disclose their business details. Visits to such retailers were

loss of time, money and energy.

After collecting the key information about the market, analysis is done. In the analysis, the

observations recorded during the project were carefully analyzed and the results are prepared.

The findings and result of the project work are given at the later stage in the report.

OBJECTIVE OF THE PROJECT

This project was undertaken for two main objectives are

The first main objective is

To carry out market survey for knowing prevailing market condition of Heidelberg India

Ltd. In Bhopal –MP state.

The second objective is

To study the sales and promotion activities undertaken by Mycem (Heidelberg) cement

and other player in the market.

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

These are listed below.

To analyze the market share of Mycem Cement in Bhopal market.

To know the customers preference for the brands of cement.

To know the preference of retailer for sorting different brands of cement.

To understand the effectiveness of various sales promotion activities of cement.

To know preference of retailers for different gift and incentives.

To analyze the sales promotion activities of various brands.

To analyze the transportation facilities for Mycem (Heidelberg) and other cement

companies.

To analyze the frequency of visits of marketing representative of various companies

Thus it attempt to find ways to increase market share, to increase customer satisfaction and thus

increase the business prospects.

Scope of the study

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

consumer preference towards the cement market.

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

overcome the low sales of its cement.

PROMOTION

Promotion is one of the four elements of marketing mix (product, price, promotion, place). It is

the communication link between sellers and buyers for the purpose of influencing, informing, or

persuading a potential buyer's purchasing decision.[1]

The specification of five elements creates a promotional mix or promotional plan. These

elements are personal selling, advertising, sales promotion, direct marketing, and publicity.[2] A

promotional mix specifies how much attention to pay to each of the five subcategories, and how

much money to budget for each. A promotional plan can have a wide range of objectives,

including: sales increases, new product acceptance, creation of brand equity, positioning,

competitive retaliations, or creation of a corporate image. Fundamentally, however there are

three basic objectives of promotion. These are:[3]

1. To present information to consumers as well as others

2. To increase demand

3. To differentiate a product.

There are different ways to promote a product in different areas of media. Promoters use internet

advertisement, special events, endorsements, and newspapers to advertise their product. Many

times with the purchase of a product there is an incentive like discounts, free items, or a contest.

This is to increase the sales of a given product.

The term "promotion" is usually an "in" expression used internally by the marketing company,

but not normally to the public or the market - phrases like "special offer" are more common.

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

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

communication. Promotion consist of activities that facility exchanges with target customers

through persuasive communication to stimulate demand.

According to Professor Philip kotler:- Promotion includes all the activities the company

undertakes to communicate and promote its products to the target market.¡¨ In modern marketing

the question is not whether to promote but rather what to say, to whom and how often. A good

product, an attractive price and an accessible distribution must be supported by an effective

promotion to satisfy customer needs. Promotion activity include advertising, sales promotion,

public relation, and direct marketing. Promotion can also be viewed as the management of the

customer buying process of pre-purchase, purchase and post purchase. FUNCTION OF

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

performs four functions:-

A. Information

B. Persuasion

C. Reminding

D. Reinforcing

PROMOTION MIX

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

selling and direct marketing tools that help achieve marketing objective

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

identified sponsor to promote product.

2. PUBLIC RELATION: - It refers to programs designed to promote or protect a company

image and products. Publicity is any unpaid form of communication through media about an

organization, its policies and products.

3. PERSONAL SELLING: - personal selling is personal communication with customers to

persuade them to buy products. It permits interaction and relationship building. Sales persons

provide feedback about the market, competitors and customers.

4. DIRECT MARKETING: - It is persuasion by manufacturer to specific customers. The tools

of direct marketing are:

1. Face to face selling.

2. Mail

3. Catalogue marketing

4. Telephone

5. E-mail

SALES PROMOTIONS: -

Sales promotion has been increasing in popularity as a tool. Marketers are using it aggressively.

Sales promotion refers to short term incentives to stimulate demand. It is used to create a

stronger and quicker purchase response. It can be directed at consumers, middleman and sales

personnel. It supplements advertising and facilitates personal selling.

According to Professor William J. Stanton:-

“Sales promotion refers to demand -stimulating devices designed to supplement advertising and

facilitate personal selling.”

According to Professor Philip kotler:-

“Sales promotion consists of diverse collection of incentives tools, mostly short term, designed

to stimulate quicker and or greater purchase of particular product /services by consumer or

trade.”

Sales promotion is one of the four aspects of promotional mix. (The other three parts of the

promotional mix are advertising, personal selling, and publicity/public relations.) Media and

non-media marketing communication are employed for a pre-determined, limited time to

increase consumer demand, stimulate market demand or improve product availability. Examples

include contests, coupons, freebies, loss leaders, point of

purchase displays, premiums, prizes, product samples, and rebates

Sales promotions can be directed at either the customer, sales staff, or distribution channel

members (such as retailers). Sales promotions targeted at the consumer are called consumer sales

promotions. Sales promotions targeted at retailers and wholesale are called trade sales

promotions. Some sale promotions, particularly ones with unusual methods, are considered

gimmicks by many.

Sales promotion includes several communications activities that attempt to provide added value

or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate

immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase.

Examples of devices used in sales promotion include coupons, samples, premiums, point-of-

purchase (POP) displays, contests, rebates, and sweepstakes

NATURE OF SALES PROMOTION:

1. It is short term

2. It provides incentives

3. It aims at quicker response:

4. It is directed at target audience

OBJECTIVE OF SALES PROMOTION

1. Objective for consumer promotion:-

(a) Encourage greater purchase volume

(b) Attract new customer

(c) Introduce new products

2. Objective for trade promotion:-

(a) Carry and push new item

(b) Increase reseller’s inventories

(c) Attract new channel members

(d) Offset competitive promotion

(e) Better store display

3. Objective for sales force promotion

(a) Motivate sales force

(b) Support new product

METHOD OF SALES PROMOTION

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

consumer promotion, trade promotion, and sales force promotion

Consumer promotion method

(a) Free sample Coupons

(b) Rebates

(c) Premium

(d) Price off

(e) Display/Demonstration

Trade promotion methods

a) Free goods

b) Allowance

c) Prices-cut

d) Sales contest

e) Gift items

f) Credit facilities

g) Trade show

Sales contests

a) Trade shows and conventions

b) Gift items

c) Promotional kits Bonus and commissions

Techniques used by Heidelberg cement India ltd. For Sales and Promotion of

their Product i.e MYCEM

1. Sales and Promotional activities:

a. Mason meet

b. Counter meet

c. Contractor meet

d. Builders meet

e. Architect & Engineer meet

f. Consumer meet

g. Naka meet

2. Proactive Approach in costumer services .

3. Personnel interaction.

4. Religiously mentioning our relation with mason, contractor, consumers, engineers,

architects.

5. Individual and follow-up with sincerity and discipline.

6. Utmost commitment & effective planning of all CS (customer services) activities.

*Note: All these activities make Heidelberg a leader in its sector and which

make it poles apart from others.*

PROCESS OF CUSTOMER SERVICE

CUSTOMER SERVICE

PRE-SALE POST-SALE

a. Canopy

b. Advertisement

c. Press-Release

d. Consumer Awareness Activity

e. Paper Tusertions

a. After sale servicesb. Quality Controlc. Feedbackd. Consumer Awareness

Activitye. Customer Resource

managementI. Date of birth

II. Date of Anniversary

III. EmailIV. NameV. Profession

VI. AddressVII. Area

VIII. Telephone no.IX. Mobile no.

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

The descriptive nature of the research necessitated collection of primary data from retailers of

cement through market survey. Both the methods, personal interview technique and telephonic

interview technique were used with the measure emphasis on personal interview method.

Interviews were conducted through the “structure questionnaire”.

The research methodology is the way systematically solve the systematically solve the research

problems. The main objective of the product was to know the market condition of Mycem

(Heidelberg) Cement and to study the sales promotion activities undertaken by various cement

companies. For this, right at the beginning the research plan was prepared. This includes all the

detail of how to go about research work of Mycem Cement.

RESEARCH PLAN

The research methodology can be illustrated as follow:

1. What are the cement being used by various customer in Bhopal region and what are their

expectation’s!

2. What the market trend is of cement and brand awareness of Mycem Cement.

Sampling Technique

Random Sampling technique was used to select the retailers. Out of nearly 400 retailers of

cement, randomly 50% of population was considered as a sample size. 150 retailers were visited

to collect the information about the cement market. The project was carried out for a period of 45

days. After collecting the detailed information from the market, analysis of the data was made.

The market research has reveled many facts and figures about cement market.

DATA COLLECTION

The descriptive nature of research necessitates collection of primary data from retailers through

market survey, personal interview technique was used and interviews were conducted through

structured questionnaire the questions were asked in prearranged manner. The market research

was conducted over a period of 60 days. Data was tabulated, analyzed and suggestion and

recommendation were given

Sources of Data

A. Primary data

I. Retailer’s survey

II. Dealer’s survey

Primary data are those, which are collected by the research himself for first time & they are

original in character. We collected primary data during the course of sample surveys either

through observation or through direct communication with respondents in one form or another or

though questionnaire. For this research primary data were collected through questionnaire. This

method of data collection is quite popular in case of, big enquiries. A questionnaire consists of a

number of questions printed or typed in a definite order on a form or set of forms . Respondent

have to answer the question on their own.

B. Secondary data

I. Retailer’s Reports

II. Relevant Book & journals

Secondary data are those which have already been used by other persons for his/their purpose

and are published. They are usually in the shape of finished products. Collection of secondary

data has the advantage of being less expensive and less time consuming. The sources of

secondary data used for this research were old reports and journals of the company and through

website (i.e. www.heidelbergcement.com).

RESEARCH INSTRUMENTATS

The Research instrument chosen for conducting the survey was structured questionnaire was

prepared as show as in the annexure. The questionnaire includes open ended as well as close

ended question, few open ended question were included to obtain the perception of the retailers.

The questionnaire designed and a pilot survey was made with the questionnaire and then changes

were made accordingly with the questionnaire.

SAMPLE PLAN

A sampling technique was chosen for the study was Random Sampling Technique. This is the

most common method of selecting the sample. This is because the retailers are localized in

different part of the marker a group of retailers are chosen are random from large group. It gives

all retailers in a group and equal chance of being selected for the purpose of the survey.

SAMPLE SIZE

Out of nearly 200 retailers in cement market of Bhopal and its region around randomly 50% of

total population was considered as the sample size

CONTACT METHOD

Both personal and telephonic interview methods were used for conducting the market survey.

Personal interview had the benefit one to one communication between the researcher and the

respondent. If the respondent is having any doubt or queries in their mind, they can get heir

doubts clarified from the researcher on the spot and so superior of data was collected from the

survey was collected from the survey. Tele – interview was conducted with the structured

questionnaire. Tele-interview was less costly and less time consuming but the data could not be

collected in detail from the respondents. Also any doubt or queries of respondent could not be

clarified.

ANALYSIS AND INFORMATION Detailed information was collected for the project marker

survey for retail marketing and sales promotion activities of Heidelberg Cement for the area of

Bhopal market. The information was collected by visiting the retailers of cement present in

bhopal market. The interview of retailer was taken in a friendly atmosphere so as to encourage

them to give right information, without any hesitation. Because of some inherent limitation of

telephonic interview, the method of personal interview was mostly used.

ANALYSIS

The analysis of the collection information was made in scientific manner. Different manner rank

was given to each alternative of particular questions, in the questionnaire. A particular rank was

given in the following manner,

Rank- 1 for the most favorable alternative

Rank- 2 for the moderately favorable alternative

Rank- 3 for unfavorable alternative

Rank- 4 for most unfavorable alternative

Rank- 5 Unfavorable

To come at the conclusion, total of each alternative of all the sample size retailers was made.

Thus the “sum of an alternative” having least score considered to be most favorable. In this

manner, result is prepared for various important parameters of the survey. With the help of

results so obtained, the findings are recorded in the form of graphs. The market of cement

Changes as the area changes. The demand for particular cement for particular cement is much

less. This is because of the crazier Trend of particular market. Thus the demand for the cement is

not that price sensitive. Price is not the criterion for selection of rejection of particular brand is

adapted on the type of application of cement and the brand name in market. Thus the awareness

among the customers about the particular cement plays a vital role. The major types of customers

are the builders and masons. The individual customers are there, but their demand is not more.

The customers are ready to give slightly high price, but he wants quality cement, thus he is

quality conscious. The customer perceives quality of cement as good quality because of effective

marketing. So effective marketing is necessary.

The retailer in the marker plays an important role in the sale of the cement. They have some

expectation from the cement companies; they expected credit facility, good sales promotion

schemes, and timely delivery of cement, etc among the plastic bag and paper bag of cement,

Customer prefer bag. This is because the paper bag prevents it from moisture and quantity

remains intact. In brief cement market is sensitive to marketing. The better & more the marketing

the more is possibility of sales. The observations and findings of the market survey about market

share and sales promotion activities are given at the next stage, in the report.

SWOT –Analysis

SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the

Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a

business venture. It involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favorable and unfavorable to achieve that

objective. The technique is credited to Albert Humphrey, who led a convention at Stanford

University in the 1960s and 1970s using data from Fortune 500 companies.

Setting the objective should be done after the SWOT analysis has been performed. This would

allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business, or project team that give it an advantage

over others

Weaknesses (or Limitations): are characteristics that place the team at a disadvantage

relative to others

Opportunities: external chances to improve performance (e.g. make greater profits) in

the environment

Threats: external elements in the environment that could cause trouble for the

business or project

Identification of SWOT’s is essential because subsequent steps in the process of planning for

achievement of the selected objective may be derived from the SWOT’s.

First, the decision makers have to determine whether the objective is attainable, given the

SWOT’s. If the objective is NOT attainable a different objective must be selected and the

process repeated.

The SWOT analysis is often used in academia to highlight and identify strengths,

weaknesses, opportunities and threats. It is particularly helpful in identifying areas for

development

Why use it?

To develop a plan or find a solution that takes into consideration many different internal and

external factors, and maximizes the potential of the strengths and opportunities while minimizing

the impact of the weaknesses and threats.

When to use it?

While developing a strategic plan or planning a solution to a problem, after you have analyzed

the external environment (for example, the culture, economy, competition, technical ability,

sources of funding, demographics, etc.). SWOTs can be performed by managers, designers or by

the entire project team. Group techniques are particularly effective in providing structure,

objectivity, clarity and tend to focus discussions about strategy that might otherwise tend to

wander.

How to use it:

1. Internal Analysis: Examine the capabilities of your organization. Carefully examine all your

strengths and weaknesses. Draw ideas from projects that you have both successfully and

unsuccessfully completed.

2. External Analysis: Look at the main points in the environmental analysis, and identify those

points that pose opportunities for your organization, and those that pose threats or obstacles to

performance. Carefully examine the market in which you intend to launch the product and

analyze what the status of the competition.

3. Make a worksheet by creating four quadrants: one each for strengths, weaknesses,

opportunities, and threats. The next step is to list specific items related to the problem at hand,

under the appropriate heading in the worksheet. It is best to limit the list to 10 or fewer points per

heading and to avoid over-generalizations (Johnson et al., 1989). If more items are thought of,

try to priorities them so that you list only the 10 top items for each category.

After completing your SWOT analysis chart, ask yourself these questions:

1. How can I use my strengths to enable me to take advantage of the opportunities I have

Identified ?

2. How can I use these strengths to overcome the threats identified?

3. What do I need to do to overcome the identified weaknesses in order to take advantage of the

opportunities?

4. How will I minimize my weaknesses to overcome the identified threats?

The potential drawbacks of SWOT

SWOTs usually reflect a person's existing position and viewpoint, which can be misused to

justify a previously decided course of action rather than used as a means to open up new

possibilities. It is important to note that sometimes threats can also be viewed as opportunities,

depending on the people or groups involved.

“An optimist is one who sees an opportunity in every difficulty. A pessimist is one who sees

difficulty in every opportunity.”

SWOT-analysis is done to understand the external and internal environment of the organization.

SWOT, which is acronym for strength, weakness, opportunity and threats, is also known by TOWS-

analysis. Though such an analysis, is strength and weakness exist within an organization can be

matched with the opportunity and threats operating in environment, so that an effective strategy can

be formulated. An effective organizational strategy, therefore, is one that capitalizes on the

opportunity through the use of strength and neutralizes the threats by minimizing the impact of

weakness. Below is the SWOT- analysis of Heidelberg India Ltd.

Strength

People ask for bleakness in cement and Mycem has this.

Cement grade is good and people are satisfied.

Customer choice.

World 3rd largest cement market

Great Customer Service.

It has a good brand image.

Better Technology.

Consumer Focused.

Strong network

Weakness

Price and margins is not match with dealers and retailers expectation respectively.

Guaranty given by company is from the date of manufacturing which is not acceptable

for the dealers and retailers

Name change

Opportunity

Regain the same Market.

Increased in devoted customers..

Growth opportunity nation wide.

Institutional market like corporate and government offices, school society complexes

are growing in large scale, which will increase the requirement

Threats

Cheep priced brand are grabbing rapidly a large chunk of lower income customer base.

Increase Competition

. Dealers expect more margin and gift to sell of the mycem cement

QUESTIONNAIRE FOR RETAILERS

Name of the firm:………………………………………………….

Name of the Contact person:……………………………………….

Contact address:…………………………………………………….

Contact no:………………………………………………………….

1. Which brands are you dealing in (specify the average sales per month)

Brand`

Mycem

ACC

Jaypee

Ultratech

Birla gold

Lafarge

Prism

Corromandel

2. Which brand do you prefer most and why?

MYCEM

ACC

JAYPEE

UTLRATECH

PRISM

CORROMANDEL

LAFARGE

3. Which factor is important for preference for sale?

Profit Margin Price Services Supply

Visit of Company

Advertisement Personnel Any other

4. Specify frequency of visit of company’s personnel per month and visitors

behaviors?

5. Which brand is the most preferred by consumers in your locality?

MYCEM

ACC

UTLRATECH

JAYPEE

ANY OTHER

6. Rank sales promotion activities according to their effectiveness?

Mason meet

BRAND FREQUENCY

MYCEM

ACC

JAYPEE

ULTRATECH

BIRLAGOLD

LAFARGE

ANYOTHER

Naka meet

Gifts

Incentives

Others

7. Which factor does the consumers feel the most important while purchasing

cement?

8. Which company’s market policy is the best as per your view?

COMPANY MARK

MYCEM

ACC

ULTRATECH

JAYPEE

OTHER

9. Rank the companies on the basis of fastest response to customer complaints?

COMPANY RANK

MYCEM

ACC

ULTRATECH

OTHER

10. Which type of cement would you personally prefer to sell?

(a) Cheap

(b) Premium brand

(c) Not sure

11. Do you think the company can increase the margin of retailers?

12. Would you like to take the dealership of any other company (specify that company

name)?

1. YES

2. NO

3. NOT SURE

RESULT OF QUESTIONNAIRE

Name of the firm:………………………………………………….

Name of the Contact person:……………………………………….

Contact address:…………………………………………………….

Contact no:………………………………………………………….

1) Which brands are you dealing in (specify the average sales per month)

Brand`

Mycem

ACC

Jaypee

Ultratech

Birla gold

Lafarge

Prism

Corromandel

2) Which brand do you prefer most and why?

MYCEM 1st

ACC 2nd

JAYPEE 4th

UTLRATECH 3rd

PRISM 6th

CORROMANDEL 5th

LAFARGE 7th

3) Which factor is important for preference for sale?

Profit Margin Price Services Supply

AdvertisementVisit of Company

Personnel Any other

4) Specify frequency of visit of company’s personnel per month and visitors behaviors?

5) Which brand is the most preferred by consumers in your locality?

MYCEM 1st

ACC 2nd

UTLRATECH 3rd

JAYPEE 4th

ANY OTHER 5th

BRAND FREQUENCYMYCEM 5 timesACC 4 ”JAYPEE 3 ”ULTRATECH 4 ”BIRLAGOLD 1 ”LAFARGE 3 ”ANYOTHER 2 ”

6) Rank sales promotion activities according to their effectiveness?

Mason meet 2nd

Naka meet 4th

Gifts 3rd

Incentives 1st

Others 5th

7) Which factor does the consumers feel the most important while purchasing cement?

8) Which company’s market policy is the best as per your view?

COMPANY MARK

MYCEM 1st

ACC 2nd

ULTRATECH 3rd

JAYPEE 4th

OTHER 5th

9) Rank the companies on the basis of fastest response to customer complaints?

COMPANY RANK

MYCEM 1st

ACC 2nd

ULTRATECH 3rd

OTHER 4th

10) Which type of cement would you personally prefer to sell?A. CheapB. Premium brandC. Not sure

11) Do you think the company can increase the margin of retailers?

12) Would you like to take the dealership of any other company (specify that company name)?

1. YES – 35%

2. NO - 65 %

3. NOT SURE - 5 %

FOR YES -

FINDING AND CONCLUSION

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

Bhopal. The market research has revealed many facts and figures about the cement scenario in

the market prevailing. In the market, Mycem (Heidelberg cement) cement is well known brand

of cement. This is the result of the good quality of the Mycem cement along with their effective

marketing efforts, which covers the whole market, customers of Mycem cement are highly

satisfied with the use of it, as they do not face any problem after using it. There are seven major

players in the market but the major completion is between the two brands of cement. But because

of good marketing efforts, Mycem cement is able to grasp some share of various other brands

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

the goodwill for the brand. The distribution channel of cement industry must be well designed

and made effective this ensures timely availability of cement to customers.

Good marketing creates good image i.e. brand building.

___________________________________________

SUGGESTIONS

o Special Bonus Sections like Brand Positioning Workshop, Integrated Marketing Communications.

o Meeting for dealers & retailers, Architect, Builders, Masons and consumers meets should be organized at regular intervals.

o Optimum numbers of dealers and retailers should be appointed for each market so as to provide ample space for sale as well as margins.

o Various kinds of POP items such as t-shirts, caps, key chains, empty bag display, cut outs should be distributed in a planned way at regular intervals. You may also want to send your customer and clients some exciting corporate gifts that they will never forget.

o The advertising elements (Dealer boards, Pop’s) should be given to dealers according

to their categories divided by Heidelberg cement.

o Company should provide timely service to the dealers.

o A Price fluctuation creates problems for retailers as the cannot keep the commitments of price to customers

A strong brand will allow you to:

o Influence buying decisions and shape perceptions held by your customers and

prospects

o Command a premium price

o Build customer loyalty through emotional involvement

o Make purchasing decisions easier for your prospects

o Maximize your profits.

LIMITATIONS

Data collected is limited to the BHOPAL region.

Study is limited to the leading companies of CEMENT manufacture .

Information given by RETAILER & CONSUMER or general public might

be influenced by personal bias

Bibliography

www.HeidelbergCement.com

www.mycemco.com

www.en.wikipedia.org

www.google.com