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    CHAPTER 1

    INTRODUCTION

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    INTRODUCTION

    1.1 BRIEF INTRODUCTION

    The ancient Romans developed cement and concrete similar to the kinds used

    today. They manufactured cement by mixing slaked lime (lime with water) with a volcanic

    ash called Pozzuolana. People lost the art of making cement after the fall of Roman Empire

    in AD 400s. In 1759, John Sneaton , a British Engineer found how to make hydraulic

    cements by using blue lime with clay content and Pozzuolana from Italy. I. C. Johnson

    produced Portland cement in 1845. Portland cement contains about 60% lime, silica and

    5% alumina. Iron oxide and Gypsum make up the rest of the materials. In the plant the

    materials go through a chemical process that consists of three basic steps namely crushing,

    grinding, burning and finish grinding.

    Cement was developed by Joseph Asp Din of England. He manufactured

    commercially the improved quality of Portland cement in a country market kiln in the year

    1848. Cement produced on 21stOctober 1854 was patented as Portland cement.

    Cement Industry in India has made significant contribution to the countrys

    economic development. This is obvious because most of the development activities of the

    country involve construction works using cement. South Indian Industry Limited installed

    the first cement industry in Tamil Nadu in 1904 and then onwards number of factories

    manufacturing cement was started. In our country there are 51 companies and 99 plants

    having installed capacity of manufacturing 700million KN of cement and with this

    installed capacity, the Indian cement Industry is the largest in the world after China,

    Russia, Japan and USA

    Industrial era in Kerala and its beginning from the time of Sir C.P RamaswamyIyer, Diwan

    of Travancore State during the pre-independence period. He knew that the cement is one of

    the basis industrial needs for the speedy industrialization of the state and felt it is very

    essential for the state to have atleast a cement factory. But lime stone deposits of the

    required quality were not available to start a cement plant factory in travancore. However,

    lime shells available in the backwaters offered in alternative of course a better source for

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    calcium raw material. Sir C.P RamaswamyIyer induced the promoters of TCL for pulling

    up cement plant based on the lime shell reserve. Thus the first cement plant starts its

    operation on 7.12.1946 in Kerala.

    1.2OBJECTIVE OF THE STUDY

    To find out the method of marketing strategies of the company. To find out the method used for transporting goods and services form producer to

    consumer.

    To study about the market share of the Travancore cements products. To study about the main competitor. To get valuable suggestions from the dealers aptitude towards the products of

    T.C.L.

    To find out the role of channels of distribution both in case of organization andcustomers.

    To study the functions of dealers in marketing process.

    1.3 SCOPE OF THE STUDY

    The study conducted for the marketing and distribution practices of TCL, Kottayam.

    Through this project the researcher attempt to find out the distribution channels and

    marketing efforts of TCL. The study covers factors involved in the channels of distribution

    benefits derived by the company through the channels of distribution, and methods used

    for transporting goods and services.

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    1.4 METHODOLOGY OF THE STUDY

    Research comprises defining and redefining problems, formulating hypothesis or

    suggesting solution, collecting, organizing and evaluating data at careful testing the

    conclusion determine whether they fit the formulated hypothesis.

    METHOD OF DATA COLLECTION

    1.4.1 Primary Data:

    Primary data have been collected through interview and discussion with the

    concerned departmental heads of the company.

    1.4.2 Secondary Data:Secondary data are those data which are gathered for some other purposes and are

    already available in the firms internal records and publications. They are mainly collected

    from old report like annual report of the company, company brochure, company

    documents, company journals and other manuals maintained by the company.

    1.5 LIMITATIONS OF THE STUDY

    The Travancore cements Limited consists of five major functional departments and

    fifteen sub departments. Covering the entire areas of the department is a very difficult task

    as there were limitations in time. Some of the data were treated confidential and hence it

    was difficult to get the same. In addition most of the datas were collected through

    interviews and so the information is subjected to the bias of the individuals. Time is main

    constraint, because this project work is mainly meant for academic purpose and hence it

    has to be completed within in the short period.

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    CHAPTER 2

    INDUSTRY PROFILE

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    2.1 INDUSTRY PROFILE

    CEMENT INDUSTRY IN INDIACement industry in India has made significant contribution to countrys economic

    development. This is because most of the development activities involve construction

    works, which makes use of cement. It is an indigenous industry with local raw materials.

    In 1904, the first cement industry was started. It was in Tamil Nadu. Since then, a

    number of factories manufacturing cement were started.

    In our country there are 51 companies and 99 plants having installed capacity of

    manufacturing 700 million KN of cement. With this capacity, the Indian cement industry is

    the fifth largest in the world after China, Russia, Japan and USA. Indian cement industry

    accounts for about 4% of the world production.

    Some of the important highlights of the Indian Cement Industry can be stated as follows:

    1. The average capacity per kiln works out to be less than 17000 KN / day for the dryprocess systems and 4000 KN / day for the wet process system.

    2. The energy consumption is substantially higher than that in the plants abroad.3. The protection activities require improvement and updating.4. The new technologies i.e. high efficiency separators, roll processors, vertical roller

    etc. have been introduced.

    5. The per capita consumption in India is about 5 tonne, which is almost 1/4th of theworld average.

    6. The requirements such as better packaging materials, bulk containers and ready mixconcrete technology deserves attention.

    The origins of Indian cement industry can be traced back to 1914 when the first unit was

    set-up at Porbandar with a capacity of 1000 tonnes. Today cement industry comprises of

    125 large cement plants and more than 300 mini cement plants. The Cement Corporation

    of India, which is a Central Public Sector Undertaking, has 10 units. There are 10 large

    cement plants owned by various State Governments. Cement industry in India has also

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    made tremendous strides in technological up gradation and assimilation of latest

    technology. Presently, 93 per cent of the total capacity in the industry is based on modern

    and environment-friendly dry process technology. The induction of advanced technology

    has helped the industry immensely to conserve energy and fuel and to save materials

    substantially. Indian cement industry has also acquired technical capability to produce

    different types of cement like Ordinary Portland Cement (OPC), Portland Pozzolana

    Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid

    Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement etc.

    Major Domestic Players

    Associated Cement Companies Ltd (ACCL):

    Associated Cement Companies Ltd manufactures ordinary Portland cement,

    composite cement and special cement and has begun offering its marketing expertise and

    distribution facilities to other producers in cement and related areas. It has fifteen

    manufacturing plants located throughout the country.

    Birla Corp:

    Birla Corp's product portfolio includes acetylene gas, auto trim parts, casting, cement, jute

    goods, yarn, calcium carbide etc. The cement division of the company has seven plants,

    with an installed capacity of 57.8 lakh tonnes. The company has two plants in Madhya

    Pradesh, Rajasthan and West Bengal and one in Uttar Pradesh and holds a market share of

    2.8 per cent. It manufactures Ordinary portland cement (OPC), portland pozzolana cement,

    fly ash-based PPC, Low-alkali portland cement, portland slag Cement, low heat cement

    and sulphate resistant cement. Large quantities of its cement are exported to Nepal and

    Bangladesh.

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    Century Textiles and Industries Ltd (CTIL):

    The product portfolio of CTIL includes textiles, rayon, cement, pulp & paper, shipping,

    property & landdevelopment, builders and floriculture. Cement is the largest division of

    CTILand contributes to over 40 per cent of the company's revenues. The companyhas an

    installed capacity of 7.8 million tonnes. CTIL has four plants that manufacture cement, one

    in Chhattisgarh, two in Madhya Pradesh and one in Maharashtra.

    Grasim Cement:

    Grasim's product profile includes viscose staple fibre (VSF), grey cement, white cement,

    sponge iron, chemicals and textiles. With the acquisition of UltraTech, L&T's cement

    division in early 2004, Grasim has now become the world's seventh largest cement

    producer with a combined capacity of 45.7 million tonnes. Grasim (with UltraTech) held a

    market share of around 16.7 per cent in 2008-09. It has plants in Madhya Pradesh,

    Chhattisgarh, Punjab, Rajasthan, Tamil Nadu and Gujarat among others.

    Ambuja Cements Ltd (GACL):

    Gujarat Ambuja Cements Ltd was set up in 1986. In the last decade the company has

    grown tenfold. The total cement capacity of the company is 18.5 million tonnes. The

    company has a market share of around 10 per cent, with a strong foothold in the northern

    and western markets. Gujarat Ambuja is India's largest cement exporter and one of the

    most cost efficient firms.

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    India Cements:

    India Cements is the largest cement producer in southern India with three plants in Tamil

    Nadu and four in Andhra Pradesh. The company has a market share of 5.4 per cent.

    Jaiprakash Associates Limited:

    Jaiprakash Industries, now known as Jaiprakash Associates Limited (JAL) is part of the

    Jaypee Group with businesses in civil engineering, hospitality, cement, hydropower,

    design consultancy and IT.

    Madras Cements:

    Madras Cements Ltd is one of the oldest cement companies in the southern region and is a

    part of the Ramco group. The company is engaged in cement, clinker, dolomite, dry mortar

    mix, limestone; ready mix cements (RMC) and units generated from windmills. The

    company has three plants in Tamil Nadu, one in Andhra Pradesh and a mini cement plant

    in Karnataka. It has a total capacity of 10 million tonnes annually and holds a market share

    of 4 per cent.

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    Mergers & Acquisitions

    The globalisation of Indian cement industry has also encouraged many foreign cement

    manufacturers to engage themselves in agreements and deals with their Indian counter

    parts to enjoy a share of pie in the rapidly growing Indian cement market. These

    engagements have been primarily through various mergers and acquisitions deals. Some of

    the major M&A deals between domestic and foreign cement manufacturers in recent years

    have been

    Lafarge India:

    It is a subsidiary of the Lafarge Cement Company of France. It was established in 1999 in

    India with the acquisition of the Tisco and the Raymond cement plants. Lafarge currently

    has four cement plants in India: two integrated plants in the state of Chhattisgarh, one

    grinding station each in Jharkhand & West Bengal. Total cement production capacity of

    Lafarge in the Indian market currently stands at around 6.5 million tons. The company

    produces different types cements like Portland Slag Cement, Portland Pozzolana Cement.

    Heidelberg Cement - Indorama Cement Ltd:

    In March 2006, Heidelberg Cement Company entered into a 50:50 joint venture with the

    Indorama Cement Ltd. Heidelberg Cement Company is the leading German cement

    manufacturing company, which was setup in 1873. It has its operations in various countries

    across the Globe. The Company has two manufacturing units in India - a grinding plant in

    Mumbai and a cement terminal near Mumbai harbour.

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    Holcim Cement - Gujarat Ambuja Cements (GACL):

    Holcim Cement entered into a strategic partnership with GACL, in 2006, to acquire 14.8%

    in GACL. Currently Holcim holds around 56% stake in the company. Holcim Cement

    Company is among the leading cement manufacturing and supplying companies in the

    world. It is one of the major employers in the world, having a work force of 90,000.The

    Holcim Cement Company has units in excess of 70 countries all over the world.

    Italcementi cement - Zuari Cement Limited:

    In 2006, Italcementi Cement Company with the help of the Ciments Franais, a subsidiary

    for its globalactivities, entered into an agreement to acquire shareholding of Zuari Cement

    Limited, through a 50:50 joint venture. Italcementi Cement is among the

    largest cement manufacturing companies in the world. The company entered

    the Indian market in January 2001 when it acquired 50% of Zuari Cement

    plant in Andhra Pradesh in southern India.

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    2.2ISSUES CONCERNING CEMENT INDUSTRY

    High Transportation Cost is affecting the competitiveness of the cement industry.Freight accounts for 17% of the production cost. Road is the preferred mode for

    transportation for distances less than 250km. However, industry is heavily

    dependent on roads for longer distances too as the railway infrastructure is not

    adequate.

    Cement industry is highly capital intensive industry and nearly 55-60% of theinputs are controlled by the government.

    There is regional imbalance in the distribution of cement industry. Limestoneavailability in pockets has led to uneven capacity additions.

    Coal availability and quality is also affecting the production. Shortage of raw materials.

    2.3OUTLOOK

    Outlook for the cement industry looks quite bright. Given the sustained growth in

    the real estate sector, the government's emphasis on infrastructure and increased

    global demand, it looks as if the juggernaut of cement industry would continue to

    roll on the path of growth.

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    CHAPTER 3

    COMPANY PROFILE

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    COMPANY PROFILE

    The Travancore Cements Limited was incorporated in the year 1946. The year of

    commencement of grey cement is 1949. The licensed capacity of the plant is 50,800

    Tonnes per annum. The master mind behind the setting up of this factory was Late Sir. C.

    P. RamaswamiIyer, who was the then Divan of Travancore, and he realized the vital role of

    cement in the industrial development of Kerala. The company was made with M/s F. L.

    Smidth& Co, Denmark. During 1959, the company diversified into the production of white

    Portland cement. The capacity for the production of white cement is 30,000 Tonnes per

    annum. Till 1974 the company was manufacturing both white and grey cement in the same

    plant, disturbing the production of two over certain period in a year. Since 1974, the

    company started manufacturing white cement alone, as the demand for white cement went

    up.

    During the last 58 years of its existence, TCL has diversified its activities into

    related areas. Besides super Shelcem brand cement paint, the company has added to its

    product range namely the Sheltex Acrylic Emulsion paint and Shell prime cement primer.

    The Travancore Cements Limited is the only manufacturer, perhaps in the whole

    world, producing white cement from a raw material other than conventional lime stone.

    The main raw material of TCL is the lime shell, which is dredged out of Vembanad Lake,

    one of the back waters in Kerala. The company has successfully executed a diversification

    project for manufacturing grey cement during the year 2000, with a capacity of 66,000 NIT

    per annum

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    3.1HISTORY

    The Travancore Cements Limited was incorporated in the year 1946. The year of

    commencement of business was also 1946. The company started manufacture of Grey

    Cement in the year 1949. The licensed capacity of the plant was 50,800 tons of Cement per

    annum.

    The mastermind behind setting up of this factory was that of late Sir C.P.

    RamaswamyIyer, the then Diwan of Travancore, who had realized the vital role of cement

    in the industrial development of Kerala. The company was promoted by the state of

    Travancore, in association with Tamil Nadu. Later the Government of Kerala acquired the

    company with a share of 51.33% and about 33.33% share with the Super Pharma Private

    Ltd., which belongs to the company group. The share of the company has been listed in the

    stock exchange of Cochin & Chennai.

    The company was promoted by M/s Essel Ltd., Mumbai and Technology tie up was

    made with M/s F. L. Smidth& Co. Denmark.

    The Travancore cements Ltd. Is one of the first project making cement companies

    in Kerala.TCL is the only public sector (Kerala Government undertaking), which

    manufactures and market white cement and cement paints.

    During 1959, the company diversified into the production of white Portland

    cement. The installed capacity for the production of White Cement is 30000 tonnes per

    annum. Till 1974, the Company was manufacturing both White Cement and Grey Cement

    in the same plant, distributing the production of the two, over certain periods in a year. In

    1974, the company switched over to the exclusive manufacturing of White Cement, as the

    demand for White Cement went up and the government of Kerala took over the

    management of the company which was firstly under private management. At that time it

    had monopoly over the marketing.

    During the last 54 years of its existence, TCL has diversified its activities to related

    areas by adding ''Vembanad' brand ordinary Portland cement, 'Super Shelcem' brand

    Cement Paint and 'Shelprime' dry Cement Primer besides 'Sheltex' Acrylic Emulsion Paint

    for interiors and exteriors to its products range.

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    The Travancore Cements Limited is one of the only two companies in the world

    manufacturing White Cement from a raw material other than conventional limestone. The

    other company is in South California, U.S.A. The main raw material of TCL is lime shell,

    which is dredged out of Vembanad Lake, one of the backwaters of Kerala; hence the brand

    name is Vembanad White Portland Cement. As it does not contain any magnesium oxide,

    the White Cement made out of lime shell is highly durable and superior in quality.

    The Travancore Cements Limited employed the wet process technology on the

    fully imported machinery of F. L. Smidth& Co. Denmark. Wet process facilitates total

    homogenization of raw materials and thus ensures high consistency in quality. As a result

    of this, Vembanad White Cement is having higher whiteness, durability, strength and

    quality.

    3.2LOCATION

    The cement plant of TCL is situated on the bank of Kodoor River and on the side of

    the State Highway, M.C. road, and 4km away from the town of Kottayam in Kerala. The

    typical Location of the plant makes it accessible by road as well as by water.

    3.3MILESTONES

    Started the production of Vembanad Grey cement from lime shell in August1949.

    Started production Vembanad White Cement from lime shell in 1959 Grey Cement production stopped in 1976. Diversified into Cement paint- Super Shelcem production in 1977. Celebrated Silver Jubilee in 1982. Became a Government Company in April 1989. Celebrated Golden Jubilee in 1997. Launched Dry Cement Primer 'Shell prime' in January 2000. Diversified into Acrylic Emulsion Paint Sheltex for exteriors & interiors in

    April 2000.

    Diversified into Grey cement production from brought out clinker in 2000.

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    Became an ISO 9002 company in December 2000. Company started an HRD center in 2002 Launched Vembanad Wall Care Putty in 2008

    3.4OBJECTIVE OF THE COMPANY

    The main objective of the company is engaged in the production of Vembanad White

    Portland Cement. It is the first and foremost product of TCL, which is the best white

    cement available in the country in its quality. Now the company is also engaged in theproduction of cement paint known as Super Shelcem, which is available in a wide range

    of colors of 24 shades.

    3.5COMPETITORS

    Super snowcem Dukecem. Surfacem. Acc white cement. Birla white cement. J.K white.

    Promoters Of The Organization

    The company was run under the private management until 1974. Subsequently the

    government of Kerala took over the management. Now the government is holding 50.13%

    of the equity share capital. The Pyramid group of company is holding another 25% of

    shares and the remaining shares are held by general public.

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    3.6VISION AND MISSION

    Vision Statement

    To be a leader in the Indian Cement industry and providing customer delight andenhancing shareholders value.

    Mission Statement

    Having a unique role in the Heavy Industry sector of the country, TCL is

    committed for catering the society towards the specific need expected by producing quality

    product at a customer friendly price while keeping sustained growth of the organization

    and total growth of the society.

    To enhance the companys shareholder value. Employee satisfaction. Revenue growth. Strength supply chain management. High volume, high market share, cost effectiveness in all segments. High quality technology and superior products. Consistent production through harmonious industrial relations. Competitive advantage. To widen the distribution network and strengthen the field service

    organization.

    3.7PRODUCT PROFILE

    The Travancore Cements Ltd is producing four types of products and they are: White

    Portland cement under the brand name VEMBANAD , cement paints with a range of 40

    shades under the brand name SUPER SHELCEM, cement paint primer under the

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    brand name "Shel Prime", Emulsion paint under the brand name "SHELTEX" and

    wall putty ender the brand name VEMBANAD WALL PUTTY

    1. Vembanad White Portland cements

    . TCL manufactures the best white cement in the country and its quality is at

    par with that of the best available in the world market. This can be attributed to the fact

    that Vembanad white cement is manufactured using lime shells and it accounts for its

    superior whiteness as compared to other brands. Today the company enjoys the highest

    8042 e-1976specification. White cement is quick drying; possess high strength and

    superior aesthetic values. It is used for floor finish, plaster and ornamental works.

    2.SuperShelcem Cement Paint

    The Travancore Cements Ltd started manufacturing cement paints under the brand

    name Shelcem during 1977. It was rebranded as Super Shelcem in 1986. Super

    Shelcem is a unique technology formulation with the most durable Vembanad white

    cement. It is an intimate mixture of Vembanad white cement, water proofing fungicides.

    Cement paint is water based paint widely used for painting buildings, both components an

    oxide extender, non fading oxide pigments, hardening agents and exterior interior.

    Shelcem, unlike other cement paints, does not require water curing after first and second

    coat. Only initial wetting of the surface is necessary. This makes Super Shelcem ideal for

    exteriors of multi storied buildings and sky scrapers. Super Shelcem carries ISI marks and

    is available in a wide range of colours of total 40 different shades in the market.

    3.Shell Prime Dry Cement Primer

    In order to mark the new millennium, the Travancore Cements Limited

    launched a new product, cement paint primer under the brand name "Shel Prime". It is

    a dry cement primer available in 1kg. Packets. The range is Rs.25/Kg.

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    4. Sheltex Emulsion Paint

    The company launched another new product "Sheltex" cement paint. It was

    launched in April 2000. The basic raw materials include acrylic based pigments and

    bonding chemicals (Titanium compounds). It is used for both exterior and interior

    painting purposes. The product is available in 2 packages 11 litersand 4 liters.

    5. Vembanad Wall Putty

    Vembanad wall putty has more coverage than any other dry wall putty in the

    market. The object of the company will be to offer putty of the highest quality, giving the

    smoothest finish, highest coverage and durability. It is available in 20 kg and 5 kg

    packing.

    3.8ORGANISATION STRUCTURE

    When we look to this organization we can see it is consisting of different department and

    also each department have departmental heads. The service manager is responsible for

    dredger, civil and sanitary, water and general transport, workshop, and electrical

    departments. The production department is responsible for the department of white cement

    plan, kiln, packing house, shelcem, lab and quality control. The maintenance manager is

    responsible for marketing control, purchase and store and shelcem department. The finance

    manager is responsible for the department of accounts. Finally the secretary is responsible

    for the time office, personnel department, medical department, and office and guesthouse.

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    3.9DEPARTMENTS

    Departmentalization is a method of arranging activities to facilitate the

    accomplishment of organizational objectives. The organization process of determing how

    activities are to be grouped is called department. The departments show the horizontal

    different of an organization.

    The main departments are:

    MARKETING DEPARTMENT FINANCE DEPARTMENT PERSONNEL DEPARTMENT PURCHASE DEPARTMENT PRODUCTION DEPARTMENT

    The Board of Directors consists of five persons of which one is full time Managing

    Director. Under the Managing Director we have: Service Manager, Production Manager,

    Maintenance Manager, Financial Manager and Secretary. The service manager is

    responsible for departments of dredger, civil and sanitary, water and general transport,

    workshop and electrical. The production manager is responsible for the departments of

    white cement plant, kiln, packing house, Shelcem, lab and quality control. The

    Maintenance manager is responsible for the departments of marketing control, purchase,

    store and Shelcem. The finance manager is responsible for the departments of accounts.

    Finally the secretary is responsible for the time office, personnel department, medical

    department, and office and guest house.

    A) MARKETING DEPARTMENT

    TCL has a well established marketing department. There is an efficient sales force

    which is under the Marketing Manager. The whole system comes under the General

    Manager. TCL has got 14 sales representatives throughout Kerala.

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    B) FINANCIAL DEPARTMENT

    The finance department maintains all the accounts of the various departments in an

    organization. It is the duty of the finance department to receive money and make payments

    on behalf of the company. It also prepares the annual budget according to which the

    expenses of the company are monitored. The finance department is a vital part in an

    organization, as without finance the day to day activities of the company will not function

    in a smooth and rapid way. It is the core of the organization. The cash section and account

    section also forms part of finance department. The recording of day -to-day transactions

    routine functions like sales tax, payments and receipts of cash, Cheque etc comes under the

    purview of accounts section. The accounts section also undertakes the employees payroll

    function. The cash section deals with the disbursement of cash.

    C) PERSONNEL DEPARTMENT

    It is the department that is connected to other departments in TCL. This department

    is headed by Joint General Manager. Under him Joint Chief Manager followed by Junior

    Executive and Office Assistants. This department does the recruitment and selection of the

    personnel. Another important function of the personnel department is to look into the

    welfare of its employees. Time office comes under this department. The function of the

    time office is to maintain leave register, attendance making, over time confirmation etc.

    The above data is forwarded to the accounts department for accounting the wages of the

    employees.

    D) PURCHASE DEPARTMENT

    Purchase department helps in the purchase of raw materials and other things

    required for production. They are the people who decide from where to purchase, how to

    purchase, when to purchase and what to purchase.

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    E) PRODUCTION DEPARTMENT

    The production department is the heart and soul of the TCL. It is here that white

    cement and cement paint are produced. The uniqueness of white cement products is that

    produced from the lime shell, extracted from Vembanad Lake. This gives the cement much

    more whiteness compared to other brands. The major raw material is lime shell.

    The production department is the heart and soul of TCL. The company produces

    white Portland cement and cement paints. The production and service department controls

    and coordinates the production process. The production can be divided into three stages

    namely: The slurry preparation, Clinker making and grinding. The numbers of workers

    employed in these stages are 75 with 17 in shift basis.

    SUB-DEPARTMENTS

    a) GENERAL STORE

    General stores are the department for storing the raw materials. The materials are

    collected as per the order made by the department, which is known as purchase order.

    b) MAINTENANCE DEPARTMENT

    The company has 1 workshop under the control of the mechanical maintenance

    department. All machinery works and repairs are undertaken in the workshop.46 members

    are there in the workshop.

    c) ELECTRICAL DEPARTMENT

    This department deal with all the works connected with the electrical equipment,

    power links and other allied activities. Consumption of electricity per day is 20000 units.

    The electricity bill in a month is Rs 25 lack. If the plant is not working or functioning the

    company has to pay Rs 3 lack. This is a fixed charge set by the government. The

    company has its own substation for power supply.

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    d) QUALITY CONTROL DEPARTMENT

    Unlike other government organizations, where quality is secondary, at TCL quality is

    being given the prime position. The ISO 9002 certification is a proof for enduring the

    quality commitment of TCL. TCL has its own laboratory which continuously striving to

    maintain the quality of the products. There are three levels of testing conducted in the

    laboratory like raw material testing, process testing, and intermediate testing.

    e) TRANSPORTATION DEPARTMENT

    Free transportation facilities are given to the staff to come to the office. For the

    purpose the company has two buses of their own. It is available to workers in all shifts.If a

    person purchases one of the products from the company, free transportation facilities are

    provided for bringing the same and he will get it at the premises of his house.

    f) PACKING HOUSE

    Here cement is drawn from storage spoils and packed in the paper bags by

    automatic machines and dispatched.

    .

    g) WORKSHOP

    The company has one workshop under the control of the mechanical maintenance

    department. The maintenance and repairing of machinery spare parts, pipe line, oil line,

    vehicle etc. are undertaken in the workshop. Fitter, Automobile section, Diesel mechanic

    section, Welder, Turner, Blacksmith, Carpenter, Khalasis, Tool section are the nine

    different sections in the mechanical maintenance department.

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    h) DREDGING DEPARTMENT

    The main raw material for the production of Vembanad White Cement is lime

    shell an underwater deposit in Vembanad lake, is dredged and brought to the company by

    means of power barges. The company has two dredgers, one hydraulic dredger named

    Lokanathan of 5000 gallon capacity and one mechanical dredger, Rudger of 2000 gallions

    capacity. The dredger can cut the lime shell around 40 ft. maximum depth. The dredger

    works on two powerful engines, a dredger pamper engine and an auxiliary engine.

    i) CEMENT PAINT DEPARTMENT

    Super Shelcem is a self curing cement paint manufactured by the TCL. It is an

    intimate mixture of Vembanad White Cement. Water proofing components, an oxide

    extender, non fading oxide pigments, hardening agents and fungicides. It contains more

    White Cement than any other Cement Paint in the country. Super shelcem, unlike other

    cement paint doesnt require water curing after first and second coat.

    j) SECURITY DEPARTMENT

    The department is mainly concerned with the security and control of the

    company. There are 28 employees working in the security department on shift basis.

    k) TIME OFFICE

    Time Office comes under the personnel department. The main function of the

    office is to maintain attendance register and calculate the monthly working hours of each

    employee. The company follows punch card system for measuring attendance.

    l) MEDICAL DEPARTMENT

    This department provides medical aid to both permanent and temporary

    employees. The medical leave of the employees is recorded and sanctioned from this

    department.

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    CHAPTER 4

    RESEARCH METHODOLOGY

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    RESEARCH METHODOLOGY

    4.1 RESEARCH DESIGN:

    The research design is the conceptual structure within which the research is conducted. It is

    actually the blue print for the collection and analysis of data .The design chosen for this

    study is descriptive research design. A descriptive research involves gathering data that

    describe events and then organizes, tabulates, depicts and describes the data. It often usesvisual aids such as graphs and charts to aid the reader.

    4.2 RESEARCH APPROACH:

    As the total number of employees in the organisation is large, a census survey was

    impractical and hence the researcher opted for a sample survey.

    4.3 RESEARH INSTRUMENT:

    The researcher used a questionnaire for collecting the required information. A structured

    questionnaire was developed to collect the data from the employees. The questionnaire

    consisted a total of 20 questions which was rated on a five point scale.

    4.4 METHODOLOGY OF THE STUDY

    Research comprises defining and redefining problems, formulating hypothesis or

    suggesting solution, collecting, organizing and evaluating data at careful testing the

    conclusion determine whether they fit the formulated hypothesis.

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    METHOD OF DATA COLLECTION

    4.4.1 Primary Data:

    Primary data have been collected through interview and discussion with the

    concerned departmental heads of the company.

    4.4.2 Secondary Data:

    Secondary data are those data which are gathered for some other purposes and are

    already available in the firms internal records and publications. They are mainly collected

    from old report like annual report of the company, company brochure, company

    documents, company journals and other manuals maintained by the company

    4.5 SAMPLING PLAN:

    4.5.1 Sampling Unit:The dealers of TCL

    4.5.2 Sampling:Sampling size for the study was 65 dealers

    4.5.3 Sampling Procedure:It is the systematic way of choosing the samples from whom

    the researcher wants to collect information. There are about 400 dealers in Kerala. Out of

    those 400, 65 dealers were selected on a random manner and conducted market research

    4.6 Research Period: The study was conducted in May During this time the researcher

    went to study about the dealersattitude with the help of a questionnaire and conducted a

    face to face conversation.

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    CHAPTER5

    REVIEW OF RELATED LITERATURE

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    5.1 MARKETING

    GENERAL INTRODUCTION

    Marketing is as old as mankind. Educational Institutions trying to attract students, actors

    promoting films, politicians seeking votes, Insurance agents selling new policies are

    examples of marketing in practice. Business need to practice marketing for achieving

    growth and generating profits to survive. Marketing is the process of finding consumer

    needs and serving those needs profitably. Thus customer is the heart of marketing

    activities. Marketing people is involved in Marketing 10 types of entities: - goods,

    services, experiences, events, persons, places, properties, organizations, information and

    ideas.

    DEFINITION OF MARKETING:

    Some definitions of marketing are: -

    Marketing is the process of planning and executing the conception, pricing, promotion

    and distribution of ideas, goods and services to create exchanges that satisfy individual and

    organizational goals.

    ---American Marketing Association

    Marketing is a societalprocess by which individuals and groups obtain what they need

    and want through creating, offering and freely exchanging products of services and of

    value with others.

    ---Philip Kotler

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    CORE MARKETING CONCEPTS:-

    Needs, wants & demands:-

    Needs are basic human requirements. We need food, air, water, clothing and shelter to

    survive. People also have strong need for recreation, education and entertainment. Wants

    are needs directed towards specific objects- e.g. A South Indian needs food but wants Idlis,

    Dosas & Sambar. A North Indian needs food but wants Rotis, Sabjis etc. Demands are

    wants for specific products backed by an ability to pay.

    Market: -

    Traditionally, a market was a physical place where buyers and sellers gathered to buy and

    sell goods. Economists now describe a market as a collection of buyers and sellers who

    transact over a particular product or product class (the housing market or grain market); but

    marketers view the sellers as constituting the industry and the buyers as a constituting the

    market. The term market can also be used to cover various groupings of customers such as

    need market (the diet seeking market), product market (The shoe market), demographic

    market (The youth market), and geographic market (The Asian market) or the concept may

    also be extended to cover other markets such as money market, forward market etc.

    Depending on the focus of marketer we can classify the markets as consumer markets, e.g.

    (FMCG markets), Industrial markets i.e. business buyers buying goods in order to make or

    resell a product to others for profits, non-profit market (organizations like Churches, Non

    government Organizations involved in social causes etc.) or global (International) market.

    Target markets and Segmentation:--

    Market consists of heterogeneous buyers who might prefer or require different product and

    services. Marketer identifies and profile distinct groups of buyers requiring varying

    products and services. Market segments can be identified by examining demographic,

    psychographic and behavioural differences among buyers. The marketer then decides

    which segments present the greatest opportunity, which are its target markets. For each

    chosen target market, the firm develops a market offering.(The combination of products,

    services, information and experiences).The offering is positioned in the minds of the target

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    markets as delivering some central benefits for example, Videocon offers electronic

    appliances for price-conscious customers; and thus positioned as value for money

    products.

    Market place, Market space and Meta market:-

    Market place is physical place where buyers and sellers meet e.g. Store; Market space is

    digital as when one goes shopping on the Internet, Meta market is a cluster of

    complementary products and services that are closely related to the minds of customers but

    are spread across diverse set of Industries e.g. the automobile meta market consists of

    automobile manufacturers, new car and used car dealers, financing companies, Insurance

    companies, mechanics, spare part dealers, Service shops, auto magazines, classified autoads in newspapers, auto websites on the internet.

    Value and satisfaction:-

    Value can be defined as a ratio between what customer gets and what he gives. The

    customer gets benefits and assumes cost. The benefits include functional benefits and

    emotional benefits. The costs include monetary costs, time costs and psychic costs. The

    value is given as

    Value = Functional benefits + Emotional benefits

    Monetary cost+ Time cost+ Energy cost + Psychic cost

    Exchange and Transaction:-

    Exchange is the process of obtaining something from someone by offering something in

    return. For exchange five conditions must be satisfied

    There are at least two parties.

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    1. Each party has something that offers value to the other party.

    2. Each party is capable of communication and delivery.

    3. Each party is free to accept or reject the exchange offer.

    4. Each party believes it is appropriate to deal with the other party.

    MARKETING AS A VALUE DELIVERING PROCESS: --

    The success of the firm depends upon its ability to deliver better value to the customer than

    its competitor. Marketing can be seen as the value delivering process. The value creation

    and delivery sequence can be divided into three phases. The first phase, choosing the value

    includes segmentation, targeting and positioning i.e. dividing the heterogeneous market

    into homogeneous segments, identifying target markets and developing offerings value

    positioning i.e. position the product as delivering central benefits most sought after by

    target market. The second phase is providing the value. This involves identifying product

    features, pricing and distribution. The third phase is communicating the value by utilizing

    the sales force, sales promotion, advertising, and other communication tools to promote the

    product. Each of these phases adds cost and provides benefits. Value delivery process

    begins before there is a product and continues while it is being developed and after it

    becomes available.

    Marketing Mix

    Marketing mix, simply stated, is the process of designing and integrating various elements

    of marketing in such a way to ensure the achievement of enterprise objectives. The

    elements of marketing mix have been classified under four heads- product, price, place,

    promotion. That is why marketing mix is said to be a combination of 4 Ps.

    Marketing mix involves decisions regarding products to be made available, the price to becharged for the same, the incentives to be provided to the consumers in the markets where

    products would be made available for sale. These decisions are taken in the influence of

    marketing forces outside the organization. These 4Ps are:

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    1. Product: refers to a physical product or a service or an idea which a consumerneeds and for which he is ready to pay.

    2. Price: price is the amount charged for a product or service.

    3. Place: place consists of decisions relating to channels of distribution and physicaldistribution.

    4. Promotion: refers to using methods of communication with two objectives:(i) Informing the existing and potential consumers about a product, and

    (2) To persuade consumers to buy the product. It is an important element of

    making mix. In the absence of communication, consumers may not be aware of the

    product and its potential to satisfy their needs and desires. Promotion mix is also

    known as marketing communication mix.

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    The marketing communications mix is the specific mix of advertising, personal selling,

    sales promotion, public relations, and direct marketing a company uses to pursue its

    advertising and marketing objectives.

    Advertising: any paid form of non-personal presentation and promotion of ideas, goods,or

    services by an identified sponsor.

    Personal selling: personal presentation by the firms sales force for purpose of making

    sales and customer and building relationships.

    Sales promotion: short-term incentives to encourage the purchase or sale of a product or

    service.

    Public relations: building good relationships with the companys various publics by

    obtaining favorable publicity, building up a good corporate image and handling or

    heading off unfavorable rumors, stories and events.

    Direct marketing: direct communications with carefully targeted individual consumers to

    obtain an immediate response and cultivate lasting customer relationships.

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    Marketing

    communications mix

    Personal selling

    Public relations

    Direct marketing

    Advertising

    Sales promotion

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    5.1.1MCKINSEYS 7S FRAME WORK

    The 7-s framework of McKinseys is a management model that describes seven factors to

    organize a company in holistic and effective way. Together these factors determine the

    way in which a corporation operates. Managers should take into account all seven of these

    factors, to be sure of successful implementation of a strategy, large or small. They are all

    interdependent, so if you fail to pay proper attention to one of them, this may affect all

    others as well. On the top that, the relative importance of each factor may vary over time.

    The 7-s model provides a useful framework for analyzing the strategic attributes of an

    organization. This framework has helped various consultants in their duties of many

    companies. The most interesting fact is that this model is a similar to managerial functions

    that are widely followed i.e. planning, organizing, staffing, leading and controlling.

    This model shows the how all the elements of the organization goals are interrelated with

    each other. The Mckinsey 7S model involves seven interdepentent factors which are

    categorized as either hardor soft elements: strategy, systems, shared value, skills, style

    and staff.

    Hard elements are easier to define or identify and management can directly influence

    them: These are strategy statements; organization charts and reporting lines; and formal

    processes and IT systems.

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    Soft elements, on the other hand, can be more difficult to describe, and are less tangible

    and more influenced by culture. However, these soft elements are as important as

    important as the hard elements if the organization is going to be successful.

    a. Strategy: the plan devised to maintain and build competitive advantage over thecompetition.

    b. Structure: the way the organization is structured and who reports to whom.

    c. Systems: the daily activities and procedures that staff members engage in to getthe job done.

    d. Shared values: called super ordinate goals when the model was first developed,these are the core values of the company that are evidenced in the corporate

    culture and the general work ethic.

    e. Style: the style of leadership adopted.

    f. Staff: the employees and their general capabilities.

    g. Skills: the actual skills and competencies of the employees working for thecompany.

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    structure

    systemsStrategy

    skills style

    staff

    Shared

    values

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    5.1.2 Mc Kinseys 7S frame Work with reference to Travancore

    cements.

    4 STRATEGY

    Strategy can be defined as the choice of direction of that company adopts to

    achieve its objectives in a competitive situation. It is the first step that the company has to

    take in leading its organization to the ladder of success. The competitive advantage for the

    company can by keeping in mind the following points.

    Strategy persuaded by Travancore cements:

    1. Production of good quality products2. Usage of lime shell instead of lime stone3. Packing on demand of product to enhance quality4. Giving trade discounts to the dealers based on performance5. Giving credit on sales to the dealers6. Giving good facilities to the employees7. Sales of product through marketing executives8. Quick delivery of product to the dealers9. Using of cheap transportation means like water transportation and rail

    transportation of the product

    5 STRUCTURE

    Structure refers to the organizational arrangements for performing the tasks and activities.

    The structure could be functional, regional, product wise etc.it also establishes the

    relationship between various functions.

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    Organization structure defines how the task is to be allocated, who reports to who, and

    formal coordinating mechanism and interaction pattern that will be followed.

    Travancore cements has a well structured system with clear departmentalization of various

    functions to enhance better flow of information. The major departments in the TCL are

    production department, sales department, purchase department, personal department,

    finance department and maintenances department.

    TCL is having sales offices and godown at Bangalore, Coimbatore, Calcutta and Delhi.

    Transport is through trucks and railways wagons to distant places; regional office is

    situated at Trivandrum. The production and security employees are having 3 shifts for their

    work and other department employees are having day time work only.

    The company is located in such a place that the transportation of the products and the raw

    materials is much easier and cost is also less. The general transportation used by the

    company are road, rail and water ways.

    6 SYSTEM

    System refers to all the rules and regulations and procedure both formal and informal that

    complement the organizational structure. Systems apply to many aspects of the firm. The

    system model of management shows that communication is needed for carrying out the

    managerial functions and for linking the organizational with its external environment

    system is most offers used with reference to MIS and marketing information system. The

    effective day-to day running of business requires the speedy collection, collection,

    collation and flexible retrieval of information.

    Recruitment is done through direct application and through employment exchange.

    Selection is mainly based on written test and interview. The selected person will have to

    undergo a period of training.

    7 STYLE

    The style of the organization refers to the management style of the organization, the

    decision making style. The relationship of the different branches in this regard will be

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    considered under the head of the style. The style of the organization will depend on the

    type of the organization because the style differs from the public sector and private sector.

    Reporting relationship may also convey the style of the organization. In some

    organizations quality control function is embedded in the manufacturing function, but in

    others it is a separate function directly under the chief executive officer.

    In Travancore cements the higher level decision are taken by the junior level and higher

    level managers.

    8 STAFF

    Staff is considered as a pool of resources to be nurtured, developed guarded and allocated.

    There is a wide spread spectrum ranging from the hard end to the soft end. One of the key

    challenges is to make use of and to develop a group of faculty members characterized by

    heterogeneity in the terms of competencies, styles and interest. Individually or as group,

    the staff must possess skills in problem solving, teaching and opportunity findings,

    developing learning methods, conducting study and opportunity finding, developing

    learning methods and research reports. Effective staffing policy would promote joy in

    work, which is very important in attracting competent individuals and assuring quality

    improvement.

    9 SKILLS

    The term skill includes those characteristics that most of the people use to describe

    company. Skills capture a companys crucial attributes or capabilities. Companies are

    usually characterized not by their strategies or their structures, but by what they do best.

    This distinction is important because organizations facing big discontinuity in their

    environment often must do more than shifting their strategic focus. People in an

    organization need various skills such as managerial, engineering, application technology,

    science etc., in the organizational content people also need business skills, such as

    marketing, finance and planning etc.

    In Travancore cements, the employees are well skilled to carry the various departmental

    functions assigned to them. The employees are given training in advance to make them

    comfortable with all the equipments used for the production purposes. Other nontechnical

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    jobs are given on job training to enhance skill. For the appointment in higher experience in

    the same job profile for definite period of time is required, which ensures the skill.

    10SHARED VALUES

    A set of values and aspiration, often unwritten, that goes beyond the conventional formal

    statement of corporate objectives. They are the starting on system development. Shared

    values work if the drive for their accomplishment pulls an organization together and if they

    provide stability in organization dynamics. It has been observed that shared values do not

    seem to be present in all, or even most, organization.

    The value which exist in reliance are,

    No discrimination for race, religion, decision making and actions.

    To develop a sense of respect for oneself in others mind.

    If any of the staff do theft, fraud work or anything against company policy they willbe terminated from the job after proper investigation.

    5.2 CHANNELS OF DISTRIBUTION

    In the modern marketing environment, production and distribution have become very

    complex. Goods are produced in a factory place where as consumers are scattered

    throughout the country and abroad. Under these circumstances, the producer will not be

    able to sell the goods directly to the ultimate consumers. The reasons are many, the

    producers lack financial reasons, he has to maintain large sales force, problem of

    management control arise, instead of spending a lot of time and energy on distribution, he

    can concentrate on promotion and so on. So he has to depend on intermediaries for the

    physical distribution of his goods.

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    According to American marketing association A channel of distribution is a structure of

    intra company organization units and extra company agents and dealers, wholesale and

    retail through which a commodity, product or service is marketed. A channel of

    distribution is an organized network or a system of agencies and institutions which, in

    combination, perform all the activities required to link producers with users and users with

    producers to accomplish the marketing task.

    In other words, it stands for the path and route traced in the direct of indirect transfer of

    title to a product; as it move from a producer to the ultimate consumer or industrial users.

    Thus, a channel of distribution is a path way directing the flow of goods and services

    from producers to consumers composed of intermediaries through their functions and

    attainment of the mutual objectives.

    Distribution is the act of carrying goods and services from the producer to the consumer. It

    consists of an operation or series of operation which physically brings the goods from the

    producer in to the hands of the final user. Good have no value if they simply lie in the

    down of the manufacture. They must be made available to the consumers. Various

    agencies are involved in the movement of goods from the plant to the consumer. The term

    distribution collectively refers to all the acts or serves rendered by various agencies.

    Distribution is an integral part of the mark by process. Its future is to distribute or

    subdivide. The total products of a production on a geographical basis to various speeches

    markets.

    The word channel is derived from the French word cannal. The channel of distribution

    thus refers to the path way taken by the goods as they flow from the point of production to

    the point of consumption. A channel of distribution consists of various specialized

    institution or agencies are called middleman.

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    5.2.1 IMPORTANT BENEFITS OF DISTRIBUTION

    Distribution has enabled the consumer to satisfy their wants. It has created place,time and possession utilities.

    It has brought in to existence, the service of the bankers and insures.

    Easy distribution of goods. Demand creation.

    Better availability of products.

    Means of communication and transportation have developed.

    Problems of scarcity and famine in certain areas are solved by effectivedistribution.

    Scope for specialization and division of labour have enlarged. It has offered gainfulemployment opportunities to millions of persons.

    Total wealth production of the world has increased.

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    5.2.2 CLASSIFICATION OF CHANNELS

    The trade channels are classified as to conventional and non-conventional or non-integrated with further classifications.

    Conventional Non - conventional

    Direct indirect Vertical horizontal

    constractual Administered corporate

    Channels of distribution

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    5.2.3 TYPES OF INTERMEDIARIES

    Merchant middlemen

    Merchant middlemen are those who take title to the goods and channel step to the next

    channel step in the pipeline. These merchant middlemen are broadly classified as

    wholesalers and retailers.

    Wholesalers

    Wholesale trader is one whole sale to other middlemen institutions and individuals usually

    in fairly large quantities.

    According to ammerican management association, wholesalers sell to retailers or othermerchant and or individual institutional and commercial users but they do not sell in

    significant amounts to ultimate consumers.

    FUNCTIONS

    1. Assembling and buying

    Assembling implies the collection of small lot of scattered agricultural production

    for economic bulk buying. Buying comprises of the activities of selection of

    manufacturers and placing orders on them and making special purchase in case of

    seasonal products.

    2. Warehousing

    Warehousing or storing is closely related to the function of assembling. This

    involves capittal lock-up plus risks.

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    3. Transportation

    In the process of assembling and warehousing and resale, wholesale do undertake

    transportaion of goods from producers to their warehouses and back to the retailer.

    4. Financing

    Wholesales undertake marketing financing.

    5. Risk bearing

    Channels helps to reduce the risk of producers and shares the risk of the producers.

    6. Grading, packing and packaging

    Grading is another function of wholesaler where by they sort-out the stocks in form

    of differing size, qualites, moisture-contents and so on.

    7. Market information

    Wholesalers are the vital link between the retailers and the manufacturer.

    Retailers

    Retailer is one whose business is to sell to consumerr a wide variety of goods which are

    assembled at this premises as per the needs of final users. Professsor willam staton defines

    retail trade as retailing includes all activities directly related to the sale of goods and

    services to the ultimate consumer for personal or non-business use

    FUNCTION

    1. Buying and assembling

    Retailer has to assemble products from different manufactures and wholesalers as

    he has to keep wide variety of stock of products to meet the varied and small

    requirements of large number of customers.

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    2. Warehousing

    Warehousing or storing is closely related to the function of assembling. This

    involves capittal lock-up plus risks.

    3. Selling

    Final aim is to sell the products to the customers or those who want the product.

    Retailer is rightly called as the buying agent of consumer.

    4. Riskshouldering

    Risk- shouldering is the basic responsibility of a retailer arising out of physical

    deteriorations and changes in prices.

    5. Grading and packing

    Grading is another function of wholesaler where by they sort-out the stocks in form

    of differing size, qualites, moisture-contents and so on.

    6.

    FinancingIn the whole scheme of marketing, the contribution of retailers is really worth

    emphasizing in so far as consumer financing.

    7. Advertising

    Retailer are the best agents to advertise the products, service and ideas.

    8. Supply of market information

    Retailers really enjoy enviable position in so far collection information from the

    horses mouth.

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    Agent midlemen

    Agent middlemen are as important as merchant middelmen. Agent middlemen are those

    channel components who help in the transfer of goods from the hands of producers to the

    hands of ultimate users without acquiring the ownership of these goods.

    THE TYPES OF AGENT MIDDLEMEN

    1. Commission Agent

    He buys and sells goods for his principles in return for a commission. He may or

    may not buy in his name but he does not assume any risk. He get a fixed rate of

    commission for the business done.

    2. Brokers

    Brokers is an agent who is employed to make bargains and contracts in matters of

    trade, commerce or navigation, between two parties for a compensation known as

    brokerage.

    3. Factors

    Factors are an agent employed to sell the goods or merchandise consigned or

    delivered t o him by or his principals for compensation.

    4. Auctioneers

    Auctioneers are the legal of the seller till the goods are knocked down to the

    highest bidder. He is the intermediary between the buyer and seller. The products

    like white cement, putty, super shelcem are commonly sold by auction.

    5. Selling agent

    Selling agent are the intermediaries who are given the exclusive franchise only for

    a limited market segment.

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    5.2.4 CHANNEL LEVELS

    The physical movement of goods starts from the centers of production to the centers of

    consumption that is production to the consumers. Channel level implies the route thatconnects the producer and the consumers. It speaks of the intermediaries bothowner and

    agent between the producer and consumers.

    a. Channels or channel levels for consumers goods

    1. ManufactureconsumerIt is zero level channels because no intermediary is involved between the

    producer and the consumer. That is there is direct link between the producers

    and consumers.

    2. ManufacturerretailerThis is one level channels. Here enter one intermediary namely retailer. That is

    goods mere from producers to retailers and to the final consumer.

    3. Manufacturer- wholesalerretailerconsumerIt is a two level channel where two intermediaries enter namely, wholesaler and

    retailer. That is the goods move from producer to wholesalers and back to

    retailers before reaching the final consumer.

    4. Manufacturersole agentwholesaler- retailers- consumersIt is three level channels where both owner and agent intermediaries enter.

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    b. Industrial goods channels

    1. Manufacturerindustrial customerMajority of the cases, the manufacturer sell directly to the customers as

    customers are few and geographical concentrated.

    2. Manufacturerindustrial distributorindustrial customersHere one intermediary enter and makes the channel level one channel. This

    intermediary is the industrial distributor who is responsible to sell the industrial

    goods to industrial customer.

    3. Manufacturermanufacturer representative industrial distributor - industrialcustomer

    Here channel turns into double level where two intermediaries appear. To

    contract industrial distributors, manufacturers a manufacturers representative

    has a vital role to play.

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    CHAPTER 6

    MARKETING AND DISTRIBUTION OF

    TCL

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    MARKETING AND DISTRIBUTION OF TCL

    6.1 MARKETING DEPARTMENT STRUCTURE

    Chief Manager(Marketing)

    Sales Representatives

    Junior Executive

    Marketing Manager

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    6.2 FUNCTIONS OF MARKETING DEPARTMENT

    To identify the needs and wants of the consumers To meet the demand of the consumers Developing new better product Successful distribution of the products Improving the quality of products or services

    MARKETING ACTIVITIES

    TCL has a well established marketing department. There is an efficient sales force

    which is under the Marketing Manager. The whole system comes under the General

    Manager. TCL has got 14 sales representatives throughout Kerala.

    6.3 MARKETING DISTRIBUTION CHANNELS

    Company Depots Stockiest Dealers Customers

    Stockiest

    Number of Stockiest of TCL products

    TCL has 25 Stockiest for White cement in Kerala.

    TCL has 300 Dealers for Paint in Kerala.

    TCL has 2000 Dealers for White cement in Kerala.

    TCL has 3 Stockiest for White cement in Tamil Nadu.

    TCL has 50 Dealers for White cement in Tamil Nadu.

    6.4 SALES PROMOTION

    TCL has an advertisement budget of 25 lakhs per annum. Since the amount

    is too small the company is advertising at low level. Other promotional activities include

    conducting dealers meetings once in two years. In addition to these the company offers

    various incentive schemes for its dealers according to their sales performance.

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    Due to very low advertisement budget the company does not engage in any large

    scale type of advertisement activities. The company occasionally engages in advertisement

    through newspapers, magazines etc. The main modes of advertisement are displaying

    boards which are positioned where they get maximum attention.

    They also use Asia net cable vision, wall painting etc. The current year Board of

    directors allowed 50 lakhs for advertisement

    Table no.1: PRICING OF VEMBANAD PORTLAND WHITECEMENT

    WEIGHT PRICE

    KERALA MRP 50KG5KG

    1KG

    RS 856.50RS 109.10

    RS 24.20

    OUTSIDE 50KG RS 870.50

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    Table no. 2: PRICING OF SUPER SHELCEM CEMENT PAINT

    WEIGHT PRICE

    25 KG Bag RS 825

    5 KG Jute Bag RS 170.80

    3 KG Polythene Packet RS 102.50

    1 KG RS 34.80

    Table no. 3: PRICING OF VEMBANAD WALLPUTTY

    WEIGHT PRICE

    20KG RS 678

    5 KG RS 180

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    Reason for High Price

    The production process of TCL is very old and it is known as WET process and is

    very expensive. This is the only company which is using this old process. The other

    companies are using DRY process. This is comparatively less expensive. So the other

    companies can reduce price. Another reason is the raw materials particularly lime shell and

    white clay is scarce. So these products are priced very high

    Competition

    The company is facing tough competition from the white cement from internal

    manufacturers and also from imported white cement. JK White, Birla, RKC etc. are the

    major competitors in the white cement sector. In the cement paint sector, there are about 14

    brands to compete with Super Shelcem. The major competitors are Durocem, Snowcem

    etc. The companys new product Sheltex Acrylic Emulsion Paint has only 5% market share

    and facing competition from majors like Apex, Excel etc.

    Discounts Al lowed By T C L

    TCL gives trade discounts of 10% and cash discount of 4 % for purchase of 250 kg.

    and above ,the company allows 3% discount on freight allowances and 3% on special

    discount. In every three months, the company gives 1% quantity discount for 200kg, 2%

    for 500kg.

    Procedure for Marketing and Distribution

    The company has been carrying out production oriented strategy because of the

    monopoly of the Vembanad brand. With the entry of competition the need for marketing

    oriented strategy is analyzed. The company was mainly depending on distributors in

    various regions.

    TCL offers no credit facilities for white cement. It offers 45 day credit for cement

    paint. The payment is made in advance by demand draft in case of white cement and by

    cheque in case of cement paint. The company offers commission in the form of trade

    discount in their stockiest.

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    Fig. no.3: Market share of Vembanad white cement

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    vembanadBirla

    JK

    RKC

    35%

    55%

    5%5%

    Market share

    market share

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    Fig. no.4: Market share of Supershelcem paint

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    Supershelcem

    Other brands

    10%

    90%

    Market share

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    1) EXPERIENCE IN DEALERSHIP (IN YEARS)

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)

    Up to 5 years 11 22

    5-15 20 40

    15-25 10 20

    Above 25 years 09 18

    total 50 100

    INFERENCE

    From the above table it is clear that out of 50 respondents, majority of the dealers (40%)

    have 5-15 years of experience in dealing Vembanad white cement. And 20% of dealers

    have been dealing white cement for 15-25 years. The 22% have less than 5years and the

    rest 18% have more than 20 years of experience. This shows the sustainability of the

    product in the market even in the presence of other competitive brands, it also shows the

    dealers interest in the usefulness of the product for the consumers.

    0

    10

    20

    30

    40

    Up to 5

    years 5 to 15

    15-25Above 25

    years

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    2) DEALERS OPINION ABOUT THE QUALITY OF VWC

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)

    Excellent 14 28

    Very good 24 48

    Good 07 14

    Satisfactory 05 10

    Poor 00 00

    Total 50 100

    INFERENCE

    The chart above shows the degree of reliability on the quality of VWC. Most of the dealers

    said the quality of VWC is unbeatable. Around 28% of dealers have the opinion that the

    quality is excellent. Majority of the dealers rated the quality as very good and 14% say the

    quality is good. Only a mere 10% have the opinion satisfactory. No one reported on poor

    quality products from TCL.

    0

    10

    20

    30

    40

    50

    Excellent Very good Good Satisfactory Poor

    28%

    48%

    14%10%

    0%

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    3) DEALERS OPINION ABOUT THE PRICE OF VWC

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)

    Very high 15 30

    High 28 56

    Affordable 06 12

    low 01 02

    Total 50 100

    INFERENCE

    This table shows the option of dealers and customers about the price of VWC when

    compared to other brands. Most of the respondents feel that the pricing of cement is very

    high when compared to other similar brands. Among 50 dealers 30%ofthem reported that it

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100

    1 2 3 4 5

    Series1

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    is higher not the highest. 12%of the dealers feel that the price is affordable and only 2%

    reported that it is low.

    4) FACTOR FOR PREFERENCE GIVEN FOR THE PRODUCT

    ATTRIBUTES NO.OF RESPONDRNTS PERCENTAGE (%)

    Availability 05 10

    Demand 15 30

    Quality 07 14

    Brand name 20 40

    Others 03 06

    Total 50 100

    INFERENCE

    From the above table it is clear that, out of 50 respondents, majority 40% of dealers prefer

    this product, because of its brand name and another 30% prefer because the demand of this

    product in the market. 14%of dealers prefer this product because the quality of it, and

    another 10% prefer because of its availability. Remaining 6% prefer this particular brand

    because the reasons such as company policy, margin etc.

    0

    20

    40

    60

    80

    100

    Series1

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    5) LEADING BRAND IN THE MARKET

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)Birla white 15 30

    JK 05 10

    RKC 04 08

    Vembanad white 26 52

    Others 00 00

    Total 50 100

    INFERENCE

    From the above it is clear that, out of 50 respondents, 52% respondents said that vembanad

    white cement is leading in the market. 30%respondents said that Birla white is the leader in

    the market.10% dealers said that JK is the leading brand in their region, and remaining 8%

    said that RKC is the leader in their region. From the above table, it is clear that vembanad

    brand having a good share.

    0

    20

    40

    60

    80

    100

    1 2 3 4 5 6

    PERCENTAGE (%)

    PERCENTAGE (%)

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    6) SATISFACTION OF DEALERS WITH PACKING OF THE PRODUCT

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)

    Yes 41 82

    No 09 18

    Total 50 100

    INFERENCE

    From the above table it is clear that, out of 50 respondents, 82% respondents are satisfied

    with the packing of the product. Remaining 18% find some problems with the packing and

    not satisfied with packing of the product.

    Yes

    No

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    7) RATING OF SALES PROMOTION ACTIVITIES

    ATTRIBUTES NO. OF RESPONDENTS PERCENTAGE (%)Excellent 02 04

    Very good 05 10

    Good 18 36

    satisfactory 19 38

    Poor 06 12

    Total 50 100

    INFERENCE

    The promotion one of the Ps of marketing is most important for the survival of the

    business firm. From the analysis the promotion activities of TCL are found to be

    satisfactory. 40% of dealers found it Execllent 10% of the dealers reported as very good ,

    0

    5

    10

    15

    20

    25

    30

    35

    40

    PERCENTAGE (%)

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    36% of the dealers voted as good, majority (38%)of them voted as satisfactory, remaining

    12% of the dealers reported as poor. According to them competitors are giving good

    promotion for their products compared to TCL.

    8) LEADING CEMENT PAINT IN THE MARKET

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)

    Lavanyacem 22 44

    Truecem 12 24

    Dukecem 10 20

    supershelcem 06 12

    Total 50 100

    INFERENCE

    The above table shows that around 44% of respondents, is selling lavanyacem cement

    paint. 24% of respondents selling truecem. 20% of respondents selling dukeecemof

    respondents selling supershelcem.

    0

    5

    10

    15

    20

    25

    30

    35

    40

    BirlaJK

    AltechNippon

    PERCENTAGE (%)

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    9) MOST SELLING WALL PUTTY

    ATTRIBUTES NO. OF RESPONENTS PERCENTAGE (%)

    Birla 20 40

    JK 12 24

    Altech 10 20

    Nippon 08 16

    Total 50 100

    INFERENCE

    From the above it is clear that out of 50 respondents 40% said that birla wall putty is

    leading in the market , 24% said that JK wall putty is leading in the market, 20% said that

    altech is the leading and remaining 16% respondents said that Nippon wall putty leading in

    their region. It is clear that Birla wall putty is having a good market share.

    0

    10

    20

    30

    40

    BirlaJK

    AltechNippon

    PERCENTAGE (%)

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    10)DEALERS RECOMMENDATIONS OF TCL PRODUCTS TO

    CUSTOMERS

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)

    Yes 30 60

    No 20 40

    Total 50 100

    INFERENCE

    The above data shows that 60%of dealers would recommend the TCL products to

    customers and 40% would not do so. This is a good sign for the company that dealers have

    positive attitude towards the products. Company would do well in improving the remaining

    percentage of dealers that are unhappy with the product. This could be mainly due to profit

    margin and other services offered from the company.

    Yes

    No

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    11)EFFECTIVENESS OF ADVERTISEMENT OF TCL PRODUCTS

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)

    Yes 34 68

    No 16 32

    Total 50 100

    INFERENCEMajority of the respondents who are aware of TCL advertisements feel that they are

    effective in attracting the customers towards the product. 68% feel that ads effective and

    32% consider it in effective.

    Yes

    No

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    12)SATISFACTION OF DEALERS WITH DISTRIBUTION SYSTEM

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)

    Yes 39 78

    No 11 22

    Total 50 100

    INFERENCE

    Out if 50 respondents 78% of them are satisfied with distribution system of TCL. And the

    remaining 22% are not satisfied with the distribution system of TCL.

    Yes

    No

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    12)MOST SELLING WHITE CEMENT

    ATTRIBUTES NO.OF RESPONDENTS PERCENTAGE (%)

    Birla white 26 52

    RKC 10 20

    JK 06 12

    Vembanad white 08 16

    Total 50 100

    INFERENCE

    From the above table, it is clear that out of 50 dealers 52% selling Birla white cement. 20%

    reported that they are selling are RKC white cement 12% sellin