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INTRODUCTION

Marketing can be defined as the activity, set of institutions, and processes

for creating, communicating, delivering, and exchanging offerings that have value for

customers, clients, partners, and society at large. The term developed from the original

meaning which referred literally to going to market, as in shopping, or going to a market

to buy or sell goods or services.

Marketing is a societal process by which individuals and groups obtain what they

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

value with others. For a managerial definition, marketing has often been described as

“The art of selling products", but people are surprised when they hear that the most

important part of marketing is not selling , but selling is only the tip of the marketing ice

berg.

The Marketing strategy is evolved in the late 1950s. When some marketers

began to realize that they could sell more goods more easily. If they produced only those

goods they had already determine that consumers would buy. Instead of trying persuade

to customers to buy what the firm had already produced. Consumer needs and wants

became the firm’s primary focus. The marketing mix consists of a company’s product

offerings to consumers and the methods and tools it selects to accomplish the exchange.

The marketing mix consists of 4 elements: Product, Price, Place, and Promotion.

Marketing is the societal process by which individuals and groups obtain

what they need and want through creating, offering, and freely exchanging

products and services of value with others. For a managerial definition, marketing

has often been described as “the art of selling products”, but people are surprised

when they here that the most important part of marketing is not selling are only the

tip of the marketing iceberg.

The American marketing association offers the following definition:

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

promotion, and distribution of ideas, goods, and services to create exchange that satisfy

individual and organizational goals. The marketing plays a major component of any

organization to reach their goals. Marketing should help the organization to know the

needs, wants, and feelings of the customers.

The goal of marketing is to attract new customers by promising superior value and

to keep current customers by delivering satisfaction based on their preferences retaining

them. Without customer no market exists. As the customers are regarded as superiors in

today’s market, the level of satisfaction and their preferences should be keenly studied.

Getting a new customer is difficult, then retaining a current customer is a more difficult

one and not only that it is estimated that the cost of attracting a new customer is five times

the cost of retaining current.

DEFINITIONS:

“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.”

-------Philip Kotler & Kevin Lane Keller

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Today’s market is full of offers and discounts. Marketers use multiple promotion

programmers to entice customers to by products and services. While objectives of

advertising are long term and generally of brand building., sales promotion programmers

often pursue a single goal i.e, to maximize sales in short run. The consumer promotion

programmers are visible to the audience because they are often advertised in the mass

media . companies also undertake trade are intermediary promotion and sales force

promotion programmer to increase sales. This is important because in both direct and

indirect marketing programmes ,sales and trade play an important role in the product at

trade and sale force and, many consumer promotion programmes will not achieve its

desired objective. Sales promotion programmes are short term programmes, short term

programmes are aimed at maximizing sales in a period of time but what is most important

to remember is that the sales promotion programme should be designed in such a way that

it does not affect the overall brand image of the firm and its product. Many companies

offers sales promotion prigrammes more frequently. Through they are able to optimize

their sales in a short run period but frequent use of sales promotion leads to brand value

erosion. Sales promotions are increasingly being used to accomplish an ever-expanding

list of marketing objectives.

Companies pursue short term and long term marketing goals. Whereas in the long

run they wish to build brands, which deliver vale over a long period of time, in the short

term they pursue sales and market share goals. The demand for products and services is

affected by various extraneous entry of new competitor into the business. In off seasons,

sales are not healthy and there is a fall in market demand which creates companies use

sales promotion schemes to promote sales during off season period.

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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

point of purchase displays

rebate (marketing)

free travel, such as free flights

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OBJECTIVES

The following are the objective of this project:-

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

condition on Maha Cement in Hyderabad market.

To assess the quality of advertisement of Maha cement

To lay down suggestive measures for the improvements of Maha Cements Sales

performance.

To find out satisfaction levels of the dealers towards the Maha cement

Increase sales volume

Check the fluctions in sales

Encourage dealers to participate in displace sale contests

Improve relationship with dealers

Motivate to the dealers

Deflect customers attentions from price

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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.

3. The study concentrates on analyzing the satisfaction levels of the customers in

HYDERABAD.

4. To study the major competitors of Maha Cement in Hyderabad

5. To assess the quality of distribution network of Maha cement

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LIMITATION OF THE STUDY

. Lack of cooperation from the retailers in regard to giving interview

. It was found in some cases dealers showed inclination towards certain brands

which gave them more margins when compared to others.

. It was experienced during the survey that it was difficult to convince or make the

retailers and dealers understand the important of the project

As the retailers and dealers thought that it was unwise for the

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METHODOLOGY

Method:

The following are the method chosen for the completion of project and collection

of data , response.

Personal Interview method

Telephone Survey

Research Plan:

The following pages are the account of a survey conducted on behalf of Maha

Cement. An attempt was made to know the performance of Maha Cement with regards to

its Sales and Promotion, Advertisement and Distributions.

For this a thorough marketing survey was conducted by collecting required data

both primary and secondary. Primary data consists as, secondary data consists of

information that already exists somewhere having been collected for another purpose. The

data collected for this study consists of both primary data and secondary data.

SOURCES OF DATA:

Primary Data

Primary data was collected with help of questionnaire, an interview with the

dealers of samples.

Secondary Data:

Secondary sources helpful for my study were:

Text books like marketing management research

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News papers were referred

Business magazines were referred

Some journal was also referred

The survey conducted includes only Maha Cement dealers and multi Brand Dealers no

any other brand Specific Dealers.

To give their details of business as they feared competitors would take advantage.

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CEMENT INDUSTRY

INTRODUCTION:

Cement is a key infrastructure industry. It has been decontrolled from price and

distribution on 1st March, 1989 and delicensed on 25th July, 1991. However, the

performance of the industry and prices of cement are monitored regularly. The

constraints faced by the industry are reviewed in the Infrastructure Coordination

Committee meetings held in the Cabinet Secretariat under the Chairmanship of Secretary

(Coordination). Its performance is also reviewed by the Cabinet Committee on

Infrastructure.

For building a houseman needs a material that would bind stones in to solid form

in olden days clay was used to bind the blocks, then the Egyptians used lime and gypsum

mortar to bind blocks in building pyramids. Romans used slacked lime mixed with

volcanic Ash of mount Vesuvius as a building material, this material was called

Hydraulic cement which hardness under water. This is now called POZZOLONA

CEMENT”. When one English engineer, John Semitone was assigned to build a light

house on the coast of Orwell failed with ordinary lime mortar which did not harden

underwater, he came out with an idea of making cement made from burning of lime stone

containing a consider a bad portion of clay. Then he succeeded in making the LIGHT

HOUSE which stayed for many years.

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Capacity and Production

The cement industry comprises of 125 large cement plants with an installed

capacity of 148.28 million tonnes and more than 300 mini cement plants with an

estimated capacity of 11.10 million tonnes per annum. 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. The total installed capacity in the

country as a whole is 159.38 million tonnes. Actual cement production in 2002-03 was

116.35 million tonnes as against a production of 106.90 million tonnes in 2001-02,

registering a growth rate of 8.84%.

Keeping in view the trend of growth of the industry in previous years, a

production target of 126 million tonnes has been fixed for the year 2003-04. During the

period April-June 2003, a production (provisional) was 31.30 million tonnes. The

industry has achieved a growth rate of 4.86 per cent during this period.

Exports

Apart from meeting the entire domestic demand, the industry is also exporting

cement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14

million tonnes and 6.92 million tonnes respectively. Export during April-May, 2003 was

1.35 million tonnes. Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.

Recommendations on Cement Industry

For the development of the cement industry ‘Working Group on Cement Industry’

was constituted by the Planning Commission for the formulation of X Five Year Plan.

The Working Group has projected a growth rate of 10% for the cement industry during

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the plan period and has projected creation of additional capacity of 40-62 million tonnes

mainly through expansion of existing plants. The Working Group has identified

following thrust areas for improving demand for cement;

(i) Further push to housing development programmes;

(ii) Promotion of concrete Highways and roads; and

(iii) Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement

Industry, the Department of Industrial Policy & Promotion commissioned a study on the

global competitiveness of the Indian Industry through an organization of international

repute, viz. KPMG Consultancy Pvt. Ltd. The report submitted by the organization has

made several recommendations for making the Indian Cement Industry more competitive

in the international market. The recommendations are under consideration.

Technological change

Cement industry has made tremendous strides in technological upgradation and

assimilation of latest technology. At present ninety three per cent of the total capacity in

the industry is based on modern and environment-friendly dry process technology and

only seven per cent of the capacity is based on old wet and semi-dry process technology.

There is tremendous scope for waste heat recovery in cement plants and thereby reduction

in emission level. One project for co-generation of power utilizing waste heat in an

Indian cement plant is being implemented with Japanese assistance under Green Aid

Plan. The induction of advanced technology has helped the industry immensely to

conserve energy and fuel and to save materials substantially. India is also producing

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

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

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

Production of these varieties of cement conform to the BIS Specifications. It is worth

mentioning that some cement plants have set up dedicated jetties for promoting bulk

transportation and export.

Cement Industry in India:

The cement industry in India began in 1904, when the first cement factory was

started in Madras by the south India Industries Company later on large scale production

was started in 1914 after cement industries has setup their plant at Porbandar. Then

various other cement companies were setup.

In 1936 all the cement factory merged to form the Associated Cement Companies Ltd.

Except Stonewalled Portland Cement Company Ltd. At time of partition of India had 18

factories with an installed capacity of 105 million tones per annum. The cement industry

received a push with the five year plans.

After Independence

The growth rate of cement was slow around the period after independence due to

various factors like low prices, slow growth in additional capacity and rising cost. The

government intervened several times to boost the industry, by increasing prices and

providing financial incentives. But it had little impact on the industry.

In 1956, the price and distribution control system was set up to ensure fair prices for both

the manufacturers and consumers across the country and to reduce regional imbalances

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and area suffiency .

Since the independence. India cement industry has been growing to meet the demand of

the Indian market. Now India Is in a position to meet the demand of the local market and

also in a position to export the cement to the other counties the counties to which cement

is exported are Nepal, Bangladesh, South Africa, Maldives, UAE and other others.

Cement Industry in India is on a roll at the moment. Driven by a booming real

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

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

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

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

cement industry is currently ranked second in the world.

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 made tremendous strides in technological upgradation 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

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

Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement

etc. Some of the major clusters of cement industry in India are: Satna (Madhya Pradesh),

Chandrapur (Maharashtra), Gulbarga (Karnataka), Yerranguntla (Andhra Pradesh),

Nalgonda (Andhra Pradesh), Bilaspur (Chattisgarh), and Chandoria (Rajasthan).

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

Some examples of consolidation in the Indian cement industry are: Gujarat Ambuja

taking a stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement;

ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu

Cement; and Grasim's acquisition of the cement business of L&T, Indian Rayon's cement

division, and Sri Digvijay Cements. Foreign cement companies are also picking up stakes

in large Indian cement companies. Swiss cement major Holcim has picked up 14.8 per

cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition

has led to the emergence of two major groups in the Indian cement industry, the Holcim-

ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim

Industries and Ultratech Cement. Lafarge, the French cement major has acquired the

cement plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in the

K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German

cement company Heidelberg Cement has entered into an equal joint-venture agreement

with S P Lohia Group controlled Indo-Rama Cement.

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Cement production and growth:

Domestic demand plays a major role in the fast growth of cement industry in

India. Infact the domestic demand of cement has surpassed the economic growth rate of

India. The cement consumption is expected to rise more than 22% by 2009-10 from 2007-

08. In cement consumption, the state of Maharashtra leads the table with 12.18%

consumption, followed by Uttar Pradesh. In terms of cement production, Andhra Pradesh

leads the list with 14.72% of production, while Rajasthan remains at second position.

The production of cement in India grew at a rate of 9.1% during 2006-07 against the total

production of 147.8 MT in the previous fiscal year. During April to October 2008-09, the

production of cement in India was 101.04 MT comparing to 95.05 MT during the same

period in the previous year. During October 2009, the total cement production in India

was 12.37 MT compared to a production of 11.61 MT in the same month in the previous

year. The cement companies are also increasing their productions due to the high market

demand. The cement companies have seen a net profit growth rate of 85%. With this huge

success, the cement industry in India has contributed almost 8% to India's economic

development.

The Global Cement Industry

Cement is a basic ingredient for the construction industry. Cement is made out of

limestone, shell, clay mined out of a quarry close to the plant. The raw material is

crushed, and then heated at temperature in excess of 1000 ºC in rotating kiln to become

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clinker. Clinker is then mixed with gypsum and ground to a fine powder to produce final

grade of cement. The technology is a continuous process and is highly energy

intensive.Cost of cement is 29% energy, 27% raw materials, 32% labour and

12%depreciation.

The weight/to price ratio make transportation cost very high. The competitive

radius of a typical cement plant for most common types of cement extends no more than

300 kilometers. However, cement can be shipped economically by sea and inland

waterway over great distances, extending greatly the competitive radius of cement plants

with access to waterborne shipping lanes. Thus, the location of a cement plant and the

cost to transport the cement it produces through its distribution terminals bear

significantly on the plant’s competitive position and the prices it may charge. The

minimum efficient size for a cement plant is around 1 million ton a year.

As a consequence of a relatively low minimum efficient plant and transportation

costs cement production is highly fragmented. It is estimated that there are around 1500

integrated cement production plants in the world. Although the industry has seen the

emergence of strong global players such a Lafarge or CEMEX, the share of the four

largest firms account only for 23% of the overall demand.

Cement is distributed in bags or is delivered to construction sites through

readymix lorries.

The major segments of the industries are:

• Aggregates: quarries and crushing minerals to be mixed with cement to

make concrete

• Cement production

• Ready Mix: distribution of ready to use concrete

Issues concerning Cement Industry

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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

dependant 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 the

inputs are controlled by the government.

There is regional imbalance in the distribution of cement industry. Limestone

availability in pockets has led to uneven capacity additions.

Coal availability and quality is also affecting the production

Cement industry profiles: India

This article is an abridged version of the full article, which appeared in the October 2012

issue of World Cement. Subscribers can view the full article by logging in.

The monsoon effect

Poor monsoon rains this year have hit Indian farmers badly but have helped boost demand

for cement during what is usually the low season for the cement industry. The lack of rain

has allowed construction companies to continue working as usual and pushed up demand

for cement by more than 10% all over India in June and July, according to property

developers, with the price of cement also edging up as a result.

During a normal monsoon season, cement demand decreases by mid-June and remains

depressed for another three months as heavy rain falls all over India causing construction

work to slow down. For example, cement demand growth was just 1.6% in June 2011,

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http://www.worldcement.com/signin/

while double digit growth is expected when accurate cement demand data becomes

available for June of this year.

Observers believe the recent rise in cement prices may not be solely due to unexpected

increased demand from the construction industry. Many cement manufacturers close

some of their plants during the monsoon season for annual maintenance owing to the

normal decrease in cement demand, which results in lower production capacity

availability during the annual rains.

Additional capacity

Increased monsoon season demand is lifting cement production in various parts of the

country. However, this is not expected to reverse the overall trend that India’s cement

industry has faced during the past two years of subdued demand growth and declining

plant operating rates caused by the large increase in cement capacity that has recently

come on stream.

Almost 63 million t of new high quality cement production capacity has been

commissioned during the past two years according to the Cement Manufacturers

Association of India (CMA). The impact of the new capacity additions and weaker

cement demand has been to push down capacity utilisation rates across the country from

85% in FY09/10 to 75% in FY11/12, CMA figures show. Housing construction and

government infrastructure investment helped boost demand across most of India in

FY11/12. Cement consumption grew by 13.8% in the western region followed by 11% in

the north, 9.3% in central India and 2.9% in the eastern region.

Southern India

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The situation is different in the south, however, where some 23 million t, almost one third

of India’s new cement manufacturing capacity, has been installed during the past two

years. Local political issues, particularly in Andhra Pradesh state, which is an important

cement market, caused cement demand for infrastructure projects and housing

construction in the south to fall to 3% below the previous year’s level for the first three

quarters of FY11/12, with southern demand only showing growth in the final quarter of

the year. As a result, utilisation rates in the southern region are the lowest in India, with

the overall rate falling to 63% in FY11/12.

Apart from lower construction activity last year, another reason for the low plant capacity

utilisation in the south has been a shortage of rail freight cement wagons, preventing

southern cement producers from supplying cement markets in eastern and northern India

that are located too far away to be supplied by road transport.

The outlook this year is brighter. Cement demand picked up in the first quarter of 2012

across India, raising hopes for sustained growth during the rest of the year.

According to the CMA, cement demand rose 10% countrywide in January – March 2012,

compared with 5.6% during the preceding nine months. Growth in demand was largest in

southern India, reaching 9.6% in contrast to a 3% y/y fall during the previous nine

months. It is expected that demand in the south will catch up with cement supply by

FY14/15.

New plants

Although cement demand is picking up, capacity utilisation is expected to fall even

further this year as more cement plants come onstream. According to The Hindu

newspaper, cement demand is likely to rise by 8% in FY12/13, lifted by rising demand

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from infrastructure construction and housing development projects in western and eastern

India.

A forecasted 7.5% increase in GDP will help lift cement demand this year as the economy

picks up again.

India’s GDP growth in FY11/12 is estimated at 6.9%, a sharp fall from 8.4% the previous

year due to the impact of the Eurozone crisis, high domestic inflation and weak industrial

growth.

A further 25 million t of production capacity is due to be commissioned this year. Cement

plants totalling around 9 million t are due to start up in the south, while about 7 million t

of new capacity is set to be commissioned in eastern India.

The impact is likely to depress the cement industry’s all-India operating ratio to about

72% this year, with the operating ratio in the south likely to be in the low 60 percentile

range and eastern India in the mid to upper 60s.

Cement pricing

Cement prices are expected to rise in northern India, which geographically is too far from

southern and eastern India to be supplied from those regions where surplus cement

production capacity is available. Meanwhile, cement prices and supplies have recently

made headline news in the country as a result of the Competitive Commission of India

(CCI) imposing a collective fine totalling Rs.60 billion (US$1.1 billion) in June for price

fixing. Announcing the fine, CCI accused the companies of “limiting” cement supplies

and controlling prices through an “anti-competitive agreement”. CCI’s action follows a

formal complaint from the Builders’ Association of India that the 11 cement companies

had formed a price cartel. The CMA has also been implicated in the price fixing issue. It

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has been asked to disengage and disassociate itself from collecting whole and retail

cement prices from member cement companies and for circulating details on production

and dispatches of cement companies to CMA members. The penalty is bigger than

expected and the accused cement manufacturers are preparing to enter the appeals

process. India’s three largest cement manufacturers, UltraTech, ACC and Ambuja

Cements, have said they will appeal the ruling at the country’s Competition Appelate

Tribunal.

Cement Industries in ANDHRA PRADESH with Production Capacity

16.70 CAPACITY

NAME OF CEMENT COMPANY / PLANT

LOCATION ANNUAL INSTALLED CAPACITY (MILLION

TONNES)ACC Ltd. Macherial 0.34

Orient Cement Rechni Road 1.18

Maha Cement Nalgonda 3.32

Andhra Cement (G) Vijaywada 0.24

Kistna Cement Kistna 0.21

Zuari Cement Tadipatri 1.70

India Cement Yerraguntla 0.40

India Cement Chilamkur 1.00

Madras Cements Jayantipuram 1.10

Rassi Cement Wadapally 1.80

Priyadarshini Cement Ramapuram 0.60

Shri Vishnu Cement Sitapuram 1.00

CCI Ltd. Tandur 1.00

Andhra Cement (G) Visakapatnam 0.50

CCI Ltd. Adilabad 0.40

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Andhra Cement Nadikude 0.50

KCP Ltd. Macherla 0.40

Panyam Cements Bugganipalle 0.53

L & T – A.P. Tadipatri 2.00

India Cement – Visaka Tandur 0.90

STATE NUMBER OF PLANTS CAPACITY (MILLION TONNES)

Madhya Pradesh 20 26.03

Andhra Pradesh 16 18.03

Rajasthan 12 15.07

Gujarat 6 12.59

Maharashtra 8 6.41

Karnataka 10 6.92

Tamil Nadu 7 7.59

Bihar 3 4.62

Himachal Pradesh 6 3.47

Uttar Pradesh 3 4.05

Orissa 1 2.66

Punjab 2 1.04

West Bengal 1 1.13

Delhi 1 0.50

Haryana 1 0.17

Kerala 1 0.42

Jammu & Kashmir 1 0.20

Assam 1 0.20

Meghalaya 1 0.20

TOTAL 120 111.03

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COMPANY PROFILE

History:

My Home Industries limited (MHIL) is a private limited company originally

incorporated as “Devi Cements limited under the companies act 1956 with the main

objectives manufacturing and selling of cement and cement related products.

In the year 1998 Dr.J .Rameshwar Rao, one of the promoters has acquired the

share holding interest of other promoters. consequent to the change in the management,

the name of the company was changed to “ My home Cement industries limited’ and

since then there was substantial growth in the operations of the company. The company is

an ISO 9001 : 2000 certified company.

CORPORATE PROFILE

My Home Group is promoted by Dr. Rameswar Rao Jupally, a doctor by profession

entered into real estate business with an aim to deliver excellent and quality homes. For

Dr. Rao a house is not the four walls with empty space. It is something beyond them, it's

about the emotions, excitement and happiness. With this profound belief and philosophy,

He established My Home Group, with My Home Constructions Pvt. Ltd. as its flagship

company.

My Home Industries Ltd

Cementing trust and quality

My Home Industries, part of My Home Group, is one of the leading cementmanufacturers

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in South India. With three plants in Mellacheruvu (Nallagonda Dist), one newly

commissioned unit at Yalamanchili (Vizag Dist) My Home Industries has a total installed

capacity of 4.7 million tons per annum. With this, My Home Industries has become the

largest cement company in Andhra Pradesh in terms of installed capacity. The Brands

MAHA CEMENT and MAHA SHAKTHI have built a formidable reputation for quality.

My Home Industries also has a 15 MW captive power plant at Mellacheruvu unit.My

Home Industries has a 60 MW plant at Mellacheruvu which is being implemented by My

Home Power

MY Home constructions

Hosting Happy Communities

With the advent of My Home Constructions Pvt. Ltd. Hyderabad real estate market

landscape changed permanently. All the ventures of My Home Constructions have

become icons for world class standards and amenities. My Home Tycoon, My Home

Rainbow, My Home Navadweepa, My Home Hub are amongst 14 properties developed

by My Home that are popular landmarks in twin cities. So far My Home Constructions

have built about 30 lakh square feet of prime properties which are happy communities.

Latest offering, My Home Jewel, is a never before project in Hyderabad, with 2,016 flats.

Whereas, My Home groups all previous projects put together occupy a built up area of 30

lakh sft, My Home Jewel, truly a monumental project itself coming up in 31.5 lakh square

feet of built up area.

My Home Power Ltd

My Home Group entered into the power sector by acquiring naphtha based CCGT plant

in 2000 which later converted into a biomass based conventional plant. Over the years the

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company has achieved excellent operational results and today it has achieved the

distinction of being a debt free company. The company is amongst few companies in the

country to achieve 100% carbon credit approved by UNFCCC

Another feather in the cap of My Home Power is the establishment of My Home Power

Consultancy Services Limited in 2005. Today the company has clients like Visaka

Industries Limited , Ramky Pharma city Limited, Orissa Sponge Iron Limited, Aurobindo

Pharma and Amreli Power Projects Pvt. Limited to name a few. This is apart from the 15

MW captive Power Plant of MHIL and its 60 MW plant under implementation.

What is heartening is the fact that several assignments are in tech pipeline for the

company and most of which are from other states. In short it has become a pan-India

power consultancy company and has its sights trained on the neighbouring countries as

well.

Under the leadership of Dr. Rameswar Rao Jupally, My Home Industries Limited

(MHIL) has grown from strength to strength to its current annual capacity of 5 million

tonnes.

MHIL is a joint venture with CRH Plc, Ireland, the international leader in building

materials, operating in 33 countries across 3500 locations. Sharing the CRH vision of

excellence, MHIL has earned a reputation for quality, reliability and energy efficiency for

which it has bagged number of prestigious national awards. MHIL is today one of the

fastest growing cement companies in India.At MHIL, quality monitoring begins right

from the raw material, and is carried through to the finished product. Online X-Ray-

analyzers ensure quality at every stage of manufacturing. And a fuzzy logic system

operates all the equipment with total automation to ensure consistent quality. In

recognition of its quality drive, MHIL has been awarded the ISO 9001-2000 certification.

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With three manufacturing units located at Mellacheruvu in Andhra Pradesh, MHIL

produces 3.20 million tonnes of cement per annum. In addition, MHIL has set up a

cement grinding unit at Mulakalapalli, Andhra Pradesh, with a capacity of 1.50 million

tonnes per annum.

In a short time, Maha Cement has achieved phenomenal success in the whole of south

India as well as Maharashtra, Orissa, Bihar, Jharkhand, Chattisgarh, and West Bengal.

The next few years will see MHIL leave its mark all over India with a projected annual

capacity of 10 million tonnes.

Maha Cement is marketed through a wide network of over 2600 dealers spread all across

south India, Eastern India and Maharashtra. The MHIL marketing team delivers

exceptional services to its customers through 16 regional offices, 64 sales depots, and a

dedicated fleet of over 1200 trucks and bulk loaders.

Maha Cement has various brands under its name - Maha Cement (OPC 43 Grade), Maha

Gold (OPC 53 Grade), Maha Shakthi (PPC), Maha Shakthi (PSC). All of which surpass

the standards set by Bureau of Indian Standards (BIS).

Units & Capacity :

The company has three units located at Mellacheruvu village, ,Kodhada Taluka,

Nalgonda District . A.P.Unit I was set up in the year 1998 with a capacity of 1.98 lakhs

MT per annum.Over a period of time the capacity was increased to 8.25 lakhs MT per

annum.Unit=II was established in 2002 with a capacity of 6.60lakh MT per annum and

the same was increased to 10.15 lakhs MT per annum by modifications and additions to

26

plant & machinery and other assets and also by production of blended cement. Unit III

with a capacity to manufacture 13.60 lakhs MTs of cement per annum was set up during

March 200.Thus, the total capacity of 3 units works out to 32.00 lakh MTs per annum.

Types of Cement:

The company manufactures the products :

1.Ordinary Portland Cement(OPC)

43 grade

53 grade

2.Portland Pozzolana Cement(PPC)

Maha cement offers a product line to suit for every need.

Maha Gold – 53 grade high strength cement

Maha Shakthi- Quality blended cement (PPC)

Maha Cement-43 grade High strength cement.

My Home Cement Industry Ltd In India use Thermoteknix

High Temperature Infrared Cameras

My Home Cement Ind. Ltd have just commissioned Thermoteknix’s WinCem 3D

Graphic Kiln Shell Scanning System at their Mellacheruvu Village Nalgonda Dist Plant.

The newly installed system comprises the Thermoteknix Centurion Kiln Linescanner

working alongside.

27

WinCem 3D Graphic Software.

Centurion Kiln Shell Scanner

WinCem is established throughout the industry as the leading kiln scanning system. It

provides three dimensional live displays of kiln shell temperatures, brick work and

coating with virtual reality graphics presenting the kiln from any angle, position or

distance. My Home Cement presented a greater challenge in that that the company’s Head

Office in Hyderabad needed to be able to view the scan, live, with the data being

transmitted on-line from the kiln some 200km away from the plant in Nalgonda District.

The commissioning, which was carried out by Thermoteknix Indian agents SB

Engineers at the beginning of September, involved the system being made available via

an internet connection based in the Hyderabad Office. Real time kiln shell scan data is

now being relayed live from the plant to My Home Cement HQ, meaning that at HQ,

information can be viewed, monitored and assessed at any time.

It is now possible for decisions to be made and discussed between sites and HQ based on

up-to-date live data, as and when necessary, saving time and money for My Home

Cement. WinCem 3D Graphics alarms and outputs give a configurable, flexible user

interface ensuring continuous coating monitoring for all kiln conditions and improved

28

control via client-server fully networked software with multiple screen display

capabilities. WinCem is the only scanning system on the market to provide data as it is

scanned from the kiln – during each revolution of the kiln. Other systems update at the

end of every revolution.

My Home Cement Industries Ltd manufactures MAHA cement and is headed by

Chairman Dr. J. Rameswar Rao, a well known industrialist who attended the

commissioning and was delighted with the capabilities of the system.

SB Engineers was established by Mr Subodh Bhatt in 1991. The company represents

manufacturers both from within India and overseas and markets a range of industrial

products and services. They have a strong established presence in the Indian Cement

Industry and their technical expertise and after sales service are second to none.

My Home Industries, a cement sector company is planning to take up an

expansion programme at its unit located in Mellacheruvu Village in Nalgoda district of

AP. The project involves expanding the clinker capacity from 1.58 to 2.48 MTPA and

Cement production from 1.90 to 3.30 MTPA. A 15 MW captive power plant is also being

planned as a part of the project. Dry process pre-calcinatory technology will be used for

manufacturing cement. Continuous emission monitoring will be carried out in kiln/raw

mill stack and clinker cooler stack. Water spray and dust suppression system will be

provided to control fugitive emissions ESP in clinker cooler, bag house in raw mill/kiln

and bag filters in coal mill, cement mills, crusher. Ash generated from the 15 MW coal

based thermal power plant will be utilized in the cement plant for the manufacture of Port

land Pozzolona cement. The project is estimated to cost Rs. 2,030 million. As of June

2006, the project has obtained clearance from ministry of environment and forests.

29

MY HOME INDUSTRIES AIMED IN HYDERABAD:

Hyderabad: Aimed at gearing up to next boom in infrastructure and realty sectors in the

country, the Hyderabad-based My Home Industries Ltd plans to more than double its

capacity to 10-million tons in five years, said its chairman and managing director, J.

Rameswar Rao.

My Home, one of the largest cement manufacturers in Andhra Pradesh, now has a

capacity of 4.7-m tons. Rao said the company plans to initially double the capacity of its

slag cement facility to 3-m tons at Visakhapatnam to cater to markets in the Eastern India

with high demand for slag cement.

The company is also considering a plan to set up at least a 2-m ton Greenfield plant in the

borders of Andhra Pradesh and Karnataka to cater to down South markets, involving an

investment of some Rs1,000 crore.

Admitting that the South Indian cement market now has excess capacities, leading to

pressure on margins, he said, “We are preparing for a long-term game and gearing up

with capacities to meeting future demand.”

In a bid to spread its geographic presence both for manufacturing and marketing, My

Home is also considering a plan to enter the Central Indian market with a manufacturing

facility of 2-m ton at Rs1,000 crore investment, said Rao. Though the preference would

be on setting up Greenfield projects, the company is not averse to acquisitions with good

opportunity, he said.

30

My Home Industries plans Rs 400-cr investment

My Home Industries Ltd is investing Rs 400 crore in the expansion of its cement

plant near Visakhapatnam, development of two support rail links for transport of raw

materials and cement, and in setting up a 60 MW captive power project near the

Nalgonda project site.

The company, along with its Irish partner, CRH plc, is scouting for acquisitions in the

western region, where there continues to be shortage of cement supply, as against excess

production in the southern market.

The Chairman of My Home Industries, Mr J. Rameswar Rao, said the company is

augmenting capacity at the Vizag plant, which will take the total installed capacity to

about 4.5 million tonnes.

Faced with a severe power supply glitch in 2009-2010, which hampered cement

production in the State, the company has embarked on setting up a 60 MW captive power

plant with an outlay of Rs 250 crore.

This project will be ready for commissioning by December 2011. When completed, this

will take the installed capacity of the company's captive capacity up from 20 MW now to

80 MW. “We will consume 50 MW at two sites. This would also bring down the cost of

power by more than Rs 24 crore/annum. The cost of generation from the coal plant will

be about Rs 2.70 a unit as against nearly Rs 4 a unit from the State grid. In addition, we

will have the option to sell the excess power of 30 MW as merchant power,” he said.

Speaking to Business Line, Dr Rao said that the company had offered 50 per cent stake to

CRH plc for Rs 1,600 crore in 2008 and has been a debt-free company over the last few

years. All the expansion projects, including the power project, are being handled through

31

internal accruals. The company closed last fiscal with revenues of Rs 920 crore in 2009-

2010, which was lower than Rs 1,110 crore registered a year before, due to pricing

pressures and lower production due to power shortage.

“Over the last 15 years, we have seen different cycles of cement business and continue to

be upbeat on the prospects. Therefore, we are looking at projects in the West and North

for acquisition,” he said.

Along with the expansion of the cement unit, and setting up the power project, the

company is investing in setting up two rail links, one for the Vizag project and another for

the Nalgonda project with an outlay of Rs 20 crore. These will be ready by next year, he

said.

My Home Cement Industries Ltd neighborhood businesses

International Air Comforts : Air Conditioner - Dealers, Begumpet

Ispace Consulting & Recruiting : Educational Consultants, Ameerpet

Jaydurga Furnishings : Carpet - Dealers & Manufacturers, Ameerpet

Jersey : Milk Products, Begumpet

32

THEORETICAL FRAME WORK

Sales & Promotion:

The company has operated at optimum capacity utilization during last 4 years The

details of production and sales during the last 4 years are ,

The Company’s Cement is marketed under the brand “MAHA” which is highly

reputed in south India. The company has established very wide market networth with 180

dealers and 12 regional offices in the states of andhrapradesh , tamilnadu ,

Karnataka,orissa maharastra kerala and Chettisgarh. The brand MAHA cement has been

accepted and acknowledged as premium brand and hence the demand for the same is

continouously increasing.

PROMOTION :

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

33

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:-

Information

Persuasion

Reminding

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 nonpersonal communication by an identified

sponsor to promote product.

2. PUBLIC RELATION: -

It refers to programmes 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.

34

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

5. 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.

Definitions:

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.

35

NATURE OF SALES PROMOTION:

It is short term

It provides incentives

It aims at quicker response

It is directed at target audience

OBJECTIVE OF SALES PROMOTION:

Objective for consumer promotion:-

o Encourage greater purchase volume

o Attract new customer

o Introduce new products

Objective for trade promotion:-

o Carry and push new item

o Increase reseller’s inventories

o Attract new channel members

o Offset competitive promotion

o Better store display

Objective for sales force promotion

o Motivate sales force

o Support new product

36

What is sales promotion?

Sales promotion is any initiative undertaken by an organisation to promote an

increase in sales, usage or trial of a product or service (i.e. initiatives that are not covered

by the other elements of the marketing communications or promotions mix). Sales

promotions are varied.

Often they are original and creative, and hence a comprehensive list of all

available techniques is virtually impossible (since original sales promotions are launched

daily!). Here are some examples of popular sales promotions activities:

(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating

promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to

manufacture, if you sell two for $1, you are still in profit - especially if there is a

corresponding increase in sales. This is known as a PREMIUM sales promotion tactic.

(b) Customer Relationship Management (CRM) incentives such as bonus points or

money off coupons. There are many examples of CRM, from banks to supermarkets.

(c) New media - Websites and mobile phones that support a sales promotion. For

example, in the United Kingdom, Nestle printed individual codes on KIT-KAT

packaging, whereby a consumer would enter the code into a dynamic website to see if

they had won a prize. Consumers could also text codes via their mobile phones to the

same effect.

(d) Merchandising additions such as dump bins, point-of-sale materials and product

demonstrations.

37

(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each

sandwich purchase. Once the card was full the consumer was given a free sandwich.

(f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their

customers with the latest low-price deals once new flights are released, or additional

destinations are announced.

(g) Joint promotions between brands owned by a company, or with another company's

brands. For example fast food restaurants often run sales promotions where toys, relating

to a specific movie release, are given away with promoted meals.

(h) Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in

supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to

potential consumers at supermarkets, in high streets and at petrol stations (by a

promotions team).

(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.

(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on

The Internet, and on packs.

(k) Cause-related and fair-trade products that raise money for charities, and the less

well off farmers and producers, are becoming more popular.

(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.

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

(a)Consumer promotion method

38

Free sample

o Coupons

o Rebates

o Premium

o Price off

o Contests

o Display/Demonstration

(b)Trade promotion methods

Free goods

o Allowance

o Prices-off

o Sales contest

o Gift items

o Credit facilities

o Trade show

(C)Sales contests

o Trade shows and conventions

o Gift items

o Promotional kits

o Bonus and commissions

FUNCTIONS OF SALES PROMOTIONS:

Sales promotion is a short-term marketing strategy designed to achieve a specific

purpose. Sales promotion differs from advertising in that its intent is to create a

sense of urgency to encourage immediate action as opposed to building sales or a

brand over a long period of time. Sales promotion may take the form of a

temporary price reduction or a campaign to introduce an item.

39

Production Differentiation

Use of sales promotion techniques helps to differentiate your products from

those of your competitors. This is especially beneficial is your products offer

essentially the same features and benefits as others on the market. A method often

used to make products stand out is to offer them at a slightly reduced price for a

short period of time.

Attract Customers

Sales promotions are used to attract customers during periods of slow sales. For

example, if you offer a seasonal product such as barbecue grills, by running a

promotion in the middle of winter where the price is reduced by 50 percent may

encourage people to buy a grill at a time where it might not otherwise cross their

mind.

Increasing Market Share

Sales promotions can lead to an increase in market share for the manufacturer.

The promotion will likely increase your sales by taking away sales from your

competitors. As a result, your market share will increase while your competitors'

share decreases.

New Product Introduction

Retailers can use sales promotions to introduce a new product. By offering the

new item at a reduced price and placing a "new item" sign in front of it, they can

persuade customers to give the new product a try. At the same time they can

discontinue a slow-moving item in the same category by marking it down and

40

placing a "reduced for quick sale" sign in front of it. This technique has the effect

of keeping the category fresh while freeing up needed shelf space.

Inventory Control

Sales promotion can help retailers limit out-of-stock situations by allowing them

to purchase large quantities at a reduced price. This can be especially

advantageous to the retailer for items that are popular sellers that can be difficult

to keep on the shelf.

Advertisement:

The pivotal aspect of any management effort is the development of meaning full

objective. In the same way the main objective of advertisement is to help raise the level of

sales. The increase in sales is due to many factors, out of which advertisement is one and

it is difficult to isolate its contribution to the increased sales. The other factors include

price, Distribution, Packaging, Product Features, Competitors action and changing buyers

need and taste.

A basic communication task in which advertisement excels is to create awareness

of a product. Awareness can be particularly needed when the global is to stimulate a trial

purchase to consumer who is already using some other brand. It is recognized that

advertisement is mass, Paid communication that is intended to create awareness, impart

information, develop attributes or induce action.

Advertising is seen as influencing consumer attitudes and purchase behaviors. An

advertisement exposure can increase brand familiarity, communicate brand attributes and

41

benefits and develops an image and personality for the brand, associate specific feelings

with the brand and directly induce action.

Definition:

“Advertisement is any paid form of in personal presentation and promotion of

ideas, goods or services by an identifies sponsors.”

Price:

the price of a product is perhaps the single most important factors, which affects

the sales. The fixation of price can either increase the sales and demand or else decrease.

The law of demand says that “ if price of a commodity increases then the demand of that

commodity decreases and vice verse” there fore for good marketing price mix must be

appropriate for that market segment that suits the consumer requirement and satisfaction.

Distribution:

A marketing channel or a distribution channel is a path traced in the direct or

indirect transfer of the product from the producer to the ultimate customer.

A marketing channel performs the work of moving goods from producers to

consumers. It overcomes the time, place, possession gaps that separates gods and services

from those who would use them.

A manufacturer can have his own distribution channel and supply the products

directly to the consumers. But this can be done by manufacture who can afford to

establish their own

42

The distribution channel

It is defined as a chain of intermediaries, each passing the product down the chain

to the next organization, before it finally reaches the consumer or end-user. This process

is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains

will have their own specific needs, which the producer must take into account, along with

those of the all-important end-user.

A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers,

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just

as important for moving a service from producer to consumer in certain sectors, since

both direct and indirect channels may be used. Hotels, for example, may sell their

services (typically rooms) directly or through travel agents, tour operators, airlines, tourist

boards, centralized reservation systems, etc.

If we mention in a single sentence the distribution channel is nothing but it is a process of

transfer the products or services from Producer to Customer or end user.

There have also been some innovations in the distribution of services. For example, there

has been an increase in franchising and in rental services - the latter offering anything

from televisions through tools. There has also been some evidence of service integration,

with services linking together, particularly in the travel and tourism sectors. For example,

links now exist between airlines, hotels and car rental services. In addition, there has been

a significant increase in retail outlets for the service sector. Outlets such as estate agencies

43

and building society offices are crowding out traditional grocers from major shopping

areas.

Distribution Network

The marketing flow in the marketing channel of Maha Cement

Maha Cement Company distributes the cement both directly and through

middleman. It has its own sales branches to market its product. The sales branches are

situated in different part of the states and country so that the branches can have friendly

relation with the dealers. The various sales branches have their own go downs to store the

product Channels and it is not only the affordability that counts, but the economic

feasibility should be properly checked.

44

Customers

MANUFA

CTURER Manufacture

r Sales

Depot.

DealerConsumer

Governments / Contractors / Dealers Consumers

Dealers Sales

Channels of Distribution

Direct Channels Indirect Channels

01. Mail Order Business 01. M – W – R – C

(Manufacturer, Wholesaler, Retailer,

Consumer)

02. Chain Stores 02. M – W – C

(Manufacturer,

Wholesaler, Consumer)

03. His Own Depot 03. M – R – C

(Manufacture, Retailer,

Consumer)

These are located in 19 cities in 7 states:

The following are the sales branches

45

Various channel of distribution:

The most common route used for bringing the products in the market from

producer to consumer as fllows.

1. MANFACTURER-CONSUMER-USER CHANNEL(DIRECT SALE):

There are three alternatives in direct sale to consumers :

mail order selling

house to house convassing.

Sale through retail shops of manfacturer.

This is a shortest channel a product can follow to the market. Bussiness goods

directly sold to the bussiness buyers.

2. MANFACTURE_ RETAILER-ULTIMETE CONSUMER:

This channel option is preferable when buyers are large retailers, e.g., a

department store, discount house, chain stores, supermarket, big mailorder

house, or co-operative stores.

3. MANFACTURER-WHOLESALER-RETAILER CONSUMER:

This is a normal, regular and popular channel options used in grocieries,

drugs, drug goods etc. it is suitable for a producer under the given

conditions.

he has a narrow product line.

he has a limited finance.

wholesalers are specialised and can provide strong promotional

support.

products are durable and not subject to physical deterioration or

fashion changes.

46

4. MANFACTURER-AGENT-WHOKLERSALER-RETAILER CONSUMER:

In this channel the products usees the servixce of an agent

middleman such as a sole selling agent, for the initial dipersion of goods. –

the agent may run distribute to the wholesalers.

Channel motivation

It is difficult enough to motivate direct employees to provide the necessary sales

and service support. Motivating the owners and employees of the independent

organizations in a distribution chain requires even greater effort. There are many devices

for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a

better margin, to tempt the owners in the channel to push the product rather than its

competitors; or a compensation is offered to the distributors' sales personnel, so that they

are tempted to push the product. Dent defines this incentive as a Channel Value

Proposition or business case, with which the supplier sells the channel member on the

commercial merits of doing business together. He describes this as selling business

models not products..

Depots: All Together 12 Maha cement Depots

47

RESEARCH METHODOLOGY:

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 Maha 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 Maha Cement.

RESEARCH PLAN :

Definition of research problem

The research problem can be defined as follows

1. `What are the cement being used by various customer in the region of

Hyderabad and what are their expectation from the cement.

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

DATA COLLECTION:

The descriptive nature of research necessitates collection of primary data from

retailers through market survey, personal interview technique was used and interview

48

01. Nalgonda

02. Vishakapatnam

03. Hyderabad

04. Adilabad

05. Nizamabad

06. Vijayawada

07. Nellore

08. Chennai

09. Bangalore Site

10. Chandrapur

were conducted through structured questionnaire the question 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.

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.

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 Maha Cement for the area of Hyderabad

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

49

Hyderabad market. The interview of retailer 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,

o Rank- 1 For the most favorable alternative

o Rank- 2 For the moderately favorable alternative

o Rank- 3 For unfavorable alternative

o Rank- 4 For most unfavorable alternative

o 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.

50

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.

51

DATA ANALYSIS PRESENTSTION AND

INTERPRETATION

1.Which brand do you prefer most?

ANALYSIS, PRESENTSTION AND INTERPRETATION 1:-

Dealers brand preference:-

COMPANY NO OF DEALERS PERCENTAGEMaha Cement 24 12Konark 60 30Ulteratech 36 18Acc 36 18Ambuja 14 7Century 12 6Grasim 8 4Duncan 10 5Total 200 100

52

Analysis and Interpretation:-

Obviously, maximum dealer, which are about 78 percent, come with Konark, Acc,

Ultratech or Maha Cement, And 22 percent either confused or dependent on seasonally

available brand for the Cement

2.WHICH BRAND DO YOU STORE?


Dealer’s preference for the storage of cements brand:-

COMPANY NO OFDEALERS PERCENTAGEMaha Cement 40 20Konark 50 25Ulteratech 22 11Acc 24 12Ambuja 18 9Century 24 12Grasim 12 6Duncan 10 5Total 200 100

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Most of the dealers prefer to store either Maha Cement or Konark. 20% of the

dealer choice is Maha Cement where as 25% of the dealers choice is Konark. Remaining

35% of the dealers inclined towards the Acc, Ultratech and Century. Remaining 20% of

the dealer gives equally importance to the Ambuja, Duncan and Grasim.

3.Which brand does your customer prefer?


Customer inclination towards the cement brand:-

COMPANY NO OF DEALERS PERCENTAGE Maha Cement 24 12Konark 60 30Ulteratech 36 18Acc 36 18Ambuja 14 7Century 12 6Grasim 8 4Duncan 10 5Total 200 100

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78% of the customers are brand loyal. And 22% of the customers are price

sensitive they go with that brand which has fewer prices. In case of brand equity Maha

Cement lies in No. four.

4.What is the Avg. monthly sale of different brands of cement? ANALYSIS, PRESENTSTION AND INTERPRETATION 4:-

Average Monthly sale of cement:- COMPANY CONSUMPTION PERCENTAGE Maha Cement 1365 13Konark 2651 27Ulteratech 1548 15Acc 1890 19Ambuja 640 6Century 750 7Grasim 625 6Duncan 685 7Total 10154 100

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This data show that the maximum consumption of cement brand in the region of

Hyderabad is Konark cement which is about 26% of the total sales of the cement. Maha

Cement is on the no. fourth position which is about 13% of the total sale of cement

5.Rank the companies stockiest on the basis frequency of making personal visits & ph calls.


Dealers rank the companies stockiest on the basis of frequency of making personal visits

COMPANY TOTAL OF RANKMaha Cement 562Konark 656Ulteratech 430Acc 450Ambuja 515Century 380Grasim 420Duncan 470Total 3883

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Analysis and Interpretation:- From this data we can conclude that only the weak brands stockiest are preferred

by the retailers. Strong brands stockiest are not given the proper consideration towards the

retailers. All the giant brands are ranked as 3 or 4 where as all the loose brands retailers

are ranked as1or2.

6.Which Companies stockiest inform you about the change in the market price faster?


Company that provides information to the retailer about the price change in the near future:-

COMPANY NO OF DEALERMaha Cement 15Konark 10Ulteratech 21Acc 22Ambuja 26Century 38Grasim 36Duncan 32Total 200

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More than 100 of retailers said that Century or Grasim or Duncan provide the

preinformation about the future price change. This helps them to take precautionary

action against the future happenings.

7.How much credit in days do you enjoy from the stockiest of following companies?

ANALYSIS, PRESENTSTION AND INTERPRETATION 7. :-

Credit period facilitate by the companies stockiest to the retailer

COMPANY NO OF DAYS Maha Cement 15 Konark 10 Ulteratech 21 Acc 22 Ambuja 26 Century 38 Grasim 36 Duncan 32 Total 200

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The entire market leaders (Maha Cement, Konark, ACC, Ultratech) of cement

industries provides relatively less credit period (i.e. less than 50 days) to their stockiest

due to which the stockiest are not able to provide the sufficient credit in days to their

retailers. Where as the newly entered cement brand provides sufficient credit in terms of

quantity as well as in days to their retailers. That’s why their growth rate is relatively

high.

8.Maximum profit you get out of selling various brands rank them?


Maximum share of profit of retailers comes through the selling of the cement:-

COMPANY PROFITMaha Cement 35Konark 45Ulteratech 38Acc 37Ambuja 14Century 17Grasim 8Duncan 6Total 200

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Only 35 retailers said that their maximum profit comes through Maha Cement.

Similarly 45, 38, and 37 retailers said that their maximum profit comes through Konark,

ACC, and Ultratech respectively.

9.Rank sales promotion activities according to their effectiveness?


Retailer’s belief towards the activity that influences sales of the cement:-

ACTIVITIES RANKSShops naka and mason 14Gift 37Incentive 49Hoardings 66Others 34Total 200

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Sixty six retailers out of two hundred which is 33%, beliefs that Hoardings

influence the sales of the cement. Incentives also play vital role in the promotion of the

goods.

10.Rank sales promotion activities according to their effectiveness? ANALYSIS, PRESENTSTION AND INTERPRETATION 10:-

Retailers’ preference towards the gift:-

GIFTS NO OF DEALERSShare 14Tour 40Gold 39White Gold 12Cheque 29others 66Totals 200

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Most of the retailers do not want to say about the gift. But after asking again and

again their preference are out of the available optioned e.g.:-TV, Camera, cycle, trophy,

etc. Out of two hundred 40 preferred tour, 39 preferred gold, 29 preferred cheque, 14

preferred share and 12 preferred white gold.

11.Give your raking to the cement companies in their sales promotion activities


Retailers rank the cement company on the basis of the sales promotional activities:-

Company Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total (Retailers)

Maha Cement 20 40 80 25 35 200

Konark 60 55 47 38 0 200

Ultratech 20 25 32 78 45 200

Acc 20 71 57 27 25 200

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Ambuja 12 14 45 68 61 200

Century 13 45 68 52 22 200Grasim 50 68 58 24 200

Duncan 30 62 82 26 200


From the interpretation of the data, we come to know that Konark and ACC are on

no.1 and no.2 respectively. Maha Cement is on no.3. Because 30% of the retailers believe

that Maha Cement is on no three. Century, Grasim, and Duncan are making extra effort to

penetrate the market. Every retailer mentioned their name and mentioned their

considerable effort.

12.What is the general price gap (BP-RP) between the following companies?


The profit on per bag of cement:-

COMPANY PRICE GAP ON PER BAGMAHA CEMENT 6

KONARK 5ULTRATECH 6

ACC 6AMBUJA 7.5

CENTURY 8GRASIM 10

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DUNCAN 10


Lafarge charges competitive price to the customer. Some of the company charges

premium price like OCL where as some of the brand has very less price like Grasim,

Cemtury and Duncan. Price of Maha Cement is always equal to the price of Ultratech,

ACC.

13.Rank the companies on the basis of their transportation facilities?


Companies are ranked on the basis of the transportation facility provided by them:-

Company Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total (Retailers)

Maha Cement 70 65 28 25 12 200 Konark 23 25 15 72 65 200 Ultratech 40 70 65 25 0 200 Acc 20 67 90 20 3 200 Ambuja 15 14 45 90 36 200 Century 85 78 37 0 0 200 Grasim 80 75 38 7 0 200

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Duncan 95 62 43 0 0 200

Analysis and Interpretation: - Transportation facility is a very vital factor for a brand to be successful in the

market; Maha Cement has proved itself in this area as they are having the best reach in

the urban area not in the rural area.

14.Rank the companies on the basis of their cement delivery time?

ANALYSIS, PRESENTSTION AND INTERPRETATION 14:- Companies are ranked on the basis of the cement delivery time:-

Company Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total Maha Cement 114 53 33 0 0 200 Konark 91 82 27 0 0 200 Ultratech 0 82 91 12 15 200 Acc 82 78 39 1 0 200 Ambuja 14 25 97 61 3 200 Century 42 12 83 42 21 200 Grasim 11 24 45 21 99 200 Duncan 21 37 49 68 25 200

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Maha Cement is quite ahead in the race in regards to the delivery option, as many

retailers says that a small quantity of cement bags are not delivered by most of the

company on time, they say that ar least you need carry 200 bags and so on, but Maha

Cement are willing to accept and delivery any amount of bag at any time.

15.Rank the company on the basis of their Marketing Representative’s frequency of visit.


Company Rank 1

Rank 2

Rank 3

Rank 4

Rank 5

Total no of the retailers

Maha Cement

85 75 40 0 0 200

Konark 78 65 42 15 0 200Ultratech 45 66 74 15 0 200Acc 47 52 41 51 9 200Ambuja 23 45 65 25 42 200Century 62 68 47 23 0 200Grasim 23 42 37 47 51 200

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Duncan 65 74 54 0 7 200


Maha Cement’s marketing representatives are too much concern towards the

customer’s welfare. So they visit almost retailers ones in a week. Where as other

companies’ marketing representative visit the counter only twice in a month.

FINDING

On an average almost all the employees are satisfied the way rewards and

recognition is awarded to them. That shows the company is offering awesome

benefit package to the employees.

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Only 60% of the employees are of the view that they are having long term job

security it is a good percentage but still 25% are in different. So company should

try to win the faith of them.

A good and effective relationship among the employees and superiors is the sing

of trust and understanding which Maha Cement is witnessing as 75% of them are

satisfied with the relationship with superiors.

In Organization employee feels that they are allowed to participate in decision

making this reflects professionalism of the company.

Employees are given a chance to deal with problem situation; they are allowed to

approach their seniors for any problem situation. Most of the employees (90%) are

satisfied with problem solving mechanism available in the company.

Encourages, focuses on improvements – achieved or possible; creates trust and

cooperation

Increases confidence in ability and potential of workers

Leaves person feeling 'helped' and inspired

It is based on observations, repeated if possible.

OTHER REASONS STATED BY RETAILER FOR BRAND PREFERENCE:-

MAHA CEMENT :

o Better quality

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o Good name in the market

o Timely available

o Immediately respond on the competitors strategy.

o Relatively less price.

o Better packaging

ULTRATECH

o Sells easily in the market the customer demand for them.

o Customer choice.

o Good name in the market as it carries the goodwill of L&T.

o High market awareness.

o Sells more

CENTURY

o Good relationship with the company people.

o Price is low and affordable for people

o Low price helps to sell easily.

o Quality is good.

o More profit selling the brand.

o Good service and relationship

ACC

o People ask for ACC.

o Service is good.

o “Dhalai karne ke liye” people ask for ACC.

o Very superior quality cement as compared to others

o Selling form the very first day the shop came in to being & sells

easy (shree ganesh traders, bhatagaon)

AMBUJA

o Customers preference

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o Good cement, plastering work is good

GRASIM (Birla plus)

o Customers choice.

o Price is suitable as per customers pocket

o Rate & profit

o Good relationship with the people at Grasim.

o Birla is a very renowned name so people trust it.

DUNCAN

o Rate & profit

o Price is suitable as per customers pocket

o Service is good.

PROBLEM FACED BY STOCKIEST:

o None of the stockiest had any complains about any brands, in regards to the

price, transport, service etc

o Dispatch being closed at the start of the month is a ”trump card “for them to play

in the market to push the sale.

o Stockiest are satisfied with the companies service.

RETAILERS REGRETS (Maha Cement):o The stockiest occasionally inform about the price change in the market.

o They do not make personal visits to the counters frequently.

o Price should be stabilized in the market.

o Price stability in regard to the price set by the company as well as wholesalers (i.e.

all the wholesalers should have the same price offered in the market).

o The management should not interfere in the price offered by the counterperson to

the customers.

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o They need price flexibility to shoot up the sale.

o Dispatch being closed every start of the month is a problem is a problem for them to

stick to the commitments made by them to the customers.

o Small quantity ordered is not furnished on time.

o Pressurize them for taking more quantity for more quantity for transportation

facility.

o Maha Cement now does not give any gifts at the counters.

SUGGESTIONS

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A very exhaustive study has been made, keeping in the essence of the objective of

the project. With the efforts put on the project a detailed analysis was conducted

and result were derived, based on the results and market response few suggestions

are discussed below

A Price fluctuation creates problems for retailers as the cannot keep the

commitments of price to customers……

The reach to the rural market need to be strengthened

Transportation to rural areas need to be strengthened, a significant amount of

business is lost because of this.

At time it has been seen that the delivery commitments an the side of the company

is not prompt, this creates a bad name and again business is lost

On interviewing Dealers/Retailers the most important thing they said was about

the price flexibility, they want that the company should give them the price

flexibility to play in the market. (As the company has outlined that the price

offered by the company should only be offered to the customer, it should not

increased to the customer, it should not be increased or decreased).

The Brand Name Lafarge is quite difficult to be pronounced and remember, so it

should be made short and easy for the rural masses to remember like (L&T).

CONCLUSION :

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

market of Hyderabad. The market research has revealed many facts and figures about the

cement scenario in the market prevailing.

In the market, Lafarge cement is well known brand of cement. This is the result of the

good quality of the Maha cement along with their effective marketing efforts, which

covers the whole market customers of Maha 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, Maha 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.

QUESTIONNAIRE

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1. Which brand do you prefer most?

Maha

Cement

Konark Ambuja Century Ramco Acc Ultratech Duncan Grasim

2. Which brand do you store?

Maha

Cement


3. Which brand does your customer prefer?

Maha

Cement


4. What is the Avg. monthly sale of different brands of cement?

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Co. Maha

Cement

Konark Ambuja Century Acc Ultratech Duncan Ramco Grasim

Tones/bags

5. Rank the companies stockiest on the basis frequency of making personal visits & ph

calls.

Co. Maha

Cement


Ranks

6. Which Companies stockiest inform you about the change in the market price faster?

Maha

Cement


7. How much credit in days do you enjoy from the stockiest of following companies?

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Co. Maha

Cement


No. of

bags/days

8.. Maximum profit you get out of selling various brands rank them?

Co. Maha

Cement


Ranks

10. Rank sales promotion activities according to their effectiveness?

Activities Rank Shop Naka & Manson Meet Gifts Incentives Hoardings Others

11. Give your raking to the cement companies in their Sales promotion activities

Company RankMaha Cement

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Konark

Ultratech

Acc

Ambuja

Century

Grasim

Duncan

12. What is the general price gap (BP-RP) between the following companies?

Maha Cement


13. Rank the companies on the basis of their transportation facilities?


Konark

Ultratech

Acc

Ambuja

Century

Grasim

Duncan

14. Rank the companies on the basis of their cement delivery time?

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Konark

Ultratech

Acc

Ambuja

Century

Grasim

Duncan

15. Rank the company on the basis of their Marketing Representative’s frequency of visit.


Konark

Ultratech

Acc

Ambuja

Century

Grasim

Duncan

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BIBLIOGRAPHY

BOOKS

1. Research Methodology: C.K. Kothari

Wishwa Prakashan Darayaganj

New Delhi

2nd Edition-1995

2. Marketing Management: Philip Kotler

Prentice- hall of India Pvt. Ltd.

New Delhi-110001

8th Edition -1995

WEBSITE

1. www.lafarge-cement.co.in

2. www.google.com

3. www.ibef.org

4. www.msn.com

5. www.indianexpress.com

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