Indore Indira Business SchoolDAVV UNIVERSITY INDORE (M.P.)

A

SUMMER TRAINING REPORT

ON

Market Position of Prism CementBY

Ujjwal Singh

MBA 3rd SEM.

UNDER THE GUIDANCE OF

Mr. Jalaj Shrivastava

A PROJECT REPORT SUBMITTED IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS AND ADMINISTRATION OF

DECLARATION OF STUDENTI UJJWAL SINGH HERE BY DECLARE THAT THE PROJECT REPORT ENTITLED MARKET POSITION OF PRISM CEMENT LTD. SUBMITTED BY ME IN PARTIAL FULLFILMENT OF THE REQUIREMENT FOR THE M. B. A. TO DAVV UNIVERSITY INDORE, IS MY OWN WORK AND IT IS NOT SUBMITTED TO ANY OTHER INSTITUTION OR PUBLISHED ANY WHERE BEFORE.

WITH REGARDS,

PLACE: SATNA(M. P.)

DATE:

UJJWAL SINGH

CERTIFICATE

This is to certify that Project Report title MARKET SURVEY OF SALES PROMOTION IN AREA OF SATNA REGION FOR PRISM CEMENT LTD. is a bonafide work carried out by Prakash Pandey of MBA of B.U. Bhopal in the year 2009-2010 for fulfillment of MBA degree of university of B.U.. He has worked under our guidance and direction.

With regards,

Place: Satna (M.P.)

Date:

Acknowledgement

Interdependence is a higher value than independence Knowledge in itself is a continuous process. Nevertheless, a day getting a practical knowledge is an important thing & most important thing is the support, guidance, motivation and inspiration provided by the different persons of different sections. At this moment of our substantial enhancement, I find no words to express my gratitude towards those who helped me directly or indirectly in making this report successful. I am indebted & thankful for the assistance received from various individuals So I think all those people who contributed to this project from the very beginning till its successful completion. This project report could not have been completed guidance of our Prof Jayesh Tiwari . I extended to my sincere gratitude to Mr. Jalaj Shrivastava GM-Sales of the Prism Cement Limited of Satna warehouse. For his constant and able of guidance has been instrumental in large measure on the success of project. He suggest this study, and it has been great opportunity to learn about a subject of which had no previous knowledge for this, I am very grateful to him. I also extend my warmest thanks to Mr. Ravi Singh whose constant encouragement and guidance was immense help for being on track through the project. Last but not least I would like to thanks my faculties & colleagues who guided me for project completion.

Table of Contents

Project – Overview

1. Introduction

2. Objective

3. Research Methodology

4. Company Profile

5. Theoretical Background

6. Conclusion

7. Suggestions

8. Limitation

9. Bibliography

INTRODUCTION

Cement is a binder which sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term "opus caementicium" to describe masonry which resembled concrete and was made from crushed rock with burnt lime as binder. Cement is an essential component of infrastructure development and most important input of construction industry, particularly in the government’s infrastructure and housing programs, which are necessary for the country’s socioeconomic growth and development.

Cement ranks second in volume among the industrial products manufactured in the world. And it is the most widely used man-made product and second only to water as world’s most heavily consumed substance. Cement is poly-phased inorganic compound of complex nature formed by burning of calcareous and argillaceous raw materials as a binding material. Cement is used as a binding material in various types of civil constructions. Earlier, clay or lime was used for binding materials together. Its properties include-

Low cost, high performance Binder with almost any hard material Building block Gain strength progressively with ageing Substitutes with steel, polyester, epoxy-resin, plasticizers

With advancement in manufacturing technology, today cement is a completely technical product. Various types of grades of cement are being manufactured to satisfy different needs of the construction industry. However, cement is still considered as a non-technical product and used in a traditional and often unscientific manner. Compressive strength is the important known parameter for approving the quality of cement. Strength of cement is also affected by water-cement ratio, grading of aggregates, methods of preparation, methods of compaction, curing conditions and atmospheric conditions.

Cement is the preferred building material in India. It is used extensively in household and industrial construction. Earlier, government sector used to

consume over 50% of the total cement sold in India, but in the last decade, its share has come down to 35%. Rural areas consume less than 23% of the total cement. Availability of cheaper building materials for non-permanent structures affects the rural demand.

The Indian Cement industry is the second largest cement producer in the world. The industry has undergone rapid technological upgradation and vibrant growth during the last two decades, and some of the plants can be compared in every respect with the best operating plants in the world. The industry is highly energy intensive and the energy bill in some of the plants is as high as 60% of cement manufacturing cost. Although the newer plants are equipped with the latest state-of-the-art equipment, there exists substantial scope for reduction in energy consumption in many of the older plants adopting various energy conservation measures.

There are around 11 different types of cement that are being produced in India. The production of all these cement varieties is according to the specifications of the BIS (Bureau of Indian Standards). Some of the various types of cement produced in India are:

Clinker Cement

Ordinary Portland Cement (OPC)

Portland Blast Furnace Slag Cement (PSC)

Portland Pozzolana Cement (PPC)

Rapid Hardening Portland Cement

Oil Well Cement

White Cement

Sulphate Resisting Portland cement

The production of PPC and PSC are based on Fly Ash and Blast furnace slag, the waste product of Thermal Power Plant and Steel Plant respectively.

Today it is fashionable to talk about the new economy. We hear that the business are operating in globalize economy; things are moving at a nanosecond pace our market are characterized by hyper competition and disruptive technologies are challenging every business and so business must adopt to empower consumer.

To become successful in such a competitive environment the business organizations have to be customer oriented. Customers need and want must be taken care of. Built customer and not only products. Customer must be delighted. This information about the market could be collected by the way of proper market survey. Rom the market survey we get the feed about the good or services of the organization .For this purpose the said project work is undertaken.

The project was carried out for knowing prevailing market condition of Prism Cement in Satna Region .The second objective of the project was to study the sales promotion activities undertaken by Prism and its other competitors.

OBJECTIVE OF THE PROJECT

This project was undertaken for two main objectives was

To carry out market survey for knowing prevailing market condition of Prism Cement Limited in Satna (Madhya Pradesh). To check awareness of Retail shop owner about the product.

To study the sales and promotion activities undertaken by Prism cement

and other player in the market. To check if there is some scope for increasing sales

through some new promotional schemes

To attain these objectives various other sub objective are needed to be achieved. These are listed below.

To analyze the market share of prism Cement in Satna market.

To know the customers preference for the brands of cement.

To know the preference of retailer for sorting different brands of

cement.

To understand the effectiveness of various sales promotion activities of

cement.

To know preference of retailers for different gift and incentives.

To analyze the sales promotion activities of various brands.

To analyze the transportation facilities for Prism and other cement

companies.

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

Thus it attempt to find ways to increase market share, to increase customer satisfaction and thus increase the business prospects.

Scope of the study

1. The study has been done for the Cement so more or less it helps in understanding the consumer preference towards the cement market.

2. The study can help in analyzing certain weak point, improving on which a company can overcome the low sales of its cement but only in Satna region

Research Methodology

Since the cement is a core product and being used by all types of consumers, so our focus for collection data was each and every man who are directly or indirectly involved with the sale or use of cement such as stockists, dealers, civil engineers, contractors, individual customers, masons, etc.

To know the position of Prism Cement in the trade and non-trade segment regarding sale in comparison with the other brands on the basis of attributes of cement has been done. For this purpose, opinion of stockists, dealers, engineers, contractors, architects and builders (who posses knowledge regarding different brands available in the market) has been taken. This might be helpful to draw the right picture about the market scenario.

This was convenient in nature because I would have to account only those people who actually require or purchase cement in bulk quantity. The survey is conducted with the help of questionnaire method and survey is conducted in the Satna region.

Every type of research requires two types of data to be collected to reach up to any conclusion.

Primary Data are those data, which are directly obtained from people by approaching them individually, primary data are generated when the researcher employing mail questionnaire, telephone surveys, personal interviews, observations and investigates a particular problem at hand.

For this project primary data was collected from stockists, dealers, engineers, contractors, architects, masons and builders by using survey method. Data

collection from respondents was carried out with the help of a structured interview schedule. In this method data was collected from respondents through questionnaires.

Secondary Data, on the other hand, includes those data, which are collected in the past for other research work and are being used in current project work.

Secondary Data, such as procedures of marketing for cement, marketing conditions, brief details of M/s Prism Cement and other competitors, price, quality, and other strategy and planning, specification in relation to other cement companies, all other information which can be useful to complete this project, was collected for Sales and Marketing Department of Prism Cement. Published Documents of Prism Cement and other competitors’ cement plants have also been used for collection of secondary data.

COMPANY PROFILE

'Prism Cement Limited is an ISO 9001: 2008, ISO 14001: 2004, OHSAS 18001: 2007 & SA 8000: 2008 Certified Company promoted by the Rajan Raheja Group. It operates one of the largest single kiln cement plants in the country at Satna, Madhya Pradesh. Equipped with state-of-the-art machinery and technical support from F.L Smidth & Co A.S Denmark, the world leaders in cement technology, Prism Cement has successfully created a niche for itself in the Indian cement industry.

The Company is managed by a focused Board comprising of eminent experts from diverse fields ably supported by a professional management team. The Management team ensures high levels of transparency, accountability and equity in all facets of the company’s operations.

Our Vision

To be acknowledged as a leading player in the industry with the highest level of integrity.

Our Mission

• State of the art cement plants• Transparent dealings with all stakeholders• Committed to the principles of good corporate governance

Product

Prism Cement manufactures and markets Portland Pozzollana Cement (PPC) with the brand name ‘Champion’ and the full range of Ordinary Portland Cement (OPC) of 33, 43 and 53 Grades.

‘Champion’ Prism’s largest selling product is general-purpose cement popular for all applications during house construction by individuals. Prism Cement’s OPC is in demand for specialised cement concrete applications like high-rise buildings, bridges, manufacturing AC sheets, pipes, poles etc.

Rich deposits of high quality limestone, highly automated and sophisticated controls ensure that the cement manufactured by Prism meets the highest quality standards. All the cement manufactured by Prism Cement carry the BIS Certification Mark. In fact, the strength and other characteristics are much higher than the BIS requirements. Excellent quality has placed Prism Cement in the premium price segment.

OverviewPrism Cement Limited is an India-based company, which is engaged in cement business. Prism Cement manufactures and markets portland pozzollana cement (PPC) with the brand name Champion and a range of ordinary portland cement (OPC) of 33, 43 and 53 Grades. The Company’s OPC cement is used for specialized cement concrete applications, including high-rise buildings, bridges, manufacturing asbestos cement (AC) sheets, pipes and poles. The Company has 2.51 million tons capacity of cement plant. The company has set up a packing unit at Allahabad to cater to the requirement of customers in eastern/central Uttar Pradesh.

Quick Financial SynopsisBRIEF: For the fiscal year ended 31 March 2009, Prism Cement Limited's revenues totaled RS6.4B. Net income totaled RS920.5B. Results are not comparable since the company has changed its financial year from June to March. Prism Cement Limited is an India-based cement producer. The Co. is engaged in manufacturing and marketing of cement and allied products. It has also set up a packing unit at Allahbad to cater to the requirement of customers.

Prism Cement Limited

Prism Cement Limited is India’s largest integrated Building Materials Company; with a wide range from cement, ready-mixed concrete, tiles, bath products to kitchens. The company has three Divisions, viz. Prism Cement, H & R Johnson (India), and RMC Readymix (India).  Prism Cement Limited also has a 74% stake in Raheja QBE General Insurance Company Limited, a JV with QBE Group of Australia.

Prism Cement

Prism Cement commenced its production in August 1997 and manufactures Portland Pozzollana Cement (PPC) with the brand name 'Champion' and Ordinary Portland Cement (OPC). It has the highest quality standards due to efficient plant operations with automated controls. It caters mainly to markets of UP, MP and Bihar, with an average lead of 340-370 km of its plant at Satna, MP. It has a wide marketing network with about 2,000 dealers serviced from 46 stocking points.

Prism currently sells over 3 MTPA of cement and clinker and is in the process of establishing another unit at the same location with a proposed cement capacity of 3.6 MTPA by 2010-2011. It is also in the process of setting up a 4.8 MTPA capacity cement plant in Andhra Pradesh by 2013-2014. This will take its overall capacity above 11 MTPA.

H & R JOHNSON (INDIA)

Established in 1958, H & R Johnson (India) is the market leader in the field of ceramic tiles in India. HRJ has consistently maintained its leadership position in the field of tiles over the past five decades. Today, HRJ enjoys the reputation of being the only company in India to offer end-to-end solutions of Tiles, Sanitaryware, Bath Fittings and Kitchens.

Under its flagship brand, Johnson, HRJ offers glazed wall and floor tiles, bath products, kitchens, laminate and engineered wooden

flooring.  Marbonite brand offers a complete range of vitrified tiles, and Endura offers industrial tiles and tiles for special applications like bathrooms / high traffic areas / swimming pools etc.  HRJ has recently launched top-end, premium range of products under Johnson Ceramics International brand.

HRJ has a strong service network of technicians and engineers spread across the country.  This network complements the range of bath products by offering various services like installation, trouble-shooting, repairs, and AMC.  HRJ also has a toll-free customer helpline: 1-800-22-7484.   HRJ's sales volume for the year 2008-09 was 37 million m2 of tiles and plans to achieve 90 million m2 by 2014-15.

RMC READYMIX (INDIA)

RMC Readymix (India) is the third-largest ready-mixed concrete manufacturer in India. Set-up in 1996, RMC currently operates 57 ready-mixed concrete plants in 27 cities/towns across the Country. RMC has also ventured into the Aggregates business and operates large quarries and crushers. At present, RMC has 6 quarries across the country. RMC has been at the forefront in setting high standards for plant and machinery, production and quality systems and product services in the ready-mixed concrete industry. RMC plans to scale-up its capacity from 3.87 million m3 at present to 11 million m3 by 2014-15.

THEORETICAL BACKGROUND

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 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 PROMOTIONPromotion 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 non-personal 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.

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.

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.

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 1. Objective for consumer promotion:-

(a) Encourage greater purchase volume (b) Attract new customer

(c) Introduce new products 2. Objective for trade promotion:-

(a) Carry and push new item (b) Increase reseller’s inventories (c) Attract new channel members (d) Offset competitive promotion (e) Better store display

3. Objective for sales force promotion (a) Motivate sales force

(b) Support new product

METHOD OF SALES PROMOTION Sales promotion methods differ according to the target audience. They can be directed at consumer promotion, trade promotion, and sales force promotion

(a) Consumer promotion method Free sample Coupons Rebates Premium Price off Contests Display/Demonstration

(b)Trade promotion methods Free goodsAllowance Prices-off Sales contest Gift items Credit facilities Trade show

(c) Sales contests Trade shows and conventions Gift items Promotional kits Bonus and commissions

CONCLUSION

To attain the objective of the project detailed information was collected from the market of Satna. The market research has revealed many facts and figures about the cement scenario in the market prevailing.

In the market, Prism cement is well known brand of cement. This is the result of the good quality of the prism cement along with their effective marketing efforts, which covers the whole market customers of Prism 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, Prism 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.

SUGGESTIONS

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 was derived, based on the results and market response few suggestions are discussed below. A Price fluctuation creates problems for retailers as they 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 on 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, and it should not be increased or decreased).

LIMITATION OF THE STUDY

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

2. It was found in some cases dealers showed inclination towards certain brands which gave them more margins when compared to others.

3. It was experienced during the survey that it was difficult to convince or make the retailers and dealers understand the important of the project

4. As the retailers and dealers thought that it was unwise for to give their details of business as they feared competitors would take advantage.

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