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Indore Indira Business
SchoolDAVV UNIVERSITY INDORE (M.P.)
A
SUMMER TRAINING REPORT
ON
Market Position of Prism Cement
BY
Ujjwal Singh
MBA 3rd SEM.
UNDER THE GUIDANCE OF
Mr. Jalaj Shrivastava
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A PROJECT REPORT SUBMITTED IN PARTIAL FULLFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS AND
ADMINISTRATION OF
DECLARATION OF STUDENT
I 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
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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:
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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 oursubstantial 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 PrismCement 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.
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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
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INTRODUCTION
Cement is a binder which sets and hardens independently, andcan bind other materials together. The word "cement" traces tothe Romans, who used the term "opus caementicium" to describemasonry which resembled concrete and was made from crushedrock with burnt lime as binder. Cement is an essential componentof infrastructure development and most important input ofconstruction industry, particularly in the governmentsinfrastructure and housing programs, which are necessary for thecountrys socioeconomic growth and development.
Cement ranks second in volume among the industrial productsmanufactured in the world. And it is the most widely used man-made product and second only to water as worlds most heavilyconsumed substance. Cement is poly-phased inorganic compoundof complex nature formed by burning of calcareous andargillaceous raw materials as a binding material. Cement is usedas a binding material in various types of civil constructions.
Earlier, clay or lime was used for binding materials together. Itsproperties 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
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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 usedextensively in household and industrial construction. Earlier,government sector used to consume over 50% of the totalcement sold in India, but in the last decade, its share has comedown to 35%. Rural areas consume less than 23% of the totalcement. Availability of cheaper building materials for non-permanent structures affects the rural demand.
The Indian Cement industry is the second largest cementproducer in the world. The industry has undergone rapidtechnological upgradation and vibrant growth during the last twodecades, and some of the plants can be compared in everyrespect with the best operating plants in the world. The industryis highly energy intensive and the energy bill in some of the
plants is as high as 60% of cement manufacturing cost. Althoughthe newer plants are equipped with the latest state-of-the-artequipment, there exists substantial scope for reduction in energyconsumption in many of the older plants adopting various energyconservation measures.
There are around 11 different types of cement that are beingproduced in India. The production of all these cement varieties isaccording to the specifications of the BIS (Bureau of Indian
Standards). Some of the various types of cement produced inIndia are:
Clinker Cement
Ordinary Portland Cement (OPC)
Portland Blast Furnace Slag Cement (PSC)
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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 wantmust 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 ofPrism Cement in Satna Region .The second objective of the project was
to study the sales promotion activities undertaken by Prism and its other
competitors.
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OBJECTIVE OF THE PROJECT
This project was undertaken for two main objectives was
To carry out market survey for knowing prevailing marketcondition of
Prism Cement Limited in Satna (Madhya Pradesh).
To check awareness of Retail shop owner about theproduct.To study the sales and promotion activities undertaken by Prismcement
and other player in the market.
To check if there is some scope for increasing salesthrough 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.
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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
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Research Methodology
Since the cement is a core product and being used by all types ofconsumers, so our focus for collection data was each and everyman who are directly or indirectly involved with the sale or use ofcement such as stockists, dealers, civil engineers, contractors,individual customers, masons, etc.
To know the position of Prism Cement in the trade and non-tradesegment regarding sale in comparison with the other brands onthe basis of attributes of cement has been done. For this purpose,opinion of stockists, dealers, engineers, contractors, architectsand builders (who posses knowledge regarding different brandsavailable in the market) has been taken. This might be helpful todraw the right picture about the market scenario.
This was convenient in nature because I would have to accountonly those people who actually require or purchase cement inbulk quantity. The survey is conducted with the help ofquestionnaire method and survey is conducted in the Satnaregion.
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Every type of research requires two types of data to be collectedto 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
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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 CertifiedCompany promoted by the Rajan Raheja Group. It operatesone of the largest single kiln cement plants in the country atSatna, Madhya Pradesh. Equipped with state-of-the-art
machinery and technical support from F.L Smidth & Co A.SDenmark, the world leaders in cement technology, PrismCement has successfully created a niche for itself in theIndian cement industry.
The Company is managed by a focused Board comprising of
eminent experts from diverse fields ably supported by a
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professional management team. The Management team ensures
high levels of transparency, accountability and equity in all facets
of the companys operations.
Our Vision
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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
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Product
Prism Cement manufactures and marketsPortland Pozzollana Cement (PPC) with thebrand name Champion and the full range ofOrdinary Portland Cement (OPC) of 33, 43and 53 Grades.
Champion Prisms largest selling product isgeneral-purpose cement popular for allapplications during house construction byindividuals. Prism Cements OPC is in
demand for specialised cement concreteapplications like high-rise buildings, bridges,manufacturing AC sheets, pipes, poles etc.
Rich deposits of high quality limestone,highly automated and sophisticated controlsensure that the cement manufactured byPrism meets the highest quality standards.All the cement manufactured by Prism
Cement carry the BIS Certification Mark. Infact, the strength and other characteristicsare much higher than the BIS requirements.Excellent quality has placed Prism Cement inthe premium price segment.
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Overview
Prism Cement Limited is an India-based company, which is engaged incement 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 Companys
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 Synopsis
BRIEF: 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.
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Prism Cement Limited
Prism Cement Limited is Indias largest integrated BuildingMaterials Company; with a wide range from cement, ready-mixed
concrete, tiles, bath products to kitchens. The company has threeDivisions, viz. Prism Cement, H & R Johnson (India), and RMCReadymix (India). Prism Cement Limited also has a 74% stake inRaheja QBE General Insurance Company Limited, a JV with QBEGroup of Australia.
Prism Cement
Prism Cement commenced its production in August 1997 andmanufactures Portland Pozzollana Cement (PPC) with the brandname 'Champion' and Ordinary Portland Cement (OPC). It has thehighest quality standards due to efficient plant operations withautomated controls. It caters mainly to markets of UP, MP andBihar, with an average lead of 340-370 km of its plant at Satna,MP. It has a wide marketing network with about 2,000 dealersserviced from 46 stocking points.
Prism currently sells over 3 MTPA of cement and clinker and is inthe process of establishing another unit at the same location witha proposed cement capacity of 3.6 MTPA by 2010-2011. It is alsoin the process of setting up a 4.8 MTPA capacity cement plant inAndhra Pradesh by 2013-2014. This will take its overall capacityabove 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 consistentlymaintained its leadership position in the field of tiles over the pastfive decades. Today, HRJ enjoys the reputation of being the onlycompany in India to offer end-to-end solutions of Tiles,Sanitaryware, Bath Fittings and Kitchens.
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Under its flagship brand, Johnson, HRJ offers glazed wall andfloor tiles, bath products, kitchens, laminate and engineeredwooden flooring. Marbonite brand offers a complete range ofvitrified 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 Internationalbrand.
HRJ has a strong service network of technicians and engineersspread across the country. This network complements the rangeof 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 oftiles 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 57ready-mixed concrete plants in 27 cities/towns across theCountry. RMC has also ventured into the Aggregates business andoperates large quarries and crushers. At present, RMC has 6quarries across the country. RMC has been at the forefront insetting high standards for plant and machinery, production andquality systems and product services in the ready-mixed concreteindustry. RMC plans to scale-up its capacity from 3.87 million m3at present to 11 million m3 by 2014-15.
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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 stimulatedemand.
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 directmarketing. 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
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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 unpaidform 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,
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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 shortterm, 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 resellers inventories
(c) Attract new channel members
(d) Offset competitive promotion
(e) Better store display
3. Objective for sales force promotion
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(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 goodsAllowancePrices-offSales contestGift itemsCredit facilities
Trade show
(c) Sales contestsTrade shows and conventionsGift itemsPromotional kitsBonus and commissions
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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 aboutthe 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 betweenthe 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.
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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 ormake 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.
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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
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