A Report on J.K Cement ltd

A

Summer Training Report

On

CONSUMER BEHAVIOR ON J.K CEMENT AND

FACTORS

AFFECTING ITS PURCHASE

Under the Supervision of: Faculty

Guide:

Mr. Pankaj Basra Director. Prithvi Yadav

Regional Head

(J.K Cement)

Submitted By

Vikrant Awasthi

Roll No.1421, Sec-A

Batch: XVI (2010-2012)

In partial fulfillment for the requirement of the Two Year Full Time

Post Graduate Diploma in Management

@ Dr.Gaur Hari Singhania Institute of Management

& Research

Preface

Classroom teaching helps the student by making conceptual base clear, but on the

job training is a way, which helps the students to get the applied knowledge of the

concept. Normally the students are not aware of the actual requirement of practical

field, keeping in view this fact; a system of summer training has been established

to make the students acquainted of actual difficulties that are to be faced in the

demanding corporate sector.

Summer training at J.K CEMENT, has given me a great experience. I was

required to prepare a training report on the topic “Study of consumer behaviour

on J.K Cement and factors affecting its purchase ”. The managers of the entire

department helped me a lot to prepare this report.

Table of Contents

SL.No. Topics Page No.

1 ACKNOWLEDGEMENT

2 EXECUTIVE SUMMARY

3 RESEARCH OBJECTIVES

4 SCOPE OF THE STUDY

5 COMPANY STUDY

6 REVIEW OF LITERATURE

7 RESEARCH METHODOLOGY

8 DATA INTERPRETATION AND ANALYSIS

9 FINDINGS

10 QUESTIONNAIRE

11 RECOMMENDATIONS

12 LIMITATIONS

13 CONCLUSION

14 BIBLIOGRAPHY

Acknowledgement

I would like to thank JK cement for providing me with an opportunity to work on

my summer project. The immense help and support received from J.K Cement

over whelmed me during the project.

I am highly indebted to Mr. Pankaj Basra (J.K Cement ltd, Regional head,

gurgaon), who provide me with the necessary information and his valuable

suggestion and comment on bringing out this report in the best possible way.

I also thank Director Prithvi Yadav, faculty guide, DR.GAUR HARI

SINGHANIA INSTITUTE OF MANGEMENT AND RESEARCH, who has

sincerely supported me with the valuable insight into the completion of this

project.

Last but not the least my heartfelt love of my parents, their constant support and

blessing helped me throughout the project.

Executive SummaryTimes have never been so good for the Indian cement industry. The robust

earnings growth posted by cement companies since last eight quarters has been

unprecedented. Strong demand and slower capacity addition has resulted into

cement prices perking up by almost 35 to 50 percent over last two years.

We believe the purple patch for cement companies is likely to continue for

another four to five quarters till the new capacities get commissioned although

the earnings would see moderate growth going forward due to high base effect.

There is no room for dramatic rise that has been witnessed over past five quarters

marked by reversal in cement cycle. From longer tern perspective, we believe

cement companies would feel the pressure on margins post December 2007, both

on account of rising cost as well as vanishing pricing power, at least in some

pockets across India.

Cement is a commodity business characterized by peak & trough phases. After

three years of boom, the industry is close to its peak & the way cement

companies are rushing up to cash in on the boom by expanding furiously does not

sound conducive from investment perspective. In the given scenario, we remain

neutral on the sector per se. There is nothing to suggest pressing panic buttons as

of now but the outlook may turn negative in case supply continues to grow at

frenzied pace. From long term horizon, we believe it’s time to lighten cement

portfolio & adopt bottom up approach rather than going gung ho about the

sector.

Driven by solid earnings over next three quarters, cement stocks will continue to

attract the market fancy. That is the best time to reshuffle cement portfolio in

favour of potential frontrunners. Based upon location, cost efficiency,

competitiveness, cap-ex plans & financial performance, we recommend a few

winners that will outpace the peers. The best Investment strategy would be to

exploit every rise to exit weak cement stocks & accumulate the winning stocks.

Management Problem

To know the consumer behaviour on J.K cement and factors affecting their purchase.

Objective

The project is carried out for knowing the consumer behaviour on J.K cement and factor affecting their purchase. The project will be done in Gurgaon. I will take market players in cement industry. They are ACC, Ambuja, Jaypee, Shree, Binani, bangur and JK.

Research Methodology

The descriptive nature of the research necessitated collection of primary data from retailers of cement through market survey. Personal Interview method will be used and interview would be conducted through ‘structure questionnaire’. With the help of the Questionnaire I will try to analyze each n every factor which is responsible for the satisfaction level of the retailers, dealers, LABOUR (mistri‘s) and consumers toward JK cement and its competitors. Study will also include market demand for the cement, market share, and competitor’s analysis to know the exact position of cement in the market.

Sampling Technique

Random Sampling technique will be used to select the retailers and consumer. 90 respondents will be taken including retailers, dealers, labours (mistri’s), consumer (of age group 30 and above, both and female and income level above 4 lac per annum).

The project will be carried out for 50 days. After collecting the detailed information from the market, analysis of data will be made.

Research and Design

Introduction Objectives Scope and Limitation

Introduction

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.

The information about the market will be gathered by visiting retailers, dealers, customers in the market. Interview of retailers was taken depending upon their accessibility.

While doing the project attempt will be made to collect maximum information about the market. To get actual and correct information, it will not be told retailers; dealers etc. that the survey is conducted by JK Cement for the obvious reasons .Number of retailers, dealers were visited to get the actual picture of the market. Again, the retailers of each grade (according to the performance) will be visited, to get each and every detail about the market.

After collecting the derailed information about the market analysis is done. In the analysis, we will try to suggest the observation would be carefully analyzed and suggestion would be given to management that how they can improve their branding strategies in this cluttered market.

Objective of the Project

The main objective of the project is to study the consumer behaviour on J.K Cement and factors affecting its purchase.

To attain the main objective other sub objective are needed to be achieved. These are listed below:

To know the customer preference for the brands of cement. To know the preference of dealers for sorting different brands of cement. To know the effectiveness of advertisements. To know various purchase decision influencer factors. To know the best advertisement medium.

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

Scope of the Study

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 gurgaon region.

INTRODUCTION

Cement Industry in India

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 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. Cement is a key infrastructure industry. It has been decontrolled

from Price and distribution on 1st March, 1989 and deli censed 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.

Domestic Players

While the Cement Corporation of India, a Central public sector undertaking,

comprises 10 units; the various State governments own 10 large cement

plants. Among the leading domestic players in terms of cement

manufacturing are: Ambuja Cement, Aditya Birla Group (which owns

UltraTech Cement), ACC Ltd., Binani Cement, India Cements and J K

Cement. They are not only the foremost producers of cement but also

enjoy a high level of equity in the market.

THE COMPANY

Vision:- To produce world class white Portland cement at most competitive

price. We will be driven by our commitment to continuous quality improvement

and exceeding all our customer expectations.

Mission:- To deliver value to our customers, stakeholders, employees and

society at large.

ORIGIN AND DEVELOPMENT OF J.K.ORGANIZATION

The founder to whom J.K organization owes its name was a Father son, Late Lala Jhuggilal Singhania and Late. Lala Kamlapat Singhania. They started their business activities from Kolkata as financial investors over 100 years ago in 1887 in 1914 they shifted towards the Cotton –textile industries at Kanpur (U.P.)

Today in India J.K Organization occupies a place of pride in industrial and commercial Fields. The Singhania family struggled over last two centuries and contributed to the economic and social growth of India. In the process of industrialization they attend the present place of destination among the top industrial pioneers of the country. M/S J.K.Cement works is a division of J.K. Synthetics Limited Kanpur a member of J.K.Organization. This is a multi product and multi unit company with diversified operation in synthetic fibers, Cement plants (gray & white), Power generation etc.

M/S J.K. synthetics Limited established their first gray Portland cement plant based on dry process technology at Nimbahera in the year 1974 .The main aim to set up the plant was to fulfill the demand of cement in the country. The main reason of establishing this plant in Nimbahera was easy availability of raw materials (Limestone) in sufficient quantity. The whole Maarwad Malwa belt is carrying plenty of Limestone i.e. primary raw materials for cement manufacturing.

Then first kiln of this plant was started at 900 tons per day (TPI) and subsequently the capacity was increased by addition of two more kilns f 1200 TPD 1350 TPD & 3400 TPD in 1979, 1982 & 1988 respectively. In 2002 new Grey Cement plant was installed at Mangrol with initial production capacity of 2500 TPD.

Today Nimbahera plant production is around 7000 TPD and Mangrol plant production is about 3000 TPD contributing to total production of 10000 TPD.

J.K.Cement has been awarded by ISO -9000, ISO-9002, ISO-14000 & OHSAS-18000.

FOUNDATION

Late Sir Padampat Singhania

LALA JUGGILAL SINGHANIA LALA KAMLAPAT SINGHANIA

(1857-1922) (1884-1937)

- PILLARS-

Mr.Yadupati Singhania (Managing Director)

Mr. Singhania, our Managing Director and Chief Executive Officer, holds a Bachelor of Technology (B.Tech.) degree from Indian Institute of Technology, Kanpur. He has experience spanning 25 years in the cement industry. He has been associated with the Company as its Promoter Director and has led our Company since its inception in 1994. He was appointed Managing Director of the Company with effect from April 1, 2004. He was instrumental in setting up the JKSL Cement Division. He is the Director of the Employers Association of Northern India, President of Kanpur Productivity Council, and member of the Board of Governors of the National Council for Cement and Building Material and Jodhpur Chamber of Commerce. He is also a member of the managing committee of Cement Manufacturers Association. He has held the position of District Governor of Rotary International and President of Foreign Trade Development (India) Association

Dr.Gaur Hari Singhania (Chairman)

Dr. Singhania, our Chairman, holds a Master of Arts degree in Economics and a PhD degree in Economics from Agra University. He has corporate experience spanning 50 years. He has been associated with the Company as its Promoter Director and has led our Company since its inception in 1994. He is also the Chairman of JKSL, Juggilal Kamlapat Cotton Spg. & Wvg. Mills Company Limited and J.K. Traders Limited. He has held the position of Chairman of the Merchant Chambers of Uttar Pradesh and Employers Association of Northern India.

He has also been the president of Uttar Pradesh Stock Exchange Association Limited. He has been a director of Pradeshiya Industrial Investment Corporation of Uttar Pradesh, Uttar Pradesh State Industrial Development Corporation and the

Uttar Pradesh State Sugar Corporation. Currently, he is also the chancellor of Dayanand Shiksha Sansthan and the president of Kanpur Education Society

1.1 COMP ANY PROFILE

1.1.1 PLANT LOCATION :

J.K. Cement works is located at Nimbahera, District Chittorgarh ,Rajasthan,

Nimbahera is situated 30 K.M. south of Chittorgarh and connected to Jaipur by meter

gauge railway line udaipur the nearest domestic airport is 100 K.M. southeast of

Nimbahera by rail and road. It is well connected with, Indore, Chittorgarh, Ajmer, Jaipur,

and Gujrat etc. The plant is approximately 2 K.M. away from Nimbahera railway & bus

station.

1.1.2 PRODUCT :

J.K.Cement works Nimbahera is leading producer of Ordinary Grey Cement and

Blended Cement, Plant was set up in technical assistance with M/S F.L.smidth of

Copenhagen Denmark and started commercial production in 1974 with an initial

production capacity of 900 TPD and subsequently upgraded in phase to 7000 TPD.

1.1.3 SALIENT FEATURES:

- First dry process plant in India.

- Latest Process Precaleinator technology for clinker

- Unit II was first PLC controlled cement plant in India.

- Most advanced and sophisticated central control room for entire process

control from one point.

- On line quality control by X-ray analyzer.

- Computerized maintenance management system extended to stores, purchase

sales account personnel function etc.

- Continuous ongoing process of training & development at Regional Training

Centre (North) Nimbahera.

1.2.4 QUALITY PARAMETERS :

J.K.Cement Nimbahera is using the latest dry process precalicination technique in

its plant. This technique incorporates a five stage precheater, Precalcinator, air swept

vertical roller mills and electronically controlled packaging machine. The major

produced grade is 43 grade cement. It is also an ISO 9002 certified manufacturing

company. a certificate given by Lloyd. Register of quality assurance U.K.

Cement has different quality parameters which can be classified broadly in two

categories Chemical and physical generally cement is of three different grades i.e. 33,

43, 53 based upon cement’s 3.7 or 28 days compressive strength. J.K. Cement is

pioneering in 43 grade cement because of its quality consciousness.

1.1.4 ACHIEVEMENTS :

National award for highest production in 1978.

104% production in 1990-91.

Record production 1.86 million tons against capacity of 1.50 million tons per

annum.

Power consumption reduced to 115 Units per ton of cement in spite of multiple

and old units. Now it has touched as low as 100 units per ton.

Specific heat consumption achieved up to 760 Kilo Calorie per Kg. of clinker.

Selected as one of the lead plant by World Bank & DANIDA for setting up the

Regional Training Centre.

Received ISO 9002 certificate for manufacturing and marketing of White as well

as Grey cements both in 1995.

Binani CementLimited is engaged in the production and sales of cement and clinker. The Company's products include ordinary Portland cement and clinker. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company produced 52.80 lac metric tons of cement. In December 2009, the Company commissioned a cement mill of 110 throughput per hour (TPH) capacity. The Company's overseas projects include Shandong Binani Rong’An Cement Co. Ltd., China (SBRCC) and Binani Cement Factory LLC, Dubai (BCFLLC). The Company focuses to set up a Greenfield Cement plant of 2.5 million tons per annum capacity at Sutrapada in Gujarat. Its parent company is Binani Industries Limited. The Company's subsidiaries include Krishna Holdings Pte Limited, Mukundan Holdings Limited, Murari Holdings Limited and Bhumi Resources (Singapore) Pte Limited. » Full Overview of BINC.BO

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000 persons and a countrywide distribution network of over 9,000 dealers.Since inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in many areas of cement and concrete technology. ACC has a unique track record of innovative research, product development and specialized consultancy services. The company's various manufacturing units are backed by a central technology support services centre - the only one of its kind in the Indian cement industry. ACC plants, mines and townships

visibly demonstrate successful endeavours in quarry rehabilitation, water management techniques and ‘greening’ activities. The company actively promotes the use of alternative fuels and raw materials and offers total solutions for waste management including testing, suggestions for reuse, recycling and co-processing.

J.K’s Management Philosophy

Customer Satisfaction

Always invest in Latest Technology

Huge Distribution Network Creation

Expansion through Balancing Equipment

Constant focus on Cost Control & Quality

Invest in Managers & Develop People Skills

Stability of Executive Management & Low Employee turnover

Social Welfare - A Priority

SIX CORE VALUES OF JKCEMENT LTD

We succeed through satisfied customers.

We deliver quality and excellence in all we do.

We require premium return on assets.

We use technology to develop market leadership.

We value and empower our employees.

We behave responsibly as a corporate citizen.

RESEARCH

METHODOLOGY RESEARCH METHODOLOGY

This report acts a general guide line in framing the entire research work. Further it

gives clear ideas about defining the research problem, research design, sampling

design, methods of data collection and measurement and scaling techniques. This

report acts as a general guideline in framing the entire research work. Hence, a

research should be a step towards the awareness of the expanding needs of the

customers and thereby to meet them. Just as many dissatisfied customers do not

register formal complaints, satisfied customers may not provide the feedback

necessary to understand as to why the satisfaction has occurred. Hence, a detailed

research is required to know as to what is lacking in the system and what can be

done thereof. A recent study of the corporate world has clearly established the fact

that only such of those corporations which have given their customers maximum

value for their money, have survived and further, only such of those companies

that have gone beyond the stage of satisfying the customers into delighting them by

exceeding their expectations have really grown beyond one’s wildest dreams.

Research methodology is a method used to systematically and scientifically solve

the research problem. The present study is about the “Study of consumer

behaviour on J.K Cement and factors affecting its purchase”.

Research Design

A research design is purely the frame work or plan used to study and analyze the

data collected. Research is the scientific way to solve the problem and it is

increasingly used to study the market potential. This involves exploring all

possible methods of solving the research problems, examining the alternative

methods one by one and arriving at the best method, considering the resources at

the disposal of the researcher.

Descriptive Research

The Research design used for this study is Descriptive design, which includes

surveys and fact findings of different kinds. The major purpose of descriptive

research is a description of the state of affairs, as it exists at present .The entire

analysis is described in detail with the use of a well structured questionnaire and

the interpretation thereon.

Sample design

A sample design is a definite plan for obtaining a sample from a given population.

It refers to the technique or the procedure the researcher would adopt in selecting

items for her sample. The random sampling technique is to be employed for data

collection. 45 dealers and retailers were interviewed altogether from GURGAON

for the collection of primary data through questionnaire in order to extract pieces

of information and opinions about J.K. cement and other cement manufacturers. 2

different structured Non-Distinguished Direct Questionnaire that includes multiple

choice and Open-Ended Questions was framed to carry out the survey and obtain

the necessary information from the Customers and dealers and retailers.

Source of data

The data for this study was collected from primary source and secondary source.

The primary data was collected through questionnaire and survey. This catered to

the needs of studying the objectives. The secondary data was collected from

articles given in internet, journals and magazines to gather information about the

company and the topic of the study.

PRIMARY DATA

Primary data was obtained by interviewing the dealers and retailers, the customers.

SECONDARY DATA

Through past records of the company, annual reports, magazines and journals and

internet to understand the topic.

Sample Size

About 90 respondents were surveyed and assessed for their opinion about Cement.

Survey was done in GURGAON only.

Research Methodology

Survey Method was chosen to obtain the needed information from the respondents

so as to study the various magnitudes of the project objectives.

Research Instrument

2 Questionnaires are structured for evaluating the customers and

dealers and retailers.

Contact Method Personal visit to various shops & various places in Gurgaon.

Sampling Procedure

NON-PROBABILISTIC CONVENIENT SAMPLING Technique was followed

for getting the response to the questionnaire.

Period of study

The reference period for conducting this study is from 02nd MAY to 24th JUNE,

2011.

DATA

INTERPRETATION

AND

ANALYSIS

FINDINGS FROM

CUSTOMERS

1-MOST PREFERRED BRAND

Statistics

Most Preferred Brand N Valid 45

Missing 0Median 4.0000

Most Preferred Brand

Frequency Percent Valid PercentCumulative

PercentValid J.K Cement 8 17.8 17.8 17.8

Binani 5 11.1 11.1 28.9ACC 5 11.1 11.1 40.0Ambuja 11 24.4 24.4 64.4Shree 10 22.2 22.2 86.7Jaypee 3 6.7 6.7 93.3Birla 2 4.4 4.4 97.8Bangur 1 2.2 2.2 100.0

Total 45 100.0 100.0

Interpretation:

From the above table, we can make the analysis that 17.8% of the consumers prefer JK cement whereas Ambuja and Shree brand has a highest value in the eyes of customers.

Most Preffered BrandBangurBirlaJaypeeShreeAmbujaACCBinaniJ.K Cement

Fre

qu

ency

12

10

8

6

4

2

0

Most Preffered Brand

2-Most Advertised Brand

Statistics

Most Advertised Brand N Valid 45


Most Advertised Brand



Binani 5 11.1 11.1 13.3ACC 10 22.2 22.2 35.6Ambuja 14 31.1 31.1 66.7Shree 9 20.0 20.0 86.7Jaypee 2 4.4 4.4 91.1Birla 1 2.2 2.2 93.3Bangur 3 6.7 6.7 100.0Total 45 100.0 100.0

Interpretation:

From the above table we can analyze that J.K Cement (2.2%) advertisements are very

less as compared to most advertised brand like ambuja (31.1%) and ACC (22.2%).

Most Advertised BrandBangurBirlaJaypeeShreeAmbujaACCBinaniJ.K Cement

Fre

qu

ency

12.5

10.0

7.5

5.0

2.5

0.0

Most Advertised Brand

3-Advertisement Effectiveness

Statistics

Advertisement Effectiveness N Valid 45


Advertisement Effectiveness


PercentValid Newspaper 8 17.8 17.8 17.8

Hoarding 3 6.7 6.7 24.4Wall Painting 3 6.7 6.7 31.1T.V 29 64.4 64.4 95.6Others 2 4.4 4.4 100.0Total 45 100.0 100.0

Interpretation:

From the chart and the table, we can analyze that advertisement are most effective on T.V (64.4%), Newspaper (17.8%) & so on.

Advertisement EffectivenessOthersT.VWallPaintingHoardingNewspaper

Fre

qu

ency

30

20

10

0

Advertisement Effectiveness

4-Most Suggested Brand

Statistics

Most Suggested Brand N Valid 45


Most Suggested Brand




Interpretation:

From the above table, we can analyze that most suggested brand by various sources is ambuja(24.4%) then shree(22.2%) and then J.K (17.8%).

Most Suggested BrandBangurBirlaJaypeeShreeAmbujaACCBinaniJ.K Cement

Fre

qu

ency

12

10

8

6

4

2

0


6-Purchase Decision Influencer

Statistics

Brand Suggested By N Valid 45


Brand Suggested By


PercentValid Engineer 23 51.1 51.1 51.1

Friends 8 17.8 17.8 68.9Mistries 9 20.0 20.0 88.9Dealers 4 8.9 8.9 97.8Others 1 2.2 2.2 100.0Total 45 100.0 100.0

Interpretation:

From the above table, we can analyze that maximum number of people take the advice

from the engineers (51.1%) during purchasing of cement then from their mistries (20%)

and then from the friends (17.8%), hence we can come to the conclusion that firstly

people give priority to engineers in purchasing cement, then to mistries.

Brand Suggested ByOthersDealersMistriesFriendsEngineer

Fre

qu

ency

25

20

15

10

5

0

Brand Suggested By

5-Best Brand Rating

Statistics

Brand Rating N Valid 45


Brand Rating



ACC 5 11.1 11.1 28.9Jaypee 3 6.7 6.7 35.6Shree 10 22.2 22.2 57.8Binani 5 11.1 11.1 68.9Birla 2 4.4 4.4 73.3Ambuja 11 24.4 24.4 97.8Bangur 1 2.2 2.2 100.0Total 45 100.0 100.0

Interpretation:

From the above table, we can analyze that Ambuja (24.4%) has got the best cement

brand perception, then Shree (22.2%) and then J.K (17.8%).

Brand RatingBangurAmbujaBirlaBinaniShreeJaypeeACCJ.K Cement

Fre

qu

ency

12

10

8

6

4

2

0

Brand Rating

IN SELECTING CEMENT WHAT IS PREFFERD

1. BRAND IMAGE

Brand Image N Valid 45


Brand Image


PercentValid 1 33 73.3 73.3 73.3

2 11 24.4 24.4 97.83 1 2.2 2.2 100.0Total 45 100.0 100.0

Brand Image321

Fre

qu

ency

40

30

20

10

0

Brand Image

2. Price

Statistics

Price N Valid 45


Price


PercentValid 1 3 6.7 6.7 6.7

2 6 13.3 13.3 20.03 36 80.0 80.0 100.0Total 45 100.0 100.0

Price321

Fre

qu

en

cy

40

30

20

10

0

Price

3. Convenience of Location

Statistics

Convenience of Location N Valid 45


Convenience of Location


PercentValid 1 9 20.0 20.0 20.0

2 29 64.4 64.4 84.43 7 15.6 15.6 100.0Total 45 100.0 100.0

Convenience of Location321

Fre

qu

ency

30

20

10

0

Convenience of Location

Interpretation:

From the above tables and charts, we can make the analysis that BRAND IMAGE is

preferred mostly and is ranked first , then secondly CONVENIENCE OF LOCATION,

then thirdly PRICE hence we can come to the conclusion that mostly consumer prefer

brand image while purchasing cement.

Median of above all factors

1. Most Preferred Brand (Median=4)

2. Most Advertised Brand (Median=4)

3. Advertisement Effectiveness (Median=4)

4. Most Suggested Brand (Median=4)

5. Purchase Decision Influencer (Median=1)

6. Brand Rating (Median=4)

Median of all above six factor=4.

FINDINGS

FROM

DEALERS

1-Most Demanded Brand

Statistics

Most demand brand N Valid 45


Most demand brand




Missing System 1 2.2Total 46 100.0

Interpretation:

From the above table, we can analyze that most demanded brand in gurgaon is Shree (17.4%), ambuja(15.2%) and then J.K Cement(13%).

Most demand brandBangurBirlaJaypeeShreeAmbujaACCBinaniJ.K Cement

Fre

qu

ency

8

6

4

2

0

Most demand brand

2-Most Advertised Brand

Statistics

Most advertised brand N Valid 45


Most advertised brand


PercentValid Binani 6 13.0 13.3 13.3

ACC 4 8.7 8.9 22.2Ambuja 15 32.6 33.3 55.6Shree 11 23.9 24.4 80.0Jaypee 4 8.7 8.9 88.9Bangur 5 10.9 11.1 100.0Total 45 97.8 100.0


Interpretation:

From the above table we can analyze that most advertised brand is ambuja(32.6%) , shree (23.9%) , binani(13%).

Most adverertised brandBangurJaypeeShreeAmbujaACCBinani

Fre

qu

ency

15

10

5

0

Most adverertised brand

3-Effectiveness of Advertisement

Statistics

Ad Effectiveness N Valid 45


Ad Effectiveness


PercentValid Newspaper 7 15.2 15.6 15.6

Hoardings 5 10.9 11.1 26.7Wall Painting 3 6.5 6.7 33.3T.V 27 58.7 60.0 93.3Others 3 6.5 6.7 100.0Total 45 97.8 100.0


Interpretation:

From the above table, we can make the analysis that most effective advertisement for

cement category is T.V (58.7%) and then Newspaper (15.2%).Hence we can make a

conclusion that cement industry should invest more in advertisement in TV and

Newspaper.

Ad EffectivenessOthersT.VWall PaintingHoardingsNewspaper

Fre

qu

ency

30

20

10

0

Ad Effectiveness

4-Most Suggested BrandStatistics

Most Suggested Brand N Valid 45







Interpretation:

From the above table, we can analyze that most suggested brand by various sources is ambuja & shree (17.4%) then binani (13%) and then (J.K, Jaypee, bangur) 10.9%.

Most Suggested BrandBangurBirlaJaypeeShreeAmbujaACCBinaniJ.K Cement

Fre

qu

ency

8

6

4

2

0


5-Best Brand Rating

Statistics

Best Brand Perception N Valid 45


Best Brand Perception


PercentValid J.K 6 13.0 13.3 13.3

ACC 4 8.7 8.9 22.2Jaypee 5 10.9 11.1 33.3Shree 8 17.4 17.8 51.1Binani 6 13.0 13.3 64.4Birla 5 10.9 11.1 75.6Ambuja 7 15.2 15.6 91.1Bangur 4 8.7 8.9 100.0Total 45 97.8 100.0


Interpretation:

From the above table, we can analyze that Shree (17.4%) has got the best cement

brand perception, then ambuja(15.2%) and then (binani and J.K ) 13%.

Best Brand PerceptionBangurAmbujaBirlaBinaniShreeJaypeeACCJ.K

Fre

qu

ency

8

6

4

2

0

Best Brand Perception

Median of above all factors

1. Most Demanded Brand (Median=4)

2. Most Advertised Brand (Median=4)

3. Effectiveness of Advertisement (Median=4)

4. Most Suggested Brand (Median=4)

5. Best Brand Rating (Median=4)

Median of above all factor=4

Findings

Median (Consumer) =4

Median (Dealers) =4

Median =4

4th factor is most important i.e. (Most suggested

Brand) .Hence suggestions from various sources play an important role in purchase of cement brands.

QUESTIONNAIRE FOR CONSUMPTION OF CEMENT

Name of the dealer/retailer……………………………………………………………...

Phone………………………Email …………………………………………………

Address……………………………………………………………………………………………………………………………

………………………………………….

Town …City………………………District…………………………………………

1- No of years in Cement trades: -

…………………………………………………………………………………………

2- Brands dealing in:

S.No. Name Brand wise

sales (Per

Brand wise

prices (Per

Brand wise

discount

Month) Bag) Structure

B1

B2

B3

B4

B5

3- Most demanded brand:

………………………………………………………………………………

4 Why?

………………………………………………………………………………

………………………………………………………………………………

5. Which brand is more advertised?

………………………………………………………………………………

6- Which type of advertising do you feel is the most effective? (Please tick)

- Newspaper

- Hoardings

- Wall painting

- T.V.

Others

7- Which brand of cement did you buy at present/last time?

J.K Shree

Binani Birla

ACC Jaypee

Ambuja Other………………………..

8- Which brand you suggest to consumer and why? (For contractor)

………………………………………………………………

………………………………………………………………

9- Why did you choose that brand?

…………………………………………………………………………………………………………………………………………

……………………………………………………

10- How do you rate the quality of chosen brand?

Very good

Good

Average

Fair

Poor

11- Who has suggested you for that brand?

………………………………………………………………………...............................

………………………………………………………………………...............................

12-Please give rating (Tick) to following according to your choice: -

Rating J.K. ACC Jaypee Shree Binani Birla Ambuja

1

2

3

4

5

6

7

13- Your comments regarding J.K.Cement:

………………………………………………………………………...

………………………………………………………………………...

QUESTIONNAIRE (For Consumers)

Name…………………………..Address……………………………

Phone No……………………………………………………………

Age………………………………………………………………………

1- Which brand of cement you prefer the most?

1- J.K Cement

2- Binani

3- ACC

4- Ambuja

5- Shree

6- Jaypee 7- Birla

8- Bangur

2- Which brand of cement did you buy at present/last time?

J.K Shree

Binani Birla

ACC Jaypee

Ambuja Other………………………

3- Which brand is more advertised?

………………………………………………………………………………

4- Which type of advertising do you feel is the most effective? ?

- Newspaper

- Hoardings

- Wall painting

- T.V.

Others

5- Which brand is most suggested?

………………………………………………………………

………………………………………………………………

6- While purchasing cement you take advice of?

Engineer Friends

Mistries Dealers Others

7- In selecting cement, How important are all points, Please rank them accordingly from (1-3)

Brand Image

Price

Convenience of location

8-Please give rating (Tick) to following according to your choice: -

Rating J.K. ACC Jaypee Shree Binani Birla Ambuja

1

2

3

4

5

6

7

SWOT ANALYSISS-STRENGTHS

J.K.Cement possess good brand image in the existing market which is definitely a

part of pavement brick for it.

Location has always been an important factor in Rajasthan extensive (about 2500

MT) of cement grade limestone available.

Older plant and has a well known brand name in market.

Good plant having 10,000 tons per day production capacity.

W-WEAKNESSES

Fewer advertisements.

Low sales as compared to market potential.

Lack of self enthusiasm in the working pattern of the executives as a result the

aggressiveness towards sales is low.

Less advertisement and negligible sales promotion schemes as compared to

other brands.

Monopoly of dealers is affecting the sales.

O-OPPORTUNITIES

Exposure of quality. Which is already good but not displayed in market?

More advertisement.

Competitive prices.

Making good dealers and penetrate the market up to retailer level.

May increase the discount and margin structure for retailers and dealers.

T-THREATS

Some dealers are available at present which were not reputed / efficient.

Other companies advertising policy.

Price fluctuation and price war which is a general phenomenon in this cement

industry.

Quick availability/ Supply of cement of other cement industries are creating

threat for J.K. cement.

FINDINGS AT A GLANCE Customers are loyal towards one brand but not in cement.

Good brand image of J.K.Cement in existing market.

Lack of sales aggressiveness.

Less advertisement of the product as compared to other

company.

Profit margin given by company is less and no any

promotional schemes for retailers and semi dealers.

Suggestions from various sources play an important role in

purchasing decisions.

Profit margin given by company is less and no any

promotional schemes for retailers and semi dealers.

No facility for removal of complaints from the side of dealers/

retailers on time.

Lack of self-enthusiasm is working patterns of executives. As the real estate sector is at boom many new companies are

entering into cement industry. The cement companies that are

playing today have great opportunity.

RECOMMENDATION

1. JK CEMENT should focus more on TV advertisements which will increase company awareness among population.

2. JK CEMENT should also focus on its pricing strategy so that it would increase company sales.

3. JK CEMENT should give their ads in spots category which would help the company in targeting youth segment from the market which will increase its awareness among them.

4. BRAND AMBASSADOR also helps in increasing sales and also for increasing publicity so JK CEMENT should also focus towards it.

5. Some focus should also be made for the advertisement and brand

promotions for the product mainly in the new developing sites and

area.

6. Promotional activities should be more, because it helps to push the

product and recall the product.

7. Dealers meetings may be play crucial role to increase the sales

because whatever dealer want, can sales. He can also convince the

customer to purchase the particular product.

8. The price is the major concern: If price can be lowered by

compromising on some minor unnoticeable quality difference then the

company should go ahead with it.

9. Occasional schemes would help to achieve higher sales.

10-Availability and quality should be good for good sell and make a good

relationship with customer.

LIMITATIONS OF RESEARCH

Though a successful survey was conducted there were still certain limitations

to the study. Below are some of the limitations of the research conducted:-

o The sample size was small; interview with more number of specifies could have

given a better picture on the overall acceptability of cement among them.

o Time frame was also one of the major limitations of the study. Research like this

which concern with taste and preferences of human beings generally require a

patient hearing and understanding. Since the people interviewed were all busy

professional an honest hearing and understanding of the subject from them were

very rare.

o Some of the people interviewed were not that clear about their opinion.

o Since the forms were filled by the interviewer there is a fair chance of lack of

understanding on her/his part. In some cases views were not communicated

properly.

CONCLUSIONIt can be concluded from the research that customer has a preference of

J.K Cement due to its quality availability and strength. Due to good

distribution network in gurgaon, J.K cement is widely used cement brand.

Several conclusions are derived:

Quality matters a lot in buying JK Cement in gurgaon.

Dealers and Sub dealers have lot of knowledge about the

product.

It has goodwill in the market.

To improve further the company should margin. They think in

term of getting low margin and facing intensive competition as

retailer face in it.

Contractor gives emphasis on price, so price decreases for

contractor for bulk purchase.

Lack of advertising of JK Cement in Gurgaon, which directly

affected the sale in Gurgaon.

BIBLIOGRAPHYBOOKS

Marketing management

Marketing research

Magazines and Journals

Business Today

Business India

India Today

Journal of Organizational Behavior

American Journal of Industrial Medicine

Strategic Management Journal Psychology

WEBSITES

www.google.co.in

www.jkcement.com

www.12manage.com

www.marketingguru.com

www.wikepedia.com

http://www.wikepedia.com/

http://www.marketingguru.com/

http://www.12manage.com/

http://www.jkcement.com/

http://www.google.co.in/

www.icicidirect.com

www.researchandmarkets.com

http://www.researchandmarkets.com/

http://www.icicidirect.com/

Date post:	22-Oct-2014
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A Report on J.K Cement ltd

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