1 CHAPTER 1: INTRODUCTION INDIAN CEMENT INDUSTRY Cement is a key infrastructure industry. It has been decontrolled from price and distribution on 1 st March, 1989 and delicensed on 25 th 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. Industry Background The history of the cement industry in India dates back to the 1889 when a Kolkata-based company started manufacturing cement from Argillaceous. But the industry started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War I gave the first initial thrust to the cement industry in India and the industry started growing at a fast rate in terms of production, manufacturing units, and installed capacity. This stage was referred to as the Nascent Stage of Indian Cement Industry. In 1927, Concrete Association of India was set up to create public awareness
Transcript
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CHAPTER 1: INTRODUCTION
INDIAN CEMENT INDUSTRY
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.
Industry Background
The history of the cement industry in India dates back to the 1889 when a Kolkata-based
company started manufacturing cement from Argillaceous. But the industry started
getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was
established in Porbandar with a capacity of 10,000 tons and production of 1000 installed.
The World War I gave the first initial thrust to the cement industry in India and the
industry started growing at a fast rate in terms of production, manufacturing units, and
installed capacity. This stage was referred to as the Nascent Stage of Indian Cement
Industry. In 1927, Concrete Association of India was set up to create public awareness on
the utility of cement as well as to propagate cement consumption.
The cement industry in India saw the price and distribution control system in the year
1956, established to ensure fair price model for consumers as well as manufacturers.
Later in 1977, government authorized new manufacturing units (as well as existing units
going for capacity enhancement) to put a higher price tag for their products. A couple of
years later, government introduced a three-tier pricing system with different pricing on
cement produced in high, medium and low cost plants.
Cement industry, in any country, plays a major role in the growth of the nation. Cement
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industry in India was under full control and supervision of the government. However, it
got relief at a large extent after the economic reform. But government interference,
especially in the pricing, is still evident in India. In spite of being the second largest
cement producer in the world, India falls in the list of lowest per capita consumption of
cement with 125 kg. The reason behind this is the poor rural people who mostly live in
mud huts and cannot afford to have the commodity. Despite the fact, the demand and
supply of cement in India has grown up.
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 milliontonnes. 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%.
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.
STRUCTURE OF THE INDIAN CEMENT INDUSTRY
It is a fragmented industry. There are 56 cement companies in India, operating
124 large and 300 mini plants, where majority of the production of cement (94%)
in the country is by large plants.
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One of the other defining features of the Indian cement industry is that the
location of limestone reserves in select states has resulted in its evolving in the
form of clusters.
Since cement is a high bulk and low value commodity, competition is also
localized because the cost of transportation of cement to distant markets often
results in the product being uncompetitive in those markets.
Another distinguishing characteristic comes from it being cyclical in nature as the
market and consumption is closely linked to the economic and climatic cycles. In
India, cement production is normally at its peak in the month of March while it is
at its lowest in the month of August and September. The cyclical nature of this
industry has meant that only large players are able to withstand the downturn in
demand due to their economies of scale, operational efficiencies, centrally
controlled distribution systems and geographical diversification.
Technology Up-gradation
Cement industry in India is currently going through a technological change as a lot of
upgradation and assimilation is taking place. Currently, almost 93% of the total capacity
is based entirely on the modern dry process, which is considered as more environment-
friendly. Only the rest 7% uses old wet and semi-dry process technology. There is also a
huge scope of waste heat recovery in the cement plants, which lead to reduction in the
emission level and hence improves the environment.
Major Players in Indian Cement Industry
There are a number of players prevailing in the cement industry in India. However, there
are around 20 big names that account for more than 70% of the total cement production
in India. The total installed capacity is distributed over around 129 plants, owned by 54
major companies across the nation.
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Following are some of the major names in the Indian cement industry:
Company Production Installed Capacity
ACC 17,902 18,640
Gujarat Ambuja 15,094 14,860
Ultratech 13,707 17,000
Grasim 14,649 14,115
India Cements 8,434 8,810
JK Group 6,174 6,680
Jaypee Group 6,316 6,531
Century 6,636 6,300
Madras Cements 4,550 5,470
Birla Corp. 5,150 5,113
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POTER’S FIVE FORCE MODEL FOR CEMENT INDUSTRY
Threat of New Entrants:The high capital costs acts as a major entry barrier for the
entryof new players. The high freight costs make it difficult to import cement.Cement
being a high volume low value commodity results in high freightcosts, which makes
cement imports economically unfeasible. DomesticCement industry is highly insulated
from global cement markets. With GoIintervention, making cement duty free, cement is
being imported from
neighboring countries. However, due to logistics issues and lack of porthandling
capabilities, imports of cement will remain negligible and do not pose a threat to
domestic industry.
Threajjuyuyutyuthhghs of New Entrants
Competitive Rivalry between Existing Players
Bargaining Powers of Suppliers
Threats of Substitute
Bargaining Powers of Buyers
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Bargaining power of Suppliers:The major inputs are coal and power. The Prices of both
coaland power are determined by the government. To mitigate the high costs of power
the cement players have set up captive power plants.
Competitive rivalry between existing players:Previously the rivalry was strong among
theplayers, as the industry was not consolidated. During the last few years the industry
has become more consolidated with the Top 3 players having a combined market share of
49 percent in 2009-10 as compared to 32percent in 2004-05.
Bargaining power of Buyers: Retail sales constitute about 80 percent of the total sales
and therest is institutional sales. The retail buyers don’t have any bargaining powerwhile
the institutional buyers get a discount of 5 to 10 percent as they buycement in bulk.
Threat of Substitutes:There are no good substitutes for cement.
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Company’s Profile
Meghalaya Cement Limited
MCL has emerged as one of the most successful players in the NE region. They have the
2nd largest market share of 24% in the eastern region of India. The company is having
dual certifications as an ISO 9000:2001 certified company coupled with TQM guided
process, which has made them among the cream of the crop in cement industry in North
East region of India, as well as an environment-friendly company with ISO 14001
certification for environment systems, first in North East.
Meghalaya Cement Limited acknowledges that it’s high time to conserve the
environment for our future generations amidst alarms of global warming and thus, have
taken up massive drive for development of Green belt in NER and has a target of planting
70,000 saplings each year.
Meghalaya Cement Limited is one of the most profitable cement manufacturers in North
East India.
Because of its prudent locational advantage
Because of its timely raw mayerial linkage
Because of its proactive capacity expansion
Because of its expert brand positioning
Product:
MCL’s product range includes Ordinary Portland cement(OPC $#-Grade) and (OPC 53-
Grade) and Portland Pozzolana Cement (PPC) in line with evolving customer needs.
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Plant:
MCL’s 0.6 MTPA integrated cement plant at Lumshnong(Meghalaya) is proximate to
key raw material reserves of limestone, coal and shale. The company also added 0.46
MTPA cement unit in Meghalaya (via its subsidiary) aggregating an installed capacity of
1.0 MTPA.
Pride:
MCL was recognized by the Meghalaya state government for its pioneering cement plant
in the backward area of Lumshnong in @005. The company is ISO 9001:2000 certified.
Penetration:
MCL’s brand “TOPCEM” is one of the largest in the North East Region. More than 400
Distributers and dealers network spread across Seven States of North-East India.
The company’s institutional customers comprise L&T, National hydro Power
Corporation, Public Works Department, Indian Railways and Ministry of Defence.
The plant is located at village Lumshnong, Meghalaya on NH 44 near to Shillong.
Meghalaya Cements Limited uses Advanced Dry Process Rotary Kiln Technology.
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Presently MCL is marketing three different types of cement.
These three types of cements are:
1. Ordinary Portland Cement 43 Grade
2. Ordinary Portland Cement 53 Grade
3. Portland Pozzolana Cement
Ordinary Portland Cement 43 and 53 Grade:
Ordinary Portland Cement (OPC)is manufactured in the form of different grades, the
most common in India being Grade-53 and Grade-43. OPC is manufactured by burning
siliceous materials like limestone at 1400 degree Celsius and thereafter grinding it with
gypsum.
Tata Chemicals Limited is a major producer of OPC Grade 43 and 53. The value of each
of these grades of cement has been briefly mentioned below:
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Ordinary Portland Cement-Grade 43: Having been certified with IS 8112:1989
standards, Grade 43 is in high demand in India and is largely used for residential,
commercial, and other building construction purposes. It has a compressive
strength of 560 kg per square cm..
Ordinary Portland Cement-Grade 53:Having been certified with IS12269:1987
standards, Grade 53 is known for its rich quality and is highly durable. Hence it is
used for constructing bigger structures like building foundations, bridges, tall
buildings, and structures designed to withstand heavy pressure. The chemical
components of Ordinary Portland Cement are Magnesium (MgO), Alumina (AL2O3),
Silica (SiO2), Iron (Fe2O3), and Sulphur trioxide (SO3).
Portland Pozzolana Cement:
Portland Pozzolana Cement is manufactured by blending pozzolanic materials, OPC
clinker, and gypsum either grinding them together or separately. Today Portland
Pozzolana Cement is widely in demand for industrial and residential buildings, roads,
dams, and machine foundations.
Pozzolana is an important ingredient in PPC which is commonly used in the form of:
Fly ash
Volcanic ash
Silica fumes
Calcined clay
PPC is used in heavy load infrastructure and constructions such as marine structures,
hydraulic structures, mass concreting works, plastering, masonry mortars, and all
applications of ordinary Portland cement
BOARD OF DIRECTORS(MCL)
Kailash Chandra Lohia- Chairman
Bijay Kumar Garodia-Vice-Chairman
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Mahendra Kumar Agarwal-Managing Director
Ram AwtarAgarwalla -Managing Director
Phone Syieh -Director
Corporate Social Responsibility of Meghalaya Cement Limited:
1. They have invested about 2 lacs in children parks.
2. They have established a 1,000 people capacity community hall to endorse local
people to participate in various cultural endeavors.
3. They organize some get together wherein people take part, enjoy & have dinner
with us.
4. They have, humbly, provided heavy-equipments& our vehicles in the construction
of 3 playgrounds in Thangskai, Wahiajer&Chiehruphi.
5. They are providing cement to the villagers at subsidized price-tag
6. They have invested almost 7 lacs in the erection of Welcome Gate near Jowai on
the border of East Khasi Hills &Jaintia hills district.
7. They have already invested INR 4 lacs in medical & health care, our plant doctors
also, do some visits in the local villages & we also arrange for ambulance, all free
of charge.
8. They arrange for safe, pure & healthy drinking water for the village people so that
they are in better health.
9. They also have some plans to do some medical camps in the future.
10. They make donations to local NGOs, churches & schools.
11. There are other things which we do for the neighborhood, like encouraging social
events such as Miss Beauty contest, so that there is a whole some all-round
development of the society & individuals constituting it.
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Sales Discounts
This are the discounts given by company to its dealers to increase sales.Generally
the following types of discount are available to the dealers after approval of the Higher
Authority:-
Cash discount
Target Discount
Special Discount
Additional Occasional Discount
Cash Discount
The company gives an incentive to the party for timely payment in the form of a discount called
the Cash Discount (C.D) to speed up the process of payment. From the date ofdespatch of goods
if the party makes payment such that his total outstanding is cleared by the payment and such that
the payment gets deposited on/before 10 days or on/ before 17days, the party gets a discount of
Rs 5/- or Rs 3/- respectively per bag on the last lifting of cement. However the number of days
may be extended for certain dealers on special permission of higher authority. No Cash Discount
is adjusted for part payment. Cash Discount is a scheme for parties under trade.
When the date of deposit is compared to the date a party is entitled to get Cash Discount, the date
of deposit is considered and not the cheque date. In case of Demand Draft, however the date
when the Demand Draft is made is considered for the simple fact that a Demand Draft is made
available only after the payment is done.
Target Discount
This type of discounts depends on the individual achievement of the target of a particular dealer.
The dealers are given targets by the company to be fulfilled on a monthly/quarterly basis. On the
successful achievement of the targets the dealers are given this type of discount.
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Special Discount
A Special Discount is a discount which is given to the dealers in a particular period on the
proposal of the Sales & Marketing Department after approval of the Higher Authority. This type
of discount is generally proposed by the S & M Department when they feel that giving a special
discount will bolster the sales figure, due to tough competitive prices of other companies, to
compete with special schemes of other competitors.
Other Additional Discount
This is an occasional discount which is given to dealers of a particular area or region on special
occasions. For example discounts may be given during the Christmas season on any lifting done
by the dealer in Meghalaya region. This is a type of additional discount.
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Distribution Network of Meghalaya Cement Limited
MCL distributes the cement both directly and through middlemen
C&C&FAGEN
DEALERS
GODOWN
RETAILERS
END CUSTOMER
PLANT CONTRACTORS, BUILDERS
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The project was carried out at Meghalaya Cement Ltd. at Guwahati region.
Purpose of the study:
The foremost purpose of the study is to know the dealers preference towards Topcem
cement in Guwahati and to identify the major competitors and know the key buying
factors so the company can know what is more important for dealers while purchasing a
cement. The study is done to know whether the dealers are satisfied with the Topcem
cement or not.
This are the key buying factors of a product which the dealers focus while purchasing:
1) DEMAND
2) PRICE
3) QUALITY
4) PACKAGING
5) ADVERTISEMENT
6) SUPPLY
7) CUSTOMER SERVICE
8) DELIVERY
9) CREDIT POLICY etc.
DEMAND
Demand is the amount of goods consumed from the market by the customers in a given
period. Demand of a product varies according to the different stages of product life
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cycle. In introduction stage the demand of a product is generally low. At growth stage
the demand of that product increases rapidly. At mature stage the demand reaches its
pick point and in decline stage it starts decreasing.
The demand of a product is inversely proportional to price. If price becomes high the
demand of that product becomes low and vice-versa.
The demand of a product also depends upon its competitors. If a lots of substitute
product is available in comparatively lower price the demand of that product ultimately
decreases. And if it is a monopoly market the demand of that product always increases.
PRICE
Price is the value paid by a customer in terms of money against a product. Traditionally
price has been the major determinant of buyer’s choice. And this is still the case with
large segments of buyers across the globe, Although no price factors becomes the quit
important in last few decades price still remains an important factors in determining sales
and profitability.
Some price conscious customers proffered the lower priced products. For example
contractors of a construction always prefer the lower priced products. So, lower price
becomes the key buying factor for those customers.
QUALITY
Quality is the totality of features and characteristics of a product or service that bears on
its ability to satisfy stated or implied needs. We can say that the seller has delivered
quality whenever its product or service meets or exceeds the customer’s expectation.
Quality is clearly the key to value creation & customer satisfaction.Some quality
conscious customers always preferred the higher quality product or services. Suppose a
high society person wants to make a house for his own, in that case he will always prefer
the higher quality product for his house construction. So, quality becomes the key buying
factor of that product for him.
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PACKAGING
Packaging can be defined as all the activities of designing and producing the container
for a product. From the perspective of both the firm and consumers, packaging must
achieve a number of objectives-
1) Identify the brand
2) Convey descriptive and persuasive information
3) Facilitate the product transportation and protection
4) Assist at home storage
5) Aid product consumption
Well designed product can build brand equity and can drive sales. The package is the
buyer’s first encounter with the product and is capable of turning the buyer on and off.
ADVERTISEMENT
Advertising is the dissemination of information concerning an idea, service or product to
compel action in accordance with the intent of the advertiser.
The advertisement can also become the key buying factor of a product. For example the
fans of Shah Rukh Khan will always prefer the product advertised by him. So,
advertisement may become the key buying factors of product like, Hyundai car, Sun
feast biscuits etc.
SUPPLY
Supply can also be the key buying factor of a product. If a product is available in market
the customers of its substitute products which are not available in market may shift to
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that product which is available. Thus availability or supply becomes the key buying
factor of that product. Supply is directly proportional to its production. So, if the
production of a good is very high the supply of that product automatically becomes
good.
CUSTOMER SERVICE
Customer service is to satisfy a customer before or after buying a product in any aspect.
It is also a buying factor of a product. A customer always wants a good and easy service
from the sales force of a product. So, the product of those companies which gives the
best customer service is usually preferred by most of the customers.
DELIVERY
Delivery time is the delay between an order placed for a product and its achievement.
Delivery can also become the key buying factor of a product. For example an
automatised work shop or production company will always prefer the quick delivery of
raw materials.
CREDIT POLICY
Credit policy can also become the key buying factor of any product. For example the
contractors always get their payment after compilation of their work. So, they will
always prefer those companies who will give them the long term credit.
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CHAPTER 2:LITERATURE REVIEW
A.Veena1(1999) studied the importance and widespread interest in dealer performance
and consumer preference, the main objectives of the study are to know the factors which
influences the dealers' preference, understand the strengths and weaknesses of different
automobile dealers, to suggest measures for automobile dealers to take care of the factors
which influences the consumers' decision. The study used both primary and secondary
data. The primary data were collected through a survey conducted in Bangalore. The
sample size is restricted to 20.The survey used a questionnaire, which had twenty-one
statements. The responses were collected on a five point Likert Scale ranging from 1
(Strongly Agree) to 5 (Strongly Disagree). Five point Likert scale, being the simplest and
easy to understand, is suitable for this category of respondents. Factor analysis was used
for analysis
.
The study of Automobile dealers have a crucial role in marketing cars. The time has
come for them to adapt to the changing expectations of customers. From this study it is
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clear that Word of mouth and facilities, promotion, accessibility, personalized service,
acquaintance, and association with the dealer play a very important role in customers'
choice of the dealer. All dealers are not performing at the same level. This should help
the dealers to manage the factors which influences customers purchase decision
Ferdinand F. Wirth(2001) studied to characterize the seafood dealer market and
identify opportunities andchallenges associated with marketing to seafood dealers. A
literature review was conducted to identify what is known about shrimp attitudes,
preferences and purchase behaviors of seafood dealers (wholesale and retail), A primary
research was done in this research. A four-page survey instrument was developed and
administered by mail to 3038 seafood dealers in the nine southeastern U.S. states. Two
hundred and fifty (250) of the remaining 2785 surveys were completed and returned,
giving an
effective response rate of 9.0%.
Sutton, Stephen (1998), in this study we investigate which factors determine the
automobile brand and dealer loyalty of Mexican consumers, and to what extent. The
main purpose of this study is to explore which factors determine the automobile brand
and dealer loyalty of Mexican consumers, and to what extent. Secondary data were used,
and they collected data on brand loyalty and dealer loyalty among customers who bought
their vehicle two years or more ago. Executives from the manufacturer proposed five
dealer units in which to perform the study. Second was the design of a depth interview
guide. The sample consisted of 100 customers from the 5 selected dealers. The
interviews were conducted with customers who bought their vehicle two years or more
ago to permit evaluation of loyalty behavior.
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Dr.N.Subbura(2004) studied the dealer perception towards the phones, factor which
influence dealer to buy the product and awareness and attitude of dealers towards the
phones.This is based on primary data through interview schedule 70 dealers in
Virudhunagar city. In this study the dealer preference relating to mobiles phones were
described with the help of percentages analysis were made.In this study an attempt by
the researcher has been analyse the dealers preference of cell phone. The analsis of data
is based on the attitude or opinion, awareness and selection of brand of cell phones in
Virudhunagar city. A brand name may manipulate the dealers perception about the
product. Brand names are often useful in establishing an overall product concept.
CHAPTER3 :RESEARCH METHODOLOGY
3.1 RESEARCH OBJECTIVES
To find out the position of Topcem cement and its mqjor competitors in the
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Guwahati city.
To evaluate various key buying factors responsible for Topcem Cement.
To study the preference with respect to various brands of cement and specially
towards Topcem cement.
To analyze various promotional strategy given by Topcem brands.
3.2. RESEARCH DESIGN
For this study, descriptive research design is been used., because in this study some
particular characteristic of a certain group are identified.
3.3 SAMPLE SIZE
The sample size of the survey was 52 dealers of Topcem brands, and the research was
conducted in Guwahati city.
3.4. SOURCES OF INFORMATION
For this study information is collected from two sources-
1) Primary data and
2) Secondary data.
This study is based on both primary and secondary data. The secondary data is collected
from books, journals, magazines and web sites.
The primary data of the proposed study is collected from the dealers through
questionnaires.
Here the questionnaire is developed with 14 numbers of questions to collect the data
from the selected sample. Most of the questions of the questionnaire are of multiple
choice types.
3.5. CONTACT METHOD
Personal interview methods were used for conducting the market survey. Personal
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interview had the benefit one to one communication between the researcher and the
respondent
3.6. METHOD OF ANALYSIS
The methods of analyzing the data are very simple as all the data are collected in a
systematic manner. Some common statistical diagrams and charts and a software
package are used to analyze the data.
3.6.1DIAGRAMS & CHARTS USED:-
Frequency, cross sectional and percentage were used to analyse data and pie and bar
charts were used to represent the data.
3.6.2SOFTWARE PACKAGED USED:-
Microsoft office excel is used to analyze the collected data.
.
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CHAPTER-4:DATA ANALYSIS AND FINDINGS
In this, the company has provided me with the list of dealers in Guwahati to conduct a
survey to know the dealers preference towards cement and they provided mewith the
information related to discounts, schemes which they provides to the dealers.
4.1 Dealer brand preference:-
According to the various dealers, their preference towards TOPCEM CEMENT is as
follows-
10 dealers out of 52 dealers, their first preference where towards Topcem cement. 2
dealer preferred for Taj cement, for Star cement were 8, Lafarge cement for 13, Adhunik
cement for 3, Ambuja cement for 12 and 4 dealers preferred for Surya Gold.
TABLE 1- Dealer Preference
Brands Your Preference
Topcem 10
Taj 2
Star 8
Lafarge 13
Adhunik 3
Ambuja 12
Surya Gold 4
The above data is expressed by the following pie diagram-
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FIG 1: CHART SHOWING THE PREFERENCE OF DEALER S TOPCEM CEMENT
19%
4%
15%
25%
6%
23%
8%
preference
topcem taj star lafarge adhunik ambuja surya gold
From the table 1 we can find out which company the dealer would prefer the
most if given choice .According to the survey done on 52 dealers I found out that
the most preferred brand by the dealer was Lafarge followed by Ambuja,
Topcem,Star,Adhunik,Surya Gold and the least preferred was Taj.
According to me, the reasons that made Lafarge most prefeered were its global
presence. Though Ambujaalso being a global brand gave a head on competition
to Lafarge but could not compete to it for various factor.
Topcem was not so popular as compare to global brands but was the most
preferred when compare to regional brands.
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4.2. THE DEMAND OF TOPCEM CEMENT IN THE MARKET OF
GUWAHATI CITY
According to the various dealers the demand of TOPCEM CEMENT in the area is as
follows-
15 number of counters out of total 52, comments that the demand of TOPCEM
CEMENT in their counters is VERY HIGH.
21 number of counters out of total 52, comments that the demand of TOPCEM
CEMENT in their counters is HIGH.
16 number of counters out of total 52, comments that the demand of TOPCEM
CEMENT in their counters is AVERAGE.
No counters comment that the demand of TOPCEM CEMENT is LOW in their counter.
TABLE 2- DEMAND DISTRIBUTION
DEMAND NO. OF COUNTERS COVERED
VERY HIGH 15
HIGH 21
AVERAGE 16
LOW 0
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The data is expressed by the following pie diagram-
FIG 2: CHART SHOWING THE DEMAND POSITION OF TOPCEM CEMENT
29%
40%
31%
Demand
very high high average low
From the table 2 we can see that 29% counters the demand of TOPCEM CEMENT is
very high in the area, where another 40% comments that the demand is high in the area
and rest 31% comments that the demand is average in the area and even a single counter
supports in favors of low demand.
.
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4.3. THE PRICE POSITION OF TOPCEM CEMENT COMPARE TO OTHER
CEMENTS IN THE GUWAHATI
The price of TOPCEM cement compare to other cement in the area can be described as
follows
Not even a single counter out of 52 counters comment that the price of
TOPCEM CEMENT is very high compare to other cements in their counter.
According to 36 numbers of counters out of the total 52 counters the prices of
TOPCEM CEMENT compare to other cements is high in their counters.
15 counters out of the total number of counters comments that the price of
TOPCEM CEMENT is same with other cements in their counters.
Where only one counter comment that the price of TOPCEM CEMENT is low
compare to other cements in the counter.
TABLE 3: PRICE DISTRIBUTION
PRICE OF TOPCEM CEMENT COMPARE TO OTHER CEMENTS
NUMBER OF COUNTERS FAVOURED
VERY HIGH 0
HIGH 36
SAME 15
LOW 1
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THE DATA CAN BE SHOWN BY THE FOLLOWING BAR CHART-
FIG3: CHART SHOWING THE PRICE POSITION OF TOPCEM CEMENT
From the table 3 we can conclude that no counter said that the price of TOPCEM
CEMENT compare to other cements is very high in the area, where 69% of the counters
said that the price of TOPCEM CEMENT is high compare to other cements in the area,
another 29% of the counters comments that the price is same with the other cements in
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the area, ant according to 2% of the counters the price is low compare to others in the
area.
4.4. THE QUALITY OF TOPCEM CEMENT COMPARE TO ITS
COMPETITORS IN GUWAHATI
According to the dealers in Guwahati as per the consumers suggested the quality of
TOPCEM CEMENT compare to other cement can be described as follows-
11 counters out of 52 counters comments that the quality of TOPCEM cement compare
to other cements in the area is very high.
21 counters out of 52 counters comments that the quality of TOPCEM cement compare
to other cements in the area is high.
20 counters out of 52 counters comments that the quality of TOPCEM cement compare
to other cements in the area is average.
Not even single counters comments that the quality of TOPCEM cement compare to
other cement in the area is low.
TABLE 4:- QUALITY COMPARE TO OTHERS
THE QUALITY OF TOPCEM CEMENT COMPARE TO OTHER CEMENTS
NO. OF COUNTERS OCCUPIED
VERY HIGH 11
31
HIGH 21
AVERAGE 20
LOW 0
FROM THE TABLE WE CAN DRAW THE FOLLOWING BAR CHART:-
FIG4: CHART SHOWING THE QUALITY OF TOPCEM CEMENT COMPARE TO OTHERS.
32
From the figure 4 we can see that 21% of the counters said that according to the
customers the quality of TOPCEM cement compare to other cement available in that
area is very high, another 40% of the counters comments that the quality of TOPCEM
cement is high compare to its competitors, and rest 38% of the counters comments that
the quality is average compare to the other cements.
No counters comments that the quality of TOPCEM cement is low compare to other
cements.
4.5. THE PACKAGING OF TOPCEM CEMENT
According to the various dealers the packaging of TOPCEM cement can be described as
follows-
11 number of counters out of the total 52 comments that the packaging of TOPCEM
CEMENT is very good.
27number of counters out of the total 52 comments that the packaging of TOPCEM
CEMENT is good.
14 number of counters out of the total 52 comments that the packaging of TOPCEM
CEMENT is average.
No any counter comments in favor of POOR packaging of TOPCEM CEMENT.
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TABLE 5:- PACKAGING COMPARISON
THE PACKAGING OF TOPCEM CEMENT
NO. OF COUNTERS OCCUPIED
VERY GOOD 11
GOOD 27
AVERAGE 14
POOR 0
FROM THE ABOVE TABULATED DATA WE CAN DRAW THE FOLLOWING BAR CHART-
FIG 5: CHART SHOWING THE PACKAGING POSITION OF TOPCEM CEMENT
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From the figure 5, we find that, 21% of counters said that the packaging of TOPCEM
CEMENT is very good, where 52% of the counters comments that the packaging of
TOPCEM CEMENT is just good and another 27% of counters said that the packaging of
TOPCEM cement is average.
We don’t find any counters to comment in favore of poor packaging of TOPCEM
CEMENT.
4.6. ADVERTISEMENT OF TOPCEM CEMENT ACCORDING TO THE
35
DEALERS OF GUWAHATI
According to the dealers of Guwahati area the the advertisement of TOPCEM CEMENT
can be explained as follows-
Out of the 52 samples of our survey-
Only 6 counters said that advertisement of TOPCEM CEMENT is very good.
27 counters said that it is good.
Another 18 counters said that it is average.
And only one counter said that the advertisement is poor.
TABLE 6:- ADVERTISEMENT COMPARISON
THE ADDVERTISEMENT OF TOPCEM CEMENT
NUMBER OF COUNTERS SUPPORTED
VERY GOOD 6
GOOD 27
AVERAGE 18
POOR 1
THE ABOVE DATA CAN BE SHOWN BY THE FOLLOWING PIE CHART-
FIG 6: CHART SHOWING THE ADVERTISING POSITION OF TOPCEM CEMENT
36
12%
52%
35%
2%very good good average poor
From the figure 6, we can see that, according to 11% of counters the advertisement of
TOPCEM CEMENT is very good.
According to 52% of counters the advertisement is good only.
Another 35% of counters said that the advertisement is average.
And only 2% of counters support the poor advertisement of TOPCEM CEMENT.
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4.7. THE SUPPLY OF TOPCEM CEMENT IN GUWAHATI
The supply of TOPCEM CEMENT in Guwahati according to various dealers of that area
can be explained as follows-
According to 27 number of counters out of the total 52 counters said that the supply is
very good.
22 counters comments that the supply is good ony.
Another 3 counters said that the supply is average in that area.
Not even a single counter support the poor supply of TOPCEM CEMENT in Guwahati.
TABLE 7:- SUPPLY COMPARISON
THE SUPPLY OF TOPCEM CEMENT NO. OF COUNTERS SUPPORTED
VERY GOOD 27
GOOD 22
AVERAGE 3
POOR 0
THE ABOVE DATA CAN BE EXPRESSED BY THE FOLLOWING BAR CHART-
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FIG 7: CHART SHOWING THE SUPPLYING POSITION OF TOPCEM CEMENT
In the figure 7, chart we can see that-
52% of the counters supports the very good supply of TOPCEM cement.
42% of counters supports the good supply
And only 6% of counters supports the average supply.
No any counter said that the supply is poor.
39
4.8. THE CUSTOMER SERVICE OF TOPCEM CEMENT IN GUWAHATI
According to the various dealers the customer service of TOPCEM CEMENT in
Guwahati can be explained as follows-
According to 10 counters out of 52 counters said that they are very satisfied by the
service of sales force of TOPCEM CEMENT.
41 number of counters comments that the sales force’s service is satisfactory only.
Only 1 counter said that he is getting average service.
Not a single counter comments that the customer service is dissatisfactory.
TABLE 8:- CUSTOMER SERVICE COMPARISON
CUSTOMER SERVICE OF TOPCEM CEMENT
NO. OF COUNTERS SUPPORTED
VERY SATISFACTORY 10
SATISFACTORY 41
AVERAGE 1
DISSATISFACTORY 0
THE ABOVE DATA CAN BE EXRESSED BY THE FOLLOWING BAR CHART-
40
FIG 8: CHART SHOWING THE CUSTOMER SATISFACTION PROVIDED BY TOPCEM CEMENT
From the calculation in figure 8, we can see that-
19% of counters are very satisfied by the service provided by the sales force of
TOPCEM CEMENT.
79% of counters are only satisfied by the service.
2% of counters said that the service is average.
No any counter is dissatisfied by the service of TOPCEM CEMENT.
.
41
4.9. THE DELIVERY OF TOPCEM CEMENT IN GUWAHATI
According to various dealers the delivery of TOPCEM CEMENT in Guwahati can be
explained as follows-
Out of the total survey sample of 52 counters-
41 counters said that the delivery is very good.
6 counters said that the delivery is good.
5 counters said that the delivery is average.
No counters said that the delivery is poor.
TABLE 9:- DELIVERY STATUS
THE DELIVERY OF TOPCEM CEMENT NO. OF COUNTERS SUPPORTED
VERY GOOD 41
GOOD 6
AVERAGE 5
POOR 0
42
THE ABOVE DATA CAN BE EXPRESSED BY THE FOLLOWING PIE CHART-
FIG 9: CHART SHOWING THE DELIVERY STATUS OF TOPCEM CEMENT
79%
12%
10%very good good average poor
From the calculation in figure 9, we can see that, 79% of counters comments that the delivery of TOPCEM CEMENT in Guwahati is very good.
43
12% of counters comments that the delivery is good only.
10% of counters supports the average delivery.
0% of counters supports the poor delivery.
TABLE 10-THE CREDIT POLICY OF TOPCEM CEMENT
According to various dealers the credit of TOPCEM CEMENT in Guwahati can be
explained as follows-
Out of the total survey sample of 52 counters-
44 counters said that the credit policy is very good.
6 counters said that the credit policy is good
2 counters said that the credit policy is average.
No counters said that the credit policyis poor.
TABLE 10:-CREDIT POLICY
THE CREDIT POLICY OF TOPCEM
CEMENT
NO. OF COUNTERS SUPPORTED
VERY GOOD 44
GOOD 6
AVERAGE 2
POOR 0
44
THE ABOVE DATA CAN BE EXPRESSED BY THE FOLLOWING PIE CHART-
FIG 10: CHART SHOWING THE CREDIT POLICY OF TOPCEM CEMENT.
85%
12%
4%Very High High Average Poor
From the calculation in figure 10, we can see that, 79% of counters comments that the
credit policy of TOPCEM CEMENT in Guwahati is very good.
12% of counters comments that the delivery is good only.
45
10% of counters supports the average delivery.
0% of counters supports the poor delivery.
4.11. THE KEY BUYING FACTORS OF TOPCEM CEMENT IN GUWAHATI
In the previous pages we have discused about the various buying factors of TOPCEM
Cement in Guwahati. Now the cumullative key buying factors of TOPCEM Cement in
that area can be summarised as follows-
TABLE 11- BUYING FACTORS DISTRIBUTION
FACTORS DEMAND PRICE QUALITY
PACKAGING ADVERTISEMENT SUPPLY CUSTOMER SERVICE
POSITIONS
VERY HIGH
15 0 11 11 6 27 1O
HIGH
21 36 21 27 27 22 41
AVERAGE
16 15 20 14 18 3 1
LOW
0 1 0 0 1 0 0
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FROM THE ABOVE TABULATED DATA WE CAN DRAW THE FOLLOWING BAR CHART-
FIG 11: CHART SHOWING THE KEY BUYING FACTOR’S COMPERATIVE POSITION OF TOPCEM CEMENT
47
INTERPRETATION
From the calculations, we can find out the best effective buying factors of TOPCEM
cement in the Guwahati.
These factors can be ranked according to their effectiveness in consumer buying
behaviour as follows-
TABLE 12- THE COMPETITIVE EFFECTIVENESS OF THE BUYING
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FACTORS
THE COMPETITIVE EFFECTIVENESS OF THE BUYING FACTORS
The main strength of Topcem cement is its distribution. It almost covers the whole
market of entire North East. The production of Topcem cement is also good and in most
of the times it remains available. The demand is also very high in the market. The credit
policy is also very good. Most of the times the dealers get sufficient credit from its
suppliers.
WEAKNESS:
The Topcem cement is fighting with Lafarge, Ambuja in terms of quality. So it has to
improve its quality to give competition with those cements in Indian Market. The
Topcem cement is very weak in advertisement compare to other cements. The price of
Topcem cement is little bit higher than its main competitors like Star, Taj, Surya Gold,
BEST etc.
OPPORTUNITIES:
The Topcem cements only covers the market of North East, but it does not yet available
in whole Indian market. So it has a great opportunity to supply out of North East. The
white cement producer is not available in North East, so Topcem cement can take a big
step to produce white cement. It can also place different plants in various different places
of India. The company can expand its business in various different areas, such as
hospitals, educational institutes etc. it has already taken five new projects, the success of
these five projects will be a great opportunity for Topcem cement.
THREATS:
There are a huge number of new cement manufacturing plants are growing in North East
region and they are producing high quality of cements in lower price. So, it becomes a
big threat for Topcem cement in North East. The raw materials are also decreasing day
by day. After days it will be not available and the manufacturing cost will be high.
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FINDINGS:
Now we can rank the key buying factors according to their effectiveness on
dealers buying behaviour by the following way-
A)According to the survey, it is found that the most effective buying factor is the
CREDIT POLICY, with 83% very high, 11% high and 6% average possition.
B)The second effective buying factor is the DELIVERY, with 79% very high,
12% high and 10% average possition.
C) The third effective buying factor is the CUSTOMER SERVICE, with 19%
very high, 79% high and 2% average possition.
D) The fourthfactor to be considered is SUPPLY, with 52% very good, 42%
good and 6% average position.
E) The fifth factor is DEMAND, with 29% very high, 40% high and 31% of
average possition.
F) The sixth factor is PACKAGING, with 21% very good, 52% good, and 27%
average possition.
G) The seventh factor is QUALITY, with 21% very high, 40% high and 38%
average possition.
H) The eigth factor is ADVERTISEMENT, with 12% very good, 52% good,
34% average and 2% poor possition.
I) And last but not the least buying factor is PRICE, with 69% high, 29% average
and 2% low possition.
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CHAPTER-5: CONCLUSION AND RECOMMODATION
5.1 CONCLUSION:
In the market, Topcem cement is well known brand of cement. This is the result of the
delivery and supply of the Topcem cement along with their effective marketing efforts,
and the dealers of Topcem cement are highly satisfied with the use of it, as they do not
face any problem after buying it.
There is a very high demand of cement in North-East because there is a lot of
construction taking place in the North eastern part of India. The cement manufactured in
North-East is far less than its requirement. But at the same time there is a number of new
cement plant is growing up in North-East. So the competition among them is going to be
very high.
But TOPCEM cement is doing better beyond competition. If it improves its quality,
compromise a little bit in price and develop its advertising policy it could conquer the
market of all other cement and can become the best cement of North-East.There are
certain areas in Guwahati where advertisement is very low, so the company must try to
improve its advertisement. The company should maintain healthy relationship with
dealers and making frequent visit to dealers as well as to sub-dealers and helping them in
solving the problems faced by them.The distribution channel of cement industry must be
52
well designed andmade effective this ensures timely availability of cement to customers.
5.2 RECOMMENDATION
Without any doubt we can say that the position of TOPCEM CEMENT in the market of
Guwahati is very good. The increased demand says about this. But in some of the areas
the TOPCEM CEMENT should improve itself. The area to be improve are like-
There are some customers who are very conscious about the quality of cement.
Quality is one of the weaknesses of TOPCEM cement. So it should improve its
quality to overcome this weakness.
Price is also a major factor. There are a large number of competitors in the
market, who have far lower price than TOPCEM cement. So it should
compromise a little in terms of price.
Advertising is a major tool to attract the customers towards a product. The
advertising of TOPCEM cement is not so good. So it should improve its
advertising policy. Nowadays television is watch by not only by urban people but
also remote people. So, the company must give the more advertisement in Local
channel television, which will give more awareness to people
53
Customer service is another factor of consumer preference. Though TOPCEM
cement is giving a good service in the area it can further improve it into the best.
The white cement producer is not available in North East, so Topcem cement can
take a big step to produce white cement.
The company should maintain healthy relationship with dealers and making
frequent visit to dealers as well as to sub-dealers and helping them in solving the
problems faced by them.
The pricing strategy and margin should be competitive with other brands.
5.3 Limitation of the study:
1. It covers only a small area of Topcem Cement’s market in North East.
2. Many major places of Guwahati city like Maligoan, Adabari, Hazra are tribal
area and they didn’t response well to the questionnaire.
3. Lack of cooperation from the dealers in regard to giving interview.
4. It was experienced during the survey that it was difficult to convince or make the
dealers understand the important of the project.
54
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Sutton, Stephen (1998),”Factors that Influence the Brand Loyalty and Dealer Loyalty of the Automotive Industry: The Case of Mexican Consumers in the Central Region of Mexico”.
Dr.N.Subbura(2004),” A study on dealer preference towards mobile phone in Virudhunagar city.”
Philip Kotlar, Marketing Management 9th edition
NareshMalhotra (2008).,Marketing Research Text and Cases.
