Summer Internship Project

“A Brand Preference Survey - JK Lakshmi

Cement Ltd. in Comparison With Other

Competitor ”

Submitted in partial fulfilment of PGDM program

2015-17

Submitted by

Amit Sharma

23003

Corporate Mentor Faculty Mentor

Mr. Gaurav Sharma Dr. Etinder Pal Singh

Deputy Manager ( Sales ) , Programme head

JK Lakshmi Cement Ltd.

Apeejay School of Management , New DelhiJune 2016

CERTIFICATE

This is to certify that I Amit Sharma Roll No. 23003 have carried out my Summer internship in JK Lakshmi Cement ltd in the area Sales & marketing . It is also certified that the work done by me is original with due references of sources, and has not been submitted elsewhere for the award of any diploma or degree.

_____________________Signature Name of the Student

Date : _________________________

Faculty Mentor

 

ACKNOWLEDGEMENT

I Amit Sharma would firstly like to thank my faculty guide, Dr. Etinder Pal Singh as well as my company mentor, Mr. Gaurav Sharma ( Deputy Manager , sales) for supervising and guiding me during the internship program. This internship program helped me to apply my theoretical knowledge in practical field, hence enhance my knowledge about various aspects in Cement industry .

I would like to show my sincere appreciation to Mr. Gaurav Sharma ( Dy Manager , sales) who was an ideal mentor in true sense. Sir guided me and helped me in areas such as, the topic of the project, for suggesting alternative solutions and sharing his personal valuable experience and knowledge with me.

Besides this, my sincere thanks go to the authority of JK Lakshmi Cement Ltd. for facilitating me with a good working environment and required facilities to complete this project. This project has been possible through the direct and indirect co-operation of various staff members of JK Lakshmi Cement Ltd. as they took initiative to guide me wherever required. I am thankful to Mr. Manish Shekhar ( HR ) , Mr Pankaj ( DGM , Sales ) who guided me and cooperated with me during my training period.

Finally, I would like to express my gratitude to my parents and friends for their endearing

support and cooperation which has made me complete this project fruitfully

EXECUTIVE SUMMARY

During my 2 months internship, my job role was in Sales Executive and Market Research

Analyst.

As a Sales Executive

I arranged appointments from new dealers, retailers, wholesaler, and distributers,

teleconferencing with the prospective customers and in search of new customers. I also has

face to face interaction with new customers, convinced them to purchase our premium

cement JK Lakshmi PRO PLUS, which is of superior quality than the ordinary selling cement

(PPC). Basically my training was divided according to these procedures.

1. Network development

2. Demand generation

3. Outstanding realization

4. Logistics management

5. After sale services

6. Profit centre management

During my training I learnt how to find the prospective seller (dealers, retailers, distributors)

and customers for a particular product. According to my product which was premium cement,

my prospective customers were the people who look for the high quality and strength. To

deal with the customers in contest of the price was a difficult task, as price of this premium

cement is higher than the ordinary saleable cement. Also I learnt how to communicate with

them and convince them to buy the cranes and loaders.

I also learnt that in sales you have to be patient and wait until you are able to satisfy them and

sell the product.

Another important learning was it’s really hard to take out money from some bodies pocket .

The interesting part of my internship was to convince the customers who were from different

background. Since it was very interesting and a challenging task.

During my internship I sold 400 bags of the premium JK Lakshmi PRO PLUS Cement within

2 months period.

As a Market Research Analyst I did two assignments –

1. Brand preference survey with respect to JK Lakshmi Cements Ltd. in comparison with

the competitive brands .

Objective - to analyze brand position of JK Lakshmi Cement in Karnal market .

2. A study on customer satisfaction towards cement products with reference to JK Lakshmi

Cement Ltd.

Objective - to know the satisfaction level of the existing customers.

In these two assignments , I carried out primary research - by interaction with dealers of

different companies and existing customers of JK Lakshmi Cement .

From the first assignment, the company want to know about the market standings of JK

Lakshmi Cement Ltd. In the market and the brand preference influencing factors while

purchasing cement.

With this we want to know about market of premium cements and what are the perception

about the PRO PLUS cement in the market .

From the second assignment, we want to know whether the existing customers of JK

Lakshmi Cement are satisfied with the existing quality , price , after sale service etc and to

find in which field we are lacking behind , where we are doing good or bad , which area the

product need improvement .

This helps to find out the loyalty of the existing customers and area of improvement.

AREA OF INTERNSHIP

My area of internship was MARKETING AND SALES and MARKET RESEARCH.

I- My job position was SALES EXECUTIVE - I dealt with a premium cement

(PRO PULS) product .

II - As a research analyst I had given two assignments –

1. Brand preference survey with respect to Jk Lakshmi Cements Ltd. In comparison

with the competitive brands .

2. A study on customer satisfaction towards cement products with reference to

Jk Lakshmi Cement Ltd .

MARKETING AND SALES MANAGER JOB DUTIES:

Accomplishes marketing and sales human resource objectives by recruiting, selecting,

orienting, training, assigning, scheduling, coaching, counseling, and disciplining

employees; communicating job expectations; planning, monitoring, appraising, and

reviewing job contributions; planning and reviewing compensation actions; enforcing

policies and procedures.

Achieves marketing and sales operational objectives by contributing marketing and

sales information and recommendations to strategic plans and reviews; preparing and

completing action plans; implementing production, productivity, quality, and

customer-service standards; resolving problems; completing audits; identifying

trends; determining system improvements; implementing change.

Meets marketing and sales financial objectives by forecasting requirements; preparing

an annual budget; scheduling expenditures; analyzing variances; initiating corrective

actions.

Determines annual and gross-profit plans by forecasting and developing annual sales

quotas for regions; projecting expected sales volume and profit for existing and new

products; analyzing trends and results; establishing pricing strategies; recommending

selling prices; monitoring costs, competition, supply, and demand.

Accomplishes marketing and sales objectives by planning, developing, implementing,

and evaluating advertising, merchandising, and trade promotion programs; developing

field sales action plans.

Identifies marketing opportunities by identifying consumer requirements; defining

market, competitor's share, and competitor's strengths and weaknesses; forecasting

projected business; establishing targeted market share.

Improves product marketability and profitability by researching, identifying, and

capitalizing on market opportunities; improving product packaging; coordinating new

product development.

Sustains rapport with key accounts by making periodic visits; exploring specific

needs; anticipating new opportunities.

Provides information by collecting, analyzing, and summarizing data and trends.

Protects organization's value by keeping information confidential.

Updates job knowledge by participating in educational opportunities; reading

professional publications; maintaining personal networks; participating in

professional organizations.

Accomplishes marketing and organization mission by completing related results as

needed.

LEARNING OBJECTIVES

1. CUSTOMER SATISFACTION- During my 2 months training I learned how to

convince my customer to buy my product and convince him to believe that the

product he is purchasing is best in the market .

For example, when I used to tell the customers about the premium cement product

they used to ask me different question like what is new in this product , what about

the quality strength. My job was to satisfy him with all responses as needed .

2. VALUE FOR MONEY - My next task was to help the customer believe that whatever

he is purchasing it has a value for his money.

3. AFTER SALES ENQUIRIES - When your product is sold to the customer it doesn’t

mean that your work is over. If there is a defect in the product and customer needs

immediate attention it’s the duty of the sales executive to solve his problem

4. SELF CONFIDENCE- You have to believe in your product. You have to believe that

whatever you are selling is best for the consumer

5. UNDERSTANDING THE CUSTOMER- We need to talk differently to different

customers according to their preferences. We need frame them upto the level they

would understand the same , we want to communicate to them .

6. PATIENCE- Basic thing is patience. Travelling all day and finding the customer in

the market is a big task. Calling customer 50 times and asking for a meeting is a

boring task but you have to do it.

INTRODUCTION

CEMENT INDUSTRY

Introduction

India is the second largest producer of cement in the world. No wonder, India's cement

industry is a vital part of its economy, providing employment to more than a million people,

directly or indirectly. Ever since it was deregulated in 1982, the Indian cement industry has

attracted huge investments, both from Indian as well as foreign investors.

India has a lot of potential for development in the infrastructure and construction sector and

the cement sector is expected to largely benefit from it. Some of the recent major government

initiatives such as development of 98 smart cities are expected to provide a major boost to the

sector.

Expecting such developments in the country and aided by suitable government foreign

policies, several foreign players such as Lafarge-Holcim, HeidelbergCement, have invested

in the country in the recent past. A significant factor which aids the growth of this sector is

the ready availability of the raw materials for making cement, such as limestone and coal

Market size

Cement demand in India is expected to increase due to government’s push for large

infrastructure projects, leading to 45 million tonnes of cement needed in the next three to four

years.

India's cement demand is expected to reach 550-600 Million Tonnes Per Annum (MTPA) by

2025. The housing sector is the biggest demand driver of cement, accounting for about 67 per

cent of the total consumption in India. The other major consumers of cement include

infrastructure at 13 per cent, commercial construction at 11 per cent and industrial

construction at nine per cent.

To meet the rise in demand, cement companies are expected to add 56 million tonnes (MT)

capacity over the next three years. The cement capacity in India may register a growth of

eight per cent by next year end to 395 MT from the current level of 366 MT. It may increase

further to 421 MT by the end of 2017. The country's per capita consumption stands at around

190 kg.

With nearly 390 million tonnes (MT) of cement production capacity, India is the second

largest cement producer in the world and accounts for 6.7 per cent of world’s cement output.

Of the total capacity, 98 per cent lies with the private sector and the rest with the public

sector. The Indian cement industry is dominated by a few companies. The top 20 companies

account for around 70 per cent of the total production.

A total of 188 large cement plants together account for 97 per cent of the total installed

capacity in the country, while 365 small plants make up the rest. Of the total 188 large

cement plants in India, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil

Nadu. India’s cement production increased at a compound annual growth rate (CAGR) of 6.7

per cent to 270.32 million tonnes over FY07–15. As per the 12th Five Year Plan, production

is expected to reach 407 million tonnes by FY17.

Following are the major players in the Indian cement industry

Company Sales Current Change P/E Market 52 week

Name ( Rs.in millons ) Price ( % ) ratio cap high / low

Ultratech Cement 241073.60 3295.10 -1.17 41.58 904300.25 3453/2581

Shree Cement 66241.50 14227.80 -1.24 108.95 495657.0714800/9350

Ambuja Cement 94314.30 248.30 -0.22 48.55 385336.13 257/185

ACC 117968.30 1564.05 -0.69 50.36 293708.67 1580/1173

Samruddhi Cement 42906.30 520.50 0.00 22.04 136206.30 535/518

Century Textile &Ind 80696.10 615.20 -2.77 0.00 68715.18 748/404

Prism Cement 55938.80 92.55 -2.37 557.24 46585.65 128/56

JK Lakshmi Cement 23070.60 383.75 -0.25 719.04 45155.89 410/253

JK Cement 33485.93 638.60 -1.25 43.98 44655.54 742/425

Orient Cement 15938.81 158.75 -2.85 52.25 32522.92 190/129

Types of Cement IS No.

ORDINARY PORTLAND CEMENT-33 GRADE 269-1989

ORDINARY PORTLAND CEMENT-43 GRADE 8112-1989

ORDINARY PORTLAND CEMENT-53 GRADE 12269-1987

RAPID HARDINING CEMENT 8041-1990

PORTLAND SLAG CEMENT 455-1989

PORTLAND POZZOLANA CEMENT (P-1) 1489-1991

PORTLAND POZZOLANA CEMENT (P-2) 1489-1991

MASONARY CEMENT 3466-1988

HIGH ALUMINA CEMENT 6452-1989

SUPERSULPHATED CEMENT 6909-1990

WHITE PORTLAND CEMENT 8042-1989

HYDROPHOBIC PORTLAND CEMENT 8043-1991

S.NO CEMENT TYPE SPECIFIC USE

(1) OPC

(a) 33 GRADE

General construction work

where high strength Concrete

is not required, plastering,

finishing Works etc.

(b) 43 GRADE Used where M-15, M-20 and

above grade concrete is

required used for pre cast

items and general

construction work. Strength

development is faster than 33

grades.

(c) 53 GRADE High strength cement used

for multistory building, pre

cast and pre stressed items,

bridges, tall structures etc.

Development very fast

strength and speeds of

construction.

OPPORTUNITIES:

Demand–supply gap

Substantially lower per capita cement consumption as compared to developing countries (1/3

rd of world average) Per capita cement consumption in India . Additional capacity 2.2 of

million tons per annum will be required to match the demand.

Upcoming projects of Govt. Of India Make In India and Smart City

Company Profile

About JK Lakshmi Cement Ltd.

JK Lakshmi Cement is a well-renowned name in the cement industry in India. JK Lakshmi

Cement Limited is a part of the 125 years old   JK Organisation.  An eminent industrial

house, with operations in India and abroad and having a leadership presence in the fields of

tyre, cement, paper, power transmissions and sealing solutions, dairy products and textile.

JK Lakshmi Cement (JKLC) was set up in 1982– in a village in District Sirohi, Rajasthan.

Today, the company stands tall with an annual turnover of about Rs. 2700 Crores and an

impressive production of 8.3 million tonnes per annum.

JK Lakshmi Cement is the strength behind structures that India is proud of – Indra Gandhi

Nahar Pariyojna, Sardar Sarovar Project, Golden Quadrilateral , Mundra and Kandla Port

stands to name a few. It partners India’s leading corporations such as L&T, Reliance, NTPC

and Essar to create the new India’s success story. It is the brand choice across all section of

customers such as housing projects, roads and bridges , airports , factories and as well as the

individual house builder (IHB). Behind these numbers and achievements lies a story of grit,

perseveranceh and a thirst to excel through innovations in products ,using world-class

technology , excellence in manufacturing by being the least cost producer , a robust

marketing and distribution network ; and the heart to give the society an opportunity to grow.

BUILDING BETTER PRODUCTS THROUGH BETTER TECHNOLOGY

The true spirit of a leader lies in constant innovation and not resting on one’s laurels. JK Lakshmi Cement proves it with “JK Lakshmi Pro+ Cement” in an all new avatar. A cement with 7+ astounding benefits in terms of strength, durability, finish, setting speed, quality assurance, service and economy.

Today, JK Lakshmi Pro+ Cement is the talk of the town by being the best-in-class product

and has become the first choice among customers. Dealers across India have shown an

unprecedented enthusiasm and excitement towards this product.

JK Lakshmi Cement’s felt that traditional red bricks needed to evolve. Hence, it came up

with JK Smart Blox – Autoclaved Aerated Concrete Blocks. A green product- it replaces

traditional bricks , which uses cultivable top-soil and also consumes very high energy during

its manufacturing process. JK Smart Blox is manufactured using fly ash, a waste product and

is manufactured using world-class German Technology. They weigh less, are larger than

traditional bricks and easy to work, with their unique tongue and groove feature. JK

SmartBlox is also environment friendly as it offers better insulation allowing substantial

energy saving.

The further firsts in JK Lakshmi Cement’s innovative ideas basket were:

The concept of coloured bags for product differentiation .

A waste heat recovery power plant.

Introducing OPC 43 grade cement in North India.

Value Added Products which further fulfilled consumer needs from JK Lakshmi Cement’s innovative ideas basket have been:

Ready Mix Concrete (RMC) under the brand name ‘JK Lakshmi Power Mix’ India’s first premium branded Plaster of Paris (POP), JK Lakshmiplast Introducing OPC 43 grade cement in North India.

Our real strength lies in our manufacturing units and people 

The real fuel that keeps alive JK Lakshmi Cement’s fire to perform better, lies in its

manufacturing plants spread across India at :

Sirohi (Rajasthan) - capacity – 2.23 mt. per annum

Durg (Chattisgarh) – capacity - 9.3 mt . per annum

Kalol (Gujarat) - capacity - 5 lac tonnes per month

Jharli (Haryana). - , capacity - 5lac tonnes per month

In North India, JK Lakshmi Cement was among the first ISO:9002 certified cement plants.

Did you know JK Lakshmi Cement is the first company to utilize 99 per cent of its

production capacity? It just shows how well the nation has taken to its products and remains

hungry for more. JK Lakshmi Cement leaves no stone unturned when it comes to embracing

the latest technologies. Each JK Lakshmi Cement plant uses state-of-the-art world class

technology and the best equipment. This quest to keep up with the best technologies has won

JK Lakshmi Cement several awards like :

The Greentech Safety Award

The Excellent Energy Efficiency Unit Award

BRINGING SUPERIOR PRODUCTS WITHIN CONSUMER’S REACH

The company’s wide network of 70-80 cement dumps and over 3000 dealers across the states

a of Rajasthan, Gujarat, Haryana, Delhi, Uttar Pradesh, Punjab, Jammu and Kashmir,

Madhya Pradesh, Chattisgarh, Odisha, South Bengal, Vidharbha, Mumbai and Pune, ensure

that its products and services reaches millions of customers. It has been named as amongst

top 100 most Admired Asian brands and has won the MTM Corporate Star Award for

programmes for its business associates .The company has come up with various innovative

initiatives in rural marketing which won several accolades from RMAI (Rural Marketing

Association of India).JK Lakshmi Cement not just reaches the door steps of the consumer,

but also has been able to build an emotional connect with them through its various media

campaigns. JK Lakshmi Cement’s baseline ‘Mazbooti Guaranteed’ brings alive the

company’s motto and builds an instant connect with the consumer. Keeping up with the

digital revolution, JK Lakshmi Cement was among the first cement companies to get into this

area. In fact, its Facebook page has almost 2.5 lakh likes, one of the largest among all cement

companies in the country and abroad. It has recently entered into e-commerce through a

strategic tie up with Snapdeal. Apart from Facebook, the company also reaches out to it's

valued customers through different digital media.

WE WANT INDIA TO GROW WITH US

Our success story will always remain incomplete if it remains limited to our

company and products. We believe in sharing our success with the society and helping them

build a better life on their own. Here are some of our initiatives:

Naya Savera, a basic health care center

Akshaya Kaleva, a food distribution programme

Adult and Women Literacy Programmes for families in Sirohi Rajasthan.

Sahyogi Sanrakshan Club for masons. The club offers insurance to masons, thus

securing the future of their families.

We are grateful that our initiatives have been appreciated and generously bestowed with

awards like :

National CSR Golden Peacock Award 2013

The National Award for Environment.

Organisational Structure

VISION AND MISSION:

Vision:

To be A Profitably growing Innovative and Caring Company, to become a significant player in operating market and amongst the Top Ten in Indian cement market.

Mission:

Double Sales and Profit (PBIDT) in 4 years Achieve Operational Excellence Create superior value for customer through Premium Products & Brand Positioning Be a workplace of choice-Attract, Retain and grow Talent Pool of change leaders Continuously enhance shareholders’ wealth and be a preferred portfolio among

investors

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

Marketing strategy of JK Lakshmi cements Ltd .

1.SEGMENTATION:- The company has segmented the market geographically . it sells its products all ovwer India with major presence in northern region

2. PRICING STRATEGY 1. . Before deciding the price of the cement company has considered the following points:--

Cost factor:-

Manufacturing cost Transporting cost Storing and material handling Other cost Administrator Other expenses Tax and interest Competitor’s price and offering

3. MARKETING STARTEGY

Company conducts market surveys to identify market trends and customer’s response,

company position in the market etc. There is R and D department which continuously trying

to improve the quality of the product at the minimum cost and trying to meet the demand of

the customer.

4. MARKETRING STRATEGY FOR COMPETITORS

Company always keeps an eye over its competitors activities and its offerings like different

promotional schemes, product price etc. It also takes proper action according to competitors

strategy.

5. DISTRIBUTION STRATEGY

The company is distributing cement by following ways:-Direct to consumer Depot

1. Whole seller

2. Retailer

3. Corporate and bulk buyers .

AWARDS

Socially Responsible Corporate Citizen "India’s Best Companies to Work for"

Award,

Gold Award - National Institute of Personal Management, Star Brands 2011,

Green Manufacturing Excellence Award by Frost & Sullivan,

Greentech Safety Gold Award by Greentech Foundation,

Golden Peacock HR Excellence Award,

Safety Innovation Award,

Leading Businesswoman of the Year Award,

Greentech HR Excellence Award by Greentech Foundation,

Leading CEO of the Year Award,

Best Professionally Managed Company Award and

Golden Peacock Award for CSR initiatives

JK Lakshmi Cement has been honoured with ‘Make In India Awards for Excellence –

2015’

This is just a glimpse into the diversity of awards we have received after the relentless hard

work of our team members and the inspiring leadership of our top management. As an

organization, it is our constant endeavor to excel in what to do. It is this relentless pursuit of

excellence that has helped us introduce clutter breaking products like the JK Lakshmi Pro+

and integrate cutting-edge cement technology in all our plants in different states of India.

Being a member of the prestigious JK Organisation, a group known worldwide for its ages

old business legacy, we are ready to take new strides in our journey towards quality,

customer satisfaction and innovation.

Quality of products and strong brand name

We believe that brand name and reputation are important to retail purchasers of cement in

India. We have built a strong reputation among cement purchasers by consistently providing

high quality products. We believe that there is strong customer awareness of our brands, JK

Lakshmi Cement , for (PPC) cement and JK Lakshmi Cement , for (PRO PLUS) cement

across India.

Extensive marketing and distribution network

We are one of the most preferred brands in its marketing area with a network of about 3800+ dealers spread in the states of Rajasthan, Gujarat, Delhi, Haryana, Uttar Pradesh, Uttarakhand, Punjab, Jammu & Kashmir, Maharashtra, Madhya Pradesh, Chhattisgarh, Odisha and West Bengal. Our endeavour is always to give our best and maintain the highest standards of customer satisfaction. We have a wide distribution network for cement in Northern India. We also have a strong all-India distribution network for white cement. Our distribution network for cement products consists of 44 feeder depots serviced by seven regional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh and Gujarat. Our cement

network comprises 20 feeder depots serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar Pradesh, West Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharasthra, Gujarat, Madhya Pradesh and Rajasthan. In addition, we have more than 4,000 retail stores that stock our products, as well as 22 sales promoters and four handling agents. We believe that the extent of this network, and our relationships with our dealers, enables us to market and distribute our cement widely and efficiently.

JK Lakshmi Cement Product –

Enquiry 

This PRO PLUS cement was introduced in 2015 with premium qulaity and seven more

benefits -

1. 20% more strength ( plus strength )

2. long life ( plus durability )

3. small particals ( plus finish )

4. less time taken in setting ( plus speed )

5 . best quality ( plus security )

7. best delivery of services ( plus services )

JK Lakshmi Cement ‘s satisfied clients :-

At JK Lakshmi Cement, we are committed to 100% customer satisfaction.

We measure our success in terms of the success of our customers and we judge ourselves by

the ability of our customers to achieve their business objectives.

We have had the pleasure of working with many prestigious organizations and individuals.

We believe in building long lasting ties with our ever-growing clientele by providing world

class products with high level of quality and consistency and also by offering unmatched

service levels. A dedicated “Key Customer Cell” has been put up in place for this very

purpose, which continuously explores new horizons and strives to provide the very best to

our users.

JK Lakshmi Cement’s institutional clients range from Government departments to some of

the country’s largest corporations

All india medical sciences , airport authority of India , Indian oil , delhi government , ansal

api , super tech , Indian oil , Eros group , Tata housing , omaxe , sp group , dlf building ,

ahluwalia contractors ( india) ltd. , Unity infra projects ltd. , Larsen & toubro , creating

tomorrow , punj lioyd group , delhi metro rail corporation limited , RMC , LAFARGE , ACC

Concrete , lodha group .

MARKET RESEARCH WORK

ASSIGNMENT -1

PROJECT TITLE

Brand Preference Survey With Respect To Jk Lakshmi Cements Ltd. In Comparison

With the Competitive

Brands

Project Profile- Market Research & Analyst

Project Head- Mr. Pankaj Kumar , DGM , JK Lakshmi Cement Ltd.

Project Guide- Mr. Gaurav Sharma , DSM , JK Lakshmi Cement Ltd.

1. Research Objective:

To analyze brand position of JKLC in Karnal market .

2. Research Design:

(a) Research Approach: - Exploratory Research.

(b) Sample Size – 90 Retailers of various companies.

(c) Research Methodology-Interview person on one to one basis using structured

questionnaire.

3. Method of Data Collection:

Data collected by undergoing Primary Research.

METHODS OF DATA COLLECTION

Through interaction with retailers.

Through questionnaires filled from the dealers.

SAMPLE DESIGN

Considering the constraints, it was decided to conduct the study based on sample size of 90

respondents.

The selection was made through approach of random sampling. Scientific method was not

adopted in this study because of financial constraints and also because of lack of time, also

the basic aim of doing the research was academic, hence most convenient way was

selected.

TOOLS USED

There are several methods of collecting primary data, particularly in surveys and descriptive

research. Important are:-

Observation method.

Through questionnaires.

Interview method.

Data Analysis & Interpretation

ACC cement has the huge presence in the market with 16 authorised dealers which is almost

17.8 % of the total dealers / retailers present in the market , followed by Ultratech , Ambuja ,

Shree cement with 12 authorised dealers which is 13.3 % of the total . JK Lakshmi Cement

comes 5th with 4 dealers in the city and 3 in the adjacent areas which is 7.8 % .

31% of the total dealers think ultratech cement has grip over the market so, is the most

competitive brand. With 23.3% of the total dealers ACC and Ambuja cement is the second

largest competitor into the market . 4.4 % of the dealers thinks that Lafarge cement has a

presence in the market .

65.6 % of the total outlets are Cement Cum Building material outlets .

20 % of the outlets are solely Cement outlets.

11.1% of the outlets are Cement Cum Hardware stores.

3% of the total outlets are Cement CumPaint stores.

PPC is the usually saleable product by all the companies . But according to the study there is

a market for premium products although demand will not encourage .

Price is the major player in the market,

- with 44% thinks that the price is affecting the sales over the years.

- 31.1 % goes with the brand name .

- 14.4 % goes with the convenience .

- 10 % goes with the quality .

54.4 % of the total response having less than 25 % of the sale based on quality and strength .

only 6.7% says their more than 75 % sales are based on the type of Quality .

ACC

AMBUJAUTEC

HJAYP

EE

SHREE

ULTRA

BANGUR

LAFA

RGE

JK SUPER

NIRMAX

JK LAKSH

MI0

500100015002000250030003500400045005000

CAPACITY in MT

The above graph shows the sales volume of cement for a month. Among all ACC is in the top

ranking in sales volume with about 4500 MT. BANGUR has the lowest sales volume of

about 500 MT. The above graph also shows the sales volume of JK LAKSHMI of around

1000 MT. The main competitor of JK Lakshmi is JAYPEE as it slightly above it. JK Lakshmi

Cement seventh in the overall market. JK Lakshmi is higher tha JK SUPER and Bangur.

45.6 % are very confident about sale of the cement in the future , 37.8 % are confident about

the demand of the cement and 16.7% are not confident about the growth of the sale of cement

.

75 dealers are confident about the future growth because of the following reasons –

38 dealers says the reason is brand preference .

23 dealers says because of personal relations .

14 dealers says because of upcoming projects . 15 dealers are not confident about the sale in the future , following are the reasons –

11 dealers says because of the low demand in the market .

4 dealers says because of the lack of support from the company , they are not confident.

53.3 % cash based motivation

6.7 % non – cash motivation

36.7 % both cash and non – cash motivation

From the study there no such a huge market for premium cement but if convinced they may

pay upto 5% – 7% .

Few of the dealers ( 30%) says customer may pay upto 10% .

77.8 % of the total responses says that they know about

ACC – GOLD .

60 % of the responses says that they are aware of JK Lakshmi PRO PLUS .

42.2 % of the total responses says that they are aware of ACC - CONCRETE

As we can see price fluctuation is the major problem and after that next big problem is -

Demand fluctuation and competition.

Summary of findings

JK Lakshmi cement is no. 5 by no. Of outlets

JK Lakshmi cement has 7 dealers in the market not even the half of ACC

which is the market leader with Ultratech cement.

JK Lakshmi cement is no where in competition with top 4 .

According to retailers while making purchase decision the customer is the

most sensitive to the brand name, followed by quality, followed by whiteness.

By brand name customer mean a reputed company having goodwill .

Most of the JK Lakshmi cement retailers don’t face any complaints from

consumers in any product

Price is the most influencing factor while purchasing cement

Majority are confident about the growth in sales .

60 % of the responses says that they are aware of JK Lakshmi PRO PLUS

From the study there no such a huge market for premium cement but if

convinced they may pay upto 5%.

Few of the dealers ( ) says customer may pay upto 10% .

Majority are seeking for the best quality and convincing price in the premium

cement .

As we can see price fluctuation is the major problem and after that next big

problem is - Demand fluctuation and competition.

Lack of suppy is the problem with JK Lakshmi cement , it largely

Effecting the sale of JK Lakshmi cement .

JK Lakshmi cement too provide cash and non- cash motivation .

Worst rating has been given to JK Lakshmi cement on promotion by their

dealers .

Recommendations

Although JK Lakshmi Cement Ltd is an established and known brand in the

market scenario. They need to work on Promotional Activities and Marketing

Strategies for differentiating advantage enjoyed by the competitors.

JK Lakshmi Cement needs to really plan heavy and systematic investments

for promotions of their products if they really want to excel in the retail

market. This is primarily recommended because promotional support is the

back bone of marketing and sales.

Company should develope distributors in karnal Area as early as possible. So

that market can be covered as and sale can be increased in that area as

compared to other brands.

There is a scope of improvement in post sale services.

Conclusion

Company should concentrate on direct meeting with the customer as they are

the most vital element in deciding the growth or decline of any company.

Company should decrease the response time to the complaint received.

The company should fix certain amount of cement especially for the dealers

and give them free of cost as incentives.

The company should appoint more and more persons for the promotions of the

brands.

Company should decrease delivery time of the cement.

Company should improve the quality of after sale services.

More promotional programme should be organised.

Price must be designed in convincing manner.

Assignment – 2

PROJECT TITLE

“A STUDY ON CUSTOMER SATISFACTION TOWARDS CEMENT PRODUCTS

WITH REFERENCE TO JK LAKSHMI CEMENT LTD”

Project Profile- Market Research & Analysis

Project Head- Mr. Pankaj , RSM , JK Lakshmi Cement Ltd.

Project Guide- Mr. Gaurav Sharma , DSM , JK Lakshmi Cement Ltd.

DESIGN

1. Objective of study

To find out the customer satisfaction level through scientific tools like interviews and

questionnaire.

To finding the customer satisfaction level through direct interaction with the knowing

their preference. This will include all the processes like asking questions from the

customer through questionnaire which will be included in the primary survey once

the primary survey is done.

2. QUESTIONNAIRE DESIGN

The structured questionnaires that were framed and designed consist of close ended,

open ended, multiple choice , ranking , rating questions .

3. Date collection

Selected around 50 persons for the interview from the secondary data

To help of the questionnaire, personal and telephonic interview.

Collected the data through focus interviews.

General consumer------100%

The survey was descriptive and sample chosen was mainly on the judgments of the researcher

with the help and proper consultation of project guide.

In this kind of sampling method, the population elements are based on the judgments of the

researcher. The researchers’ exercises judgment or expertise chooses the elements to be

included in the sample, because he or she believes appropriate.

In this survey, visited the dealers of the cement also to know the strategy of the companies,

especially JK Lakshmi Cement to satisfy the customer as they buy the cement of any

particular company…The main purpose of the descriptive research is description of the state

of affairs as they exist at present.

4. SAMPLE SIZE

Pertaining to the limitations of the study, and in consultation with the company guide

and the project guide, the sample size is taken as 50. Due to time and resource constrains the

sample size is taken as 50 People in consultation with the industry Project guide.

5. LIMITATION OF THE STUDY

Some customers were not able to understand some of the questions.

The sample size was not enough and it failed to give the picture or the result of the

survey (sample size=50)

Some customers or dealers did not co-operate well.

The questionnaire did not cover the whole aspect of the market potential of JK

Lakshmi Cement.

Data Analysis & Interpretation

Maximum ( 68 % ) users are of ppc and pro plus also got a good response even this is

introduced to the market a year ago .

Maximum of the persons got to know about JK Lakshmi cement from the whole seller ,

this graph also shows how JK Lakshmi cement’s marketing strategies are ineffective.

Price Driven market though quality and convenience sitll matters while purchasing the

cement in some cases .

This results shows all the customer are fully satisfied with the quality of the cement . they

will definitely go for second time . but if they got into any problem they definitely go for

another brand .

Convenience matters while purchasing cement . At least these result interpretat the same .

About 88% of the customer will shift to the other brand if the JK Lakshmi cement is not

convenient to them only 12 % are the loyal customers .

56 % of the customers finds the price is not a problem as other companies too providing the

cement approximately same rates .Left 44% are clearly giving their view in disagreeance .

In my experience while collecting the data 90% of the persons feel that the price of the

cement is quite high .

Out of the 49 responses approximately 82% of the customers feels the quality that JK

Lakshmi cement is providing is really good as compared to many of the established and

unestablished brands

90 % of the existing customers are satisfied with the perfomence of the JK Lakshmi cement.

They are satisfied with the services of the technical and non- technical team and can rely on

JK Lakshmi cement in the future also.

About 47 % of the persons finds the JK Lakshmi lakshmi cement good , followed by 26.5%

of better and 26.5% of average . The good news is no negative responses from the customer ,

which gives alot of encouragement .

Any suggestions to JK Lakshmi Cement for the better customer satisfaction ?

(37 responses)

In all 37 responses increasing prices is a major concern . As in Indian cement market price is

the most important factor . as in the above response it is mentioned the general customer is

not able to differentiate between different qualities of cement . Convenience can a factor in

decision making . customers can shift to the other brands if they find even the slight variation.

So, company must be taken immediate steps to avoid the problem of loosing potential

customers .

SUMMARY OF FINDINGS

Customer satisfaction with respect to the JK Lakshmi cement is satisfactory.

Despite the increasing cost of the raw material the company is able to bring down the

cost of the manufacturing through procurement of raw materials by the mines which

are located nearby.

Customers come to know about JK Lakshmi cement mainly from the whole seller.

Customers want more prizes and dealers want more incentives, gift and tours.

Dealers also want more meeting with officials of the cement companies.

Bulk consumers want more and more cash discount.

Price is a bigger concern between the customers .

Constant supply of the cement is the matter of concern in case of JK Lakshmi cement

.

Quality doesn’t makes such a huge difference as customers can’t differentiate

between two quality of cements . but yes, they can differentiate between them on the

basis of brand name .

RECOMMENDATIONS

The company should concentrate on more aggressive advertisement to

promote their products.

The company should launch more and more promotional schemes like two for

the price of one “or more discount coupons.

Company should do more to promote their brand as customers prefer good

brand while buying any cement.

Customer prefer price as an important factor while buying any cement so the

company should fix the price accordingly.

No. Dealers should be increased in order to increase the overall sale .

Attention should be given to the prospective customer , although existing

customers all equally important to retain with the company .

There is a scope of improvement in post sale services .

CONCLUSIONS

Company should concentrate on direct meeting with the customer as they are

the most vital element in deciding the growth or decline of any company.

Company should decrease the response time to the complaint received.

The company should fix certain amount of cement especially for the dealers

and give them free of cost as incentives.

The company should appoint more and more persons for the promotions of the

brands.

Company should decrease delivery time of the cement.

Company should improve the quality of after sale services.

More promotional programme should be organised.

Price must be designed in convincing manner

BIBLIOGRAPHY

Books referred:

Marketing research-----Naresh kumar malhotra, Pearson edition.

Marketing management --------Philip kotler, Pearson edition.

Customer satisfaction research management------Derek allen,Pearson edition

Journals/newspapers:

Annual journal of JK Lakshmi Cement Ltd.

Labour and industrial chronicle

Indian cement review

Web sites:

www.jklakshmicement.com

http://www.ibef.org/industry/cement-india.aspx

https://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/

GetQuote.jsp?symbol=JKLAKSHMI&illiquid=0&smeFlag=0&itpFlag=0

www.drive.google.com

ANNEXURE - 1

BRAND PREFRENCE SURVEY

(Cement industry)

1. Name of the company:-

Name of the dealer / retailer:-

Address :-

E-mail :- Contact No. :-

2. Which the most competitive brands ?

1.

2.

3.

3. Type of seller ..................

1. Whole seller

2. Retailer

4. Nature of outlet .................

1. Cement outlet

2. Cement cum hardware

3. Cement cum building material

5. No. Of years in business

1. Less than 5 years

2. 6-10 years

3. 11-15 years

4. More than 15 years

6. Which grade of cement usually saleable ?

1. PPC

2. OPC

3. Premium

7. Average monthly sale ?

1. 1000 – 3000 bags

2. 3000 – 5000 bag

3. 5000 – 1000 bags

8. What are the factors affecting sale over the years ?

1. Price

2. Quality

3. Convenience

4. Brand Name

9. How much of your sale is based on quality and strength ?

1. Less than 25 %

2. Between 25% to 50%

3. Between 50% to 75%

4. More than 75%

10. Is the company providing supply on time ?

1. Yes

2. No

11. How you supply the current bags to customers ?

1. Own transportation

2. Company transportation

3. Other mode

12. What is your opinion about the quality of the cement you offering to your customers ?

1. Very good

2. Good

3. Satisfactory

4. Bad

13. Are you confident of the growth in sale of cement in future ?

1. Very confident

2. Confident

3. Not confident

14. Reason for the option you selected in the above question ?

15. At what price billing is taking place ? And how much is the price ?

1. Above the price set for billing by the company

2. Below the price set for billing by the company

Billing Price ...............

16. Whether the company conducts any dealer’s promotion programme ?

1. Yes

2. No

17. Which type of motivation you get from the company to increase the sale ?

1. Cash discount

2. Promotional schemes

3. Quantity discounts

4. Annual scheme

5. Short term scheme

18. Please rate the cement company on the following attributes on the scale of 1 to 5

Where ..

1 – very good

2 – good

3 – fair

4 – below the mark

5 – very poor

Basis 1 2 3 4 5

Price

Availability

Customer’s satisfaction

Packaging

After sale services

Promotion

19. What is the premium price the customer is willing to pay on the premium cement ?

20. What are the attributes customer looks in the premium cement ?

21. Which companies are selling the premium cement ?

22.Any major problems faced by you in the business ?

23. Any specific comments on the company or on whole of the cement industry ?

ANNEXURE -2

JK Lakshmi Cement Customer’s Feedback

1. Name of the customer ........................................................................

Address :- ..........................................................................................

Contact no. ..........................................................................................

2. Have you ever purchased JK Lakshmi Cement ?

Yes

No

3. If no, would you like to purchase JK Lakshmi Cement in future ?

Yes

No

If no , any specific

reason .........................................................................................................................................

..........

4. If yes , how did you came to know about JK Lakshmi Cement ?

1. Tv commercials

2. Other advertisements

3. Whole seller

4. Architect

5. Builder

5. What are the influencing factors for your preference ?

1. Price

2. Quality

3. Convenience

4. All of the above

6. Are you satisfied with JK Lakshmi Cements ?

Yes

No

7. Do you think convenience matters while purchasing cement ?

Yes

No

8. If JK Lakshmi Cement is not convenience to you then will you shift to any other brand ?

Yes

No

9. Are you satisfied with the price you paying ?

Yes

No

How much ...............

10. If yes , do you think the quality is better as compared to the competitors ?

Yes

No

11. Is the JK Lakshmi Cement is reliable as compared to the competitors ?

Yes

No

12. Out of 5 which rank you like to give to JK Lakshmi Cements ?

1- Good

2- Better

3 - Avg

4- Bad

5 – No Reply

13. Any suggestions to JK Lakshmi for the better customer satisfaction ?