STUDY OF DEALER’S SATISFACTION LEVEL ASSOCIATED WITH PRISM CEMENT IN VARANASI

Faculty Mentor: Submitted By:Dr. Amit Gautam Krishna Kumar JaisawalAsst. Professor, Faculty of Management Studies MBA (IB) III semester Banaras Hindu University Roll no:19

PRESENTATION FLOW

Industry Profile Company Profile SWOT Analysis Research Methodology Findings Suggestions Learnings

INDUSTRY PROFILE World’s first cement company was established in 1824 at Portland , Britain. In India first cement company was established in 1912-13 by India Cement Company Ltd. in

Porbandar,Gujarat. In 1936 Associated Cement Companies (ACC) was formed . India is the second largest producer of cement. Some foreign player have also entered in Indian market viz. Lafarge cement,Heidelberg

cement. Indian Cement industry is oligopolistic in nature.

Year Cement Capacity

Production Utilization %

(million tonnes)

FY10 200.7 86

FY11 207.9 76

FY12 221.4 72

FY13 233.5 71

FY14 303 80

COMPANY PROFILE

Prism Cement Limited is professionally managed Company promoted by the Rajan Raheja Group.

In 1992 - The Company was incorporated under the name and style of Karan Cement.

In 1994 - The name of the Company was subsequently changed to Prism Cement Limited.

Prism Cement Limited is one of India’s leading integrated Building Materials Company, with a wide range

of products from cement, ready-mixed concrete, tiles, bath products to kitchens.

The company has three Divisions, viz. Prism Cement, H & R Johnson (India), and RMC Readymix (India).

For providing an effective and customer responsive marketing facility, a Central Marketing Office has been

setup at Varanasi and it is supported by Regional Offices at Satna, Jabalpur, Allahabad, Varanasi, Lucknow,

Bareilly, Kanpur and Patna.

The turnover of the company for financial year 2013-14 is 5263.82 crore.

CONTD…..

The company has reported a standalone sales of Rs 1,383.91 crore and a Net Profit of Rs 13.24 crore for the

quarter ended Jun 2014.

 It presently produces 6 million tonnes of cement per annum.

The equity shares of the company are listed on the Bombay and National Stock Exchanges.

Prism Cement Ltd has become the first Indian company to get the Quality Council of India's (QCI)

certification for its ready-mix concrete (RMC) plant in Kochi, Kerala. The company received the

certification from Institute for Certification and Quality Mark (ICQM), a leading Italian certification body

authorized to oversee QCI compliance.

SWOT ANALYSIS

Strengths• Unit of Rajan Raheja Group• Good Perceived Quality• Trustworthy Company

Weakness• Delay in service• Channel conflict• Weak promotional activities

OpportunitiesFlexible credit policy

Large untapped market

Create loyal dealers

Threats• New entrant• Competition with other brands

SWOT

Analysis

RESEARCH METHODOLOGY

OBJECTIVE

Primary Objective To study the satisfaction level of the dealers associated with Prism

cement.

Secondary Objective To identify the factors that play an important role in sale of a cement

brand from dealer’s perspective. To determine possible improvement based on dealer feedback.

RESEARCH PROCESS

Research Design : Exploratory cum Descriptive

Sampling Design

Sampling Technique : Convenience Sampling

Population : Dealers Associated with Prism Cement

Sampling Unit : Individual Dealer

Sampling Size : 46

Scaling : Likert-scale

Data Collection : Questionnaire, Personal Interview

Data Analysis : Descriptive Analysis(Mean)

T-test

RESPONDENTS WERE ASKED TO RATE THE COMPANY ON THE BASIS OF FOLLOWING FACTORS

1. Quality

2. Profit Margin

3. Delivery Process

4. Promotional Scheme

5. Technical Support

6. Credit Policy

7. Behavior of Company Representative

8. In time delivery

9. Sufficient Delivery

10. Timely Receipt of Benefit

QUESTIONNAIRE(46)

AttributesStrongly

Disagree(1) Disagree(2)Neither agree nor

Disagree(3) Agree(4)Strongly Agree(5)

1. Good perceived Quality 0 1 22 13 10

2. Good Profit Margin 1 1 2 26 163. Good Delivery Process 4 9 21 9 3

4. Good Promotional Activities 9 10 17 7 3

5. Good Technical Support 2 4 16 14 10

6. Good Credit Policy 3 9 19 13 2

7. Good Representative Behaviour 0 2 3 36 5

8. In time delivery 2 7 23 10 4

9. Sufficient delivery 3 9 18 11 5

10. Timely receipt of benefit 8 13 17 6 2

DATA ANALYSIS & INTERPRETATION

0

10

20

30

40

Strongly DisagreeDisagreeNeither Agree nor DisagreeAgreeStrongly Agree

BRAND PERCEPTION – 46 RESPONDENTS

Factors T Sig. (2-tailed) Average Score

Significance

Perceived Good Quality 10.688 .000 3.69 significanceGood Profit Margin -2.697 .010 4.20 significance

Delivery Process -1.112 .572 2.95 insignificance

Attractive Promotional Schemes -5.783 .000 2.67 significance

Efficient Technical Support Team 4.723 .520 3.56 insignificance

Favorable Credit policy .771 .545 3.04 insignificance

Good Representative Behavior 1.044 .302 3.95 insignificance

Timely Delivery 7.012 .000 3.15 significance

Sufficient Delivery .330 .013 3.13 significance

Timely receipt of benefits .000 .645 2.58 insignificance

TO IDENTIFY THE FACTORS THAT PLAY AN IMPORTANT ROLE IN SALE OF A CEMENT BRAND.

Qualit

y

Profi

t Mar

gin

Prom

otio

nal S

chem

es

Credi

t Pol

icy

Misce

llane

ous

0

10

20

30

9

26

4 3 4

Varanasi

Varanasi

SCOPE FOR IMPROVEMENT ON THE BASIS OF DEALER’S FEEDBACK

0

1519

1321

Varanasi

Varanasi

•19 out of 46 mentioned that Prism cement needs to work on promotional aspects.

• 13 out of 46 mentioned that Prism Cement needs to work on its Delivery Process.

• 21 out of 46 mentioned that Prism Cement Needs to work on Timely receipt of Benefit.

SCOPE FOR IMPROVEMENT

Critical Dealer Feedback

Promotional Mason Meetings

Advertisement

Schemes

Service Lack of site visits

Delay in Providing Account Statement monthly.

Miscellaneous Intra brand Competition

Cement requires more maintenance

FINDINGS

42 out of 46 dealers in Varanasi are satisfied by the profit margin provided to them..

28 out of 46 dealers in Varanasi complains for poor bag quality used for packing

cement.

26 out of 46 dealers accepted that they sale cement brand for profit margin in

comparison to other factors. Company is equipped with machinery and technical support from world leaders, F. L. Smidth & Co. A/S, Denmark.

SUGGESTIONS

Mason meetings should be conducted regularly.

Regular meetings with the contractors must also be conducted.

 Company should also provide caps ,t-shirts , masks and table calendar to the workers

at the dealer’s shop.

Dealer loyalty programme can be started (like ACC Cement) .

Company can start schemes for its retailer.

Company can also organize foreign tours for its dealers.

LIMITATIONS

Unresponsiveness: sometimes dealers choose not to answer certain questions hence affecting the accuracy of data collected.

Area constraint : Area is restricted to Varanasi.

LEARNING FROM SUMMER TRAINING

Learn about practical aspect of conducting a market research Learn how to deal with the intermediaries and the ground realities of the business. There were primarily two reasons due to which a dealer promoted a cement brand i.e.

profit margin and personal relations. Learnt about channel conflict among dealers of same company. Learnt about the various promotional schemes offered by cement companies to its

associated dealers.

1. Free family tours.

2. Performance based trip to places outside India.

3. Gold/Silver coins.

THANK YOU!!