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A PROJECT REPORT ON
SALES PROMOTION
IN
KESORAM CEMENT INDUSTRIES LIMITED BASANTHNAGAR,
KARIMNAGAR
Project submitted
To
KAKATHIYA UNIVERSITY WARANGAL
In Partial Fulfillment of the Requirements for the
Award of the Degree of
MASTER OF BUSINESS ADMINSTRATION
Submitted By
J. RAVI KUMAR
H.T.NO.: 13087-C-1112
Under the Guidance of
G. RAVI KUMAR
Department of Business Management
ALLURI INSTITUTE OF MANAGEMENT SCIENCES
Hunter Road, Warangal506001,
Andhra Pradesh.
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DECLARATION
J.RAVI KUMAR here by declare that the project work entitled (SALES PROMOTION
STATERGIES KESORAM CEMENT COMPANY)submitted to Deparmentof Commerce and
Business Management, K.U Warangal in partial fulfillment for the award of the degree of MASTER
OF BUSINESS ADMINISTRATIONis a bonafied work done by me.
I also declare that the project id not submitted any ware else for the award of any Degree/diploma
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Introduction:
Basic needs like food to live cloth to wear and shelter to hide affect the common life
of people. Shelter is also necessary to protect the life from natural calamities. There
were number of changes of the process of constructing houses for the purpose of
having shelter. Till early twentieth century lime stone has been the main material for
the construction of house.
In India monuments like tajmahal, red fort, Qutubmitunar in the north konark
and khajuraha temples in central India, meenakshi and Madurai temple in south were
constructed with lime.
For the early twentieth century dominated the construction field. The availability of
Ingredients in all over the world in uniform quality entitled by centralized production
and strict quality control and above all the advent RCC made cement an essential and
widely used material for construction and permanent structures.
In this modern age cement industry is ranked as a basic industry because for every
development effort i.e. from the construction of single household to the building of
big multipurpose dams, cement constitutes a basic ingredient. It is used by the
consumers to have a strong and durable construction. They want a material which is
capable of strongly uniting masses. Cement, when mixed with sand and water in
proper ratio is able to give this benefit to the user.
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The cement is of many types. They include ordinary Portland cement, Portland strong
cement, Portland pizza land cement, white Portland cement, hydrophobic Portland
cement, oil well cement, rapid hardening cement, low heat Portland cement, high
strength Portland cement, super supplanted cement and alumina cement.
NEED OF THE STUDY:
Introduction of the study
The Indian market is very vast, both in terms of physical size of the territories
involved and the diversity of consumer the need for arises because the product has to
move to the consumer in the right quantity, at a specific time, and at the particular
place. The need for intermediaries in the delivery of goods is sometime questioned.
Particularly because the profit they earn or viewed as adding to the cost of the item.
However, this argument is fallacious, since it should be recognized that the function
these intennediaries person or 1ll1dISl.0Od to be more efficient and cheaper then what
the manufacture can manage. This is rationale for having a generation of form,
possession time and variability, utility. In other words the major objective of
distribution management is to ensure delivery at a minimum cost so the consumer
interest is served.
Marketing ~ channel decision is among the most critical decision facing
management. The company as chosen charnels intimately affect all the other
marketing decisions. The company pricing intimately affect all the other marketing
decisions. The companys pricing depending on where it uses mass merchandisers or
high quality. The as sales force and advertising decisions depends on how much
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Training and involved relatively long time commitment to other firms. There fore
management as well as today
OBJECTIVES OF THE STUDY:
l. To know the sales of Kesoram cement.
2. To know which grade cement is having much demand in the market.
3. To identify the problems faced by the retailers in distribution process.
4. To identify the complaints received by retailers from the consumers.
5. To know the position of Kesoram cement in the market.
6. To identify which distribution strategy is best.
7. To know which type of advertisement gives more positive results.
8. To study about the level of satisfaction of retailers regarding quality, quantity,
Price and package.
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RESEARCH METHODOLOGY
Research refers to a search for knowledge. One can also define research as a search on
a specific topic. infect, search is an act of scientific investigation
According to Lyford woody research comprises defining and redefining;
Problems, formulating hypothesis or suggested solutions, collecting, organizing and
1 evaluating data; making deductions and researching conclusions t determine whether I
they t the formulation hypothesis.
For the purpose of the study, the primary data and secondary data are
collected. The ordinary data is collected by following the observational method and
survey research method. While taking personal interviews of the stockiest the
Observational method is used. The survey research method is used to gain and insist
\
knowledge about the opinion of retailers of Kesoram cement vies-a-vies the other branch
the main research instrument used for the survey is a well structured questionnaire for
retailers consisting of questions interviews, group discussions and observations have
been also used to supplement and support the primary data generated through
questionnaire method.
The collected data is classified, tabulated, analyzed and interpreted.
From analysis, conclusions are drawn and suggestions are offered.
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RESEARCH DESIGN:
R The study was conducted in Karimnagar district. The research describes the
i s attitudes, opinion and view of the retailers on the Kesoram cement service, quality,
price, quantity, distribution, delivery etc., and also reason behind it. The research is
* designed to employ the statistical techniques are used in analyzing the data collected.
DATA:I A) NATURE OF THE DATA:
The study relies to a grant extent on primary data and to some extent
secondary data. The primary data consist of data collected from questionnaire. The
first hand information was obtained through primary data. Secondary data was
R obtained from internal sources of the form l
B) SOURCES OFDATA:
_The study is based on primary and secondary sources of data.
PRIMARY DATA:
R Primary data is personally developed data and it gives latest information and
_ offers much greater accuracy and reliability. The primary data is obtained from the
~ survey conducted on the authorized Kesoram retailers of Karimnagar.
~
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SECONDERY DATA:
It is published data and already available for use and it saves time. The main
sources of secondary data are published market surveys, government publications,
advertising, research report and intimae sources such as sales, purchase records, sales
Records, customer complaints and other business records.
The secondary data is obtained from the annual reports of Indian cement review (ICR)
Business magazines and news papers like the economic times and Indian express etc.
METHODS OF DATA COLLECTIONS:
A survey was conducted together data. The method adopted to elicit
Information was from two courses i.e. retailers and intimae sources of the mi. The
Questionnaire method was chosen to know the retailer satisfaction about the quality,
Service, delivery, price, etc. and also due to qualitative nature of the research.
SAMPLING
SAMPLE DESIGN:
Sample design is a definite plan for obtaining a sample from a given
population. It refers the techniques or the procedure the researchers would adopt in
selecting items for the sample.
SAMPLE SIZE:
For ascertaining the views of dealers regarding the various operational aspects
of Kesoram cement 120 retailers are selected from various towns in Karimnagar
District on the basis of convenient random sampling technique.
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The research universe comprises of the existing consumers of Kesoram
Cement. The exact size of universe is unknown. The sampling procedure adopted for l
the study was convenience sampling.
For ascertaining the views of dealers regarding the various operational aspects
of Kesoram cement 120 retailers are selected from various towns in Karimnagar
district on the basis of convenient random sampling technique.
MAJOR TYPES OF INTERMEDIARIES:
Retailer: a middleman who sells to ultimate consumers.
Wholesaler: a middlemen who sells retailers, commonly found in consumer
product marketing.
A Dealer: any middleman with legal authority to act on behalf of the
manufacturer.
4 Broker: a middleman who performs limited selling functions like seeking
Q orders for a principal. Usually, brokers have neither title to, nor possessions of the
merchandise.
Jobber: normally used in an industrial marketing context as a limited function.
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CHAPTER-II
THEORITICAL
CONCEPTS
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WHAT IS SALES PROMOTION?
Sales promotion refers to many kinds of incentives and techniques directed towards
Consumers and traders with the intention to produce immediate or short-term sales
effects.
DEFINITION
Sales promotion includes incentive-offering and interest-creating activities
which are generally short-term marketing events other than advertising,
. Personal selling, publicity and direct marketing.
The purpose of sales promotion is to stimulate, motivate and incidence the
\ purchase and other desired behavioral responses of the miffs customers. a
MORE ON IT...
Sales promotion offers a direct inducement to act by providing extra worth over and
above what is built into the product at its normal price. These temporary inducements
are offered usually at a time and place where the buying decision is range. Not only
are sales promotions very common in the current competitive market conditions, they
are increasing at a fast apace. These promotions are direct inducements. In spite of the
t directness, sales promotions are fairly complicated and a rich tool of marketing with
innumerable creative possibilities limited only by the imagination of promotion
;planners. Sales promotion is often referred to by the names of extra purchase value
and below-the-line selling.
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'Used to achieve short-term sales
Sales promotion IS a separate and distinct element H1 the promotion mix and IS an
important and poweril tool of marketing. The aim of sales promotion is goal-
oriented to achieve sales/marketing objectives which are short-term and immediate.
Generally, sales promotion is not used to generate long-term results or sales in the
future, but rather to generate sales results now.
i Example: promotions mostly say lasts till which is aimed at increased sales
till that date. This would induce trials, and even the existing users would increase
consumption.
Becoming too common
Sales promotion has been traditionally viewed as a non-recurrent selling activity.
However, this does not portray the present market conditions where frequent and
repeated sales promotion programmers have become necessary to maintain business
in many product categories. The reality is that sales promotion has become an all too
recurrent activity.
Today we and companies in almost all sectors offering some sort of a promotion
scheme. These sectors range from automobiles to beverages, from financial services
to foods, from household durables to services, from household products to business
products, from personal care to textiles and apparel.
Here are examples of each.
Automobiles: Marla Suzuki tiered a 22-carat, 10gm T apish gold coincide
and lots of other exciting prizes, Other prizes include 50 Rs. 50,000 T apish
gift vouchers, 10 Rs. 1 la/ch Tarnish gift vouchers and a grand bumper prize
of I kg gold with every new Marti 800 or Omni.
Financial services."T are finance tiered Free Tata Finance credit cards with
every car/financed j
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Foods:Nestle offered Free 50g Johnson 's baby soap with every 400g Cerelac
pack.
Household durables:Samsung offered a free book on Indian recipes and free
cookery classes. Up I o Rs. 2000 off & Boorish dishes worth Rs. 510, on
buying Samsung Microwave Ovens.
Q Services: CMC Computer Education tiered a set of 3 CDs of Britannica
Encyclopedia worth Rs. 1995free on enrolling for DST & cDAST.
1 Household products: Kodak Express offered a Dill Chula hay T -shirt free
with any Kodak camera.
v Business products: Godrej jeered prizes like a Ford Icon car, Godrej air
conditioners, Godrej auto clean washing machines and more on purchase of
Photocopiers and Digital Mulii-function products.
Pearsall erne: Fem had an offer of save Rs. 79 on buying a 1-litre pack of
Fem soft gentle soapi
Many types of sales promotion require participation of customers who are
encouraged to take some action and invest their time and effort.
But sales promotions are not always short term. It would be reasonable to say that
promotions are reasonably short term because in many product categories, extra
discounts continue on a regular basis. Likewise, some product brands always contain
in-pack premium.
For example, each pack of 'Barossa agarbalti ' contains either a stainless steel glass
or a small bowl.
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Writing about sales promotion tools, Prof. Philip Kilter observes they have 3
distinctive characteristics.
1. Communication:they gain attention and usually provide information that
may lead the customer to the product.
2. Incentive:they incorporate some concession, inducement, or contribution
that gives value to the consumer.
3. Invitation:they include a distinct invitation to engage in the transaction now
(offer valid till ...0r lill stocks last)
Major users of sales promotions are marketers of soaps, detergents, toiletries, soft
drinks, toothpastes, tea, coffee, footwear, textiles, readymade garments, consumer
durable goods, music systems, autos, televisions, washing machines, microwave
ovens, refrigerators, magazines and many other household items. In fact the list of
product categories using sales promotion is ever-increasing, no matter what the
product category, it could be staples, impulse goods, emergency goods shopping
goods, specialty goods, unsought goods, industrial products, or different types of
services.
Sales promotion is now established as an important and increasingly respectable
element of the marketing communication tools. Sales promotion expenditures are
increasing dramatically, and economic recession is most likely to fuel this trend
further.
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DIFFERENCE BETWEEN ADVERTISING AND SALES PROMOTION
By using variety of persuasive appeals, it offers reasons
to buy a product or service.
Besides giving reasons in the form of different appeals,
they offer incentive to the consumers to buy the product
or service now.
Appeals are emotional or functional in Appeals are rational
Time-frame is long term Time-frame is short term
The primary objective is to create an To get sales quickly or to induce trial.
Indirect and subtle approach towards
persuading customers to buy a product or service
Direct in approach to induce consumers to
buy a product or service immediately by
temporarily changing the existing price-
value relationship of the product or
service.
But both advertising advertising and sales promotions go hand .Both are very essential to achieved success. Both
are complementary to each other.
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THE ADVANTAGE OF ADVERTISI9NG FOLLOWED BY PROMOTION OVER ONLY PROMOTION
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RELATIVE COMMUNCATION STRENGTHS OF ADVERTISING AND PROMOTION
REASONS FOR RAPID GROWYH OF SALES PROMOTION
There are a number of reasons that are favorable to the growth of sales promotion;
The ai4r of change is gaining momentum after the introduction of economic liberalization Due to increase
in competition companies are finding it increasingly difficult to compete on quality .They are there fore
resorting to more and innovative methods of sales promotion
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To break away from the clutter. Samsung introduced the phod ke dekho ' and phir se
phod ke dekho ' offers, which helped increase sales.
Customers Have Become More Price Sensitive
This increased price sensitivity is a direct result of rampant inflation. Economic
recession is likely to fuel this trend further, as consumers and dealers become more
sensitive towards prices.
The case of Akai TV presents an interesting example. This television star/ed
introducing quite attractive deals, one after the other and gained a substantial share
of the C TV market. Continuous promotions have abetted the price perceptions of
consumers across the product category, and today the situation is such that
customers in general look or waitjbr promotional deals on their preferred brands of
CTV. They are not much moved by the advertising that might extol about the highly
advanced features and quality of most brands. They usually consider buying CTVs on
price cuts.
0 Sales Promotions Maximize Profits
A nmnbcr of economic theories conclude that a company can maximize profits by
using sales promotion. Such promotions can permit price discrimination by allowing
the brand to compete in 2 or more different market segments. Sales promotion may
allow a premium brand to compete with a lower tier brand among price sensitive
consumers. For example, a premium band of toilet soap may be on promotion in
some price sensitive markets, while in the remaining markets it is sold at its normal
price.
9 Sales Promotion Specialists Are Available
As a result of economic liberalization. the number of management institutions has
increased. This has lead to the availability of specialists, who are not only well paid
but can handle this specialized work more efficiently in the current market
conditions, where sales promotion has become more important
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ADVANTAGES OF SALES PROMOTION
Sales promotions have a signee cant effect on the behavior of consumers and trades
people. Such promotions can bring in more profits for the manufacturers because
they permit price discrimination.
DISADVANTAGES OF SALES PROMOTIONS '
While sales promotion is a powerful and effective method to produce immediate short
term positive results, it is not a cure for a bad product or bad advertising. In fact, a
promotion is speed up the killing of a bad product. A consumer may be motivated to
try to new products because of the incentive but after this the product itself must take
over.
Pepsi Aha launched at sales promotion campaign for its launch, though the promotion
was effective, ineffective advertising and publicity led to the downfall of the brand.
Q Increased price sensitivity
Frequently promoted brands in the product category, especially on the basis of price,
make consumers and traders more price sensitive not only for the promoted brands
but for other brands as well in the same product category.
Consumers wait for the promotion deals to be announced and then purchase the
product. This is true even for brands where brand loyalty exists. Customers wait and
time their purchases to coincide with promotional offers on their preferred brands.
Quality image may become tarnished
U If the promotions in a product category have been rare, or the product happens to be
of high involvement category, the promotions could have a negative effect about its quality image.
Consumers may start suspecting that perhaps the product has not been
selling well, the quality of the product is true compared to the price or the product is
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Promotion. So after a paint af time a good number of consumers started suspecting its
quality and almost no one is prepared to call il u high qualify brand.
Because of competitive pressures, now almost all brands of color television period
market are available on one or the other promotional deal and consumer perceptions
are that almost all the brands have same quality and performance in a price range.
Even a top-of-the-line brand like Sony having technological edge, has occasionally
announced promotional deals because of competitive pressures as promotions have
become common in the category.
Q Dealers forward by and divert stocks
ln case of deals for the trade, many dealers forward by, in excess of their inventory
requirements. This is particularly happens if a product is low bulk, much in demand
and the inventory holding costs are favorably low. This is true both for wholesalers as
Well as retailers. Forward buying of excessive stocks on deals or quantity discounts
can lead to diversion of some of the stocks in non-deal areas, Forward buying of
excessive stocks on deals or quantity discounts can lead to diversion of some of the
stocks in non- deal areas. Wholesalers and retailers do not hesitate in selling these
excess stocks in non- decal areas on prices that are less than the list price, but keeping
some reasonable margin for themselves. This is likely to have a negative effect on
price discrimination efforts of the company as dealers and those areas would not be
buying even the normal requirements from the company.
6 Merchandising support from dealers is doubtful
One of the trade promotions tool is to offer promotional allowances to trade people to
motivate them to provide merchandising support and to pass on some benefit to
consumers. This generally is the condition attached with such promotional
allowances. In many cases, the dealers do not cooperate in providing the
merchandising support nor do they pass on any benefit to consumers. The retailer
might not be willing to give support because he does not have the place, or the
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Product does not sell much in lolls shop, or may be he thinks the effort required rs more
W than the commission/benefit derived.
l 0 Short-term orientation
3 Sales promotions are generally for a short duration. This gives a boost to sales for a
short period. This short-term orientation may sometimes have negative effects on
long-term fixture of the organization. Promotions mostly build short-term sales
volume that is not maintained. Heavy use of sales promotion, in certain product
categories, ma be res omissible for causing brand alit imam dilution.
A dealer in second-hand cars had to close shop because he was able to attract '
customers only during heavy promotions. The investment made on attracting
customers was not showing any continua] returns.
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TECHNIQUES OF SALES PROMOTION
PRICE DISCOUNTS OFF INVOICE allowance Sales conests
Price pack deals Buying allowance Incentives
Rebates/refunds Display and adverisiting allowance Awards and prizes
Continuity programs Buy back allowance Premiums(gifts)
Coupons Bill back allowance Sales meetings
Samples Count and allowance Sales manuals etc
Contests and sweepstakes Slotting allowance Salles manuals etc
Premiums and advertising
specialties
Merchandise allowance
Free trials Pop displays
Brand placement Cash rebate
Event sponsorship Free goods
Product warranties Trade coupons
Exchange offers Dealer listing
Internet promotions Dealer loaders
Low interest financing Sales contests
Free service camps SPIFFS(PUSH MONY)
INCENTIVES
Sales training programs
Trade shows
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CONSUMER SALES PROMOTIONS
Sales promotions directed at the end-user, whether by the manufacturer or the retailer,
are called consumer sales promotions. Manufacturer announced promotions to
consumers are based on pula strategy of the manufacturer and retailer announced
promotions to consumers constitute usher strategy of the retailer.
Objectives of consumer market sales promotions
The following basic objectives can be pursued with sales promotions in the consumer
Market.
Stimulate trial purchase
When a rim wants to attract new users sales promotions tools can reduce the
consumers risk of trying something new. A reduced price or offer of a rebate may
stimulate trail purchase.
I When Dove was launched in the market, people had u certain reservation against
the product. Why?
There were two reasons:
a. Price actor Most housewives found Dove to be pretty steep and thus
consumption was restrained.
b. Secondly, the rumors of one if its ingredients being animal fat.
HLL began a sales promotion campaign: Get Dove soap free with a kilo of Surf
Excel. With this promotion tactic, HLL got the opportunity of converting non-
Users of Dove to users. At the same time changing attitudes of other detergent
users by converting them to Surf users.
I Pentene when it was launched did u lot of sampling, to stimulate trail purchase.
Their efforts have surely shown results, with Fastened being one of the top selling
brands in India today.
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Stimulate repeat purchases
In-package coupons good for the next purchase, or the accumulation of points with
repeat purchases, can keep consumers loyal to a particular brand.
The most prominent frequency programs are found in the airline industry where
competitors try to retain their most lucrative costumers by enrolling them for various
perks such as frequent dyers can exam free travel, hotel stays, gifts etc.
I McDonaI1ls India has targeted a lot at the kids. To keep them coming in again
and again they introduced the happy meal concept where they used to give away
diesel toys every week. And they advertised about it saying collect your entire
set of toys. This concept really worked and has shown u tremendous increase in
the sales and is presently an integral part of their marketing strategy.
I Jet Privilege
Jet privilege is a rewarding and customer friendly frequent /Iyer programmed in the
country as ajet privilege member one can earn JP miles not only on jet airways but
also from many other programmed partners of the program me.
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SALES FORCE PROMOTION
Sales promotion directed towards the sales people is referred to as sales force
promotions. These schemes are intended to motivate sales people to put in more
efforts to increase sales, increase distribution, promote new or seasonal products, sell
more deals to resellers, book more orders, develop prospects lists and build up morale
and enthusiasm. Some of these activities are meant to prepare the sales people to do
their jobs well and include sales meetings and manuals, training programmers, sales
presentations, lm and slide shows etc. Prize distribution to winners is the more
tangible aspect of any such programme.
Objectives of sales force promotion schemes are:
Increase sales volume
Introduce a new product
Reducing selling costs
O Offset competitive promotions
Improve working habits
6 Develop new prospect lists etc. -
Tools used in sales force promotions
T 0 Sales meetings
T Sales meetings are generally organized for sales people fond one area, region or
district more frequently, usually once a month, once in two months, or quarterly.
These meetings bring together sales people from different territories of the nation and
are considered a popular way of educating sales people. There is a varying mixture of
business and pleasure.
Educational material of sales meetings generally focuses on product knowledge ,
1 selling skills and motivation of the sales force. The programme often includes formal
lectures, quiz shows, etc. The purpose is to generate interest and enthusiasm and the
winners are awarded prizes and certificates.
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max Healthcare
Objective: to celebrate the annual day of Max-India and instill a sense of pride
amongst the employees being exclusive Max-team members.
Strategy: presentations, reviews and their vision for the future marked the evening.
An address by the chairman, Mr.Analjit Singh and the award ceremony were the
highlights. The vent itself was held in park royal, Delhi. Linefeed often evening was
transmitted on audio-visual screens. This exclusive live relay added to excitement
among the invitees.
6 Sales Manuals
Training materials such as manuals, visual aids, ip charts, programmers, learning
books are most useful to sales people. Sales manual may be long or short depending
upon the type of the products manufactured and sold by the company. The sales t
manuals usually contain product details, applications, manufacturing processes,
prices, sales techniques etc. Some companies also have house journals that reports
about the company programmers, new products, research activities, new polices,
awards, promotions, etc.
In any rm where personal selling is critical for the sale of the product incentives to
the sales people become very important. Incentive programmers most often used by
the company include paid vacations within or outside the company, cash rewards,
prizes, honor awards, merit certificates for excellent performance etc.
Training
Sales contests
incentives
Awards and prizes
Premiums (gifts
C0nsumer-cum-Dealer-cum-Sales force sales promotions:
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How does a sales promotion influence sales
: There are 4 basic mechanisms involved: t
: 1) Brand switching
: 2) Repeat buying
; 3) Purchasing more or accelerating timing
4) Increasing category expansion and consumption
; 1) Brand switching
; The objective of some sales promotions is to induce brand switching, i.e.
; encouraging the consumers to purchase the promoted brand instead of the regular
; brand that would have been purchased had there been no sales promotion. This
_ type of brand switching is often called aggressive switching '. The second type of
: promotion effect on brand switching is considered as defensive switching.
: this case, the objective is to retain the customer by encouraging him to buy the
same brand as was bought on earlier occasions.
; Gore Q/ed free gas plus discounts on its washing machines to make T
consumers shift from newly arrived competition (Samsung). That was an
aggressive strategy.
-a prevent its customers from shifting to Godrej, Samsung had to launch a
Q similar scheme of free gifts and price discounts. This was a defensive strategy.
; Thc manufacturer concern is to compete with other similar brands, While the
:1 conked of the reseller is to encourage customers to buy from his store. When a V
._ retailer promotes, consumers respond by switching stores, i.e. they purchase from
: the store that is promoting instead of the regular store.
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I Promotions offering price deals incidence the attitude of consumers towards
buying the brand. Much would depend on the size of the discotmt and the
consumers sensitivity towards price and how much importance consumers place
on price as compared to quality. If the attitude toward the brand has been quite
5low compared to some other brands, then a price promotion is likely to encourage 5
a switch to the promoted brand. Such price promotions may also encourage
consumers to buy an otherwise expensive brand which they could not afford on
the normal list price
Displays at the points of purchase may induce brand switching because they
serve as conditioned stimuli associated with price promotions. Over a period of
time, consumers get trained to associate displays with price reductions and
respond even when the price reduction is not there.
If most of the consumers are inclined towards low prices because of economic
conditions, the majority of them are assumed to be buying low priced brands.
However, if the price of an expensive item is reduced because of a promotion,
some consumers from low quality category will switch to the promoted brand.
But when the low quality product is promoted, there is no switching because the
: consumers have been buying the brand without promotion. The consumers from
high-income group are unlikely to switch to low-price brand because of
ii promotion and the sales gains would not be there
2) Repeat buying
When a consumer buys a product on promotion, this may lead to developing a
habit towards purchasing that brand and some evaluation about the performance
of that brand. It may also happen that since the brand is purchased on promotion,
the consumers attitude towards the brand weakens, and the probability of
purchase in declines. Repeat purchase may result because of habit
formation that may develop because the brand is bought more than once due to
sales promotion. Much depends on the satisfaction of the consumer with the
brand purchased on promotion.
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For example, if customer purchased a Godrej refrigerator on promotion and
was stained, il is very like/ that next time when the need arises, lye customer
would purchase the same brand again on promotion, or other products of the
same manufacturer when available on promotion.
Repeat purchasing is often the result of habit formation and learning. Sales
promotions stimulate the customers to by a product and this becomes the first
step towards establishing a habit. Another route is not to allow the brand user to
shift to some other brand by rewarding and reinforcing the already established
behavior.
In case of low-involvement products, the role of habit is more important. The
consumer does not want to devote much time to thinking and pre-purchase
evolution in making a purchase decision. Habit helps the customer avoid any
cognitive effort and helps as a simple and convenient way to decide which brand
to purchase.
Once a consumer gets used to the long-lasting ejects of Duracell batteries, it
becomes a habit and he would not think much beware going in its the same brand
again.
In case of high-involvement products, it is assumed that learning takes place
when the consumer experiences the actual performance of the product and makes
an evaluation. A favorable evaluation is likely to help sustain the habit. ln some
cases, even consumers with low involvement oen make evaluations that may
have repercussions with regard to developing the habit.
This holds true to a great extent in case of industrial products, where the actual
experience after initial usage is very important.
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3) Purchasing more or accelerating timing
Purchasing more and accelerating timing refers to those situations when
cons tuners buy more than their immediate requirement, or shim their purchase
timing as a result of promotions. When resellers buy more than their normal
requirements, it is called forward buying Building excessive inventories in this
manner often leads to stock diversion in non-deal areas. Another important
repercussion of this purchase behavior is that it merely shifts the purchases which
would have occurred anyway.
For example, if a consumer buys more than the immediate requirements, then in
the next purchase period, this consumer either would not buy, or buy less. In
another situation, due to promotion, the consumer buys the refrigerator now,
though the intention was to buy 2months.
This is purchase acceleration.
Another effect of promotion can be that consumers who have bought in excess of
their requirements would be out of the market. Similar would be the retailers
shelves are full. This can help in preempting the competition. Such acceleration
in purchase quantity would also help in preventing brand switching, and in some
cases, more consumption of the product.
The reverse may also be true in certain situations, i.e., negative acceleration when
the consumers buy less or decide to purchase later rather than now. This may
happen when the sales promotion stimulates brand switching. The consumer
wants to try the product and buys a smaller quantity to reduce the risk associated
with using something new. The consumer may also postpone the purchase of a
product because he/she learns from some source about the forthcoming salespromotion or anticipates it.
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4) Increasing category expansion and consumption
Sales promotions are likely to stimulate demand by creating new occasions for
purchase or by increasing the consumption rate of consumers. In certain situation,
the purchase of a product category gets accelerated. Sales promotions such as
displays can create new purchase occasions by the reminding the customer that
the displayed product is good for growing children (protein biscuits). Other
products, for example noodles or potato chips purchased on promotion in
multiple units, can increase the consumption rate, which is often the objective of
many promotions.
One example can be of condensed milk, (Milkmaid)i An attractive display of /his
brand is arranged and agree recipe book is given on purchase af2 packs. This is
quite likely to increase the rate of consumption of this product and consumers
will he tempted to try different recipes.
In case of many high-involvement products, promotions can help consumers to
realize that a certain product would serve as a good item (a silk sari, camera,
a Cadbury pack Ray-Ban sunglasses, etc). In some cases, there is a certain price
limit beyond which the consumers will not buy a product. However, a price
promotion offer lowers the price of the product below the customer price limit,
and thus a purchase occasion is created. Many customers buy cars when available
on promotion such as interest-free installments, which otherwise they are not in a
position to buy on down payment. Of late, this is happening in case of almost all
brands of computers. .
Observations in the market place point to the likelihood that brand switching,
repeat purchasing, purchase acceleration and consumption, all occur
simultaneously. The net result, however, is that sales promotions work.
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SALES PROMOTION BUDGET
The allocation of monetary resources to sales promotion is determined by the
promotional strategy of the mi.
Ln most cases, first the total amount of money for promotion is detennined then it is
budgeted for different activities. Before deciding the money allocated to sales
promotion, the management should evaluate relevant factors such as type of product,
its stage in PLC, the market situation, level of competitive activity, etc. All these
factors, alone or in combination, can significantly affect the promotional budget.
There are live important techniques that are commonly used to allocate funds to sales
promotion.
Q Percentage nestles method
The percentage of sales method to allocate the funds is probably most popular among
companies. ln this approach, the budget is determined by taking a fixed percentage of
sales. The sales figure taken could pertain to the previous year, or the average of
several past years. This percentage could also be based on the forecasted sales of the
year under consideration.
9 Unit of sales method
This method is commonly used by companies dealing in high-priced products,
generally consumer durable goods such as four and two wheeler auto-manufacturers,
refrigerators, washing machines, microwave ovens, entertainment electronics and
many other items.
Instead of rupee value of sales, as in the previous method, the base is the physical
volume of either the past or anticipated sales. This figure of units is then multiplied
by a fixed amount of money to reach the budget amount. For example, the
manufacturer might allocate Rs. 2000/- per unit for sales promotion.
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Competitive parity method
Many marketers match or base their sales promotion budget to that of the major
competitors. The logic attributed to this method is that the collective minds of the
companies in the industry probably generate promotion budget that are close to i
optimal and any departure from the industry norms may lead to promotion war.
All you can afford method
In using this approach to budget allocation, the amount that is leftover after all other
relevant allocations have been made, is earmarked for sales promotion. This approach
is used, generally, by companies with small budget, or by some other companies,
large as well as small, when they are introducing a new product. It is merely an
availability oriented budget and quite unsophisticated. Apparently, there is no
realization that in a competitive market situation, sales promotion mainframe sales in
many ways.
Objective end task method
As mentioned earlier, the promotion budget is determined by the overall promotional
strategy. Objective end task method approach is the one which is driven by strategy.
This is also the most popular technique to decide the sales promotion budget. The
promotion manager starts by making a thorough study of the market, the product,
competition and consumer behavior in order to set up appropriate promotion
objectives. These objectives may relate to increasing short-term sales, introducing a
new product. stimulate trial, increasing distribution, etc., within a specifiess period of
timer Next step is to determine how much money would be necessary to accomplish
each task involved in achieving the objectives. If the costs happen to be more than
the money available, then either the promotion objectives adjusted or more funds are
made available from the contingency reserve or by reducing the budgets of the other
promotional activities.
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SALES PROMOTION EVALUATION
Measurement of results in any area of business activities related to the objectives that
are set. To accomplish this, set of evaluation criteria is laid down before the
implementation of the sales promotion programme. A number of these objectives are
directly related to sales. In all such cases, the measurement does not pose any
complexity and the sales based techniques can be used with relative ease. For I
instance, it is quite easy to measure the sales effect before, during and air the sales
promotion. In case of objectives not related to sales, such as trial purchase, or
changing consumer awareness and attitude as resultant increase and perceived value
of the product, measurement is more difficult. In certain types of promotion, the
reseller support is important and can have significant effect on marketers promotion
performance.
Pretesting
l-low sales promotion is to be communicated and what would be communicated to the
target groups is important and can be pretested. For example the pre-tested may n
out what is likely to be the perceived value and the risk. A customer considers
whether it would be wise to buy an LL\1kn0Wl'l brand of sport shoes at a 45% discount.
In this offer was there a risk of buying an unfamiliar brand? The pre-test can be
conducted to assess these factors by using focus groups and consumer panels.
Another approach, ballot method, consists of kneeling a ballot paper to a list of
Consumers. They are requested to evaluate different illustrated promotion is and vote
for the most light and rectum the ballot to the rm. A relatively expensive but more
Accurate method is a portfolio test. A portfolio of sales promotion is prepared and
Shown to consumers in person and the responses are noted.
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Strategy
Strategyis the direction and scope of an organization over the lung-term: which
l achieves advantage for the organization through its configuration of resources within
a challenging environment, to meet the needs of markets and to stakeholder
l expectations"
Strategy,a word of military origin, refers to a plan of action designed to achieve a
particular goal. In military usage strategy is distinct from tactics, which are concerned
with the conduct of an engagement, while strategy is conceded with how different
engagements are linked. How a battle is fought is a matter of tactics: the tens and
conditions that it is fought on and whether it should be fought at all is a matter of
strategy, which is part of the four levels of warfare: political goals or grand strategy,
strategy, operations, and tactics. Building on the work of many thinkers on the
subject, one can define strategy as "a comprehensive way to try to pursue political
ends, including the threat or actual use of force, in a dialectic of wills ~ there have to
be at least two sides to a conch. These sides interact, and thus a Strategy will rarely
i be successful if it shows no adaptability." Strategy has been extended beyond its
traditional ends, military and grand strategy, to business, economics, game theory
and other lids.
Strategy at Different Levels of a Business
Strategies exist at several levels in any organization - ranging from the overall
business (or group of businesses) through to individuals working in it.
a Corporate Strategy - is concoct with the overall purpose and scope of the business
J to meet stakeholder expectations. This is a crucial level since it is heavily inuenced
by investors in the business and acts to guide strategic decision-making throughout
the business. Corporate strategy is often stated explicitly in a "mission statement
Business Unit Strategy - is concerned more with how a business competes
successfully in a particular market. It concerns strategic decisions about choice of
products, meeting needs of customers, gaining advantage over competitors, exploiting
or creating new opportunities ctc.
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Operational Strategy - is concerned with how each part of the business is organized
to deliver the corporate and business-unit level strategic direction. Operational
strategy therefore focuses on issues of resources, processes, people etc.
How Strategy is Managed - Strategic Management
ln its broadest sense, strategic management is about taking "strategic decisions" -
decisions that answer the questions above.
In practice, a thorough strategic management process has three main components,
shown in the figure below:
Strategic Analysis
This is all about the analyzing the strength of businesses position and understanding
the important extremely factors that may inuenced that position. The process of
Strategic Analysis can be assisted by a number of tools, including:
Strategic planningis an organization's process of defining its strategy or direction,
and making decisions on allocating its resources to pursue this strategy, including its
capital and people. Various business analysis techniques can be used in strategic
Planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and
Threats ), GE/Mc(inset portfolio analysis, COPE analysis PEST analysis (Political,
Economic, Social, and Technological), STEER analysis (Socio-cultural,
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Technological, Economic, Ecological, and Regulatory factors), and EPISTEL
(Environment, Political, informatics, Social, Technological, Economic and Legal).
Strategic planning is the formal consideration of an organization's future course. All
strategic planning deals with at least one of three key questions:
l. "What do we do?"
2. "For whom do we do it?"
3. "How do we excel?"
Strategic planning tools and approaches
Among most useful tools for strategic planning is SWOT analysis. The main objective
of this tool is to analyze internal strategic factors, strengths and weaknesses attributed
to the organization, and extremely factors beyond control of the organization such as
opportunities and threats. Besides SWOT analysis, portfolio analyses such as the
GE/McKinscy matrix or COPE analysis. Can be pardoned to determine the
strategic focus.
Other tools include Balanced Scorecards, which creates a systematic framework for
strategic planning, and scenario planning, which was originally used in the military
and recently used by large corporations to analyze future scenarios.
Business Strategy Mapping
Business Strategy Mapping is the discipline of mapping business opportunities from
potential to portability and the points in between. This method is different from
other methods in that it visually shows how marketing, Nance and operational
strategies relate to each other and need to together in order to optimize the results
of all the strategies. Business Strategy Mapping assists managers in better
understanding how to generate and deliver value to both the customers a.nd thc
companies.
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Strategy map
A strategy map is a diagram that is used to document the primary strategic goals
being pursued by an organization or management team. It is an element of the
documentation associated with the Balanced Scorecard, and in particular is
characteristic of the second generation of Balanced Scorecard designs that first
appeared during the mid 1990s. The first diagrams of this type appeared in the early
1990s, and the idea of using this type of diagram to help document Balanced S
Scorecard was discussed in a paper by Kaplan & Norton in 1996 [
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CHAPTER-III
COMPANY PROFILE
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CEMENT INDUSTRY PROFILE
History
Cement is an essential commodity on which our standard of living is greatly
dependent. It is a ne ground powder, which when mixed with water sets to a hard
mass. Cement was invented by JOSEPH ASPIDIN a leading builder and brick Lauer.
Cement was patented in the year 1824 in England.
German standard comities: DEF
Binding agents consisting essentially of compounds of oxide, with silica, alumina and
iron oxides, this can harden in air and under Water and are stable in water after they
harden and which further more satisfy the conditions to strength.
The basic raw material for production of cement is limestone which is
available plenty in India in the form of limestone is excavated by mechanical means
and processed through primary and secondary crushers to the required sizes.
All basic raw materials consisting of:
Lime (CAO) 60-67%
Silica (SIO2) 17-25%
Alumina (al2o3) 3~8%
Iron oxide (fe203) 0.5-6%
Magnesium l-4%
Are nely grounded on the raw mills and heated to a temperature of about
1500c in the Rotary kiln resulting in the formation of CLINKER The clinker is
ground to a ne powder. The clinker is containing the following components.
C3s- tribalism silicate (About 45%)
C2s declaim silicate (About 25%)
C3s tricalcium aluminates (About l0-12%)
Required quantity of gypsum (about 2-3%) is added to control the setting time
to facilitate easy working. This is done in a cement mill or ball mill of several
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compartments charged with progressively smaller hardened balls. The mixture is
ground to the required newness and transferred to storage soils. From here, the cement
is bagged and packed where from it is transposed either by road to the desired
Destinations.
Continuous monitoring of the quality of cement is exercised, both at the raw
material stage and also at the finishing stages with the help of X-ray analyzer etc; no
replacement exists for the cement in the foreseeable future and it is bound to retain its
prominent position as a construction material.
Indian cement industry is the fourth largest in the world producing 70 millions
off with 106 major plants
China ~ 380 million tones
Japan ~ 110 million tones
USA 90 million tones
The total world cement production is around 1400 tones.
TYPES OF CEMENT GRADES
Earlier depending upon the requirement, different varieties of cements were
manufactured. The following are the major varieties of cements:
1. Ordinary Portland cement (ope)
2. Portland pozzoland cement (ppc)
3. Portland slag cement (psc)
4. Rapid hardening cement (src)
S. Low heat Portland cement (lhc)
6. Oil well cement (owc)
7. White cement (wc)
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PERCENTAGE OF EACH TYPE OF CEMENT TO TOTAL CEMENT.
COMPANY PROFILE
Kesoram cement is branch unit of Birla house. The house reliability. Kesoram
is mainly known as in the form of Shri.B.K.Birla group Kesoram cement industry is
located at Basantnagar in Karimnagar district of Andhra Pradesh. Basantnagar is
8km away from Ramagundam Railway station linking to Chennai to New Delhi.
History:
One among the industrial giants in the country today serving the nation on the
industrial front Kesoram industries limited has a chequered and eventful history dating
back to 20"s when the industrial house of Birlas acquired it with only a textile mill
under its banner in 1924 it grew from strength to strength and spread it activities to
never ends like rayon, pulp, transparent paper pun, pipes, refectories, types and other
products.
Looking to the wide gap between the demand and supply of a vital
commodity, cement which place and important role in national building, the Govt. of
India censed the cement industry in the year 1966 with a view to attract entrepreneurs
to augment the cement production. Kesoram rose to occasion and decided to setup
few cement plans in the country.
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Many a site in different parts of the country was considered but the final
choice fell on Andhra Pradesh a site in the Godavari river valley at Thakkalapally
reserves has been selected for putting up the first cement plans. It has got natural
advantages like power station, coal mines and rill head are located with in a radius of
15km from the site. Having located a site Kesoram lost no time in drawing up a
blueprint for a modern cement plant with an ultimate aim to resources men and
material at its command, it did not take much time to execute the project.
Kesoram cement factory is surrounded by a wide range of limestone deposits.
Kesoram serving railway station is Ragavapuram in Kazipet Ballarshaw section of
south central railway. It is bounded by singareni collieries, NTPC, FCI and APSEB
power house which makes area industrial.
Kesoram cement is one of the prestigious renowned Kesoram group of
industries which is one of the Indias leading industrial conglomerates under the
stewardship of SYT.B.K.Birla, the doyen of Indian industries. It is one of the leading
manufacturers of cement in India. It is a dry process cement plant with capacity of 9
lakes per annum.
The cement plant of Kesoram with a capacity of 2.5 Lakh tons per annum was
established in 1969 at Basantnagar a backward area in Karimnagar district of AP, the
second unit followed suit which added a capacity of2 Lakh tones in August 1978, 1.13
Lakh tones in 1981 and 0.87 Lakh tones in September 1981.
Kesoram set up a l5M.W captive power plant to facilitate of an uninterrupted
power supply for manufacturing of cement in 1997. the plant incorporates the
technology in cement making; it is professionally managed and well established
cement manufacturing company enjoying the confidence of the consumers.
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Kesoram produces:
1 Ordinary Portland cement (opc)
I 43 grade-known as Birla supreme
0 53 grade-known as Birla supreme gold
2 Portland pozzoland cement (ppc)
SUPREME PERFORMANCE:
Birla supreme, the 43-grade cement is widely accepted popular brand in the
market commanding a premium However need the specific demands of the
consumers Kesoram brand out the 53-grade-known as Birla supreme gold which is
special quality like higher fineness, quick setting, durability etc
Ppc is known as Birla Shakhty which attracted by people its qualities and rate
margin compared to open. All quality system of Kesoram have been certified under
INTERNATIONAL STANDARD ORGANISATIONwhich proves the world wide
acceptance.
SUPREME STRENGTH:
Kesoram cement has huge captive limestone deposits which make it possible
to possible to feed high grade limestone consistently. Its natural gray color is in-born
ingredient and gives good shade.
Both the products offered by Kesoram i.e. Birla supreme-43 Grade and Birla
supreme-53 grade cement are outstanding with much higher compressive strength and
durability. The following characteristics show there distinctive qualities.
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PROCESS AND QUALITY CONTROL:
It has been the endeavor of Kesoram to incorporate the worlds latest
technology in the plant and today the plant has the most sophisticated, state of the art
technology in its process.
X-RAY ANALYSIS:
Fully computerized XRF, XF Dand X-RAYanalyzers keep a constant round
the clock vigil on quality.
DCS SYSTEMS:
DCS ( Distributed controlled system) is installed in clinker making process of
Kesoram cements since it is key step in the overall cement making process is totally
computer controlled. The DCS is constantly monitors the process and ensures
operating efficiency. This eliminates variations and ensures consistency in the quality
of clinker.
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DEPOT SALES:
Kesoram cement is maintaining marketing depots as head quarters in different
places in Andhra Pradesh, Maharashtra, TamilNadu, Kama taka and Orissa states.
1ANDHRA PRADESH:
Hyderabad
Warangal
Karimnagar
Nizamabad
Vijay Wada
Nell ore
2. MAHARASHTRA:
Amoretti
Akolo
Jalgoan
Nagpur
Nanded
Chandrapur
Wardha
3. TAMIL NADU:
1 Madras
4, KARNATAKA:
I Bangalore
5. ORISSA
Berhampur
Sales will take place from depot to:
Retailers/ stockiest
Builders/ contractors
Pipe factories-Industries
Direct consumers
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Government and semi government Bodies
FEATHERS IN KESORAMS CAP:
Kesoram has put standing track record, achieving over 100% capacity
utilization in productivity and energy conservation. It has provided its designation by
bagging several national and state awards, noteworthy being.
NATIONAL & STATE AWARDS
National productivity award for 1985 &1986
National award for mines safety 1985-86 &1986-87
NCBM ( national council for cement and building materials)s national
award for 1989-90
Prestigious state award, Yajamsnya Ratna and Best management award
for 1989.
9 FAOCC1 (Federation of AP chamber of commerce and industry) award for
best family planning effort in the state for the year 1991.
9 May day award of the government of AP for best management and
Jawaharlal Nehru Silver Rolling Trophy for best industrial productivity
effort in the state, sponsored by FAPCCI for the year 1993.
F FAPCCI award for best efforts of industrial in the state to develop rural
economy twice in the year 1994 as well as in 1998.
9 National award (Sheri. S R Ragtag) for social awareness for the year 1995-
96
The best rural development efforts made by the company got FAPCCI
Award for Best workers welfare
Kcsoram got the first prize for Mine Environment and pollution control the
year 1999 too, for the third year in succession in July 2001.
F Kesoram annexed the Vana Mitra" Award from the Govt. of A.P. l
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KESORAM CEMENT ADVANTAGES:
1. Helps in designing sleeker and more elegant structures giving greater
edibility in design concept.
2. Due to its ne quality super ne construction can be achieved.
3. it gives maximum strength at minimum use of cement with water in the water
cement ratio, especially the 53 grade Birla supreme gold.
4. Improved durability is achieved, the permeability reduces and the volumetric
changes are also reduced.
5. Better water proofing is achieved due to low heat of hydration as the shrinkage
will be less which means fewer crackers.
6. Better finish is achieved due to fitness and hence better workability. Thus
plastering becomes easier with batter finish.
7. Faster construction possible at both Birla Supreme Gold achieves their high
early strength in just 24 hours, and hence the form work can easily be
removed. Thus improving the efficiency and saving in cost and time.
MIX C;FA;CA WATER W/C RATIO
PCC
M10
M15
M20
M25
1;4:8
1;3:6
1;2:4
l.5:3
1;1:2
30 Lts
28 Lts
27 Lts
Z6 Lts
24 Lts
0160
0.56
0.54 _
0.52
0.48
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CHAPTER-IV
DATA ANALYSIS
AND
INTERPRETATION
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01)THE RESPONDENTS WERE ASKED WHETHER THEIR DEALERASHIP BELONGS TO ONLY KESORAM
CEMENT OR ANY OTHER AND THE RESPONSES ARE DEPICTED BLOW
Options No of respondents Precentage of respondents
Yes 75 62.05
No 45 37.05
Total 120 100
INTERPRITATION
As per a above table 4.01 the study was conducted with 1200 dealers with in Karimnagar district 62.05%
of dealers are sealing the only Kesoram brand and the remaining 37.05% were dealing with others
brands
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02)CUSTOMER REFERENCE WITH REGARD TO DIFFERENT BRANDS OF CEMENT
A)Mcc cement b)orient gold cement c)1&t cement
d)Coramandal cement e)rassi gold cement f)maha cement g)ambuja cement
H)Kesoram cement
Option No of respondents Percentage of responentsMcc cement 15 12.50
Orient cement 25 20.83
1&t cement 10 8.33
Coramandal cement 05 4.17
Rassi golg cement 05 4.17
Maha cement 20 16.67
Ambuja cement 25 20.83
Kesoram cement 15 12.50
Total 120 100
INTERPRITATION
As per a bove table 4.02 the study was conducted with 120 dealers with in Karimnagar
Daistrict.20.83% of customers were attracted to wards ambuja and orient gold cement and 16.67 %$
were attracted to weards maha cement 12.520 %were attracted to wards Kesoram and remaining
were attracted to wards others brands of cement company.
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03)EFFECTIVE BRAND ADVERTISEMENT IN ENHANCING THE SALES
A)Mcc cement b)Orient gold cement
c)L&t cement d)Coramandal cement
e)Rassi gold cement d)Maha cement
g)Ambuja cement h)kesorasm cement
Options No of respondents Percentage of respondents
Mcc cement 05 4.17
Orient gold cement 13 10.83
1&t cement 17 14.17
Coramandal cement 05 4.17
Rassi golg cement 10 8.33
Maha cement 15 12.50
Ambuja cement 20 16.67
Kesoram cement 35 29.17Total 120 100
INTERPRITATION
As per above table 4.02 the study was conducted with 120 dealers with Karimnagar District,29.17% of
customers said that Kesoram advertisement is enhancing the sales 16.67% customer said ambuja
ce3ment advertisement is enhancing the sales and remaining were respondent to wards other cement
brand advertisement
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04)FACTORS IN SELECTING A BRAND
Price
Quality
Quantity
Brand image
Packing
Credit facility
Dealer presentation
Options No of respondents Percentage of respondents
Price 15 12.50
Quality 13 10.83
Quantity 17 14.17
Brand image 15 12.50
Packing 10 8.33
Credit facility 25 20.83
Dealer presentation 25 20.83Total 120 100
INTERPRITATION
As per a above table 4.04 the study was conducted with 120 dealers with in Karimnagar District
20.83% customers were effected towards credit facility 14.17% were effected towards quantity and
remaining customers affected towards price ,packing and brand image
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05)OPINION ON PRICE COMPARED WIT5H OTHER BRANDS OF THE COMPANY
A)Mcc cement b)orient gold cement c)1&t cement
d)Coramandal cement e)rassi gold cement f)maha cement g)ambuja cement
H)Kesoram cement
Options No of respondents Percentage of respondents
Mcc cement 05 4.17
Orient gold cement 13 10.83
1&t cement 17 14.17
Coramandal cement 15 12.50
Rassi golg cement 10 8.33
Maha cement 15 12.50
Ambuja cement 25 20.83
Kesoram cement 20 16.67
Total 120 100
INTERPRITATION
As per a above table 4.04 the study was conducted with 120 dealers with in Karimnagar District
20.83% customers were effected towards credit facility 14.17% were effected towards quantity andremaining customers affected towards price ,packing and brand image
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06)SATISFACTION ON THE PACKING MADE BY KESORAM
a)Highly satisfied b)satisfied
c)Highly dissatisfied d)dissatisfied
Option No of respondents Perce3ntage of respondents
Highly satisfied 45 37.50
satisfied 35 29.17
Highly dissatisfied 15 12.50
dissatisfied 55 45.83
Total 120 100
INTERPRITATION
As per a above table 4.
05 the study was conducted with 120 dealers with Karimnagar District 45.83% of customer were
dissatisfied with packing maid by Kesoram Cement Company 37.50% customers highly satisfied
with packing maid by Kesoram
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07)OPINION ON REPLACEMENT OF CEMENT BAGS OF KESORAM
A)Yes b)No
Options No of respondents Percentage of respondents
Yes 75 62.50
No 45 37.50
Total 120 100
INTERPRITATIONAs per above table 4.05 the study was conducted with 120 dealers in Karimnagar District 16.50% of
dealers respondent to works cement of cement bags remaining 37.50% of dealers was not
respondent replacement of Kesoram cement bags
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08)STITABLE ADVERTISEMENT MEDIA FOR CEMENT INDUSTRIES
A)Television
b)Radio
c)Wall painting
d)paper
e)Bill boards
f)OthersOthers No of respondents Percentage of respondents
Television 25 20.83
Radio 13 10.83
Wall painting 27 22.50
paper 20 16.67
Bill boards 10 8.33
Others 25 20.83
total 120 100
INTERPRITATION
as per table 4.0 the study was conducted with 120 dealers with in Karimnagar District 20.83% wererespondent other resources and television are suitable advertising media for a cement media for a
remainingpreference other media
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09)OPINION ON FGAST MOVING BRAND IN YOUR STATE
A)Mcc cement b)orient gold cement c)1&t cement
d)Coramandal cement e)rassi gold cement f)maha cement g)ambuja cement
H)Kesoram cement
Options No of respondents Percentage of respondents
Mcc cement 05 4.17
Orient gold cement 13 10.83
1&t cement 17 14.17
Coramandal cement 15 12.50
Rassi golg cement 10 8.33
Maha cement 15 12.50
Ambuja cement 25 20.83
Kesoram cement 20 16.67
Total 120 100
INTERPRITATION
As per a above table 4.05 the study was conducted with 120 dealers with in Karimnagar District
29.17% despondence said Kesoram cement brined fast moving in there state and rooming 20.83%
resonance Abuja cement is fads moving brand in there state and remaining options is otherbrands.
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A)Mcc cement b)orient gold cement
c)1&t cement d)Coramandal cement
e)rassi gold cement f)maha cement
g)ambuja cement H)Kesoram cement
Options No of respondents Percentage of respondentsMcc cement 12 10.00
Orient gold cement 10 8.33
1&t cement 0.5 4.17
Coramandal cement 20 16.67
Rassi golg cement 03 2.50
Maha cement 25 20.83
Ambuja cement 10 8.33
Kesoram cement 35 29.17
Total 120 100
INTERPRITATIONAs per a above table 4.05 the study was conducted within Karimnagar District 29.17% of respondents
Kesoram cement brand having more number of sales in market and remaining 20.83%maha cement
having more number of sales in the market and rooming despondence other brands
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11)VIEW ON THE MAJOR COMPETITOR FOR OTHER CEMENT COMPANIES
a)Highly agree b)agree c)highly disagree d)disagree
Options No of respondents Percentage of respondents
Highly agree 60 50.00
Agree 25 20.00
highly disagree 20 16.67
disagree 15 12.50
Total 120 100
INTERPRITATION
As per above table 4.05 the study was conducted with 120 dealers with Karimnagar District 50.00%
respondents were highly that Kesoram cement brand is a major that Kesoram cement brand is not
a major competitor for other cemen5 companies
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12)CREDIT PERIOD ALLOWED TO THE DEALERS OF KESORAM
a)Tenbdays b)one week c)three days d)none of the above
Options No of respondents Percentage of respondents
Ten days 55 45.83
one week 25 20.83
three days 20 16.67
none of the above 20 16.67
Total 120 100
INTERPRITATION
As per above table 4.05 the study was conducted with 120 dealers with in Karimnagar
dfistridct.45.83% of dealers said that Kesoram allows a credit period of ten days 20.83% dealers
said Kesoram allows one week of credit period and remaining says Kesoram is not allowed proper
credit period.
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13)TIME TAKEN FOR DELIVERING AFTER ORDERING
(a)Very fast (b)fast (c)slow (d)veryslow
Options No of respondents Percentageof respondents
Very fast 10 8.33
fast 55 45.836
slow 35 29.17
veryslow 20 16.14
Total 120 100
INTERPRITATION
As per a above table 4.05 the study was conducted within Karimnagar District 29.17% of respondents
Kesoram cement brand having more number of sales in market and remaining 20.83%maha cement
having more number of sales in the market and rooming despondence other brands
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14)BETTER SCHEMES AND REWARDS ON ACHIVEING THE TARGETS
a)Kesoram cement b)orient gold c)Mcc cement
Options No of respondents Percentage of respondents
Kesoram cement 60 50.00
orient gold 40 33.33
Mcc cement 20 16.67
total 120 100
INTERPRETATION
As per a bove table 4.14 the study conducted with 120 dealers with in Karimnagar district 50%
respondents Kesoram cement company provides better schemes and rewards achieving the
target and remaining 33.33% of respond nets orient and remaining 16.67% of respondents mcc
cement company provides better schemes and rewards achieving the target
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15)FACILTES PROVIDED IN ATTRACTING THE DEALERS
a)offers b)discount c)commission
Options No of respondents Percentage of respondents
offers 35 29.17
discount 55 45.83
commission 30 25.00
total 120 100
INTERPRETATION
As per the above table 4.15 the stayed conducted with 120 dealers with in Karimnagar district45.83% of respondents discounts attaching for dealers and riming
29.17% of respondents offers attracting for dealers and 25% of respondents commission attracting
for dealers
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01) As a dealer which brand of cement you deal with?
A) MCc cement b) orient gold cement c) l&t cement
D) coramandal cement E)arsis gold cement mama cement g)Abuja cement h)others
O2) According to you which brand of Cement Company did most customers prefer?
A) Mcc cement b) orient gold cement c) l&t cement
D) coramandal cement E)arsis gold cement Omaha cement g)ambuja cement h)others
03) Which brand advertisement more effective in enhancing the sales?
A) Mcc cement b) orient gold cement c) l&t cement
D) coramandal cement E)rassi gold cement f)maha cement g)ambuja cement h)others
04) Which factor did customer consider in selecting a brand?
Price
Quality
Quantity
Brand image
Packing
Credit facility
Dealer presentation
05) State your opinion with regard to piece comprised with other brands of Cement
Company?
a) Very high B) high C) slow D) low
O6) What is the time taken for delivery after ordering?
A very slow b) fast C) slow D) very delay
07)Are you satisfied with the packing made by Kesoram?
a) Highly satisfied b) satisfied
C) Highly dissatisfied D) dissatisfied
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08) ls Kesoram cement replaces the damage bags?
A) YES B) NO
09) According to you which is the suitable advertising media for cement industries?
a) Television
b) Radio
c) Wall paintingd) Paper
e) Bill boards
F) Others
|0)Rank the fast moving brand in your state?
A) Mcc cement
b) Orient gold cement
c) L&t cement
D) Coramandal cement
E) Rassi gold cement
f) Maha cemcnt
g) Ambuja cement
h) Others
ll) Which brand have more number of sales in he market?
A) Mcc cement
b) Orient gold cement
c) L&t cement
D) Coramandal cement
E) Rassi gold cement
t) Maha cement
g) Ambuja cement
h) Others
l2) What is the credit period given by Kesoram to their dealers?
a) ten days b) one weak c) three days d) none of the above
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I3) Do you agree that Kesoram cement is major competitor to other cement companies?
a) Highly agree b) agree c) highly disagree d)disagree
l4) According to you which brand of cement price is high?
A) Mcc cement
b) Orient gold cement
c) L&t cement
D) Coramandal cement
E) Rassi gold cement
l) Maha cement
g) Ambuja cement
h) Others
l4) Which facilities did both orient and Kesoram cement companies attract you for
dealer ship?
a) Offers b) discount c) commission
l5) Which company provides better schemes and rewards on achieving the target?
a) Kesoram cement b) orient gold c) others
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CHAPTER-V
CONCLUSION
AND
SUGGESTIONS
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CONCLUSSION
During the course of my study information is obtained mainly through interaction
with the dealers personally
The study was safe the survey conducted using questions are
MAJOR COMPITETRS: - major competitor of Kesoram cement is MCC,
CORAMANDAL KING, and L&T ORIENT AND RASSI
MOST POPULAR: - the most popular among these brands are Karimnagar and
adlibbed dist Kesoram cement and mcc cement
FAST IN WORK:-it was found that MCC dealer consigrunent faster than Kesoramcement
DEALER I-IARRASMENT: - it is shocking that even if there is a change of rupees
l0/- the order broacher (as rate change) Kesoram cement adjust the consignment
GIFT OFFERI-
CREDIT PERIOD:- the credit period of Kesoram cement is only 10 days where as
other brands gives about 15 to 45 days
DISCOUNT:- very less discount is given to dealers on blank purchase than others
brands quality among quantity Kesoram nods its first place than second by Birla
ambuja
PACKING: - the packing ofkesoram cement is best than compare to other brands
Pricing:- even in pricing Kesoram and MCC are best and more preferred by
customers
NO INFORMATION: - the dealers are unaware of discount and offers and there is no
proper response from factory manager
MEETINGS AND SEMINARS:- Kesoram has no interest on their dealers are either
on there customers where as MCC and L&T cement companies conduct half yearly
meetings with their dealers to solve the problems facing by the dealers
GIFT AND OFFERS:-there will not be any gift is offer to the dealers from kesoram
cement company for that the dealers prefer other brands
_ AVERAGE MARGIN: - it was found that average of MCC and coramandal cement
companies are satisfactory where as kesoram cement goes less
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SUGGESTIONS
\The company should maintain healthy relationship with the dealers by making
frequent visits and helping them in solving the problems faced by them letter
of application must be given
The company has to welcome new ideas and various schemas from the dealers
for the improvement of Kesoram cement since they know the requirement of
customers
The company should conduct meetings with the dealers and should give some
gifts and offers to boost the sales .
Credit period should be increased and discount should be introduced in bluck
purchase
Proper own of information should be there
Now not only the urban but also remote people are watching television so the
company should give more advertisement in local channel which will give
more awareness to the people
There pricing strategy and margin should be competitive with other brands
Regular market survey is required to analyses the present market conditions
and the actions of competitors
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Questionnaire on Sales promotion
Kesoram cement factory
Name of the shop: date:
Name of the proprietor: ph no:
District: signature:
1. l-low long have you been dealing with Kesoram cement?
a)
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9. According to you most of the customers are aware of Kesoram cement through
a) advertisement b)campaign c)dealer d)others
10. D0 you satisfy with the sales of Kesoram cement?
a)highly satisfied b]moderately satisfied c)satisfied d)dies satisfied e)highly
dissatisfied
11. How do estimate the demand for various products?
a]past sales b)seasonal c)orders d)others
1Z.Do you face any difficult in dealing with the company?
a)yes b)no
ifyes please specify
13.What percentage of fright if incurs you to received goods from company to
your store point?
a)Z% b)3% c]4% d]5%
14. Do you feel like to suggest any thing which improves distribution
effectiveness?
a) yes b) no
15) In your view, what is one quality that Kesoram can retain its customers?
Ans
16) What are the factors that Kesoram should look out to attract new customers?
Ans
17) What are the factors that Kesoram is loosing on to retain its customers?
Ans
18) What is the ratio of Kesoram cements sales out offal the products you deal in?
Ans
19] Does Kesoram have its distributions outlets at you convenient points or how
comfortable is it for you to get the stock from the Kesoram?
Ans
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20) What is the average time Kesoram takes to deliver the stock upon order?
Ans
21) How often you see the advertisement of Kesoram?
Ans
22). Have you heard about the brand Kesoram?
Yes El N0 El
23). Where did you sec the Advertisement
On T.V. U ln Magazine El Hoarding El Others El
24). What type of advertisement do you like the most media or any other 7
Ans.
25). Which other cement advertisement can you recall?
Ans.
26). Which company advertisement is most consistent?
Ans.
27). Have you satisfied with the Kesoram product ?
Fully Satisfied Partially Satisfied III Dissatisfied
Seal & signature
Thanking you
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BIBLIOGRHAPHY
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BIBLO GRAPHY
l) COMPANY brochures
2) Staff of Kesoram cement
Reference books
l) Marketing research Tull and hawkinstal
2) Principals of marketing Philip kotler
3) Marketing channels Stern
4) Advertising management Batra
Deccan chronicle
Economic times
Business line
lntemet/Web sites
WWw.cementindia.com
Www.cementindustry.com
WWW.google.com
WWw.kesoramindustry.com