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
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.